Notes to Accounts of Organic Coatings Ltd.

Mar 31, 2024

2.17 Provisions and Contingent Liability

Provisions are recognised when the Company has a present obligation (legal ir constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the

passage of time is recognised as a finance cost.

Contingent liabilities and commitments are not recognised but are disclosed ^:n the notes. Contingents assets are

neither recognised nor disclosed in the financial statements

12.2 Terms Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of 7 10/- pershsre. Each holder of (he Equity shares
is entitled to one vote per share. The Company declares and pays dividends in Indian rupees and every equity share is
entitled to the same rate of dividend.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets
of the company after distribution of all preferent ai amounts, in proportion to their shareholding

33. The Company does not have different segments and hence segment wise reporting in terms of the Ind Accounting
standard (Ind AS) 108 "Operating Segment" is not applicable. The Company mainly deals printing inks and auxiliaries
which is considered as a one segment only. Geographical segment is not material and hence not required to be disclosed

separately.

40. SOCIAL SECURITY CODE

The Indian Parliament has approved the Code on Social Security. 2020 (''the Code'')v. nich, inter alia, deals with employee
benefits during employment and post employment. The Code has been published ih the Gazette of India. The effective
date of the Code is yet to be notified and the rules for quantifying the financial impact are also yet to be issued. In view of
tn:s, the vnpact of the change, if any. will be assessed and recognized post notification of the relevant provisions.

41 Additional regulatory information required by Schedule III to the Companies Act, 2013

(I) Tne Company does not have any benami property held in its name No proceedings have been Initiated on or are
pending against the Company for holding benami property under the Benami Iransactions (Prohibition) Act, 1988
(45 of 1988) and the Rules made thereunder.

hi) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or

government or any government authority.

dil) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax
Act, 1961 (such as search or survey), that has not been recorded in the books o^f account.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the year.

(v) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of
Companies beyond the statutory period.

(vi) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person or entity, including foreign entities ("Intermediaries’¹) with the
understanding (whether recorded in writing or otherwise) that the Intermediaiy shall, whether directly or indirectly
lend or invest in other persons/entities identified in any other manner whatsoever by or on behalf of the Company
i ultimate beneficiares'') or provide any guarantee , security or the like on behalf ofthe Ultimate Beneficiaries,

(vii) The Company has not received any fund from any person(s) or entity(ies), ncluding foreign entities ("Funding
party'''') with the understanding (whether recorded in writing or otherwise) that the Company shali directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever oy or on behalf of the Funding party
(ultimate beneficiaries); or provide any guarantee, security or the like on behalf rf the ultimate beneficiaries.

( viii) The Company does not have any transactions with companies struck off.

(ix) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87)
ofthe Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

42. The above audited financial statements have been reviewed by the Audit Committee and approved by the Board of
Directors of the Company at the meetings held on 23rd May, 2024,

43. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s
classification / disclosure.

44. Financial risk management

The Company''s activities are exposed to a variety of market risk (including foreign currency risk and interest risk), credit
risk and liquidity risk. The Company s overall financial risk management policy focuses on the unpredictability of financial
markets and seeks to minimize potential adverse effects on the Company’s financial performance,
i. Market Risk

Market rate is the risk that arises from changes in market prices, such as commodity prices, foreign exchange rates,
interest rates etc ana will affect the Company''s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposure within acceptable parameters,

while optimising returns,
a Commodity Price Risk

Commodity price risk arises due to fluctuations in prices of raw materials and other products. The company
has a risk management framework aimed at prudently managing the risk arising from the volatility in

commodity prices and fright costs.
d. Interest Rate Risk

The company''s exposure to the risk of changes in market interest rate relates to the floating the debt

obligations

c F oreionC urrency Exchange Ratefbsk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit & Loss,
where transaction references more than one currency or where assets/liabilities are denominated in currency other
than functional currency of the entity Considering the countries and economic development In which Company
operates, its operations are subject to risks arising from fluctuations in exchange rates irt those countries. The risk
primarily relates to fluctuations in US Dollar.

Any movement in the functional currency of operations of the Company against the major foreign currency may
impact the Company''s revenue in international business. Any weakening of the functional currency may impact

Company’s cost of imports and consequently the profit or loss.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange

rate risk.

ji. Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of

mitigating the risk of financial loss from defaults.

The Company performs ongoing credit evaluation of its counterparties’ financial conditions. The Company''s major
classes of financial assets are cash and bank balances, trade receivables, Security deposits, Advances to Suppliers

and Employees and prepayments.

As at the reporting date, the Company''s maximum exposure to credit risk is represented by the carrying amount of
each class of financial assets recognised in the statements of financial position.

As at the reporting date, substantially all the cash and bank balances as detailed in Note 9 to the financial
information are held in major Banks which are regulated and located in the India which management believes are of
high credit quality The management does not expect any losses arising from non-performance by these
counterparties.

iii. Liquidity Risk

Liquidity risk arises from the Company s management of working capital, it is the risk that the Company wilt

encounter difficulty in meeting its financial obligations as they fall due

The Company has obtained fund basen and non-fund based working capital credit facility from a bank. Company’s
policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The
principal liabilities of the Company arise in respect of the trade and other payables. T rade and other payables are all
payable within 12 months

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowing
facilities by continuously monitoring forecasts and actual cash flows.

The Company has a system of regularly forecasting cash inflows and outflows and all liquidity requirements are

planned.

Forecast for trade and other payables is regularly monitored to ensure timely fu nding.

AH payments are made within due dates subject to availability of funds.

iv. Capital Risk Management

The Company manages its capital to ensure that the Company will be able to maintain an optimal capital structure
so as to support its businesses.

'' explanation rs provided for any change in Ihe ratio by more than 25% as compared to the preced ng year.

As per our Report of even date For and on behalf of the Board of Directors

For Soman Uday & Co. CIN No. L24220MH15165PLC013187

Chartered Accountants

ICAlFirm Registration No. 110352W

Uday Soman AbhayRShah AjayRShah

Proprietor Managing Director Whole Time Director and CFO

Membership No 38870 DIN: 00016497 DIN: 00011763

Sudhir RShah

Company Secretary & Compliance Officer

Mumbai Mumbai

May 23 2024 May 23,2024

¦ - "• L _.Ill.r.:I........’it

---

Mar 31, 2015

1. Corporate information

The Company was incorporated on 22nd April, 1965 as a Private Limited company limited by shares. It was converted in Public Limited company in the year 1995. It has its Registered office in Mumbai and manufacturing facility at village Umaraya, Taluka-Padra, Dist- Vadodara,Gujarat, India. The company is engaged in the business of manufacturing and trading in Printing Inks & Allied products. The company sells its products across India and to other countries.

2. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the Institute of the Chartered Accountant of India is not applicable.The Company mainly deals printing inks and auxiliaries which is considered as a one segment only. Geographical segment is not material and hence not required to disclose separately

3.1. In terms of Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has Deferred Tax Assets as on 31st March 2015. In terms of the said Standard, in view of unabsorbed depreciation and unabsorbed business losses under the tax laws, net result of computation is net deferred tax assets. Hence, the management has decided not to incorporate the same in the books of accounts as a matter of prudence and in absence of virtual certainty as to its realization.

4. In the opinion of the management, current and non current assets are recoverable in normal course of the Business.

5. The provisions of the section 135 in respect of corporate social responsibility is not applicable to the company as company is not falling under any criteria of the said provisions.

6. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2013

1. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the institute of the Chartered Accountant of India is not applicable.

2. The Company has entered in to memorandum of understanding on 18th April, 2013 for sale of land and Building of its factory situated at S V Road, Ghodbunder Village, Post- Mira Road. Dist-Thane-401104 for consideration of (Rs.)15.50 Crores. The formalities of transfer of the titles would be competed on receipt of the sales consideration.

3. The Borrowing cost of (Rs.).Nil (Previous year (Rs.).21,62,212/-) is capitalised in fixed assets/capital or in Progress in terms of the Accounting standard (AS) 16 "Borrowing Cost" issued by the institute of the Chartered Accountant of India.

4. No Provision for the Income Tax has been made in view of the losses of the Company.

5. In terms of Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has Deferred Tax Assets as on 31st March 2013. In terms of the said Standard the Management has decided not to incorporate the same in the books of accounts, considering the future taxable income available for realisation of this Differed Tax Assets.

6. CONTIGENT LIABILITIES AND COMMITMENTS

Particulars As At As At 31st March 2013 31st March 2012 (Rs.) (Rs.)

(I) Contingent Liabilities Nil Nil

(II) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

- Tangible Assets Nil Nil

- Intangible Assets Nil Nil

(b) Other Commitments

- Bank Guarantee 39,46,500 38,46,500

- Sales Tax liability for Non Receipt of "C" and "F" Form - 1,89,739

- Sales Tax Appeal liability - 5,04,647

- Local Body Tax of Mira Bhyandar Mahanagarpalika 77,80,963 77,80,963



7. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

1.1 Terms/Rights attached to Equity Shares

The Compnay has only one class of Equity Shares having a par value of (Rs.) 10/- per share. Each holder of the Equity shares is entitled to one vote per share. The Company declares and pays dividends in indian rupees and every equity share is entitled to the same rate of dividend.

2.1 The Term Loan on Plant and Equipment are secured by Equitable mortgage of Factory Land and Building and hypothecation of Plant and Equipment at S V Road, Ghodbunder Village, Post Mira Road, District - Thane and at Village Umraya, Taluka-Padra, District- Vadodara. These loans are further guaranteed by one of the director in his personal capacities.

2.2 The Vehicles loans are secured bv hvDOthecation of Vehicles.

3.1 In terms of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Instititue of Chartred Accountants of India, the Compny has Deferred Tax Assets as on 31st March 2012. In terms of the said Standard, the Management has decided not to incorporate the same, in the books of accounts, considering' the future taxable income available for realisation of this Deffrered Tax Assets.

4.1 The Working Capital Loan are secured by hypothecation of the inventory and trade receivables, Equitable mortgage of Factory land and Building and hypothecation of Plant and Equipment at S V Road, Ghodbunder Village, Post Mira Road, District -Thane and at Village Umraya, Taluka-Padra, District- Vadodara. These loans are further guaranteed by one of the director in his personal capacities.

5.1 The Company has not received any intimation from suppliers regarding status under "Micro, Small and Medium Enterprises Development Act, 2006" and hence, disclosure, if any relating to amounts unpaid as at the end of year together with interest paid/payable as.required under the said act has not been given.

6. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the institute of the Chartered Accountant of India is not applicable.

7. The Borrowing cost of (Rs.) 21,62,212/- (Previous year (Rs.) 24,13,002/-) is capitalised in fixed assets/capital or in Progress in terms of the Accounting standard (AS) 16 "Borrowing Cost" issued by the institute of the Chartered Accountant of India.

8. No Provision for the Income Tax has been made in view of the losses of the Compnay.

9. Year end Balances of payables/receivables of the parties which are subject to confirmation/reconciliation impact of which on the profit/loss and on the assets/liabilities, if any is not ascertainable.

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for -Tangible Assets Nil 3,39,90,287 -Intangible Assets Nil Nil

(b) Other Commitments

- Bank Guarantee 38,46,500 38,46,500

- Sales Tax liability for Non Receipt of "C" and T" Form 1,89,739 1,89,739

- Sales Tax Appeal liability 5,04,647 - Nil

- Local Body Tax of Mira Bhyandar Mahanagarpalika 77,80,963 Nil

10. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2011

1. On payment of balance price of 90% of the Issue price, the share warrants holders have exercised their rights to apply for 769840 Equity Shares and accordingly 769840 Equity Shares of Rs. 10/ each were allotted during the year @ a premium of Rs. 4/ per share.

2. The company had revalued its Fixed Assets viz. Land, Factory Building, Plant & Machinery, Office Premises & Furniture Fixtures based on valuation reports of approved valuers as on 31st March, 1994. The difference between the fair market value and written down value as on 31st March, 1994 amounting to Rs. 3,70,68,059/ was credited to Revaluation Reserve.

3. (a) Term Loan for Plant& Machinery and Working Capital facilities from Bank of Maharashtra are secured by first charge against mortgage of Land & Building, Hypothecation of Plant & Machinery, Stockin trade and Book Debts and are further guaranteed by some of the Directors in their personal Capacities.

(b) Vehicle loans are secured by hypothecation of vehicles.

4. Contingent Liabilities not provided for:

Year ended Year ended

31 st March 2011 31stMarch2010

Rupees Rupees

(a) Against Capital Expenditure ( net of Advances) 3,39,90,287 5,75,500

(b) Against Nonreceipt of C & F Forms 1,89,739 10,51,048 6. (i) Loans and Advances includes

Advances for Capital Expenditure 2,43,46,588 7,48,410

Statement showing computation of net profits in accordance with Section 349 of the Companies Act, 1956 with relevant details of the calculation of the commission payable by way of percentage of such profits to the Directors is not given as there is a loss during the year.

5. The Company has not received any intimation from suppliers regarding their status under" Micro, Small and Medium Enterprises Development Act, 2006", and hence, disclosures, if any relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act has not been given.

6. The Company does not have different segments and hence segment wise reporting in terms of Accounting Standard Segment Reporting (AS17) issued by the Institute of Chartered Accountants of India is not applicable.

7. In terms of Accounting Standard regarding Related Party Disclosures (AS18) issued by the Institute of Chartered Accountants of India the Related Party transactions are as under:

In view of Accounting Standard interpretation (ASI) 21 issued bythe Institute of Chartered Accountants of India payments to Non Executive Directors are not included in the above details.

8. The Company follows AS22'Accounting for Taxes on Income'issued by the Institute of Chartered Accountants of India and provision for the same has been made accordingly in the Books of Accounts. Deferred Tax is recognised subject to the consideration of prudence for timing differences between the book profits and Tax profits and is accounted for using the tax rates and laws that have been enacted. Deferred Tax Assets arising from the timing differences are recognised to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred asset can be realised.

---

Mar 31, 2010

1. (a) On payment of 90% of the issue price and in terms of the requisite approval and the provisions Of Chapter XIII of the Sebi (Disclosure and Investment protection) guidelines 2000, the Company has allotted 230160 Equity Shares of Rs. 10/- each to share warrant holders @ premium of Rs. 4/- per share.

(b) 769840 share warrants of Rs. 14/- each on which Rs. 1.40 (10%) is received as a application money aggregating to Rs. 1,07,77,760/-, have a right to apply for one equity shares of the company on payment of balance price of 90% of the Issue price on before expiry of eighteen months from the 12th November, 2008 in one and more tranches.

2. The company had revalued its Fixed Assets viz. Land, Factory Building, Plant & Machinery, Office Premises & Furniture Fixtures based on valuation reports of approved valuers as on 31st March, 1994. The difference between the fair market value and written down value as on 31st March, 1994 amounting to Rs. 3,70,68,059/- was credited to Revaluation Reserve.

3. (a) Term Loan for Plant & Machinery and Working Capital facilities from Bank of Maharashtra are secured by first charge against mortgage of Land & Building, Hypothecation of Plant & Machinery, Stock-in-trade and Book Debts and are further guaranteed by some of the Directors in their personal Capacities.

(b) Vehicle loans are secured by hypothecation of vehicles.

4. Contingent Liabilities not provided for:

Year ended Year ended

31st March, 2010 31st March, 2009

(a) Against Capital Expenditure 5,75,500 -

(b) Against Non-receipt of C & F Forms 10,51,048 4,89,660

(c) Disputed Income Tax Demands - 11,33,960

5. UnderThe Micro, Small and Medium Enterprises DevelopmentAct, 2006", the Company has not received any intimation from any of its suppliers regarding their status under the said Act.

6. The Company does not have different segments and hence segment wise reporting in terms of Accounting Standard Segment Reporting - (AS-17) issued by the Institute of Chartered Accountants of India is not applicable.

7. The Company follows AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India and provision for the same has been made accordingly in the Books of Accounts. Deferred Tax is recognised subject to the consideration of prudence for timing differences between the book profits and Tax profits and is accounted for using the tax rates and laws that have been enacted. Deferred Tax Assets arising from the timing differences are recognised to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred asset can be realised.