| Textual Information(1) |
1 Corporate Information Omkar Speciality Chemicals Limited CIN L24110MH2005PLC151589 is a public limited company domiciled in India and is incorporated under the provisions of the Companies Act 1956 The Companys shares trade on Bombay Stock Exchange and the National Stock Exchange of India The registered office of the Company is located at Mahalsa Narayani Ganesh Chowk Manjarli Badlapur W Dist Thane Maharashtra 421503 The Company was admitted into Corporate Insolvency Resolution Process CIRP vide order of the Honble National Company Law Tribunal NCLT Mumbai Bench dated 05 December 2022 The Resolution Plan submitted by Khitij Polyline Limited Resolution Applicant Acquirer was approved by the Committee of Creditors CoC and thereafter by the Honble NCLT on 31 July 2025 Pursuant to the approval of the Resolution Plan the powers of the Resolution Professional RP ceased and the management of the Company transitioned to the newly constituted Board of Directors The financial statements were approved by the Board of Directors on 2 Significant Accounting Policies 1 Basis of preparation These financial statements comply in all material aspects with Indian Accounting Standards Ind AS notified under Section 133 of the Companies Act 2013 the Act to be read with Rule 3 of the Companies Indian Accounting Standards Rules 2015 and the Companies Indian Accounting Standard Amendment Rules 2016 The Companys Financial Statements for the year ended 31 March 2026 comprises of the Balance Sheet Statement of Profit and Loss Cash Flow Statement Statement of Changes in Equity and the Notes to Financial Statements The financial statements have been prepared on a historical cost convention on the accrual basis All assets and liabilities have been classified as current or noncurrent as per the Companys normal operating cycle and other criteria set out in Schedule III of the Companies Act 2013 Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents the Company has ascertained its operating cycle as 12 months for the purpose of current and noncurrent classification of assets and liabilities The Statement of Cash Flows has been prepared under Indirect Method Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use Use of Estimates and Judgments The preparation of the financial statements in conformity with Ind AS requires the Board of Directors Management to make estimates Judgments Assumptions These estimates judgments assumptions affect the application of accounting policies and the reported amounts of assets liabilities the disclosures of contingent assets liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period The application of accounting policies that require critical accounting estimates involving complex and subjective judgments may change from period to period Actual results could differ from those estimates Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material their effects are disclosed in the notes to the financial statements 2 Summary of significant accounting policies a Property plant and equipment Property plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment losses if any Freehold land are stated at cost The cost comprises purchase price borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use Any trade discounts and rebates are deducted in arriving at the purchase price 2 Each part of an item of property plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately When significant parts of plant and equipment are required to be replaced at intervals the Company depreciates them separately based on their specific useful lives Likewise when a major inspection is performed its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied All other repair and maintenance costs are recognized in profit or loss as incurred Subsequent expenditure related to an item of property plant and equipment is added to its book value only if it increases the future benefits from its previously assessed standard of performance All other expenses on existing property plant and equipment including daytoday repair and maintenance expenditure and cost of replacing parts are charged to the statement of profit and loss for the period during which such expenses are incurred Borrowing cost directly attributable to acquisition of property plant and equipment which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use Advances paid towards the acquisition of property plant and equipment outstanding at each balance sheet date is classified as capital advances under other noncurrent assets An item of property plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal Any gain or loss arising on derecognition of the asset calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in the income statement when the Property plant and equipment is derecognized Expenditure directly relating to construction activity is capitalised Indirect expenditure incurred during construction period is capitalised to the extent to which the expenditure is indirectly related to construction or is incidental thereto Other indirect expenditure including borrowing cost incurred during the construction period which is neither related to the construction activity nor is incidental thereto is charged to the statement of profit and loss Cost of assets not ready for use at the balance sheet date are disclosed under capital workinprogress Depreciation methods estimated useful lives and residual value Depreciation is calculated on straight line method using the useful lives estimated by the Management which are equal to those prescribed under Schedule II to the Companies Act 2013 If the Managements estimate of the useful life of a item of property plant and equipment at the time of acquisition or the remaining useful life on a subsequent review is shorter than the envisaged in the aforesaid schedule depreciation is provided at a higher rate based on Managements estimate of the useful life The property plant and equipment acquired under finance leases is depreciated over the assets useful life or over the shorter of the assets useful life and the lease term if there is no reasonable certainty that the company will obtain ownership at the end of the lease term Leasehold land is amortised on a straight line basis over the balance period of lease The assets residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount The residual values are not more than 5 of the original cost of the asset b Investment properties Property that is held for noncurrent rental yields or for capital appreciation or both and that is not occupied by the Company is classified as investment property Investment property is measured initially at its cost including related transaction cost and borrowing cost where applicable Subsequent expenditure is capitalised to the assets carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably All other repairs and maintenance cost are expensed when incurred When part of an investment property is replaced the carrying amount of the replaced part is derecognised Investment properties are depreciated using the straightline method over their estimated useful lives Investment properties generally have a useful life of 2040 years The useful life has been determined based on technical evaluation performed by Managements expert 3 c Intangible assets Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably Intangible assets that are acquired by the Company are measured initially at cost After initial recognition an intangible asset is carried at its cost less any accumulated amortization and accumulated impairment loss Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates An intangible asset is derecognized on disposal or when no future economic benefits are expected from its use and disposal Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss Amortisation methods and periods Intangible assets comprising of computer software and product process patents are amortized on a straight line basis over the useful life of three years which is estimated by the Management The estimated useful lives of intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation method is revised to reflect the changed pattern if any d Research and development Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss Development cost of products are also charged to the Statement of Profit and Loss in the year it is incurred unless a products technological feasibility has been established in which case such expenditure is capitalised These cost are charged to the respective heads in the Statement of Profit and Loss in the year it is incurred The amount capitalised comprises of expenditure that can be directly attributed or allocated on a reasonable and consistent basis for creating producing and making the asset ready for its intended use Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets Expenditure on Regulatory Approval Expenditure incurred for obtaining regulatory approvals and registration of productsprocess patents is charged to the Statement of Profit and Loss e Impairment of nonfinancial assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired If any indication exists or when annual impairment testing for an asset is required the Company estimates the assets recoverable amount An assets recoverable amount is the higher of an assets or cashgenerating units CGU fair value less cost of disposal and its value in use Recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets When the carrying amount of an asset or CGU exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount In assessing value in use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset In determining fair value less cost of disposal recent market transactions are taken into account If no such transactions can be identified an appropriate valuation model is used Impairment losses are recognized in the statement of profit and loss After impairment depreciation is provided on the revised carrying amount of the asset over its remaining useful life When there is indication that an impairment loss recognised for an asset other than a revalued asset in earlier accounting periods no longer exists or may have decreased such reversal of impairment loss is recognised in the Statement of Profit and Loss to the extent the amount was previously charged to the Statement of Profit and Loss 4 f Foreign currency translation i Functional and presentation currency Items included in the financial statements of the entity are measured using the currency of the primary economic environment in which the entity operates the functional currency The financial statements are presented in Indian Rupee INR which is the entitys functional and presentation currency ii Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in statement of profit or loss g Financial Instruments Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments Initial Recognition Financial assets and financial liabilities are initially measured at fair value Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities other than financial assets and financial liabilities at fair value through profit or loss and ancillary costs related to borrowings are added to or deducted from the fair value of the financial assets or financial liabilities as appropriate on initial recognition Transaction cost directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and Loss Classification and Subsequent Measurement Financial Assets The Company classifies financial assets as subsequently measured at amortised cost fair value through other comprehensive income FVOCI or fair value through profit or loss FVTPL on the basis of following the entitys business model for managing the financial assets and the contractual cash flow characteristics of the financial asset i Amortised Cost A financial asset shall be classified and measured at amortised cost if both of the following conditions are met the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding ii Fair Value through other comprehensive income A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding iii Fair Value through Profit or Loss A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through OCI All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value depending on the classification of the financial assets 5 Classification and Subsequent Measurement Financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities i Financial Liabilities at FVTPL Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL Gains or Losses on liabilities held for trading are recognised in the Statement of Profit and Loss ii Other Financial Liabilities Other financial liabilities including borrowings and trade and other payables are subsequently measured at amortised cost using the effective interest method The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period Impairment of financial assets Financial assets other than those at FVTPL are assessed for indicators of impairment at the end of each reporting period The Company recognises a loss allowance for expected credit losses on financial asset In case of trade receivables the Company follows the simplified approach permitted by Ind AS 109 Financial Instruments for recognition of impairment loss allowance The application of simplified approach does not require the Company to track changes in credit risk The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience Derecognition of financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received On derecognition of a financial asset in its entirety the difference between the assets carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset Derecognition of financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability The difference in the respective carrying amounts is recognized in the statement of profit or loss Equity investment in subsidiaries and associates Investment in subsidiaries and associates are carried at cost Impairment recognized if any is reduced from the carrying value Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis to realise the assets and settle the liabilities simultaneously Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently remeasured at fair value Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative h Financial liabilities and equity instruments Classification as debt or equity Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument 6 Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities Equity instruments issued by a Company are recognised at the proceeds received i Taxes i Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss either in other comprehensive income OCI or in equity Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate ii Deferred tax Deferred income tax is recognized using the balance sheet approach deferred tax is recognized on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes Deferred income tax assets are recognized for all deductible temporary differences carry forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority j Inventories Raw material packing material and stores Finished Goods and Work in process Finished Goods and Work in process are valued at cost or net realizable value whichever is lower The cost is determined by reducing from the sales value of inventory the appropriate percentage of gross margin depending on the stage of completion Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and the estimated cost necessary to make the sale The net realizable value of workinprogress is determined with reference to the selling prices of related finished products Raw materials and other supplies held for use in production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realizable value k Revenue recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of when the payment is being made Revenue is measured at the fair value of the consideration received or receivable taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of third parties The Company collects taxes such as GST sales taxvalue added tax service tax etc on behalf of the Government and therefore these are not economic benefits flowing to the Company Hence they are excluded from the aforesaid revenueincome 7 The following specific recognition criteria must also be met before revenue is recognized i Sale of goods Revenue from sale of goods is recognised when the substantial risks and rewards of ownership are transferred to the buyer under the terms of the contract when control of the goods is passed to customer at an amount that reflects the consideration the Company expects to receive The point at which control passes is determined based on terms of agreement with customer or as per general industrymarket practice GST and other taxes on sales are excluded from revenue ii Interest income Interest income including income arising from other financial instruments measured at amortised cost is recognised using the effective interest rate method iii Dividend income Dividends are recognised when right to receive is established iv Export Benefits Export incentives are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds l Employee Benefit Obligations i Shortterm obligations Liabilities for wages and salaries including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled The liabilities are presented as current employee benefit obligations in the balance sheet ii Other longterm employee benefit obligations The earned leave obligations are presented as current liabilities in the balance sheet as the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period regardless of when the actual settlement is expected to occur iii Postemployment obligations The company operates the following postemployment schemes defined benefit plans viz gratuity defined contribution plans viz state governed provident fund scheme and employee pension scheme Gratuity obligations The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets The defined benefit obligation is calculated annually by actuaries using the projected unit credit method The plan assets are administered by the approved gratuity fund trust The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets This cost is included in employee benefit expense in the statement of profit and loss Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur directly in other comprehensive income They are included in retained earnings in the statement of changes in equity and in the balance sheet Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost Defined contribution plans The contribution paidpayable under the schemes is recognised during the period in which the employee renders the related service The company has no further payment obligations once the contributions have been paid The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available 8 m Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception of the lease The arrangement is or contains a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets even if that right is not specifically specified in an arrangement i As a lessee A lease is classified at the inception date as a finance lease or an operating lease Leases of property plant and equipment where the company as lessee has substantially all the risks and rewards of ownership are classified as finance leases Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases Payments made under operating leases are charged to profit or loss on a straightline basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessors expected inflationary cost increases ii As a lessor Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee Amounts due from lessees under finance leases are recorded as receivables at the Companys net investment in the leases Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease Lease income from operating leases where the company is a lessor is recognised in income on a straightline basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases n Provisions Contingent Liabilities and Contingent Assets Provisions are recognised when the Company has a present obligation legal or constructive as a result of a past event and it is probable that an outflow of resources that can be reliably estimated will be required to settle such an obligation A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made is disclosed as a contingent liability Contingent liabilities are also disclosed when there is a possible obligation arising from past events the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company Claims against the Company where the possibility of any outflow of resources in settlement is remote are not disclosed as contingent liabilities Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised However when the realisation of income is virtually certain then the related asset is not a contingent asset and is recognised p Borrowing cost Borrowing costs are interest and other cost that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate EIR applicable to the respective borrowing Borrowing cost that are attributable to the acquisition construction or production of a qualifying asset are capitalised as part of cost of such asset till such time as the asset is ready for its intended use or sale A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale All other borrowing cost are recognised as an expense in the period in which they are incurred q Segment Reporting Identification of Segments An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses whose operating results are regularly reviewed by the companys chief operating decision maker to make decisions for which discrete financial information is available Based on the Management approach as defined in Ind AS 108 the chief operating decision maker evaluates the Companys performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments The Company operates in a single business segment ie manufacture and sale of specialty chemicals Accordingly segment reporting as required under Ind AS 108 Operating Segments is not applicable 9 r Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the company by the weighted average number of equity shares outstanding during the financial year adjusted for bonus elements in equity shares issued during the year Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing cost associated with dilutive potential equity the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares s Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less which are subject to an insignificant risk of changes in value For the purpose of the statement of cash flows cash and cash equivalents consist of cash and shortterm deposits as defined above net of outstanding bank overdrafts as they are considered an integral part of the Companys cash management t Currentnon current classification The Company presents assets and liabilities in the balance sheet based on currentnoncurrent classification An asset is treated as current when it is Expected to be realised or intended to be sold or consumed in normal operating cycle Held primarily for the purpose of trading Expected to be realised within twelve months after the reporting period or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as noncurrent A liability is current when It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading It is due to be settled within twelve months after the reporting period or There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The company classifies all other liabilities as noncurrent Deferred tax assets and liabilities are classified as noncurrent assets and liabilities The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents The company has identified twelve months as its operating cycle u Rounding off amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of Schedule III unless otherwise stated 3 Significant accounting judgments estimates and assumptions The preparation of these financial statements in conformity with the recognition and Management principles of Ind AS requires the Management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented This note provides an overview of the areas that involved a higher degree of judgement or complexity and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements 10 i Fair value measurement of Financial Instruments When the fair values of financial assets and financial liabilities recorded in the financial statements cannot be measured based on quoted prices in active markets their fair value is measured using valuation techniques which involve various judgements and assumptions ii Estimation of net realizable value for inventories Inventory is stated at the lower of cost and net realizable value NRV NRV for completed inventory is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company based on comparable transactions identified iii Impairment of nonfinancial assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired If any indication exists or when annual impairment testing for an asset is required the Company estimates the assets recoverable amount An assets recoverable amount is the higher of an assets or cashgenerating units CGU fair value less cost of disposal and its value in use Recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets When the carrying amount of an asset or CGU exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount In assessing value in use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset In determining fair value less cost of disposal recent market transactions are taken into account If no such transactions can be identified an appropriate valuation model is used iv Recoverability of trade receivables In case of trade receivables the Company follows the simplified approach permitted by Ind AS 109 Financial Instruments for recognition of impairment loss allowance The application of simplified approach does not require the Company to track changes in credit risk The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience v Useful lives of property plant and equipmentintangible assets The Company reviews the useful life of property plant and equipmentintangible assets at the end of each reporting period This reassessment may result in change in depreciation expense in future periods vi Valuation of deferred tax assets The Company reviews the carrying amount of deferred tax assets at the end of each reporting period The policy for the same has been explained under Note above vii Defined benefit plans The cost of the defined benefit gratuity plan and other postemployment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations An actuarial valuation involves making various assumptions that may differ from actual developments in the future These include the determination of the discount rate future salary increases and mortality rates Due to the complexities involved in the valuation and its longterm nature a defined benefit obligation is highly sensitive to changes in these assumptions All assumptions are reviewed at each reporting date NOTES TO AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2026 4 CIRP Resolution Plan The Company was admitted into CIRP vide NCLT Mumbai order dated 05 December 2022 The Resolution Plan submitted by Khitij Polyline Limited was approved by the Committee of Creditors CoC and thereafter by the Honble NCLT on 31 July 2025 Accordingly effect of the Resolution Plan has been given in these financial results including restatement of assets and liabilities as at the implementation date Key features of the Resolution Plan Total resolution amount 2665 Lakhs Payment towards creditors 2314 Lakhs Capex working capital 351 Lakhs Fresh unsecured loans introduced by the Resolution Applicant Equity restructuring carried out as per the approved plan extinguishment and reissuance of equity shares The Resolution Applicant has infused funds amounting to 234213 Lakhs up to 31 March2026 11 5 Going Concern The Company has reported a net loss of 15888 Lakhs during the year ended 31 March 2026 previous year 13037 Lakhs and its Other Equity remains negative 18533 Lakhs However considering the successful implementation of the approved Resolution Plan continued infusion of funds by the Resolution Applicant and the expected revival of operations the management is of the view that the going concern assumption is appropriate Accordingly these financial results have been prepared on a going concern basis 6 Comparative Financial Information The Company had not prepared quarterly financial results for the first three quarters of FY 202425 due to the ongoing CIRP Accordingly comparative quarterly figures have not been presented for those quarters However figures for the year ended 31 March 2025 have been disclosed as required under Regulation 33 of SEBI LODR Regulations 2015 Further as the Resolution Plan was implemented during the year with consequential restatement of assets and liabilities the figures for the year ended 31 March 2025 may not be strictly comparable with current year figures 7 Revenue from Operations The Company has not generated any significant revenue from operations during the year ended 31 March 2026 082 Lakhs for the year The manufacturing operations remain suspended and the management is actively working towards recommencement of production activities pursuant to the Resolution Plan 8 Depreciation Depreciation for the year ended 31 March 2026 amounts to 8932 Lakhs quarter ended 31 March 2026 2197 Lakhs previous year 9067 Lakhs Depreciation is provided on the Straight Line Method as per Schedule II to the Companies Act 2013 with specific management estimates as detailed in Accounting Policy 2a above 9 Exceptional Items There are no exceptional items during the quarter and year ended 31 March 2026 10 Equity Share Capital and Earnings Per Share The paidup Equity Share Capital as at 31 March 2026 is 205780 Lakhs The Basic and Diluted EPS for the year ended 31 March 2026 is 079 previous year 063 computed in accordance with Ind AS 33 Earnings Per Share 11 Statement of Assets and Liabilities The significant changes in Other Equity in the Statement of Assets and Liabilities is primarily on account of implementation of the Resolution Plan which resulted in restatement of borrowings trade payables provisions and other liabilities 12 Previous Year Period Figures Figures for the previous yearperiod have been regroupedreclassified wherever necessary to make them comparable with the current year figures |