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Kothari Petrochemicals Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(i) Goodwill:

Goodwill arises on business combination of external entities with underlying projects and as such is identified to such project i.e. Cash generating unit (CGU). Goodwill ceases to exist upon realization of full value of project.

The recoverable amount of a CGU is determined basis discounted cashflow approach as well as market approach. Market approach examines the price of similar product being sold in the market. In discounted cashflow approach, the projected cashflows are determined over the life cycle of the projects, after considering current economic conditions and trends, estimated future operating results, growth rates etc.

The key assumptions used for the calculation includes: (i) Revenue assumptions comprising of market sale price, growth rate, etc.

(ii) Cost assumptions comprising of brokerage cost, transaction cost on sale, construction cost, cost escalations etc. (iii) Discounting factor (Weighted Average Cost of Capital) assumed in the range of 15% to 17.5%; and (iv) Estimated cash flows from sale of constructed properties etc. for the future years.

(ii) Brand:

Brand arising out of merger was capitalized in accordance with the merger scheme, which has been approved by the Hon''ble High Court of Bombay.

The Company has only one class of equity shares having par value of H 10 per share.

Each Shareholder is entitled for one vote per share. The shareholders have the right to receive interim dividends declared by the Board of Directors and final dividend proposed by the Board of Directors and approved by the Shareholders.

In the event of liquidation, the shareholders will be entitled in proportion to the number of equity shares held by them to receive remaining assets of the Company, after distribution of all preferential amounts.

The nature and purpose of other reserves:

(a) Capital Redemption Reserve - Amount transferred from retained earnings on redemption of preference shares.

(b) Capital Reserve - Reserves created on account of merger.

(d) Share Based Payment Reserve - The fair value of the equity-settled share based payment transactions is recognised in standalone Statement of Profit and Loss with corresponding credit to Share Based Payment Reserve Account.

The Company does not have any charges or satisfaction which is yet to be registered with Registar of Companies as on Balance sheet date, beyond the statutory period.

The Company has availed various borrowings from banks or financial institutions on the basis of security of current assets. Quarterly returns or statements of current assets filed by the Company with the banks or financial institutions are in agreement with the books of account.

36 Significant Accounting Judgements, Estimates And Assumptions

Judgements, Estimates And Assumptions

The Company makes certain judgement, estimates and assumptions regarding the future. Actual experience may differ from these judgements, estimates and assumptions. The estimates and assumptions that have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

(i) Useful Life Of Property, Plant And Equipments, Intangible Assets And Investment Properties

The Company determines the estimated useful life of its Property, Plant and Equipments, Investment Properties and Intangible Assets for calculating depreciation/ amortisation. The estimate is determined after considering the expected usage of the assets or physical wear and tear. The company periodically reviews the estimated useful life and the depreciation/ amortisation method to ensure that the method and period of depreciation/ amortisation are consistent with the expected pattern of economic benefits from these assets.

(ii) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. An assessment is carried to determine whether there is any indication of impairment in the carrying amount of the Company''s assets. If any such indication exists, the asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

(iii) Income Taxes

Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

(iv) Defined Benefit Plans (Gratuity And Leave Obligation Benefits)

The costs of providing pensions and other post-employment benefits are charged to the Standalone Statement of Profit and Loss in accordance with Ind AS 19 ''Employee benefits'' over the period during which benefit is derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

(v) Fair Value Measurement Of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Standalone Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

(vi) Revaluation of Property, Plant and Equipment

The Company measures Land classified as property, plant and equipment at revalued amounts with changes in fair value being recognised in Other Comprehensive Income (OCI). The Company has engaged an independent valuer to assess the fair value periodically. Land is valued by reference to market-based evidence, using comparable prices adjusted for specific market factors such as nature, location and condition of the property.

(vii) Valuation of inventories

The determination of net realisable value of inventory includes estimates based on prevailing market conditions, current prices and expected date of commencement and completion of the project, the estimated future selling price, cost to complete projects and selling cost.

(viii) Income from property development

Revenue is recognised on satisfaction of the performance obligation. The Company recognises revenue in proportion to the actual project cost incurred as against the total estimated project cost.

(ix) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

(1) The Contingent Liabilities exclude undeterminable outcome of pending litigations.

(2) The Company has assessed that it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

d. The Company is committed to provide business and financial support to certain subsidiaries, which are in losses and are dependent on Parent Company for meeting out their cash requirement.

38 In case of pending appeals filed by the Income Tax Department against the favourable orders, the management is confident that the outcome would be favourable and hence no contingent liability is disclosed.

40 Gratuity and Leave Obligation

The Company has a funded defined benefit gratuity plan and is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee''s length of service and salary at retirement age.

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone financial statements are a reasonableapproximation of theirfairvaluessince the Company does notanticipatethatthe carrying amounts would besignificantlydifferent from the values that would eventually be received or settled.

The Company''s principal financial liabilities comprise mainly of borrowings, lease liability, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans and advances, trade and other receivables, cash and cash equivalents and Other balances with Bank.

The Company is exposed through its operations to the following financial risks:

- Market risk

- Credit risk and

- Liquidity risk.

The Company has evolved a risk mitigation framework to identify, assess and mitigate financial risk in order to minimize potential adverse effects on the company''s financial performance. There have been no substantive changes in the company''s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated herein.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.

(i) Interest rate risk

The Company is exposed to cash flow interest rate risk mainly from long-term borrowings at variable rate. Currently the company has external borrowings (excluding short-term overdraft facilities) which are fixed and floating rate borrowings. The Company achieves the optimum interest rate profile by refinancing when the interest rates go down. However this does not protect Company entirely from the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments. The Company considers that it achieves an appropriate balance of exposure to these risks.

The Company capitalises interest to the cost of inventory to the extent permissible, hence, the amount indicated above may have an impact on reported profits over the life cycle of projects to which such interest is capitalised. This calculation also assumes that the change occurs at the balance sheet date and is calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period.

ii) Foreign currency risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company''s customer base, including the default risk of the industry and country, in which customers operate, has less influence on the credit risk.

The Company has entered into contracts for the sale of residential and commercial units on an installment basis. The installments are specified in the contracts. The Company is exposed to credit risk in respect of installments due. However, the possession of residential and commercial units is handed over to the buyer only after all the installments are recovered. In addition, installment dues are monitored on an ongoing basis with the result that the Company''s exposure to credit risk is not significant. The Company evaluates the concentration of risk with respect to trade receivables as low, as none of its customers constitutes significant portions of trade receivables as at the year end.

Credit risk from balances with banks and financial institutions is managed by Company''s treasury in accordance with the Company''s policy. The company limits its exposure to credit risk by only placing balances with local banks and international banks of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.

42 Capital management

For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the owners of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.The Company monitors capital using a gearing ratio and net debt ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents and bank balances other than cash and cash equivalents.

D. Terms and conditions of outstanding balances with related parties

Transactions with related parties are made under normal terms of business and all amounts outstanding are unsecured and will be settled by cheque/ RTGS.

a) Receivables from Related parties

The trade receivables from related parties arise mainly from sale transactions and services rendered and are received as per agreed terms ranging from 90-180 days.

b) Payable to related parties

The payables to related parties arise mainly from purchase transactions and services received and are paid as per agreed terms ranging from 90-180 days.

c) Loans to related party

The loans to related parties are unsecured, effective interest rate upto 10% to subsidiaries and joint ventures except certain interest free loans. Loans are utilised for general business purpose and repayable within 1 to 3 years.

d) Loans from related party

The loans from related parties are unsecured, effective interest rate ranging from 7% to 10% p.a. from subsidiary companies. Loans are utilised for general business purpose and repayable within 1 year.

e) Corporate Guarantee

There have been guarantees provided or received to the banks and financial institution in respect of loan taken by the subsidiaries and joint ventures.

f) Commitments / Support

The Company provides business and financial support to certain subsidiaries which are in losses and is dependent on the Company for meeting out their cash requirements.

44 Segment information

For management purposes, the Company is into one reportable segment i.e. Real Estate development.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of the Company for the purpose of making decisions about resource allocation and performance assessment. The Company''s performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements. Also, the Company''s financing (including finance costs and finance income) and income taxes are managed on a Company basis.

(c) During the year ended 31-March-2025, revenue recognition under point in time method (i.e. completed projects) stood at H28,324 million and over the period method was at H84,223 million including H 28,073 million from completed projects.

During the previous year 31-March-2024, revenue recognition under point in time method (i.e. completed projects) stood at H27,917 million and over the period method was at H62,018 million including H 32,291 million from completed projects.

(e) The transaction price of the remaining performance obligations as at 31-March-2025 H 187,981 million, (31-March-2024 is H176,275 million). The same is expected to be recognised within 1 to 4 years.

54 Share Based Payments

ESOP Scheme 2021 was originally approved as "Lodha Developers Limited - Employee Stock Option Plan 2018â for issue of options to eligible employees (as defined therein) pursuant to the resolution passed by the Board of Directors on February 16, 2018 and by Shareholders on March 20, 2018. The scheme was amended and the nomenclature of the scheme was updated to "Macrotech Developers Limited - Employee Stock Option Plan 2021â ("ESOP Scheme 2021â) pursuant to the resolution passed by the Board and Shareholders on February 13, 2021. The Board has decided on June 22, 2021, not to grant any further options under the ESOP Scheme 2021.

Further, Pursuant to the resolution passed by Board on June 22, 2021 and approved by shareholders on September 03, 2021, the Company had also instituted the ESOP Scheme 2021 - II. The Company has formulated two Plans under the Scheme viz Plan-1 and Plan-2.

The risk free rates are determined based on the average of high and low of the last 12 months of the 10-Year government securities yield in effect at the time of the grant. Expected volatility of the option is based on historical volatility, during a period equivalent to the option life, of the observed market prices of the Industry''s publicly traded equity shares. Volatility calculation is based on historical stock prices using standard deviation of daily change in stock price of the Industry''s publicly traded equity shares. The historical period is taken into account to match the expected life of the option. Dividend yield has been calculated taking into account recent dividend activity.

(d) The expense arising from ESOP Schemes during the year is H735 million (31-March-2024: H708 million)

55 a) The Board of the Company at its meeting held on 30-July-2024, has subject to necessary approvals, considered and approved

Scheme of merger by absorption of three listed subsidiaries namely National Standard (India) Limited, Sanathnagar Enterprises Limited and Roselabs Finance Limited with the Company and their respective shareholders ("Scheme") under Section 232 read with Section 230 of the Companies Act, 2013. The Standalone financial statements have been prepared without giving impact of same as the Scheme is pending for approval.

b) The Company has filed a scheme of merger by absorption of One Place Commercials Private Limited and Palava City Management Private Limited (''Wholly Owned Subsidiaries'') with the Company and their respective shareholders ("Scheme") under section 232 read with section 230 of the Companies Act, 2013, with the Hon''ble National Company Law Tribunal, Mumbai Bench (''NCLT'') on 10-February-2024 with the Appointed Date 01-April-2024. The Scheme is reserved for Order and hence the Standalone financial statements have been prepared without giving impact of the Scheme.

56 Exceptional Items

During the previous year, the Company had fully exited from foreign market by disposing off its entire stake in relation to UK operations, realizing H5,475 million and charging the balance value, including accumulated losses of intermediary overseas subsidaries, in the standalone financial statement as an Exceptional Item.

57 QIP Issue

During the previous year, the Company had alloted 2,98,89,353 equity shares having a face value of H 10 each at premium of H 1,088 per share through Qualified Institutions Placement aggregating to H32,819 million. QIP Expenses of H188 million net of taxes was adjusted against Securities Premium.

58 Other Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) d irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) d irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company does not have any transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

59 Recent Development

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standard under Companies (Indian Accounting Standards) Rules as issued from time to time. For the period ended March 31 2025, MCA has not notified any new standards or amendments to the existing standards which has a material impact on Company.

60 Subsequent Events

There are no subsequent events which require disclosure or adjustment subsequent to the Standalone Financial Statements.

62 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.

Mar 31, 2024

Fair value of Investment Property

The fair value of the Company''s total investment property as at 31^st March 2024 is '' 2,945.99 lakhs ('' 2,805.89 lakhs as at 31^st March 2023). The valuation has been carried out by Mr.Khatib Ahmed, Chartered Engineer.The valuer is not registered under companies (Registered Valuers and valuation) Rules, 2017.

(b) Rights, preferences and restrictions attached to shares:

Equity shares - The Company has issued only one class of equity share having a par value of '' 10 per share.

Each holder of equity share is entitled to one vote per share. All equity share have equal rights to receive or participate in any dividend or other distribution in respect of such shares.

(e) Details of shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts : Nil

(f) Equity Shares movement during 5 years immediately preceding the financial year ended 31^st March 2024:

(i) Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash : Nil

(ii) Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares : Nil

(iii) Aggregate number of equity shares bought back : Nil

(g) Details of Terms of any securities convertible into equity / preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date : Nil

(h) Calls unpaid (showing aggregate value of calls unpaid by directors and officers): Nil

(i) Forfeited shares (amount originally paid-up) : Partly paid shares forfeited for '' 34.04 lakhs.

1. Sanctioned ''2,707.00 lakhs during February 2022 as Capacity Enhancement Project Term Loan. Rate of interest rate is ranging at 7% to 9.50% with repo linked. Availed during the year 2022 - 23 ''1,415.69 lakhs. The entire term loan was fully repaid during the year 2023 - 24.

(a) Liability to existing employees of the Company in respect of gratuity is covered under insurance policy (maintained with Reliance Nippon Life Insurance Company Limited) administered by a Trust maintained for participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).The actuarial valuation is done by an independent external valuer under the Projected Unit Credit Method to ascertain the liability enterprise wise.During the year 2021 - 22, KPL has created separate trust for KPL employees and equitable interest transfer based on actuary valuation were carried out. The following table summarises the components of defined benefit plan cost to be recognised in statement of profit and loss account, other comprehensive income, liability to be recognized in balance sheet and changes in fair value of planned assets.

(a) Contribution to Provident Fund is in the nature of defined contribution plan and are made to Employees Provident Fund Scheme, 1952. Under the Scheme, the Company is required to contribute a specified percentage of payroll cost to the Scheme.The interest as declared by the Government from time to time accrues to the employees under the Scheme.

(b) Contribution to Superannuation Fund is in the nature of defined contribution plan and is remitted to Reliance Nippon Life Insurance Company Limited. Underthe Scheme, the Company is required to contribute a specified percentage of payroll cost to underwriters to enable them to make settlement to the qualifying employees.

(c) Contribution Employeesâ Group Gratuity-cum Life Assurance scheme is in the nature of Defined Benefit plan and is remitted to Reliance Nippon Life Insurance Company Limited. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

(d) Liability for unavailed leave for employees is considered as short term benefit and provided accordingly in books. Liability of unavailed sick leave for employees is considered as long term benefit and accounted on the basis of acturial valution.

Note 32: Capital Management

The Company''s capital management is intended to maximise the return to shareholders of the Company through the optimization of debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans. The funding requirements are met through equity and long term/short term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Note 35: Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest risk and equity price risk), credit risk, liquidity risk and cyber security risk.

The Company seeks to minimise the effect of these risks by using financial instruments such as foreign currency forward contracts and appropriate risk management policies. The Company does not enter into trade financial instruments, including derivative financial instruments for speculative purposes.

a) Foreign currency risk management

The Company is exposed to foreign exchange risk on account of exports. The Company has a forex policy in place whose objective is to reduce foreign exchange risk by deploying the appropriate hedging strategies (forward covers) and also by maintaining reasonable open exposures within the approved parameters depending on the future outlook on currencies.

The forward contracts have been entered into to hedge highly probable sale transactions and trade receivables. Forward cover has been taken for all the export trade receivables as at the above dates. Exposures to other currency is negligible and hence not considered above.

The Company has fully hedged to forex exposures with forward contracts. Hence, there is no impact expected due to fluctuation in exchange rates.

b) Interest rate risk management

The Company uses cash credit for working capital and term loan for capex. The interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of reporting was outstanding for the whole year. A 50 basis point increase or decrease in case of Rupee borrowing is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rate.

If the interest rate were to increase by 50 basis from 31^st March 2024, in case of Rupee borrowings and all other variables were held constant, Impact is Nil as there is no additional annual interest expense as there is no outstanding. (31^st March 2023 ''11.21 lakhs).

c) Equity price risks

The Company''s listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification, by placing limits on equity instruments and party routing through portfolio management services. Reports on the equity portfolio are submitted to the Company''s senior management on a regular basis. The Company''s Board of Directors reviews and approves all equity investment decisions.

Increase or decrease in equity prices by 5% would the expose the listed equity securities at fair value of ''299.12 lakhs by ''1.46 lakhs as at 31^st March 2024

d) Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its k financing activities, including deposits with banks and financial institutions. k

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and controls relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and credit worthiness of its counter parties are periodically monitored and taken up on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low generally, as the major chunk of trade receivables is from oil PSUs and companies with high credit rating. Export markets for spot customers were backed by letter of credit. There is no material expected credit loss based on the past experience. The Company assesses the impairment of trade receivables on a case to case basis and creates loss allowances, if required.

e) Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

f) Cyber security Risk

This risks refers to the potential loss due to a breach or failure of an organizations''s information systems or technology infrastructure.lt may results in financial losses, legal liabilities and damage to an organizationâs reputation which can affectfinancial stability and performance.

It can manifest in various forms, such as hacking, phishing, malware, ransomware, and denial-of-service attacks. These threats can lead to theft of sensitive information, disruption of operations, or destruction of data, all of which can result in financial losses forthe organization.

The company has put in place effective management of cyber security risk by adopting a comprehensive approach that includes implementing of security controls, conducting regular vulnerability assessments, training employees on cyber security best practices. By managing cyber security risk effectively, organizations can protect their financial assets and ensure their ongoing financial stability and success.

Note 36: Events after the reporting period

No adjusting or significant non-adjusting events have occurred between 31^st March 2024, the reporting date and the date of approval of financial statements.The Board of directors recommended a Final dividend of ''1 per equity share in the meeting held on 16^th May 2024.

Note 37: Contingent Liabilities and Commitments			('' in Lakhs)
		As at	As at
	Particulars	31^s1 March 2024	31^st March 2023
	(i) Contingent liabilities
	(a) Claims against the Company not acknowledged as debt	-	-
	(b) Guarantees excluding financial guarantees	1,678.91	1,692.37
	(c) Other money for which company is contingently liable(LC)	-	-
	(ii) Commitments
	(a) Estimated amount of contracts remaining to be executed on capital
	account and not provided for	436.72	999.95
	(b) Uncalled liability on shares and other investments partly paid; and	-	-
	(c) other commitments (specify nature)	-	-

Note 39: Segment Reporting (Ind AS 108)

The Company is engaged in the business of Manufacture and sale of Petrochemical Products which constitutes single business segment. As per management''s perspective, the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported under Ind AS 108.

(ii) Disclosure on borrowings secured against current assets:

The company has working capital facilities from Indian bank. Quarterly returns or statements filed by the company against current assets with the bank and are in agreement with the books of accounts.

(iii) Registration of charges or satisfaction with Registrar of Companies (ROC):

The company has no charges or satisfaction yet to be registered with ROC beyond the statutory period.

Note 41: Exceptional items

During the year, the company scrapped old equipment which have no further use. Gain / (Loss) is shown under Exceptional item.

Note 42: Previous year figures

Previous year figures have been regrouped wherever necessary to correspond with current yearâs classification/ disclosure.

Mar 31, 2023

Fair value of Investment Property

The fair value of the Company''s total investment property as at 31^st March 2023 is ''2,805.89 lakhs (''2,665.87 lakhs as at 31^st March 2022). The valuation has been carried out by Mr.Khatib Ahmed, Chartered Engineer.The valuer is not registered under companies (Registered Valuers and valuation) Rules, 2017.

(e) Details of shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts: Nil

(f) Equity Shares movement during 5 years immediately preceding the financial year ended 31^st March 2023:

(i) Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash : Nil

(ii) Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares: Nil

(iii) Aggregate number of equity shares bought back: Nil

(g) Details of Terms of any securities convertible into equity / preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date: Nil

(h) Calls unpaid (showing aggregate value of calls unpaid by directors and officers): Nil

(i) Forfeited shares (amount originally paid-up): Partly paid shares forfeited for '' 34.04 lakhs.

1. Sanctioned amount ''250.00 lakhs disbursed during July 2020 for Covid emergency loan. 80% secured by stocks and book debts and 20% clean. Balance outstanding as on 31^st March 2023 was ''16.99 Lakhs. Rate of interest linked to one year MCLR of Bank, with annual reset interest ranging between 7.50% to 7.55%. Principal repayable in 30 equal monthly instalments starting from February 2021.

2. Sanctioned ''2,707.00 lakhs during February 2022 as Capacity Enhancement Project Term Loan. Rate of interest rate is ranging at 7% to 9.50% with repo linked. Availed during the year ''1,415.69 Lakhs and balance outstanding as on 31^st March 2023 was ''2,224.61 lakhs. The term loan is secured with exclusive charge on project assets created out of this loan. Monthly installment repayment of ''56.40 lakhs starting from January 2023.

(a) Liability to existing employees of the Company in respect of gratuity is covered under insurance policy (maintained with Reliance Nippon Life Insurance Company Limited) administered by a Trust maintained by Kothari Petrochemicals Limited (KPL).The actuarial valuation is done by an independent external valuer under the Projected Unit Credit Method to ascertain the liability enterprise wise. During the year2021-22, KPLhas created separate trust for KPLemployees and equitable interesttransferbasedonactuary valuation were carried out.Thefollowingtablesummarisesthecomponentsof defined benefit plan cost to be recognised in statement of profit and loss account, other comprehensive income, liability to be recognized in balance sheet and changes in fair value of planned assets.

(a) Contribution to Provident Fund is in the nature of defined contribution plan and are made to Employees Provident Fund Scheme, 1952. Under the Scheme the Company is required to contribute a specified percentage of payroll cost to the Scheme. The interest as declared by the Government from time to time accrues to the employees under the Scheme.

(b) Contribution to Superannuation Fund is in the nature of defined contribution plan and is remitted to Reliance Nippon Life Insurance Company Limited. Under the Scheme the Company is required to contribute a specified percentage of payroll cost to underwriters to enable them to make settlement to the qualifying employees.

(c) Contribution to Employees'' Group Gratuity-cum Life Assurance scheme is in the nature of Defined Benefit plan and is remitted to Reliance Nippon Life Insurance Company Ltd. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

(d) Liability for unavailed leave for employees is considered as short term benefit and provided accordingly in books.

Note - 32: Capital Management

The Company''s capital management is intended to maximise the return to shareholders of the Company through the optimization of debt and equity balance.

Note - 35: Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

a) Foreign currency risk management

b) Interest rate risk management

Interest rate sensitivity analysis

If the interest rate were to increase by 50 basis from 31^st March 2023, in case of Rupee borrowings and all other variables were held constant,Impact of ''11.21 lakhs as additional annual interest expense on floating rate borrowing would arise as on 31^st March 2023. (31^st March 2022 ''5.49 lakhs).

c) Equity price risks

Increase or decrease in equity prices by 5% would the expose the listed equity securities at fair value of ''268 lakhs by ''13.41 lakhs as at 31^st March 2023 (''10.21 lakhs - as on 31^st March 2022).

d) Credit risk management

Credit risk refers to the risk that acounter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and controls relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and credit worthiness of its counter parties are periodically monitored and taken up on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as the major chunk of trade receivables is from oil PSUs with high credit rating. There is no material expected credit loss based on the past experience. The Company assesses the impairment of trade receivables on a case to case basis and creates loss allowances, if required.

e) Liquidity risk management

f) Cyber security Risk

This risks refers to the potential loss due to a breach or failure of an organizations''s information systems or technology infrastructure. It may results in financial losses, legal liabilities and damage to an organization''s reputation which can affect financial stability and performance.

Note 36: Events after the reporting period

No adjusting or significant non-adjusting events have occurred between 31^st March 2023, the reporting date and the date of approval of financial statements.The Board of Directors recommended a Final dividend of '' 0.75 per equity share in the meeting held on 26^th May 2023.

note - 37: Contingent Liabilities and Commitments		('' in Lakhs)
	As at	As at
particulars	31^st March 2023	31^st march 2022
(i) Contingent liabilities
(a) Claims against the Company not acknowledged as debt:	-	-
(b) Guarantees excluding financial guarantees:	1,692.37	1,161.50
(c) Other money for which company is contingently liable(LC)	-	-
(ii) Commitments
(a) Estimated amount of contracts remaining to be executed on capital
account and not provided for	999.95	1,023.54
(b) Uncalled liability on shares and other investments partly paid; and	-	-
(c) other commitments (specify nature).	-	-

Note - 39: Segment Reporting (Ind AS 108)

(ii) Disclosure on borrowings secured against current assets:

The company has working capital facilities from Indian bank. Quarterly returns or statements filed by the company against current assets with the bank and are in agreement with the books of accounts.

(iii) Registration of charges or satisfaction with Registrar of Companies (ROC):

The company has no charges or satisfaction yet to be registered with ROC beyond the statutory period.

Note - 41: Exceptional items

Last year, the company scrapped old equipment which have no further use, the carrying amount in books was derecognised and shown under exceptional loss. During the year, the company has realized proceeds from the disposals of the old equipments which was scrapped during March 2022. The resultant gain is shown under exceptional item.

Note - 42: Previous year figures

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

Mar 31, 2021

Rights, preferences and restrictions

Equity shares - The Company has issued only one class of equity share having a par value of '' 10 per share.

Each holder of equity share is entitled to one vote per share. All equity share have equal rights to receive or participate in any dividend or other distribution in respect of such shares.

Bonus shares/Buy back/Shares for consideration other than cash issued during the period of five years immediately preceding the financial year ended 31^st March 2021:

(i) Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash: Nil

(ii) Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares: Nil

(iii) Aggregate number of equity shares bought back: Nil

* Term loan from Indian Bank, sanctioned amount '' 250.00 lakhs disbursed during July 20. 80% secured by stocks and book debts and 20% clean. Rate of interest linked to one year MCLR of Bank, with annual reset interest ranging at 7.50%. Principal repayable in 30 equal monthly instalments starting February 2021.

HDFC Term Loan and Car loan fully repaid during Sep 20.

** The facilities are secured by first charge on hypothecation of stocks and book debts.

(a) Liability to existing employees of the Company in respect of gratuity is covered under a common insurance policy (maintained with Reliance Nippon Life Insurance Company Limited) administered by a Trust maintained for participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The actuarial valuation is done by an independent external valuer under the Projected Unit Credit Method to ascertain the liability enterprise wise. The following table summarises the components of defined benefit plan cost to be recognised in statement of profit and loss account, other comprehensive income, liability to be recognised

(c) Contribution Employees'' Group Gratuity-cum Life Assurance scheme is in the nature of Defined Benefit plan and is remitted to Reliance Nippon Life Insurance Company Limited. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

Note - 32: Capital Management

The Company''s capital management is intended to maximise the return to shareholders of the Company through the optimization of debt and equity balance.

Fair value of investments in Mutual Funds is based on Net asset value (NAV) declared by mutual fund houses at the reporting date.

There are no reclassification between different levels during the year.

Note - 35: Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest risk and other price risk), credit risk and liquidity risk.

a) Foreign currency risk management

b) Interest rate risk management

Interest rate sensitivity analysis

If the interest rate were to increase by 50 basis from 31^st March 2021, in case of Rupee borrowings and all other variables were held constant, no additional annual interest expense on floating rate borrowing would arise as there is no loan outstanding as on 31^st March 2021. (31^st March 2020''12 lakhs).

c) Other price risks

The Company does not have any investments in equity shares and hence is not exposed to any equity price risks.

d) Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and controls relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and credit worthiness of its counter parties are periodically monitored and taken up on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as the major chunk of trade receivables is from oil PSUs with high credit rating. There is no material expected credit loss based on the past experience. The Company assesses the impairment of trade receivables on a case to case basis and creates loss allowances, if required.

e) Liquidity risk management

Note - 39: Segment Reporting (Ind AS 108)

The Company is engaged in the business of Manufacture and sale of Petrochemical Products which constitues single business segment. As per management''s perspective, the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported under Ind AS 108.

Note - 40: Previous year figures

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

Mar 31, 2018

Note - 1 CORPORATE OVERVIEW

Kothari Petrochemicals Limited (referred to as âKPLâ or the âCompanyâ) are the Manufacturers of Poly Iso Butylene. The registered office of the Company is situated at âKothari Buildingsâ, No.115, Mahatma Gandhi Salai, Nungambakkam, Chennai - 600 034.

The functional and presentation currency of the Company is Indian Rupee, which is currency of the primary economic environment in which the Company operates.

The financial statements for the year ended 31 March, 2018 were approved for issue by the Board of Directors of the Company on 25 May, 2018 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

Notes :

(a) Experience adjustment has been provided only to the extent of details available.

(b) Estimates of future salary increase take into account of inflation, seniority, promotion and other relevant factors.

(c) The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligation.

(d) The Companyâs gratuity funds are managed by the M/s. Reliance Nippon Life Insurance Company Limited and therefore the composition of the fund assets is not presently ascertained.

(e) The Companyâs best estimate of the contribution expected to be paid to the plan during the next year is Rs.19.13 lakh (as on 31 March, 2017 Rs.29.51 lacs).

Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and attrition rate. The sensitivity analysis below has been determined based on reasonable possible changes of the assumptions occurring at the end of the reporting period., while holding all other assumptions constant. The results of sensitivity analysis are given below:

*Trade payables are non interest bearing and are normally settled between 0 and 90 days.

*The Company has requested its suppliers to confirm the status as to whether they are covered under the Micro, Small and Medium Enterprises Development Act 2006. In the absence of confirmation from the suppliers, disclosures, if any, relating to unpaid amounts as at the year end together with interest paid/payable as required under the Act has not been given.

(d) Liability for unavailed leave for employees is considered as short term benefit and provided accordingly in books.

Note - 2 Capital Management

The Companyâs capital management is intended to maximise the return to shareholders of the Company through the optimization of debt and equity balance.

Note - 3 Fair value of financial assets and liabilities

The Company considers that the carrying amount of financial assets and financial liabilities recognised at amortised cost in the balance sheet approximates their fair value. Fair value hierarchy of these financial assets and liabilities are categorized as Level 3.

Level 1 - Quoted price in an active market.

Level 2 - Discounted cash low. Future cash lows are estimated based on forward exchange rates and contract rates, discounted at a rate that refects the credit risk of various counterparties.

Level 3 - Discounted cash low method is used to capture the present value of the expected future economic benefit that will low to the company.

Note - 4 Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

a) Foreign currency risk management

The forward contracts have been entered into to hedge highly probable sale transactions and trade receivables. Forward cover has been taken for all the export trade receivables as at the above dates.

b) Interest rate risk management

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of reporting was outstanding for the whole year. A 50 basis point increase or decrease in case of Rupee borrowing is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rate.

If the interest rate were to increase by 50 basis from March 31,2018, in case of Rupee borrowings and all other variables were held constant, additional annual interest expense on floating rate borrowing would amount to approximately Rs.16 lacs (31 March 2017 Rs.12 lacs).

c) Other price risks

The Company does not have any investments in equity shares and hence is not exposed to any equity price risks.

d) Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

Customer credit risk is managed by each business unit subject to the Companyâs established policy, procedures and controls relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and credit worthiness of its counter parties are periodically monitored and taken up on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as the major chunk of trade receivables is from oil PSUs with high credit rating. There is no material expected credit loss based on the past experience. The Company assesses the impairment of trade receivables on a case to case basis and creates loss allowances if required.

e) Liquidity risk management

The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments as at 31st March 2018.

Note - 5 Events after the reporting period

No adjusting or significant non-adjusting events have occurred between 31st March 2018, the reporting date and the date of authorisation except non-adjusting event of proposal of dividend of Re.0.75 per share on face value of Rs.10 each on the paid up Equity Share Capital of the Company subject to the approval of shareholders at the ensuing Annual General Meeting.

Note â 6A Notes to reconciliation

Footnotes to the reconciliation

a) Investment property

Under the previous GAAP, investment properties were presented as part of Property, Plant and Equipment. However under the Ind AS, Investment properties are required to be presented separately on the face of the balance sheet. There is no impact on the total equity or profit as a result of this presentation.

b) Deferred Taxes

Under the previous GAAP, deferred taxes were to be accounted on timing differences arising between the accounting profit and tax profit. However, such method has been replaced with balance sheet approach in Ind AS, wherein deferred taxes are to be accounted for the differences arising between accounting balance sheet and tax balance sheet. Accordingly deferred taxes has been accounted for such temporary differences.

c) Borrowings

Under the previous GAAP, transaction cost incurred in connection with borrowings were amortised upfront and charged to statement of profit and loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to the statement of profit and loss using the effective interest method.

d) Derivatives

Under the previous GAAP the fair value of forward contracts were not recognised in the books of accounts. However these are fair valued under Ind AS and the gains or losses arising due to fair valuation are recognised in the retained earnings on the date of transition and subsequently in the statement of profit and loss. The impact of MTM valuation on total equity as at March 31, 2017 is a reduction of Rs.4.66 lakhs. The net impact of profit before tax is a reduction of Rs.2.96 lakhs.

e) Actuarial gains and losses

Under the previous GAAP, actuarial gains and losses were recognised in profit or loss statement. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset and are recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss. The actuarial gain for the year ended March 31, 2017 were Rs. 0.18 lakhs and the tax effect thereon Rs. 0.06 lakhs. This change does not affect total equity,but there reduction in profit before tax by Rs. 0.18 lakhs.

f) Other comprehensive income

Under the previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

g) Interest-free rental advances / deposits

Under the previous GAAP, interest-free rental advances paid and deposits received were not required to be fair valued. Under Ind As, interest-free rental deposit received in respect of the investment property and interest-free rental advance paid for properties taken on lease are required to be fair valued.

Note - 7 Consolidation of Foreign Subsidiaries

The Companyâs foreign subsidiaries, Kothari Petrochemicals Pte Ltd, Singapore and Kothari Petrochemicals HK Ltd, Hong Kong had closed down their operations during the financial year 2016-17. As there was no Holding-Subsidiary relationship at any time during the financial year 2017-18, consolidation of their financial statements is not applicable.

Note - 8 Previous year figures

Previous year figures have been regrouped/reclassified wherever necessary to correspond with current yearâs classification /disclosure.

Mar 31, 2016

Note 1: Excise Duty

Excise Duty on sales for the year has been ''disclosed as reduction'' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in âChanges in Inventories of Finished goods Note-21â for current year.

Note 2: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs.225.71 Lakhs (Previous year Rs.6.19 Lakhs)

Note 3 : Contigent Liability

Excise Duty demands against which the company has filed appeals and for which no provision is considered, as outcome of appeals is not ascertainable at this stage is Rs.154.72 Lakhs. (Previous year Rs.154.72 Lakhs).

Note 4: Employee Benefits

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises Viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL).The actuarial valuation is done by an independent external valuer under the projected unit credit method to ascertain the liability enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated.

The company has recognized Rs.2.26 Lakhs (previous year Rs.3.69 Lakhs) in the Statement of Profit & Loss for the year ended 31st March 2016.

Note 5: Micro, Small and Medium Enterprises Development Act, 2006

The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act, 2006, the disclosure relating to amounts unpaid as at the yearend together with interest payable / paid under this Act have not been given.

Note 6: Operating Lease

A sum of Rs.137.07 Lakhs (previous Year Rs.137.09 Lakhs) has been debited to rent account, being the rent paid on premises which has been taken on operating lease.

Note 7: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits include items which are in the process of confirmation and have, in the opinion of the management a value on realization in the ordinary course of business at least equal to the amount at which they are stated. Trade Payables are stated at a value they are liable to be paid.

Note 8: Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the Land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of process for registration of Land.

Note 9: Previous year Figures

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

Mar 31, 2015

Note 1:

A. CORPORATE INFORMATION:

Kothari Petrochemicals Limited (Company) was incorporated on 28th April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of chemicals since its inception in 1989 and at present the company is one of the largest producers of Poly Iso Butene (PIB) in India.

Note 2: Excise Duty

Excise Duty on sales for the year has been 'disclosed as reduction' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in "other operating revenue under Note 18" for the current year.

Note 3: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs.6.19 Lacs (Previous year Rs. 19.92 Lacs) Note 28 : Contigent Liability

Excise Duty demands against which the company has filed appeals and for which no provision is considered, as out come of appeals is not ascertainable at this stage is Rs.154.72 lacs. (Previous year Rs.154.72 lacs).

Note 4: Value of Raw Materials,Chemicals and Stores and Spares consumed

Note 5: Related Part Transactions:

Refer separate working on Related Party Transactions in Annexure - I at Page Nos. 67 - 68 Note 33: Earnings in Foreign Currency Realised During the year

Note 6: Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The actuarial valuation is done by an independent external valuer under the projected unit credit method to ascertain the liability enterprise wise.The net defined benefit is recognised in the financial statement as a cost equal to their contribution payable estimated.

The company has recognised Rs.3.69 Lacs (previous year Rs.Nil) in the Statement of Profit & Loss for the year ended 31st March 2015.

Note 7: Segment reporting Segment Information :

a) The company has only one primary business segment that of Manufacturing Poly Iso Butene.

b) Secondary Reporting Segment (by Geographical Segment)

Note 8: Micro,Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act, 2006, the disclosure relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 9: Operating Lease

A sum of Rs.137.09 Lacs (previous Year Rs.113.63 Lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 10: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits include items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Trade Payables are stated at a value they are liable to be paid.

Note 11: Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the Land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of process for registration of Land.

Note 12: Depreciation

The Company has changed the method of providing Depreciation from 1st April 2014 as required by Companies Act, 2013. Depreciation is hence provided in accordance with Schedule II for the current year as against the rates specified Schedule XIV to the companies Act,1956 adopted in the previous year. As a result Depreciation in the current year higher by Rs.24.50 lacs.

Further in respect of asets whose remaining useful life as prescribed in Schedule II to Companies Act 2013 is Nil, their carrying amounts as on 01st April 2014 after retaining the residual value aggregating to Rs.127.92 (excluding Deferred Tax Rs.43.48 lacs) has been taken to Reserves and Surplus.

Note 13: Previous Year Figures

Previous year figures have been regrouped / reclassified whereever necessary to correspond with current year's classifications / disclosure.

Related party disclosures - As identified by the Management and relied upon by the Auditors

(i) Parties with Significant influence (Direct and Indirect)

Promoter Company Kothari Sugars & Chemicals Ltd.

Holding Company BHK Trading Pvt. Ltd.

Company in Joint Control Kothari International Trading Ltd.

Company in Joint Control Santoor Commercials Pvt. Ltd.

Company in Joint Control Kothari Biotech Ltd.

Company in Joint Control Kothari Safe Deposits Ltd.

Company in Joint Control Century Foods Pvt. Ltd.

Company in Joint Control Parvathi Trading & Finance Co. Pvt. Ltd.

Company in Joint Control HCK NAPC Mines and Ores Pvt. Ltd.

Company in Joint Control Parasakthi Trading Co. Pvt. Ltd.

Affiliated Trust HCK Education and Development Trust

Wholly owned Subsidiary Kothari Petrochemicals Pte. Ltd., Singapore

Step down Subsidiary Kothari Petochemicals HK Ltd., Hong Kong

(ii) Key Management Personnel

Chairman Mr. B H Kothari (till 22nd February 2015)

Mar 31, 2014

Note 1: Excise Duty

Excise Duty on Sales for the year has been ''disclosed as reduction'' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in " other operating revenue under Note -19" for the current Year.

Note 2:

A. CORPORATE INFORMATION:

Kothari Petrochemcials Limited ( Company) was incorporated on 28th April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of chemicals since its inception in 1989 and at present the company is one of the largest producers of premium quality Poly Isobutene in India.

Note 3: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs. 19.92 Lacs (Previous year Rs. Nil)

Note 4: Contingent Liabilities

a. Bank guarantees Rs. 395.88 (Previous year. Rs. 383.58 Lacs)

b. Sales-tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage is Rs.154.72 lacs (Previous Year Rs. 157.88 lacs)

Note 5: Employee Beneits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The actuarial valuation is done by an independent external valuer under the Projected Unit Credit method to ascertain the liability enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated

The Company has recognized Rs. Nil amount (Previous Year Rs.6.94 Lacs) in the Statement of Profit & Loss for the Year ended 31st March, 2014.

Note 6: Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 7: Operating Lease

A sum of Rs. 113.63 lacs (Previous Year Rs.36.90 lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 8: Earning Per Share

Net Profit after Tax for the year has been used as the numerator and number of Shares has been used as denominator for calculating the basic and diluted earning per Share.

Note 9: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits include items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Sundry Creditors are started at a value they are liable to be paid.

Note 10: urban Land Tax

No provision is considered necessary towards urban land tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the Process for registration of land.

Note 11:

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

Mar 31, 2013

A. CORPORATE INFORMATION:

Kothari Petrochemicals Limited (Company) was incorporated on 28*April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of Chemicals since its inception in 1989, the company has been enjoying a strong market position in India with a rapidly growing brand across the globe that represents quality, customer responsiveness, dependability and a commitment to the environment and at present the company is one of the largest producers of premium quality Poly Iso butene in India.

Note 1: Excise Duty

Excise Duty on Sales for the year has been ''disclosed as reduction''from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note-26 "Other Expenses" for the current year and in Note-19 "Other Operating Revenue" for the previous year.

Note 2: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs.Nii (Previous Year Rs.Nil) Note 29: Contingent Liabilities

a. Bank guarantees Rs.383.58 Lacs (Previous year.Rs.328.44 Lacs)

b. Sales-tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage is Rs.157.88 Lacs (Previous Year Rs.157.88 Lacs)

Note 3: Value of Raw Materials, Chemicals and Stores and Spares consumed:

Note 4: Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The Actuarially valued liabilityunderthe Projected Unit Credit method for the employees of the participating enterprise of the Trust is calculated enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated.

Note 5: Segment Reporting Segment Information

a) Primary segment reporting (by Business Segments)

(i) The Company has considered business segment as the primary segment for disclosure these are:

(i) Poly Iso Butene (PIB)

(ii) Power Generation (Wind Mill)

Note 6: Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 7 Rental Income

Asum of Rs. 123.02 lacs (PreviousYear Rs.55.81 lacs) has been considered as rental Income from property pending finalization of Lease agreement.

Note 8: Operating Lease

A sum of Rs.36.90 lacs ( Previous Year Rs.32.80 lacs ) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 9: Earning Per Share

Net Profit after Tax for the year has been used as the numerator and number of Shares has been used as denominator for calculating the basic and diluted earning per Share.

Note 10: Discontinuing Operations

During the year, the power generation operations have been discontinued and Windmill was sold on 21st February, 2013 for Rs.915.50 lacs.

Note 11: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits includes items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Sundry Creditors are started at a value they are liable to be paid.

Note 12: Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the process for registration of land.

Note 13: Previous Year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classification / disclosure.

Mar 31, 2012

Note - 1 - Excise Duty

Excise Duty on Sales for the year has been 'disclosed as reduction' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note-20 "Other income" for the Current Year and in Note-26 "Other Expenses" for the previous year.

Note - 2 - Commitments

Estimated amount of Contracts remaining to be executed on Capital account and not provided for Rs. NIL (Rs.925 lacs)

Note - 3 - Contingent Liabilities

a. Bank guarantees Rs.328.44 Lacs (Previous year.Rs.318 Lacs)

b. Sales-Tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage Rs.157.88 lacs (Previous Year Rs.110.38 lacs)

Note - 4 Related Party Transactions:

Related party disclosures - As identified by the Management and relied upon by the auditors

(i) Parties with Significant influence (Direct and Indirect) (a) Promoter Company Kothari Sugars & Chemicals Limited

(b) Associate Company Kothari International Trading Limited

(c) Associate Company Kothari Safe Deposits Limited (d) Associate Company Century Foods Pvt. Limited

(e) Associate Company Parvathi Trading & Finance Co. Pvt. Limited

(ii) Key Management Personnel (a) Chairman & Managing Mr. B.H.Kothari Director

Note - 5 - Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The Actuarially valued liability under the Projected Unit Credit method for the employees of the participating enterprise of the Trust is calculated enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated. The Company has recognized Rs.3.73 lakhs (Previous Year Rs.6.66 lakhs) in the Statement of Profit & Loss for the Year ended 31st March, 2012. Accrued Liability towards Gratuity ascertained as per actuarial valuation is Rs.37.19 lacs which is covered by a common Insurance Policy reffered above.

Note - 6 - Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act, 2006. The disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

Note - 7 - Operating Lease

A sum of Rs.55.81 lacs (Previous Year Nil) has been recognized as rental Income from commercial property situated at Bengaluru pending finalization of Lease agreement.

Note - 8 - Acknowledgement of Balances

The Company has obtained confirmation of balances from all the banks and has sent confirmation of balances to Debtors and Creditors and responses have been received in a few cases.

Note - 9 - Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the Process for registration of land.

Note - 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 current year's classification/ disclosure.

Mar 31, 2010

1. Acknowledgement of balances

The Company has obtained confirmation of balances from all the banks and has sent letter of request for confirmation of balances to Debtors and Creditors and replies have been received in a few cases.

2. Contingent Liabilities

a. Estimated amount of Contracts remaining to be executed on Capital account & not provided for amount to Rs. Nil (Rs.Nil )

b. Bank guarantees Rs. 318 lacs (Previous year.Rs.100 lacs)

c. Excise demand under appeal Rs.82.08 lacs.

3. The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

4. CIF Value of Imports : Nil

5. The Goodwill of Rs.753 lakhs arising out of the merger effective from 1st April 2006 of PTPL with the company is being amortized over a period of five years with effect from 1st April 2006 in equal install- ments. During the Year Rs.150.60 lakhs amortized being fourth Year.

6. No provision is considered necessary towards urban land tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the process for registration of land.

7. Employee benefits

Liability to existing employees of the company in respect of gratuity is covered under a common insur- ance policy in favour of Kothari Sugars & Chemicals Gratuity Trust. The cumulative liability of the employees is actuarially valued by the trust under projected unit credit method. Investments available for policy and contribution being effected are adequate to cover the liability of the employees.

8. Previous year figures have been regrouped and rearranged wherever necessary to Confirm to the classification for the year.

Mar 31, 2000

1. Estimated value of contracts remaining to be executed on capital account and not provided for Rs.5,21,904/-(Rs.11,76,104)

2. Contingent liability on account of Bank Guarantee Rs.53.70 Lacs (Rs.53.10 Lacs)

3. Outstanding letters of credit for import of spares Rs.9.85 Lacs (Rs. 1.21. Lacs)

4. Future lease rental commitments Rs.91,77,862/- (Rs.1,43,81,996/-)

5. The balances in debtors, advances and sundry creditors have been circularised and replies are awaited. Loans and Advances include Rs.14,43,750/-covered by court cases. In the opinion of the Board the current assets, loans & advances will realise at least the values stated in the accounts.

6. Due by Manager- Rs.NIL (Rs.32,627)

Maximum amount outstanding at any time during the year Rs.32,627/- (Rs.75,827)

7. Sundry Creditors include Rs.10,03,502/-due to Small Scale and ancillary undertakings to the extent such parties have been identified by the management and relied upon by Auditors. The Company has normally made payments to SSI units in due time and also there being no claim from the parties, interest if any on overdue payments is unascertainable and thus not provided for. The names of SSI units to whom amounts of Rs.1 Lakh and above are due for more than 30 days are given below:

Ellak Chem Industries

Prem Chemical Industries

Shiva Alkaline Chemicals

8. Expenditure in foreign currency during the year on account of foreign travel was Rs.1,03,1167- (Rs.2,17,630)

9. The post of the Secretary which fell vacant on 30.04.2000 has not yet been filled up under Section 383 A of the Companies Act 1956.

10. Figures in brackets relate to previous year.

11. Previous years figures have been regrouped wherever necessary to conform to the classification for the year.

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