Notes to Accounts of Bharat Rasayan Ltd.

Mar 31, 2023

1. Rights, Preferences and Restrictions attaching to shares

Equity Shares: The Company has one class of Equity Shares having a par value of ''10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

‘Further In respect of the accidental fire broke out in one of the Block, i.e. Block-D at GIDC Dahej, District Bharuch, Gujarat (India), on 17th May, 2022, the Management is continuing the process of submitting requisite information to Surveyor and the Surveyor is continuing the process of review of claim. Hence, the Depreciation as per Companies Act, 2013 and Income Tax Act, 1961 is being continued to charged on entire book value / written down value method respectively. The Company is taking all appropriate safety measures to avoid recurrence of any such eventuality in future.

NOTE NO. 33 : Capital Management

The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to share holders and benefit to other stake holders.

Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company maintain an optimal capital structure of Debt equity to reduce the cost of capital. The company''s debts includes interest bearing borrowings from Promoters/Directors and Banks.

NOTE NO. 35 : Financial Risk Management ⁼

The Company’s principal financial liabilities comprise Borrowings (including Cash Credits), T rade Payables and other payables. The main purpose of these financial liabilities is to finance the company’s operations and to provide guarantees to support its operation. The Company’s principal financial assets includes trade receivables, other receivables and cash and cash equivalents that derive directly from its operations. The Company is expose to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriated policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors reviews and agrees policies for managing each of these risk, which are summarized below:-

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes Borrowings.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective.

c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, Security deposits and other financial instruments. The maximum credit risk as on the reporting risk is equal to the carrying value of the financial instruments.

d) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Company having Cash Credit facilities from various banks for maintaining the short term financial requirement.

36 Key sources of Estimation uncertainty

The followings are the key assumptions concerning the future, and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities with next financial year.

a) Fair valuation measurement and valuation process

The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.

c) Useful Life of PPE

Company has defined useful life of property plant and equipment in accordance with Schedule-II of the Companies Act, 2013.

d) Leases

Ind AS-116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term relects the current economic circumstances.

Amount ('' in Lakhs))
S.No	Particulars	As at	As at
		31.03.2023	31.03.2022
NOTE NO. 37 : Contingent Liabilities
i)	Guarantees Given to: The New India Assurance Company Limited1	1,300.00
	Dakshin Gujarat Vij Company Limited, Dahej, Gujarat The Commissioner of Customs	309.98 182.08	347.65 14.30
	SHV Energy Pvt. Ltd.	12.00	12.00
	Gujarat Pollution Control Board	7.50
ii)	Surety given to Dy. Excise & Taxation Commissioner (S.T Rohtak)	8.16	8.16
iii)	Surety given to Customs and Central Excise Commissioner, Jammu (J&K)	1,600.00	1,600.00
		3,419.72	1,982.11

There was no revenue recognised in the current reporting period that related to performance obligations that were satisfied in a prior year.

42 Ind AS-116 "Leases Disclosures" are as under:-a) Company as a Lessee

The Company as a lessee has entered into various lease contracts, which includes lease of land, office space and godowns. Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease.

43 Covid-19 Disclosures

The Company has considered the possible effects that may result from Covid-19 in the preparation of its financial results including the recoverability of carrying amounts of financial and non-financial assets. ln developing the assumptions relating to the possible future uncertainties in the global economic conditions because of Covid-19, the Company has used internal and external sources of information and expects that the carrying amount of the assets will be recovered.“The actual impact of this global health pandemic may be different from that which has been estimated, as the Covid- 19 situation evolves in India and globally. However, the Company will continue to closely monitor any material changes to future economic conditions.

44 Disclosures in compliance with Ind AS 27 "Separate Financial Statements" are as under:

Bharat Rasayan Limted has established a Joint venture company "Nissan Bharat Rasayan Private Limited" with the Nissan Chemical Corporation by agreement dated 18.02.2020 in the investment proportion of the 30% and 70% respectively.

45 Operating segment are reported in the manner consistent with the internal reporting provided to Chief Operating Decision Maker(CODM). CODM has identified only one operating segment, hence no separate disclosure are required.

46 Disclosures pursuant to amendment in Schedule III of the Companies Act 2013:

The MCA vide notification dated 23rd March 2021 has amended Schedule Ill to the Companies Act. 2013 in respect of certain disclosures which are applicable from 1st April 2021. The Company has incorporated the changes as per the said amendment in the financial statements and below disclosures are made in compliance of the said amendment :

(i) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the period.

(ii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the period.

(iii) The Compnay do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(iv) The Company do not have any prior period errors to be disclosed separately in statement of changes in equity.

(v) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(vi) The Company have 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) directly 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

(vii) The Company have 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) directly 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,

(viii) The Company does not have any loans and advances in the nature of loans to promoters, directors, KMP and other related parties.

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

(x) The Company has not been declared as wilful defaulter by any bank or financial institution or government or any government authority.

(xi) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xii) The Company do not have any title deeds of immovable properties not held in name of the company.

(xiii) The Company does not have any investment property.

(xiv) Company has submitted statement of current assets with the bank and statement filed by the company are reconciled with the books of accounts and no material difference.

(xv) The Company has not revalued any item of property, plant and equipment.

(xvi) The Company does not have any transactions where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date

(xvii) The Company have not entered into any scheme(s) of arrangements during the financial year.

1

Bank Guarantee issued on 31.03.2023 (validity period from 01.04.2023 to 31.05.2023).

37.1 : Contingent Assets

Company having contingent assets of '' 71.45 Lakh ('' 70.66 Lakh as on 31/03/2022) as on 31.3.2023 from various customers in respect of claims against bounced cheques and Civil Suit of '' 23.16 Lakh.

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Mar 31, 2022

Nature and Purpose of Other Reserves:

(a) Retained Earnings

Retained Earnings represents the undistributed profits of the Company.

(b) General Reserve

General Reserve represents the statutory reserves, this is in accordance with Corporate Law wherein a portion of profit is apportioned to General Reserve. Under Companies Act, 2013, the transfer of any amount to General Reserve is at the discretion of the Company.

(c) Capital Redemption Reserve

Capital Redemption Reserve represents the amount buy back in Current Period.

NOTE NO. 33 : Capital Management

The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to share holders and benefit to other stake holders.

Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company maintain an optimal capital structure of Debt equity to reduce the cost of capital. The company''s debts includes interest bearing borrowings from Promoters/Directors.

NOTE NO. 35 : Financial Risk Management

The Company''s principal financial liabilities comprise Borrowings (including Cash Credits), Trade Payables and other payables. The main purpose of these financial liabilities is to finance the company''s operations and to provide guarantees to support its operation. The Company''s principal financial assets includes trade receivables, other receivables and cash and cash equivalents that derive directly from its operations. The Company is expose to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriated policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors reviews and agrees policies for managing each of these risk, which are summarized below:-

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes Borrowings.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective.

c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, Security deposits and other financial instruments. The maximum credit risk as on the reporting risk is equal to the carrying value of the financial instruments.

d) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Company having Cash Credit facilities from various banks for maintaining the short term financial requirement.

36 Key sources of Estimation uncertainty

The followings are the key assumptions concerning the future, and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities with next financial year.

a) Fair valuation measurement and valuation process

The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.

c) Useful Life of PPE

Company has defined useful life of property plant and equipment in accordance with Schedule-II of the Companies Act, 2013.

d) Leases

Ind AS-116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term relects the current economic circumstances.

43 Covid-19 Disclosures

The Company has considered the possible effects that may result from Covid-19 in the preparation of its financial results including the recoverability of carrying amounts of financial and non-financial assets. ln developing the assumptions relating to the possible future uncertainties in the global economic conditions because of Covid-19, the Company has used internal and external sources of information and expects that the carrying amount of the assets will be recovered.

The actual impact of this global health pandemic may be different from that which has been estimated, as the Covid- 19 situation evolves in India and globally. However, the Company will continue to closely monitor any material changes to future economic conditions.

44 Disclosures in compliance with Ind AS 27 "Separate Financial Statements" are as under:

Bharat Rasayan Limted has established a Joint venture company "Nissan Bharat Rasayan Private Limited" with the Nissan Chemical Corporation by agreement dated 18.02.2020 in the investment proportion of the 30% and 70% respectively.

Equity investments in joint ventures are measured at cost as per the provisions of Ind AS 27 on ''Separate Financial Statements''.

45 Operating segment are reported in the manner consistent with the internal reporting provided to chief operating decision maker (CODM). CODM has identified only one operating segment, hence no separate disclosure are required.

46 Disclosures pursuant to amendment in Schedule III of the Companies Act 2013:

The MCA vide notification dated 23rd March 2021 has amended Schedule Ill to the Companies Act. 2013 in respect of certain disclosures which are applicable from 1st April 2021. The Company has incorporated the changes as per the said amendment in the financial statements and below disclosures are made in compliance of the said amendment :

(i) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the period.

(ii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the period.

(iii) The Compnay do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(iv) The Company do not have any prior period errors to be disclosed separately in statement of changes in equity.

(v) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(vi) The Company have 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) directly 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

(vii) The Company have 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) directly 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,

(viii) The Company does not have any loans and advances in the nature of loans to promoters, directors, KMP and other related parties.

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

(x) The Company has not been declared as wilful defaulter by any bank or financial institution or government or any government authority.

(xi) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xii) The Company do not have any title deeds of immovable properties not held in name of the company.

(xiii) The Company does not have any investment property.

(xiv) Company has submitted statement of current assets with the bank and the statement filed by the company are reconciled with the books of accounts and no material difference.

(xv) The Company has not revalued any item of property, plant and equipment.

(xvi) The Company does not have any transactions where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date

(xvii) The Company have not entered into any scheme(s) of arrangements during the financial year.

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Mar 31, 2021

Note : 3.1 Impairment of Assets (Ind AS- 36) : The Management periodically assess using, external and internal source, whether there is an indication that an assets may be impaired and Company foresee on such impairment indication as on the balance sheet date.

Note : 3.2 Land includes leasehold lands by GIDC (Gujarat): (i) Factory land located at Dahej (Gujarat) valued ''.743.16 Lakhs (lease period starts from 11.08.2010 and is valid till 99 years); (ii) Residential Plot at Atali, Dahej (Gujarat), valued ''78.50 Lakhs (lease period for 99 years), and (iii) Factory land located at Saykha valued ''1525.81 Lakhs has been sold to M/s. Nissan Bharat Rasayan Private Limited.

The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to share holders and benefit to other stake holders.

Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company maintain an optimal capital structure of Debt equity to reduce the cost of capital. The company''s debts includes interest bearing borrowings from Promoters/Directors.

The Company''s principal financial liabilities comprise Borrowings (including Cash Credits), Trade Payables and other payables. The main purpose of these financial liabilities is to finance the company''s operations and to provide guarantees to support its operation. The Company''s principal financial assets includes trade receivables, other receivables and cash and cash equivalents that derive directly from its operations.

The Company is expose to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriated policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors reviews and agrees policies for managing each of these risk, which are summarized below:-

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes Borrowings.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective.

c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, Security deposits and other financial instruments. The maximum credit risk as on the reporting risk is equal to the carrying value of the financial instruments.

d) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Company having Cash Credit facilities from various banks for maintaining the short term financial requirement.

NOTE NO. 36 : Key Sources of Estimation uncertainty

The followings are the key assumptions concerning the future, and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities with next financial year.

a) Fair valuation measurement and valuation process

The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.

c) Useful Life of PPE

Company has defined useful life of property plant and equipment in accordance with Schedule-II of the Companies Act, 2013.

d) Leases

Ind AS-116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term relects the current economic circumstances.

42 Disclosure as required by Ind AS 1 "Presentation of Financial Statements"

Changes in significant accounting policies:

Policy of ‘Leases'' has been modified in the significant accounting policies due to the applicability of Ind AS 116 "Leases" during the F.Y 2019-20.

Ind AS 116 was notified with effect from April 1,2019 which replaces Ind AS 17. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet.

Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in Ind AS 17. Therefore, Ind AS 116 did not have an impact for leases where the Company is the lessor.

The Company adopted Ind AS 116 using the modified retrospective method of adoption with the date of initial application of April 1,2019. Under this method, the standard is applied retrospectively with the cumulative effect of initially applying the standard recognised at the date of initial application. The Company elected to use the transition practical expedient not to reassess whether contract is or contains lease at April 01, 2019. Instead, the Company applied the standards only to contracts that were previously identified as leases applying Ind AS 17.

The Company has lease contracts for office buildings, land and godowns. Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. Upon adoption of Ind AS 116, the Company applied a single recognition and measurement approach for all leases except for short-term leases.

Company has recognized the right of use assets under the head of the Property, Plant and Equipment as per the guidance given under Ind AS-116.

Leases previously classified as finance leases

The Company did not change the initial carrying amounts of recognised assets at the date of initial application for leases previously classified as finance leases (i.e., the right-of-use assets equal the lease assets recognised under IAS 17). The requirements of Ind AS 116 were applied to these leases from April 01,2019 by adjustment through modified retrospective method.

Leases previously accounted for as operating leases

The Company recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases. The lessee recognizes a lease liability measured at the present value of the remaining lease payments, discounted using the lessee''s incremental borrowing rate at the date of initial application and correspondingy measured the right-of-use asset at an amount equal to the lease liability, adjusted for previously recognized prepaid or accrued lease payments.

The Company also applied the available practical expedients wherein it:

(i) Used a single discount rate to a portfolio of leases with reasonably similar characteristics

(ii) Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial application and the total lease term is less than 12 months

(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application

(iv) Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease

43 Ind AS-116 "Leases Disclosures" are as under:-a) Company as a Lessee

The Company as a lessee has entered into various lease contracts, which includes lease of land, office space and godowns. Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease.

44 COVID-19 Disclosures

The World Health Organisation (WHO) declared outbreak of novel Coronavirus (COVID -19) a global pandemic on March 11,2020. Consequent to this, Government of India declared nationwide lockdown on March 24, 2020 and ordered temporarily closure of non-essential businesses, imposed restrictions on the movement of goods and services, travel etc.

The plant operations of the Company were under shutdown due to nationwide lockdown. In view of the unprecedented COVID-19 pandemic and economic forecasts, the Management has assessed the recoverability of its assets including receivables & inventories. In such assessment, the Company has considered internal and external information upto the date of approval of these financial statements including economic forecasts. The Company has performed analysis on the assumptions used and based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company, the specialty chemical industry and the economies in which the Company operates.

(i) Financial performance

The Company believes that for the year 2020-21, there has been no significant impact of Covid19 pandemic on the financial performance of the Company in terms of revenue and profitability of the Company.

(ii) Liquidity

The Company has access to sufficient liquidity for its operation.

The Company expects to recover the carrying amount of its assets comprising property, trade receivables, deferred taxes, other financial and non-financial assets etc. in the ordinary course of business based on information available on current economic conditions.

45 Disclosures in compliance with Ind AS 27 "Separate Financial Statements" are as under:

Bharat Rasayan Limted has established a Joint venture company "Nissan Bharat Rasayan Private Limited" with the Nissan Chemical Corporation by agreement dated 18.02.2020 in the investment proportion of the 30% and 70% respectively.

46 Operating segment are reported in the manner consistent with the internal reporting provided to chief operating decision maker(CODM). CODM has identified only one operating segment, hence no separate disclosure are required.

47 Ministry of Corporate Affairs (MCA), vide its notification dated March 24, 2021, amended Schedule III of the Companies Act, 2013 with effect from April 1,2021. Management is of the view that since the changes are applicable from April 1,2021, those are applicable for the financial year commencing from April 1, 2021 and are applicable to Financial statements issued in respect of accounting years commencing on or after April 1st, 2021. Therefore, related disclosures are not considered in these financial statements for the year ended on March 31,2021.

48 Approval of financial statement

The Standalone financial statements were approved for issue by the Board of Directors on 29th June 2021.

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Mar 31, 2018

1. General Information

Bharat Rasayan Limited is a public limited company domiciled in India and was incorporated on May 15, 1989 for the business of manufacturing of technical grade pesticides. It has a backward integration project to manufacture Technical Grade Pesticides Intermediates and their formulations confirming to International Standards. It is Listed on National Stock Exchange of India Limited.

The address of its registered office is 1501, Vikram Tower Rajendra Place, New Delhi - 110008.

2.1: The Company has adopted to continue with carrying of its property, plant and equipment as recognised in the financial statement as at the date of transition to Ind-AS measured as per previous GAAP.

2.2: Impairment of Assets (Ind-AS 36): The Management periodically assess using external and internal source, whether there is an indication that an assets may be impaired and Company foresee on such impairment indication as on the Balance Sheet Date.

2.3: Land includes leasehold lands by GIDC (Gujarat): (i) Factory land located at Dahej (Gujarat) valued Rs.743.16 Lacs (lease period starts from 11.08.2010 is valid till 99 years); (ii) Residential Plot at Atali, Dahej (Gujarat) valued Rs.78.50 Lacs (lease period for 99 years); and (iii) Located at Saykhea valued Rs.1525.81 Lacs (lease period starts from February 2018 and is valid till 99 years).

3.1 Company has adopted to continue with carrying value of its Capital Work in Progress as recognized in the financial statements as at the date of transition to Ind AS measured as per previous GAAP.

4.1 Company has adopted to continue with carrying value of its Intangible Assets as recognized in the financial statements as at the date of transition to Ind AS measured as per previous GAAP.

5.1.1:- Security deposits amounting Rs.146.06 Lacs ( 31.03.2017: Rs.107.02 Lacs and 01.04.2016: Rs.107.07 Lacs) is related to the Government Departments.

6.1.1: Rs.363.09 Lacs [31.03.2017: Rs.218.47 Lacs and 01.04.2016: Rs.225.35 Lacs] represents fixed deposit placed with the banks against LC/BG issued.

1. Rights, Preferences and Restrictions attaching to shares

Equity Shares: The Company has one class of Equity Shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

7.3 Aggregate no. of equity shares issued as fully paid by way of bonus during the period of five years immediately preceding the reporting date

*Note-A : Primary Security : First charge on Pari-Passu basis with Axis Bank on the fixed assets of the company at Dahej including Equitable Mortgage (EM) of Land and Building at Plot No. 42/4, GIDC, Village Dahej, Distt. Bharuch, Gujarat. Collateral Security : Second charge on Pari-Passu basis on the residual fixed assets of the company (excluding Dahej & Medak Property) including factory land and building located at Village Mauza Mokhra, Tehsil Meham, Distt. Rohtak, Haryana.

Second charge on Pari-Passu basis on the residual current assets of the company.

*Note-B : Primary Security : First charge on pari-passu basis including hypothecation of stocks of raw material, stores and spares, stock-in-process, finished goods including goods in transit, book debts/receivables/foreign bills and all other current assets of the Company. Collateral Security : A) First charge on pari-passu basis with all the working capital lenders on the fixed assets of the Company (excluding WDV of all fixed assets of Dahej unit and excluding WDV of land & building at Medak, including equitable mortgage of factory, land and building and all other fixed assets located at village Mauza Mokhra, Tehsil Meham, Distt. Rohtak, Haryana. B) Second charge on pari-Passu on the fixed assets at Dahej unit of the Company (excluding land and building) for securing working capital facilities.

*Note: R&D Expenses:- The Company is registered as Research & Development Unit (R&D) with Ministry of Science & Technology, Govt. of India, Department of Scientific & Industrial Research, New Delhi, hence eligible for weighted deduction U/S 35(2AB) of the Income Tax Act on expenditure incurred for the purpose. Total expenditure of Rs.115.52 Lacs {Revenue Expense of Rs.94.79 Lacs net of depreciation of Rs.6.54 Lacs and Capital Expenditure of Rs.20.72 Lacs} (During the F.Y 2016-17 Rs.74.09 Lacs {Revenue Expense of Rs.73.15 Lacs net of depreciation of Rs.7.40 Lacs and Capital Expenditure of Rs.0.94 Lacs}) are eligible for weighted deduction U/S 35(2AB) of the Income Tax Act, 1961.

8.1 Basic/Diluted Earning per Share

The earnings and weighted average number of equity shares used in calculation of basic and diluted earning per share.

NOTE NO. 9 : Capital Management

The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to share holders and benefit to other stakeholders.

Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company maintain an optimal capital structure of Debt equity to reduce the cost of capital. The company’s debts includes interest bearing borrowings from Promoter’s Directors.

(a) The carrying amounts of trade receivables, cash and cash equivalents, bank balance other than cash and cash equivalent, other financial assets, trade payables and financial liabilities are considered to the same as their fair values, due to short term nature.

(b) Long term variable rate borrowings are evaluated by Company on parameters such as interest rates, specify country risk factors and other risk factors. Based on this evaluation, the fair value of such payables are not materially different from their carrying amount.

(c) For Other Financial assets and liabilities that are measured at fair value, the carrying amount are equal to fair values.

NOTE NO. 10 : Financial Risk Management

The Company’s principal financial liabilities comprise Borrowings (including Cash Credits), Trade Payables and other payables. The main purpose of these financial liabilities is to finance the company’s operations and to provide guarantees to support its operation. The Company’s principal financial assets includes trade receivables, other receivables and cash and cash equivalents that derive directly from its operations.

The Company is expose to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriated policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risk which are summarized below:-

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes Borrowings.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective.

c) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, Security deposits and other financial instruments. The maximum credit risk as on the reporting risk is equal to the carrying value of the financial instruments.

d) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Company having Cash Credit facilities from various banks for maintaining the short term financial requirement.

NOTE NO. 11 : Key sources of Estimation uncertainty

The followings are the key assumptions concerning the future and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities with next financial year.

a) Fair valuation measurement and valuation process

The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

b) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.

c) Useful Life of PPE

Company has defined useful life of property plant and equipment in accordance with Schedule-II of the Companies Act, 2013.

12.1 : Contingent Assets

Company having contingent assets of Rs.13.13 Lacs as on 31.3.2018 from various customers in respect of claims against bounced cheques.

Sensitivity analysis:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the statement of financial position.

NOTE NO. 13 : Corporate Social Responsibility

As per the requirement of the provisions of Companies Act, 2013, the Company has made Corporate Social Responsibility contribution.

NOTE NO. 14 : Operating segment are reported in the manner consistent with the internal reporting provided to Chief Operating Decision Maker (CODM). CODM has identified only one operating segment, hence no separate disclosure are required.

NOTE NO. 15 : Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 30.05.2018.

NOTE NO. 16 : First time adoption of Ind AS

These financial statements, for the year ended 31st March, 2018, are the first the company has prepared in accordance with Ind-AS. For periods up to and including the year 31st March, 2017, the company prepared its financial statements in accordance with the Indian GAAP, including accounting standards notified under the companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly the company has prepared financial statements which comply with Ind-AS applicable for the periods on or after 31st March, 2018, together with the comparative period data as at and for the year ended 31st March, 2017, as described in the summary of the significant accounting policies. In preparing these financial statements, opening balance sheet of the Company was prepared as at 1st April, 2016, date of transition to Ind-AS. This note explains the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

Exemptions applied Ind-AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind-AS Company has applied the following exemptions:

(1) Estimates

The estimates at 1st April, 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the entity to present these amounts in accordance with Ind AS reflect conditions at 1st April, 2016, the date of transition to Ind-AS and as at 31st March, 2017.

(2) Deemed Costs

The Company has elected to continue with the previous GAAP carrying value of all Property Plant and Equipment and Intangible Asset as recognised in the previous GAAP financial statements as deemed cost at the transition date, as there is no change in the functional currency of the Company.

(3) Long term Foreign Currency Monetary Items

Company continuing the previous GAAP accounting policy for exchange differences arising from translation of existing long term foreign currency monetary items recognised in the financial statements on the loan taken on or before 31st March, 2017.

NOTES TO FIRST TIME ADOPTION OF IND-AS

Note :- 1 Proposed Dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the Balance Sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind-AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs.50.98 Lacs and Dividend Distribution Tax of Rs.10.38 Lacs thereon as at April 1, 2016 included under provisions under previous GAAP which has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note:- 2 Adjustment of Tax related to the Prior Years

Tax related to previous year during FY 2016-17 has been regrouped to Statement of Profit and Loss account from retained earning, which results in to decrease in Profit after Tax for the FY 2016-17 amounting to Rs.12.83 Lacs, however there is no impact on other equity.

Note:- 3 Remeasurement of Defined Benefit Liability

Under Ind AS, remeasurements i.e. actuarial gains & losses of Rs.22.40 Lacs on the net defined benefit liability are recognised in the other comprehensive income which was earlier recognised in profit and loss under previous GAAP. However, due to reclassification of this items of Profit and Loss as Other Comprehensive income, there is no impact on total equity.

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Mar 31, 2017

NOTE NO. - 1

DISCLOSURE ON SPECIFIED BANK NOTES FROM 08-11-2016 TO 30-12-2016 (SBN)

The company have specified bank note or other denomination note as defined in the MCA notification G.S.R. 308 (E) dated 31.03.2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 08-11-2016 to 30-12-2016. The denomination wise SBNs and other notes as per the notification is given below:

For the purpose of this clause, the term "Specified Bank Note" shall have the same meaning as provided in the notification of Government of India, in the Ministry of Finance, Department of Economic Affairs No. S.O. 3407 (E) dated 08-11-2016.

NOTE NO. - 2.

PROPOSED DIVIDEND

The Board has declared dividend @15% on face value i.e. '' 10 each subject to shareholders approval

As per revised AS 4 issued wide notification of MCA G.S.R. 364 (E) dated 30th March, 2016, If an enterprise declares dividends to the shareholders after the balance sheet date, the enterprise should not recognize those dividends as a liability at the balance sheet date unless a statute requires otherwise such dividends should be disclosed In the notes. The Total Dividend liability including Dividend Distribution Tax would be '' 76,70,525/NOTE NO. - 2.31

CORPORAT SOCIAL RESPONSIBILITY

As per the requirement of the provisions of Companies Act, 2013, the Company has made Corporate Social Responsibility contribution.

NOTE NO. -3 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.PGupta Whole Time Director

iv) Shri V.K.Sharma Executive Director

v) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vi) Shri Dinesh Gupta Son of Shri S.N.Gupta

vii) Smt. Savita Gupta Wife of Shri M.P. Gupta

viii) Shri Vikas Gupta Son of Shri M.P Gupta

ix) Smt. Manju Gupta Wife of Shri R.P Gupta

x) Shri Sahil Gupta Son of Shri R.P Gupta

xi) Ms. Neha Gupta Daughter of Shri R.P. Gupta

b) Related Entities

i) Bharat Insecticides limited

ii) B R Agrotech Limited

iii) S.N.Gupta & Sons (HUF)

iv) M.P Gupta & Sons (HUF)

v) R.P. Gupta & Sons (HUF)

vi) Bharat Agrochem

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Mar 31, 2016

MflTF wn .o OR

NOTE NO. - 1: The Company is liable to pay income tax of Rs,17,32,10,522/- under normal tax provisions of Act for the year.

NOTE NO. - 2. RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.PGupta Whole Time Director

iii) Shri R.PGupta Whole Time Director

iv) Shri V.K.Sharma Executive Director

v) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vi) Shri Dinesh Gupta Son of Shri S.N.Gupta

vii) Smt. Savita Gupta Wife of Shri M.P Gupta

viii) Shri Vikas Gupta Son of Shri M.P Gupta

ix) Smt. Manju Gupta Wife of Shri R.P Gupta

x) Mr. Sahil Gupta Son of Shri R.P Gupta

xi) Ms. Neha Gupta Daughter of Shri R.P Gupta

b) Related Entities

i) Bharat Insecticides Limited

ii) B R Agrotech Limited

iii) S.N.Gupta & Sons (HUF)

iv) M.P Gupta & Sons (HUF)

v) R.P Gupta & Sons (HUF)

vi) Bharat Agrochem

Note: Related Party Transactions are as identified by the Company and relied upon by the Auditors.

NOTE NO. - 3 : As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is ''79.73 (Last Year ''74.73).

Shri Amit Gupta ceased to be a member of the Committee w.e.f. 01.02.2016

During the year, the Committee had met on 01.04.2015, 01.07.2015, 01.10.2015 and 01.01.2016.

Number of Directorships includes Board Memberships held in our Company as well as in other companies excluding alternate directorship, directorship in Private Companies, Foreign Companies and Companies registered under Section 8 of the Companies Act, 2013.

Shri Amit Gupta ceased to be a Director w.e.f. 01.02.2016.

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Mar 31, 2015

A) Rights, preferences and restrictions attached to Equity shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

NOTE NO. - 1.1 As at As at 31.03.2015 31.03.2014

CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in Lacs) (Rs. in Lacs)

NOT PROVIDED FOR IN RESPECT OF

i) Guarantees Given to:

- Addl. Excise & Taxation Commissioner, Panchkula - 5.00

- Dakshin Gujarat Vij Company Limited, Dahej, Gujarat 80.83 80.83

- Gujarat Pollution Control Board, Dahej, Gujarat 12.00 12.00

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 8.16 8.16

iii) Surety given to Customs and Central Excise Commissioner, Jammu (J&K) 1,400.00 250.00

NOTE NO. - 1.2 : The Company is liable to pay income tax of Rs.15,27,38,697/- under normal tax provisions of Act for the year which was much more than the liability under MAT provisions. The Company has set off full amount of brought forwarderd MAT credit of Rs.76,63,597/- during the year.

NOTE NO. - 1.3 : RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Shri V.K.Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vii) Shri Dinesh Gupta Son of Shri S.N.Gupta

viii) Smt. Savita Gupta Wife of Shri M.P.Gupta

ix) Shri Vikas Gupta Son of Shri M.P.Gupta -

x) Smt. Manju Gupta Wife of Shri R.P.Gupta -

xi) Shri Sahil Gupta Son of Shri R.P.Gupta

b) Related Entities

i) Bharat Insecticides limited

ii) B R Agrotech Limited

iii) BRL Finlease Limited

iv) Centum Finance Limited

v) Synochem Organics Pvt. Limited

vi) S.N.Gupta & Sons (HUF)

vii) M.P Gupta & Sons (HUF)

viii) R.P Gupta & Sons (HUF)

NOTE NO. - 1.4 : As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs.74.73 (Last Year Rs.47.42).

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Mar 31, 2014

1.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2014 (Rs. in Lacs)

i) Guarantees given to:

- Addl. Excise & Taxation Commissioner, Panchkula 5.00

- Dakshin Gujarat Vij Company Limited, Dahej, Gujarat 80.83

- Gujarat Pollution Control Board, Dahej, Gujarat 12.00 97.83

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T.Rohtak) and Customs and Central Excise Commissioner, Jammu (J&K) 258.16

1.2 The Company is liable to pay income tax of Rs. 8,51,39,994/- under normal tax provisions of Act for the year. The Company has set off MAT of Rs.2,08,76,943/-from the brought forwarded MAT balance of Rs.2,85,40,540/- and carried forward for set off for next years Rs.76,63,597/- under the head Short Term Loans and Advances. The same has therefore not considered for current taxes.

1.3 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Shri V.K.Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vii) Shri Dinesh Gupta Son of Shri S.N.Gupta

viii)Smt. Savita Gupta Wife of Shri M.P. Gupta

ix) Shri Vikas Gupta Son of Shri M.P. Gupta

x) Smt. Manju Gupta Wife of Shri R.P. Gupta

xi) Shri Sahil Gupta Son of Shri R.P. Gupta

b) Related Entities

i) Bharat Insecticides limited ii) B R Agrotech Limited iii) BRL Finlease Limited iv) Centum Finance Limited v) Synochem Organics Pvt. Limited vi) S.N.Gupta & Sons (HUF) vii) M.P. Gupta & Sons HUF viii)R.P. Gupta & Sons HUF

1.4 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 47.42 (Last Year Rs. 22.56).

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Mar 31, 2013

1. Loss in transit-Export Consignment : The Company had exported goods to China in August, 2012. The Cargo carrying the goods met wild fire in transit and the vessel carrying the goods was forced to detain in transit. The exported goods of the Company in the vessel however could be saved from fire which could not land the port of destination up to the date of signing of this report. In the meantime the market rate of exported goods slides down drastically. The difference in market price of the said goods on 31.03.2013 over the billing price of the consignment was therefore booked as loss in transit - Export Consignment under the head Exceptional Items.

2. Insurance claim towards loss of stock due to fire : Company received a sum of Rs.26,246,535/- in the preceding year towards insurance claim against loss of stocks in fire at its factory at Hyderabad (A.P.) during the financial year 2007-08. As the loss was booked as an expenditure in Profit & Loss Account in the financial year 2007-08, claim against it is credited to the Statement of Profit & Loss of the preceding year under the head Exceptional Item.

3.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2013 (Rs. in Lacs)

i) Guarantees given to Addl. Excise & Taxation Commissioner, Panchkula 5.70

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 258.16

and Customs and Central Excise Commissioner, Jammu (J&K)

iii) In respect of certain disallowances confirmed by Hon''ble Delhi High Court in the case of the Company for Asstt. Year 1997-98 to 2001-02, the demand has not yet ascertained and hence

3.2 As the Hon''ble Punjab & Haryana High Court strucked down the constitutional validity of Haryana Local Area Development Tax (LADT) imposed by the Haryana Govt., the Company has applied for refund of LADT deposited in the earlier years. However, matter is subjudice.

3.3 The Company is liable to pay income tax of Rs.28,232,701/- under MAT provisions for the year under reference as the taxable income as per normal provisions of the Act is negative. The Company has reasons to believe and is assured of its set off out of coming years profits. The total such tax alongwith brought forward balance of Rs.307,839/- from earlier years is carried forward for set off at Rs.28,540,540/- under the head Short Term Loans and Advances. The same has therefore not considered for current taxes.

3.4 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

Note : Related Party Transactions are as identified by the Company and relied upon by the Auditors.

3.5 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 22.56 (Last Year Rs. 23.14).

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Mar 31, 2012

A. Rights, preferences and restrictions attached to shares:

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

As per Accounting Standard AS-22 on Accounting for taxes on income, the Company had recorded the cumulative net deferred tax liability up to 31.03.2011 of Rs. 18,609,587/-. For the current year the Company has recorded the Cumulative Net Deferred Tax Liability of Rs.15,067,118/- and the difference of Rs.3,542,469/- has been charged to Statement of Profit and Loss.

Out of the total provision of Rs. 1,927,332/-, a sum of Rs. 299,685/- pertaining to the Dahej unit, which is under construction, is capitalized during the year. Out of the balance of Rs. 1,627,647/-, Rs. 1,446,666/- added back for tax purposes U/s 43B of the Income Tax Act and the remaining balance of Rs. 180,981/- pertains to R&D and Grouped accordingly.

Retirement Benefits : Contributions are made to Approved Employees' Provident Fund. In respect of Gratuity, the Company has opted for Group Gratuity Life Insurance Scheme of the Life Insurance Corporation of India and Reliance Life Insurance Company Limited.

Balances of Sundry Debtors, Advances to Suppliers and Creditors and Advances from Customers are subject to confirmation.

Trade Receivables outstanding for a period exceeding six months from the date they are due for payment disclosed separately. Calculation of such debts in the preceding year was from the billing date.

The manufacturing unit at Dahej (Gujarat) of Company is under construction, plant & machinery and equipments are under procurement and installation. The Borrowing cost of Rs.1,43,57,156/- relating to acquisition/construction of qualifying assets has been capitalised during the year. All other borrowing costs are charged to statement of profit and loss. The total Capital WIP of Dahej Unit includes accumulated borrowing cost of Rs. 37,347,964/- upto 31.03.2012.

Note: R&D Expenses - The Company is registered as Research & Development Unit (R&D) with Ministry of Science & Technology, Govt. of India, Department of Scientific & Industrial Research, New Delhi, hence eligible for weighted deduction U/S 35 (2AB) of the Income Tax Act on expenditure incurred for the purpose. Total expenditure of Rs.68,58,325/- (Revenue Expense of Rs.49,29,893/- and Capital Expenditure of Rs.19,28,432/-) are eligible for weighted deduction under Section 35(2aB) of the Income Tax Act, 1961.

Insurance Claim towards loss of stock due to fire

Company received a sum of Rs.2,62,46,535/-during the year towards insurance claim against loss of stocks in fire at its factory at Hyderabad during the financial year 2007-08. As the loss was booked as an expenditure in Profit & Loss Account in the financial year 2007-08, claim against it is credited to the Statement of Profit & Loss for the year under the head "Exceptional Items".

1.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2012 (Rs. in Lacs)

i) Guarantees given to Addl. Excise & Taxation Commissioner, Panchkula 5.70

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 8.16

iii) 1. In respect of certain disallowances confirmed by Hon'ble Delhi High Court in the case of the Company for Asstt. Year 1997-98 to 2001-02, the demand has not yet ascertained and hence not taken into account.

2. In respect of the erstwhile amalgamating company Siris Crop Sciences Limited, following are the disputed/contingent liabilities:

1.2 As the Hon'ble Punjab & Haryana High Court strucked down the constitutional validity of Haryana Local Area Development Tax (LADT) imposed by the Haryana Govt., the Company has applied for refund of LADT deposited in the earlier years. However, matter is subjudice.

1.3 Out of the total MAT Credit available Rs. 14,834,871/-, a sum of Rs. 14,527,033/- is utilized during the current year and accordingly the same is adjusted into the provision for income tax liability in Balance Sheet.

1.4 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Dr V. K. Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N. Gupta

vii) Shri Dinesh Gupta Son of Shri S.N. Gupta

b) Related Entities

i) Bharat Insecticides Limited ii) B R Agrotech Limited

iii) BRL Finlease Limit ed iv) Centum Finance Limited

v) Synochem Organics Pvt. Limited

1.5 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs.23.14 (Last Year Rs.13.86).

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Mar 31, 2010

1. Corresponding figures of the previous year have been regrouped and/or re-arranged wherever necessary.

2. Cost of goods consumed/sold includes cost of raw materials, consumable stores, fuels/oils, packing materials & utilities.

3. Inventory have been valued at lower of cost or net realisable value. Raw Materials are valued on the basis of FIFO. In the case of finished goods cost comprises material, labour and factory overheads. Goods in process have been valued at raw material cost incurred upto the stage of production + conversion cost apportioned. Other Inventories are valued at cost. All the stocks have been certified by the management.

4. Sales have been accounted for exclusive of sales tax and excise duty wherever applicable and are net of returns and discounts. Exports benefits under DEPB scheme have been accounted for separately. The Export benefits are accrued on the date of export. Sales do not include captive consumption.

5. Contingent Liabilities not provided for in respect of :

As at 31.03.2010 As at 31.03.2009 Rs. in Lacs Rs. in Lacs

i) Guarantees Given to Addl. Excise &

Taxation Commissioner, Panchkula 5.70 -

ii) Surety given to Dy. Excise & Taxation

Commissioner (S.T. Rohtak) 8.16 8.16



6. Depreciation has been provided for on written down value method as per Schedule XIV to the Companies Act, 1956.

7. The Company follows the Accrual System of Accounting and on assumptions of an ongoing concern.

8. As per practice consistently followed, the consumption of raw materials is net of Cenvat Credit availed.

9. The applicable Accounting standards have been followed in preparation of final Accounts.

10. The Management have selected such accounting policies and applied them consistently and made judgements and estimates that are prudent and reasonable so as to give a true and fair view of the state of affairs of the Company as at 31.03.2010 and of the profit of the Company for the year ended on that date.

11. Prior Period Items

(a) Value of three DEPB licences worth Rs.9,21,300/- utilised for duty free import in the preceeding year was wrongly reflected as DEPB in hand as on 31.03.2009. The same has been debited to the revenue A/c during the year.

(b) Custom duty of Rs. 2,43,888/- wrongly debited to revenue A/c twice last year which has been reversed during the year.

12. The Company is running a chemical plant at village Mokhra, Distt Rohtak, Haryana generating chemical wastes in manufacturing process which the company is required to dispose off / treated / dumped at the sites developed by the State Government under Hazardous waste (Management and Handling) Rules 1989 issued under the Environment (Protection) Act, 1986. As the stay granted by the Punjab & Haryana High Court for development of dumping site by Haryana Govt has been stayed by the Honble Supreme Court during the financial year 2008-09, an estimated provision for disposal charges of the accumulated hazardous waste since start of the factory was made for Rs.3.09 Crores in financial year 2008-09 which being found insufficient keeping in view the cost escalation therein, a further provision is made for Rs.112.18 Lacs during the year.

13. Related Party Transactions :

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Companys related parties are disclosed below :

a) Key Management Personnel & Other Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Director

iii) Shri R.P.Gupta Director

iv) Shri Ajay Gupta Director

and their Relatives

b) Associated Companies

i) Bharat Insecticides Limited iv) BRL Finlease Limited

ii) BR Agrotech Limited v) Centum Finance Limited

iii) Siris Crop Sciences Limited vi) Bharat Rasayan Finance Limited

14 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 13.67 (Last Year Rs. 12.17).

15 As per Accounting Standard AS-22 on Accounting for Taxes on income, the Company has recorded the cumulative net deferred tax liability upto 31.03.2010 of Rs. 59,49,078/-. For the current year the Company has recorded the net deferred tax assets of Rs. 8,34,459/-, carrying forward cumulative deferred tax liability of Rs. 59,49,078/-.