The following discussion is intended to convey managements perspective on our financial condition and results of operations for the year ended on March 31, 2023, March 31, 2024, and March 31, 2025. You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 33 of this Draft Red Herring Prospectus, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian accounting standard ("Ind AS"), the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year. In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to BLS POLYMERS LIMITED, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for Financial Year ended on March 31, 2023, March 31, 2024, and the March 31, 2025, included in this Draft Red Herring Prospectus beginning on page 279.
BUSINESS OVERVIEW
We are a manufacturer of multiple grades of custom formulated polymer compounds, catering to diversified critical industries such as telecommunication, power, railways, water, oil and gas distribution, among others. Polymer compounds are used as an essential raw material for sheathing, jacketing and insulation of wires and cables used in power, telecommunication and railway industries as well as coating of underground oil, gas and water pipelines, in order to provide a protective infrastructure from corrosion and external environmental factors. (Source: CRISIL Report) Our product portfolio is well diversified to offer varied solutions in the wire and cables and infrastructure industry, and included products such as, high density polyethylene compounds ("HDPE"), medium-density polyethylene compounds ("MDPE") and linear low-density polyethylene compounds
(" LLDPE"), cross-linked polyethylene compounds ("XLPE"), halogen free flame retardant compounds
("HFFR"), polyvinyl chloride compounds ("PVC"), cable filling compounds ("CFC") and adhesive coating compounds. HDPE, MDPE and LLDPE compounds are used in the wire and cable industry which offer insulation, sheathing and jacketing based on the indicative requirement of the customer. While, XLPE, HFFR, PVC and CFC compounds add qualities such as strength, high voltage insulation and resistance, fire resistance and moisture resistance, as per the application of the end use product. In the wire and cable industry, polymers serve crucial functions in electrical insulation, mechanical protection, and overall cable performance. HDPE and adhesive coating compounds are key layers of 3LPE (three layer polyethylene) system ("3LPE Coating" i.e. Pipe Coating) used for coating of oil, gas and water distribution pipelines. 3LPE Coating is an effective solution for protecting high-capital-intensive pipelines from corrosion, chemicals and moisture, thereby ensuring long-term durability. (Source: CRISIL Report) Set forth below is a division wise break up of our revenue from operations during the preceding three Fiscals:
| Product Categories | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| in Lakhs | % of total sales | in Lakhs | % of total sales | in Lakhs | % of total sales | |
| Wire & Cables | 26,798.20 | 81.59% | 23,852.98 | 80.49% | 29,674.52 | 94.32% |
| Pipelines | 6,045.39 | 18.41% | 5,782.85 | 19.51% | 1,787.09 | 5.68% |
| Total | 32,843.59 | 100.00% | 29,635.83 | 100.00% | 31,461.61 | 100.00% |
Set forth below is a product wise break up of our revenue from operations during the preceding three Fiscals:
| Products | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| ( in lakhs) | % of revenue from operations | ( in lakhs) | % of revenue from operations | ( in lakhs) | % of revenue from operations | |
| PE | 18,641.11 | 56.76% | 19,935.45 | 67.26% | 22,899.47 | 72.79% |
| (HDPE/MDPE/LLDPE/CFC/HFFR/MB/PP) | ||||||
| XLPE | 5,287.72 | 16.10% | 5,013.63 | 16.92% | 3,709.82 | 11.79% |
| PVC | 434.85 | 1.32% | 464.09 | 1.57% | 1,049.38 | 3.33% |
| Products | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| ( in lakhs) | % of revenue from operations | ( in lakhs) | % of revenue from operations | ( in lakhs) | % of revenue from operations | |
| Others | 8,479.91 | 25.82% | 4,222.66 | 14.25% | 3,802.94 | 12.09% |
| Total | 32,843.59 | 100.00% | 29,635.83 | 100.00% | 31,461.61 | 100.00% |
We manufacture and sell over 127 grades of various compounds and the same have been consolidated and represented in the aforementioned broad categories.
The break-up of our revenues earned from our domestic and export operations during the preceding three Fiscals has been provided as under:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| in lakhs | % of revenue from operations | in lakhs | % of revenue from operations | in lakhs | % of revenue from operations | |
| Domestic operations | 30,075.96 | 91.57% | 28,440.95 | 95.97% | 30,117.85 | 95.73% |
| Export operations | 2,767.63 | 8.43% | 1,194.88 | 4.03% | 1,343.76 | 4.27% |
| Total | 32,843.59 | 100.00% | 29,635.83 | 100.00% | 31,461.61 | 100.00% |
The break-up of the revenues earned from the domestic regions during the preceding three Fiscals has been provided as under:
| Domestic Region | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| in lakhs | % of revenue from operations | in lakhs | % of revenue from operations | ftim in lakhs | % of revenue from operations | |
| North Zone | 13,099.59 | 43.56% | 9,922.74 | 34.89% | 8,951.84 | 29.72% |
| West Zone | 11,713.05 | 38.94% | 11,870.15 | 41.74% | 9,697.27 | 32.20% |
| South Zone | 4,716.29 | 15.68% | 5,497.08 | 19.33% | 10,283.23 | 34.14% |
| East Zone | 547.03 | 1.82% | 1,150.98 | 4.04% | 1,185.51 | 3.94% |
| Grand Total | 30,075.96 | 100.00% | 28,440.95 | 100.00% | 30,117.85 | 100.00% |
Diversified industry applications and differentiated product portfolio
Our business model is diversified by a mix of products, end use industries and customer base. As on date of this Draft Red Herring Prospectus, our Company has manufactured 6 products in 127 grades across our product segments. The bouquet of products offered by us serve various end-user industries including but not limited to railways, telecommunication, among others. Some common applications of our products are set forth below:
| Product | Application |
| PE compounds | Telecommunication and optical fibre cables, data communication cables, power cables and railway signalling cables. |
| HDPE and adhesive coating compounds | Industrial pipeline for distribution of oil, gas and water. |
| XLPE compounds | Power cables and control and instrumentation cable |
| PVC compounds | Low voltage power cable, house wiring, industrial cabling, fire resistant applications and telecommunication cables used in data communication. |
| CFC | Power cables and jelly filled cables for telecommunication and power connectivity. |
| HFFR compound | Solar cable, fire survival cable, power cable, house wiring and optical fibre cable. |
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST REPORTING PERIOD:
In the opinion of the Board of Directors of our Company, there have not arisen, since the date of March 31, 2025 as disclosed in this Draft Red Herring Prospectus, any significant developments or any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.
KEY FACTORS AFFECTING THE RESULTS OF OPERATION:
Our Companys future results of operations could be affected potentially by the following factors:
1. During the Fiscals 2025, 2024 and 2023, we derived 81.59%, 80.49% and 94.32% of our revenue from the sale of wire and cable polymer compounds. Any loss of sales due to reduction in demand for such products would have a material adverse effect on our business, financial condition, results of operations and cash flows.
We are a manufacturer of multiple grades of custom formulated polymer compounds, catering to diversified critical industries such as telecommunication, power, railways, water, oil and gas distribution, among others. Polymer compounds are used as an essential raw material for sheathing, jacketing and insulation of wires and cables used in power, telecommunication and railway industries as well as coating of underground oil, gas and water pipelines, in order to provide a protective infrastructure from corrosion and external environmental factors. (Source: CRISIL Report) We rely heavily on revenue generated from the sale of polymer compounds used in the wire and cable industries, therefore any reduction in the demand of our products or any downturn in the wire and cable industries, may have an adverse impact on our business, results of operations and financial condition. In the wire and cable industry, polymers serve crucial functions in electrical insulation, mechanical protection, and overall cable performance. (Source: CRISIL Report) Therefore, the success of our products and of our business is dependent upon the success of the wire and cable industries and on the performance of the products of our customers, who are engaged in manufacturing wires and cables. Our success is also dependent upon our ability to diversify and grow our operations, retain our existing customers and expand our customer base. In the event, we are unable to scale our operations or retain or grow our wire and cable customers, our revenue from operations and cash flow may experience a decline. There is no assurance that we will not face any such decline in sale of our wire and cable polymer compounds in the future. The table below set out the revenue from operations earned from our product categories for the period indicated below:
| Product | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Categories | ( in lakhs) | % of total sales | ( in lakhs) | % of total sales | ( in lakhs) | % of total sales |
| Wire & | 26,798.20 | 81.59% | 23,852.98 | 80.49% | 29,674.52 | 94.32% |
| Cables | ||||||
| Pipelines | 6,045.39 | 18.41% | 5,782.85 | 19.51% | 1,787.09 | 5.68% |
In the event, there takes place a shift of practice, wherein the end use customers integrate their operations by setting up manufacturing units for manufacturing the required raw materials, it may have an adverse impact on our business and results of operations. It may also happen that our competitors are able to improve the efficiency of their manufacturing process and thereby offer similar or high quality products at competitive prices. While the aforementioned events have not materially occurred in the past, however upon occurrence of any such events, our Company may be unable to adequately react to such developments which may affect our revenues and profitability. In order to mitigate the risk relating to dependency on wire and cable compounds, we have strategically diversified our product portfolio by developing polyethylene pipe coating and adhesives for 3LPE applications. The revenue earned from such products increased from 5.68% in Fiscal 2023 to 18.41% in Fiscal 2025, indicating the successful diversification of our product portfolio. Any failure to successfully expand and diversify our operations, could adversely affect our business, financial condition, cash flows and results of operations.
2. Our inability to meet the preferences or consistent quality requirements of our customers or our inability to accurately predict and successfully adapt to changes in market demand could reduce demand for our products and harm our sales.
Our results of operations and future growth are largely dependent upon the demand for our products in the Indian and other international markets in which we are currently present and propose to expand to. Demand for our products depends primarily on consumer-related factors such as demographics, local preferences, lifestyle preferences and macroeconomic factors such as the condition of the economy and the level of consumer confidence. Over a period of time, there have been significant changes in consumers preferences relating to polymer products in Indian as well as overseas market. There has been a shift towards specialized polymers, such as PE compounds, XLPE compounds and HFFR compounds, in recent times. The polymer market is currently moving toward the design, manufacture and use of efficient, effective, safe and more environmentally friendly chemical products and processes. Our management team tracks the trend of our product portfolio and accordingly plans the supply of our products on that basis. Therefore, an unanticipated change in customer demand may adversely affect our liquidity and financial condition as a result of the operating expenses that are relatively fixed and have been incurred by us.
We may be also subject to the policies and guidelines of the countries or regions where our customers are located, relating to the quantity, quality, characteristics and variety of the products sold to such countries, which may be changed from time to time. Any non-compliance with such policies and quality standards could have an adverse impact on our business, financial condition, reputation and results of operation. While we attempt to, on a regular basis, keep pace with the preferences and quality requirements and standards of our domestic and international customers, provide the desired quality product, and continually monitor and adapt to the changing market demand there can be no assurance that we will be able to keep up with the changing trends and adhere to all quality specifications mandated by governmental agencies. Any such change in preferences or our inability to meet the consistent quality requirements of our customers or adhere to the quality standards mandated by the government agencies and regulators could harm our business, financial condition, results of operations and prospects.
3. Pricing pressure from customers may affect our gross margin, profitability and ability to increase our prices, which in turn may materially adversely affect our business, results of operations and financial condition.
Being in a competitive market, we face pricing pressures from our customers. Accordingly, polymer manufacturers like us must be able to reduce our operating costs in order to maintain profitability. Such price reductions may affect our sales and profit margins. If we are unable to offset customer price reductions in the future through improved operating efficiencies, new manufacturing processes, sourcing alternatives or other cost reduction initiatives, our business, results of operations and financial condition may be materially adversely affected. Our customers also negotiate for larger discounts in price as the volume of their orders increase. To maintain our profit margins, we seek price reductions from our suppliers, improved production processes to increase manufacturing efficiency to reduce costs. There can be no assurance that we will be able to avoid future customer price reductions or offset the impact of any such price reductions through continued technology improvements, improved operational efficiencies, cost-effective sourcing alternatives, new manufacturing processes, cost reductions or other productivity initiatives. While, we have been able to successfully pass on the increased costs of raw materials to our customers in the past, we cannot assure you that we shall be able to do the same in the future as well, which may adversely affect our business, financial condition and results of operations.
4. Our proposed capacity expansion plans are subject to the risk of unanticipated delays in implementation and cost overruns.
Based on the expected potential growth in the polymer industry and the consequent increase in demand for our products in the recent years, we anticipate an increase in the production capacity. In order to support our growth strategy across India, we intend to increase the installed capacity of our existing Manufacturing Facility. As we continue our growth by investing in the capacity expansion of our Manufacturing Facility, we may encounter regulatory, personnel and other difficulties that may increase our expenses, which could delay our plans or impair our ability to become profitable in these areas. For details of the proposed expansion, please refer to the chapter titled "Objects of the Issue – Financing the capital expenditure requirement towards expansion of our Manufacturing Facility by increasing the manufacturing capacity of certain of our existing products" on page 117 of this Draft Red Herring Prospectus. There can be no assurance that the proposed capacity additions and expansion will be completed as planned within the cost estimates and in a timely manner, or at all. Any shortfall in our net owned funds, internal accruals and our inability to raise debt in future would result in us being unable to meet our capital requirements, which in turn will negatively affect our financial condition and results of operations. Further, we have not identified any alternate source of funding and hence any failure or delay on our part to raise money from this issue or any shortfall in the issue proceeds may delay the implementation schedule and could adversely affect our growth plans. Further, the estimated schedule completion dates are based on estimates, and we cannot assure you that such proposed expansion will culminate into production on schedule. There can be no assurance that such plans will be successfully implemented or completed or that if completed, they will result in the anticipated growth in our revenues or improvement in the results of operations we anticipate from the implementation of such initiatives.
5. We are in the process of expanding our operations and establishing a network of distributors & customers in regions where we do not have a significant presence or prior experience. Any failure to expand into these new regions could adversely affect our sales, financial condition, result of operations and cash flows.
In order to cater to the growing market demand for our products, specifically for adhesives for 3LPE applications, and expand our presence in new regions, we are in the process of deepening our presence in the Middle Eastern region. We have recently entered into a service agreement with a marketing and distribution company in UAE for obtaining advisory and support services for selling certain of our products in Egypt, United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar. We aim to leverage the increasing demand from international markets to enhance our exports. Due to our lack familiarity with the economic conditions of the Middle Eastern region. Fluctuations in the local economy, currency exchange rates, and regulatory environment can pose risks to our operations and financial stability. Without an established customer and distributor network or end customer base in these regions, we face uncertainty regarding the demand for our products. It may take considerable time and resources to build relationships and gain market acceptance, potentially delaying the realization of sales volume. Further, our products may not gain market acceptance or meet the specific requirements of customers in these new markets and regions. Adapting our offerings to local preferences, regulatory standards, and customer needs can be complex and may require additional investments and resources. This could lead to lower product pricing as we struggle to establish ourselves and higher expenditure on reputation building, impacting our profitability. If we fail to successfully navigate these challenges and establish a strong presence in the new regions, our sales, financial condition, results of operations, and cash flows could be significantly and adversely affected.
OUR SIGNIFICANT ACCOUNTING POLICIES Corporate information
BLS Polymers Limited, a company domiciled in India and incorporated on January 16, 1991, under the provisions of Companies Act, 2013 having its Registered Office at 604, Indra Prakash, 21, Barakhamba Road, New Delhi-110001, is engaged in compounding of Polyethylene and PVC compounds. The company is also engaged in the Trading of polymers. Further the company operates as a Del Credere Associate (DCA) cum Consignment Stockist (CS) of Indian Oil Corporation Limited (IOCL) for the Polymer Business. The Restated financial information comprises of financial information of BLS Polymers Limited (‘the Company) for the years ended March 31, 2025, March 31, 2024 and March 31, 2023.
Material Accounting Policies
Statement of Compliance with Ind AS and Basis of preparation "The Restated Statement of Assets and Liabilities of the Company as at March 31, 2025, March 31, 2024 and March 31, 2023 and the Restated Statement of Profit and Loss, the Restated Statement of Changes in Equity and the Restated Statement of Cash Flows for the year ended March 31, 2025 and for the year ended March 31, 2024 and March 31, 2023 and other explanatory information are together referred as "Restated Financial Information". These "Restated Financial Information" are approved for issue by the Board of Directors. The Restated Financial Information, which have been approved by the Board of Directors of the Company, have been prepared in accordance with the requirements of: a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act"). b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time; and c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), (the "Guidance Note"). The Restated Financial Information has been compiled by the Company for the year ended March 31, 2025 in accordance with Indian Accounting Standards notified under Section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other accounting principles generally accepted in India (referred to as "Ind AS") which have been approved by the Board of Directors at their meeting held on May 28, 2025 and for the years ended March 31, 2024 and March 31, 2023 from the Audited Financial Statements of the Company prepared in accordance with Accounting Standards notified under Section 133 of the Companies Act 2013, read with Companies (Accounts) Rules, 2014 as amended from time to time and other accounting principles generally accepted in India, and have been approved by the Board of Directors at their meetings held on September 23, 2024 and September 27, 2023 respectively and have been compiled based on ICDR regulation. "The Restated Financial Information have been extracted by the Management from the Audited Financial Statements and: a) there were no audit qualifications on these financial statements. b) there were no changes in accounting policies during the years of these financial statements. c) material amounts relating to adjustments for previous years in arriving at profit/loss of the years to which they relate, have been appropriately adjusted. d) adjustments have been made for reclassification of the corresponding items of income, expenses, assets and liabilities, in order to bring them in line with the groupings as per the audited financial statements of the Company as at and for the year ended March 31, 2025, prepared under Ind AS and for the years ended March 31, 2024 and March 31, 2023 prepared in accordance with accounting principles generally accepted in India (Accounting Standards) and the requirements of the SEBI Regulation; and e) the resultant tax impact, if any, on above adjustments has been appropriately adjusted in deferred taxes in the respective years to which they relate."
Historical cost convention
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Significant accounting judgments, estimates and assumptions
"The preparation of financial information in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the accompanying disclosures. Uncertainty about the assumptions and estimates could result in outcomes that require in material adjustment to the carrying value of assets or liabilities affected in future periods. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected."
Going Concern
The Company has prepared the financial information on the basis that it will continue to operate as a going concern.
Summary of Material accounting policies
Current and non-current classification
"The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is: - Expected to be realised or intended to be sold or consumed in normal operating cycle - Held primarily for the purpose of trading - Expected to be realised within twelve months after the reporting period, or - Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. Liability is current when - It is expected to be settled in normal operating cycle - Held primarily for the purpose of trading - It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current Deferred tax assets and liabilities are classified as non-current assets and liabilities"
Foreign currencies
The Companys financial information is presented in INR, which is also the Companys functional currency
Transactions and balances
"Transactions in foreign currencies are initially recorded by the Company at functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI, or profit or loss are also recognised in OCI or profit or loss, respectively)."
Fair value presentation
"The Company measures financial instruments at fair value at each balance sheet date except to certain instruments which are measured at Amortised cost/historic cost. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability, or - In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company." "The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial information are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: - Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable." For assets and liabilities that are recognised in the financial information on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
Revenue from contract with Customer
"Revenue from sale of goods are recognised upon satisfaction of performance obligation which is at a point in time, generally on delivery of the goods, when control of the goods is transferred to customers. Revenue from services are recognised upon satisfaction of performance obligation towards rendering of such services. The Company recognises revenue from sale of goods or services at the amount of transaction price (excluding variable consideration that is constrained), that is allocated to the performance obligation satisfied. Transaction price is the amount of consideration to which the Company expects it to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of third parties.
An amount of consideration can vary because of discounts, rebates, incentives etc. which are explicitly stated in the contract or are as per customary business practices. The consideration can also vary where the entitlement is contingent on occurrence or non-occurrence of a future event. The Company includes variable consideration as part of transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration is estimated using the expected value method or the most likely amount depending on which method the Company expects to better predict the amount of consideration to which it will be entitled and is applied consistently throughout the contract. Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction price and accounted as interest income / expense, as applicable."
Interest income
For all financial instruments measured at amortised cost, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the income statement.
Taxes
Tax expense represents Current tax and Deferred tax. "Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate." "Deferred tax Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits (including MAT credit) and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. The carrying amount of deferred tax assets (including MAT credit available) is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Def erred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority"
Property, plant and equipment(including Capital work in progress)
"Under the previous GAAP (IGAAP), property, plant and equipment were carried out in the balance sheet at cost net of accumulated depreciation and accumulated impairment losses, if any as at March 31, 2023. The company has elected to regard those values of property as deemed cost at the date of the transition to Ind AS, i.e., April 1 ,2023. Property, Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Capital work in progress is stated at cost. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met." Depreciation is recognised so as to write off the cost less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis Depreciation on PPE is provided as per Schedule II of Companies Act, 2013 on Straight Line Method over its economic useful life of PPE as follows:
| Assets | Useful life |
| Plant & Machinery | 5 -15 Years |
| Vehicle | 8 Years |
| Office Equipments | 5 Years |
| Computer | 3 Years |
| Furniture & Fixtures | 10 Years |
| Leasehold Improvements | 3 Years |
| Building | 5 -30 Years |
Intangible assets
"Under the previous GAAP, Intangible assets were carried in the balance sheet at cost net of accumulated depreciation and accumulated impairment losses, if any as at March 31, 2023. The company has elected to regard those values of intangible assets as deemed cost at the date of the transition to Ind AS, i.e., April 1, 2023. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Intangible assets are amortised on a straight-line basis over the estimated useful economic life and are assessed for impairment whenever there is an indication that the intangible asset may be impaired."
| Assets | Useful life |
| Computer Software | 5 Years |
Leases
"In accordance with Ind AS 101- ""First-time Adoption of Indian Accounting Standards"", the company has measured lease liability at the date of transition to Ind AS at the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of transition to Ind AS. The company has measured a right-of-use asset at the date of transition to Ind AS at it carrying amount as if Ind AS 116 had been applied since the commencement date of the lease, but discounted using the incremental borrowing rate at the date of transition to Ind AS. The Company assesses that the contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (1) The contract involves the use of an identified asset, (2) The Company has substantially all of the economic benefits from use of the identified asset, and (3) The Company has the right to direct the use of the identified asset."
Company as a lessee
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated from the commencement date over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss. "The Company measures the lease liability at the present value of the lease payments over the lease term. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company adopts the incremental borrowing rate for the entire portfolio of leases as a whole. The lease payments shall include fixed payments, variable lease payments, exercise price of a purchase option and payments of penalties for terminating the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The Company recognises the amount of the remeasurement of lease liability as an adjustment to the right-of-use asset. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss." The Company has elected not to apply the requirements of Ind AS 116 to leases for which the underlying asset is of low value. The lease payments associated with these low value leases are recognised as an expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the right-of-use asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Companys net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease
Inventory
"Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows: -Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis.
-Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on first in, first out basis. -Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on First in, first out basis. Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges, recognised in OCI, in respect of the purchases of raw materials Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale Obsolete, slow moving and defective inventories are identified at the time of physical verification of inventories and where necessary, the same are written off or provision is made for such inventories based on managements best estimates of net realisable value."
Provisions General
"Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed."
Contingent Assets/ Liabilities
"Contingent assets are not recognised. However, when realisation of income is virtually certain, the related asset is no longer a contingent asset and is recognised as an asset. Contingent liabilities are disclosed in notes to accounts when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future event not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made."
Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment. Retirement benefit in the form of gratuity is a defined benefit scheme. Gratuity liability of employees is accounted for on the basis of actuarial valuation on projected unit credit method at the close of the year.
Companys contribution made to Life Insurance Corporation is expensed off at the time of payment of premium. "Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability, are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the earlier of: - The date of the plan amendment or curtailment, and - The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss: - Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and - Net interest expense or income" Short-term and other long-term employee benefits "A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Liabilities recognised in respect of short term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date." Provision for Margin on Finished Goods in Transit represents the estimated profit element on goods invoiced but not yet delivered. The provision is reversed in the subsequent financial period upon delivery. Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Initial recognition
All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.
Subsequent measurement
Non-derivative financial instruments
Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.
Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Companys balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.
Impairment Financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
Corporate Social Responsibility (CSR) expenditure
CSR Expenditure as per provisions of section 135 of the Act read with rules issued thereunder, is charged to the statement of profit and loss as an expense.
Segment Reporting
The accounting policies adopted by the Company for segment reporting are in line with the Indian accounting standard on Segmental Reporting.
Primary Segment
The Company has two reportable segment Viz. Polymer and Trading, which have been identified in line with the Indian Accounting standard 108 on Segment Reporting, considering the organizational structure as well as differential risk and return of these segments.
Secondary Segment
The secondary segment is based on geographical demarcation i.e. India and rest of the world.
KEY FINANCIAL KPI OF OUR COMPANY
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue From operations ( in lakhs) | 32,843.59 | 29,635.83 | 31,461.61 |
| EBITDA ( in lakhs) | 3,966.31 | 2,104.91 | 1,792.31 |
| Growth in EBITDA % | 88.43% | 17.44% | - |
| EBITDA Margin (%) | 12.08% | 7.10% | 5.70% |
| Profit after tax ( in lakhs) | 2,113.60 | 752.20 | 624.98 |
| Growth in PAT % | 180.99% | 20.36% | - |
| EPS | 4.69 | 1.67 | 1.39 |
| PAT Margin (%) | 6.44% | 2.54% | 1.99% |
| Return on Equity (ROE) (%) | 36.83% | 17.48% | 16.74% |
| Debt To Equity Ratio | 1.11 | 2.05 | 2.30 |
| Return on Capital Employed (ROCE) (%) | 25.46% | 12.84% | 11.93% |
| Current Ratio | 1.44 | 1.26 | 1.22 |
| NAV / Book Value | 15.09 | 10.40 | 8.72 |
| Return on Net Worth | 31.11% | 16.06% | 15.92% |
| Return on Total Assets | 11.80% | 4.46% | 3.88% |
Notes: a) As certified by the Statutory Auditor pursuant to their certificate dated August 6, 2025. The Audit committee in its resolution dated July 27, 2025 has confirmed that the Company has not disclosed any KPIs to any investors at any point of time during the three years preceding the date of this Draft Red Herring Prospectus other than as disclosed in this section. b) Revenue from Operations means the Revenue from Operations as appearing in the Restated Consolidated Financial Statements. c) EBITDA refers to earnings before interest, taxes, depreciation, amortisation, gain or loss from continued operations and exceptional items. d) Growth in EBITDA % means growth in % terms of the current year as compared to the preceding year. e) EBITDA Margin refers to EBITDA during a given period as a percentage of revenue from operations during that period. f) Profit after Tax refers to sum of total income less total expenses after considering the tax expense. g) Growth in PAT % means growth in % terms of the current year as compared to the preceding year. h) EPS is Earnings per share calculated as Profit attributable to shareholders of the company divided by the weighted average number of shares outstanding during the period. i) Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by our revenue from operations. j) Return on equity (RoE) is equal to profit for the year divided by the average equity and is expressed as a percentage. k) Debt to equity ratio is calculated by dividing the debt (i.e., borrowings (current and non-current) and lease liabilities by total equity (which includes issued capital and all other equity reserves). l) Return on Capital Employed (%) is calculated as EBIT divided by capital employed. Capital employed is calculated as net worth and total debt add Net Deferred Tax (Liabilities) m) Current Ratio is a liquidity ratio that measures our ability to pay short-term obligations (those which are due within one year) and is calculated by dividing the current assets by current liabilities. n) NAV / Book Value is defined as Net Asset Value and is calculated as Shareholders Net worth divided by the weighted average number of shares outstanding during the period. o) RoNW is defined as Return on Net Worth that is Equity share capital add reserves and other equity, return that is net profit is divided by Net worth to calculate this ratio. p) Return on Total Assets is calculated as return that is net profit is divided by the total assets during the year.
| 1) EBITDA | |||
| ( in lakhs) | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Earnings before Tax | 2,827.05 | 969.33 | 875.52 |
| + Finance Costs | 831.80 | 864.76 | 672.95 |
| + Depreciation | 307.46 | 270.82 | 243.84 |
| Total | 3,966.31 | 2,104.91 | 1,792.31 |
| 2) Return on Equity (ROE) | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Net Profit for the year | 2,113.60 | 752.20 | 624.98 |
| / Average Equity | 5,738.45 | 4,304.23 | 3,733.37 |
| Return on Equity (ROE) | 36.83% | 17.48% | 16.74% |
| 3) Debt to Equity Ratio | |||
| ( in lakhs) | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Long term debt | 66.38 | 300.36 | 504.70 |
| + Short term Debt | 7,325.85 | 9,076.33 | 8,455.27 |
| Total Debt | 7,532.32 | 9,580.93 | 9,043.70 |
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Equity Share capital | 960.17 | 960.17 | 960.17 |
| + Other Equity | 5,834.02 | 3,722.55 | 2,965.58 |
| Net Worth / Shareholders equity | 6,794.19 | 4,682.72 | 3,925.75 |
| + NCI | - | - | - |
| Total equity | 6,794.19 | 4,682.72 | 3,925.75 |
| Debt to Equity Ratio | 1.11 | 2.05 | 2.30 |
| 4) Return on Capital Employed | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Earnings before Tax | 2,827.05 | 969.33 | 875.52 |
| + Finance Costs | 831.80 | 864.76 | 672.95 |
| Total EBIT | 3,658.85 | 1,834.09 | 1,548.47 |
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Total Equity | 6,794.19 | 4,682.72 | 3,925.75 |
| + Total Debts | 7,532.32 | 9,580.93 | 9,043.70 |
| + Net Deferred Tax (Liabilities) | 43.20 | 18.77 | 12.54 |
| Total Capital Employed | 14,369.71 | 14,282.42 | 12,981.99 |
| Return on Capital Employed | 25.46% | 12.84% | 11.93% |
| 5) Return on Net worth | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Net Profit for the year | 2,113.60 | 752.20 | 624.98 |
| / Total Equity | 6,794.19 | 4,682.72 | 3,925.75 |
| Return on Net worth | 31.11% | 16.06% | 15.92% |
| 6) Return on Total Assets | |||
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Net Profit for the year | 2,113.60 | 752.20 | 624.98 |
| / Total Assets | 17,914.16 | 16,848.95 | 16,126.44 |
| Return on Total Assets | 11.80% | 4.46% | 3.88% |
RESULTS OF KEY OPERATIONS
The following table sets forth select financial data from our restated financial statement of profit and loss for the financial years ended March 31, 2025, 2024 and 2023 the components of which are also expressed as a percentage of total income for such period and financial years
| Particulars | For the Year ended March 31, 2025 | % of Income in FY 2025 | For the Year ended March 31, 2024 | % of Income in FY 2024 | For the Year ended March 31, 2023 | % of Income in FY 2023 |
| INCOME | ||||||
| Revenue From Operations (Net) | 32,843.59 | 97.55% | 29,635.83 | 98.29% | 31,461.61 | 99.32% |
| Other Income | 826.23 | 2.45% | 514.61 | 1.71% | 215.94 | 0.68% |
| Total Income (I + II) | 33,669.82 | 100.00% | 30,150.44 | 100.00% | 31,677.55 | 100.00% |
| EXPENSES | ||||||
| Cost of materials consumed | 18,932.07 | 56.23% | 20,993.87 | 69.63% | 23,238.81 | 73.36% |
| Purchase of traded goods | 7,660.13 | 22.75% | 4,097.38 | 13.59% | 4,163.18 | 13.14% |
| (Increase)/ decrease in inventories of finished goods, stock-in-transit, work-in-progress & traded goods | -38.52 | -0.11% | -226.70 | -0.75% | -647.86 | -2.05% |
| Employee benefit expenses | 714.79 | 2.12% | 723.63 | 2.40% | 706.67 | 2.23% |
| Depreciation and amortization expenses | 307.46 | 0.91% | 270.82 | 0.90% | 243.84 | 0.77% |
| Finance costs | 868.37 | 2.58% | 915.23 | 3.04% | 727.44 | 2.30% |
| Other expenses | 2,398.47 | 7.12% | 2,406.88 | 7.98% | 2,369.95 | 7.48% |
| Total Expenses (IV) | 30,842.77 | 91.60% | 29,181.11 | 96.79% | 30,802.03 | 97.24% |
| Profit before tax (III-IV) | 2,827.05 | 8.40% | 969.33 | 3.21% | 875.52 | 2.76% |
| Tax expense | ||||||
| - Current tax | 686.10 | 2.04% | 203.94 | 0.68% | 238.25 | 0.75% |
| - Deferred tax charge/(credit) | 25.25 | 0.07% | 4.39 | 0.01% | 10.40 | 0.03% |
| - Tax in respect of earlier years | 2.10 | 0.01% | 8.80 | 0.03% | 1.89 | 0.01% |
| Total tax expense | 713.45 | 2.12% | 217.13 | 0.72% | 250.54 | 0.79% |
| Profit for the year (V-VI) | 2,113.60 | 6.28% | 752.20 | 2.49% | 624.98 | 1.97% |
| Other comprehensive income/(expenses) | ||||||
| (i) Items that will not to be reclassified to profit or loss in subsequent periods Re-measurement gain/ (loss) on defined benefit plans | -2.96 | -0.01% | 6.61 | 0.02% | 2.73 | 0.01% |
| Income tax effect | 0.83 | 0.00% | -1.84 | -0.01% | -0.76 | 0.00% |
| (ii) Items that will be reclassified to profit or loss in subsequent periods | - | - | - | |||
| Total Comprehensive Income for the year (VII + VIII) | 2,111.47 | 6.27% | 756.97 | 2.51% | 626.95 | 1.98% |
Review of Restated Financials
Revenue from Operations: Revenue from operations mainly consists of sale of products and sale of services. Sale of products are from following segments: Finished goods and Traded goods. Finished goods are further divided into Polyethylene compound and Cable filing compound. Traded goods comprises of sale of Polyethylene compound, cable filing compound and Spares and consumables. Cable filing compound and spares & consumables were traded in FY 2023 only among the comparative periods. Sale of services constitutes of commission and job work charges received. Other Income: Other income includes liabilities and provisions no longer required written back, Interest Income, Gain on sale of Fixed Assets, Insurance claim, Net gain on foreign currency transactions and miscellaneous income. Total Income: Our total income comprises revenue from operations and other income. Total Expenses: Companys total expenses consist of Purchases of material and traded goods, Changes in inventories of Finished goods, WIP and Stock-in-trade, Employee benefit expenses, finance costs, depreciation and amortization expenses, and other expenses.
Changes in inventories of Finished goods, WIP and Stock-in-trade: Changes in inventories consists of costs attributable to an increase or decrease in inventory levels during the relevant financial period in Finished goods, WIP and Stock-in-trade. Employee Benefits Expense: Employee benefit expense includes Salary & Wages, Staff Welfare Expenses, Contributions to provident and other employee funds and provisions for employee benefit expenses. Finance Cost: Finance cost includes interest on bank loans, interest on lease liability, bank charges and others. Other expenses: Other expenses mainly consist of Power & fuel, packing materials consumed, travelling and conveyance, legal & professional charges, loading and unloading charges, cartage outward and miscellaneous expenses.
COMPARISON OF F.Y. 2025 WITH F.Y. 2024:
Revenue from Operations
The Companys revenue from operations in the financial year 2024-25 is 32,843.59 lakhs. Out of which, sale of finished goods constitutes of 24,160.58 lakhs and sale of traded goods of 8,572.30 lakhs. Sale of services constituting of commission of 109.06 lakhs and job work charges received of 1.65 lakhs. This represents 3,207.76 lakhs or 10.82% increase compared to the previous financial years revenue from operations of 29,635.83 lakhs. The revenue increase can be attributable to the increase in revenue from export of goods which saw a significant jump of 131.62% year on year. During this period, we entered new international markets and solidified our presence in existing ones, strengthening our global ties and presence.
Other Income
Other Income in the financial year 2024-25 increased by 311.62 lakhs or by 60.55%, reaching 826.23 lakhs in comparison to the 514.61 lakhs earned in the Financial Year 2023-24. The increase was majorly attributable to an increase in interest income from others by 116.00 lakhs, increase due to write back off liabilities by 134.59 lakhs, increase in insurance claim by 42.49 lakhs and miscellaneous income 43.26 lakhs. Liabilities were written back when they remained unpaid for over three years and were deemed no longer payable. This write-back was recorded based on the managements assessment and evaluation of the underlying obligations.
Cost of Materials Consumed
Cost of materials consumed for the financial year 2024-25 amounted to 18,932.07 lakhs constituting 56.23% of total income. New purchases during the year amounted to 17,730.42 lakhs. Raw materials primarily are Polyethylene and Antioxidizing & additives.
Purchase of Traded Goods
Purchase of traded goods were 7,660.13 lakhs for the financial year 2024-25, in the financial year 2023-24 the amount was 4,097.38 lakhs. This results into 86.95% increase in the balances year on year. The purchases were for Polyethylene only.
Changes in inventories of Finished goods, WIP and Raw materials
There was an increase of 38.52 lakhs for Fiscal 2025 as compared to an increase of 226.70 lakhs for Fiscal 2024, primarily attributable to a higher inventory of Finished goods at the end of Fiscal 2025.
Employee Benefits Expenses
Employee benefit expenses in the Financial Year 2024-25 decreased by 1.22%, reaching 714.79 lakhs in comparison to the 723.63 lakhs incurred in the Financial Year 2023-24. This decrease in employee benefits expenses primarily stemmed from decrease in salaries and wages, which went down by 6.54 lakhs.
Finance Costs
Finance Costs in the Financial Year 2024-25 decreased by 5.12%, reaching 868.37 lakhs in comparison to the
915.23 lakhs incurred in the Financial Year 2023-24. This decrease in finance costs primarily stemmed from decrease in Interest expense on loans from banks which went down by 52.79 lakhs due to reduction in borrowings during the year.
Depreciation and amortization expenses
Depreciation and amortization in the Financial Year 2024-25 increased by 13.53%, reaching 307.46 lakhs in comparison to the 270.82 lakhs incurred in the Financial Year 2023-24. The increase in depreciation was primarily due to addition of the assets and was set off to some extent by the disposal of assets.
Other Expenses
Other expenses in the Financial Year 2024-25 decreased by 0.35%, reaching 2,398.47 lakhs in comparison to the 2,406.88 lakhs incurred in the Financial Year 2023-24. The other expenses were almost identical to the last year balances and there was just a mere 0.35% decrease. This decrease in other expenses was primarily attributed to decrease in power and fuel expenses, legal & professional expenses, sales promotion. Decrease in certain expenses were offset by increase in expenses such as loading and unloading charges and packing materials consumed.
Tax Expenses
Tax expenses increased by 228.58%, reaching a total of 713.45 lakhs in the financial year 2024-25, in contrast to the 217.13 lakhs balance in the financial year 2023-24.
Profit after Tax (PAT)
Due to the aforementioned factors, the profit experienced an upswing, primarily driven by the growth in total income and a consequent increase in total expenses as a percentage of total income. The Profit After Tax (PAT) for the financial year 2024-25 reached 2,113.60 lakhs, marking an increase from 752.20 lakhs in the financial year 2023-24. In the financial year 2024-25, PAT constituted 6.28% of the total income, in contrast to 2.49% in the fiscal year 2023-24. The company achieved a PAT margin of 6.44% in FY 2025 compared to 2.54% in FY 2024, representing an improvement of 3.90%. This enhancement can be primarily attributed to increased revenue from operations during the year, coupled with a lower cost of procurement of materials and improvement in margins on some of our products. This can be attributed to our strategic procurement approach: by sourcing key raw materials from a select group of suppliers, we leverage higher volumes to negotiate better rates and ensure consistent input quality; by monitoring market trends, we flexibly switch between domestic and international markets to minimize costs and optimize operations; by maintaining advance stocks, we meet our customers tight delivery schedules; and, when appropriate, we opportunistically sell excess inventory to capitalize on arbitrage opportunities without disrupting our normal production. Of the 1,354.50 lakhs profit improvement, the primary contribution came from our cost of material consumed, which decreased from 84.67% of total revenue in FY 2024 to 80.97% in FY 2025. This indicates that we were able to procure materials at a lower price in FY 2025 compared to FY 2024. Due to this reason, we were able to save in our material cost off about 3.70% and in value terms around 1,214.91 lakhs. Given below is the working for change in cost of materials consumed:
| Particulars | FY 2025 | FY 2024 | Growth |
| Revenue from Operations | 32,843.59 | 29,635.83 | 3,207.76 |
| Cost of materials consumed + Purchases | 26,592.20 | 25,091.25 | 1,500.95 |
| Cost of materials consumed + Purchases as % of revenue | 80.97% | 84.67% | 3.70% |
Comparing the rate in FY 2024 to FY 2025, i.e. 84.67% the rate at which the company procured material in FY 2024:
| Particulars | FY 2025 | FY 2024 | Growth |
| Revenue from Operations | 32,843.59 | 29,635.83 | 3,207.76 |
| Cost of materials consumed + Purchases | 27,807.11 | 25,091.25 | 2,715.86 |
| Cost of materials consumed + Purchases as % of revenue | 84.67% | 84.67% | - |
Conclusion and the benefit derived by the company.
| Particulars | Actual growth | Growth considering FY 2024 as base | Benefit |
| Revenue from Operations | 32,843.59 | 32,843.59 | - |
| Cost of materials consumed + Purchases | 26,592.20 | 27,807.11 | - |
| Benefit | 6,251.39 | 5,036.48 | 1,214.91 |
COMPARISON OF F.Y. 2024 WITH F.Y. 2023:
Revenue from Operations
The Companys revenue from operations in the financial year 2023-24 is 29,635.83 lakhs. Out of which, sale of finished goods constitutes of 25,441.47 lakhs and sale of traded goods of 4,100.00 lakhs. Sale of services constituting of commission of 94.27 lakhs and job work charges received of 0.09 lakhs. This represents 1,825.78 lakhs or 5.80 % decrease compared to the previous financial years revenue from operations of 31,461.61 lakhs. The revenue decrease can be attributable to the decrease in revenue from products sold of polyethylene compound and cable filing compound by 8.16% year on year. This is largely the result of restructuring our internal SKUs and prioritizing margin improvement.
Other Income
Other Income in the financial year 2023-24 increased by 298.67 lakhs or by 138.31%, reaching 514.61 lakhs in comparison to the 215.94 lakhs earned in the Financial Year 2022-23. The increase was majorly attributable to an increase in interest income from banks and others by 18.97 lakhs, increase due to write back off liabilities by 201.29 lakhs and increase in insurance claim by 14.15 lakhs. Liabilities were written back when they remained unpaid for over three years and were deemed no longer payable. This write-back was recorded based on the managements assessment and evaluation of the underlying obligations.
Cost of Materials Consumed
Cost of materials consumed for the financial year 2023-24 amounted to 20,993.87 lakhs constituting 69.63% of total income. New purchases during the year amounted to 20,301.85 lakhs. Raw materials primarily are Polyethylene and Antioxidizing & additives.
Purchase of Traded Goods
Purchase of traded goods were 4,097.38 lakhs for the financial year 2023-24, in the financial year 2022-23 the amount was 4,163.18 lakhs. This results into a mere 1.58% decrease in the balances year on year. The purchases were for Polyethylene only.
Changes in inventories of Finished goods, WIP and Raw materials
There was an increase of 226.70 lakhs for Fiscal 2024 as compared to an increase of 647.86 lakhs for Fiscal 2023, primarily attributable to a higher inventory of Finished goods at the end of Fiscal 2024.
Employee Benefits Expenses
Employee benefit expenses in the Financial Year 2023-24 increased by 2.40%, reaching 723.63 lakhs in comparison to the 706.67 lakhs incurred in the Financial Year 2022-23. This increase in employee benefits expenses primarily stemmed from increase in salaries and wages, which went up by 17.98 lakhs.
Finance Costs
Finance Costs in the Financial Year 2023-24 increased by 25.82%, reaching 915.23 lakhs in comparison to the 727.44 lakhs incurred in the Financial Year 2022-23. This increase in finance costs primarily stemmed from increase in Interest expense on loans from banks and others which went up by 189.96 lakhs due to increase in borrowings during the year.
Depreciation and amortization expenses
Depreciation and amortization in the Financial Year 2023-24 increased by 11.06%, reaching 270.82 lakhs in comparison to the 243.84 lakhs incurred in the Financial Year 2022-23. The increase in depreciation was primarily due to addition of the assets and was set off to some extent by the disposal of assets.
Other Expenses
Other expenses in the Financial Year 2023-24 increased by 1.56%, reaching 2,406.88 lakhs in comparison to the 2,369.95 lakhs incurred in the Financial Year 2022-23. The other expenses were almost identical to the last year balances and there was just a mere 1.56% increase. This increase in other expenses was primarily attributed to increase in power and fuel expenses, packing material consumed, sales promotion. Increase in certain expenses were offset by decrease in expenses such as legal & professional charges.
Tax Expenses
Tax expenses decreased by 13.34%, reaching a total of 217.13 lakhs in the financial year 2023-24, in contrast to the 250.54 lakhs balance in the financial year 2022-23.
Profit after Tax (PAT)
Due to the aforementioned factors, the profit experienced an upswing, primarily driven by the efficient cost of material consumed and a consequent increase in total expenses as a percentage of total income. The Profit After Tax (PAT) for the financial year 2023-24 reached 752.20 lakhs, marking an increase from 624.98 lakhs in the financial year 2022-23. In the financial year 2023-24, PAT constituted 2.49% of the total income, in contrast to 1.97% in the fiscal year 2022-23. The company achieved a PAT margin of 2.54 % in FY 2024 compared to 1.99% in FY 2023, representing a modest improvement of 0.55%. This improvement stems mainly from more efficient material usage and reduced procurement costs and includes 201.29 lakhs gain from writing back liabilities. These liabilities unpaid for over three years and deemed no longer payable were reversed based on managements evaluation of the underlying obligations.
Cash Flow
The table below summaries our cash flows from our Restated Financial Information for the financial years ended in 2025, 2024, and 2023:
| Particulars | FY 2025 | FY 2024 | FY 2023 |
| Net cash (used)/ Generated from operating activities | 2,485.26 | 268.35 | (891.56) |
| Net cash (used)/ Generated from investing activities | 85.68 | (75.11) | (417.71) |
| Net cash (used)/ Generated from finance activities | (2,571.76) | (224.07) | 1,233.01 |
| Net increase/ (decrease) in cash and cash equivalents | (0.82) | (30.83) | (76.26) |
| Cash and Cash Equivalents at the beginning of the period | 1.99 | 32.82 | 109.08 |
| Cash and Cash Equivalents at the end of period | 1.17 | 1.99 | 32.82 |
Cash Flow from / (used in) Operating Activities
Net cash generated from operating activities in the Fiscal 2025 was 2,485.26 lakhs and our profit before tax for that period was 2,827.05 lakhs. The difference was primarily attributable to depreciation of 307.46 lakhs, Interest expense of 831.80 lakhs, Liabilities & provisions no longer required written back of (414.39) lakhs, interest received (252.03) lakhs and thereafter change in working capital of (360.63) lakhs respectively, resulting in gross cash generated from operations at 3,013.84 lakhs. We have paid income tax of 528.58 lakhs. Net cash generated from operating activities in the Fiscal 2024 was 268.35 lakhs and our profit before tax for that period was 969.33 lakhs. The difference was primarily attributable to depreciation of 270.82 lakhs, Interest expense of 864.76 lakhs, Liabilities & provisions no longer required written back of (279.80) lakhs, interest received (145.01) lakhs and thereafter change in working capital of (1,221.79) lakhs respectively, resulting in gross cash generated from operations at 486.32 lakhs. We have paid income tax of 217.97 lakhs. Net cash generated from operating activities in the Fiscal 2023 was (891.56) lakhs and our profit before tax for that period was 875.52 lakhs. The difference was primarily attributable to depreciation of 243.84 lakhs, Interest expense of 672.95 lakhs, Liabilities & provisions no longer required written back of (78.51) lakhs, interest received (126.04) lakhs and thereafter change in working capital of (2,341.41) lakhs respectively, resulting in gross cash generated from operations at (671.82) lakhs. We have paid income tax of 219.74 lakhs.
Cash Flow from / (used in) Investing Activities
In the Fiscal 2025, our net cash used in investing activities was 85.68 lakhs, which was primarily for Purchase of PPE of (274.73) lakhs, proceeds from sale of PPE of 25.35 lakhs, Interest received of 256.60 lakhs and deposit in term deposits of 79.40 lakhs during the said period. In the Fiscal 2024, our net cash used in investing activities was (75.11) lakhs, which was primarily for Purchase of PPE of (285.45) lakhs, increase in other non-current financial assets of (22.43) lakhs, Interest received of 142.35 lakhs and deposit in term deposits of 88.84 lakhs during the said period. In the Fiscal 2023, our net cash used in investing activities was (417.71) lakhs, which was primarily for Purchase of PPE of (404.22) lakhs, Interest received of 126.38 lakhs and new deposits of (164.33) lakhs during the said period.
Cash Flow from / (used in) Financing Activities
In the Fiscal 2025, our net cash generated from financing activities was (2,571.76) lakhs. This was primarily due to repayment short term of borrowings of (1,346.24) lakhs, repayment of long-term borrowings (233.98) lakhs, repayment of lease liabilities of (107.35) lakhs and interest expense of (884.19) lakhs. In the Fiscal 2024, our net cash generated from financing activities was (224.07) lakhs. This was primarily due to proceeds from long-term borrowings of 29.65 lakhs, repayment of long-term borrowings of (233.99) lakhs, proceeds from short term borrowings of 891.71 lakhs, repayment of lease liabilities of (117.13) lakhs and interest expense of (794.31) lakhs. In the Fiscal 2023, our net cash generated from financing activities was 1,233.01 lakhs. This was primarily due to proceeds from short-term borrowings of 2,092.81 lakhs, repayment of long-term borrowings of (234.86) lakhs, proceeds of long-term borrowings of 99.00 lakhs, repayment of lease liabilities of (74.55) lakhs and interest expense of (649.39) lakhs.
CONTINGENT LIABILITIES AND COMMITMENTS
| Particulars | For the Year ended March 31, 2025 | For the Year ended March 31, 2024 | For the Year ended March 31, 2023 |
| Contingent Liabilities | |||
| a. Outstanding bank guarantees with | |||
| - IOCL | 800.00 | 800.00 | 800.00 |
| - others * | 93.54 | 122.34 | 361.83 |
| b. GST Appeal 18-19 -Goa & Delhi ** | 54.83 | - | - |
| c. Undisputed income tax demand *** | 2.36 | 2.36 | 2.36 |
| d. Custom duty liability in respect of matters in appeal | 5.31 | 5.31 | 5.31 |
| e. Disputed income tax demand for AY 2023-24 ** | 24.10 | - | - |
| f. Letter of comfort (Financial Guarantee) given on behalf of related party (Refer Note 38) | 900.00 | - | - |
| Capital Commitments | |||
| a. Estimated value of contract remaining to be executed on capital account and not provided for (net of capital advances of INR 119.97 Lacs (March 31, 2024: Nil and March 31, 2023: Nil) ## | 236.21 | - | - |
* Includes Bank Guarantees in USD 2,000 (March 31, 2024: USD 37,595 and March 31, 2023: USD 86,508).
** The company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of proceeding will not be having materially adverse effect on the company financial position and results of operations. The company has deposited the amount of INR 5.48 Lacs amount of pre-deposit under GST appeals. *** Includes undisputed o/s income tax demand pertaining to AY 2014-15 & AY 2013-14 ## Estimated value of contract remaining to be executed on capital account and not provided for amounting to USD 2,76,500 (net of capital advances of USD 1,18,500 (March 31, 2024: Nil and March 31, 2023: Nil).
The Honourable Supreme Court has passed a decision on 28th February 2019 in relation to inclusion of certain allowances within the scope of "Basic wages" for the purpose of determining contribution to provident fund under the Employees Provident Funds & Miscellaneous Provisions Act, 1952. The Company is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of the judgment to the Company, with respect to the period and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present.
FINANCIAL RISK MANAGEMENT
The activities of the Company expose it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance. The Company does regularly monitor, analyse and manage the risks faced by the Company and to set and monitor appropriate risk limits and controls for mitigation of the risks.
A. MANAGEMENT OF MARKET RISK:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of two types of risks: interest rate risk and currency rate risk. Financial instruments affected by market risk includes borrowings and investments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
(i) Management of interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Companys borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost
| March 2025 | Floating Rate borrowings | Fixed rate borrowings | Non-Interest- bearing borrowings | Total Borrowings |
| Financial Liabilities (borrowings) | 7,091.86 | 300.37 | - | 7,392.23 |
| March 2024 | Floating Rate borrowings | Fixed rate borrowings | Non-Interest- bearing borrowings | Total Borrowings |
| Financial Liabilities (borrowings) | 7,601.08 | 532.33 | 346.76 | 8,480.17 |
| March 2023 | Floating Rate borrowings | Fixed rate borrowings | Non-Interest- bearing borrowings | Total Borrowings |
| Financial Liabilities (borrowings) | 7,459.70 | 730.10 | 770.17 | 8,959.97 |
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Companys profit before tax is affected through the impact on floating rate borrowings, as follows:
| Particulars | As At March 31, 2025 | As At March 31, 2024 | As at March 31, 2023 |
| 1% Increase in (in Interest rates) | 70.92 | 76.01 | 74.60 |
| 1% decrease in (in Interest rates) | (70.92) | (76.01) | (74.60) |
(ii) Management of currency risk:
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures etc. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.
Exposure to currency risk (The Company has exposure only in USD/EURO/AED converted to functional currency i.e. ) The currency profile of financial assets and financial liabilities as at March 31, 2025, March 31, 2024, and March 31, 2023, are as below:
| Particulars | As At March 31, 2025 | As At March 31, 2024 | As at March 31, 2023 |
| Trade Payable (USD) | USD 1,137 | - | USD 1,94,314 |
| Trade Payable (INR) | 0.97 | - | 159.76 |
| Trade Receivable (USD) | USD 12,63,074 | USD 1,03,197 | USD 4,85,211 |
| Trade Receivable (INR) | 1,079.04 | 86.04 | 398.93 |
| Working Capital Loan-USD | USD 5,75,433 | USD 7,15,090 | USD 19,12,323 |
| Working Capital Loan-(INR) | 491.60 | 596.20 | 1,572.25 |
| Advance to Suppliers-USD | USD 1,72,418 | USD 2,61,222 | USD 48,997 |
| Advance to Suppliers-(INR) | 147.30 | 217.79 | 40.28 |
| Advance to Suppliers-AED | AED 40 | AED 40 | AED 40 |
| Advance to Suppliers-(INR) | 0.01 | 0.01 | 0.01 |
| Advance to Suppliers-EUR | - | EUR 59.5 | - |
| Advance to Suppliers-(INR) | - | 0.05 | - |
Forward contract outstanding for purpose of hedging as at Balance Sheet date:
| Particulars | As At March 31, 2025 | As At March 31, 2024 | As At March 31, 2023 |
| USD | 3,67,076 | 2,06,812 | 3,19,512 |
| INR | 313.59 | 172.43 | 262.69 |
Sensitivity Analysis:
| Particulars | As At March 31, 2025 | As At March 31, 2024 | As At March 31, 2023 |
| Trade Payable | |||
| 1% Increase in (in Functional currency) | 0.01 | - | 1.60 |
| 1% decrease in (in Functional currency) | (0.01) | - | (1.60) |
| Trade Receivable | |||
| 1% Increase in (in Functional currency) | (10.79) | (0.86) | (3.99) |
| 1% decrease in (in Functional currency) | 10.79 | 0.86 | 3.99 |
| Working Capital Loan-USD | |||
| 1% Increase in (in Functional currency) | 4.92 | 5.96 | 15.72 |
| 1% decrease in (in Functional currency) | (4.92) | (5.96) | (15.72) |
| Advance to Suppliers-USD | |||
| 1% Increase in (in Functional currency) | (1.47) | (2.18) | (0.40) |
| 1% decrease in (in Functional currency) | 1.47 | 2.18 | 0.40 |
| Advance to Suppliers-AED | |||
| 1% Increase in (in Functional currency) | (0.00) | (0.00) | (0.00) |
| 1% decrease in (in Functional currency) | 0.00 | 0.00 | 0.00 |
| Advance to Suppliers-EUR | |||
| 1% Increase in (in Functional currency) | - | (0.00) | - |
| 1% decrease in (in Functional currency) | - | 0.00 | - |
MANAGEMENT OF CREDIT RISK
"Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and foreign exchange transactions and financial instruments.
Credit risk from trade receivables is managed through the Companys policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed. The Companys historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management."
Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.
Trade Receivables
Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit risk. The Companys credit risk management policy in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. The utilization of credit limits regularly monitored. The Companys credit risks mainly confined to the risk of customers defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring Company. In respect of trade receivables, the Company recognises a provision for lifetime expected credit losses after evaluating the individual probabilities of default of its customers which are duly based on the inputs received from the marketing teams of the Company. Other financial assets measured at amortised cost loans and other financial assets are considered to have low credit risks since there is a low risk of default by the counter parties owing to their strong capacity to meet contractual cash flow obligations in the near term. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits
Credit risk exposure
Financial assets (other than trade receivables)
Company provides for expected credit losses on loans other than trade receivables by assessing individual financial instruments for expectation of any credit losses. - For cash & cash equivalents, other bank balances and derivative financial instruments-Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative financial instruments, other bank balances and bank deposits is evaluated as very low. - For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset. - For other financial assets Credit risk is evaluated based on Company knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 12 month expected credit losses up on initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.
| March 2025 | Gross carrying amount | Expected probability of default | Expected credit losses | Carrying amount net of impairment provision |
| Cash deposits with banks | 1.17 | 0.00% | - | 1.17 |
| Bank Balance other than cash and cash equivalents | 170.85 | 0.00% | - | 170.85 |
| Other financial assets | 1,311.40 | 1.71% | 22.46 | 1,288.94 |
| March 2024 | Gross carrying amount | Expected probability of default | Expected credit losses | Carrying amount net of impairment provision |
| Cash deposits with banks | 1.99 | 0.00% | - | 1.99 |
| Bank Balance other than cash and cash equivalents | 253.36 | 0.00% | - | 253.36 |
| Other financial assets | 382.88 | 5.87% | 22.46 | 360.42 |
| March 2023 | Gross carrying amount | Expected probability of default | Expected credit losses | Carrying amount net of impairment provision |
| Cash deposits with banks | 32.82 | 0.00% | - | 32.82 |
| Bank Balance other than cash and cash equivalents | 344.74 | 0.00% | - | 344.74 |
| Other financial assets | 146.02 | 15.38% | 22.46 | 123.56 |
Expected credit loss for trade receivables under simplified approach
In Respect of Trade Receivables, the company measures the loss allowance at an amount equal to the lifetime expected credit losses using a simplified approach.
| March 2025 | Gross carrying amount | Significant increase in credit risk | Credit Impaired | Expected credit losses | Carrying amount net of impairment provision |
| Not due | 4,357.81 | - | - | - | 4,357.81 |
| Not more than 6 months | 2,176.64 | - | - | - | 2,176.64 |
| More than 6 months but less than 1 year | 485.82 | - | - | - | 485.82 |
| More than 1 year | 656.42 | 99.36 | 267.88 | 303.85 | 352.57 |
| Total | 7,676.69 | 99.36 | 267.88 | 303.85 | 7,372.84 |
| March 2024 | Gross carrying amount | Significant increase in credit risk | Credit Impaired | Expected credit losses | Carrying amount net of impairment provision |
| Not due | 3,674.56 | - | - | - | 3,674.56 |
| Not more than 6 months | 2,290.44 | - | - | - | 2,290.44 |
| More than 6 months but less than 1 year | 56.74 | - | - | - | 56.74 |
| More than 1 year | 551.12 | 71.04 | 267.88 | 303.85 | 247.27 |
| Total | 6,572.86 | 71.04 | 267.88 | 303.85 | 6,269.01 |
| March 2023 | Gross carrying amount | Significant increase in credit risk | Credit Impaired | Expected credit losses | Carrying amount net of impairment provision |
| Not due | 5,102.32 | - | - | - | 5,102.32 |
| Not more than 6 months | 731.55 | 32.20 | - | - | 731.55 |
| More than 6 months but less than 1 year | 41.44 | 1.36 | - | - | 41.44 |
| More than 1 year | 613.11 | 110.69 | 267.88 | 303.85 | 309.26 |
| Total | 6,488.42 | 144.25 | 267.88 | 303.85 | 6,184.57 |
MANAGEMENT OF LIQUIDITY RISK:
Liquidity risk is the risk that the Company may not be able to meet its present and future cash obligations without incurring unacceptable losses. The Companys objective is to maintain at all times, optimum levels of liquidity to meet its obligations. The Company closely monitors its liquidity position and has a cash management system. The Company maintains adequate sources of financing including debt and overdraft from domestic and international banks and financial markets at optimized cost.
Maturities of financial liabilities
The tables below analyse the companys financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities, and The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
| March 2025 | Carrying amount | Less than 1 year | 1 – 3 years | Above 3 years | Total |
| Borrowings | 7,392.23 | 7,325.85 | 66.38 | - | 7,392.23 |
| Trade payable | 2,746.62 | 2,746.62 | - | - | 2,746.62 |
| Lease liabilities | 140.09 | 100.42 | 47.62 | - | 148.04 |
| Other financial liabilities | 93.85 | 93.85 | - | - | 93.85 |
| Total | 10,372.79 | 10,266.74 | 114.00 | - | 10,380.74 |
| March 2024 | Carrying amount | Less than 1 year | 1 – 3 years | Above 3 years | Total |
| Borrowings | 9,376.69 | 9,076.32 | 300.37 | - | 9,376.69 |
| Trade payable | 1,997.56 | 1,997.56 | - | - | 1,997.56 |
| Lease liabilities | 204.24 | 97.01 | 127.37 | - | 224.38 |
| Other financial liabilities | 156.04 | 156.04 | - | - | 156.04 |
| Total | 11,734.53 | 11,326.93 | 427.74 | - | 11,754.67 |
| March 2023 | Carrying amount | Less than 1 year | 1 – 3 years | Above 3 years | Total |
| Borrowings | 8,959.97 | 8,455.27 | 504.70 | - | 8,959.97 |
| Trade payable | 2,629.03 | 2,629.03 | - | - | 2,629.03 |
| Lease liabilities | 83.73 | 74.68 | 12.10 | - | 86.78 |
| Other financial liabilities | 98.74 | 98.74 | - | - | 98.74 |
| Total | 11,771.47 | 11,257.72 | 516.80 | - | 11,774.52 |
Fair value measurement
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices for identical instruments in an active market. Level 2: Directly (i.e., as prices) or indirectly (i.e., derived from prices) observable market inputs, other than Level 1 inputs; and. Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
Financial assets and liabilities measured at fair value - recurring fair value measurements
On the adoption of IND AS for first time Company has not measured its Assets and Liabilities at Fair Value and the same policy has been adopted by the company for all the relevant periods.
Financial assets and liabilities measured at amortised cost
The following table presents the fair value hierarchy of assets and liabilities measured at amortised cost:
| Particulars | Fair value hierarchy | Fair Value as at March 31 2025 | Fair Value as at March 31 2024 | Fair Value as at March 31 2023 |
| Financial assets | ||||
| a) Measured at amortised cost | ||||
| i) Cash and cash equivalent | L3 | 1.17 | 1.99 | 32.82 |
| ii) Bank Balance other than cash and cash equivalents | L3 | 170.85 | 253.36 | 344.74 |
| iii) Trade receivables | L3 | 7,372.84 | 6,269.01 | 6,184.57 |
| iv) Other non-current financial assets | L3 | 30.98 | 27.33 | 7.20 |
| v) Other current financial assets | L3 | 1,257.96 | 333.09 | 116.36 |
| Total Financial assets | 8,833.80 | 6,884.78 | 6,685.69 | |
| Financial Liabilities | ||||
| a) Measured at amortised cost | ||||
| i) Cash Credit facilities | L3 | 3,222.97 | 2,739.73 | 2,789.58 |
| ii)Term loans | L3 | 300.37 | 532.33 | 730.10 |
| iii) Trade payables | L3 | 2,746.62 | 1,997.56 | 2,629.03 |
| iv) Other Current loans | L3 | 3,868.89 | 6,104.63 | 5,440.29 |
| v) Other current financial liabilities | L3 | 91.11 | 156.04 | 98.74 |
| vi) Lease liability | L3 | 140.09 | 204.24 | 83.73 |
| Total financial liabilities | 10,370.05 | 11,734.53 | 11,771.47 |
a). The carrying amount loans, investment, trade receivables, other bank balances, cash and cash equivalents, trade payables and other financial liabilities which are short term in nature are considered to same as their fair values. b). All the long-term borrowing facilities availed by the Company from unrelated parties are fixed rate facilities which are not subject to changes in underlying interest rate indices. Hence fair value is not significantly different from the carrying value. c). All financial assets and financial liabilities are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
Information required as per Item 11 (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:
1. Unusual or infrequent events or transactions
To our knowledge there have been no unusual or infrequent events or transactions that have taken place during the last three years.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page 33 of this Draft Red Herring Prospectus. To our knowledge, except as we have described in this Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.
3. Income and Sales on account of major product/main activities
Income and sales of our Company mainly consists of sale of products from following segments:
| FY 2024-25 | FY 2023-24 | FY 2022-23 | |||||||
| Particulars | Polymer Division | Trading | Total | Polymer Division | Trading | Total | Polymer Division | Trading | Total |
| REVENUE | |||||||||
| External | 24,162.23 | 8,681.36 | 32,843.59 | 25,441.56 | 4,194.27 | 29,635.23 | 27,703.11 | 3,758.50 | 31,461.61 |
| Sales | |||||||||
| Inter | - | - | - | - | - | - | - | - | - |
| Segment | |||||||||
| Sales | |||||||||
| Total | 24,162.23 | 8,681.36 | 32,843.59 | 25,441.56 | 4,194.27 | 29,635.23 | 27,703.11 | 3,758.50 | 31,461.61 |
| Revenue | |||||||||
| RESULTS | |||||||||
| Segment | 3,456.87 | 238.55 | 3,695.42 | 1,636.32 | 248.24 | 1,884.56 | 1,430.05 | 173.91 | 1,602.96 |
| Results | |||||||||
| Unallocated | - | - | - | - | - | - | - | - | - |
| Corporate | |||||||||
| Expenses | |||||||||
| Operating | - | - | 3,281.03 | - | - | 1,604.76 | - | - | 1,524.45 |
| Profit | |||||||||
| Unallocated | - | - | 414.39 | - | - | 279.80 | - | - | 78.51 |
| Other | |||||||||
| Income | |||||||||
| Interest | - | - | (868.37) | - | - | (915.23) | - | - | (727.44) |
| Expenses | |||||||||
| Income | - | - | (713.45) | - | - | (217.13) | - | - | (250.54) |
| Taxes | |||||||||
| Net Profit | 2,113.60 | 752.20 | 624.98 | ||||||
4. Whether the company has followed any unorthodox procedure for recording sales and revenues
Our Company has not followed any unorthodox procedure for recording sales and revenues.
5. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page 33 in this Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
6. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.
Increases in revenues are by and large linked to increases in volume of business.
7. Total turnover of each major industry services in which the issuer company operated.
The company is engaged in one major industry only and the turnover is provided above as per the segment the company operates in. Also, the relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 144 of this Draft Red Herring Prospectus.
8. Status of any publicly announced new products or business services.
Our Company has not announced any new services or business services.
9. The extent to which business is seasonal.
Our Companys business is not seasonal.
10. Any significant dependence on a single or few suppliers or customers.
The % of contribution of our Companys suppliers vis-?-vis the total revenue from operations respectively for the Fiscal 2025, 2024 and 2023 is as follows:
| Top Suppliers as a percentage (%) of total purchases | |||
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Top 5 | 77.85% | 64.02% | 46.09% |
| Top 10 | 83.52% | 75.34% | 57.75% |
The % of contribution of our Companys customers vis-?-vis the total revenue from operations respectively for the Fiscal 2025, 2024 and 2023 is as follows:
| Particulars | Top customers as a percentage (%) of total revenue | ||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |
| Top 5 | 50.90% | 36.85% | 36.81% |
| Top 10 | 64.44% | 50.52% | 51.02% |
11. Competitive conditions.
Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 144 and 211, respectively of this Draft Red Herring Prospectus.
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