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Aarti Industries Ltd Audit Report / Information 2021
62198_rns_2021-06-23_0f864dbb-2a65-44a3-8a27-130daf942abc.pdf
Audit Report / Information
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June 23,2021
To, Listing/Compliance Department BSE LTD. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.
To, Listi ng/Com pliance Department National Stock Exchange of lndia Limited "Exchange Plaza", Plot No. C/1, G Block Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. NSE CODE : AARTIIND
BSE CODE :524208
Dear Sir/Madam,
Ref: Audited Consolidated Financial Statements.
This is in furtherance to our intimation dated May 18, 2021 in relation to the announcement of the Audited Standalone and Consolidated Financial Results for the fourth quarter and the financial year ended March 31,2021, of the Company.
Please find enclosed the Audited Consolidated Financial Statements, along with the lndependent Audito/s Report thereon for the year ended March 31, 2021, for your records, which is subject to the adoption by the members of the Company at the ensuing Annual General Meeting.
The Audited Consolidated Financial Statements will also be available on the website of BSE Limited (https://www.bseindia.com/) and the National Stock Exchange of lndia Limited (https://www.nseindia.com/) and on the Company's website (https://www.aartiindustries.com/).
Kindly take the same on record.
Thanking You,
Yours faithfully, FOR !NDUSTR!ES LIMITED
RAJ COMPANY S rcsl M No. A15s26 Encl.: as above
www.aarti-industries.com I CIN: L241 1 OGJ 1 984PLC007301
Admin. Office : 71, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (W), Mumbai - 400080, lNDlA. T : 022-67976666, F : 022-2565 3234 | E : [email protected] Eraad nrrina. prat Nn Flol Ao112? lllrrl Phase GIDC Vaoi-3961 95. Dist- Valsad. lNDlA. T: 0260-2400366.
INDEPENDENT AUDITOR'S REPORT
To the Members of Aarti Industries Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying Consolidated Financial Statements of Aarti Industries Limited (hereinafter referred to as the "Holding Company"), its subsidiaries and Jointly controlled entity (Holding Company and its subsidiaries together referred to as "the Group"), which comprise the consolidated Balance Sheet as at March 31, 2021, and the consolidated statement of Profit and Loss, the consolidated statement of changes in equity and the consolidated cash flows Statement for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting policies (hereinafter referred to as "the Consolidated Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of their consolidated state of affairs of the Company as at March 31, 2021, of consolidated profit/loss, consolidated changes in equity and its consolidated cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Consolidated Financial Statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Financial Statements of the current period. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Due to COVID-19 lockdown throughout the country, we have adopted alternative methodologies, solutions in performing our audit procedures. We have determined the matters described below to the Key Audit Matters to be communicated in the Report:
| # | Audit Matters | Auditor's ResponseAudit Approach and Principal Audit Procedures |
|---|---|---|
| 1 | Accuracy,Completenessanddisclosure with reference to INDAS-16ofProperty,PlantandEquipment (Including Capex)PeculiarityandtechnicalcomplexitiesofProperty,PlantandEquipmentusedintheoperationsandmultipleITsystemsusedformaintainingFixedAssetRegister(FAR),trackingandmonitoringCapexrequires more attention to ensurereasonableaccuratenessandcompletenessoffinancialreporting in respect of Property,Plant and Equipment.Further,technicalcomplexitiesrequire management to assessandmakeestimates/judgmentsaboutcapitalisation,estimateduseful life, impairment etc. whichhas material impact on BalanceSheet and operating results | Our audit approach consisted testing of the design andoperating effectiveness of the internal controls. We havereviewed audited financial statements of components.Summary of substantive tests applied are as follows:a) WeassessedGroup'sprocessregardingmaintenanceofrecords,valuationandaccounting of transactions pertaining to Property,Plant and Equipment including Capital Work inProgress with reference to Indian AccountingStandard 16.b) Wehavecarriedoutsubstantiveauditprocedures at financial and assertion level toverify the capitalization of asset as Property,Plant and Equipment.c) We have verified the maintenance of records andaccounting of transactions regarding capital workin progress by carrying out substantive auditprocedures at financial and assertion level.d) WehavereviewedmanagementjudgmentpertainingtoestimationofusefullifeanddepreciationoftheProperty,PlantandEquipment in accordance with Schedule II ofCompanies Act, 2013.e) Due to pandemic restrictions physical verification |
| Refernote1tofinancialstatements | on sample basis was not possible. We havereliedonphysicalverificationconductedbymanagement and management representations.f)We have verified the capitalization of borrowingcost incurred on qualifying asset in accordancewith the Indian Accounting Standard 23 |
Audit Report on Consolidated Financial Statements: FY 2020-21 Aarti Industries Limited
| # | Audit Matters | Auditor's Response | ||
|---|---|---|---|---|
| Audit Approach and Principal Audit Procedures | ||||
| 2 | Valuation,Accuracy,CompletenessanddisclosurespertainingtoInventorieswithreference to Ind AS 2 | Our audit approach consisted testing of the design andoperating effectiveness of the internal controls. We havereviewed audited financial statements of components.Summary of substantive tests applied are as follows: | ||
| Inventoriesconstitutesmaterialcomponent of financial statement.Correctness, completeness, andvaluation are critical for reflectingtrue and fair financial results of | a)We assessed the Group's process regardingMaintenanceofrecords,Valuationandaccounting of transactions relating to Inventoryas per the Indian Accounting Standard 2.b)WehaveevaluatedthedesignofInternalControls relating to recording and valuation of | |||
| operations.Furtherduetocontinuousnatureofplantoperations and the raw materialswhicharebasicallychemicals,management has to exercise itsjudgment in assessing stage ofthe product and its valuation. | Inventory.c)Wehavecarriedoutsubstantiveauditprocedures to verify the allocation of overheadsto Inventory.d)Duetopandemicrestrictionsphysicalverification on sample basis was not possible.Wehavereliedonphysicalverification | |||
| Refernote4tofinancialstatements | conducted by management and managementrepresentations.e)We have verified consistency in respect ofvaluation process and methodology followed | |||
| 3 | Valuation,PresentationandDisclosure pertaining to advancesreceived for export commitmentsunder long term contracts | The Company has entered into long term contracts forexportsofmaterials.UnderthesecontractstheCompanyhasreceivedadvancestoexpediteestablishment of production facilities.Our audit approach consisted substantive testing as | ||
| The contracts entered into coversa span of 10 to 20 years. Duringthecurrentfinancialyearinrespect of one long term contractthe Company received terminationintimation.Onaccountofthetermination the relevant remediesavailabletotheCompany | follows:a) We have reviewed the terms of contracts enteredinto by the Company.b) Theclassification,presentationofthesaidadvances received under these contracts wastested.c) Recognition and accuracy of compensation onaccount of termination intimation was verified | |||
| triggered. Further in respect ofotherlongtermcontracts,estimatedsupplieswillhappenover the period of contract at alater stage after the reporting date.Thesespecificallyrequire | with reference to the terms of contract undertermination intimation.d) Thefairnessofvaluereflectedinfinancialstatement was verified and tested.e) Disclosure note pertaining to said advances infinancial statement was reviewed. | |||
| considerationinrecognitionofcompensationonaccountofterminationofcontractwheretermination intimation has beenreceived and in respect of othercontracts,themanagementisrequired to exercise its judgment.Basedonthejudgmentthe |
Audit Report on Consolidated Financial Statements: FY 2020-21 Aarti Industries Limited
| # | Audit Matters | Auditor's ResponseAudit Approach and Principal Audit Procedures |
|---|---|---|
| carryingvalueoftheadvancereceived, its fair presentation iscriticalRefernote13tofinancialstatements |
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Holding Company's Board of Directors is responsible for the preparation and presentation of these Consolidated Financial Statements in term of the requirements of the Companies Act, 2013 that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group including its Associates in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. The respective Board of Directors of the companies included in the Group and of its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Financial Statements by the Directors of the Holding Company, as aforesaid.
In preparing the Consolidated Financial Statements, the respective Board of Directors of the companies included in the Group and of its associates are responsible for assessing the ability of the Group and of its associates to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associates are responsible for overseeing the financial reporting process of the Group and of its associates and jointly controlled entities.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SA's will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.
Other Matters
We did not audit the financial statements / financial information of 11 subsidiaries & 1 jointly controlled entity whose financial statements / financial information reflect total assets of ₹ 231.62 crores as at March 31, 2021, total revenues of ₹ 466.61crores and net cash flows amounting to ₹ 6.33 crores for the year ended on that date, as considered in the Consolidated Financial Statements. These financial statements / financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the Consolidated Financial Statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, jointly controlled entities and associates, and our report in terms of Sub-Sections (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, jointly controlled entities and associates, is based solely on the reports of the other auditors.
Our opinion on the Consolidated Financial Statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements / financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, we report, to the extent applicable, that:
-
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Consolidated Financial Statements.
-
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Consolidated Financial Statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
-
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the Consolidated Financial Statements.
-
(d) In our opinion, the aforesaid Consolidated Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.
-
(e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2021 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies, associate companies and jointly controlled company incorporated in India, none of the directors of the Group companies & its associate companies in India is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
-
(f) With respect to the adequacy of internal financial controls over financial reporting of the Group and the operating effectiveness of such controls, refer to our separate report in Annexure A.
-
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
- i. The Consolidated Financial Statements disclose the impact of pending litigations on the consolidated financial position of the Group & its associates– Refer Note 25 to the Consolidated Financial Statements.
- ii. Provision has been made in the Consolidated Financial Statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative
- iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies, associate companies and jointly controlled companies incorporated in India.
For Kirtane & Pandit LLP, Chartered Accountants Firm's Registration No.105215W/W100057
sd/- Partner's Name Partner M. No. 047973 UDIN: 21047973AAAABG4324
Place: Mumbai. Date: May 18, 2021
Annexure A to the Auditor's Report
Report on the Internal Financial Controls Over Financial Reporting Under Clause Financial Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("The Act")
(Referred to in paragraph 9(f) under 'Report on Other Legal and Regulatory Requirements' of our report of even date)
In conjunction with our audit of the consolidated financial statements of the Holding Company as of and for the year ended March 31, 2021, we have audited the internal financial controls over financial reporting of Aarti Industries Limited (hereinafter referred to as "the Holding Company"), its subsidiaries & jointly controlled entity (together referred to as "the Group"), its associates incorporated in India, as of that date.
Management's Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding Company, its subsidiaries, associates, and jointly controlled entity all incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by these entities, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Holding Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor's Responsibility
Our responsibility is to express an opinion on the Holding Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. We believe that the audit evidence obtained by us and the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Group's, its associates' and jointly controlled entities', incorporated in India, internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Group's assets that could have a material effect on the consolidated financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors, as referred to in the Other Matters paragraph, the Holding Company, its subsidiaries and Jointly controlled entity, which are incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the these entities, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Other Matters
Our aforesaid reports under Section 143(3)(i) of the Act, on the adequacy and operating effectiveness of the internal financial controls over financial reporting in so far as it relates to consolidated/ standalone financial statements of eleven subsidiaries and one jointly controlled entity, of which ten are incorporated in India and two are incorporated outside India, is based on the corresponding reports of the auditors of such companies.
For Kirtane & Pandit LLP, Chartered Accountants Firm Registration No. 105215W/ W100057
sd/- Milind Bhave Partner M. No.: 047973 UDIN: 21047973AAAABG4324
Place: Mumbai. Date: May 18, 2021
Consolidated Balance Sheet as at 31st March, 2021
For Kirtane & Pandit LLP Chartered Accountants FRN: 105215W/W100057
| (Rs. in Crs) | |||
|---|---|---|---|
| Particulars | Note No. | As at 31st March, | As at 31st March, |
| 2021 | 2020 | ||
| ASSETS | |||
| Non-Current Assets: | |||
| Property, Plant and Equipment | 13,592.48 | 2,467.57 | |
| Capital Work-in-Progress | 11,297.91 | 1,417.64 | |
| Goodwill | 1- | 0.42 | |
| Other Intangible Assets | 10.10 | 0.50 | |
| Financial Assets: | |||
| Investments | 263.52 | 37.01 | |
| Other Non-Current Assets | 3 | 320.07 | 404.49 |
| Total Non-Current Assets | 5,274.08 | 4,327.63 | |
| Current Assets: | |||
| Inventories | 4 | 935.68 | 835.68 |
| Financial Assets: | |||
| Trade Receivables | 5 | 793.73 | 753.44 |
| Cash and Cash Equivalents | 6 | 412.32 | 247.29 |
| Others Current Financial Assets | 7 | 187.48 | 135.66 |
| Other Current Assets | 838.39 | 32.80 | |
| Total Current Assets | 2,367.60 | 2,004.87 | |
| TOTAL ASSETS | 7,641.68 | 6,332.50 | |
| EQUITY AND LIABILITIES | |||
| EQUITY | |||
| Equity Share Capital | 9 | 87.12 | 87.12 |
| Other Equity | 10 | 3,415.78 | 2,891.65 |
| Non Controlling Interest | 12.24 | 94.62 | |
| Total Equity | 3,515.14 | 3,073.39 | |
| LIABILITIES | |||
| Non-Current Liabilities: | |||
| Financial Liabilities | |||
| Borrowings | 11 | 1,268.05 | 580.84 |
| Other Non-Current Liabilities | 12 | 224.41 | 550.89 |
| Deferred Tax Liabilities (Net) | 13 | 233.94 | 211.01 |
| Total Non-Current Liabilities | 1,726.40 | 1,342.74 | |
| Current Liabilities: | |||
| Financial Liabilities | |||
| Borrowings | 14 | 1,224.07 | 1,229.67 |
| Trade Payables due to: | |||
| Micro and Small Enterprise | NIL | NIL | |
| Other than Micro and Small Enterprise | 576.33 | 345.16 | |
| Other Current Liabilities | 15 | 559.62 | 301.63 |
| Provisions | 16 | 40.12 | 39.91 |
| Total Current Liabilities | 2,400.14 | 1,916.37 | |
| Total Liabilities | 4,126.54 | 3,259.11 | |
| TOTAL EQUITY AND LIBILITIES | 7,641.68 | 6,332.50 | |
| Significant Accounting Policies | |||
| See accompanying Notes to the Financial Statements | 1-32 | ||
| As per our report of even date |
For and on behalf of the Board
sd/- sd/- sd/- Milind Bhave Rajendra V. Gogri Rashesh C. Gogri Partner Chairman and Vice Chairman and M.No. 047973 Managing Director Managing Director DIN: 00061003 DIN: 00066291 sd/- sd/- Chetan Gandhi Raj Sarraf Place: Mumbai Chief Financial Officer Company Secretary Date: May 18, 2021 ICAI M.No. 111481 ICSI M.No. A15526
Consolidated Statement of Profit and Loss for the period ended 31st March, 2021
| (Rs. in Crs) | |||
|---|---|---|---|
| For the Year Ended | For the Year Ended | ||
| Particulars | Note No. | 31st March, 2021 | 31st March, 2020 |
| REVENUE | |||
| Gross Revenue from Operations | 17 | 5,023.28 | 4,620.69 |
| Less: GST Collected | 517.18 | 434.38 | |
| Net Revenue from Operations | 4,506.10 | 4,186.31 | |
| Other Income | 18 | 0.70 | 8.84 |
| Total Revenue | 4,506.80 | 4,195.15 | |
| EXPENSES | |||
| Cost of Materials Consumed (Incl. Packing Material, Fuel, Store s | 19 | 1,937.57 | 1,780.92 |
| Purchases of Stock-in-Trade | 244.24 | 274.65 | |
| Changes in Inventories of Finished Goods, Work-in-prog ress and | |||
| Stock-in-Trade | 20 | (53.25) | 0.75 |
| Employee Benefits Expenses | 21 | 371.38 | 305.22 |
| Finance Costs | 22 | 86.37 | 124.78 |
| Depreciation and Amortisation Expenses | 231.31 | 185.21 | |
| Other Expenses | 23 | 1,024.63 | 847.44 |
| Total Expenses | 3,842.25 | 3,518.97 | |
| PROFIT BEFORE TAX | 664.55 | 676.18 | |
| TAX EXPENSES | |||
| Current Year Tax | 116.03 | 118.13 | |
| Earlier Year Tax | - | 0.38 | |
| MAT Credit Entitlement | (9.80) | (7.09) | |
| Deferred TaxTotal Tax Expenses | 23.10129.33 | 18.00129.42 | |
| PROFIT AFTER TAX BEFORE NON CONTROLLING INTEREST AND | |||
| SHARE OF PROFIT/(LOSS) OF ASSOCIATES | 535.22 | 546.76 | |
| Profit attributable to Non Controlling Interest | (11.75) | (10.68) | |
| Share of Profit/(Loss) of Associates | NIL | NIL | |
| Profit/(Loss) for the period | 523.47 | 536.08 | |
| OTHER COMPREHENSIVE INCOME | |||
| Items that will not be reclassified to Statement of Profit and Lo ss | |||
| Fair Value of various Qualifing Items | 47.94 | (57.39) | |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 571.41 | 478.69 | |
| Earnings Per Equity Share (EPS) (in `) | 24 | ||
| Basic/Diluted | 30.04 | 30.77 | |
| Significant Accounting Policies | |||
| See accompanying Notes to the Financial Statements | 1-32 | ||
| As per our report of even date | For and on behalf of the Board | ||
For Kirtane & Pandit LLP Chartered Accountants FRN: 105215W/W100057
Place: Mumbai Chief Financial Officer Company Secretary Date: May 18, 2021 ICAI M.No. 111481 ICSI M.No. A15526
sd/- sd/- sd/- Milind Bhave Rajendra V. Gogri Rashesh C. Gogri Partner Chairman and Vice Chairman and M.No. 047973 Managing Director Managing Director DIN: 00061003 DIN: 00066291 sd/- sd/- Chetan Gandhi Raj Sarraf
Statement of Changes in Equity for the year ended 31st March, 2021
| A. EQUITY SHARE CAPITAL | (Rs. in Crs) |
|---|---|
| As at 1st April, 2019 | 43.33 |
| Changes in equity share capital during the year 2019-20 | 43.79 |
| As at 31st March, 2020 | 87.12 |
| Changes in equity share capital during the year 2020-21 | NIL |
| As at 31st March, 2021 | 87.12 |
B. OTHER EQUITY (Rs. in Crs)
| Other Equity | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Reserves and Surplus | Other | Total Other | |||||||||
| Particulars | CapitalReserve | CapitalRedemptionReserve | SecuritiesPremiumAccount | DebentureRedumptionReserve | GeneralReserve | ForfeitureReserve | RevaluationReserve | RBI ReserveU/s 45(IC) | RetainedEarnings | ComprehensiveIncome | Equity |
| Balance as at 1st April, 2019 | 13.89 | 2.28 | 740.09 | 120.00 | 119.00 | 1.85 | 0.51 | 3.70 | 1,579.85 | 6.05 | 2,587.22 |
| Transfer to Other Reserves from | - | (40.00) 94.65 | - | - | - | (54.65) | NIL | ||||
| Retained Earnings | - | - | - | ||||||||
| Upon Bonus Shares issued | - | (1.56) | (42.00) | - | - | - | - | - | - | - | (43.56) |
| Dividend Paid | - | - | - | - | - | - | - | - | (108.24) | - | (108.24) |
| Tax on Dividend | - | - | - | - | - | - | - | - | (21.87) | - | (21.87) |
| Intergroup Dividend | - | - | - | - | - | - | - | - | 1.86 | - | 1.86 |
| Upon QIP Proceeds (net of | (0.60) | - | - | - | - | - | - | (0.60) | |||
| Expenses) | - | - | - | ||||||||
| Foreign Exchange Difference on | - | - | - | - | - | - | (1.85) | (1.85) | |||
| Translation | - | - | - | ||||||||
| Profit for the Period | - | - | - | - | - | - | - | - | 536.08 | - | 536.08 |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | (57.39) | (57.39) |
| As at 31st March, 2020 | 13.89 | 0.72 | 697.49 | 80.00 213.65 | 1.85 | 0.51 | 3.70 | 1,931.18 | -51.34 | 2,891.65 | |
| Transfer to Other Reserves from | |||||||||||
| Retained Earnings | - | - | - | (80.00) 132.66 | - | - | - | (52.66) | - | - | |
| Consolidation Adjustment | (0.56) | 0.21 | (0.35) | ||||||||
| Dividend Paid | - | - | - | - | - | - | - | - | (46.65) | - | (46.65) |
| Intergroup Dividend | - | - | - | - | - | - | - | - | 1.55 | - | 1.55 |
| Foreign Exchange Difference on | |||||||||||
| Translation | - | - | - | - | - | - | - | - | (1.85) | - | (1.85) |
| Profit for the Period | - | - | - | - | - | - | - | - | 523.47 | - | 523.47 |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | 47.94 | 47.94 |
| Balance as at 31st March, 2021 | 13.33 | 0.72 | 697.70 | - | 346.31 | 1.85 | 0.51 | 3.70 | 2,355.07 | (3.41) | 3,415.78 |
For Kirtane & Pandit LLP Chartered Accountants
| FRN: 105215W/W100057 | ||||
|---|---|---|---|---|
| sd/- | sd/- | sd/- | sd/- | sd/- |
| Milind Bhave | Rajendra V. Gogri | Rashesh C. Gogri | Chetan Gandhi | Raj Sarraf |
| Partner | Chairman and | Vice Chairman and | Chief Financial Officer | Compan y Secretary |
| M.No. 047973 | Managing Director | Managing Director | ICAI M.No. 111481 | ICSI M.No. A15526 |
| Place: Mumbai | DIN: 00061003 | DIN: 00066291 | ||
| Date: May 18, 2021 |
For and on behalf of the Board
Consolidated Cash Flow Statement for the year ended 31st March, 2021
| (Rs. in Crs) | |||
|---|---|---|---|
| Sr. | For the Year Ended 31st | For the Year Ended | |
| No. | Particulars | March, 2021 | 31st March, 2020 |
| A. | Cash Flow from Operating Activities: | ||
| Net Profit before Tax and Exceptional/Extraordinary Items | 664.55 | 676.18 | |
| Adjustments for: | |||
| Finance Costs | 86.37 | 124.78 | |
| Depreciation | 231.31 | 185.21 | |
| Consolidated Adjustments | (5.26) | (1.85) | |
| 976.97 | 984.32 | ||
| Profit on Sale of Investments/Assets | (0.34) | (8.49) | |
| Dividend Received from other Investments | (0.02) | (0.07) | |
| Lease Rent Received | (0.05) | (0.08) | |
| Operating Profit before Working Capital Changes | 976.56 | 975.68 | |
| Adjustments for: | |||
| (Increase)/Decrease in Trade and Other Receivables | (25.01) | (4.69) | |
| Increase/(Decrease) in Trade Payables and Other Current Liabilities | 128.78 | 358.81 | |
| (Increase)/Decrease in Inventories | (111.00) | (63.90) | |
| Cash Generated from Operations | 969.33 | 1,265.90 | |
| Direct Taxes Paid | (96.62) | (163.84) | |
| Net Cash Flow from Operating Activities (A) | 872.71 | 1,102.06 | |
| B. | Cash Flow from Investing Activities: | ||
| Addition to Property, Plant & Equipment/Capital WIP | (1,314.82) | (1,153.29) | |
| Sale/Written off of Property, Plant & Equipment | 0.43 | 27.79 | |
| (Increase)/Decrease in Other Investments | (7.82) | (2.59) | |
| Dividend Received from Other Investments | 0.02 | 0.07 | |
| Profit on Sale of Investments | NIL | 3.88 | |
| Lease Rent Received | 0.05 | 0.08 | |
| Net Cash Flow from Investing Activities (B) | (1,322.14) | (1,124.06) | |
| C. | Cash Flow from Financing Activities: | ||
| Proceeds of Long-Term Borrowings | 1,007.99 | 74.10 | |
| Repayment of Long-Term Borrowings | (256.48) | (316.09) | |
| Proceeds/(Repayment) of Other Borrowings | (5.59) | (61.16) | |
| Increase in Equity through QIP Allotment (Net of Expenses) | NIL | (0.60) | |
| Finance Costs | (86.37) | (124.78) | |
| Dividend Paid | (45.09) | (106.38) | |
| Net Cash Flow from Financing Activities (C) | 614.46 | (534.91) | |
| Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) | 165.03 | (556.91) | |
| Cash and Cash Equivalents (Opening Balance) | 247.29 | 804.20 | |
| Cash and Cash Equivalents (Closing Balance) | 412.32 | 247.29 |
Notes: (i) Cash and Cash Equivalent is Cash and Bank Balances as per Balance Sheet.
Date: May 18, 2021
(ii) Amounts of the previous year have been regrouped and rearranged wherever necessary.
| As per our report of even dateFor Kirtane & Pandit LLPChartered AccountantsFRN: 105215W/W100057 | For and on behalf of the Board | |||
|---|---|---|---|---|
| sd/- | sd/- | sd/- | sd/- | sd/- |
| Milind Bhave | Rajendra V. Gogri | Rashesh C. Gogri | Chetan Gandhi | Raj Sarraf |
| Partner | Chairman and | Vice Chairman and | Chief Financial Officer | Company Secretary |
| M.No. 047973 | Managing Director | Managing Director | ICAI M.No. 111481 | ICSI M.No. A15526 |
| Place: Mumbai | DIN: 00061003 | DIN: 00066291 |
| Country ofIncorporation | Proportion of OwnershiInterest (%) | |
|---|---|---|
| Aarti Corporate Services Limited | India | 100.00% |
| Nascent Chemical Industries Limited (Through its holdingCompany: Aarti Corporate Services Limited) | India | 50.49% |
| Shanti Intermediates Private Limited (Through its holdingCompany: Aarti Corporate Services Limited) | COLLEGE ANDIndia | 100.00% |
| Innovative Envirocare Jhagadia Limited | 100.00% | |
| Aarti Polychem Private Limited | India | 100.00% |
| Aarti Organics Limited | India | 100.00% |
| Aarti Bharuch Limited | India | 100.00% |
| Aarti Pharmachem Limited | India | 100.00% |
| Aarti Spechern Limited | India | 100.00% |
| Alchemie (Europe) Limited | United Kingdom | 88.89% |
| Aarti USA Inc. | USA | 100.00% |
| India | 50,00% | |
| CREW MODERN PRODUCTName of the SubsidiaryIndian Subsidiary:Foreign Subsidiary:Joint Control:(xii) Ganesh Polychem Limited* | IndiaTWORLD INC. AND TWO THE |
(d) Revenue Recognition:
(i)
- Sale of goods is recognized on dispatch of goods to customers and is re corded net of claims, etc., as considered appropriate. Revenue from Conversion, Sale of Scrap and obsolete stores is accounted for at the time of disposal.
- (ii) Export entitlements are recognized on realization.
- (iii) Revenue in respect of Interest, Insurance claims are recognized on the time proportion method.
- (iv) Subsidy from Department of Fertilizers is recognised, based on the eligible quantities supplied by the Company, at the rates as notified/annou nced by the Government of India.
(e) Property, Plant and Equipment, Intangible Assets and Depreciation/Amortization:
(1) Property, Plant and Equipment (PPE)
Property, Plant & Equipment are stated at cost of acquisition (net of recoverable taxes) inclusive of all expenditure of capital nature such as inward f reight, duties & taxes, installation and commissioning expenses, appropriate b orrowing costs and incidental expenses related to acquisition.
(2) Intangible Assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits avalied,if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
(3) Depreciation/Amortization
(A) Pursuant to the notification of Schedule II of the Companies Act, 2013, the m anagement has reassessed and changed based on an independent technical estimates, wherever necessary, the useful lives to compute depreciation, to confirm to the requirements of the Companies Act, 2013. The useful life for various class of assets is as follows:
| Particulars | Depreciation/Amortisation |
|---|---|
| (i) Leasehold Land | Over the remaining tenure of lease |
| (ii) Building | Over a period of 19 years |
| (iii) Residential Quarters | Over a period of 30 years |
| (iv) Plant & Equipments | Over its useful life as technically assessed, i.e o ver a period of 9 - 19 years, based on the type of |
| processes and equipments installed. | |
| (v) Computers | Over a period of 2.5 years |
| (vi) Office Equipment | Over a period of 5 years |
| (vii) Furniture and Fixtures | Over a period of 10 years |
| (viii) Vehicles | Over a period of 7 years |
(B) Product/Process Development Expenses are amortized over the estimated useful life of the product.
(4) Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of net selling price of an assets or its value in use. Value in use is present value of es timated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
(f) Research and Development:
Revenue Expenditure on Research and Development is charged to the Profit and Loss Account for the year. Capital Expenditure on Research and Development is included as part of Property, Plant & Equipment and depreciation is prov ided on the same basis as for other Property, Plant & Equipment.
(g) Investments:
(ii) Other investments are measured at fair value through Other Comprehensive Income.
(h) Valuation of Inventories:
Inventories are valued at Cost or Net Realizable Value whichever is lower.
Inventories have been valued on the following basis:
| (i) | Raw Materials, Packing Material, Stores and Spares - At cost on Weighted Average basis. | |
|---|---|---|
| (ii) | Work-in-Process | - At cost plus appropriate allocation of overheads. |
| (iii) | Finished Goods | - At cost plus appropriate allocation of overheads or ne t realizable value, whichever is lower. |
(i) Retirement Benefits:
Employee benefits are charged off in the year in which the employee has rendered services.
(j) Foreign Currency Transactions:
Foreign currency transactions are accounted at the rates prevailing on the date of the transaction. The exchange rate differences arising out of such transactions are approriately dealt in the financial statements in accordance with the appicable s accounting standards.
(k) Lease:
The Company has adopted Ind AS 116. It has resulted into recognition of Leas e Assets Right to Use with a corresponding Lease Liability in the Balance She et. The Company, as a lessee, recognises a right to use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially al l of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right to use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments m ade at or before the commencement date plus any initial direct costs incurred. The right to 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 assets is depreciated using the s traight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. 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.
(l) Deferred Revenue Expenditure:
Deferred Revenue Expenditure is amortized over the period of the agreement on pro rata basis.
(m) Income Taxes:
Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.
Deferred Tax reflects the impact of timing differences between Taxable Income and Accounting Income for the year and reversal of timing differences of earlier years. Deferred Tax is measured on the basis of Tax Rates and Tax Laws enacted or substantively enacted at the Balance Sheet. Deferred Tax Assets are recognized only if there is reasonable certainty of their realization except in case of Deferred Tax Assets on unabsorbed depreciation and carried forward business losses, which are recognized only if there is virtual certainty of their realization.
Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. The Company reviews the same at each balance sheet date.
(n) Borrowing Costs:
Borrowing cost directly related to the acquisition or construction of an as set is capitalized as part of the cost of that asset. Other borrowing costs are charged to the Profit and Loss Account.
(o) Provisions and Contingent Liabilities:
Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a Cash Outflow will be required and a reliable estimate can be made of the amount of the obligation.
Contingent Liabilities are disclosed when the Company has a possible o bligation or a present obligation and it is probable that a Cash Outflow will no t be required to settle the obligation.
(p) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, other short-term, highly liquid investments that are readily convertilbe to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash and Cash Equivalents cons ist of balances with banks which are unresticted for withdrawals and usages.
Notes on Financial Statements for the period ended 31st March, 2021
| 1. PROPERTY, PLANT AND EQUIPMENT: | (Rs. in Crs) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| F.Y. 2020-21 | G R O S S B L O C KA C C U M U L A T E D D E P R E C I A T I O N | N E T B L O C K | ||||||||||
| Particulars | Balance asat 1st April,2020 | Adjustment onConsolidation | Additions/(Disposals) | Deduction/Adjustment | Balance asat 31stMarch, 2021 | Balance as at1st April, 2020 | Adjustment onConsolidation | Depreciationcharge for theyear | Deduction /Adjustment | Balance as at31st March,2021 | Balance asat 31stMarch, 2021 | Balance as at31st March,2020 |
| (i)Tangible Assets | ||||||||||||
| Free hold Land | 3.68 | - | - | - | 3.68 | 0.26 | - | - | - | 0.26 | 3.42 | 3.42 |
| Lease Hold Land | 163.96 | 4.66 | 81.02 | - | 240.32 | 9.78 | 0.51 | 1.98 | - | 11.25 | 229.07 | 154.18 |
| Lease Assets Used | 25.35 | - | 1.48 | - | 26.83 | 5.11 | - | 5.73 | - | 10.84 | 15.99 | 20.24 |
| Residential Flat | - | - | - | - | - | - | - | - | - | - | 0.00 | 0.00 |
| Buildings | 325.63 | 3.52 | 127.98 | - | 450.09 | 91.15 | 0.64 | 19.63 | - | 110.14 | 339.95 | 234.48 |
| Plant and Equipment | 3,078.27 | 101.86 | 1,175.61 | - | 4,152.03 | 1,151.43 | 28.61 | 179.34 | - | 1,302.16 | 2,849.87 | 1,926.84 |
| R & D Assets | 123.55 | - | 26.71 | - | 150.27 | 23.33 | - | 9.51 | - | 32.84 | 117.43 | 100.22 |
| Furniture and Fixtures | 42.14 | 0.47 | 15.28 | - | 56.95 | 26.76 | 0.28 | 5.97 | - | 32.45 | 24.50 | 15.38 |
| Vehicles | 33.65 | 1.94 | 3.02 | 0.22 | 34.51 | 20.84 | 1.06 | 2.60 | 0.12 | 22.26 | 12.25 | 12.81 |
| Total (i) | 3,796.23 | 112.45 | 1,431.10 | 0.22 | 5,114.68 | 1,328.66 | 31.10 | 224.76 | 0.12 | 1,522.20 | 3,592.48 | 2,467.57 |
| (ii) Intangible Assets | ||||||||||||
| Process Development | 21.96 | - | - | - | 21.96 | 21.46 | - | 0.40 | - | 21.86 | 0.10 | 0.50 |
| Technical Knowhow | 1.38 | - | - | - | 1.38 | 1.38 | - | - | - | 1.38 | NIL | NIL |
| Goodwill | 6.19 | - | - | - | 6.19 | 6.19 | - | - | - | 6.19 | NIL | NIL |
| Computer Software | 0.38 | - | - | - | 0.38 | 0.38 | - | - | - | 0.38 | NIL | NIL |
| Copyrights and Patents | 9.66 | - | - | - | 9.66 | 9.66 | - | - | - | 9.66 | NIL | NIL |
| Goodwill on Consolidation | 1.24 | - | - | - | 1.24 | 0.82 | - | 0.42 | - | 1.24 | - | 0.42 |
| Total (ii) | 40.81 | - | - | - | 40.81 | 39.89 | - | 0.82 | - | 40.71 | 0.10 | 0.92 |
| TOTAL (i+ii) | 3,837.04 | 112.45 | 1,431.10 | 0.22 | 5,155.49 | 1,368.55 | 31.10 | 225.58 | 0.12 | 1,562.91 | 3,592.58 | 2,468.49 |
| (iii) Capital Work-in-Progress | 1,297.91 | 1,417.64 |
| F.Y. 2019-20 | G R O S S B L O C K | A C C U M U L A T E D D E P R E C I A T I O N | N E T B L O C K | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Particulars | Balance asat 1st April,2019 | Additions/(Disposals) | Deduction/Adjustment | Balance as at31st March,2020 | Balance as at1st April,2019 | Depreciationcharge for theyear | Deduction /Adjustment | Balance as at31st March,2020 | Balance as at31st March,2020 | Balance as at31st March,2019 | ||
| (i) Tangible Assets | ||||||||||||
| Free hold Land | 3.68 | - | - | 3.68 | 0.26 | - | - | 0.26 | 3.42 | 3.42 | ||
| Lease Hold Land | 159.95 | 4.78 | 0.77 | 163.96 | 7.75 | 2.03 | - | 9.78 | 154.18 | 152.20 | ||
| Lease Assets Used | NIL | 25.35 | - | 25.35 | NIL | 5.11 | - | 5.11 | 20.24 | NIL | ||
| Residential Flat | 0.00 | - | - | 0.00 | 0.00 | - | - | 0.00 | 0.00 | 0.00 | ||
| Buildings | 294.15 | 34.20 | 2.72 | 325.63 | 76.28 | 15.96 | 1.09 | 91.15 | 234.48 | 217.87 | ||
| Plant and Equipment | 2,713.77 | 414.40 | 49.90 | 3,078.27 | 1,030.14 | 150.64 | 29.35 | 1,151.43 | 1,926.84 | 1,683.63 | ||
| R & D Assets | 85.15 | 38.40 | - | 123.55 | 18.72 | 4.61 | - | 23.33 | 100.22 | 66.43 | ||
| Furniture and Fixtures | 34.62 | 7.86 | 0.34 | 42.14 | 23.25 | 3.85 | 0.34 | 26.76 | 15.38 | 11.37 | ||
| Vehicles | 29.67 | 5.22 | 1.24 | 33.65 | 19.23 | 2.60 | 0.99 | 20.84 | 12.81 | 10.44 | ||
| Total (i) | 3,320.99 | 530.21 | 54.97 | 3,796.23 | 1,175.63 | 184.80 | 31.77 | 1,328.66 | 2,467.57 | 2,145.35 | ||
| (ii) Intangible Assets | ||||||||||||
| Process Development | 21.96 | - | - | 21.96 | 21.06 | 0.40 | - | 21.46 | 0.50 | 0.90 | ||
| Technical Knowhow | 1.38 | - | - | 1.38 | 1.38 | - | - | 1.38 | NIL | NIL | ||
| Goodwill | 6.19 | - | - | 6.19 | 6.19 | - | - | 6.19 | NIL | NIL | ||
| Computer Software | 0.38 | - | - | 0.38 | 0.38 | - | - | 0.38 | NIL | NIL | ||
| Copyrights and Patents | 9.66 | - | - | 9.66 | 9.66 | - | - | 9.66 | NIL | NIL | ||
| Goodwill on Consolidation | 1.24 | - | - | 1.24 | 0.82 | - | - | 0.82 | 0.42 | 0.42 | ||
| Total (ii) | 40.81 | - | - | 40.81 | 39.49 | 0.40 | - | 39.89 | 0.92 | 1.32 | ||
| TOTAL (i+ii) | 3,361.80 | 530.21 | 54.97 | 3,837.04 | 1,215.12 | 185.20 | 31.77 | 1,368.55 | 2,468.49 | 2,146.67 | ||
| (iii) Capital Work-in-Progress | 1,417.64 | 794.57 |
| Name of the Company | No. of Shares/Units | As at 301stMarch, 2021 | No. of Shares/Units | As at 301stMarch, 2020 |
|---|---|---|---|---|
| Investments - (Unquoted) in Equity Shares of Other Companies | ||||
| Ichalkaranji Janata Sahakari Bank Limited | 1.020 | 0.01 | 1,020 | 0.01 |
| Ganesh Polychem Ltd* | 30,98,257 | 12.61 | NIL | NIL |
| Damanganga Saha Khand Udyog Mandali Limited | 61 | 0.01 | 61 | 0.01 |
| Narmada Clean Tech Limited | 2,87,550 | 0.13 | 2,87,550 | 0.13 |
| Dilesh Roadlines Private Limited | 4,64,550 | 3.25 | 4.64.550 | 2.56 |
| U.K.I.P. Co-Op. Soc. Limited | 80 | 0.00 | 80 | 0.00 |
| Aarti Ventures Limited | 9,17,000 | 7.40 | 1,90,000 | 2.52 |
| Tarapur Environment Protection Society | 32,489 | 0.62 | 32,489 | 0.62 |
| Derma Touch Inc. | 1,25,000 | 8.82 | 1,25,000 | 8.98 |
| Invatech | 1,00,000 | 1.10 | 1,00,000 | 1.14 |
| SBPP Bank Limited | 783 | 0.01 | 783 | 0.01 |
| Deltecs Infotech Private Limited | 853 | 0.07 | 853 | 0.07 |
| Bewakoof Brands Private Limited | 4,033 | 4.51 | 4.033 | 5.15 |
| Valiant Organic Limited | 35,963 | 12.84 | 35,963 | 4.23 |
| Polygomma Industries Private Limited | 5,33,358 | 2.82 | 5,33,358 | 0.00 |
| Numbermask Digital Private Limited | 1,125 | 0.00 | 1,125 | 0.00 |
| Trans Retail Ventures Private Limited | 28,796 | 0.00 | 28,796 | 0.00 |
| Aarti Biotech Limited | 4,21,700 | 0.12 | 4,21,700 | 0.12 |
| Aarti Intermediates Private Limited | 22,125 | 0.00 | 22,125 | 0.00 |
| Perfect Enviro Control Systems Limited | 3,80,640 | 0.22 | 3,80,640 | 0.22 |
| Shamrao Vithal Co-op. Bank Limited | 100 | 0.00 | 100 | 0.00 |
| 54.55 | 25.77 | |||
| Investments - (Unquoted) Convtertible Pref. Shares | ||||
| Deltecs Infotech Private Limited | 7,50,000 | 0.26 | 7,50,000 | 0.26 |
| Valiant Oraganics Limited | 5,014 | 0.03 | 11,814 | 0.04 |
| 0.29 | 0.30 | |||
| Investments - (Unquoted) in Warrant Certificate | ||||
| Deltecs Infotech Private Limited | 93 | 0.00 | 93 | 0.00 |
| 0.00 | 0.00 | |||
| Investments - (Unquoted) in Limited Liability Partnership | ||||
| Aarti Udyog Limited Liability Partnership | NA | 3.67 | ΝA. | 3.67 |
| 3.67 | 3.67 | |||
| Investments - (Unquoted) in Unsecured Convertible Debentures | ||||
| Bewakoof Brands Private Limited | 869 | 5.00 | ||
| Aarti Ventures Limited | 7,27,000 | 7.27 | ||
| 5.00 | 7.27 | |||
| TOTAL | 63.52 | 37.01 |
| As at 31st March, | (Rs. in Crs)As at 31st March, | |
|---|---|---|
| Particulars | 2021 | 2020 |
| 3. OTHER NON-CURRENT ASSETS: | ||
| Capital Advances | 92.10 | 171.91 |
| Other Deposits | 47.10 | 42.10 |
| Advance Tax and Tax Deducted at Source (Net of Provisions) | 180.87 | 190.48 |
| TOTAL | 320.07 | 404.49 |
| 4. INVENTORIES: | ||
| Raw Materials and Components | 278.80 | 251.84 |
| Work-in-progress | 240.40 | 208.44 |
| Finished Goods | 277.53 | 285.55 |
| Stock-in-trade | 28.21 | 0.85 |
| Stores and spares | 91.02 | 70.77 |
| Fuel | 13.90 | 14.53 |
| Packing Materials | 5.81 | 3.70 |
| TOTAL | 935.68 | 835.68 |
| Unsecured, considered goodTOTAL6. CASH AND CASH EQUIVALENTS: | 793.73793.73 | 753.44753.44 |
| Cash on hand | 1.46 | 0.60 |
| Bank balance in Current Accounts | 23.25 | 66.47 |
| Bank balance in Deposit Accounts | 332.52 | 177.89 |
| Earmarked Balances (Unpaid Dividend Accounts) | 2.05 | 2.33 |
| Cash Equivalants investment in highly Liquid Funds/Bonds | 53.04 | NIL |
| TOTAL | 412.32 | 247.29 |
| 7. OTHER CURRENT FINANCIAL ASSETS: | ||
| Balances with Customs, Port Trust, Central Excise, Sales Tax | ||
| and Goods & Services Tax Authorities | 171.45 | 118.53 |
| Loans Given to: | ||
| i) Employees | 8.57 | 8.06 |
| ii) Others | 7.46 | 9.07 |
| TOTAL | 187.48 | 135.66 |
| 8. OTHER CURRENT ASSETS: | ||
| Others Receivables | 10.42 | 8.98 |
| Prepaid Expenses | 22.22 | 13.50 |
| Subsidy Receivable | 5.75 | 10.32 |
| TOTAL | 38.39 | 32.80 |
9 EQUITY SHARE CAPITAL:
| (Rs. in Crs) | ||||
|---|---|---|---|---|
| Particulars | No. of Shares | As at 31stMarch, 2021 | No. of Shares | As at 31stMarch, 2020 |
| Authorised Share CapitalEquity Shares of ` 5/- each | 23,01,50,320 | 115.08 | 23,01,50,320 | 115.08 |
| Issued, Subscribed & Paid upEquity Shares of ` 5/- each fully paid up | 17,42,34,474 | 87.12 | 17,42,34,474 | 87.12 |
| TOTAL | 87.12 | 87.12 |
9.1 Reconciliation of the number of Shares outstanding as on 31st March, 2021:
| No. of Shares outstanding | ||||
|---|---|---|---|---|
| Particulars | As at 31st | As at 31st | ||
| March, 2021 | March, 2020 | |||
| Equity Shares at the beginning of the year | 17,42,34,474 | 8,66,68,647 | ||
| Add: Shares issued during the year | NIL | 8,75,65,827 | ||
| Less: Shares buy-back during the year | NIL | NIL | ||
| Equity Shares at the end of the year | 17,42,34,474 | 17,42,34,474 |
9.2 Details of shareholders holding more than 5% shares:
| Name of the Shareholders | As at 31st March, 2021 | As at 31st March, 2020 | |||
|---|---|---|---|---|---|
| No. of Shares | % held | No. of Shares | % held | ||
| HDFC Trustee Company Limited | 77,09,004 | 4.42 | 1,38,28,976 | 7.94 |
9.3 The details of Equity Shares outstanding during last 5 years:
| Financial Year | ||||||||
|---|---|---|---|---|---|---|---|---|
| Particulars | 2020-21 | 2019-20 | 2018-19 | 2017-18 | 2016-17 | |||
| No. of Equity Shares outstanding | 17,42,34,474 | 17,42,34,474 | 8,66,68,647 | 8,13,00,000 | 8,21,20,383 | |||
(Refer Note No. 9.4)
9.4 Note on Issued, Subscribed and Paid up Equity Share Capital:
- [a] During the year 2019-20 8,71,17,237 shares are issued as Bonus Shares in the ratio of 1:1 equity share of Rs. 5 each.
- [b] During the year 2018-19 53,68,647 shares were issued issued through Qualified Instituions Placement (QIP) at the issued price of Rs. 1397/- per equity share (including Rs. 1,392/- towards share premium) to Qualified Institutional Buyers.
- [c] During the year 2017-18 820,383 shares were brought back at a premium of Rs. 1,195/-.
- [d] During the year 2016-17 1,200,000 shares were brought back at a premium of Rs. 795/-.
10. OTHER EQUITY:
| ParticularsMarch, 2021March, 2020a.Capital ReservesOpening Balance13.8913.89Addition:Deduction:0.56NILClosing Balance13.3313.89b.Capital Redemption ReserveOpening Balance0.722.28Addition:Deduction:Issue of Bonus SharesNIL1.56Closing Balance0.720.72c.Securities Premium AccountOpening Balance697.49740.09Addition:0.21-Deduction:QIP Expenses0.60Issue of Bonus SharesNIL42.00Closing Balance697.70697.49Debenture Redemption Reserved.Opening Balance80.00120.00Addition: Transferred from Profit & Loss Account--Deduction:Transferred to General Reserve80.0040.00Closing BalanceNIL80.00e.RBI Reserve U/s 45 (IC)Opening Balance3.703.70Addition--Deduction-NILClosing Balance3.703.70f.General ReserveOpening Balance213.65119.00Addition:Transferred from Debenture Redumption Reserve80.0040.00Transferred from Profit & Loss Account52.6654.65Deduction:--Closing Balance346.31213.65g.Profit and Loss AccountOpening balance1,931.181,579.85Addition:Net Profit/(Loss) for the year523.47536.08Deduction:Final Dividend Paid on Equity Shares20.51108.24Interim Dividend paid on Equity Share for the year26.14Tax on Dividend-21.87Foreign Exchange Differnce on Translation1.851.85Intergroup Dividend(1.55)Transferred to Reserves52.6654.65Closing Balance2,355.071,931.18Other Reservesh.Revaluation Reserve0.510.51Forfeiture Reserve1.851.85Closing Balance2.362.36Other Comprehensive Incomei.Opening Balance-51.346.05OCI for the year47.94Closing Balance-3.41-51.34TOTAL3,415.782,891.65 | (Rs. in Crs) | ||
|---|---|---|---|
| As at 31st | As at 31st | ||
| (1.86) | |||
| (57.39) | |||
11. NON-CURRENT BORROWINGS:
| (Rs. in Crs) | |||||
|---|---|---|---|---|---|
| As at 31st March, 2021 | As at 31st March, 2020 | ||||
| Particulars | Non-Current | Current | Non-Current | Current | |
| Secured | |||||
| (a) Non Convertible Debentures (NCDs) | - | - | 0.45 | 80.00 | |
| (b) ECB/Term loans from Banks/Financial Institutions | 1,265.09 | 350.39 | 578.31 | 202.57 | |
| (c) Vehicle Loans from Banks/Financial Institutions | 2.96 | 1.33 | 2.08 | 1.08 | |
| TOTAL | 1,268.05 | 351.72 | 580.84 | 283.65 |
| (Rs. in Crs) | ||
|---|---|---|
| As at 31st | As at 31st | |
| Particulars | March, 2021March, 2020 | |
| 12. OTHER NON CURRENT LIABILITIES: | ||
| Long Term Advances for Exports received from | ||
| Customer | 211.29 | 529.69 |
| Lease Liabilities Account | 13.12 | 21.20 |
| TOTAL | 224.41 | 550.89 |
13. DEFERRED TAX LIABILITIES (NET):
| Deferred Tax Liabilities | 211.01 | 193.01 |
|---|---|---|
| Difference between net book value of depreciable | - | |
| capital assets as per books vis - a- vis written down | ||
| value as per Tax Laws | 23.00 | 21.30 |
| Deferred Tax Assets | ||
| Items allowed for tax purpose on payment | (0.07) | (3.31) |
| Deferred Tax Liabilities (Net) | 233.94 | 211.01 |
| (Rs. in Crs) | |||
|---|---|---|---|
| Particulars | As at 31st | As at 31st | |
| March, 2021 | March, 2020 | ||
| 14. SHORT-TERM BORROWINGS: | |||
| Secured | |||
| Working Capital Loan From Banks | 1,146.51 | 1,205.07 | |
| Total | 1,146.51 | 1,205.07 | |
| Unsecured | |||
| From Banks | 76.09 | 23.20 | |
| From Other | 1.47 | 1.40 | |
| Total | 77.56 | 24.60 | |
| TOTAL | 1,224.07 | 1,229.67 |
15. OTHER CURRENT LIABILITIES:
| Current maturities of Long-Term Debt | 350.39 | 286.32 |
|---|---|---|
| Current maturities of Vehicle Loan | 1.33 | 1.11 |
| Long Term Advance for Exports Received From Customer Current | ||
| Portion | 190.01 | - |
| Lease Liabilities Account (current) | 4.61 | - |
| Interest accrued but not due on borrowings | 0.27 | 7.57 |
| Unpaid Dividends | 2.05 | 2.33 |
| Other Current Liabilities & Taxes | 10.96 | 4.31 |
| TOTAL | 559.62 | 301.63 |
16. SHORT-TERM PROVISIONS:
| Provision for | ||
|---|---|---|
| Employees' Benefits | 38.72 | 38.78 |
| Others | 1.40 | 1.13 |
| TOTAL | 40.12 | 39.91 |
| (Rs. in Crs) | ||||
|---|---|---|---|---|
| For the Year | For the Year | |||
| Particulars | Ended 31st | Ended 31st | ||
| March, 2021 | March, 2020 | |||
| 17. REVENUE FROM OPERATIONS: | ||||
| Sale of Products | 4,822.40 | 4,539.63 | ||
| Other Operating Revenues | 200.88 | 81.06 | ||
| GROSS REVENUE OPERATIONS | 5,023.28 | 4,620.69 | ||
| Less: GST Collected | 517.18 | 434.38 | ||
| NET REVENUE OPERATIONS | 4,506.10 | 4,186.31 | ||
| 17.1 | OTHER OPERATING REVENUES: | |||
| Fertilizers Subsidy Received | 20.24 | 12.29 | ||
| Export Benefits/Incentives | 21.86 | 58.73 | ||
| Scrap Sales | 11.53 | 9.65 | ||
| Contract Shortfall Fees | 147.24 | - | ||
| Vat Refund Received | - | 0.38 | ||
| TOTAL | 200.88 | 81.06 | ||
| 18. OTHER INCOME: | ||||
| Dividend Received | 0.02 | 0.07 | ||
| Profit on Sale of Assets/Investment | 0.34 | 8.49 | ||
| Lease Rent Income | - | 0.08 | ||
| Other Income | 0.34 | 0.19 | ||
| TOTAL | 0.70 | 8.84 | ||
| 19. COST OF MATERIALS CONSUMED: | ||||
| Consumption of Raw Materials | 1,610.48 | 1,481.64 | ||
| Consumption of Packing Materials | 42.53 | 38.01 | ||
| Consumption of Fuel | 172.87 | 170.58 | ||
| Consumption of Stores & Spares | 111.68 | 90.69 |
TOTAL 1,937.57 1,780.92
| (Rs. in Crs) | |||
|---|---|---|---|
| For the Year | For the Year | ||
| Particulars | Ended 31st | Ended 31st | |
| March, 2021 | March, 2020 | ||
| 20. | CHANGE IN INVENTORY: | ||
| Opening Stock | |||
| Finished Goods | 286.40 | 281.53 | |
| Work-in-Progress | 208.44 | 214.07 | |
| Total (A) | 494.84 | 495.60 | |
| Closing Stock | |||
| Finished Goods | 302.77 | 286.40 | |
| Work-in-Progress | 245.33 | 208.44 | |
| Total (B) | 548.10 | 494.84 | |
| TOTAL (A-B) | -53.25 | 0.76 |
21. EMPLOYEE BENEFITS:
| Salaries, Wages & Bonus | 313.05 | 266.83 |
|---|---|---|
| Contribution to PF and other Funds | 26.99 | 19.73 |
| Workmen & Staff Welfare Expenses | 31.33 | 18.66 |
| TOTAL | 371.38 | 305.22 |
22. FINANCE COST:
| Interest on NCD's | 2.55 | 10.36 |
|---|---|---|
| Other Interest Expenses | 74.16 | 104.99 |
| Other Borrowing Costs | 9.66 | 9.43 |
| TOTAL | 86.37 | 124.78 |
| (Rs. in Crs) | |||
|---|---|---|---|
| Particulars | For the Year Ended31st March, 2021 | For the Year Ended31st March, 2020 | |
| 23.OTHER EXPENSES: | |||
| Manufacturing Expenses: | |||
| Freight, Cartage & Transport | 118.54 | 118.40 | |
| Power | 131.37 | 114.09 | |
| Water Charges | 13.99 | 12.64 | |
| Processing Charges | 59.47 | 45.28 | |
| Other Manufacturing Expenses | 160.40 | 129.94 | |
| Repairs & Maintenance | 114.51 | 111.78 | |
| Insurance Charges | 10.95 | 6.13 | |
| Research & Development Expenses | 55.10 | 27.01 | |
| Factory Administrative Expenses | 70.06 | 47.64 | |
| Total (A) | 734.39 | 612.91 | |
| Office Administrative Expenses: | |||
| Rent, Rates and Taxes | 1.30 | 2.61 | |
| Travelling and Conveyance | 3.47 | 7.51 | |
| Auditor's Remuneration | 0.47 | 0.48 | |
| Legal & Professional Charges | 18.51 | 12.85 | |
| Postage, Telegraph & Telephone/Printing & Stationery | |||
| Expenses | 1.18 | 1.65 | |
| Other Administrative Expenses | 14.28 | 11.93 | |
| Total (B) | 39.22 | 37.04 | |
| Selling & Distribution Expenses: | |||
| Advertisement & Sales Promotion | 3.75 | 6.05 | |
| Export Freight Expenses | 85.57 | 62.63 | |
| Freight and Forwarding Expenses | 116.21 | 91.27 | |
| Commission | 15.53 | 10.18 | |
| Export Insurance Charges | 1.95 | 1.92 | |
| Sample Testing & Analysis Charges | 1.44 | 1.16 | |
| Lease Rent Paid | 10.97 | 10.97 | |
| Other Expenses | 0.17 | 0.09 | |
| Sales Tax & Other Dues Paid | 0.06 | 0.13 | |
| Sundry Balance Written Off/(Back) | 0.87 | 1.95 | |
| Total (C) | 236.52 | 186.35 | |
| Non-Operating Expenses: | |||
| Donations and CSR Expenses | 14.50 | 11.14 | |
| Total (D) | 14.50 | 11.14 | |
| TOTAL (A+B+C+D) | 1,024.63 | 847.44 |
24. EARNING PER SHARE (EPS):
| For the Year | For the Year | ||
|---|---|---|---|
| Ended 31st | Ended 31st | ||
| Particulars | March, 2021 | March, 2020 | |
| Net Profit after Tax | (Rs in Crs) | 535.22 | 546.76 |
| Profit attributable to Minority Interest | (Rs in Crs) | -11.75 | -10.68 |
| Share of Profit/(Loss) of Associates | (Rs in Crs) | NIL | NIL |
| Net Profit After Consolidation avaliable for Equity Shareholders | (Rs in Crs) | 523.47 | 536.08 |
| No. of Equity Shares | (Nos.) | 17,42,34,474 | 17,42,34,474 |
| Basic & Diluted EPS | (Rs) | 30.04 | 30.77 |
| Nominal Value of Equity Share | (Rs) | 5.00 | 5.00 |
24.1 Basic earnings per share has been computed by dividing the profit/loss for the year by the weighted average number of shares outstanding during the year.
Partly paid shares are inculed as fully paid equivalents according to the fraction paid up.
Diluted earnings per share has been computed using weighted average number of shares dilutive potential shares, except where the results would be anti-dilutive.
25. CONTINGENT LIABILITIES AND COMMITMENTS:
(to the extent not provided for)
| (Rs. in Crs) | ||
|---|---|---|
| As at 31st | As at 31st | |
| Particulars | March, 2021 | March, 2020 |
| (i) Contingent Liabilities: | ||
| (a) Claims against the company not acknowledged as Debts | 68.10 | 67.65 |
| (b) Letters of Credit, Bank Guarantees & Bills Discounted | 250.90 | 296.80 |
| 319.00 | 364.45 | |
| (ii) Commitments: | ||
| (a) Estimated amount of contracts remaining to be executed on | ||
| capital account and not provided for, net of advances | ||
| 120.02 | 327.94 | |
| 120.02 | 327.94 | |
| TOTAL | 439.02 | 692.39 |
26. RELATED PARTY DISCLOSURE UNDER ACCOUNTING STANDARD (Ind AS: 24):
- I Following is the Joint Control Entity of the Company
-
- Ganesh Polychem Limited**
-
- II Following are the Enterprises/Firms over which controlling individuals/Key Management Personnel, of the Company along with their relatives, have significant influence
-
- Alchemie Speciality Private Limited
-
- Alchemie Laboratories
-
- Aarti Drugs Limited
-
- Alchemie Dye Chem Private Limited
-
- III Following are the individuals who with their relatives own Directly/indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.
| 1. Shri Rajendra V. Gogri | Director |
|---|---|
| 2. Shri Rashesh C. Gogri | Director |
| 3. Shri Parimal H. Desai | Director |
| 4. Shri Manoj M. Chheda | Director |
| 5. Shri Kirit R. Mehta | Director |
| 6. Smt. Hetal Gogri Gala | Director |
| 7. Shri Renil R. Gogri | Director |
| 8. Shri Narendra J. Salvi | Director |
| 9. Shri Chetan Gandhi | Chief Financial Officer |
| 10. Shri Raj Sarraf | Company Secretary |
The following transactions were carried out during the year with the related parties in the ordinary course of business
| (A) | Details relating to parties referred to in items I above. | (Rs. in Crs) | |
|---|---|---|---|
| Sr.No. | Description of Transaction | Year | OtherrelatedEnterprisesFirms |
| 1 | Sales of Finished Goods/Sales Income | CY | 63.84 |
| PY | 78.30 | ||
| 2 | Purchases of Raw Materials/Finished Goods | CY | 15.36 |
| PY | 21.18 | ||
| 3 | Other Manufacturing Expenses | CY | - |
| PY | 0.74 | ||
| 4 | Rent paid | CY | - |
| PY | 0.02 | ||
| 5 | Sale of Fixed Assets | CY | - |
| PY | 20.06 | ||
| 6 | Outstanding items pertaining to the related parties at the balance - | CY | 53.33 |
| - sheet date Receivable/(Payable) | PY | 29.68 |
(B) Details relating to persons referred to in item II above*
| Financial | Financial | |||
|---|---|---|---|---|
| Particulars | Year 2020-21 | Year 2019-20 | ||
| a. | Remuneration including perquisites # | 8.46 | 6.29 | |
| b. | Commission to Directors/KMPs | 18.95 | 19.10 | |
| c. | Sitting Fees | - | 0.01 | |
| d. | Rent paid | 1.07 | 1.07 | |
| e. | Travelling Expenses | 0.02 | 0.53 | |
| f. | Telephone Expenses | 0.02 | 0.05 | |
| TOTAL | 28.52 | 27.05 |
* Excluding the payments made to Independent Directors & Relative of Directors as per IND AS Interpretation 110 issued by the Institute of Chartered Accountants of India.
Value of Perquisites includes non Cash Perquisites of Rs. 0.03 Crs (previous year Rs. 0.02 Crs).
** During the March 2021 quarter a subsidiary viz Ganesh Polychem Limited ceased to be a subsidiary and became a jointly controlled entity w.e.f. March 17, 2021
27. SEGMENT REPORTING:
| (Rs. in Crs) | |||
|---|---|---|---|
| Sr. | Particulars | Financial Year | Financial Year |
| No. | 2020-21 | 2019-20 | |
| (A) | Primary Segments: Business Segments | ||
| 1 | Segment Revenue: | ||
| a) Speciality Chemicals | 4,151.40 | 3,864.95 | |
| b) Pharmaceuticals | 871.88 | 755.74 | |
| Total Revenue (Gross) | 5,023.28 | 4,620.69 | |
| Less: GST Tax Collected | 517.18 | 434.38 | |
| Total Revenue (Net) | 4,506.10 | 4,186.31 | |
| 2 | Segment Results Profit/(Loss): | ||
| Before Tax and Interest from each Segment | |||
| a) Speciality Chemicals | 752.75 | 814.11 | |
| b) Pharmaceuticals | 204.58 | 137.46 | |
| Total (A) | 957.33 | 951.57 | |
| Less: Interest | 86.37 | 124.78 | |
| Other Unallocable Expenditure (Net) | 206.41 | 150.61 | |
| Total (B) | 292.78 | 275.39 | |
| Total Profit before Tax (A-B) | 664.55 | 676.18 | |
| 3 | Segment Assets: | ||
| a) Speciality Chemicals | 5,638.60 | 4,766.25 | |
| b) Pharmaceuticals | 1,192.99 | 958.60 | |
| c) Unallocated Capital | 397.77 | 360.37 | |
| TOTAL | 7,229.36 | 6,085.22 | |
| Segment Liabilities: | |||
| a) Speciality Chemicals | 1,237.30 | 1,139.96 | |
| b) Pharmaceuticals | 163.19 | 97.64 | |
| c) Unallocated Capital | 233.94 | 211.01 | |
| TOTAL | 1,634.43 | 1,448.61 | |
| (B) | Secondary Segments: Geographical Segments | ||
| a) India | 2,835.73 | 2,655.17 | |
| b) Out of India | 2,187.55 | 1,965.52 | |
| TOTAL | 5,023.28 | 4,620.69 | |
Note:
The above segment report is presented in accordance with the applicable provisions & principles laid down under IND AS 108.
| Net Assets (i.e. TotalAssets minus totalliabilities) | Share in Profit or Loss | |||
|---|---|---|---|---|
| Name of Enterprise | As % ofConsolidatednet assets | (Amt inCrs) | As % ofConsolidatedProfit or Loss | (Amt inCrs) |
| Parent | ||||
| Aarti Industries Limited | 97.40% | 3,411.74 | 98.10% | 513.50 |
| Subsidiaries | ||||
| Alchemie (Europe) Limited | $-0.02%$ | $-0.70$ | $-0.02%$ | $-0.08$ |
| Aarti USA Inc. | $-0.03%$ | $-1.17$ | 0.00% | 0.01 |
| Aarti Corporate Services Limited | 0.90% | 31.49 | 0.00% | $-0.01$ |
| Ganesh Polychem Limited* | 2.75% | 96.28 | 4.49% | 23.50 |
| Innovative Envirocare Jhagadia Limited | 0.00% | 0.17 | 0.00% | |
| Nascent Chemical Industries Limited | 0.02% | 0.77 | 0.08% | 0.43 |
| Shanti Intermediates Private Limited | 0.01% | 0.36 | 0.01% | 0.07 |
| Aarti Polychem Private Limited | 0.00% | $-0.01$ | 0.00% | ÷. |
| Aarti Organics Limited | 0.01% | 0.23 | 0.00% | 한. |
| Aarti Bharuch Limited | 0.01% | 0.23 | 0.00% | $\frac{1}{2}$ . |
| Aarti Pharmachem Limited | 0.01% | 0.23 | 0.00% | đ. |
| Aarti Spechem Limited | 0.01% | 0.23 | 0.00% | $\mathbb{Z}$ |
| Non Controlling Interest in all Subsidiaries | 0.35% | 12.24 | $-2.24%$ | $-11.75$ |
| Inter Company Elimination & Consolidation Adjustment | $-1.40%$ | $-49.19$ | $-0.42%$ | $-2.20$ |
| TOTAL | 100.00% | 3,502.90 | 100.00% | 523.47 |
29. FAIR VALUE MEASUREMENTS:
Financial instuments by category
| (Rs. in Crs) | ||||||
|---|---|---|---|---|---|---|
| As at 31st March, 2021 | As at 31st March, 2020 | |||||
| Particulars | CarryingAmount | Level 1 | Level 2 | CarryingAmount | Level 1 | Level 2 |
| Financial Assets | ||||||
| At Amortised Cost | ||||||
| Investments | 35.11 | - | - | 22.14 | - | - |
| Trade Receivables | 793.73 | - | - | 753.44 | - | - |
| Cash and Cash Equivalents | 412.32 | - | - | 247.29 | - | - |
| Other Financial Assets | 326.68 | - | - | 349.67 | - | - |
| At FVTOCI | ||||||
| Investments | 28.41 | 12.84 | 15.57 | 14.87 | 4.23 | 10.64 |
| Financial Liabilities | ||||||
| At Amortised Cost | ||||||
| Borrowings | 2,843.84 | - | - | 2,097.94 | - | - |
| Trade Payables | 576.33 | - | - | 345.16 | - | - |
| Other Non-current Liabilities | 224.41 | - | - | 550.89 | - | - |
| Other Current Financial Liabilities | 207.90 | - | - | 14.20 | - | - |
The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
30. CAPITAL MANAGEMENT:
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net Debt is calculated as loans and borrowings less cash & marketable securities.
| (Rs. in Crs) | ||
|---|---|---|
| 31st March | 31st March | |
| Particulars | 2021 | 2020 |
| Gross Debts | 2,843.84 | 2,094.16 |
| Less: Cash and Marketable Securities | -412.32 | -247.29 |
| Net Debt (A) | 2,431.52 | 1,846.87 |
| Total Equity (B) | 3,515.14 | 3,073.39 |
| Net Gearing ratio (A/B) | 0.69 | 0.60 |
| Dividends | (Rs. in Crs) | |
|---|---|---|
| Particulars | 31st March | 31st March |
| 2021 | 2020 | |
| (i) Equity shares | ||
| Final dividend for the year ended 31st March 2020 of Rs 1 per fully paid | ||
| share & Interim Dividend for 2020-21 @ Rs 2.50 per Share paid during | 43.56 | 104.54 |
| the year 2020-21 | ||
| (ii) Dividends not recognised at the end of the reporting period | ||
| In addition to the above dividends, since year end the directors have | ||
| recommended the payment of dividend of Rs. 3 (31st March 2020 Rs. 1) | ||
| per fully paid equity share. This proposed dividend is subject to the | 52.27 | 17.42 |
| approval of shareholders in the ensuing annual general meeting. | ||
31. FINANCIAL RISK MANAGEMENT:
The Company's principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed to credit risk, market risk and liquidity risk. The Company's senior management oversees the management of these risks.
I. Credit Risk
The company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities (deposits with banks and other financial instruments).
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company's activities in investments, dealing in derivatives and outstanding receivables from customers.
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to customers on credit are generally secured through Letters of Credit, Bank Guarantees, Parent Company Guarantees, advance payments and factoring & forfaiting without recourse to AIL.
Credit risk management
To manage the credit risk, the Company follows an adequate credit control policy and also has an external credit insurance cover with ECGC policy wherein the customers are required to make an advance payment before procurement of goods. Thus, the requirement of assessing the impairment loss on trade receivables does not arise, since the collectability risk is mitigated.
Bank balances are held with only high rated banks and majority of other security deposits are placed majorly with government/statutory agencies.
II. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities such as trade payables and other financial liabilities.
(a) Liquidity risk management
The Company's corporate treasury department is responsible for liquidity and funding as well as settlement. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
As at 31st March 2021
Maturities of non-derivative financial liabilities
| (Rs. in Crs) | ||||
|---|---|---|---|---|
| Particulars | Upto 1 year | Between 1 | Beyond 5 | Total |
| and 5 years | years | |||
| Trade payables | 576.33 | - | - | 576.33 |
| Other financial liabilities | 1,823.81 | 1,492.46 | - | 3,316.27 |
| Total | 2,400.14 | 1,492.46 | - | 3,892.60 |
As at 31st March 2020
Maturities of non-derivative financial liabilities
| (Rs. in Crs) | ||||
|---|---|---|---|---|
| Particulars | Upto 1 year | Between 1 | Beyond 5 | Total |
| and 5 years | years | |||
| Trade payables | 345.16 | - | - | 345.16 |
| Other financial liabilities | 1,571.21 | 1,131.73 | - | 2,702.94 |
| Total | 1,916.37 | 1,131.73 | - | 3,048.10 |
III. Market risk
Foreign currency risk
The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities in exports and imports which is majorly in US dollars.
Hence, to combat the foreign currency exposure, the Company follows a policy wherein the net sales are hedged by forward Contract.
Commodity Price Risk
The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.
The Company's commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company enters into various transactions using derivatives and uses Over the Counter (OTC) as well as Exchange Traded Futures, Options and Swap contracts to hedge its commodity and freight exposure.
32. The figures of previous year have been regrouped and rearranged wherever necessary.
As per our report of even date For Kirtane & Pandit LLP Chartered Accountants FRN: 105215W/W100057
sd/- sd/- sd/- Milind Bhave Rajendra V. Gogri Rashesh C. Gogri DIN: 00061003 DIN: 00066291
sd/- sd/- Chetan Gandhi Raj Sarraf Place: Mumbai Chief Financial Officer Company Secretary Date: May 18, 2021 ICAI M.No. 111481 ICSI M.No. A15526
For and on behalf of the Board
Partner Chairman and Vice Chairman and M.No. 047973 Managing Director Managing Director