Note 17.1: Capital Reserve was partially created in FY 2009-10 tor forfeiture of Share warrants and partially in FY 2011-12 on account of amalgamation of a Company.
Note 17.2: Capital Redemption Reserve is created out of profits on redemption of preference share capital in year 2001-02
Note 17.3: Amount received on issue of shares in excess of the par value has been classified as security premium account.
Note 17.4: General Reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General Reserve is created by transfer of one component of eguity to another and hence not an item of Other Comprehensive Income.
Note 17.5: Retained Earnings are the profits that the Company has earned till date less dividend paid to shareholders
Note 17.6: Other Comprehensive Income includes re-measurement loss/gain on defined benefit plan net of tax that will not
be reclassified to statement of profit and loss and fair value changes on cash flow hedges will be reclassified to statement of profit and loss
Note 18.1: Terms of repayment of Term Loan is Secured by
18.1.1 - Term loan is secured against the mortgage oF Corporate office premises.
18.1.2 - Repayable in 77 monthly installments starting From July 6, 2022 and last installment due in November, 2028.
18.1.3 - Amount oF loan ?1,600 lakhs
18.1.4 - Floating interest rate March 31, 2025: 9.50%, (March 31, 2024: 9.50%)
Note 18.2: Working capital facilities are secured by
18.2.1 - First Pari-passu charge (hypothecation) on stocks, trade receivable and other current assets oF the company.
18.2.2 - Second Pari-passu charge (eguitable mortgage) on land, buildings, Factory premises located at Ranoli and Dhanora and also on plant and machinery and other fixed assets.
18.2.3 - Personal guarantee by the directors given towards the working capital loan.
18.2.4 - The rate oF interest For above working capital Facilities are as Follows:
Working Capital Loan March 31, 2025: 8% to 9.50%, (March 31, 2024: 8% to 9.50%)
18.2.5 - Repayment terms of working capital borrowing are as follows:
a. Export Packing Credit and Buyer's Credit are repayable withing 80 to 90 days oF being drawn
b. OverdraFt Facility and working capital demand loan are repayable on demand
(iii) The fair value hierarchy is based on inputs to valuation technigues that are used to measure fair value that are either observable or unobservable and consist of the Following three levels:
Note: 32.2 Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values oF the financial instruments that are measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard. An explanation of each level follows underneath the table.
Level 1: Inputs are Quoted prices (unadjusted) in active markets For identical assets or liabilities
Level 2: Inputs are other than Quoted prices included within Level 1 that are observable For the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived From prices).
Level 3: Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a 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.
(iv) Valuation Methodology
All financial instruments are initially recognised and subseguently re-measured at Fair value as described below:
(a) The Fair value of Forward Foreign Exchange contracts is determined using Forward exchange rates at the balance sheet date.
(b) Commodity derivative contracts are valued using available information in markets and Quotations From exchange.
(c) The Fair value of level 3 instruments is valued using inputs based on information about market participants assumptions and other data that are available.
(d) The Fair value of the remaining financial instruments is determined using discounted cash flow analysis.
(e) AH foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
Note 33: Financial Risk Management Objectives & Policies
The Company's business activities expose it to a variety of financial risks, namely liguidity risk, market risks and credit risk, which
may adversely impact the Fair value of its financial instruments. The Company has the overall responsibility For the establishment and oversight of the Company's risk management Framework. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Risk Management policy of the Company provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Finance department activities are designed to:
- protect the Company's financial results and position From financial risks;
- maintain market risks within acceptable parameters, while optimising returns; and
- protect the Company's financial investments, while maximising returns.
Note 33.1: Liquidity Risk
Liguidity risk is the risk that the Company will encounter difficulty in raising Funds to meet commitments associated with financial
instruments that are settled by delivering cash or another financial asset. Liguidity risk may result From an inability to sell a financial asset Quickly at close to its Fair value.
The Company has an established liguidity risk management Framework For managing its short term, medium term and long term Funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily From mismatches of
the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate Funds in cash and cash equivalents. The Company also has adequate credit Facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.
Note 33.2: Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include borrowings, trade payables and trade receivables.
(i) Interest Risk
Company's borrowing is in the form oF working capital loans which are linked to Marginal Cost oF Funds Based Lending Rate (MCLR) oF the lending banks. Any change in the MCLR can have a positive or negative impact on the companies profit to the extent the benefit or cost is not absorbed in the selling price of the products.
(i) Foreign Currency Sensitivity Analysis
The Company is mainly exposed to the currency : USD, EUR.
The following table details the Company's sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key managerial personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or eguity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or eguity, and the balances below would be negative.
(ii) Commodity Risk
The prices of agricultural commodities are subject to vide fluctuations due to unpredictable factors such as weather, government policies, change in global demand and farmers sowing pattern.
The castor seed crop is shallow in nature and much smaller crop in size, therefore there is an inherent risk associated with the vide fluctuation in castor seed prices, the main raw material of the company.
The company has in place Risk Management Policy which is reviewed from time to time to cap the potential losses arising from such risks. In accordance with the risk management policy, the Company enters into various transactions using future contracts and other over the counter instruments available to hedge its commodity exposure.
Note 33.3: Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
The Company is exposed to credit risk from loans and deposits with banks and others, as well as credit exposure to customers.
(i) Trade Receivables
Credit risks related to receivables resulting from the sale of inventory property is managed by screening the customer profile
and also by sales to high credit rating counterparties therefore, substantially eliminating the Company's credit risk in this respect.
(ii) Other Financial Assets
Credit risk from balances with banks and financial institutions is managed in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparties. Counterparty credit limits are reviewed on periodic basis, and updated the same as and when reguired as per the credit profile of the customer. The limits are set to minimise the concentration of risks and therefore mitigate financial
loss through potential counterparty failure.
The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and two years. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.
(ii) Derivative Instruments
The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations
relating to accounts receivable, accounts payable and future sales order. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such
forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.
(iii) Capital Management
The Company considers that capital includes net debt and equity attributable to the equity holders.
The primary objective oF the Company's capital management is to ensure that it maintains a strong credit rating and healthy credit ratios in order to support its business and maximise shareholders value.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes For managing capital during the years ended March 31, 2025 and March 31, 2024.
The Company monitors capital using a gearing ratio which is total equity divided by Net debt. The Company includes within Net debt, interest bearing loans and borrowings including lease obligations, less cash and cash equivalents,Other Bank Balances.
*The borrowings oF the subsidiary company are primarily secured against the fixed assets oF the subsidiary in case oF term loan and current assets in case oF working capital loans. The company being the holding company has provided corporate guarantee over and above the security provided by the subsidiary.
Note 35.2: Capital Commitment
Estimated amount oF contracts remaining to be executed on capital account amounted to T54.32/- Lakhs, advance paid oF T20.10/- Lakhs (March 31, 2024: T225.58/- Lakhs & advance paid T46.22/- Lakhs).
Note 40: Employee Benefit Obligation Gratuity:
The Company operates a gratuity plan covering Qualifying employees. The benefit payable is the greater oF the amount calculated as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of the five years oF continuous service and once vested is payable to employee on retirement or on termination of employment. The Company makes annual contribution to the gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company's policy for Plan Assets
Management.
(ix) Sensitivity Analysis:
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade ,expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period , while holding all other assumptions constant. The result of
Sensitivity analysis is given below
Personal guarantee by the directors given towards the working capital loan as stated below:
Name of the Directors
Abhay V. Udeshi Hemant V. Udeshi Dr. Subhash V. Udeshi
Note 41.4: Terms and conditions of transactions with related parties
a) The sale and purchase from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash and cash equivalents. For the year ended March 31, 2025 and March 31, 2024 the company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
Note 43: Disclosure as per Regulation 53(F) and 34(3) of SEBI (Listing Obligation and Disclosure Requirements) Regulations
There were no loans and advances in the nature of loans given to subsidiaries, associates and firms or companies in which directors are interested.
Note 44: Disclosure as per Section 186 of the Companies Act, 2013
(i) There were no loans and advances in the nature of loans given to subsidiaries, associates and firms or companies in which directors are interested.
(ii) The guarantees issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder is aiven in the below table:
Note 48: Long Term Derivative Contracts
The Company does not have any long term contracts or derivatives contract, which require provision of any foreseeable losses. Note 49: Segment Reporting
The company has identified Castor Oil based derivative business as its only primary reportable segment in accordance with the requirement of I nd AS 108, 'Operating Segments'. Accordingly, no separate segment information has been provided.
Note 51: Business Combination
Note 51.1: Business Combination of Jayant Finvest Limited with Jayant Agro-Organics Limited
The Board of the Company has approved composite scheme of arrangement under section 230-232 and other applicable provisions of the Companies Act, 2013 amongst Jayant Agro-Organics Limited ("Company" or "Transferee Company") and Jayant Finvest Limited ("Transferor Company").
The aforesaid scheme was sanctioned by Hon'ble National Company Law Tribunal CNCLT1) Mumbai Bench vide dated August 29, 2024 with the Appointed Date April 01, 2021. The Scheme has become effective on September 27, 2024 ('Effective Date') upon filing of there certified copy of the orders passed by NCLT with the relevant Registrar of Companies.
Note 51.2: Accounting Treatment
*The unspent amount at the end of the financial year has been deposited in a separate bank account in compliance with Section 135(5) of the Companies Act, 2013. Further, During the previous year (FY 2023-24), the Company had an unspent CSR amount of ?42.65 lakhs related to an ongoing project, which was transferred to the Unspent CSR Account in accordance with Section 135(5) of the Companies Act, 2013. During the current year, ?20 lakhs has been spent on the said project. The remaining ?22.65 lakhs will be utilized in subsequent financial years within the permitted timeframe of the CSR rules.
Note 46: Subscription to Share Warrant
During the year 2014-15, pursuant to Joint Venture Agreement, the company has subscribed to 36,000,000 share warrants
of ?5 each issued by Vithal Castor Polyols Private Limited a joint venture of the company. These warrants entitles company to subscribe 36,000,000 equity shares of ?5 each fully paid upon payment at any time within 20 years from the date of issue of
warrants made by the said joint venture enterprise.
The Transferee Company has accounted the Scheme in accordance with "Pooling of Interest Method" as laid down in Appendix C of Ind-AS 103 Business Combination of entities under common control, notified under section 133 of the Act with the
Companies (Indian Accounting Standards) Rules, 2015, as specified in the scheme, such that:
(a) All assets and liabilities of the Transferee Company are recorded in the standalone financial statement of the Transferee Company at their respective carrying values as on April 01, 2021.
(b) The identity of the reserves had been preserved and recorded in the Standalone Financial Statements of the Transferer Company in the same form and at carrying value as appearing in the financial statements of the Transferor Company.
(c) The inter-company balances between Transferee Company and Transferor Company, if any, appearing in the standalone financial statement of the Transferee Company stood cancelled.
(d) The value of investments held by the transferor Company in the Transferee Company stood cancelled.
(e) The deficit arising after taking the effect of clauses (a) to (d) has been adjusted in Capital Reserve in the standalone financial statements of the Transferee Company and has been presented separately
(f) The Company has restated the financial information as if business combination has occurred from the beginning of the preceding period in accordance with Appendix C Ind-AS 103- Business Combination to entities under Common Control
Note 51.3: Consequent to the Scheme becoming effective as on September 27, 2024, the Company has given effect of the below:
Pursuant to the scheme of arrangement, the shareholders of the Transferor Company, holding 10,00,450 fully paid-up equity
shares of ?10 each, have been allotted 1,81,64,000 fully paid-up equity shares of ?5 each in the Transferee Company, in proportion to their respective shareholding in the Transferor Company. There is no change in the ultimate shareholding, as the shares held by the Transferor Company in the Transferee Company have been allotted to the shareholders of the Transferor Company in the same proportion as their existing holding.
b Title deeds of all Immovable Properties are in the name of the Company.
c The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rule:
made thereunder.
d The Company has been sanctioned working capital limits from banks / financial institutions, on the basis of security against current assets. The Company submits monthly stock and debtors statements and Quarterly Information Statements. The differences, if any, between the books of accounts and the submitted statements are not material, averaging less than 1% of the reported amount of stock and debtors. These variations primarily arise due to valuation adjustments, provisions, and other reconciliations.
e The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender or government or any government authority in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
f The Company has not entered into any transactions with entities that have been struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
g The Company does not have any charges or satisfaction which are yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.
h The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
i The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
j The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
k Compliance with approved Scheme(s) of Arrangements:
The Company has not undergone any Scheme of Arrangements under Sections 230 to 237 of the Companies Act, 2013. l Utilisation of borrowed funds
(i) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities(intermediaries),with the understanding that the intermediary shall directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries), or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate beneficiaries), or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
m Information with regard to other matters specified in Schedule III to the Act is either Nil or not applicable to the
Company for the year.
Note 53: Approval of Financial Statements
The financial statements are approved for issue by the Audit Committee and the Board of Directors at their respective meetings conducted on May 24, 2025.
Note 54: Previous Year Figures
Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year's
classification.
Reason For variance more than 25%
Variance in Debt-Equity Ratio was due to increase un total debt
Variance in Return on Equity Ratio was due to increase in net profit after tax
Variance in Return on Capital Employed was due to increase in earning before interest and tax
Variance in Return on Investments was due to increase in net profit after tax
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