Fine Ar 2022 C2C

Annual Report
2021-22
Growth and
Sustainability
Fine Organic Industries Limited

In Memory of our dear
Kamat Saheb
20th October 1944 to 17th June 2022
Former Chairman
A Visionary. A Humanitarian. A Legend.

His life was a rich tapestry of business acumen, arts, culture and philanthropy.
A beacon of inspiration.
We live by his values.

Across the pages
For more investor related information please visit
https://www.fineorganics.com/investor-relations
01
Or Simply Scan to view online version of the report
Corporate Overview
Growth and Sustainability 02
Company Introduction 04
CMD’s Message 06
Operating Environment 08
Business Model 12
Financial Capital 14
Manufacturing Capital 16
Certifications 18
Intellectual Capital 20
Human Capital 24
Social and Relationship Capital 26
Investor Information Natural Capital 32
Market Capitalisation ` 12,281 Crores Meet the Board 34
CIN L24119MH2002PLC136003 Corporate Information 36
BSE Code 541557
02
NSE Code FINEORG
Bloomberg Code FINEORG:IN
AGM Date : August 23, 2022
AGM Mode : Video Conferencing
Statutory Reports
Management Discussions and Analysis 37
Board’s Report 47
Corporate Governance Report 65
Business Responsibility Report 89
03
Disclaimer : This document contains statements about expected
future events and financials of Fine organic Industries Limited,
which are forward-looking. By their nature, forward-looking state-
ments require the Company to make assumptions and are subject
to inherent risks and uncertainties. There is a significant risk that
the assumptions, predictions, and other forward-looking statements
may not prove to be accurate. Readers are cautioned not to place
undue reliance on forward-looking statements as several factors Financial Statements
could cause assumptions, actual future results and events to differ
materially from those expressed in the forward-looking statements. Form AOC - 1 100
Accordingly, this document is subject to the disclaimer and qualified
in its entirety by the assumptions, qualifications and risk factors Standalone 101
referred to in the Management Discussion and Analysis section of
Consolidated 166
this Annual Report.
Annual Report 2021-22
Corporate Overview
Humankind is becoming more

aware of the necessity of
environmental preservation, and
as a result, people are shifting
their consumption habits to
include more environmentally About the Report
friendly products. Oleochemicals The content of this Report has been defined considering the most
significant indicators of our activities, the impact of and commitment to
are gaining a significant the Company’s interest groups, the efforts in enhancing sustainability
importance in today’s ever- and the level of detail established by the International Integrated
Reporting Council (IIRC).
changing world. To meet This Report complies with BSE & NSE regulations and includes the
the customers’ demands,
Growth
eligibility disclosure requirements. The structure and content of this first
Integrated Annual Report are based on the framework Guidelines of
manufacturers are shifting to Value Reporting Foundation (IIRC).
oleochemicals, as renewable The standalone and consolidated financial statements have been
prepared in accordance with and comply with Indian Accounting
and sustainable alternative in the Standards.
chemical sourcing business. Our interest groups are the Fine Organics’ employees, suppliers,
customers, shareholders, partners, local Governments and the
Since the business’ inception, we have been enjoying
communities in which we are active.
a ‘fine’ advantage of being the first-movers in the
oleochemicals space. Our ‘fine’ solutions act as a
‘technical pinch of salt’, but add a significant value to
the end product. Our ‘fine’ approach to manufacturing
practices and ability to deliver as per the customer
needs drives growth and sustainability for the
organisation.
2 3
Corporate Overview
FINE ORGANICS
IS WELL PROMINENT
AND REPUTED Vision
Our legacy
INTERNATIONAL With over 50 years of operations,
To become a preferred supplier of
Oleochemicals derived green additives globally
PLAYER OF GREEN Fine Organic Industries Limited
(‘Fine Organics’ or ‘We’) has
PERFORMANCE developed a unique range of
specialty additives for a wide range
ADDITIVES ROOTED of applications across various
Mission
industries. It is also among the top
IN INDIA few players globally in the
Oleochemicals-based Green • To use our expertise in Oleochemistry and
Additives. build a compelling portfolio of specialty green
additives and ingredients for various end use
applications
• To expand a state-of-the-art infrastructure for

research and manufacturing
Our niche
Our capabilities • To develop a lean, empowered team that is
The Company has developed aligned with the organisation’s core values
Our state-of-the-art manufacturing
over 450 specialty additives
facilities, located at Ambernath,
from vegetable oils, that find
Badlapur, Dombivli and Patalganga,
its application across foods,
allow us to deliver to our customers
plastics, cosmetics, coatings
across over 75 countries. This is
and other key applications in Values
aptly supported by our team of more
several industries.
than 20 scientists and technologists
at our dedicated R&D centres, Integrity
backed by our in-house developed To display trust, responsibility and accountability in
proprietary technology. building lasting relationships with customers and
stakeholders
Execution Excellence
To demonstrate pride, passion and professionalism
450+ 180+ 800+ Customer First
Products Distributors Direct Customers To anticipate and fulfil customer needs
Entrepreneurial Thinking
750+ 75+ 5,000+ To convert unconventional ideas into action with

positive impact
Employee Strength Countries Global Presence End-Users
4 5
Corporate Overview
CMD’s Message Dear Shareholders,

The year 2021-22, marks the start of our transition towards
day-after-day. We consider our employees to be our most
valuable assets. Thus, we ensured their safety and a secure
business environment at workplace at all times, despite
Integrated Reporting journey. It expresses our commitment to
challenges. Apart from fostering a confidence of job security,
both financial and non-financial indicators aligned to the IIRC
we have also extended our assistance in providing health and
reporting guidelines. Our approach puts the value and impact
insurance benefits and several other facilities. We understand
we create, as a company, in a broader perspective – beyond
our duty towards these key parameters, which encompasses
reporting, beyond financials, beyond tomorrow.
all the tenets of our business and makes us the employer they
can rely on.
2021-22 Performance
The reporting year continued to throw up challenges in Commitment Towards ESG
Our unique the form of successive waves of Covid-19 as well as cost
inflationary challenges. Despite the turbulent environment, we
Environmental, Social and Governance (ESG) practices
are integrated into our value system and the way in which
offerings for our achieved strong sales and improved profitability. We recorded
we operate. The pandemic has highlighted the value of
highest YoY revenue growth of 66%, while PAT and EBIDTA
companies integrating effective ESG practices into their
customers across witnessed 82% and 118% growth, respectively. We progressed
businesses to ensure longer-term sustainability and we
as per our strategic goals to make Fine Organics a stronger,
welcome the increasing use of ESG metrics by investors in
the globe, backed more agile, and higher value-creating organisation. We
their Company analysis.
continued to leverage our global presence by responding to
by prudent R&D the ever-evolving customer demands and kept our capacities We believe in striking a balance between environmental
engaged round the year. We are further intending to expand sustainability and socio-economic progress. As such, we
capabilities, has set a our presence in Gujarat, also focusing on expansion of existing have established an ambitious sustainability strategy, with
facilities for new and present product lines with process targets and action plans to accelerate our sustainability
perfect platform to improvements and technology upgrades. performance. Our CSR efforts strive to support communities by
enhancing their economic and social well-being. Besides, our
deliver sustainable Growth & Sustainability governance practices continue to be reviewed and enhanced
on a regular basis. We are convinced that our endeavours in
At Fine Organics, we have unlocked an exciting phase of
long-term growth growth. The world over, companies are aiming to drive higher
this areas will continue to create significant value for all our
stakeholders.
and create value for levels of sustainability. Increasing consumer awareness for
environment and climate change, has led to an increasing
Forward Agenda
our stakeholders preference for ‘Green’ and ‘Sustainable’ products. As such,
Moving forward, we are determined to continue achieving
the demand for oleochemicals-derived additives is increasing.
and the environment. Our strong R&D and innovation capabilities has allowed us to new milestones by leveraging opportunities to further grow
and improve our business. Our strategic priority to build a
deliver fine solutions to our customers. For instance, our FINE
green additives have been effectively replacing potentially sustainable organisational eco-system continues to motivate
hazardous chemicals in wide range of industries such as us to further enhance our capabilities, empower newer
plastics, packaging, foods, cosmetics, rubbers and coatings growth avenues and focus on ensuring better service to our
among others, without compromising on the performance. customers.
Besides, our FINE additives are majorly bio-based, safe
to use and bio-degradable, offering the most effective Closing Note
benefits through ‘Sustainability’ combined with excellence in I would like to congratulate our team who kept relentless
functionality and safety. Minimised waste generation, effluent faith on us and have gone a long way in helping us create
management through effective production process, usage of a value-creating organisation. I am also grateful to all of our
natural gas and stringent compliance to regulations continues stakeholders, including customers, shareholders, partners,
to be our focus areas of sustainability. governments and regulators and community at large, who
have helped us grow and excel. We look into the future with
Commitment to the People optimism and are well on our way to deliver strong free
The uncertainty and demanding conditions that came with the cash-flow and returns for our shareholders.
pandemic throughout the year was enormous, but our team
was more experienced in dealing with it and could better read Best wishes,
into the situation. We are grateful to them for their commitment Mukesh Shah
to our Company and the extraordinary dedication they show Chairman and Managing Director
6 7
Corporate Overview
Operating
Environment Industry-driving forces
Growing consumer base Sustainability is of high concern
Rising world’s population is a major As the climate crisis looms and

factor propelling growth in the industry. social inequalities rise, consumers
With consistent product innovations are becoming more responsible and
in the industry, we strive to meet the engaged. They support businesses
growing demands by developing new they believe act responsibly and
and better additives. address these societal challenges.
They are looking for products that are
produced in a way that does not cause
harm to the environment.
Industry Key Additives & End-Use Growth Drivers

Ingredients Applications
Food Additives
Emulsifiers Bakery, confectionary, Increasing consumption

Anti-fungal agents biscuits, oils & fats, of convenience foods and
dairy products and ice premium products
Improvers for bakery
creams, beverages Growing number of end-
products
etc. use applications due to
Oil blinder
multifunctional attributes of
Anti-crystallisers emulsifiers
Rise in health awareness
& quality consciousness of
consumers
At Fine Organics, our value-creation strategy exists in an environment

influenced by internal and external factors. Our understanding of these
mega-trends and associated risks, helps us find new opportunities and
shape our business model. We have identified four key mega-trends
over the next five years that will continue to bring new opportunities to
our business:
8 9
Corporate Overview
Industry Key Additives & End-Use Growth Drivers Industry Key Additives & End-Use Growth Drivers
Ingredients Applications Ingredients Applications
POLYMER ADDITIVES COSPHA ADDITIVES
Lubricants Packaging films Replacement of conventional Emulsifiers & Emollients Creams, Lotions & Expanding growth of organised
Anti-fogging additives Bottle caps materials by plastic in several Green Surfactants Ointments retail in Tier II and Tier III cities
applications Skin care, Hair New sub-segments to grow:
Anti-static additives Wires & Cable
Increasing preference for non- care, Cleansers and Men’s Cosmetics
Anti-scratch Packaging
toxic green polymer additives Cosmetics Growing demand for skincare
Processing aids Furniture
Development of new high- Home care products cosmetics
Flow improvers Automobiles performance polymer additives
Slip additives Pipes & Fittings Increasing urbanization and
Dispersants rising purchasing power among
consumers

Feed Nutrition ADDITIVES

Antibiotics replacer Poultry feeds Growing health & safety
Nutritional additives Cattle feeds awareness
Additives for Coatings Anti-fungal additives Increased demand for safer

milk and milk products
Dispersing agents Specialty Papers Increasing usage in automotive

Emulsifiers Printing Inks and industrial protective
coatings
Wetting & Dispersing Coating materials
Agents Growing e-commerce business
Paints
Defoamers Increased awareness and
penetration of paint protection
Anti-Mar additives
coatings Industry Key Additives & End-Use Growth Drivers
Slip additives Ingredients Applications
Growth in niche products: nano
& green coating packaging
products Specialties
Increased use of Specialty
papers (receipt) as a result Lube additives Automotive Lubricants Increase in Govt. expenditure
of increased cashless Property modifiers Roads & Highways on infra projects
transactions & air travel Anti-corrosive additives Other specialty Increased use of high-power
applications cars/trucks, requiring special
friction control properties and
preserve flow properties at
high temperatures
Higher industrial fluid demands
due to increased rate of
industrialisation/automation
10 11
Corporate Overview
Business Model
financial capital Intellectual Capital Social Capital
We are committed to delivering We invest in research and consumer Ensuring sustainability and managing
value for all our stakeholders, marketing for deep insight into the our reputation are the key elements
including employees, shareholders, changing needs of the consumers. of our business model. Under an
governments and the communities in We use our R&D capabilities and integrated approach to sustainability,
which we operate. proprietary technologies to deliver we are committed to adding value
innovations that supports the equity to our community, business, labour
of our brand. and government stakeholders in our
operating territories.
Supply Chain Sales and Marketing
People capabilities
and capacity Efficient Logistics Customer Insights
Profitable and sustainable
Optimal Procurement Green Products growth through newer
Key Enablers SUSTAINABILITY
products and geographic
Quality Assurance Innovation expansion
COST LEADERSHIP
Manufacturing Capital Human Capital Natural Capital
Our manufacturing facilities are We invest in wellbeing, skills and We use natural resources and
spread across 7 sites in Maharashtra capabilities of our employees. commodities in manufacturing
with proximity to ports allowing us to We strive for a customer-focused products. Our procurement
cater to consumer needs efficiently and high-performance culture, strategies focus on the long-term
globally. underpinned by our core values. sustainability and environmental
impact of our process.
12 13
Corporate Overview
Financial Capital pat margin

(%)
16.2
Revenue Distribution
(%)
Driving growth and sustainability
13.5
through robust financial performance 11.8
12.4
10.3
45
55
Sound financial performance is one of the important ingredients for a sustainable

growth. Thus, we ensure optimum utilisation of funds in our business activities
while also monitoring the value we generate. 2017-18 2018-19 2019-20 2020-21 2021-22 Domestic Exports
Return on Net Worth Debt : Equity

21% 21% (%)
26.4 26.2
(X)
(0.23)*
Revenue from operations CAGR EBITDA CAGR 24.8 25.4
(` in lakhs) 1,85,843 (` in lakhs) 34,852

(0.16)*
15.6 (0.13)*
0.11
23,608
1,12,129 22,225
1,04,397 1,02,622 19,207
85,628 16,398 0.05
2017-18 2018-19 2019-20 2020-21 2021-22 2017-18 2018-19 2019-20 2020-21 2021-22
2017-18 2018-19 2019-20 2020-21 2021-22 2017-18 2018-19 2019-20 2020-21 2021-22
RoCE Fixed Asset Turnover
(%) (X) 9.4
32.2
31.2 30.3
26.7 7.8
7.1
EBITDA Margin PAT

25% 17.6 4.9
CAGR 4.1
3.7
3.3 3.3
(%) 23
(` in lakhs) 25,067
2.2 2.3
21.3
19.2 18.8
17.1
Net Gross Net Gross Net Gross Net Gross Net Gross
16,650 Basis Basis Basis Basis Basis Basis Basis Basis Basis Basis
2017-18 2018-19 2019-20 2020-21 2021-22 2017-18 2018-19 2019-20 2020-21 2021-22
12,901
11,493
10,134 EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortisation Less Other income
RoCE = Return on Capital Employed
PAT = Profit after Tax
Return on net worth = Net profit after taxes / share holders’ equity
Debt Equity = Net Cash and cash equivalent / shareholders’ equity
Return on Capital Employed = Operating EBIT/ (Shareholders equity + total short term and long-term debt)
2017-18 2018-19 2019-20 2020-21 2021-22 2017-18 2018-19 2019-20 2020-21 2021-22 Fixed Asset Turnover (Gross) = Revenue from operations / Gross amount of Fixed Assets including Intangible assets and cost of land
Fixed Asset Turnover (Net) = Revenue from operations / Net amount of Fixed Assets including Intangible assets and cost of land
*Net cash position
14 15
Corporate Overview
Manufacturing Capital
Driving growth and sustainability through
efficient manufacturing setup We understand the importance of balancing our Our automated processes right from raw material to product
manufacturing footprint with our environment responsibility. packaging allows us to efficiently deliver high-quality
Green technology and sustainable manufacturing are in our products in a cost effective and timely manner. It further
DNA since inception. Our in-house process design system allows us to retain product consistency, leading to higher
uses latest technologies and engineering to automated customer satisfaction.
processes. Our development teams design specially to
suit our processes to manufacture and deliver world-class Our conscious efforts towards developing products based
products to customers globally. on current & futuristic market trends allow us to stay ahead
of the curve. At the same time, we also look for better
Our manufacturing facilities are strategically located around opportunities and explore new geographies to widen and
Jawaharlal Nehru Port Trust (JNPT) port that helps us deliver strengthen our reach.
projects on time. Regardless of locations, these facilities
adhere to high standards of safety and compliance with
strong controls on quality. Our facilities are audited regularly
by internal as well as external teams.
Outcomes
Economies Consistent High-level of

of scale quality customer loyalty
and satisfaction
Manufacturing Capital forms a vital part of value-creation.

It includes investments in setting up state-of-the-art facilities
as well AS in improving efficiencies across production and
operations for optimiSed outcomes. As a result, we have been
adding value to the customers by delivering best-in-class
products and meeting global demand of additives.
16 17
Corporate Overview
Certifications Our disciplined culture prioritises Waste

Prevention over Treatment and Pollution
Monitoring & Control
Our Existing Plants
In-house design systems
Zero-Liquid Discharge Fully Automated

Manufacturing Sites. Production Facilities.
Plant Locations
Dombivli | Badlapur | Ambernath | Patalganga
Way Forward
Improve capability and ensuring Implement state-of-the-art
optimum utilisation of capacities technologies
Explore further expansion Increase initiatives towards adopting

and driving green practices
Manufacture advanced sustainable
products
18 19
Corporate Overview
Intellectual Capital
Driving growth and sustainability through
strong R&D and innovation We develop a range of ingredients and additives that cater Expertise in the field of Oleochemistry and innovation-based
to your needs by enhancing the performance of end- development outlook helps us offer additive solutions that
applications. To make it perform better, our pilot plants are are flexible in terms of material choice. Thus, enabling us a
equipped with ultra-modern distillation and reaction facilities. strategic way forward to maximise the benefits of geography,
These facilities are led by a dedicated team of highly capacity as well as versatile handling of various natural raw
qualified scientists. This combination allows us develop materials to offer adaptable, sustainable and suitable additive
chemicals for various applications with ease. solutions for formulations.
20+
Scientists and technologists
12
Design Principles of Green
2
Pilot plants
Chemistry Practised (Dombivli and Mahape)
Natural and Renewable

Feedstocks
Based products
Our consistent investments towards strengthening our R&D capabilities,

forms the core of our intellectual capital. It drives innovation in the
areas of product development as well as process improvements. Our in-
house manufacturing facilities with indigenously developed proprietary
technology has allowed us to innovate and formulate newer additives for
diverse applications.
20 21
Corporate Overview
Our New Products .... Sustainable by Design

Fine Process Philosophy Fine Engineering Principles
Green Surfactants
Natural and Renewable Feedstocks Maximum Atom Economy
Safer Reaction Routes Minimal Steps The majority of commercially Green Surfactants are environment-friendly
Designed for Safe Degradation Improved Reaction Kinetics available surfactants are made surfactants made from bio-based raw
from petrochemicals. But in order materials and employing green chemistry.
Eliminate Hazards Enhanced Energy Efficiency
to reduce the usage of goods that The green surfactants produced by us
are hazardous to human health are based on similar principles employing
and the environment, researchers oleochemicals derived from plant sources.
are looking for surfactants that are
As a result, our green surfactants are safer to
made from natural and renewable
use, with a lower risk of skin and eye irritation.
resources that are environmentally
Our green surfactants range is developed
Fine Operations Culture Outcome benign and biodegradable.
to accomplish outstanding emulsification,
foaming, and cleansing as well as a broad
Near-Zero Solvent Usage Consistent new product spectrum of antimicrobial qualities, and thus,
developments – from 2 products in have a wide range of applications in the
Enhanced Operational Safety
1971 to over 450 products in 2022 personal care and homecare industries.
Waste Prevention Over Treatment
Effective and efficient technical
Pollution Monitoring and Control support to customers
Minimised capital expenditures &

quicker commissioning
Sustainable ADDITIVES for BIOPOLYMERS
Potential susceptibilities of the Our additives can help a lot by providing

basic biopolymer to moisture better melt-flow characteristics, process
and temperature could be a enhancement and effective end-properties
difficulty in achieving biopolymer’s including slip & anti-blocking capabilities,
maximum benefits in the end-use scratch resistance, effective mould release
and application. and so on. As a result, our additives help
the environment by encouraging the use of
biopolymers by providing processing benefits
Way Forward and superior functions.
New product developments
Improving process technology
Exploring newer application areas
22 23
Corporate Overview
Human Capital Key initiatives

Attracting and Retaining Talent at various locations, including offices and factories, that are
Driving growth and sustainability, through focused on the duties and responsibilities of employees in
We are committed towards investing in right people and talent
competent and capable working team and helping them to grow along with the organisation, through various grades and departments, such as:
continuous learning and development and opportunities for • Prevention of sexual harassment at workplace training
growth. We have tie-ups with the right recruitment consultants • Quality Management System training
in the industry for selecting the right candidate, also right
• Business ethics training
trainings are given employees so that they can perform their
duties diligently and efficiently. • Fire-fighting training/First-aid
Employee Benefits/Work Culture • System compliance (QMS, FSSC, GMP, HALAL, RSPO,
SEDEX)
In purview of the health concern, we have policies for every
employee in the organisation, support programmes and • Covid-19 Preventive and control measures
mechanism to ensure employee safety and well-being. The To prevent workplace accidents and injuries, we promote a
Company makes contributions towards provident fund and zero-incident philosophy. A major value is the safety of our
other retirement benefits to a defined contribution retirement employees, contractors, customers and visitors. Our ongoing
benefit plan for qualifying employees. We also follow the policy focus on safety has allowed us to steadily lower the hazards
of maternity leave for our women employees. We are an equal associated with our operation.
opportunity employer providing equal remuneration for women Governance and Code of Conduct
and men. Besides, we also promote free speech culture that
Our Code of Conduct applies to all workers with the goal of
encourages employees to contribute their ideas in order to
ensuring that the Company, and our operations & people
help the Company grow.
act ethically and transparently at all times. The intent of this
Learning and Development code of conduct has always been guiding and regulating
Learning and Development is an integral part of our people administration of our employees. We also strive to engrave
strategy. We give training to our employees and make them the Company’s core values while understanding the best-in-
understand the usage of technology which further helps class practices and establishing centres of excellence at Fine
them to ideate and develop additives using latest technology. Organics.
Numerous on-the-job training programmes at the unit-level are Diversity and Inclusion
also provided to the employees. We have structured several
Diversity and inclusion are a cultural tradition to ensure
annual training plans based on the identified needs of the
equitable opportunity for all employees. Fine Organics
personnel. Along with safety training, we organise other broad
has always been mindful of and supportive of employee
variety of skill-building, interpersonal skill-oriented training. We
diversity. Age, cultural background, physical abilities and
have successfully imparted various on-the-job trainings to the
disabilities, colour, religion, gender and sexual orientation are
employees as per the TNI, Skill development training.
all considered in our workforce allocation. Our employees’
We also conduct various programmes in the organisation qualifications, competency, knowledge, abilities, attitude and
such as team building, communication and presentation skills, experience are everything to us.
5S and Quality Management System (QMS) to enhance the
Human Rights
proficiency and expertise of our team. All these actions give us
We abide by all laws that represent human rights concepts
competitive edge and exemplifies our core values and nurture
such as non-discrimination, child labour prevention, sexual
innovation, creativity and diversity.
harassment prevention and equal employment chances,
Ensuring Health, Safety and Well-being
among others. Every employee, as well as third parties with
Employee health and safety is of prime importance to Fine whom the Company does business, is treated with dignity and
Our workforce is a key foundation of our business success. Our Organics. Along with safety and security training, the Company respect to individual rights.
investments in human capital enables us attract and recruit talents, offers a variety of training programmes for our employees
ALLOWING us to gain competitive advantage. Their skillsets and dedication

drive the organisational growth and allows the Company to respond to the
fast-changing market and needs of our customers.
We prioritise employee engagement and talent development to enable every employee to reach their full potential and grow in
750+ 15% 12% 13%
Employee Strength Women Employees Employees completed 25 Comprise 1st & 2nd
tandem with the organisation. We cherish the unique perspectives offered by employees from various backgrounds and provide our years of journey with us generation of employees
people a supportive and safe working environment, while promoting inclusion and diversity at our workplace.
24 25
Corporate Overview
Social and We identify and prioritise our key stakeholders based on their
ability to impact our business and influence decision-making,
At Fine Organics, the Management supports and engages
in healthy interaction with both our global and local
Relationship Capital considering the material impact of our business on/in the
society we operate. In this direction, we discuss critical areas
of concern and modify our priorities (if required), to manage
stakeholders, to analyse their diverse requirements. Thereon,
we review and monitor our initiatives and its relevance/
impact, for developing further sustainable solutions while
DRIVING GROWTH AND SUSTAINABILITY BY STRENGTHENING our impacts. overcoming challenges from the industry, society and
RELATIONSHIPS WITH KEY STAKEHOLDERS, PROPELLING THE environment.
COMPANY’S PROGRESS Stakeholder Engagement
Stakeholders Engagement Modes Values delivered
Customers
We strive to ensure strong customer Customer sustainability requests Consumer wellbeing and satisfaction
engagement & relationship for Audits Product quality & servicing
understanding them better, while Customer and industry conferences
providing reliable solutions, further and events
improving our offerings in line with the Key account manager relationships
anticipated market trends. – ongoing dialogue
Leveraging digital capabilities for
better consumer understanding
Suppliers
We conduct our business with reliable Assessment Timely availability of raw materials
and genuine suppliers toward mutual Collaborations to improve Reliable sourcing
value-creation. We nurture innovation, performance Quality assurance
technological upgradation and Supplier events focusing on
ethical conduct while doing business capacity building and issue
with our suppliers, for achieving the resolutions
needed end-results. A free flow of
communication further allows us to
bring improvement from time-to-time,
bridging gaps that would hinder our
business conduct with the suppliers.
Employees
We encourage and initiate honest Employee engagement surveys Fostering diversity & inclusion
communication with our employees for Annual performance dialogue Employee health & safety
increased productivity and to efficiently Talent management processes Identifying individual goals and
resolve areas of conflict. We nurture Learning and development providing upskilling/developmental
unity and inclusivity in our team to bring opportunities training
in a collective sense of fulfilment when
At Fine Organics, we have taken a holistic approach in building lasting Honest communication
achieving business goals.
legacies with our key stakeholders. We firmly believe that effective Human rights
Enhanced management and problem-
stakeholder engagement management has a direct bearing on our ability to
solving ability
deliver on our strategy. Improved job security
Our commitment towards collaborative stakeholder engagement improves our understanding of their expectations and allows us to Reward and recognition
make informed decision-making. Our stakeholder engagement process is integrated and inclusive and aims to balance the needs,
interests and expectations of stakeholders with those of the Company.
26 27
Corporate Overview
Stakeholders Engagement Modes Values-delivered Contributing consistently towards Society

At Fine Organics, we consider Corporate Social Responsibility (CSR) as an integral part of our business that
Investors & SHAREHOLDERS
emphasises on community development. In this direction, we are leveraging our scale and expertise to
We ensure transparency and active Annual General Meeting Return on investments bring about a positive change. Thus, the Company engages with associations for conducting programmes
dialogue with our investors and Long-term sustainability of business that focusses on education, health and women empowerment. Through these endeavors, we foster
Quarterly investors/analysts
shareholders. Our professional and
meetings Comprehensive and transparent holistic and inclusive growth for our community, delivering upon our commitments as a socially responsible
ethical relationship with investors,
reporting organisation.
banks and credit rating agencies Conferences with investors
enables us to attain timely support and Effective risk management, and
Investor presentation, annual report ethical conduct and corporate
funding for tapping better investment
opportunities. governance
Regular dividends
Good corporate citizenship Education Initiative
Communities Education is the fundamental right of every human being, element for bridging the socio-economic gaps that
and we believe in making it accessible to each and pushes us behind. We support education initiatives and
We find ways to give back to the Community development Conserving biodiversity
every person regardless of any sort for discrimination. aid in operating of school through our NGO partners, to
community we operate with and programme surveys
Climate awareness We recognise that education is an important step in disseminate education among the underserved sections for
within. Facilitating open dialogue,
Regular CSR initiatives nation building and towards an empowered future. At our society.
good relations, and sense of Local community development
Local partners (NGOs or Fine Organics, we consider education to be an important
collective benefit, enable us to serve Education for the underprivileged
the society at large. We take care cooperatives) appointed by Fine
students
of the environment as well as the Organics
underserved section, in proximity to our
facilities. We initiate projects aimed at
the well-being of the local communities,
protecting local ecosystems and
supporting livelihoods. Our focus is on
providing equal opportunity in the field
of education and healthcare facilities
for the needy ones.
Government/Regulators
We engage with local authorities to Meetings, reports Contribution to economy through

determine and prioritise the policy Networking in different forums payment of duties and taxes.
and strategic issues at place. Our organised by regulatory authorities Local community development
planning assists us in framing strategy,
which results in ensuring compliance, Regular visits and applications Timely compliance with rules and
interpretation of regulations and regulation
Mandatory regulatory filing
uninterrupted operations
Improved internal systems and
activities to meet requirements of
regulatory changes
28 29
Corporate Overview
health initiative Women Empowerment
At Fine Organics, we implement healthcare initiatives for initiatives provide medical support to the communities We focus on improving the lives of women & children we help in providing and building better opportunities to
improving life and provide adequate measures for better lacking in resources to ensure a healthy livelihood. Thus, in local communities through education, economic women belonging to economically weaker sections of the
health among the needy and underserved sections. we support them in attaining sound health and safety of the empowerment and social amenities. Thereby, raising the society. Therefore, helping them to become self-reliant and
Ensuring good health is also an important step for the people. standard of living among women & children. Additionally, enjoy a dignified, sustainable and quality life.
establishment of overall prosperity. Our overall healthcare
30 31
Corporate Overview
natural Capital Reduction in Carbon Footprint/ the desired performance at optimum consumption of energy.
Promoting Low-Carbon Economy We have installed LED lighting throughout plant area, admin
area and streets to conserve energy.
Driving growth and sustainability by being We focus on reducing carbon footprint and environment
We have greenfield projects that can meet Leadership
environmentally responsive conservation through the following initiatives:
in Energy and Environmental Design (LEED) certification
o Installed solar lights and sky pipes to replace electric requirements, allowing us to save resources while
lamps also assisting us in achieving long-term growth in the
Manufacturing industry.
o Installed LED lighting in the facility, administrative area and
streets to save electricity
o Shifted from using furnace oil to natural gas to reduce CO2

emissions and eliminate SOx levels
Waste Management
o Increased tree plantation within and around our
production locations, with strong participation from the At Fine Organics, we ensure that the use of plastic packing
plant staff materials is reduced through innovative approaches. Also,
good practises are followed across all facilities to encourage
o Developed and maintained green belt and landscaping
our employees to decrease the use and generation of
around our facilities by renting open space land/areas
plastic waste, which has a direct or indirect impact on the
from MIDC to improve O2 release into the surrounding
environment. Similarly, facility-generated plastic waste is
environment
strategically collected and then disposed of by sending it to
o Encouraged employees to take carpooling facilities and authorised recyclers, for which we receive a certificate from
reduce less use of individual vehicles; our employees the authorised recycler certifying that the plastic waste was
living in Dombivli, Badlapur, and Ambernath have treated appropriately in accordance with Central and State
been provided with daily bus transportation, leading to regulatory compliance requirements.
reduction in usage of gasoline and diesel, further reduces
All of our facilities are Zero Liquid Discharge (ZLD) units,
CO2 emissions and greenhouse gases
which means we don’t emit a single drop of effluent, resulting
in zero-environmental effect.
250+
Trees planted in 2021-22
Water Conservation
Reduction in Energy Consumption Our manufacturing facilities follows best practises such
as ‘R3 - Reduce, Reuse, and Recycle’, which allows us to
Our plants are fully automated and work precisely and save natural resources. Among them, ‘Water Resource’ has
accurately in order to save energy to the greatest extent attracted widespread attention, and we have taken different
possible. In all warehouses, renewable energy such as solar measures to reduce our daily water use, including the use
energy is used in the form of ‘Sky pipes’. They function on of new technology, employee safety, and other measures
the premise of using solar light as an inside lighting source. to prevent water loss in day-to-day activities. Also, we use
Thus, throughout the day, we do not need any electricity scientifically built ETP & STP systems to treat all waste water
to light the LED bulbs in warehouses, resulting in reduced created within our plant, and the treated water is reused
Sustainability is at the core of our business processes and forms our electricity usage and energy conservation. The machineries and recycled within the facility. As a result, water is being
strategic priority. we focus on prudent utilisation of resources to remain are operated at more than 90% efficiency, and energy conserved as a valuable natural resource.
an environmentally conscientious Company that encourages measures in conservation is highly important in such processes. We
the direction of natural conservation. have designed a production process that uses creative 34,500 Cubic M/Annum
approaches to conserve a significant amount of water, fuel
We comply with all applicable rules and assure environment-friendly manufacturing processes, taking appropriate efforts to conserve Water usage
and electricity. We are in the process of procuring suitable
and save energy and natural resources regularly. Our actions contribute to a better world, protecting our natural capital. All of our renewable energy sources like solar farms or any similar
raw materials are vegetable-based and derived from a variety of sustainable plant sources. As a result, we are able to manufacture renewable source. We use VFD for motors and pumps to get
and cater our finished products as ‘Green additives’ in a variety of applications. Our plants are fully automated and work precisely
and accurately in order to save energy to the fullest extent possible.
32 33
Corporate Overview
Meet the Board

Mr. Mukesh Shah, Chairman and Managing Director Mr. Prakash Apte, Independent Director
– Joined in 1973, holds a Bachelor’s degree in Science – On Board since November, 2017, holds a Bachelor’s degree in Mechanical Engineering,
– Played a key role in establishing quality control and global sales & marketing Diploma in Business Management
– Previously served as the Managing Director of Syngenta India
Mr. Jayen Shah, Executive Director and CEO Mr. Mahesh Sarda, Independent Director
– Joined in 1986, holds a Master’s Degree in Science from ICT, Mumbai – On Board since November 2017, holds a Bachelor’s Degree in Commerce and a Degree
in Law
– Played an instrumental role in creating a strong vendor-partner network
– A Chartered Accountant and Company Secretary
– Played a key role in developing and managing channel partners for the organisation’s
products in India – Previously served as a Partner at Deloitte Haskins & Sells LLP
Mr. Tushar Shah, Executive Director & CFO Mr. Thiruvengadam Parthasarathi, Independent Director
– Joined in 1989, led several initiatives like ERP, CRM and Logistics among others – On Board since November 2017, holds a B.Tech Degree in Chemical Engineering from IIT,
Madras and a Post Graduate Diploma in Industrial Engineering and fellow member of the
– Played a key role in the development of the first automated additive manufacturing facility
Institute of Cost Accountants of India
– Previously served as a Senior Director at Deloitte Touche Tohmatsu India Pvt. Ltd.
Mr. Bimal Shah, Executive Director Mr. Kaushik Shah, Independent Director
– Joined in 2009, holds a Bachelor’s Degree in Science from Purdue University and a Master’s – On Board since January 2018, holds a Bachelor’s Degree in Commerce, a Chartered
Degree in Management from Boston College Accountant, Company Secretary and Law Graduate
– Led initiatives for new projects, processes and additional capacities – Previously served as the Managing Director of Fulford (India) Limited
Mr. Nikhil Kamat, Executive Director (w.e.f. June 27, 2022) Ms. Pratima Umarji, Independent Director
– Joined in 1987, holds a Master’s of Science Degree in Biochemistry from ICT, Mumbai – On Board since November 2017; holds a Bachelor’s Degree in Law and Economics
– Played a key role in operations, productions, planning, handling technical, environmental and – Previously held the position of Principal Secretary Law (Legislation) with the Govt of
regulatory tasks Maharashtra for 10 years
– Current panel member of the ‘Lok Adalat’, Bombay High Court
34 35
Corporate Information
Board of Directors Executive committee
Mr. Mukesh Maganlal Shah Chairman and Managing Director Mr. Mukesh Maganlal Shah, Chairman
(Chairman w.e.f. June 27, 2022) Mr. Jayen Ramesh Shah
Mr. Jayen Ramesh Shah Executive Director & Chief Executive Officer Mr. Tushar Ramesh Shah
Mr. Tushar Ramesh Shah Executive Director & Chief Financial Officer Mr. Bimal Mukesh Shah
Mr. Bimal Mukesh Shah Executive Director Mr. Nikhil Dattatraya Kamat
Mr. Nikhil Dattatraya Kamat Executive Director (w.e.f. June 27, 2022)
Mr. Prakash Krishnaji Apte Independent Director Principal Bankers
Mr. Kaushik Dwarkadas Shah Independent Director Union Bank of India
Mr. Mahesh Pansukhlal Sarda Independent Director Citibank, N.A.
Mr. Thiruvengadam Parthasarathi Independent Director
Auditors
Ms. Pratima Madhukar Umarji Independent Director
B Y & Associates,
Board Committees Chartered Accountants.
Audit Committee Company Secretary and

Mr. Mahesh Pansukhlal Sarda, Chairman Compliance Officer
Mr. Prakash Krishnaji Apte Ms. Pooja Bhavesh Lohor
Mr. Kaushik Dwarkadas Shah
Mr. Thiruvengadam Parthasarathi Registered Office
Mr. Jayen Ramesh Shah Fine House, Anandji Street, Off M.G. Road,
Mr. Tushar Ramesh Shah Ghatkopar East, Mumbai 400077,
Maharashtra, India
Nomination & Remuneration Committee CIN: L24119MH2002PLC136003
Mr. Thiruvengadam Parthasarathi, Chairman Tel: +91 (22) 2102 5000
Fax: +91 (22) 2102 8899
Ms. Pratima Madhukar Umarji
Email: investors@fineorganics.com
Mr. Mahesh Pansukhlal Sarda Web: www.fineorganics.com
Mr. Mukesh Maganlal Shah
Registrar & Transfer Agents
Corporate Social Responsibility Committee
KFin Technologies Limited
Mr. Jayen Ramesh Shah, Chairman Selenium, Tower B, Plot 31 & 32,
Mr. Prakash Krishnaji Apte Financial District, Nanakramguda,
Mr. Kaushik Dwarkadas Shah Serilingampally, Hyderabad,
Mr. Mukesh Maganlal Shah Rangareddi – 500032, Telangana
CIN: U72400TG2017PLC117649
Mr. Tushar Ramesh Shah
Toll free number: 1-800-309-4001
Stakeholders’ Relationship Committee Email: einward.ris@kfintech.com
Website: https://ris.kfintech.com
Ms. Pratima Madhukar Umarji, Chairperson
Mr. Prakash Krishnaji Apte Works
Mr. Kaushik Dwarkadas Shah Additional MIDC, Ambernath (E) 421501
Mr. Mukesh Maganlal Shah Khervai MIDC, Badlapur (E) 421503
Mr. Jayen Ramesh Shah Additional MIDC, Ambernath (E) 421506
Mr. Tushar Ramesh Shah Millennium Business Park, MIDC, Mahape,
Navi Mumbai 400710
Risk Management Committee MIDC, Dombivli (E) 421204
Mr. Prakash Krishnaji Apte, Chairman MIDC, Dombivli (E) 421203
MIDC, Chemical Zone, Ambernath (W) 421501
Mr. Thiruvengadam Parthasarathi
Additional Patalganga MIDC Industrial Area,
Mr. Jayen Ramesh Shah
Panvel, Raigad, 410220
Mr. Nikhil Dattatraya Kamat
Ms. Sonali Bhadani, Sr. VP - Finance
36
Statutory Reports
Management Discussion & Analysis
Indian Economy Outlook

The last two years have been difficult for the economies India is expected to be the third-largest consumer economy
worldwide. In India, the economic damage caused by multiple with its consumption anticipated to triple to USD 4 trillion
waves of the COVID-19 pandemic and the resultant lockdowns by 2025 Global macroeconomic events such as the Russia-
slowed down economic growth significantly. However, the Ukraine conflict, rising global commodity and food prices,
economy witnessed a rebound momentum from H1 FY 2020-21, and monetary policy tightening by global central banks will all
owing to increased vaccination rates and reduced mobility have an impact on India’s long - term economic development.
restrictions. In the fiscal year 2021-22 the Gross Domestic Economists predict that India’s GDP would increase between
Product (GDP) grow 8.7%, making India the fastest growing 7% and 8% in 2022-2023, despite the fact that it will remain
major economy. The 2021-2022 GDP was 1.5% higher than the world’s fastest growing major economy.
the pre pandemic level in 2019-2020.
(Source: https://www.business-standard.com/article/
(Source :- The Economic Survey 2022 released on January, 2022) news-ians/india-may-become-3rd-largest-consumer-
economy-by-2025-vice-president-119030800035_1.
(Source: https://economictimes.indiatimes.com/news/
html#:~:text=India%20is%20expected%20to%20be,
economy/indicators/gdp-grows-by-8-7-in-fy22-q4-gdp-
Naidu%20said%20here%20on%20Thursday)
slows-to-4-1/articleshow/91914997.cms)
(Source: https://www.financialexpress.com/economy/gdp-
The pandemic directly impacted several industries, 2022-growth-slows-to-4-1-in-q4-india-to-face-global-heat-
particularly those that required human interaction. As this-year-yet-remain-fastest-growing-economy/2544202/)
public finances were impacted by a cyclical slowdown
in revenues, which was exacerbated by Covid-19, while Private sector investment increased in 2021-22, and India’s
pandemic-induced fiscal measures pushed up expenditure. lowering of borrowing requirements is likely to encourage
private investment, which would help to cushion the country’s
This disruption was further intensified in the fourth quarter
economic development in 2022-2023. With the infusion
with the rising geopolitical tension. The Russia-Ukraine war
of Capex in the economy by the government would with
and economic sanctions imposed, rapidly translated into
the support of Central Bank would support the economy’s
escalated energy costs, supply chain disruptions, and high
recovery. Furthermore, multiple critical factors, including as
inflation. This resulted in a surge in prices of key commodities
extensive vaccine coverage, benefits from strategic supply-
right from oil & gas to wheat, fertilisers and metals among
side reforms, regulatory relaxation, solid export growth, and
others in India.
an increase in capital spending, are aniticipated to boost
Agriculture and related sectors have been the least affected growth in 2022-23.
by the pandemic, and the industry is predicted to increase by
3.9% in 2021-22, up from 3.6% in the previous year (Source: Industry Structure & Developments
Economic Survey 2021-22). Exports of both goods and Specialty Chemicals
services have been robust in 2021-22. However, imports also Specialty Chemicals are typically defined as the chemical
increased substantially, owing to a resurgence in domestic compounds used in formulations of various finished products.
demand and increased international commodity prices. Even These are specially formulated to offer specific functions or
after the disruption caused by the pandemic, India’s balance performance in the end-application, which plays a crucial
of payments remained in surplus in the fiscal year 2022. role in corresponding industry.
This resulted in the Reserve Bank of India’s continuation of
Some of the categories of Specialty Chemicals include
amassing foreign exchange reserves – which reached USD
Automotive, Aerospace, Foods, Colors, Cosmetics ,
600 billion in April 2022, The fiscal stimulus provided to
Construction Chemicals, Flavors, Fragrances, Paints,
the economy increased the budget deficit and Government
Polymers and Textile Auxiliaries among others.
debt in 2020-21. However, a positive recovery in government
revenue would allow the government to comfortably meet its Specialty chemicals are developed and produced after
goals for the year 2021-22. extensive research and development, which differentiates
them from the commodity chemicals. They have limited and
(Source: https://www.moneycontrol.com/news/business/ specially identified suitable applications, unlike commodity
economy/forex-reserves-sizeable-outlook-for-external- chemicals, which have multiple common applications and
sector-resilient-rbi-governor-8452701.html) uses as intermediates etc.
37
Management Discussion & Analysis (Contd.)
Indian Specialty Chemicals Market responded to the pandemic by increasing their production
The Specialty Chemicals market in India is one of the fastest- through more sustainable raw materials and introducing a
growing sectors. It is recognised globally for adherence to more eco-friendly approach.
quality, compliance, availability of raw material and skilled The fast-growing demand for biodiesel as well as the
resources. The Specialty Chemicals segment comprises 22% Fast-Moving Consumer Goods (FMCG) industry, are
of India’s total chemicals and petro-chemical market. The the key determinants driving the market’s expansion.
market is valued at USD 18 billion in 2014 to USD 32 billion Furthermore, the growing adoption of oleochemicals by
in 2019 and is poised to reach worth USD 64 billion by 2025 chemical manufacturers to produce bio-surfactants, bio-
– registering an impressive of CAGR 12.4%. India’s market lubricants and biopolymers as sustainable alternatives to the
share in the global specialty chemicals grew from 3% in 2015 petrochemicals is a major growth driver. The market is driven
to 4% in 2019, further this is anticipated to grow to 5.5% by rising consumer demand for natural items such as organic
by 2025. The growth of the Specialty Chemical segment is soaps, food additives, cosmetics and so on. Additionally,
anticipated to be primarily driven by a number of factors like Rapid industrialisation around the world is another key
i) Tailwinds from the shift in global supply and ii) Recovery driving market expansion. Furthermore, the manufactures
in demand from the end-user industry. This is attributed to are keen to introduce sustainable oleochemicals and reduce
carbon footprint in order to create the brand-image of
the growing end-use markets such as construction, textile,
environmentally responsible businesses.
automotive and consumer durables, increased raw material
availability amongst others. India is expected to grow at (Source: www.imarcgroup.com/oleochemicals-market)
second highest rate after China and is competing well on
factors such as low labor cost, global trade dynamics and Regional Contribution 2020-2026
uncertainties, relatively lenient environmental norms and (% share)
regulatory policies to name a few.
Market 2020: 42.67% 43.51% Market 2026:
(Source: JM Financial Report, Moneycontrol, https:// $27,594.15 MN $38,577.16 MN
2020
www.moneycontrol.com/news/business/markets/indias- 2026
21.52% 21.46%
chemical-industry-will-continue-on-growth-path-says-jm- 18.65% 18.33%
financial-7841371.html) 9.43% 9.20%

7.73% 7.50%
(Source: https://www.crisil.com/en/home/newsroom/press-
releases/2022/03/india-to-double-specialty-chemicals- NA EU APAC LA MEA
market-share-in-5-years.html) Global Oleochemicals Market by Segment 2020 (% share)
Oleochemistry (Source: Arizton)
The global oleochemicals market is valued at USD 22.5 billion Industry Segments
in 2021 and it is estimated to reach at USD 33.9 billion by 1) Foods
2027. Household consumption of oleochemical products is
Food additives are used to preserve the freshness,
expected to increase; thereby vigorously driving the demand
taste, texture and appearance of various food items
for the oleochemicals. Although many household products
come from the industry today; soaps & detergents have been for an extended duration in order to ensure adequate
the traditional mainstay. The global oleochemicals industry shelf-life of the food products while they reach the end-
has been hit by the COVID-19 pandemic and has caused consumers. Therefore, Food additives play a critical role
disruption in the supply chain and labor crises. Most of in case of the high-volume products such as breads,
the production happened through the refineries; however, biscuits, rusks to high-value ready-to-eat food items
there have been widespread closures of refineries and labor such as desserts, chocolates, spreads, cheese and
shortages due to the lockdown restrictions. The industry more. Growing demand of packaged/canned food has
has positively responded to the crisis, with manufacturers been positively translating in increased consumption of
switching to more sustainable approaches like sourcing Food additives in the past and is expected to continue
feedstocks, establishing a value chain and integrating local favorably in the coming years as elaboared in the next
farmers with product development. Manufacturers have section capturing the Global scenario.
38
Statutory Reports
Global Scenario opportunities for various market players. The increasing

The global Food additives market is projected to consumer inclination toward nutritional products,
increase at a CAGR of 4.93%, during the forecast period including multi-grain breads, yogurts, energy and dairy-
(2022-2027). Rising demand for processed, packaged based drinks is expected to foster the applications
and convenience foods, specifically in developing for food emulsifiers. India has been a prominent milk
economies, is one of the major driving factors of the producer in the world. Thus, the demand for flavored
global Food additives market. Changing consumer milk and recombined milk, made from milk powder and
taste and preferences rising demand for ready-to- chocolate milk drives the emulsifier market further in
eat food is helping the food additives market to grow the thriving dairy industry.
at a remarkable speed. Increasingly industriuous (Source: Morder Intelligence Report)
lifestyle of people and increasing workforce population,
particularly the expanding female workforce, changing Opportunities for Food Additives
consumer lifestyle, increasing sales of packaged frozen • Rising demand for processed, packaged and ready-
foods and ready-to-eat meals are collectively fueling to-eat convenience foods are the driving factors of
the demand for Food additives globally. food additives market.
(source:https://www.mordorintelligence. • Rising demand for malt drinks, premium ice
com/industry-reports/global-food-additives- creams, frozen desserts and other dairy products
marketindustry#:~:text=The%20global%20food%2 are the factors of growth of food additives market.
additive%20market,the%20production%20of%20
• Changing and diversifying consumer tastes, as well
end%20products.)
as increasing demand for food and beverages with
Global Food Additives Market (2021-2028) higher neutritional value, necessitated the use of
food additives by food companies.
2020 2028 CAGR
USD 36.01 USD 57.04 5.7% 2) Plastics and Packaging
billion billion
Additives form an integral part of the Plastics industry.
(The figures include all generally used Food Additives They are extensively used to modify the properties
and not just Fine Organic’s products) of the plastic products during the compounding
and processing stages. Plastics manufacturing and
(Source: https://www.verifiedmarketresearch.com/
processing has evolved with time especially in terms
product/food-additives-market/)
of achieving maximised process & performance
Indian Scenario benefits and integrating ‘sustainability’ by progressively
The Indian food emulsifiers market was valued at USD preferring bio-based Polymer additives. Some of the
104.72 million in 2020, and it is projected to reach major trends observed in the Plastics industry have
USD 159.23 million by 2026 while recording a CAGR of been to enourage the use of bio-based raw materials,
7.25% during the forecast period, 2021-2026. In Asian maximum recycling/reprocessing of used plastics
countries, like India, with higher disposable incomes with the target of promoting ‘circular’ economy and
and more engaging lifestyles, the demand for packaged, thereby, successfully address the issues caused due to
processed and ready-to-eat foods is increasing. The plastics waste management. Therfore, the role of Plastic
manufacturers of food emulsifiers are seeing an additives has become more prominent and imperative.
increased demand from food manufacturers to preserve Global Scenario
the freshness, safety, taste, appearance and texture of
Valued around USD 24,587.37 million in 2021
the processed foods. Furthermore, the Indian food and
(expected), the global plastic additives market is
beverage industry is continually looking for additives
projected to reach USD 30,874.56 million by 2026, at
and ingredient options that aid the nutritive value of food
a CAGR of 4.66%. This growth factor mainly include
products and have a longer shelf-life, better structure
increased demand in the packaging industry as it is used
and high stability. Therefore, the usage of better-
in a variety of industrial and household applications.
quality and more efficient additives presents growth
39
Additionally, owing to the growing population, rapid experienced a growth which is mainly promoted by
urbanisation and rising middle-class incomes, APAC increasing demand for food and beverage packaging
countries are expected to witness robust demand for products not only in India but also worldwide.
Plastic additives in Automotive, Electronic & Electrical
(Source: Mordor intelligence report 2020)
goods manufacturing and other specialty applications.
Thus, the growing demand for the Plastic additives (Note:- The above figures include all generally used
expected to remain stable. Also, with the excellence in Plastic additives and not just Fine Organic’s products)
innovation, the usability and application of additives for
Opportunities
plastics have also increased optimistically.
• Development of sustainable and value-added
(Source: Mordor intelligence analysis 2020)
Plastic additives will gain momentum worldwide;
Volume growth of the Plastics additives market is thereby driving the revenue growth of the Plastic
underpinned by increasing penetration of plastic additives market.
products across different end-use industries as
• Growth in other Plastic additives is mainly
efficient and more sustainable alternative material
reinforced by the high demand from packaging-
including construction, consumer goods, automotive
related applications, including flexible/rigid films/
and packaging among others. Although the COVID-19
sheets, rigid bottles and containers (moulded/
pandemic severely disrupted the overall plastic additives
thermoformed). The packaging sector is
market in 2020, consumption has started to improve in
anticipated to experience robust consumption of
2021, followed by economic recovery and resumption of
Plastic additives for manufacturing various rigid
manufacturing activities. However, pre-pandemic levels
and flexible packaging films and end-products
of consumption will be attained only by 2023.
worldwide.
(Source: https://www.businesswire.com/news/
• Growth in the consumer goods segment is mainly
home/20211027005880/en/Global-Plastic-
backed by the extensive usage of plasticisers, flame
Additives-Growth-Opportunities-Report-2021---
retardants and impact modifiers and processing
ResearchAndMarkets.com)
aids for toys, child-care products, sports and
Indian Scenario leisure products and upholstered furniture among
other consumer goods-related applications.
The Indian plastic additives market is predicted to
be worth USD 1190.60 million in 2021, rising to USD • There has been demand shift in consumer
1643.51 million by 2026, at a CAGR of 6.66 percent. preference towards eco-friedly plastic products
India is a leading Country in South Asia in terms of and increasing use in food packaging and
consumption of plastic additives, owing to the extensive compostable bag applications in emerging markets
usage of plasticisers, flame retardants, stabilisers, impact such as APAC, EU and USA.
modifiers, slip & antiblocks and antistatic additives.
Demand in India primarily comes from the end-products 3) Cosmetics and Pharmaceuticals
such as wires and cables, pipes and fittings, rigid and Cosmetic emulsifiers and emollients are used in various
flexible packaging films and automotive components, personal care products generally to mix water with oil.
largely due to growing urbanisation and middle class Surface active agents that act as the interface between
population, coupled with strong economic growth and two immiscible liquids along with maintaining the stability
presence of cost-effective manufacturing hubs. of mixture are called emulsifiers. Cosmetic emulsifiers
help reduce the surface tension between lipophilic and
The packaging industry is also functioning as a catalyst
hydrophilic constituents, resulting into finely dispersed
in the massive growth of the plastics additives market
mixtures. This, in turn, improves shelf life and increases
in India. The packaging industry, which is India’s largest
performance properties of personal care products
end-user of plastic additives, is expanding rapidly.
The packaging sector was relatively immune to the (Source: https://www.transparencymarketresearch.
COVID-19 pandemic and the related additive market com/cosmetic-emulsifier-market.html)
40
Statutory Reports
Global Scenario consumer population of Asians, have led to the growth

of the hair care market. Asian countries, such as Indian
The world cosmetics market is anticipated to increase
hair care products have emerged as widely accepted
at a CAGR of 5.3% from 2021 to 2027. The growth has
word-wide to make them the most cost-effective and
been driven by a growing consumer base due to strikingly
functional products.
increased awareness, rising disposable income,
the surge in cosmetics manufacturing, expanding The pandemic has influenced the spending habits of
urbanisation and rapid adoption of cosmetic products consumers and purchase decisions, leading to a slight
among millennials and increasing e-commerce sales. drop in the market growth, owing to the lockdown
and closing of various retail stores. Nevertheless,
The global cosmetic chemicals market is primarily driven
an enhanced awareness of hygiene and personal
by the increasing disposable income of individuals in
wellness has made consumers more concerned about
developing countries such as China and India, along
the potential damages of pollution and stress in their
with the desire of better self-grooming and self-care
current lifestyle; thereby, opting for various cosmetics
to improve the external appearance of an individual.
products as a remedy.
Presently, cosmetics have become an indispensable
feature of modern lifestyle of individuals. In addition, (source: https://www.mordorintelligence.com/industry-
growth in consciousness about external beauty along reports/india-cosmetics-products-market-industry)
with individual’s internal intellect has become one of the
(source:https://www.ibef.org/industry/
major driving factors for use of cosmetics in the global
pharmaceuticalindia.aspx#:~:text=According%20
market. Stringent government regulations against
to%20the%20Indian%20Economic,120%2D130%20
the use of toxic chemicals and increased demand for
billion%20by%202030.)
organic products made from natural ingredients limit
the growth of the global cosmetic chemical market. A Opportunities
surge in R&D activities from market leaders with the aim • Growing demand for various skin care products
to develop an advanced and diverse product portfolio is and hair products like shampoos or oils
likely to offer fresh opportunities for the growth of the
global cosmetic chemicals market. • Rise in demand for high value cosmetics with
improved performance properties due to the
(Source:-https://www.alliedmarketresearch.com/ increase in awareness about the benefits of skin
cosmetics-market) care products among end-users is positively
(source:https://www.researchandmarkets.com/ impacting the demand for cosmetic emulsifiers
reports/3275915/world-cosmetics-market- • S
ignificant rise in demand for numerous skin care
opportunities) products such as facial skincare, face cleansers,
Indian Scenario body care and sun protection products is also
anticipated to fuel the demand for cosmetic
India Cosmetics Products Market is projected to rise at a emulsifiers across the globe
CAGR of 4.23% during the forecast period 2021-2022.
• rise in popularity of natural cosmetic ingredients
The booming Indian Cosmetics products Market owing to the increase in awareness regarding the
is stormed by home-grown brands that promise to harmful impact of synthetic ingredients among
pamper Indian skin with the goodness of local, natural end-users is anticipated to boost the demand for
and organic products. The growing concern for health natural cosmetic emulsifiers across the globe
and personal wellness has enhanced the demand
for natural or organic products. These factors have 4) Coating Additives
compelled manufacturers to improve their product Specialty Coating additives play a critical role in the
offerings to match the dynamically changing consumer Coating applications through improving the product
requirements. Amid the growing prevalence of hair quality and stability resulting in maximised benefits
thinning, loss of volume, dryness and several other hair- in the end-applications by imparting overall improved
related concerns among consumers among the younger quality. Although, the use levels of these additives
41
are typically modest, the functional improvement is Opportunities:

significantly noteworthy. These additives are used in
• The continuously growing demand for e-commerce
the printing process to provide the necessary slip and business, increasing applications, technological
antiblocking qualities, resulting in a high quality printed advancements are future growth drivers for the
surface for extended duration. Printed surfaces often industry.
include various materials such as rubber, cardboard,
• Increasing demand for plastics across industries
papers and metals. Inks are also used in printing for like packaging, automobiles, and durables among
plastic cards, and films among others. others, will grow the market and hence demand for
The additives designed for ink applications facilitate the inks and coatings additives in India.
performance of printed surface by rendering effective • The growing packaging sales are increasing both
slip & antiblocking properties, high-quality pigment consumption and demand for consumer goods like
dispersion with sufficient stability, anti-clogging paints.
properties and more required functions. • The growing influence of eco-friendly coating
additives will add extra growth to the environment-
Global Scenario
friendly coating additives market.
The global coating additives market is expected to
• The production of paints and coatings is expected
grow at the rate of 5.5% CAGR from 2021 to 2030. The to be high due to its increasing application in
coating additives is anticipated to grow in Automotive construction, automotive, equipment manufacturing
sector and Paint industry among others. Chemical and consumer durables which, in turn will lead to
formulation of coating additives is being increasingly the increasing demand for additives.
well-accepted due to the performance enhancements
that these materials offer in the end-application. Challenges & Threats
Climate Conditions
(Source: https://www.alliedmarketresearch.com/
e are engaged in the manufacture of oleochemical based
W
coating-additives-market)
green additives which are basically derived from vegetable
Indian Scenario oils. Production output of various vegetable oil seeds is
sensitive to weather conditions, such as drought, floods,
India has emerged as one of the largest consumers
extreme heat, harsh weather, cyclones and natural disasters.
and producers of inks in the Asia Pacific region. The
Adverse weather conditions may also cause volatility in the
burgeoning middle-class has propelled ink usage in prices of commodities, which may affect farmers’ decisions
most of the sub-segments of the industry. India is about the types and quantum of crops to plant and may
among the fastest-growing printing ink markets in the consequently affect the sales of our Additives.
world, spurred by the rapid expansion of domestic print
markets. The printing ink market in India has registered Extended product approval process
a strong growth in the recent years due to the strong The regulatory approvals received from the different
demand from key end user segments such as package industry institutions are generally granted for a limited
printing, publishing and other commercial printing. duration; further there are regular revisions in the regulatory
compliances depending on the geographical region, industry,
The demand for industrial coatings can be propelled end-use and more. Upon approval at the immediate customer,
by the rapid industrialisation in a developing economy it further can take three to five years to approve the additives
like India. This will consequently be a significant before the manufacturer gets the nod as an additive supplier
driving factor for this market. It is expected to exhibit by an end-customer. This means the additive end-users are
increasing production of paints and coatings in the likely to source tested additives from established suppliers
applications such as interior, exterior coatings/paints, to avoid expensive and lengthy validation tests. This process
industrial coatings and other high-end protective creates a high entry barrier for a Company in new customers,
geography and applications.
coating (corrosion inhibitor action).
42
Statutory Reports
Stringent customer specification Business Overview

Our Specialty additives are subject to strict customer Fine Organic Industries Limited (‘Fine Organics’ or ‘FOIL’
specification requirements in terms of manufacturing or ‘The Company’), is an well-established and reputed
processes and products. Any failure on the part of the internationally recognised manufacturer of Oleochemical-
manufacturer or supplier to comply with the applicable based green additives rooted in India. The Company is a
customer specifications may lead to cancellation of existing pioneer in developing unique specialty additives for various
and future orders, recalls or warranty claims or civil claims. If applications. With over 450 specialty additives catering to
products fail to meet customers’ quality standards, it could be foods, plastics, cosmetics, coatings, feed nutrition and other
removed from end-user customers’ ‘approved supplier’ list. key applications in several industries.
This would have a material adverse effect on our business, Our state of the art production facilities are located in
finance and operations. Ambernath, Badlapur, Dombivli and Patalganga. With more
than 20 scientists, engineers and technologists in a dedicated
Vegetable Oil Prices
R&D centre, the Company serves as a platform to develop
The prices of vegetable oil are determined by global and suitable and optimum solutions based on consumers’ and
domestic demand-supply output, other climatic/crop clients’ requirements.
factors, extensive usage in making bio diesel and sustainable
aviation fuel and tariff changes implemented by the Indian Backed by in-house manufacturing and design/engineering
Government and exporting countries may cause price facilities, well-equipped R&D and a techno-commercial
volatility and swings. Recent Russia invasion on Ukraine has approach, the Company provides specialised products and
also fuled up prices and disrupted supplies. technical services to the end user industry.
Supply Chain disruption Food Additives
Covid 19 pandemic has caused global supply chain disruption The Company caters to the food industry requirements with
and it is still continuing due to current geo political issues. its additives such as Emulsifiers, Antifungal Additives and
We use a combination of land, water and air transport and other additives/ blends. These food additives help maintain
typically rely on third party transportation providers for such food quality, keep food fresh, impart improved product
purposes, which are subject to various bottlenecks and other structural integrity and increase the shelf life of foods like
hazards beyond our control, including customs, weather, breads, cakes and bakery products – preventing spoilage or
strikes or civil disruptions. Disruption in logistics, including hazardous growth of bacteria and yeast and moulds.
transportation services, could impair our ability to procure
Plastic Additives
raw materials and/or deliver manufactured products on time.
The Company develops a huge range of additives such as
Any such disruption could materially and adversely affect our
dispersing agents, multifunctional processing aids, antistats,
business, financial condition and results of operations.
melt flow improvers, lubricants, antifogging additives for the
Travel restrictions applications ranging from polymers, polymer compounds/
Travelling is an integral part of our line of business. After masterbatches, foamed products, PVC products and
the devastating COVID-19 surge disrupted supply chains engineering plastics. These plastic additives provide a variety
in key regions, travel restrictions made the situation worse. of functionalities: Slip additives that reduce surface friction
There have been border controls, lockdowns and travel between plastic film-to-film surfaces and film-to-metal
restrictions imposed by various countries, as a result of the surfaces; antistats help to dissipate static charges to make
COVID-19 outbreak. Our team was not being able to travel plastic safer to handle; and anti-fogs that improve visibility
to demonstrate newer applications to our existing and new through plastic films.
customers. Even the manufacturing plant inspection by some
Financial Highlights (Standalone)
of our prospective clients also came to a halt due to the travel
The Company posted net revenue from operation
restrictions. Such travel restrictions will have a impact on our
` 1,85,842.83 lakhs in 2021-22 as against ` 1,12,129.01
ability to travel, interact with potential customers, pursue
lakhs in 2020-21 representing increase of 65.74% over the
partnerships and other business transactions and eventually
previous year. EBIDTA of the Company recorded increase of
on growth prospects.
43
81.46% from ` 19,206.95 lakhs in 2020-21 to ` 34,852.40 and Asia and some of them were adversely impacted by
lakhs in 2021-22. The EBIDTA margin improved from 17.13% the economic downturn in these economies, disruption
in 2020-21 to 18.75% in 2021-22. PAT of the Company in banking and financial systems, economic weakness,
increased by 120.46% from ` 11,493.58 lakhs in 2020-21 unfavourable government policies, rising inflation, lowering
to ` 25,338.43 lakhs in 2021-22. The PAT margins improved of spending power and customer confidence and political
from 10.25% in 2020-21 to 13.63% in 2021-22. uncertainty. Although economic conditions are different
in each country. The Company’s business operations may
Key Ratios FY 2020-21 FY 2021-22
be impacted due to global slowdown, the impacts may
Inventory Turnover (X) 9.82 11.97 be credit market risk, weakening consumer and business
Net Credit Sales/Average
confidence, fluctuating commodity prices, volatile exchange
Inventories
rates and other challenges. The Company constantly monitor
Interest Coverage Ratio (X) 23.86 61.04
macro-environmental situation, making detailed and timely
(Earnings Before Interest
and Taxes(-) Other Income/ assessment to ensure business continuity. Fine organics
Finance Cost) wide range of products and impeccable global presence with
Current Ratio(X) 3.93 3.56 diversified customers base lets Company limiting its risk
(Current Assets/Current related to a particular sector.
Liabilities)
Commodity price risk:
Debt Equity Ratio (X) 0.12 0.06
(Total Debt/Shareholders Agricultural commodity prices are very volatile, and are
Equity) affected by factors such as weather, government policies,
Debtors Turnover (X) 7.00 7.33 global demographic changes and competition from substitute
(Net Sales/Average Accounts products. India is a net importer of edible oils. India imports
Receivables) around 60% of its consumption of edible oils such as Palm oil,
Operating Profit Margin (%) 12.96% 16.61% Soyabean oil and Sunflower oil among others. In sourcing the
(Profit Before Interest and raw materials and selling finished product to various industries,
Taxes(-) Other Income/Net
Sales) price fluctuations in the commodities market would affect
the profitability of the business. The Company is exposed to
Net Profit Margin(%) 10.25% 13.49%
(Net Profit after Taxes/Net commodity price risk for its business operations. Currently the
Sales) Company does not engage in any direct commodity hedging
Return on Net-worth(%) 16.97% 29.54% activities. However, the Company has internal systems through
(Net Profit after Taxes/ which price for our raw materials derived from commodities is
Average Shareholders Equity) monitored to the possible extent. The Company also manages
the associated commodity price risks through short term
Risk Management periodical contracts with vendors and customers.
Fine organics recognises that business activities may be
threatened by a wide range of implicit and explicit risks. Our Raw materials unavailability:
success, as an organisation, depends on our ability to identify Since the Company manufactures products for specialty
and capitalise on business opportunities, especially in the applications, it intends to procure raw materials from
markets we compete within. Hence, we take an integrated different vendors due to large volumes. Also, the Company
approach to minimise risk and run proper assessments to does not enter into contracts for duration exceeding three
maximise growth. By managing the associated risks, we to six months with any of its supplier base depending upon
strive to balance our plan of action, returns and related risks. products, Suppliers and prevailing situation. Any disruption
in the supply of the raw materials can disrupt the Company’s
Economic risk:
manufacturing operations, which can have a material
Our business depends substantially on global economic adverse effect on our business, results of operations and
conditions. A significant number of our Export Customers financial condition. Since the Company has long-standing
and the end users of our products are located and primarily relationships with its suppliers, which helps to minimise risk
operating in Europe, North and South America, Miidle East of procuring raw materials.
44
Statutory Reports
Foreign exchange risks: Human resource risk:
The Company is exposed to foreign exchange risks emanating Our success is largely dependent on the efforts and abilities of
from business, assets and liabilities denominated in foreign our employees. Also, a big part of our future performance will
currency. Our export sales constitute approx.60% of our be determined by our ability to retain our key Management
Revenue from Operations in value term. Most of our sales Personnel. The loss of one or more of our Key Management
to overseas customers are denominated, predominantly in Personnel, or a reduction in their services, could have a
USD and Euro. We import goods, primarily Raw materials negative impact on our business, financial condition, and
which is approx. 30% in value term of our total Raw material results of operations. Failure to attract and retain the right
procurement and mainly denominated in USD. In order to talent will stifle the Company’s growth even further. The
hedge foreign currency exposure, the Company uses forward Company has a competitive remuneration strategy in place,
contracts as hedging instruments from time to time for as well as an adequate incentives and recognition , to prevent
exports as well as imports. such attrition. The Company also carry out employee training
Regulatory risks: on a regular basis to keep their abilities up to date.
Food products and their ingredients, food contact packaging Environment, Health and Safety (EHS):
materials, pharma packaging, Feed nutrition additives
We are subject to safety, health, environmental, labour,
and cosmetic substances are subject to high regulatory
workplace and related laws and regulations. Any failure to
standards. This helps protect consumers from health hazards
comply with any current, or future laws or regulations, could
in all countries where we manufacture or distribute our
have a material adverse effect on our business, financial
products. Similar regulations also apply to plastic additives
condition and results of operations. To mitigate these, we
used in manufacturing packaging materials used for food
have EHS policies. Our decisions are based on the framework
packaging and medical products. In addition to Indian
that these policies suggest, thereby avoiding such risks.
laws, rules, and regulations, we must also comply with the
laws, rules, and regulations in each country where we sell Risk Governance:
our products like all chemical companies, Fine Organics
Our risk governance structure comprises the Risk
is also subjected to foreign, central, state, local laws and
Management Committee at the Board level, the Executive Risk
regulations related to pollution, environment, generation,
Committee and risk management by the respective operating
storage, handling, transportation, treatment, disposal and
remediation of hazardous substances and waste materials. units. The Board level Risk Management Committee, chaired
Changes in environmental regulations could also inhibit or by the Independent Director, oversees the Executive Risk
interrupt the Company’s operations. For this, the Company Committee, reviews the overall risk management guidelines/
abides by the necessary requirements of regulatory bodies framework, reviews and recommends risk limits as well
and environment-friendly manufacturing processes. as assesses the adequacy and effectiveness of the risk
management policies and systems.
Quality risk:
Additives, although used in minor quantities, are very critical Human Resources
in terms of performance in end-use material, be it food, We believe that human capital is a valuable asset for the
plastic or any other products. This makes it imperative for the success of any business, and losing them could have an
customer using the additive to validate the additive’s quality adverse effect on the Company’s performance. At Fine
and performance thoroughly. In addition to performance, Organics, we promote and initiate skill development and
as many of these additives are used in food, feeds and food preparedness against major challenges. Thereon, facilitating
packaging materials, they also need to comply with stringent high employee morale and a healthy work environment.
health and environment-related regulations globally. Any
Our human capital is our most incredible tool that helps us
failure in quality standards may lead to loss of reputation and
in shaping a sustainable future for the Company. It is critical
goodwill of the Company, order cancellation and customer
for our smooth functioning. Hence, discovering talented
loss. The Company has remained focused on strengthening
people and retaining them is the key aim of our HR policy.
the quality standards through its in-house process
development and management. Thus helping it maintain the As on March 31, 2022, the Company’s workforce strength
highest level of quality consistency. stood at 760.
45
Internal Control System The Company adopts and follows a risk mitigation strategy
The Company implements and manages efficient internal and reviews risk occurrence to find probable mitigation
control systems to ensure that all assets are safeguarded and strategies. The Company’s Risk Management Committee
protected against loss from unauthorised use or disposition, reviews risks and mitigation measures at regular intervals,
by maintaining proper records and reports in a timely manner. and accordingly initiates corrective steps at times of need.
This is supplemented by an extensive programme of internal
audit, reviewed by the Management and relevant policies, Cautionary Statements
guidelines and procedures. The internal control is designed The Management Discussion and Analysis Report containing
to ensure the reliability of financial and other records our Company’s objectives, projections, estimates and
for preparing precise financial statements, maintaining expectation may constitute certain statements, which are
accountability of assets and more. The Management is forward-looking within the meaning of applicable laws and
committed to regularly reviewing and making relevant regulations. The statements in this Management Discussion
amendments to the internal control system, as and when and Analysis Report could differ materially from those
required. expressed or implied. Important factors that could make a
difference to the Company’s operations include raw material
The Company’s process framework provides well-
availability and prices, cyclical demand and pricing in the
documented standard operating procedures and authorities
Company’s principal markets, changes in the Governmental
with adequate built-in controls. The internal control is further
regulations, tax regimes, forex markets, economic
enhanced by an extensive programme of internal, external
developments within India and the countries with which the
audits and periodic reviews by the Management.
Company conducts business and other incidental factors.
46
Statutory Reports
BOARD’S REPORT
Dear Members,
The Directors hereby present their twentieth Annual Report along with the audited Standalone as well as Consolidated financial
statements for the financial year ended March 31, 2022.
FINANCIAL RESULTS:
(` In lakhs)
Particulars Standalone Consolidated

for the year ended for the year ended for the year ended for the year ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
REVENUE & PROFITS
Total Revenue from operations 1,85,842.83 112,129.01 1,87,625.92 113,321.84
Profit before Interest, Tax & Depreciation 38,172.37 20,909.36 39,653.96 21,504.80
Less: Interest & Finance Charges 505.64 608.99 510.91 612.98
Less: Depreciation 3,990.01 4,676.49 3,990.28 4,676.91
Profit for the year before Tax 33,676.72 15,623.88 35,152.77 16,214.91
Less: Provision for Taxation
- Current 8,750.00 4,320.00 9,313.85 4,380.61
- Deferred (140.21) (190.89) (131.99) (201.42)
Short (Excess) provision for earlier years - 1.59 - 1.59
Net Profit/(Loss) after Tax 25,066.93 11,493.18 25,970.91 12,034.13
Other Comprehensive Income 271.50 232.90 271.50 232.90
Total Comprehensive Income 25,338.43 11,726.08 26,242.41 12,267.03
RETAINED EARNINGS
Opening Balance of Retained Earnings 71,666.38 61,092.96 71,540.99 60,428.45
Add: Profit for the year 25,066.93 11,493.18 26,091.64 12,034.13
Less: Appropriations: - - - -
Final Dividend 3,372.60 919.76 3,372.60 919.76
Transferred to Other Reserve/ Non- - - 9.92 1.83
Controlling Interest
Balance as at end of the Year 93,360.71 71,666.38 94,250.11 71,540.99
The financial results have been further discussed in detail DIVIDEND:

in the Management Discussion and Analysis Report which Your Directors are pleased to recommend a Final Dividend of
forms a part of this Annual Report. ` 9 per equity share of the face value of ` 5 each fully paid-up
for the financial year ended March 31, 2022.
The Standalone as well as the Consolidated financial
statements have been prepared in accordance with the If the dividend, as recommended above, is declared by the
Indian Accounting Standards (‘Ind AS’). Members at the ensuing Annual General Meeting (‘AGM’), the
total outflow towards dividend on Equity Shares for the year
SHARE CAPITAL: would be ` 2,759.40 lakhs. The dividend will be paid to those
During the year under review, there was no change in the members whose names appear in the register of beneficial
share capital of the Company. The Paid-up share capital owners/register of members as at the close of business
of the Company as on March 31, 2022 is ` 1,533.00 lakhs hours on August 16, 2022.
divided into 3,06,59,976 equity shares of ` 5 each.
47
BOARD’S REPORT (Contd.)
TRANSFER TO RESERVES: a true and fair view of the state of affairs of the Company
The closing balance of the retained earnings of the Company as on March 31, 2022 and of the profit of the Company
for the financial year 2021-22, after all appropriations and for that period;
adjustments was ` 93,360.71 lakhs.
c) the directors have taken proper and sufficient care
for the maintenance of adequate accounting records
SUBSIDIARIES, ASSOCIATE COMPANIES AND JOINT
in accordance with the provisions of this Act for
VENTURES:
safeguarding the assets of the Company and for
As on March 31, 2022, the Company has two subsidiaries
preventing and detecting fraud and other irregularities;
i.e. Fine Organics (USA), Inc. and Fine Organics Europe BV
and three joint venture companies i.e. Fine Zeelandia Private d) the directors have prepared the annual accounts on a
Limited, FineADD Ingredients GmbH and Fine Organic going concern basis;
Industries (Thailand) Co., Ltd.
e) the directors have laid down internal financial controls
During the year, a joint venture company, Fine Organic to be followed by the Company and that such internal
Industries (Thailand) Co., Ltd. was incorporated on May 31, financial controls are adequate and were operating
2021. Further, the Board in its meeting held on November 11, effectively; and
2021 approved the termination of Joint Venture Agreement
f) the directors have devised proper systems to ensure
with Adcotech GmbH for the Company i.e. FineADD
compliance with the provisions of all applicable laws
Ingredients GmbH subject to the completion of applicable
and that such systems were adequate and operating
regulatory formalities. The said Company is presently under
effectively.
the process of liquidation.
Pursuant to the provisions of Section 129 (3) of the DIRECTORS AND KEY MANAGERIAL PERSONNEL:
Companies Act, 2013 (“the Act”), a statement containing Presently, the Board of Directors of the Company comprises
the salient features of financial statements of the Company’s 5 (five) Executive Directors and 5 (five) Non-Executive
subsidiaries and joint ventures in Form AOC-1 is attached to Independent Directors including one woman Independent
the financial statements of the Company. Director. During the financial year ended March 31, 2022,
there has been no change in the Board of Directors.
The separate financial statements of the subsidiaries are
also available on the website of the Company at Mr. Mukesh Shah (DIN: 00106799) retires by rotation and
www.fineorganics.com and will also be made available for being eligible offers himself for re-appointment. A resolution
inspection by the members at the Registered Office of the seeking shareholders’ approval for his re-appointment forms
Company during business hours on all working days as part of the Notice. The brief details of Mr. Mukesh Shah, who
required under Section 136 of the Act. Any member desirous is proposed to be re-appointed as required under Secretarial
of obtaining a copy of the said financial statements may write Standard 2 (“SS-2”) and Regulation 36 of the SEBI (Listing
to the Company Secretary at the Registered Office of the Obligations and Disclosure Requirements) Regulations, 2015,
Company. as amended, (the “Listing Regulations”) is being provided in
the Notice convening the Annual General Meeting (“AGM”) of
DIRECTORS’ RESPONSIBILITY STATEMENT: the Company.
Pursuant to Section 134 (3) (c) read with Section 134 (5) of
During the year under review, the Non-Executive Independent
the Act, the Board of Directors, to the best of its knowledge
Directors of the Company had no pecuniary relationship
and ability, confirm that:
or transactions with the Company, other than sitting fees,
a) in the preparation of the annual accounts for the year commission and reimbursement of expenses, if any.
ended March 31, 2022, the applicable accounting
standards have been followed and there are no material Cessation
departures; On account of sad demise of Mr. Prakash Kamat, Chairman
and Executive Director of the Company, he ceased to be a
b) the directors have selected such accounting policies
Director of the Company w.e.f. June 17, 2022.
and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give
48
Statutory Reports
Mr. Prakash Kamat was a Co-founder of the Company and the Based on the recommendation of the Nomination and
Company has immensely benefited from his vision, guidance Remuneration Committee of the Company, the Board of
and support during his long association. The Board of Directors of the Company at its Meeting held on May 27,
Directors and employees of Fine Organic Industries Limited 2022 has proposed to re-appoint Mr. Prakash Apte as an
deeply mourn this irreparable loss. Independent Non-Executive Director of the Company for
a further period of 5 years w.e.f. November 13, 2022. The
Re-appointment of Directors
Board recommends his re-appointment as an Independent
The Board at its meeting held on June 27, 2022 approved Non-Executive Director for which the approval of the
the appointment of Mr. Mukesh Shah as the Chairman of the Members is being sought in the Notice convening the AGM
Board of the Company in addition to him being a Managing of the Company.
Director. Further, based on the recommendation of the
Nomination and Remuneration Committee of the Company, Based on the recommendation of the Nomination and
the Board of Directors of the Company at its Meeting held on Remuneration Committee of the Company, the Board of
May 27, 2022 has proposed to re-appoint Mr. Mukesh Shah Directors of the Company at its Meeting held on May 27,
as a Managing Director of the Company for a further period 2022 has proposed to re-appoint Mr. Mahesh Sarda as an
of 5 years w.e.f. November 6, 2022. The Board recommends Independent Non-Executive Director of the Company for
his re-appointment as the Managing Director for which a further period of 5 years w.e.f. November 13, 2022. The
the approval of the Members is being sought in the Notice Board recommends his re-appointment as an Independent
convening the AGM of the Company. Non-Executive Director for which the approval of the
Members is being sought in the Notice convening the AGM
Based on the recommendation of the Nomination and
of the Company.
Remuneration Committee of the Company, the Board of
Directors of the Company at its Meeting held on May 27, Based on the recommendation of the Nomination and
2022 has proposed to re-appoint Mr. Jayen Shah as a Whole Remuneration Committee of the Company, the Board of
Time Director and Chief Executive Officer of the Company Directors of the Company at its Meeting held on May 27,
for a further period of 5 years w.e.f. November 6, 2022. The 2022 has proposed to re-appoint Mr. Thiruvengadam
Board recommends his re-appointment as the Whole Time Parthasarathi as an Independent Non-Executive Director of
Director and Chief Executive Officer for which the approval the Company for a further period of 5 years w.e.f. November
of the Members is being sought in the Notice convening the 13, 2022. The Board recommends his re-appointment as an
AGM of the Company. Independent Non-Executive Director for which the approval
Based on the recommendation of the Nomination and of the Members is being sought in the Notice convening the
Remuneration Committee of the Company, the Board of AGM of the Company.
Directors of the Company at its Meeting held on May 27, Based on the recommendation of the Nomination and
2022 has proposed to re-appoint Mr. Tushar Shah as a Whole Remuneration Committee of the Company, the Board of
Time Director and Chief Financial Officer of the Company Directors of the Company at its Meeting held on May 27,
for a further period of 5 years w.e.f. November 6, 2022. The 2022 has proposed to re-appoint Ms. Pratima Umarji as an
Board recommends his re-appointment as the Whole Time Independent Non-Executive Director of the Company for
Director and Chief Financial Officer for which the approval
a further period of 5 years w.e.f. November 13, 2022. The
of the Members is being sought in the Notice convening the
Board recommends her re-appointment as an Independent
AGM of the Company.
Non-Executive Director for which the approval of the
Based on the recommendation of the Nomination and Members is being sought in the Notice convening the AGM
Remuneration Committee of the Company, the Board of the Company.
of Directors of the Company at its Meeting held on
May 27, 2022 has proposed to re-appoint Mr. Bimal Shah as
Remuneration Committee of the Company the Board of
a Whole Time Director of the Company for a further period
Directors of the Company at its Meeting held on May 27,
of 5 years w.e.f. November 6, 2022. The Board recommends
2022 has proposed to re-appoint Mr. Kaushik Shah as an
his re-appointment as the Whole Time Director for which
Independent Non-Executive Director of the Company for a
the approval of the Members is being sought in the Notice
further period of 5 years w.e.f. January 24, 2023. The Board
convening the AGM of the Company.
49
recommends his re-appointment as an Independent Non- and the Risk Management Committee. In addition, the
Executive Director for which the approval of the Members Company has an Executive Committee.
is being sought in the Notice convening the AGM of the
There have been no instances where the Board did not accept
Company.
the recommendations of the Audit Committee.
Pursuant to the provisions of Section 149(7) of the Act, the
Detailed information of these Committees and relevant
Independent Directors have submitted declarations stating
information for the year under review are set out in the
that they meet the criteria of independence as provided in
Corporate Governance Report.
Section 149 (6) of the Act along with Rules framed there
under and Regulation 16 (1) (b) of the Listing Regulations. ANNUAL EVALUATION OF DIRECTORS, COMMITTEES AND
The Board is of the opinion that the Independent Directors BOARD:
of the Company possess requisite qualifications, experience Pursuant to the applicable provisions of the Act and the Listing
and expertise and they hold highest standards of integrity. Regulations, the Board has carried out an annual evaluation
of its own performance, performance of the Directors as
Appointment
well as the evaluation of the working of its Committees. The
Nomination and Remuneration Committee of the Company
Remuneration Committee of the Company, the Board of
(‘NRC’) has defined the evaluation criteria, procedure and
Directors of the Company at its Meeting held on June 27,
time schedule for the Performance Evaluation process for the
2022 has appointed Mr. Nikhil Kamat as an Additional Director
Board, its Committees and Directors.
of the Company w.e.f. June 27, 2022 and further he was
designated as the Whole Time Director of the Company for a The performance of the Board and its functioning were
period of 5 years w.e.f. June 27, 2022. The resolution seeking evaluated based on various criteria including expertise and
approval of the Members for regularisation of his directorship experience of the Board, industry knowledge, diversity,
and appointment as Whole Time Director have been included Board Meeting procedure, Board Development, succession
in the Notice convening the AGM of the Company. planning etc.
Pursuant to the provisions of Section 203 of the Act, the Key All committees of the Board were evaluated based on
Managerial Personnel (‘KMP’) of the Company as on March various criteria including their function and duties, periodical
31, 2022 were: Late Mr. Prakash Kamat, Chairman and reporting to the Board along with their suggestions and
Whole Time Director (since deceased on June 17, 2022); recommendations and procedure of the Meetings etc.
Mr. Mukesh Shah, Managing Director; Mr. Jayen Shah, Whole In a separate meeting of Independent Directors, performance
Time Director and Chief Executive Officer; Mr. Tushar Shah, of Non-Independent Directors, the Board as a whole and the
Whole Time Director and Chief Financial Officer; Mr. Bimal Chairman of the Company was evaluated by the Independent
Shah, Whole Time Director and Ms. Pooja Lohor, Company Directors. The evaluation of Chairperson was done based
Secretary. on criteria which among others included managing
relationship with shareholders and employees, board,
NUMBER OF BOARD MEETINGS:
management and leadership qualities. The performance
The Board met four times during the year under review.
of all Executive Directors as well as Independent Directors
The maximum gap between two Board meetings did not
has been evaluated by whole Board based on the criteria
exceed 120 days. The details of the Board meetings and
which includes participation at Board/Committee Meetings,
the attendance of Directors are provided in the Corporate
managing relationships with other fellow members and
Governance Report forming part of the Annual Report.
Senior management, personal attributes like ethics and
integrity etc.
COMMITTEES OF THE BOARD:
As required pursuant to the Act and the Listing Regulations, The Board and NRC reviewed the performance of the
the Company has formed all the statutory committees, Board, its Committees and of the Directors. The same was
namely, the Audit Committee, the Nomination and discussed in the Board Meeting and the feedback received
Remuneration Committee, the Stakeholders’ Relationship from the Directors on the performance of the Board and its
Committee, the Corporate Social Responsibility Committee Committees was also discussed. The Board was satisfied
50
Statutory Reports
with the performance of the Board, Board Committees and II. Cost Accounts and Cost Auditors
individual Directors. The Company is required to make and maintain cost
records for its products as specified by the Central
NOMINATION AND REMUNERATION POLICY: Government under sub-section (1) of section 148 of the
The Company has in place a Nomination and Remuneration Act. Accordingly, the Company has been making and
Policy for the Directors, KMP and other employees maintaining the records as required.
pursuant to the provisions of the Act and the Listing
Regulations which is available on website of the Company i.e.
The Board, on the recommendation of the Audit
https://www.fineorganics.com/investor-relations/corporate- Committee has approved the appointment of
governance/policies. M/s Y. R. Doshi & Associates, Cost Accountants, Mumbai
(Firm Registration No. 000286) as the Cost Auditors
INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR of the Company to audit the cost records for the
ADEQUACY: financial year 2022-23. In terms of Rule 14 of the
Your Company has an adequate system of internal financial Companies (Audit and Auditors) Rules, 2014, the
controls that is commensurate with the size, scale and nature remuneration payable to the Cost Auditors is required
of its operations. These have been designed to provide to be ratified by the shareholders. Accordingly, a
reasonable assurance with regard to recording and providing resolution seeking ratification by the members for the
reliable financial and operational information, complying remuneration is listed as Item No. 6 of the AGM Notice
with applicable accounting standards, safeguarding of its as an Ordinary Resolution.
assets, prevention and detection of errors and frauds and
III. Secretarial Auditors
timely preparation of reliable financial information.
Pursuant to the provisions of Section 204 of the Act
AUDITORS: and the Companies (Appointment and Remuneration of
I. Statutory Auditors Managerial Personnel) Rules, 2014, the Company has
appointed M/s. KS & Associates - Company Secretaries,
M/s. B Y & Associates, Chartered Accountants, Mumbai
Mumbai (Certificate of Practice Number 5163) to
(Firm Registration No. 123423W) were appointed as the
undertake the Secretarial Audit of the Company for
Statutory Auditors of the Company to hold office for a
the financial year 2022-23. Further, the report of the
term of 5 years from the conclusion of the 15th AGM held
Secretarial Auditor for the financial year 2021-22 is
on July 10, 2017 until the conclusion of the 20th AGM
appended as “Annexure A” to this report.
of the Company to be held in the year 2022. The Audit
Committee and the Board at their meetings held on May The Secretarial Audit Report does not contain any
26, 2022 and May 27, 2022 respectively, has approved qualification, reservation or adverse remark.
and recommended the re-appointment of M/s. B Y &
Associates, Chartered Accountants as the Statutory AUDIT COMMITTEE
Auditors of the Company for a further term of 3 years During the year, there was no change in the composition of
from the conclusion of the 20th AGM of the Company the Audit Committee. Accordingly, as on March 31, 2022,
to be held on August 23, 2022 up to the conclusion of the Audit Committee comprised of Independent Directors
the 23rd AGM to be held in the year 2025. Accordingly, Mr. Mahesh Sarda (Chairman), Mr. Thiruvengadam
a resolution seeking approval of the shareholders for Parthasarathi (Member), Mr. Prakash Apte (Member),
the re-appointment of the Statutory Auditors is listed as Mr. Kaushik Shah (Member) and Executive Directors
Item No. 5 of the AGM Notice as an Ordinary Resolution. Mr. Jayen Shah (Member) and Mr. Tushar Shah (Member).
As per the provisions of Section 139 of the Act, they have The terms of reference of the Audit Committee are included
confirmed that they are not disqualified from continuing in Corporate Governance Report, which forms an integral part
as the Auditors of the Company. of the Annual Report. All the recommendations made by the
Audit Committee were accepted by the Board of Directors.
The Auditors’ Report does not contain any qualification,
reservation or adverse remark.
51
DETAILS IN RESPECT OF FRAUDS REPORTED BY The Board of Directors has constituted Corporate Social
AUDITORS UNDER SUB-SECTION (12) OF SECTION 143 Responsibility Policy of the Company and it is available at
“OTHER THAN THOSE WHICH ARE REPORTABLE TO THE https://www.fineorganics.com/investor-relations/corporate-
CENTRAL GOVERNMENT”: governance/policies.
During the year under review, the Statutory Auditors, Cost
The Report on Corporate Social Responsibility (CSR)
Auditors and Secretarial Auditors have not reported any
including constitution of the Corporate Social Responsibility
instances of frauds committed in the Company by its officers
Committee and activities undertaken during the financial
or employees, to the Audit Committee under Section 143(12)
year 2021-22 as per Rule 8 of the Companies (CSR Policy)
of the Act. Therefore, the details of same are not provided
Amendment Rules, 2021 is enclosed as “Annexure B” to this
herein.
Report.
RISK MANAGEMENT FRAMEWORK:

ANNUAL RETURN:
Risk Management is an integral part of the Company’s
As per the requirements of Section 92 (3) of the Act and
operations. The Board of Directors has constituted Risk
Rule 12 of the Companies (Management and Administration)
Management Committee (RMC) to identify elements of risk
Rules, 2014, the annual return for the financial year 2021-22
in different areas of operations and to develop policy for
will be available on https://www.fineorganics.com/investor-
actions associated to mitigate the risks. Mechanisms for
relations/compliance/annual-general-meeting-documents.
identification and prioritization of risks include scanning
the business environment and continuous monitoring of PARTICULARS OF EMPLOYEES & MANAGERIAL
internal risk factors. Major risks identified by the Company’s REMUNERATION:
business and functions are systematically addressed through The information required under Section 197 (12) of the
mitigating actions on a continuing basis. A detailed note on Act read with Rule 5 (1) of the Companies (Appointment
risk management is given under financial review section and Remuneration of Managerial Personnel) Rules, 2014 is
of the Management Discussion and Analysis of this Annual attached as “Annexure C” to this report.
Report.
The statement containing particulars of employees as
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS: required under section 197 of the Act read with Rule 5 (2)
Particular of loans, guarantees and investments covered of the Companies (Appointment and Remuneration of
under Section 186 of the Act forms part of the notes to the Managerial Personnel) Rules, 2014, will be provided upon
Standalone Ind AS financial statements provided in this request. In terms of Section 136 of the Act, this Report
Annual Report. and accounts are being sent to the members and others
entitled thereto, excluding the information on particulars of
RELATED PARTY TRANSACTIONS: employees which is available for inspection by members at
None of the transactions with related parties fall under the Registered Office of the Company during business hours
the scope of Section 188 (1) of the Act. Accordingly, the on all working days. If any member is interested in obtaining
disclosure of related party transactions as required under a copy thereof, such member may write to the Company
Section 134 (3) (h) of the Act read with Rule 8 (2) of the Secretary in this regard.
Companies (Accounts) Rules, 2014 in Form No. AOC-2
is not applicable to the Company for the financial year CORPORATE GOVERNANCE:
2021-22 and hence, does not form part of this report. Details The Company is committed to maintain the highest
of the related party transactions are given in the notes to the standards of Corporate Governance and continues to be
financial statements. compliant with the requirements of Corporate Governance
as prescribed in the Listing Regulations. In compliance with
CORPORATE SOCIAL RESPONSIBILITY: Regulation 34 and other applicable provisions of the Listing
Your Company has developed a CSR framework in line with Regulations, a separate report on Corporate Governance
Section 135 of the Act read with Schedule VII thereto which along with the Certificate of Compliance from the Secretarial
focuses on Education, Healthcare, Women Empowerment, Auditor forms an integral part of this Annual Report.
Eradicating extreme hunger and poverty etc.
52
Statutory Reports
MANAGEMENT DISCUSSION AND ANALYSIS REPORT: CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,

Pursuant to Regulation 34 of the Listing Regulations, the FOREIGN EXCHANGE EARNINGS AND OUTGO:
Management Discussion and Analysis Report, capturing your The information pertaining to conservation of energy,
Company’s performance, industry trends and other material technology absorption, foreign exchange earnings and
changes with respect to your Company and its subsidiaries, outgo as required under Section 134 (3) (m) of the Act read
wherever applicable, is presented in a separate section with Rule 8 (3) of the Companies (Accounts) Rules, 2014 is
forming an integral part of this Annual Report.
furnished in “Annexure D” to this report.
BUSINESS RESPONSIBILITY REPORT:

MATERIAL CHANGES AND COMMITMENTS, IF ANY
A Business Responsibility Report pursuant to Regulation 34(2)(f)
AFFECTING THE FINANCIAL POSITION OF THE COMPANY
of the Listing Regulations is presented in a separate section
OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
forming an integral part of this Annual Report.
TO WHICH THIS FINANCIAL STATEMENTS RELATE AND
DIVIDEND DISTRIBUTION POLICY: THE DATE OF THE REPORT:
Pursuant to Regulation 43A of the Listing Regulations, the There are no material changes and commitments affecting
Company has adopted a Dividend Distribution Policy, setting the financial position of the Company occurred between the
out the parameters and circumstances that the Board will end of the financial year to which these financial statements
take into account, in determining the distribution of dividend relate and the date of the report other than those mentioned
to its shareholders and/or retaining profits earned by the under any section of this Annual Report.
Company. The policy is available on the website of the
Company and the web link thereto is: DEPOSITS FROM PUBLIC:
https://www.fineorganics.com/investor-relations/corporate- The Company has not accepted any deposits from public and
governance/policies. as such, no amount on account of principal or interest on
deposits from public was outstanding as on the date of the
WHISTLE BLOWER POLICY AND VIGIL MECHANISM: balance sheet.
In accordance with the provisions of Section 177 (9) of
the Act and requirements of Regulation 22 of the Listing SIGNIFICANT OR MATERIAL ORDERS PASSED BY THE
Regulations, your Company has a vigil mechanism which has REGULATORS OR COURTS OR TRIBUNALS, WHICH WOULD
been incorporated in the Whistle Blower Policy for Directors IMPACT THE GOING CONCERN STATUS AND COMPANY’S
and Employees to report genuine concerns about unethical OPERATIONS IN FUTURE:
behavior, actual or suspected fraud or violation of the Code There are no significant or material orders passed by the
for Prevention of Insider Trading. The Whistle Blower Policy Regulators or Courts or Tribunals, impacting the going
is uploaded on the website of your Company at https://www. concern status and the Company’s operations in future.
fineorganics.com/investor-relations/corporate-governance/
policies. ACKNOWLEDGEMENTS:
The Board of Directors thank for the continued support and
PREVENTION OF SEXUAL HARASSMENT:
co-operation by customers, vendors, investor, bankers,
The Company has zero tolerance towards sexual harassment
government and regulatory authorities and stock exchanges
at workplace and has adopted policy on Prevention of Sexual
during the year under review. The Board of Directors wish
Harassment, in line with the provisions of Sexual Harassment
of Women at Workplace (Prevention, Prohibition and to place on record its deep sense of appreciation for the
Redressal) Act, 2013 and the Rules thereunder. The Policy committed services by all the employees of the Company.
aims to provide protection to the employees at workplace
and prevent and redress complaints of sexual harassment For and On Behalf of the Board
and for matters connected or incidental thereto. An Internal
Complaints Committee has also been set up to redress
Mukesh Shah
complaints received on sexual harassment. The Company
Chairman and Managing Director
has not received any complaint of sexual harassment during
Mumbai: June 27, 2022
the financial year 2021-22.
53
Annexure A
Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED March 31, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)

The Members, and the rules made there under, wherever applicable for
Fine Organic Industries Limited the referred financial year;
We have conducted the secretarial audit of the compliance (iii) The Depositories Act, 1996 and the Regulations and
of applicable statutory provisions and the adherence to good Bye-laws framed there under, wherever applicable for
corporate practices by Fine Organic Industries Limited, the referred financial year;
(hereinafter called “the Company”). Secretarial Audit was
conducted in a manner that provided us a reasonable basis (iv) Foreign Exchange Management Act, 1999 and the
for evaluating the corporate conducts/statutory compliances rules and regulations made there under to the extent of
and expressing our opinion thereon. Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings, wherever
Based on our verification of the Company’s books, papers,
applicable for the referred financial year;
minute books, forms and based on returns filed, Statutory
Auditor’s Report, Audited & signed Annual Accounts for (v)
The following Regulations and Guidelines prescribed
financial year ended March 31, 2022, Board’s Report for under the Securities and Exchange Board of India Act, 1992
the financial year ended March 31, 2022 and other records (‘SEBI Act’), wherever applicable for the referred
maintained by the Company and also the information provided financial year:
by the Company, its Board of Directors, its officers, agents
a. The Securities and Exchange Board of India
and authorized representatives as well as the Management
(Substantial Acquisition of Shares and Takeovers)
Representations and Management Certifications made by the
Regulations, 2011, wherever applicable for the
Company during the conduct of secretarial audit, we hereby
referred financial year;
report that in our opinion and as per our understanding and
belief, the Company has, during the audit period covering the b. The Securities and Exchange Board of India
financial year ended on March 31, 2022 generally complied (Prohibition of Insider Trading) Regulations, 2015,
with the statutory provisions as mentioned hereunder and wherever applicable for the referred financial year;
also that the Company has proper Board processes and
c. The Securities and Exchange Board of India
compliance mechanism in place to the extent, in the manner
(Issue of Capital and Disclosure Requirements)
and subject to the reporting made hereinafter:
Regulations, 2018, as amended from time to time,
We have examined the books, papers, minute books, forms wherever applicable for the referred financial year;
and based on returns filed, Statutory Auditor’s Report,
d. The Securities and Exchange Board of India (Share
Audited and signed Annual Accounts for the financial year
ended March 31, 2022, Board’s Report for the financial year Based Employee Benefits) Regulations, 2014,
ended March 31, 2022 and other records maintained by the wherever applicable for the referred financial year;
Company and also the information provided by the Company, e. The Securities and Exchange Board of India (Issue
its Board of Directors, its officers, agents and authorized and Listing of Debt Securities) Regulations, 2008,
representatives as well as the Management Representations wherever applicable for the referred financial year;
and Management Certifications made by the Company during
the conduct of secretarial audit, according to the provisions f. The Securities and Exchange Board of India
of: (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
(i) The Companies Act, 2013 (the Act) and the rules made
and dealing with client, wherever applicable for the
there under, wherever applicable for the referred
referred financial year;
financial year;
54
Statutory Reports
Annexure A (Contd.)
g. The Securities and Exchange Board of India were sent at least seven days in advance and a system
(Delisting of Equity Shares) Regulations, 2009, exists for seeking and obtaining further information and
wherever applicable for the referred financial year; clarifications on the agenda items before the meeting
and for meaningful participation at the meeting.
h. The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998, • As per the minutes, the decisions at the Board Meetings
wherever applicable for the referred financial year; were taken unanimously.
(vi) We have relied on the representation made by the e further report that as per the explanations and
W
Company, its Board of Directors, its officers, agents information given to us and the representations made by
and authorized representatives, Management’s the Management and relied upon by us, there are adequate
Representation and based on returns filed, Statutory systems and processes in the Company commensurate
Auditor’s Report, Audited and signed Annual Accounts with the size and operations of the Company to monitor and
for the financial year ended March 31, 2022, Board’s ensure compliance with applicable laws, rules, regulations
Report for the financial year ended March 31, 2022, for and guidelines.
systems and mechanism put in place by the Company
e further report that during the audit period, the Company
W
for Compliances under various other applicable Acts,
had some of the following events which had bearing on the
Laws and Regulations to the Company and we have also
Company’s affairs in pursuance of the above referred laws,
examined compliance with the applicable clauses of the
rules, regulations, guidelines, standards etc:
following:
• In the board meeting dated May 27, 2021, the Board
• Secretarial Standards with respect to the Board
declared final dividend of ` 11 (Rupees Eleven only) per
and General Meetings issued by the Institute of
equity share of ` 5 each fully paid up for the financial
Company Secretaries of India.
year ended March 31, 2021, which included a one- time
• We have also examined compliance with the special dividend of ` 5 per equity share on account of
applicable clauses of the Securities and Exchange golden jubilee year of the Company.
Board of India (Listing Obligations and Disclosure
• In the Annual General Meeting dated August 24,
Requirements) Regulations, 2015 and the Listing
2021, the Shareholders of the Company approved the
Agreements entered into by the Company with
declaration of final dividend of ` 11 per equity share of
BSE Limited and National Stock Exchange of India
` 5 each, for the financial year 2020-21.
Limited, for the referred financial year;
• I n the Annual General Meeting dated August 24, 2021,
During the period under review and as per the explanations
the shareholders approved ratification of the
and clarifications given to us, as per draft Board’s Report and
appointment of Mr. Bimal Shah (DIN: 03424880), Whole
the Auditor’s Report for the year and as per the representation
time Director of the Company for the remaining period
made by the Management, the Company has generally
of his tenure.
complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. For KS & Associates,
Company Secretaries
The Board met four times during the year under review. The
maximum gap between two Board meetings did not exceed
Kartik Shah
120 days.
C.P. No. 5163
We further report that: Membership No. 5732
• The Board of Directors of the Company is duly Peer Review Certificate No.: 1225/2021
constituted with proper balance of Executive Directors, UDIN: F005732D000401490
Non-Executive Directors, Independent Directors and Place: Mumbai
Woman Director. Date: May 27, 2022
• Adequate notice is given to all Directors to schedule the Note: This report is to be read with our letter which is annexed
Board Meetings, Agenda and detailed notes on agenda as ‘Annexure A’ and forms an integral part of this report.
55
Annexure ‘A’ to the Secretarial Audit Report
To, 5. The Compliance of the provisions of Corporate and

The Members, other applicable laws, rules, regulations, standards is
Fine Organic Industries Limited the responsibility of the management. Our examination
was limited to the verification of procedure on test basis
Our secretarial audit report is to be read along with this letter:
and based on Management Representations, certificate
1. Maintenance of Secretarial record is the responsibility received from the Authorized Officers and Management
of the management of the Company. Our responsibility of the Company and other documents received for
is to express an opinion on these secretarial records applicability of relevant Acts, registrations there under.
based on our audit.
6. The Secretarial Audit report is neither an assurance as
2. We have followed the audit practices and processes to the future viability of the Company nor of the efficacy
as were appropriate to obtain reasonable assurance or effectiveness with which the management has
about the correctness of the contents of the Secretarial conducted the affairs of the Company.
records. The verification was done on test basis to
ensure that correct facts are reflected in Secretarial
records. We believe that the process and practices that For KS & Associates,
are followed, provide a reasonable basis for our opinion. Company Secretaries
3. We have not verified the correctness and appropriateness

Kartik Shah
of financial records and Books of Accounts of the
C.P. No. 5163
Company.
Membership No. 5732
4. Wherever required, we have discussed and relied on the Peer Review Certificate No.: 1225/2021
Management Representation about the Compliance of UDIN: F005732D000401490
laws, rules and regulations and happening of events,
Place: Mumbai
etc.
Date: May 27, 2022
56
Statutory Reports
Annexure B
ANNUAL REPORT ON CSR ACTIVITIES
1. Brief outline on CSR Policy of the Company

Your Company has developed a CSR framework in line with Section 135 of the Companies Act, 2013 read with Schedule VII
thereto which focuses on Education, Healthcare, Women Empowerment and Eradicating of extreme hunger and poverty etc.
We partner with NGOs and social service institutions in delivering projects that leave maximum impact in the lives of the
people affected. The web link to the CSR Policy is https://www.fineorganics.com/investor-relations/corporate-governance/policies.
2. Composition of the CSR Committee

Sr. Name of the Designation/Nature of Directorship Number of meetings Number of meetings
No. Director of CSR Committee of CSR Committee
held during attended during
the year the year
I. Mr. Jayen Shah Chairman of the Committee / Whole Time Director 2 2

and Chief Executive Officer
II. Mr. Prakash Apte Member of the Committee / Independent Director 2 2
III. Mr. Kaushik Shah Member of the Committee / Independent Director 2 2
IV. Mr. Mukesh Shah Member of the Committee / Managing Director 2 2
V. Mr. Tushar Shah Member of the Committee / Whole Time Director 2 2

and Chief Financial Officer
3. Provide the web-link where composition of CSR Committee, CSR Policy and CSR Projects approved
by the Board are disclosed on the website of the Company
The web-link where composition of CSR Committee is disclosed on the website is-
https://www.fineorganics.com/investor-relations/corporate-governance/board-of-directors-and-committees
The web-link where CSR policy is disclosed on the website is-
https://www.fineorganics.com/investor-relations/corporate-governance/policies
The web-link where CSR Projects are disclosed on the website is-
https://www.fineorganics.com/investor-relations/corporate-social-responsibility
4.
Provide the details of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of
rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach
the report)
Not Applicable.
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the
Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off
for the financial year, if any
Sr. Financial Year Amount available for set-off from Amount required to set-off for the
no. preceding financial years (in `) financial year, if any (in `)
-- -- Nil Nil
6. Average Net Profit of the Company as per Section 135(5): ` 19,893.82 lakhs
57
Annexure B (Contd.)
7. (a) Two percent of the Average Net Profit of the Company as per Section 135(5): ` 397.88 lakhs
(B) Surplus arising out of the CSR projects or programmes or activities of the previous financial
years: NIL
(c) Amount required to be set off for the financial year, if any: NIL
(d) Total CSR obligation for the financial year (7a+7b-7c): ` 397.88 lakhs
Out of the total amount spent for the project of Suhit Jeevan Trust in the financial year 2020-21, ` 2.00 lakhs (paid as a GST
amount) was received back to the Company in the financial year 2021-22 on account of the cancelation of the GST number
of one of the contractors appointed for the said project. Considering the said refund amount, total CSR obligation of the
Company for the financial year 2021-22 was ` 399.88 lakhs.
8. (a) CSR amount spent or unspent for the financial year
Total Amount Spent for the Amount Unspent

Financial Year (` In lakhs)
Total Amount transferred to Amount transferred to any fund specified under
Unspent CSR Account as per Schedule VII as per second proviso to Section
Section 135(6) 135(5)
Amount Date of Transfer Name of the Amount Date of Transfer
(` In lakhs) fund
235.96 163.92 April 26, 2022 NA NA NA
(b) Details of CSR amount spent against ongoing projects for the financial year
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from Local Location of the Project Project Amount Amount Amount Mode of Mode of Implementation
no. Project the list of Area Duration allocated spent in transferred Imple- - Through implementing
activities in (Yes/ for the current to Unspent mentation- agency
Schedule VII No) project financial CSR Direct
to the Act (` In Year Account (Yes/No)
lakhs) (` In for the
lakhs) project as
State District per Section Name CSR
135(6) (` In Registration
lakhs) number
1 Mahatma Gandhi Promoting No Maharashtra Amravati 2 yrs 15.00 0 15.00 No MAHAN CSR00000414
Hospital for health
Tribals care including
preventive
health
care
2 Support to Promoting Yes Maharashtra Thane 2 yrs 100.00 0 100.00 No Sri Chaitanya CSR00001017
hospital for health care Seva Trust
cancer patients including
preventive
health care
3 Development Empowering No Maharashtra Jalgaon 2 yrs 9.70 0 9.70 No Bhagini CSR00015243
of Women women Nivedita
Entrepreneurship Gramin
Vidnyan
Niketan
4 Higher School Promotion of Yes Maharashtra Mumbai 2 yrs 20.00 10.00 10.00 No Ghatkopar CSR00012260
Merit Scholarship education South Indian
Education
Trust
58
Statutory Reports
Annexure B (Contd.)
1 2 3 4 5 6 7 8 9 10 11
Sr. Name of the Item from Local Location of the Project Project Amount Amount Amount Mode of Mode of Implementation
no. Project the list of Area Duration allocated spent in transferred Imple- - Through implementing
activities in (Yes/ for the current to Unspent mentation- agency
Schedule VII No) project financial CSR Direct
to the Act (` In Year Account (Yes/No)
lakhs) (` In for the
lakhs) project as
State District per Section Name CSR
135(6) (` In Registration
lakhs) number
5 Renovation Promotion of No Karnataka Bengaluru 2 yrs 10.50 5.00 5.50 No Samarthanam CSR00000063
of Samarthanam education for Trust for the
high school the differently Disabled
abled
6 Girija Balgruha Support to No Maharashtra Raigad 2 yrs 10.72 2.00 8.72 No Girija Welfare CSR00009505
and Girija old age orphanage Association
home and old age
home
7 Rise and Promotion of Yes Maharashtra Mumbai 2 yrs 15.00 0 15.00 No Shree CSR00008092
Shine Child education and Ghatkopar
Development health care Brahman
Centre Samaj
Total 180.92 17.00 163.92
(c) Details of CSR amount spent against other than ongoing projects for the financial year
1 2 3 4 5 6 7 8
Sr. Name of the Project Item from the list of Local Location of the Project Amount Mode of Mode of Implementation - Through
no. activities in Schedule Area spent for Imple- implementing agency
VII to the Act (Yes/ the project mentation-
State District Name CSR
No) (` In lakhs) Direct
Registration
(Yes/No)
number
1 Covid Relief Activities Eradicating extreme Yes Maharashtra Mumbai 8.93 Yes NA NA
hunger and poverty
2 Support to needy Golf Promotion of education Yes Maharashtra Mumbai 2.00 No Chembur Golf Welfare CSR00006141
caddies in Covid Crisis Foundation
3 Supporting Promoting health care Yes Maharashtra Mumbai 24.71 No Harilal Jaichand Doshi CSR00005501
Infrastructure for MICU including preventive Ghatkopar Hindu Sabha
and Wards in Hospital health care Hospital Trust
4 Support to Children Promotion of education No Orissa Khordha 10.00 No RAWA Academy CSR00002778
Home
5 Supporting Promotion of education No Gujarat Kutch 10.00 No The Child Welfare Trust CSR00007706
Dhanvantri School for differently abled
6 Parivaar Seva Kutirs Eradicating extreme No Madhya Dewas, 40.00 No Parivaar Education CSR00000052
hunger and poverty; Pradesh Sehore, Society
Promotion of education and
Mandla
7 Fighting Cataract Promoting health No Orissa Sambalpur 35.00 No Vision India Foundation CSR00006853
Backlog in Western care including preventive
Orissa healthcare
8 Residential School Promotion of education No Gujarat Ahmedabad 10.00 No Vicharta Samuday CSR00001129
for Nomadic and Samarthan Manch
Denotified tribes
9 Support to Empowering women Yes Maharashtra Mumbai 10.00 No Navasrushti CSR00004550

Vocational Training International Trust
Program for youths
59
Annexure B (Contd.)
1 2 3 4 5 6 7 8
Sr. Name of the Project Item from the list of Local Location of the Project Amount Mode of Mode of Implementation - Through
no. activities in Schedule Area spent for Imple- implementing agency
VII to the Act (Yes/ the project mentation-
State District Name CSR
No) (` In lakhs) Direct
Registration
(Yes/No)
number
10 Support to primary Promoting health No West Bengal Howrah 15.00 No Samaritan Help Mission CSR00000896
health clinic care including
preventive health care
11 Supporting school for Promotion of education No Gujarat Navsari 10.00 No Malvi Education and CSR00003450
tribal children Charitable Trust
12 Education to slum Promotion of education Yes Maharashtra Mumbai 5.00 No Logic Centre and CSR00003249
children Community Welfare
Association Mumbai
13 Maternal Child Promoting health care No Gujarat Valsad 7.50 No Action Research In CSR00003729
Health Care including preventive Community Health
health care and Development
14 Supporting Education Promotion of education Yes Maharashtra Mumbai 5.00 No Jeevan Dhara CSR00006154
Initiatives
15 Support girls shelter Promotion of education No Maharashtra Pune 8.00 No Maher CSR00001098
home
16 Higher Education Promotion of education No Andhra Guntur 12.69 No Samarthanam Trust for CSR00000063
support for the youth for the differently abled Pradesh the Disabled
with disability and
underprivileged
Total 213.83
(d) Amount spent in administrative overheads: ` 5.13 lakhs
(e) Amount spent on Impact Assessment, if applicable: Not applicable
(f) Total amount spent for the financial year: ` 235.96 lakhs
(8b+8c+8d+8e)
(g) Excess amount for set-off, if any: Not Applicable
Sr. Particulars Amount (In `)

no.
(i) Two percent of average net profit of the Company as per section 135(5) NA
(ii) Total amount spent for the financial year NA
(iii) Excess amount spent for the financial year [(ii)-(i)] NA
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous NA
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NA
60
Statutory Reports
Annexure B (Contd.)
9. (a) Details of Unspent CSR amount for the preceding three financial years
Sr. Preceding Amount Amount Amount transferred to any fund specified under Amount
No. Financial Year transferred to spent in the Schedule VII as per section 135(6) if any remaining to
Unspent CSR reporting be spent in
Account under Financial Year succeeding
section 135(6) (` In lakhs) financial years
(` In lakhs) (` In lakhs)
Name of the Amount Date of
Fund (` In lakhs) Transfer
1 2018-19 NA Nil NA NA NA Nil
2 2019-20 NA Nil NA NA NA Nil
3 2020-21 404.47 363.97 NA NA NA 40.50
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s)
1 2 3 4 5 6 7 8 9
Sr. Project ID Name of the Project Financial Project Total Amount Cumulative Status of
no. Year in Duration amount spent on the amount spent the Project -
which the allocated project in at the end of Completed/
project was for the the reporting the reporting Ongoing
commenced project Financial Year Financial Year
(` In lakhs) (` In lakhs) (` In lakhs)
1 Mauli Shikshan Dr. Anandibai Joshi 2020-21 2 years 8.40 4.20 8.40 Completed
Prasarak Mandal Nursing Training Course
2 Vishwanidam Education to slum 2019-20 3 years 25.00 12.50 25.00 Completed

Public Charitable children
Trust
3 Samvedana Supporting Rural 2019-20 3 years 31.00 0 15.50 Ongoing
Trust Education
4 Indo-Swiss Skill Development 2020-21 3 years 250.00 225.00 225.00 Ongoing
Centre of Centre
Excellence
5 TATA Memorial Support to Pediatric 2020-21 2 years 5.00 5.00 5.00 Completed
Centre Oncology department
6 Kamaldham Supporting Old age 2020-21 2 years 5.00 5.00 5.00 Completed
Vrudhashram home
and Kalyankari
Sanstha
7 Naigaum Social Modernisation of 2020-21 2 years 2.65 2.65 2.65 Completed
Service Society tailoring unit
8 Borderless World Development of Girls’ 2020-21 2 years 15.00 15.00 15.00 Completed
Foundation Hostel
9 Shrihari Satsang Srihari Satsang Samiti 2020-21 2 years 22.00 11.00 22.00 Completed
Samiti Mumbai Rural Education
(Cultural Society
for Tribals)
10 Sri Chaitanya Support to hospital for 2020-21 2 years 83.62 83.62 83.62 Completed
Seva Trust cancer patients
Total 363.97
61
Annexure B (Contd.)
10.
In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year (asset-wise details)
(a) Date of creation or acquisition of the capital asset(s): Not applicable
(b) Amount of CSR spent for creation or acquisition of capital asset: Not Applicable
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc.: Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital
asset): Not Applicable
11. S
pecify the reason(s), if the Company has failed to spend two per cent of the average net profit as per section 135(5):
Not Applicable
Mukesh Shah Jayen Shah

Chairman and Managing Director Whole Time Director and CEO
(Member of CSR Committee) (Chairman of CSR Committee)
62
Statutory Reports
Annexure C
Information required under Section 197 of the Companies Act, 2013 read with Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014
The ratio of the remuneration of each Director to the median remuneration of the employees of the Company and percentage increase
in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year 2021-22:
Sr. Name Designation Ratio of remuneration of % increase/ (decrease)
No. Director to the median
remuneration
1 Mr. Prakash Kamat Executive Chairman and 59.57 21.53
Whole Time Director
2 Mr. Mukesh Shah Managing Director 59.57 21.53
3 Mr. Jayen Shah Whole Time Director and 59.57 21.53
Chief Executive Officer
4 Mr. Tushar Shah Whole Time Director and 59.57 21.53
Chief Financial Officer
5 Mr. Bimal Shah Whole Time Director 59.57 21.53
6 Mr. Prakash Apte Independent Director 3.45 89.25
7 Mr. Kaushik Shah Independent Director 3.40 94.63
8 Mr. Mahesh Sarda Independent Director 3.27 95.92
9 Mr. Thiruvengadam Parthasarathi Independent Director 3.32 90.24
10 Ms. Pratima Umarji Independent Director 3.19 103.80
11 Ms. Pooja Lohor Company Secretary - 16.22
Notes:
• Remuneration to Executive Directors includes commission paid amounting to ` 50 lakhs per Executive Director aggregating
to total ` 250 lakhs for the financial year 2021-22.
• Remuneration to Independent Directors includes sitting fees paid and the commission to be paid for the financial year
2021-22 subject to approval of the shareholders in the AGM.
• Number of permanent employees on the rolls of the Company as on March 31, 2022: 760
• The remuneration to Directors is within the overall limits approved by the shareholders. - Yes
• The median remuneration is ` 5.88 lakhs for the financial year 2021-22.
• The percentage increase in the median remuneration of employees in the financial year 2021-22 is 6.77%.
• Employee whose remuneration was in excess of the remuneration of the highest paid Director during the financial year 2021-22. - None
Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial
year and its comparison with the percentage increase in the managerial remuneration and justification thereof and point out if
there are any exceptional circumstances for increase in the managerial remuneration:
% change in remuneration
Average increase in salary of employees (other than managerial personnel) 13.83
Average increase in remuneration of managerial personnel 16.68
Affirmation: Pursuant to Rule 5(1)(xii) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, it is affirmed that the remuneration paid to the Directors, Key Managerial Personnel and Senior Management is as per
the Remuneration Policy of the Company.
For and On Behalf of the Board
Mukesh Shah
63
Annexure D
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION FOR FINANCIAL YEAR 2021 –22
ENERGY CONSERVATION: Provision of high efficiency ATFD with a full-fledged

1) Granulator with latest Technology introduced ETP system to achieve ZLD leading to saving of 20–25%
to get following advantages: of energy as compared to conventional evaporation
system.
This advanced technology is capable to offer dual
output of Powder and Granules; therefore, proves to 2) Advanced Lighting Arrester system:
be beneficial over conventional expensive production
This system is a certified system which guarantees
process.
100% dissipation of current whenever the lightning
Improved drying air contact efficiency attained in this strikes to this arrester. Thus, it ensures 100% safety
technology results in effective heat energy saving of to human and assets leading to prevent any Hazard
approximately around 10% to 12%. occurrence at the facility.
2) Water Conservation: 3) D tune reactor:

Implementation of Rain Water Harvesting system These reactors are installed in APFC (Automated Power
so as to save and reuse the rain water during the Factor Circuit) Panels to maximize the power factor
monsoon period. This initiative enables us to save the of the installed main panels which gives us Energy
precious water. Recycling and Reuse of treated waste efficiency. Therefore, there is reduction in harmonics
water within the facility leads to conservation of water leading to energy conservation.
resources. Necessary steps are taken to reduce water
Expenditure incurred on Research and Development
consumption in our facilities.
of the Company during financial year 2021-22:
By installing Water Saver Nozzles on the Taps, across
(` in lakhs)
our major facilities, we were able to save nearly 70 % of
water usage leading to achieve water conservation to a Capital 51.14
larger extent. Recurring 504.06
Steam condensate recovery is a process to reuse the Total 555.20

water and sensible heat contained in the discharge
FOREIGN EXCHANGE EARNINGS AND OUTGO:
condensate. This led to significant saving of energy,
Foreign exchange earnings and outgo during financial year
chemical treatment and water usage. The TDS of Boiler
2021-22 are as follows:
feed water is reduced by using condensate recovered
water. Also, this system minimizes DO content leading to (` in lakhs)
prevent corrosion problem of system and thus, reducing Foreign Exchange 2021-22 2020-21
maintenance costs. Earnings and Outgo
Foreign Exchange Outgo 44,376.67 20,601.61
TECHNOLOGY ABSORPTION: Foreign Exchange Earnings 1,04,111.67 60,851.74
1) Introduction of New Designed machinery:
We have added the Oil skimmer & MBBR technology
For and On Behalf of the Board
in ETP system of our new facility to ensure efficient
working of ETP system.
Mukesh Shah
64
Statutory Reports
CORPORATE GOVERNANCE REPORT
I. COMPANY’S PHILOSOPHY of each of the Directors can be found on https://

The Company believes that high standards of Corporate www.fineorganics.com/images/stories/download/
Governance are essential for achieving long-term Investors/Corporate_Governance/Board_of_
corporate goals and enhancing stakeholders’ value. Directors/Board_of_Directors.pdf. The composition
The Company’s essential character is reflection of the of the Board is in conformity with Regulation 17 of
values of transparency, customer satisfaction, integrity, the Listing Regulations as well as the Companies
professionalism and accountability. The Company Act, 2013 (the “Act”) read with the Rules issued
continuously endeavours to improve on these aspects. there under.
At Fine Organics, the Board of Directors (‘the Board’)
is at the core of our corporate governance practice and (b) Limit on the number of Directorships/Committee
oversees how the Management serves and protects the Memberships
long-term interests of our stakeholders. None of the Directors on the Company’s Board
is a Member of more than ten Committees and
Our corporate governance framework ensures that we
Chairperson of more than five Committees
make timely disclosures and share accurate information
[Committees being, Audit Committee and
regarding our financials and performance, as well as the
Stakeholders’ Relationship Committee] across all
leadership and governance of the Company and create
the public limited companies in which he/she is a
long-term value for our stakeholders. In addition to
Director. All the Directors have periodically made
compliance with regulatory requirements, the Company
necessary disclosures regarding their Directorship
continuously makes efforts towards strong and good
and Committee positions held by them in other
corporate governance.
companies and they do not hold the office of
The Compliance Report on Corporate Governance herein Director in more than twenty companies, including
signifies adherence by the Company of all mandatory ten public limited companies (as specified in
requirements of Regulation 34(3) and Schedule V Section 165 of the Act) and Director in more than 7
of Securities and Exchange Board of India (Listing listed entities (as specified in Regulation 17A of the
Obligations and Disclosure Requirements) Regulations, 2015 Listing Regulations). The Directors on the Board
(“the Listing Regulations”). of the Company do not serve as Independent
Directors in more than seven Listed Companies or
II. BOARD OF DIRECTORS in case if they are serving as a Whole Time Director
(a) Composition and Category of Directors in any Listed Company, they do not hold such
The Company has an optimum combination of position in more than three Listed Companies.
Executive and Non-Executive Directors. The (c) Number of Board Meetings
Board of Directors of the Company comprises ten
During the financial year ended on March 31, 2022,
Directors, out of which five are Executive Directors
four Board Meetings were held on:
and five are Independent Directors including one
independent woman director. In the opinion of the • May 27, 2021,
Board, all Independent Directors fulfill the criteria
• August 13, 2021,
of independence as prescribed in Regulation 16(1)(b)
of the Listing Regulations read with Section 149(6) • November 12, 2021 and
of the Act and rules framed there under. There are • February 11, 2022
no Nominee Directors representing any institution
on the Board of the Company. The maximum interval between any two meetings
was well within the maximum allowed gap of one
The Board of Directors of the Company is an hundred and twenty days. The 19th Annual General
ideal mix of knowledge, perspective, expertise, Meeting (AGM) of the Company was held on
divergent thinking and experience. The profile August 24, 2021 through Video Conferencing (VC) /
Other Audio Visual Means (OAVM) in accordance with
the relevant circulars issued by the MCA and SEBI.
65
CORPORATE GOVERNANCE REPORT (Contd.)
The names and categories of the Directors on the Board, their attendance at the Board Meetings held during the year
under review and at the last AGM, name of other listed entities in which the Director is a director and the number of
Directorships and Committee Chairpersonships / Memberships held by them in other public limited companies as on
March 31, 2022 are given herein below.
Sr. Name of the Director Number Whether No. of *No. of committee Directorship in other
No. and category of Board attended Directorships positions held in listed entity (Category of
Meetings last AGM in other other public limited Directorship)
attended held on public limited companies
during August companies
financial 24, 2021 Chairperson Member Name of the Category of
year Company Directorship
2021-22
A Promoter and Executive
Directors
1 Mr. Prakash Kamat 2 Yes - - - - -
(Chairperson)
(DIN:00107015)
2 Mr. Mukesh Shah 3 Yes - - - - -
(Managing Director)
(DIN:00106799)
3 Mr. Jayen Shah 4 Yes - - - - -
(Chief Executive Officer)
(DIN:00106919)
4 Mr. Tushar Shah 3 Yes - - - - -
(Chief Financial Officer)
(DIN:00107144)
5 Mr. Bimal Shah 4 Yes - - - - -
(DIN:03424880)
B Non-Executive
Independent Directors
6 Mr. Prakash Apte 4 Yes 2 1 1 Kotak Independent
(DIN:00196106) Mahindra Director
Bank
Limited
7 Mr. Kaushik Shah 4 Yes - - - - -
(DIN:00124756)
8 Mr. Mahesh Sarda 4 Yes 1 - 1 - -
(DIN:00023776)
Mr. Thiruvengadam 4 Yes 5 1 3 Centum Independent
9 Parthasarathi Electronics Director
(DIN:00016375) Limited
Western Non-
India Executive
Plywoods Director
Limited
10 Ms. Pratima Umarji 4 Yes - - - - -
(DIN:05294496)
*For the purpose of determination of limit of the Board Committees, chairpersonship and membership of the Audit
Committee and Stakeholders’ Relationship Committee has been considered as per Regulation 26(1)(b) of the Listing
Regulations.
* Membership Includes Chairpersonship
66
Statutory Reports
(d) Board Procedure All committees of the Board were evaluated based
For seamless scheduling of Meetings, the tentative on various criteria including their function and
calendar of Meetings of the Board and Committees duties, periodical reporting to the Board along
is circulated and agreed upon at the beginning of with their suggestions and recommendations and
the year. The required information, including the procedure of the Meetings, etc.
minimum information as enumerated in Part A In a separate meeting of Independent Directors,
of Schedule II of the Listing Regulations is made performance of Non-Independent Directors,
available to the Board of Directors for discussions the Board as a whole and the Chairperson of the
and consideration at Board Meetings. A detailed Company was evaluated by the Independent
Agenda, setting out the business to be transacted Directors. The evaluation of Chairperson was done
at the Meeting(s), supported by detailed Notes and based on criteria which among others included
Presentations, if any, is sent to each Director at least managing relationship with shareholders and
seven days before the date of the Board Meeting(s) employees, Board, management and leadership
and of the Committee Meeting(s). The Board meets qualities. The performance of all Executive
at least once in a quarter to review financial results Directors as well as Independent Directors has
and operations of the Company and also to discuss been evaluated by whole Board based on the
business strategies and overall development of the criteria which includes participation at Board/
business. In addition to the above, the Board also Committee Meetings, managing relationships with
meets as and when necessary to address specific other fellow members and senior management,
issues concerning the businesses of the Company. personal attributes like ethics and integrity etc.
We provide video/teleconferencing facilities to
enable their participation. The Board periodically (f) Independent Directors
reviews compliance reports pertaining to all Independent Directors play a key role in the
laws applicable to the Company, prepared by the decision-making process of the Board and in
Company. shaping various strategic initiatives of the Company.
The wide knowledge in their respective fields of
(e) Performance Evaluation of Board and its
expertise and best-in-class boardroom practices
Committees
help foster varied, unbiased, independent and

Evaluation of performance of all Directors experienced perspective. The Company benefits
is undertaken annually. The Company has immensely from their inputs in achieving its
implemented a system of evaluating performance strategic direction.
of the Board of Directors as a whole and of its

An Independent Director is a Chairperson
Committees and Non-Executive Directors on the
of each of the Audit Committee, Nomination
basis of a structured questionnaire which comprises
and Remuneration Committee, Stakeholders’
evaluation criteria based on the Guidance Note on
Relationship Committee and Risk Management
Board Evaluation issued by SEBI. The Nomination
Committee.
and Remuneration Committee of the Company
(‘NRC’) has defined the evaluation criteria, The Company affirms that it has received a
procedure and time schedule for the Performance declaration from the Independent Directors
Evaluation process for the Board, its Committees confirming that they meet the criteria of
and Directors. independence as prescribed under Section 149(6)
of the Act read with Regulation 16(1)(b) of the
The performance of the Board and its functioning
Listing Regulations.
were evaluated based on various criteria including
expertise and experience of the Board, industry In the opinion of the Board, the Independent
knowledge, diversity, Board Meeting procedure, Directors fulfil the conditions of independence
Board development, succession planning, etc. specified in the Act and the Listing Regulations
67
and are independent of the management. Further, The Chairperson of the meeting of the Independent
the Board is of the opinion that the Independent Directors presented views of the Independent
Directors of the Company possess requisite Directors to the Chairperson of the Company.
qualifications, experience and expertise and they
(h) Familiarization Programme
hold highest standards of integrity.
Pursuant to Regulation 25(7) of the Listing
Further, the Independent Directors have in terms
Regulations, the Company conducts familiarization
of Section 150 of the Act read with Rule 6 of
programme for the Independent Directors to
the Companies (Appointment & Qualification of
provide them an opportunity to be familiar with
Directors) Rules, 2014, confirmed that they have
the Company, its management and its operations
enrolled themselves in the Independent Directors’
so as to gain a clear understanding of their roles
Databank maintained with the Indian Institute of
and responsibilities and contribute significantly
Corporate Affairs (‘IICA’).
towards the growth of the Company. The details
(g) Meetings of Independent Directors of the familiarization programme are disclosed
on the website of the Company at the web link
Pursuant to Regulation 25(3) of the Listing
https://www.fineorganics.com/investor-relations/
Regulations. The Company’s Independent Directors
corporate-governance/details-of-familiarization-
met on March 23, 2022 without the presence
programmes
of Non-Independent Directors or members of
Management. At this meeting, the Independent (i) Matrix of skills/expertise/competencies of the
Directors reviewed the following: Board of Directors
• the performance of Non-Independent The Board of the Company comprises qualified
Directors and the Board as a Whole; members with the necessary skills, expertise
and competence for effective contribution to the
• the performance of the Chairperson of the
Board and its Committees. The Board members
Company, taking into account the views
are committed to ensure that the Company is in
of Executive Directors and Non-Executive
compliance with the highest standards of Corporate
Directors;
Governance.
They also assessed the quality, quantity and
timeliness of flow of information between the
Company Management and the Board.
68
Statutory Reports
The Board has identified the following skills/expertise/competencies fundamental for the effective functioning of the
Company which are currently available with the Board:
Global Business and Strategy Technology Finance Leadership Corporate Personal

Governance Values
Understanding various Product Financial Guiding and leading Service on Personal
geographical markets, business development, management, management teams a public characteristics
development, identifying and process managing to make decisions company matching the
working towards global market technology, financial in uncertain board to Company’s
opportunities, expanding existing leading systems, environments, develop values, such
opportunities, developing robust research and financial project insights about as integrity,
sales and marketing teams, development, reporting management, maintaining accountability,
identifying and developing developing process, strategic planning, board and and high
new products, customers and applications internal risk management, management performance
markets, experience in strategy for existing financial legal, effective accountability, standards.
and business management, and new control, communication, protecting
mergers and acquisitions, products. capital awareness of shareholder
strategic directions to the allocation, business process, interests and
management, branding, principal developing talent, observing
understanding the macro- controller, integrity, building appropriate
economic environment, having capex relations, innovation, governance
adequate knowledge of the management. developing practices.
regulations and legislations leadership
of the markets in which the skills, planning
business operates. successions, high
quality operations
management.
Sr. Name of the Directors Global Business Technology Finance Leadership Corporate Personal
No and Strategy Governance Values
1 Mr. Prakash Kamat     
2 Mr. Mukesh Shah     
3 Mr. Jayen Shah     
4 Mr. Tushar Shah     
5 Mr. Bimal Shah     
6 Mr. Prakash Apte     
7 Mr. Mahesh Sarda     
8 Mr. Thiruvengadam
    
Parthasarathi
9 Ms. Pratima Umarji   
10 Mr. Kaushik Shah     
These skills/competencies are broad-based, encompassing several areas of expertise/experience. Each Director may
possess varied combinations of skills/experience within the described set of parameters, and it is not necessary that all
Directors possess all skills/experience listed therein.
(j) Inter - Se Relationship Between Directors:

Mr. Mukesh Shah, Mr. Jayen Shah, Mr. Tushar Shah and Mr. Bimal Shah are related to each other. Other than them, no
other Directors are related to each other.
69
(k) Details of equity shares of the Company held by the Directors as on March 31, 2022 are given below:
The number of equity shares of face value of ` 5 each of the Company held by the Directors as on March 31, 2022 is as
under:
Name Category Number of equity

shares held
Mr. Prakash Kamat Promoter and Executive Director 44,52,835
Mr. Mukesh Shah Promoter and Executive Director 17,64,045
Mr. Jayen Shah Promoter and Executive Director 34,23,627
Mr. Tushar Shah Promoter and Executive Director 36,99,182
Mr. Bimal Shah Promoter and Executive Director 21,16,827
Mr. Prakash Apte Non-Executive Independent Directors --
Mr. Mahesh Sarda Non-Executive Independent Directors --
Mr. Thiruvengadam Parthasarathi Non-Executive Independent Directors --
Ms. Pratima Umarji Non-Executive Independent Directors --
Mr. Kaushik Shah Non-Executive Independent Directors --
(l) Code of Conduct:

The Company has a defined code of conduct for its Directors and Senior Management Personnel and the same is uploaded
on the website, web-link of which is https://www.fineorganics.com/investor-relations/corporate-governance/policies
As on March 31, 2022, all the Board Members and Senior Management of the Company have affirmed compliance with
their respective Codes of Conduct. A declaration to this effect duly signed by the CEO forms part of this Report.
III. COMMITTEES OF THE BOARD OF DIRECTORS

The Company is in compliance with the provisions of the Act and the Listing Regulations with regard to the constitution of the
Board Committees. Composition, terms of reference and duties and responsibilities of each of the Board Committee is based
on the provisions of the Act and the Listing Regulations.
The Board Committees play a crucial role in the governance structure of the Company and they deal with specific areas of
concern for the Company that need a closer review. Each of these Committees have the authority to engage outside experts,
advisors and counsels to the extent it considers appropriate to assist in its functions. The Committees operate under the
direct supervision of the Board and Chairpersons of the respective committees report to the Board about the deliberations
and decisions taken by the Committees. The recommendations of the Committees are submitted to the Board for approval.
Minutes of proceedings of the Committee meetings are circulated to the respective Committee members of the Board and
placed before Board meeting for noting.
The Company has constituted various committee(s) in compliance with the provisions of the Act and the Listing Regulations.
The Company Secretary acts as the Secretary of all Board Committees. There are six Board Committees as on March 31,
70
Statutory Reports
2022, which comprises five statutory committees and one other committee that has been formed, considering the needs of
the Company, details of which are as follows:
Name of the Committee Audit Committee

Extract of Terms of 1. Overseeing the Company’s financial reporting process and disclosure of its financial
Reference information to ensure that its financial statements are correct, sufficient and credible;
2. Recommending to the Board the appointment, remuneration and terms of appointment of
the statutory auditor of the Company;
3. Reviewing, with the management, the annual financial statements and Auditors’ report
thereon before submission to the Board for approval, with particular reference to:
(a) Matters required to be included in the Directors’ Responsibility Statement to be
included in the Board’s report in terms of clause (c) of sub-section 3 of Section 134 of
the Act;
(b) Changes, if any, in accounting policies and practices and reasons for the same;
(c) Major accounting entries involving estimates based on the exercise of judgment by the
management;
(d) Significant adjustments made in the financial statements arising out of audit findings;
(e) Compliance with listing and other legal requirements relating to financial statements;
(f) Disclosure of any related party transactions; and
(g) Modified opinion(s) in the draft audit report;
4. Reviewing, with the management, the quarterly, half-yearly and annual financial statements
before submission to the Board for approval;
5. Approval or any subsequent modifications of transactions of the Company with the related
parties;
6. Establishing a vigil mechanism for directors and employees to report their genuine concerns
or grievances;
7. Reviewing, with the management, the performance of statutory and internal auditors and
adequacy of the internal control systems;
8. Discussing with internal auditors on any significant findings and follow up there on.
Composition and Name of Directors No. of Meetings attended
Meeting Details Mr. Mahesh Sarda (Chairman) 7
Mr. Prakash Apte 7
Mr. Kaushik Shah 7
Mr. Thiruvengadam Parthasarathi 7
Mr. Jayen Shah 7
Mr. Tushar Shah 7
The Committee met seven times during the year under review.
The Committee Meetings were held on May 26, 2021, May 27, 2021, August 12, 2021,
August 13, 2021, November 11, 2021, November 12, 2021 and February 11, 2022.
The maximum interval between any two meetings was well within the maximum allowed gap of
one hundred and twenty days.
The necessary quorum was present for all the Audit Committee meetings.
On the invitation of the Committee, the representatives of Finance Department, the Statutory
Auditors and Internal Auditors and in certain cases, the plant heads (operations) were present
in its meeting.
Mr. Mahesh Sarda, Chairperson of the Audit Committee was present at the previous AGM of the
Company held on August 24, 2021.
71
Name of the Committee Nomination and Remuneration Committee

Extract of Terms of 1. Formulating the criteria for determining qualifications, positive attributes and independence
Reference of a director and recommending to the Board a policy, relating to the remuneration of the
directors, key managerial personnel and other employees;
2. Formulating of criteria for evaluation of the performance of the independent directors and
the Board;
3. Devising a policy on Board diversity;
4. Identifying persons who qualify to become directors or who may be appointed in senior
management in accordance with the criteria laid down, recommending to the Board their
appointment and removal, and carrying out evaluations of every director’s performance;
5. Determining compensation levels payable to the senior management personnel and other
staff (as deemed necessary), which shall be market-related, usually consisting of a fixed
and variable component;
6.
Recommend to the board, all remuneration, in whatever form, payable to the senior
management.
Meeting Details Mr. Thiruvengadam Parthasarathi (Chairman) 1
Ms. Pratima Umarji 1
Mr. Mahesh Sarda 1
Mr. Prakash Kamat -
The Committee met once during the year under review. The Committee Meeting was held on
March 30, 2022.
The necessary quorum was present for the Nomination and Remuneration Committee meeting.
The performance evaluation of Independent Directors was based on various criteria, inter alia,
including attendance at Board and Committee meetings, skill, experience, ability to challenge
views of others in a constructive manner, knowledge acquired with regard to the Company’s
business, understanding of industry and global trends, etc. During the year under review,
the Committee ascertained and reconfirmed that the deployment of “questionnaire” as a
methodology is effective for evaluation of performance of Board and Committees and Individual
Directors.
Mr. Thiruvengadam Parthasarathi, Chairperson of the Nomination and Remuneration Committee
was present at the previous AGM of the Company held on August 24, 2021.
Name of the Committee Corporate Social Responsibility Committee
Extract of Terms of 1. To formulate and recommend to the Board, the CSR Policy;
Reference 2. To formulate and recommend to the Board, the Annual Action Plan;
3. To review and recommend the amount of expenditure to be incurred on the activities to be
undertaken for approval of the Board;
4. To monitor the CSR policy and the CSR activity and report to the Board from time to time;
5. Review various proposals and identify the eligible entities/agencies for allocation of CSR
amount;
6. Spend the allocated CSR amount on the CSR activities once it is approved by the Board of
Directors of the Company in accordance with the Act and the CSR Rules;
7. Monitor and review periodically the CSR activities and submit the reports to the Board in
respect of the CSR activities undertaken by the Company;
8. To perform such other functions or responsibilities and exercise such other powers as may
be conferred upon the CSR Committee in terms of the provisions of Section 135 of the Act
and the rules framed thereunder.
72
Statutory Reports

Meeting Details Mr. Jayen Shah (Chairman) 2
Mr. Prakash Apte 2
Mr. Kaushik Shah 2
Mr. Mukesh Shah 2
Mr. Tushar Shah 2
The Committee met twice during the year under review. The Committee Meetings were held on
July 8, 2021 and January 24, 2022.
Name of the Committee Stakeholders’ Relationship Committee
Extract of Terms of 1. Resolving the grievances of the security holders of the listed entity including complaints
Reference related to transfer/transmission of shares, non-receipt of annual report, non-receipt of
declared dividends, issue of new/duplicate certificates, general meetings etc.
2. Review of measures taken for effective exercise of voting rights by shareholders.
3. Review of adherence to the service standards adopted by the listed entity in respect of
various services being rendered by the Registrar and Share Transfer Agent.
4. Review of the various measures and initiatives taken by the listed entity for reducing the
quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual
reports/statutory notices by the shareholders of the Company.
5. Issue of duplicate certificates and new certificates on split/consolidation/renewal.
6. Carrying out any other function as may be decided by the Board or prescribed under the Act
the Listing Regulations as amended, or by any other regulatory authority.
Meeting Details Ms. Pratima Umarji (Chairperson) 4
Mr. Prakash Apte 4
Mr. Kaushik Shah 4
Mr. Mukesh Shah 3
Mr. Jayen Shah 4
Mr. Tushar Shah 3
The Committee met four times during the year under review. The Committee Meetings were held
on May 26, 2021, August 12, 2021, November 11, 2021 and February 11, 2022.
Ms. Pratima Umarji, Chairperson of the Stakeholders’ Relationship Committee was present at the
previous AGM of the Company held on August 24, 2021.
73
Name of the Committee Risk Management Committee

Extract of Terms of 1. Formulating a detailed risk management policy which shall include:
Reference (a) A framework for identification of internal and external risks specifically faced by the
listed entity, in particular including financial, operational, sectoral, sustainability
(particularly, ESG related risks), information, cyber security risks or any other risk as
may be determined by the Committee;
(b) Measures for risk mitigation including systems and processes for internal control of
identified risks;
(c) Business continuity plan;
2. To ensure that appropriate methodology, processes and systems are in place to monitor
and evaluate risks associated with the business of the Company;
3. To monitor and oversee implementation of the risk management policy, including evaluating
the adequacy of risk management systems;
4. To periodically review the risk management policy, at least once in two years, including by
considering the changing industry dynamics and evolving complexity;
5. To keep the Board of Directors informed about the nature and content of its discussions,
recommendations and actions to be taken;
6. The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall
be subject to review by the Risk Management Committee.
Composition and Name of Committee Members No. of Meetings attended
Meeting Details Mr. Prakash Apte (Chairman) 2
Mr. Thiruvengadam Parthasarathi 2
Mr. Jayen Shah 2
Mr. Nikhil Kamat 2
Ms. Sonali Bhadani 2
The Committee met twice during the year under review. The Committee Meetings were held on
September 3, 2021 and January 24, 2022. All the Committee members were present for all the
meetings.
The necessary quorum was present for the Risk Management Committee meeting.
74
Statutory Reports
Name of the Committee Executive Committee

Extract of Terms of 1. To approve opening and/or closing of bank account(s) with any bank and making necessary
Reference changes in the operations of the existing bank accounts.
2. To authorize the Company’s officials to execute, sign, submit and file any applications,
affidavits, undertakings or any other writings before any Magistrate, Court of Law, Tribunal,
Government Authorities and judicial/non-judicial Bodies and any other authority and also
to represent the Company before the said Magistrate, Court of Law, Tribunal, Government
Authorities judicial/non-judicial bodies and other Authority.
3. To approve execution of any agreements, undertakings, letters, writings, deeds, contracts,
tenders and any document, which may be required to be executed by the Company from
time to time for management of its day to day affairs and authorize officials of the Company
to execute and submit such documents with concerned authorities.
4. To grant such other authorizations and approvals to any official of the Company or any other
person on behalf of the Board of Directors as may be required for day to day management
of the Company’s business.
Meeting Details Mr. Prakash Kamat 1
Mr. Mukesh Shah 3
Mr. Jayen Shah 3
Mr. Tushar Shah 2
Mr. Bimal Shah 3
The Committee met thrice during the year under review. The Committee Meetings were held on
September 3, 2021, November 25, 2021 and February 21, 2022.
Other details of Stakeholders Relationship Committee
i. Name and Designation of Compliance Officer

Ms. Pooja Lohor, Company Secretary has been appointed as a Compliance Officer of the Company on November 11,
2017.
Name: Ms. Pooja Lohor
Designation: Company Secretary and Compliance Officer
Address: Fine House, Anandji Street, Off M.G. Road, Ghatkopar East, Mumbai - 400 077, India
Tel: +91 (22) 2102 5000
Fax: +91 (22) 21028899 / 21026666
ii. Status of Shareholder Complaints

Details of investor complaints received and redressed during the financial year 2021-22 are as follows:
Nature of Complaints Received during Resolved during Pending during
the year the year the year
Non-receipt of Dividend / Non-receipt of Annual Report 12 12 0
75
IV. REMUNERATION OF DIRECTORS

Remuneration to Executive Directors paid during the financial year 2021-22:
Remuneration payable to the Executive Directors is recommended by the Nomination and Remuneration Committee within
the limits prescribed by the Act approved by the Board and is subject to the overall limits approved by the shareholders.
Details of remuneration of the Executive Directors approved by the Board and paid during the financial year 2021-22 are
given below:
(` in lakhs)
Name of Executive Designation Salary and Commission Total Amount
Directors perquisites
Mr. Prakash Kamat Chairman and Whole Time Director 300.00 50.00 350.00
(w.e.f. November 6, 2017 for a period
of 5 years)
Mr. Mukesh Shah Managing Director 300.00 50.00 350.00
of 5 years)
Mr. Jayen Shah Whole Time Director and Chief 300.00 50.00 350.00
Executive Officer
of 5 years)
Mr. Tushar Shah Whole Time Director and Chief 300.00 50.00 350.00
Financial Officer
of 5 years)
Mr. Bimal Shah Whole Time Director 300.00 50.00 350.00
of 5 years)
The appointment of the Managing Director and the Whole Time Directors is for a period of 5 years. The Managing Director
and the Whole Time Directors may resign from the service of the Company by giving three months’ notice in advance. The
Company has the right to terminate the service of the Managing Director and the Whole Time Directors by giving three
months’ notice in writing or salary in lieu thereof.
Remuneration to Non-Executive Directors paid during the financial year 2021-22:

The Non-Executive Directors are entitled to sitting fees for attending the meetings of the Board and of the Committees
thereof and commission as approved by the Board from time to time. Sitting fees paid to the Non-Executive Directors are
within the prescribed limits under the Act. The details of sitting fees paid and commission payable (subject to approval of the
members at the ensuing AGM) during the financial year are as under:
(` in lakhs)
Sr. No. Name of Non-Executive Directors Sitting Fees Commission *(Proposed) Total Amount
1. Mr. Prakash Apte 5.25 15.00 20.25
2. Mr. Mahesh Sarda 4.20 15.00 19.20
3. Mr. Thiruvengadam Parthasarathi 4.50 15.00 19.50
4. Ms. Pratima Umarji 3.75 15.00 18.75
5. Mr. Kaushik Shah 4.95 15.00 19.95
*The Commission to the Non-Executive Directors for the financial year 2021-22 as recommended by the Board of Directors
is subject to the approval of the members at the ensuing 20th AGM of the Company.
Besides the remuneration stated as above, none of the Non-Executive and Independent Directors of the Company have any
76
Statutory Reports
other pecuniary relationship with the Company or relationship with the managerial personnel.
V. GENERAL BODY MEETINGS

A) Annual General Meeting
The details of Annual General Meetings convened during the last three years are as follows:
Financial Date Time Location Special Resolution passed

Year
2018-19 July 30, 2019 11:00 a.m. Kanji Khetsey 1.
Revision in remuneration of Mr. Prakash
Sabhagriha, Bharatiya Kamat, Chairperson and Whole Time Director
Vidya Bhavan, of the Company.
K. M. Munshi Marg,
2. Revision in remuneration of Mr. Mukesh Shah,
Mumbai - 400 007
Managing Director of the Company.
3. Revision in remuneration of Mr. Jayen Shah,

Whole Time Director and Chief Executive
Officer of the Company.
4. Revision in remuneration of Mr. Tushar Shah,

Whole Time Director and Chief Financial
Officer of the Company.
5. Revision in remuneration of Mr. Bimal Shah,

Whole Time Director of the Company.
6. Ratification for the appointment of Ms. Pratima

Umarji, Independent Director of the Company
for the remaining period of her tenure
2019-20 September 18, 11:00 a.m. Meeting was NIL
2020 conducted through
VC / OAVM pursuant to
the circulars issued by
the MCA.
2020-21 August 24, 11:00 a.m. Meeting was NIL
2021 conducted through
VC / OAVM pursuant to
the circulars issued by
the MCA.
B) Extraordinary General Meeting

No Extraordinary General Meeting of the Members was held during the last three years.
C) Postal Ballot
No resolution was required to be passed by means of a postal ballot during the year.
77
VI. MEANS OF COMMUNICATION

Stock Exchange All the material events or information as per Regulation 30 of the Listing Regulations and other
Intimations intimations as required are disseminated to the Stock Exchanges by filing them with the National
Stock Exchange of India Limited (‘NSE’) and BSE Limited (‘BSE’) through their respective online
portals. They are also displayed on the website of the Company https://www.fineorganics.com/
investor-relations/compliance/stock-exchange-communication
Quarterly Results/ The unaudited quarterly results are announced within forty- ﬁve days of the close of each quarter,
Annual Results other than the last quarter. The audited annual results are announced within sixty days from the
end of the financial year as required under the Listing Regulations. The aforesaid financial results
are announced to the Stock Exchanges within the statutory time period from the conclusion of the
Board Meeting(s) at which these are considered and approved.
The results are usually published in Financial Express, English newspaper having country-wide
circulation and in Pratahkal, Marathi newspaper where the registered office of the Company is
situated.
Website All the information and disclosures required to be disseminated as per Regulation 46(2) of the
Listing Regulations and Companies Act, 2013 are being posted at Company’s website https://
www.fineorganics.com
Presentations Presentations made to the institutional investors/analysts are intimated to the Stock Exchanges
within the prescribed time period under the Listing Regulations and are simultaneously hosted on
the website of the Company, the web-link of which is - https://www.fineorganics.com/investor-
relations/presentations
Designated Exclusive The Company has designated the Email Id i.e. investors@fineorganics.com for investor grievances.
Email ID This Email ID has been displayed on the Company’s website https://www.fineorganics.com
Annual Report The Annual Report of the Company for the financial year 2021-22 is being emailed to the members
whose email addresses are available with the depositories as per section 136 of the Act and
Regulation 36 of the Listing Regulations. For other members, who have not registered their email
addresses, are requested to register their Email ID at the earliest and ask for the soft copy of
the Annual Report. In accordance with General Circular No.20/2020 dated May 5, 2020, Circular
No.02/2021 dated January 13, 2021, Circular No. 19/2021 dated December 8, 2021, Circular
No. 21/2021 dated December 14, 2021 and Circular No. 02/2022 dated May 5, 2022 issued by
Ministry of Corporate Affairs (MCA), the Company is not printing copies of the Annual Report. The
Annual Report of the Company is available on the Company’s website , the web-link of which is -
https://www.fineorganics.com/investor-relations/financial-information/annual-reports
VII. GENERAL SHAREHOLDER INFORMATION

Annual General The Company has decided to hold its 20th Annual General Meeting (the “AGM”) on Tuesday,
Meeting August 23, 2022 at 11:00 am through VC / OAVM. The Company will conduct the meeting from
the Registered Office i.e. Fine House, Anandji Street, Off M G Road, Ghatkopar (East), Mumbai –
400077, which shall be deemed to be the venue of the AGM to transact the business mentioned
in the Notice of AGM. The shareholders may note that the Ministry of Corporate Affairs, vide its
General Circular No. 14/2020 dated April 8, 2020, No.17/2020 dated April 13, 2020, No.20/2020
dated May 5, 2020, No. 02/2021 dated January 13, 2021, No. 21/2021 dated December 14,
2021, and No. 2/2022 dated May 5, 2022 has continued with the relaxation and permitted the
Companies to conduct their AGMs, through VC/OAVM during the calendar year 2022.
Guidelines for participation in the Company’s 20th AGM are laid out in the Notice convening the
meeting and have also been uploaded on the website of the Company viz. https://www.fineorganics.
com/investor-relations/compliance/annual-general-meeting-documents. As required under
Regulation 36(3) of the the Listing Regulations and Secretarial Standard 2, particulars of the
Directors seeking re-appointment at this AGM are given in the Annexure to the Notice of the AGM.
78
Statutory Reports
Financial Year: 2022-23 The financial year of the Company starts from the 1st day of April and ends on 31st day of March of
next year. Our tentative calendar for declaration of results for the financial year 2022-23 are as
(Tentative)
given below:
Quarter Ended Release of Results

First Quarter Results on or before August 14, 2022
Second Quarter and Half Yearly Results on or before November 14, 2022
Third Quarter Results on or before February 14, 2023
Annual Results on or before May 30, 2023
In addition, the Board may meet on other dates as and when required.
Dividend Payment The Final Dividend of ` 9 per equity share, has been recommended by the Board of Directors of the
Date Company for the financial year ended March 31, 2022, and if approved at the ensuing AGM will be
paid to the eligible Members on and from 6th day from the conclusion of the said AGM.
Day and Date of Book Wednesday, August 17, 2022 to Tuesday, August 23, 2022 both days inclusive.
Closure/Record Date
Name, Address and Stock Code of Stock Exchange.
BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Plot No. C/l, “6” Block, Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai – 400051
Towers, Dalal Street,
Code: FINEORG
Mumbai – 400001
Code: 541557
Annual Listing Fees to Listing fees for the financial year 2022-23 have been paid to the Stock Exchanges as on date of
Stock Exchanges this report.
ISIN: INE686Y01026
Market price data - high, low during each month in last financial year:
High/Low in each month of financial year 2021-22 on the BSE Limited and National Stock Exchange of India Limited:
Month BSE NSE

High Price Low Price Total Number of High Price Low Price Total Number of
shares traded shares traded
Apr-21 3,015.00 2,254.20 5,27,698 3,013.50 2,269.25 26,93,181
May-21 3,565.25 2,828.85 1,48,668 3,568.80 2,830.00 18,59,983
June-21 3,092.00 2,788.65 1,08,961 3,094.35 2,789.65 9,68,690
July-21 3,139.95 2,877.30 51,269 3,133.00 2,881.05 6,04,175
Aug-21 3,094.00 2,735.45 3,72,090 3,099.00 2,734.55 5,76,595
Sep-21 3,340.00 2,820.00 75,639 3,340.35 2,825.00 11,29,031
Oct-21 3,593.15 3,061.35 64,448 3,593.95 3,042.20 8,22,016
Nov-21 3,885.00 3,196.85 60,905 3,888.00 3,191.35 11,00,962
Dec-21 4,040.00 3,560.00 1,53,129 4,048.75 3,563.00 7,33,406
Jan-22 3,996.00 3,455.05 35,172 3,944.95 3,457.10 5,07,780
Feb-22 4,444.00 3,566.60 55,215 4,449.95 3,563.20 8,94,652
Mar-22 4,482.00 3,860.00 42,950 4,488.85 3,845.00 5,25,324
79
Performance in comparison to broad-based indices
4,500 65,000
4,000
60,000
3,500
55,000
3,000
50,000
2,500
2,000 45,000
1
1
21
21
21
2
2
21
22
1
1
1
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-2
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2
-2
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r-
ay
ar
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ct
No
Ap
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Fine Organic Industries Ltd. S&P BSE Sensex (RHS)
Registrar & Share Transfer Agents: January 25, 2022, the following requests received by
Name and Address: KFin Technologies Limited the Company from the shareholders holding shares in
Selenium, Tower B, physical form will be processed and the shares will be
Plot No - 31 and 32, Financial issued in dematerialization form only:
District, Nanakramguda, i. Issue of duplicate share certificate
Serilingampally Hyderabad ii. Claim from unclaimed suspense account
Rangareddi, Telangana - 500032, iii. Renewal/Exchange of securities certificate
India
iv. Endorsement
Toll free No.: 1-800-309-4001
v. Sub-division / splitting of securities certificate
E-mail: einward.ris@kfintech.com
vi. Consolidation of securities certificates/folios
Website: https://www.kfintech.com
vii. Transmission
Share transfer system: Transfers of equity shares in
viii. Transposition
electronic form are effected through the depositories
with no involvement of the Company. Shareholders For this purpose, the securities holder/claimant shall
holding shares in physical form may please note that submit a duly filled-up Form ISR-4 which is hosted on
instructions regarding change of address, bank details, the website of the Company as well as on the website of
RTA.
email ids, nomination and power of attorney should
be given to the Company’s RTA i.e., KFin Technologies Members holding shares in physical form are
Limited. requested to dematerialise their holdings at the
In accordance with SEBI vide its circular no. SEBI/HO/ earliest.
MIRSD/RTAMB/CIR/P/2020/166 dated September Nomination facility for shareholding
7, 2020, all share transfers needs to be carried out in
SEBI vide its Circular no. SEBI/HO/MIRSD/MIRSD_
the dematerialised form with effect from April 1, 2021
RTAMB/P/CIR/2021/655 dated November 3, 2021, has
compulsorily. Hence, no transfer of shares in physical
made it mandatory for all shareholders holding shares
form is allowed.
in physical form to furnish nomination details to the
Further, in compliance with SEBI vide its circular Company / RTA.
SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated
80
Statutory Reports
Shareholders can register their nomination details in available on the website of the Company as well as on
Form SH-13 or they can choose to give declaration to the website of RTA.
opt out of Nomination by filing Form ISR-3.
Share Transfer /Transmission audit: The Company

In case the shareholder holding shares in physical form has appointed a firm of Practicing Company Secretary
wishes to change the nominee or cancel the nomination to conduct the audit on yearly basis to ensure that
then Form SH-14 needs to be filled. the requests for the transmission of shares, issue of
duplicate shares, dematerialization, rematerialization
The aforementioned forms are available on the website
of shares of the Company are processed within the
of the Company as well as the RTA and which shall be
stipulated time period subject to lodgement of all the
furnished in hard copy form or through electronic mode
necessary documents by the concerned shareholders.
with e-signature to the Company / RTA.
Share Capital Audit: The issued and paid up share

Permanent Account Number (PAN) and KYC details
capital is reconciled on a quarterly basis with the
SEBI vide its Circular no. SEBI/HO/MIRSD/MIRSD_ details of share capital admitted on National Securities
RTAMB/P/CIR/2021/655 dated November 3, 2021, has Depository Limited (“NSDL”), Central Depository
made it mandatory for all holders of physical securities Services (India) Limited (“CDSL”) and held in physical
to furnish the following documents / details to the form by the shareholders. The quarterly audit of the
Registrar and Transfer Agent: Company’s share capital is carried out by a Practicing
a) PAN Company Secretary with the object of reconciling the
b) Contact details, Postal address with PIN, Mobile total share capital admitted with NSDL and CDSL and
number, E-mail address held in physical form, with the total issued and listed
capital of the Company. The certificate of share capital
c) Bank account details (bank name and branch, bank
audit received from the concerned Practicing Company
account number, IFS code)
Secretary is submitted to BSE and NSE and is also
d) Specimen signature placed at the meetings of the Board of Directors on a
For furnishing the above-mentioned details, shareholder quarterly basis.
shall send the hard copy of Form ISR-1 and/or ISR-2,
Distribution of Equity Shareholding as on March 31, 2022:

Category (Amount) No. of Cases % of Shareholders Total Amount (in `) % of Amount
1-5000 62,225 99.59 72,10,895 4.70
5001- 10000 107 0.17 7,92,945 0.52
10001- 20000 54 0.09 7,59,075 0.50
20001- 30000 8 0.01 2,04,495 0.13
30001- 40000 16 0.03 5,69,775 0.37
40001- 50000 6 0.01 2,71,320 0.18
50001- 100000 14 0.02 9,80,765 0.64
100001 & Above 52 0.08 14,25,10,610 92.96
Total 62,482 100.00 15,32,99,880 100.00
81
Categories of Equity Shareholding Pattern as on March 31, 2022:

Sr. No. Description Shares % Equity
1 Promoters and Promoter Group 2,29,94,501 75.00
2 Mutual Funds 32,54,904 10.62
3 Foreign Portfolio – Corp 22,24,023 7.25
4 Resident Individuals 14,90,360 4.86
5 Alternative Investment Fund 2,48,124 0.81
6 Bodies Corporate 2,44,973 0.80
7 HUF 52,661 0.17
8 Non Resident Indians 46,551 0.15
9 Qualified Institutional Buyer 65,301 0.21
10 Trusts 50 0.00
11 Non Resident Indian Non Repatriable 32,821 0.11
12 Clearing Members 5,707 0.02
TOTAL 3,06,59,976 100.00
Dematerialization of shares and liquidity:

The Company has established connectivity with CDSL and NSDL for dematerialization of shares. As on March 31, 2022,
Equity shares representing 100% of paid-up capital were in dematerialized form.
Description Shares % to Equity
No. of Shares held in dematerialized form in NSDL 2,99,98,025 97.84
No. of Shares held in dematerialized form in CDSL 6,61,951 2.16
Total 3,06,59,976 100.00
Outstanding global depository receipts or American On April 18, 2022, ICRA updated the credit ratings of
depository receipts or warrants or any convertible the Company which are as follows:
instruments, conversion date and likely impact on
equity: Sr. Particulars Current Rating
No.
The Company has not issued any global depository
receipts or American depository receipts or warrants 1. Long Term – Fund based - [ICRA]AA-(Stable);
or any convertible instruments in the past and hence, Cash Credit reaffirmed
as on March 31, 2022, the Company does not have any 2. Long Term/Short Term – [ICRA]AA-(Stable)/
outstanding global depository receipts or American Fund based/Non-Fund [ICRA]A1+;
depository receipts or warrants or any convertible based Limits reaffirmed
instruments.
3. Long Term/Short Term- [ICRA]AA-(Stable)/
Factory Address/Plant Locations: The Company’s
Unallocated [ICRA]A1+;
plants are located at Ambernath (E), Badlapur (E), reaffirmed
Ambernath (W), Dombivli (E), Mahape Navi-Mumbai,
Patalganga in Maharashtra. Shareholders may correspond with the Registrar and
Transfer Agents at:
Credit Ratings: During the year, the credit ratings of the

KFin Technologies Limited
Company by ICRA Limited were as follows;
Selenium, Tower B, Plot No - 31 and 32, Financial
Sr. Particulars Current Rating
No. District, Nanakramguda, Serilingampally Hyderabad
Rangareddi, Telangana - 500032, India
1. Long Term – Fund based/ [ICRA]AA-(Stable)
Cash Credit Rating Contact Person: Mr. Umesh Pandey
2. Short Term – Non-Fund - Toll free No.: 1-800-309-4001

based Rating Email: einward.ris@kfintech.com
3. Long Term/Short Term- [ICRA]AA-(Stable)/ Website: https://www.kfintech.com
Unallocated [ICRA]A1+
82
Statutory Reports

The Company has also designated investors@ Policy for determining ‘material’ subsidiaries
fineorganics.com as an exclusive email ID for Investors The Company has no material subsidiary in the financial
for the purpose of registering complaints and the same year 2021-22. The Company has formulated the policy
has been displayed on the Company’s website. for determining material subsidiaries in terms of the

Shareholders would have to correspond with the Listing Regulations. This Policy has been posted on
respective Depository Participants for shares held in the website of the Company at the Web link: https://
demateralized form for transfer/transmission of shares, www.fineorganics.com/investor-relations/corporate-
change of address, change in bank details, etc. governance/policies
The Compliance Officer can also be contacted at: Details of non-compliance, penalties, strictures
imposed by the Stock Exchange(s) or SEBI or any
Ms. Pooja Lohor
statutory authority on any matter related to capital
Company Secretary and Compliance Officer markets during the last 3 years
Fine House, Anandji Street, Off M.G. Road, There have been no instances of non-compliance on any
Ghatkopar East, Mumbai - 400 077 India matter with the rules and regulations prescribed by the
Tel: +91 (22) 2102 5000 Stock Exchange, SEBI or any other Statutory Authority
Fax: +91 (22) 21028899 /21026666 relating to the capital market during the previous
3 (three) financial years.
The Company can also be visited at its website: https:// Compliance with mandatory requirements
www.fineorganics.com The Company has complied with all the mandatory
requirements relating to Corporate Governance under
VIII. OTHER DISCLOSURES the Listing Regulations.
Related Party Transactions
i. The Company has complied with requirement of
During the financial year ended March 31, 2022, Corporate Governance Report of sub-paras (2) to
there were no materially signiﬁcant transactions (10) of Schedule V of the Listing Regulations.
or arrangements entered between the Company
and its Promoters, Directors or their relatives or the ii. The Company has complied with the requirement
Management, subsidiaries, related parties, etc. that may specified in Regulation 17 to 27 and clauses (b)
have potential conflict with the interests of the Company to (i) of sub-regulation (2) of Regulation 46 of the
at large. Transactions entered into with related parties Listing Regulations.
during the financial year were in the ordinary course of Discretionary Requirements
business and at arms’ length basis and were approved

The discretionary requirements under the Listing
by the Audit Committee.
Regulations as adopted by the Company are as under:
The Company has formulated a Policy on Materiality of
a) There is no audit qualification in the Company’s
Related Party Transactions and dealing with Related
financial statements for the year ended March 31,
Party Transactions in line with the requirements of
2022.
Section 177 (iv) and 188 of the Act read with Rules
framed thereunder and the Listing Regulations. This b) The Internal Auditors of the Company report to the
Policy has been posted on the website of the Company Audit Committee and participate in the meetings
at the Web link: https://www.fineorganics.com/investor- of the Audit Committee of the Board of Directors
relations/corporate-governance/policies of the Company and present their internal audit
observations to the Audit Committee.
Loans and advances in the nature of loans to firms/
companies in which directors are interested, is disclosed c)
The Company has appointed separate persons
along with other related party transactions, in the notes to the post of Chairperson (who chairs the Board
forming part of financial statements. Meetings) and Managing Director.
83
Auditors Fees access to unpublished price sensitive information.

During financial year 2021-22, a total remuneration of
Vigil Mechanism/Whistle-Blower Policy for Directors
` 48 lakhs was paid by the Company on a consolidated
and employees
basis, for all services to M/s. B Y and Associates,
The Company has established a Vigil Mechanism,
Chartered Accountants (Firm Registration No.
which includes a Whistle Blower Policy, for its Directors
123423W).
and employees, to provide a framework to facilitate
Disclosure under the Sexual Harassment of Women responsible and secure reporting of concerns of
at Workplace (Prevention, Prohibition and Redressal) unethical behaviour, actual or suspected fraud or
Act, 2013 violation of the Company’s Code of Conduct and Ethics.
As per the requirement of the Sexual Harassment of No person is denied access to the Chairperson of the
Women at Workplace (Prevention, Prohibition and Audit Committee. The details of establishment of Vigil
Redressal) Act, 2013 (‘POSH Act’) and Rules made Mechanism/Whistle Blower Policy are posted on the
thereunder, the Company has formed an Internal website of the Company and the weblink to the same
Committee (‘IC’) for its workplaces to address complaints is https://www.fineorganics.com/investor-relations/
pertaining to sexual harassment in accordance with corporate-governance/policies
the POSH Act. The Company has a detailed policy for
Acceptance of recommendations of Committees by
prevention of Sexual Harassment at Workplace, which
the Board of Directors
ensures a free and fair enquiry process with clear
In terms of the Listing Regulations, there have been
timelines for resolution.
no instances during the year under review, when the
The Company has not received any complaint of sexual recommendations of any of the Committees were not
harassment during the financial year 2021-22. The accepted by the Board.
Company has in place a Policy on Prevention of Sexual
Harassment at Workplace (‘POSH’) and the same is Disclosure of commodity price risks and commodity
uploaded on the website of the Company at https:// hedging activities.
www.fineorganics.com/images/stories/download/ The Company is exposed to commodity price risk
Investors/Corporate_Governance/Policies/Sexual_ for its business operations. Currently the Company
Harasment_Policy.pdf does not engage in any direct commodity hedging
activities. However, the Company has internal systems
Code of Conduct for Prevention of Insider Trading
through which price for our raw materials derived from
Pursuant to the SEBI (Prohibition of Insider Trading) commodities is monitored to the possible extent. The
Regulations, 2015, as amended from time to time, Company also manages the associated commodity
the Company has adopted the Code of Conduct for price risks through short term periodical contracts with
Prevention of Insider Trading to regulate the dealing vendors and customers.
in securities by the directors and employees of the
The Company is exposed to foreign exchange risks
Company. The Code requires pre-clearance for dealing
emanating from business, assets and liabilities
in the Company’s shares and prohibits the purchase
denominated in foreign currency. In order to hedge this
or sale of the Company’s shares by the directors and
risk, the Company uses forward contracts as hedging
employees while in possession of unpublished price
instruments from time to time.
sensitive information in relation to the Company or its
securities. Details of utilisation of funds raised through
The Company has appointed the Company Secretary as preferential allotment or qualified institutional
the Compliance Officer to ensure compliance of the said placement
Code by all the directors and employees likely to have
The Company did not raise any funds through
84
Statutory Reports
preferential issue or qualified institutional placement appended hereto, certifying that none of the Directors
during the financial year 2021-22. on the Board of the Company have been debarred or
disqualified from being appointed or continuing as
Certificate on Corporate Governance and Directors directors of Companies by the SEBI, MCA or any such
A certificate has been received from M/s. KS & statutory authority.
Associates, Company Secretaries, regarding compliance
with the conditions of Corporate Governance, as Disclosures with respect to Demat Suspense Account/
stipulated in the Listing Regulations and is annexed to Unclaimed Suspense Account
this report and forms part of the Annual Report.
The disclosures with respect to demat suspense
account / unclaimed suspense account is not applicable
The Company has also received certificate from
to the Company for financial year 2021-22.
M/s. KS & Associates, Company Secretaries and
85
ANNEXURE TO CORPORATE GOVERNANCE REPORT OF
FINE ORGANIC INDUSTRIES LIMITED
Declaration regarding Affirmation of Code of Conduct
All the members of the Board and the Senior Management Personnel of the Company have for the year ended March 31, 2022,
affirmed compliance with the Code of Conduct laid down by the Board of Directors in terms of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
For and on behalf of Board of Directors
Jayen Shah
Director and Chief Executive Officer
Mumbai: May 27, 2022
86
Statutory Reports
CERTIFICATE OF NON-DISQUALIFICATION
OF DIRECTORS
(pursuant to regulation 34(3) and schedule V Para C clause (10)(i) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015)
To,
The Board of Directors of Fine Organic Industries Limited
Fine House, Off M. G. Road, Ghatkopar East, Mumbai - 400 077
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Fine Organic
Industries Limited having CIN L24119MH2002PLC136003 and registered office at Fine House, Off M. G. Road, Ghatkopar East,
Mumbai - 400 077 (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this
Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C clause (10)(i) of Securities Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verification (including Directors Identification Number
(DIN) status and Director Master Data at the portal www.mca.gov.in) as considered necessary and explanations furnished to us
by the Company and its officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the
financial year ending on March 31, 2022 have been debarred or disqualified from being appointed or continuing as Directors of
companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs.
Sr. No. Name of Director DIN Date of Appointment in Company

1 Mukesh Maganlal Shah 00106799 May 24, 2002
2 Jayen Ramesh Shah 00106919 May 24, 2002
3 Tushar Ramesh Shah 00107144 May 24, 2002
4 Prakash Damodar Kamat 00107015 May 24, 2002
5 Bimal Mukesh Shah 03424880 April 1, 2011
6 Mahesh Pansukhlal Sarda 00023776 November 13, 2017
7 Prakash Krishnaji Apte 00196106 November 13, 2017
8 Pratima Madhukar Umarji 05294496 November 13, 2017
9 Thiruvengadam Parthasarathi 00016375 November 13, 2017
10 Kaushik Dwarkadas Shah 00124756 January 24, 2018
Ensuring the eligibility for the appointment / continuity of every director on the board is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance
as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the
affairs of the Company.
For KS & Associates,

Company Secretaries,
Kartik Shah
Membership No. 5732
Certificate of Practice No. 5163
Peer Review Certificate No.: 1225/2021
UDIN: F005732D000439517
87
PRACTICING COMPANY SECRETARIES CERTIFICATE ON
CORPORATE GOVERNANCE
To
The Members,
Fine Organic Industries Limited.
We have examined the compliance of conditions of corporate governance by Fine Organic Industries Limited (‘the Company’) for
the financial year ended on March 31, 2022, as stipulated in Regulation 17 to 27 and clauses (b) to (i) of Regulation 46(2) and
para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘Listing Regulation’).
Management Responsibility
The Compliance of conditions of Corporate Governance is the responsibility of the Company’s Management including the
preparation and maintenance of all relevant supporting records and documents.
PCS Responsibility
Our examination was limited to procedure and implementation thereof, adopted by the Company for ensuring compliance with
the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the
Company.
Opinion
In our opinion and to the best of our information and according to the explanations given to us and from the representations
made by the Company, Board of Directors and authorized persons as well as from the Management Representations made
by the Company during the conduct of audit and from the records maintained by the Company and from Board’s Report on
Corporate Governance and based on the Annual Report of the Company for financial year ended March 31, 2022, we certify that
the Company has complied with the conditions of Corporate Governance as stipulated in above mentioned Listing Regulations
wherever applicable during the financial year ended March 31, 2022.
We further state that such compliance is neither an assurance as to the future viability of the Company nor efficiency or
effectiveness with which the management has conducted affairs of the Company.
Restriction on use
This certificate is issued solely for the purpose of complying with the aforesaid Regulations and may not be suitable for other
purposes.
For KS & Associates,

Company Secretaries
Kartik Shah
Membership No. 5732
Certificate of Practice No. 5163
Peer Review Certificate No.: 1225/2021
UDIN: F005732D000439528
88
Statutory Reports
Business Responsibility Report FY 2021-22
SECTION A GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) of the Company L24119MH2002PLC136003

2. Name of the Company Fine Organic Industries Limited (‘the Company’ or ‘FOIL’)
3. Registered address Fine House, Anandji Street, Off M G Road, Ghatkopar East,
Mumbai - 400077, Maharashtra, India
4. Website www.fineorganics.com
5. E-mail id info@fineorganics.com
6. Financial Year reported FY 2021-2022
7. Sector(s) that the Company is engaged in (industrial NIC Code: 20119
activity code-wise)
Manufacture of organic and inorganic chemical compounds n.e.c.
8. List three key products/services that the Company • Food Additives
manufactures/provides (as in balance sheet) • Polymer Additives
• Specialty Additives for coatings, cosmetics, feed nutrition etc.
9. Total number of locations where business activity is a) 2 Sales & Marketing office in the USA and Europe (through
undertaken by the Company: subsidiaries of the Company)
a)
Number of International Locations (Provide b) Manufacturing Locations (Maharashtra) –
details of major 5)
• Ambernath
b) Number of National Locations
• Badlapur
• Dombivli
• Patalganga
Research and Development Centre - Mahape, Navi Mumbai

Head office - Mumbai
Sales and Marketing office – Delhi
10. Markets served by the Company – Local/State/ We have extensive distribution network spread across globe.
National/International
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up Capital (INR) ` 1,533 lakhs

2. Total Turnover (INR) ` 1,85,842.83 lakhs
3. Total profit after taxes (INR) ` 25,066.93 lakhs
4. Total Spending on Corporate Social Responsibility Please refer Corporate Social Responsibility Report for the year
(CSR) as percentage of profit after tax (%) annexed to this Annual Report as “Annexure B”
5. List of activities in which expenditure in 4 above has Education
been incurred: - Healthcare,
Women Empowerment,
Eradicating extreme hunger and poverty
89
Business Responsibility Report FY 2021-22 (Contd.)
SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company/ Companies?
Yes, Fine Organic Industries Limited (Holding Company) has the following subsidiaries :
• Fine Organics (USA), Inc.

• Fine Organics Europe BV
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? If yes, then indicate
the number of such subsidiary Company(s)
Since both the Companies are incorporated in foreign countries, they follow the laws applicable to them in their respective
countries of incorporation. However, the Company encourages subsidiaries to adopt its policies and practices.
3. Do any other entity/entities (e.g., suppliers, distributors etc.) that the Company does business with, participate in the
BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%,
more than 60%]
e do not mandate that our suppliers and distributors participate in the Company’s BR initiatives; however, they are
W
encouraged to do so.
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
(a) Details of the Director/Director responsible for implementation of the BR policy/policies
1. DIN Number 00106799

2. Name Mr. Mukesh Shah
3. Designation Managing Director
(b) Details of the BR head
No. Particulars Details

1. DIN Number (if applicable) 00106919
2. Name Mr. Jayen Shah
3. Designation Director & Chief Executive Officer
4. Telephone number 91-22-21025000
5. e-mail id info@fineorganics.com
2. Principle-wise (as per NVGs) BR Policy/policies

The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (‘NVGs’) released by
the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These briefly are as under:
P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
P3 Businesses should promote the well-being of all employees.
P4 Businesses should respect the interests of and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect, protect and make efforts to restore the environment.
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
P8 Businesses should support inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.
90
Statutory Reports
(a) Details of compliance (Reply in Y/N)

No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy/policies for Y Y Y Y Y Y Y Y Y
2. Has the policy been formulated in Y Y Y Y Y Y Y Y Y
consultation with the relevant stakeholders?
3. Does the policy conform to any national / Y Y Y Y Y Y Y Y Y
international standards? If yes, specify? (50 Refer Refer Refer Refer Refer Refer Refer Refer Refer
words) Note Note Note Note Note Note Note Note Note
4. Has the policy been approved by the Board? Y* Y* Y* Y* Y* Y* Y* Y* Y*
Is yes, has it been signed by MD/ owner/
CEO/ appropriate Board of Director?
5. Does the Company have a specified Y Y Y Y Y Y Y Y Y
committee of the Board/ Director/ Official to
oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed Refer table below
online?
7. Has the policy been formally communicated Y@ Y@ Y@ Y@ Y@ Y@ Y@ Y@ Y@
to all relevant internal and external
stakeholders?
8. Does the Company have in-house structure Y Y Y Y Y Y Y Y Y
to implement the policy/ policies?
9. Does the Company have a grievance Y Y Y Y Y Y Y Y Y
redressal mechanism related to the policy/
policies to address stakeholders’ grievances
related to the policy/ policies?
10. Has the Company carried out independent Y# Y# Y# Y# Y# Y# Y# Y# Y#
audit/ evaluation of the working of this policy
by an internal or external agency?
Y= Yes, N= No
* All statutory policies are approved by the Board of Directors, whereas other policies are approved by Executive
Directors or the respective business/unit head.
@ These policies are internal documents and are circulated internally to the employees of the Company. Code of Conduct
for Board of Directors and Senior Management, CSR policies, Whistle Blower policy etc. are available on website of the
Company.
# The policies are evaluated from time to time and updated whenever required and subject to internal review.
Note: All policies have been formulated in accordance with the applicable laws and regulations and after considering

the best practices adopted by the industry.
Table
Name of the policies:
Name of the Policy Web link
Code of Conduct for Board Members https://www.fineorganics.com/images/stories/download/Investors/Corporate_
and Senior Management Governance/Policies/Code_of_Conduct_for_Board_of_Directors_and_Senior_
Management_Personnel.pdf
Corporate Social Responsibility https://www.fineorganics.com/images/stories/download/Investors/Corporate_
Policy Governance/Policies/CSR-Policy.pdf
Prevention of Sexual Harassment https://www.fineorganics.com/images/stories/download/Investors/Corporate_
Policy Governance/Policies/Sexual_Harasment_Policy.pdf
Whistle Blower Policy https://www.fineorganics.com/images/stories/download/Investors/Corporate_
Governance/Policies/Whistle-Blower Policy.pdf
Code of practices and procedures https://www.fineorganics.com/images/stories/download/Investors/Corporate_
for fair disclosure of unpublished Governance/Policies/Fair_Disclosure_Code.pdf
price sensitive information
91
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The Company has not understood the Principles
2. The Company is not at a stage where it finds
itself in a position to formulate and implement
the policies on specified principles
3. The Company does not have financial or Not Applicable
manpower resources available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (please specify)
3. Governance related to BR
(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR
performance of the Company. Within 3 months, 3-6 months, Annually, more than 1 year
The Business Responsibility performance is reviewed annually by the Board.
(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How
frequently it is published?
he Company publishes its Business Responsibility Report as a part of its Annual Report. The Annual Report is available
T
on the website of the Company at https://www.fineorganics.com under the section Investor Relations.
SECTION E: PRINCIPLE-WISE PERFORMANCE hough policies of the Company do not apply to external
T
Principle 1: Ethics, Transparency and Accountability stakeholders such as suppliers, contractors, NGOs etc.,
the Company insists on adherence to ethical business
1.
Does the policy relating to ethics, bribery and
practices by such agencies during their dealings with
corruption cover only the Company? Yes/ No. Does
the Company and its Group Companies.
it extend to the Group/Joint Ventures/ Suppliers/
Contractors/NGOs /Others? 2. How many stakeholder complaints have been received
in the past financial year and what percentage was
Fine Organic Industries Limited is dedicated in following
satisfactorily resolved by the Management? If so,
all applicable laws, rules and regulations as well as the
provide details thereof, in about 50 words or so.
highest levels of business ethics. The Company promotes
a culture of high integrity and transparency, as well as During the year, 12 complaints have been received from
adhering to the highest ethical and moral standards. shareholders and investors related to non-receipt of
We are SEDEX SMETA 4 pillar certified Company which dividend and non-receipt of annual report. No investor
ensures that all the necessary requirements and complaint was pending at the end of the year
compliances are fulfilled.
Principle 2: Businesses should provide goods and services
A separate Code of Conduct applies to the Company’s that are safe and contribute to sustainability throughout
Directors and Senior Management. The Code can be their life cycle
seen on the Company’s website, www.fineorganics.com. 1. List up to 3 of your products or services whose design
In addition, the Company has a Code of Conduct that has incorporated social or environmental concerns,
applies to all Company employees, including working risks and/or opportunities.
directors. (a) Specialty ‘green’ Anti-scratching additives
mployees of the Company can use our Whistle Blower
E Surface appearance is one of the most critical
programme to report any unethical behaviour, actual or factors related to the final product value for all
suspected fraud or a breach of the Company’s Ethics finished products. Plastic materials are susceptible
Policy. to surface defects in the presence of a severe
92
Statutory Reports
external force, which typically can result in an concerns associated with handling of ingredient in
undesired deformation termed as a ‘scratch’. The the powder form.
scratches can remarkably deteriorate surface
(c) Green Surfactants Development
quality of the final moulded products and can result
in customer rejection. Using a suitable additive can The majority of commercially available surfactants
be the most convenient and appropriate way to are made from petrochemicals. But in order to
enhance the visual appeal of final product. An anti- reduce the usage of goods that are hazardous to
scratching additive is incorporated during the melt- human health and the environment, researchers are
compounding step, which migrates on the polymer looking for surfactants that are made from natural
surface and forms a uniform additive layer on the and renewable resources that are environmentally
polymer surface (at an optimum dosage level). benign and biodegradable.
The equilibrated additive layer controls the excess
Green Surfactants are environmentally friendly
surface friction and thus, effectively mitigates the
surfactants made from bio-based raw materials
scratching process. FINE Anti-scratching additives
and employing green chemistry. The green
are specially formulated to ensure excellent
surfactants produced by our Company is based
surface protection for various base polymers with
on similar principles employing oleochemicals
sustainability.
generated from plant sources. As a result, our
(b) Sustainable and Easy-to-use Pelletized additives green surfactants are safer to use, with a lower
for safer and cleaner Plastics Processing and risk of skin and eye irritation. Because our green
Recycling surfactants range is developed to accomplish
outstanding emulsification, foaming and cleansing

Standard plastic processing involves mixing
as well as a broad spectrum of antimicrobial
various well-identified components in a polymer-
qualities, they have a wide range of applications in
based formulation through melt-blending. In this
the personal care and homecare industries.
course, the handling, conveying and feeding/pre-
mixing of all the ingredients prior to melt-mixing 2. For each such product, provide the following details in
plays a significantly important role. Although the respect of resource use (energy, water, raw material
powder form may offer more effective mixing with etc.) per unit of product(optional):
the powdered polymer; it may not be suitable in the
(a)
Reduction during sourcing/production/
case of polymer granules/pellets due to the bulk
distribution achieved since the previous year
density difference. This variation can result into
throughout the value chain?
uneven and/or inaccurate dispersion of additive
in the base polymer. From operation point of view, (b) Reduction during usage by consumers (energy,
there could be multiple challenges while handling a water) has been achieved since the previous
powder form including dusting (potential material year?
wastage, particle agglomeration), inconvenience

The Company abides by all the necessary
to the operators (need for additional protective
requirements of applicable regulations and
equipments), uneven metering due to non-
ensures environment friendly manufacturing
uniform flow and frequent cleaning may reduce
processes, continuously taking adequate
the process efficiency. Pelletized additives feature
measures for conservation and saving of energy &
the benefits beginning with improved pre-mixing
natural resources. The Company’s procedures and
step, conveying, accurate feeding, metering; easy
operations have been established with the goal of
handling with minimized cleaning time & wastage
maximising resource conservation and utilisation.
(resulting in savings); safety in operation as well
The Company is also devoted to using the cleanest
as to the operators and functionality identical to
procedures available to reduce trash output.
the powder additive products. Therefore, these
In order to achieve this, we take all necessary
additives could be the excellent solutions for dust-
precautions.
free handling, direct use or to address operational
93
The key processes at our facilities are often 4. Has the Company taken any steps to procure goods
continuous or semi-continuous, and they run and services from local & small producers, including
around the clock in order to maximise process communities surrounding their place of work?
efficiency. The Company has established and will
(a) If yes, what steps have been taken to improve
continue to design processes that discourage
their capacity and capability of local and small
the use of non-renewable and/or high-energy-
vendors?
consuming resources. The Company has
emphasised the utilisation of renewable energy The Company aspires to engage in long-term
sources, such as natural gas. business ventures. The Company believes that
providing outstanding products in a sustainable
ecause of our experience, the majority of the
B
and stable manner to satisfy customers is a crucial
processes resulted in significant reductions in
social duty. It is critical to improve the quality of our
fuel and power use. Entire manufacturing activity
raw materials, packaging materials, components,
takes place in closed loop system & therefore no
and services in order to fulfil this duty, so we strive
emission that impact the environment.
to build strong business partnerships with our
By Placing Water Saver Nozzles across our major vendors. We get the majority of our materials from
facilities, we were able to save nearly 70 % of local suppliers.
water usage leading to achieve water conservation
• Compliance with Laws and Regulations
to a larger extent.
The Company follows all applicable laws
All our raw materials are vegetable based and
and regulations. In completing all of our
obtained from various plant sources which are
procurement activities, we understand and
renewable sources. Therefore, we are able to
respect both domestic and international
manufacture & cater our final products in varied
guidelines and standards. In addition, we keep
applications as “Green additives”.
a close eye on industry norms and trends, and
3.
Does the Company have procedures in place for we make every effort to follow them when
sustainable sourcing (including transportation)? conducting business.
(a)
If yes, what percentage of your inputs was • Fair trade
sourced sustainably? Also, provide details The Company strives to engage in highly
thereof, in about 50 words or so. transparent, reasonable and fair transactions
All our Raw materials are plant based and their when procuring goods and services.
supply is in abundance as well as renewable support • Criteria for evaluating products and vendors
sustainable sourcing. The Company has good
The Company meticulously evaluates goods
methods in place for sustainable sourcing, where
and services and engages in transactions in
nearly 70% of our raw materials are procured from
which quality, quantity, prices and delivery
Local vendors and through locally grown farms
dates are taken into account, as well as the
whereas 30% are sourced from import suppliers,
vendors’ financial status, technological skills,
leading to support sustainable sourcing. Similarly,
corporate attitude and social responsibility
we have our own in-house engineering & project
efforts.
team which ensures to develop our utilities and
machineries from Indian sourced fabricators and • Health and Safety
engineers as per our designs to suit our processes The Company encourages to buy from vendors
instead of importing from other countries who correctly manage health and safety risks
The internal processes & procedures ensure and take ongoing steps to improve workplace
adequate safety during transportation and health and safety.
optimization of logistics, which in turn help to • Environment
mitigate climate change.
The Company advocates environmentally
friendly products and services through
94
Statutory Reports
promoting sustainable purchase and 4. Please indicate the Number of permanent employees
procurement. The majority of our raw with disabilities
ingredients are environmentally friendly,
None of the permanent employees are differently abled.
produced from renewable natural vegetable
oil crops. 5.
Do you have an employee association that is
recognized by Management?
• Promoting Domestic / Local Sources
The Company does not have any recognised employee
Local sourcing is a critical component of
association.
supply chain development. The Company is
enthusiastic about sourcing and promoting 6.
What percentage of your permanent employees is
goods and services from local suppliers who members of this recognized employee association?
adhere to consistent quality and the same
Not Applicable
social and environmental standards as we do.
The Company works with them and supports 7. Please indicate the Number of complaints relating to
them in new developments. child labour, forced labour, involuntary labour, sexual
harassment in the last financial year and pending, as
5.
Does the Company have a mechanism to recycle
on the end of the financial year.
products and waste? If yes what is the percentage of
recycling of products and waste (separately as <5%, The Company works consistently to provide workplaces
5-10%, >10%). Also, provide details thereof, in about free from discrimination and harassment on the basis
50 words or so. of gender, religion, age or Sexual orientation. FOIL has
set policies and procedures to prevent any kind of child
All our manufacturing facilities operate by following
labour, sexual harassment at our locations of operations
certain best practices like “R3 - Reduce, Reuse &
such as verification of supporting documents related to
Recycle” which not only enable us to save our natural
age proof before confirming employment, conducting
resources but also limit the waste arising out of the
of awareness program to prevent harassment at
production. The zero liquid discharge plant is one of the
most important facilities for reducing waste creation workplace.
to the bare minimum. At Ambernath, Patalganga, No. Category No of No of
Dombivli and Patalganga, all of our plants are Zero complaints complaints
Liquid Discharge facilities. Our upcoming R&D centre in filed during pending as
Dombivli is also a ZLD facility. We do not release a single the financial on end of the
year financial year
drop of effluent from our facility leading to achieve zero
1. Child labour/forced Nil Nil
impact on environment.
labour/involuntary
labour
Principle 3: Businesses should promote the well-being of
2. Sexual harassment Nil Nil
all employees
3. Discriminatory Nil Nil
1. Please indicate the Total number of employees. employment
The Company has 760 number of Total Employees as on 8. What percentage of your under mentioned employees
March 31, 2022. were given safety & skill upgradation training in the
2. Please indicate the Total number of employees hired last year?
on temporary/contractual/casual basis. (a) Permanent Employees
The Company has 2 number of employees hired on (b) Permanent Women Employees
temporary/contractual/casual basis.
(c) Casual/Temporary/Contractual Employees
3.
Please indicate the Number of permanent women
employees. (d) Employees with Disabilities
The Company has 128 number of permanent woman Fine Organic Industries Limited places a premium on
employees. employee health and safety. Along with safety and
95
security training, the Company offers a variety of training extreme hunger and poverty. The Company aims to
programmes for its employees in offices and factories, create a meaningful and lasting impact on the lives of
based on the duties and responsibilities of employees in beneficiaries.
various grades and departments, such as:
Principle 5: Businesses should respect and promote
• Workplace Sexual Harassment Prevention Training
human rights
• Quality Management System Training
1.
Does the policy of the Company on human rights
• Business Ethics Training cover only the Company or extend to the Group/Joint
• Fire Fighting Training / First Aid Ventures/Suppliers/Contractors/NGOs/Others?
• ystem Compliance (FSSC, GMP, HALAL, RSPO,
S The Company abides by all laws that represent human
SEDEX)
rights concepts such as non-discrimination, child
• COVID-19 Measures to prevent and control. labour prevention, sexual harassment prevention and
equal employment opportunities among others. Every
Principle 4: Businesses should respect the interests employee, as well as third parties with whom it does
of, and be responsive to the needs of all stakeholders, business, is treated with dignity and individual rights by
especially those who are disadvantaged, vulnerable, and the Company.
marginalized.
The Company also spread awareness among all staff
1. Has the Company mapped its internal and external
regarding Human rights by conducting necessary
stakeholders? Yes/No
trainings like POSH, HR Policies etc.
Yes, the process of mapping of stakeholders is an
2.
How many stakeholder complaints have been
ongoing exercise and is conducted on a regular basis.
received in the past financial year and what percent
2. Out of the above, has the Company identified was satisfactorily resolved by the Management?
the disadvantaged, vulnerable & marginalized
stakeholders. The Company has not received any complaints from
stakeholders in this respect during financial year 2021-
es, the Company has identified the underprivileged,
Y 2022.
vulnerable, and marginalised communities among the
aforesaid stakeholders through a need assessment Principle 6: Business should respect, protect and make
and engages with them through its Corporate Social efforts to restore the environment
Responsibility initiative/activities. 1. Does the policy relate to Principle 6 cover only the
3. Are there any special initiatives taken by the Company Company or extends to the Group/Joint Ventures/
to engage with the disadvantaged, vulnerable and Suppliers/Contractors/NGOs/others?
marginalized stakeholders? If so, provide details
Our Management principles include environmental
thereof, in about 50 words or so. conservation and workplace safety. All parties impacting
he Company has identified the disadvantaged,
T the whole value chain benefit from the Company’s
vulnerable and marginalised communities through policies on safety, health and the environment. We
need assessment and engages with such marginalised have all the relevant SOPs & records needed to ensure
communities under its Corporate Social Responsibility that the environment & safety norms as well as their
initiative/activities. compliances are fulfilled.
Through this Corporate Social Responsibility activities, 2.

Does the Company have strategies/ initiatives to
the Company aims to improve the lives of vulnerable, address global environmental issues such as climate
underprivileged and marginalised groups. change, global warming, etc.? Y/N. If yes, please give
hyperlink for webpage etc.

The Company undertakes Corporate Social
Responsibility(CSR) projects in the area of Educations, While the Company continues to grow at a rapid rate,
Healthcare, Women Empowerment and Eradicating it is becoming much more cautious and committed to
environmental preservation with the utmost care. The
96
Statutory Reports
Company has its own technologies and manufacturing 5. Has the Company undertaken any other initiatives
methods that are well-optimized. on – clean technology, energy efficiency, renewable
energy, etc. Y/N. If yes, please give hyperlink for web
hese procedures have been fine-tuned to enhance
T
page etc.
efficiency while decreasing natural resource
consumption and to achieve cleaner operations in order The Company has its own technologies, including well-
to reduce waste output. optimized manufacturing processes. These procedures
have been fine-tuned to enhance efficiency while
edicated programmes, such as tree-planting initiatives
D reducing natural resource consumption and to produce
in the surrounding areas and Zero Liquid Discharge cleaner operations in order to reduce waste output.
(ZLD) plant facilities, use of cleaner fuel like Natural Dedicated programmes, such as tree-planting initiatives
Gas, Car-pooling, waste reduction & recycling, use of in the surrounding areas and Zero Liquid Discharge
solar energy etc. that focus on energy and fuel savings, (ZLD) plant facilities that focus on energy and fuel
with reduction in Carbon footprints, thereby supporting savings, have been put in place to contribute positively
to minimize the impact of climate change. to environmental conservation.
I dentification of possible approaches to handle
The Company has undertaken multiple focused
environmental challenges by absorbing latest & initiatives in the mentioned areas.
newer technology which will help to create a more • rovision of a high-efficiency ATFD with a full-
P
environmentally friendly manufacturing facility. fledged ETP system to achieve ZLD, resulting in a
3.
Does the Company identify and assess potential 20–25% energy savings over a typical evaporation
system.
environmental risks? Y/N
• I nstallation of a rainwater harvesting system to save
eing a responsible organisation, we are conscious
B
and reuse rainwater during the monsoon season.
of our environmental performance and monitor all
This project allows us to conserve a valuable
operations to identify activities that may adversely resource such as water while also reducing our
impact the environment. facility’s water consumption.
We support by having a green chemistry across all our • Change of fuel from Furnace oil to Natural gas.
manufacturing facilities. Use of solvents is completely • Increased tree plantations within & periphery of
avoided in our manufacturing processes. We thoroughly our manufacturing sites.
follow all waste disposal criteria ensuring that no waste
• se of Solar lights & Sky pipes to replace use of
U
will go directly to the environment which may impact
electric lamps.
our surrounding environment.
• ED lighting installed throughout plant area, admin
L
4. Does the Company have any project related to Clean area and streets to conserve electricity.
Development Mechanism? If so, provide details
• se of VFD for motors and pumps to get the desired
U
thereof, in about 50 words or so. Also, if yes, whether
performance at optimum consumption of energy.
any environmental compliance report is filed?
6. Are the Emissions/Waste generated by the Company
Yes, the Company has installed a sophisticated analytical within the permissible limits given by CPCB/SPCB for
tool of Fourier Transform Near-Infrared Spectroscopy the financial year being reported?
(FTNIR) at the QC lab to complete a project linked to
Yes.
Clean Development Mechanism. This test facility aids in
the decrease of analysis time, the amount of chemicals 7. Number of show cause/ legal notices received from
required and the elimination of solvents. As a result of CPCB/SPCB which are pending (i.e., not resolved to
the AI-driven solution, we were able to achieve a quick satisfaction) as on end of Financial Year.
online report generating process, reduced lab safety NIL
hazards and improved data accuracy.
97
Principle 7: Businesses, when engaged in influencing oversees and monitors the implementation of all projects
public and regulatory policy, should do so in a responsible so that the beneficiaries get the most out of them.
manner
The web link where CSR Projects are disclosed on the
1. Is your Company a member of any trade and chamber website is - www.fineorganics.com/investor-relations/
or association? If Yes, Name only those major ones corporate-social-responsibility
that your business deals with:
3.
Have you done any impact assessment of your
Yes, the Company is a member of the following initiative?
Organisations:
Yes, it is an ongoing process. We monitor the number of
(a) Federation of Indian Export Organisations (FIEO)
beneficiaries impacted by the Company’s CSR initiatives
(b) Indo German Chamber of Commerce and the same is presented to the CSR Committee
(c) B
asic Chemicals, Cosmetics & Dyes Export periodically.
Promotion Council (Chemexcil)
4.
What is your Company’s direct contribution to
(d) Federation of Indian Chambers of Commerce and community development projects-amount in INR and
Industry (FICCI) the details of the projects undertaken?
(e) Oil Technologists Association of India (OTA)
The Company has taken various CSR initiatives for
2.
Have you advocated/lobbied through above support and development of society.
associations for the advancement or improvement of

The report on the CSR projects carried out by
public good? Yes/No; if yes specify the broad areas
the Company is annexed in the Annual Report as
(drop box: Governance and Administration, Economic
“Annexure B”
Reforms, Inclusive Development Policies, Energy
security, Water, Food Security, Sustainable Business 5. Have you taken steps to ensure that this community
Principles, Others) development initiative is successfully adopted by the
community? Please explain in 50 words, or so.
The Company recognises that the industry is improving
and progressing. In this regard, our goal is to work
The CSR effort for community development was
with all government entities and policymakers, and to implemented successfully. We also collaborate with
continue to implement good governance principles. organisations who have strong ties to and presence in
the local communities.
Principle 8: Businesses should support inclusive growth
and equitable development Principle 9: Businesses should engage with and provide
1. Does the Company have specified programmes/ value to their customers and consumers in a responsible
initiatives/projects in pursuit of the policy related to manner
Principle 8? If yes details thereof. 1. What percentage of customer complaints/consumer
cases are pending as on the end of financial year?
The Company is dedicated to conducting business in a
way that is economically, socially, and environmentally s on March 31, 2022, we have only 2.38% customer
A
sound. Our Company has a Corporate Social complaints unresolved exceeding the defined closure
Responsibility policy, and through CSR initiatives, we timeline of 15 days maximum. The Company has not
strive to reach out to the impoverished sections of received any complaints with regards to products
society by promoting education, healthcare and other quality, majority of the complaints we receive are
social services. related to damage caused to products during transit.
The Company follows the Why-Why methodology for
2.
Are the programmes/projects undertaken through
responding to customer complaints, identifying and
in-house team/own foundation/external NGO/
verifying root cause, implementing a long-term solution
government structures/any other organization?
to prevent recurring of the problems & leading to risk
To carry out CSR programs/projects, the Company identification. Enhancement of customer satisfaction is
interacts with external NGOs. Our CSR Committee the key element of our complaint handling process.
98
Statutory Reports
2. Does the Company display product information on 3. Is there any case filed by any stakeholder against
the product label, over and above what is mandated the Company regarding unfair trade practices,
as per local laws? Yes/No/N.A. /Remarks (additional irresponsible advertising and/or anti-competitive
information) behavior during the last five years and pending as on
end of financial year? If so, provide details thereof, in
Yes, the Company guarantees that relevant information
about 50 words or so.
is displayed on the product label in accordance with
industry requirements and standards. Customers are here are no cases received during the financial year
T
routinely provided with technical datasheets (TDS), with regard to unfair trade practices, irresponsible
safety datasheets (SDS) and regulatory documents advertising, and/or anti-competitive activity during
(PRD) (all in accordance with internationally recognised previous five years.
standards). If you have any unique requirements, you
4. Did your Company carry out any consumer survey/
can get the information you need from the Company’s
consumer satisfaction trends?
website or from the sales people who work with you.

Customer satisfaction is extremely important to

Yes, customer satisfaction is extremely important
the Company, which adheres to a customer-centric
to the Company as we adhere to a customer-centric
philosophy. As a result, customer satisfaction surveys
philosophy. As a result, customer satisfaction surveys
are undertaken on a regular basis (as part of ISO
are undertaken on a regular basis (as part of ISO
quality standards) to assess consumer satisfaction with
quality standards) to assess consumer satisfaction with
products and services and the score has always been
products and services related to those products. Our
above 90%.
Company’s greatest strength is its focus on delivering
the highest possible quality in a timely way.
Our Company’s greatest strength is its focus on
delivering the highest possible quality in a timely way.
Furthermore, to the best of their abilities, Company
Furthermore, to the best of their abilities, Company
professionals provide timely and superior quality
professionals provide timely and superior quality
solutions and services to any customer requirements.
solutions and services to any customer requirements.
99
FORM AOC-1
(Pursuant to first proviso to Sub-Section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries or associate companies or joint ventures.
PART A SUBSIDIARIES
(₹ in lakhs)
Sr. Name of Subsidiary Company Fine Organics Fine Organics
No. (USA) Inc. Europe BV
1 The date since when subsidiary was acquired July 29, 2013 February 10, 2016
2 Reporting period for the subsidiary concerned, if different from the holding company’s December 31, 2021 December 31, 2021
reporting period. (Financial Year ended on)
3 Reporting currency and exchange rate as on the last date of the relevant financial year in US$ 75.81 EURO 84.66
the case of foreign subsidiaries.
4 Share Capital 0.63 14.31
5 Reserves and Surplus 1,126.03 2,427.63
6 Total Assets 6,307.69 5,401.31
7 Total Liabilities 5,181.03 2,959.37
8 Investments - -
9 Turnover 8,674.08 9,577.90
10 Profit Before Taxation 1,537.72 2,167.22
11 Provision for Taxation 289.32 274.53
12 Profit After Taxation 1,248.40 1,892.69
13 Proposed Dividend - -
14 Extent of Shareholding (in Percentage) 100.00% 100.00%
Notes:
1. Names of Subsidiaries which are yet to commence operations: N.A
2. Names of Subsidiaries which have been liquidated or sold during the Year: N.A
3. The Management certified unaudited accounts of “Fine Organics (USA) Inc.” and “Fine Organics Europe BV” for the year ended March 31,
2022 has been considered for preparation of consolidated financial statements of the Company for the 2021-22. Accordingly, the above-
mentioned figures are as per the Financial Statements for the year ended March 31, 2022.
PART B ASSOCIATES AND JOINT VENTURES

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to associate Companies and joint ventures.
(₹ in lakhs)
Sr. Name of Associates or Fine Zeelandia Fine Organic
No. Joint Ventures Private Limited Industries (Thailand)
Co., Ltd.
1. Latest Audited Balance Sheet date March 31, 2022 December 31, 2021
2. Date on which the associate or joint venture was associated or acquired December 1, 2014 May 31, 2021
3. No. shares of associate or joint ventures held by the Company on the year end 40,284,250 22,500
I. Amount of investment in associates or joint venture 4,028.43 54.00
Ii. Extent of holding (in percentage) 50.00% 45.00%
4. Description of how there is significant influence Joint Venture Joint Venture
5. Reason why the associate/joint venture is not consolidated Consolidated Consolidated
6. Net worth attributable to shareholding as per latest audited balance sheet 6,065.75 112.46
7. Profit or (Loss) for the year (204.29) (1.63)
I. Considered in consolidation (102.15) (0.73)
Ii. Not considered in consolidation - -
1. Names of Associates or Joint Ventures which are yet to commence operations: Fine Organic Industries (Thailand) Co., Ltd.
2. ames of Associates or Joint Ventures which have been liquidated or sold during the year: FineADD Ingredients GmbH is under the Process
N
of liquidation.
3. The Management certified unaudited accounts of “Fine Organic Industries (Thailand) Co., Ltd.” for the year ended March 31, 2022 has been
considered for preparation consolidated financial statements of the Company for the 2021-22. Accordingly, the above-mentioned figures
are as per the Financial Statements for the year ended March 31, 2022. Further, the Group has not considered the losses in excess of its
investment in the Joint Venture.
For and on behalf of the Board of Directors

Mukesh Shah Jayen Shah Tushar Shah Pooja Lohor

Managing Director Director & CEO Director & CFO Company Secretary
DIN: 00106799 DIN: 00106919 DIN: 00107144 Membership No. A28397
Place: Mumbai
Date: May 27, 2022
100
Financial Statements
Independent Auditor’s Report
To, is sufficient and appropriate to provide a basis for our opinion

The Members of on Standalone Ind AS Financial Statements.
Fine Organic Industries Limited Emphasis of Matters

We draw attention to Note No. 7.1 of the Standalone Ind AS
Report on the Audit of the Standalone Ind AS
Financial Statements with respect to provision for diminution
in the value of it’s investment in Joint Venture Company
Opinion “FineADD Ingredients GmbH”.
Our opinion is not modified in respect of this matter.
We have audited the accompanying Standalone Ind AS
Financial Statements of Fine Organic Industries Limited Key Audit Matters
(herein referred to as “the Company”), which comprise Key Audit Matters are those matters that, in our professional
the Balance Sheet as at March 31, 2022, the Statement of judgment, were of most significance in our audit of the
Profit and Loss (including other comprehensive income), the Standalone Ind AS Financial Statements of the current
Statement of Changes in Equity, the Statement of Cash Flows period. These matters were addressed in the context of our
for the year then ended, and notes to the Standalone Ind AS audit of the Standalone Ind AS Financial Statements as a
Financial Statements, including a summary of the significant whole, and in forming our opinion thereon, and we do not
accounting policies and other explanatory information provide a separate opinion on these matters.
(Collectively referred to as “the Standalone Ind AS Financial We have determined the matters described below to be the
Statements”). key audit matters to be communicated in our report. We
In our opinion and to the best of our information and according have fulfilled the responsibilities described in the Auditor’s
to the explanations given to us, the aforesaid Standalone Ind responsibilities for the audit of the Standalone Ind AS
AS Financial Statements give the information required by Financial Statements section of our report, including in
the Companies Act, 2013 (herein referred to as “the Act”) relation to these matters. Accordingly, our audit included
in the manner so required and give a true and fair view in the performance of procedures designed to respond to our
conformity with the Indian Accounting Standards (herein assessment of the risks of material misstatement of the
referred to as “Ind AS”) prescribed under section 133 of the Standalone Ind AS Financial Statements. The results of our
Act read with the Companies (Indian Accounting Standards) audit procedures, including the procedures performed to
Rules, 2015, as amended and other accounting principles address the matters below, provide the basis for our audit
generally accepted in India, of the state of affairs of the opinion on the accompanying Standalone Ind AS Financial
Company as at March 31, 2022, and its profit (including other Statements.
comprehensive income), statement of changes in equity and A. Revenue Recognition
its cash flows for the year ended on that date. For the year ended March 31, 2022, the Company has
recognised revenue from contracts with customers
Basis for Opinion
amounting to ₹ 1,85,818.24 lakhs.
We conducted our audit in accordance with the Standards
Revenue from contracts with customers is recognised
on Auditing (SAs) specified under section 143(10) of the
when control of the goods or services are transferred
Act. Our responsibilities under those Standards are further
to the customer at an amount that reflects the
described in the Auditor’s Responsibilities for the Audit
consideration to which the Company expects to be
of Standalone Ind AS Financial Statements section of our
entitled in exchange for those goods or services.
report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered The Company has generally concluded that as principal,
Accountants of India (herein referred to as “the ICAI”) it typically controls the goods or services before
transferring them to the customer.
together with the ethical requirements that are relevant to
our audit of the Standalone Ind AS Financial Statements The variety of terms that define when controls are
under the provisions of the Act and the Rules made there transferred to the customer, as well as the high value of
under, and we have fulfilled our other ethical responsibilities the transactions, give rise to the risk that revenue is not
in accordance with these requirements and the ICAI’s Code recognised in the correct period.
of Ethics. We believe that the audit evidence obtained by us
101
Independent Auditor’s Report (Contd.)
Revenue is measured net of returns and allowances, •• The Company has provided confirmations from
cash discounts, trade discounts and volume rebates customers on sample basis to support existence
(collectively ‘discount and rebates’). There is a risk that assertion of trade receivables and assessed the relevant
these discount and rebates are incorrectly recorded as disclosures made in the Standalone Ind AS Financial
it also requires a certain degree of estimation, resulting Statements; to ensure revenue from contracts with
in understatement of the associated expenses and customers are in accordance with the requirements of
accrual. relevant Indian accounting standards (Ind AS).
Revenue is also an important element of how the B. Capitalisation of Property, Plant and Equipment
Company measures its performance. The Company During the year ended March 31, 2022, the Company has
focusses on revenue as a key performance measure, capitalised significant part of plant namely ‘E – 73’ located
which could create an incentive for revenue to be at Patalganga (Maharashtra) to expand the Company’s
recognised before the risk and rewards have been production capacity. Out of the total addition of
transferred. ₹ 7,318.00 lakhs towards Property, Plant and Equipment
Accordingly, due to the significant risk associated with as per Standalone Ind AS Financial Statements,
revenue recognition in accordance with terms of Ind AS ₹ 6,171.95 lakhs were pertaining to Plant E-73. Plant
115 ‘Revenue from contracts with customers’, it was has been successfully commissioned and capitalised
determined to be a key audit matter in our audit of the during the year.
Standalone Ind AS Financial Statements. Significant level of judgement is involved to ensure that
{Refer to note no. 29 of the Standalone Ind AS Financial the aforesaid capital expenditure / additions meet the
Statements}. recognition criteria of Ind AS 16 - Property, Plant and
Auditors’ Response: Equipment, specifically in relation to costs directly and
indirectly associated with it to be ready for intended
Our audit procedures included the following:
use. As a result, the aforesaid matter was determined to
•• Assessed the Company’s revenue recognition procedure
be a key audit matter.
as per Ind AS 115 ‘Revenue from contracts with
{Refer to note no. 4 & 5 of the Standalone Ind AS
customers’.
Financial Statements}
•• Assessed the design and tested the operating
Auditors’ Response:
effectiveness of internal controls related to revenue
recognition, discounts and rebates. •• Performed walk-through of the capitalisation process
and tested the design and operating effectiveness of the
•• Performed sample tests of individual sales transaction
controls in the process.
and traced to sales invoices, sales orders and other
related documents. Further, in respect of these samples, •• Assessed the nature of the additions made to Property,
checked that the revenue has been recognised as per Plant and Equipment and Capital Work-in-Progress
the terms. (CWIP) on a test check basis to test that they meet the
recognition criteria as set out in Ind AS 16, including any
•• To test cut off selected sample of sales transactions
such costs directly and indirectly associated with it to be
made pre and post-year end, agreeing the period of
ready for intended use.
revenue recognition to third party support, such as
transporter invoice and customer confirmation of •• Reviewed the Capitalisation Certificate provided by the
receipt of goods. Management to determine whether the asset is in the
location and condition necessary for it to be capable of
•• Tested the provision calculations related to discounts
operating in the manner intended by the Management.
and rebates by agreeing a sample of amounts recognised
to underlying arrangements with customers and other C. Allowance for Credit Losses
supporting documents. The Company applies ‘simplified approach’ which
•• Performed analytical procedures of revenue by streams requires expected lifetime losses to be recognised
to identify any unusual trends. from initial recognition of the trade receivables. The
Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables
102
and adjusted to reflect current and estimated future {Refer to note no. 40 of the Standalone Ind AS Financial
economic conditions of its customers, their industry and Statements}
geography of operations. Auditors’ Response:
At every reporting date these historical default rates are •• The Company has provided details of all pending
reviewed and changes in the forward looking estimates assessments and demands for the year ended March
are analysed. 31, 2022.
In calculating expected credit loss, the Company also •• We have obtained Management note / view on possible
considers other related information for its customers, outcome and its impact on financial position of the
including credit periods, to estimate the probability of Company for all pending assessments and disputed
default in future and has taken into account estimates matters under litigations.
of possible effect from any uncertain events / litigations
etc. The Management has exercised significant Information Other than the Standalone Ind
judgement in estimating the allowance for credit losses. AS Financial Statements and Auditor’s Report
(Refer to note no. 13 of the Standalone Ind AS Financial Thereon
Statements) The Company’s Board of Directors is responsible for the
other information. The other information comprises the
Auditor’s Response:
information included in the Directors’ report including
Our audit procedures to test the effectiveness of controls Annexures to Directors’ Report, Management Discussion and
over allowances for credit loss includes the following, but Analysis Report, Business Responsibility Report, but does
were not limited to: not include the Consolidated Ind AS Financial Statements,
•• Trade Receivables ageing report as on balance sheet Standalone Ind AS Financial Statements and our auditor’s
date report thereon.
•• Development of the expected credit model for the Our opinion on the Standalone Ind AS Financial Statements
allowance for credit losses, including consideration of does not cover the other information and we do not express
the current and estimated future economic conditions. any form of assurance conclusion thereon.
•• Completeness and accuracy of information used in the In connection with our audit of the Standalone Ind AS
estimation of probability of default Financial Statements, our responsibility is to read the other
•• Status of recovery trade receivables as on the report information and, in doing so, consider whether the other
date out of the total outstanding as at March 31, 2022 information is materially inconsistent with the Standalone Ind
AS Financial Statements or our knowledge obtained during
•• Verification of calculation of the allowance for credit
the course of audit or otherwise appears to be materially
losses
misstated.
•• Testing the arithmetical accuracy and computation of
If based on the work we have performed we conclude that
the allowance prepared by the Management.
there is a material misstatement of this other information, we
•• Testing the allowance for credit loss through alternate are required to report that fact. We have nothing to report in
scenarios, including profiling of customers based this regard.
on their attributes with various sensitivities around
approach, the assumptions and reviewing the possible Management’s Responsibility for the Standalone
effect of any uncertain events / litigations to validate the Ind AS Financial Statements
Management estimates. The Company’s Board of Directors are responsible for
D. Evaluation of uncertain tax imposition the matters specified in section 134(5) of the Act with
respect to the preparation of these Standalone Ind AS
The Company has material uncertain tax imposition
Financial Statements that give a true and fair view of the
including matters under dispute which involves
financial position, financial performance including other
significant judgement to determine the possible
comprehensive income, changes in equity and cash flows
outcome of these disputes.
of the Company in accordance with the Indian accounting
Standards specified under Section 133 of the Act, read with
103
the Companies (Indian Accounting Standards) Rules, 2015 evidence that is sufficient and appropriate to provide a
(as amended) and accounting principles generally accepted basis for our opinion. The risk of not detecting a material
in India. This responsibility also includes the maintenance misstatement resulting from fraud is higher than for
of adequate accounting records in accordance with the one resulting from error, as fraud may involve collusion,
provisions of the Act for safeguarding of the assets of the forgery, intentional omissions, misrepresentations, or
Company and for preventing and detecting the frauds and the override of internal control.
other irregularities, selection and application of appropriate •• Obtain an understanding of internal financial control
accounting policies, making judgments and estimates that relevant to the audit in order to design audit procedures
are reasonable and prudent, and design, implementation and that are appropriate in the circumstances. Under
maintenance of internal financial controls, that were operating section 143(3)(i) of the Act, we are also responsible for
effectively for ensuring the accuracy and completeness of expressing our opinion on whether the Company has
the accounting records, relevant to the preparation and adequate internal financial controls system in place and
presentation of the Standalone Ind AS Financial statements the operating effectiveness of such controls.
that give a true and fair view and are free from material
•• Evaluate the appropriateness of the accounting policies
misstatement, whether due to fraud or error.
used and the reasonableness of accounting estimates
In preparing the Standalone Ind AS Financial Statements, and related disclosures made by the Management.
Management and Board of Directors are responsible for
•• Conclude on the appropriateness of the Management’s
assessing the Company’s ability to continue as a going
use of the going concern basis of accounting and, based
concern, disclosing, as applicable, matters related to going
on the audit evidence obtained, whether a material
concern and using the going concern basis of accounting
uncertainty exists related to events or conditions that
unless Management either intends to liquidate the Company
may cast significant doubt on the Company’s ability
or to cease operations, or has no realistic alternative but to
to continue as a going concern. If we conclude that a
do so.
material uncertainty exists, we are required to draw
The Board of Directors are also responsible for overseeing attention in our auditor’s report to the related disclosures
the Company’s financial reporting process. in the Standalone Ind AS Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our
Auditor’s Responsibility for the Audit of the
conclusions are based on the audit evidence obtained
Standalone Ind AS Financial Statements
up to the date of our auditor’s report. However, future
Our objectives are to obtain reasonable assurance about
events or conditions may cause the Company to cease
whether the Standalone Ind AS Financial Statements as a
to continue as a going concern.
whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes •• Evaluate the overall presentation, structure and
our opinion. Reasonable Assurance is a high level of assurance content of the Standalone Ind AS Financial Statements,
but is not a guarantee that an audit conducted in accordance including the disclosures, and whether the Standalone
with SAs will always detect a material misstatement when it Ind AS Financial Statements represent the underlying
exists. Misstatements can arise from fraud or error and are transactions and events in a manner that achieves fair
considered material if, individually or in the aggregate, they presentation.
could reasonably be expected to influence the economic We communicate with those charged with governance
decisions of users taken on the basis of these Standalone Ind regarding, among other matters, the planned scope and
AS Financial Statements. timing of the audit and significant audit findings, including
As part of an audit in accordance with SAs, we exercise any significant deficiencies in internal control that we identify
professional judgment and maintain professional skepticism during our audit.
throughout the audit. We also: We also provide those charged with governance with a
•• Identify and assess the risk of material misstatement statement that we have complied with relevant ethical
of the Standalone Ind AS Financial Statements, requirements regarding independence, and to communicate
whether due to fraud or error, design and perform audit with them all relationships and other matters that may
procedures responsive to those risks, and obtain audit reasonably be thought to bear on our independence, and
where applicable, related safeguards.
104
From the matters communicated with those charged with f) With respect to the adequacy of the internal financial
governance, we determine those matters that were of most controls over financial reporting of the Company and
significance in the audit of the Standalone Ind AS Financial the operating effectiveness of such controls; refer to our
Statements of the current period and are therefore the key separate report in ‘Annexure – II’. Our report expresses
audit matters. We describe these matters in our auditor’s an unmodified opinion on the adequacy and operating
report unless law or regulation precludes public disclosure effectiveness of the Company’s internal financial
about the matter or when, in extremely rare circumstances, controls over financial reporting.
we determine that a matter should not be communicated (2) With respect to the other matters to be included in the
in our report because the adverse consequences of doing Auditor’s Report in accordance with Rule 11 of the Companies
so would reasonably be expected to outweigh the public (Audit and Auditors) Rules, 2014 (as amended), in our
interest benefits of such communication. opinion and to the best of our information and according to
the explanations given to us:
Report on Other Legal and Regulatory
Requirements a) The Company has disclosed the impact of pending
(1) As required by the Companies (Auditor’s Report) Order, litigations on its financial position, if any in its Standalone
2020 (“the Order”), issued by the Central Government in Ind AS Financial Statements.
terms of Section 143(11) of the Act, we give in the ‘Annexure – I’ b) The Company has made Provision, as required under
a statement on the matters specified in paragraph 3 and 4 of the applicable law or accounting standards, for material
the Order, to the extent applicable. foreseeable losses, if any, on long-term contracts
As required by Section 143(3) of the Act, based on our audit, including derivative contracts in its Standalone Ind AS
we report to the extent applicable that: Financial Statements.
a) We have sought and obtained all the information and c) There were no amounts which were required to be
explanations which to the best of our knowledge and transferred to the Investor Education and Protection
belief were necessary for the purposes of our audit of Fund by the Company.
the aforesaid Standalone Ind AS Financial Statements. d) This clause is omitted vide notification dated March
b) In our opinion, proper books of account as required by 24, 2021, in the Companies (Audit and Auditors)
law relating to preparation of the aforesaid Standalone Amendment Rules, 2021 effective from April 1, 2021.
Ind AS Financial Statements have been kept so far as it e)(i) The Management has represented that, to the best of
appears from our examination of those books. its knowledge and belief, no funds have been advanced
c) The Balance Sheet, the Statement of Profit and Loss or loaned or invested (either from borrowed funds or
(including other comprehensive income), Statement share premium or any other sources or kind of funds)
of Changes in Equity and the Statement of Cash Flows by the Company to or in any other persons or entities,
dealt with by this Report are in agreement with the including foreign entities (“Intermediaries”), with
relevant books of account. the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:
d) In our opinion, the aforesaid Standalone Ind AS
Financial Statements comply with the Indian Accounting •• directly or indirectly lend or invest in other persons
Standards prescribed under Section 133 of the Act, read or entities identified in any manner whatsoever
with Companies (Indian Accounting Standards) Rule, (“Ultimate Beneficiaries”) by or on behalf of the
2015 (as amended). Company or
e) On the basis of the written representations received •• provide any guarantee, security or the like to or on
from the Directors of the Company as on March 31, behalf of the Ultimate Beneficiaries.
2022, taken on record by the Board of Directors of (ii) The Management has represented, that, to the best
the Company, none of the directors of the Company of its knowledge and belief, no funds have been
incorporated in India is disqualified as on March 31, received by the Company from any persons or entities,
2022, from being appointed as a director in terms of including foreign entities (“Funding Parties”), with
Section 164(2) of the Act. the understanding, whether recorded in writing or
otherwise, that the Company shall:
105
•• directly or indirectly, lend or invest in other persons requirements for record retention has been postponed
or entities identified in any manner whatsoever from financial year commencing on or after the April
(“Ultimate Beneficiaries”) by or on behalf of the 1, 2022 vide notification dated April 1, 2021 in the
Funding Party or companies (Audit and Auditors) Second Amendment
•• provide any guarantee, security or the like from or Rules, 2021.
on behalf of the Ultimate Beneficiaries; and With respect to the other matters to be included in the
(iii)
Based on such audit procedures as considered Auditor’s Report in accordance with the requirements of
reasonable and appropriate in the circumstances, section 197(16) of the Act, as amended:
nothing has come to our notice that has caused us to In our opinion and according to the information and
believe that the representations under subclause (e) (i) explanations given to us, the remuneration paid / provided
and (e) (ii) contain any material misstatement. by the Company to its directors during the current year is in
f) The final dividend paid by the Company during the year accordance with the provisions of Section 197 of the Act.
in respect of the same declared for the previous year is The remuneration paid to any director is not in excess of the
in accordance with section 123 of the Companies Act limit laid down under Section 197 of the Act. The Ministry
2013 to the extent it applies to payment of dividend. of Corporate Affairs has not prescribed other details under
Section 197(16) which are required to be commented upon
As stated in note no. 40 to the Standalone Ind AS
by us.
Financial Statements, the Board of Directors of the
Company have proposed final dividend for the year ICAI UDIN: 22043908AJTKCF6257
which is subject to the approval of the members at the
ensuing Annual General Meeting. The dividend declared For B Y & Associates
is in accordance with section 123 of the Act to the extent Chartered Accountants
it applies to declaration of dividend ICAI Firm Registration Number: 123423W
g) This clause pertaining to accounting software for
maintaining its books of account which has a feature of
CA Bhavesh Vora
recording audit trail (edit log) facility and the same has
Partner
been operated throughout the year for all transactions
Membership Number: 043908
recorded in the software and the audit trail feature
has not been tampered with and the audit trail has Date : May 27, 2022
been preserved by the Company as per the statutory Place : Mumbai
106
‘Annexure – I’ to the Independent Auditors’ Report

Referred to in paragraph (1) under “Report on other legal and regulatory requirements’’ of the independent auditor’s report
of even date to the members of Fine Organic Industries Limited on the Standalone Ind AS Financial Statements for the year
ended March 31, 2022.
Based on the audit procedures performed for the purpose Hence reporting under Clause 3(i)(d) of the said
of reporting a true and fair view on the Standalone Ind Order is not applicable to the Company.
AS Financial Statements of the Company and taking into (e) According to the information and explanation
consideration the information and explanations given to us provided by the Management and the records
and the books of account and other records examined by us in examined by us, there are no proceedings initiated
the normal course of audit, and to the best of our knowledge during the year and/or are pending during any of the
and belief, we report that: preceding financial years against the Company for
(i)(a)(A) According to the information and explanation holding any Benami Property under the Prohibition
provided by Management and the records of Benami Property Transactions Act, 1988 (as
examined by us, the Company has maintained amended in 2016) and rules made thereunder.
proper records showing full particulars including Therefore, reporting under Clause 3(i)(e) of the
quantitative details and situation of the Property, said Order is not applicable to the Company.
Plant and Equipment. (ii) (a) The inventory has been physically verified during
(a)(B) According to the information and explanation the year by the Management. In our opinion, the
provided by the Management and the records procedures for physical verification of inventories
examined by us, the Company has maintained followed by the Management are reasonable and
proper records showing full particulars including adequate in relation to the size of the Company and
quantitative details of the Intangible Assets. the nature of its business.
(b) According to the information and explanation According to the information and explanation
provided by the Management and the records provided by the Management and the records
examined by us, the Company has a programme examined by us, we are of the opinion that no
of physical verification to cover all the items of discrepancies of 10% or more in the aggregate for
Property, Plant & Equipment in a phased manner each class of inventory were noticed.
over a period of three years. In accordance with the (b) The Company has been sanctioned with working
programme, certain Property, Plant & Equipment capital limits in excess of five crore rupees, in
were physically verified by the Management during aggregate, from banks or financial institutions
the year. In our opinion, this periodicity of physical against the security of its current assets. As
verification is reasonable having regards to the per information and explanation provided by
size of the Company and nature of its assets. No the Management and the records examined by
material discrepancies were noticed on such us, compliance with documentation for such
verification. sanctioning is yet to be done. Accordingly, reporting
(c) According to the information and explanation under clause 3(ii)(b) of the said Order for quarterly
provided by Management and the records examined returns or statements filed by the Company with
by us, the Title Deeds of all the Immovable banks or financial institutions are in agreement
Properties (other than properties where the with the books of account of the Company is not
Company is lessee and the lease agreements are applicable to the Company.
duly executed in the favour of lessee) disclosed in (iii) According to the information and explanation provided
the Standalone Ind AS Financial Statements are by the Management and the records examined by
held in the name of the Company. us, during the year, the Company has not provided
(d) According to the information and explanation any guarantee or security or granted any loans or
provided by the Management and the records advances in the nature of loans, secured or unsecured,
examined by us, the Company is following the to companies, firms, limited liability partnership or any
Cost Model for accounting of Property, Plant & other parties during the year.
Equipment and accordingly, revaluation of its The Company has made investment in one Joint Venture
Property, Plant and Equipment (including Right of Company during the year. Details of investment is given
Use assets) and Intangible Assets is not permitted. below:
107
‘Annexure – I’ to the Independent Auditors’ Report (Contd.)
(₹ in lakhs) (iv) According to the information and explanation provided

by the Management and the records examined by
Aggregate amount invested during the year 54.00
us, the Company has, wherever applicable, complied
Balance Outstanding as at balance sheet date 54.00
the provisions of Section 185 and Section 186 of the
(b) According to the information and explanation Companies Act, 2013 in respect of loans, investments,
provided by the Management and the records guarantees and security.
examined by us, terms and conditions of
(v) According to the information and explanation provided
investments made during the year are not
by the Management and the records examined by us, the
prejudicial to the Company’s interest.
Company has not accepted deposits / amounts deemed
The Company has not provided any guarantee to be deposits as per the directive issued by Reserve
or security or granted any loans or advances in Bank of India and the provision of the section 73 to 76
the nature of loans, secured or unsecured, to or any other relevant provisions of the Companies Act,
companies, firms, limited liability partnership or 2013 and rule made thereunder. Hence reporting under
any other parties during the year. clause 3(v) of the said Order is not applicable to the
(c) The Company has not given any loans and advances Company.
in the nature of loans. Hence reporting under (vi) The Central Government has prescribed maintenance
clause 3(iii)(c) of the said Order is not applicable of cost records under sub-section (1) of Section 148 of
to the Company for whether the schedule of the Companies Act, 2013. According to the information
repayment of principal and payment of interest has and explanation provided by the Management and the
been stipulated and the repayments or receipts are records examined by us, such accounts and records
regular. have been made and maintained by the Company.
(d) The Company has not given any loans and advances (vii) (a) According to the information and explanation
in the nature of loans. Hence reporting under clause provided by the Management and the records
3(iii)(d) of the said Order is not applicable to the examined by us, in respect of statutory dues
Company for overdue of loans for more than ninety including Provident Fund, Employees State
days and reasonable steps have been taken by the Insurance Scheme, Income tax, Sales tax, Wealth
Company for recovery of principal and interest. Tax, Service Tax, Goods and Service Tax, Customs
(e) According to the information and explanation Duty, Excise Duty and Cess have generally
provided by the Management and the records been deposited regularly with the appropriate
examined by us, the Company has not renewed authorities, as appearing in the books of accounts.
or extended or granted any fresh loans to settle Further, there are no dues undisputed in respect
the overdue of existing loans given to the same of Income tax, Sales tax, Wealth Tax, Service Tax,
parties which has fallen due during the year. Hence Goods and Service Tax, Customs Duty, Excise Duty
reporting under clause 3(iii)(e) of the said Order is and Cess outstanding as at Balance Sheet date for
not applicable to the Company. a period of more than six months from the date
(f) According to the information and explanation they became payable.
provided by the Management and the records (b) According to the information and explanation
examined by us, the Company has not granted loans provided by the Management and the records
or advances in the nature of loans to promoters / examined by us, Details of statutory dues referred
related parties (as defined in section 2(76) of the to in sub-clause (a) which have not been deposited
Companies Act, 2013) which are either repayable as on the Balance Sheet date on account of any
on demand or without specifying any terms or dispute are given below:
period of repayment. Hence reporting under clause
3(iii)(f) of the said Order is not applicable to the
Company.
108
Name of the Statute Nature of Amount Period to which the Forum where dispute is Remarks,
Dues (₹ in lakhs) amount relates pending if any
Income Tax Act, 1961 Income Tax 3.34 April 2005 to March 2006 Hon’ble High Court, Bombay -
Income Tax Act, 1961 Income Tax 6.11 April 2009 to March 2010 Hon’ble High Court, Bombay -
Income Tax Act, 1961 Income Tax 149.17 April 2015 to March 2016 Commissioner of Income Tax -
(Appeal), Mumbai
Income Tax Act, 1961 Income Tax 416.34 April 2017 to March 2018 Commissioner of Income Tax -
(Appeal), Mumbai
MVAT Act 2006 VAT 27.16 April 2014 to March 2015 Department of Sales Tax -
(viii) According to the information and explanation provided examined by us, the Company has not utilised funds
by the Management and the records examined by us, obtained from any entity or person on account to
the Company has not surrendered or disclosed any meet the obligations of its Subsidiaries and Joint
income during the year in the tax assessments under Venture Companies. Hence reporting under clause
the Income Tax Act, 1961, which is not recorded in the 3(ix)(e) of the said Order is not applicable to the
Books of Accounts. Hence reporting under clause 3(viii) Company.
of the said Order is not applicable to the Company. (f) According to the information and explanation
(ix) (a) According to the information and explanation provided by the Management and the records
provided by the Management and the records examined by us, the Company has not raised any
examined by us, the Company has not defaulted in loans during the year on the pledge of securities
repayment of loans or other borrowings or in the held in its Subsidiaries and Joint Venture
payment of interest thereon to any lender during Companies. Hence reporting under clause 3(ix)(f)
the year. Hence reporting under clause 3(ix)(a) of of the said Order is not applicable to the Company.
the said Order is not applicable to the Company. (x) (a) According to the information and explanation
(b) According to the information and explanation provided by the Management and the records
provided by the Management and the records examined by us, the Company has not raised
examined by us, the Company has not been money by way of initial public offer or further
declared as willful defaulter by any bank or financial public offer (including debt instruments). Hence
institution or other lender during the year. reporting under clause 3(x)(a) of the said Order is
(c) According to the information and explanation not applicable to the Company.
provided by the Management and the records (b) According to the information and explanation
examined by us, the term loans obtained by the provided by the Management and the records
Company has been applied for the purpose for examined by us, the Company has not made any
which it is obtained, and no amount of loan has preferential allotment or private placements of
been diverted. Hence reporting under clause shares or fully or partly convertible debentures
3(ix)(c) of the said Order is not applicable to the during the year. Hence reporting under clause
Company. 3(x)(b) of the said Order is not applicable to the
(d) According to the information and explanation Company.
provided by the Management and the records (xi) (a) According to the information and explanation
examined by us, the funds raised on short term provided by the Management and the records
basis have not been utilised for long term purposes examined by us, no fraud has been noticed or
during the year. Hence reporting under clause reported during the year on the Company or by the
3(ix)(d) of the said Order is not applicable to the Company. Hence reporting under clause 3(xi)(a) of
Company. the said Order is not applicable to the Company.
(e) According to the information and explanation (b) Since no fraud has been noticed or reported during
provided by the Management and the records the year on the Company or by the Company, no
109
report under sub-section (12) of Section 143 of the any Non-Banking Financial or Housing Finance
Companies Act, 2013 is required to be filed by the activities. Hence, reporting under clause 3(xvi)(b)
auditors in Form ADT-4 as prescribed under rule of the said Order is not applicable to the Company.
13 of Companies (Audit and Auditors) Rules, 2014 (c) According to the information and explanation
(as amended) with the Central Government. Hence provided by the Management and the records
reporting under clause 3(xi)(b) of the said Order is examined by us, the Company is not a Core
not applicable to the Company. Investment Company (CIC) as defined in the
(c) According to the information and explanation regulations made by the Reserve Bank of India.
provided by the Management and the records Hence, reporting under clause 3(xvi)(c) of the said
examined by us, no whistle-blower complaint has Order is not applicable to the Company.
been received by the Company during the year. (d) According to the information and explanation
Hence reporting under clause 3(xi)(c) of the said provided by the Management and the records
Order is not applicable to the Company. examined by us, the Company is not a Core
(xii) According to the information and explanation provided Investment Company (CIC) as defined in the
by the Management and the records examined by us, regulations made by the Reserve Bank of India.
the Company is not covered under the category of Nidhi Hence, reporting under clause 3(xvi)(d) of the said
company. Hence reporting under clause 3(xii)(a) to (c) of Order, for the Group not having any other CIC as a
the said Order is not applicable to the Company. part of the Group is not applicable to the Company.
(xiii) According to the information and explanation provided (xvii) According to the information and explanation provided
by the Management and the records examined by us, by the Management and the records examined by
the Company has complied with Section 177 and 188 of us, the Company has not incurred any cash losses in
Companies Act, 2013 in respect of all transactions with the financial year and in the immediately preceding
related parties and details have been disclosed in the financial year. Hence reporting under clause 3(xvii) of
Standalone Ind AS Financial Statements as required by the said Order is not applicable to the Company.
the applicable Indian Accounting Standards. (xviii) According to the information and explanation provided
(xiv) (a) According to the information and explanation by the Management and the records examined by us,
provided by the Management and the records there has been no resignation of the statutory auditors
examined by us, the Company has an internal audit of the Company during the year. Hence reporting under
system commensurate with the size and nature of clause 3(xviii) of the said Order is not applicable to the
its business. Company.
(b) The reports of the Internal Auditors for the period (xix) According to the information and explanation provided
under audit are considered by us and has been by the Management and on the basis of the financial
dealt with, as per SA – 610 issued by the Institute ratios, ageing and expected dates of realisation of
of Chartered Accountants of India. financial assets and payment of financial liabilities,
(xv) According to the information and explanation provided other information accompanying the Standalone Ind
by the Management and the records examined by us, AS Financial Statements examined by us, we are of the
the Company has, wherever applicable, complied with opinion that no material uncertainty exists as on the
provisions of Section 192 of the Companies Act, 2013 date of the audit report that the Company is not capable
in respect of any non-cash transactions entered with of meeting its liabilities existing at the date of balance
directors or persons connected with him. sheet as and when they fall due within a period of one
year from the balance sheet date.
(xvi) (a) The Company is not required to be registered
under Section 45-IA of the Reserve Bank of India (xx) (a) According to the information and explanation
Act, 1934. provided by the Management and the records
examined by us, the Company has spent the
(b) According to the information and explanation
amount of ₹ 218.96 lakhs in respect of other than
provided by the Management and the records
ongoing projects during the year and no amount
examined by us, the Company has not conducted
remaining to be spent for the Financial Year 2022-
110
23. Hence reporting under clause 3(xx)(a) of the (b) According to the information and explanation
said Order is not applicable to the Company for provided by the Management and the records
transferred of unspent amount to a fund specified examined by us, the Company has spent the amount
in Schedule VII to the Companies Act, 2013 within of ₹ 17.00 lakhs in respect of ongoing projects
a period of six months of the expiry of the financial during the year and amount remain unspent of
year in compliance with second proviso to section ₹ 163.92 lakhs (including ₹ 2.00 lakhs for GST
135(5). refund from contractor of CSR Project) has been
transferred to special account for compliance with
the provision of section 135(5) of the Companies
Act, 2013.
ICAI UDIN: 22043908AJTKCF6257
For B Y & Associates
Chartered Accountants
ICAI Firm Registration Number: 123423W
CA Bhavesh Vora
Partner
Date : May 27, 2022

Place : Mumbai
111
‘Annexure – II’ to the Independent Auditors’ Report
Referred to in paragraph 1(f) under ‘‘Report on other legal and regulatory requirements’’ of the independent auditor’s report
of even date to the members of Fine Organic Industries Limited on the Standalone Ind AS Financial Statements for the year
ended March 31, 2022.
Report on the Internal Financial Controls with reference to internal financial controls over financial reporting
the Standalone Ind AS Financial Statements under Clause (i) was established and maintained and if such controls
of Sub-section 3 of Section 143 of the Companies Act, 2013 operated effectively in all material respects.
(‘the Act’) 4. Our audit involves performing procedures to obtain audit
1. In conjunction with our audit of the Standalone Ind evidence about the adequacy of the internal financial
AS Financial Statements of the Company as of and for controls system over financial reporting and their
the year ended March 31, 2022, we have audited the operating effectiveness. Our audit of internal financial
internal financial controls over financial reporting of controls over financial reporting included obtaining
Fine Organic Industries Limited (hereinafter referred to an understanding of internal financial controls over
as ‘the Company’) as on that date. financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design
Management’s Responsibility for Internal
and operating effectiveness of internal control based on
Financial Controls
the assessed risk. The procedures selected depend on
2. The Company’s Management is responsible for
the auditor’s judgment, including the assessment of the
establishing and maintaining internal financial controls
risks of material misstatement of the Standalone Ind AS
based on the internal control over financial reporting
Financial Statements, whether due to fraud or error.
criteria established by the Company considering the
5. We believe that the audit evidence we have obtained is
essential components of internal control stated in the
sufficient and appropriate to provide a basis for our audit
Guidance Note on Audit of Internal Financial Controls
opinion on the Company’s internal financial controls
Over Financial Reporting issued by the Institute of
system over financial reporting.
Chartered Accountants of India (hereinafter referred
to as “the ICAI”). These responsibilities include the Meaning of Internal Financial Controls Over
design, implementation and maintenance of adequate Financial Reporting
internal financial controls that were operating effectively 6. A Company’s internal financial control over financial
for ensuring the orderly and efficient conduct of its reporting is a process designed to provide reasonable
business, the safeguarding of its assets, the prevention assurance regarding the reliability of financial reporting
and detection of frauds and errors, the accuracy and and the preparation of Standalone Ind AS Financial
completeness of the accounting records, and the timely Statements for external purposes in accordance with
preparation of reliable financial information, as required generally accepted accounting principles. A Company’s
under the Act. internal financial control over financial reporting
Auditor’s Responsibility includes those policies and procedures that (1) pertain
3. Our responsibility is to express an opinion on the to the maintenance of records that, in reasonable
internal financial controls over financial reporting of detail, accurately and fairly reflect the transactions and
the Company based on our audit. We conducted our dispositions of the assets of the Company; (2) provide
audit in accordance with the Guidance Note on Audit reasonable assurance that transactions are recorded
of Internal Financial Controls Over Financial Reporting as necessary to permit preparation of Standalone Ind
(the ‘Guidance Note’) issued by the ICAI and the AS Financial Statements in accordance with generally
Standards on Auditing, issued by the ICAI and deemed accepted accounting principles, and that receipts and
to be prescribed under Section 143(10) of the Act, to expenditures of the Company are being made only in
the extent applicable to an audit of internal financial accordance with authorisations of the Management and
controls, both applicable to an audit of Internal Financial directors of the Company; and (3) provide reasonable
Controls and, both issued by the ICAI. Those Standards assurance regarding prevention or timely detection
and the Guidance Note require that we comply with of unauthorised acquisition, use, or disposition of the
ethical requirements and plan and perform the audit to Company’s assets that could have a material effect on
obtain reasonable assurance about whether adequate the Standalone Ind AS Financial Statements.
112
‘Annexure – II’ to the Independent Auditors’ Report (Contd.)
Inherent Limitations of Internal Financial such internal financial controls over financial reporting
Controls Over Financial Reporting were operating effectively as at March 31, 2022,
7. Because of the inherent limitations of internal financial based on the criteria for internal financial control over
controls over financial reporting, including the possibility financial reporting criteria established by the Company
of collusion or improper Management override of considering the essential components of internal control
controls, material misstatements due to error or fraud stated in the Guidance Note issued by the ICAI.
may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over
ICAI UDIN: 22043908AJTKCF6257
financial reporting to future periods are subject to the
For B Y & Associates
risk that the internal financial control over financial
reporting may become inadequate because of changes
ICAI Firm Registration Number: 123423W
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
CA Bhavesh Vora
Opinion Partner
8. In our opinion, to the best of our information and
according to the explanations given to us, the Company
has, in all material respects, an adequate internal Date : May 27, 2022
financial controls system over financial reporting and Place : Mumbai
113
Standalone Balance Sheet
as at March 31, 2022
(` in lakhs)
Particulars Notes Figures As at Figures As at
March 31, 2022 March 31, 2021
ASSETS
A) Non Current Assets
Property, Plant and Equipment Note 4 22,873.07 19,530.67
Capital Work-in Progress Note 5 1,412.47 2,630.42
Intangible Assets Note 6 57.11 54.18
Financial Assets
- Investments Note 7 4,311.23 4,367.35
- Loans Note 8 131.59 403.05
- Others Note 9 373.27 255.72
Deferred Tax Assets (Net) Note 10 782.88 733.98
Other Non-current Assets Note 11 6,096.30 6,211.97
Total Non Current Assets (A) 36,037.92 34,187.34
B) Current Assets
Inventories Note 12 20,165.09 10,892.56
Financial Assets
- Trade Receivables Note 13 33,159.08 17,517.35
- Cash and Cash Equivalents Note 14 20,931.54 25,640.72
- Bank Balances Note 15 648.03 477.01
- Others Note 16 24.14 23.96
Current Tax Assets (Net) Note 17 654.47 526.99
Other Current Assets Note 18 11,161.91 6,341.35
Total Current Assets (B) 86,744.26 61,419.94
Total Assets (A + B) 1,22,782.18 95,607.28
EQUITY AND LIABILITIES
A) Equity
Equity Share Capital Note 19 1,533.00 1,533.00
Other Equity Note 20 94,316.60 72,350.77
Total Equity (A) 95,849.60 73,883.77
Liabilities
B) Non Current Liabilities
Financial Liabilities
- Borrowings Note 21 2,508.32 5,674.43
- Others Note 22 86.61 435.30
Total Non Current Liabilities (B) 2,594.93 6,109.73
C) Current Liabilities
- Borrowings Note 23 3,344.43 3,242.85
- Trade Payables Note 24
(a) Total outstanding dues of micro enterprises and small enterprises 904.87 318.49
(b) Total outstanding dues of creditors other than micro enterprises and
14,239.75 9,584.93
small enterprises
- Others Note 25 147.17 251.61
Other Current Liabilities Note 26 1,023.57 413.90
Provisions Note 27 3,030.75 1,344.89
Current Tax Liabilities (Net) Note 28 1,647.11 457.11
Total Current Liabilities (C) 24,337.65 15,613.78
Total Equity and Liabilities (A + B + C ) 1,22,782.18 95,607.28
The accompanying notes 1 to 51 are integral part of the standalone Ind AS financial statements.
As per our report of even date For and on behalf of the Board of Directors
For B Y & Associates Fine Organic Industries Limited
ICAI Firm Registration No.: 123423W Mukesh Shah Jayen Shah
Managing Director Director & CEO
DIN:00106799 DIN:00106919
CA Bhavesh Vora Tushar Shah Pooja Lohor
Partner Director & CFO Company Secretary
Membership No. 043908 DIN:00107144 Membership No. A28397
Place: Mumbai Place: Mumbai
Date: May 27, 2022 Date: May 27, 2022
114
Standalone Statement of Profit and Loss

for the year ended March 31, 2022
(` in lakhs)
Particulars Notes Figures for the Figures for the
year ended year ended
March 31, 2022 March 31, 2021
INCOME
Revenue from Operations Note 29 1,85,842.83 1,12,129.01
Other Income Note 30 3,319.97 1,702.41
Total Income 1,89,162.80 1,13,831.42
EXPENSES
Cost of Materials Consumed Note 31 1,21,998.12 71,536.01
Purchase of Stock-in-trade Note 31.1 - 3.99
Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-
Note 32 (2,579.68) 1,081.83
progress
Employee Benefit Expenses Note 33 8,537.04 7,617.33
Finance Costs Note 34 505.64 608.99
Depreciation & Amortisation Expenses Note 35 3,990.01 4,676.49
Other Expenses Note 36 23,034.95 12,682.90
Total Expenses 1,55,486.08 98,207.54
Profit before exceptional items and tax 33,676.72 15,623.88
Exceptional Item - -
Profit before tax 33,676.72 15,623.88
Tax Expenses
Current Tax Note 37 8,750.00 4,320.00
Deferred Tax Expense / (Income) Note 38 (140.21) (190.89)
Short / (Excess) Provision for earlier years - 1.59
Profit / (Loss) For The Year 25,066.93 11,493.18
OTHER COMPREHENSIVE INCOME
(i) Items that will not be reclassified to Profit or Loss
(a) Changes in fair value of Equity instruments through OCI 0.03 0.20
(b) Remeasurements of Profit / (Loss) on employees defined benefits plan 14.09 (9.53)
(c) Amount Recognised in Cashflow Hedging Reserve during the year 348.69 320.56
(ii) Income tax relating to items that will not be reclassified to profit or loss (91.31) (78.33)
Total Other Comprehensive Income 271.50 232.90
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 25,338.43 11,726.08
Earnings Per Equity Share
Basic Note 39 81.76 37.49
Diluted 81.76 37.49
DIN:00106799 DIN:00106919
Date: May 27, 2022 Date: May 27, 2022
115
Standalone Statement of Changes in Equity
A) Equity Share Capital

(` in lakhs)
Changes in equity Restated balance Changes in equity
Balance as at
Balance as at April 1, 2021 share capital due to as at share capital during
March 31, 2022
prior period errors April 1, 2021 the year
1,533.00 - 1,533.00 - 1,533.00
(` in lakhs)
Changes in equity Restated balance Changes in equity
Balance as at
Balance as at April 1, 2020 share capital due to as at share capital during
March 31, 2021
prior period errors April 1, 2020 the year
1,533.00 - 1,533.00 - 1,533.00
B) Other Equity
(` in lakhs)
Particulars Reserves and Surplus Other Total
Amalgamation Retained Comprehensive
Income
Reserve Earnings
Balance as at April 1, 2021 1,155.24 71,666.38 (470.85) 72,350.77
Add:- Profit for the year 25,066.93 - 25,066.93
Other comprehensive income / (losses) - - 271.50 271.50
Total Comprehensive Income for the year 1,155.24 96,733.31 (199.35) 97,689.20
Less:- Dividends - 3,372.60 - 3,372.60
Balance as at March 31, 2022 1,155.24 93,360.71 (199.35) 94,316.60
Balance as at April 1, 2020 1,155.24 61,092.96 (703.75) 61,544.45
Add:- Profit for the year - 11,493.18 - 11,493.18
Other comprehensive income / (losses) - - 232.90 232.90
Total Comprehensive Income for the year 1,155.24 72,586.14 (470.85) 73,270.53
Less:- Dividends - 919.76 - 919.76
Balance as at March 31, 2021 1,155.24 71,666.38 (470.85) 72,350.77
The accompanying notes 1 to 51 are integral part of the Standalone Ind As Financial Statements.
DIN:00106799 DIN:00106919


Date: May 27, 2022 Date: May 27, 2022
116
Standalone Cash Flow Statement

(` in lakhs)
Particulars Year ended Year ended
March 31, 2022 March 31, 2021
Net Profit Before Tax 33,676.72 15,623.88
A} Cash flows from operating activities
Adjustments for:
Depreciation of Property, Plant and Equipment 3,960.31 4,628.55
Amortisation of Intangible Assets 29.70 47.94
Loss / (Profit) on sale of Fixed Assets (net) (7.37) (1.56)
Interest Income (626.97) (708.90)
Staff Welfare 7.01 5.95
Rent Others 3.77 3.97
Interest Expenses 369.56 522.43
Remeasurement of Employees Benefit Plans 14.09 (9.53)
Net Loss / (Gain) on Foreign Exchange Fluctuations (2,457.68) (957.61)
Lease Rent on Leasehold Properties 43.35 60.12
Expected Credit Loss Provisions / (Reversal) (35.47) (20.66)
Provision for Dimunition in Value of Investment 120.73 39.60
Income Tax Written off for Earlier Years - 1.59
1,421.03 3,611.89
Operating Profit Before Working Capital Movements 35,097.75 19,235.77
Movement in Working Capital:
Decrease / (Increase) in Inventories (9,272.53) 1,052.67
Decrease / (Increase) in Trade Receivables (15,606.26) (2,921.42)
Decrease / (Increase) in Other Bank Balances (171.02) (1.87)
Decrease / (Increase) in Current Financial Assets : Others (0.18) 8.84
Decrease / (Increase) in Other Current Assets (4,820.56) (2,091.99)
Increase / (Decrease) in Trade Payables 5,241.20 2,417.17
Increase / (Decrease) in Current Financial Liabilities : Others (104.44) 88.48
Increase / (Decrease) in Other Current Liabilities 609.67 (208.91)
Increase / (Decrease) in Current Provisions 1,685.86 76.97
(22,438.26) (1,580.06)
Cash Generated From Operations 12,659.49 17,655.71
Income Tax Paid (7,687.48) (4,146.48)
Net Cash Flows From Operating Activities (A) 4,972.01 13,509.23
B} Cash flows (used in) / generated from investing

activities
Purchase of Property, Plant and Equipment, Including CWIP (6,100.05) (4,626.24)
Prepaid Rent in Leasehold Properties (3.00) (142.41)
Liability Booked Against Advance Given for Capital Goods 75.70 40.08
Purchase of Intangible Assets (34.19) (16.38)
Proceeds from Sale of Property, Plant and Equipment 24.23 13.34
Amount (invested)/ matured in Bank Fixed Deposits (116.69) 43.19
Investment in Joint Ventures (54.00) -
117
Standalone Cash Flow Statement
for the year ended March 31, 2022 (Contd.)
(` in lakhs)
March 31, 2022 March 31, 2021
Additional Investment in Subsidiary Company (6.81) -
Interest received 597.14 672.82
Net Cash Flows Used In Investing Activities (B) (5,617.67) (4,015.60)
C} Net cash flows (used in)/ generated from financing
activities
Repayment of Non Current Borrowings (3,064.53) (3,554.65)
Advances (given to )/ Received Back from Subsidiaries 279.56 128.66
Security Deposit Received back / (Given) (1.24) (6.66)
Employee advance (given) /received back (8.10) (23.61)
Dividend paid (3,372.60) (919.76)
Interest paid (369.56) (522.43)
Net Loss / (Gain) on Foreign Exchange Fluctuations 2,472.95 957.61
Net Cash Flows Used In Financing Activities (C) (4,063.52) (3,940.84)
Net Increase / (Decrease) In Cash And Cash Equivalents (A+B+C) (4,709.18) 5,552.79
Cash And Cash Equivalents At The Beginning Of The Year 25,640.72 20,087.93
Cash And Cash Equivalents At The Year End {Refer To Note No. 14} 20,931.54 25,640.72
Components of Cash and Cash Equivalents :

Balances with banks
In Current Account 2,837.91 7,008.99
In Exchange Earners' Foreign Currency Account 541.78 761.72
In Fixed Deposit Account 17,532.48 17,849.76
Cash on hand 19.37 20.25
20,931.54 25,640.72
DIN:00106799 DIN:00106919


Date: May 27, 2022 Date: May 27, 2022
118
Notes Forming Integral Part of the Standalone Financial Statements

1. Corporate Information on May 27, 2022 and are subject to the approval of
Shareholders in the Annual General Meeting.
Fine Organic Industries Limited is a public limited
Company domiciled in India and is incorporated The Company carries on business in India and abroad,
under the provisions of the Companies Act, 1956. The as manufacturers, processors, suppliers, distributors,
Company was converted into Public Company with dealers, importers, exporters of wide range of
effect from November 2, 2017 and consequently the oleochemical-based additives used in foods, plastics,
name of the Company has changed from Fine Organic cosmetics, coatings and other specialty application in
Industries Private Limited to Fine Organic Industries various industries.
Limited. The registered office of the Company is situated The Equity shares of the Company are listed on July 2,
in the State of Maharashtra. 2018 on BSE Limited and National Stock Exchange of
The Financial Statements were approved and authorised India Limited (NSE).
for issue with the resolution of the Board of Directors
The Company has following investments in subsidiaries, Joint Ventures and Associates:
Particulars Name of Entities
Fine Organics Fine Organics Fine Zeelandia FineADD Fine Organic

(USA), Inc Europe BV Private Limited Ingredients Industries
GmbH (Thailand) Co.,
(upto November Ltd.
11, 2021)
Principal place of business and United States of Belgium India Germany Thailand
Country of Incorporation America
Investee relationship Subsidiary Subsidiary Joint Venture Joint Venture Joint Venture
Company Company
Proportion of ownership interest 100.00% *100.00% 50.00% 50.00% 45.00%

* From March 23, 2022
2. Basis of preparation: 2.3 Basis of measurement

The Financial Statements have been prepared on a
2.1 Statement of compliance
historical cost basis, except for the following:
The accompanying Financial Statements have
•• certain Financial assets and liabilities (including
been prepared in accordance with the accounting
derivative instruments) that are measured at fair
principles generally accepted in India, including the
value; and
Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, •• Net defined benefit (assets)/ liabilities that are
2015 and Companies (Indian Accounting Standards) measured at fair value of plan assets less present
(Amendment) Rules, 2017 notified under section 133 of value of defined benefit obligations
the Companies Act, 2013, (the ‘Act’) and other relevant 2.4 Use of estimates and judgements
provisions of the Act.
The preparation of the Financial Statements in
2.2 Functional and presentation currency accordance with Ind AS requires use of judgements,
These Financial Statements are presented in Indian estimates and assumptions, which affect the application
rupees, which is also the Company’s functional of accounting policies and the reported amounts of
currency. All amounts have been reported in INR, unless assets, liabilities, income and expenses. The actual
otherwise indicated. results may differ from these estimates.
119
Estimates and underlying assumptions are reviewed on Key actuarial assumptions include discount rate,
an ongoing basis. Revision to accounting estimates is trends in salary escalation, actuarial rates and
recognised prospectively. life expectancy. The discount rate is determined
Assumptions and estimation uncertainties that have a by reference to market yields at the end of the
significant risk of resulting in a material adjustment in reporting period on government bonds. The period
the year ended March 31, 2022 are as follows: to maturity of the underlying bonds correspond
a) Property, plant and equipment to the probable maturity of the post-employment
benefit obligations.
Useful lives of tangible assets are based on the
life prescribed in Schedule II of the Act except d) Recognition of deferred tax assets
plant & machineries, which in the opinion of Deferred tax assets are recognised for the future tax
the Management represent the useful lives as consequences of temporary differences between
they are based on technical advice, taking into the carrying values of assets and liabilities and
account the nature of the asset, the estimated their respective tax bases, and unutilised business
usage of the asset, the operating conditions of the loss and depreciation carry-forwards and tax
asset, past history of replacement, anticipated credits, if any. Deferred tax assets are recognised
technological changes, manufacturers’ warranties to the extent that it is probable that future
and maintenance support. taxable income will be available against which
b) Revenue from contracts with customers the deductible temporary differences, unused tax
The Company’s contracts with customers include losses, depreciation carry-forwards and unused
promises to transfer goods to the customers. tax credits could be utilised.
Judgement is required to determine the transaction e) Contingent Liabilities, Commitments and
price for the contract. The transaction price could Litigations
be either a fixed amount of customer consideration
Contingent liabilities
or variable consideration with elements such as
Contingent liabilities may arise from the ordinary
schemes, incentives, cash discounts etc. The
estimated amount of variable consideration is course of business in relation to claims against
adjusted in the transaction price only to the extent the Company, including legal and other claims. By
that it is highly probable that a significant reversal their nature, contingencies will be resolved only
in the amount of cumulative revenue recognised when one or more uncertain future events occur
will not occur and is reassessed at the end of each or fail to occur. The assessment of the existence,
reporting period. and potential quantum, of contingencies inherently
involves the exercise of significant judgement and
Estimates of rebates and discounts are sensitive
to changes in circumstances and the Company’s the use of estimates regarding the outcome of
past experience regarding returns and rebate future events.
entitlements may not be representative of Litigation
customers’ actual returns and rebate entitlements From time to time, the Company might be subject
in the future. to legal proceedings the ultimate outcome of
Costs to obtain a contract are generally expensed each being always subject to many uncertainties
as incurred. The assessment of this criteria inherent in litigation. A provision for litigation
requires the application of judgement, in particular is made when it is considered probable that a
when considering if costs generate or enhance payment will be made and the amount of the loss
resources to be used to satisfy future performance can be reasonably estimated. Significant judgement
obligations and whether costs are expected to be is made when evaluating, among other factors, the
recovered. probability of unfavourable outcome and the ability
c) Recognition and measurement of defined benefit to make a reasonable estimate of the amount of
obligations potential loss. Litigation provisions are reviewed at
The obligation arising from defined benefit plan is each accounting period and revisions made for the
determined on the basis of actuarial assumptions. changes in facts and circumstances.
120

2.5 Measurement of fair values realisation in cash and cash equivalents, the Company
The Company’s accounting policies and disclosures has ascertained its operating cycle as 12 months for the
require the measurement of fair values, for both purpose of current – non-current classification of assets
Financial and non-Financial assets and liabilities. and liabilities.
The Company has an established control framework with 2.7 Current / non-current classification
respect to the measurement of fair values, which includes An entity shall classify an asset as current when:
overseeing all significant fair value measurements,
a) It expects to realise the asset, or intends to sell or
including Level 3 fair values by the Management. The
consume it, in its normal operating cycle;
Management regularly reviews significant unobservable
b) It holds the asset primarily for the purpose of
inputs and valuation adjustments. If third party
trading;
information, such as broker quotes or pricing services,
is used to measure fair values, then the Management c) It expects to realise the asset within twelve months
assesses the evidence obtained from the third parties after the reporting period; or
to support the conclusion that such valuations meet d) the asset is cash or a cash equivalent unless the
the requirements of Ind AS, including the level in the asset is restricted from being exchanged or used to
fair value hierarchy in which such valuations should be settle a liability for at least twelve months after the
classified. reporting period
When measuring the fair value of a financial asset or a An entity shall classify all other assets as non-current.
financial liability, the Company uses observable market An entity shall classify a liability as current when-
data as far as possible. Fair values are categorised into
a) It expects to settle the liability in its normal
different levels in a fair value hierarchy based on the
operating cycle;
inputs used in the valuation techniques as follows:
b) It holds the liability primarily for the purpose of
•• Level-1: quoted prices (unadjusted) in active
trading;
markets for identical assets or liabilities.
c) The liability is due to be settled within twelve
•• Level-2: inputs other than quoted prices included
months after the reporting period; or
in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly d) It does not have an unconditional right to defer
(i.e. derived from prices). settlement of the liability for at least twelve months
after the reporting period. Terms of a liability that
•• Level-3: inputs for the asset or liability that are not
could, at the option of the counterparty, result in
based on observable market data (unobservable
its settlement by the issue of equity instruments do
inputs).
not affect its classification.
If the inputs used to measure the fair value of an
An entity shall classify all other liabilities as non-current.
asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is Deferred tax assets and liabilities are classified as non-
categorised in its entirety in the same level of the current assets and liabilities.
fair value hierarchy as the lowest level input that is 2.8 Note on Recent Pronouncements
significant to the entire measurement. The Company
Ministry of Corporate Affairs (“MCA”) notifies new
recognises transfers between levels of the fair value
standard or amendments to the existing standards
hierarchy at the end of the reporting period during which
under Companies (Indian Accounting Standards) Rules
the change has occurred.
as issued from time to time. On March 23, 2022, MCA
2.6 Operating cycle amended the Companies (Indian Accounting Standards)
An operating cycle is the time between the acquisition Amendment Rules, 2022, applicable from April 1, 2022,
of assets for processing and their realisation in cash or as below:
cash equivalents.
Ind AS 16 – Proceeds before intended use
Based on the nature of services and the time between
The amendments mainly prohibit an entity from
the acquisition of assets for processing and their
deducting from the cost of property, plant and equipment
121
amounts received from selling items produced while the b) Any directly attributable cost of bringing the asset
Company is preparing the asset for its intended use. to its location and condition necessary for it to be
Instead, an entity will recognise such sales proceeds capable of operating in the manner intended by
and related cost in profit or loss. The Company does Management.
not expect the amendments to have any impact in its If significant parts of an item of property, plant and
recognition of its property, plant and equipment in its equipment have different useful lives, then they are
financial statements. accounted and depreciated for as separate items (major
Ind AS 37 – Onerous Contracts - Costs of Fulfilling a components) of property, plant and equipment.
Contract Gains or losses arising from de-recognition of a property,
The amendments specify that that the ‘cost of fulfilling’ plant and equipment are measured as the difference
a contract comprises the ‘costs that relate directly to between the net disposal proceeds and the carrying
the contract’. Costs that relate directly to a contract can amount of the asset and are recognised in the Statement
either be incremental costs of fulfilling that contract of Profit and Loss when the asset is derecognised.
(examples would be direct labour, materials) or an Capital work-in-progress comprises cost of fixed assets
allocation of other costs that relate directly to fulfilling that are not yet ready for their intended use at the year
contracts. The amendment is essentially a clarification end. Expenditure/ Income during construction period
and the Company does not expect the amendment to (including financing cost related to borrowed funds
have any significant impact in its financial statements. for construction or acquisition of qualifying PPE) is
included under Capital Work-in-Progress, and the same
Ind AS 109 – Annual Improvements to Ind AS (2021)
is allocated to the respective PPE on the completion of
The amendment clarifies which fees an entity includes their construction. Advances given towards acquisition
when it applies the ‘10%’ test of Ind AS 109 in assessing or construction of PPE outstanding at each reporting
whether to derecognise a financial liability. The Company date are disclosed as Capital Advances under “Other
does not expect the amendment to have any significant non-current Assets”.
impact in its financial statements.
Leasehold Rent payable to MIDC relating to new project,
Ind AS 106 – Annual Improvements to Ind AS (2021) during the project development stage prior to its intended
The amendments remove the illustration of the use, are considered as pre - operative expenses and
reimbursement of leasehold improvements by the lessor disclosed under Non- Current Assets and the same will
in order to resolve any potential confusion regarding the be amortised in the year of commencement of project.
treatment of lease incentives that might arise because of Subsequent expenditure
how lease incentives were described in that illustration.
Subsequent expenditure is capitalised only if it is
The Company does not expect the amendment to have
probable that the future economic benefits associated
any significant impact in its financial statements.
with the expenditure will flow to the Company.
3. Significant accounting policies
Depreciation
3.1 Property, plant and equipment
Depreciation is calculated on pro-rata basis using the
Recognition and measurement diminishing balance method on cost of items of property,
Items of property, plant and equipment are measured plant and equipment less their estimated residual
at cost less accumulated depreciation and accumulated values over the estimated residual useful lives based on
impairment losses, if any. Schedule II of the Companies Act, 2013 except for plant
The cost of an item of property, plant and equipment & machinery.
comprises: In case of plant & machinery, based on internal
a) Its purchase price, including import duties and assessment, the Management believes that the useful
non-refundable purchase taxes, after deducting lives as given below best represent the period over
trade discounts and rebates. which Management expects to use these assets. Hence
the useful lives for these assets may different from the
useful lives as prescribed under Part C of Schedule II
122

of the Companies Act, 2013. The Management believes 3.3 Borrowing costs
that these estimated useful lives are realistic and reflect Borrowing costs are interest and other costs (including
fair approximation of the period over which the assets exchange differences relating to foreign currency
are likely to be used. borrowings to the extent that they are regarded as an
The estimated useful lives of items of property, plant adjustment to interest costs) incurred in connection
and equipment are as follows: with the borrowing of funds. Borrowing costs that are
directly attributable to the acquisition or construction of
Tangible Assets Useful lives as per
an asset that necessarily takes a substantial period of
Schedule II
time to get ready for its intended use are capitalised as
Buildings 30 Years
part of the cost of that asset till the date it is ready for its
Computers intended use or sale less any investment income on the
Computer – Server & Network 6 Years temporary investment of those borrowings.
Computer – Others 3 Years Other borrowing costs are recognised as an expense in
Plant & Machinery 5 - 15 Years the period in which they are incurred.
Furniture and Fixtures 10 Years 3.4 Impairment of non-Financial assets
Electrical Installation 10 Years Assets are tested for impairment whenever events or
Motor Cars & Vehicles 8 Years changes in circumstances indicate that the carrying
Office Equipments 5 Years amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset’s
Laboratory Equipments 10 Years
carrying amount exceeds its recoverable amount. The
Depreciation methods, useful lives and residual values recoverable amount is the higher of an asset’s fair value
are reviewed at each reporting date and adjusted if less costs of disposal and value in use. For the purpose
appropriate. of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable
3.2 Intangible Assets
cash inflows which are largely independent of the cash
Recognition and measurement inflows from other assets or groups of assets.
Intangible assets comprise of computer software and
3.5 Income Tax
patent / trademark, which acquired by the Company
Income tax expense comprises current and deferred tax.
are initially measured at cost. Such intangible assets
It is recognised in profit or loss except to the extent that
are subsequently measured at cost less accumulated
it relates to a business combination, or items recognised
amortisation and any accumulated impairment losses.
directly in equity or in other comprehensive income.
Subsequent expenditure
Current Tax
Subsequent expenditure is capitalised only when it
Current tax comprises the expected tax payable or
increases the future economic benefits embodied in the
receivable on the taxable income or loss for the year
specific asset to which it relates.
and any adjustment to the tax payable or receivable in
Amortisation respect of previous years. The amount of current tax
Amortisation is calculated to write off the cost of reflects the best estimate of the tax amount expected
intangible assets less their estimated residual values to be paid or received after considering the uncertainty,
and it is included in depreciation and amortisation in the if any, related to income taxes. It is measured using tax
Statement of profit and loss. rates enacted or substantively enacted by the reporting
Intangible assets are amortised over the estimated date.
useful lives as given below: Current tax assets and current tax liabilities are offset
only if, the Company:
Intangible Assets Useful life
Computer Software (WDV Method) 3 Years •• has a legally enforceable right to set off the
Patent / Trademark (SLM Method) 10 Years recognised amounts; and
123
•• intends either to settle on a net basis, or to realise •• the deferred tax assets and the deferred tax
the asset and settle the liability simultaneously. liabilities relate to income taxes levied by the same
taxation authority on the same taxable Company.
Deferred tax
Minimum Alternate Tax (MAT) credit is recognised as a
Deferred tax is recognised in respect of temporary
Deferred Tax Asset only when and to the extent there is
differences between the carrying amounts of assets
convincing evidence that the Company will pay normal
and liabilities for Financial reporting purposes and the
income tax during the specified period. Such asset is
corresponding amounts used for taxation purposes.
reviewed at each Balance Sheet date and the carrying
Deferred tax is not recognised for:
amount of the MAT credit asset is written down to the
•• temporary differences arising on the initial extent there is no longer a convincing evidence to the
recognition of assets or liabilities in a transaction effect that the Company will pay normal income tax
that is not a business combination and that affects during the specified period.
neither accounting nor taxable profit or loss at the
time of the transaction. 3.6 Inventories
•• temporary differences related to investments Inventories which comprise raw materials, packing
in subsidiaries to the extent that the Company is materials, work-in-progress, finished goods,
able to control the timing of the reversal of the consumables and stores & spares are carried at the
temporary differences and it is probable that they lower of cost and net realisable value.
will not reverse in the foreseeable future; and The cost of inventories is based on weighted average
•• taxable temporary differences arising on the initial formula and includes expenditure incurred in acquiring
recognition of goodwill. the inventories, costs of production or conversion
and other costs incurred in bringing the inventories
Deferred tax assets are recognised for unused tax
to their present location and condition. In the case of
losses, unused tax credits and deductible temporary
finished goods and work in progress, cost includes an
differences to the extent that it is probable that future
appropriate share of production overheads based on
taxable profits will be available against which they
normal operating capacity of production facilities.
can be used. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is Net realisable value is the estimated selling price in the
no longer probable that the related tax benefit will ordinary course of business, less the estimated costs of
be realised; such reductions are reversed when the completion and the estimated costs necessary to make
probability of future taxable profits improves. the sale.
Unrecognised deferred tax assets are reassessed at Obsolete, defective and unserviceable inventories
each reporting date and recognised to the extent that it are duly provided for. The comparison of cost and net
has become probable that future taxable profits will be realisable value is made on an item-by-item basis.
available against which they can be used. The net realisable value of work-in-progress is
Deferred tax is measured at the tax rates that are determined with reference to the selling prices of related
expected to be applied to temporary differences when finished products. Raw materials and other supplies
they reverse, using tax rates enacted or substantively held for use in the production of finished products are
enacted by the reporting date. not written down below cost except in cases where
material prices have declined and it is estimated that
The measurement of deferred tax reflects the tax
the cost of the finished products will exceed their net
consequences that would follow from the manner in
realisable value.
which the Company expects, at the reporting date, to
recover or settle the carrying amount of its assets and 3.7 Cash and cash equivalents
liabilities. Cash and cash equivalents in the balance sheet comprise
Deferred tax assets and liabilities are offset only if: cash at banks and cash on hand and short-term deposits
•• the Company has a legally enforceable right to set with an original maturity of three months or less, which
off current tax assets against current tax liabilities; are subject to an insignificant risk of changes in value.
and
124

For the purpose of the Statement of cash flows, cash and selling financial assets and the contractual
and cash equivalents consist of cash and short-term terms of the financial asset give rise on specified
deposits, as defined above, as they are considered as an dates to cash flows that are solely payments of
integral part of the Company’s cash Management. principal and interest on the principal amount
outstanding.
3.8 Trade Payables
c) Financial assets at fair value through profit or
Trade payables represent liabilities for goods including
loss (FVTPL)
capital goods and services provided to the Company prior
to the end of Financial year which are unpaid. Trade and A Financial asset which is not classified in any of
the above categories is measured at FVTPL.
other payables are reported as current liabilities unless
payment is not due within 12 months after the reporting Investment in subsidiaries, Associates and Joint
period. They are recognised initially at their fair value Ventures
and subsequently measured at amortised cost using the The Company has opted to account for its investments
effective interest method. in subsidiaries, associates and joint venture at cost less
provision for diminution other than temporary.
3.9 Financial instruments
Other Equity Investments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or All other equity investments are measured at fair value,
equity instrument of another entity. with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which
Financial assets the Company has made an irrevocable choice to present
Initial recognition and measurement the value changes in ‘Other Comprehensive Income’.
All financial assets are recognised initially at fair value Impairment of Financial assets
plus, in the case of financial assets not recorded at fair In accordance with Ind AS 109, the Company uses
value through profit or loss, transaction costs that are ‘Expected Credit Loss’ (ECL) model, for evaluating
attributable to the acquisition of the financial asset. impairment of Financial assets other than those
Purchases or sales of financial assets that require measured at fair value through profit and loss (FVTPL).
delivery of assets within a time frame established by Expected credit losses are measured through a loss
regulation or convention in the market place (regular allowance at an amount equal to:
way trades) are recognised on the trade date, i.e., the
•• The 12-months expected credit losses (expected
date that the Company commits to purchase or sell the credit losses that result from those default events
asset. on the Financial instrument that are possible within
Subsequent measurement 12 months after the reporting date); or
a) Financial assets carried at amortised cost (AC) •• Full lifetime expected credit losses (expected
A financial asset is measured at amortised cost credit losses that result from all possible default
using the effective interest rate method, if it is held events over the life of the Financial instrument)
within a business model whose objective is to hold For trade receivables, the Company applies ‘simplified
the asset in order to collect contractual cash flows approach’ which requires expected lifetime losses to be
and the contractual terms of the financial asset recognised from initial recognition of the receivables.
give rise on specified dates to cash flows that are The Company uses historical default rates to determine
solely payments of principal and interest on the impairment loss on the portfolio of trade receivables. At
principal amount outstanding. every reporting date these historical default rates are
b) Financial assets at fair value through other reviewed and changes in the forward looking estimates
comprehensive income (FVTOCI) are analysed.
A financial asset is measured at FVTOCI if it is For other assets, the Company uses 12 month ECL to
held within a business model whose objective is provide for impairment loss where there is no significant
achieved by both collecting contractual cash flows increase in credit risk. If there is significant increase in
credit risk full lifetime ECL is used.
125
Financial liabilities Cash flow hedge
Initial recognition and measurement The Company designates derivative contracts or

non derivative financial assets / liabilities as hedging
All Financial liabilities are recognised at fair value and
instruments to mitigate the risk of movement in
in case of loans, net of directly attributable cost. Fees of
interest rates and foreign exchange rates for foreign
recurring nature are directly recognised in the Statement
exchange exposure on highly probable future cash
of Profit and Loss as finance cost.
flows attributable to a recognised asset or liability
Subsequent measurement or forecast cash transactions. When a derivative is
Financial liabilities are carried at amortised cost using designated as a cash flow hedging instrument, the
the effective interest method. For trade and other effective portion of changes in the fair value of the
payables maturing within one year from the balance derivative is recognised in the cash flow hedging
sheet date, the carrying amounts approximate fair value reserve being part of other comprehensive income.
due to the short maturity of these instruments. Any ineffective portion of changes in the fair value
a) Derivative Financial instruments and Hedge of the derivative is recognised immediately in
Accounting the Statement of Profit and Loss. If the hedging
The Company uses various derivative financial relationship no longer meets the criteria for hedge
instruments such as forwards and Interest rate accounting, then hedge accounting is discontinued
swaps to mitigate the risk of changes in exchange prospectively. If the hedging instrument expires
rates and Interest rates. Such derivative financial or is sold, terminated or exercised, the cumulative
instruments are initially recognised at fair value on gain or loss on the hedging instrument recognised
the date on which a derivative contract is entered in cash flow hedging reserve till the period the
into and are also subsequently measured at fair hedge was effective remains in cash flow hedging
value. Derivatives are carried as financial assets reserve until the underlying transaction occurs. The
when the fair value is positive and as financial cumulative gain or loss previously recognised in
liabilities when the fair value is negative. the cash flow hedging reserve is transferred to the
Statement of Profit and Loss upon the occurrence
Any gains or losses arising from changes in the fair
of the underlying transaction. If the forecasted
value of derivatives are taken directly to Statement
transaction is no longer expected to occur, then the
of Profit and Loss, except for the effective portion
amount accumulated in cash flow hedging reserve
of cash flow hedges which is recognised in Other
is reclassified in the Statement of Profit and Loss.
Comprehensive Income and later to Statement
of Profit and Loss when the hedged item affects Fair Value Hedge
profit or loss or treated as basis adjustment if a The Company designates derivative contracts
hedged forecast transaction subsequently results or non derivative financial assets / liabilities as
in the recognition of a non-Financial assets or non- hedging instruments to mitigate the risk of change
Financial liability. in fair value of hedged item due to movement
In case of loss / gains from interest rate swaps, in interest rates, foreign exchange rates and
directly attributable to the acquisition or commodity prices.
construction of an asset that necessarily takes Changes in the fair value of hedging instruments
a substantial period of time to get ready for its and hedged items that are designated and qualify
intended use are capitalised as part of the cost of as fair value hedges are recorded in the Statement
that asset till the date it is ready for its intended of Profit and Loss. If the hedging relationship no
use or sale. longer meets the criteria for hedge accounting,
Hedges that meet the criteria for hedge accounting the adjustment to the carrying amount of a hedged
are accounted for as follows: item for which the effective interest method is used
is amortised to Statement of Profit and Loss over
the period of maturity.
126

b) De-recognition of Financial instruments Financial Statements of the transferee in the same form
The Company derecognises a financial asset when in which they appeared in the Financial Statements of
the contractual rights to the cash flows from the the transferor.
Financial asset expire or it transfers the Financial 3.11 Revenue Recognition
asset and the transfer qualifies for de-recognition
Revenue from contracts with customer
under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognised from the Revenue from contract with customers is recognised
Company’s Balance Sheet when the obligation when the Company satisfies performance obligation
specified in the contract is discharged or cancelled by transferring promised goods and services to the
or expires. customer. Performance obligations are satisfied at the
point of time when the customer obtains controls of the
c) Offsetting
goods.
Financial assets and financial liabilities are offset
Sale of Products
and the net amount is reported in the balance
sheet when, and only when, the Company has Revenue from sale of goods is recognised when
legally enforceable right to set off the amount control of the products being sold is transferred to the
and it intends, either to settle them on net basis customers and when there are no longer any unfulfilled
or to realise the assets and settle the liabilities obligations. The performance obligations in contracts
simultaneously. are fulfilled at the time of dispatch, delivery or upon
formal customer acceptance depending on customer
3.10 Business Combinations
terms. Revenue from the sale of goods is measured
Business Combinations are accounted for using Ind AS based on the consideration specified in a contract
103 Business Combination. Acquisitions of businesses with a customer, net of returns and allowances, trade
are accounted for using the acquisition method unless discounts, volume rebates and any taxes or duties
the transaction is between entities under common collected on behalf of the government such as goods
control. Acquisition related costs are recognised in the and service tax. The Company does not provide any
Statement of profit and loss as incurred. The acquiree’s warranties or maintenance contracts to its customers.
identifiable assets, liabilities and contingent liabilities
Variable consideration
that meet the conditions for recognition are recognised
at their respective fair value at the acquisition date, This includes incentives, volume rebates, discounts etc.
except certain assets and liabilities required to be It is estimated at contract inception and constrained until
measured as per applicable standards. Purchase it is highly probable that a significant revenue reversal in
consideration in excess of the Company’s interest in the the amount of cumulative revenue recognised will not
acquiree’s net fair value of identifiable assets, liabilities occur when the associated uncertainty with the variable
and contingent liabilities is recognised as goodwill. consideration is subsequently resolved. It is reassessed
Excess of the Company’s interest in the net fair value at end of each reporting period.
of the acquiree’s identifiable assets, liabilities and Significant financing component
contingent liabilities over the purchase consideration
Generally, the Company receives short-term advances
is recognised, after reassessment of fair value of net
from its customers. Using the practical expedient in
assets acquired, is recognised as Capital Reserve i.e.
Ind AS 115, the Company does not adjust the promised
Amalgamation Reserve.
amount of consideration for the effects of a significant
Business Combinations arising from transfer of interests financing component if it expects, at contract inception,
in entities that are under common control are accounted that the period between the transfer of the promised
using pooling of interest method wherein, assets and goods or service to the customer and when the customer
liabilities of the combining entities are reflected at their pays for that goods or service will be one year or less.
carrying value, no adjustment are made to reflect fair
values, or recognise any new assets or liabilities. The
identity of the reserves is preserved and appears in the
127
Cost to obtain a contract the date the transaction first qualifies for recognition.
The Company pays sales commission to its selling agents Monetary assets and liabilities denominated in foreign
for each contract that they obtain for the Company. The currencies are translated at the functional currency spot
Company has elected to apply the optional practical rates of exchange at the reporting date.
expedient for costs to obtain a contract which allows the Exchange differences arising on settlement or
Company to immediately expense sales commissions translation of monetary items are recognised in profit or
because the amortisation period of the asset that the loss.
Company otherwise would have used is one year or less.
3.13 Employee benefits
Costs to fulfill a contract i.e. freight, insurance and other
Short term employee benefits
selling expenses are recognised as an expense in the
period in which related revenue is recognised. Liabilities for short term employee benefits that are
expected to be settled wholly within 12 months after
Other Operating Revenues the end of the period in which the employees render the
Other Operating revenue mainly consists of Sale of related service are recognised in respect of employees’
Scrap arising from the production of finished goods. service up to the end of the reporting period and are
Interest Income measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are reported as
Interest income is recorded using the effective interest
current employee benefits payable in the balance sheet.
rate (EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts over the Post-employment benefits
expected life of the financial instrument or a shorter a) Defined benefit plans
period, where appropriate, to the gross carrying amount The liability or asset recognised in the balance sheet
of the financial asset or to the amortised cost of a in respect of defined benefit plans is the present
financial liability. value of the defined benefits obligation at the end
Interest income is included in finance income in the of the reporting period less the fair value of plan
Statement of profit and loss assets. The defined benefit obligation is calculated
Interest income earned on the temporary investment annually by actuaries using the Projected Unit
of specific borrowings pending their expenditure on Credit Method at the year end.
qualifying assets is deducted from the borrowing costs The present value of the defined benefit obligation
eligible for capitalisation. is determined by discounting the estimated future
Dividends cash outflows by reference to market yields at the
end of the reporting period on government bonds
Revenue is recognised when the Company’s right to
that have terms approximating to the terms of the
receive the payment is established, which is generally
related obligations.
when shareholders approve the dividend.
The net interest cost is calculated by applying the
Insurance and other claims
discount rate to the net balance of the defined
Revenue in respect of Insurance and other claim is benefit obligation and the fair value of plan assets.
recognised only on reasonable certainty of ultimate This cost is included in Employee Benefit Expense
collection. in the Statement of profit and loss.
3.12 Foreign Currencies Re-measurement gains and losses arising from
The Financial Statements are presented in Indian experience adjustments and changes in actuarial
rupees, which is the functional currency of the Company assumptions are recognised in the period in
and the currency of the primary economic environment which they occur, directly in Other Comprehensive
in which the Company operates. Income. They are included in retained earnings in
the Statement of changes in equity.
Transactions and balances
Changes in the present value of the defined benefit
Transactions in foreign currencies are initially recorded
obligation resulting from plan amendments or
by the Company at its functional currency spot rates at
128

curtailments are recognised immediately in the A disclosure for contingent liabilities is made when
profit or loss as past service cost. there is a possible obligation arising from past events,
b) Defined contribution plans the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
Contributions under Defined Contribution Plans
future events not wholly within the control of the
payable in keeping with the related schemes are
Company or a present obligation that arises from past
recognised as expenses for the period in which the
events where it is either not probable that an outflow
employee has rendered the service.
of resources embodying economic benefits will be
3.14 Leases required to settle or a reliable estimate of the amount
As a lessee cannot be made.
Leases in which a significant portion of the risks 3.16 Dividend

and rewards of ownership are not transferred to the Provision is made for the amount of any dividend
Company as lessee are classified as operating leases. declared, being appropriately authorised and no longer
Payments made under operating leases are charged to at the discretion of the Company, on or before the end of
the Statement of profit and loss on a straight line basis the reporting period but not distributed at the end of the
over the period of the lease unless the payments are reporting period.
structured to increase in line with expected general
3.17 Earnings per share (EPS)
inflation to compensate for the lessor’s expected
inflationary cost increases. Basic earnings per share
Basic earnings per share is calculated by dividing
3.15 Provisions and contingent liabilities
the profit attributable to owners of the equity by the
Provisions are recognised when the Company has a
weighted average number of equity shares outstanding
present legal or constructive obligation as a result
during the financial year.
of past events and it is probable that an outflow of
Diluted earnings per share
resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are not Diluted earnings per share adjusts the figures used in
recognised for future operating losses. the determination of basic earnings per share to take
into account
Provisions are measured at the present value of
Management’s best estimates of the expenditure •• The after income tax effect of interest and other
required to settle the present obligation at the end of the financing costs associated with dilutive potential
reporting period. The discount rate used to determine equity shares, and
the present value is a pre-tax rate that reflects current •• The weighted average number of additional
market assessments of the time value of money and the equity shares that would have been outstanding
risk specific to the liability. The increase in the provision assuming the conversion of all dilutive potential
due to the passage of time is recognised as interest equity shares.
expense.
129
Note 4 Non Current Assets : Property, Plant and Equipment (PPE)
(` in lakhs)
Particulars Factory / Office Resi- Factory Plant and Electrical Laborato- Office Furniture Comput- Vehicles Total
Research Premises dential Flat Equip- Equip- ry Equip- Equip- & er & Pe- Property,
Centre Premises ments ments ments ments Fixtures ripherals Plant and
Building (including Equipment
Server &
Network)
Gross Carrying Amount
Balance as at April 1, 2020 14,983.19 105.66 77.44 2.76 20,593.21 2,053.83 860.44 728.31 763.85 733.91 893.33 41,795.93
Add: Additions during the year 837.90 - - - 1,203.26 148.90 50.36 91.98 49.99 104.10 93.44 2,579.93
Less: Disposals/ Adjustments 0.49 - - - 103.99 2.02 0.18 6.74 - 0.55 56.86 170.83
Balance as at March 31, 2021 15,820.60 105.66 77.44 2.76 21,692.48 2,200.71 910.62 813.55 813.84 837.46 929.91 44,205.03
Add: Additions during the year 3,112.82 175.55 - - 3,016.56 473.06 25.57 103.17 48.34 259.13 103.80 7,318.00
Less: Disposals/ Adjustments - - - - 21.13 11.70 (1.72) 3.40 0.02 29.40 53.05 116.98
Balance as at March 31, 2022 18,933.42 281.21 77.44 2.76 24,687.91 2,662.07 937.91 913.32 862.16 1,067.19 980.66 51,406.05
Accumulated Depreciation
Balance as at April 1, 2020 4,995.35 64.97 17.43 1.32 11,315.70 977.35 617.25 502.13 562.47 558.86 592.03 20,204.86
Add: Depreciation for the year 974.67 2.57 2.91 0.07 2,901.46 290.66 64.25 110.05 52.41 123.94 105.56 4,628.55
130
Net Carrying Amount
Balance as at March 31, 2021 9,850.75 38.12 57.10 1.37 7,572.55 934.40 229.20 207.77 198.96 155.17 285.28 19,530.67

Note 5 Non Current Assets : Capital Work in Progress

(` in lakhs)
Particulars As at As at
March 31, 2022 March 31, 2021
Balance as at the beginning of the year 2,630.42 584.11
Add:- Additions during the year 6,122.14 4,614.09
Less: - Capitalisation during the year 7,340.09 2,567.78
Balance as at the end of the year 1,412.47 2,630.42
Note 5.1 Ageing Schedule for Capital Work-in Progress

(` in lakhs)
Particulars As at March 31, 2022
< 1 Year 1-2 Years 2-3 Years More than 3 Years Total
-- Projects in progress 919.41 219.25 262.06 11.75 1,412.47
-- Projects temporarily suspended - - - - -
Total 919.41 219.25 262.06 11.75 1,412.47
(` in lakhs)
-- Projects in progress 2,321.19 266.48 41.01 1.74 2,630.42
Total 2,321.19 266.48 41.01 1.74 2,630.42
Note 5.2 There is no Capital Work-in Progress, whose completion is overdue or has exceeded its cost compared to its original
plan.
Note 6 Non Current Assets : Intangible Assets

(` in lakhs)
Particulars Software Patents & Total Intangible
Trademarks Assets
Balance as at April 1, 2020 104.96 27.42 132.38
Add: Additions during the year 13.98 2.40 16.38
Less: Disposals/ Adjustments - - -
Balance as at March 31, 2021 118.94 29.82 148.76
Add: Depreciation for the year 44.91 3.03 47.94
Less: Disposals/ Adjustments (1.58) - (1.58)
Net Carrying Amount
131
Note 7 Non Current Financial Assets : Investments

(` in lakhs)
March 31, 2022 March 31, 2021
Unquoted Investment in Equity Instruments of Subsidiaries (At Cost)
(i) Fine Organics (USA), Inc. 189.13 185.36
{Includes ₹ 188.50 lakhs (P.Y. ₹ 184.72 lakhs) Notional interest as per IndAS 109
'Financial Instruments' issued by MCA}
(Current Year: 1,000 shares of $ 1 each fully paid up)
(Previous Year : 1,000 shares of $ 1 each fully paid up)
(ii) Fine Organics Europe BV 34.84 28.03
{Includes ₹ 13.80 lakhs (P.Y. ₹ 13.80 lakhs) Notional interest as per IndAS 109
'Financial Instruments' issued by MCA}
(Current Year: 186 shares of Euro 100 each fully paid up)
(Previous Year: 185 shares of Euro 100 each fully paid up)
Unquoted Investment in Equity Instruments of Jointly Controlled Entity (At Cost)
(i) Fine Zeelandia Private Limited 4,028.43 4,028.43
(Current Year: 4,02,84,250 shares of ₹ 10 each fully paid up)
(Previous Year: 4,02,84,250 shares of ₹ 10 each fully paid up)
(ii) FineADD Ingredients GmbH {refer to note no. 7.1} - 120.73
(Current Year: 2,500 shares of Euro 100 each fully paid up)
(Previous Year: 2,500 shares of Euro 100 each fully paid up)
(iii) Fine Organic Industries (Thailand) Co., Ltd. 54.00 -
(Current Year: 22,500 shares of Thai Baht 100 each fully paid up)
Unquoted Investment in Equity Instruments at FVTOCI
(i) Saraswat Co-Operative Bank Limited 4.83 4.80
(Current Year: 2,500 shares of ₹ 10 each fully paid up)
(Previous Year: 2,500 shares of ₹ 10 each fully paid up)
Total 4,311.23 4,367.35
Note 7.1 Diminution in value of the Investment in a joint venture

The Company has fully provided for the diminution in the value of its investment in the Joint Venture Entity “FineADD Ingredients
GmbH”, in view of its decision not to proceed with the Joint Venture and accordingly recorded the provision for the balance
amount of ₹ 120.73 lakhs in the books of account. The Joint Venture is in the process of liquidation.
Note 8 Non Current Financial Assets : Loans

(` in lakhs)
March 31, 2022 March 31, 2021
Unsecured, considered good
Advances to Wholly Owned Subsidiaries (Amortised Cost) {Refer to note no. 40(b)} - 279.56
Loan to employees 131.59 123.49
Total 131.59 403.05
132

Note 9 Non Current Financial Assets : Others

(` in lakhs)
March 31, 2022 March 31, 2021
Security Deposits Rent (Amortised Cost) 36.98 36.12
Fixed Deposits with Bank (Original Maturity more than 12 months) 336.29 219.60
Total 373.27 255.72
Note 10 Deferred Tax Asset (Net)

(` in lakhs)
March 31, 2022 March 31, 2021
Tax effect of items constituting deferred tax assets
Property, Plant and Equipments & Intangible Assets 930.48 814.62
Others 25.39 34.31
Gross Deferred Tax Asset (a) 955.87 848.93
Tax effect of items constituting deferred tax liabilities
Property, Plant and Equipments & Intangible Assets - -
Others 172.99 114.95
Gross Deferred Tax Liability (b) 172.99 114.95
Deferred Tax Assets (Net) (a-b) 782.88 733.98
Note 11 Other Non Current Assets

(` in lakhs)
March 31, 2022 March 31, 2021
Capital Advances (Unsecured, Considered good) 2,614.45 2,690.15
Security Deposits 250.73 250.35
Income Tax Refund Receivables 15.83 15.83
Prepaid Rent on Leasehold Land & Premises 3,215.29 3,255.64
Total 6,096.30 6,211.97
Note 11.1 Disclosure to Other Non Current Assets - Capital Advances

The Company has given an advance of ₹ 2,420 lakhs to MIDC for allotment of a plot at Pale, Ambernath, which is disclosed
under Capital advances. The MIDC has issued an allotment letter, however, the company is still unable to take possession of the
said plot, as so far the MIDC has not created any of the basic infrastructure facilities such as water, electricity, roads etc. Upon
possession, the Company plans to setup a centralised warehousing facility, however, the Company shall carry out a feasibility
study and then decide upon the appropriate action to be taken for the said plot. Present value of the said plot as per the ready
reckoner rate & the valuation report dated November 1, 2021 obtained by the Company is higher than the advance given and
accordingly, no provision is required to be made.
133
Note 12 Current Assets : Inventories

(` in lakhs)
March 31, 2022 March 31, 2021
Raw Materials and Packing Materials 11,354.97 5,026.82
Semi-Finished Goods 922.41 556.04
Finished Goods 5,912.21 3,698.90
Consumables 164.69 59.50
Stores & Spares 1,810.81 1,551.30
Total 20,165.09 10,892.56
Note 13 Current Financial Assets : Trade Receivables

(` in lakhs)
March 31, 2022 March 31, 2021
Secured, Considered good - -
Unsecured
Considered good 25,866.77 15,277.15
From Related Parties {Refer to note no. 41(b)} 7,292.31 2,240.20
Which have significant increase in Credit Risk 100.87 136.34
Sub Total 33,259.95 17,653.69
Less: Allowance for Expected Credit Loss 100.87 136.34
Total 33,159.08 17,517.35
Ageing for trade receivables as at March 31, 2022 is as follows
(` in lakhs)
Outstanding for following periods from due date of payment
Particulars Less than 6 months More than
Not due 1-2 years 2-3 years Total
6 months - 1 year 3 years
(i) Undisputed Trade receivables —
26,538.66 6,529.93 49.67 33.59 53.98 54.12 33,259.95
considered good
(ii) Undisputed Trade Receivables —
- - - - - - -
considered doubtful
(iii) Disputed Trade Receivables —
- - - - - - -
considered good
(iv) Disputed Trade Receivables —
- - - - - - -
considered doubtful
(` in lakhs)
12,377.67 5,017.62 108.61 49.99 47.34 52.46 17,653.69
considered good
- - - - - - -
considered doubtful
- - - - - - -
considered good
- - - - - - -
considered doubtful
134

Note 14 Current Financial Assets : Cash and cash Equivalents

(` in lakhs)
March 31, 2022 March 31, 2021
Balances with Banks
In Fixed Deposit Account (With original maturity of less than 3 months) 17,532.48 17,849.76
Total 20,931.54 25,640.72
Note 15 Current Financial Assets : Bank Balances

(` in lakhs)
March 31, 2022 March 31, 2021
Balances with Banks
In Fixed Deposits (with original maturity of more than 3 months and 12 months
648.03 477.01
or less)
Total 648.03 477.01
Note 16 Current Financial Assets : Others

(` in lakhs)
March 31, 2022 March 31, 2021
Unsecured, Considered Good
Security Deposit 24.14 23.96
Total 24.14 23.96
Note 17 Current Tax Assets (Net)

(` in lakhs)
March 31, 2022 March 31, 2021
Income tax (Net of Provision for Income Tax) 654.47 526.99
Total 654.47 526.99
Note 18 Other Current Assets
(` in lakhs)
March 31, 2022 March 31, 2021
Prepaid Expenses 401.78 314.50
Balance with Statutory / Government Authorities * 3,736.80 2,749.52
Gratuity Fund Balance with LIC of India 87.54 80.06
Other Advances (including advance to suppliers) 6,935.79 3,197.27
Total 11,161.91 6,341.35
* Balances with Government Authorities primarily include amounts realisable for GST, the unutilised GST input tax credits. These
are generally realised within one year or utilised regularly. Accordingly, these balances have been classified as “Other Current
Assets”.
135
Note 19 Equity Share Capital

(` in lakhs)
March 31, 2022 March 31, 2021
AUTHORISED
4,00,00,000 Equity Shares of ` 5 each 2,000.00 2,000.00
(Previous Year: 4,00,00,000 Equity Shares of ` 5 each)
Total 2,000.00 2,000.00
ISSUED, SUBSCRIBED AND PAID-UP
(Previous Year: 3,06,59,976 Equity Shares of ` 5 each )
Total 1,533.00 1,533.00
Note 19.1 - Reconciliation of number of shares outstanding is set out below:
March 31, 2022 March 31, 2021
Number of shares at the beginning of the year 3,06,59,976 3,06,59,976
Add/ Less :- Movement of shares during the year - -
Number of shares at the end of the year 3,06,59,976 3,06,59,976
Note 19.2 - Terms/ rights attached to equity shares
The Company has one class of equity shares having a par value of ₹ 5 per share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Note 19.3 - Details of Shareholders holding more than 5 % shares of the Company
Name of share holders As at March 31, 2022 As at March 31, 2021
Number of % in Share Number of % in Share
Shares Capital Shares Capital
Prakash Damodar Kamat 44,52,835 14.52% 44,52,835 14.52%
Jyotsna Ramesh Shah 43,25,886 14.11% 43,25,886 14.11%
Tushar Ramesh Shah 36,99,182 12.07% 36,99,182 12.07%
Jayen Ramesh Shah 34,23,627 11.17% 34,23,627 11.17%
Bimal Mukesh Shah 21,16,827 6.90% 21,16,827 6.90%
Mukesh Maganlal Shah 17,64,045 5.75% 17,64,045 5.75%
136

Note 19.4 - Disclosure of Shareholding of Promoters / Promoters Group

Disclosure of shareholding of Promoters / Promoters Group as at March 31, 2022 is as follows:
Sr Promoters / Promoters Shares held % Change during

Nos Group name As at March 31, 2022 As at March 31, 2021 the year
Promoters
1 Prakash Damodar Kamat 44,52,835 14.52% 44,52,835 14.52% 0.00%
2 Mukesh Maganlal Shah 17,64,045 5.75% 17,64,045 5.75% 0.00%
3 Jayen Ramesh Shah 34,23,627 11.17% 34,23,627 11.17% 0.00%
4 Tushar Ramesh Shah 36,99,182 12.07% 36,99,182 12.07% 0.00%
5 Bimal Mukesh Shah 21,16,827 6.90% 21,16,827 6.90% 0.00%
6 Jyotsna Ramesh Shah 43,25,886 14.11% 43,25,886 14.11% 0.00%
Promoters Group
7 Jayshree Mukesh Shah 5,68,572 1.85% 5,68,572 1.85% 0.00%
8 Neeta Jayen Shah 6,59,892 2.15% 6,59,892 2.15% 0.00%
9 Bina Tushar Shah 5,74,380 1.87% 5,74,380 1.87% 0.00%
10 Shaili Nirav Doshi 1,22,898 0.40% 1,22,898 0.40% 0.00%
11 Manali Vishal Doshi 76,614 0.25% 76,614 0.25% 0.00%
12 Rhea Tushar Shah 1,06,614 0.35% 1,06,614 0.35% 0.00%
13 Esha Tushar Shah 1,06,620 0.35% 1,06,620 0.35% 0.00%
14 R M Shah HUF 3,08,542 1.01% 3,09,042 1.01% -0.16%
15 P D Kamat HUF 1,37,178 0.45% 1,37,178 0.45% 0.00%
16 M M Shah HUF 1,40,574 0.46% 1,40,574 0.46% 0.00%
17 Jayen R Shah HUF 3,06,978 1.00% 3,06,978 1.00% 0.00%
18 Tushar R Shah HUF 1,03,218 0.34% 1,03,218 0.34% 0.00%
19 Maltiben Pradipkumar Shah 19 0.00% 19 0.00% 0.00%
Total 2,29,94,501 75.00% 2,29,95,001 75.00%
There is no change in promoters / promoters group shareholding during FY 2020-21.
Note 19.5 - Details of calls unpaid

There is no calls unpaid.
Note 19.6 - Subdivision of shares
The Shareholders vide a special resolution has approved sub division of shares of the Company in the ratio of 2 shares of face
value of ₹ 5 each for every existing 1 share of the face value of ₹ 10 each.
The requisite approvals for modification of the Memorandum and Articles of Association of the Company had been accorded by
the shareholders on November 6, 2017.
137
Note 19.7 - Aggregate number of bonus shares issued, shares issued for consideration other than cash during the period of
five years immediately preceding the reporting date
(i) The Company has issued 2,80,000 Equity Shares of ₹ 10 Each in Financial year 2016-17 for consideration other than cash to
the shareholders of Fine Research & Development Centre Private Limited (“FRDCPL”) and Fine Speciality Surfactants Private
Limited (“FSSPL”) on account of Amalgamation.
(ii) During the year ended March 31, 2018, the Company has issued 1,02,19,992 Equity shares of ₹ 10 each (Pre Subdivision
of shares) pursuant to the bonus issue of shares vide special resolution approved by the shareholders dated October 16,
2017.
The Company has allotted 2 (Two) Fully paid up equity shares of ₹ 10 each for every 1 (One) Equity share held by the
shareholders (Including shares issued to the shareholders on account of amalgamation with FRDCPL & FSSPL).
Later on as per special resolution dated November 6, 2017, such shares are sub divided in to the ratio of 2 (Two) shares of
face value of ₹ 5 each for every existing 1 (One) share of the face value of ₹ 10 each.
Note 20 Other Equity

(` in lakhs)
March 31, 2022 March 31, 2021
(a) Amalgamation Reserve 1,155.24 1,155.24
(Includes ₹ 4.23 lakhs On Account of Amalgamation)
(b) Retained Earnings
Balance as at the beginning of the year 71,666.38 61,092.96
Add: Profit for the year 25,066.93 11,493.18
Less:- Dividend 3,372.60 919.76
Balance as at the end of the year (b) 93,360.71 71,666.38
(c) Other Comprehensive Income
Balance as at the beginning of the year (470.85) (703.75)
Add: Other Comprehensive Income for the year 271.50 232.90
Balance as at the end of the year (c) (199.35) (470.85)
Total (a + b + c) 94,316.60 72,350.77
138

(a) Amalgamation Reserve - At the time of business combination under common control, amlagamation adjustment reserve of
transferor company becomes amlagamation adjustment reserve of the transferee company. The Company established this
reserve at the time of business combinations made in the earlier years.
(b) Retained Earnings represents undistributed accumulated earnings of the Company as on the balance sheet date.
(c) Other Comprehensive Income represents the following -
1. The cumulative gains and losses arising on fair value changes of equity investments measured at fair value through
other comprehensive income are recognised in FVOCI - equity instruments reserve
2. The Company uses hedging instruments as part of its Management of interest rate risk associated with borrowings. For
hedging interest rate risk, the Company uses the interest rate swaps. To the extent this hedges are effective, the change
in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts recognised in the cash
flow hedged reserve is reclassified to the statement of profit and loss when the hedged item affects the statement of
profit and loss (e.g. interest payments).
3. Remeasurements, comprising of actuarial gains and losses are recognised in full in the statement of other
comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and
loss subsequently.
Note 21 Non Current Financial Liabilities : Borrowings

(` in lakhs)
March 31, 2022 March 31, 2021
Secured Loans
Foreign Currency Borrowings - External Commercial Borrowings
From Bank {Refer to note no. 21.1} 5,852.75 8,917.28
Less : Current Maturity {Refer to note no. 23} (3,344.43) (3,242.85)
Total 2,508.32 5,674.43
Note 21.1 - Disclosure to Non Current Financial Liabilities : Borrowings

(i) The foreign currency borrowings is secured against exclusive charge on specific Land & Building and Plant & Machinery
of the borrower at plot no. N-42/1, MIDC, Anand Nagar, Additional Ambernath Industrial Area, Ambernath - 421501,
Maharashtra.
(ii) Remaining tenure of the borrowing is 21 Months
Note 22 Non Current Financial Liabilities : Others
(` in lakhs)
March 31, 2022 March 31, 2021
Derivatives Designated as Hedge
Interest Rate Swaps 86.61 435.30
Total 86.61 435.30
139
Note 23 Current Financial Liabilities : Borrowings
(` in lakhs)
March 31, 2022 March 31, 2021
Secured Loans
Current maturities of Long-term Borrowings 3,344.43 3,242.85
Total 3,344.43 3,242.85
Note 23.1 - Disclosure to Current Financial Liabilities : Borrowings

Secured Loans from banks on Cash Credit are secured by way of hypothecation of stocks of raw materials, finished products,
stores and work-in-progress as well as book debts.
Note 24 Current Financial Liabilities : Trade Payables
(` in lakhs)
March 31, 2022 March 31, 2021
Outstanding due to Micro and Small Enterprises {Refer to note no. 24.1} 904.87 318.49
Others 14,239.75 9,584.93
Total 15,144.62 9,903.42
Note 24.1 - Disclosure to Current Financial Liabilities : Trade Payables

Dues to micro and small enterprises
Micro & Small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have
been identified by the Company on the basis of the information available with the Company and the auditors have relied on the
same. Sundry creditors include total outstanding dues of micro and small enterprises amounting to ₹ 904.87 lakhs (Previous
Year: ₹ 318.49 lakhs). The disclosure pursuant to MSMED Act based on the books of account is as under:

(` in lakhs)
March 31, 2022 March 31, 2021
(i) Principal amount remaining unpaid 904.87 318.49
(ii) Interest due on above and the unpaid interest 2.34 3.27
(iii) Interest paid in terms of Section 16 of MSMED Act
(iv) Amount of payments made to supplier beyond the appointed day
(v) Amount of interest due and payable for the period of delay on payment made
beyond the appointed day during the year without adding interest specified under
MSMED Act,2006
(vi) Amount of Interest accrued and remaining unpaid * 2.34 3.27
(vii) Amount of further interest remaining due and payable in succeeding years for the
purpose of disallowance under section 23 of the MSMED Act,2006
(*) The interest has not been accrued in the books of account since the outstanding amount majorly includes retention amount
payable after completion of contract period.
140

Ageing for trade payables outstanding as at March 31, 2022 is as follows

(` in lakhs)
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
(i) MSME 904.87 - - - 904.87
(ii) Others 14,054.41 111.02 13.78 60.54 14,239.75
(iii) Disputed dues - MSME - - - - -
(iv) Disputed dues - Others - - - - -

(` in lakhs)
Particulars Total
(i) MSME 318.49 - - - 318.49
(ii) Others 9,413.57 33.64 31.21 106.51 9,584.93
Note 25 Current Financial Liabilities : Others
(` in lakhs)
March 31, 2022 March 31, 2021
Trade / Security Deposits from Customers 145.58 250.89
Dividend Payable 1.59 0.72
Total 147.17 251.61
Note 26 Other Current Liabilities
(` in lakhs)
March 31, 2022 March 31, 2021
Statutory dues Payable 231.44 48.87
Contractual Liabilities {refer to note no. 29.1} 792.13 365.03
Total 1,023.57 413.90
Note 27 Current Liabilities : Provisions
(` in lakhs)
March 31, 2022 March 31, 2021
Provision for CSR Expenses {refer to note no. 36.1} 204.43 404.47
Provision for Expenses 2,826.32 940.42
Total 3,030.75 1,344.89
141
Note 28 Current Tax Liabilities (Net)
(` in lakhs)
March 31, 2022 March 31, 2021
Income Tax (Net of Income Tax paid) 1,647.11 457.11
Total 1,647.11 457.11
Note 29 Revenue from Operations
(` in lakhs)
Particulars For the year ended For the year ended
March 31, 2022 March 31, 2021
(A) Revenue from Contracts with customers
Sales - Specialty chemicals 1,84,207.55 1,09,575.36
Sales - Others 1,610.69 2,549.89
Total [A] 1,85,818.24 1,12,125.25
(B) Other Operating Revenue
Income from sale of Scrap [B] 24.59 3.76
Total [A] + [B] 1,85,842.83 1,12,129.01
Note 29.1 - Other disclosure relating to Revenue from Contracts with Customers (Ind AS 115)
The Company is primarily in the Business of manufacture and sale of Specialty chemicals. All sales are made at a point in time
and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery. The Company
evaluates the credit limits for the trade receivables. The Company does not give significant credit period resulting in no significant
financing component.
Further, disaggregation of revenue based on geography has been mentioned under segment information.
{refer to note no. 42.3}
Reconciliation of Revenue recognised from contracts with customers with Contract liabilities
(` in lakhs)
Particulars F.Y. 2021-22 F.Y. 2020-21
Opening Contract Liability 365.03 284.07
Add: Addition to contract liability during the year 13,974.98 8087.49
Less: Recognised as revenue during the year 13,547.88 8006.53
Closing Contract liability 792.13 365.03
Reconciliation of revenue as per contract price and as recognised in statement of profit and loss
(` in lakhs)
March 31, 2022 March 31, 2021
Revenue from contract with customer as per Contract price 1,87,363.98 1,12,361.95
Less: Discounts and Rebates 21.31 22.88
Less: Sales Returns 1,524.43 213.82
Revenue from contract with customer as per statement of profit and loss 1,85,818.24 1,12,125.25

142

Note 30 Other Income
(` in lakhs)
March 31, 2022 March 31, 2021
Interest Income {Refer to note no. 30.1} 626.97 708.90
Net gain on foreign exchange fluctuations 2,457.68 957.61
Reversal of Expected Credit Loss 35.47 20.66
Other Non Operating Income
Profit on Sale of Property, Plant and Equipment (Net of Loss) 7.37 1.56
Insurance claim received 192.48 13.68
Total 3,319.97 1,702.41
Note 30.1 - Particulars of Interest Income
(` in lakhs)
March 31, 2022 March 31, 2021
Interest Income from Financial Assets on Amortised Cost Basis [at EIR] 573.62 689.14
Interest Income from Non Financial Assets 53.35 19.76
Total 626.97 708.90
Note 31 Cost of Material Consumed
(` in lakhs)
March 31, 2022 March 31, 2021
Raw Materials and Packing Materials Consumed
Opening Stock at the beginning of the year 5,026.82 5,495.69
Add : Purchases and incidental expenses 1,28,326.27 71,067.14
1,33,353.09 76,562.83
Less : Closing stock at the end of the year 11,354.97 5,026.82
Total 1,21,998.12 71,536.01
Note 31.1 - Purchase of Stock-in-trade (` in lakhs)

March 31, 2022 March 31, 2021
Traded Goods - 3.99
Total - 3.99
Note 31.2 - Particulars of Material Consumed (` in lakhs)

March 31, 2022 March 31, 2021
Raw Materials 1,18,057.78 68,917.96
Packing Materials 3,940.34 2,618.05
Total 1,21,998.12 71,536.01
143
Note 32 Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-progress
(` in lakhs)
March 31, 2022 March 31, 2021
A] Opening stock of inventories
Total [A] 4,254.94 5,336.77
B] Closing Stock of inventories
Total [B] 6,834.62 4,254.94
Net Total [A] - [B] (2,579.68) 1,081.83
Note 33 Employee Benefit Expenses

(` in lakhs)
March 31, 2022 March 31, 2021
Salaries and other benefits to Directors 1,825.00 1,465.00
Salaries, wages & other benefits to others 6,206.24 5,699.37
Contribution to Provident Fund and Other Funds 223.15 209.93
Employee Welfare and other amenities 282.65 243.03
Total 8,537.04 7,617.33
As per Indian Accounting Standard 19 “Employee Benefits” the disclosures as defined are given below:
A] Defined Contribution Plans

The Company makes contributions towards provident fund and other retirement benefits to a defined contribution retirement
benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of
payroll cost to the retirement benefit plan to fund the benefit.
Contribution to Defined Contribution Plans, recognised as expense for the year is as under:
(` in lakhs)
March 31, 2022 March 31, 2021
Employer’s Contribution to Pension Scheme 85.25 80.36
Employer’s Contribution to Provident fund 39.95 32.77
Total 125.20 113.13
B] Defined Benefits Plans
The Company has used the Projected Unit Credit (PUC) actuarial method to assess the Plan’s liabilities, including those
related to death-in-service benefits. Under the PUC method, a ‘Projected accrued benefit’ is calculated at the beginning of
the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The ‘projected
accrued benefit’ is based on the Plan’s accrual formula and upon the service as at the beginning or end of the year, but
using a member’s final compensation, projected to the age at which the employee is assumed to leave active service. The
Plan Liability is the actuarial present value of the ‘projected accrued benefits’ as at the end of the year for the Plan’s active
members.
144

(i) Reconciliation of opening and closing balances of the present value of the defined benefit obligation
(` in lakhs)
March 31, 2022 March 31, 2021
Present value of Defined Benefit Obligation at beginning of the Year 1,145.35 1,017.78
Add : Service Cost
(a) Current Service Cost 80.17 74.45
(b) Past Service Cost - -
(c) Loss/(Gain) from Settlement - -
Add: Current Interest Cost 72.16 65.14
Add: Benefit Paid (82.01) (23.50)
Add: Remeasurements of Actuarial (Gain) / Loss
(a) From changes in Demographic assumptions - -
(b) From changes in Financial assumptions (34.92) 8.31
(c) From experience over the past year 20.83 3.17
Effect of Acquisition/ (Divestiture)
Transfer In/(Out) - -
Changes in Foreign Exchange Rates - -
Present value of Defined Benefit Obligation at the end of the Year 1,201.58 1,145.35
(ii) Reconciliation of opening & closing balances of fair value of plan assets
(` in lakhs)
March 31, 2022 March 31, 2021
Fair Value of Plan Asset at beginning of the Year 1,225.41 873.04
Add: Contributions Paid by Employer 71.42 311.77
Add: Benefits Paid / (Received) (82.01) (23.50)
Add: Interest Income on Plan assets 74.29 62.15
Re-measurements
(a) Actuarial (Loss)/Gain from changes in financial assumptions - -
(b) Return on plan assets excluding amount included in net interest on the net
- 1.95
defined benefit liability/(asset)
(c) Changes in the effect of limiting a net defined benefit asset to the asset
- -
ceiling
Effect of Acquisition/ (Divestiture) - -
Changes in foreign exchange rates - -
Fair Value of Plan Asset at the end of the Year 1,289.11 1,225.41
Actual Return on Plan Assets 74.29 64.10
Expected Employer Contributions for the coming year - -
(iii) Expenses recognised in Statement of Profit and Loss

(` in lakhs)
March 31, 2022 March 31, 2021
Service Cost
Net Interest on net defined benefit liability/ (asset) (2.13) 2.99
Employer Expenses 78.04 77.44
145
(iv) Net Liability/(Assets) recognised in the Balance Sheet

(` in lakhs)
March 31, 2022 March 31, 2021
Present Value of Defined Benefit Obligation at end of the Year 1,201.58 1,145.35
Less: Fair Value of Plan Asset at the end of the Year 1,289.11 1,225.41
Liability/ (Asset) recognised in the Balance Sheet (87.53) (80.06)
Funded Status [Surplus/(Deficit)] 87.53 80.06

Of which, Short term Liability
Experience Adjustment on Plan Liabilities: (Gain)/Loss 20.83 3.17
Experience Adjustment on Plan Assets: Gain/(Loss) - -
(v) Percentage Break-down of Total Plan Assets

March 31, 2022 March 31, 2021
Equity instruments 0.00% 0.00%
Debt instruments 0.00% 0.00%
Real estate 0.00% 0.00%
Derivatives 0.00% 0.00%
Investment Funds with Insurance Company 100.00% 100.00%
Of which, Unit Linked 0.00% 0.00%
Of which, Conservative/ Non-Unit Linked 100.00% 100.00%
Asset-backed securities 0.00% 0.00%
Structured debt 0.00% 0.00%
Cash and cash equivalents 0.00% 0.00%
Total 100.00% 100.00%
(vi) Assumptions used to determine the defined benefit obligation

March 31, 2022 March 31, 2021
Salary Growth Rate 5.00 % P.A. 5.00 % P.A.
Discount Rate 6.70% P.A. 6.30% P.A.
Interest Rate on net DBO 6.30% P.A. 6.40% P.A.
Withdrawal Rate 5.00 % P.A. 5.00 % P.A.
IALM (2012-14) IALM (2012-14)
Mortality Table Rate
Ultimate Ultimate
Expected weighted average remaining working life 7 years 7 years
(vii) Movement in Other Comprehensive Income

(` in lakhs)
March 31, 2022 March 31, 2021
Balance at start of year (Loss)/Gain (236.94) (227.41)
Re-measurements on DBO
(a) Actuarial (Loss)/Gain from changes in demographic assumptions - -
(b) Actuarial (Loss)/Gain from changes in financial assumptions 34.92 (8.31)
(c) Actuarial (Loss)/Gain from experience over the past period (20.83) (3.17)
146

(` in lakhs)
March 31, 2022 March 31, 2021
Re-measurements on Plan Assets
(b) Return on Plan assets, excluding amount included in net interest on the
- 1.95
net defined benefit liability/(asset)
(c) Changes in the effect of limiting a net defined benefit asset to the asset ceiling - -
Balance at end of year (Loss)/ Gain (222.85) (236.94)
(viii) Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of
the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of
Sensitivity Analysis is given below:
Particulars As at March 31, 2022 As at March 31, 2021
Increase by Decrease by Increase by Decrease by
1% 1% 1% 1%
increases by decreases by increases by decreases by
Salary Growth Rate
₹ 90.62 lakhs ₹ 81.43 lakhs ₹ 88.07 lakhs ₹ 81.09 lakhs
decreases by increases by decreases by increases by
Discount Rate
Withdrawal Rate
Mortality decreases by decreases by
- -
(increase in expected lifetime by 1 year) ₹ 0.34 lakhs ₹ 0.17 lakhs
- -
(increase in expected lifetime by 3 years) ₹ 0.85 lakhs ₹ 0.52 lakhs
Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
(ix) Movement in Surplus/ (Deficit)
(` in lakhs)
March 31, 2022 March 31, 2021
Surplus/ (Deficit) at start of year 80.06 (144.74)
Add : Net Acquisition Adjustment - -
Transfer In / (Out) on net basis - -
Movement during the year
Less : Current Service Cost (80.17) (74.45)
Less : Past Service Cost - -
Add : Net Interest on net DBO 2.13 (2.99)
Re-measurements [Gains/ (Losses)] 14.09 (9.53)
Add : Employer Contributions/ Benefits paid 71.42 311.77
Surplus/ (Deficit) at end of year 87.53 80.06
(x) Risk Factors
Through its gratuity plans the Company is exposed to a number of risks, the most significant of which are detailed below:
Interest Risk
A decrease in the bond interest rate will increase the plan liability; however, in case of gratuity plan this will be partially offset
by an increase in the return on the plan’s assets.
147
Longevity Risk
The present value of Gratuity plan liability is calculated by reference to the best estimate of the mortality of plan participants.
An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary Risk
The present value of the Gratuity plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan’s liability.
Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair
value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount
rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount
rate during the inter-valuation period.
Note 34 Finance Costs
(` in lakhs)
March 31, 2022 March 31, 2021
Bank Charges and Commission 136.08 86.56
Total 505.64 608.99
Note 35 Depreciation & Amortisation Expenses
(` in lakhs)
March 31, 2022 March 31, 2021
Depreciation on Property, Plant and Equipment 3,960.31 4,628.55
Amortisation on Intangible Assets 29.70 47.94
Total 3,990.01 4,676.49
Note 36 Other Expenses
(` in lakhs)
March 31, 2022 March 31, 2021
Advertisement & Publicity Expenses 13.20 6.64
Auditors Remuneration:
(i) Statutory Audit 27.75 26.50
(ii) Taxation Matters 9.50 8.50
(iii) Limited Review 9.75 9.00
(iv) Others 1.00 1.00
Remuneration to Cost Auditor 2.50 3.00
Consumption of Stores and Spares 37.22 36.74
Corporate Social Responsibility Expenses {refer to note no. 36.1} 397.88 398.35
Corporate Environmental Responsibility 14.76 -
Director Sitting fees 22.65 25.20
Electricity Charges 61.27 51.05
Freight and Forwarding charges 9,843.38 2,943.29
Insurance Charges 314.90 232.93
148

(` in lakhs)
March 31, 2022 March 31, 2021
Laboratory Expenses 92.73 87.71
Legal and Professional fees 529.30 382.05
Other Administrative Expenses 177.85 243.70
Postage, Telephone and Telegram 107.79 93.17
Power, Fuel and Water Charges 7,729.98 5,225.44
Printing and Stationery Expenses 35.83 33.01
Product Registration fees 1.14 0.50
Bad Debts 20.31 -
Provision for Doubtful Receivables 25.00 -
Provision for Dimunition in value of Joint Venture 120.73 39.60
Rent, Rates and Taxes 511.72 541.16
Repairs and Maintenance to:
(i) Factory Building 118.16 93.17
(ii) Machinery 878.11 659.73
(iii) Others 312.68 215.98
Sales Promotion Expenses 33.86 14.42
Sales Commission 887.53 736.06
Security Charges 260.51 278.66
Seminar & Trade fair Expenses 65.27 19.49
Subscription ,Membership, Books & Periodicals 53.86 77.68
Travelling and Conveyance Expenses 224.97 123.10
Vehicle Expenses 91.86 76.07
Total 23,034.95 12,682.90
Note 36.1 - Corporate Social Responsibility Expenses:
The Company has spent an amount of ` 235.96 Lakhs pertaining to F.Y. 2021-22 and ` 115.64 Lakhs pertaining
to F.Y. 2020-21, during the year ended March 31, 2022 and ` 242.20 Lakhs during the year ended March 31,
2021 respectively towards various CSR projects for the purpose other than construction/ acquisition of any asset.
The Company has transferred ` 163.92 Lakhs (i.e. unspent amount for the ongoing CSR projects of the
Company for the F.Y. 2021-22) to a separate bank account specially opened by the Company for the CSR.
The Company already have ` 40.50 Lakhs (i.e. unspent amount for the ongoing CSR projects of the Company for the F.Y. 2020-21)
in a separate bank account specially opened by the Company for the CSR.
(` in lakhs)
Details of CSR Expenditure: For the year ended For the year ended
March 31, 2022 March 31, 2021
A) Gross amount required to be spent by the Company during the year 397.88* 398.35
B) Amount spent during the year
(i) Construction/acquisition of any asset NIL NIL
(ii) On purposes other than (i) above 235.96 242.2
C) Details related to spent / unspent obligations:
(i) Amount spent in relation to Ongoing Project 17.00 15.2
(ii) Amount spent in relation to other than Ongoing Project 218.96 227
(iii) Amount transferred to Unspent CSR Account for Ongoing Projects 163.92 156.15
*The Company has received ` 2.00 lakhs on account of GST refund which will be added to the CSR obligation of the Company for
the F.Y. 2021-22 as mentioned in point no. A. Considering the said refund amount, the total CSR obligation of the Company for
the F.Y. 2021-22 was ` 399.88 Lakhs.
149
Note 37 Reconciliation of Reported Profit to Total Tax Expense
(` in lakhs)
March 31, 2022 March 31, 2021
Profit before Tax 33,676.72 15,623.88
Applicable Income Tax rate 25.17% 25.17%
Expected income tax expense 8,475.76 3,932.22
Tax effect of adjustments to reconcile expected income tax expense to reported
income tax expense:
Effect of Expenses / Provisions not deductible in determining taxable profit 139.25 276.12
Other Permanent Differences 134.99 111.66
Reported Income Tax Expense 8,750.00 4,320.00
Note 38 Deferred Tax Expenses / (Income)
(` in lakhs)
March 31, 2022 March 31, 2021
Others (24.35) 101.87
Sub Total (A) (24.35) 101.87
Others - -
Sub Total (B) 115.86 292.76
Deferred tax Expenses / (Income) [A-B] (140.21) (190.89)
Note 39 Earnings Per Equity Share

March 31, 2022 March 31, 2021
(a) Computation of Profit (numerator)
Net profit attributable to shareholders (₹ in lakhs) 25,066.93 11,493.18
(b) Weighted average number of shares (denominator) 3,06,59,976 3,06,59,976
Weighted Average number of Equity Shares used as denominator for calculating
3,06,59,976 3,06,59,976
Basic & Diluted EPS
EPS (Basic & Diluted) (In ₹) 81.76 37.49
150

Note 40 Contingent Liabilities and Commitments
(` in lakhs)
March 31, 2022 March 31, 2021
Contingent Liabilities
Income tax liability that may arise in respect of matters in appeal 574.97 532.17
Indirect tax liability that may arise in respect of matters in appeal 27.16 27.16
Commitments
Estimated contracts remaining to be executed on capital account not provided 1,488.25 2,207.81
Bank Guarantee 758.61 833.20
The Financial Statements of the Company for the year ended March 31, 2022 has been approved by the Board of Directors in
its meeting held on May 27, 2022. For the year ended March 31, 2022, dividend of ₹ 9 per share (Total dividend of ₹ 2759.40
lakhs) has been proposed by the Board of Directors at its meeting held on May 27, 2022. The same is subject to the approval of
shareholders in the ensuing Annual General Meeting of the Company and therefore proposed dividend has not been recognised
as liability as at the Balance Sheet Date in line with Ind AS - 10 “Events after the Reporting Period.”
It is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above contingent
liabilities pending resolution of the respective proceedings. The Company does not expect any reimbursement in respect of the
above contingent liabilities.
Note 41 Related Party Transactions Disclosure:

The Disclosure pertaining to the related parties as required by Indian Accounting Standard 24 issued by Ministry of Corporate
Affairs (MCA), as prescribed in section 133 read with companies (Indian accounting Standards) Rule, 2015 as amended are
indicated below
(a) List of Related Parties and relationships

Sr. No Name of the Related Party Nature of Relationship
Key Management Personnel (KMP)
1 Prakash Damodar Kamat Chairman
2 Mukesh Maganlal Shah Managing Director
3 Jayen Ramesh Shah Executive Director & CEO
4 Tushar Ramesh Shah Executive Director & CFO
5 Bimal Mukesh Shah Executive Director
6 Thiruvengadam Parthasarathi Non-Executive Independent Director
7 Mahesh Pansukhlal Sarda Non-Executive Independent Director
8 Kaushik Dwarkadas Shah Non-Executive Independent Director
9 Prakash Krishnaji Apte Non-Executive Independent Director
10 Pratima Madhukar Umarji Non-Executive Independent Director
151
Relative’s of KMP
11 Jyotsna Ramesh Shah
12 Jayshree Mukesh Shah
13 Neeta Jayen Shah
14 Bina Tushar Shah
15 Esha Tushar Shah
16 Rhea Tushar Shah
Relative of KMP
17 Ramesh M. Shah - HUF
18 Prakash D. Kamat - HUF
19 Mukesh M. Shah - HUF
20 Jayen R. Shah - HUF
21 Tushar R. Shah - HUF
22 Manali Vishal Doshi
23 Shaili Nirav Doshi
Significant influence by KMP
24 Smoothex Chemicals Private Limited
25 Fine Organics
26 Olefine Organics
27 Oleofine Organics SDN. BHD.
28 Oleofine Organics (Thailand) Co., Ltd.(^^)
29 Fine Organic Industries
Subsidiaries
30 Fine Organics (USA) Inc.
Subsidiaries
31 Fine Organics Europe BV
Joint Ventures
32 Fine Zeelandia Private Limited
33 FineAdd Ingredients GmbH Joint Venture Entities
34 Fine Organic Industries (Thailand) Co., Ltd.(^)
152

(b) Transactions (in aggregate) with Related Parties during the period and their closing balances at the period end
(` in lakhs)
Sr. Particulars Transactions during the period Closing Balance
No. April 2021 to April 2020 to As at As at
March 2022 March 2021 March 31, 2022 March 31, 2021
1 Director's Remuneration
Prakash Damodar Kamat 350.00 288.00 46.00 -
Mukesh Maganlal Shah 350.00 288.00 30.50 -
Jayen Ramesh Shah 350.00 288.00 30.50 -
Tushar Ramesh Shah 350.00 288.00 30.50 -
Bimal Mukesh Shah 350.00 288.00 30.50 -
Thiruvengadam Parthasarathi 15.00 5.00 13.50 4.50
Mahesh Pansukhlal Sarda 15.00 5.00 13.50 4.50
Kaushik Dwarkadas Shah 15.00 5.00 13.50 4.50
Prakash Krishnaji Apte 15.00 5.00 13.50 4.50
Pratima Madhukar Umarji 15.00 5.00 13.50 4.50
2 Director’s Sitting Fees
Thiruvengadam Parthasarathi 4.50 5.25 0.14 -
Mahesh Pansukhlal Sarda 4.20 4.80 0.14 -
Kaushik Dwarkadas Shah 4.95 5.25 - -
Prakash Krishnaji Apte 5.25 5.70 - -
Pratima Madhukar Umarji 3.75 4.20 0.14 -
3 Sale of Goods
Oleofine Organics SDN. BHD. 871.57 607.79 61.02 51.06
Oleofine Organics (Thailand) Co., Ltd. (^^) - 86.52 - -
Fine Organics (USA) Inc. 9,495.55 1,875.75 4,744.22 853.59
Fine Organics Europe BV 6,971.55 3,512.23 2,487.07 1,326.10
Fine Zeelandia Private Limited 1,642.51 1,296.52 - -
4 Sale of Licence
Fine Zeelandia Private Limited - 116.53 - -
5 Sale of Components
Oleofine Organics SDN. BHD. - 9.92 - 9.44
6 Purchase of Goods
Oleofine Organics SDN. BHD. - 7.67 - -
7 Purchase of Asset / Investment
Fine Organic Industries 0.12 - - -
Tushar Shah (@) 6.81 - - -
8 Dividend paid
Prakash Damodar Kamat 489.81 133.59 - -
Jyotsna Ramesh Shah 475.85 129.78 - -
Tushar Ramesh Shah 406.91 110.98 - -
Jayen Ramesh Shah 376.60 102.71 - -
Bimal Mukesh Shah 232.85 63.50 - -
Mukesh Maganlal Shah 194.04 52.92 - -
Neeta Jayen Shah 72.59 19.80 - -
Bina Tushar Shah 63.18 17.23 - -
Jayshree Mukesh Shah 62.54 17.06 - -
Ramesh M. Shah HUF 33.99 9.27 - -
Jayen R. Shah HUF 33.77 9.21 - -
Mukesh M. Shah HUF 15.46 4.22 - -
Prakash D. Kamat HUF 15.09 4.12 - -
Shaili Nirav Doshi 13.52 3.69 - -
Rhea Tushar Shah 11.73 3.20 - -
Esha Tushar Shah 11.73 3.20 - -
Manali Vishal Doshi 8.43 2.30 - -
Tushar R. Shah HUF 11.35 3.10 - -
153
(` in lakhs)
9 Salary to Relatives
Rhea Tushar Shah 0.58 - - -
10 Export Commission
Oleofine Organics SDN. BHD. 4.12 7.20 - 1.11
11 Security Deposit - Rent (*)
Fine Organic Industries - - 15.90 14.46
Olefine Organics - - 2.40 3.00
12 Rent Expenses
Fine Organics 4.50 3.38 - -
Fine Organic Industries 144.42 122.10 - -
Olefine Organics 66.36 53.46 - -
Smoothex Chemicals Private Limited 4.50 3.38 - -
13 Prepaid Rent Balance (*)
Olefine Organics - - 0.60 -
14 Advance given to/repaid from
Subsidiaries (*)
Fine Organics (USA) Inc. (279.56) (118.66) - 279.56
15 Reimbursement of Expenses
Mukesh Maganlal Shah - (1.47) - -
Jayen Ramesh Shah - 0.01 - -
Tushar Ramesh Shah 0.89 - - -
16 Investments in equity instruments
Fine Organics (USA) Inc. (*) - - 189.13 185.36
Fine Organics Europe BV (*) ($) (@) - - 34.84 28.03
Fine Zeelandia Private Limited - - 4,028.43 4,028.43
FineADD Ingredients GmbH {refer to
- - - 120.73
note no. 7.1}
Fine Organic Industries (Thailand) Co.,
54.00 - 54.00 -
Ltd. (^)
17 Interest Income on Advances /
Security deposit (*)
Fine Organics (USA) Inc. 19.05 26.16 - 26.16
Fine Organic Industries 1.45 1.44 1.45 1.44
Olefine Organics 0.26 0.32 0.26 0.32
^^ Ceased to become related party wef October 14, 2020.
* Includes Ind AS adjustments
^ Became a joint venture wef May 31, 2021.
($) Wholly owned Subsidiary wef March 23, 2022.
(@) On March 23, 2022 Fine Organic Industries Limited acquired stake from a minority shareholder in Fine Organics Europe
BV, a subsidary of Fine Organic Industries Limited
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2022, the
Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2021:
154

` Nil). 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. (Disclosure of compansation paid to key managerial person).
Note 42 Operating Segment Disclosure

The Company has identified its reportable segment as “Specialty chemicals” since the Chief Operating Decision Maker (CODM)
evaluates the Company’s performance as a single segment in terms of Indian Accounting Standard 108 issued by Ministry of
Corporate Affairs (MCA), as prescribed in section 133 read with companies (Indian accounting Standards ) Rule, 2015 as amended
are indicated below
Note 42.1 - Disclosure for assets outside India

The Company does not have any non current non financial assets outside India
Note 42.2- Disclosure for major customers more than 10%

There are no transactions with single external customer which amounts to 10% or more of the Company ‘s revenue.
Note 42.3- Geographic information

The geographic information analyses the Company’s revenue and non-current assets by the Company’s country of domicile and
other countries. In presenting the geographical information, segment revenue has been based on the geographic location of
customers and segments assets were based on the geographic location of the respective non-current assets.
The product offerings which are part of the specialty chemicals portfolio of the Company are managed on a worldwide basis from
India.
The Company has disaggregated its revenue from contract with customers and trade receivables on a geographical basis as
under:
(` in lakhs)
Particulars Revenue from contracts with customers
For the year ended For the year ended
March 31, 2022 March 31, 2021
- In India 74,078.70 51,019.24
- Outside India 1,11,739.54 61,106.01
Total Revenue 1,85,818.24 1,12,125.25
(` in lakhs)
March 31, 2022 March 31, 2021
Trade Receivables
- In India 7,766.52 5,160.87
- Outside India 25,493.43 12,492.82
Less : Expected Credit Loss on Trade Receivables (100.87) (136.34)
Total 33,159.08 17,517.35
Note 43 Internal Financial Control System

The Company implements and manages efficient internal control systems to ensure that all assets are safeguarded
and protected against loss from unauthorised use or disposition, by maintaining proper records and reports in a timely
manner. This is supplemented by an extensive programme of internal audit, reviewed by the Management and relevant
policies, guidelines and procedures. The internal control is designed to ensure the reliability of financial and other
records for preparing precise financial statements, maintaining accountability of assets and more. The Management is
committed to regularly reviewing and making relevant amendments to the internal control system, as and when required.
155
The Company’s process framework provides well-documented standard operating procedures and authorities with adequate
built-in controls. The internal control is further enhanced by an extensive programme of internal, external audits and periodic
reviews by the Management.
The Company adopts and follows a risk mitigation strategy and reviews risk occurrence to find probable mitigation strategies.
The Company’s Risk Management Committee reviews risks and mitigation measures at regular intervals, and accordingly initiates
corrective steps at times of need.
Note 44 Disclosure Pursuant to section 186 (4) of The Companies Act, 2013
(a) Investment Made in Subsidiaries and Joint Venture Companies (At Amortised Cost)
(` in lakhs)
Name of entity As at As at
March 31, 2022 March 31, 2021
Fine Organics (USA), Inc. (#) 189.13 185.36
Fine Organics Europe BV (@) 34.84 28.03
Fine Zeelandia Private Limited 4,028.43 4,028.43
FineADD Ingredients GmbH {refer to note no. 7.1} - 120.73
Fine Organic Industries (Thailand) Co., Ltd. 54.00 -
(#) Amount increased on account of Ind AS adjustment towards Notional Interest and not for actual addition in Investment.
(@) Amount increased on account of stake acquired from a minority shareholder in Fine Organics Europe BV.
(b) Advances Given to wholly owned subsidiary

(` in lakhs)
March 31, 2022 March 31, 2021
Fine Organics (USA), Inc. - 279.56
Note 45 Operating Lease commitments - Company as lessee

The Company’s significant leasing arrangements are in respect of operating leases for building premises (offices, plant, godowns
etc). These leasing arrangements are non-cancellable in nature, and are usually renewable by mutual consent on mutually
agreeable terms.
(` in lakhs)
March 31, 2022 March 31, 2021
Lease payment recognised in the statement of profit and loss 43.35 60.12
Minimum lease payments under non cancellable operating leases payable
Not later than 1 year 38.92 39.03
Later than 1 year but not less than 5 years 155.68 156.12
Later than 5 years 3,057.87 3,096.36
Total future minimum lease payment 3,252.47 3,291.51
156

Note 46 Fair Values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments
(` in lakhs)
Particulars Note Carrying Value Fair Value
Nos As at As at As at As at
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
FINANCIAL ASSETS
A] Financial assets at fair value through statement of
- - - -
profit & loss
B] Financial assets at fair value through OCI
Non Current Financial Assets: Investments Note 7 4.83 4.80 4.83 4.80
C] Financial assets at amortised cost
Non Current Financial Assets : Investments Note 7 4,306.40 4,362.55 4,306.40 4,362.55
Non Current Financial Assets : Loans Note 8 131.59 403.05 131.59 403.05
Non Current Financial Assets : Others Note 9 373.27 255.72 373.27 255.72
Current Financial Assets : Trade Receivables Note 13 33,159.08 17,517.35 33,159.08 17,517.35
Current Financial Assets : Cash and Cash Equivalents Note 14 20,931.54 25,640.72 20,931.54 25,640.72
Current Financial Assets : Bank Balances Note 15 648.03 477.01 648.03 477.01
Current Financial Assets : Others Note 16 24.14 23.96 24.14 23.96
FINANCIAL LIABILITIES
A] Financial liabilities at fair value through statement of - - - -
profit & loss
B] Financial liabilities at amortised cost:
Non Current Financial Liabilities : Borrowings Note 21 5,852.75 8,917.28 5,852.75 8,917.28
(Including Current Maturity on Long Term Borrowing) & 23
Non Current Financial Liabilities : Others Note 22 86.61 435.30 86.61 435.30
Current Financial Liabilities : Trade Payables Note 24 15,144.62 9,903.42 15,144.62 9,903.42
Current Financial Liabilities : Others Note 25 147.17 251.61 147.17 251.61
In all cases, the Management has assessed that the fair value of all financial assets and liabilities at Amortised Cost approximate
their carrying amounts as stated above.
157
Note 47 Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.
Note 47.1 - Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at March 31, 2022:
(` in lakhs)
Particulars Fair value measurement using
Date of Valuation Total Level 1* Level 2* Level 3*
FINANCIAL ASSETS
A) Financial assets at fair value through statement
- - - - -
of profit & loss
Non Current Financial Assets: Investments March 31, 2021 4.83 - 4.83 -
{Refer Note No.
47.3}
C) Financial assets at amortised cost
Non Current Financial Assets : Investments March 31, 2022 4,306.40 - - 4,306.40
Non Current Financial Assets : Loans March 31, 2022 131.59 - - 131.59
Non Current Financial Assets : Others March 31, 2022 373.27 - - 373.27
Current Financial Assets : Trade Receivables March 31, 2022 33,159.08 - - 33,159.08
Current Financial Assets : Cash and Cash
March 31, 2022 20,931.54 - - 20,931.54
Equivalents
Current Financial Assets : Bank Balances March 31, 2022 648.03 - - 648.03
Current Financial Assets : Others March 31, 2022 24.14 - - 24.14
A) Financial liabilities at fair value through
- - - - -
statement of profit & loss
Non Current Financial Liabilities : Borrowings
(Including Current Maturity on Long Term March 31, 2022 5,852.75 - - 5,852.75
Borrowing)
Non Current Financial Liabilities : Others March 31, 2022 86.61 86.61
Current Financial Liabilities : Trade Payables March 31, 2022 15,144.62 - - 15,144.62
Current Financial Liabilities : Others March 31, 2022 147.17 - - 147.17
*Refer Note no .2.5 for Fair value measurement method
158

(` in lakhs)
FINANCIAL ASSETS
- - - - -
profit & loss
{Refer Note No.
47.3}
Current Financial Assets : Cash and Cash Equivalents March 31, 2021 25,640.72 - - 25,640.72
A] Financial liabilities at fair value through statement
- - - -
of profit & loss
Non Current Financial Liabilities : Borrowings March 31, 2021 8,917.28 - - 8,917.28
(Including Current Maturity on Long Term Borrowing)
Non Current Financial Liabilities : Others March 31, 2021 435.30 - 435.30

159
Note 47.3 - Measurement of Fair Value : Valuation techniques

The following table shows the valuation techniques used in measuring Level 2 and 3 fair values for assets and liabilities carried at
fair value through OCI and profit or loss
Type Valuation Technique

FINANCIAL ASSETS
Not Applicable
profit & loss
Non current financial assets: Investments Level - 2: The fair value is determined as on the reporting
date based on value per share derived from net worth of
the Company as per the latest available annual report,
since there is no other publically available market based
information for similar entities.
Non Current Financial Assets : Investments
Level - 3: The fair value is determined as on the reporting
Non current financial assets: Loans
date based on amortised cost method by considering the
Non current financial assets: Others discount rates based on yields of comparable investments
Current financial assets : Trade receivables or the transaction values where these are short term in
nature.
Current financial assets : Cash and cash equivalents
Current financial assets : Bank balances
Current financial assets : Others
A] Financial liabilities at fair value through statement of
Not Applicable
profit & loss
Non current financial liabilities : Borrowings
(including current maturity of long term borrowing)
Level - 3: The fair value is determined as on the reporting
Non Current Financial Liabilities : Others date based amortised cost method.
Current financial liabilities : Trade payables
Current financial liabilities : Others
160

Note 48 Capital Management

For the purposes of the Company’s capital Management, capital includes issued equity share capital, all other reserves and
borrowed capital less reported cash and cash equivalents.
The primary objective of the Company’s capital Management is to maintain an efficient capital structure to reduce the cost of
capital, support the corporate strategy and to maximise shareholder’s value.
The Company’s policy is to borrow primarily through banks to maintain sufficient liquidity. The Company also maintains certain
undrawn committed credit facilities to provide additional liquidity. These borrowings, together with cash generated from
operations are utilised for operations of the Company.
The Company monitors capital on the basis of cost of capital. The Company is not subject to any externally imposed capital
requirements.
The following table summaries the capital of the Company:
(` in lakhs)
March 31, 2022 March 31, 2021
Long Term Borrowing (including current maturities of long term borrowings) 5,852.75 8,917.28
Less: Cash and cash equivalents (#) 21,915.86 26,337.33
TOTAL BORROWING (NET) (16,063.11) (17,420.05)
Equity Share Capital 1,533.00 1,533.00
Other Equity 94,316.60 72,350.77
TOTAL EQUITY 95,849.60 73,883.77
Gearing ratio (Net Debt/ Total Equity) (0.17) (0.24)
No changes were made to the objectives, policies or processes for managing capital during the years ended March 31, 2022 and
March 31, 2021.
(#) Including Bank balances referred in Note No .15
Note 49 Financial Risk Management Framework

A) Financial Risk Management
The Company’s activities primarily expose it to various risks such as Market Risks, Credit Risk and Liquidity Risk. Those are
explained below :
1) Market Risk
Market Risks arise due to Changes in Interest rates, Foreign Exchange rates and changes in Market prices.
(i) Interest Rate Risks

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market rates. The Company’s exposure to the risk of changes in market rates relates primarily to the
Company’s long-term debt obligations with floating interest rates.
The Company’s policy is generally to undertake long-term borrowings using facilities that carry floating-interest rate.
The Company manages its interest rate risk by entering into interest rate swaps, in which it agrees to exchange, at
specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an
agreed-upon notional principal amount.
Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk
due to their short tenure.
As the Company does not have exposure to any floating-interest bearing assets its interest income and related cash
inflows are not materially affected by changes in market interest rates.
161
As at the end of reporting period, the Company had following long term variable interest rate borrowings and derivatives
to hedge the interest rate risk are as follows:
(` in lakhs)
March 31, 2022 March 31, 2021
Notional value of liability 5,852.75 8,917.28
Less: Interest Rate Swap on above Liability 5,852.75 8,917.28
Net exposure - -
Disclosure of Effects of Interest Rate Swaps Hedge accounting on Financial Position as at March 31, 2022
(` in lakhs)
Particulars Nominal value of Carrying amout Maturity date Hedge ratio
liability of hedging
instrument
Interest Rate Risk
- Interest Rate Swaps 5,852.75 - December 2023 1:1
Disclosure for gain / (loss) recognised in cashflow hedging reserve and recycled during the year
For FY 2021-22
(` in lakhs)
Particulars Opening Net amount Recycled Closing
Balance recognised Net Net amount Total Balance
amount to added to non amount
P&L financial assets recycled
Forex - Interest Rate Swaps 435.30 - - 348.69 348.69 86.61
For FY 2020-21
(` in lakhs)
Balance recognised Net Net amount Total Balance
amount to added to non amount
P&L financial assets recycled
Forex - Interest Rate Swaps 755.86 - 320.56 320.56 435.30
Interest rate sensitivity
No sensitivity analysis is prepared as the Company does not expect any material effect on the Company’s results
arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the
end of the reporting period.
(ii) Foreign Currency Risks
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures
in US$ and Euro.
a) Exposure in foreign currency - Hedged
The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the
underlying transactions and firm commitments. The Company does not enter into any Derivative Instruments for trading
and Speculation purposes.
162

The Forward Exchange Contracts used for hedging foreign exchange currency exposure and outstanding as at reporting
date as at under:
(Amount in lakhs)
No. of Amount Indian No. of Amount Indian
Contracts in Foreign Rupee Contracts in Foreign Rupee
Currency Equivalent Currency Equivalent
Forward Contract to Sell 122 $197.25 14,953.52 29 $28.50 2,094.75
Forward Contract to Purchase 21 $61.62 4,671.15
Forward Contract to Sell 51 € 64.25 5,439.41 36 € 25.00 2,152.50
b) The unhedged exposures as at the end of the reporting date as as follows

(Amount in lakhs)
Indian Foreign Indian Foreign
Rupees Currency Rupees Currency
Financial Assets
Trade Receivables 3693.89 $48.71 7,369.26 $100.31
Trade Receivables 1002.6 € 11.84 634.87 € 7.43
Advance to Subsidiary - - 279.56 $3.50
Trade Payables 606.25 $8.34
Trade Payables 5.63 € 0.07 3.73 € 0.05
Long term Borrowings 5852.75 $77.21 8,917.28 $121.32
Net Exposure (2,158.86) ($28.50) (1,874.71) ($25.85)
Net Exposure 996.97 € 11.77 631.14 € 7.38
In case of change in the currencies by 1%, the change in the profit would be as under :
(Amount in lakhs)
Change USD $ EURO € Change USD $ EURO €
1% Depreciation in ₹ 1% (21.59) 9.97 1% (18.75) 6.31
1% Appreciation in ₹ 1% 21.59 (9.97) 1% 18.75 (6.31)
(iii) Market Price Risks
The Company is affected by the price stability of certain commodities. Purchases of Raw Materials from our top 2
suppliers constitute approximately 39.09% of our total purchases made from all suppliers. We do not enter into supplier
contracts for duration of period of more than 3-6 months. If suppliers do not supply us, there can be no assurance that
we will be able to identify alternative suppliers in future at similar cost. Any disruption in the supply of the raw materials
could disrupt our manufacturing operations, which could have a material adverse effect on our business, results of
operations and financial condition.
The Company’s total imports of raw materials is approximately 31.00% (P.Y.: 26.29%) of the total raw material consumed.
The cost of our imported raw material affected by the fluctuation in the rate of foreign exchange of the currency in which
we purchase these raw materials (primarily in US$) and the Rupee.The Company has a risk Management framework
aimed at prudently managing the price risk arising from the volatility in commodity prices and freight costs and tries to
pass on increases in the costs to its customers to whatever extent possible.
2) Credit Risk
Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company.
It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares and Balances with
Banks.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low
credit risk.
163
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates, also has
an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits (generally
between 30 to 90 days) and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year
ended March 31, 2022 is 0.18% (P.Y. 0.57%) of the total trade receivables. The Company uses Expected Credit Loss (ECL)
Model to assess the impairment loss or gain.
3) Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by
continuously monitoring forecasts and actual cash flows.
The Company has obtained fund based borrowings from banks. The Company invests its surplus funds in bank fixed deposit
which carry low credit risks.
All payments are made on due dates and requests for early payments are entertained after due approval and availing early
payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are
planned.
Maturity to Financial Liabilities:
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include contractual interest payments.
(` in lakhs)
Particulars Outstanding Less than 1 1-3 years 3-5 years More than 5
Balance as year years
on March 31,
2022
Long term Borrowings
(including Current maturity on Long Term 5,852.75 3,344.43 2,508.32 - -
Borrowings)
Trade Payable 15,144.62 15,144.62 - - -
Securities Deposits taken 145.58 145.58 - - -
Dividend Payable 1.59 1.59 - - -
Statutory Dues Payable 231.44 231.44 - - -
Contractual Liabilites 792.13 792.13 - - -
Provision - Others 3,030.75 3,030.75 - - -
Income Tax 1,647.11 1,647.11 - - -
Note 50 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off during the year
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

164

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(vii) The Company does not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.
Note 51 Ratios
2021-22 2020-21
Sr. Ratio Numerator Denominator Current Period Previous Period % Variance Reason for variance
No. Ratio Ratio
1 Current Ratio Current Assets Current Liabilities 3.56 3.93 (9.39) -
2 Debt-Equity Ratio Total Debt Shareholder’s Equity 0.06 0.12 (49.41) Increase in Shareholders equity
and reduction in borrowings due to
repayment of debts has made ratio
to improve
3 Debt Service Net Profit before Interest & Lease 10.95 5.05 116.94 This ratio has improved due to higher
Coverage Ratio tax+Depreciation+ Payments + Principal earnings and repayment of debt.
Lease rent+Interest- Repayments
Profit on Sales of
Fixed Assets
4 Return on Equity Net Profits after Average Shareholder’s 29.54% 16.97% 74.02 Increase in ratio as the Company has
Ratio taxes – Preference Equity earned more profit as compared to
Dividend (if any) previous year
5 Inventory Net Credit Sales Average Inventories 11.97 9.82 21.87
-
Turnover Ratio
6 Trade Receivables Net Credit Sales Average Accounts 7.33 7.00 4.75
-
Turnover Ratio Receivable
7 Trade Payables Net Credit Purchases Average Trade Payables 10.25 7.75 32.14 Increase in ratio as increase in
Turnover Ratio purchases during the year and
efficient payable Management.
8 Net Capital Net Credit Sales Average Working Capital 3.43 2.65 29.50 This ratio is higher due to increase
Turnover Ratio in Revenue and efficient usage of
working capital
9 Net Profit Ratio Net Profit after Tax Revenue from Operations 13.49% 10.25% 31.59 Increase in net profit ratio is on
account of increase in profitability of
the Company mainly driven by better
Sales realisation
10 Return on Capital Earning before Tangible Net Worth + 33.61% 19.60% 71.44 Ratio has improved on account
Employed interest and taxes Total Debt + Deferred Tax of higher earning due to better
Liability operating margin as compared
to previous financial year and
repayment of debt.
11 Return on Unrealised gain on Unquoted investment 0.63% 4.35% (85.62) Ratio has declined due to decrease in
Investment investment in equity instrument in market value of investment
Saraswat Co-op Bank Ltd
165
Independent Auditor’s Report
To, Ethics issued by the Institute of Chartered Accountants of

The Members of India (hereinafter referred to as “the ICAI”) together with
the ethical requirements that are relevant to our audit of
the Consolidated Ind AS Financial Statements under the
Report on the Audit of the Consolidated Ind AS provisions of the Act and the Rules made there under, and we
Financial Statements have fulfilled our other ethical responsibilities in accordance
Opinion with these requirements and the ICAI’s Code of Ethics. We
believe that the audit evidence we have obtained is sufficient
We have audited the accompanying Consolidated Ind AS
and appropriate to provide a basis for our audit opinion on
Financial Statements of Fine Organic Industries Limited
the Consolidated Ind AS Financial Statements.
(herein referred to as the “Parent Company”) and its
Subsidiaries (the Parent Company and its Subsidiaries Emphasis of Matters
together referred to as “the Group”) and Joint Venture We draw attention to Note No. 7.1 of the Consolidated Ind AS
Companies, which comprise the Consolidated Balance Sheet Financial Statement with respect to provision for diminution
as at March 31, 2022, and the Consolidated Statement of in the value of it’s investment in Joint Venture Company
Profit and Loss (including other comprehensive income), “FineADD Ingredients GmbH”.
the Consolidated Statement of Changes in Equity and the
Our opinion is not modified in respect of this matter.
Consolidated Statement of Cash Flow for the year then ended,
and notes to the Consolidated Ind AS Financial Statements, Key Audit Matters
including a summary of the significant accounting policies Key Audit Matters are those matters that, in our professional
and other explanatory information (Collectively referred to as judgment, were of most significance in our audit of the
“the Consolidated Ind AS Financial Statements”). Consolidated Ind AS Financial Statements of the current
period. These matters were addressed in the context of our
In our opinion and to the best of our information and according
audit of the Consolidated Ind AS Financial Statements as a
to the explanations given to us, the aforesaid Consolidated
whole, and in forming our opinion thereon, and we do not
Ind AS Financial Statements give the information required
provide a separate opinion on these matters.
by the Companies Act 2013, (hereinafter referred to as
“the Act”) in the manner so required and give a true and fair We have determined the matters described below to be the
view in conformity with the Indian Accounting Standards key audit matters to be communicated in our report. We
(hereinafter referred to as “Ind AS”) prescribed under section have fulfilled the responsibilities described in the Auditor’s
133 of the Act read with the Companies (Indian Accounting responsibilities for the audit of the Consolidated Ind AS
Standards) Rules, 2015, as amended, and other accounting Financial Statements section of our report, including in
principles generally accepted in India, of the Consolidated relation to these matters. Accordingly, our audit included
state of affairs of the Group as at March 31, 2022, and their the performance of procedures designed to respond to our
Consolidated profit, (including other comprehensive income), assessment of the risks of material misstatement of the
their Consolidated statement of changes in equity and their Consolidated Ind AS Financial Statements. The results of
Consolidated cash flows for the year ended on that date. our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit
Basis for Opinion
opinion on the accompanying Consolidated Ind AS Financial
We conducted our audit of the Consolidated Ind AS Financial Statements.
Statements in accordance with the Standards on Auditing
A. Revenue Recognition
(SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described For the year ended March 31, 2022, the Group has
in the Auditor’s Responsibilities for the Audit of Consolidated recognised revenue from contracts with customers
Ind AS Financial Statements section of our report. We are amounting to ₹ 1,87,601.33 lakhs.
independent of the Group in accordance with the Code of Revenue from contracts with customers is recognised
166
when control of the goods or services are transferred •• To test cut off selected sample of sales transactions
to the customer at an amount that reflects the made pre and post-year end, agreeing the period of
consideration to which the Group expects to be entitled revenue recognition to third party support, such as
in exchange for those goods or services. transporter invoice and customer confirmation of
The Group has generally concluded that as principal, receipt of goods.
it typically controls the goods or services before •• Tested the provision calculations related to discounts
transferring them to the customer. and rebates by agreeing a sample of amounts recognised
The variety of terms that define when controls are to underlying arrangements with customers and other
transferred to the customer, as well as the high value of supporting documents.
the transactions, give rise to the risk that revenue is not •• Performed analytical procedures of revenue by streams
recognised in the correct period. to identify any unusual trends.
Revenue is measured net of returns and allowances, •• The Group has provided confirmations from customers
cash discounts, trade discounts and volume rebates on sample basis to support existence assertion of trade
(collectively ‘discount and rebates’). There is a risk that receivables and assessed the relevant disclosures made
these discount and rebates are incorrectly recorded as in the Consolidated Ind AS Financial Statements; to
it also requires a certain degree of estimation, resulting ensure revenue from contracts with customers are in
in understatement of the associated expenses and accordance with the requirements of relevant Indian
accrual. accounting standards (Ind AS).
Revenue is also an important element of how the Group
B. Capitalisation of Property, Plant and Equipment
measures its performance. The Group focuses on

During the year ended March 31, 2022, the Parent
revenue as a key performance measure, which could
Company has capitalised significant part of plant namely
create an incentive for revenue to be recognised before
‘E – 73’ located at Patalganga (Maharashtra) to expand
the risk and rewards have been transferred.
the production capacity. Out of the total addition of
Accordingly, due to the significant risk associated with
₹ 7,318.00 lakhs towards Property, Plant and Equipment
revenue recognition in accordance with terms of Ind AS
as per Consolidated Ind AS Financial Statements,
115 ‘Revenue from contracts with customers’, it was
₹ 6,171.95 lakhs were pertaining to Plant E-73. Plant
determined to be a key audit matter in our audit of the
has been successfully commissioned and capitalised
Consolidated Ind AS Financial Statements.
during the year.
{Refer to note no. 30 of the Consolidated Ind AS Financial
Significant level of judgement is involved to ensure that
Statements}.
the aforesaid capital expenditure / additions meet the
Auditors’ Response: recognition criteria of Ind AS 16 - Property, Plant and
•• Our audit procedures included the following: Equipment, specifically in relation to costs directly and
•• Assessed the Parent Company’s revenue recognition indirectly associated with it to be ready for intended
procedure as per Ind AS 115 ‘Revenue from contracts use. As a result, the aforesaid matter was determined to
with customers’. be a key audit matter.
•• Assessed the design and tested the operating {Refer to note no. 4 & 5 of the Consolidated Ind AS
effectiveness of internal controls related to revenue Financial Statements}
recognition, discounts and rebates. Auditors’ Response:
•• Performed sample tests of individual sales transaction •• Performed walk-through of the capitalisation process
and traced to sales invoices, sales orders and other and tested the design and operating effectiveness of the
related documents. Further, in respect of these samples, controls in the process.
checked that the revenue has been recognised as per
the terms.
167
•• Assessed the nature of the additions made to Property, •• Completeness and accuracy of information used in the
Plant and Equipment and Capital Work-in-Progress estimation of probability of default.
(CWIP) on a test check basis to test that they meet the •• Status of recovery trade receivables as on the report
recognition criteria as set out in Ind AS 16, including any date out of the total outstanding as at March 31, 2022
such costs directly and indirectly associated with it to be
•• Verification of calculation of the allowance for credit
ready for intended use.
losses.
•• Reviewed the Capitalisation Certificate provided by the
•• Testing the arithmetical accuracy and computation of
Management to determine whether the asset is in the
the allowance prepared by the Management.
location and condition necessary for it to be capable of
•• Testing the allowance for credit loss through alternate
operating in the manner intended by the Management of
scenarios, including profiling of customers based
the Parent Company.
on their attributes with various sensitivities around
C. Allowance for Credit Losses
approach, the assumptions and reviewing the possible
The Group applies ‘simplified approach’ which requires effect of any uncertain events / litigations to validate the
expected lifetime losses to be recognised from initial Parent Company’s Management estimates.
recognition of the trade receivables. The Group uses
D. Evaluation of uncertain tax imposition
historical default rates to determine impairment loss on
the portfolio of trade receivables and adjusted to reflect The Parent Company has material uncertain tax
current and estimated future economic conditions of its imposition including matters under dispute which
customers, their industry and geography of operations. involves significant judgement to determine the possible
outcome of these disputes.
At every reporting date these historical default rates are
{Refer to note no. 41 of the Consolidated Ind AS Financial
reviewed and changes in the forward looking estimates
Statements}
are analysed.
In calculating expected credit loss, the Group also Auditors’ Response:
considers other related information for its customers, •• The Parent Company has provided details of all pending
including credit periods, to estimate the probability of assessments and demands for the year ended March
default in future and has taken into account estimates 31, 2022.
of possible effect from any uncertain events / litigations •• We have obtained Parent Company’s Management
etc. The Management of the Parent Company has note / view on possible outcome and its impact on
exercised significant judgement in estimating the financial position of the Parent Company for all pending
allowance for credit losses. assessments and disputed matters under litigations.
(Refer to note no. 13 of the Consolidation Ind AS
Information Other than the Consolidated Ind
Financial Statements)
AS Financial Statements and Auditor’s Report
Auditors’ Response: Thereon
Our audit procedures to test the effectiveness of controls The Parent’s Board of Directors is responsible for the other
over allowances for credit loss includes the following, but information. The other information comprises the information
were not limited to: included in the Directors’ report including Annexures to
•• Trade Receivables ageing report as on balance sheet Directors’ report, Management Discussion and Analysis
date. Report, Business Responsibility Report, but does not include
the Consolidated Financial Statements, Standalone Financial
•• Development of the expected credit model for the
Statements and our auditor’s report thereon.
allowance for credit losses, including consideration of
the current and estimated future economic conditions. Our opinion on the Consolidated Ind AS Financial Statement
does not cover the other information and we do not express
any form of assurance conclusion thereon.
168
In connection with our audit of the Consolidated Ind AS and completeness of the accounting records, relevant to the
Financial Statements, our responsibility is to read the preparation and presentation of the Consolidated Ind AS
other information, compare with the Financial Statements / Financial Statements that give a true and fair view and are
Information of the Subsidiaries and Joint Venture Companies free from material misstatement, whether due to fraud or
certified by the Management of the Parent Company, to the error, which have been used for the purpose of preparation of
extent it relates to these entities and, in doing so, place Consolidated Ind AS Financial Statements by the Directors of
reliance on Financial Statements / Information provided the Parent Company, as aforesaid.
by the Management of the Parent Company and consider In preparing the Consolidated Ind AS Financial Statements,
whether the other information is materially inconsistent
the respective Management and Board of Directors of the
with the Consolidated Ind AS Financial Statements or
Companies included in the Group and of its Joint Venture
our knowledge obtained during the course of our audit
Companies are responsible for assessing the ability of the
or otherwise appears to be materially misstated. Other
Group and Joint Venture Companies to continue as a going
information so far as it relates to the Subsidiaries and Joint
concern, disclosing, as applicable, matters related to going
Venture Company is traced from their Financial Statements
concern and using the going concern basis of accounting
/ information provided by the Management of the Parent
unless the respective Management and Board of Directors
Company.
either intends to liquidate the Company or to cease
If, based on the work we have performed, we conclude that operations, or has no realistic alternative but to do so.
there is a material misstatement of this other information we
The respective Board of Directors of the Companies included
are required to report that fact. We have nothing to report in
in the Group and of its Joint Venture Companies are
this regard.
responsible for overseeing the Company’s financial reporting
Responsibility of Management and Those process.
Charged with Governance for the Consolidated
Auditor’s Responsibility for the Audit of the
Ind AS Financial Statements
Consolidated Ind AS Financial Statements
The Parent Company’s Board of Directors are responsible
Our objectives are to obtain reasonable assurance about
for the matters specified in section 134(5) of the Act with
whether the Consolidated Ind AS Financial Statements as a
respect to the preparation of these Consolidated Ind AS
whole are free from material misstatement, whether due to
Financial Statements that give a true and fair view of the
fraud or error, and to issue an auditor’s report that includes
financial position, financial performance (including other
our opinion. Reasonable Assurance is a high level of assurance
comprehensive income), changes in equity and cash
but is not a guarantee that an audit conducted in accordance
flows of the Group including Joint Venture Company in
with SAs will always detect a material misstatement when it
accordance with the Indian Accounting Standards specified
exists. Misstatements can arise from fraud or error and are
under Section 133 of the Act, read with the Companies
considered material if, individually or in the aggregate, they
(Indian Accounting Standards) Rules, 2015 (as amended)
could reasonably be expected to influence the economic
and accounting principles generally accepted in India. The
respective Board of Directors of the Companies included in decisions of users taken on the basis of these Consolidated
the Group and of Joint Venture Company are responsible for Ind AS Financial Statements.
maintenance of adequate accounting records in accordance As part of an audit in accordance with SAs, we exercise
with the provisions of the Act for safeguarding of the assets professional judgment and maintain professional skepticism
of the Group and for preventing and detecting the frauds and throughout the audit. We also:
other irregularities, selection and application of appropriate •• Identify and access the risks of material misstatement
accounting policies, making judgments and estimates that of the Consolidated Ind AS Financial Statements,
are reasonable and prudent, and the design, implementation whether due to fraud or error, design and perform audit
and maintenance of adequate internal financial controls, procedures responsive to those risks, and obtain audit
that were operating effectively for ensuring the accuracy evidence that is sufficient and appropriate to provide a
169
basis for our opinion. The risk of not detecting a material the Consolidated Ind AS Financial Statements of such
misstatement resulting from fraud is higher than for business activities included in the Consolidated Ind AS
one resulting from error, as fraud may involve collusion, Financial Statements of which we are the independent
forgery, intentional omissions, misrepresentations, or auditors and whose financial information we have
the override of internal control. audited. For the business activities included in the
•• Obtain an understanding of internal financial control Consolidated Ind AS Financial Statements, which have
relevant to the audit in order to design audit procedures been either audited by the other auditors or certified
that are appropriate in the circumstances. Under by Management of the Parent Company, in such case
section 143(3)(i) of the Act, we are also responsible for other auditor and Management of the Parent Company
expressing our opinion on whether the Parent Company remain responsible for the direction, supervision and
has adequate internal financial controls system in place performance of the business activities. We remain solely
and the operating effectiveness of such controls. responsible for our audit opinion.
• Evaluate the appropriateness of accounting policies Materiality is the magnitude of misstatements in the
used and the reasonableness of accounting estimates Consolidated Ind AS Financial Statements that, individually or
and related disclosures made by the Management and in aggregate, makes it probable that the economic decisions
Board of Directors of the Parent Company. of a reasonably knowledgeable user of the Consolidated Ind
AS Financial Statements may be influenced. We consider
•• Conclude on the appropriateness of Management and
quantitative materiality and qualitative factors in (i) planning
Board of Directors of the Parent Company’s use of the
the scope of our audit work and in evaluating the results
going concern basis of accounting and, based on the
of our work; and (ii) to evaluate the effect of any identified
audit evidence obtained, whether a material uncertainty
misstatements in the Consolidated Ind AS Financial
exists related to events or conditions that may cast
Statements.
significant doubt on the ability of the Group and its Joint
Venture Companies to continue as a going concern. If We communicate with those charged with governance of
we conclude that a material uncertainty exists, we are the Parent Company and such other entities included in the
required to draw attention in our auditor’s report to the Consolidated Ind AS Financial Statements of which we are
related disclosures in the Consolidated Ind AS Financial the independent auditors regarding, among other matters,
Statements or, if such disclosures are inadequate, to the planned scope and timing of the audit and significant
modify our opinion. Our conclusions are based on the audit findings, including any significant deficiencies in
audit evidence obtained up to the date of our auditor’s internal control that we identify during our audit.
report. However, future events or conditions may cause We also provide those charged with governance with a
the Group and its Joint Venture Companies to cease to statement that we have complied with relevant ethical
continue as a going concern. requirements regarding independence, and to communicate
•• Evaluate the overall presentation, structure and content with them all relationships and other matters that may
of the Consolidated Ind AS Financial Statements, reasonably be thought to bear on our independence, and
including the disclosures, and whether the Consolidated where applicable, related safeguards.
Ind AS Financial Statements represent the underlying From the matters communicated with those charged with
transactions and events in a manner that achieves fair governance, we determine those matters that were of most
presentation. significance in the audit of the Consolidated Ind AS Financial
•• Obtain sufficient and appropriate audit evidence Statements of the current period and are therefore the key
regarding the financial information of the business audit matters. We describe these matters in our auditor’s
activities within the Group and its Joint Venture report unless law or regulation precludes public disclosure
Companies to express an opinion on the Consolidated about the matter or when, in extremely rare circumstances,
Ind AS Financial Statements. We are responsible for the we determine that a matter should not be communicated
direction, supervision and performance of the audit of in our report because the adverse consequences of doing
170
so would reasonably be expected to outweigh the public included in this Consolidated Ind AS Financial Statements
interest benefits of such communication. and based on the CARO report issued by us with respect to
one Joint Venture Company included in the Consolidated Ind
Other Matters AS Financial Statements of the Companies to which reporting
The accompanying Consolidated Ind AS Financial Statements under CARO is applicable, there are no qualifications or
include the Ind AS Financial Statements and other financial adverse remarks in the CARO report of the Joint Venture
information of one Joint Venture Company, which reflects Company.
group’s share of Net Loss after tax of ₹102.15 lakhs for the As required by Section 143(3) of the Act, based on our audit
year ended March 31, 2022, which have been audited by us. and on the consideration of the report of one Joint Venture
We did not audit the Financial Statements / Information of Company issued by us and Management certified Financial
two subsidiaries, whose Financial Statements / Financial Statements / Results of the Subsidiary Companies and Joint
Information reflect total assets of ₹11,709.02 lakhs (before Venture Companies on the Consolidated Ind AS Financial
eliminating inter group transactions) as at March 31, 2022, Statements referred to in the Other Matters section above,
total revenues of ₹18,250.19 lakhs and net cash inflow we report to the extent applicable that:
amounting to ₹1,419.71 lakhs for the year ended on that date a) We have sought and obtained all the information and
and Financial Statements and other financial information of explanations which to the best of our knowledge and
2 Joint Venture Companies which reflects Group’s Share of belief were necessary for the purposes of our audit of
net loss after tax of ₹0.73 lakhs for the year ended March the aforesaid Consolidated Ind AS Financial statements.
31, 2022. As informed to us by the Management of the b) In our opinion, proper books of account as required by
Parent Company, the Financial Statements / Results of these law relating to preparation of the aforesaid Consolidated
subsidiaries and 2 Joint Venture Companies are not required Ind AS Financial Statements have been kept so far as it
to be audited under the regulations governing the entities appears from our examination of those books.
and therefore have been compiled by the accountant of the c) The Consolidated Balance Sheet, the Consolidated
Subsidiaries and 2 Joint venture Companies and certified by Statement of Profit and Loss (including other
the Management of the Parent Company, and our opinion on Comprehensive Income), the Consolidated Statement
the Consolidated Ind AS Financial Statements, in so far as it of Changes in Equity and the Consolidated Statement of
relates to the amounts and disclosures included in respect of Cash Flows dealt with by this Report are in agreement
Subsidiaries and 2 Joint Venture Companies and our report with the relevant books of account maintained for the
in terms of sub-section (3) of Section 143 of the Act, in so purpose of preparation of the Consolidated Ind AS
far as it relates to the aforesaid Subsidiaries, Joint Venture Financial Statements.
Companies is based solely on the Financial Statement / d) In our opinion, the aforesaid Consolidated Ind AS
Financial Information provided by the Management. Financial Statements comply with the Indian Accounting
Our opinion on the Consolidated Ind AS Financial Statements, Standards prescribed under Section 133 of the Act, read
and our report on Other Legal and Regulatory Requirements with Companies (Indian Accounting Standards) Rule,
below, is not modified in respect of the above matters with 2015 (as amended).
respect to our reliance on the Financial Statements / Financial e) On the basis of the written representations received
Information certified by the Management. from the Directors of the Parent Company and 1 Joint
Venture Company whose Ind AS Financial Statements
Report on Other Legal and Regulatory has been audited us as on March 31, 2022, taken on
Requirements record by the Board of Directors of the Parent Company
As required by the Companies (Auditor’s Report) Order, 2020 and such Joint Venture Company incorporated in
(“the Order”), issued by the Central Government in terms of India, none of the directors of the Parent Company and
Section 143(11) of the Act, with respect to clause no (xxi) such Joint Venture Company incorporated in India is
for any qualifications or adverse remarks by the respective disqualified as on March 31, 2022 from being appointed
auditors in the Order of the Companies incorporated in India as a director in terms of Section 164(2) of the Act.
171
f) With respect to the adequacy of the internal financial •• directly or indirectly lend or invest in other
controls over financial reporting and the operating persons or entities identified in any manner
effectiveness of internal financial controls with whatsoever (“Ultimate Beneficiaries”) by or
Reference to Consolidated Ind AS Financial Statements on behalf of the Parent Company or provide
of the Group and its Joint Venture Companies any guarantee, security or the like to or on
incorporated in India; refer to our separate report in behalf of the Ultimate Beneficiaries.
‘Annexure – I’. Our report expresses an unmodified (ii) The Management of the Parent Company has
opinion on the adequacy and operating effectiveness represented, that, to the best of its knowledge
of the Parent Company’s internal financial controls over and belief, no funds have been received by the
financial reporting. Parent Company from any persons or entities,
With respect to the other matters to be included in the including foreign entities (“Funding Parties”), with
Auditor’s Report in accordance with Rule 11 of the Companies the understanding, whether recorded in writing or
(Audit and Auditor’s) Rules, 2014 (as amended), in our otherwise, that the Parent Company shall:
opinion and to the best of our information and according to •• directly or indirectly, lend or invest in other
the explanations given to us: persons or entities identified in any manner
a) The Parent Company has disclosed the impact of whatsoever (“Ultimate Beneficiaries”) by or
pending litigations on the Consolidated financial on behalf of the Funding Party or
position of the Group and its Joint Venture Companies, •• provide any guarantee, security or the like from
if any in its Consolidated Ind AS Financial Statement. or on behalf of the Ultimate Beneficiaries; and
(ii) Based on such audit procedures as considered
b) The Parent Company has made Provision, as required reasonable and appropriate in the circumstances,
under the applicable law or accounting standards, nothing has come to our notice that has caused
for material foreseeable losses, if any, on long- us to believe that the representations under
term contracts including derivative contracts in its subclause (e) (i) and (e) (ii) contain any material
Consolidated Ind AS Financial Statement. misstatement.
c) There were no amounts which were required to be f) The final dividend paid by the Parent Company during
transferred to the Investor Education and Protection the year in respect of the same declared for the previous
Fund by the Parent Company, its Subsidiary Companies, year is in accordance with section 123 of the Companies
and Joint Venture Companies incorporated in India Act 2013 to the extent it applies to payment of dividend.
d) This clause is omitted vide notification dated March As stated in note no. 41 to the Consolidated Ind AS
24, 2021, in the Companies (Audit and Auditors) Financial Statements, the Board of Directors of the
Amendment Rules, 2021 effective from April 1, 2021. Parent Company have proposed final dividend for the
e) (i) The Management of Parent Company has year which is subject to the approval of the members
represented that, to the best of its knowledge at the ensuing Annual General Meeting. The dividend
and belief, no funds have been advanced or declared is in accordance with section 123 of the Act to
loaned or invested (either from borrowed funds the extent it applies to declaration of dividend
or share premium or any other sources or kind of g) This clause pertaining to accounting software for
funds) by the Parent Company to or in any other maintaining its books of account which has a feature of
persons or entities, including foreign entities recording audit trail (edit log) facility and the same has
(“Intermediaries”), with the understanding, been operated throughout the year for all transactions
whether recorded in writing or otherwise, that the recorded in the software and the audit trail feature has
Intermediary shall: not been tampered with and the audit trail has been
172
preserved by the Parent Company as per the statutory Company within a definition of section 2(71) of the Companies
requirements for record retention has been postponed Act, 2013 to its directors during the current year is in accordance
from financial year commencing on or after the April with the provisions of Section 197 of the Act. The remuneration
1, 2022, vide notification dated April 1, 2021, in the paid to any director is not in excess of the limit laid down under
companies (Audit and Auditors) Second Amendment Section 197 of the Act. The Ministry of Corporate Affairs has
Rules, 2021. not prescribed other details under Section 197(16) which are
With respect to the other matters to be included in the required to be commented upon by us.
Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended: ICAI UDIN: 22043908AJTKRF5666
In our opinion and according to the information and For B Y & Associates
explanations given to us, the remuneration paid / provided Chartered Accountants
by the Parent Company, its Subsidiary Companies, and Joint ICAI Firm’s registration number: 123423W
Venture Companies incorporated in India and is Public Limited
CA Bhavesh Vora
Partner
Date : May 27, 2022

Place : Mumbai
173
Consolidated Balance Sheet
as at March 31, 2022
(` in lakhs)
Particulars Notes Figures As at Figures As at
March 31, 2022 March 31, 2021
ASSETS
A) Non Current Assets
Property, Plant and Equipment Note 4 22,873.45 19,531.15
Capital Work-in Progress Note 5 1,412.47 2,630.42
Intangible Assets Note 6 57.11 54.18
Financial Assets
- Investment Note 7 3,061.06 3,109.91
- Loans Note 8 131.59 123.49
- Others Note 9 373.27 255.72
Deferred Tax Assets (Net) Note 10 835.57 794.90
Other Non-current Assets Note 11 6,099.12 6,214.71
Total Non Current Assets (A) 34,843.64 32,714.48
B) Current Assets
Inventories Note 12 23,558.55 12,617.94
Financial Assets
- Trade Receivables Note 13 30,136.59 16,162.86
- Cash and Cash Equivalents Note 14 22,607.80 25,897.28
- Bank Balances Note 15 648.03 477.01
- Others Note 16 24.14 23.96
Current Tax Assets (Net) Note 17 654.47 526.99
Other Current Assets Note 18 11,161.91 6,341.35
Total Current Assets (B) 88,791.49 62,047.39
Total Assets (A + B) 1,23,635.13 94,761.87
EQUITY AND LIABILITIES
A) Equity
Equity Share Capital Note 19 1,533.00 1,533.00
Other Equity Note 20 94,387.19 71,605.67
B) Non Controlling Interest Note 21 - 6.91
Total Equity (A) 95,920.19 73,138.67
Liabilities
C) Non Current Liabilities
- Borrowings Note 22 2,508.32 5,674.43
- Others Note 23 86.61 435.30
Total Non Current Liabilities (C) 2,594.93 6,109.73
D) Current Liabilities
- Borrowings Note 24 3,344.43 3,242.85
- Trade Payables Note 25
(a) Total outstanding dues of micro enterprises and small enterprises 904.87 318.49
(b) Total outstanding dues of creditors other than micro enterprises and
14,450.56 9,459.64
small enterprises
- Others Note 26 147.17 251.61
Other Current Liabilities Note 27 1,595.12 431.97
Provisions Note 28 3,030.75 1,344.89
Current Tax Liabilities (Net) Note 29 1,647.11 457.11
Total Current Liabilities (D) 25,120.01 15,506.56
Total Equity and Liabilities (A + B + C + D) 1,23,635.13 94,761.87
The accompanying notes 1 to 53 are integral part of the consolidated Ind AS financial statements.
DIN:00106799 DIN:00106919
Date: May 27, 2022 Date: May 27, 2022
174
Consolidated Statement of Profit and Loss

(` in lakhs)
Particulars Notes Figures for the Figures for the
year ended year ended
March 31, 2022 March 31, 2021
INCOME
Revenue from Operations Note 30 1,87,625.92 1,13,321.84
Other Income Note 31 3,306.14 1,709.77
Total Income 1,90,932.06 1,15,031.61
EXPENSES
Cost of Materials Consumed Note 32 1,21,998.12 71,536.01
Purchase of Stock-in-trade Note 32.1 1,038.56 487.29
Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-
Note 33 (4,247.76) 578.37
progress
Employee Benefit Expenses Note 34 8,927.35 7,956.73
Finance Costs Note 35 510.91 612.98
Depreciation & Amortisation Expenses Note 36 3,990.28 4,676.91
Other Expenses Note 37 23,458.95 12,837.96
Total Expenses 1,55,676.41 98,686.25
Profit/(Loss) before share of profit/(loss) of a joint venture and
35,255.65 16,345.36
exceptional items
Share of profit / (loss) of joint ventures (net of tax) (102.88) (130.45)
Profit before exceptional items and tax 35,152.77 16,214.91
Exceptional Item - -
Profit before tax 35,152.77 16,214.91
Tax Expenses
Current Tax Note 38 9,313.85 4,380.61
Deferred Tax Expense / (Income) Note 39 (131.99) (201.42)
Short / (Excess) Provision for earlier years - 1.59
Profit / (Loss) For the Year 25,970.91 12,034.13
OTHER COMPREHENSIVE INCOME
(i) Items that will not be reclassified to Profit or Loss
(a) Changes in fair value of Equity instruments through OCI 0.03 0.20
(b) Remeasurements of Profit / (Loss) on employees defined benefits plan 14.09 (9.53)
(c) Amount recognised in Cashflow Hedging Reserve during the year 348.69 320.56
(ii) Income tax relating to items that will not be reclassified to profit or loss (91.31) (78.33)
Total Other Comprehensive Income 271.50 232.90
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 26,242.41 12,267.03
Net Profit / (Loss) attributable to :-
Owners of the Company 25,960.99 12,032.30
Non-controlling interest 9.92 1.83
Total comprehensive Income attributable to :-
Owners of the Company 26,232.49 12,265.20
Non-controlling interest 9.92 1.83
Earnings Per Equity Share

Basic Note 40 84.71 39.25
Diluted 84.71 39.25
DIN:00106799 DIN:00106919
Date: May 27, 2022 Date: May 27, 2022
175
Consolidated Statement of Changes in Equity
A) Equity Share Capital

(` in lakhs)
Changes in equity Changes in equity
Restated balance as at Balance as at
Balance as at April 1, 2021 share capital due to share capital during
April 1, 2021 March 31, 2022
prior period errors the year
1,533.00 - 1,533.00 - 1,533.00
(` in lakhs)
Changes in equity Changes in equity
Restated balance as at Balance as at
Balance as at April 1, 2020 share capital due to share capital during
April 1, 2020 March 31, 2021
prior period errors the year
1,533.00 - 1,533.00 - 1,533.00
B) Other Equity
(` in lakhs)
Particulars Reserves and Surplus Other Com- Total
Amalga- Capital Retained Foreign Other prehensive
mation Re- Earnings Exchange Re- Income
Reserve serve Trans- serves
lation
Reserve
Balance as at April 1, 2021 1,155.24 - 71,540.99 (621.31) 1.60 (470.85) 71,605.67
Add:- Profit for the year - 10.02 25,970.91 (209.09) (0.03) - 25,771.81
Reversal of loss on account of Joint Venture
- - 120.73 - - - 120.73
accounted as per Equity Method
Other comprehensive income / (losses) - - - - - 271.50 271.50
Total Comprehensive Income for the Year 1,155.24 10.02 97,632.63 (830.40) 1.57 (199.35) 97,769.71
Less:- Dividends - - 3,372.60 - - - 3,372.60
Non Controlling interest - - 9.92 - - - 9.92
Balance as at March 31, 2022 1,155.24 10.02 94,250.11 (830.40) 1.57 (199.35) 94,387.19
Balance as at April 1, 2020 1,155.24 - 60,428.45 (525.42) 1.55 (703.75) 60,356.07
Add:- Profit for the year - - 12,034.13 (95.89) 0.05 - 11,938.29
Other comprehensive income / (losses) - - - - - 232.90 232.90
Total Comprehensive Income for the Year 1,155.24 - 72,462.58 (621.31) 1.60 (470.85) 72,527.26
Less:- Dividends - - 919.76 - - - 919.76
Non Controlling interest - - 1.83 - - - 1.83
Balance as at March 31, 2021 1,155.24 - 71,540.99 (621.31) 1.60 (470.85) 71,605.67
DIN:00106799 DIN:00106919
Date: May 27, 2022 Date: May 27, 2022
176
Consolidated Cash Flow Statement

(` in lakhs)
March 31, 2022 March 31, 2021
Net Profit Before Tax 35,152.77 16,214.91
A} Cash flows from operating activities
Adjustments for:
Depreciation of Property, Plant and Equipment 3,960.58 4,628.97
Amortisation of Intangible Assets 29.70 47.94
Loss / (Profit) on sale of fixed assets (net) (7.37) (1.56)
Share of loss from Joint Venture Entity 102.88 130.45
Lease Rent on Leasehold Properties 43.35 60.13
Remeasurement of Employees Benefit Plans 14.09 (9.53)
Change in Foreign Currency Translation Reserve (209.12) (95.84)
Expected Credit Loss Provisions / (Reversal) 35.47 (20.66)
Provision for Dimunition in Value of Investment 120.73 39.60
Interest Income (597.14) (672.82)
Staff Welfare 7.01 5.95
Rent Others 3.77 3.97
Net Loss / (Gain) on Foreign Exchange Fluctuations (2,457.68) (957.61)
Income Tax Written off for Earlier Years - 1.59
1,415.83 3,683.01
Operating Profit Before Working Capital Movements 36,568.60 19,897.92
Movement In Working Capital:
Decrease / (Increase) in Inventories (10,940.61) 549.21
Decrease / (Increase) in Trade Receivables (14,009.20) (2,844.19)
Decrease / (Increase) in Other Bank Balances (171.02) (1.87)
Decrease / (Increase) in Current Financial Assets : Others (0.18) 8.84
Decrease / (Increase) in Other Current Assets (4,820.56) (2,091.99)
Increase / (Decrease) in Trade Payables 5,577.30 2,143.47
Increase / (Decrease) in Current Financial Liabilities : Others (104.44) 88.48
Increase / (Decrease) in Other current liabilities 1,163.15 (193.60)
Increase / (Decrease) in Current Provisions 1,685.86 76.97
(21,619.70) (2,264.68)
Cash Generated From Operations 14,948.90 17,633.24
Income Tax Paid (8,251.33) (4,207.09)
Net Cash Flows From Operating Activities (A) 6,697.57 13,426.15
B} Cash flows (used in) / generated from investing
activities
Purchase of Property, Plant and Equipment, including CWIP (6,100.23) (4,626.52)
Purchase of Intangible Assets (34.19) (16.38)
Proceeds From Sale of Property, Plant and Equipment 24.23 13.34
Prepaid Rent in Leasehold Properties (3.00) (142.42)
Liability booked against advance given for Capital Goods 75.70 40.08
177
CONSOLIDATED Cash Flow Statement
(` in lakhs)
March 31, 2022 March 31, 2021
Amount (invested) / matured in Bank Fixed Deposits (116.69) 43.19
Investment in Joint Venture (54.00) -
Additional Investment in Subsidiary (6.81) -
Interest Received 586.36 662.90
Net Cash Flows Used In Investing Activities (B) (5,628.62) (4,025.81)
C} Net cash flows (used in)/generated from financing
activities
Repayment of Non Current Borrowings (3,064.53) (3,554.65)
Security Deposit Received back / (Given) (1.32) (6.59)
Employee Advance (given) / received back (8.10) (23.61)
Dividend paid (3,372.60) (919.76)
Interest paid (369.56) (522.43)
Net Loss/ (Gain) on Foreign Exchange Fluctuations 2,457.68 957.61
Net Cash Flows Used In Financing Activities (C) (4,358.43) (4,069.43)
Net Increase / (Decrease) In Cash And Cash Equivalents
(3,289.48) 5,330.91
(A+B+C)
Cash And Cash Equivalents At The Beginning Of The Year 25,897.28 20,566.37
Cash And Cash Equivalents At The Year End {Refer To Note No. 14} 22,607.80 25,897.28
Components of Cash and Cash Equivalents :

Balances with banks
In Fixed Deposit Account 17,532.48 17,849.76
22,607.80 25,897.28
DIN:00106799 DIN:00106919


Date: May 27, 2022 Date: May 27, 2022
178
Notes Forming Integral Part of the CONSOLIDATED Financial Statements

1. Corporate Information abroad, as manufacturers, processors, suppliers,

distributors, dealers, importers, exporters of wide range
Fine Organic Industries Limited (“the Parent Company’’)
of oleochemical-based additives used in foods, plastics,
is a Public Limited Company domiciled in India and is
cosmetics, coatings and other specialty application in
incorporated under the provisions of the Companies Act,
various industries.
1956. The Parent Company was converted into Public
Company with effect from November 02, 2017 and The subsidiaries are engaged in trading of product
consequently the name of the Company has changed manufactured by the Parent Company.
from Fine Organic Industries Private Limited to Fine One of its jointly controlled entity incorporated in India
Organic Industries Limited. The registered office of the is into the business of manufacturing, processing,
Company is situated in the State of Maharashtra. supplying, distribution, dealership, importing and
The Consolidated Financial Statements were approved exporting of powder premixes for bakery & confectionary
and authorized for issue with the resolution of the Board products and pan release agents.
of Directors on May 27, 2022 and are subject to the Equity shares of the Group are listed on July 02, 2018
approval of Shareholders in the Annual General Meeting. on BSE Limited and National Stock Exchange of India
The Parent Company carries on business in India and Limited (NSE).
The Parent Company has following investments in Subsidiaries and Joint Ventures:
Particulars Name of Entities
Fine Organics Fine Organics Fine Zeelandia FineADD Fine Organic

(USA), Inc Europe BV Private Limited Ingredients Industries
GmbH (Thailand) Co.,
(upto November Ltd.
11, 2021)
Principal place of business and United States of Belgium India Germany Thailand
Country of Incorporation America
Description of the method used Line by line Line by line Equity method Equity method Equity method
to account for investments Consolidation Consolidation
Investee relationship Subsidiary Subsidiary Joint Venture Joint Venture Joint Venture
Company Company
Proportion of ownership interest 100.00% *100.00% 50.00% 50.00% 45.00%

*From March 23, 2022.
2. Basis of preparation: 2.2 Functional and presentation currency

Items included in the financial statements of each
2.1 Statement of compliance
entities of the Group are measured using the currency
The accompanying Consolidated Financial Statements of the primary economic environment in which the
have been prepared in accordance with the accounting Parent Company operates (‘the functional currency’).
principles generally accepted in India, including the The Consolidated Financial Statements are presented in
Indian Accounting Standards (Ind AS) as per the Indian Rupees, which is the functional and presentation
Companies (Indian Accounting Standards) Rules, currency of the Company.
2015 and Companies (Indian Accounting Standards)
2.3 Basis of measurement
(Amendment) Rules, 2017 notified under section 133 of
the Companies Act, 2013, (the ‘Act’) and other relevant
The consolidated Financial Statements have been
provisions of the Act. prepared on a historical cost basis, except for the
following:
179
• Certain financial assets and liabilities (including may not be representative of customers’ actual returns
derivative instruments) that are measured at fair and rebate entitlements in the future.
value; and Costs to obtain a contract are generally expensed as
• Net defined benefit (assets)/ liabilities that are incurred. The assessment of this criteria requires the
measured at fair value of plan assets less present application of judgement, in particular when considering
value of defined benefit obligations if costs generate or enhance resources to be used to
satisfy future performance obligations and whether
2.4 Use of estimates and judgements
costs are expected to be recovered.

The preparation of the Consolidated Financial
Statements in accordance with Ind AS requires use of c) Recognition and measurement of defined benefit
judgements, estimates and assumptions, which affect obligations
the application of accounting policies and the reported The obligation arising from defined benefit plan is
amounts of assets, liabilities, income and expenses. The determined on the basis of actuarial assumptions. Key
actual results may differ from these estimates. actuarial assumptions include discount rate, trends in
Estimates and underlying assumptions are reviewed on salary escalation, actuarial rates and life expectancy.
an ongoing basis. Revision to accounting estimates is The discount rate is determined by reference to market
recognised prospectively. yields at the end of the reporting period on government
bonds. The period to maturity of the underlying bonds
Assumptions and estimation uncertainties that have a
correspond to the probable maturity of the post-
significant risk of resulting in a material adjustment in
employment benefit obligations.
the year ended March 31, 2022 are as follows:
d) Recognition of deferred tax assets
a) Property, plant and equipment
Deferred tax assets are recognised for the future tax
Useful lives of tangible assets are based on the life
consequences of temporary differences between
prescribed in Schedule II of the Act except plant &
the carrying values of assets and liabilities and their
machineries, which in the opinion of the Management
respective tax bases, and unutilised business loss and
represent the useful lives as they are based on technical
depreciation carry-forwards and tax credits, if any.
advice, taking into account the nature of the asset, the
Deferred tax assets are recognised to the extent that it
estimated usage of the asset, the operating conditions
is probable that future taxable income will be available
of the asset, past history of replacement, anticipated
against which the deductible temporary differences,
technological changes, manufacturers’ warranties and
unused tax losses, depreciation carry-forwards and
maintenance support.
unused tax credits could be utilised.
b) Revenue from contracts with customers
e) Contingent Liabilities, Commitments and Litigations
The Group’s contracts with customers include promises
to transfer goods to the customers. Judgement is Contingent liabilities
required to determine the transaction price for the
Contingent liabilities may arise from the ordinary
contract. The transaction price could be either a course of business in relation to claims against the
fixed amount of customer consideration or variable Group, including legal and other claims. By their nature,
consideration with elements such as schemes, contingencies will be resolved only when one or more
incentives, cash discounts etc. The estimated amount uncertain future events occur or fail to occur. The
of variable consideration is adjusted in the transaction assessment of the existence, and potential quantum
price only to the extent that it is highly probable that a of contingencies inherently involves the exercise of
significant reversal in the amount of cumulative revenue significant judgement and the use of estimates regarding
recognised will not occur and is reassessed at the end of the outcome of future events.
each reporting period.
Litigation

Estimates of rebates and discounts are sensitive
From time to time, the Group might be subject to legal
to changes in circumstances and the Group’s past
proceedings the ultimate outcome of each being always
experience regarding returns and rebate entitlements
subject to many uncertainties inherent in litigation. A
180

provision for litigation is made when it is considered measurement. The Group recognises transfers between
probable that a payment will be made and the amount levels of the fair value hierarchy at the end of the
of the loss can be reasonably estimated. Significant reporting period during which the change has occurred.
judgement is made when evaluating, among other
2.6 Operating cycle
factors, the probability of unfavorable outcome and the
ability to make a reasonable estimate of the amount of An operating cycle is the time between the acquisition
potential loss. Litigation provisions are reviewed at each of assets for processing and their realisation in cash or
accounting period and revisions made for the changes in cash equivalents.
facts and circumstances. Based on the nature of services and the time between
the acquisition of assets for processing and their
2.5 Measurement of fair values
realisation in cash and cash equivalents, the Group
The Group’s accounting policies and disclosures require has ascertained its operating cycle as 12 months for
the measurement of fair values, for both Financial and the purpose of current or non-current classification of
non-Financial assets and liabilities. assets and liabilities.
The Group has an established control framework with
respect to the measurement of fair values, which includes 2.7 Current / non-current classification
overseeing all significant fair value measurements, An entity shall classify an asset as current when:
including Level 3 fair values by the Management. The a) It expects to realise the asset, or intends to sell or
Management regularly reviews significant unobservable consume it, in its normal operating cycle;
inputs and valuation adjustments. If third party b)
It holds the asset primarily for the purpose of
information, such as broker quotes or pricing services, trading;
is used to measure fair values, then the Management c) It expects to realise the asset within twelve months
assesses the evidence obtained from the third parties after the reporting period; or
to support the conclusion that such valuations meet
d) the asset is cash or a cash equivalent unless the
the requirements of Ind AS, including the level in the
asset is restricted from being exchanged or used to
fair value hierarchy in which such valuations should be
settle a liability for at least twelve months after the
classified.
reporting period
When measuring the fair value of a financial asset or
An entity shall classify all other assets as non-current.
a financial liability, the Group uses observable market
data as far as possible. Fair values are categorised into An entity shall classify a liability as current when-
different levels in a fair value hierarchy based on the a)
It expects to settle the liability in its normal
inputs used in the valuation techniques as follows: operating cycle;
• Level-1: quoted prices (unadjusted) in active b) It holds the liability primarily for the purpose of
markets for identical assets or liabilities. trading;
• Level-2: inputs other than quoted prices included c)
The liability is due to be settled within twelve
in Level 1 that are observable for the asset or months after the reporting period; or
liability, either directly (i.e. as prices) or indirectly d) It does not have an unconditional right to defer
(i.e. derived from prices). settlement of the liability for at least twelve months
• Level-3: inputs for the asset or liability that are not after the reporting period. Terms of a liability that
based on observable market data (unobservable could, at the option of the counterparty, result in
inputs). its settlement by the issue of equity instruments do
If the inputs used to measure the fair value of an asset not affect its classification.
or a liability fall into different levels of the fair value An entity shall classify all other liabilities as non-current.
hierarchy, then the fair value measurement is categorised Deferred tax assets and liabilities are classified as non-
in its entirety in the same level of the fair value hierarchy current assets and liabilities.
as the lowest level input that is significant to the entire
181
2.8 Note on Recent Pronouncements 2.9 Basis of consolidation

Ministry of Corporate Affairs (“MCA”) notifies new The Consolidated financial statements (CFS) comprise
standard or amendments to the existing standards the financial statements of the Parent Company, its
under Companies (Indian Accounting Standards) Rules subsidiaries & its jointly controlled entities as at the
as issued from time to time. On March 23, 2022, MCA reporting date.
amended the Companies (Indian Accounting Standards) Subsidiaries
Amendment Rules, 2022, applicable from April 01, Subsidiaries include all the entities over which the
2022, as below: Parent Company has control. The Parent Company
controls an entity when it is exposed to, or has rights to,
Ind AS 16 – Proceeds before intended use
variable returns through its involvement in the entity and

The amendments mainly prohibit an entity from
has the ability to affect those returns through its power
deducting from the cost of property, plant and equipment to direct the relevant activities of the entity. Subsidiaries
amounts received from selling items produced while the are consolidated from the date on which the Parent
company is preparing the asset for its intended use. Company attains control and are deconsolidated from
Instead, an entity will recognise such sales proceeds the date that control ceases to exist.
and related cost in profit or loss. The Company does
Joint Venture
not expect the amendments to have any impact in its
A joint venture is a joint arrangement whereby the
recognition of its property, plant and equipment in its
parties that have joint control of the arrangement have
financial statements.
rights to the net assets of the arrangement. Interests in
Ind AS 37 – Onerous Contracts - Costs of Fulfilling a joint venture are accounted for using the equity method
Contract of accounting (see (c) below).
The amendments specify that that the ‘cost of fulfilling’ The CFS have been prepared on the following basis
a contract comprises the ‘costs that relate directly to a) The financial statements of the Parent Company and its
the contract’. Costs that relate directly to a contract can subsidiary companies have been consolidated on a line
either be incremental costs of fulfilling that contract by line basis by adding together of like items of assets,
(examples would be direct labour, materials) or an liabilities, income and expenses, after fully eliminating
allocation of other costs that relate directly to fulfilling intra-group balances and intra-group transactions
contracts. The amendment is essentially a clarification and resulting unrealised profit or losses, unless cost
and the Company does not expect the amendment to cannot be recovered, as per the applicable Accounting
have any significant impact in its financial statements. Standards in India. Accounting policies of the respective
subsidiaries are aligned wherever necessary, so as to
Ind AS 109 – Annual Improvements to Ind AS (2021) ensure consistency with the accounting policies that are
The amendment clarifies which fees an entity includes adopted by the Group under Ind AS.
when it applies the ‘10 percent’ test of Ind AS 109 in b) The results of subsidiaries acquired or disposed of during
assessing whether to derecognise a financial liability. the year are included in the CFS from the effective date
The Company does not expect the amendment to have of acquisition and up to the effective date of disposal, as
any significant impact in its financial statements. appropriate.
Ind AS 106 – Annual Improvements to Ind AS (2021) c) The CFS includes the share of profit / loss of the joint
ventures which are accounted as per the ‘equity

The amendments remove the illustration of the
method’.
reimbursement of leasehold improvements by the lessor
Under the equity method of accounting, the investments
in order to resolve any potential confusion regarding the
are initially recognised at cost and adjusted thereafter to
treatment of lease incentives that might arise because of
recognise the Company’s share of the post-acquisition
how lease incentives were described in that illustration.
profits or losses of the investee in profit or loss, and the
The Company does not expect the amendment to have
Company’s share of movements in OCI of the investee in OCI.
any significant impact in its financial statements.
Dividends received or receivable, if any from joint ventures
182

are recognised as a reduction in the carrying amount of the between the net disposal proceeds and the carrying
investment. amount of the asset and are recognised in the Statement
When the Company’s share of losses in an equity accounted of Profit and Loss when the asset is derecognised.
investment equals or exceeds its interest in the entity, the Capital work-in-progress comprises cost of fixed assets
Company’s does not recognise further losses, unless it has that are not yet ready for their intended use at the year
incurred obligations or made payments on behalf of the other end. Expenditure/ Income during construction period
entity. (including financing cost related to borrowed funds
d)
The CFS are presented, to the extent applicable, in for construction or acquisition of qualifying PPE) is
accordance with the requirements of Schedule III of included under Capital Work-in-Progress, and the same
the 2013 Act as applicable to the Company’s separate is allocated to the respective PPE on the completion of
financial statements. their construction. Advances given towards acquisition
e) Non-controlling interests, if any in the net assets of or construction of PPE outstanding at each reporting
the subsidiaries that are consolidated consists of date are disclosed as capital advances under “Other
the amount of equity attributable to non-controlling non-current assets”.
shareholders at the date of acquisition and subsequent Leasehold rent payable to MIDC relating to new project
addition of their share of changes in equity. of the Parent Company, during the project development
Profit or loss and each component of OCI are attributed to stage prior to its intended use, are considered as pre
the equity holders of the Parent and to the non-controlling - operative expenses and disclosed under Current
interests, even if this results in the non-controlling interests Assets and the same will be amortised in the year of
having a deficit balance. commencement of project.

3. Significant accounting policies
Subsequent expenditure is capitalised only if it is
3.1 Property, plant and equipment (PPE) probable that the future economic benefits associated
Recognition and measurement with the expenditure will flow to the Group.
Items of property, plant and equipment are measured Depreciation

at cost less accumulated depreciation and accumulated Depreciation is calculated on pro-rata basis using the
impairment losses, if any. diminishing balance method on cost of items of property,
The cost of an item of property, plant and equipment plant and equipment less their estimated residual
comprises: values over the estimated residual useful lives based on
a)
Its purchase price, including import duties and Schedule II of the Companies Act, 2013 except for plant
non-refundable purchase taxes after deducting & machinery.
trade discounts and rebates. In case of plant & machinery, based on internal
b) Any directly attributable cost of bringing the asset assessment, the Management believes that the useful
to its location and condition necessary for it to be lives as given below best represent the period over which
capable of operating in the manner intended by the the Management expects to use these assets. Hence
Management. the useful lives for these assets may different from the
useful lives as prescribed under Part C of Schedule II
If significant parts of an item of property, plant and
of the Companies Act, 2013. The Management believes
equipment have different useful lives, then they are
that these estimated useful lives are realistic and reflect
accounted and depreciated for as separate items (major
fair approximation of the period over which the assets
components) of property, plant and equipment.
are likely to be used.
Gains or losses arising from de-recognition of a property,
plant and equipment are measured as the difference
183
The estimated useful lives of items of property, plant borrowings to the extent that they are regarded as an
and equipment are as follows: adjustment to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs that are
Tangible Assets Useful lives as per
directly attributable to the acquisition or construction of
Schedule II
an asset that necessarily takes a substantial period of
Buildings 30 Years
time to get ready for its intended use are capitalised as
Computers part of the cost of that asset till the date it is ready for its
Computer – Server & Network 6 Years intended use or sale less any investment income on the
Computer – Others 3 Years temporary investment of those borrowings.
Other borrowing costs are recognised as an expense in
Plant & Machinery 5 - 15 Years
the period in which they are incurred.
Furniture and Fixtures 10 Years
3.4 Impairment of Non-Financial assets
Electrical Installation 10 Years
Assets are tested for impairment whenever events or
Motor Cars & Vehicles 8 Years
changes in circumstances indicate that the carrying
Office Equipments 5 Years
amount may not be recoverable. An impairment loss
Laboratory Equipments 10 Years is recognised for the amount by which the asset’s
Depreciation methods, useful lives and residual values carrying amount exceeds its recoverable amount. The
are reviewed at each reporting date and adjusted if recoverable amount is the higher of an asset’s fair value
appropriate. less costs of disposal and value in use. For the purpose
of assessing impairment, assets are grouped at the
3.2 Intangible Assets
lowest levels for which there are separately identifiable
Recognition and measurement
cash inflows which are largely independent of the cash
Intangible assets comprise of computer software and inflows from other assets or groups of assets.
patent / trademark, which acquired by the Group are
initially measured at cost. Such intangible assets are 3.5 Income Tax
subsequently measured at cost less accumulated Income tax expense comprises current and deferred tax.
amortisation and any accumulated impairment losses. It is recognised in profit or loss except to the extent that
it relates to a business combination, or items recognised
directly in equity or in other comprehensive income.
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in the Current Tax
specific asset to which it relates. Current tax comprises the expected tax payable or
Amortisation receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in
Amortisation is calculated to write off the cost of
respect of previous years. The amount of current tax
intangible assets less their estimated residual values
reflects the best estimate of the tax amount expected
and it is included in depreciation and amortisation in the
Statement of profit and loss. to be paid or received after considering the uncertainty,
if any, related to income taxes. It is measured using tax
Intangible assets are amortised over the estimated
rates enacted or substantively enacted by the reporting
useful lives as given below:
date.
Intangible Assets Useful life
Current tax assets and current tax liabilities are offset
Computer Software (WDV Method) 3 Years
only if, the Group:
Patent / Trademark (SLM Method) 10 Years
• has a legally enforceable right to set off the
3.3 Borrowing costs
recognised amounts; and
Borrowing costs are interest and other costs (including
• intends either to settle on a net basis, or to realise
exchange differences relating to foreign currency
the asset and settle the liability simultaneously.
184

Deferred tax
Minimum Alternate Tax (MAT) credit is recognised as a
Deferred tax is recognised in respect of temporary Deferred Tax Asset only when and to the extent there
differences between the carrying amounts of assets is convincing evidence that the Group will pay normal
and liabilities for financial reporting purposes and the income tax during the specified period. Such asset is
corresponding amounts used for taxation purposes. reviewed at each Balance Sheet date and the carrying
Deferred tax is not recognised for: amount of the MAT credit asset is written down to the
extent there is no longer a convincing evidence to the
• temporary differences arising on the initial
effect that the Group will pay normal income tax during
recognition of assets or liabilities in a transaction
the specified period.
that is not a business combination and that affects
neither accounting nor taxable profit or loss at the 3.6 Inventories
time of the transaction. Inventories which comprise raw materials, packing
• temporary differences related to investments in materials, work-in-progress, finished goods,
subsidiaries to the extent that the Group is able to consumables and stores & spares are carried at the
control the timing of the reversal of the temporary lower of cost and net realisable value.
differences and it is probable that they will not The cost of inventories is based on weighted average
reverse in the foreseeable future; and basis and includes expenditure incurred in acquiring the
• taxable temporary differences arising on the initial inventories, costs of production or conversion and other
recognition of goodwill. costs incurred in bringing the inventories to their present
location and condition. In the case of finished goods and
Deferred tax assets are recognised for unused tax
work in progress, cost includes an appropriate share
losses, unused tax credits and deductible temporary
of production overheads based on normal operating
differences to the extent that it is probable that future
capacity of production facilities.
taxable profits will be available against which they
Net realisable value is the estimated selling price in the
can be used. Deferred tax assets are reviewed at each
ordinary course of business, less the estimated costs of
reporting date and are reduced to the extent that it is
completion and the estimated costs necessary to make
no longer probable that the related tax benefit will
the sale.
be realised; such reductions are reversed when the
probability of future taxable profits improves. Obsolete, defective and unserviceable inventories
are duly provided for. The comparison of cost and net
Unrecognised deferred tax assets are reassessed at
realisable value is made on an item-by-item basis.
each reporting date and recognised to the extent that it
has become probable that future taxable profits will be
The net realisable value of work-in-progress is
determined with reference to the selling prices of related
available against which they can be used.
finished products. Raw materials and other supplies
Deferred tax is measured at the tax rates that are
held for use in the production of finished products are
expected to be applied to temporary differences when
not written down below cost except in cases where
they reverse, using tax rates enacted or substantively
material prices have declined and it is estimated that
enacted by the reporting date. the cost of the finished products will exceed their net
The measurement of deferred tax reflects the tax realisable value.
consequences that would follow from the manner
3.7 Cash and cash equivalents
in which the Group expects, at the reporting date, to
recover or settle the carrying amount of its assets and Cash and cash equivalents in the balance sheet comprise
liabilities. cash at banks and cash on hand and short-term deposits
with an original maturity of less than 3 months and
Deferred tax assets and liabilities are offset only if:
more than 3 months but less than 12 months which are
• the Group has a legally enforceable right to set off subject to an insignificant risk of changes in value.
current tax assets against current tax liabilities; and
For the purpose of the Statement of cash flows, cash
• the deferred tax assets and the deferred tax and cash equivalents consist of cash and short-term
liabilities relate to income taxes levied by the same deposits, as defined above, as they are considered as an
taxation authority on the same taxable Company. integral part of the Group’s cash Management.
185
3.8 Trade Payables principal and interest on the principal amount

Trade payables represent liabilities for goods including outstanding.
capital goods and services provided to the Group prior c) Financial assets at fair value through profit or
to the end of Financial year which are unpaid. Trade and loss (FVTPL)
other payables are reported as current liabilities unless
A Financial asset which is not classified in any of
payment is not due within 12 months after the reporting
the above categories is measured at FVTPL.
period. They are recognised initially at their fair value
and subsequently measured at amortised cost using the
Investment in subsidiaries, Associates and Joint
effective interest method. Ventures
The Group has opted to account for its investments in
3.9 Financial instruments
subsidiaries, associates and joint venture at cost less
A Financial instrument is any contract that gives rise to provision for diminution other than temporary.
a financial asset of one entity and a financial liability or
equity instrument of another entity. Other Equity Investments
All other equity investments are measured at fair value,
Financial assets
with value changes recognised in Statement of Profit
Initial recognition and measurement and Loss, except for those equity investments for which
All Financial assets are recognised initially at fair value the Group has made an irrevocable choice to present
plus, in the case of financial assets not recorded at fair the value changes in ‘Other Comprehensive Income’.
value through profit or loss, transaction costs that are Impairment of Financial assets
attributable to the acquisition of the financial asset.
In accordance with Ind AS 109, the Group uses ‘Expected
Purchases or sales of financial assets that require
Credit Loss’ (ECL) model, for evaluating impairment of
delivery of assets within a time frame established by Financial assets other than those measured at fair value
regulation or convention in the market place (regular through profit and loss (FVTPL).
way trades) are recognised on the trade date, i.e., the
Expected credit losses are measured through a loss
date that the Group commits to purchase or sell the
allowance at an amount equal to:
asset.
• The 12-months expected credit losses (expected
Subsequent measurement credit losses that result from those default events
a) Financial assets carried at amortised cost (AC) on the Financial instrument that are possible within
12 months after the reporting date); or
A Financial asset is measured at amortised cost
using the effective interest rate method, if it is held • Full lifetime expected credit losses (expected
within a business model whose objective is to hold credit losses that result from all possible default
the asset in order to collect contractual cash flows events over the life of the financial instrument).
and the contractual terms of the Financial asset For trade receivables, the Group applies ‘simplified
give rise on specified dates to cash flows that are approach’ which requires expected lifetime losses to be
solely payments of principal and interest on the recognised from initial recognition of the receivables.
principal amount outstanding. The Group uses historical default rates to determine
impairment loss on the portfolio of trade receivables.
b)
Financial assets at fair value through other
At every reporting date these historical default rates are
comprehensive income (FVTOCI)
reviewed and changes in the forward looking estimates
A Financial asset is measured at FVTOCI if it is are analysed.
held within a business model whose objective is
For other assets, the Group uses 12 month ECL to
achieved by both collecting contractual cash flows
provide for impairment loss where there is no significant
and selling financial assets and the contractual
increase in credit risk. If there is significant increase in
terms of the financial asset give rise on specified
credit risk, full lifetime ECL is used.
dates to cash flows that are solely payments of
186

Financial liabilities exchange exposure on highly probable future cash

flows attributable to a recognised asset or liability
Initial recognition and measurement
or forecast cash transactions. When a derivative is
All financial liabilities are recognised at fair value and in case designated as a cash flow hedging instrument, the
of loans, net of directly attributable cost. Fees of recurring effective portion of changes in the fair value of the
nature are directly recognised in the Statement of Profit and derivative is recognised in the cash flow hedging
Loss as finance cost. reserve being part of other comprehensive income. Any
Subsequent measurement ineffective portion of changes in the fair value of the
derivative is recognised immediately in the Statement
Financial liabilities are carried at amortised cost using the
of Profit and Loss. If the hedging relationship no longer
effective interest method. For trade and other payables
meets the criteria for hedge accounting, then hedge
maturing within one year from the balance sheet date, the
accounting is discontinued prospectively. If the hedging
carrying amounts approximate fair value due to the short
instrument expires or is sold, terminated or exercised,
maturity of these instruments.
the cumulative gain or loss on the hedging instrument
a) Derivative financial instruments and Hedge recognised in cash flow hedging reserve till the period
Accounting the hedge was effective remains in cash flow hedging
The Parent Company uses various derivative financial reserve until the underlying transaction occurs. The
instruments such as forwards and Interest rate swaps cumulative gain or loss previously recognised in the cash
to mitigate the risk of changes in exchange rates and flow hedging reserve is transferred to the Statement of
Interest rates. Such derivative financial instruments Profit and Loss upon the occurrence of the underlying
are initially recognised at fair value on the date on transaction. If the forecasted transaction is no longer
which a derivative contract is entered into and are also expected to occur, then the amount accumulated in cash
subsequently measured at fair value. Derivatives are flow hedging reserve is reclassified in the Statement of
carried as financial assets when the fair value is positive Profit and Loss.
and as financial liabilities when the fair value is negative. Fair Value Hedge
Any gains or losses arising from changes in the fair value The Parent Company designates derivative contracts
of derivatives are taken directly to Statement of Profit or non derivative financial assets / liabilities as hedging
and Loss, except for the effective portion of cash flow instruments to mitigate the risk of change in fair value of
hedges which is recognised in Other Comprehensive hedged item due to movement in interest rates, foreign
Income and later to Statement of Profit and Loss exchange rates and commodity prices.
when the hedged item affects profit or loss or treated
Changes in the fair value of hedging instruments and
as basis adjustment if a hedged forecast transaction
hedged items that are designated and qualify as fair
subsequently results in the recognition of a non-
value hedges are recorded in the Statement of Profit
financial assets or non-financial liability.
and Loss. If the hedging relationship no longer meets
In case of loss / gains from interest rate swaps, directly the criteria for hedge accounting, the adjustment to the
attributable to the acquisition or construction of an carrying amount of a hedged item for which the effective
asset that necessarily takes a substantial period of time interest method is used is amortised to Statement of
to get ready for its intended use are capitalised as part Profit and Loss over the period of maturity.
of the cost of that asset till the date it is ready for its
b) De-recognition of Financial instruments
intended use or sale.
The Group derecognises a Financial asset when the
Hedges that meet the criteria for hedge accounting are
contractual rights to the cash flows from the Financial
accounted for as follows:
asset expire or it transfers the Financial asset and the
Cash flow hedge transfer qualifies for de-recognition under Ind AS 109.
The Parent Company designates derivative contracts A financial liability (or a part of a financial liability) is
or non derivative financial assets / liabilities as hedging derecognised from the Group’s Balance Sheet when
instruments to mitigate the risk of movement in the obligation specified in the contract is discharged or
interest rates and foreign exchange rates for foreign cancelled or expires.
187
c) Offsetting Sale of Products

Financial assets and financial liabilities are offset and Revenue from sale of goods is recognised when control
the net amount is reported in the balance sheet when of the products being sold is transferred to the customers
and only when, the Group has legally enforceable right and when there are no longer any unfulfilled obligations.
to set off the amount and it intends, either to settle The performance obligations in contracts are fulfilled at
them on net basis or to realise the assets and settle the the time of dispatch, delivery or upon formal customer
liabilities simultaneously. acceptance depending on customer terms. Revenue
from the sale of goods is measured based on the
3.10 Business Combinations
consideration specified in a contract with a customer,
Business combinations are accounted for using Ind AS net of returns and allowances, trade discounts, volume
103 Business combination. Acquisitions of businesses rebates and any taxes or duties collected on behalf of
are accounted for using the acquisition method unless the government such as goods and service tax. The
the transaction is between entities under common group does not provide any warranties or maintenance
control. Acquisition related costs are recognised in the contracts to its customers.
statement of profit and loss as incurred. The acquiree’s
Variable consideration
identifiable assets, liabilities and contingent liabilities
that meet the conditions for recognition are recognised This includes incentives, volume rebates, discounts etc.
It is estimated at contract inception and constrained until
at their respective fair value at the acquisition date,
it is highly probable that a significant revenue reversal in
except certain assets and liabilities required to be
the amount of cumulative revenue recognised will not
measured as per applicable standards. Purchase
occur when the associated uncertainty with the variable
consideration in excess of the Group’s interest in the
consideration is subsequently resolved. It is reassessed
acquiree’s net fair value of identifiable assets, liabilities
at end of each reporting period.
and contingent liabilities is recognised as Goodwill.
Excess of the Group’s interest in the net fair value of the Significant financing component
acquiree’s identifiable assets, liabilities and contingent Generally, the Group receives short-term advances from
liabilities over the purchase consideration is recognised, its customers. Using the practical expedient in Ind AS
after reassessment of fair value of net assets acquired 115, the Group does not adjust the promised amount
as Capital reserve i.e. Amalgamation reserve. of consideration for the effects of a significant financing
Business combinations arising from transfer of interests component if it expects, at contract inception, that the
in entities that are under common control are accounted period between the transfer of the promised goods or
using pooling of interest method wherein, assets and service to the customer and when the customer pays for
liabilities of the combining entities are reflected at their that goods or service will be one year or less.
carrying value, no adjustment are made to reflect fair Cost to obtain a contract
values, or recognise any new assets or liabilities. The The Group pays sales commission to its selling agents
identity of the reserves is preserved and appears in the for each contract that they obtain for the group. The
Financial Statements of the transferee in the same form Group has elected to apply the optional practical
in which they appeared in the Financial Statements of expedient for costs to obtain a contract which allows
the transferor. the Group to immediately expense sales commissions
3.11 Revenue Recognition because the amortisation period of the asset that the
Group otherwise would have used is one year or less.
Revenue from contracts with customer
Costs to fulfill a contract i.e. freight, insurance and other
Revenue from contract with customers is recognised selling expenses are recognised as an expense in the
when the Group satisfies performance obligation period in which related revenue is recognised.
by transferring promised goods and services to the
customer. Performance obligations are satisfied at the Other Operating Revenues
point of time when the customer obtains controls of the Other operating revenue mainly consists of sale of scrap
goods. arising from the production of finished goods.
188

Interest Income expected to be settled wholly within 12 months after

Interest income is recorded using the effective interest the end of the period in which the employees render the
rate (EIR). EIR is the rate that exactly discounts the related service are recognised in respect of employees’
estimated future cash payments or receipts over the service up to the end of the reporting period and are
expected life of the financial instrument or a shorter measured at the amounts expected to be paid when
period, where appropriate, to the gross carrying amount the liabilities are settled. The liabilities are reported as
of the financial asset or to the amortised cost of a current employee benefits payable in the balance sheet.
financial liability. Post-employment benefits
Interest income is included in finance income in the
a) Defined benefit plans
Statement of profit and loss.
The liability or asset recognised in the balance sheet
Interest income earned on the temporary investment
in respect of defined benefit plans is the present value
of specific borrowings pending their expenditure on
of the defined benefits obligation at the end of the
qualifying assets is deducted from the borrowing costs
reporting period less the fair value of plan assets. The
eligible for capitalisation.
defined benefit obligation is calculated annually by
Dividends actuaries using the Projected Unit Credit Method at the
Revenue is recognised when the Group’s right to receive year end.
the payment is established, which is generally when The present value of the defined benefit obligation is
shareholders approve the dividend. determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
Insurance and other claims
reporting period on government bonds that have terms
Revenue in respect of Insurance and other claim is
approximating to the terms of the related obligations.
recognised only on reasonable certainty of ultimate
The net interest cost is calculated by applying the
collection.
discount rate to the net balance of the defined benefit
3.12 Foreign Currencies obligation and the fair value of plan assets. This cost is
Items included in the financial statements of each included in Employee Benefit Expense in the Statement
entities of the Group are measured using the currency of profit and loss.
of the primary economic environment in which the
Re-measurement gains and losses arising from
Parent Company operates (‘the functional currency’). experience adjustments and changes in actuarial
The Consolidated Financial Statements are presented in assumptions are recognised in the period in which they
Indian Rupees, which is the functional and presentation occur, directly in Other Comprehensive Income. They
currency of the Parent Company. are included in retained earnings in the statement of
Transactions and balances changes in equity.
Transactions in foreign currencies are initially recorded Changes in the present value of the defined benefit
by the group at its functional currency spot rates at obligation resulting from plan amendments or
the date the transaction first qualifies for recognition. curtailments are recognised immediately in the profit or
Monetary assets and liabilities denominated in foreign loss as past service cost.
currencies are translated at the functional currency spot b) Defined contribution plans
rates of exchange at the reporting date.
Contributions under defined contribution plans payable

Exchange differences arising on settlement or in keeping with the related schemes are recognised
translation of monetary items are recognised in profit or as expenses for the period in which the employee has
loss. rendered the service.
3.13 Employee benefits 3.14 Leases
Short term employee benefits As a lessee
Liabilities for short term employee benefits that are Leases in which a significant portion of the risks and
189
rewards of ownership are not transferred to the group as events where it is either not probable that an outflow
lessee are classified as operating leases. Payments made of resources embodying economic benefits will be
under operating leases are charged to the statement of required to settle or a reliable estimate of the amount
profit and loss on a straight line basis over the period of cannot be made.
the lease unless the payments are structured to increase
3.16 Dividend
in line with expected general inflation to compensate for
Provision is made for the amount of any dividend
the lessor’s expected inflationary cost increases.
declared, being appropriately authorised and no longer
3.15 Provisions and contingent liabilities at the discretion of the Parent Company, on or before
Provisions are recognised when the Group has a present the end of the reporting period but not distributed at the
legal or constructive obligation as a result of past events end of the reporting period.
and it is probable that an outflow of resources will be
3.17 Earnings per share (EPS)
required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for Basic earnings per share
future operating losses. Basic earnings per share is calculated by dividing
Provisions are measured at the present value of the the profit attributable to owners of the equity by the
Management’s best estimates of the expenditure weighted average number of equity shares outstanding
required to settle the present obligation at the end of the during the financial year.
reporting period. The discount rate used to determine Diluted earnings per share
the present value is a pre-tax rate that reflects current
Diluted earnings per share adjusts the figures used in
market assessments of the time value of money and the
the determination of basic earnings per share to take
risk specific to the liability. The increase in the provision
into account
due to the passage of time is recognised as interest
expense. • The after income tax effect of interest and other
financing costs associated with dilutive potential
A disclosure for contingent liabilities is made when
equity shares, and
there is a possible obligation arising from past events,
the existence of which will be confirmed only by the • The weighted average number of additional equity
occurrence or non-occurrence of one or more uncertain shares that would have been outstanding assuming
future events not wholly within the control of the the conversion of all dilutive potential equity
Group or a present obligation that arises from past shares.
190
Note 4 Non Current Assets : Property, Plant and Equipment (PPE)
(` in lakhs)
Particulars Factory / Office Resi- Factory Plant and Electrical Laborato- Office Furni- Com- Vehicles Total
Research Premises dential Flat Equipments Equip- ry Equip- Equip- ture & puter & Property
Centre Premises ments ments ments Fixtures Periph- Plant and
Building erals (in- Equipment
cluding
Server &
Network)

Balance as at April 1, 2020 14,983.19 105.66 77.44 2.76 20,593.21 2,053.83 860.44 728.31 763.85 737.17 893.33 41,799.19
Add: Additions during the year 837.90 - - - 1,203.26 148.90 50.36 91.98 49.99 104.38 93.44 2,580.21
Add: Additions during the year 3,112.82 175.55 - - 3,016.56 473.06 25.57 103.17 48.33 259.31 103.80 7,318.18
Balance as at March 31, 2022 18,933.42 281.21 77.44 2.76 24,687.91 2,662.07 937.91 913.32 862.15 1,070.91 980.66 51,409.77
Balance as at April 1, 2020 4,995.35 64.97 17.44 1.31 11,315.70 977.35 617.26 502.12 562.47 561.50 592.03 20,207.50
191
Net Carrying Amount
Balance as at March 31, 2021 9,850.75 38.12 57.09 1.38 7,572.55 934.40 229.19 207.78 198.96 155.65 285.28 19,531.15
Note 5 Non Current Assets : Capital Work in Progress

(` in lakhs)
March 31, 2022 March 31, 2021
Balance at the beginning of the year 2,630.42 584.11
Add:- Additions during the year 6,122.14 4,614.09
Less:- Capitalisation during the year 7,340.09 2,567.78
Balance at the end of the year 1,412.47 2,630.42
Note 5.1 for Capital Work-in Progress

(` in lakhs)
-- Projects in progress 919.41 219.25 262.06 11.75 1,412.47
Total 919.41 219.25 262.06 11.75 1,412.47
(` in lakhs)
-- Projects in progress 2,321.19 266.48 41.01 1.74 2,630.42
Total 2,321.19 266.48 41.01 1.74 2,630.42
Note 5.2 There is no Capital Work-in Progress, whose completion is overdue or has exceeded its cost compared to its original
plan.
Note 6 Non Current Assets : Intangible Assets

(` in lakhs)
Particulars Software Patents & Total Intangible
Trademarks Assets
Less: Disposals/ Adjustments (1.58) - (1.58)
Net Carrying Amount
192

Note 7 Non Current Financial Assets : Investments

(` in lakhs)
March 31, 2022 March 31, 2021
Unquoted Investment in Equity Instruments of Jointly Controlled Entity (At Cost)
(i) Fine Zeelandia Private Limited 3,002.96 3,105.11
(Current Year: 4,02,84,250 shares of ₹ 10 each fully paid up)
(Previous Year: 4,02,84,250 shares of ₹ 10 each fully paid up)
(ii) FineADD Ingredients GmbH {refer to note no. 7.1} - -
(Current Year: 2,500 shares of € 100 each fully paid up)
(Previous Year: 2,500 shares of € 100 each fully paid up)
(iii) Fine Organic Industries (Thailand) Co., Ltd. 53.27 -
(Current Year: 22,500 shares of Thai Baht 100 each fully paid up)
Unquoted Investment in Equity Instruments at FVTOCI
(i) Saraswat Co-Operative Bank Limited 4.83 4.80
(Current Year: 2,500 shares of ₹ 10 each fully paid up)
(Previous Year: 2,500 shares of ₹ 10 each fully paid up)
Total 3,061.06 3,109.91
Note 7.1 Diminution in value of the Investment in a joint venture

The Parent Company has fully provided for the diminution in the value of its investment in the Joint Venture Entity “FineADD
Ingredients GmbH”, in view of its decision not to proceed with the Joint Venture and accordingly recorded the provision for the
balance amount of ₹ 120.73 lakhs in the books of account.The Joint Venture is in the process of liquidation.
Note 8 Non Current Financial Assets : Loans

(` in lakhs)
March 31, 2022 March 31, 2021
Unsecured, considered good
Loan to employees 131.59 123.49
Total 131.59 123.49
Note 9 Non Current Financial Assets : Others

(` in lakhs)
March 31, 2022 March 31, 2021
Security Deposits Rent (Amortised Cost) 36.98 36.12
Fixed Deposits with Bank (Original Maturity More than 12 months) 336.29 219.60
Total 373.27 255.72
193
Note 10 Deferred Tax Asset (Net)

(` in lakhs)
March 31, 2022 March 31, 2021
Others 49.30 53.22
Gross Deferred Tax Asset (a) 979.81 868.07
Others 144.24 73.17
Gross Deferred Tax Liability (b) 144.24 73.17
Deferred Tax Assets (Net) (a-b) 835.57 794.90
Note 11 Other Non Current Assets

(` in lakhs)
March 31, 2022 March 31, 2021
Capital Advances (Unsecured, Considered good) 2,614.45 2,690.15
Security Deposits 253.55 253.09
Income Tax Refund Receivables 15.83 15.83
Prepaid Rent on Leasehold Land & Premises 3,215.29 3,255.64
Total 6,099.12 6,214.71
Note 11.1 Disclosure to Other Non Current Assets - Capital Advances

The Parent Company has given an advance of ₹ 2,420 lakhs to MIDC for allotment of a plot at Pale, Ambernath, which is disclosed
under Capital advances. The MIDC has issued an allotment letter, however, the Parent Company is still unable to take possession
of the said plot, as so far the MIDC has not created any of the basic infrastructure facilities such as water, electricity, roads etc.
Upon possession, the Parent Company plans to setup a centralised warehousing facility, however, the Parent Company shall carry
out a feasibility study and then decide upon the appropriate action to be taken for the said plot. Present value of the said plot as
per the ready reckoner rate & the valuation report dated November 1, 2021 obtained by the Parent Company is higher than the
advance given and accordingly, no provision is required to be made.
194

Note 12 Current Assets : Inventories

(` in lakhs)
March 31, 2022 March 31, 2021
Raw Materials and Packing Materials 11,354.97 5,026.82
Trading Goods 3,393.46 1,725.38
Consumables 164.69 59.50
Stores & Spares 1,810.81 1,551.30
Total 23,558.55 12,617.94
Note 13 Current Financial Assets : Trade Receivables

(` in lakhs)
March 31, 2022 March 31, 2021
Secured, Considered good - -
Unsecured
Considered good 30,075.08 16,102.35
From Related Parties {Refer to note no. 42(b)} 61.51 60.51
Which have significant increase in Credit Risk 100.87 136.34
Sub Total 30,237.46 16,299.20
Less: Allowance for Expected Credit Loss 100.87 136.34
Total 30,136.59 16,162.86
(` in lakhs)
19,603.68 10,435.60 49.66 26.76 53.98 67.78 30,237.46
considered good
(ii) Undisputed Trade Receivables
- - - - - - -
— considered doubtful
- - - - - - -
considered good
- - - - - - -
considered doubtful
(` in lakhs)
10,722.47 5,311.42 115.52 49.99 47.34 52.46 16,299.20
considered good
- - - - - - -
considered doubtful
- - - - - - -
considered good
- - - - - - -
considered doubtful

195
Note 14 Current Financial Assets : Cash and cash Equivalents

(` in lakhs)
March 31, 2022 March 31, 2021
Balances with Banks
In Fixed Deposit Account (With original maturity of less than 3 Months) 17,532.48 17,849.76
Total 22,607.80 25,897.28
Note 15 Current Financial Assets : Bank Balances

(` in lakhs)
March 31, 2022 March 31, 2021
Balances with Banks
In Fixed Deposits (with original maturity of more than 3 months and 12 months
648.03 477.01
or less)
Note 16 Current Financial Assets : Others

(` in lakhs)
March 31, 2022 March 31, 2021
Unsecured, Considered Good
Security Deposit 24.14 23.96
Total 24.14 23.96
Note 17 Current Tax Assets (Net)

(` in lakhs)
March 31, 2022 March 31, 2021
Income tax (Net of Provision for Income Tax) 654.47 526.99
Total 654.47 526.99
Note 18 Other Current Assets
(` in lakhs)
March 31, 2022 March 31, 2021
Prepaid Expenses 401.78 314.50
Balance with Statutory / Government Authorities * 3,736.80 2,749.52
Gratuity Fund Balance with LIC of India 87.54 80.06
Other Advances (including advance to suppliers) 6,935.79 3,197.27
Total 11,161.91 6,341.35
* Balances with Government Authorities primarily include amounts realisable for GST, the unutilised GST input tax credits. These
are generally realised within one year or utilised regularly. Accordingly, these balances have been classified as “Other Current
Assets”.

196

Note 19 Equity Share Capital

(` in lakhs)
March 31, 2022 March 31, 2021
AUTHORISED
(Previous Year: 4,00,00,000 Equity Shares of ` 5 each)
Total 2,000.00 2,000.00
ISSUED, SUBSCRIBED AND PAID-UP
(Previous Year: 3,06,59,976 Equity Shares of ` 5 each )
Total 1,533.00 1,533.00
Note 19.1 - Reconciliation of number of shares outstanding is set out below:
March 31, 2022 March 31, 2021
Equity Shares at the beginning of the year 3,06,59,976 3,06,59,976
Add:- Shares issued during the year - -
Less:- Shares bought back during the year - -
Equity Shares at the end of the year 3,06,59,976 3,06,59,976
Note 19.2 - Terms/ rights attached to equity shares
The Parent Company has one class of equity shares having a par value of ₹ 5 per share. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Note 19.3 - Details of Shareholders holding more than 5 % shares of the Company
Name of share holders As at March 31, 2022 As at March 31, 2021
Number of % in Share Number of % in Share
Shares Capital Shares Capital
Prakash Damodar Kamat 44,52,835 14.52% 44,52,835 14.52%
Jyotsna Ramesh Shah 43,25,886 14.11% 43,25,886 14.11%
Tushar Ramesh Shah 36,99,182 12.07% 36,99,182 12.07%
Jayen Ramesh Shah 34,23,627 11.17% 34,23,627 11.17%
Bimal Mukesh Shah 21,16,827 6.90% 21,16,827 6.90%
Mukesh Maganlal Shah 17,64,045 5.75% 17,64,045 5.75%
197
Note 19.4 - Disclosure of Shareholding of Promoters / Promoters Group

Disclosure of shareholding of Promoters / Promoters Group as at March 31, 2022 is as follows:
Sr Promoters / Promoters Shares held % Change during
Nos Group name As at March 31, 2022 As at March 31, 2021 the year
Promoters
1 Prakash Damodar Kamat 44,52,835 14.52% 44,52,835 14.52% 0.00%
2 Mukesh Maganlal Shah 17,64,045 5.75% 17,64,045 5.75% 0.00%
3 Jayen Ramesh Shah 34,23,627 11.17% 34,23,627 11.17% 0.00%
4 Tushar Ramesh Shah 36,99,182 12.07% 36,99,182 12.07% 0.00%
5 Bimal Mukesh Shah 21,16,827 6.90% 21,16,827 6.90% 0.00%
6 Jyotsna Ramesh Shah 43,25,886 14.11% 43,25,886 14.11% 0.00%
Promoters Group
7 Jayshree Mukesh Shah 5,68,572 1.85% 5,68,572 1.85% 0.00%
8 Neeta Jayen Shah 6,59,892 2.15% 6,59,892 2.15% 0.00%
9 Bina Tushar Shah 5,74,380 1.87% 5,74,380 1.87% 0.00%
10 Shaili Nirav Doshi 1,22,898 0.40% 1,22,898 0.40% 0.00%
11 Manali Vishal Doshi 76,614 0.25% 76,614 0.25% 0.00%
12 Rhea Tushar Shah 1,06,614 0.35% 1,06,614 0.35% 0.00%
13 Esha Tushar Shah 1,06,620 0.35% 1,06,620 0.35% 0.00%
14 R M Shah HUF 3,08,542 1.01% 3,09,042 1.01% -0.16%
15 P D Kamat HUF 1,37,178 0.45% 1,37,178 0.45% 0.00%
16 M M Shah HUF 1,40,574 0.46% 1,40,574 0.46% 0.00%
17 Jayen R Shah HUF 3,06,978 1.00% 3,06,978 1.00% 0.00%
18 Tushar R Shah HUF 1,03,218 0.34% 1,03,218 0.34% 0.00%
19 Maltiben Pradipkumar Shah 19 0.00% 19 0.00% 0.00%
Total 2,29,94,501 75.00% 2,29,95,001 75.00%
There is no change in promoters / promoters group shareholding during FY 2020-21.
Note 19.5 - Details of shares reserved for options and contracts / commitments for sale of shares / disinvestment
The Parent Company has not reserved any shares for issue of options and contracts / commitments for sale of shares /
disinvestment.
198

Note 19.6 - Details of calls unpaid

There is no calls unpaid.
Note 19.7 - Subdivision of shares
The Shareholders vide a special resolution has approved sub division of equity shares of the Parent Company in the ratio of
2 shares of face value of ₹ 5 each for every existing 1 share of the face value of ₹ 10 each.
The requisite approvals for modification of the Memorandum and Articles of Association of the Parent Company had been accorded
by the shareholders on November 6, 2017.
Note 19.8 - Aggregate number of bonus shares issued, shares issued for consideration other than cash during the period of
five years immediately preceding the reporting date
(i) The Parent Company has issued 2,80,000 Equity Shares of ₹ 10 Each in Financial year 2016-17 for consideration other than
cash to the shareholders of Fine Research & Development Centre Private Limited (“FRDCPL”) and Fine Speciality Surfactants
Private Limited (“FSSPL”) on account of Amalgamation.
(ii) During the year ended March 31, 2018, the Parent Company has issued 1,02,19,992 Equity shares of ₹ 10 each (Pre
Subdivision of shares) pursuant to the bonus issue of shares vide special resolution approved by the shareholders dated
October 16, 2017.
The Parent Company has allotted 2 (Two) Fully paid up equity shares of ₹ 10 each for every 1 (One) Equity shares held by the
shareholders (Including shares issued to the shareholders on account of amalgamation with FRDCPL & FSSPL).
Later on as per special resolution dated November 6, 2017, such shares are sub divided in to the ratio of 2 (Two) shares of
face value of ₹ 5 each for every existing 1 (One) share of the face value of ₹ 10 each.
Note 20 Other Equity

(` in lakhs)
March 31, 2022 March 31, 2021
(a) Amalgamation Reserve 1,155.24 1,155.24
(Includes ₹ 4.23 lakhs On Account of Amalgamation)
(b) Capital Reserve 10.02 -
(c) Retained Earnings
Balance as at the beginning of the year 71,540.99 60,428.45
Add: Profit for the year 25,970.91 12,034.13
Reversal of loss of Joint Venture accounted as per Equity Method 120.73 -
Less: Dividend 3,372.60 919.76
Share of Non Controlling interest 9.92 1.83
Balance as at the end of the year 94,250.11 71,540.99
(d) Other Comprehensive Income
Add: Other Comprehensive Income for the year 271.50 232.90
Balance as at the end of the year (199.35) (470.85)
(e) Foreign Exchange Translation Reserve
Add: Addition / (Deletion) (209.09) (95.89)
Balance as at the end of the year (830.40) (621.31)
(f) Other Reserves
Balance as at the beginning of the year 1.60 1.55
Add: Addition / (Deletion) (0.03) 0.05
Balance as at the end of the year 1.57 1.60
Total (a + b + c + d + e + f) 94,387.19 71,605.67
199
(a) Amalgamation Reserve - At the time of business combination under common control, amlagamation adjustment reserve of
transferor company becomes amlagamation adjustment reserve of the transferee company. The Parent company established
this reserve at the time of business combinations made in the earlier years.
(b) Capital Reserve - The Group has recognised profit on account of purchase of shares of Subsidiary Company in capital
reserve.
(c) Retained Earnings represents undistributed accumulated earnings of the Group as on the balance sheet date.
(d) Other Comprehensive Income represents the following -
1. The cumulative gains and losses arising on fair value changes of equity investments measured at fair value through
other comprehensive income are recognised in FVOCI - equity instruments reserve
2. The Parent Company uses hedging instruments as part of its Management of interest rate risk associated with
borrowings. For hedging interest rate risk, the Parent Company uses the interest rate swaps. To the extent this hedges
are effective, the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts
recognised in the cash flow hedged reserve is reclassified to the statement of profit and loss when the hedged item
affects the statement of profit and loss (e.g. interest payments).
3. Remeasurements, comprising of actuarial gains and losses are recognised in full in the statement of other
comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and
loss subsequently.”
(e) Foreign Exchange Translation Reserve represents the exchange differences arising from the translation of financial
statements of foreign operations with functional currency other than Indian Rupee is presented within equity in the foreign
currency translation reserve.
(f) Other Reserves represents the reserve created by the Subsidiary Company in Europe as per the applicable Company
law.
Note 21 Non Controlling Interest

(` in lakhs)
March 31, 2022 March 31, 2021
Non Controlling interest in Subsidiary 6.91 5.08
Add:- Share of current year's profit 9.92 1.83
Less : Sale Proceeds (16.83) -
Total - 6.91
Note 22 Non Current Financial Liabilities : Borrowings

(` in lakhs)
March 31, 2022 March 31, 2021
Secured Loans
Foreign Currency Borrowings - External Commercial Borrowings
From Bank {Refer to note no. 22.1} 5,852.75 8,917.28
Less : Current Maturity {Refer to note no. 24} (3,344.43) (3,242.85)
Total 2,508.32 5,674.43
200

Note 22.1 - Disclosure to Non Current Financial Liabilities : Borrowings

(i) The foreign currency borrowings is secured against exclusive charge on specific Land & Building and Plant & Machinery
of the borrower at plot no. N-42/1, MIDC, Anand Nagar, Additional Ambernath Industrial Area, Ambernath - 421501,
Maharashtra.
(ii) Remaining tenure of the borrowing is 21 Months
Note 23 Non Current Financial Liabilities : Others
(` in lakhs)
March 31, 2022 March 31, 2021
Derivatives Designated as Hedge
Interest Rate Swaps 86.61 435.30
Total 86.61 435.30
Note 24 Current Financial Liabilities : Borrowings
(` in lakhs)
March 31, 2022 March 31, 2021
Secured Loans
Current maturities of Long-term Borrowings 3,344.43 3,242.85
Total 3,344.43 3,242.85
Note 25 Current Financial Liabilities : Trade Payables
(` in lakhs)
March 31, 2022 March 31, 2021
Outstanding due to Micro and Small Enterprises {Refer to note no. 25.1} 904.87 318.49
Others 14,450.56 9,459.64
Total 15,355.43 9,778.13
Note 25.1 - Disclosure to Current Financial Liabilities : Trade Payables

Dues to micro and small enterprises
Micro & Small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have
been identified by the Parent Company on the basis of the information available with the Parent Company and the auditors have
relied on the same. Sundry creditors include total outstanding dues of micro and small enterprises amounting to ₹ 904.87 lakhs
(Previous Year: ₹ 318.49 lakhs). The disclosure pursuant to MSMED Act based on the books of account is as under:

(` in lakhs)
March 31, 2022 March 31, 2021
(i) Principal amount remaining unpaid 904.87 318.49
(ii) Interest due on above and the unpaid interest 2.34 3.27
(iii) Interest paid in terms of Section 16 of MSMED Act - -
(iv) Amount of payments made to supplier beyond the appointed day - -
(v) Amount of interest due and payable for the period of delay on payment made
beyond the appointed day during the year without adding interest specified under - -
MSMED Act,2006
201
(vi) Amount of Interest accrued and remaining unpaid 2.34 3.27

(vii) Amount of further interest remaining due and payable in succeeding years for the
- -
purpose of disallowance under section 23 of the MSMED Act,2006
(*) The interest has not been accrued in the books of account since the outstanding amount majorly includes retention amount
payable after completion of contract period.
Particulars Outstanding for following periods from due date of payment Total
(i) MSME 904.87 - - - 904.87
(ii) Others 14,262.01 112.73 13.78 62.04 14,450.56
Particulars Outstanding for following periods from due date of payment Total
(i) MSME 318.49 - - - 318.49
(ii) Others 9,277.29 34.71 33.64 114.00 9,459.64
Note 26 Current Financial Liabilities : Others
(` in lakhs)
March 31, 2022 March 31, 2021
Trade / Security Deposits from Customers 145.58 250.89
Dividend Payable 1.59 0.72
Total 147.17 251.61
Note 27 Other Current Liabilities
(` in lakhs)
March 31, 2022 March 31, 2021
Statutory dues Payable 642.93 66.52
Contractual Liabilities {refer to note no. 30.1} 792.13 365.03
Other Liabilities 160.06 0.42
Total 1,595.12 431.97
202

Note 28 Current Liabilities : Provisions
(` in lakhs)
March 31, 2022 March 31, 2021
Provision for CSR Expenses {refer to note no. 37.1} 204.43 404.47
Provision for Expenses 2,826.32 940.42
Total 3,030.75 1,344.89
Note 29 Current Tax Liabilities (Net)
(` in lakhs)
March 31, 2022 March 31, 2021
Income Tax (Net of Income Tax paid) 1,647.11 457.11
Total 1,647.11 457.11
Note 30 Revenue from Operations
(` in lakhs)
March 31, 2022 March 31, 2021
(A) Revenue from Contracts with customers
Sales - Specialty chemicals 1,85,990.64 1,10,768.19
Sales - Others 1,610.69 2,549.89
Total [A] 1,87,601.33 1,13,318.08
(B) Other Operating Revenue
Income from sale of Scrap [B] 24.59 3.76
Total [A] + [B] 1,87,625.92 1,13,321.84
Note 30.1 - Other disclosure relating to Revenue from Contracts with Customers (Ind AS 115)
The Group is primarily in the Business of manufacture and sale of Specialty chemicals. All sales are made at a point in time
and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery. The Group
evaluates the credit limits for the trade receivables. The Group does not give significant credit period resulting in no significant
financing component.
Further, disaggregation of revenue based on geography has been mentioned under segment information.
{refer to note no. 43.3}
Reconciliation of Revenue recognised from contracts with customers with Contract liabilities
(` in lakhs)
Particulars F.Y. 2021-22 F.Y. 2020-21
Opening Contract Liability 365.03 284.07
Add: Addition to contract liability during the year 13,974.98 8,087.49
Less: Recognised as revenue during the year 13,547.88 8,006.53
Closing Contract liability 792.13 365.03
203
Reconciliation of revenue as per contract price and as recognised in statement of profit and loss
(` in lakhs)
March 31, 2022 March 31, 2021
Revenue from contract with customer as per Contract price 1,89,147.07 1,13,554.78
Less: Discounts and Rebates 21.31 22.88
Less: Sales Returns 1,524.43 213.82
Revenue from contract with customer as per statement of profit and loss 1,87,601.33 1,13,318.08
Note 31 Other Income
(` in lakhs)
March 31, 2022 March 31, 2021
Interest Income {Refer to note no. 31.1} 607.92 682.74
Net gain on foreign exchange fluctuations 2,457.68 957.61
Reversal of Expected Credit Loss 35.47 20.66
Other Non Operating Income
Profit on Sale of Property, Plant and Equipment (Net of Loss) 7.37 1.56
Insurance claim received 192.48 13.68
Miscellaneous Income 5.22 33.52
Total 3,306.14 1,709.77
Note 31.1 - Particulars of Interest Income
(` in lakhs)
March 31, 2022 March 31, 2021
Interest Income from Financial Assets on Amortised Cost Basis [at EIR] 554.57 662.98
Interest Income from Non Financial Assets 53.35 19.76
Total 607.92 682.74
Note 32 Cost of Material Consumed
(` in lakhs)
March 31, 2022 March 31, 2021
Raw Materials and Packing Materials Consumed
Opening Stock at the beginning of the year 5,026.82 5,495.69
Add : Purchases and incidental expenses 1,28,326.27 71,067.14
1,33,353.09 76,562.83
Less : Closing stock at the end of the year 11,354.97 5,026.82
Total 1,21,998.12 71,536.01
Note 32.1 - Purchase of Stock-in-trade (` in lakhs)

March 31, 2022 March 31, 2021
Traded Goods 1,038.56 487.29
Total 1,038.56 487.29
204

Note 32.2 - Particulars of Material Consumed (` in lakhs)

March 31, 2022 March 31, 2021
Raw Materials 1,18,057.78 68,917.96
Packing Materials 3,940.34 2,618.05
Total 1,21,998.12 71,536.01
Note 33 Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-progress
(` in lakhs)
March 31, 2022 March 31, 2021
A] Opening stock of inventories
Trading Goods 1,725.38 1,221.92
Total [A] 5,980.32 6,558.69
B] Closing Stock of inventories
Trading Goods 3,393.46 1,725.38
Total [B] 10,228.08 5,980.32
Net Total [A] - [B] (4,247.76) 578.37
Note 34 Employee Benefit Expenses

(` in lakhs)
March 31, 2022 March 31, 2021
Salaries and other benefits to Directors 1,825.00 1,465.00
Salaries, wages & other benefits to others 6,579.05 6,016.10
Contribution to Provident Fund and Other Funds 224.07 220.05
Employee Welfare and other amenities 299.23 255.58
Total 8,927.35 7,956.73
As per Indian Accounting Standard 19 “Employee Benefits” the disclosures as defined are given below:
A] Defined Contribution Plans

The Parent Company makes contributions towards provident fund and other retirement benefits to a defined contribution
retirement benefit plan for qualifying employees. Under the plan, the Parent Company is required to contribute a specified
percentage of payroll cost to the retirement benefit plan to fund the benefit.
Contribution to Defined Contribution Plans, recognised as expense for the year is as under:
(` in lakhs)
March 31, 2022 March 31, 2021
Employer’s Contribution to Pension Scheme 85.25 80.36
Employer’s Contribution to Provident fund 39.95 32.77
Total 125.20 113.13
205
B] Defined Benefits Plans
The Parent Company has used the Projected Unit Credit (PUC) actuarial method to assess the Plan’s liabilities, including those
related to death-in-service benefits. Under the PUC method, a ‘Projected accrued benefit’ is calculated at the beginning of
the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The ‘projected
accrued benefit’ is based on the Plan’s accrual formula and upon the service as at the beginning or end of the year, but
using a member’s final compensation, projected to the age at which the employee is assumed to leave active service. The
Plan Liability is the actuarial present value of the ‘projected accrued benefits’ as at the end of the year for the Plan’s active
members.
(i) Reconciliation of opening and closing balances of the present value of the defined benefit obligation
(` in lakhs)
March 31, 2022 March 31, 2021
Present value of Defined Benefit Obligation at beginning of the Year 1,145.35 1,017.78
Add : Service Cost
Add: Current Interest Cost 72.16 65.14
Add: Benefit Paid (82.01) (23.50)
Add: Remeasurements of Actuarial (Gain) / Loss
(a) From changes in Demographic assumptions
(b) From changes in Financial assumptions (34.92) 8.31
(c) From experience over the past year 20.83 3.17
Effect of Acquisition/ (Divestiture) - -
Changes in Foreign Exchange Rates - -
Present value of Defined Benefit Obligation at the end of the Year 1,201.58 1,145.35
(ii) Reconciliation of opening & closing balances of fair value of plan assets
(` in lakhs)
March 31, 2022 March 31, 2021
Fair Value of Plan Asset at beginning of the Year 1,225.41 873.04
Add: Contributions Paid by Employer 71.42 311.77
Add: Benefits Paid / (Received) (82.01) (23.50)
Add: Interest Income on Plan assets 74.29 62.15
Re-measurements
(b) Return on plan assets excluding amount included in net interest on the net
- 1.95
defined benefit liability/(asset)
(c) Changes in the effect of limiting a net defined benefit asset to the asset
- -
ceiling
Effect of Acquisition/(Divestiture) - -
Changes in foreign exchange rates - -
Fair Value of Plan Asset at the end of the Year 1,289.11 1,225.41
Actual Return on Plan Assets 74.29 64.10
Expected Employer Contributions for the coming year - -
206

(iii) Expenses recognised in Statement of Profit and Loss

(` in lakhs)
March 31, 2022 March 31, 2021
Service Cost
Net Interest on net defined benefit liability/ (asset) (2.13) 2.99
Employer Expenses 78.04 77.44
(iv) Net Liability/(Assets) recognised in the Balance Sheet
(` in lakhs)
March 31, 2022 March 31, 2021
Present Value of Defined Benefit Obligation at end of the Year 1,201.58 1,145.35
Less: Fair Value of Plan Asset at the end of the Year 1,289.11 1,225.41
Liability/ (Asset) recognised in the Balance Sheet (87.53) (80.06)
Funded Status [Surplus/(Deficit)] 87.53 80.06

Of which, Short term Liability
Experience Adjustment on Plan Liabilities: (Gain)/Loss 20.83 3.17
Experience Adjustment on Plan Assets: Gain/(Loss) - -
(v) Percentage Break-down of Total Plan Assets

March 31, 2022 March 31, 2021
Equity instruments 0.00% 0.00%
Debt instruments 0.00% 0.00%
Real estate 0.00% 0.00%
Derivatives 0.00% 0.00%
Investment Funds with Insurance Company 100.00% 100.00%
Of which, Unit Linked 0.00% 0.00%
Of which, Conservative/ Non-Unit Linked 100.00% 100.00%
Asset-backed securities 0.00% 0.00%
Structured debt 0.00% 0.00%
Cash and cash equivalents 0.00% 0.00%
Total 100.00% 100.00%
(vi) Assumptions used to determine the defined benefit obligation

March 31, 2022 March 31, 2021
Salary Growth Rate 5.00 % P.A. 5.00 % P.A.
Discount Rate(p.a.) 6.70% P.A. 6.30% P.A.
Interest Rate on net DBO 6.30% P.A. 6.40% P.A.
Withdrawal Rate 5.00 % P.A. 5.00 % P.A.
IALM (2012-14) IALM (2012-14)
Mortality Table Rate
Ultimate Ultimate
Expected weighted average remaining working life 7 years 7 years
207
(vii) Movement in Other Comprehensive Income
(` in lakhs)
March 31, 2022 March 31, 2021
Balance at start of year (Loss)/ Gain (236.94) (227.41)
Re-measurements on DBO
(a) Actuarial (Loss)/Gain from changes in demographic assumptions - -
(b) Actuarial (Loss)/Gain from changes in financial assumptions 34.92 (8.31)
(c) Actuarial (Loss)/Gain from experience over the past period (20.83) (3.17)
Re-measurements on Plan Assets
(b) Return on Plan assets, excluding amount included in net interest on the
- 1.95
net defined benefit liability/(asset)
(c) Changes in the effect of limiting a net defined benefit asset to the asset ceiling - -
Balance at end of year (Loss)/ Gain (222.85) (236.94)
(viii) Sensitivity Analysis

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

Increase by Decrease by Increase by Decrease by
1% 1% 1% 1%
Salary Growth Rate
decreases by increases by decreases by increases by
Discount Rate
Withdrawal Rate
- -
(increase in expected lifetime by 1 year) ₹ 0.34 lakhs ₹ 0.17 lakhs
- -
(increase in expected lifetime by 3 years) ₹ 0.85 lakhs ₹ 0.52 lakhs
Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
208

(ix) Movement in Surplus / (Deficit)

(` in lakhs)
March 31, 2022 March 31, 2021
Surplus / (Deficit) at start of year 80.06 (144.74)
Add : Net Acquisition Adjustment - -
Transfer In / (Out) on net basis - -
Movement during the year
Less : Current Service Cost (80.17) (74.45)
Less : Past Service Cost - -
Add : Net Interest on net DBO 2.13 (2.99)
Re-measurements [Gains/ (Losses)] 14.09 (9.53)
Add : Employer Contributions/ Benefits paid 71.42 311.77
Surplus/ (Deficit) at end of year 87.53 80.06
(x) Risk Factors
Through its gratuity plans the Parent Company is exposed to a number of risks, the most significant of which are detailed
below:-
Interest Risk
A decrease in the bond Interest rate will increase the plan liability; however, in case of gratuity plan this will be partially offset
by an increase in the return on the plan’s assets.
Longevity Risk
The present value of Gratuity plan liability is calculated by reference to the best estimate of the mortality of plan participants.
An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary Risk
The present value of the Gratuity plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan’s liability.
Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair
value of Instruments backing the liability. In such cases, the present value of the assets is independent of the future discount
rate. This can result in wide fluctuations in the net liability or the funded status, if there are significant changes in the discount
rate during the inter-valuation period.
Note 35 Finance Costs
(` in lakhs)
March 31, 2022 March 31, 2021
Bank Charges and Commission 141.35 90.55
Total 510.91 612.98
Note 36 Depreciation & Amortisation Expenses
(` in lakhs)
March 31, 2022 March 31, 2021
Depreciation on Property, Plant and Equipment 3,960.58 4,628.97
Amortisation on Intangible Assets 29.70 47.94
Total 3,990.28 4,676.91
209
Note 37 Other Expenses
(` in lakhs)
March 31, 2022 March 31, 2021
Advertisement & Publicity Expenses 19.45 6.73
Auditors Remuneration:
(i) Statutory Audit 27.75 26.50
(ii) Taxation Matters 9.50 8.50
(iii) Limited Review 9.75 9.00
(iv) Others 1.00 1.00
Remuneration to Cost Auditor 2.50 3.00
Consumption of Stores and Spares 37.22 36.74
Corporate Social Responsibility Expenses {refer to note no. 37.1} 397.88 398.35
Corporate Environmental Responsibility 14.76 -
Director Sitting fees 22.65 25.20
Electricity Charges 61.27 51.05
Freight and Forwarding charges 9,969.35 2,976.37
Insurance Charges 335.95 249.84
Laboratory Expenses 92.73 87.71
Legal and Professional fees 548.38 406.65
Other Administrative Expenses 288.80 306.83
Postage, Telephone and Telegram 109.38 94.63
Power, Fuel and Water Charges 7,729.98 5,225.44
Printing and Stationery Expenses 35.83 33.01
Product Registration fees 1.14 0.50
Bad Debts 20.31 -
Provision for Doubtful Receivables 25.00 -
Provision for Dimunition in value of Joint Venture 120.73 39.60
Rent, Rates and Taxes 512.06 541.61
Repairs and Maintenance to:
(i) Factory Building 118.16 93.17
(ii) Machinery 878.11 659.73
(iii) Others 312.81 215.98
Sales Promotion Expenses 33.86 14.42
Sales Commission 1,005.68 736.06
Security Charges 260.51 278.66
Seminar & Trade fair Expenses 65.27 19.49
Subscription, Membership, Books & Periodicals 53.86 77.80
Travelling and Conveyance Expenses 228.67 123.15
Vehicle Expenses 108.65 91.24
Total 23,458.95 12,837.96
210

Note 37.1 - Corporate Social Responsibility Expenses:

The Company has spent an amount of ` 235.96 Lakhs pertaining to F.Y. 2021-22 and ` 115.64 Lakhs pertaining
to F.Y. 2020-21, during the year ended March 31, 2022 and ` 242.20 Lakhs during the year ended March 31,
2021 respectively towards various CSR projects for the purpose other than construction/ acquisition of any asset.
The Company has transferred ` 163.92 Lakhs (i.e. unspent amount for the ongoing CSR projects of the
Company for the F.Y. 2021-22) to a separate bank account specially opened by the Company for the CSR.
The Company already have ` 40.50 Lakhs (i.e. unspent amount for the ongoing CSR projects of the Company for the F.Y. 2020-21)
in a separate bank account specially opened by the Company for the CSR.
(` in lakhs)
Details of CSR Expenditure: For the year ended For the year ended
March 31, 2022 March 31, 2021
A) Gross amount required to be spent by the Company during the year 397.88* 398.35
B) Amount spent during the year
(i) Construction/acquisition of any asset NIL NIL
(ii) On purposes other than (i) above 235.96 242.2
C) Details related to spent / unspent obligations:
(i) Amount spent in relation to Ongoing Project 17.00 15.2
(ii) Amount spent in relation to other than Ongoing Project 218.96 227
(iii) Amount transferred to Unspent CSR Account for Ongoing Projects 163.92 156.15
*The Company has received ` 2.00 lakhs on account of GST refund which will be added to the CSR obligation of the Company for
the F.Y. 2021-22 as mentioned in point no. A. Considering the said refund amount, the total CSR obligation of the Company for
the F.Y. 2021-22 was ` 399.88 Lakhs.
Note 38 Reconciliation of Reported Profit to Total Tax Expense
(` in lakhs)
March 31, 2022 March 31, 2021
Profit before Tax 35,152.77 16,214.91
Applicable Income Tax rate 19.33% 24.79%
Expected income tax expense 6,793.58 4,019.34
Tax effect of adjustments to reconcile expected income tax expense to reported
income tax expense:
Effect of Expenses / Provisions not deductible in determining taxable profit 2,416.61 251.30
Other Permanent Differences 103.66 109.97
Reported Income Tax Expense 9,313.85 4,380.61
211
Note 39 Deferred Tax Expenses / (Income)
(` in lakhs)
March 31, 2022 March 31, 2021
Others (16.34) 91.73
Sub Total (A) (16.34) 91.73
Others - -
Sub Total (B) 115.65 293.15
Deferred tax Expenses / (Income) [A-B] (131.99) (201.42)
Note 40 Earnings Per Equity Share

March 31, 2022 March 31, 2021
(a) Computation of Profit (numerator)
Net profit attributable to shareholders (₹ in lakhs) 25,970.91 12,034.13
(b) Weighted average number of shares (denominator) 3,06,59,976 3,06,59,976
Weighted Average number of Equity Shares used as denominator for calculating
3,06,59,976 3,06,59,976
Basic & Diluted EPS
EPS (Basic & Diluted) ( In ₹ ) 84.71 39.25
Note 41 Contingent Liabilities and Commitments
(` in lakhs)
March 31, 2022 March 31, 2021
Contingent Liabilities
Income tax liability that may arise in respect of matters in appeal 574.97 532.17
Indirect tax liability that may arise in respect of matters in appeal 27.16 27.16
Commitments
Estimated contracts remaining to be executed on capital account not provided 1,488.25 2,207.81
Bank Guarantee 758.61 833.20
The Financial Statements of the Group for the year ended March 31, 2022 has been approved by the Board of Directors in its
meeting held on May 27, 2022. For the year ended March 31, 2022, dividend of ₹ 9 per share (Total dividend of ₹ 2,759.40
lakhs) has been proposed by the Board of Directors at its meeting held on May 27, 2022. The same is subject to the approval of
shareholders in the ensuing Annual General Meeting of the Company and therefore proposed dividend has not been recognised
as liability as at the Balance Sheet Date in line with Ind AS - 10 “Events after the Reporting Period.”
It is not practicable for the Group to estimate the timings of the cash outflows, if any, in respect of the above contingent liabilities
pending resolution of the respective proceedings. The Group does not expect any reimbursement in respect of the above
contingent liabilities.
212

Note 42 Related Party Transactions Disclosure:

The Disclosure pertaining to the related parties as required by Indian Accounting Standard 24 issued by Ministry of Corporate
indicated below
(a) List of Related Parties and relationships

Sr. No Name of the Related Party Nature of Relationship
Key Management Personnel (KMP)
1 Prakash Damodar Kamat Chairman
2 Mukesh Maganlal Shah Managing Director
3 Jayen Ramesh Shah Executive Director & CEO
4 Tushar Ramesh Shah Executive Director & CFO
5 Bimal Mukesh Shah Executive Director
6 Thiruvengadam Parthasarathi Non-Executive Independent Director
7 Mahesh Pansukhlal Sarda Non-Executive Independent Director
8 Kaushik Dwarkadas Shah Non-Executive Independent Director
9 Prakash Krishnaji Apte Non-Executive Independent Director
10 Pratima Madhukar Umarji Non-Executive Independent Director
Relative’s of KMP
11 Jyotsna Ramesh Shah
12 Jayshree Mukesh Shah
13 Neeta Jayen Shah
14 Bina Tushar Shah
15 Esha Tushar Shah
16 Rhea Tushar Shah
Relative of KMP
17 Ramesh M. Shah - HUF
18 Prakash D. Kamat - HUF
19 Mukesh M. Shah - HUF
20 Jayen R. Shah - HUF
21 Tushar R. Shah - HUF
22 Manali Vishal Doshi
23 Shaili Nirav Doshi
24 Smoothex Chemicals Private Limited
25 Fine Organics
26 Olefine Organics
27 Oleofine Organics SDN. BHD.
28 Oleofine Organics (Thailand) Co., Ltd. (^^)
29 Fine Organic Industries
Joint Ventures
30 Fine Zeelandia Private Limited
31 FineAdd Ingredients GmbH Joint Venture Entities
32 Fine Organic Industries (Thailand) Co., Ltd. (^)
213
(b) Transactions (in aggregate) with Related Parties during the period and their closing balances at the period end
(` in lakhs)
1 Director's Remuneration
Prakash Damodar Kamat 350.00 288.00 46.00 -
Mukesh Maganlal Shah 350.00 288.00 30.50 -
Jayen Ramesh Shah 350.00 288.00 30.50 -
Tushar Ramesh Shah 350.00 288.00 30.50 -
Bimal Mukesh Shah 350.00 288.00 30.50 -
Thiruvengadam Parthasarathi 15.00 5.00 13.50 4.50
Mahesh Pansukhlal Sarda 15.00 5.00 13.50 4.50
Kaushik Dwarkadas Shah 15.00 5.00 13.50 4.50
Prakash Krishnaji Apte 15.00 5.00 13.50 4.50
Pratima Madhukar Umarji 15.00 5.00 13.50 4.50
2 Director's Sitting Fees
Thiruvengadam Parthasarathi 4.50 5.25 0.14 -
Mahesh Pansukhlal Sarda 4.20 4.80 0.14 -
Kaushik Dwarkadas Shah 4.95 5.25 - -
Prakash Krishnaji Apte 5.25 5.70 - -
Pratima Madhukar Umarji 3.75 4.20 0.14 -
3 Sale of Goods
Oleofine Organics SDN. BHD. 871.57 607.79 61.02 51.06
Oleofine Organics (Thailand) Co., Ltd. (^^) - 86.52 - -
Fine Zeelandia Private Limited 1,642.51 1,296.52 - -
4 Sale of Licence
5 Sale of Components
Oleofine Organics SDN. BHD. - 9.92 - 9.44
6 Purchase of Goods
Oleofine Organics SDN. BHD. - 7.67 - -
7 Purchase of Asset / Investment
Fine Organic Industries 0.12 - - -
Tushar Shah (@) 6.81 - - -
8 Dividend paid
Tushar Ramesh Shah 406.91 110.98 - -
Jayen Ramesh Shah 376.60 102.71 - -
Mukesh Maganlal Shah 194.04 52.92 - -
Neeta Jayen Shah 72.59 19.80 - -
Ramesh M. Shah HUF 33.99 9.27 - -
Jayen R. Shah HUF 33.77 9.21 - -
Mukesh M. Shah HUF 15.46 4.22 - -
Prakash D. Kamat HUF 15.09 4.12 - -
Shaili Nirav Doshi 13.52 3.69 - -
Rhea Tushar Shah 11.73 3.20 - -
Esha Tushar Shah 11.73 3.20 - -
Tushar R. Shah HUF 11.35 3.10 - -
9 Salary to Relatives
Rhea Tushar Shah 0.58 - - -
214

(` in lakhs)
10 Export Commission
Oleofine Organics SDN. BHD. 4.12 7.20 - 1.11
11 Security Deposit - Rent (*)
Olefine Organics - -
2.40 3.00
12 Rent Expenses
Fine Organics 4.50 3.38 - -
Fine Organic Industries 144.42 122.10 - -
Olefine Organics 66.36 53.46 - -
Smoothex Chemicals Private Limited 4.50 3.38 - -
13 Prepaid Rent Balance (*)
Olefine Organics - - 0.60 -
14 Reimbursement of Expenses
Mukesh Maganlal Shah - (1.47) - -
Jayen Ramesh Shah - 0.01 - -
Tushar Ramesh Shah 0.89 - - -
15 Investments in equity instruments ($)
Fine Zeelandia Private Limited - - 3,002.96 3,105.11
FineADD Ingredients GmbH {refer to
- - - -
note no. 7.1}
Fine Organic Industries (Thailand) Co.,
54.00 - 53.27 -
Ltd. (^)
16 Interest Income on Advances / Security
deposit (*)
Fine Organic Industries 1.45 1.44 1.45 1.44
Olefine Organics 0.26 0.32 0.26 0.32
^^ Ceased to become related party wef October 14, 2020.
* Includes Ind AS adjustments
^ Became a joint venture wef May 31, 2021.
$ Closing balance of investment includes share of profit / (loss) from Joint Venture as per Equity Method of consolidation
(@) On March 23, 2022 Fine Organic Industries Limited acquired stake from a minority shareholder in Fine Organics Europe
BV, a subsidary of Fine Organic Industries Limited
Outstanding balances at the year-end are unsecured and interest free and settlement occurs In cash. There have been no
guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2022, the Group
has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2021: Nil). 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 Operating Segment Disclosure

The Group has identified its reportable segment as “Specialty chemicals” since the Chief Operating Decision Maker (CODM)
evaluates the Group’s performance as a single segment in terms of Indian Accounting Standard 108 issued by Ministry of Corporate
indicated below .
215
Note 43.1 - Disclosure for assets outside India

The Group does not have any non current non financial assets outside India
Note 43.2- Disclosure for major customers more than 10%

There are no transactions with single external customer which amounts to 10% or more of the Group’s revenue.
Note 43.3- Geographic information

The geographic information analyses the Group’s revenue and non-current assets by the Group’s country of domicile and other
countries. In presenting the geographical information, segment revenue has been based on the geographic location of customers
and segments assets were based on the geographic location of the respective non-current assets.
The product offerings which are part of the specialty chemicals portfolio of the Group are managed on a worldwide basis from
India.
The Group has disaggregated its revenue from contract with customers and trade receivables on a geographical basis as
under:
(` in lakhs)
Particulars Revenue from contracts with customers
For the year ended For the year ended
March 31, 2022 March 31, 2021
- In India 74,078.70 51,019.24
- Outside India 1,13,522.63 62,298.84
Total Revenue 1,87,601.33 1,13,318.08
(` in lakhs)
March 31, 2022 March 31, 2021
Trade Receivables
- In India 7,766.53 5,159.51
- Outside India 22,470.94 11,139.69
Less : Expected Credit Loss on Trade Receivables (100.87) (136.34)
Total 30,136.59 16,162.86
Note 44 Internal Financial Control System

The Group implements and manages efficient internal control systems to ensure that all assets are safeguarded and
protected against loss from unauthorised use or disposition, by maintaining proper records and reports in a timely
manner. This is supplemented by an extensive programme of internal audit, reviewed by the Management and relevant
policies, guidelines and procedures. The internal control is designed to ensure the reliability of financial and other
records for preparing precise financial statements, maintaining accountability of assets and more. The Management is
committed to regularly reviewing and making relevant amendments to the internal control system, as and when required.
The Group’s process framework provides well-documented standard operating procedures and authorities with adequate built-in
controls. The internal control is further enhanced by an extensive programme of internal, external audits and periodic reviews by
the Management.
The Group adopts and follows a risk mitigation strategy and reviews risk occurrence to find probable mitigation strategies.
The Group’s Risk Management Committee reviews risks and mitigation measures at regular intervals, and accordingly initiates
corrective steps at times of need.
216

Note 45 Disclosure Pursuant to section 186 (4) of The Companies Act, 2013
(a) Investment Made in Joint Venture Companies (At Amortised Cost)
(` in lakhs)
March 31, 2022 March 31, 2021
Fine Zeelandia Private Limited 4,028.43 4,028.43
FineADD Ingredients GmbH {refer to note no. 7.1} - 120.73
Fine Organic Industries (Thailand) Co., Ltd. 54.00 -
Note 46 Operating Lease commitments - Company as lessee

The Group’s significant leasing arrangements are in respect of operating leases for building premises (offices, plant, godowns
etc.). These leasing arrangements are non-cancellable in nature, and are usually renewable by mutual consent on mutually
agreeable terms.
(` in lakhs)
March 31, 2022 March 31, 2021
Lease payment recognised in the statement of profit and loss 43.35 60.12
Minimum lease payments under non cancellable operating leases payable
Not later than 1 year 38.92 39.03
Later than 1 year but not less than 5 years 155.68 156.12
Later than 5 years 3,057.87 3,096.36
Total future minimum lease payment 3,252.47 3,291.51
Note 47 Pursuant to Ind AS 31, Financial Reporting of Interests in Joint Venture, the disclosure
relating to the Joint Venture are as follows :
Interest in other Entities
The Group has invested in following Joint ventures and are consolidated as per equity method of accounting. These entities are
in nature of closely held entities and are not listed on equity public exchange. The following table illustrates the summarised
financial information of the Group’s investment in joint ventures.
Percentage of Ownership
Name of the Joint Venture As at As at
March 31, 2022 March 31, 2021
Fine Zeelandia Private Limited (Incorporated in India) 50% 50%
FineADD Ingredients GmbH (Incorporated in Germany) 50% 50%
Fine Organic Industries (Thailand) Co., Ltd. (Incorporated in Thailand) 45% -
Note 47.1 - Summarised Financial Position of the Group’s Investment in Joint Venture - Fine Zeelandia Private Limited
(` in lakhs)
March 31, 2022 March 31, 2021
Non current assets (A) 4,757.82 2,529.17
Current assets (B) 1,713.53 738.27
Total assets (A+B) 6,471.35 3,267.44
Non current liabilities (A) - -
Current liabilities (B) 401.63 136.12
Total liabilities (A+B) 401.63 136.12
Total equity (net assets) 6,069.72 3,131.32
217
Note 47.2 - Summarised Financial Position of the Group’s Investment in Joint Venture - FineADD Ingredients GmbH
(` in lakhs)
March 31, 2022 March 31, 2021
Non current assets (A) - 31.99
Current assets (B) 36,378.52 248.79
Total assets (A+B) 36,378.52 280.78
Current liabilities (B) 36,378.52 254.49
Total liabilities (A+B) 36,378.52 254.49
Total equity (net assets) - 26.29
Note 47.3 - Summarised Financial Position of the Group’s Investment in Joint Venture - Fine Organic Industries (Thailand)
Co., Ltd.
(` in lakhs)
March 31, 2022 March 31, 2021
Non current assets (A) - -
Current assets (B) 112.92 -
Total assets (A+B) 112.92 -
Current liabilities (B) 0.46 -
Total liabilities (A+B) 0.46 -
Total equity (net assets) 112.46 -
Note 48 Fair Values

Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments
(` in lakhs)
2022 2021 2022 2021
FINANCIAL ASSETS
- - - -
profit & loss
Non Current Financial Assets: Investments Note 7 4.83 4.80 4.83 4.80
Non Current Financial Assets : Investments Note 7 3,056.23 3,105.11 3,056.23 3,105.11
218

(` in lakhs)
2022 2021 2022 2021
Non Current Financial Assets : Loans Note 8 131.59 123.49 131.59 123.49
Non Current Financial Assets : Others Note 9 373.27 255.72 373.27 255.72
Current Financial Assets : Trade Receivables Note 13 30,136.59 16,162.86 30,136.59 16,162.86
Current Financial Assets : Cash and Cash Equivalents Note 14 22,607.80 25,897.28 22,607.80 25,897.28
Current Financial Assets : Bank Balances Note 15 648.03 477.01 648.03 477.01
Current Financial Assets : Others Note 16 24.14 23.96 24.14 23.96
A] Financial liabilities at fair value through statement of - - - -
profit & loss
Non Current Financial Liabilities : Borrowings Note 22 5,852.75 8,917.28 5,852.75 8,917.28
(Including Current Maturity on Long Term Borrowing) & 24
Non Current Financial Liabilities : Others Note 23 86.61 435.30 86.61 435.30
Current Financial Liabilities : Trade Payables Note 25 15,355.43 9,778.13 15,355.43 9,778.13
Current Financial Liabilities : Others Note 26 147.17 251.61 147.17 251.61
In all cases, the Management has assessed that the fair value of all financial assets and liabilities at Amortised Cost approximate
their carrying amounts as stated above.
Note 49 Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.
(` in lakhs)
FINANCIAL ASSETS
A) Financial assets at fair value through statement
- - - - -
of profit & loss
{Refer Note No.
49.3}
Current Financial Assets : Cash and Cash
March 31, 2022 22,607.80 - - 22,607.80
Equivalents
219
(` in lakhs)
- - - - -
statement of profit & loss
B) Financial liabilities at amortised cost:
Non Current Financial Liabilities : Borrowings
(Including Current Maturity on Long Term March 31, 2022 5,852.75 - - 5,852.75
Borrowing)
Non Current Financial Liabilities : Others March 31, 2022 86.61 - - 86.61
(` in lakhs)
FINANCIAL ASSETS
- - - - -
profit & loss
{Refer Note No. 49.3}
Current Financial Assets : Cash and Cash Equivalents March 31, 2021 25,897.28 - - 25,897.28
A] Financial liabilities at fair value through statement
- - - -
of profit & loss
Non Current Financial Liabilities : Borrowings March 31, 2021 8,917.28 - - 8,917.28
(Including Current Maturity on Long Term Borrowing)
Non Current Financial Liabilities : Others March 31, 2021 435.30 - - 435.30
220

Note 49.3 - Measurement of Fair Value : Valuation techniques
The following table shows the valuation techniques used in measuring Level 2 and 3 fair values for assets and liabilities carried at
fair value through OCI and profit or loss
Type Valuation Technique
FINANCIAL ASSETS
A) Financial assets at fair value through
statement of profit & loss Not Applicable
B) Financial assets at fair value through OCI

Non current financial assets: Investments Level - 2: The fair value is determined as on the reporting
date based on value per share derived from net worth
of the Group as per the latest available annual report,
since there is no other publically available market
based information for similar entities.

Non Current Financial Assets : Investments
Level - 3: The fair value is determined as on the

reporting date based on amortised cost method by
Non current financial assets: Loans considering the discount rates based on yields of
Non current financial assets: Others comparable investments or the transaction values
Current financial assets : Trade receivables where these are short term in nature.
Current financial assets : Cash and cash
equivalents
Current financial assets : Bank balances
Current financial assets : Others
statement of profit & loss Not Applicable
B) Financial liabilities at amortised cost:

Non current financial liabilities : Borrowings
(including current maturity of long term
borrowing)
Level - 3: The fair value is determined as on the
Non Current Financial Liabilities : Others reporting date based amortised cost method.
Current financial liabilities : Trade payables
Current financial liabilities : Others
221
Note 50 Capital Management

For the purposes of the Group’s capital Management, capital includes issued equity share capital, all other reserves and borrowed
capital less reported cash and cash equivalents.
The primary objective of the Group’s capital Management is to maintain an efficient capital structure to reduce the cost of capital,
support the corporate strategy and to maximise shareholder’s value.
The Group’s policy is to borrow primarily through banks to maintain sufficient liquidity. The Group also maintains certain undrawn
committed credit facilities to provide additional liquidity. These borrowings, together with cash generated from operations are
utilised for operations of the Group.
The Group monitors capital on the basis of cost of capital. The Group is not subject to any externally imposed capital
requirements.
The following table summaries the capital of the Group:
(` in lakhs)
March 31, 2022 March 31, 2021
Long Term Borrowing (including current maturities of long term borrowings) 5,852.75 8,917.28
Less: Cash and cash equivalents (#) 23,592.12 26,593.89
TOTAL BORROWING (NET) (17,739.37) (17,676.61)
Equity Share Capital 1,533.00 1,533.00
Other Equity 94,387.19 71,605.67
TOTAL EQUITY 95,920.19 73,138.67
Gearing ratio (Net Debt/ Total Equity) (0.18) (0.24)
No changes were made to the objectives, policies or processes for managing capital during the years ended March 31, 2022 and
March 31, 2021.
(#) Including Bank balances referred in Note No .15
Note 51 Financial Risk Management Framework

A) Financial Risk Management
The Group’s activities primarily expose it to various risks such as Market Risks, Credit Risk and Liquidity Risk. Those are
explained below :
1) Market Risk
Market Risks arise due to Changes in Interest rates, Foreign Exchange rates and changes in Market prices.
(i) Interest Rate Risks
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market rates. The Group’s exposure to the risk of changes in market rates relates primarily to the Group’s
long-term debt obligations with floating interest rates.
The Group’s policy is generally to undertake long-term borrowings using facilities that carry floating-interest rate. The
Group manages its interest rate risk by entering into interest rate swaps, in which it agrees to exchange, at specified
intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon
notional principal amount.
Moreover, the short-term borrowings of the Group do not have a significant fair value or cash flow interest rate risk due
to their short tenure.
As the Group does not have exposure to any floating-interest bearing assets its interest income and related cash inflows
are not materially affected by changes in market interest rates.
222

As at the end of reporting period, the Group had following long term variable interest rate borrowings and derivatives to
hedge the interest rate risk are as follows:
(` in lakhs)
March 31, 2022 March 31, 2021
Notional value of liability 5,852.75 8,917.28
Less: Interest Rate Swap on above Liability 5,852.75 8,917.28
Net exposure - -
Disclosure of Effects of Interest Rate Swaps Hedge accounting on Financial Position as at March 31, 2022
(` in lakhs)
Particulars Nominal value of Carrying amount of Maturity date Hedge ratio
liability hedging instrument
Interest Rate Risk
- Interest Rate Swaps 5,852.75 86.61 December 2023 1:1
Disclosure for gain / (loss) recognised in cashflow hedging reserve and recycled during the year
For 2021-22 (` in lakhs)
Balance recognised Net amount Net amount added to Total amount Balance
to P & L non financial assets recycled
Forex - Interest Rate Swaps 435.30 - - 348.69 348.69 86.61
For 2020-21 (` in lakhs)

Balance recognised Net amount Net amount added to Total amount Balance
to P & L non financial assets recycled
Forex - Interest Rate Swaps 755.86 - 320.56 320.56 435.30
Interest rate sensitivity
No sensitivity analysis is prepared as the Group does not expect any material effect on the Group’s results arising from the effects
of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the reporting period.
(ii) Foreign Currency Risks
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign
exchange rates. The Parent Company enters into forward exchange contracts to hedge its foreign currency exposures in USD
and Euro.
a) Exposure in foreign currency - Hedged
The Parent Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the
underlying transactions and firm commitments. The Group does not enter into any Derivative Instruments for trading and
Speculation purposes.
The Forward Exchange Contracts used for hedging foreign exchange currency exposure and outstanding as at reporting date
as at under:
223
(Amount in lakhs)
No. of Amount Indian No. of Amount Indian
Contracts in Foreign Rupee Contracts in Foreign Rupee
Currency Equivalent Currency Equivalent
Forward Contract to Sell 122 $ 197.25 14,953.52 29 $28.50 2,094.75
Forward Contract to Purchase 21 $ 61.62 4,671.15 - - -
Forward Contract to Sell 51 € 64.25 5,439.41 36 € 25.00 2,152.50
b) The unhedged exposures as at the end of the reporting date as as follows

(Amount in lakhs)
Indian Foreign Indian Foreign
Rupees Currency Rupees Currency
Financial Assets
Trade Receivables - - 6,507.89 $88.54
Trade Payables - - 591.24 $8.34
Trade Payables 5.63 € 0.07 4.64 € 0.05
Long term Borrowings 5,852.75 $77.21 8,917.28 $121.32
Net Exposure (5,852.75) ($77.21) (3,000.62) ($41.12)
Net Exposure (5.63) (€ 0.07) (4.64) (€ 0.05)
In case of change in the currencies by 1%, the change in the profit would be as under :
(Amount in lakhs)
Change USD $ EURO € Change USD $ EURO €
1% Depreciation in ₹ 1% (58.53) (0.06) 1% (30.01) (0.05)
1% Appreciation in ₹ 1% 58.53 0.06 1% 30.01 0.05
(iii) Market Price Risks
The Group is affected by the price stability of certain commodities. Purchases of Raw Materials from our top 2 suppliers
constitute approximately 39.09% of our total purchases made from all suppliers. We do not enter into supplier contracts
for duration of period of more than 3-6 months. If suppliers do not supply us, there can be no assurance that we will
be able to identify alternative suppliers in future at similar cost. Any disruption in the supply of the raw materials could
disrupt our manufacturing operations, which could have a material adverse effect on our business, results of operations
and financial condition.
The Group’s total imports of raw materials is approximately 31.00% (P.Y.: 26.29%) of the total raw material consumed.
The cost of our imported raw material affected by the fluctuation in the rate of foreign exchange of the currency in which
we purchase these raw materials primarily in USD and the Rupee.The Group has a risk Management framework aimed
at prudently managing the price risk arising from the volatility in commodity prices and freight costs and tries to pass on
increases in the costs to its customers to whatever extent possible.
2) Credit Risk
Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group.
It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares and Balances with
Banks.
The Group holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit
risk.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence
on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits (generally between 30
to 90 days) and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the
224

normal course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year ended
March 31, 2022 is 0.18% (P.Y. 0.57%) of the total trade receivables. The Group uses Expected Credit Loss (ECL) Model to
assess the impairment loss or gain.
3) Liquidity Risk
The Group manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by
continuously monitoring forecasts and actual cash flows.
The Group has obtained fund and non-fund based borrowings from banks. The Group invests its surplus funds in bank fixed
deposit which carry low credit risks.
All payments are made on due dates and requests for early payments are entertained after due approval and availing early
payment discounts.
The Group has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are
planned.
Maturity to Financial Liabilities:
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include contractual interest payments.
(` in lakhs)
Particulars Outstanding Less than 1 1-3 years 3-5 years More than 5
Balance as year years
on March 31,
2022
Long term Borrowings (including Current
5852.75 3344.43 2508.32 - -
maturity on Long Term Borrowings)
Trade Payable 15,355.43 15,355.43 - - -
Securities Deposits taken 145.58 145.58 - - -
Dividend Payable 1.59 1.59 - - -
Statutory Dues Payable 642.93 642.93 - - -
Contractual Liabilites 792.13 792.13 - - -
Other Liabilities 160.06 160.06
Provision 3,030.75 3,030.75 - - -
Income Tax Payable 1,647.11 1,647.11 - - -
Note 52 Additional information, as required under Schedule III to the Companies Act, 2013 for
Company preparing consolidated financial statements:
For March 31, 2022
Net Assets i.e Total Assets Share in other Comprehensive Share In Total Comprehensive
Share in Profit or Loss
(minus) Total Liabilities Income Income
Sr. No Name of the entity As % of As % of
As % of As % of
Consolidated Other Consolidated Other
consolidated Amount consolidated Amount Amount Amount
Comprehnsive comprehensive
net assets profit or loss
Income Income
A Parent
A.1 Fine Organic Industries 99.93 95,849.60 96.52 25,066.93 100.00 271.50 96.56 25,338.43
Limited
B Subsidiaries- Foreign
B.1 Fine Organics (USA) Inc 1.17 1,126.66 4.81 1,248.40 - - 4.76 1,248.40
B.2 Fine Organics Europe 2.55 2,441.94 7.29 1,892.69 - - 7.21 1,892.69
BV
225
Net Assets i.e Total Assets Share in other Comprehensive Share In Total Comprehensive
Share in Profit or Loss
(minus) Total Liabilities Income Income
Sr. No Name of the entity As % of As % of
As % of As % of
Consolidated Other Consolidated Other
consolidated Amount consolidated Amount Amount Amount
Comprehnsive comprehensive
net assets profit or loss
Income Income
C Joint Ventures
(Investment as per
equity method)
C.1 Fine Zeelandia Private (1.07) (1,025.47) (0.39) (102.15) - - (0.39) (102.15)
Limited
C.2 Fine Organic Industries 0.00 (0.73) 0.00 (0.73) - - 0.00 (0.73)
(Thailand) Co., Ltd.
D Ajustments arising out (2.58) (2,471.81) (8.22) (2,134.23) - - (8.13) (2,134.23)
of consolidation
Total 100.00 95,920.19 100.00 25,970.91 100.00 271.50 100.00 26,242.41
For March 31, 2021
A Parent
1 Fine Organic Industries 101.02 73,883.77 95.50 11,493.18 100.00 232.90 95.59 11,726.08
Limited
B Subsidiaries- Foreign
1 Fine Organics (USA) Inc (0.03) (23.72) 0.13 16.17 - - 0.13 16.17
2 Fine Organics Europe 0.95 697.94 2.83 340.12 - - 2.77 340.12
BV
Minority Interest on all 0.01 6.91 - - - - - -
Subsidiaries
C Joint Ventures
(Investment as per
equity method)
Fine Zeelandia Private (1.26) (923.32) (1.08) (130.45) - - (1.06) (130.45)
Limited
FineADD Ingredients (0.17) (120.73) - - - - - -
GmbH
D Ajustments arising out (0.52) (382.18) 2.62 315.11 - - 2.57 315.11
of consolidation
Total 100.00 73,138.67 100.00 12,034.13 100.00 232.90 100.00 12,267.03
Note 53 Other Statutory Information

(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for
holding any Benami property.
(ii) The Group does not have any transactions with the companies struck off during the year.
(iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Group have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Group have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
Group (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Group have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group shall:
226

Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Group have not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.
227
Notes
We manufacture
specialty green
additives
for diverse
applications:

Fine House, Anandji Street, Off M.G. Road,
Ghatkopar East, Mumbai - 400 077, Maharashtra, India
Tel: +91 (22) 2102 5000 | Fax: +91 (22) 2102 8899
Website: www.fineorganics.com

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Annual Report

Fine Organic Industries Limited

A Visionary. A Humanitarian. A Legend.

We live by his values.

Humankind is becoming more

• To expand a state-of-the-art infrastructure for

To demonstrate pride, passion and professionalism

450+ 180+ 800+ Customer First

Products Distributors Direct Customers To anticipate and fulfil customer needs

750+ 75+ 5,000+ To convert unconventional ideas into action with

CMD’s Message Dear Shareholders,

Growing consumer base Sustainability is of high concern

Rising world’s population is a major As the climate crisis looms and

Industry Key Additives & End-Use Growth Drivers

Emulsifiers Bakery, confectionary, Increasing consumption

At Fine Organics, our value-creation strategy exists in an environment

POLYMER ADDITIVES COSPHA ADDITIVES

Industry Key Additives & End-Use Growth Drivers

Feed Nutrition ADDITIVES

Additives for Coatings Anti-fungal additives Increased demand for safer

Dispersing agents Specialty Papers Increasing usage in automotive

financial capital Intellectual Capital Social Capital

Supply Chain Sales and Marketing

Manufacturing Capital Human Capital Natural Capital

Financial Capital pat margin

Sound financial performance is one of the important ingredients for a sustainable

Return on Net Worth Debt : Equity

(` in lakhs) 1,85,843 (` in lakhs) 34,852

EBITDA Margin PAT

Economies Consistent High-level of

Manufacturing Capital forms a vital part of value-creation.

Certifications Our disciplined culture prioritises Waste

Our Existing Plants

In-house design systems

Zero-Liquid Discharge Fully Automated

Dombivli | Badlapur | Ambernath | Patalganga

Explore further expansion Increase initiatives towards adopting

Natural and Renewable

Our consistent investments towards strengthening our R&D capabilities,

Our New Products .... Sustainable by Design

Minimised capital expenditures &

Sustainable ADDITIVES for BIOPOLYMERS

Potential susceptibilities of the Our additives can help a lot by providing

New product developments

Improving process technology

Exploring newer application areas

Human Capital Key initiatives

ALLOWING us to gain competitive advantage. Their skillsets and dedication

Stakeholders Engagement Modes Values delivered

Stakeholders Engagement Modes Values-delivered Contributing consistently towards Society

We engage with local authorities to Meetings, reports Contribution to economy through

health initiative Women Empowerment

o Shifted from using furnace oil to natural gas to reduce CO2

Meet the Board

Audit Committee Company Secretary and

Management Discussion & Analysis

Indian Economy Outlook

financial-7841371.html) 9.43% 9.20%

market-share-in-5-years.html) Global Oleochemicals Market by Segment 2020 (% share)

To, (ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)