Asahi Songwon Colors Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

b) Terms/rights attached to Equity shares

The Company has issued only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

Description of nature and purpose of each reserves:

General Reserve: General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. General Reserve is a free reserve available to the Company. As per Companies Act 2013, transfer of profits to general reserve is not mandatory.

Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

Capital Redemption Reserve: In accordance with Section 69 of the companies Act. 2013, the Company has created capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve.

Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Equity instruments through other comprehensive income: This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

Other Comprehensive Income: Other Comprehensive Income includes re-measurement loss on defined benefit plans, net of taxes that will not be reclassified to profit and loss.

I.a Indian Rupee term loan from banks are secured by: i Primary security:

HDFC Bank Ltd. term loan: Exclusive charge on fixed assets purchased out of the term loan of HDFC Bank Ltd.

I.b Interest on term loan ranges from floating rate of Interest 7.5% to 8.50% p.a. linked to various benchmarks like T-Bill, MCLR etc.

I.c Term of repayment.

i Term Loan from HDFC Bank Ltd. '' 559.33 Lakhs (Previous year '' 838.99 Lakhs), Repayable in 24 equal monthly Instalments of '' 23.30 Lakhs will end on April-2027.

iI Term Loan from HDFC Bank Ltd. '' 797.13 Lakhs (Previous year '' 1,398.05 lakhs), Repayable in 21 equal monthly Instalments of '' 37.78 Lakhs will end on January-2027.

iii There was no default in repayment of loan or interest.

The working capital limits from bank are secured by:

i. Primary security:

First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.

ii. Collateral security:

First charge in favour of State Bank of India on the entire Fixed Assets of the Company (Excluding vehicles purchased) of which includes:

- Equitable mortgage and/or hypothecation charge on entire fixed assets (Land, building, plant and machinery) both present and future of the Company situated at Survey No. 437 to 440 ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.

- Lien of TDR worth of '' 25 Lakhs.

iii. Interest on working capital loan ranges from 7.40% to 9.50% p.a. linked to various benchmarks like T-Bill, MCLR etc.

The Code on Social Security, 2020 (''Code'') relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

47. CAPITAL MANAGEMENT

For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interestbearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31, 2025 the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024.

48. DIVIDEND

The Board of Directors has recommended final dividend for the financial year 2024-25 on Equity Share Capital 15% ('' 1.50 Per Equity of face value of '' 10/- each) subject to approval of the shareholders in the ensuing Annual General Meeting (AGM).

49. FINANCIAL RISK MANAGEMENT -OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the

Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

49.1 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the Company.

The Company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the Company''s customers have been transacting with the Company for over four years, and none of these customers'' balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.

Cash and cash equivalents

The Company holds cash and cash equivalents of '' 361.76 Lakhs at March 31, 2025 (March 31, 2024: '' 34.97 Lakhs/-). The cash and cash equivalents are held with bank and cash on hand.

49.2 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the

Company''s reputation. The Company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

49.3 Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

49.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

49.5 Foreign Currency Risk

The Company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and functional currency. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated are US dollars.

The Company Forex risk management policy is to hedge currency exchange fluctuation and mitigate currency volatility and risks and to avoid uncertainties in cash flows. All foreign currency exposures - financial assets and liabilities and firm commitments (imports) & probable forecast transactions (exports) which are off-balance sheet exposures are covered under Forex risk management policy.

Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The Company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.

Price Risk

Investment Price Risk

The Company''s exposure to price risk arises from investments in equity and mutual fund held by the Company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the Company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the Company''s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Commodity Price Risk

Principal Raw Materials for Company''s products are Phthalic Anhydride and Cuprous Chloride. Company sources its raw material requirements from domestic markets as well as from International Markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

50. FINANCIAL INTRUMENTS- FAIR VALUES & RISK MANAGEMENT

Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and

subsequently re-measured at fair value as described below:

1 The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2 Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4 The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The Company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1: Th is includes financial instruments measured using quoted prices. The fair value of all equity instruments that are traded on the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity-specific estimates. The mutual fund units are valued using the closing net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

51. OFFSETTING FINANCIAL ASSETS AND LIABILITIES

The Company has not offset any financial asset and financial liability. It offsets a financial asset and a financial liability when it currently has a legal enforceable right to set-off the recognised amounts and it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

a) Master netting arrangements - not currently enforceable

Under the terms of these arrangements, only where certain credit events occur (such as default), the net position owing/ receivable to a single counterparty in the same currency will be taken as owing and all the relevant arrangements are considered as terminated. As the Company does not presently have a legally enforceable right of set-off, these amounts have not been offset in the Standalone Balance Sheet.

b) Collateral against borrowings

The Company has hypothecated/mortgaged assets as collateral against a number of its sanctioned line of credit (Refer Note 20)for further information on assets hypothecated | mortgaged as security). In case of default as per borrowing arrangement, such collateral can be adjusted against the amounts due.

Note: Reason for Differences

- The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends. Similarly, goods in transit for goods which have not reached respective Company locations are not considered however, considered as purchases as per accounting principles. This has lead to offsetting differences between Inventory, trade receivables and trade payable balances.

- The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustmentforgoodsintransit(inwardandoutward)isnot considered for the purpose of filing returns with banks.

53. EXCEPTIONAL ITEMS

Exceptional Item in FY 2023-24 include sale of leasehold land located at Saykha Industrial Estate, Village Saykha, Tal. Vagra, Dist. Bharuch for a total consideration of '' 4,657.21 Lakhs resulting into a gain of '' 2,561.03 Lakhs (net of transaction cost and incidental costs). Tax expense on the exceptional item amounting to '' 294 Lakhs is included in current tax expense.

54. EVENTS AFTER THE REPORTING DATE

There was no significant event after the end of the reporting period, which require any adjustment or disclosure in the Standalone Financial Statements.

55 . The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

56. The Company do not have any transactions with companies struck off.

57. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

58. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

59. The Company do 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.

60. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

61 . 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

62. AUTHORISATION FOR ISSUE OF THE STANDALONE FINANCIAL STATEMENTS

The Standalone Financial Statements are approved for by Audit Committee and the Board of Directors at their respective meeting conducted on May 08, 2025.

The figures of the previous period have been regrouped/ reclassified, wherever necessary, so as to be in conformity with the figures of the current period''s classification/ disclosure.

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Mar 31, 2024

(n) Provisions, contingent liabilities and contingent assets (Ind AS 37)

Disputed liabilities and claims against the Company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, Excise, GST etc.) pending in appeal/court for which no reliable estimate can be made and or involves uncertainty of the outcome of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts. However, present obligation as a result of past event with possibility of outflow of resources, when reliable estimation can be made of the amount of obligation, is recognized in accounts in terms of discounted value, if the time value of money is material using a current pre-tax rate that reflects the risk specific to the liability. No contingent asset is recognized but disclosed by way of notes to accounts.

(o) Post employment and other employee benefits (Ind AS 19)

a) Employee benefits

All employee benefits payable wholly within twelve months of rendering services are classified as short-term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., are recognized during the period in which the employee renders related services and are measured at undiscounted amount expected to be paid when the liabilities are settled.

(b) Post-employment obligations

The Company operates the following postemployment schemes:

i) Defined benefit plans such as gratuity and;

ii) Defined contribution plans such as provident fund.

i) Defined benefit plans-Gratuity obligations

The liability or assets recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets.

The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. I The present value of the defined benefit obligation

denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The benefits which are denominated in currency other than INR, the cash flows are discounted using market yields determined by reference to high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

ii) Defined contribution plans

The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.

(p) Financial instruments (Ind AS 109)

i) Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii) Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at:

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI. (designated as FVOCI -equity investment). This election is made on an investment-by-investment basis.

Investments in subsidiary companies, associate companies and joint venture Company:

Investments in subsidiary Company is carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiary Company the difference between net disposal proceeds and the carrying amounts are recognised in the Standalone Statement of Profit and Loss.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

De-recognition Financial assets

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(q) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments such as forwards to mitigate the risk of changes in exchange rates. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Statement of Profit and Loss, except for the effective portion

of cash flow hedge which is recognised in Other Comprehensive Income and later to the Statement of Profit and Loss, when the hedged item affects profit or loss. Hedges that meet the criteria for hedge accounting are accounted for as follows:

Fair value hedge: The Company designates derivative contracts or non-derivative financial assets/liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in exchange rates. Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to the Statement of Profit and Loss over the period of maturity.

Cash flow hedge: The Company designates derivative contracts or non-derivative financial assets/liabilities as hedging instruments to mitigate the risk of movement exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in the cash flow hedging reserve being part of Other Comprehensive Income. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold/terminated or exercised, the cumulative gain or loss on the hedging instrument recognised in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognised in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

(r) Cash flows and cash and cash equivalents (Ind AS 7)

Statement of cash flows is prepared in accordance with the indirect method prescribed in the Ind AS 7. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to

an insignificant risk of changes in value, and book overdrafts. However, Book overdrafts are shown within borrowings in current liabilities in the balance sheet for the purpose of presentation.

(s) Cash dividend to equity holders of the Company

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

(t) Earnings per share (Ind AS 33)

i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company;

• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• The after ''income-tax'' effect of interest and other financing costs associated with dilutive potential equity shares; and

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(u) Segment reporting (Ind AS 108)

Based on “Management Approach” as defined in Ind AS 108 - Operating Segments, the Management evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators by business segments.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

(v) Fair value measurement (Ind AS 113)

The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(w) Events occurring after the balance sheet date (Ind AS 10)

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared after the reporting period but before the issue of financial statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements.

(x) Research and Development

Expenditure on research is recognized as an expense when it is incurred. Expenditure on development which does not meet the criteria for recognition as an intangible asset is recognized as an expense when it is incurred.

Items of property, plant and equipment and acquired intangible assets utilized for research and development are capitalized and depreciated/ amortized in accordance with the policies stated for Property, Plant and Equipment and Intangible Assets.

(y) Goods and Service tax/Service tax input credit

Goods and Service tax/Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing/utilising the credits.

(z) Trade receivables

Trade receivables are recognised when the right to consideration becomes unconditional. These assets are held at amortised cost, using the effective interest rate (EIR) method where applicable, less provision for impairment based on expected credit loss. Trade receivable overdue for more than 180 days are considered as receivable with significant increase in credit risk.

(aa) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially at their fair value and subsequently measured at amortised cost using the EIR method.

(bb) Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

48. DIVIDEND

The Board of Directors has recommended final dividend for the financial year 2023-24 on Equity Share Capital 5% ('' 0.50 Per Equity of face value of '' 10/- each) subject to approval of the shareholders in the ensuing Annual General Meeting (AGM)

49. FINANCIAL RISK MANAGEMENT-OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of Directors of the Company are overall responsible for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

49.1 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The Company has established a credit policy under which each new customer is

analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the Company.

The Company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the Company''s customers have been transacting with the Company for over four years, and none of these customers'' balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.

Cash and cash equivalents

The Company holds cash and cash equivalents of '' 34.97 Lakhs at March 31, 2024 (March 31, 2023: '' 44.98 Lakhs/-). The cash and cash equivalents are held with bank and cash on hand.

49.2 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

49.3 Market Risk

Market risk is the risk that changes in market prices -such as foreign exchange rates and interest rates -will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

49.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

49.5 Foreign Currency Risk

The Company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and functional currency. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated are US dollars.

The Company Forex risk management policy is to hedge currency exchange fluctuation and mitigate currency volatility and risks and to avoid uncertainties

in cash flows. All foreign currency exposures -financial assets and liabilities and firm commitments (imports) & probable forecast transactions (exports) which are off-balance sheet exposures are covered under Forex risk management policy.

Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The Company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.

Commodity Price Risk

Principal Raw Materials for Company''s products are Phthalic Anhydride and Cuprous Chloride. Company sources its raw material requirements from domestic markets as well as from International Markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

50. FINANCIAL INTRUMENTS- FAIR VALUES & RISK MANAGEMENT

Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The Company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1: This includes financial instruments measured using quoted prices. The fair value of all equity instruments that are traded on the stock exchanges is valued using the closing price as at the reporting period..

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity-specific estimates. The mutual fund units are valued using the closing net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Reason for Differences

- The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends. Similarly, goods in transit for goods which have not reached respective Company locations are not considered however, considered as purchases as per accounting principles. This has lead to offsetting differences between Inventory, trade receivables and trade payable balances.

- The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.

54. BUY-BACK OF SHARES

In accordance with the provisions contained in the SEBI (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013 and rules made thereunder, the board of directors in its meeting held on May 19, 2022 had approved a proposal of buyback of 2,40,000 Equity Shares ( representing 2% of the total paid-up equity share capital of the Company) at a price of '' 400/- per Equity Share, which opened on June 22, 2022 and closed on July 05, 2022 and settlement date for the Buyback offer was July 15, 2022. Accordingly, the Company has bought back and extinguished a total of 2,40,000 Equity Shares at an buyback price of '' 400/-per Equity Shares. The buyback resulted in a cash outflow of '' 960 Lacs (excluding transaction costs).

Pursuant to the buy-back, the Company has adjusted premium per share and expenses on buy-back of aggregating '' 557.13 Lacs from securities premium and '' 378.87 Lacs from General Reserve. Further, an amount of 24.00 Lacs (equivalent to the face value of shares) has been transferred to capital redemption reserve and debited to general reserve.

55. EXCEPTIONAL ITEMS

Exceptional Item include sale of leasehold land located at Saykha Industrial Estate, Village Saykha, Tal. Vagra, Dist. Bharuch for a total consideration of '' 4,657.21 Lakhs resulting into a gain of '' 2,561.03 Lakhs (net of transaction cost and incidental costs). Tax expense on the exceptional item amounting to '' 294 Lakhs is included in current tax expense.

56. EVENTS AFTER THE REPORTING DATE

There was no significant event after the end of the reporting period, which require any adjustment or disclosure in the Standalone Financial Statements.

57. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

58. The Company do not have any transactions with companies struck off.

59. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

60. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

61. The Company do not have any 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.

62. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

63. 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.

64. AUTHORISATION FOR ISSUE OF THE STANDALONE FINANCIAL STATEMENTS

The Standalone Financial Statements are approved for by Audit Committee and the Board of Directors at their respective meeting conducted on May 28, 2024.

The figures of the previous period have been regrouped/reclassified, wherever necessary, so as to be in conformity with the figures of the current period''s classification/disclosure.

As per our report of even date attached

For, Talati and Talati LLP For and on behalf of the Board of Directors of

Chartered Accountants Asahi Songwon Colors Limited

ICAI Firm Registration No. 110758W/W100377 CIN: L24222GJ1990PLC014789

Alok Jhawar Paru M. Jaykrishna

Chief Financial Officer Chairperson & Mg. Director

(DIN: 00671721)

Kushal U. Talati Saji V. Joseph Gokul M. Jaykrishna

Partner Company Secretary Jt. Managing Director & CEO

Membership No. 188150 Membership No. F 9596 (DIN: 00671652)

Place: Ahmedabad Place: Ahmedabad

Date: 28^th May, 2024 Date: 28^th May, 2024

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Mar 31, 2023

Terms/rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of K 10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

Shares held by holding/ultimate holding Company/or their subsidiaries/associates: Not Applicable

Description of nature and purpose of each reserves:

General Reserve: General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. General Reserve is a free reserve available to the Company. As per Companies Act 2013, transfer of profits to general reserve is not mandatory.

Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

Capital Redemption Reserve: In accordance with Section 69 of the companies Act. 2013, the Company has created capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve.

Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Equity instruments through other comprehensive income - This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

Other Comprehensive Income: Other Comprehensive Income includes re-measurement loss on defined benefit plans, net of taxes that will not be reclassified to profit and loss.

I. a Indian Rupee Term loan from Banks are secured by:

i Primary Security:

Federal Bank Ltd. Term Loan: Exclusive charge on Fixed Assets purchased out of the term loan of Federal Bank Ltd.

HDFC Bank Ltd. Term Loan: Exclusive charge on Fixed Assets purchased out of the term loan of HDFC Bank Ltd.

I. b Interest on Term Loan ranges from floating rate of Interest 7.50% to 8.40% p.a. linked to various benchmarks like T-Bill, MCLR etc.I. c Term of Repayment.

i Term Loan from Federal Bank Ltd. K 250 lakhs (Previous year K 750 lakhs), Repayable in 6 equal Instalments of K 125 lakhs will end on July-2023

ii Term Loan from HDFC Bank Ltd. ? 1,118.65 lakhs (Previous year K 1,258.49 lakhs), Repayable in 54 equal monthly Instalments of K 23.30 lakhs will end on April-2027

iii Term Loan from HDFC Bank Ltd. K 1,851.47 lakhs (Previous year K Nil), Repayable in 54 equal monthly Instalments of K 37.78 lakhs will end on April-2027

iv There was no default in repayment of loan or interest.

The working capital limits from bank are secured by:

i Primary Security:

First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.

ii Collateral Security:

First charge in favour of State Bank of India on the entire Fixed Assets of the Company (Excluding Vehicles Purchased) of which includes:

- Equitable mortgage and/or hypothecation charge on entire Fixed Assets (Land, Building, Plant and Machinery) both present and future of the Company situated at Survey No. 437 to 440 ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.

- Lien of TDR worth of K 25 lakhs.

iii Interest on Working Capital Loan ranges from 7.50 % to 8.20% p.a. linked to various benchmarks like T-Bill, MCLR etc.

The Code on Social Security, 2020 (''Code'') relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

44. SEGMENT REPORTING

The Company operates in a single segment and in line with Ind AS - 108 - "Operating Segments”, the operation of the Company fall under Chemical Business which is considered to be the only reportable business segment.

47. CAPITAL MANAGEMENT

For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31, 2023 the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

48. DIVIDEND

The Board of Directors has recommended final dividend for the financial year 2022-23 on Equity Share Capital 5% (^ 0.50 Per Equity of face value of ^ 10/- each) subject to approval of the shareholders in the ensuing Annual General Meeting (AGM)

49. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

49.1 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the Company.

The Company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the Company''s customers have been transacting with the Company for over four years,

and none of these customers'' balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.

Cash and cash equivalents

The Company holds cash and cash equivalents of K 44.98 lakhs at March 31, 2023 (March 31, 2022: K 26.59 lakhs). The cash and cash equivalents are held with bank and cash on hand.

49.2 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company uses process costing to cost its products, which assists it in

monitoring cash flow requirements and optimizing its cash return on investments.

49.3 Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

49.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

49.5 Foreign Currency Risk

The Company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and functional currency. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated are US dollars.

The Company Forex risk management policy is to hedge currency exchange fluctuation and mitigate currency volatility and risks and to avoid uncertainties in cash flows. All foreign

currency exposures - financial assets and liabilities and firm commitments (imports) & probable forecast transactions (exports) which are off-balance sheet exposures are covered under Forex risk management policy.

Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The Company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.

Price Risk

Investment Price Risk

The Company''s exposure to price risk arises from investments in equity and mutual fund held by the Company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the Company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the Company''s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Commodity Price Risk

Principal Raw Materials for Company''s products are Phthalic Anhydride and Cuprous Chloride. Company sources its raw material requirements from domestic markets as well as from International Markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

50. FINANCIAL INSTRUMENTS - FAIR VALUES & RISK MANAGEMENT I. Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially Recognised and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The Company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1: This includes financial instruments measured using quoted prices. The fair value of all equity instruments

that are traded on the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity-specific estimates. The mutual fund units are valued using the closing net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

51. OFFSETTING FINANCIAL ASSETS AND LIABILITIES

The Company has not offset any financial asset and financial liability. It offsets a financial asset and a financial liability when it currently has a legal enforceable right to set-off the recognised amounts and it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

a) Master netting arrangements - not currently enforceable

Under the terms of these arrangements, only where certain credit events occur (such as default), the net position owing/

receivable to a single counterparty in the same currency will be taken as owing and all the relevant arrangements are considered as terminated. As the Company does not presently have a legally enforceable right of set-off, these amounts have not been offset in the Standalone Balance Sheet.

b) Collateral against borrowings

The Company has hypothecated/mortgaged assets as collateral against a number of its sanctioned line of credit (Refer Note 20) for further information on assets hypothecated | mortgaged as security). In case of default as per borrowing arrangement, such collateral can be adjusted against the amounts due.

54. BUY-BACK OF SHARES

In accordance with the provisions contained in the SEBI (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013 and rules made thereunder, the board of directors in its meeting held on May 19, 2022 had approved a proposal of buyback of 2,40,000 Equity Shares (representing 2% of the total paid-up equity share capital of the Company) at a price of ^ 400/- per Equity Share, which opened on June 22, 2022 and closed on July 05, 2022 and settlement date for the Buyback offer was July 15, 2022. Accordingly, the Company has bought back and extinguished a total of 2,40,000 Equity Shares at an buyback price of ^ 400/- per Equity Shares. The buyback resulted in a cash outflow of ^ 960 lakhs (excluding transaction costs)

Pursuant to the buy-back, the Company has adjusted premium per share and expenses on buy-back of aggregating ^ 557.13 lakhs from securities premium and ^ 378.87 lakhs from General Reserve. Further, an amount of 24.00 lakhs (equivalent to the face value of shares) has been transferred to capital redemption reserve and debited to general reserve.

55. EVENTS AFTER THE REPORTING PERIOD

There was no significant event after the end of the reporting period, which require any adjustment or disclosure in the Standalone Financial Statements.

56. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

57. The Company do not have any transactions with companies struck off.

58 . The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

59. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

60. The Company 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.

61 . The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or

entities identified in any manner whatsoever by or on

behalf of the Funding Party (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

62. 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.

63. AUTHORISATION FOR ISSUE OF THE STANDALONE FINANCIAL STATEMENTS

The Standalone Financial Statements are approved for by Audit Committee and the Board of Directors at their respective meeting conducted on May 29, 2023.

The figures of the previous period have been regrouped/reclassified, wherever necessary, so as to be in conformity with the figures of the current period''s classification/disclosure.

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Mar 31, 2018

1. company information

Asahi Songwon Colors Limited (the ‘Company’) is a public limited Company domiciled in India with its registered office at “Asahi House”, 13, Aarayans Corporate Park, Thaltej - Shilaj Road, Nr. Shilaj Railway Crossing, Thaltej, Ahmedabad - 380 059. The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.

The Company is principally engaged in the business ofmanufacturing & export of color pigments and its derivatives.

The financial statements as at March 31, 2018 present the financial position of the Company.

The financial statements for the year ended March 31, 2018 were approved by the Board of Directors and authorized for issue on May 29, 2018.

a. Terms / rights attached to Equity shares

The Company has issued only one class of equity shares having a par value of RS.10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

i. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

2. Aggregate number and class of shares allotted as fully paid by way of Bonus Shares : NIL

3. Aggregate number and class of shares bought back : NIL

4. Securities which are convertible into Equity Shares : NIL

5. Aggregate Value of Calls unpaid by directors and officiers : NIL

6. Shares reserved for issued under options & contracts or commitments for the sale of shares or disinvestment, including terms of amounts: NIL

Description of nature and purpose of each reserve :

General Reserve: General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. General Reserve is a free reserve available to the company.

securities premium Reserve: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Equity instruments through other comprehensive income: This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

Other Comprehensive Income: Other Comprehensive Income includes re-measurement loss on defined benefit plans, net of taxes that will not be reclassified to profit and loss.

I.a Indian Rupee Term loan from Banks(Other than Vehicle Loans) are secured by:

i primery security:

State Bank of India Term Loan: First charge in favour of State Bank of India By way of Equitable Mortgage and Hypothecation on entire Fixed Assets ( Land, Building, Plant & Machinery) both present and future of the company situated at Survey No. 437 to 440, ECP Cchannel Road, Padra, Vadodara. ( Previous year old survey no. 429-432, ECP Channel Road, Padra, Vadodara)

State Bank of India Corporate Term Loan: First charge in favour of State Bank of India By way of Hypothecation and Equitable Mortgage of Plant and Machinery / Fixed Assets created out of Corpotate Loan.

Federal Bank Ltd. Term Loan: Exclusive charge on Fixed Assets purchased out of the term loan of Federal Bank Ltd.

ii Collateral security:

State Bank of India Term Loan and Corporate Term Loan: Second charge in favour of State Bank of India, on all chargable current assets of the Company, both present and future.

I.b Vehicle loans are secured by hypothecation of concerned vehicles.

I.c Term of Repayment.

i Corporate Term loan from State Bank of India amounting to H Nil (Previous Year RS.350.00 Lakh) Repayable in and 7 quarterly installments of RS.50.00 Lakh

ii Term Loan from Federal Bank Ltd. RS.2,500.00 Lakh senctioned and disbursed as at 31-03-2018 RS.2,135.59 Lakhs ( Previous year Nil), Repayable in 20 equal Instalments of RS.125.00 Lakhs starting from October 22, 2018

iii Vehicle loans are repayable in equal monthly installment over the terms of 36 installments Previous Year H Nil

iv There was no default in repayment of loan or interest.

The working capital limits from bank are secured by:

i Primery security:

First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.

ii Collateral security:

First charge in favour of State Bank of India on the entire Fixed Assets of the Company (excluding vehicles purchased) of which includes:

- Equitable mortgage and / or hypothecation charge on entire Fixed Assets ( Land, Building, Plant and Machinery) both present and future of the Company situated at Survey No. 437 to 440 ( Previous Year Block No. 429 to 432 ) ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.

- First Charge by way of Hypothecation of Wind Mill with all it’s accessories purchased out of Bank Finance located at 308 / P Moti Sindholi, Kutch, Gujarat.

- Lien of TDR worth of RS.25.00 Lakhs.

There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at March 31, 2018. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

2 EARNING PER sHARE_

Basic and diluted earnings per share

Earning Per share is calculated by dividing the Profit / (Loss) attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year. The numbers used in calculating basic and diluted earning per Equity Share as stated below:

3 segment reporting

The Company operates in a single segment and in line with Ind AS - 108 - “Operating Segments” the operation of the Company fall under Chemical Business which is considered to be the only reportable business segment.

4 RELATED pARTY Disclosures AND THEIR RELATIVEs

Related Party Disclosures as required by Accounting Standard Ind AS 24 issued by Institute of Chartered Accountants of India are given below:

1 RELATED pARTIEs AND NATuRE OF RELATIONsHip

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:

AksharChem (India) Ltd Skyjet Aviation Pvt Ltd

Skyways

Akshar Silica Pvt. Ltd Gokul M. Jaykrishna HUF Hunter Wealth Management LLP

b) Key Management Personnel:

Mrs. Paru M. Jaykrishna Chairperson & Mg. Director

Mr. Gokul M. Jaykrishna Jt. Managing Director & CEO Mr. Chandravadan R. Raval General Manager (Accounts) & CFO Mr. Saji V Joseph Company Secretary

c) Relative of Key Managerial Personnel Mr. Mrugesh Jaykrishna

5 disclosure ON CORpORATE sOCIAL responsibility ( CsR ) activities u/s 135 OF THE COMpANIEs ACT, 2013 is As UNDER:

a. Gross amount required to be spent by the Company during the year: RS.81.16 Lakhs ( Previous year RS.136.43 Lakhs )

b. Amount spent and utilized during the year on:

6 CApiTAL MANAGEMENT

For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31, 2018, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

7 DIVIDEND

Proposed Dividend

The Board of Directors at its meeting held on May 29, 2018 have recommended a payment of final dividend of RS.3.00 per equity shares of face value of RS.10/- each for the financial year ended March 31, 2018. The same amounts to RS.443.85 Lakhs including dividend distribution tax of RS.75.68 Lakhs The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

8 FINANCIAL Risk MANAGEMENT - OBJECTIVEs AND policies

The Company’s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company’s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

The Company’s audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the company’s customers have been transacting with the company for over four years, and none of these customers’ balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.

Cash and cash equivalents

The company holds cash and cash equivalents of RS.60.76 Lakhs at March 31, 2018 (March 31, 2017: RS.74.38 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation. The company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company’s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

The company is not exposed to significant interest rate risk as at the specified reporting date.

Currency Risk

The company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and functional currency. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated are US dollars.

The Company Forex risk management policy is to hedge currency exchange fluctuation and mitigate currency volatility and risks and to avoid uncertainties in cash flows. All foreign currency exposures - financial assets and liabilities and firm commitments (imports) & probable forecast transactions (exports) which are off-balance sheet exposures are covered under Forex risk management policy.

Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.

price Risk

Investment Price Risk

The company’s exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the company’s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Commodity price Risk

Principal Raw Materials for company’s products are Phthalic Anhydride and Cuprous Chloride. Company sources its raw material requirements from domestic markets as well as from International Markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

Sensitivity Analysis

The table below summarises the impact of increase/decrease in prices of Phthalic Anhydride and Cuprous Chloride RS.1 per kg on profit for the period.

9 FINANCIAL INsTRUMENTs - FAIR VALUEs & Risk MANAGEMENT Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1 The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2 Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4 The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique: Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

10 FIRsT TIME ADOpTION OF IND As

The Company has prepared financial statements for the year ended March 31, 2018 are the first financial statements prepared by the company in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the company prepared its financial statements in accordance with accounting standards notified notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of he Companies (Accounts) Rules, 2014 (Previous GAAP).

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

Exemptions on first time adoption of Ind-AS availed in accordance with Ind-AS 101, have been described below:

Exemptions availed on first time adoption of Ind-As 101:

Ind-AS 101 allows certain optional exemptions and mandatory exemptions on first time adoption of Ind-AS from the retrospective application of certain provisions of Ind-AS. The Company has accordingly applied the following exemptions:

A. Ind As optional exemptions:

Deemed Cost for Property, Plant and Equipment and Intangible Assets

Ind-AS 101 permits, a first time adopter to elect to continue with the carrying values for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind-AS 38 and Investment properties covered by Ind-AS 40. Accordingly, the Company has elected to measure all of its Property, Plant and Equipment, Investment Properties and Intangible Assets at their previous GAAP carrying value.

B. Ind As mandatory exceptions:

Estimates

An entity’s estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is an objective evidence that those estimates were in error. Ind-AS estimates at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Classification and measurement of financial assets

Ind-AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.

11 The figures of the previous period have been regrouped / reclassified, wherever necessary, so as to be in conformity with the figures of the current period’s classification / disclosure.

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Mar 31, 2016

I.a Indian Rupee Term loan from Banks(Other than Vehicle Loans) are secured by:

i Primery Security:

State Bank of India Term Loan: First charge in favour of State Bank of India By way of Hypothecation of Fixed Assets acquired for the up gradation of Plants at Plot No. 429-432, ECP Channel Road, Padra, Vadodara ( admeasuring 9751 Sq Mtrs each except Block No. 432 admeasuring 9632 Sq Mtrs, aggregating to 38885 Sq Mtrs.)

State Bank of India Corporate Term Loan: First charge in favour of State Bank of India By way of Hypothecation and Equitable Mortgage of Plant and Machinery / Fixed Assets created out of Corporate Loan.

ii Collateral Security:

State Bank of India Term Loan and Corporate Term Loan: Second charge in favour of State Bank of India, on all chargeable current assets of the Company, both present and future.

I. b Vehicle loans are secured by hypothecation of concerned vehicles.

I.c Term of Repayment.

i Rupee Term loan from State Bank of India amounting to Rs.7,506,029/- (Previous Year Rs. 63,164,430/-) Repayable in one quarterly Installment only.

ii Corporate Term loan from State Bank of India amounting to Rs.58,077,415/- (Previous Year Rs.28,990,229/-) Repayable in 7 quarterly Installments of Rs. 2,500,000/- and 7 quarterly installments of Rs. 5,000,000/- and balance installment for Rs. 5,577,415/- ( Previous year Corporate Term loan sanctioned for Rs. 60,000,000/- was not fully disbursed as on March 31, 2015 )

iii Vehicle loans are repayable in equal monthly installment over the terms of 16 installments

iv There was no default in repayment of loan or interest.

The working capital limits from bank are secured by:

i Primary Security:

First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.

ii Collateral Security:

First charge in favour of State Bank of India on the entire Fixed Assets of the Company ( Excluding Vehicles Purchased) of which included:

- Equitable mortgage and / or hypothecation charge on entire Fixed Assets ( Land, Building, Plant and Machinery) both present and future of the Company situated at Block No. 429 to 432 ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.

- Hypothecation of Wind Mill with all its accessories purchased out of Bank Finance located at 308 / P Moti Sindholi, Kutch, Gujarat.

- Lien of TDR worth of Rs. 0.25 Crore.

1. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

2. DISCLOSURE ON CORPORATE SOCIAL RESPONSIBILITY ( CSR ) ACTIVITIES U/S 135 OF THE COMPANIES ACT, 2013 IS AS UNDER:

a. Gross amount required to be spent by the Company during the year: Rs. 91.92 Lacs (Previous year Rs. 31.64 Lacs)

b. Amount spent and utilized during the year on:

3. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

4. SCHEME OF ARRANGEMENT

Pursuant to the Scheme of Arrangement ("the Scheme") under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("ACIL"), Asahi Songwon Colors Limited ("the Company") and their respective shareholders and creditors as approved by the Hon''ble High Court of Gujarat vide its certified order dated November 29, 2014, which became effective from December 2, 2014 on filing with Registrar of Companies, Gujarat and accordingly all assets and liabilities of the CPC Green Division (i.e. business and interests in manufacture of CPC Green Division) of the Company has been transferred to and vested in AksharChem (India) Limited at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2014). Accordingly the same has been reflected in the previous year''s figures.

5. The figures of the previous period have been regrouped / reclassified, wherever necessary, so as to be in conformity with the figures of the current period''s classification / disclosure.

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Mar 31, 2015

1. SuNDRY DEBTORS, SuNDRY CREDITORS AND LOANS AND ADVANCES

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

2. EMPLOYEES BENEFITS

In compliance with the Accounting Standard on "Employee Benefits" (AS 15) (Revised 2005) notified by Companies (Accounting Standards) Rules, 2006, the following disclosures have been made:

3. SEGMENT REPORTING

The Company has only one identified reportable business segment namely "Pigments" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

4. RELATED PARTY DISCLOSuRES

Related Party Disclosures as required by Accounting Standard 18 issued by Institute of Chartered Accountants of India are given below:

1 Related Parties and Nature of Relationship

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence: AksharChem (India) Ltd

Skyjet Aviation Pvt Ltd

Skyways

Asahi Energy Pvt Ltd

Asahi Powertech Pvt Ltd

Flyover Communication Pvt Ltd

Akshar Silica Pvt. Ltd

b) Key Management Personnel: Mrs. Paru M. Jaykrishna

Mr. Gokul M. Jaykrishna Mr. Munjal M. Jaykrishna Mr. Saji V Joseph Mr. Chandravadan R. Raval

c) Relative of Key Managerial Personnel Mr. Mrugesh Jaykrishna

5. ACCOuNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

6. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

7. The figures of the previous period have been regrouped / reclassified, wherever necessary, so as to be in conformity with the figures of the current period's classification / disclosure.

8. SCHEME OF ARRANGEMENT

1 Pursuant to the Scheme of Arrangement ("the Scheme") under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("ACIL"), Asahi Songwon Colors Limited ("the Company") and their respective shareholders and creditors as approved by the Hon'ble High Court of Gujarat vide its certified order dated November 29, 2014, which became effective from December 2, 2014 on filing with Registrar of Companies, Gujarat and accordingly all assets and liabilities of the CPC Green Division (i.e. business and interests in manufacture of CPC Green Division) of the Company has been transferred to and vested in AksharChem (India) Limited at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2014). Accordingly, these financial statements do not include the financial statements of the said CPC Green Division of the Company for the period from 01.04.2014 to 31.03.2015.

2 The whole of the assets and liabilities of the Green Division of the Company became the assets and liabilities of AksharChem (India) Ltd., and were transferred at their book values as appearing in the books of the Company with effect from the appointed date (i.e. 01-04- 2014) pursuant to the scheme of arrangement. The details of the assets and liabilities transferred to AksharChem (India) Ltd. are as under:

3 Upon the scheme being effective the Authorised Share Capital of the Company amounting to Rs35,000,000/- has been transferred to AksharChem (India) Limited and accordingly the Authorised Share Capital of the Company automatically stands reduced to the said extent as on the effective date without any further act or deed.

4 The transaction pertaining to the CPC Green Division of the Company from the appointed date up to the effective date of the Scheme of Arrangement has been deemed to be made by AksharChem (India) Limited.

5 The employees of the demerged undertaking have been transferred to AksharChem (India) Limited on their existing terms of employment with the Company.

6 All contingent liabilities relating to demerged undertaking has been transfer to AksharChem (India) Limited on the appointed date.

7 All loans, advances and other facilities sanctioned to the Company in relation to the CPC Green Division sanctioned by State Bank of India prior to the Appointed Date, which are partly drawn or utilized is transferred to AksharChem (India) Limited. Further, such loans, advance and other facilities utilized either partly or fully by the Company from the appointed date till the effective date of the CPC Green Division (within the overall limits sanctioned by State Bank of India) is on the effective date treated as loans, advances and other facilities made available by AksharChem (India) Limited without any further act or deed on the part of the Resulting Company.

8 Pursuant to the sanctioned scheme of arrangement, AksharChem (India) Limited (the resulting Company) without any further application or deed, issued and allotted 23,60,050 equity shares of Rs10/- each at par to the equity shareholders of the Company in the ratio of 5 (five) fully paid up Equity Shares of Rs10/- each of AksharChem (India) Limited (Resulting Company) has been issued and allotted for every 26 (twenty six) fully paid up Equity Shares of Rs10/- each held in the Company (Demerged Company) on the record date February 3, 2015.

9. DEPRECIATION

In accordance with the provisions of the Companies Act, 2013 effective from April 1, 2014. The Company has revised depreciation rate on fixed assets as per the useful life specified in part "C" of schedule II of the Act. As a result of this change, the depreciation charged during the year ended March, 2015 is higher by Rs31.23 Lacs.

10. Extra Ordinary Items shown in Profit and Loss Rs Nil (Previous year Rs13,521,305/- represents unrealised export licenses written off, Rs10,077,181/- unrealised claims written off and Rs855,676/- excess depreciation written back).

11. The Prior Period Adjustments for Rs3,855,000/- pertains to the recovery of excess payment made as remuneration to Managing Directors of the Company during the Financial Year 2013-2014. (Previous year Rs Nil).

12. The figures stated in the previous year are inclusive of figures of CPC Green Division of the Company which have been demerged with effect from the appointed date of the scheme (i.e. April 01, 2014) the accounting effect of which has been given and as such current year figures are not comparable with those of previous year figures.

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Mar 31, 2014

NOTE 1 CONTINGENT LIABILITIES AND COMMITMENTS

(Amount in H) March 31, 2014 March 31, 2013

1 Letter of Credit and Bank Guarantees issued by bankers and outstanding at the end 115,963,265 54,544,162 of the year

2 Estimated amount of Contracts / purchase orders remaining to be executed and not 50,205,798 60,751,814 provided for Capital goods / Capital work in progress

3 Bills discounted against Letter of Credit but not realized and credited to the parties 3,360,140 - accounts

4 In respect of Income Tax 8,715,081 8,715,081

Name of Statute : Income Tax Act, 1961 Nature of the dues : Income tax (A.Y. 2001-02 to 2011-12)

Forum where dispute is pending : Commissioner of Income Tax (Appeal) /ITAT

NOTE 2 SEGMENT REPORTING

The Company has only one identified reportable business segment namely "Pigments" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notifed by Companies (Accounting Standards) Rules, 2006.

NOTE 3

The extraordinary item shown in Statement of profit and loss represents unrealized export incentives written off for H13,521,305 (Previous year Nil), Unrealised claims written off for H10,077,181 (Previous year Nil) and excess depreciation written back for H855,676 (Previous year Nil).

NOTE 4 RELATED PARTY DISCLOSURES

Pursuant to the Accounting Standard on "Related Party Disclosure" (AS 18) notifed by Companies (Accounting Standards) Rules, 2006, the following persons are considered as related persons for the year ended on March 31, 2014.

1 Related Parties and Nature of Relationship

a) The Parties over which significant infuence is exercised :

Names Relationship

Aksharchem (India) Ltd One or more directors are director

Skyjet Aviation Pvt Ltd One or more directors are director

Skyways One or more directors are trustee

Asahi Energy Pvt Ltd One or more directors are director

Asahi Powertech Pvt Ltd One or more directors are director

Flyover Communication Pvt Ltd One or more directors are director

Akshar Silica Pvt. Ltd One or more directors are director

b) Key Management Personnel and their Relatives:

Names Relationship

Mrs. Paru M. Jaykrishna Chairperson and Managing Director

Mr. Gokul M. Jaykrishna Joint Managing Director

Mr. Munjal M. Jaykrishna Joint Managing Director

Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing Director

and Father of Joint Managing Directors

NOTE 5 ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

NOTE 6 IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

NOTE 7

Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2013

NOTE 1 SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

NOTE 2 SEGMENT REPORTING

The Company has only one identified reportable business segment namely "Pigments" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

NOTE 3 ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

NOTE 4 IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

NOTE 5

Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2012

A. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

2. Aggregate number and class of shares allotted as fully paid by way of Bonus Shares : In the Financial year 2006-07 38,42,420 Equity Shares of Rs. 10/- each were allotted as fully paid up Equity Shares by way of Bonus Shares at the ratio of 1:1 by capitalization of General Reserve.

3. Aggregate number and class of shares bought back: NIL

a. Secured loans are covered by:

1. Term Loans from State Bank of India are secured by Equitable Mortgage of Land and Buildings and a first charge by way of hypothecation of the whole of the movable properties of the company including its movable plant & machinery, stores, tools & accessories, present & future and other movables save & except book debts & current assets and further secured by personal guarantee of Joint Managing Directors of the Company.

Rupee Term loan of Rs. 74,754,584/- outstanding in the previous year was repaid for Rs. 15,000,000/- and balance amount was converted into Foreign Currency Term Loan for US$ 1,160,000/- and repaid US$ 334,000/- balance for US$ 826,000/- shown as foreign currency loan see - 2 below:

2. Foreign Currency Term Loan US$ 826,000 @ exchange rate of Rs.50.87 Per. US$ = Rs.42,018,620 (Previous year Nil)

3. Vehicle loans are secured by hypothecation of vehicles purchased.

b. Repayment terms of outstanding long term borrrowings as on March 31, 2012

1. There was no default in repayment of loan or interest.

2. Repayment terms of secured term loan in Indian Rupee Borrowings

Amount payable within 12 Months Rs. 30,000,000/- (Previous year Rs. 30,000,000/-). Current year term loan outstanding is repayable by balance 11 quarterly installments of Rs. 7,500,000/- and last 12th installment for balance amount. Previous year Term loan is converted into Foreign Currency Term loan. See - 3. below.

3. Repayment terms of secured term loan in Foreign Currency (US$) Borrowings

Amount payable within 12 Months US$ 668,000/- = Rs. 33,981,160/- (Previous year US$ Nil = Rs. Nil). This term loan is repayable by 4 quarterly installments of US$ 167,000/- and last 5th quarterly Installment of US$ 158,000/-.

4. Repayment terms of Vehicle Loan

Vehicle loans are repayable in equal monthly instatement over the terms of loan ranging from 3 to 5 years.

* Secured loans are secured by hypothecation of raw materials, finished goods, stock in process and book debts, other current assets of the Company and personal guarantee of Joint Managing Directors of the Company.

Note: 1

The Revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the Company effective from April 1, 2011 for the presentation made in the financial statements. The adoption of the revised Schedule VI requirements has significantly modified the presentation and disclosures which have been complied with in these financial statements. Previous year figures have been reclassified in accordance with current year requirements. Note: 2. CONTINGENT LIABILITIES (Amount in Rupees)

Particulars March 31, 2012 March 31, 2011

1 Letter of Credit and Bank Guarantees issued by bankers and outstanding at the end of the year 72,510,202 42,341,546

2 Estimated Value of Contracts / purchase orders pending for Capital goods /

Capital work in progress 28,886,241 86,182,503

3 In respect of Income Tax 14,379,708 9,959,364

Name of Statute: Income Tax Act, 1961

Nature of the dues: Income tax (A.Y. 2001-02 to 2011-12)

Forum where dispute is pending : Commissioner of Income Tax (Appeal) /ITAT / High-Court Note: 32. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

Note: 3. EMPLOYEES BENEFITS

In compliance with the Accounting Standard on "Employee Benefits" (AS 15) (Revised 2005) notified by Companies (Accounting Standards) Rules, 2006, the following disclosures have been made:

Note: 4. SEGMENT REPORTING

The Company has only one identified reportable business segment namely “Pigments" and does not fall under secondary segment for the purpose of Accounting Standard on “Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

Note: 5. RELATED PARTY DISCLOSURES

Pursuant to the Accounting Standard on “Related Party Disclosure" (AS 18) notified by Companies (Accounting Standards) Rules, 2006, the following persons are considered as related persons for the year ended on March 31, 2012.

Note: 6. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

Note: 7. IMPAIRMENT OF ASSETS

There are no indications which reflects that any of the assets of the Company has got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on "Impairment of Assets" (AS 28) notified by the Companies (Accounting Standards) Rules, 2006.

Note: 8.

Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2011

1. Contingent Liabilities

As at As at

31/03/2011 31/03/2010

Rs. Rs.

1. Letter of Credit and Bank Guarantees issued by 42,341,546 — bankers and outstanding as on 31.03.2011

2. Bills discounted against LC Pending Realization — 2,593,001

3. Estimated Value of Contracts / purchase orders pending 86,182,503 18,134,719 for Capital goods / Capital work in progress

4. Contingent Liabilities not provided for :

Claims against the Company not acknowledge as debts:

Name of the Nature of Amount Forum where statute Dues in Rs. Dispute is Pending

Income Tax Act Income Tax 9,959,364/- Commissioner of Income Tax (A.Y. 2000-01 to 2008-09) (10,240,196/-) (Appeals) / ITAT / High Court

2. Sundry Debtors, Sundry Creditors and Loans and Advances

a. The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

b. There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2011. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

D. The Ministry of Corporate Affairs, Government of India vides its General Notification No. S.O. 301(E) dated 8th February 2011 issued under section 211 (3) of the companies Act, 1956 has exempted certain classes of companies from disclosing certain information in their profit & loss account. The company being an "Export Oriented Company" is entitled to the exemption. Accordingly, disclosures mandated by paragraphs 3(i) (a),3(ii) (a), 3(ii) (b) and 3(ii) (d) of part II, Schedule VI to the Companies Act, 1956 have not been provided.

f) The company to hedge it's exports business, books forward contracts. As on 31st March, 2011, outstanding forward contracts amounts to equivalents of Rs. 3,225.76 Lacs.

7. Employees Benefits

The disclosures required under accounting standard 15 "Employees Benefits" notified in the Companies (Accounting Standards) rules, 2006 is given below:

1. Defined Contribution Plan:

The Company has recognized the following amount as an expense and included in the Schedule 16 – "Payments to and Provisions for Employee".

2. Defined Benefit Plan

The present value of gratuity and leave encashment obligations is determined based on actuarial valuation using the Projected Unit Credit Method as recommended under Accounting Standard – 15.

8. Segment Reporting

The Company has only one segment namely "Pigments" and does not fall under secondary segment. In view of this, details of segment information is not required to be given as per AS-17 Segment Reporting issued by the Institute of Chartered Accountants of India.

9. Related Party Disclosures

1. Related Parties and Nature of Relationship

a) The Parties over which significant influence is exercised :

Names Relationship

Aksharchem (India) Ltd One or more directors are director

Skyjet Aviation Pvt Ltd One or more directors are director

Skyways One or more directors are trustee

Asahi Energy Pvt Ltd One or more directors are director

Asahi Powertech Pvt Ltd One or more directors are director

Flyover Communication Pvt Ltd One or more directors are director

Akshar Silica Pvt. Ltd One or more directors are director

b) Key Management Personal and their Relatives:

Names Relationship

Mrs. Paru M. Jaykrishna Chairperson and Managing Director

Mr. Gokul M. Jaykrishna Joint Managing Director

Mr. Munjal M. Jaykrishna Joint Managing Director

Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing

Director and Father of Joint Managing Directors.

11. Accounting for Tax on Income

i) Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

12. Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

13. Amounts represented in lacs have been rounded off to the nearest two decimals points.

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Mar 31, 2010

1. Contingent Liabilities

As at As at 31/03/2010 31/03/2009 Rs. Rs. 1. Letter of Credit and Sank Guarantees issued by NIL NIL bankers and outstanding as on 31.03.2010 2. Bills discounted against LC credited to debtors account. 2,593,001 Nil 3. Estimated Value of Contracts / purchase orders pending for 18,134,719 2,473,250 Capital goods / Capital work in progress

4. Contingent Liabilities not provided for:

Claims against the Company not acknowledge as debts:

2. Sundry Debtors, Sundry Creditors and Loans and Advances

a. The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary co_urse of business at least equal to the amount at which they are stated.

b. There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2010. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the bases of the information available with the company.

3. Managerial Remuneration

Managerial remuneration under Section 198 of the Companies Act, 1956 paid or payable during the financial year to the Directors and Computation of Net Profit in accordance with Section 198(1) and Section 349 of the Companies Act, 1956 are as under:

4. Segment Reporting

The Company has only one segment namely "Pigments" and does not fatl under secondary segment. In view of this, details of segment information is not required to be given as per AS-17 Segment Reporting issued by the Institute of Chartered Accountants of India.

5. Accounting for Tax on Income

i) Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depredation under the Income Tax Act 1961.

ii) The Deferred tax liability comprises of Tax effect of Timing difference on account of :

6. Previous years figures have been regrouped / reclassified, wherever necessary to mate them comparable with the figures of the current year financial statements.

7. Amounts represented in lacs have been rounded off to the nearest two decimals points.