Krishana Phoschem Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

N. Provision and contingent liabilities

The Company sets up a provision when there is a
present legal or constructive obligation as a result of
a past event and it will probably require an outflow
of resources to settle the obligation and a reliable
estimate can be made. If the effect of the time value
of money is material, provisions are determined by
discounting the expected future cash flows at a pre¬
tax rate that reflects current market assessments of
the time value of money and the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as
a finance cost.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at reporting date, taking into
account the risks and uncertainties surrounding
the obligation.

A disclosure for a contingent liability is made where
there is a possible obligation that arises from past
events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or
more uncertain future events not within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle the
obligation or where reliable estimate of the obligation
cannot be made. Contingent liabilities are disclosed
on the basis of judgment of the management/
independent experts. These are reviewed at each
balance sheet date and are adjusted to reflect the
current management estimate.

O. Revenue recognition:

Revenue from contracts with customer is recognized
when the Company satisfies a performance obligation
by transferring the promised goods or services to a
customer at a transaction price. The transaction price
is the amount of consideration to which the company
expects to be entitled in exchange for transferring
promised goods or services to a customer as per
contract, excluding amount of taxes collected on

behalf of the government. The transaction price is
adjusted of trade discount, cash discount, volume
rebate and other variable considerations as per the
terms of contract.

Revenues in excess of invoicing are classified as
contract assets (which may also refer as unbilled
revenue) while invoicing in excess of revenues are
classified as contract liabilities (which may also refer
to as unearned revenues). The Company presents
revenues net of indirect taxes in its Statement of
Profit and loss.

a) Sale of Goods

Revenue from sale of products is recognised
at a point in time when the control on the
goods have been transferred to a customer

i.e. when material is delivered to the customer
or as per shipping terms, as may be specified
in the contract.

b) Government Subsidy of Fertilizer Sale

Subsidy has been recognized by the company
on the basis of the notification received from
the ministry of Chemicals and fertilizers
from time to time.

c) Other Operating revenue

i. Interest income is accrued on a time
proportion basis, by reference to the
principal outstanding and the applicable
interest rates.

ii. Claim lodged with insurance companies is
recognized as income on acceptance by
the insurance Companies.

P. Government Grant & Government Assistance

Government grants are not recognised until there is
reasonable assurance that the Company will comply
with the conditions attaching to them and that the
grants will be received.

Government grant if relates to an expense item are
recognised in the statement of profit and loss on
a systematic basis over the periods in which the
Company recognise as expenses the related costs
for which the grants are intended to compensate.

When the grant relates to an asset, it is recognised as
income in equal amounts over the expected useful life
of the related asset.

Q. Segment Accounting

The Managing Directors monitor the operating
results of the business Segments separately for
the purpose of making decisions about resource
allocation and performance assessment. Segment
performance is evaluated based on profit or loss and
is measured consistently with profit or loss in the
financial statements.

The Operating segments have been identified on the
basis of the nature of products.

a) Segment revenue includes sales and other
income directly identifiable with/ allocable
to the Segment.

b) Expenses that are directly identifiable with
/ allocable to segments are considered for
determining the segment result.

c) Expenses which relate to the Company as
a whole and not allocable to segments are
included under unallocable expenditure.

d) Income which relates to the Company as a
whole and not allocable to segments is included
in unallowable income.

e) Segment result represent the profit before
interest and tax earned by each segment without
allocation of central administrative costs.

f) Segment assets and liabilities include those
directly identifiable with the respective segments.
Unallocable assets and liabilities represent the
assets and liabilities that relate to the Company
as a whole and not allocable to any segment.

Based on the management approach as defined in Ind
AS 108 - Operating Segments, the Managing Director
and Chief Financial officer of the company evaluates
the company’s performance and allocates resources
based on an analysis of various performance
indicators of business segment/s in which the
company operates. The Company is primarily

engaged in the business of Fertilizer manufacturing
and other products are backward integration
therefore management recognise Fertilizer segment
as the sole business segment. Hence, disclosure
of segment-wise information is not required and
accordingly not provided.

R. Earnings per share

Basic earnings per equity share is computed by dividing
the net profit or loss attributable to equity shareholders
of the Company by the weighted average number of
equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by
dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted
average number of equity shares considered for

deriving basic earnings per equity share and also
the weighted average number of equity shares that
could have been issued upon conversion of all dilutive
potential equity shares.

S. Statement of Cash Flow

Cash flows are reported using the indirect method
prescribed in Ind AS 7 ‘Statement of Cash Flows’,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated. The Company considers all
highly liquid investments that are readily convertible
to known amounts of cash to be cash equivalents.

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company’s entire current assets
including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit
along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge
over property, plant & equipment (present & future) of the company.

ii) The bank loan for working capital is guaranteed by personal guarantee of Praveen Ostwal (Managing Director), Mahendra
Kumar Ostwal, Pankaj Ostwal and corporate guarantee of Kanchi Resorts Pvt Ltd and Ostwal Phoschem India Limited.

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables and lease liabilities.
The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its
operations. The Company’s principal financial assets include cash and cash equivalents, trade and other receivables, loans etc.
that derive directly from its operations.\

II. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

III. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the processes to ensure that executive management controls
risk through the mechanism of property defined 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 by the board annually to reflect changes in market conditions and the Company’s activities. The Company, through
its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in
which all employees understand their roles and obligations.

The Company’s Audit Committee oversees 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 ad hoc reviews of risk management
controls and procedures, the results of which are reported to the Audit Committee.

a) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk for trade receivables and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made
against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or
minimise the credit risk.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed
in financial statements. The Company evaluates the concentration of risk with respect to trade receivables as low, as its
customers are located in several jurisdictions and operate in largely diversified markets. Further, the Company’s exposure
to credit risk is influenced by the individual characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which
customers operate.

The Company Management 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. The Company’s
review includes market check, industry feedback, past financials and external ratings, if they are available, and in some
cases bank references.

Based on the credit aging of individual customer, the management has recognised provision towards expected credit loss
allowance on such receivables as on the reporting date.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the management in accordance with the
Company’s policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated
throughout the year.

None of the Company''s financial assets are either impaired or past due, and there were no indications that defaults in
payment obligations would occur.

b) 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 Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. The
Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds,
bank loans and intercorporate loans.

c) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices
which 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 exposures within acceptable parameters, while optimising the return.

Foreign Currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchanges
rates relates primarily to import of raw materials. When a derivative is entered for the purpose of being a hedge, the
Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows
established risk management policies and standard operating procedures.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the
Company''s borrowings. The Company constantly monitors the credit markets and rebalances its financing strategies to
achieve an optimal maturity profile and financing cost.

The exposure of the Company’s financial liabilities to interest rate risk based on liabilities as at reporting date is as follows:

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to various external
factors, which can affect the production cost of the Company. Company actively manages inventory and in many cases sale
prices are linked to major raw material prices. To manage this risk, the Company enters into long-term supply agreement
for Raw Material, identifying new sources etc. Additionally, processes and policies related to such risks are reviewed and
managed by senior management on continuous basis.

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it
maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs
with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of
Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate
steps in order to maintain, or if necessary, adjust its capital structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company
includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance)
and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered:

b. Additional Notes:

i) The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever
required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a material impact on its financial position.

ii) The Company periodically reviews all its long term contracts to assess for any material foreseeable losses. Based on such
review wherever applicable, the Company has made adequate provisions for these long term contracts in the books of
account as required under any applicable law/accounting standard.

iii) There has been no delay in transferring amounts, required to be transferred if any, to the Investor Education and Protection
Fund by the Company.

iv) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the
Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the
subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the
Code becomes effective and the related rules to determine the financial impact are published.

D. Major Terms and Conditions of transactions with related parties:

i) Transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

ii) The remuneration to Key Managerial Personnel are in line with the HR policies of the company.

iii) The company makes advances to its associate companies to cater their short-term business requirements. Such advances
carry interest rates at the prevailing interest rate applicable as per Company''s policy.

iv) The dividend paid to the Holding Company, Key Managerial Personnel and other relatives are on account of their investments
in the equity shares of the Company and dividend paid on such securities is uniformly applicable to all the holders.

v) Outstanding balances of group companies at the year-end are unsecured.

37. Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31,2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1,2024. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.

b) Defined Benefit Plan & Other Long Term Benefits:

Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity
Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, and funded to Employee
Gratuity scheme through Employee Gratuity trust. The present value of the Defined Benefits obligation and the related current
service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave
encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

1. The Weighted average duration of the defined benefit plan obligation at the end of the reporting period is 9.41 Years.

2. The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation
has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is

exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan liability. Increase in salary increase rate assumption
in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates
at subsequent valuations can impact Plan’s liability.

i) The above information and that given in Note No. 19 '' Trade Payables'' regarding Micro and Small Enterprises has been
determined on the basis of information available with the Company and has been relied upon by the auditors.

ii) includes amount of Rs. 1303.65(Previous year Rs. 768.98) outstanding, but not overdue to micro and small enterprises as
on 31 March 2025.

42. Additional Regulatory Information:

i. The title deeds of all the immovable properties (other than immovable properties where the Company is the lessee and the lease
agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and
equipment and capital work-in progress, are held in the name of the Company as at the balance sheet date.

ii. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

iii. No loans are outstanding to the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other
person, that are repayable on demand or without specifying any terms or period of repayment.

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

v. The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of
current assets filed by the company with banks are in agreement with the books of accounts.

vi. The Company have not been declared wilful defaulter by any bank or financial institution or other lender.

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

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

ix. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

x. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.

xi. 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

42. Additional Regulatory Information: (Contd..)

xii. 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,

xiii. The Company have no 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).

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

xv. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xvi. Analytical Ratios:

The following are analytical ratios for the year ended March 31st, 2025 and March 31st, 2024

Additional Notes:

a) Total Debts represents long term and short-term borrowings including current maturities of long-term borrowings and
lease liabilities.

b) Net Profit after taxes non-cash operating expenses Interest other adjustments like loss on sale of Fixed assets etc.

c) Tangible Net Worth Total Debts Deferred Tax liabilities Lease Liabilities
Explanation for variances exceeding 25%:

a) Debt Equity Ratio decrease due to reduction in outstanding borrowings and improved profitability.

b) Inventory Turnover Ratio increased due to better inventory management.

45. APPROVAL OF FINANCIAL STATEMENTS AND DIVIDEND DECLARATION

The Financial Statements were approved by the Board of Directors on, 06th May 2025. The Board of Directors have recommended
final dividend of Rs. 0.50 per fully paid-up equity share of Rs.10/- each, aggregating to Rs. 309.14 Lakhs for the financial year
2024-25, which is based on relevant share capital as on 31st March, 2025. The actual dividend payout is subject to the approval
of shareholders at the ensuing Annual General Meeting and the relevant share capital outstanding as on the record date
/ book closure.

46. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary
course of business which is not significantly differ from the amount at which it is stated.

47. Previous year’s figures have been reclassified, wherever necessary, to conform current year’s presentation.

As per our report of even date attached
For Ashok Kanther & Associates

Chartered Accountants For and on Behalf of the Board of Directors

(Firm Registration No. 050014C)

Sd/- Sd/-

(Praveen Ostwal) (Mahendra Kumar Ostwal)

Managing Director Director

DIN: 00412207 DIN: 00412163

Sd/-

(Ashok Kanther)

Partner Sd/- Sd/-

Membership No: 043571 (Anil Sharma) (Sunil Kothari)

Place: - Bhilwara Company Secretary Whole Time Director &

Chief Financial Officer

Dated: - 6th May, 2025 Membership No. ACS-25045 DIN: 02056569

UDIN: 25043571BMMHYI3649

---

Mar 31, 2023

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined 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 by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s Audit Committee oversees 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 ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

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, including the default risk of the industry and country in which customers operate.

The Company Management 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. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references.

Based on the credit aging of individual customer, the management considers that no provision on such receivables has been recognised as on the reporting date.

iii. 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 Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank loans and intercorporate loans.

iv. Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which 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 exposures within acceptable parameters, while optimising the return.

Foreign Currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchanges rates relates primarily to import of raw materials. When a derivative is entered for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to various external factors, which can affect the production cost of the Company. Company actively manages inventory and in many cases sale prices are linked to major raw material prices. To manage this risk, the Company enters into long-term supply agreement for Raw Material, identifying new sources etc. Additionally, processes and policies related to such risks are reviewed and managed by senior management on continuous basis.

34. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor,

creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust its capital structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance) and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered:

b) Defined Benefit Plan & Other Long Term Benefits:

II. Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme. The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

III. Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

2. The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such

company is exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

Note: The above information and that given in Note No. 19 '' Trade Payables'' regarding Micro and Small Enterprises has been determined on the basis of information available with the Company and has been relied upon by the auditors.

42. Additional Regulatory Information:

i. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

ii. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

iii. No loans are outstanding to the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

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

v. The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

vi. The Company have not been declared wilful defaulter by any bank or financial institution or other lender.

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

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

ix. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

x. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xi. 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

xii. 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,

xiii. The Company have no 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).

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

xv. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xvi. Ratios:

1. Total Debts represents long term and short-term borrowings including current maturities of long-term borrowings and lease liabilities.

2. Net Profit after taxes non-cash operating expenses Interest other adjustments like loss on sale of Fixed assets etc.

3. Tangible Net Worth Total Debts Deferred Tax liabilities Lease Liabilities

Explanation for variances exceeding 25%:

1. Current Ratio decreased as excess net working capital was invested for planned DAP/NPK project.

2. Debt Equity Ratio increased due to new Term Loan taken for DAP/ NPK project during the F.Y. 2022-23.

3. Return on Equity Ratio decreased due to reduction in Net profit and increase in the equity share capital used for funding of new project whose return will accrue in F.Y. 2023-24.

4. Inventory Turnover Ratio decreased due to increase in stock for DAP/NPK project which could be translated into sales only in F.Y. 2023-24.

5. Net Capital Turnover Ratio increased due to use of excess net working capital for planned DAP/NPK project.

6. Return on Capital employed decreased as investment in DAP/NPK plant made but benefit for the same will available in F.Y. 2023-24.

44. APPROVAL OF FINANCIAL STATEMENTS

i. The Financial Statements were approved for issue by the Board of Directors on, April 21^th 2023. The Board of Directors have recommended dividend of Rs.0.50 per fully paid-up equity share of Rs.10/- each, aggregating Rs.154.57 Lacs for the financial year 2022-23, which is based on relevant share capital as on 31^st March, 2023. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

45. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary course of business which is not significantly differ from the amount at which it is stated.

46. The new Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13^th, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

47. Previous year''s figures have been reclassified, wherever necessary, to conform current year''s presentation.

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Mar 31, 2021

II. Financial risk managementThe Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined 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 by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and

management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s Audit Committee oversees 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 ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

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, including the default risk of the industry and country in which customers operate.

The Company Management 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. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references.

Based on the credit aging of individual customer, the management considers that no provision on such receivables has been recognised as on the reporting date.

iii. 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 Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank loans and intercorporate loans.

iv. Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which 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 exposures within acceptable parameters, while optimising the return.

Foreign Currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchanges rates relates primarily to import of raw materials. When a derivative is entered for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to various external factors, which can affect the production cost of the Company. Company actively manages inventory and in many cases sale prices are linked to major raw material prices. To manage this risk, the Company enters into long-term supply agreement for Raw Material, identifying new sources etc. Additionally, processes and policies related to such risks are reviewed and managed by senior management on continuous basis.

33. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company includes within Net Debt, interest bearing loans and borrowings less cash and

b) Defined Benefit Plan & Other Long Term Benefits:II. Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme. The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

III. Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

1. The Weighted average duration of the defined benefit plan obligation at the end of the reporting period is 11.47 Years.

2. The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such

company is exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

40. Estimation of uncertainties relating to the global health due to pandemic COVID-19 :

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets and impact on revenue recognition owing to changes in cost budgets of fixed price contracts. The Company has carried out this assessment based on available internal and external sources of information up to the date of approval of these standalone financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the standalone financial statements may differ from that estimated as at the date of approval of these standalone financial statements owing to the nature and duration of COVID-19.

Note: The above information and that given in Note No. 18 '' Trade Payables'' regarding Micro and Small Enterprises has been determined on the basis of information available with the Company and has been relied upon by the auditors.

43. APPROVAL OF FINANCIAL STATEMENTS

i. The Financial Statements were approved for issue by the Board of Directors on 10^th June, 2021. The Board of Directors have recommended dividend of Rs.0.50 per fully paid up equity share of Rs.10/- each, aggregating Rs.130.50 Lacs for the financial year 2020-21, which is based on relevant share capital as on 31st March, 2021. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

44. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary course of business which is not significantly differ from the amount at which it is stated.

45. The new Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

46. Previous year''s figures have been reclassified, wherever necessary, to conform current year''s presentation.

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Mar 31, 2018

1. DEFFERED TAX LIABILITIES/ ASSETS

i) The company has recognized a provision for deferred tax laibility of Rs. 109.05 Lac (P.Y. deferred tax libility Rs. 118.43 Lac ) in P&L account determined on account of timing differences in accordance with Accounting Standard-22 “Accounting for Taxes on Income” as under :-

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company’s entire current assets including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 8.70% as on 31/03/2018

iii) The bank loan for working capital is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Mahendra Kumar Ostwal, Pankaj Ostwal and Ekta Jain.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2018. This information as required to be disclosed under the Micro-small and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

2. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on the basis of their useful life on single shift used basis on BRP, SSP & GSSP plant, except extra shift depreciation has been provided on SSP & GSSP plant for the actual no. of days for which the plant has been operated on double or triple shift basis in accordance with the provisions of Section 123 read with the Part C of Schedule II to the Companies Act, 2013. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use. during the year company has also provided depreciation on Sulphuric acid & Oleum plant on the basis of contineus process plant.

ii) Gross block and Net Block of fixed assets includes Rs. 3967.27 Lac (P.Y. Rs. 4007.96 lac) and Rs. 2658.15071 Lac (P.Y. Rs. 2862.95 Lac) respectively on account of revaluation of fixed assets carried out in the year 2010-11 by the company. Depreciation of Rs.204.8 Lac (P.Y. Rs. 230.1 Lac) has been charged to profit & loss A/c.

iii) Disposal from Gross Block represents sale of fixed assets.

iv) Deduction in depreciation is on account of sale of fixed assets.

v) No provision is required for impairment of assets according to AS-28 ‘Impairment of Assets” as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

The major components of inventory in case of raw material are Rock-Phosphate, Sulphuric Acid & HDPE Bags, boron, Zinc Sulphate (Boron & Zinc Sulphate are fortified with SSP), Napthelene, Oleum, Castic Soda, Sulphur etc. and in case of finished goods its includes Beneficiated Rock Phosphate(BRP), Single Super Phosphate(SSP), Granular Single Super Phosphate(GSSP),Chemical Product (H-Acid) & Sulphuric Acid & Oluem.

3. FOREIGN CURRENCY EXPOSURE

During the period from 01.04.2017 to 31.03.2018 company import Rock Phosphate 5500MT in USD 297000 and 10190MT Rock Phosphate import under High Sea Sale agreement.

4. IMPORTED & INDIGENOUS RAW MATERIAL, COMPONENTS AND SPARE PARTS CONSUMED -

All raw material, components and spare parts consumed by the company are indigenous except company has imported Rock Phosphate of 15690 MT.

5 The company has taken a plan from SBI Life in compliance of terms of sanction of Cash Credit Limit taken from SBBJ. The company has paid premium & debited to the profit & Loss account. As per the assignment of the policy the maturity value will be received to Managing Director Mr. Praveen Ostwal. The Managing Director Mr. Praveen Ostwal of the company has been duly undertake to derive no benefit out of that & consented to deposit the entire amount into the company as and when received to him. The maturity value will be credited to profit & Loss A/c in the year of receipt.

6 a) Figures of Previous year have been regrouped, rearranged and/or reclassified wherever consider necessary to make these comparable with the current year.

b) Amount have been shown in Lakh, except otherwise stated.

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Mar 31, 2016

1. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on the basis of their useful life on single shift used basis on BRP, SSP & GSSP plant, except extra shift depreciation has been provided on SSP & GSSP plant for the actual no. of days for which the plant has been operated on double or triple shift basis in accordance with the provisions of Section 123 read with the Part C of Schedule II to the Companies Act, 2013. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Gross block and Net Block of fixed assets includes Rs. 4024.79 Lac (P.Y. Rs. 4024.79 Lac) and Rs. 3341.75 Lac (P.Y. Rs. 3353.61 Lac) respectively on account of revaluation of fixed assets carried out in the year 2010-11 by the company. Depreciation of Rs. 231.01 Lac (P.Y. Rs. 231.01 Lac) has been charged to profit & loss A/c.

iii) Disposal from Gross Block represents sale of fixed assets.

iv) Deduction in depreciation is on account of sale of fixed assets.

v) No provision is required for impairment of assets according to AS-28 ‘Impairment of Assets” as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date !n order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

The major components of inventory in case of raw material are Rock-Phosphate, Sulphuric Acid & HDPE Bags, Boron & Zinc Sulphate (Boron & Zinc Sulphate are fortified with SSP) and in case of finished goods its includes Beneficiated Rock Phosphate(BRP), Single Super Phosphate(SSP) & Granular Single Super Phosphate(GSSP).

2. RELATED PARTY TRANSACTIONS

a) Key Managerial persons

(i) Mr, Praveen Ostwal Managing Director

(ii) Mr. Sunil Kothari Whole Time Director & Chief Financial Officer

(iii) Miss. Suryanshi Jain Company Secretary

b) Enterprises over which Key Managerial persons exercises significant influence:

(i) Madhya Bharat Agro Products Ltd.

(ii) Ostwal Phoschem (India) Ltd. (Formerly known as Tedco Granite Limited)

(iii) Seasons International Pvt. Ltd.

(iv) R.V. Spinners Pvt. Ltd.

(v) Seasons Agro Chem India Pvt. Ltd.

i) Production of SSP-Green (Powder) includes consumption of Boron Qty 14.865 MT & Zinc Sulphate Qty 33.55 MT.

ii) Sales of Single Super Phosphate had included sales of Bronated(PSSP) with Qty 988.00 MT & Zincated (PSSP) with Qty 7686.00 MT.

iii) Closing Stock of Single Super Phosphate had included closing stock of Bronated(PSSP) with Qty 3.00 MT & Zincated (PSSP) with Qty 8.00 MT.

3. The company has taken a plan from SBI Life in compliance of terms of sanction of Cash Credit Limit taken from SBBJ. The company has paid premium & debited to the profit & Loss account. As per the assignment of the policy the maturity value will be received to Managing Director Mr. Praveen Ostwal. The Managing Director Mr. Praveen Ostwal of the company has been duly undertake to derive no benefit out of that & consented to deposit the entire amount into the company as and when received to him. The maturity value will be credited to profit & Loss A/c in the year of receipt.

4. a) Figures of Previous year have been regrouped, rearranged and/or reclassified wherever consider necessary to make these comparable with the current year,

b) Amount have been shown in Lacs, except otherwise stated.

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Mar 31, 2015

1. FOREIGN CURRENCY EXPOSURE

During the year 2014-15, there no foreign currency exposure made by the company. Previous year 2013-14 company had imported Rock Phosphate and amount paid in USD 2510517.89 & foreign exchange loss was Rs. 2891813/-.

2. IMPORTED & INDIGENOUS RAW MATERIAL. COMPONENTS AND SPARE PARTS CONSUMED -

All raw material, components and spare parts consumed by the company are indigenous except company has imported Rock Phosphate of 33620 MT through high sea sale agreement.

3. STATEMENT OF ADDITIONAL INFORMATIONS:

a) Particulars of installed capacity:

(As certified by management being technical matter)

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Mar 31, 2014

1. DEFERRED TAX LIABILITIES/ ASSETS

i) The company has recognized a provision for deferred tax assets of Rs. 113.22 Lac (P.Y. Rs. 161.29 Lac) in P&L account determined on account of timing differences in accordance with Accounting Standard-22 “Accounting for Taxes on Income" as under:-

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company’s entire current assets including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 14.25% as on 31/03/2014.

iii) The bank loan for working capital is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Ekta . Jain and corporate guarantee of Seasons Agro Chem India Pvt. Ltd.

There are no Micro small and medium enterprises to whom the company owes dues, winch are our agronomy if. than 45 days as at 31st March, 2014. This information as required to be disclosed under the Micro-small enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

2. FIXED ASSETS

The Company has provided depreciation on fixed assets on straight line Method on Basis in accordance The protons of Section 205 read with the Schedule XIV to the Companies Act 95 Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put ^to

ii) Gross block and Net Block of fixed assets includes Rs. 4024.79 Lac (P.Y. Rs. 1813.60 Lac)

Y Rs 1520 66 Lac) respectively on account of revaluation of fixed assets earned out in the year 2010- y company. Depreciation of Rs. 146.47 Lac (P.Y Rs. 146.47 Lac) has been charged to revaluation reserve The company has further revalue the book value of land by Rs. 1162.15 and plant & machinery by Rs 1049.04 as on 31 03 2014 on the basis of External Values Report received by the Company. This has resulted into the increase in gross block of assets of Rs. 2211.19 lacs and corresponding increase in revaluation reserve of the company. The basis of valuation as mentioned into the report of external valour is market rate in the case of land and net recoverable amount in the case of plant & machinery

iv) Disposal from Gross Block represents sale of fixed assets, Deduction in depreciation is on account of sale of fixed assets.

No provision is required for impairment of assets according to AS-28 ‘Impairment of Assets ^as value use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date, " order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

The major components of inventory in case of raw material are Rock-Phosphate, Sulphuric Acid & HDPE Bags and in case of finished goods its includes Beneficiated Rock Phosphate(BRP), Single Super Phosphate(SSP) & Granular Single Super Phosphate.

3. RELATED PARTY TRANSACTIONS

a) Key Managerial persons

(i) Mr. Praveen Ostwal

(ii) Mr. Sunil Kothari

(iii) Ms. Meenakshi Anchlia

b) Enterprises over which Key Managerial persons exercises significant influence:

(i) Madhya Bharat Agro Products Ltd.

(ii) Ostwal Phoschem (India) Ltd. (Formerly known as Tesco Granite Limited)

(iii) Seasons International Pvt. Ltd.

(iv) Seasons Agro Chem India Pvt. Ltd.

⁴- STATEMENT OF ADDITIONAL INFORMATIONS:

a) Particulars of installed capacity:

5. a) Figures of Previous year have been regrouped, rearranged and/or reclassified wherever consider necessary to make these comparable with the current year,

b) Figures have been shown in Lacs, except otherwise stated.

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Mar 31, 2013

CONTINGENT LIABILITIES:

In the opinion of Board of Directors of the Company there is no contingent Liabilities as on 31" March 2013.

iii) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for . one vote per share held.

iv) 60,00,000 Equity Shares has been issued as bonus share in the ratio of 1:1 in the year 2011-12.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

i) Nature of Security - The term loans from MPFC are secured by way of equitable mortgage of land, factory building, plant and machinery, furniture & fixtures (existing & future) of the company.

ii) Terms of repayment — Term loans from MPFC are repayable in quarterly instalments and having floating net interest rates ranging from 12.50% to 13.00% and remaining amount is payable in next 8 Years.

iii) Secured loans are guaranteed by personal guarantee of Managing Director.

1. DEFERRED TAX LIABILITIES/ ASSETS

i) The company has recognized a provision for deferred tax assets of Rs. 161.29 Lac (P.Y. Rs. 30.30 Lac) in P&L account determined on account of timing differences in accordance with Accounting Standard-22 “Accounting for Taxes on Income” as under

i) Nature of Security - The bank loan for working capital is secured against hypothecation of company’s entire current assets including raw material, stock in process, finished goods, store & spares, book debts, receivables including goods in transit along with document proof title to goods such as MTRs/RRs/bills of lading etc. The same is also secured by second charge over fixed assets (present & future) of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 14.25% as on 31/03/2013.

iii) The bank loan for working capital is guaranteed by personal guarantee of Managing Director Praveen Ostwal & Ekta Jain and corporate guarantee of Seasons Agro Chem India Pvt. Ltd.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31 *- March, 2013. This information as required to be disclosed under the Micro-small and medium enterprises development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

2. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on straight line Method on triple Shift Basis in accordance with the provisions of Section 205 read with the Schedule XIV to the Companies Act, 1956. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Gross block and Net Block of fixed assets includes Rs. 1813.60 Lac (P.Y. Rs. 1813.60 Lac) and Rs. 1520.67 Lac (P.Y Rs. 1667.13 Lac) respectively on account of revaluation of fixed assets carried out in past by the company. Depreciation of Rs. 146.47 Lac (P.Y. Rs. 146.47 Lac) has been charged to revaluation reserve.

iii) Disposal from Gross Block represents sale of fixed assets.

iv) Deduction in depreciation is on account of sale of fixed assets. .

v) No provision is required for impairment of assets according to AS-28 ‘Impairment of Assets* as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company

3. IMPORTED & INDIGENOUS RAW MATERIAL. COMPONENTS AND SPARE PARTS CONSUMED -

All raw material, components and spare parts consumed by the company are indigenous except company has imported Rock Phosphate of 1989.39 MT under high sea sale agreement.

4. STATEMENT OF ADDITIONAL INFORMATIONS:

a) Particulars of installed capacity:

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Mar 31, 2012

1. RELATED PARTY TRANSACTIONS

a) Key management personnel and their relatives - Mr. Praveen Ostwal

Mr. Sunil Kothari Mrs. Joyti Kothari Mrs. Sudha Patwa

b) Enterprises over which Key Management Personnel exercises significant influence -

Madhya Bharat Agro Products Limited Tedco Granite Limited

2. EMPLOYMENT BENEFIT PLANS

The Company has complied with Accounting Standard 15 (Revised 2005) and the required disclosure are given here under:

3. FOREIGN CURRENCY EXPOSURE -

During the year company have no foreign currency exposure hence expenditures in foreign currency, earnings in foreign currency, CIF value of imports are Rs. NIL (Previous year - Rs. NIL).

4. IMPORTED & INDIGENOUS RAW MATERIAL, COMPONENTS AND SPARE PARTS CONSUMED - All raw material, components and spare parts consumed by the company are indigenous.

5. PREVIOUS YEAR FIGURES

The financial statements for the year ended March 31, 2011 had been prepared as per the applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year’s classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.