Valiant Organics Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

3.10 Provisions, Contingent Liabilities and Contingent
Assets

Provisions

The Company recognizes a provision when it has a
present legal or constructive obligation as a result of
past events, it is likely that an outflow of resources will
be required to settle the obligation; and the amount has
been reasonably estimated. Unwinding of the discount
is recognised in the Statement of Profit and Loss as a
finance cost.

Contingent Liabilities

Contingent liability is a possible obligation arising from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the company or a present obligation that arises
from past events but is not recognized because it is
not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
or the amount of the obligation cannot be measured with
sufficient reliability.

Contingent Assets

A contingent asset is not recognised unless it becomes
virtually certain that an inflow of economic benefit
will arise. When an inflow of economic benefits is
probable, contingent assets are disclosed in the financial
statements. Provisions, contingent liabilities and
contingent assets are reviewed at each balance sheet
date.

Onerous Contracts:

A provision for onerous contracts is measured at the
present value of the lower expected costs of terminating
the contract and the expected cost of continuing with the
contract. Before a provision is established, the Company
recognizes impairment on the assets with the contract.

3.11 Taxes:

The tax expenses comprise of current tax and deferred
income tax charge or credit. Tax is recognised in
Statement of Profit and Loss, except to the extent that it
relates to items recognised in the Other Comprehensive
Income or in Equity. In which case, the tax is also
recognised in Other Comprehensive Income or Equity

Current Tax:

Tax on income for the current period is determined on
the basis of estimated taxable income and tax credits
computed in accordance with the provisions of the
relevant tax laws and based on the expected outcome of
assessments/ appeals. The current income tax charge
is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period

Management periodically evaluates positions taken
in the tax returns with respect to situations in which

applicable tax regulations are subject to interpretation
and establishes provisions, where appropriate.

Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set-off the
recognised amounts and there is an intention to settle
the asset and the liability on a net basis.

Deferred Tax:

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the company''s financial statements and the
corresponding tax bases used in computation of taxable
profit and quantified using the tax rates and laws enacted
or substantively enacted as on the Balance Sheet date

Deferred tax liabilities are recognised for all taxable
temporary differences at the reporting date between
the tax base of assets and liabilities and their carrying
amounts for financial reporting purposes. Deferred
tax assets are recognised for all taxable temporary
differences to the extent that is probable that taxable
profits will be available against which those deductible
temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered.

Unrecognized deferred tax assets are reassessed at
each reporting and are recognized to the extent that it
has become probable that future taxable profits will be
available against which the deferred tax assets to be
recovered.

The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the company expects, at the end of
reporting period, to recover or settle the carrying amount
of its assets and liabilities.

Transaction or event which is recognised outside profit
or loss, either in other comprehensive income or in equity,
is recorded in other comprehensive income or in equity
along with the tax as applicable.

Deferred tax assets and deferred tax liabilities are offset
when there is a legally enforceable right to set-off the
recognised amounts and there is an intention to settle
the asset and the liability on a net basis.

3.12 Revenue Recognition

Revenue from Operations:

Revenue is recognised upon transfer of control of
promised products or services to customers in an
amount that reflects the consideration the Company
expects to receive in exchange for those products or
services.

To recognise revenues, the Company applies the
following five step approach in accordance with Ind AS
115:

(a) identify the contract with a customer

(b) identify the performance obligations in the contract

(c) determine the transaction price

(d) allocate the transaction price to the performance
obligations in the contract and

(e) recognise revenues when a performance obligation
is satisfied.

Sale of Goods:

The Company recognises revenue from sale of goods
measured upon satisfaction of performance obligation
which is at a point in time when control of the goods is
transferred to the customer, generally on delivery of the
goods. Depending on the terms of the contract, which
differs from contract to contract, the goods are sold on
a reasonable credit term. Revenue is measured based on
the transaction price, which is the consideration, adjusted
for volume discounts, rebates, scheme allowances,
price concessions, incentives, and returns, if any, as
specified in the contracts with the customers. Revenue
excludes taxes collected from customers on behalf of
the government.

Sale of Services:

Revenue from services is recognised when the
performance obligation is met and the right to receive
income is established.

Interest Income:

For all debt instruments measured either at amortised
cost or at fair value through other comprehensive
income, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over
the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of a
financial liability. When calculating the effective interest
rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial
instrument (for example prepayment, extension and
similar options) but does not consider the expected
credit losses. Interest income is included in other income
in the statement of profit and loss.

Dividend Income:

Dividend income is recognized when the Company''s right
to receive the payment is established, which is generally
when shareholders approve the dividend.

Export Incentives:

Eligible export incentives are recognised in the year in
which the conditions precedent are met and there is no
significant uncertainty about the collectability.

Other Income:

Revenue with respect to Other Operating Income and
Other Income including insurance and other claims
are recognised when a reasonable certainty as to its
realisation exists.

3.13 Leases:

The Company evaluates each contract or arrangement,
whether it qualifies as lease as defined under Ind AS 116.

As a Lessee:

The Company assesses, whether the contract is, or
contains, a lease, at its inception. A contract is, or
contains, a lease if the contract conveys the right to -

(a) control the use of an identified asset,

(b) obtain substantially all the economic benefits from
use of the identified asset, and

(c) direct the use of the identified asset

The Company determines the lease term as the non¬
cancellable period of a lease, together with periods
covered by an option to extend the lease, where the
Company is reasonably certain to exercise that option.

The Company at the commencement of the lease
contract recognizes a Right-of-Use (RoU) asset at cost
and corresponding lease liability, except for leases with
term of less than twelve months (short term leases) and
low-value assets. For these short term and low value
leases, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the
lease term.

The cost of the right-of-use asset comprises the amount
of the initial measurement of the lease liability, any lease
payments made at or before the inception date of the
lease, plus any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying asset or
to restore the underlying asset or the site on which it is
located, less any lease incentives received.

The Right-of-Use asset is subsequently depreciated
using the straight-line method from the commencement
date to the earlier of the end of the useful life of the Right-
of-Use asset or the end of the lease term. The estimated
useful lives of Right-of-Use assets are determined on the
same basis as those of property, plant and equipment.
In addition, the Right-of-Use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability

For lease liabilities at the commencement of the lease,
the Company measures the lease liability at the present
value of the lease payments that are not paid at that
date. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be
readily determined, if that rate is not readily determined,
the lease payments are discounted using the incremental
borrowing rate that the Company would have to pay to
borrow funds, including the consideration of factors such
as the nature of the asset and location, collateral, market
terms and conditions, as applicable in a similar economic
environment. After the commencement date, the amount
of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.

Lease payments included in the measurement of the
lease liability comprises fixed payments, including
amounts expected to be payable under a residual value
guarantee and the exercise price under a purchase option
that the Company is reasonably certain to exercise, lease
payments in an optional renewal period if the Company
is reasonably certain to exercise an extension option. The
lease liability is subsequently measured at amortised
cost using the effective interest method.

Each lease rental paid is allocated between the liability
and the interest cost, so as to obtain a constant periodic
rate of interest on the outstanding liability for each period.
Finance charges are recognised as finance costs in the
statement of profit and loss.

As a lessor:

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental
income from operating lease is recognised on a straight¬
line basis over the term of the relevant lease. Leases
are classified as finance leases when substantially all
of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the
Company''s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net investment
outstanding in respect of the lease.

3.14 Borrowing Costs:

Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of
time to get ready for its intended use. All other borrowing
costs are charged to the Statement of Profit and Loss for
the period for which they are incurred. Borrowing costs
consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

In determining the amount of borrowing costs eligible
for capitalization, any income earned on the temporary
investment of specific borrowings pending their

expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation.

3.15 Foreign Currency Transactions

Foreign currency transactions are recorded on initial
recognition in the functional currency, using the
exchange rate at the date of the transaction. At each
Balance Sheet date, foreign currency monetary items
are reported using the closing rate. Non-monetary items
that are measured in terms of historical cost in a foreign
currency are translated using the exchange rate as at the
date of initial transactions. Exchange differences that
arise on settlement of monetary items or on reporting
of monetary items at each Balance Sheet date are
recognised in profit or loss in the period in which they
arise except for exchange differences on foreign currency
borrowings relating to assets under construction for
future productive use, which are included in the cost of
those assets when they are regarded as an adjustment
to interest costs on those foreign currency borrowings.

3.16 Earnings Per Share:

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted
average number of equity shares outstanding during the
period and for all periods presented is adjusted for events
such as bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares) that have changed the number
of equity shares outstanding, without a corresponding
change in resources

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

3.17 Exceptional items

When items of income or expense within the statement
of profit & loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to
explain the performance of the Company for the period,
the nature and amount of such material items are
disclosed separately as exceptional items.

3.18 Financial Instruments:

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity to another entity. The Company determines the
classification of its financial assets and liabilities at initial
recognition.

3.18.i Initial Recognition:

Financial assets and/or financial liabilities are
recognised when the Company becomes party
to a contract embodying the related financial
instruments. All financial assets, financial
liabilities and financial guarantee contracts
are initially measured at transaction values
and where such values are different from the
transaction values, at fair values. Transaction
costs that are attributable to the acquisition or
issue of financial assets and financial liabilities
that are not at fair value through profit or loss
are added to or deducted from as the case may
be, from the fair value of on initial recognition.

3.18.ii Classification and Subsequent Measurement
of Financial Assets:

The Company classifies financial assets,
subsequently at amortised cost, Fair Value
through Other Comprehensive Income
("FVTOCI”) or Fair Value through Profit or Loss
("FVTPL'') on the basis of following:

• the entity''s business model for managing
the financial assets and

• the contractual cash flow characteristics
of the financial asset.

(a) Financial Assets measured at Amortised
Cost:

A Financial Asset is measured at
amortised Cost if it is held within a
business model whose objective is to hold
the asset in order to collect contractual
cash flows and the contractual terms of
the Financial Asset give rise on specified
dates to cash flows that represent solely
payments of principal and interest on the
principal amount outstanding.

(b) Financial Assets measured at Fair Value
Through Other Comprehensive Income
(FVTOCI):

A Financial Asset is measured at FVTOCI
if it is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling
Financial Assets and the contractual
terms of the Financial Asset give rise
on specified dates to cash flows that
represents solely payments of principal
and interest on the principal amount
outstanding.

(c) Financial Assets measured at Fair Value
Through Profit or Loss (FVTPL):

FVTPL is a residual category for financial
assets. Any financial asset, which does
not meet the criteria for categorisation
as at amortised cost or as FVTOCI, is
classified as at FVTPL.

3.18.iii Classification and Subsequent Measurement

of Financial Liabilities:

(a) Financial liabilities measured at Fair
Value Through Profit or Loss (FVTPL):

Financial liabilities are classified as
FVTPL when the financial liability is held
for trading or is a derivative (except for
effective hedge) or are designated upon
initial recognition as FVTPL. Gains or
Losses, including any interest expense on
liabilities held for trading are recognised
in the Statement of Profit and Loss.

(b) Other Financial liabilities:

Other financial liabilities (including loans
and borrowings, bank overdraft and trade
and other payables) are subsequently
measured at amortised cost using the
effective interest method.

The effective interest rate is the rate that
exactly discounts estimated future cash
payments (including all fees and amounts
paid or received that form an integral part
of the effective interest rate, transaction

costs and other premiums or discounts)
through the expected life of the financial
liability, or (where appropriate) a shorter
period, to the amortised cost on initial
recognition.

Interest expense (based on the effective
interest method), foreign exchange gains and
losses, and any gain or loss on derecognition is
recognised in the Statement of Profit and Loss.

For trade and other payables maturing within
one year from the Balance Sheet date, the
carrying amounts approximate fair value due
to the short maturity of these instruments.

3.18.iv Debt and Equity Instruments:

Debt and equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and an
equity instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by a Company are
recognised at the proceeds received, net of
direct issue costs.

3.18.v Equity Investments

All equity investments in the scope of Ind
AS 109 are measured at fair value. Equity
instruments which are held for trading are
classified as at FVTPL. For all other equity
instruments, the company may make an
irrevocable election to present in other
comprehensive income subsequent changes
in the fair value. The company makes such
election on an instrument-by-instrument basis.
The classification is made on initial recognition
and is irrevocable. If the company decides to
classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI
to statement of profit and loss, even on sale

of investment. However, the company may
transfer the cumulative gain or loss within
equity. Equity instruments included within the
FVTPL category are measured at fair value
with all changes recognized in the statement
of profit and loss.

3.18. vi Investments in subsidiaries:

Investments in subsidiaries are 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 subsidiaries, the difference
between net disposal proceeds and the
carrying amounts are recognised in the
statement of profit and loss.

3.18. vii De-recognition of Financial Instruments:

The Company derecognises a Financial Asset
when the contractual rights to the cash flows
from the Financial Asset expire or it transfers
the Financial Asset and the transfer qualifies
for de-recognition under Ind AS 109. In cases
where Company has neither transferred nor
retained substantially all of the risks and
rewards of the financial asset, but retains
control of the financial asset, the Company
continues to recognize such financial asset
to the extent of its continuing involvement in
the financial asset. In that case, the Company
also recognizes an associated liability. The
financial asset and the associated liability
are measured on a basis that reflects the
rights and obligations that the Company has
retained.

A Financial liability (or a part of a financial
liability) is derecognised from the Company''s
Balance Sheet when the obligation specified
in the contract is discharged or cancelled or
expires. When an existing financial liability is
replaced by another from the same lender on
substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated

as the derecognition of the original liability and
the recognition of a new liability.

The difference between the carrying amount
of the financial liability de-recognised and the
consideration paid and payable is recognised
in the Statement of Profit and Loss.

3.18.viii Impairment of Financial Assets:

I n accordance with Ind AS 109, the Company
uses ''Expected Credit Loss'' (ECL) model, for
evaluating impairment of all Financial Assets
subsequent to initial recognition other than
financial assets measured at fair valued
through profit and loss (FVTPL). For Trade
Receivables and all lease receivables resulting
from transactions within the scope of Ind AS
116 the Company applies ''simplified approach''
which requires expected lifetime losses to
be recognised from initial recognition of the
receivables.

The Company uses historical default rates to
determine impairment loss on the portfolio
of trade receivables. At every reporting date
these historical default rates are reviewed
and changes in the forward-looking estimates
are analysed. For other financial assets, the
Company uses 12 month ECL to provide for
impairment loss where there is no significant
increase in credit risk since its initial
recognition. If there is significant increase
in credit risk since its initial recognition full
lifetime ECL is used. The impairment losses
and reversals are recognised in Statement of
Profit and Loss.

Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime
ECL which results from default events that
are possible within 12 months after the
reporting date. ECL is the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and

all the cash flows that the entity expects to
receive (i.e., all cash shortfalls), discounted at
the original EIR.

3.18.ix Offsetting of Financial Instruments:

Financial assets and financial liabilities are
offset and presented on net basis in the balance
sheet when there is a legally enforceable right
to set-off the recognised amounts and it is
intended to either settle them on net basis
or to realise the asset and settle the liability
simultaneously.

3.18. x Fair Value of Financial Instruments

I n determining the fair value of its financial
instruments, the Company uses a variety of
methods and assumptions that are based on
market conditions and risks existing at each
reporting date. The methods used to determine
fair value include discounted cash flow
analysis and available quoted market prices,
where applicable. All methods of assessing
fair value result in general approximation of
value, and such value may never actually be
realized.

Financial instruments by category are
separately disclosed indicating carrying value
and fair value of financial assets and liabilities.
For financial assets and liabilities maturing
within one year from the Balance Sheet date
and which are not carried at fair value, the
carrying amounts approximate fair value due
to the short maturity of these instruments.

3.18. xi Derivative Financial Instruments:

Derivative financial instruments such as
forward contracts, option contracts and cross
currency swaps, to hedge its foreign currency
risks are initially recognised at fair value on
the date a derivative contract is entered into
and are subsequently re-measured at their fair
value with changes in fair value recognised in
the Statement of Profit and Loss in the period
when they arise.

Rights, preferences and restrictions attached to equity shares

A. Ordinary Equity Shares

The Company has only one class of Shares referred to as Equity Shares having par value of '' 10. Each holder of equity
shares is 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 in the ensuing Annual General
Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.

B. Optionally Convertible Preference Shares (OCPS)

Pursuant to the scheme of arrangement with Amarjyot Chemical Limited, OCPS were supposed to be converted into
equity shares or Redeemable Preference Shares (RPS) before February 2022. After obtaining consent from OCPS
shareholders for conversion into equity shares, the Company filed a Settlement Application with SEBI on December
19, 2022. Following SEBI''s settlement order dated September 18, 2023, received by the Company on September 20,
2023, 405,561 OCPS were converted into equity shares on December 6, 2023. The Company has received both listing
and trading approval of these equity shares from BSE and NSE. These converted equity shares are eligible to receive
bonus equity shares in a 1:1 ratio, as previously declared. On March 25, 2025 Company alloted 405,561 Bonus Equity
Shares to all eligibile OCPS holder of the Company. The Company received listing approval on April 8, 2025, and trading
approval on April 21,2025, from both the Exchanges for the aforementioned issue and allotment of the Bonus Shares.

Nature and Purpose of Reserves
Capital Reserve

During amalgamation/merger/acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as
capital reserve.

Capital Redemption Reserve

Transferred to Capital Redemption Reserve on redemption of Redeemable Preference Shares during the year and can be
used for issuing fully paid up Bonus Shares

General Reserve

General reserve represents amount appropriated out of retained earnings pursuant to the earlier provisions of Companies
Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained Earning

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, any transfers
from or to other comprehensive income, dividends or other distributions paid to shareholders.

Equity instruments through Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVTOCI equity instruments reserve within equity. The
Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

Employee Stock Option Plan

The share options outstanding account is used to record the fair value of equity-settled, share-based payment transactions
with employees. The amounts recorded in share options outstanding account are transferred to securities premium, upon
exercise of stock options, and transferred to general reserve on account of stock options not exercised by employees.

Footnotes:

1 As at March 31,2025, '' 21,135.69 lakhs (March 31, 2024: '' 21,519.58 lakhs) of the total outstanding borrowings were
secured by a charge on property, plant and equipment, inventories, receivables and other current assets.

2 The security details of major borrowings as at March 31, 2025 is as below:

(a) Foreign currency term loans as on 31 March 2025, amounting to '' 5000.00 lakhs were secured by a charge on
immovable & movable properties including movable machinery, spares, tools & accessories, ranking pari passu
inter-se. The term loans were drawn in different tranches over the period and were originally payable across 18
equal quarterly instalments starting from Oct 2025 till Jan 2030 as mentioned in the table below:

3 Working capital facilities from banks as at March 31, 2025 amounting to '' 13923.44 lakhs (March 31, 2024 of
'' 10608.58 lakhs ) were secured by a first pari passu charge on the stock of raw materials, finished goods, stock in
process, consumable stores and book debts of the Company. These credit facilities carry average interest rates in the
range of 7.10% to 9.75% (31 March, 2024: 7.62% to 9.75%).

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

5 There are no material differences between the quarterly statements of stock filed by the company with banks and the
books of accounts.

6 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

8 All the floating rate borrowings are bank borrowings bearing interest rates based on Marginal Cost of Lending Rate
(MCLR), Repo rate, T-Bill and LIBOR. Of the total floating rate borrowings as at March 31,2025, '' 4444.44 lakhs (March
31,2024 : '' 4500.01 lakhs ) has been hedged using interest rate swaps with contracts covering period of more than one
year.LIBOR (London Interbank Offered Rate) was a benchmark interest rate that has been discontinued, while SOFR
(Secured Overnight Financing Rate) is its replacement.

Footnotes:

(a) Disaggregate revenue information

Refer Note 37 for disaggregated revenue information. The management determines that the segment information
reported is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115
"Revenue from contracts with customers”.

(b) In case of Domestic Sales, payment terms ranges from 60 days to 100 days based on geography and customers. In
case of Export Sales, these are either against documents at sight, documents against acceptance or letters of credit -
60 days to 90 days. There is no significant financing component in any transaction with the customers.

(c) The Company does not provide performance warranty for products, therefore there is no liability towards performance
warranty.

(d) The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a
shorter duration.

A. Post-employment benefits

(i) Provident Fund (defined contribution plan)

The company has certain defined contribution plans. Contributions are made to provident fund for employees at the
rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by
the government. The obligation of the company is limited to the amount contributed and it has no further contractual
nor any constructive obligation. The expense recognized during the period towards defined contribution plan are
'' 235.64 lakhs (PY '' 174.36 lakhs).

(ii) Retirement Gratuity (defined benefit plans)

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/

termination is the employees'' last drawn basic salary per month computed proportionately for 15 days salary multiplied
by number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised
funds in India. The company maintains a target level of funding to be maintained over a period of time based on
estimations of expected gratuity payments.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk,
interest rate risk, salary risk and longevity risk.

(i) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined
by reference to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.

(ii) Interest risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by
an increase in the value of plan''s debt investments.

(iii) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in salary of the plan participants will increase the plan''s liability.

(iv) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan''s liability.

Footnotes:

i) The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

ii) The sensitivity analysis presented above may not be representative of the actual change in the projected 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.

iii) Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as
applied in calculating the projected benefit obligation as recognised in the balance sheet.

iv) There was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.

v) The Company is expected to contribute '' 193.14 lakhs to defined benefit plan obligations funds for the year ended
March 31,2025

vi) Expected return on assets is determined by multiplying the opening fair value of the plan assets by the expected rate
of return determined at the start of the annual reporting period, taking account of expected contributions & expected
settlements during the reporting period.

vii) The Weighted Average Duration of the Plan works out to 12 years.

A. Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested. The
trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance
Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation
which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of
investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy. There
is no compulsion on the part of the Company to fully prefund the liability of the Plan.

B. Other long-term employee benefits
Annual Leave and Sick Leave

The liability towards compensated absences (annual leave and sick leave) for the year ended 31^st March, 2025 based
on actuarial valuation carried out by using Projected Accrued Benefit Method resulted in increase in liability by '' 30.21
lakhs. (FY 2023-24: increased by '' 41.41 lakhs).

37 Segment Information

The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of
Directors, who are the Chief Operating Decision Makers. The board responsible for allocating resources and assessing the
performance of operating segments. Accordingly, the reportable segment is only one segment i.e. Chemicals.

(a) Revenue from Type of Product and Services

There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external
customers shown under geographical information is representative of revenue based on product and services.

Fair value hierarchy

Level 1 : Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities, listed redeemable preference shares for which sufficient observable market
data was not available during the year, etc. included in level 3.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has
classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each
level followed is given in the table above.

40 Financial risk management objectives and policies

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk
Management framework. The Board has established the Risk Management Committee, which is responsible for developing
and monitoring the Company''s Risk Management policies. The Committee reports regularly to the Board of Directors on its
activities.

The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks,
trade receivables and other receivables and financial liabilities comprise mainly of borrowings, trade payables and other
payables.

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s overall risk management
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Company. The Company uses derivative financial instruments, such as cross currency swaps and
interest rate swaps to hedge foreign currency risk and interest rate risk exposure . Derivatives are used exclusively for
hedging purposes and not as trading or speculative instruments.

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial
instruments affected by market risk include borrowings, investments, trade payables, trade receivables and derivative
financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate due to
changes in market interest rates. Company''s interest rate risk arises from borrowings.

The following table demonstrates the sensitivity on the Company''s profit before tax, to a reasonably possible change in
interest rates of variable rate borrowings on that portion of loans and borrowings affected, with all other variables held
constant:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company transacts in several currencies and consequently the Company is exposed
to foreign exchange risk through its sales outside India, and purchases from overseas suppliers in various foreign
currencies. The company also has borrowings in foregin currency. The exchange rate between the Indian rupee and
foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently,
the results of the Company''s operations are affected as the rupee appreciates / depreciates against these currencies.
Foreign currency exchange rate exposure is partly balanced by purchase of raw materials and services in the respective
currencies.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables
and deposits with banks and other financial assets. The Company ensures that sales of products are made to customers
with appropriate creditworthiness. Outstanding customer receivables are regularly monitored by the management. An
impairment analysis is performed at each reporting date on an individual basis for major customers. Credit risk on cash and
cash equivalents is limited as the Company generally invest in deposits with banks.

Refer footnotes (c) and (d) below note no. 11 for ageing of trade receivables and movement in credit loss allowance.

C. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable
losses. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for
use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks.
Furthermore, the Company have access to undrawn lines of committed borrowing/facilities. The Company invests its surplus
funds in bank fixed deposits and in mutual funds, which carry no or low market risk. The company consistently generates
sufficient cash flows from operations or from cash and cash equivalents to meet its financial obligations including lease
liabilities as and when they fall due.

41 Additional regulatory information required by schedule III to the Companies Act, 2013

(a) The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and Rules made thereunder.

(b) The Company does not have any transactions or relationships with any companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(c) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87)
of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(d) Utilisation of borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

- Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

- Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any 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:

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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(e) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act,
1961 (such as search or survey), that has not been recorded in the books of account.

(f) The Company has not traded or invested in crypto currency or virtual currency during the year.

(g) The Company has not given any Loan or Advance in the nature of the loan to the Promoter or Directors.

---

Mar 31, 2024

Due to the short nature of credit period given to customers, there is no financing component in the contract.

The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables. The Company follows the simplified approach for recognition of impairment allowance on trade receivables. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) recognised during the period is recognised in the Statement of Profit and Loss. This amount is reflected under the head ''other expenses’ in the Statement of Profit and Loss.

Rights, preferences and restrictions attached to equity shares Ordinary Equity Shares

The Company has only one class of Shares referred to as Equity Shares having par value of '' 10. Each holder of equity shares is 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 in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Optionally Convertible Preference Shares (OCPS)

Convertible at the option of the holder within 18 months from the date of receipt of trading approval from BSE Limited. Equity Shares issued and allotted, pursuant to Conversion will be listed on the Stock Exchange.

The Equity shares issued and allotted, upon conversion shall rank pari passu in all respects including dividend with the existing Equity shares of the Company.

Pursuant to the scheme of arrangement with Amarjyot Chemical Limited, OCPS were supposed to be converted into equity shares or Redeemable Preference Shares (RPS) before February 2022. After obtaining consent from OCPS shareholders for conversion into equity shares, the Company filed a Settlement Application with SEBI on December 19, 2022. Following SEBI’s settlement order dated September 18, 2023, received by the Company on September 20, 2023, 4,05,561 OCPS were converted into equity shares on December 6, 2023. The Company has received both listing and trading approval of these equity shares from BSE and NSE. These converted equity shares are eligible to receive bonus equity shares in a 1:1 ratio, as previously declared.

Nature and Purpose of Reserves Capital Reserve

During amalgamation/merger/acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve.

Capital Redemption Reserve

Transferred to Capital Redemption Reserve on redemption of Redeemable Preference Shares during the year.

General Reserve

General reserve represents amount appropriated out of retained earnings pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained Earning

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders.

Equity instruments through Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity instruments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

Employee Stock Option Plan

The share options outstanding account is used to record the fair value of equity-settled, share-based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium, upon exercise of stock options, and transferred to general reserve on account of stock options not exercised by employees.

1 As at March 31,2024, '' 21,519.58 lakhs (March 31,2023: '' 21,876.58 lakhs) of the total outstanding borrowings were secured by a charge on property, plant and equipment, inventories, receivables and other current assets.

2 The security details of major borrowings as at March 31,2024 is as below:

(i) Foreign currency term loans as on 31 March 2024, amounting to '' 4500.01 lakhs were secured by a charge on immovable & movable properties including movable machinery, spares, tools & accessories, ranking pari passu inter-se. The term loans were drawn in different tranches over the period and were originally payable across 16 equal quarterly instalments starting from May 2020 till February 2025 as mentioned in the table below:

(ii) Rupee term loans as on March 31,2023, amounting to '' 6,504.91 lakhs were secured by a charge on immovable & movable properties including movable machinery, spares, tools & accessories, ranking pari passu inter-se. The term loan was originally payable across 16 equal quarterly instalments starting from January 2022 till September 2026 as mentioned in the table below:

(iii) Working capital facilities from banks as at March 31, 2024 amounting to '' 10608.58 lakhs (March 31, 2023 of '' 11640.40 lakhs) were secured by a first pari passu charge on the stock of raw materials, finished goods, stock in process, consumable stores and book debts of the Company. These credit facilities carry average interest rates in the range of 7.62% to 9.75% (March 31,2023: 5.60% to 9.25%).

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

4 There are no material differences between the quarterly statements of stock filed by the company with banks and the books of accounts.

5 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

7 All the floating rate borrowings are bank borrowings bearing interest rates based on Marginal Cost of Lending Rate (MCLR), Repo rate, T-Bill and LIBOR. Of the total floating rate borrowings as at March 31,2024, '' 4500.01 lakhs (March 31,2023: '' 3,731.28 lakhs) has been hedged using interest rate swaps with contracts covering period of more than one year.

8 f the total floating rate borrowings as at March 31,2024, '' 6141.26 lakhs (March 31,2023: '' 2,683.01lakhs) has been hedged using currency swaps with contracts covering period of more than one year.

(i) The Company has lease contracts for its office premises and godowns with lease term between 1 year to 3 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. The Company also has certain leases of office premises and godowns with lease terms of 12 months or less. The Company applies the ''short-term lease'' recognition exemptions for these leases.

(i) The maturity analysis of lease liabilities are disclosed in Note 38C (ii) ''Liquidity Risk Management''.

(ii) The effective interest rate for lease liabilities is 9%, with maturity between 2022-2024.

(iii) Expense relating to short-term leases are disclosed under the head Miscellaneous Expenses in other expenses (Refer Note 32).

(a) Disaggregate revenue information

Refer Note 35 for disaggregated revenue information. The management determines that the segment information reported is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 "Revenue from contracts with customers".

(b) In case of Domestic Sales, payment terms range from 60 days to 100 days based on geography and customers. In case of Export Sales these are either against documents at sight, documents against acceptance or letters of credit - 60 days to 90 days. There is no significant financing component in any transaction with the customers.

(c) The Company does not provide performance warranty for products, therefore there is no liability towards performance warranty.

(d) The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration

A. Post-employment benefits

(i) Provident Fund (defined contribution plan)

The company has certain defined contribution plans. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan are '' 174.36 lakhs (PY '' 155.42 lakhs).

(ii) Retirement Gratuity (defined benefit plans)

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees’ last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, salary risk and longevity risk.

(i) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.

(ii) Interest risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the value of plan’s debt investments.

(iii) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the plan’s liability.

(iv) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected 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 the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

v) The Company is expected to contribute '' 126.10 lakhs to defined benefit plan obligations funds for the year ended March 31, 2O24.

Expected return on assets is determined by multiplying the opening fair value of the plan assets by the expected rate of return determined at the start of the annual reporting period, taking account of expected contributions & expected settlements during the reporting period.

The Weighted Average Duration of the Plan works out to 9 years.

Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy. There is no compulsion on the part of the Company to fully prefund the liability of the Plan.

B. Other long-term employee benefitsAnnual Leave and Sick Leave

The liability towards compensated absences (annual leave and sick leave) for the year ended March 31, 2024 based on actuarial valuation carried out by using Projected Accrued Benefit Method resulted in increase in liability by '' 3.47 lakhs. (FY 2022-23: increased by '' 54.97 lakhs).

(a) Finance costs incurred on various projects being qualifying assets is capitalised in accordance with Ind AS 23.

(b) On adoption of Ind AS 116 Leases, the Company has recognised Right-of-use assets and created lease obligation representing present value of future minimum lease payments. Unwinding of such obligation is recognised as interest expense.

(a) Basic EPS is calculated by dividing profit for the year attributable to equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year.

(b) Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

35 Stock option schemes i) Terms:

The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility criteria. The options are vested over a period of 1 years, subject to the discretion of the management and fulfillment of certain conditions.

Options can be exercised anytime within a period of 2.5 years from the date of vesting and would be settled by way of issue of equity shares.

Expense on Employee Stock Option Schemes debited to the Statement of Profit and Loss during 2022-23 is '' 66.06 Lakh (previous year: Nil), pursuant to the employee stock option schemes . The entire amount pertains to equity-settled employee share-based payment plans.

The fair value of the options granted during the year has been calculated as per the Black-Scholes Option Pricing Model using the following significant assumptions and inputs: 4,05,561 OCPS have been converted into Equity shares on December 06,2023 pursuant to SEBI settlement order dated September 18, 2023 recejved by the Company on September 20,2023. The Company has received In-principle approval for listing of said Equity shares from NSE on December 22,2023. Diluted El’S figures have been calculated after considering converted OCPS s hares into equity shares being eligible to receive Bonus equity shares in the ratio of 1:1

36 Contingent Liabilities and Commitments (To the extent not provided for) (a) Contingent Liabilities ('' in lakhs)
	March 31, 2024	March 31, 2023
Claims against the Company not acknowledged as debts
GST matters	111.98	111.98
Income tax matters	2,875.37	2,875.37
Labour laws related matters (ESIC)
Stamp Duty	199.87	199.87
Bank Guarantees issued against the notices received from Statutory Authorities.	25.13	9.02
Total	3,212.35	3,196.25

Commitments		('' in lakhs)
	March 31, 2024	March 31, 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	524.15	1,558.34
Total	524.15	1,558.34

37 Segment Information

The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of Directors, who are the Chief Operating Decision Makers. The board responsible for allocating resources and assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e. Chemicals.

(a) Revenue from Type of Product and Services

There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external customers shown under geographical information is representative of revenue based on product and services.

(c) Information about major customers

Ind As 108 Segment Reporting Requires Disclosure of its major customers if revenue from transactions with single external customer amounts to 10 per cent or more of company’s total revenue. Company’s total Revenue of '' 67719.21 Lakhs (FY 2022-23: '' 91,161.80 Lakhs) include sales of '' 10712.09 Lakhs (FY 2022-23: '' 34582.66 Lakhs) to two large customers with whom the company is having long standing Relationship.

Fair value hierarchy

Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities, listed redeemable preference shares for which sufficient observable market data was not available during the year, etc. included in level 3

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level followed is given in the table above.

40 Financial risk management objectives and policies

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s Risk Management framework. The Board has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s Risk Management policies. The Committee reports regularly to the Board of Directors on its activities.

The Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, trade receivables and other receivables and financial liabilities comprise mainly of borrowings, trade payables and other payables.

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses derivative financial instruments, such as cross currency swaps and interest rate swaps to hedge foreign currency risk and interest rate risk exposure . Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate due to changes in market interest rates. Company’s interest rate risk arises from borrowings.

The following table demonstrates the sensitivity on the Company’s profit before tax, to a reasonably possible change in interest rates of variable rate borrowings on that portion of loans and borrowings affected, with all other variables held constant:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts in several currencies and consequently the Company is exposed to foreign exchange risk through its sales outside India, and purchases from overseas suppliers in various foreign currencies. The company also has borrowings in foregin currency. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are affected as the rupee appreciates / depreciates against these currencies. Foreign currency exchange rate exposure is partly balanced by purchase of raw materials and services in the respective currencies.

(iii) Equity Price Risk

The Company’s investments in listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s Board of Directors reviews and approves all equity investment decisions.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets. The Company ensures that sales of products are made to customers with appropriate creditworthiness. Outstanding customer receivables are regularly monitored by the management. An impairment analysis is performed at each reporting date on an individual basis for major customers. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

Refer footnotes (c) and (d) below note no. 12 for ageing of trade receivables and movement in credit loss allowance.

C. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable losses. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company have access to undrawn lines of committed borrowing/facilities. The Company invests its surplus funds in bank fixed deposits and in mutual funds, which carry no or low market risk. The company consistently generates sufficient cash flows from operations or from cash and cash equivalents to meet its financial obligations including lease liabilities as and when they fall due.

D. 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 shareholders. The primary objective of the Company’s capital management is to maximise the shareholder value, safeguard business continuity and support the growth of the Company. The Company manages its capital structure and makes suitable adjustments in light of changes in economic conditions.

41 Additional regulatory information required by schedule III to the Companies Act, 2013

(a) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(b) The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(c) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(d) Utilisation of borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

- Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any 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:

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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(e) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(f) The Company has not traded or invested in crypto currency or virtual currency during the year.

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Mar 31, 2023

3.10 Provisions, Contingent Liabilities and Contingent Assets

Provisions

The Company recognizes a provision when it has a present legal or constructive obligation as a result of past events, it is likely that an outflow of resources will be required to settle the obligation; and the amount has been reasonably estimated. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost.

Contingent Liabilities

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company

or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

Contingent Assets

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefit will arise.

When an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

Onerous Contracts:

A provision for onerous contracts is measured at the present value of the lower expected costs of terminating the contract and the expected cost of continuing with the contract. Before a provision is established, the Company recognizes

impairment on the assets with the contract.

3.11 Taxes:

The tax expenses comprise of current tax and deferred income tax charge or credit. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income or in Equity. In which case, the tax is also recognised in Other Comprehensive Income or Equity.

Current Tax:

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/ appeals. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set-off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are recognised for all taxable temporary differences at the reporting date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are recognised for all taxable temporary differences to the extent that is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Unrecognized deferred tax assets are reassessed at each reporting and are recognized to the extent that it has become probable that future taxable profits will be available against which the deferred tax assets to be recovered.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and

liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is

recorded in other comprehensive income or in equity along with the tax as applicable.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set-off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

3.12 Revenue Recognition:

Revenue from Operations:

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

To recognise revenues, the Company applies the following five step approach in accordance with Ind AS 115:

(a) identify the contract with a customer

(b) identify the performance obligations in the contract

(c) determine the transaction price

(d) allocate the transaction price to the performance obligations in the contract and

(e) recognise revenues when a performance obligation is satisfied.

Sale of Goods:

The Company recognises revenue from sale of goods measured upon satisfaction of performance obligation which is at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. Depending

on the terms of the contract, which differs from contract to contract, the goods are sold on a reasonable credit term. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, rebates,

scheme allowances, price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government.

Sale of Services:

Revenue from services is recognised when the performance obligation is met and the right to receive income is

established.

Interest Income:

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the

gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example prepayment, extension and similar options) but does not consider the expected credit losses. Interest income is included in other income in the statement of profit and loss.

Dividend Income:

Dividend income is recognized when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

Export Incentives:

Eligible export incentives are recognised in the year in which the conditions precedent are met and there is no significant

uncertainty about the collectability.

Other Income:

Revenue with respect to Other Operating Income and Other Income including insurance and other claims are recognised

when a reasonable certainty as to its realisation exists.

3.14 Leases:

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind AS 116.

As a Lessee:

The Company assesses, whether the contract is, or contains, a lease, at its inception. A contract is, or contains, a lease if the contract conveys the right to -

(a) control the use of an identified asset,

(b) obtain substantially all the economic benefits from use of the identified asset, and

(c) direct the use of the identified asset

The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to extend the lease, where the Company is reasonably certain to exercise that option.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term leases) and low-value assets. For these short term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease

payments made at or before the inception date of the lease, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The Right-of-Use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the Right-of-Use asset or the end of the lease term. The estimated useful lives of

Right-of-Use assets are determined on the same basis as those of property, plant and equipment. In addition, the Right-

of-Use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

For lease liabilities at the commencement of the lease, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate that the Company would have to pay to borrow funds, including the consideration

of factors such as the nature of the asset and location, collateral, market terms and conditions, as applicable in a similar economic environment. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.

Lease payments included in the measurement of the lease liability comprises fixed payments, including amounts expected

to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option. The lease liability is subsequently measured at amortised cost using the effective interest

method.

Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period. Finance charges are recognised as finance costs in the statement of profit and loss.

As a lessor:

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

3.15 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

In determining the amount of borrowing costs eligible for capitalization, any income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for

capitalisation.

3.16 Foreign Currency Transactions:

Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at the date of the transaction. At each Balance Sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of initial transactions. Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date are recognised in profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

3.17 Earnings Per Share:

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

shares outstanding during the period and for all periods presented is adjusted for events such as bonus issue; bonus

element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity

shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

3.18 Exceptional items:

When items of income or expense within the statement of profit & loss from ordinary activities are of such size, nature

or incidence that their disclosure is relevant to explain the performance of the Company for the period, the nature and amount of such material items are disclosed separately as exceptional items.

3.19 Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity to another entity. The Company determines the classification of its financial assets and liabilities at initial recognition.

Initial Recognition:

Financial assets and/or financial liabilities are recognised when the Company becomes party to a contract embodying the related financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and where such values are different from the transaction values, at fair values. T ransaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value

through profit or loss are added to or deducted from as the case may be, from the fair value of on initial recognition.

Classification and Subsequent Measurement of Financial Assets:

The Company classifies financial assets, subsequently at amortised cost, Fair Value through Other Comprehensive Income ("FVTOQ") or Fair Value through Profit or Loss ("FVTPL") on the basis of following:

¦ the entity''s business model for managing the financial assets and

¦ the contractual cash flow characteristics of the financial asset.

(a) Financial Assets measured at Amortised Cost:

A Financial Asset is measured at amortised Cost if it is held within a business model whose objective is to hold

the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represent solely payments of principal and interest on the principal amount outstanding.

(b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI):

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding.

(c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL):

FVTPL is a residual category for financial assets. Any financial asset, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

Classification and Subsequent Measurement of Financial Liabilities:

(a) Financial liabilities measured at Fair Value Through Profit or Loss (FVTPL):

Financial liabilities are classified as FVTPL when the financial liability is held for trading or is a derivative (except for effective hedge) or are designated upon initial recognition as FVTPL. Gains or Losses, including any interest expense on liabilities held for trading are recognised in the Statement of Profit and Loss.

(b) Other Financial liabilities:

Other financial liabilities (including loans and borrowings, bank overdraft and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and amounts paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period,

to the amortised cost on initial recognition.

Interest expense (based on the effective interest method), foreign exchange gains and losses, and any gain or loss on derecognition is recognised in the Statement of Profit and Loss.

For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Debt and Equity Instruments:

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue

costs.

Equity Investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for

trading are classified as at FVTPL. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

Investments in subsidiaries:

Investments in subsidiaries are 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 subsidiaries, the difference between net disposal proceeds and

the carrying amounts are recognised in the statement of profit and loss.

De-recognition of Financial Instruments:

The Company derecognises a Financial Asset when the contractual rights to the cash flows from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for de-recognition under Ind AS 109. In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

A Financial liability (or a part of a financial liability) is derecognised from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

The difference between the carrying amount of the financial liability de-recognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.

Impairment of Financial Assets:

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment

of all Financial Assets subsequent to initial recognition other than financial assets measured at fair valued through profit and loss (FVTPL). For Trade Receivables and all lease receivables resulting from transactions within the scope of Ind AS 116 the Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed. For other financial assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk since its initial recognition. If there is significant increase in credit risk since its initial recognition full lifetime ECL is used. The impairment losses and reversals are recognised in Statement of Profit and Loss.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are

possible within 12 months after the reporting date. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

Offsetting of Financial Instruments:

Financial assets and financial liabilities are offset and presented on net basis in the balance sheet when there is a legally enforceable right to set-off the recognised amounts and it is intended to either settle them on net basis or

to realise the asset and settle the liability simultaneously.

Fair Value of Financial Instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis and available quoted market prices, where applicable. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.

Financial instruments by category are separately disclosed indicating carrying value and fair value of financial assets and liabilities. For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the carrying amounts approximate fair value due to the short maturity of these instruments.

Derivative Financial Instruments:

Derivative financial instruments such as forward contracts, option contracts and cross currency swaps, to hedge its foreign currency risks are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised in the Statement of Profit and Loss in the period when they arise.

Rights, preferences and restrictions attached to equity shares Ordinary Equity Shares

The Company has only one class of Shares referred to as Equity Shares having par value of H10. Each holder of equity shares is 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 in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Optionally Convertible Preference Shares (OCPS)

Convertible at the option of the holder within 18 months from the date of receipt of trading approval from BSE Limited. Equity Shares issued and allotted, pursuant to Conversion will be listed on the Stock Exchange.

The Equity shares issued and allotted, upon conversion shall rank pari passu in all respects including dividend with the existing Equity shares of the Company.

17 Other Equity (Contd.)

Transferred to Capital Redemption Reserve on redemption of Redeemable Preference Shares during the year.

General Reserve

General reserve represents amount appropriated out of retained earnings pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained Earning

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders.

Equity instruments through Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity instruments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

Employee Stock Option Plan

The share options outstanding account is used to record the fair value of equity-settled, share-based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium, upon exercise of stock options, and transferred to general reserve on account of stock options not exercised by employees.

A. Post-employment benefits

(i) Provident Fund (defined contribution plan)

The company has certain defined contribution plans. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan are

H174.36 lakhs (PY H155.42 lakhs).

(ii) Retirement Gratuity (defined benefit plans)

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in

continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees'' last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, salary risk and longevity risk.

(i) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government bond yields. If the return on plan asset is below this rate, it will create a

plan deficit.

(ii) Interest risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the value of plan''s debt investments.

(iii) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the plan''s liability.

(iv) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Details of defined benefit obligations and plan assets (Gratuity)

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows :

(v) The Company is expected to contribute H126.10 lakhs to defined benefit plan obligations funds for the year

ended March 31, 2024.

(vi) Expected return on assets is determined by multiplying the opening fair value of the plan assets by the

expected rate of return determined at the start of the annual reporting period, taking account of expected contributions & expected settlements during the reporting period.

(vii) The Weighted Average Duration of the Plan works out to 10 years.

(viii) Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy. There is no compulsion on the part of the Company to fully prefund the liability of the Plan.

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk

Management framework. The Board has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s Risk Management policies. The Committee reports regularly to the Board of Directors on

its activities.

The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, trade receivables and other receivables and financial liabilities comprise mainly of borrowings, trade payables and other payables.

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s overall risk management

focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses derivative financial instruments, such as cross currency swaps and interest rate swaps to hedge foreign currency risk and interest rate risk exposure . Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial

instruments affected by market risk include borrowings, investments, trade payables, trade receivables and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate due

to changes in market interest rates. Company''s interest rate risk arises from borrowings.

The following table demonstrates the sensitivity on the Company''s profit before tax, to a reasonably possible change in interest rates of variable rate borrowings on that portion of loans and borrowings affected, with all other variables held constant:

to customers with appropriate creditworthiness. Outstanding customer receivables are regularly monitored by the

management. An impairment analysis is performed at each reporting date on an individual basis for major customers. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

Refer footnotes (c) and (d) below note no. 12 for ageing of trade receivables and movement in credit loss allowance.

C. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable losses. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company have access to undrawn lines of committed borrowing/facilities. The Company invests its surplus funds in bank fixed deposits and in mutual funds, which carry no or low market risk. The company consistently generates sufficient cash flows from operations or from cash and cash equivalents to meet its financial obligations including lease liabilities as and when they fall due.

41 Additional regulatory information required by schedule III to the Companies Act, 2013

(a) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(b) The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(c) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(d) Utilisation of borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

- Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf

of the Company (Ultimate Beneficiaries) or

- Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any 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:

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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(e) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961

(such as search or survey), that has not been recorded in the books of account.

(f) The Company has not traded or invested in crypto currency or virtual currency during the year.

42 Recent Pronouncements

A. Amendment to Ind AS 109 “Financial Instruments" and Ind AS 107 "Financial Instruments: Disclosures" -Interest rate Benchmark Reform Phase 2

The amendment focuses on the potential financial reporting issues that may arise when interest rate benchmarking reforms are either reformed or replaced. The key reliefs provided by the Phase 2 amendments are:

(a) Changes to contractual cash flows - When changing the basis for determining contractual cash flows for financial assets and liabilities (including lease liabilities), the reliefs have the effect that the changes that are required by an interest rate benchmark reform will not result in an immediate gain or loss in the profit and loss statement.

(b) Hedge accounting - The hedge accounting reliefs will allow most Ind AS 39 or Ind AS 109 hedge relationships that are directly affected by IBOR reform to continue. However, additional ineffectiveness might need to be recorded.

The Company does not expect the amendment to have any significant impact on its financial statements.

B. Amendment to Ind AS 103 "Business Combination" - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103 - Business Combinations. The Company does not expect the amendment to have any significant impact on its financial statements.

C. Amendment to Ind AS 16 "Property, Plant and Equipment" - Proceeds before intended use

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of

property, plant, and equipment. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

D. Code on Social Security, 2020 - Employee benefits during employment and post-employment

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment

received Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders'' suggestions. However, the date on which the Code will come into effect has not been notified. 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.

---

Mar 31, 2021

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected 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 the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company is expected to contribute '' 87.67 lakhs to defined benefit plan obligations funds for the year ended March 31, 2022.

Expected return on assets is determined by multiplying the opening fair value of the plan assets by the expected rate of return determined at the start of the annual reporting period, taking account of expected contributions & expected settlements during the reporting period.

The Weighted Average Duration of the Plan works out to 9 years.

Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested. The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy. There is no compulsion on the part of the Company to fully prefund the liability of the Plan.

Information about major customers

Ind As 108 Segment Reporting Requires Disclosure of its Major customers if Revenue from transactions with single external customer amounts to 10 per cent or more of Company''s total Revenue. Company’s total Revenue of '' 57,423.86 Lakhs (P.Y. '' 58,357.66 Lakhs) include sales of '' 13,765.97 Lakhs (P.Y. '' 11,053.28 Lakhs) to one large customer with whom the Company is having long standing Relationship.

. DIVIDEND

The Board in its meeting held on 8^th Nov, 2020 has declared an interim dividend of '' 5/- per equity share i.e. 50% of nominal value of '' 10/- each for the financial year 2020-21. The interim dividend shall be the final dividend for the year. The dividend has resulted in an outlay of '' 678.83 Lakhs (P.Y. '' 2,636.37 Lakhs including DDT).

The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is in place and available on the website of the Company https://www.valiantorganics.com/investors.php?action=showSubcat&id=3

. CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility Expenditure [Refer Para 11.5 of the GN on Division II - Ind AS Schedule III to the Companies Act 2013]

CSR Amount required to be spent as per section 135 of the companies Act, 2013 read with schedule VII thereof by the Company During the year is '' 280.38 Lakh (Previous Year '' 165.81 Lakh)

. FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies

The Company''s principal financial liabilities, comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company''s principal financial assets, include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses derivative financial instruments, such as forward contracts, option contracts and cross currency swaps to hedge foreign currency risk and interest rate risk exposure . Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

.1 market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk comprise three types of risks: foreign currency risk, interest rate risk and liquidity risk. Financial instruments affected by foreign currency and market risk primarily include trade receivables, trade payables and cash and cash equivalents.

.1.1 interest rate risk

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

According to the Company, interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is done assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts in several currencies and consequently the Company is exposed to foreign exchange risk through its sales outside India, and purchases from overseas suppliers in various foreign currencies. The Company has also borrowings in foregin currency. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are affected as the rupee appreciates / depreciates against these currencies. Foreign currency exchange rate exposure is partly balanced by purchase of raw materials and services in the respective currencies.

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets. The Company ensures that sales of products are made to customers with appropriate creditworthiness. Outstanding customer receivables are regularly monitored by the management. An impairment analysis is performed at each reporting date on an individual basis for major customers. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk. As per Policy receivables are classified into different buckets based on the overdue period ranging from more than 180 days to more than 3 years. There are different provisioning norms for each bucket which are ranging from 1% to 100%.

48.3 LIQUIDITY RISK

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable losses. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Group consistently generates sufficient cash flows from operations or from cash and cash equivalents to meet its financial obligations including lease liabilities as and when they fall due.

49. CAPITAL MANAGEMENT Risk management

For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity shareholders. The primary objective of the Company’s capital management is to maximise the shareholder value, safeguard business continuity and support the growth of the Company. The Company manages its capital structure and makes suitable adjustments in light of changes in economic conditions.

TRANSITION TO IND AS

These are the first Standalone Financial Statements of the Company prepared in accordance with Ind AS.

The Accounting Policies set out in Note 3 have been applied in preparing the Financial Statements for the year ended March 31, 2021, the comparative information presented in these Financial Statements for the year ended March 31, 2020 and in the preparation of an opening Ind AS Balance Sheet as at April 01, 2019 (the date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (IGAAP). An explanation of how the transition from IGAAP to Ind AS has affected the standalone financial position, financial performance and cash flows of the Company is set out in the following tables and notes:

Ind AS optional exemptionsDeemed cost for property, plant and equipment and intangible assets:

The Company has elected to continue with the carrying value of all of its plant and equipment, capital work-in- progress and intangible assets recognised as of 1^st April, 2019 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

Determining whether an arrangement contains a lease:

The Company has applied Ind AS 19 Determining whether an Arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing on that date.

Investments in subsidiaries, associates and joint ventures

Ind AS 101 permits a first-time adopter to measure it''s investment, at the date of transition, at cost determined in accordance with Ind AS 27, or deemed cost, The deemed cost of such investment shall be it''s fair value at the date of transition to Ind AS of the Company, or IGAAP carrying amount at that date. The Company has elected to measure its investment in subsidiaries at cost.

Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis ofthe facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity instruments.

past business combinations:

Ind AS 103 (Business Combinations) has not been applied retrospectively to business combinations that occurred prior to 1^st April, 2019. Use of this exemption means that in the opening Balance Sheet, goodwill/capital reserve and other assets and liabilities acquired in previous business combinations remain at the previous GAAP carrying values.

ind As Mandatory ExceptionsClassification and measurement of financial assets:

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Derecognition of financial assets and liabilities:

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after 1^st April, 2019 (the transition date).

Estimates

Estimates in accordance with Ind AS at the transition date shall be consistent with estimates made for the same date in accordance with IGAAP (after adjustments to reflect any difference in Accounting Policies) unless there is objective evidence that those estimates were in error.

The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous IGAAP:

- Investment in equity instruments carried at FVTPL or FVTOCI; and

- Impairment of financial assets based on expected credit loss model.

Reconciliations between previous IGAAp and ind As

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous IGAAP to Ind AS.

Notes on Reconciliation Fair valuation of investments

Under the previous IGAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVTOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2020.

Right of Use (ROU) Assets, Security Deposits and Other Income

Under IGAAP, interest free deposits were recognised at cost i.e. the amount actually paid. Under Ind AS, such deposits are recognised at fair value on initial recognition and at amortised costs on subsequent measurement. Accordingly, non-interest bearing security deposit paid towards ROU asset is measured at the present value and the remaining amount to be amortised over the life of the ROU Asset is capitalised as a part of Property, Plant & Equipment. Notional Interest on such security deposits is accrued on a yearly basis at the effective internal rate of return.

Depreciation has been created on Right of Use assets on the basis of lease terms. Accordingly, depreciation of '' 14.74 lakhs (April 1, 2019 - '' Nil lakhs) have been charged against right of use assets with a corresponding adjustment to retained earnings.

| Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous IGAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2020 increased by '' 32.51 lakhs. There is no impact on the total equity as at March 31, 2020.

deferred Tax Liabilities (net)

IGAAP requires deferred tax accounting using the income statement approach, which is difference between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which is calculated on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. In addition, the various transitional adjustments lead to temporary differences. Deferred Tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or other comprehensive income on the date of transition.

Retained Earnings

Retained earnings as at April 01, 2019 have been adjusted consequent to the above Ind AS transition adjustments.

(vi) Other Comprehensive Income

Under Ind AS, all items of income and expenses recognised in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit or loss, but are shown in the Statement of Profit and Loss as ''Other Comprehensive Income'' which includes remeasurement of defined benefit plans and fair value gain/(loss) on FVTOCI equity instruments. The concept of Other Comprehensive Income did not exist under IGAAP.

51. RECENT PRONOUNCEMENTS

On March 24, 2021, the Ministry of Corporate Affairs (""MCA"") through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021.

Key amendments relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015 are:

Balance Sheet:

• Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly distinguished as current or non-current.

• Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the current reporting period.

• Specified format for disclosure of shareholding of promoters.

• Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.

• If a Company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.

• Specific disclosure under ‘additional regulatory requirement’ such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of Company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held, etc.

Statement of profit and Loss:

• Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head ‘additional information’ in the notes forming part of the financial statements.

The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.

52. new accounting standards issued but not effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 01, 2021.

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Mar 31, 2018

1.1 22,24,030 Equity Shares (Previous year Nil) were issued to the Shareholders of Abhilasha Texchem Ltd. pursuant to its Merger with the Company.

1.2 Bonus Shares Issued during past five years 32,76,288 Equity shares of Rs.10/- each issued as bonus shares in F.Y. 2015-16

1.3 Buy back of Shares during past five years N.A.

1.4 Terms / Rights attached to Equity Shares

The Company has only one class of Shares referred to as Equity Shares having a par value of Rs. 10. Each holder of equity shares is entitiled 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 in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all prefential amounts. the distribution will be in proportion to the number of equity shares held by the shareholder.

Note: Working Capital loan of Rs. 13,00,00,000/- (Previous Year Rs. 13,00,00,000) from Citi Bank is secured by exclusive charge on present and future stocks, book debts, fixed assets, hypothecation of stock and book debts of the respective activities and collateral security is provided by creating equitable mortgage of the properties held by the company. It is also personally guaranteed by the Directors of the company.

Disclosure pursuant to Accounting Standard - 15 (Revised) ''Employee benefits''

Defined Contribution Plans amounting to''18,10,041/- (P.Y.Rs.13,01,602/-) towards Providend Fund is recognized as an expense & included in “Contribution to Providend and other funds” in the Profit and Loss Account. The figures for current as well as previous year include that of Abhilasha unit as well.

Defined benefits plan and short term employment benefits.

Gratuity (Defined benefits plan)

The Company has a defined benefit gratuity plan. Every employee who has completed five (5) years of service gets a gratuity on death or resignation or retirement at 15 days of Salary (last drawn salary) for each completed year of service. The gratuity has been provided on the basis of valuation provided by the actuary, since gratuity has not been funded, no information as to assets has been disclosed. Further liability at the close of the year has been charged to profit & loss account.

Leave Encashment (Short term employment benefits)

Payment of all accumulated leave balance has been made at the year end.

Gratuity is provided in the books on the basis of following assumptions :

* For calculation of EPS we have considered, 22,24,030 Equity shares alloted on 15th March, 2018 for merger of Abhilasha Tex-Chem Limited into the company from the Appointed date i.e 1st July, 2016

2 Related Party Disclosure under Accounting Standard :

I Following are the Subsidiaries of the Company as defined in para 3(a) of Accounting Standard - 18.

N.A.

II Following are the Associates of the Company as definded in para 3(b) of the Accounting Standard - 18.

N.A.

III Following are the Enterprises / Firms over which controlling Individuals / Key Management Personnel, of the Company along with their relatives, have significant influence as definded in para 3(e) of the Accounting Standard - 18.

N.A.

IV Following are the individuals who with their relatives as defined in para 3(c) and 3(d) of the Accounting Standard - 18 own Directly / Indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.

1. Arvind K. Chheda CFO / Wholetime Director

2. Hemchand L. Gala CEO / Managing Director

3. Vishnu J. Sawant Wholetime Director

4. Mahek M. Chheda Wholetime Director

5. Mahesh M. Savadia Wholetime Director

3 Related Party Disclosure under Accounting Standard :

I Following are the Subsidiaries of the Company as defined in para 3(a) of Accounting Standard - 18.

N.A.

II Following are the Ventures or the Investing Parties as definded in para 3(b) of the Accounting Standard - 18. N.A.

III Following are the Enterprises / Firms over which controlling Individuals / Key Management Personnel, of the Company along with their relatives, have significant influence as definded in para 3(e) of the Accounting Standard - 18.

N.A.

IV Following are the individuals who with their relatives as defined in para 3(c) and 3(d) of the Accounting Standard - 18 own Directly / Indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.

1. Arvind K. Chheda CFO / Wholetime Director

2. Hemchand L. Gala CEO / Managing Director

3. Vishnu J. Sawant Wholetime Director

4. Mahek M. Chheda Wholetime Director

5. Mahesh M. Savadia Wholetime Director

(A) Details relating to parties referred to in items I, II and III above.

A = Associate K = Key Management Personnel S = Significant Influence R = Relative of Key Management Personnel

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Mar 31, 2017

Segmental capital employed:

Fixed assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.

1. Related Party Disclosure under Accounting Standard :

2. Following are the Subsidiaries of the Company as defined in para 3(a) of Accounting Standard -18.

N.A.

3. Following are the Associates of the Company as defended in para 3(b) of the Accounting Standard -18.

N.A.

4. Following are the Enterprises / Firms over which controlling Individuals / Key Management Personnel, of the Company along with their relatives, have significant influence as defined in para 3(e) of the Accounting Standard -18.

N.A.

5. Following are the individuals who with their relatives as defined in para 3(c) and 3(d) of the Accounting Standard -18 own Directly / Indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.

6. Arvind K. Chheda CFO / Whole time Director

7. Hemchand L. Gala CEO / Managing Director

8. Vishnu J. Sawant Whole time Director

9. Vicky H. Gala Director

10. Jeenal K. Savla Director

11. Dhirajlal D. Gala Director

12. Related Party Disclosure under Accounting Standard :

13. Following are the Subsidiaries of the Company as defined in para 3(a) of Accounting Standard -18.

N.A.

14. Following are the Ventures or the Investing Parties as defined in para 3(b) of the Accounting Standard -18.

N.A.

15. Following are the Enterprises / Firms over which controlling Individuals / Key Management Personnel, of the Company along with their relatives, have significant influence as defended in para 3(e) of the Accounting Standard - 18.

N.A.