Terms/rights attached to equity shares

The Company has only one class of equity shares referred to as equity shares having par value of T 10 per share. Each holder of equity share is entitled to one vote per share. The Company pays the 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 the equity shares will be entitled to receive remaining assets of the Company,after distribution of all preferential amounts and distribution will be in proportion to the number of equity shares held by the shareholders

The nature of reserves are as follows:

(i) Securities Premium : Amount subscribed for share capital in excess of nominal value. The reserve can be utilised only for limited purposes in accordance with the provisions of Companies Act, 2013.

(ii) General Reserve : General Reserve is used from time to time to transfer profit from retained earnings for Appropriation purposes.

(iii) Capital Reserve : This reserve is not available for capitalisation / declaration of dividend and Share buy-back.

(iv) Retained Earnings : Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss/(gain) on defined benefit plans,net of taxes that will not be reclassified to profit and loss. The amount can be utilised by the Company to distribute as dividend to its equity shareholders.

Terms and Conditions of Borrowing including current maturities :

a) External Commercial Borrowings (ECB) carrying interest rate of 1.04% per annum,is repayable in equal semi-annual installments of

? 1,007.46 lakhs each commencing from on 29^th November, 2019

b) Repayment terms of Rupee Term Loan from Bank:

i. ? 2,940.21 lakhs carrying interest rate of 9.45% per annum, is repayable in equal quarterly installments of ? 208.30 lakhs commencing from 30^th June, 2026

ii. ? 4,408.97 lakhs carrying interest rate of 9.45% per annum, is repayable in equal quarterly installments of ? 312.50 lakhs commencing from 30^th June, 2026

iii. ? 3,466.67 lakhs carrying interest rate of 7.90% per annum, is repayable in equal quarterly installments of ? 266.67 lakhs commencing from 30^th October, 2025

iv. ? 7,342.56 lakhs carrying interest rate of 7.90% per annum, is repayable in equal quarterly installments of ? 564.81 lakhs commencing from 1^st October, 2025

c) The ECB is secured by the first pari-pasu charge on the fixed movable assets (other than current assets) and registered mortgage on

immovable properties of the Company by way of first pari-passu charge.

d) Rupee Term Loan of C 7,342.56 lakhs is secured by first pari-passu charge on all moveable fixed assets of the Company, both present and future and second pari passu on all current assets of the Company, both present and future and registered mortgage of immovable properties of the Company by way of first pari passu charge, C 3,466.67 lakhs is secured by the first pari-passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the Company, C 7,349.18 lakhs is secured by exclusive first pari passu charge on all moveable fixed assets of the Company and second pari passu charge on all inventory, books debts and other current assets of the Company, both present and future (both pertaining to Plasticizer plant) and exclusive registered mortgage of immovable property of the Company by way of first pari passu charge.

e) Of the above, Rupee Term Loan from bank of C 14,691.74 lakhs are further secured by Personal Guarantee of two Directors of the Company. However, one of the guarantor Shri M M Dhanuka ceased to be Director effective 13^th February, 2025 and passed away on 19^th April, 2025. Notwithstanding this, the personal guarantee remains valid and binding on his estate till such time the lenders relinquish or agree otherwise. The Rupee Term Loan of C 3,466.67 lakhs is further secured by personal guarantee of one Director of the Company.

Bank borrowings are secured for present and future, first pari passu charge on the whole of the current assets of the Company and second pari passu charge on the movable properties of the Company amongst Working Capital lenders under consortium banking arrangement. The loan is also secured by mortgage of immovable properties of the Company by way of second charge. Bill discounting Facility is secured by respective book debts. The above loans are further secured personal Guarantee of two Directors of the Company. However, one of the guarantor Shri M M Dhanuka ceased to be Director effective 13^th February, 2025 and passed away on 19^th April, 2025. Notwithstanding this, the personal guarantee remains valid and binding on his estate till such time the lenders relinquish or agree otherwise.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

l The sensitivity analysis above has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

m The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at 31^st March, 2026 and 31^st March, 2025. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

n Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

o Expected rate of return on the plan assets is based on the average long-term rate of return expected on investments of the Fund during the estimated term of the obligations.

p The salary escalation rate considered in the actuarial valuation is arrived after taking into consideration the seniority, the promotion, inflation and other relevant factors.

iii. Leave Encashment

In respect of compensated absences, accrual is made on the basis of a year-end actuarial valuation as at balance sheet date. The actuarial valuation is done as per Project unit credit method.

The leave obligation cover the Company's liability for earned leave. The amount of the provision of C 650.59 lakhs (Previous year C 611.22 lakhs) is presented as non-current and C 107.34 lakhs (Previous year C 87.18 lakhs) is presented as current. The Company has recognised C 122.94 lakhs (Previous year C 138.68 lakhs) for compensated absences in the Statement of Profit and Loss.

43 FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of material accounting policies, including the criterial for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in significant accounting policies to the standalone financial statements.

a. Fair Value Hierarchy

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

The carrying amount of cash and bank balances, trade receivables, loans, trade payables and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to level 3, as described below :

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

Level-2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level-3 : Techniques which use inputs that have a significant effect on the recorded Fair Value that are not based on observable market data.

b. Financial Risk Management Policies and objectives:

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set by the Board.

i. Market Risk

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 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 foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures and borrowings.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates.

Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas, purchases from overseas suppliers in various foreign currencies and borrowings in foreign currencies.

The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivatives, Cash and cash equivalents, bank deposits and other financial assets.

ii. Price Risk

The Company is mainly exposed to the price risk due to its investment in mutual funds. In order to manage its price risk arising from investment in mutual funds, the Company diversifies its portfolio based on past performance. The impact of price risk with respect to investment in mutual fund is insignificant.

LIQUIDITY RISK

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities. The Company monitors the net liquidity position through forecasts on the basis of expected cash flows.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iii. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. Refer Note 52 for ageing of accounts receivables.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month's operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does not foresee any credit risks on deposits with regulatory authorities.

45 EVENTS AFTER REPORTING PERIOD

PROPOSED DIVIDEND:

The Board at its meeting held on 18^th May, 2026 considered and recommended a dividend @ T 5 per share of T 10 each for the financial year 2025-26 amounting to T 1,539.74 lakhs. (Previous Year T 10.00 per Share amounting to T 3,079.49 lakhs taken as deduction under Reserves & Surplus) subject to approval of the members of the company in the ensuing Annual General Meeting.

46 SEGMENT REPORTING

The Company has disclosed segment information in the Consolidated Financial Statement in accordance with Ind AS -108 on 'Operating Segment'.

47 CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximize the shareholder value and to ensure the Company's ability to continue as a going concern.

The Company has distributed dividend to its shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of non-current borrowing which represents external commercial borrowing and term loans from banks less cash and cash equivalents. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

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

No changes were made in the objectives, policies or processes for managing capital during the years ended 31^st March, 2026 and 31^st March, 2025.

49 There was no impairment loss on non- financial assets on the basis of review carried out by the management in accordance with the Indian Accounting Standard (Ind AS -36) " Impairment of Assets

50 The company had elected to exercise the option permitted under section 115 BAA of the Income Tax Act, 1961 accordingly the company has recognised Provision for Income Tax from Financial Year 2020-21.

51 Pursuant to the Notification issued by the Ministry of Labour and Employment, multiple existing labour legislations have been consolidated in to a unified framework comprising four Labour Codes collectively referred to as the 'New Labour Codes' which became effective from 21^st November, 2025. The Company has reassessed its employee benefit obligations in accordance with the revised definition of wages, the resulting financial implications not being material have been appropriately recognised in the financial statement. The Management will continue to track and evaluate the impact of the rules notified by the central/ state Government post 31^st March, 2026 and consider the appropriate accounting effect in the relevant period, if any.

57 RESEARCH & DEVELOPMENT

Research & Development Expenditure of ? 93.31 lakhs (Previous Year ? 89.85 lakhs) has been accounted for in the respective heads of the Statement of Profit and Loss

58 OTHER STATUTORY INFORMATION:

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

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

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

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

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

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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

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

vii. The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii. The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), are held in the name of the Company.

ix. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

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

xi. The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such borrowings were taken.

xii. The Company have filed quarterly statement to banks against borrowings on security of Current Assets which are as per books of accounts.

59 PREVIOUS YEAR COMPARATIVES

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.