2.6 Foreign Currency Transactions & Translations

The functional currency of the Company is Indian rupee.

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Foreign
currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance
sheet date.

Exchange rate differences resulting from foreign currency transactions settled during the period including year-
endtransalation of assets & liabilities are recognised in the statement of profit and loss.

Non-monetary assets which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of initial transation.

Changes in fair value of forward contracts designated as fair value hedge are recognised in the statement of profit and
loss.

2.7 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use. Interest income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation. Capitalization of borrowing cost is suspended and
charges to the statement of Profit and Loss during extended periods whenactive development activity on the
qualifying assets is interrupted.All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

2.8 Government grants

(i) Government grants in respect to manufacturing units located in developing regions :

The Company is entitled to various incentives from government authorities in respect of manufacturing units located
in developing regions. The Company accounts for its entitlements on accrual basis on approval of the initial claim by
the relevant authorities and there is reasonable assurance that the grants will be received.

(ii) Government grants in respect of additional Capital Expenditures :

Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire
capital assets is accounted for as deferred income. The grant is recognised as income over the life of a depreciable
asset by accounting deferred income in the Statement of Profit and Loss on a systematic and rational basis over the
useful life of the asset.

(iii) Export Incentives

Export incentives under various schemes are accounted for in the year of export.

2.9 Employee benefits

(1) Defined Contribution Plan:

Payments to defined contribution retirement benefit schemes viz. Company's Provident Fund Scheme and
Superannuation Fund are recognised as an expense when the employees have rendered the service entitling them to
the contribution.

(2) Defined Benefit Plan:

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on
plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit
recognised in other comprehensive income in the period in which they occur.

Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will
not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);

• net interest expense or income; and

• remeasurement.

(i) Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on
termination of employment of an amount equivalent to 15/26 days salary payable for each completed year of service.
Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits
payable in future based on an independent actuarial valuation. The Company has taken a Group Gratuity cum Life
Assurance Scheme with Life Insurance Corporation for future payment of gratuity to the eligible employees.

(ii) Compensated Absences:

The Company provides for the encashment of compensated absences with pay subject to certain rules. The
employees are entitled to accumulate compensated absences subject to certain limits, for future encashment.
Accumulated leave, which is expected to be utilised within the next twelve months, is treated as short-term employee
benefit and the accumulated leave expected to be carried forward beyond twelve month is treated as long-term
employee benefit which are provided based on the number of days of un utilised compensated absence on the basis
of an independent actuarial valuation.

2.10 Taxation

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity, respectively. Income tax expense represents the sum of the tax
currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as
reported in the statement of profit or loss and other comprehensive income/statement of profit or loss because of
items of income or expense that are taxable or deductible in other years and items that are never taxable or
deductible.

The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end
of the reporting period.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are
recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and
their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at
the time of the transaction.

Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable
income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority
and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

2.11 Property, Plant and Equipment

Property, plant and equipment held for use in production or supply of goods or services or for administrative purposes
are stated at cost less accumulated depreciation/amortization less accumulated impairment, if any. The cost of fixed
assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the
asset ready for its intended use, and interest on borrowings attributable to acquisition of qualifying fixed assets up to
the date the asset is ready for its intended use.

Capital work-in-progress for production, supply of administrative purposes is carried at cost less accumulated
impairment loss, if any, until construction and installation are complete and the asset is ready for its intended use.

Depreciation is recognized (other than on capital work-in-progress) on a straight line basis over the estimated useful
lives of assets in respect of property plant & equipment & computers acquired after 1st April 2006. Property plant &
equipment including non factory building furniture fixutures & vehicles acquired prior to 1st April 2006 are depreciated
under WDV Method at the rates prescribed under Schedule II of Companies Act, 2013. Depreciation on assets
acquired/ purchased, sold/discarded during the year is provided on a pro-rata basis from the date of each addition till
the date of sale/retirement.

The economic useful lives of assets is assessed based on a technical evaluation, taking into account the nature of
assets, the estimated usage of assets, the operating conditions of the assets, past history of replacement, anticipated
technological changes, maintenance history, etc.The estimated useful life is reviewed at the end of each reporting
period, with effect of any change in estimate being accounted for on a prospective basis.

Where the cost of part of the asset is significant to the total cost of the assets and the useful life of that part is different
from the useful of the remaining asset, useful life of that significant part is determined separately. Depreciation of such
significant part, if any, is based on the useful life of that part.

Freehold land is not depreciated.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item
of property, plant and equipment, determined as the difference between the sales proceeds and the carrying amount
of the asset, is recognized in the Statement of Profit or Loss.

2.12 Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization. Amortization is recognized on a straight line basis over their estimated useful lives of 5 years, which
reflects the pattern in which the asset's economic benefits are consumed. The estimated useful life, the amortization
method and the amortization period are reviewed at the end of each reporting period, with effect of any change in
estimate being accounted for on a prospective basis.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, and are recognised in the profit or loss when the asset is
derecognised.

2.13 Impairment of tangible and intangible assets other than goodwill:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if
any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognized immediately in profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset
(or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit and loss.

2.14 Inventories

Inventories of raw materials, stock-in-trade, stores & spares, Fuel, packing material, work in progress, stock in trade
and finished goods are valued at the lower of cost and net realizable value after providing for obsolescence and other
losses, where considered necessary. Stock of scrap and spent acid is valued at net realizable value. Cost comprieses
all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location
and condition. Stores and spares are valued on weighted average cost basis and all others are valued on a FIFO
basis.

2.15 Financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which
are unrestricted for withdrawal and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business 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 are solely payments of
principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair
value through other comprehensive income on initial recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or
loss.

Investment in subsidiaries

Investment in subsidiaries are measured at cost as per Ind AS 27 - Separate Financial Statements.

Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest method.

Financial guarantee contracts:

A Financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of
a debt instruments.

Financial guarantee contracts issued by a holding company are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of :

• The amount of loss allowance determined in accordance with impairment requirements of IND AS 109; and

• The amount initially recognised less, when appropriate, the cumulative amount of income recognised in
accordance with the principles of IND AS 18.

Equity instruments

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

Reclassification of Financial Assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial
assets which are debt instruments, a reclassification is made only if there is a change in the business model for
managing those assets. Changes to the business model are expected to be infrequent. The Company's senior
management determines change in the business model as a result of external or internal changes which are
significant to the company's operations. Such changes are evident to external parties. A change in the business
model occurs when a company either begins or ceases to perform an activity that is significant to its operations. If the
Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which
is the first day of the immediately next reporting period following the change in business model. The Company does
not restate any previously recognized gains, losses (including impairment gains and losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to
realize the assets and settle the liabilities simultaneously.

2.16 Earnings Per Share (EPS)

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share.
Basic earnings per share is computed by dividing the net profit or loss for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss
for the period by the weighted average number of equity shares outstanding during the period as adjusted for the
effects of all diluted potential equity shares except where the results are anti-dilutive.

2.17 Current/Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An
asset is classified as current when it satisfies any of the following criteria:

- It is expected to be realized or intended to be sold or consumed in normal operating cycle

- It is held primarily for the purpose of trading

- It is expected to be realized within 12 months after the date of reporting period, or

- Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after reporting period.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

A liability is current when it satisfies any of the following criteria:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within 12 months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting
period Current liabilities include the current portion of long term financial liabilities.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets and their realization in cash and cash equivalents.
The Company has identified 12 months as its operating cycle.

2.18 Share Capital
Ordinary Shares

Ordinary shares are classified as equity. Incremental costs, if any, directly attributable to the issue of ordinary shares
are recognized as a deduction from other equity, net of any tax effects.

2.19 Fair Value Measurement

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

- in the principle market for the asset or liability

- in the absence of principle market, in the most advantageous market for the asset or liability.

The principle or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

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

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

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

Level 1 - Quoted (Unadjusted) Market prices in active markets for incidental assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

directly or indirectly observable

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

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

Determination of Fair Value

1) Financial Assets - Debt Instruments at amortized cost

After initial measurement the financial assets are subsequently measured at amortized cost using the Effective
Interest Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or cost that are an integral part of the EIR.

2) Financial Assets - Debt Instruments at Fair Value through Other Comprehensive Income (FVTOCI)

Measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the Other
Comprehensive Income (OCI). On derecognition of the asset, cumulative gain or loss previously recognized in OCI is
reclassified from the equity to P&L.

3) Debt instruments & derivatives at Fair Value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

4) Equity Instruments at Fair Value through Other Comprehensive Income

On initial recognition, the Company can make an irrevocable election (on an instrument by instrument basis) to
present the subsequent changes in fair value in ither comprehensive income pertaining to investments in equity
instruments. These elected inbestments are initially measured at fair value plus transaction costs. Subsequently, they
are measured at fair value with gains / losses arising from changes in fair value recognized in other comprehensive
income. This cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

5) Financial Liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit & loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Companies financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts and derivative financial instruments.

Subsequent Measurement

Fair value through Profit & Loss

Financial liabilities at fair value through profit & loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. All changes in fair value of such liabilities are
recognised in statement of profit or loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as
through the EIR amortization process. The EIR amortization is included as finance costs in the statement of profit and
loss.

2.20 Dividend

Dividend on share is recorded as liability on the date of approval by the shareholders and is shown as a reduction
from retained earnings under Other Equity.

2.22 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments are the segments for which separate financial
information is available and for which operating profit / loss amounts are evaluated regularly by the Chief Operating
Decision Maker (CODM) in deciding how to allocate resources and in assessing performance.

'The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on
the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the
basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets
and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have
been included under “unallocated revenue / expenses / assets / liabilities”.

(i) During the year ended 31st March, 2025,the Company has issued and allotted 8,23,52,603 fully paid up Equity Shares under
rights issue at an issue price of Rs. 6.06 per share (including a premium of Rs. 5.06 per Equity Share) to eligible equity
shareholders in the ratio of 1 Right Equity Share for every 3 fully paid -up equity share held. Accoringly, the paid up equity share
capital of the Company has been increased from Rs. 24,70,58,454 to Rs. 32,94,11,057 by addition of 8,23,52,603 equity shares.

(ii) During the year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719 equity shares of Re. 1/- each to
eligible shareholders of equity shares on the book closure date (i.e. 5th July, 2023) as fully paid up bonus equity shares by
capitalizing reserves

(iii) The company has converted 65,20,606 share warrants into equivalent no of equity shares of Rs 1 each at a premium of Rs
152.36 /- per equity shares on preferential basis during the year ended 31-03-2023 .These shares are under lock -in for a period
of one year from the date of issue and consequently restricted for transfer.

(iv) (iv) During the year ended 31st March, 2022, the Company has issued and allotted 5,58,90,894/- equity shares of Re. 1/- each
to eligible shareholders of equity shares on the book closure date (i.e. 19th July, 2021) as fully paid up bonus equity shares by
capitalizing reserves.

(v) During the year ended 31st March, 2021, the Company has issued and allotted 4,65,75,745/- equity shares of Re. 1/- each to
eligible shareholders of equity shares on the book closure date (i.e. 17th September, 2020) as fully paid up bonus equity shares
by capitalizing reserves.

Capital Reserve

Capital Reserve is utilised in accordance with the provisions of the Act.

Capital Redemption Reserve

Capital redemption reserve represents reserve created on redemption of preference shares. It is non distributable reserve.
During the year ended March 31,2024 the company has utilised Rs. 34,10,088/- of the reserve towards issued of fully paid
up bonus shares.

Securities Premium Reserve

Securities premium reserve represents the amount received by the company on issue of securities over and above the face
value of the securities. During the year ended March 31, 2024 the company has utilised Rs. 4,15,09,631 of the reserve
towards issue of fully paid up bonus shares. During the year ended 31st March, 2025, the company has raised money
through rights issue at Rs. 6.06 per equity share, including premium of Rs. 5.06 per equity share which has been credited to
Securities Premium Reserve.

Retained Earnings

The amount that can be distributed by the company as dividend to its equity shareholders.

Transition Revaluation Reserve

Transition Reserve represents reserve created on transition from Accounting Standards to Ind AS.

General Reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purpose.

(a) Term loan from banks & other financial institutions are secured by charge created on plant & machinery, motor vehicles and
factory land and building and residential property situated at Roha Raigad. Refer Note (d) below for terms of repayment, rate of
interest etc. Further, these loans are secured by a lien on amounts invested in fixed deposits as mentioned in Note No. 12 to
these financial statements. Further, these loans are also secured by the personal guarantees of Mr. Asit Javeri & Abhishek
Javeri, Chairman and Managing Director, and Corporate guarantee of Manekchand Panachand Trading Investment Co Pvt
Ltd, holding company of the Company and shares of the Company held by the holding Company.

(b) Further, the Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between
8.10% to 12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and
future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the
company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds
and further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of
Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

(c) Inter Corporate Deposits are carrying interest rate in the range of 10-15% and repayable on or before March 31,2025.

Note No. 27: Financial Instruments and Risk Review
Capital Management

The key objective of the Company's capital management is to ensure that it maintains a stable capital structure with the
focus on total equity to uphold the investor, creditor and customer confidence and to ensure future development of its
business. The Company is focused on keeping strong total equity base to ensure independence, security as well high
financial flexibility for potential future borrowings, if required without impacting the risk profile of the company. The
Company's goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual
dividends in future periods. The amount of future dividends of equity shares will be balanced with efforts to continue to
maintain an adequate liquidity status.

Financial Risk Management Framework

The company has exposure to the following risks arising from financial assets & liabilities :

a) Credit risk

b) Liquidity risk

c) Market risk

i) Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract
leading to financial loss. The credit risk arises principally from its operating activities ( primarily trade receivables) and
from its financing activities including deposits with banks and financial institutions and other financial instruments.

The customer credit is managed by the company's established policy , procedures and controls relating to customer
credit management. The company has established a credit policy under which each new customer is analysed
individually for credit worthiness before the company's standard payment and delivery terms and conditions are
offered. The company's review includes external ratings where available and other publicaly available financial
information. Outstanding customers receivables are regularly monitored and any shipment to major customers are
generally covered by letter of credit or other forms of credit insurance.

ii) Liquidity risk

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

The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is
perceived. In addition, the company maintains the following line of credit.

The Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between 8.10% to
12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future
current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company,
present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds and
further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of
Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

iii) 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. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes. The Company's exposure to market risk is
primarily on account of foreign currency exchange rate risk.

Foreign Currency exchange rate risk

The Company operates internationally and major portion of the business is transacted in several currencies and
consequently the company is exposed to foreign exchange risks through operating activities in foreign currency.

28.1 During the year ended 31st March ,2025, the Company has issued and allotted 8,23,52,603 fully paid up Equity
Shares of Re. 1/- each at an issue price of Rs 6.06 per share (including a premium of Rs 5.06 per Equity Share) to
eligible equity shareholders.

28.2 During the previous year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719
equity shares of Re. 1/- each to eligible equity shareholders on the book closure date (i.e. 5th July, 2023)
as fully paid up bonus equity shares by capitalizing reserves.

The earning per share figures for the previous year have been restated to give effect of the allotement of the bonus
shares, as required by IND-4533, 'Earning Per Share' Accordingly the opening & closing no. of outstanding equity
shares has been restated and consequently the EPS for the previous year has also been restated.

Note 29 : Employee benefits

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plan administered by the Regional Provident
Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to
fund the benefits. The Company has recognized Rs. 1,21,29,667/- towards Provident Fund and other fund contributions
(March 31,2024: Rs. 1,08,97,616 /-)in the Statement of Profit and Loss. The provident fund and ESIC contributions payable
by the Company are in accordance with rules framed by the Government from time to time.

(b) Defined Benefit Plans:

Gratuity

The employee's gratuity fund scheme managed by a trust is a defined benefit plan.The present value of the obligation is
determined based on actuarial valuation using the projected unit credit method,which recognises each period of service as
giving rise to adiitional unit of employee benefit entitlement and measures each unit seperately to build up the final
obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation,take into account inflation,seniority promotion
and other relevant factor including supply and demand in the employment market. The above information is certified by
actuary. The expected rate on plan assets is determined considering several applicable factor,mainly the composition of
plan assets held assessed risk ,historical result of return on plan assets and the company's policy for plan assets
management.

The Company has a defined benefit plan for every employee who has completed five year or more of service gets a gratuity
on departure at 15 days salary ( last drawn salary) for each completed year of service. The scheme is unfunded.

The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to
employees as and when claimed.

Note 30 : Corporate Social Responsibility

As required under Section 135 of the Companies Act, 2013, the Board of the Company in its meetings held on 19th October,
2018 has constituted a Corporate Social Responsibility Committee (CSR Committee).

The Board of Directors of the Holding Company has approved the CSR policy based on the recommendation of the CSR
Committee and is in the process of identifying the activities for CSR spends.

Reasons for not spending the amount

The Company had undertaken a major expansion project which entailed a significant capital outlay over the past three
years. Accordingly, majority of the Company's limited resources were utilized during this period towards the completion of
the expansion project & towards the day to day operations of the Company.

However, the unprecedented Covid-19 pandemic, severly affected the market conditions globally which put tremendous
strain on the working capital requirements and resulted in a financial squeeze on the operating margins of the Company.
During the current financial year, the company has completed a significant portion of its expansion. This coupled with an
improvement in the global market conditions will help reduce the strain on the finances of the Company in the subsequent
year which in turn will enable the Company to meets its past obligations with reagrds to Corporate Social Responsibility.

The Company has already spent the necessary amount towards Corporate Social Responsibility expenditure for the
financial year ended 31st March, 2025 which was required to be spent in compliance with the provisions of Section 135 of
the Companies Act, 2023. The Company shall strongly endeavour to meet its past CSR spending obligations by transferring
the amount of Rs. 218.19 Lakhs to the funds prescribed under Schedule VII of the Companies Act at the earliest possible.

Note 33

Transfer Pricing

The Company has 'international transactions with associated enterprises' which are subject to Transfer Pricing regulations
in India. These regulations, inter alia, require the maintenance of prescribed documents and information for the basis of
establishing arm's length price including furnishing a report from an Accountant within the due date of filing the return of
income.

For the fiscal year ended March 31,2025, the Company has taken necessary steps including conducting a study as required
by the regulations and the Accountant's report in this regard is awaited. In the opinion of the management, the transactions
are carried out at arm's length and no adjustments is expected to arise thereon.

Note 34

Segment Reporting

In accordance with Ind AS 108, "Operating Segments", the Company has presented segment information on the basis of
consolidated financial statements which form part of this report.

Note 35

Borrowing Cost

During the year, the Company has capitalized Rs. 1402.58 Lakhs (P.Y. Rs. 566.69 Lakhs ) as part of cost of qualifying CWIP
as borrowing costs.

Note 36 : Significant estimates and assumptions
Estimates and Assumptions

The preparation of the Company's financial statements requires management to make estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assests or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change
due to market changes or circumstances arising that are beyond the control of the Company. Such changes will be reflected
in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or Cash Generating Unit (CGU) exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The
cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is
not yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested.
The recoverable amounts sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

Defined Benefit Plans (Gratuity Benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary increases
and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of
the post-employment benefit obligation.

The mortality rate is based on publicaly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates.

Details about gratuity obligations are given in Note 29.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, the fair value is measured using valuation techniques including the DCF model. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value target and the discount factor.

The Company has valued its financial instruments through profit & loss which involves significant judgements and estimates
such as cash flows for the period for which the instrument is valid, EBITDA of investee company, fair value of share price of
the investee company on meeting certain requirements as per the agreement, etc. The determination of the fair value is
based on expected discounted cash flows. The key assumptions take into consideration the probability of meeting each
performance target and the discount factor.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that are either
observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in
part using a valuation model based on assumption that are neither supported by prices from observable current market
transaction in the same instrument nor are they based on available market data.

The Investments included in leval 3 of fair value heirachy have been valued using the cost approach to arrive at their fair
value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value
measurements and the cost represents estimate of fair value within the range.

Note 40 : Details of Benami Property held

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the year.

Note 41 : Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any other lender during the year.
Note 42 : Relationship with Struck Off Companies

The Company does not have any transactions or balances with the companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year and the previous year.

Note 43 : Registration of Charges or satisfaction with Registrar of Companies (ROC)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for
registration, modification or satisfaction with Registrar of Companies (ROC) beyond the statutory period except in case of
Rs. 41,50,000/- taken from Kotak Mahindra Prime Ltd., against hypothecation of vehicle.

Note 44 : Compliance with number of layers of companies

The Company is in compliance with the relevant provisions of the Companies Act, 2013 with respect to the number of layers
prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of
Layers) Rules, 2017.

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity,
including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or
entity, including foreign entity (“Funding Parties”).

Note 46 :

The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as
income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

Note 47 :

The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.
Note 48 :

There has been no fraud by the Company or on the Company during the year and previous year.

Note 49 :

There is no scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year and hence, no disclosures are required to be made by the Company in these financial statements
for the year ended 31st March, 2025

Note 50 : Dividend

Dividend paid during the year

Dividends paid during the year ended March 31,2025 include an amount of Rs 0.15 per equity share towards final dividend
for the year ended March 31,2024. Dividends paid during the year ended March 31,2024 include an amount of Rs. 0.15 per
equity share towards final dividend for the year ended March 31,2023.

Dividend declared

Dividends declared by the Company are based on the profits available for distribution. The Board of Directors have
proposed a final dividend of 10% i.e. Rs. 0.10 (Previous year Rs. 0.15) per equity share amounting to Rs. 3,29,41,106/- for
the year 2024-25 ( Previous year Rs. 3,70,58,768/-) after the balance sheet date, subject to the approval of shareholders at
the ensuing Annual General Meeting of the Company and therefore, the proposed final dividend has not been recognised as
the liability as at the balance sheet date in line with Ind AS 10 on 'Events after the reporting period'.

Note 51 : Events Occuring after the balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization.

Note 52 : Acquistion of Calchem Industries (India) Limited

During the year, the company has completed the acquistion of Calchem Industries (India) Limited ("Calchem"), a company
under insolvency proceedings as approved by the order of the Honorable National Company Law Tribunal (NCLT) dated
October 29, 2024. The Company has taken possession of Calchem Industries (India) Limited, along with the plant, land and
machinery at Roha which adjacent to Company's current factory. Pursuant to this acquisition, Calchem Industries (India) Ltd
is now a wholly owned subsidiary of Sadhana Nitro Chem Limited (SNCL).

The acquisition cost of Rs. 950 Lakhs has been paid in the nature of subscription of share capital of Calchem amounting Rs.
200 Lakhs and the balance as a loan to the subsidiary as a loan at the rate of 15% p.a.

(i) The above difference are due to the fact that the valuation of inventory of raw material, work in progress & finished goods
submitted to the banks where based on the approximation / previous quarter's costing figures as the same were due for
submission to banks within a fortnight of month closing, whereas in the books of accounts the valuation was done using
the actual costing as at the quarter ending. The differences arisen due to these are not material.

Note 54 : Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. In Lakhs as per the

requirement of Schedule III of the Companies Act, 2013, unless otherwise stated.

Note 55 : Previous Year Figures

Previous year's figures have been regrouped, rearranged & reclassified where ever considered necessary.

For Jayesh Dadia & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number :121142W/W100122

Asit D Javeri Mukul S Mehra

Executive Chairman Director

DIN: 00268114 DIN: 01542984

Jayesh Dadia Abhishek A Javeri Rakesh Kothari

Partner Managing Director Chief Financial Officer

Membership Number : 033973 DIN: 00273030

Smt. Seema A Javeri Nitin R Jani

Executive Director Company Secretary

Place : Mumbai Administration

Date : 02nd May, 2025 DIN: 01768936