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.

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.