(r) Provisions, Contingent Assets and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These
are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small. Provisions are measured at the present value of best estimate
of the Management of the expenditure required to settle the present obligation at the end of the reporting period. The discount
rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which 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 where it is either not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognised but disclosed in the standalone financial statements when an inflow of economic benefits
is probable.

(s) Research and Development Expenditure

Research and Development expenditure is charged to revenue under the natural heads of account in the year in which it is
incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as expenditure
on other property, plant and equipment.

(t) Earnings Per Share

Basic Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by
the weighted average number of Equity shares outstanding during the period. Diluted Earnings per Equity Share are computed
by dividing net income by the weighted average number of Equity Shares adjusted for the effects of all dilutive potential Equity
Shares. Earnings considered in ascertaining the EPS is the net profit for the period after attributable tax thereto for the period.

(u) Segment Reporting - Basis of Information

In accordance with Ind AS 108 -Operating Segments, the Company has disclosed the segment information at consolidated level
and accordingly no separate disclosure on segment information is given at standalone financial results level.

3. On August 9, 2024, the Company has acquired 100% equity stake in Deepak Advanced Materials Limited (formerly known as OXOC
Chemicals Limited) (10,000 equity shares of 7 10/- each) for a consideration of 7 1,00,000.

The Company further, invested an amount of 7 34.50 Crores by subscribing to 3,45,00,000 equity shares of 7 10/- each.

4. On August 11, 2023, Deepak Nitrite Limited acquired 31.72% equity stake in Deepak Oman Industries (SFZ) LLC (DOIL) by subscribing
to 7,70,000 equity shares of OMR 1 each for the consideration of 7 16.55 Crores. Further, on March 20, 2024, Deepak Nitrite Limited
acquired, through acquisition as well as by way of subscription, additional 19.28% equity stake in DOIL i.e. 4,95,824 equity shares of
OMR 1 each for the consideration of 7 10.69 Crores. Cumulative holding as on March 31, 2024 was 51%.

Furthermore, on June 10, 2024, Deepak Nitrite Limited subscribed to additional 4,90,919 equity shares of OMR 1 each for the
consideration of 7 10.64 Crores. Cumulative holding as on March 31, 2025 is 51%.

DOIL was treated as an Associate up to March 19, 2024 and Subsidiary thereafter during the year ended March 31, 2024 and March 31, 2025.

5. During the year, the company has further subscribed to 3,83,50,000 “9% Non- Cumulative Optionally Convertible Redeemable
Preference Shares” of 7 100 each amounting to 7 383.50 Crores of Deepak Chem Tech Limited (Wholly Owned Subsidiary of the
Company).

(i) Working Capital borrowings from banks represent Cash Credit and Working Capital Demand Loan with rate of interest as MCLR of
respective banks plus spread ranging from 0% to 1.25% p.a. These borrowings are repayable on demand.

(ii) Working Capital borrowings are secured by way of first Hypothecation charge over Company's Raw Materials, Semi-Finished & Finished
Goods, Consumable Stores & Spares and Book Debts (present & future) and second charge on all Property, Plant and Equipment by
way of hypothecation and mortgage. The assets stated herein are disclosed under note 2, 9 and 11.

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration
of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an
increase in the salary of the members more than assumed level will increase the plan's liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan
deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.

38. 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 investor, creditor, and customer confidence and to ensure future development of its business.

The Company focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for
potential future borrowings, if required without impacting the risk profile of the Company.

For the purpose of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

39.2. Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data (unobservable inputs).

Comparative Market Multiples method has been used for estimating the fair value of such Investment. The fair valuation estimates are
based on historical annual accounts/annual reports and based on information collected from public domain. Information pertaining to
future expected performance of investee companies including projections about their profitability, balance sheet status and cash flow
expectations are not available.

39.3. Financial Risk Management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including
currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts
and option contracts to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial
instruments is governed by the Company's policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and
deployment of surplus funds.

39.5. Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating
to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality
of majority of its customers and individual credit limits are defined in accordance with this assessment through third party experts.
Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken upon case to case basis.
The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit
ratings assigned by international credit rating agencies.

48. With respect to fire incident at Company's one of the manufacturing sites located at Nandesari, Gujarat in June 2022 an amount of
7 79.80 Crores has been recognised under Exceptional items in Statement of Profit and Loss for the year ended March 31, 2024 on
account of final settlement from Insurance Company.

49. OTHER STATUTORY INFORMATION

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

(ii) The Company does not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

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

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

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

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

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

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

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

50. Events occurring after the balance sheet date: The Board of Directors have recommended, subject to the approval of shareholders,
dividend of 7 7.50/- (Rupees Seven & Fifty Paise only) per equity share of face value of 7 2/- (Rupees Two only) each for the year ended
March 31, 2025 on 13,63,93,041 equity shares amounting to 7 102.29 Crores.

51. The Standalone Financial Statements were approved for issue by the Board of Directors on May 28, 2025.

For and on behalf of the Board

DEEPAK C. MEHTA MAULIK MEHTA SANJAY UPADHYAY

Chairman & Managing Director Executive Director & CEO Director-Finance & Group CFO

DIN:00028377 DIN:05227290 DIN:01776546

SOMSEKHAR NANDA DILEEP CHOKSI ARVIND BAJPAI

Chief Financial Officer Director Company Secretary

ICAI Membership No.: 49831 DIN: 00016322 Membership No. : F6713

Vadodara: May 28, 2025