j) Provisions

Provisions are recognised if, as a result of a
past event, the Company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation.

Where the effect of time value of money is
material, provisions are determined and
maintained by discounting the expected future
cash flows, wherever applicable.

k) Borrowing Costs

Borrowing costs attributable to a qualifying
asset are capitalized as a part of the cost
of such assets and other borrowing costs
are recognised as an expense in the year of
incurrence.

l) Employee Benefits

The Company’s contribution to Provident and
Pension fund for the employees is covered under
defined contribution plan and is recognised as
employee benefit expense in statement of profit
and loss in the periods during which services
are rendered by employees.

The Company’s Gratuity scheme for its
employees is a defined benefit retirement
benefit plan. The liability recognised in the
balance sheet in respect of defined benefit
plan is the present value of the defined benefit
obligation at the end of the reporting period
less the fair value of plan assets. The defined

benefit obligation is calculated annually by
independent actuaries using the projected unit
credit method.

Defined benefit costs are categorised as
follows:

• service cost

• net interest expense or income; and

• re-measurement

The Company presents the first two components
of defined benefit costs in profit and loss in the
line item ‘Employee benefit expenses’.

Re-measurements comprising actuarial gains
and losses as well as the difference between
the return on plan assets and the amounts
included in net interest on the net defined
benefits liability (asset) are recognised in other
comprehensive income, net of income tax.

Other long-term employee benefits comprise
of leave encashment which is provided for
based on the actuarial valuation carried out as
at the end of the year. Liability is measured at
the present value of the estimated future cash
outflows expected to be made by the Company
in respect of services provided by employees
up to the reporting date. Re-measurements
and other expenses related to long term benefit
plans are recognised in statement of profit and
loss.

m) Foreign Currency Transactions and balances

Transactions in foreign currency are translated
into the respective functional currencies using
the exchange rates prevailing at the dates of
the respective transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation at
the exchange rates prevailing at reporting date
of monetary assets and liabilities denominated
in a foreign currencies are recognised in the
statement of profit and loss and reported within
foreign exchange gains / losses.

Non-monetary assets and liabilities
denominated in a foreign currency and
measured at historical cost are translated
at the exchange rate prevalent at the date of
transaction.

n) Earnings Per Share

Basic earnings per share is computed by
dividing the profit or loss after tax by the
weighted average number of equity shares
outstanding during the year including
any potential dilution resulting in issue of
additional equity shares based on contractual
terms and obligations. Diluted earnings per
share is computed by dividing the profit / (loss)
after tax, as adjusted for dividend, interest and
other charges to expense or income (net of
any attributable taxes) relating to the dilutive
potential equity shares, with the weighted
average number of equity shares considered for
deriving basic earnings per share.

o) Statement of Cash Flows

Cash flows are reported using the indirect
method, whereby profit/ (loss) before tax is
adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of
past or future cash receipts or payments. Cash
flows for the year are classified by operating,
investing and financing activities.

p) Taxes on Income

Income tax comprises current and deferred
tax. Income tax expense is recognised in the
statement of profit and loss except to the extent
it relates to items directly recognised in equity
or in other comprehensive income.

i. Current income tax

Current income tax for the current and
prior periods are measured at the amount
expected to be recovered from or paid
to the taxation authorities based on the
taxable income for the period.

The tax rates and tax laws used to compute
the current tax amount are those that
are enacted or substantively enacted by
the reporting date and applicable for the
period. The Company offsets current tax
assets and current tax liabilities, where it
has a legally enforceable right to set off the
recognised amounts and where it intends
either to settle on a net basis or to realize
the asset and liability simultaneously.

ii. Deferred income tax

Deferred tax liabilities are recognised for
all taxable temporary differences. Deferred
tax assets are recognised for all deductible
temporary differences, the carry forward
of unused tax credits and any unused tax
losses. Deferred tax assets 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 utilized.

The carrying amount of deferred 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 tax asset to be utilized.
Unrecognised deferred tax assets are
re assessed at each reporting date and
are recognised to the extent that it has
become probable that future taxable

profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are
measured at the tax rates that are
expected to apply in the year when the
asset is realized or the liability is settled,
based on tax rates and tax laws that have
been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised
outside statement of profit or loss is
recognised outside statement of profit
or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in
equity.

Deferred tax assets and deferred tax
liabilities are offset if a legally enforceable
right exists to set off current tax assets
against current tax liabilities and the
deferred taxes relate to the same taxable
entity and the same taxation authority.

NOTE 37 SEGMENT REPORTING:

Operating segment is defined as a component of an entity which earns revenue, whose operating results are regularly
reviewed by Chief Operating Decision Maker and for which discrete financial information is available. The Chairman
and Managing Director of the Company, who regularly reviews the entity’s operating results to make decisions about
allocation of resources and assessment of performance has been identified as the Chief Operating Decision Maker of the
Company. As the Company is engaged in manufacture and sale of chemicals, the same has been identified as the sole
operating segment.

An amount of ' 46.00 Lakhs (Previous Year: ' 85.00 Lakhs) has been contributed to Krishna Foundation during the
year towards Corporate Social Responsibility.

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured.

NOTE 39 The paid-up equity share capital of the Company as on financial year ended March 31, 2026 is ' 1,346.31 Lakhs
divided into 6,73,15,284 Equity Shares of ' 2/- each and financial year ended March 31, 2025 is ' 1,346.31 Lakhs divided
into 6,73,15,284 Equity Shares of ' 2/- each.The Public Shareholding in equity capital as on March 31, 2026 is 30.80% and
as on March 31, 2025 is 30.80%.

NOTE 40 EMPLOYEE BENEFITS:1. Defined Contribution Plan:

The Company makes contributions towards provident fund and employee state insurance regularly at the
applicable rates based on the salaries of the eligible employees. The obligation of the Company is limited to making
the contributions and there is no further contractual or constructive obligation. The following are the details of
contributions made during the year which are debited to Statement of Profit and Loss:

NOTE 46 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 companies struck off.

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 has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

vi) 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:

(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

vii) 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:

(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

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

NOTE 47 Figures for the previous year have been regrouped, rearranged, and reclassified, wherever considered necessary,
to conform to the classification/ presentation of the current year.