Rights, preferences and restriction relating to each class of share capital:

Equity shares: The Company has one class of equity shares having a face value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the shareholders will be eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares: The Company has a class of preference shares having face value of Rs.10 per share with such rights, privileges and conditions respectively attached thereto as may be from time to time confirmed by the regulations of the company. No such preference shares are issued and outstanding as of March 31, 2025 (2024: Nil)

Note :The procedure for release of subsidy has been revised with the introduction of Direct Benefit Transfer (DBT) Scheme in a phased manner for all fertilizers. The revised procedure entails 100% payment of subsidy under DBT scheme on the basis of actual sale by the retailers to the beneficiaries on weekly basis through POS machines.

Pursuant to above procedure, pending sale of Urea totalling 38837.670 MT through POS machine to beneficiaries as on March 31,2025, subsidy of ' 151.30 Cr which has accrued on sale to dealers but shall become due for payment under DBT upon sale through POS machines has been recognized in the current period (CPLY quantities 36086.01 MT and subsidy ' 169.41 Cr).

*Claims against the company not acknowledged as debt include following:

a. The Company suspended the supply of Carbon dioxide (CO2) to SICGIL India Limited,(SICGIL) since they defaulted in its payments as per the terms of the contract. SICGIL invoked arbitration proceedings and got an award in their favour for '3.25 Cr after adjusting the amount due to the Company of '0.03 Cr. Along with the interest @18%. Further the arbitrator has awarded the company to reimburse the cost of arbitration of '0.08 Cr with interest @ 6% to the SICGIL.

The company has filed an appeal against the said award before Hon'ble Madras High Court, which got dismissed on 09.08.2021. The company had preferred an appeal before the Divisional Bench of the Hon'ble Madras High Court and the matter is pending for final disposal by divisional bench. As per Arbitration award, the probable outflow till 31st March,2025 works out to '8.01 Cr inclusive of interest of '4.71 Cr (PY-'7.42 Cr inclusive of interest of '4.12 Cr).

b. M/s Keerthana Enterprises having canteen contract with the Company has filed the petition before MSME forum by claiming a dues of principal '0.31 Cr (PY-'0.31 Cr) and interest of '0.06 Cr (PY - '0.06 Cr) for the nonpayment of dues as per the provisions of MSMED Act 2006. The company is of the view that there is no such liability.

c. An ex-employee of the company [Mr M V Seshachary (E.No.2226)] was dismissed and reinstated as per the Court Order. The High Court of Telangana also awarded

a sum of Rs.0.91 Cr towards back wages. The company has deposited a sum of Rs.0.35 Cr as deposit in the Court. During the current FY, the said employee has lodged a claim of Rs.2.04 Cr, consisting of various claims in the NCLT. The company has not accepted the said claim and is in the process of contesting in the appropriate legal forum. The company has made a provision in the books for Rs.0.84 cr consisting of -Rs.0.63 Cr towards back wages and Rs.0.22 Cr towards interest, pending the filing of appeal for the disposal of the claim made by the employee as stated above. The remaining amount of the disputed claim of Rs.1.20 Cr is considered as a contingent liability.

d. Commissioner of Customs ordered the company for the differential customs duty of '65.86 Cr (inclusive of penalty and redemption fine of '32.88 Cr and '0.10 Cr) (PY-'65.86 Cr) against which the company has filed a case before the CESTAT, South Zone, Chennai by depositing '0.05 Cr. The CESTAT has set aside the demand and remanded the matter to the original adjudicating authority to first decide the issue of jurisdiction after availability of decision of Hon'ble Supreme Court in the case of M/s Mangli Impex. Against the said remanded order, Commissioner of Customs has filed Civil Miscellaneous Appeal (CMA) before Hon'ble High Court of Madras which is pending.

e. Tamil Nadu GST Authorities conducted GST audit for the following financial years and tax demand raised, Company contested the same.

f. Income tax department has raised a demand of ' 7.22 Cr (PY - '7.22Cr) on April 22, 2021 for the A.Y 2018-19 for which the Company has filed an appeal before CIT (Appeals) Chennai. Further, the Income Tax Department has initiated the penalty proceedings and levied penalty of ?20,000/-.

g. Department of Commercial Tax, Kerala has preferred an appeal against the Company for the AY 2009-10 and 2010-11 before the Hon'ble Supreme Court for considering the subsidy received from the Government as a part of turnover in order to levy the value added tax. The total tax demanded by the Department is '5.11 Cr inclusive of interest of '1.10 Cr (PY-'5.11 Cr). The case is pending before the Court.

h. In respect of Tax deducted at source (TDS), department has raised a demand due to short-deduction and/or short payment of '0.20 Cr ( PY- '0.34 Cr), for which the company is in the process of rectification.

i. I n 2007 Pay Revision, GOI has increased the gratuity ceiling from '3.50 lakhs to '10.00 lakhs effective from 01.01.2007 whereas the Payment of Gratuity Act has amended only from 24.05.2010. In view of above, employees separated during the period from 01.01.2007 to 30.04.2010 were paid gratuity reckoning the ceiling as '3.50 lakhs. Some of the employees separated during the above period filed appeal before the High Court of Madras for the differential Gratuity amounting to '2.85 Cr (PY - '2.85Cr) and the matter is sub-judice. The matter is stayed by the Hon'ble Madras High Court with an order that the enhanced Gratuity is not payable with retrospective effect based on SC order on the issue.

j. As per the DPE guidelines on wage revision effective 01.01.2017, the package includes higher gratuity of '20 lakhs from that date. During the current FY, the company has given effect to wage revision w.e.f 01.04.2023. The Company is paying the enhanced gratuity to all the employees who are separated from the Company after the amendment made in the payment of Gratuity Act with effect from 29.03.2018. Some of the employees who have retired prior to 29.03.2018, have

gone to labour court claiming gratuity amounting to ' 5.70 Cr (PY -'5.70 Cr) for the period from 01.01.2017 to 28.03.2018 which was dismissed by the Labour Court and separated employees have filed an appeal in Hon'ble High Court of Madras. The said appeal is pending for disposal by the Hon'ble High Court as on the date of the Balance sheet.

k. Tamil Nadu Pollution Control Board (TNPCB) has issued a Show cause Notice for non-compliance of emission norms by levying an environmental compensation of '0.37 Cr. u/s 5 of the Environment (Protection) Act, 1986. The Company has represented the matter before the appropriate authority. Decision of the TNPCB is yet to be received.

l. The Company has requested GOI for waiver of Interest accrued and penal interest on GOI loans as a part of revival package. However, as per the office memorandum on 'Loans and Advances by the Central Govt.- interest rate and the other terms and conditions', in case of non-acceptance of revival package submitted by the Company, the Company is under obligation to pay penal interest of 2.75% p.a amounting to ' 394.68 Cr for the current year (PY - '351.68 Cr).

2. Disclosure of Contingent Asset

The Company filed a recovery suit against M/s Hastalloy India Ltd, having business transactions of supply of Uranus Rods amounting to '0.08 Cr together with interest of '0.04 Cr before Hon'ble Court of Principal District Judge at Tiruvallur. In 2007, the Court ordered the decree in favour of the company for an amount of '0.12 Cr, as claimed in the suit and to reimburse the cost of suit of '0.01 Cr along with the interest @ 18% from the date of decree to till date of realization. Subsequently for transfer of decree necessary executive petition papers were filed in the District Court, Tiruvallur. Since the jurisdiction of supplier lies in Visakhapatnam, the Company initiated to transfer the executive petition for the recovery. Due to non-availability of virtual certainty of inflow to the company, it is disclosed as contingent asset.

Status of Income Tax Refund Due and the adjustments thereof:

a. During the year, the company has received an intimation from the Income Tax Department dated 03.03.2025, wherein a sum of Rs.6.16 Cr (including interest of Rs.0.18 Cr) has been determined as Refund Due to company. Pending the receipt of refund amount as on the date of balance sheet, the above amount of Rs.6.16 Cr is considered under 'Other Financial Assets (Current)'. Further, the company has written back Rs.1.11 Cr being the excess provision towards Income Tax for the FY 2023-24.

b. The Income Tax refund due to the company, relating to earlier financial year other than the refund due of Rs.6.16 Cr as mentioned above, amounting to '2.61 Cr, is included in 'Other Financial Assets (Non-Current)'.

Deferred tax assets and liabilities have been offset wherever the company has a legally enforceable right to setoff current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the Income Tax Authority.

The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the year in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making the assessment.

Based on the level of historical taxable income and projections for future taxable income over the years in which the deferred income tax assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of deferred income tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry

forward periods are reduced.

6. The reconciliation of ITC as reflected in the books of accounts and with relevant statutory records under GST regulations has been completed for all the FYs ending up to 2024.

The provision of Rs 50.54 Cr has been considered in the accounts for the difference between the Input tax Credit as per books and Electronic Credit Ledger as per GST portal as on 31.03.2025. The above sum includes an amount of Rs 37.57 Cr, being the provision held as on 31.03.2024 and an additional provision of Rs 12.97 Cr made during the FY 2024-25 towards the above difference.

7. The amount under other income includes the write back of the following, which have been considered by the Management as no longer payable:

d. Disclosure under Ind AS 24 or related party transaction are given below

Since Government of India owns 59.50% of the Company's equity share capital (under the administrative control of DoF, Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the Government and other Government controlled entities have been reported in accordance with para 26 of Ind As 24.

The details of the contractual maturities of lease liabilities as at March 31, 2025 & 2024 on an undiscounted basis are as follows:

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

Rental expenses recorded for short- term leases were ' 0.49 Cr for the year ended March 31,2025 (PY ' 0.18Cr).

10. Amount shown under finance cost charged to the statement of Profit & Loss includes Rs 0.61 Cr (PY Rs.0.83 Cr) being the notional value of unwinding of interest cost pertaining to earlier years arising out of restatement of rental deposit at discounted value as required under Ind AS.

11. Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) have allotted 43.13 acres of land for a lease period of 33 years at Kodungaiyur for TTP Plant in the year 1989 which got expired in May 2022.

Further, the Board of Directors of the company in its 315thmeeting dated 3rd February 2021 approved for further extension of lease for another 33 years. The Negotiation is going on and is yet to be finalized. The CMWSSB has granted permission for the use of land on adhoc basis pending for the finalization of lease terms.

Meanwhile, the company has been served with a notice from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) wherein demand for Rs.54.63 Cr (Excluding GST) towards increase in the rent from April'24 to March'25. The company has made representation for waiver of the said demand. The company has effected a payment of Rs 1.35 Cr which has been charged in the statement of Profit & Loss. Pending the outcome of the result of representation, the additional demand of Rs 53.28 Cr (Net) has been considered in the statement of Contingent Liabilities along with the opening contingent liability of Rs 26.64 Cr.

12. Disclosure on Investment Property:

a. The Management classifies the Asset which are held for rental incomes or surplus assets for capital appreciation under investment property.

a. Fair Valuation:

Investment Property at Bio Fertilizers Plant in Kondapalli, AP is valued on the basis of market value of the Property by an independent Chartered Engineer and Investment property at Manali is valued based on Government Guideline value. Fair values for the investment properties are as follows:

13. The Company has 70 acres of surplus land at Manali, which has been approved by the shareholders through special resolution during the FY 2019-20. Initially, CPCL has shown its interest to purchase the entire 70 acres of land. Later on, CPCL has conveyed its willingness to purchase 4.98 acres of land only. Accordingly, the company has classified the 4.98 acres of Manali land under “Assets held for Sale” amounting to '18,484/-(valued at cost price), whose fair value as on the March 31,2025 is ' 71.59 Cr.

For the remaining 65.02 acres of surplus land, the company has made communication to all the PSUs and Government of Tamil Nadu, the availability of land for sale. The company decided to classify the 65.02 acres of land under “Investment Property” due to lack of marketability of the land and the same was informed to DIPAM for further action.

Further, during the 310th Board Meeting, the Board of Directors approved for sale of Guindy property having an area of 19 grounds & 1064 sq.ft, subject to approval of Dept. of Fertilizers, Govt. of India and Shareholders. Pending approval from the shareholders, the same is retained under “Investment Property”. During the year, the Board has approved appointment of NBCC (India) limited as a land management agency for said property for which MOU is yet to be entered.

14. Employee Benefit Expenses Defined Benefit Plans:

The Company has floated the following defined benefit plans i) Gratuity, ii) Post-retirement medical benefits, iii) Compensated absences, iv) Service awards and v) Contribution to Provident Fund trust.

Funding:

Gratuity is the only defined benefit plan that is funded by the

Company. The funding requirements are based on the fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purpose.

The Company has determined that in accordance with the terms and conditions of the defined benefit plan, and in accordance with statutory requirements, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan asset less the total present value of obligations.

Movement in net defined benefit (Asset) / Liabilities

Gratuity

The cost of providing such defined benefit is determined using the projected unit credit method of actuarial valuation made at the end of the year and is administered through a fund maintained by Life Insurance Corporation of India. This defined benefit plan exposes the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.

Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 * last drawn basic salary plus dearness allowance) for each completed year of service subject to a ceiling of ' 0.20 Cr on superannuation, resignation, termination excepting in the case of death or disablement for which the condition of continuous service does not apply. The Company has carried out actuarial valuation of gratuity benefit considering the enhanced ceiling.

Other Benefits

Obligations on post - retirement medical benefits, compensated absences and service awards are provided using the projected unit credit method of actuarial valuation made at the end of the year. These are unfunded plans.

The estimates of salary escalations considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 10 years (31 March 2025: 10 years)

Obligations on post-retirement medical benefits, compensated absences and service awards are provided using the projected unit credit method of actuarial valuation made at the end of the year.

Provident Fund and Superannuation Fund:

The amount expended in respect of employer's contribution to the provident fund and superannuation fund during the year, are ' 5.55 Cr (Previous year ' 5.62 Cr) and ' 6.69 Cr (Previous year ' 6.18 Cr) respectively.

Unquoted Equity shares

The fair value of the unquoted equity shares has been estimated at Net Book Value model based on the latest available audited consolidated financial statements of M/s Indian Potash Limited and Standalone Financial Statements of M/s Fortune Biotech Limited (FBL) for the year ended 31st March 2024.

Fair value of financial assets and financial liabilities that are equivalent to it carrying amount which are subsequently measured at amortized cost:

The Management assesses that trade receivables, cash and cash equivalents, trade payables, borrowings and other financial assets and liabilities, fair values approximate their carrying amounts largely due to the short-term maturities of these instruments.

i. Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates

presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

16. Capital Management:

For the purpose of the Company's Capital management, capital includes equity capital and all other reserves. The Company's capital management objective is to maximize the total shareholder return by optimizing cost of capital through flexible capital structure that supports growth.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits.

Investment in unquoted equity shares

The Company has investments in unquoted equity shares of Indian Potash Limited and Fortune Bio-Tech Limited. The Company does not expect any losses from non-performance by the investee companies and hence no impairment is recognized in the Statement of Profit and Loss.

Loans and Advances

The company provides loans / advances to its employees on concessional or interest free basis. The company manages its credit risk in respect of such loans to employees through recovery of the same in a number of predetermined installments.

Cash and cash equivalents, deposits with banks and other financial Assets

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings. Therefore, the risk of default is considered to be insignificant.

In case of other financial Assets, there are certain credit impaired cases mainly due to breach of contract arising due to default, or bankruptcy proceedings.

Provision for expected credit losses

Financial assets for which loss allowance is measured using life time expected credit losses

The Company's customer base is the Government of India and a number of dealers. Historically the risk of default is very low. Further, management believes that the unimpaired amounts that are past due by more than 60 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

The company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables excluding Subsidies from the Government and other financial Assets. The provision matrix of ECL for Trade Receivables at the end of reporting period is as follows:

b. Liquidity risk

The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows. The Company invests its surplus funds in bank fixed deposit which carry minimal mark to market risks.

c. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the entity comprises three types of risk: currency risk, interest rate risk and equity risk.

Financial instruments affected by market risk include borrowings, trade payables in foreign currency and investment in unquoted equity shares. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

d. Currency risk

The Company executes import agreements for the purchase of raw materials, stores & spares and Property Plant & Equipment. These are not hedged by the Company owing to the materiality of such foreign exchange gain / loss values.

Sensitivity analysis

A strengthening / weakening of the Indian Rupee, as indicated below, against the foreign currency as at 31 March would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for previous year, except that the reasonably possible foreign exchange rate variances were different, as indicated below.

Fair value sensitivity analysis for fixed-rate instruments

The company's fixed rate instruments are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

f. Equity price risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. In the case of the Company, the sole investment in equity shares is unquoted and therefore, the Company is not exposed to equity price risks. However there can be changes in fair value of equity investments based on valuations done at different reporting periods owing to the operations and general business environment in which the investee operates. In general, the investment is not held for trading purposes.

Equity price sensitivity analysis

A 5% change in the fair value of equity instruments held as at March 31,2025 and March 31,2024 would result in an increase/ decrease of '26.24 Cr and ?22.74 Cr in fair value of the equity instrument respectively.

18. Revenue from Contract with Customers:

a. The Company generates revenue primarily from manufacturing and trading of Fertilizers. The Company has recognized revenue by satisfying its performance obligations at a point of time basis.

b. The revenue from contracts with customers to the amounts disclosed as total revenue are as under:

Contract Liabilities in the Balance Sheet constitutes advance payments and billings in excess of revenue recognized. The Company expects to recognize such revenue in the next financial year. There were no significant changes in contract liabilities during the reporting period except amount as mentioned in the table and explanation given above. Under the payment terms generally applicable to the Company's revenue generating activities, prepayments are received only to a limited extent. Typically, payment is due upon or after completion of delivery of the goods.

19. Subsidy under New Pricing Scheme (NPS) for Urea

a) Approval awaited for extension of existing energy norm: MFL vide letter No. CMD/Govt/612/2024 dated June 12,2024 and CMD/Govt/457/2025 dated April 22, 2025 requested Govt. of India to extend the existing energy norm of 8.337 Gcal/MT of Urea till energy reduction measures are implemented. Pending the approval for the above request, as a prudent measure, the Company has accounted the subsidy after considering the

maximum penalty of 10% from the existing energy norm of 8.337 Gcal/MT w.e.f 18/07/2024. The said penalty of ' 155.61 Cr has been considered as deduction in subsidy income for the financial year.

b) Subsidy accounting on policy parameters vis-a-vis provisionally approved rates:Subsidy on Urea Sales for FY 2024-25 has been recognized at ' 2110.30 Cr in accordance with the policy parameters prescribed by Fertilizer Industry Coordination Committee(FICC) for escalation claim whereas subsidy for escalation claims provisionally approved by FICC amounts to ' 2270.85 Cr, the difference being an amount of ' 160.55 crores. The above sum has been netted against Trade Receivables included under Current Assets. The effect for the difference in the subsidy accounted will be considered as and when the final notification is received based on the escalation / de-escalation of claims for FY 2024-25 to be submitted by the Company.

20. As per the report of the technical committee formed for the purpose of identification of obsolete stores and spares, 1197 items with a value of Rs.1.08 crores has been determined as obsolete and necessary provision is made in the accounts for the said amount.

21. The company has made a request to Dept. of fertilizers, for granting additional subsidy of ' 64.97 Cr in order to compensate the higher cost of production of “N” due to usage of Naphtha as captive ammonia in production of complex fertilizers under Nutrient Based Subsidy (NBS) for the extended period from FY 2012-13 to till the conversion of feedstock to RLNG i.e. July,2019. The Additional Compensation will be considered as income, only when final order is received by the company from the Dept. of Fertilizers, Government of India.

22. Change in Accounting Policy on valuation of Inventories

Following the implementation of SAP accounting software, the Company has opted to change its

accounting policy on valuation of raw materials, packing materials and traded goods from FIFO to Weighted Average Cost from current year onwards. This change aligns the Company's accounting policy with the general industry practice, thereby enhancing the comparability of the entity's financial statements with those of other market participants within the industry.

The Company's previous accounting software - OLIS - did not have the provision to determine the valuation of closing stock of raw materials, packing materials and traded goods on weighted average method. Therefore, it is impracticable to determine the period-specific effects of change in accounting policy on comparative information for one or more prior periods, including opening stock of said items.

However, the closing stock of raw materials, packing materials and traded goods are computed on FIFO method, manually and the impact is disclosed below:

The profit for the current year is higher by ' 0.76 cr on account of change in the accounting policy for valuation of raw materials, packing materials and traded goods from FIFO to weighted average cost.

23. Employee Advances

Ad-hoc advance was granted to employees amounting to '17.54 Cr from FY 2019, in anticipation of wage revision. However, wage revision was approved only the periods commencing from April 2023, and hence, the excess amount paid to employees is being recovered from salary in 20 installments commencing from September 2024 salary payment.

24. Disclosure as per Ind AS 108 ‘Operating segments’

Basis for segmentation

In the case of the Company, Chairman & Managing Director(CMD) is considered to be the Chief Operating Decision Maker (CODM). The CMD reviews the performance of the Company and allocate resources based on the various management information reports provided by the respective departments of the Company.

The CODM reviews the performance of the Company primarily as two segments:

a. Fertilizers (Urea and NPK);

b. Other activities (Trading activities and Bio fertilizers);

However, since the revenue from other activities constitutes less than 5% of the reported revenue and no significant assets are employed for these activities, the management is of the view that the Company has only one reportable segment that relates to manufacture of sale of fertilizers.

Geographical information

The Company is in the operation of manufacture and sale of fertilizers within India, the entire revenue is domestic and all non-current assets are situated in India only.

Revenue from major customer

There is no single customer that accounts for more than 10% of the Company's revenue, other than subsidy from Government of India.

27. The Sick Industrial Companies (Special Provisions) Act (SICA) has been repealed from December 01, 2016 and the Board for Industrial and Financial Restructuring (BIFR) stand dissolved from that date. The Company is pursuing legal options to file the Revival proposal to the National Company Law Tribunal (NCLT). However, based on PDIL report, The Company has submitted financial restructuring proposal with DOF, GOI for their consideration.

28. Penalty on Non-Compliance of Composition of Board:

The company is not having the required number of Independent Directors on its Board due to vacancy arising out of expiry of term from 6th June, 2019 onwards. Accordingly, National Stock Exchange ('NSE”) has levied a penalty of ' 1.12 Cr on the said noncompliance, which has been duly paid by the company.

Being a public sector undertaking, appointment of independent directors on the board lies in the hands of the Govt. of India, which is to be treated as Impossibility of compliance. The company has shown the said amount under “Other Financial Assets - Current”, as the same can be claimed back once the said non-compliance is being rectified by the company.

29. Other Statutory Information:

a. The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. For immovable properties given as collateral security for loans from banks and financial institutions, the title deeds were deposited with the said banks/ financial institutions.

b. The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Asset) since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and Equipment in accordance with Ind AS 16.

c. The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment.

d. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at the reporting date.

e. Registration, Modification and Satisfaction of charges relating to the year under review, had been filed with the Registrar of Companies, within the prescribed time. However, in respect of certain Modification and Satisfaction of charges relating to the year under review, the Company is in the process of filing the necessary forms with the Registrar of Companies.

f. There are no proceedings 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.

g. The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with the books of accounts, except in the following cases:

h. The Company is not declared as willful defaulter by any bank or financial Institution or other lenders.

i. The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

j. The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.

k. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

l. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

m. The company has also 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

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h. The Company do not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

i. The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.

30. Balances shown under trade receivable, advances and trade payables are subject to confirmation / reconciliation/ adjustment, if any. The company has been sending letters for confirmation to parties. However, the Company does not expect any material dispute with respect to the recoverability/payment of the same.

In the opinion of the management, the value of current assets, current liabilities, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.

31. The Company is engaged in manufacturing and trading of fertilizers, which is an essential input for agriculture. Central and State Governments are giving top most

priority on agriculture activities during Covid19 situation also. The Company expects to continue the normal operations and does not expect any impact of Covid19 in its operations which is evident from the fact that the production of Urea during the year 2024-25 is at 108.60% capacity with 5,28,400 MT of Urea production.

32. Amount in the standalone financial statements is presented in Cr (up to two decimals) except for per share data and as other-wise stated. Certain amounts, which do not appear due to rounding off, are given as follows:

33. The figures for the previous year have been regrouped / reclassified to correspond with the current year's classification and disclosure.