p) Provisions and Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of
any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a
finance cost

Contingent Assets are not recognised in financial statements but are disclosed, since the former treatment may result in the recognition of income
that may or may not be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and
its recognition is appropriate.

q) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statements comprises cash at bank and in hand and short term investments with an
original maturity of 3 months or less.

r) Cash Flow Statements

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

s) Derivatives Instruments

The Company holds derivative financial instruments such as Foreign Currency Forward Contracts to mitigate the risk of changes in exchange
rates on Foreign currency exposures. The counter party for these contracts is bank. The Company initially recognised such derivative
instruments 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 & Loss, except for the effective portion of cash flow hedge which is recognised in Other
Comprehensive Income and later to statement of profit and loss in the period when they arise. Derivatives are carried as Financial Assets when
the fair value is positive and as financial liabilities when the fair value is negative.

t) Segment Reporting

The Company is organized into three primary business segments mainly Fertilizers, Chemicals and Speciality Chemicals, Agro (Soya) and
others, based on nature of products. The management and administration are centralized and considered as part of ‘Fertilizers & Chemicals'
segment, being major activities.

Unallocated items include general corporate income, expense, assets and liabilities items which are not allocated to any business segment.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial
statements of the Company as whole.

u) Fair Value Measurements

The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.

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

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous
market must be accessible by the Company.

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

i. Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

ii. Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.

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

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the fair value hierarchy as explained above.

v) Significant Accounting Judgments, Estimates and Assumptions

In the process of applying the Company's accounting policies, management has made the following estimates, assumptions and judgements
which have significant effect on the amounts recognized in the financial statement:

i. Income taxes

Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The company reviews
at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead
to significant adjustment to the amounts reported in the standalone financial statements.

ii. Contingencies

Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against
the company as it is not possible to predict the outcome of pending matters with accuracy.

iii. Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable
amounts. Individual trade receivables are written off when management deems them as not collectible. Impairment is made on ECL, which are the
present value of the cash shortfall over the expected life of the financial assets.

iv. Defined Benefit Plans.

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

v. Fair Value Measurement of Financial Instruments.

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

Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards)Rules as issued from time to time. During the year ended March 31, 2025, MCA has notified Ind AS117- Insurance Contracts and
amendments to IndAS 116-Leases, relating to sale and lease back transactions, applicable from April 1,2024. The Company has assessed that there
is no significant impact on its financial statements.

I) Rupee Term Loan of Rs 405.34 lakhs (Previous Year 635.40 Lakhs) , carrying interest @ 9.40% p.a.Sanctioned Rs. 1125 lakhs in 2021-22 by
HDFC bank with tenure of 60 months ending October 2026. The Loan is primarily secured by way of First Pari-pasu charge on immovable and
movable Fixed Assets.Secondary Security is Personal Guarantee of Shri Shailesh Khaitan.This loan was used for the purpose it was drawn.

II) Rupee Term Loan of Rs 1012.50 lakhs (Previous Year 1462.50 Lakh) carrying interest @ 7.55% p.a.Sanctioned Rs. 2250 lakhs in 2022-23 by AXIS
bank with tenure of 60 months ending April 2027. The Loan is primarily secured by way of First Pari-pasu charge on immovable and
movable Fixed Assets.Secondary Security is Personal Guarantee of Shri Shailesh Khaitan.This loan was used for the purpose it was drawn.

iil) Rupee Term Loan of Rs 110.61 Lakhs (Previous Year 141.44 Lakh) carrying interest @ 8.85% p.a, Sanctioned Rs 170 Lakhs in March 2023 by
ICICI bank with tenure of 60 months ending March 2028. The Loan is secured by the hypothecation of the car.

iv) Rupee Term Loan of Rs 147.68 Lakhs (Previous Year 194.46 Lakhs) carrying interest @ 7.30% p.a, Sanctioned Rs 325 Lakhs in 2020-21 by
HDFC Bank with tenure of 84 months ending December 2027. The Loan is secured by the hypothecation of the car.

v) Rupee Term loan of Rs 2200.00 Lakhs (Previous year Nil Lakhs) Carrying interest @ 9.00% p.a. Availed from Shradha Projects Ltd Rs.1588.00
Lakhs ) & The Majestic Packaging Pvt Ltd (Rs 612.00 Lakhs) in April 2024-25 with tenure of 15 months. This is Un Secured related party loan.

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These
comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include
loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers,
intermediaries and the market participants help us to mitigate such risk.

Foreign Currency Risk and sensitivity

The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign
exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the
company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

Commodity price risk and sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to
fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material price through hedging in the form of advance
procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices
under check cost of material hedged to the extent possible.

II. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is
primarily from trade receivables amounting to Rs. 7543.20 Lakhs and Rs.5239.88 Lakhs as of March 31,2025 and March 31,2024 respectively. Trade receivables are
typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of
business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision
matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company's historical experience for

iii) The Company do 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.

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.

v) The Company have not 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.

vi) The Company have not declared willful defaulter by any banks or any other financial institution at any time during the financial year.

55. Previous year figures have been re-arranged and/or regrouped wherever considered necessary, to confirm current year classification.

The accompanying notes 1 to 55 form an integral part of these financial statements.

As per our report of even date For and on behalf of the Board of Directors of Khaitan Chemicals and Fertilizers Limited

For NSBP & Co. SHAILESH KHAITAN UTSAV KHAITAN

Chartered Accountants (Chairman & Managing Director) (Joint Managing Director)

Firm’s Registration No. : 001075N DIN : 00041247 DIN : 02788763

Ram Niwas Jalan

P.^artn®^r HARSH VARDHAN AGNIHOTRI SEJAL MAHESHWARI

^{em ers ip um er:} (President & Chief Financial Officer) (Company Secretary & Compliance Officer)

Place : New Delhi PAN No.: ACXPA9315K Membership No. : A64027

Date : April 23, 2025