(1) In case of semi finished goods, during the year ended March 31, 2024'5.35 million (March 31, 2023 ' Nil, April 01, 2022 ' Nil) was recognised as expense for inventories at net realizable value.

(2) In case of finished goods, during the year ended March 31, 2024'3.45 million (March 31, 2023 ' Nil, April 01, 2022 ' Nil) was recognised as expense for inventories at net realizable value.

(3) The secured cash credit facilities are covered by paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 14).

(1) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person nor any trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member.

(2) Generally, as per credit terms trade receivable are collectable within 90-120 days although the Company provide extended credit period with interest between 18%-36% considering business and commercial arrangements with the customers.

(3) The secured cash credit facilities are covered by paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 14).

(4) For information about credit risk and market risk related to trade receivable, please refer note 36.

12.5 Terms/rights attached to equity shares

Equity shares have a par value of ' 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.

12.6 Issue of Shares Under Bonus shares

In Financial year 2021-22 the Company had issued 82,27,791 bonus shares of face value of ' 10 each. Bonus issue was in proportion of 1:2 on the record date of November 27, 2021 for 82,27,791 fully paid equity shares to the shareholders. The shares was issued from securities premium reserve and retained earnings.

12.7 The Company has not bought back any equity shares during the period of five years immediately preceding the reporting date.

12.8 The Company has not issued any shares for consideration other than cash.

Nature & Purpose of Reserves

Retained earnings:

Retained earnings are the profits earned till date, less any transfers to other reserves and dividends distributed.

Securities premium:

Securities premium comprises of the premium on issue of shares. The reserve can be utilised in accordance with the specific provision of the Companies Act, 2013.

Details of terms and securities for the above borrowing facilities are as follows:

1) Cash Credit from State Bank of India amounting to ' 300 million is secured by Hypothecation of stocks & receivables and equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The cash credit facility carries interest rate linked to 6 months MCLR Plus spread of 0.30%. (March 31, 2023: 6 months MCLR plus spread of 1.05%). The effective interest rate is 8.85%.

2) The term loan from State Bank India amounting to ' 400 million is sanctioned for construction & establishment of saykha technical manufacturing plant, secured by Hypothecation of all the plant & machineries, utility item, furniture fixture, lab items, misc fixed assets created out of credit facilities extended by bank situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch and equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at Kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The loan carries interest rate linked to 6 months MCLR plus spread of 0.30%. (March 31,2023: 6 months MCLR plus spread of 1.05%) The effective interest rate is 8.80% (March 31, 2023: 9.10%). The loan is repayable in 64 monthly installments commencing from February 2024.

All the credit facilities extended by State Bank of India is also secured by personal guarantee of Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talaviya, Vishalbhai H Domadia, Jagdish R Savaliya, Rameshbhai R Talavia, Jamankumar H Talavia.

3) Cash Credit from HDFC Bank amounting to ' 227.50 million is secured by Hypothecation of stocks, debtors, plant & machinery and

equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The effective interest rate is 8.37%. (March 31, 2023: 8.75%)._

4) The term loan from HDFC bank amounting to ' 500 million is sanctioned for construction & establishment of saykha technical manufacturing plant, secured by Hypothecation of plant & machinery and equitable mortgage of Factory land & buildings situated at Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building situated at 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The effective interest rate is 8.36% (March 31, 2023: 10.05%). The loan is repayable in 109 monthly installments commencing from April 2024.

All the credit facilities extended by HDFC Bank is also secured by personal guarantee of Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talaviya, Vishalbhai H Domadia, Jagdish R Savaliya, Rameshbhai R Talavia, Jamankumar H Talavia.

5) The unsecured loans from directors & others are repayable on demand when there is surplus cash available with the Company. Based on the management's assessment of repayment the same has been classified as current as at March 31, 2024.

6) Vehicle loans are secured against the same vehicles for which loan is taken. All vehicle loan are repayable in 60 monthly installments commencing from date of sanction. The loan carries fixed interest rate of 7.25%-9.10%.

7) Overdraft facility from HDFC Bank amounting to ' 450 million is secured against fixed deposits of ' 500 million. The said facility is fully repaid during the current financial year. The OD facility carries interest rate linked to FD ROI plus spread of 1%. The effective interest rate is 7.50%.

(1) In case of finished goods, during the year ended March 31, 2024'3.45 million (March 31, 2023 ' Nil) was recognised as expense for inventories at net realizable value.

(2) In case of semi finished goods, during the year ended March 31, 2024 ' 5.35 million (March 31, 2023 ' Nil) was recognised as expense for inventories at net realizable value.

28. EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

*The current patent infringement litigation initiated against the Company before the Hon'ble Delhi High Court, is at a pre-trial stage. The pleadings have been completed and the Company has an arguable case in defence in terms of invalidity. The Company's appeal against the interim order is also pending before the Division Bench (2 Judge Bench) of the Delhi High Court. There is no immediate likelihood of financial liability being imposed upon the Company as that would only be adjudicated by the Courts post-trial which is likely to take a few months to years.

ii) Defined benefits plan

The Company provides for gratuity for employees in India 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 for the number of years of service calculated on actuarial basis. The gratuity plan is a unfunded plan. The retirement age for the employees is 58 years.

30.2 Other Long-term employee benefits

i) Defined Benefit plan (Privilege Leave):

Entitlements to annual leave, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of leave encashment as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Entitlements to annual leave, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long-term employee benefits. The Company's liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise. Amount of ' 8.47 million (March 31, 2023 ' Nil) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.

ii) Defined Benefit plan (Sick Leave):

Amount of ' 3.92 million (March 31, 2023 ' Nil) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.

31. RELATED PARTY DISCLOSURES:

March 31, 2024

In accordance with the requirements of Ind AS - 24 'Related Party Disclosures', names of the related parties, related party relationship, transactions and outstanding balances with whom transactions have taken place during reported periods are:

31.1 Name of related parties and their relationship

Key Management Personnel:

Rameshbhai Ravajibhai Talavia (Managing Director)

Jamankumar Hansarajbhai Talavia (Whole-Time Director)

Vishal Domadia (Chief Executive Officer)

(Designated on January 06, 2023)

Jagdishbhai Ravjibhai Savaliya (Whole-Time Director)

Vinay Joshi (Chief Financial Officer) (Joined on January 06, 2023)

Malvika Bhadresh Kapasi (Company Secretary)

Dipak Bachubhai Kanparia (Independent Director)

Bhaveshkumar Jayantibhai Ponkiya (Independent Director) Amisha Fenil Shah (Independent Director)

Relatives of Key Management Personnel:

Manjulaben Rameshbhai Talavia Muktaben Jamankumar Talavia Artiben Domadia Illaben Jagdishbhai Savaliya Prafullaben Shantilal Savaliya

Megi Ramesh Talavia Darshit Rameshbhai Talavia Jinal Jamankumar Talavia Hitarth Jamankumar Talavia

Entity over which Key Management Personnel or their relatives are able to exercise significant influence:

Dharmaj Foundation

Entity over which the Company has significant influence:

Khetipoint Private Limited (Upto June 01, 2023)

Terms and conditions of transactions with related parties:

(i) The future liability for gratuity and compensated absence is provided on aggregated basis for all the employees of the Company taken as a whole, the amount pertaining to KMPs is not ascertainable separately and therefore not included above.

32. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are Schedule VII(ii) promoting education,including special education and employment enhancing vocation skills. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

34. SEGMENT REPORTING

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM) i.e. the Board of Directors. The Company's activities comprise manufacturing and dealing in pesticides including concessionaires of public health products for pest control, insecticides, herbicides, fertilizers and allied products related to research and technical formulations. As the Company's business activity falls within a single business segment viz. "Agri-Inputs" and hence there is no separate reportable segment as per Ind AS 108 "Operating Segment".

The management assessed that carrying values of financial assets i.e., cash and cash equivalents, Investments, loans, trade payables, trade receivables, other financial assets and liabilities as at March 31, 2024 and as at March 31, 2023 are reasonable approximations of their fair values largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Fair value hierarchy

The fair value of the Financial Assets and Liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company uses the following hierarchy for determining and/or disclosing the fair value of Financial Instruments by valuation techniques:

(i) Level 1: quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

(ii) Level 2: inputs other than quoted prices included within Level 1 that are observable for the Assets or Liabilities, either directly (i.e., as

prices) or indirectly (i.e., derived from prices).

(iii) Level 3: i nputs for the Assets or Liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

Financial instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks and ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

(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 risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Exposure to interest rate risk

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. The Company exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

(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's exposure to the risk of changes in foreign exchange rates relates to the Company's operating activities denominated in United States Dollar (USD), Arab Emirates Dirham (AED).

The following table sets forth information relating to unhedged foreign currency exposure as at March 31, 2024 and March 31, 2023.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, Euro & AED exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Company's receivables, from deposits with landlords and other security deposits and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade Receivables

Trade Receivables of the Company are unsecured. Credit risk is managed through periodic monitoring of the creditworthiness of customers in the normal course of business. The allowance for impairment of Trade receivables is created to the extent and as and when required, based upon the past and expected collection pattern of accounts receivables.

(C) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing through various short term and long-term loans at an optimized cost.

37. CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximize the shareholder value, to optimize returns to the shareholders and to ensure the Company's ability to continue as a going concern.

The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Notes:

i) The information below summaries the impact of restatement

on the balance sheet as on April 01, 2022:

a. Reclassification of Advance to Capital supplier from Other Current Assets to Other Non-current Assets ' 16.53 million.

b. Reclassification of Balance with Government Authorities from Other Non-current Assets to Other Current Assets ' 34.35 million.

c. Reclassification of interest on overdue trade receivables from Trade Receivables to Other Current Financial Assets ' 4.71 million.

d. Reclassification of Security Deposits received from customers from Other non-current liabilities to Other current financial liabilities ' 22.41 million.

e. Reclassification of Creditors for Capital Goods from Trade Payable to Other current financial liabilities ' 16.39 million.

f. Reclassification of employee benefits payable from Trade Payables to Other current financial liabilities ' 11.97 million.

ii) The information below summarises the impact of restatement

on the Balance Sheet as on March 31, 2023:

a. Correction of expenditure inadvertently capitalised in Capital Work in Progress, now charged off to Other Expenses ' 62.50 million.

b. Reclassification of Advance to Capital supplier from Other Current Assets to Other Non-current Assets ' 92.19 million.

c. Reclassification of Balance with Government Authorities from Other Non-current Assets to Other Current Assets ' 109.78 million.

d. Reclassification of interest on overdue trade receivables from Trade Receivables to Other Current Financial Assets ' 13.70 million

Footnote:

(i) Current Assets = Inventories Trade Receivable Cash & Cash Equivalents Other Current Assets Other financial assets

(ii) Current Liability = Short-term borrowings Trade Payables Other financial Liability Provisions Other Current Liability

(iii) Debt = long-term borrowing and current maturities of longterm borrowings

(iv) Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interest other adjustments like loss on sale of Fixed assets etc.

(v) Debt Service = Interest & Lease Payments Principal Repayments

(vi) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

41. THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 ('the Code') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

42. 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 under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

(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) 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:

(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.

(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:

(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 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).

(viii) The Company has not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines on wilful defaulters issued by the RBI.

(ix) There is no immovable property whose title deed is not held in the name of the Company.

(x) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(xi) The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013.

(xii) The Company has availed loans from banks on the basis of security of current assets. The Company files statement of current assets with the bank on periodical basis. Reconciliation of quarterly returns or statements of current assets filed with banks or financial institutions:

The reason for reconciliation between quarterly returns or statements of current assets filed with banks are as follows:

1) Inventories:

a) Inter-branch stock in transit,

b) Exclusion of stores and spares inventory,

c) Adjustments arising from the application of sales cut-off procedures.

2) Trade Receivables:

a) Reversal of interest income on overdue trade receivables,

b) Loss allowance made for trade receivables,

c) Adjustments to trade receivables due to period-end cut-off procedures,

d) Remeasurement of balances due to foreign exchange rate fluctuations,

e) Recognition of discounts and rebates applied to revenue within trade receivables.

3) Advances to Suppliers' and Advances from Customers':

a) Offsetting of these advances against trade payables and trade receivables.

4) Trade Payables:

a) Only inclusion of payables related to raw material and packing material vendor balances.

43. The Company uses an accounting software for maintaining its books of accounts during the year ended March 31, 2024, which has a feature of recording the audit trail (edit log) facility and the same has been operated throughout the year for all the relevant

transactions recorded in the accounting software. However, a) the trail feature was not enabled throughout the year for certain relevant transactions recorded in the accounting software at the application level. b) the audit trail feature was not enabled at the database level within the accounting software to log any direct data changes. No feature of audit trail being tampered with was noted in respect of the software.

44. In the financial year 2022-23, the Company had completed initial public offer (IPO) of 10,596,924 equity shares of face value of ' 10 each at an issue price of ' 237/- per share, comprising fresh issue of 9,113,924 shares (including 55,000 shares issued to employees at concessional rate of ' 227/- per share) and offer for sale of 1,483,000 shares by selling shareholders. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India limited (NSE) and BSE Limited (BSE) on December 08, 2022.

The Company had received an amount of ' 2014.39 million (net off IPO expenses of ' 145.06 million) from proceeds out of fresh issue of equity shares.

The entire IPO proceeds was utilized as per objects of IPO as tabulated above and certificate in this regard was issued by Care Edge Ratings (Monitoring Agency) which was submitted to the stock exchanges (BSE and NSE) on November 03, 2023.

45. During the year ended March 31, 2024, the Company has commenced its commercial production from January 22, 2024 at its new manufacturing plant situated at Saykha, Bharuch, Gujarat.

46. EVENTS AFTER THE REPORTING PERIOD

No Significant Subsequent events have been observed which may require an adjustments to the financial statements.