q) Provisions, contingent liabilities and contingent
assets

A provision is made when there is a present obligation (legal or
constructive) as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made of
the amount of the obligation. Provisions are determined based
on the present value of the management's best estimate of the
amount required to settle the present obligation at the end
of the reporting period. The discount rate used to determine
present value is a pre-tax rate that reflects current market
assessment of time value of money and the risks specific to
the liability.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.

Contingent assets are not recognized but disclosed in the
financial statements.

r) Operating segments

Operating segments are components of the Company whose
operating results are regularly reviewed by the chief operating
decision maker (CODM) to make decisions about resources to
be allocated to the segment and assess its performance and
for which discrete financial information is available. Specialty
chemical business is identified as single operating segment for
the purpose of making decision on allocation of resources and
assessing its performance.

s) Earnings per share

Earnings per share are calculated by dividing the net profit or
loss attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during
the period.

Diluted earnings per share is computed by adjusting the figures
used in the determination of basic EPS to take into account:

a) after tax effect of interest and other financing costs
associated with dilutive potential equity shares,

b) the weighted average number of additional equity
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

t) Cash flows statement

Statement of cash flows is prepared segregating the cash flows
into operating, investing and financing activities. Cash flows
are reported using the indirect method, whereby net profit
for the period is adjusted for the effects of transactions of
non-cash nature, working capital changes, any deferrals or
accruals of past or future operating cash receipts or payments
and items of income or expenses associated with investing or
financing cash flows.

For the purpose of presentation in the statement of cash flows,
cash and cash equivalents include cash on hand, cash at banks,
other short-term deposits and highly liquid investments with
original maturity of three months or less that are readily
convertible into cash.

u) Cost recognition

Costs and expenses are recognised in statement of profit and
loss when incurred and are classified according to their nature.

v) Government grants

The Company recognizes government grants only when there
is reasonable assurance that the conditions attached to them
will be complied with and the grants will be received.

When the grant relates to an expense item, it is recognized as
income in statement of profit and loss on a systematic basis

over the periods, to match with the related costs, for which it
is intended to compensate.

When the grant relates to an asset, it is recognized as deferred
government grant in the balance sheet and then subsequently
transferred to statement of profit or loss on a systematic basis
over the expected useful life of the related asset.

w) Exceptional items

Exceptional items refer to items of income or expense,
including tax items, within the statement of profit and loss
from ordinary activities which are non-recurring and are of
such size, nature or incidence that their separate disclosure
is considered necessary to explain the performance of
the Company.

x) Events after the reporting period

Adjusting events (that provides evidence of condition that
existed at the balance sheet date) occurring after the balance
sheet date are recognized in the financial statements. Material
non-adjusting events (that are inductive of conditions that
arose subsequent to the balance sheet date) occurring after
the balance sheet date that represents material change and
commitment affecting the financial position are disclosed in
the Directors' report.

Dividend: The Company recognises a liability to make
distributions of dividend to equity holders, when the
distribution is authorised and the distribution is no longer
at the discretion of the Company. As per the corporate laws
in India, a distribution is authorised when it is approved by
the shareholders. After approval, a corresponding amount is
recognised directly in equity.

y) Application of new and revised Indian Accounting
Standard (Ind AS)

The Ministry of Corporate Affairs (MCA) has via notification
dated May 7, 2025 and August 13, 2025 notifies Companies
(Indian Accounting Standards) Amendment Rules, 2025 which

amends certain accounting standards and are effective April
1,2025

Ind AS 21 - The Effects of Changes in Foreign Exchange Rates:

The amendment specifies the exchange rate to use in reporting
foreign currency transactions when exchangeability between
two currencies is temporarily lacking.

Ind AS 1, Presentation of Financial Statements:

The amendment relates to classification of liabilities as current
or non-current and non-current liabilities with covenants. In
the context of classifying a liability as current, it removes the
requirement of existence of a right to defer settlement for at
least 12 months after the reporting date and instead requires
that the said right should exist on the reporting date and have
substance. The amendment also introduces guidance on
classification of liabilities with covenants.

Ind AS 7, Statement of Cash Flows and Ind AS 107
Financial Instruments:

The amendment in Ind AS 7 requires to inform users of
financial statements of the existence of supplier finance
arrangements and explain the nature of the arrangements, the
carrying amount of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add supplier finance
arrangements as a factor that may cause concentration of
liquidity risk.

Ind AS 12, Income taxes - (International Tax Reform - Pillar
Two Model Rules)

The amendments provide a temporary mandatory relief from
deferred tax accounting for top-up tax and require companies
to disclose that they have applied the relief. This relief is
immediate and applies retrospectively. The amendments also
require companies to provide new disclosures to compensate
for potential loss of information resulting from the relief.

The Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not have
any significant impact in its standalone financial statements.

8 Investments (Continued)

In accordance with Ind AS 109, this investment is classified and measured at Fair Value Through Profit or Loss (FVTPL). Per the
contractual terms of the shareholder agreement, this investment is fully redeemable / refundable at par upon the expiry of the
operational term, with no variable upside or downside exposure beyond the principal amount.

In the absence of sufficient recent information to determine fair value more precisely, and having regard to the contractually
guaranteed exit at par, management has used cost as the best estimate of the investment's fair value as at the reporting date, in
accordance with Ind AS 109. Further, No indicators exist to suggest that the cost is unrepresentative of its fair value.

(iii) In accordance with Ind AS 27, investments in equity instruments of subsidiaries are carried at cost, less impairment losses, if
any. The Company has not designated any equity investments as, measured at fair value through other comprehensive income
(FVTOCI) in accordance with Ind AS 109- Financial Instruments.

(iv) The Company has assessed its investments for impairment in accordance with the applicable requirements of Ind AS 109 -
Financial Instruments and Ind AS 36 - Impairment of Assets, wherever applicable. Based on the assessment performed, no
indicators of impairment were identified as at 31 March 2026 and 31 March 2025 and accordingly, no impairment loss has been
recognised during the years ended 31 March 2026 and 31 March 2025 .

(v) The Company has complied with the permitted number of subsidiary layers, prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(vi) The Company does not have any fellow subsidiaries, step down subsidiaries, associates or joint ventures.

(vii) During the years ended 31 March 2026 and 31 March 2025, no subsidiaries were incorporated, liquidated, merged, demerged,
or otherwise restructured.

(viii) Pursuant to the resolution passed by the Board of Directors on 4 October 2025, the Company entered into a definitive agreement
to acquire a 10.99% equity stake in AMPIN C&I Power Twenty Six Private Limited in connection with its renewable energy
procurement arrangement under a captive power structure.

Notes:

(i) Refer note 43 and 44 for financial instruments- fair values and risk measurement respectively.

(ii) In accordance with Ind AS 109- Financial Instruments, the Company has assessed the credit risk associated with its financial assets.
Based on the evaluation, no financial asset has shown a significant increase in credit risk since initial recognition. Consequently,
no loss allowance under the expected credit loss (ECL) model has been recognised during the years ended 31 March 2026 and
31 March 2025.

(iii) Security deposits are primarily in respect of statutory and contractual deposits given to public utility service providers (e.g.,
electricity, water, gas) and include deposits for other commercial services. These are measured at amortised cost unless otherwise
stated, in compliance with Ind AS 109.

(iv) The Company enters into foreign exchange forward contracts to mitigate the risk of fluctuation in foreign exchange rates in respect
of its forecasted transactions and highly probable realisations from trade receivables. These forward contracts are not designated
as hedging instruments under Ind AS 109, and hence are classified as financial instruments at fair value through profit or loss
(FVTPL). (refer note 44)

Notes:

(i) The Company does not have any loan receivables from directors or other officers of the Company or any of them either severally
or jointly with any other persons and from firms or private companies respectively in which any director is a partner or a director
or a member in compliance with Section 186 and Schedule V of the Companies Act, 2013.

(ii) Refer note 43 and 44 for financial instruments- fair values and risk measurement respectively.

(iii) The Company has not granted any loans or advances (in the nature of loans) to promoters, directors, key managerial personnel
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are: (a)
repayable on demand; or (b) without specifying any terms or period of repayment.

(iv) The Company has not advanced or given loan 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.

(v) Refer note 49 for the additional regulatory information.

(i) Trade Receivables as of 31 March 2026 and 31 March 2025 include '266.08 millions and '141.69 millions, respectively,
representing invoiced amounts where the transfer of control of goods is pending fulfillment. In line with Ind AS 115, these
balances are presented within Trade Receivables as they represent an unconditional right to consideration, with the corresponding
revenue deferred under contract liabilities for both reporting periods.

(ii) The Company does not have any trade receivables due from directors or other officers either severally or jointly with any other
person. Similarly, no trade receivables are due from firms or private companies in which any director is a partner, director, or
member, except for commercial balances outstanding from its wholly-owned subsidiaries, in compliance with the disclosure
requirements of Schedule III to the Companies Act, 2013

(iii) Refer note 43 and 44 for financial instruments- fair values and risk measurement respectively.

(iv) Refer note 18 for details of security, if any, held against trade receivables.

(v) Trade receivables are non-interest bearing and have credit terms generally ranging from 30 to 180 days.

(vi) Refer note 42 for trade receivables from related parties.

(vii) Refer note 41 for segment reporting under Ind AS 108- Operating Segments.

(viii) Refer note 35 for reconciliation of contract assets and contract liabilities arising under Ind AS 115.

(ix) Refer note 49 for the additional regulatory information.

(x) In determining the allowances for credit losses of trade receivables, the Company has used a practical expedient by computing
the expected credit loss (ECL) allowance for trade receivables based on a provision matrix. The provision matrix takes into account
historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on
the ageing of the receivables that are due and the rates used in the provision matrix.

Since the Company calculates impairment under the "Simplified approach" for trade receivables containing significant financing
component and for trade receivables that do not contain significant financing component, then it is not required to separately
track changes in credit risk of trade receivables, as the impairment amount represents "lifetime" expected credit loss.

Accordingly, based on a harmonious reading of Ind AS 109 and the disclosure requirements under Schedule III to the Companies
Act, 2013, trade receivables have been presented in aggregate, as no impairment allowance is required to be recognised as at
31 March 2026 and 31 March 2025, irrespective of whether they contain a significant financing component or not.

(ii) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of ' 10 per share. Each shareholder is entitled to one vote
per share held.

Equity shareholders rank pari passu with respect to dividend and repayment of capital in the event of winding up. Dividends are
declared and paid as approved by the shareholders in general meetings.

(iii) Aggregate number and class of shares allotted as fully paid-up pursuant to any contract(s) without payment
being received in cash or by way of bonus share or shares bought back during the period of five years immediately
preceding the reporting date:

(a) The Company has not issued and not allotted any fully paid-up equity shares pursuant to any contract, without payment
being received in cash.

(b) During the year ended 31 March 2021, the Company has allotted 12,052,500 numbers of equity shares of the face value
of ' 10 each by way of bonus share in the ratio of 1.5:1. The same was approved by the shareholders on 27 January 2021.

(c) The Company has not bought back any fully paid-up equity shares.

(vii) Nature of securities are as follows:

Working capital facilities from ICICI Bank Limited have been secured by way of first pari-passu charge on immovable fixed assets
of Dahej SEZ unit and movable fixed assets of Dahej SEZ unit and Ankleshwar unit of the Company. Further, secured by pari-passu
charge on current assets of the Company.

Working capital facilities from CITI Bank N.A. have been secured by way of first pari-passu charge on immovable and movable
fixed assets of Dahej SEZ unit and exclusive charge on immovable and movable fixed assets of Vadodara unit of the Company.
Further, secured by pari-passu charge on current assets of the Company.

Working capital facilities from State Bank of India have been secured by way of first pari-passu charge on immovable and movable
fixed assets of Dahej SEZ unit and movable fixed assets of Ankleshwar unit of the Company. Further, secured by pari-passu charge
on current assets of the Company.

18 Borrowings (Continued)

Working capital facilities from DBS Bank Limited have been secured by way of first pari-passu charge on immovable fixed assets of
Dahej SEZ unit and movable fixed assets of the Company. Further, secured by pari-passu charge on current assets of the Company.

Vehicle loans from Axis Bank Limited have been secured by way of hypothecation of respective vehicles and personal guarantees of
promoters cum directors of the Company.

Vehicle loan from ICICI Bank Limited has been secured by way of hypothecation of respective vehicles.

Vehicle loan from HDFC Bank Limited has been secured by way of hypothecation of respective vehicles and personal guarantee of
promoter cum director of the company.

(i) The Company does not have any trade payables to any directors or other officers of the Company or any of them either severally
or jointly with any other persons; or any firms or private companies respectively in which any director is a partner or a director
or a member.

(ii) Refer note 43 and 44 for financial instruments- fair values and risk measurement respectively.

(iii) Trade payables are non-interest bearing and are settled as per credit terms generally ranging from 30 to 180 days.

(iv) The Company does not have any trade payables to related parties.

(v) Refer note 49 for the additional regulatory information.

(vi) The amount due to micro and small enterprises (MSME) as defined in the "The Micro, Small and Medium Enterprises Development
Act, 2006" (hereinafter referred to as "MSMED Act") has been determined to the extent such parties have been identified on the
basis of information available with the Company. The disclosures relating to micro enterprises and small enterprises is as below:

23 Tax (assets)/ liabilities (net) (Continued)

(ii) MAT credit entitlement:

Pursuant to the Finance Act, 2026 and the transitional provisions of the Income-tax Act, 2025, the Minimum Alternate Tax
("MAT") regime has been converted into a final levy with effect from 1 April 2026. Accordingly, no MAT credit shall arise
in respect of MAT paid on or after that date. However, MAT credit validly accumulated up to 31 March 2026 ("legacy MAT
credit") continues to be protected and may be carried forward for the balance of the prescribed period, subject to an overall
maximum carry-forward period of 15 assessment years from the assessment year in which such credit originally arose.

The utilization of legacy MAT credit is governed by the transitional provisions of the Income-tax Act, 2025. Where the
Company opts for the concessional corporate tax regime under the Act, such credit may be set off against income-tax
liability, subject to a maximum utilization limit of 25% of the tax payable on total income for the relevant financial year.

(i) In accordance with the requirements of Ind AS 33 - Earnings Per Share, basic and diluted earnings per equity share have been
computed for continuing operations and presented for each reporting period. The Company has not discontinued any operations
during the reporting periods.

(ii) The Company's basic and diluted Earnings Per Share (EPS) are calculated based on the face value of ?10 per equity share. For
details on the rights, preferences, and restrictions attached to these equity shares, refer to Note 16.

(iii) The Company does not have any outstanding dilutive instruments such as convertible securities, options, or contingently issuable
shares as at the end of the reporting periods. Accordingly, the basic and diluted earnings per share are the same.

(iv) The weighted average number of equity shares used for computing earnings per share has been determined in accordance with
the provisions of Ind AS 33, and represents the number of equity shares outstanding at the beginning of the year, adjusted for
equity shares issued during the year, weighted on a time-apportioned basis.

35 Revenue from contract with customers

Revenue from sale of products is recognized at point in time, when the control over the goods has been transferred to the customer,
which generally coincides with the date of shipment or delivery as per the terms of the contract.

Revenue from sale of services is recognised on satisfaction of performance obligation over time or at a point in time, depending upon
the contractual terms.

Specialty chemical business" has been identified as single operating segment for the purpose of making decision on allocation of
resources and assessing its performance.

In line with paragraph 114 of Ind AS 115, the Company has presented disaggregated revenue disclosures which reflect the nature,
amount, timing, and uncertainty of revenue and cash flows in a manner that is most representative of the Company's performance.

(i) The Company has not recognised any government grants or assistance where the conditions for recognition are not satisfied, or
which are subject to contingencies.

(ii) During the year ended 31 March 2026, the Company has de-recognised government grants aggregating to ' 1.89 million (31
March 2025: ' 0.53 million), comprising ' 0.79 million (31 March 2025: 0.39 million) under the Duty Drawback Scheme and
' 1.10 million (31 March 2025: ' 0.14 million) under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
These amounts have been de-recognised, as the associated revenue from export of products has been deferred in accordance
with Ind AS 115. Consequently, the government grants linked to such transactions have also been de-recognised in accordance
with Ind AS 20.

(iii) During the year ended 31 March 2026, the Company received a government grant amounting to ' 14.20 million under 'Scheme-1:
Assistance to establish Research & development / Development Product Center for R&D / Product Development Center for
specialty chemical Catalysts' for its Vadodara location. In accordance with Ind AS 20, the Company has recognized this grant upon
fulfillment of the underlying conditions. The grant has been treated as deferred income and is presented under Non-Current /
Current Liabilities as 'Deferred Government Grant'. This income is being systematically recognized in the Standalone Statement
of Profit and Loss over the useful life of the related capital assets.

(iii) The Company has generally received all foreign trade receivables from its overseas subsidiaries and unrelated third parties within the
timelines stipulated under the Foreign Exchange Management Act, 1999 and Reserve Bank of India regulations.

38 Leases

Company as lessee:

Short-term leases: The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases having a
lease term of 12 months or less, leases of low-value assets and cancellable leases. Lease payments associated with such leases are
recognised as an expense in the standalone statement of profit and loss on a straight-line basis over the lease term.

The right-of-use assets recognised by the Company primarily represent leasehold land arrangements obtained on long-term leases,
for which the lease consideration has been prepaid upfront. Accordingly, the Company does not have any outstanding lease liabilities
as at 31 March 2026 and 31 March 2025 (refer note 4).

40 Employee benefits

Employee benefits of the Company includes all forms of consideration (directly or indirectly) given by the Company in exchange for
services rendered by its employees or on termination of employment.

A Short-term employee benefits:

Measurement and recognition:

The Company measures short-term employee benefits on an undiscounted basis and it does not involve any actuarial valuation on
the same.

The Company has recognised short-term employee benefits expected to be paid:

a) as employee benefits expense in the standalone statement of profit and loss, if it does not form part of the cost of an asset as
per any other Ind AS (Ind AS 2 "Inventories" or Ind AS 16 ""Property, plant and equipment"") (refer note 28), and

b) as a current liability (employee benefits payable) or as a current asset (accrued expense) in the standalone balance sheet, after
deducting any amount already paid. (refer note 20)

B Post-employment benefits:

1 Defined contribution plans:

a) Description of plan:

The Company makes defined contribution to the recognised employee provident fund (EPF) and to employee state insurance
corporation (ESIC) as per provisions of The Code of Social Security ,2020 for qualifying employees, which are recognised as
employee benefits expense in the standalone statement of profit and loss, on accrual basis when an employee renders the
related service. The Company does not have any further contractual or constructive obligation, other than the contribution
payable to the provident fund.

b) Measurement and recognition:

Under these contributions, the Company is required to contribute a specified percentage of the payroll costs to fund the
benefits. The contributions payable to these plans by the Company are at rates specified in the provisions and rules of the
related laws.

40 Employee benefits (Continued)

2 Defined benefit plans:
i) Gratuity (funded):

a) Description of plan:

The Company makes annual contributions to defined benefit gratuity plan (funded) to finance the plan liability covering
eligible employees. The gratuity fund is separately managed and administered by a trust (approved under the Income tax
Act, 1961) and is legally separate from the Company. The plan is funded with Life Insurance Corporation of India (LIC) in
the form of qualified insurance policy. The contribution towards the trust fund is done as per rule 103 of Income Tax Rules,
1962. The provisions of plan in accordance with The Code on Social Security, 2020 are as follows:

The eligible employees are entitled to: post-retirement benefit at the rate of 15 days last drawn salary (monthly salary is
calculated for 26 days) for each completed year of service until the retirement age of 58 years, subject to ceiling of ' 2 million:

(i) On termination of employment due to superannuation or early retirement or resignation: with vesting period of 5
years of service.

(ii) On death or permanent disablement in service: without any vesting period.

Where employees leave the Company prior to full vesting of the contributions, the contribution payable by the Company
is reduced by the amount of forfeited contributions.

Governance of plan:

The fund is managed by a trust which is governed by the Board of trustees. The Board of trustees are responsible for
the administration, for overall governance of the plan assets, for the definition of the investment strategy and to act in
accordance with the provisions of the trust deed and rules in the best interests of the plan participants. They do periodic
reviews of the solvency of the fund and play a role in the long-term investment, risk management and funding strategy.

Investment strategy:

The investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory
requirements. The plan exposes the Company to various actuarial risks such as:

(i) Interest rate risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan's debt investments.

(ii) Salary inflation risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

(iii) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined
by reference to market yields at the end of the reporting period on government bond yields; if the return on plan asset
is below this rate, it will create a plan deficit. Currently, the plan has a relatively balanced investment in government
securities and other debt instruments.

(iv) Asset liability matching (ALM) risk: The plan faces the ALM risk, as to the matching cash flows. Since the plan is invested
in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

(v) Longevity (mortality) risk: The present value of the defined benefit plan liability is calculated by reference to the
best estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan's liability.

(vi) Concentration risk: The plan is having a concentration risk, as all the assets are invested with the insurance company
and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow
stringent regulatory guidelines which mitigate risk.

b) Measurement and recognition:

The present value of the defined benefit obligation and the related current service cost and past service cost is determined
based on actuarial valuation as at the reporting date and is measured using the "projected unit credit method", which

40 Employee benefits (Continued)

recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each
unit separately to build-up the final obligation.

The obligations are measured at the present value of the estimated future cash flows by applying various valuation
assumptions (referred below). The discount rate used for determining the present value of the obligation is based on the
market yields on Government bonds as at the date of actuarial valuation.

For the purpose of calculation, past service is rounded to the nearest integer. Suitable application of the ' 2 million ceiling
has been considered while conducting the valuation and during the years ended 31 March 2026 and 31 March 2025, there
were no plan amendments, curtailments and settlements.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried
out at 31 March 2026 and this valuation has been done in conformity with the Actuarial Practice Standard 27 (APS 27) and
the relevant guidance notes issued by Institute of Actuaries of India.

The Company has recognised actuarial gains or losses (net of tax) immediately in the other comprehensive income (OCI).

40 Employee benefits (Continued)

C Other long-term employee benefits:
i) Compensated absences (non-funded):
a) Description of plan:

The plan is non-funded and non-contributory defined benefits and cover the Company's liability for privilege leave. Under
the compensated absences plan, leave encashment is payable to eligible employees on separation from the Company due
to death, retirement, superannuation or resignation, at the rate of daily last drawn salary (monthly salary is calculated for
26 days), as per current accumulation of leave days. Other provisions of the plan are:

Accumulating paid absences may be either vesting (in other words, employees are entitled to a cash payment for unused
entitlement on superannuation or resignation or retirement) or non-vesting (when employees are not entitled to a cash
payment for unused entitlement on superannuation or resignation or retirement). An obligation arises, when employees
render service that increases their entitlement to future paid absences. The obligation exists and is recognised, even if the
paid absences are non-vesting, although the possibility that employees may leave before they use an accumulated non¬
vesting entitlement affects the measurement of that obligation.

b) Measurement and recognition:

The present value of the other long-term employee benefit and the related current service cost and past service cost is
determined based on actuarial valuation as at the reporting date and is measured using the "projected unit credit method",
which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures
each unit separately to build-up the final obligation.

The obligations are measured at the present value of the estimated future cash flows by applying various valuation
assumptions (referred below). The discount rate used for determining the present value of the obligation is based on the
market yields on Government bonds as at the date of actuarial valuation.

Based on the Company's past experience, the leave balances are split up into three proportions; leaves for while in service
availment, leaves for while in service encashment and leaves for encashment on exit. This proportion is considered to follow
the last in first out (LIFO) approach as guided in the Ind AS 19. During the years ended 31 March 2026 and 31 March 2025,
there were no plan amendments, curtailments and settlements.

The most recent actuarial valuation of the present value of the other long-term employee benefits were carried out at
31 March 2026 and this valuation has been done in conformity with the Actuarial Practice Standard 27 (APS 27) and the
relevant guidance notes issued by Institute of Actuaries of India.

The principal assumptions used for the purposes of actuarial valuation of other long-term employee benefits are same
assumptions that are used in actuarial valuation of defined benefit plan (gratuity) (referred above), except two additional
demographic assumptions which were as follows:

41 Segment reporting

In accordance with the principles laid down under Ind AS 108- Operating Segments, the Company has identified reportable segments
based on the internal reports that are regularly reviewed by the Chief Operating Decision Maker (CODM) to allocate resources and
assess performance. The Company has evaluated its business segments and determined that "Specialty chemical business" represents
the single operating and reportable segment for the Company.

42 Related party disclosures (Continued)

Notes:

(i) None of the directors are related to each other or to any other KMP, as per section 2(77) of the Companies Act, 2013.

(ii) The Company has not entered into any service contracts with its directors or KMP, that provide for benefits on termination other
than statutory entitlements.

(iii) The Company does not have any profit-sharing, stock option plans, contingent or deferred compensation arrangements with its
directors or KMP.

(iv) All the KMP's (other than executive directors) are interested in the Company only to the extent of the remuneration or benefits
to which they are entitled to as per their terms of appointment and reimbursement of expenses incurred by them during the
ordinary course of their service.

(v) All the KMP's other than its executive directors, are on regular employment contracts with the Company.

(vi) The directors have not received any kind of remuneration from any subsidiary of the Company.

43 Financial instruments

A Categories of financial assets and financial liabilities:

The Company's financial assets and financial liabilities can be categorised as follows:

(i) The Company has carried its investments in equity instruments of subsidiaries at deemed cost less provision for impairment, if
any as per paragraph D15 of Ind AS 101 "First-time adoption of Indian accounting standards". The Company does not have any
investment in equity instruments "designated" at FVTOCI.

(ii) The company measures its financial assets and liabilities at amortised cost, with the exception of investments, which are measured
at either cost or fair value through profit or loss (FVTPL) on a case-to-case basis.

(iii) The Company does not have any financial assets measured at FVTOCI.

(iv) During the years ended 31 March 2026 and 31 March 2025, the Company has not undertaken any reclassification or offsetting
of financial assets and financial liabilities.

(v) Refer note 15 for movement in loss allowance for expected credit losses on trade receivables.

(vi) The Company does not have any type of compound financial instruments.

(vii) Refer note 18 for details on security provided against financial assets and confirmation of no defaults or breaches in relation
to borrowings.

(viii) The Company has disclosed carried amount, net gains or losses if any, interests' income and interest expenses of all the categories
of financial assets and liabilities in respective notes forming part of standalone financial statements.

B Hedge accounting:

Derivatives not designated as hedging instruments: The Company uses foreign currency denominated borrowings and foreign exchange
forward contract to manage its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges
and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 4 to 6 months.
The Company does not use cash flow hedges, fair value hedges, hedging of net investment in foreign operations and embedded derivatives.

C Fair values:

The Company's management have assessed that the "carrying amounts" of financial assets and liabilities other than those valued
at Level 1 and Level 2 are considered to be reasonable approximation of their "fair values" due to their current and short-term
nature. Accordingly, the Company has not separately disclosed fair values as per paragraph 29 of Ind AS 107 " Financial instruments:
disclosures".

D Fair value hierarchy:

The fair value of financial instruments has been classified into three categories depending on the inputs used in the valuation technique.
The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
lowest priority to unobservable inputs (Level 3 measurements).

Level 1 quoted prices in an active market: This level of hierarchy includes financial assets that are measured by reference to quoted
prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares and
mutual funds. It has been valued using the closing price as at the reporting period on the stock exchanges.

43 Financial instruments (Continued)

Level 2 valuation techniques with observable inputs: This level of hierarchy includes financial assets and liabilities, measured using
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). The fair value of these instruments is determined using valuation techniques which maximise the
use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.

Level 3 valuation techniques with significant unobservable inputs: This level of hierarchy includes financial assets and liabilities measured
using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor based on available market data.

E Measurement of fair values:

The Company's management have used its best judgement in estimating the fair value of its financial instruments. When measuring
the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the
fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in
its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

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 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.

44 Financial instruments-risk management

The Board of Directors has the overall responsibility for establishing and governing the Company's risk management framework. The
Company has constituted a risk management committee, which is responsible for developing and monitoring the Company's risk
management policies. The Company's risk management policies are established to identify and analyse the risks faced by the Company,
to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes
in the policy accordingly. The key risks and mitigating actions have also been placed before the Audit Committee of the Company. This
note explains the nature, extent and sources of risks arising from financial instruments to which the Company is exposed at the end
of the reporting years and how the entity manages the risk and the related impact in the standalone financial statements.

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's financial assets
comprise mainly of investments, cash and cash equivalents, other bank balances, loans, trade receivables and other receivables. The
Company's business activities are exposed to a variety of financial risks namely:

A. Credit risk,

B. Liquidity risk and

C. Market risk"

A Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual and performance obligations resulting in financial loss
to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration risks.

Company's credit risks principally arise from trade receivables and other receivables, from investments, from cash and cash equivalents,
from forward exchange contracts and from security deposits or other deposits. The maximum credit exposure associated with financial
assets is equal to the carrying amount. Details of the credit risk specific to the Company along with relevant mitigation procedures
adopted have been enumerated below:

Trade and other receivables:

Customer credit risk has been managed by the Company and is subject to established policy, procedures and controls relating to
customer credit risk management by establishing credit limits, credit approvals and monitoring the credit worthiness of the customers to
which the Company extends the credit in the normal course of the business. The Company uses publicly available financial information
and its own trading records to rate its major customers. The Company's exposure and the credit ratings (if available) of its counterparties
are continuously monitored. The outstanding trade receivables are regularly monitored and appropriate action has been taken for
collection of overdue receivables.

Refer note 15, 35 and 41 for other disclosures related to trade receivables.

Other financial assets:

Other financial assets include investments, security deposits, forward exchange contracts, cash and cash equivalents, loans, other bank
balance and other receivables.

• Investments in mutual funds are made only in large fund houses of good repute and credit worthiness.

• Security deposits have been given to various government authorities including other counterparties. Being government authorities,
the Company believe that it does not has any exposure to credit risk. Security deposits to others are subject to established policy,
procedures and controls relating to counterparty credit risk management by monitoring their credit worthiness, etc.

• Foreign exchange forward contracts (not designated as hedging instruments) have been taken with the intention of reducing
foreign exchange risk of expected transactions. The Company attempts to limit the credit risk by only dealing with reputable
banks having high credit-ratings assigned by credit-rating agencies.

• Cash and cash equivalents and fixed deposits are placed with banks having good reputation and having high credit-ratings assigned
by international credit-rating agencies.

44 Financial instruments-risk management (continued)

B Liquidity risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable
losses. In doing this, management considers both normal and stressed conditions.

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the years ended. Cash flow from
operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs.
Any short-term surplus cash generated, over and above the amount required for working capital management and other operational
requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term
deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company also manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk:

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash
flows, along with its carrying value as at the balance sheet date. It includes principal, estimated interest payments and exclude the
impact of netting agreements. The contractual maturity is based on the earliest date on which the Company may be required to pay.

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 the market
prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates
and interest rates.

(i) 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 functional currency is Indian Rupees (INR). The Company has exposure to foreign currency mainly
by way of trade receivables, cash and cash equivalents, borrowings and trade payables (primarily USD and EUR) and is therefore
exposed to foreign exchange risk. Volatility in exchange rates affects the Company's revenue from exports markets and the costs
of imports, primarily in relation to exports with respect to the US-dollar. Adverse movements in the exchange rate between the
Rupee and the relevant foreign currency results in increase in the Company's overall debt position in Rupee terms without the
Company having incurred additional debt.

In order to minimize adverse effects on the financial performance, the Company has entered into foreign exchange forward
contracts (not designated as hedging instruments) to hedge foreign currency exchange risk. All hedging activities are carried
out in accordance with the Company's internal risk management policy, as approved by the Board, and in accordance with the
applicable regulations where the Company operates. Such decisions are taken after considering many factors such as upside

(ii) 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 is exposed to interest rate risk because funds are borrowed at both fixed and floating interest
rates. The Company's fixed rate borrowings are carried at amortised cost. Therefore, they are not subject to interest rate risk as
defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market
interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

The Company has exposure to variable interest rate risk, arising principally on changes in repo rate, MCLR and SOFR rates. The
Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-
to-day operations like short-term loans. The Company manages this risk by maintaining an appropriate mix between fixed and

45 Capital management (continued)

Notes:

(i) During the years ended 31 March 2026 and 31 March 2025, no changes were made in the objectives, policies or processes for
managing capital.

(ii) Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances.

(iii) Other bank balances include deposits with banks with an original maturity of more than 12 months, amounting to ' 3.75 million
and ' 0.01 million for FY 2025-26 and FY 2024-25 respectively.

(iv) Other bank balances exlcudes undrawn dividend, amounting to ' 0.04 million and ' 0.03 million for FY 2025-26 and FY 2024¬
25 respectively.

Notes:

(i) The Company does not have any contingent liabilities that qualify as provisions under Ind AS 37, except those already covered
under Ind AS 109, Ind AS 12, and Ind AS 19.

(ii) The timing and outcome of contingent liabilities are uncertain and dependent upon future events. Accordingly, no reliable estimate
of future cash outflows can be made. All such matters are regularly reviewed and appropriate accounting treatments are made.
The management believes that these matters will not have a material adverse effect on the Company's financial position.

(iii) Indirect tax matters:

(a) The Company received a show-cause-cum-demand notice dated 29 March 2022 from the DGGI alleging an erroneous IGST
refund of ' 11.38 million for FY 2017-18 and 2018-19. The notice demanded a tax recovery of ' 11.38 million along with
a penalty of ' 11.38 million under Section 74(1) of the CGST Act, 2017 read with section 20 of the IGST Act, 2017, and
applicable interest under Section 50(1) of the CGST Act, 2017. The Hon'ble Gujarat High Court, vide its order dated June
13, 2025, ruled in favor of the Company and quashed the recovery order. Although the tax department has challenged this
ruling before the Hon'ble Supreme Court, Management, backed by legal evaluations, expects a favorable outcome and has
made no financial provision.

(b) The Company received an order dated 03 March 2021 from the CGST authorities for the recovery of an erroneous refund
of ' 0.56 million for FY 2017-18, along with a penalty of ' 0.05 million and applicable interest. Against this dispute, an
amount of ' 0.11 million has been paid as a mandatory pre-deposit for filing the appeal, which is carried as a recoverable
balance under 'Balances with Statutory Authorities' (Refer Note No.14). The Company has preferred an appeal against the
said order before the appellate authorities. Management expects a favorable outcome in the matter and, accordingly, no
financial provision has been recognized in the financial statements.

(iv) Direct tax matters:

(a) The Company received an order dated September 22, 2022, issued under Section 143(3) read with section 144B of the
Income Tax Act, 1961, for Assessment Year 2020-21, sustaining a disallowance of expenses amounting to ? 1.00 million.

46 Contingent liabilities and commitments (continued)

This sustained disallowance results in a consequential tax impact of approx. ' 0.29 million , which will reduce the Minimum
Alternate Tax (MAT) credit carried forward by the Company. Additionally, penalty proceedings under Section 270A of the Act
have been initiated by the department. The Company has contested this demand by filing an appeal before the appellate
authority. Based on legal evaluations, Management expects a favorable outcome and, accordingly, no financial provision
has been recognized in the financial statements.

(b) The Company received an order dated December 03, 2025, issued under Section 154 read with section 147 of the Income Tax
Act, 1961, for Assessment Year 2020-21, sustaining a disallowance of expenses amounting to ' 1.00 million. This sustained
disallowance results in a consequential tax impact of approx. ' 0.29 million along with wherever interest applicable , which
will reduce the Minimum Alternate Tax (MAT) credit carried forward by the Company. The Company has contested this
demand by filing an appeal before the appellate authority. Based on legal evaluations, Management expects a favorable
outcome and, accordingly, no financial provision has been recognized in the financial statements.

(c) The Company received an assessment order dated March 24, 2025, issued under Section 147 read with Section 144B of
the Income Tax Act, 1961, for Assessment Year 2020-21, directing a disallowance of expenses amounting to ' 10.20 million.
This has resulted in a consequential tax demand of approx. ' 2.97 million, which will reduce the Minimum Alternate Tax
(MAT) credit carried forward by the Company. Additionally, penalty proceedings under Section 270A of the Act have been
initiated by the department. The Company has contested this demand by filing an appeal before the appellate authority.
Based on legal evaluations, Management expects a favorable outcome and, accordingly, no financial provision has been
recognized in the financial statements.

47 Other disputed matters

The Company has initiated criminal proceedings under sections 138 and 141 of the Negotiable Instruments Act, 1881 against M/s
Kaveri Engineering Works before the Chief Judicial Magistrate. The dispute pertains to dishonour of cheques aggregating ' 0.78
million issued against advance payments made to the said party. The matter is pending adjudication and the Company is confident of
a favorable resolution.

48 Subsequent events

In accordance with Ind AS 10 - Events after the Reporting Period, the Company has evaluated subsequent events occurring up to 16
May 2026, the date of authorisation of these financial statements. Except as disclosed below, no event requiring recognition or further
disclosure has occurred.

The Board of Directors has recommended a final dividend of ' 2.00 per equity share (i.e., 20% on face value of ' 10 each), aggregating
to ' 46.78 million, for the year ended 31 March 2026. The dividend is subject to approval of the shareholders in the ensuing Annual
General Meeting.

49 Additional regulatory information

(a) During the years ended 31 March 2026 and 31 March 2025, the Company has not made any investment or provided any loans,
guarantees, or securities to any person or body corporate exceeding the prescribed limits under Section 186(2) of the Companies
Act, 2013. Accordingly, no disclosure is required in terms of Regulation 34(3) read with Part A of Schedule V of SEBI (LODR)
Regulations, 2015.

(b) The Company has not entered into any material contracts or agreements (including with strategic, joint venture or financial
partners), other than those entered into in the ordinary course of business.

(c) During the years ended 31 March 2026 and 31 March 2025, the Company has not been a party to any scheme of merger or
amalgamation. Further, there were no material acquisitions or disposals of businesses or undertakings.

(d) Neither the promoters, nor any of the key managerial personnel, senior management personnel, directors or employees of the
Company has entered into an agreement, either by themselves or on behalf of any other person, with any shareholder or any
other third party with regard to compensation or profit sharing in connection with the dealings of the securities of the Company.

49 Additional regulatory information (continued)

(e) None of the director is or was a director of any listed company, whose shares are or were suspended from being traded on any
stock exchanges, during the term of their directorship in such company. Further, none of the directors is, or was, a director of any
listed company, which has been or was delisted from any stock exchange during the term of their directorship in such company.

(f) None of the director has been nominated, appointed or selected pursuant to any arrangement or understanding with major
shareholders, customers, suppliers or others of the Company.

(g) The Company, its promoters, its directors, persons in control of the Company and the members of the promoter group have not
been prohibited from accessing the capital markets and have not been debarred from buying, selling or dealing in securities
under any order or direction passed by SEBI or any securities market regulator in any jurisdiction or any other authority or court.

(h) The Company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

(i) Borrowings secured against current and non-current assets:

The Company has been availing borrowings facilities from ICICI Bank Limited, CITI Bank N.A, State Bank of India and DBS Bank
Limited on the basis of security of current and fixed assets. The Company has filed monthly stock statements with all the banks
referred above, which are in agreement with the books of accounts.

(j) 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:

(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.

(k) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understanding 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.

(l) The Company has disclosed other additional regulatory information in respective notes forming part of standalone
financial statements.

Explanation for variance in ratios by more than 25%:

i. Current ratio decreased due to higher working capital funding requirements arising from the scale-up in operations during the
year ended 31 March 2026.

ii. Debt-equity ratio increased due to incremental borrowings availed to fund working capital requirements during the year ended
31 March 2026.

iii. Debt service coverage ratio improved significantly, driven by strong earnings growth that enhanced debt servicing capacity during
the year ended 31 March 2026.

iv. Return on equity ratio improved substantially, reflecting a significant turnaround in profitability and enhanced returns to
shareholders during the year ended 31 March 2026.

v. Trade payables turnover ratio increased, reflecting improved supplier payment cycles supported by stronger operating cash flows
during the year ended 31 March 2026.

vi. Net capital turnover ratio improved due to a more efficient utilization of working capital in supporting higher revenue during the
year ended 31 March 2026.

vii. Net profit ratio improved significantly, driven by expanding margins, and better cost absorption during the year ended 31
March 2026.

viii. Return on capital employed improved, reflecting enhanced operating profitability and more efficient utilization of capital during
the year ended 31 March 2026.

50 Indirect taxes

The Company has duly complied with the applicable provisions of Goods and Service Tax Act, 2017, the Customs Acts, 1962 and

any other indirect taxes as applicable. Any variances between figures reported in the books of account and returns filed have been

appropriately reconciled. Such differences, if any, are not material and will be addressed in subsequent periodic and annual returns,

without any material impact on the standalone financial statements.

51 Cost audit records

In accordance with the section 148 of the Companies Act, 2013 and the provisions of the Companies (Cost Records and Audit) Rules,
2014, as amended, the Company has duly maintained cost records as prescribed.

52 Approval of financial statements

The Standalone Financial Statements for the year ended 31^st March, 2026 were approved by the Board of Directors on 16^th May, 2026.

53 General

(a) All amounts disclosed have been rounded off to the nearest million with two decimal places, unless otherwise stated.

(b) All figures less than ' 5,000 have been presented as ' 0.00 million.

(c) Comparative figures for the previous year/s have been re-classified, re-grouped or re-arranged, wherever necessary, to conform
with the presentation and classification of the current year.