2.08 Provision for 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. Contingent
liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed
in the financial statements.

2.09 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted
earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary
items, if any) by the weighted average number of equity shares outstanding during the year adjusted for the effects
of all dilutive potential equity shares.

2.10 Foreign Currency Transactions

i) Transactions denominated in foreign currencies are recorded at exchange rate prevailing on the date of transaction
for Sales and Custom rates for Purchases as on date of the transaction.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates

iii) Non-monetary foreign currency items are carried at cost.

iv) Any income or expense on account of exchange difference either on settlement or on translation is recognized as
revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the
carrying cost of such asset.

2.11 Inventories

Inventories of finished goods, raw materials, and work in progress are carried at lower of cost or net realisable
value. The cost of inventories of items that are not ordinarily interchangeable are assigned by specific identification
of their individual costs. Other inventory items are recorded using first-in-first-out cost formula. The inventories
include the relevant duties, taxes, and cess other than those subsequently recoverable by the enterprise from the
taxing authorities that were incurred to bring the inventory to their present location and conditions.

2.12 Cash Flow Statement

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The
cash flows from regular revenue generating, investing & financing activities of the company are segregated.

2.13 Revenue Recognition

Sales turnover for the year includes sales value of goods and other recoveries such as Octroi, Transportation
Charges etc., but excludes Excise duty and GST. Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods
is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.

Export incentives are recognized when it is probable to receive such benefits.

Revenue from sale of scrap and licences are recognized as and when they are sold.

Interest income from financial assets is recognized on accrual basis.

2.14 Retirement Benefits

The Company’s contribution to Provident Fund and ESIC is accounted on accrual basis and charged to Profit and
Loss Account. The Company accounts for liability for Gratuity of employees on the basis of Actuarial
Valuation/Management Estimates. Gratuity is payable to Employees after Retirement or Resignation of Employees;
whereas there is no defined policy enabling the employees to avail encashment of leave.

2.15 Impairment of Assets

An asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable value. An impairment
loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The Impairment
loss recognized in prior accounting periods is increased / reversed where there has been change in the estimate of
recoverable amount. The recoverable value is the higher of the net selling price and value in use.

2.16 Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly
liquid investments maturing within 3 months from the date of acquisition that are readily convertible into known
amounts of cash and which are subject to an insignificant risk of changes in value.

2.17 Financial Assets and Financial Liabilities

Financial assets (other than trade receivables) and financial liabilities are recognized when the Company becomes a
party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for
transaction costs, except for those carried at fair value through profit and loss which are measured initially at fair
value.

Trade receivables are recognized at their transaction price as the same do not contain significant financing
component.

For the purpose of subsequent measurement financial assets and financial liabilities are classified and measured
based on the entity’s business model for managing the financial asset and the contractual cash flow characteristics
of the financial asset and the financial liability.

33. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2025 and March 31,
2024.

34. The Company did not have any long term contracts including derivative contracts for which any provision is required for the foreseeable
losses.

35. Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated
regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Company’s chief
operating decision maker is the Chief Executive Officer and Managing Director.

Since the company has only one primary product line and its operations are restricted to only one geographical area, the financial
statements itself may be considered to be the segment results as per the disclosure requirements of Ind AS-108.

42.C Financial Risk Management
42.C.1 Market Risk:

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity
price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

42.C.1.1 Foreign currency exchange rate risk:

(a) The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss and equity, where any transaction
references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective
entities.

The risks primarily relate to fluctuations in U.S. dollar, Euro, and GBP against the functional currency of the Company.

The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a
simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 1%.

42.C.2 Credit Risk :

(a) Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations.
Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, loans and advances and derivative
financial instruments. None of the financial instruments of the Company result in material concentrations of exposure to credit risks.

(b) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 1611.75 lakhs As at
March 31, 2025, Rs. 3057.74 lakhs As at March 31, 2024, being the total of the carrying amount of balances with banks, short term deposits with
banks, trade receivables, and other financial assets excluding equity investments.

(c) Financial assets that are either past due or impaired

None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables, other loans or
receivables and other financial assets that are neither impaired nor past due, there were no indications as at March 31, 2025, that defaults in payment
obligations will occur.

42.C.3 Liquidity Risk :

(a) Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements.

The Company’s principal sources of liquidity are cash and cash equivalents, loans and advances given to subsidiaries and fellow subsidiaries and the
cash flow that is generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is
sufficient to meet its current requirements.

49. Recent Accounting pronouncements - Standards Issued or amended but not Effective

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. For the year ended March 31, 2026, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

50. Other Statutory Information:

a) The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties

(as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or
without specifying any terms or period of repayment.

b) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against
the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
thereunder.

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

d) The Company did not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

e) The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

f) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities

(Intermediaries), with the understanding that the Intermediary shall, 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 provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

g) The Company has not received any funds from any persons or entities, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall, 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
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h) The Company did not have any transaction which had not been recorded in the books of account that had 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).

i) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

j) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of
section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

51. Figures for the previous years have been regrouped/rearranged wherever considered necessary to conform to the figures presented in
the current year.

In terms of our report attached.

For Shah & Savla LLP For and on behalf of the Board of Directors of

Chartered Accountants S a mrat Pharmachem Limited

FRN: 109364W / W100143 CIN: L24230GJ1992PLC017820

Mulesh M Savla Lalit Mehta Rajesh Mehta Megh Mehta

Partner Managing Director Executive Director & CFO Executive Director

Membership No. - 038404 DIN: 00216681 DIN: 00216731 DIN: 07287394

Renu Dharod Manishkumar Pipalia Sachin Kothary

Director Director Director

DIN: 07063088 DIN: 00376313 DIN: 10470497

Megha Jain Nishant Kankaria

Mumbai Director Company Secretary

May 30, 2025 DIN: 10727038 Membership No. - 59905