The Company does not have any contingent liabilities and commitments (including capital
commitments) requiring disclosure under Ind AS 37 - Provisions, Contingent Liabilities and
Contingent Assets as at 31 March 2026 (Previous Year: Nil).

The Company is having only one reportable business segment in accordance with Ind AS 108 on
“Operating segment”. i.e. manufacturing of High Purity Specialty Fine chemicals.

Information reported to the chief operating decision maker (CODM) for the purpose of resource
allocation and assessment of segment performance focuses on single business segment of
manufacturing of High Purity Specialty Fine chemicals. Hence the Company is having only one
reportable business segment under Ind AS 108 on “Operating segment”.

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise
Development Act, 2006” is based on the information available with the Company regarding the
status of registration of such vendors under the said Act, as per the intimation received from them on
requests made by the Company. There are no overdue principal amounts / interest payable amounts
for delayed payments to such vendors other than shown above at the Balance Sheet date. There are
no delays in payment made to such suppliers during the year or for any earlier years and accordingly
there is no interest paid or outstanding interest in this regard in respect of payment made during the
year or on balance brought forward from previous year.

The financial instruments are categorised into
three levels based on the inputs used to arrive
at fair value measurements as described
below:

Level 1: Quoted prices (unadjusted) in active
markets for identical assets or liabilities;

Level 2: Inputs other than the quoted prices
included within Level 1 that are observable for
the asset or liability, either directly or indirectly;
and

Level 3: Inputs based on unobservable market
data.

The Company's board of directors has overall
responsibility for the establishment and
oversight of the Company's risk management
framework. The board of directors is
responsible for developing and monitoring the
Company's risk management policies. The
board regularly meets to decide its risk
management activities.

The Company's risk management policies are
established to identify and analyse the risks
faced by the Company, to set appropriate risk
limits and controls to monitor risks and
adherence to limits. Risk management policies
and systems are reviewed regularly to reflect
changes in market conditions and the
Company's activities. The Company, through
its training and management standards and
procedures, aims to maintain a disciplined and
constructive control environment in which all
employees understand their roles and
obligations.

The Company's management monitors
compliance with the Company's risk
management policies and procedures, and
reviews the adequacy of the risk management

framework in relation to the risks faced by the
Company. The Board is also assisted by
internal audit. Internal audit undertakes both
regular and adhoc reviews of risk
management controls and procedures, the
results of which are reported to the Board of
directors.

The Company has exposure to the following
risks arising from financial instruments:

(a) 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, and arises principally
from the Company's receivables from
customers.

The Company's exposure to credit risk is
influenced mainly by the individual

characteristics of each customer. However,
management also considers the factors that
may influence the credit risk of its customer
base, including the default risk associated with
the industry and country in which customers
operate.

Credit risk is managed through credit
approvals, establishing credit limits and
continuously monitoring the creditworthiness
of customers to which the Company grants
credit terms in the normal course of business.
On account of adoption of Ind AS 109, the
Company uses expected credit loss model to
assess impairment loss or gain. The Company
uses a matrix to compute the expected credit
loss allowance for trade receivables. The

provision matrix takes into account available
external and internal credit risk factors and
Company's historical experience for
customers.

(i) The company has not made any provision
for expected credit loss on trade receivables
and other financials assets, based on the
management estimates.

(ii) Credit risk on cash and cash equivalents is
limited as the Company generally invests in
deposits with banks and financial institutions
with high credit ratings assigned by domestic
credit rating agencies.

(b) Liquidity Risk:

Liquidity risk is the risk that the Company will

encounter difficulty in meeting the obligations
associated with its financial liabilities that are
settled by delivering cash or another financial
asset. The Company's approach to managing
liquidity is to ensure, that it will have sufficient
liquidity to meet its liabilities when they are due,
under both normal and stressed conditions,
without incurring unacceptable losses or
risking damage to the Company's reputation.
The Company's treasury department within the
Finance Department is responsible for liquidity
and funding. In addition policies and
procedures relating to such risks are overseen
by the management.

The company's principal sources of liquidity
are cash and cash equivalents and the cash
flow that is generated from the operations.

c) Market Risk

Market risk is the risk that changes with market
prices - such as foreign exchange rates and
interest rates, will affect the Company's
income or the value of its holdings of financial
instruments. The objective of market risk
management is to manage and control
market risk exposures within acceptable
parameters, while optimising the return.

(1) Foreign currency Risk:

Foreign currency risk is the risk that fair value or
future cash flows of a financial instrument will
fluctuate because of changes in foreign
exchange rate. Company transacts business in
its functional currency (INR) and in other
foreign currencies. The Company's exposure to
the risk of changes in foreign exchange rates
relates primarily to the Company's operating
activities, where revenue or expense is
denominated in a foreign currency.

Capital Management:

The Company's capital comprises equity share
capital, surplus in the statement of profit and
loss and other equity attributable to equity
holders. The Company's objectives when
managing capital are to :

-safeguard their ability to continue as a going
concern, so that they can continue to provide
returns for shareholders and benefits for other
stakeholders, and

-maintain an optimal capital structure to
reduce the cost of capital.

The Company aims at maintaining a strong
capital base so as to maintain adequate
supply of funds towards future growth plans as
a going concern.