(q) Provisions and Contingent Liabilities

Provisions are recognised when there is a present or
constructive obligation as a result of a past event, it
is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the
obligation. Provisions are not recognised for future
operating losses.

Provisions are measured at the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date and are not discounted to its
present value. These are reviewed at each year end date
and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount
cannot be made.

(r) Employee benefits
Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognised in respect
of employees' services up to the end of the reporting
period and are measured at the amounts expected to
be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the
balance sheet.

Other long-term employee benefit obligations

These liabilities for earned leave is not expected to be
settled wholly within 12 months after the end of the
period in which the employees render the related service.
It is therefore measured as the present value of expected
future payments to be made in respect of services
provided by employees up to the end of the reporting
period using the projected unit credit method. The

benefits are discounted using the market yields at the end
of the reporting period that have terms approximating to
the terms of the related obligation. Remeasurements as a
result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.

The Company presents provision for Compensated
Absense as current and non-current based on actuarial
valuation considering estimates of availment of leave,
separation of employee, etc. An employee is entitled to be
paid the entire accumulated leave balance immediately
on separation from the Company, as per the policy of
the Company.

Post-employment obligations

The Company operates the following post¬
employment schemes:

a) defined benefit plans such as gratuity, ex-gratia
gratuity, provident fund; and

b) defined contribution plans such as superannuation
fund, employee state insurance and other funds.

Defined Benefit Plans

The company has Defined Benefit Plans for post¬
employment benefits in the form of Provident Fund
[treated as a Defined Benefit Plan on account of
guaranteed interest benefit) and Gratuity. Provident
Fund and Gratuity fund are recognised by the Income-
tax authorities and administered through trustees and/
or Life Insurance Corporation of India Limited. Liability
for Defined Benefit Plans is provided on the basis of
valuations, as at the Balance Sheet date, carried out by
an independent actuary.

The liability or asset recognised in the balance sheet in
respect of defined benefit plans is the present value of
the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement of
profit or loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly
in other comprehensive income. They are included in
retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss
as past service cost.

Defined contribution plans

The Company's contribution to superannuation fund,
employee state insurance and other funds are considered
as defined contribution plans, as the Company does not
carry any further obligations apart from the contributions
made on a monthly basis and are charged as an expense
based on the amount of contribution required to be made.
Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future
payments is available.

Bonus plans

The Company recognises a liability and an expense for
bonuses. The Company recognises a provision where
contractually obliged or where there is a past practice
that has created a constructive obligation.

Termination benefits

Termination benefits are payable when employment is
terminated by the Company before the normal retirement
date, or when an employee accepts voluntary redundancy
in exchange for these benefits. The Company recognises
termination benefits at the earlier of the following dates:
[a) when the Company can no longer withdraw the offer
of those benefits; and (b) when the entity recognises
costs for a restructuring that is within the scope of Ind
AS 37 and involves the payment of terminations benefits.
In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured based
on the number of employees expected to accept the offer.
Benefits falling due more than 12 months after the end of
the reporting period are discounted to present value.

(s) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of
the reporting period but not distributed at the end of the
reporting period.

(t) Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to equity holders of the Company

• by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year
and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account:

• the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

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

Note 2: Critical estimates and judgements

The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement
in applying the Company's accounting policies.

This note provides an overview of the areas that involved a
higher degree of judgement or complexity, and of items which
are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally
assessed. Detailed information about each of these estimates
and judgements is included in relevant notes together with
information about the basis of calculation for each affected
line item in the financial statements.

The areas involving critical estimates or judgements are:

• Deferred Taxes - Note 35

• Goodwill impairment - Note 1(i) and Note 3C.

• Estimation for the accounting of employee benefits - Note 39

• Allowance for credit losses on trade receivable - Note 1 (k)
and Note 10

• Measurement of useful lives for property, plant and
equipment and goodwill- Note 1 (i) and (p).

• Estimation of Provision for Inventory - Note 1(l) and Note 9

• Determination of Lease term - Note 1(h) and 4

Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable under
the circumstances.

On March 31, 2015, the Company acquired "the Carbon Black Business” from Lanxess India Private Limited as a going concern on
a slump sale basis. The acquisition included the Carbon Black Dispersion plant at Nagda, along with the related assets, liabilities,
and employees. The excess of the purchase consideration over the fair value of net assets acquired was recognized as goodwill.

The recoverable amount of the CGU is determined based on "Value in Use” calculation which uses cash flow projections covering
a five-year period and a discount rate 17.17% per annum [31-03-2024: 12.96% per annum). Cash flow projections during the
five year period are based on the histrorical growth rate and margins. The cash flows beyond that five-year period have been
extrapolated using a steady 5% per annum [31-03-2024: 5% per annum) growth rate which is the projected long-term average
growth rate.

The Management believes that any reasonably possible change in the key assumptions on which recoverable amount is based
would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit.

32 During the year ended March 31, 2025, the Company carried out a detailed review of its income tax positions relating to
long-outstanding balances from prior assessment years. This review was conducted based on internal evaluations, available
documentation and consultation with an external tax advisor.

Accordingly, a net adjustment of C86.51 lakhs has been recorded through the write-off/write-back of the respective
tax balances.

33 Financial instruments and risk review
Capital management

The Company's objectives when managing capital are to:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders; and

(ii) Maintain an optimal capital structure to reduce the cost of capital.

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 capital structure of the Company consists of equity [comprising issued capital, reserves and retained earnings as
detailed in notes 15 and 16). The Company is debt free with no long-term borrowings as at 31-03-2025 and is not subject
to any externally imposed capital requirements.

At the end of the reporting period, there are no significant concentrations of credit risk for financial assets measured
at FVTPL. The carrying amount reflected above represents the Company's maximum exposure to credit risk for such
financial assets.

Financial risk management framework

The Company is primarily exposed to financial risks, market risk [including foreign exchange risk and price risk), credit risk
and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets
and addresses the risk associated with the financial assets and liabilities.

Management identifies, evaluates and hedges financial risks under approved policies to manage overall foreign exchange
risk, credit risk and investing surplus liquidity [counterparty risk).

Market risks
Foreign exchange risk

The Company has exports to and imports from other countries and is exposed to foreign exchange risk arising from various
currency exposures, primarily with respect to the Euro and the US-dollar. Foreign exchange risk arise from recognized
assets and liabilities, when they are denominated in a currency other than Indian Rupee.

The exchange rates have been volatile in the recent years and may continue to be volatile in the future. The Company
mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures, etc.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting year are as follows:

Credit risk

Credit risk arises from deposits with banks and financial institutions, as well as from credit exposures to customers, including
outstanding receivables.

Customer credit risk exposure is triggered by customer default risk and country risk. As at balance sheet date, the Company
does not have significant concentration of credit risk either due to size of customers or due to country risk.

Company has a credit risk policy in place to ensure that sales are made to customers only after an appropriate credit risk
rating and credit line allocation process. Procedures are standardized within credit risk policy and supported by the IT
system with respective credit management tools. The Company has adopted a policy of only dealing with creditworthy
counterparties and obtaining collaterals viz Security Deposit or Bank Guarantee as per Credit Policy, as a means of mitigating
the risk of financial loss from defaults.The average credit period on sales of goods is 60 to 120 days.

Credit risk from balances with cash & cash equivalent is managed by the Company's treasury department in accordance
with the Company's policy. Also, the credit risk on security deposits for rental premises and loans to employees have low
credit risk because of no history of defaults and no concerns for the counterparties to meet their obligations in the future.

Liquidity risk

Liquidity risk management:

The Company is currently debt free having no long term financial liabilities. Management monitors the forecasts of the
Company's liquidity requirements to ensure it has sufficient cash to meet its operational needs while maintaining sufficient
headroom on its undrawn borrowing facilities. Considering the liquidity advantage, funds surplus to the operational needs
are invested in the short term bank deposits. The cash & cash equivalents and bank deposits are highly liquid and are readily
available for payment of liabilities.

41 Segment Information:

[a) The Company had been reporting its operating segments as [1) Plastic and Coating and [2) Specialty Chemicals.
However, from the previous financial year, the Chief Operating Decision Maker ('CODM') has revisited their review
of the company's performance and allocation of resources to be under a single operating segment viz " Colorants”
having similar economic characteristics primarily with operations in India. As such, the Company's business activity
falls within a single primary business segment viz " Colorants” in line with IND AS -108 "Operating Segments”.

42 The Code on Social Security, 2020 ['Code') relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date
on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued.
The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period
the Code becomes effective.

44 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.

ii) There are no assets hypothecated against the bank limits sanctioned. The bank limits are unsecured. Hence, the
company is not obliged to send quarterly returns or statement of current assets.

iii) The company has not been declared a wilful defaulter as defined by RBI Circular.

iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

v) Since, the Company does not have any subsidiary, the provisions of Section 2(87) of the Companies Act, 2013, read
with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable.

vi) The Company has not entered into scheme of arrangement during the financial year 2024-25.

vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

viii) (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.

ix) (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 to or on behalf of the Ultimate Beneficiaries.

x) During the year, the Company has not surrendered or disclosed any income 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). Accordingly,
there are no transaction which are not recorded in the books of accounts.

45 The Company do not have transactions with Struck off Companies under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

48 During the year, Heubach GmbH, a related party of the Company and a member of the Heubach Group, had filed an application
for opening of regular insolvency proceedings over its assets with the competent insolvency court in Braunschweig,
Germany and, a preliminary Insolvency Administrator and Preliminary Custodian had been appointed by the competent
court. Further, Heubach Group GmbH, also a member of the Heubach Group and the holding company of Heubach Holding
Switzerland AG [a promoter shareholder of the Company and formerly known as Colorants International AG), had also filed
an application for insolvency proceedings over its assets with the competent insolvency court in Braunschweig together
with certain of its affiliate companies.

On October 11, 2024, Sudarshan Europe BV ("”the Acquirer””), a subsidiary of Sudarshan Chemical Industries Ltd ("PAC”),
has entered into a purchase agreement to acquire all shares held by the promoters in the Company.

Subsequently, the Company received a copy of the Public Announcement dated October 16, 2024 ('"'Public Announcement””)
regarding an Open Offer for the acquisition of up to 6,001,268 fully paid equity shares with a face value of C10 each,
representing 26% of the Company's Equity Share Capital, from public shareholders [as defined in the Public Announcement).
This Open Offer has been issued by the Acquirer along with PAC in compliance with the Securities and Exchange Board of
India [Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

On March 3, 2025, the Acquirer completed the acquisition of business from the insolvent German Group Companies,
including the participations held by Heubach Holding Switzerland AG ("”PAC-2””) in its subsidiary companies. This included
the investment in the Company's equity shares through a Sale and Purchase Agreement ("”SPA””) with SK Neptune Husky
Finance S.a.r.l. The acquisition involved the entire shareholding in Heubach Holdings S.a.r.l., which further held investments
in companies based in India and the USA. As a result, the Acquirer became entitled to indirectly exercise 54.36% of
the Voting Share Capital and control over the Company. Consequently, the Acquirer has acquired indirect control over
the Company.

49 On January 1, 2025, a fire broke out at a Warehouse in Company's Plant, located at Plot No. 113/114, MIDC Dhatav, Near
Police Station, Kolad-Roha Road, A.V. Roha A.V. P. O. - Dhatav, Taluka - Roha, Dist.-Raigad 402 116, India. The warehouse
is used for storage of "Pigment in Process Goods” used for final manufacturing. There have been no injuries or casualties.
The company has adequate insurance coverage against this loss. The Company assessed the loss of Property, Plant and
Equipment, as well as Inventories, amounting to C10.32 crore, and submitted a claim to the insurance provider. A surveyor
appointed by the insurer is currently reviewing the claim. Based on the initial assessment, the insurer has made an advance
payment of C1.5 crore. The Company has disclosed these matters as Exceptional Items in the financial statements for the
year ending March 31, 2025.

50 During the year 2019, the Company, on the basis of an independent valuation, obtained approval from its Board of Directors
for the transfer of certain furniture and fixtures and other assets located at the Airoli Office to Clariant India Private Limited
('CIPL'), a related party at C25.81 Crores. Due to various reasons, the transfer of these assets could not be concluded till
2021. The current management noticed that certain identified assets belonging to the Company were unauthorisedly
transferred to CIPL without due approval from the Board of Directors. Upon becoming aware of the matter, the Board
of Directors engaged external independent agencies to conduct a fact-finding exercise relating to the transaction . The
Company continued to engage in negotiations to recover the assets and mitigate any potential adverse impact arising from
the transaction. As of the date of these financial statements, the matter remains under review. Additionally, based on the
fact-finding report, the Company is evaluating various legal options to determine the appropriate course of action. A final
resolution including effects, if any, on the financial statements is pending.

51 The Company has maintained its books of account using an accounting software that is managed and maintained by
a third-party service provider. This software includes a feature for recording an audit trail [edit log) of transactions as
required under Rule 3(1) of the Companies [Accounts) Rules, 2014. The audit trail feature was enabled and operated
for all relevant transactions recorded in the accounting software during the year. However, the audit trail feature was not
enabled at the database level of the said software to log any direct data changes. Further, the audit trail of prior year, has
been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and
recorded in the previous year.

52 The Company maintains its books of account and other relevant books and papers in electronic mode as permitted under
the Companies Act, 2013. Daily backups of such books and papers are taken and properly maintained. However, the servers
on which the backups of the books of account and other relevant records are maintained are physically located outside
India, which is in compliance with the provisions of Rule 3 of the Companies [Accounts) Rules, 2014, and Rule 11(g) of
the Companies [Audit and Auditors) Rules, 2014, to the extent applicable.

53 The figures for the previous year have been regrouped/recasted wherever necessary, to conform to the current
year's classification.

In terms of our report attached For and on behalf of the Board of Directors

For M S K A & Associates Heubach Colorants India Limited

Chartered Accountants

Firm Registration Number: 105047W Sambit Roy Jugal Sahu

Managing Director Director & CFO

DIN: 08291664 DIN: 02629782

Udit Brijesh Parikh Sunirmal Talukdar Kewal Handa

Partner Director Director

Membership No.: 151016 DIN: 00920608 DIN: 00056826

Ashwini Natekar

Mumbai Company Secretary

July 16, 2025 Membership No: A65477