(n) Provisions, contingent liabilities and contingent
assets:

(i) Provisions:

Provisions are recognised when the Company has
a present obligation (legal or constructive) 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 a reliable
estimate can be made of the amount of the
obligation. When the Company expects some or all of
a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision
is presented in the Statement of Profit and Loss net
of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost.

(ii) Contingent liability

Contingent liability is:

(a) possible obligation arising from past events and
whose existence will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity or

(b) a present obligation that arises from past events but
is not recognized because;

- it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation or

- the amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent liability
but discloses the same as per the requirements of
Ind AS 37. The cases which have been determined as
remote by the Company have not been disclosed.

(iii) Contingent asset

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the entity. The Company does not

recognize the contingent asset in its financial
statements since this may result in the recognition of
income that may never be realised. However, when
the realisation of income is virtually certain, then
the related asset is not a contingent asset and the
Company recognise such assets.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

(o) Post-employment and other employee benefits:

(i) Short-term employee benefits:

The distinction between short-term and long-term
employee benefits is based on expected timing of
settlement rather than the employee's entitlement
benefits. All employee benefits payable within twelve
months of rendering the service are classified as
short-term benefits. Such benefits include salaries,
wages, bonus, short-term compensated absences,
awards, ex-gratia, performance pay etc. and are
recognised in the period in which the employee
renders the related service. A liability is recognised
at an undiscounted value for the amount expected
to be paid e.g., under short-term cash bonus, if
the Company has a present legal or constructive
obligation to pay this amount as a result of past
service provided by the employee, and the amount
of obligation can be estimated reliably.

(ii) Post-employment benefits:

(1) Defined contribution plans:

The contributions to provident fund, other
funds, and superannuation schemes are
recognised in the Statement of Profit and
Loss during the period in which the employee
renders the related service. The Company has
no further obligations under these schemes
beyond its periodic contributions.

(2) Defined benefit plans:

The Company operates two defined benefit
plans for its employees, viz. gratuity and
pension. The present value of the obligation
under such defined benefit plans is determined
based on an independent actuarial valuation
using the Projected Unit Credit Method as at
the date of the Balance Sheet. The fair value of
plan asset is reduced from the gross obligation
under the defined benefit plans, to recognise
the obligation on a net basis.

Remeasurements, comprising of actuarial gains and losses,

the effect of the asset ceiling, excluding amounts included

in net interest on the net defined benefit liability and the
return on plan assets (excluding amounts included in net
interest on the net defined benefit liability), are recognised
immediately in the Balance Sheet with a corresponding
debit or credit to retained earnings through OCI in the
period in which they occur. Remeasurements are not
reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the
earlier of:

- The date of the plan amendment or curtailment, and

- The date that the Company recognises related
restructuring costs.

Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined
benefit obligation as an expense in the Statement of
Profit and Loss:

- Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and

- Net interest expense or income.

- Re-measurement

The Company presents the first two components of
defined benefit costs in Statement of Profit and Loss in the
line item 'Employee benefits expense'. Curtailment gains
and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the
Balance sheet represents the actual deficit or surplus in
the Company's defined benefit plans. Any surplus resulting
from this calculation is limited to the present value of any
economic benefits available in the form of refunds from
the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the
earlier of when the entity can no longer withdraw the offer
of the termination benefit and when the entity recognises
any related restructuring costs.

(3) Compensated absences:

Accumulated leave, which is expected to be utilized within
the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated
at the reporting date. The Company recognizes expected
cost of short-term employee benefit as an expense, when
an employee renders the related service.

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement purposes.
Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit
credit method at the reporting date. Actuarial gains /
losses are immediately taken to the Statement of Profit and
Loss and are not deferred. The obligations are presented
as current liabilities in the Balance Sheet if the entity does
not have an unconditional right to defer the settlement for
at least twelve months after the reporting date.

(p) Share based payments:

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. Further details are given
in Note 50.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,
over the period in which the performance and / or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired
and the Company's best estimate of the number of equity
instruments that will ultimately vest. The expense or credit
in the Statement of Profit and Loss for a period represents
the movement in cumulative expense recognised as at
the beginning and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected
within the grant date fair value. Any other conditions
attached to an award, but without an associated service
requirement, are considered to be non-vesting conditions.
Non-vesting conditions are reflected in the fair value of
an award and lead to an immediate expensing of an
award unless there are also service and / or performance
conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and / or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and / or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional expense,
measured as at the date of modification, is recognised
for any modification that increases the total fair value
of the share-based payment transaction, or is otherwise
beneficial to the employee. Where an award is cancelled by
the entity or by the counterparty, any remaining element
of the fair value of the award is expensed immediately
through the Statement of Profit and Loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

(q) Finance costs:

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended
use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in
which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the
borrowing costs.

(r) Financial instruments:

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

(i) Financial assets:

(1) Initial recognition and measurement:

With the exception of trade receivables that do
not contain a significant financing component or
for which the Company has applied the practical
expedient, the Company initially measures a financial
asset at amortised cost, fair value through fair value
through other comprehensive income (OCI), and fair
value through profit or loss. Transaction costs that

are directly attributable to the acquisition or issue of
financial assets, which are not at fair value through
profit or loss, are adjusted to the fair value on initial
recognition. Trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient are
measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies in Note
2.3 (d) Revenue from contracts with customers.

Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the marketplace (regular
way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are 'solely
payments of principal and interest (SPPI)' on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at
fair value through profit or loss, irrespective of the
business model.

The Company's business model for managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result
from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified
and measured at amortised cost are held within a
business model with the objective to hold financial
assets in order to collect contractual cash flows while
financial assets classified and measured at fair value
through OCI are held within a business model with
the objective of both holding to collect contractual
cash flows and selling.

(2) Subsequent measurement:

For purposes of subsequent measurement, financial assets

are classified in four categories:

- Financial assets at amortised cost (debt instruments)

- Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through
other comprehensive income with no recycling of
cumulative gains and losses upon derecognition
(equity instruments)

- Financial assets at fair value through profit or
loss (FVTPL)

Financial assets at amortised cost (debt instruments):

A 'financial asset' is measured at the amortised cost if both
the following conditions are met:

(a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

(b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount
or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation
is included in finance income in the Statement of
Profit and Loss. The losses arising from impairment
are recognised in the Statement of Profit and Loss.
This category generally applies to trade and other
receivables.

Financial assets at fair value through other
comprehensive income (FVTOCI) (debt instruments):

A 'financial asset' is classified as at the FVTOCI if both of the
following criteria are met:

(a) The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and

(b) The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. For debt instruments, at fair value through
other comprehensive income, interest income, foreign
exchange revaluation and impairment losses or reversals
are recognised in the Statement of Profit and Loss and
computed in the same manner as for financial assets

measured at amortised cost. The remaining fair value
changes are recognised in OCI. Upon derecognition,
the cumulative fair value changes recognised in OCI
is reclassified from the equity to the Statement of
Profit and Loss.

Financial assets designated at fair value through other
comprehensive income (equity instruments):

Upon initial recognition, the Company can elect to classify
irrevocably its equity investments as equity instruments
designated at fair value through other comprehensive
income when they meet the definition of equity under
Ind AS 32 Financial Instruments - Presentation and are
not held for trading. The classification is determined on
an instrument-by-instrument basis. Equity instruments
which are held for trading and contingent consideration
recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never
recycled to the Statement of Profit and Loss. Dividends are
recognised as other income in the Statement of Profit and
Loss when the right of payment has been established,
except when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset, in which
case, such gains are recorded in OCI. Equity instruments
designated at fair value through OCI are not subject to
impairment assessment.

Financial assets at fair value through profit or loss
(FVTPL):

Financial assets at fair value through profit or loss are
carried in the Balance Sheet at fair value with net changes
in fair value recognised in the Statement of Profit and Loss.

This category includes derivative instruments and
listed equity investments which the Company had not
irrevocably elected to classify at fair value through other
comprehensive income. Interest earned on instruments
designated at FVTPL is accrued in interest income, using
the EIR, taking into account any discount/ premium and
qualifying transaction costs being an integral part of
instrument. Interest earned on assets mandatorily required
to be measured at FVTPL is recorded using the contractual
interest rate.

(3) Derecognition:

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognised when:

(a) The rights to receive cash flows from the asset have
expired, or

(b) The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material
delay to a third party under a 'pass-through'
arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of
the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

(4) Impairment of financial assets:

In accordance with Ind AS 109, the Company uses 'Expected
Credit Loss' (ECL) model, for evaluating impairment of
financial assets other than those measured at Fair Value
Through Profit and Loss (FVTPL). Expected Credit Losses are
measured through a loss allowance at an amount equal to:

- The 12-months expected credit losses (expected
credit losses that result from those default events on
the financial instrument that are possible within 12
months after the reporting date); or

- Full lifetime expected credit losses (expected credit
losses that result from all possible default events over
the life of the financial instrument).

For trade receivables, the Company applies 'simplified
approach' which requires expected lifetime losses to be
recognised from initial recognition of the receivables.
The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables.
At every reporting date these historical default rates are
reviewed and changes in the forward-looking estimates
are analysed.

Therefore, the Company does not track changes in credit
risk but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company has
established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment.

For other assets, the Company uses 12 month Expected
Credit Loss to provide for impairment loss where there is
no significant increase in credit risk. If there is significant
increase in credit risk, full lifetime Expected Credit Loss
is used. A financial asset is written off when there is no
reasonable expectation of recovering the contractual
cash flows.

(ii) Financial liabilities and equity instruments:

(1) Classification as debt or equity

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after

deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the proceeds
received, net of direct issue costs. The Company
classifies a financial instrument issued by it as equity
instrument only if below conditions are met:

The instrument neither includes contractual
obligation to deliver cash or another financial asset
to another entity, nor it includes any obligation to
exchange financial assets or financial liabilities with
another entity under conditions that are potentially
unfavourable to the issuer.

If the instrument will or may be settled in
the Company's own equity instruments, it is
non-derivative instrument that includes no
contractual obligation for the Company to deliver a
variable number of its own equity instruments. If the
instrument is derivative, then it should be settled
only by the Company exchanging a fixed amount of
cash or another financial asset for a fixed number of
its own equity instruments.

All other instruments are classified as financial
liability and accounted for using the accounting
policy applicable to the Financial Liabilities.

(2) Initial recognition and measurement:

All financial liabilities are recognised at fair value and
in case of borrowings, net of directly attributable
cost. Fees of recurring nature are directly recognised
in the Statement of Profit and Loss as finance cost.
The Company's financial liabilities include trade and
other payables, loans and borrowings and derivative
financial instruments. Equity instruments issued
by the Company are recognised at the proceeds
received, net of direct issue costs.

(3) Subsequent measurement:

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

- Financial liabilities at fair value through
profit or loss

- Financial liabilities at amortised cost (loans and
borrowings)

Financial liabilities at fair value through profit or
loss (FVTPL):

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss. The Company

has designated any financial liability as at fair value
through profit or loss.

Financial liabilities at amortised cost (loans and
borrowings)

This is the category most relevant to the Company.
Financial liabilities are carried at amortised cost using
the effective interest rate (EIR) method. For trade
and other payables maturing within one year from
the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of
these instruments. The EIR amortisation is included
as finance costs in the Statement of Profit and Loss.
For more information refer Note 53.

Financial guarantee contracts:

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a
payment when due in accordance with the terms of
a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted
for transaction costs that are directly attributable to
the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount
recognised less, when appropriate, the cumulative
amount of income recognised in accordance with the
principles of Ind AS 115.

(4) Derecognition:

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Statement of Profit and Loss.

(iii) Offsetting of financial instruments:

Financial assets and financial liabilities are offset, and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

(s) Derivative financial instruments and hedge accounting:
Initial recognition and subsequent measurement

The Company uses various derivative financial instruments
such as forwards, interest rate swaps and currency swaps
to mitigate the risk of changes in interest rates and
exchange rates. At the inception of a hedge relationship,
the Company formally designates and documents the
hedge relationship to which the Company wishes to apply
hedge accounting and the risk management objective
and strategy for undertaking the hedge. Such derivative
financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered
into and are also subsequently measured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.

Any gains or losses arising from changes in the fair value of
derivatives are taken directly to the Statement of Profit and
Loss, except for the effective portion of cash flow hedge
which is recognised in Other Comprehensive Income and
later to the Statement of Profit and Loss, when the hedged
item affects profit or loss or treated as basis adjustment
if a hedged forecast transaction subsequently results in
the recognition of a non-financial asset or non-financial
liability.

Hedges that meet the criteria for hedge accounting are
accounted for as follows:

Fair value hedge:

The Company designates derivative contracts or
non-derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value
of hedged item due to movement in interest rates and
exchange rates. Changes in the fair value of hedging
instruments and hedged items that are designated and
qualify as fair value hedges are recorded in the Statement
of Profit and Loss. If the hedging relationship no longer
meets the criteria for hedge accounting, the adjustment
to the carrying amount of a hedged item for which the
effective interest method is used is amortised to the
Statement of Profit and Loss over the period of maturity.

Cash flow hedge:

The Company designates derivative contracts or
non-derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest
rates and exchange rates for foreign exchange exposure
on highly probable future cash flows attributable to a
recognised asset or liability or forecast cash transactions.

When a derivative is designated as a cash flow hedging
instrument, the effective portion of changes in the fair value
of the derivative is recognised in the cash flow hedging
reserve being part of Other Comprehensive Income.
Any ineffective portion of changes in the fair value of the
derivative is recognised immediately in the Statement of
Profit and Loss. Refer to Note 49 for more details.

If the hedging relationship no longer meets the criteria for
hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold
/ terminated or exercised, the cumulative gain or loss on
the hedging instrument recognised in cash flow hedging
reserve till the period the hedge was effective remains in
cash flow hedging reserve until the underlying transaction
occurs. The cumulative gain or loss previously recognised
in the cash flow hedging reserve is transferred to the
Statement of Profit and Loss upon the occurrence of the
underlying transaction. If the forecasted transaction is no
longer expected to occur, then the amount accumulated in
cash flow hedging reserve is reclassified in the Statement
of Profit and Loss.

(t) Cash and cash equivalents, and Bank balances:

Cash and cash equivalent comprises of cash at banks
(which are unrestricted for withdrawal and usage), and
cash on hand and short-term deposits with original
maturity of three months or less. Bank balances other than
cash and cash equivalents as explained above comprises
of earmarked balances of unclaimed dividends, and
short-term deposits with original maturity of three months
or more. These items are subject to an insignificant risk of
changes in value. In the Statement of Cash Flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above which are considered as integral part of
the Company's cash management.

(u) Dividends:

The Company recognises a liability to pay dividend to
equity holders of the Company 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. A corresponding amount is recognised
directly in equity.

(v) Earnings per share:

Basic earnings per share is computed by dividing the net
profit for the period attributable to the equity shareholders
of the Company by the weighted average number of
equity shares outstanding during the period. The weighted

average number of equity shares outstanding during the
period is adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number
of equity shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings per
share, the net profit for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.

(w) Segment reporting:

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Board of Directors of the Company has
identified the Managing Director as the chief operating
decision maker of the Company.

(x) Rounding-off of amounts:

All amounts disclosed in the financial statements and notes
have been rounded off to nearest lakhs, with one decimal,
as per the requirement of Schedule III of the Companies
Act, 2013, unless otherwise stated.

(y) Climate-related matters:

The Company considers climate-related matters
in estimates and assumptions, where appropriate.
This assessment includes a wide range of possible impacts
on the Company due to both physical and transition
risks. Even though the Company believes its business
model and products will still be viable after the transition
to a low-carbon economy, climate-related matters
increase the uncertainty in estimates and assumptions
underpinning several items in the financial statements.
Even though climate-related risks might not currently
have a significant impact on measurement, the Company
is closely monitoring relevant changes and developments,
such as new climate-related legislation. The items and
considerations that are most directly impacted by
climate-related matters are:

(i) Useful life of property, plant and equipment: When
reviewing the residual values and expected useful
lives of assets, the Company considers climate-related
matters, such as climate-related legislation and
regulations that may restrict the use of assets or
require significant capital expenditures.

(ii) Impairment of non-financial assets: The Company
assesses whether climate risks, including physical
risks and transition risks could have a significant
impact. If so, these risks are included in the cash-flow
forecasts in assessing value-in-use amounts.

(z) New and amended standards:

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1^st April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117 - Insurance Contracts, vide notification
dated 12 August 2024, under the Companies
(Indian Accounting Standards) Amendment Rules,
2024, which is effective from annual reporting
periods beginning on or after 1 April 2024.
Ind AS 117 - Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104 -
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS
117 is based on a general model, supplemented by:

- A specific adaptation for contracts with
direct participation features (the variable
fee approach)

- A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 had no impact on the
Company's financial statements as the Company has
not entered any contracts in the nature of insurance
contracts covered under Ind AS 117.

(ii) Amendment to Ind AS 116 Leases - Lease liability
in a sale and leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability arising in
a sale and leaseback transaction, to ensure the seller-lessee
does not recognise any amount of the gain or loss that
relates to the right of use it retains.

The amendment is effective for annual reporting periods
beginning on or after 1 April 2024 and must be applied
retrospectively to sale and leaseback transactions entered
into after the date of initial application of Ind AS 116.

The amendment does not have a material impact on the
Company's financial statements.

(iii) Amendment to IND AS 21 - Lack of exchangeability

The Ministry of Corporate Affairs notified amendments
to Ind AS 21 The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine
a spot exchange rate when exchangeability is lacking.
The amendments also require disclosure of information
that enables users of its financial statements to understand
how the currency not being exchangeable into the
other currency affects, or is expected to affect, the entity's
financial performance, financial position and cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When applying
the amendments, an entity cannot restate comparative
information.

The amendments are not expected to have a material
impact on the Group's financial statements.

Standards notified but not yet effective

There are no standards that are notified and not yet
effective as on the date.

(aa) Significant accounting judgements, estimates and
assumptions:

The preparation of the Company's financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future
periods. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the year in which the estimate is revised
if the revision affects only that year, or in the year of the
revision and future year, if the revision affects current and
future year.

Other disclosures relating to the Company's exposure to
risks and uncertainties includes:

- Financial instruments risk management objectives
and policies Note 49(A).

- Sensitivity analyses disclosures Notes 40, and 49(A).

- Capital management Note 49(B).

Use of significant judgements

In the process of applying the Company's accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognised in the financial statements:

(i) Determining the lease term of contracts with
renewal and termination options - Company as
a lessee:

The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

The Company has several lease contracts that
include extension and termination options.
The Company applies judgement in evaluating
whether it is reasonably certain whether or not to
exercise the option to renew or terminate the lease.
That is, it considers all relevant factors that create
an economic incentive for it to exercise either the
renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances
that is within its control and affects its ability to
exercise or not to exercise the option to renew or to
terminate (e.g., construction of significant leasehold
improvements or significant customisation to the
leased asset).

Refer Note 5 for information on potential future
rental payments relating to periods following the
exercise date of extension and termination options
that are not included in the lease term.

Estimates and assumptions:

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below.
The Company based its assumptions and estimates on
parameters available when the financial statements were
prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur.

(i) Estimating the incremental borrowing rate to
measure lease liabilities

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
therefore reflects what the Company 'would have to
pay', which requires estimation when no observable
rates are available. The Company estimates the IBR
using observable inputs (such as market interest
rates) when available and is required to make certain
entity-specific estimates (such as the credit rating).

(ii) Useful life and residual value of property, plant
and equipment and intangible assets:

Property, plant and equipment represent a significant
proportion of the asset base of the Company.
The charge in respect of periodic depreciation is
derived after determining an estimate of an asset's
expected useful life and the expected residual value at
the end of its life. The useful lives and residual values
of Company's property, plant and equipment and
intangible assets are determined by management at
the time the asset is acquired and reviewed at the
end of each reporting period. The lives are based on

historical experience with similar assets as well as
anticipation of future events, which may impact their
life, such as changes in technology. Consequently,
the future depreciation charge could be revised
and may have an impact on profit for future years.
The policy for the same has been explained in notes
2.3 (h) and 2.3 (i).

(iii) Recognition of deferred tax assets

Deferred tax is recorded on temporary differences
between the tax bases of assets and liabilities and their
carrying amounts, except when the deferred income tax
arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination
and affects neither accounting nor taxable profit or loss
at the time of the transaction, at the rates that have been
enacted or substantively enacted at the reporting date.
The ultimate realisation of deferred tax assets is dependent
upon the generation of future taxable profits during the
periods in which those temporary differences and tax
loss carry forwards become deductible. The Company
considers the expected reversal of deferred tax liabilities
and projected future taxable income in making this
assessment. The amount of the deferred tax assets
considered realisable, however, could be reduced in the
near term if estimates of future taxable income during the
carry-forward period are reduced. The policy for the same
has been explained under Note 2.3 (f).

(iv) Defined benefit obligation:

The cost of the defined benefit gratuity plan, other
defined benefit plan and other post-employment plans
are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may
differ from actual developments in the future. These include
the determination of the discount rate, future salary
increases, expected returns on plan assets and mortality
rates. Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions
are reviewed at each reporting date.

The parameter most subject to change is the discount rate.
In determining the appropriate discount rate for plans
operated in India, the management considers the interest
rates of government bonds where remaining maturity of
such bond correspond to expected term of defined benefit
obligation.

The mortality rate is based on publicly available mortality
tables for India. Those mortality tables tend to change
only at interval in response to demographic changes.
Future salary increases, discount rate and return on
planned assets are based on expected future inflation rates
for India. Further details about defined benefit plans are
given in Note 2.3 (o).

(v) Impairment of non-financial assets:

The Company assesses at each reporting date whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or Cash Generating Unit's (CGU's)
fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing the value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and risks specific to the asset.
In determining the fair value less costs to disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples or other available fair value indicators.
The policy for the same has been explained under
Note 2.3 (m).

(vi) Impairment of financial assets:

The impairment provisions for financial assets are based
on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on Company's past history, existing
market conditions as well as forward looking estimates at
the end of each reporting period. Further, the Company
also evaluates risk with respect to expected loss on
account of loss in time value of money which is calculated
using average cost of capital for relevant financial assets.

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there is
indication for impairment. If the recoverable amount is less

than its carrying amount, the impairment loss is recorded
in the Statement of Profit and Loss. When an impairment
loss subsequently reverses, the carrying amount of
the Investment is increased to the revised estimate of
its recoverable amount, so that the increased carrying
amount does not exceed the cost of the Investment.
A reversal of an impairment loss is recognised immediately
in Statement of Profit or Loss. The policy for the same has
been explained in Note 2.3 (r) Financial Instruments.

(vii) Provision for inventory obsolescence:

The Company identifies slow and non-moving stock of
all inventories on an ongoing basis. These materials are
then classified based on their expected quality parameters
to determine the possibility of utilisation / liquidation of
these materials. Based on this, a provision for slow and
non-moving inventory is created.

(viii) Share based payment:

Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation
model, which is dependent on the terms and conditions
of the grant. This estimate also requires determination
of the most appropriate inputs to the valuation model
including the expected life of the share option, volatility
and dividend yield and making assumptions about them.
For the measurement of the fair value of equity-settled
transactions with employees at the grant date, the
Company uses the Black-Scholes model. The assumptions
and models used for estimating fair value for share-based
payment transactions are disclosed in Note 50.

(ix) Litigation:

The Company has various ongoing litigations, the outcome
of which may have a material effect on the financial
position, results of operations or cashflows. The Company's
legal team regularly analyses current information about
these matters and assesses the requirement for provision
for probable losses including estimates of legal expense
to resolve such matters. In making the decision regarding
the need for loss provision, the management considers the
degree of probability of an unfavourable outcome and the
ability to make sufficiently reliable estimate of the amount
of loss. The filing of a lawsuit or formal assertion of a claim
against the Company or the disclosure of any such suit or
assertions, does not automatically indicate that a provision
of a loss may be appropriate.

Considering the facts on hand and the current stage
of certain ongoing litigations the Company foresees a
remote risk of any material claim arising from claims
against the Company. The Management has exercised
significant judgement in assessing the impact, if any,
on the disclosures in respect of litigations in relation to
the Company.

(x) Determination of timing of satisfaction of performance
obligation:

The Company concluded that sale of goods is to be
recognised at a point in time because it does not meet
the criteria for recognising revenue over a period of time.
The Company has applied judgement in determining the
point in time when the control of the goods are transferred
based on the criteria mentioned in the standard read
along with the contract with customers, applicable
laws and considering the industry practices. The goods

(c) Terms / Rights attached to equity shares

The Company has only one class of equity shares having a par value of ? 2.0 per share (Previous Year : ? 2.0 per share).
Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of Interim Dividend, which is ratified subsequently.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.

The Board of Directors at its meeting held on 25^th July, 2025, recommended Final Dividend of ? 4.50/- (Rupee Four and Fifty
Paise only) (i.e. 225%) per Equity Share of face value of ? 2.00/- each fully paid up, for the Financial Year ended 31^st March,
2025, subject to approval of the members at ensuing Annual General Meeting.

In the previous year, the Board of Directors had recommended a final dividend of ? 1.0 /- per share on face value of ? 2.0/-
per share (i.e. 50%) for the FY 2023-24, which was approved by the shareholders at the 73^rd Annual General Meeting of the
Company. This is in addition to the Interim Dividend of ? 3.60/- (Rupees Three and Sixty Paise only) (i.e. 180%) per Equity Share
of face value of ? 2.00/- each fully paid up, paid during the Financial Year 2023-24, taking total Dividend for the Financial Year
2023-24 at ? 4.60/- (Rupees Four and Sixty Paise only).

As per records of the Company, including it's register of shareholders / members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Consequent to issue of Equity Shares by way of Qualified Institutions Placement and Preferential Issue during the year,
percentage of total shares held by the above shareholders has diluted since the total number of issued Equity Shares has
increased from 6,92,27,250 to 7,85,72,885.

During the year, the Company has issued 9,80,000 Warrants convertible into 9,80,000 Equity Shares of ? 2 each to Mr. R. B.
Rathi. The said Warrants are eligible for conversion into Equity Shares within a period of eighteen months from the date of
Issue i.e. 13^th December, 2024. As on 31^st March, 2025, the said Warrants have not been converted into Equity Shares and hence
are not reflected in the total number of shares held by Mr. R. B. Rathi in the table above.

(e) For a period of five years immediately preceding 31^st March, 2025

- aggregate number of shares allotted as fully paid up pursuant to contract without payment being received in cash - Nil

- aggregate number and class of shares allotted as fully paid up by way of bonus shares - Nil

- aggregate number of shares bought back - Nil

("Issue") to qualified institutional investors in accordance with the provisions of Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"). The Company has used the proceeds from
the Issue for investment in Sudarshan Europe B.V. for part funding of the acquisition of global pigment business operations
of the Heubach Group, including all associated costs in relation to the acquisition, repayment / pre-payment, in part or in
full, of certain outstanding borrowings availed by the Company and for general corporate purposes in accordance with the
Placement Document dated 28^th January, 2025. Consequently, equity share capital and other equity (securities premium) of
the Company has increased by ? 149.5 lakhs and ? 79,850.5 lakhs respectively. Issue expenses of ? 1,213.7 lakhs have been
netted from other equity (securities premium).

(i) On 13^th January, 2025, the Company has issued and allotted 18,69,000 fully paid-up equity shares of face value of ?2/- each at
a price of ?1,043.33 per equity share, including a premium of ? 1,041.33 per equity share, aggregating up to ?19,500.0 lakhs to
the identified allottees / investors, not belonging to "Promoter and Promoter Group" of the Company by way of a preferential
issue on private placement basis, for cash consideration (the "Preferential Allotment") in accordance with provisions of the
Chapter V of the SEBI ICDR Regulations and as per applicable provisions of the Companies Act, 2013 and rules made thereunder.
Consequently, equity share capital and other equity (securities premium) of the Company has increased by ? 37.5 lakhs and
? 19,462.5 lakhs respectively. Issue expenses of ? 79.0 lakhs have been netted from other equity (securities premium).

(j) Other disclosures

The Company being ultimate holding company, there are no shares held by any other holding, ultimate holding company
and their subsidiaries.

There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestment,
including the terms and amounts; except as disclosed in note 50.

Description of nature and purpose of each reserve

(a) Capital reserve

Capital reserve includes surplus on re-issue of shares made in the financial year 1996-97 amounting to C0.4 Lakhs.

(b) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

(c) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with
the specific requirements of Companies Act, 2013.

(d) Effective portion of cash flow hedge

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be
reclassified to Statement of Profit and Loss in the period in which the underlying hedged transaction occurs (refer note
49 and 51).

(e) Share options (ESOP) outstanding reserve

The share options-based payment reserve is used to recognise the grant date fair value of options issued to employees
under employee stock option plan (refer note 50).

(f) Money received against share warrants

The Fund Raising Committee of the Board of Directors of the Company at its meeting held on 31^st October, 2024, approved
raising of funds not exceeding ? 10,000 lakhs by way of issuance of upto 9,80,000 warrants, each convertible into, or
exchangeable for, one fully paid-up equity share of the Company of face value of ? 2/- each ("Warrants") at a price of
? 1,019.75 each payable in cash ("Warrants Issue Price"), which may be exercised in one or more tranches during the
period commencing from the date of allotment of the Warrants until expiry of eighteen months, to Mr. Rajesh Balkrishna
Rathi, being a part of the promoter and promoter group of the Company, by way of a preferential issue through private
placement offer. The same was subsequently approved by the Shareholders of the Company by way of resolution passed
by Postal Ballot on 30^th November, 2024. The Fund Raising Committee of the Board of Directors of the Company at it's
meeting held on 13^th December, 2024, approved the allotment of 9,80,000 warrants to Mr. Rajesh Balkrishna Rathi, as
per the details set forth below:

The above balance also includes interest accrued but not due amounting to C674.7 lakhs as at 31^st March, 2025 and C723.0
lakhs as at 31^st March, 2024.

OTHER REGULATORY INFORMATION

The Company files monthly / quarterly statement for its current assets with banks. Further, pursuant to subsequent adjustment
if any post closures of yearly books and statutory audit, the Company files the revised return with the updated amounts at
the year end.

The charges or satisfaction on the assets of the Company are registered with Registrar of Companies within the statutory
period. The Company does not have any charges or satisfaction which are yet to be registered with Registrar of Companies
(ROC) beyond statutory period.

The Company has used the borrowings obtained from banks and financial institutions for the specific purpose for which they
were taken during the year ended 31^st March, 2025 and 31^st March, 2024.

The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government
authority during the current year and previous year.

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the
present value of obligation and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done by
varying one parameter at a time and studying its impact.

Sensitivity analysis for each significant actuarial assumptions namely Discount rate and Salary assumptions have been shown
in the table above at the end of the reporting period, showing how the defined benefit obligation would have been affected
by the changes.

The method used to calculate the liability in these scenarios is by keeping all the other parameters and the data same as in the
base liability calculation except the parameters to be stressed.

There is no change in the method from the previous period and the points / percentage by which the assumptions are stressed
are same to that in the previous year.

The assumptions for mortality and attrition do not have a significant impact on the liability, hence are not considered a significant
actuarial assumption for the purpose of sensitivity analysis.

Risk Exposure

The gratuity scheme is a salary defined benefit plan that provides for lump sum payment made on exit either by way of
retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of
service and paid as lump sum at exit. The plan design means the risk commonly affecting the liabilities and the financial results
are expected to be:

(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond
yield fall, the defined benefit obligation will tend to increase.

(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight
forward and depends upon the combination of salary increase, discount rate and vesting criteria.

iii The Company does not expect any reimbursements in respect of the above contingent liabilities.

iv The Company has received demand orders from the Goods and Services Tax (GST) Department pertaining to the fiscal
years 2017-18 to 2020-21. These orders are appealable and the Company believes that it has a good case on all the points
raised by the GST Department. Hence there is no impact on the financial, operation or other activities of the Company
due to issuance of these Orders.

v The Government of Maharashtra revised electricity duty payable on captive power generation (""CPP"") vide notification
dated 13^th April, 2015 and accordingly MSEDCL issued a Circular no 214 dated 23^rd April, 2015, the revised rates for CPP was
revised to 120 paise per unit from 30 paise per unit. The rates for CPP increased by 4 times, which was very high, therefore
the Captive Power Producers Association filed writ petition with Bombay High Court which has been admitted by High
Court vide case No. WP/4963/2015 and WP/906/2017. The High Court passed interim stay order, subsequently during
the last hearing held on 24^th January, 2020, the bench passed the order to continue the interim stay granted previously.
The Company has obtained an opinion from a subject-matter expert ('SME') on the Electricity Duty contingency.
The matter is sub-judice with the Bombay High Court and the SME has opined that the Company has a good case of
success in the proceedings.

vi During the year ended March 31, 2025, the Company has applied for the amnesty scheme for specific eligible
Cenvat related case (FY2015 -16 to FY 2016 -17) of which C 28.0 lakhs is shown as contingent liabilities in the above
disclosure.

(c) OTHER LITIGATIONS

There are several other cases which has been determined as remote or has been provided in the books by the Company and
hence not been disclosed above.

(d) GUARANTEES EXCLUDING FINANCIAL GUARANTEES

The Company has given guarantees on behalf of Sudarshan Europe B.V., and RIECO Industries Limited for working capital
requirement of the subsidiary companies. The Company has issued letter of support on behalf of it's wholly own subsidiary
RIECO Industries Limited. The management has considered the probability for outflow of the same to be remote. The Company
has reviewed the financial position along with consideration of other factors of the entity to whom the guarantees are issued
and has determined that the exposure of revocation of liability is remote. Hence these financial guarantees are not measured
at fair value as per Ind AS 109 - Financial Instruments (Refer note 43). Other than this the Company has issued guarantees to
Maharashtra Pollution Control Board, Maharashtra State Electricity Distribution Company Limited, Custom authorities and
other authorities amounting to ? 645.0 lakhs (Previous Year 729.8 lakhs).

46 OTHER STATUTORY INFORMATION AS REQUIRED BY NOTIFICATION ISSUED BY MINISTRY OF CORPORATE
AFFAIRS DATED 24TH MARCH, 2021 ON AMENDMENTS ON SCHEDULE III

(a) There are no loans or advances in the nature of loans either repayable on demand or without specifying any terms or
period of repayment granted to promoters, directors, KMPs and related parties (all of these to be identified as defined
under Companies Act, 2013) either severally or jointly with any other person.

(b) The Company does not hold any Benami property and no proceedings have been initiated or pending against the
Company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.

(c) The company has transaction balance with below-mentioned companies struck-off under section 248 of The Companies
Act, 2013 or section 560 of The Companies Act, 1956:

49 RISK MANAGEMENT AND CAPITAL MANAGEMENT
A Financial instruments risk management objectives and policies

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Company's senior management is supported by an Enterprise Risk Management (ERM)
team that advises on financial risks and the appropriate financial risk governance framework for the Company. The ERM
team provides assurance to the Company's senior management that the Company's financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives. The ERM team process seeks to provide greater confidence to the decision maker and
thus enhance achievement of objectives. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, investments, trade
and other receivable, trade and other payables and derivative financial instruments. The sensitivity analysis in the following
sections relate to the position as at 31^st March, 2025 and 31^st March, 2024.

The Company uses derivatives (forward contract, interest rate swap and cross currency interest rate swap) or non-derivative
or a combination of both to hedge its exposure of forex / interest rate related risk. These instruments are either used to lock
in a lower purchase price or / and a higher sales prices / fixed interest rate. The gain or loss on hedging instrument are aligned
and effectively an offset compared with hedged item.

The economic relationship between hedged item and hedged instrument is established to ensure that both are moving in
the opposite direction because of the same hedged risk.

The credit risk associated with the hedge relationship is negligible due to the highly rated counterparties.

The Company's hedging policy only allows for effective hedge relationships. Hedge effectiveness is determined at the inception
of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship
exists between hedged item and hedging instrument. The Company enters into hedge relationships where the critical terms
of the hedging instrument match exactly with the terms of the hedged item, and so a qualitative assessment of effectiveness
is performed. If the critical terms of the hedged item do not match exactly with the critical terms of the hedging instrument,
the company uses the quantitative analysis to assess effectiveness.

Ineffectiveness is recognised on a cash flow hedge where the cumulative change in the designated component value of the
hedging instrument exceeds, on an absolute basis, the change in value of the hedged item that attributes to the hedged
risk. This may arise if there is any change in the timing of the underlying hedged item or if the critical terms of the hedging
instrument and the hedged item do not match exactly.

B Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all
other equity reserves attributable to the equity holders of the Company. The primary objective of capital management is
to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise
shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total equity. Net debt are non - current borrowings and current borrowing as reduced by
cash and cash equivalents.

There are no options vested during the year ended 31^st March 2025 and 31^st March 2024.

There is no realisation of money by exercise of option during the year ended 31^st March 2025 and 31^st March 2024.

The options outstanding at 31^st March, 2025 have an exercise price of ? 349.35 (31^st March, 2024: ? 349.35) and a weighted
average remaining contractual life of 5.2 years (31^st March, 2024: 6.2 years).

Weighted average share price at the date of the exercise of share options exercised in 2024-25 and 2023-24 is not disclosed
as no shares were exercised during the current and previous financial year.

Weighted average fair value of share options granted during the year is not disclosed as no share options were granted during
the current and previous financial year.

Expense recognised in Statement of Profit and Loss

The Company has followed the fair value method to account for the grant of stock options. Profit and loss impact for the year
ended 31^st March, 2025 is ? 0.0 Lakhs (31^st March, 2024: ? 126.1 Lakhs).

51 HEDGING ACTIVITIES
Cash flow hedges

The Company enters into derivative instruments which comprise of interest rate swaps, cross currency swaps and also
designates its foreign currency borrowings against highly probable forecasted export sales for hedge accounting to manage
its foreign currency exposure.

These instruments are measured at fair values at each reporting period resulting in derivative financial assets and derivative
financial liabilities. The gain / loss on maturity / termination of such derivative instruments is recorded in the Statement of
Profit and Loss along with the relevant hedged item.

The cash flow hedges of the highly probable forecasted export sales during the year ended 31^st March, 2025 were assessed
to be highly effective and a net unrealised (loss) / gain of ? 1,240.4 Lakhs (31^st March, 2024: ? 20.0 Lakhs) is included in OCI.
The amounts retained in OCI at 31^st March, 2025 are expected to be realised in the Statement of Profit and Loss till the year
ended 31^st March, 2028.

For qualitative details w.r.t hedging strategy followed by the Company refer note 49(A).

Derivatives not designated as hedging instruments:

The Company has used foreign exchange forward contracts to manage its import payments, loan repayments and realisation
from export customers. These 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 i.e. the payments against import
purchases, loan repayments and realisation from export customers.

a) The Board of Directors of Sudarshan Europe B.V ("SEBV") (wholly owned subsidiary of Sudarshan Chemical Industries
Limited) at its meeting held on 8^th October, 2024 provided its in-principle approval for the acquisition of global pigment
business operations of the Heubach Group of Germany through an asset and share deal, subject to completion of
customary conditions and receipt of requisite regulatory approvals. Pursuant to this, SEBV has entered into a definitive
agreement in relation to the said proposed acquisition on 11^th October 2024. The said acquisition was completed on
3^rd March, 2025 ("Closing Date") by SEBV for a preliminary purchase consideration of €151.9 million (approx. ? 1,38,990.0
lakhs). The acquisition was financed through a combination of external funds raised by the Company and borrowings
availed by SEBV. Transaction and other incidental costs with respect to the aforesaid acquisition incurred up to 31^st March,
2025 have been disclosed as "Exceptional items".

b) During the year ended 31^st March, 2024, the Company concluded the sale of its freehold land along with the structures
thereon located at 162 Wellesley Road, Pune 411001, for a total consideration of ? 35,600.0 lakhs resulting into a gain of
? 31,510.1 lakhs (net of transaction costs and other incidental costs). Tax expense on this exceptional item amounting
to ? 6,921.0 lakhs is included in current tax expenses for the year ended 31^st March, 2024.

c) During the year ended 31^st March 2024, as a part of restructuring / consolidation with the purpose of having a single
entity as Global Holding Company for all overseas subsidiaries, the Company, through Share Purchase Agreement dated
22^nd March 2024, divested its holding in Sudarshan (Shanghai) Trading Company Limited to Sudarshan Europe B.V. for a
total consideration of ? 134.7 Lakhs resulting into an exceptional loss of ? 344.1 Lakhs (including transaction cost and
other incidental cost) for the year ended 31^st March 2024.

The management assessed that the fair value of cash and cash equivalent, bank balances, trade receivables, trade payables,
and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities
of these instruments.

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

The following method and assumptions were used to estimate the fair value:

(i) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such
as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of
the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these
receivables.

(ii) The fair value of unquoted instruments, loans from banks, lease liabilities and other current financial liabilities as well
as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for
debt on similar terms, credit risk and remaining maturities.

(iii) The Company enters into derivative financial instruments with financial institutions and banks with investment grade
credit ratings. Foreign exchange Forward Contracts and Interest Rate Swap are valued using valuation techniques,
which employ the use of market observable inputs. The most frequently applied valuation techniques include forward
pricing models, using present value calculations. The model incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads
between the respective currencies, interest rate curves and forward rate curves of the underlying commodity.

(iv) The fair values of the Company's interest-bearing borrowings and loans are determined by using Discounted Cash Flow
method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own
non-performance risk was assessed to be insignificant.

54 FAIR VALUE HIERARCHY

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities

Quoted prices in an active market (Level 1): 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 mutual fund investments.

Valuation techniques with observable inputs (Level 2): 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). This level of hierarchy include Company's over-the- counter (OTC)
derivative contracts.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets
and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are
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 are they based on available market data.

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on
a recurring basis as at 31^st March, 2025 and 31^st March, 2024.

There were no significant inter-relationships between unobsevable inputs that materially affect fair values.

There have been no transfers among Level 1, Level 2 and Level 3 during the year.

In determining fair value measurement, the impact of potential climate-related matters, including legislation, which may
affect the fair value measurement of assets and liabilities in the financial statements has been considered. The Company
has assessed whether its properties are exposed to physical risks, such as flooding and increasing wildfires, but believes that
this is currently not the case. However, the Company believes it is, to some extent, impacted by transition risks, and, more
specifically, increasing requirements for energy efficiency of buildings due to climate-related legislation and regulations as well
as tenants' increasing demands for low-emission buildings. The Company, therefore, takes into account necessary upgrades
required to ensure future compliance with those requirements when measuring the fair value of investment properties (if
any).

55 EVENTS AFTER THE REPORTING YEAR ENDED 31ST MARCH, 2025

The Management of the Company has evaluated all the activities of the Company till 25^th July, 2025 and has noted the
following material non-adjusting subsequent events:

a. The Board of Directors of the Company at its meeting held on 14^th February, 2025, accorded its approval for reclassification
of Mr. Anuj N. Rathi Group (which includes Mr. Anuj N. Rathi - 6.93%, Mr. Narayandas J. Rathi - 0.56%, Mrs. Archana A.
Rathi - Nil, Anuj N. Rathi (HUF) - Nil, and NJR Finance Private Limited - Nil) from 'Promoter/Promoter Group' category to
'Public' category pursuant to the provisions of Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("SEBI Listing Regulations, 2015"). Subsequent to the year end, the Stock Exchanges have provided
their no objection / approval for the aforesaid reclassification vide letter dated 4^th April, 2025. Further, the Shareholders
of the Company have approved the aforesaid reclassification through an ordinary resolution passed by way of postal
ballot mechanism on 24^th May, 2025.

b. The Board of Directors of the Company at its meeting held on 29^th May, 2025, accorded its approval for reclassification of
Mr. Pradeep R. Rathi Group (which includes Mr. Pradeep R. Rathi - 4.36%, Mr. Rahul P. Rathi - 3.85% and Mrs. Subhadra P.
Rathi - Nil) from 'Promoter/Promoter Group' category to 'Public' category pursuant to the provisions of Regulation 31A
of SEBI Listing Regulations, 2015. Subsequent to the year end, the Stock Exchanges have provided their no objection
/ approval for the aforesaid reclassification vide letter dated 15^th July, 2025. Further, the Company is in the process of
seeking approval of the Shareholders of the Company for the aforesaid reclassification.

c. Subsequent to the year end, the Board of Directors of the Company at its meeting held on 29^th May, 2025, approved
appointment of Mr. Rajesh Balkrishna Rathi (DIN: 00018628) as the Chairman of the Board of Directors of the Company
effective from the close of business hours on 29^th May, 2025. This appointment is in addition to his existing role as
Managing Director of the Company. This change follows the resignation of Mr. Pradeep Ramwilas Rathi (DIN: 00018577)
from the position of Chairman and as a Non-Executive, Non-Independent Director of the Company, which also became
effective from the close of business hours on 29^th May, 2025.

d. Subsequent to the year end, the Company has completed vesting of 86,489 options pursuant to Sudarshan Employee
Stock Option Plan, 2018. The same was duly approved at the meeting of the Nomination and Remuneration Committee
of the Company held on 22^nd April, 2025.

56 Additional regulatory information/disclosures as required by General Instructions to Division II of Schedule III to the Companies
Act, 2013 are furnished to the extent applicable to the Company.

57 MCA has amended Rule 3 of the Companies (Accounts) Rules, 2014 (the "Accounts Rules") relating to the mode of keeping
books of account and other books and papers in electronic mode through an amendment on 5^th August, 2022. In compliance
with the requirements of the amendment, the books of accounts and other relevant books and records are accessible in India
at all times. Further, backup of books of account maintained in electronic form is kept in servers physically located in India on
a daily basis.

58 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except
that audit trail feature is not enabled for changes, if any, made using certain administrative access rights to the SAP Hana
software and SAP Hana database. These administrative rights were restricted to limited users. Further, these administrative
access rights at the application level have been revoked and audit trail feature at database is enabled subsequent to the year
end. Further, no instance of audit trail feature being tampered with was noted in respect of such accounting software where
the audit trail has been enabled. Additionally, 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 respective years.

59 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of
reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the year
ended March 31,2025. However, the management will continue to monitor the situation from the perspective of potential
impact on the operations of the Company.

As per our report of even date attached For and on behalf of the Board of Directors of Sudarshan Chemical Industries Limited

For S R B C & CO LLP S. P. Navandar R.B. Rathi Nilkanth Natu

Chartered Accountants Independent Director & Chairman & Chief Financial Officer

ICAI Firm Registration Number: Audit Committee Chairperson Managing Director ICAI Membership

324982E/E300003 DIN No. 02804964 DIN No. 00018628 No.:108532

per Huzefa Ginwala Mandar Velankar

Partner Company Secretary

Membership No.:111757 ICSI Membership No.:14469

Place: Pune Place: Pune

Date : 25^th July, 2025 Date : 25^th July, 2025