1. Buildings include ? 250/- (Previous year ? 250/-) for shares issued in favour of the Company having office premises in a co-operative society.

2. Capital work in Progress & Addition to fixed Assets includes Property,Plant & Equipment under construction ? 1,690.88 lakhs (Previous year - ? 3,709.36 lakhs), Machinery Spares Stock ? 0.90 lakhs (Previous year -? 194.48 lakhs) and preoperative expenses and trial run expenses incurred during the year in the form of Employee Benefits expense of? 157.35 lakhs (Previous year ? 396.71 lakhs), Rates & Taxes - ? Nil (Previous year ?4.76 lakhs), Interest & Finance Expenses ? 18.98 lakhs (Previous Year - ? 724.93 lakhs), Insurance Premium ? 29.14 lakhs (Previous Year - ? 44.48 lakhs), Power, Fuel & Water Charges ? 19.66 lakhs(Previous year ? 436.02 lakhs), Raw material consumed ? 98.41 lakhs (Previous year 2,807.71 lakhs), Closing stock (? 112.41) lakhs (Previous year Nil), Stores and packing material consumed ? 5.87 lakhs(Previous year ? 41.75 lakhs), Repair & Maintenance ? Nil (Previous year ? 33.31 lakhs), Selling expenses ? Nil (Previous year ? 124.72 lakhs), Depreciation ? Nil (Previous year ? 47.71 lakhs) and Miscellaneous Expenses ? 273.15 lakhs (Previous Year - ? 31.63 lakhs) Less Sale of Finished Goods ? Nil (Previous year ? 5,066.00 lakhs) and Other operating income ? Nil (Previous year ? 5.62 lakhs).

3. Goodwill

The Company tests goodwill annually for impairment

Goodwill was recognised from business combination during the year ended 31^st March, 2018 and represents difference of purchase consideration paid & allocation to Identified Assets & Liabilities as per Valuer‘s Report on acquiring manufacturing unit of Maleic Anhydride. The estimated value-in-use of the Unit is based on the future cash flows using at 2% annual growth rate for periods subsequent to the forecast period of 5 years and discount rate of 17%. An analysis of the sensitivity of the computation to a change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonable assumptions, did not identify any probable scenario in which the recoverable amount of the Unit would decrease below its carrying amount.

4. Pursuant to the amendment to the Companies (Accounting Standards), Rules, 2006 by notification dated 29^th December 2011 issued by the Ministry of Corporate Affairs and exemption allowed vide D133AA of Ind AS-101 first time adoption of Ind AS, the Company continues to exercise the option in terms of Para 46A inserted in the Standard for long term foreign currency monetary assets and liabilities. Consequently the loss of foreign exchange of? 11.39 lakhs for the year and loss of foreign exchange ? 1,180.15 lakhs as on 31^st March, 2022 has been capitalised.

i. The Company has availed two External Commercial Borrowings (ECB) which are repayable in 17 equal semi-annual instalments commencing from 29^th November, 2019 and 15^th September, 2013. The ECB is secured by the first pari-pasu charge on the fixed movable assets (other than current assets) and registered mortgage on immovable properties of the Company by way of first pari-passu charge. The ECB whose repayment commenced on 15^th September, 2013 has since been repaid in full on 15^th September, 2021.

ii. Term Loan from Export Import Bank of India is secured by hypothecation of the Current assets, movable plant machinery and equipment, etc. of the Company and Personal Guarantee of two Directors of the Company,the loan is repayable in 20 equal quarterly instalments commencing from 1^st October, 2024.

i. Bank borrowings are secured by first pari passu charge on the whole of the current assets of the Company and second pari passu charge on the movable properties of the Company amongst Working Capital lenders under consortium banking arrangement. The loan is also secured by mortgage of immovable properties of the Company by way of second charge and Personal Guarantee of two Directors of the Company.

ii. Bill discounting Facility is secured by respective book debts & personal Guarantee of two Directors of the Company.

The Management is confident that the matters will be in favour of the Company as per legal opinions obtained/ legal precedents.

Future cash outflows in respect of above items are determinable only on receipt of judgments / decisions pending at various forums/authorities.

e. The Board at its meeting held on 20^th May, 2022 considered and recommended a dividend @100 % i.e. ' 10/-per share of ' 10/- each for the financial year 2021-22 amounting to ' 3,079.49 lakhs. (Previous Year @75% i.e. ' 7.50/- per share taken as deduction under Reserves & Surplus) subject to approval of the members of the Company.

32 | SEGMENT INFORMATION

Primary Business Segment

The Company is exclusively engaged in a single business segment of manufacture and sale of organic chemicals and accordingly this is the only primary reportable segment.

Geographical Segments

Secondary segmental reporting is based on the geographical location of customers. The geographical segments have been disclosed based on revenues within India (sales to customers within India) and revenues outside India (sales to customers located outside India). Secondary segment assets and liabilities are based on the location of such asset/liability.

Notes:

a) The related party relationships have been determined on the basis of the requirements of the Indian Accounting Standard (Ind AS -24) “Related party disclosures” and the same have been relied upon by auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year.

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criterial for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note-I of significant accounting policies to the financial statements.

(b) The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to level 3, as described below:

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

Level-2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level-3: Techniques which use inputs that have a significant effect on the recorded Fair Value that are not based on observable market data.

(c) Financial Risk Management Policies and objectives:

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures and borrowings.

Interest rate risk

The Company’s does not have any significant interest bearning asset however there are certain unsignificant interest bearing liability. As such, the Company is not exposed to significant interest rate risk as at the reporting date.

Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies.

The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company maintains sufficient cash and cash equivalents to manage its liquidity risk.

Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Company. To manage this, the Company periodically assess the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and agreeing of accounts receivable. Individual risk limit are set accordingly.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivatives, cash and cash equivalents, bank deposits and other financial assets.

During the year ended 31^st March, 2018 the Company had acquired the manufacturing unit of M/s Mysore Petro Chemicals Limited with effect from 1^st April, 2017 for a consideration of ' 7,448.00 lakhs on slump sale basis, as per the valuation by Haribhakti & Co. LLP. The transaction was accounted under Ind AS 103 "Business Combination” as a business combination with the purchases price being allocated to identifiable assets and liabilities at fair value as determined by an approved valuer.

Goodwill arose in the acquisition of above business because the cost of combination included a control premium. In addition, the consideration paid for the combination effectively included amounts in relation to the benefit of expected synergies, revenue growth, future market development and assembled workforce of acquired business combination. These benefits are not recognised separately from goodwill as they do not meet the recognised criteria for identifiable intangible assets.

39 | RESEARCH & DEVELOPMENT

Research & Development Expenditure of ' 75.65 lakhs (Previous Year ' 69.96 lakhs) has been accounted for in the respective heads of the Statement of Profit and Loss.

40 | The outbreak of corona virus (Covid-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The management has made an assessment of the impact of Covid-19 on the Company’s operations, financial performance and position as at 31^st March, 2022 and has concluded that there is no material impact which is required to be recognised in the Standalone financial statements. Accordingly, no adjustment have been made to the financial results. However the Company continues to monitor the situation and take appropriate action, as considered necessary.

42 There was no impairment loss on non- financial assets on the basis of review carried out by the management in accordance with the Indian Accounting Standard ( Ind AS-36 ) "Impairment of Assets”

43 The Company had elected to exercise the option permitted under Section 115 BAA of the Income Tax Act, 1961. Accordingly the Company has recognised Provision for Income Tax from Financial Year 2020-21.

44 | The Code on Social Security 2020 ('the Code’) relating to employee benefits, during the employment and postemployment, has received Presidential assent on 28^th September, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on 13^th November, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact.