Fair value of Investment Property

The fair value of the Company's total investment property as at 31^st March 2023 is '2,805.89 lakhs ('2,665.87 lakhs as at 31^st March 2022). The valuation has been carried out by Mr.Khatib Ahmed, Chartered Engineer.The valuer is not registered under companies (Registered Valuers and valuation) Rules, 2017.

(e) Details of shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts: Nil

(f) Equity Shares movement during 5 years immediately preceding the financial year ended 31^st March 2023:

(i) Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash : Nil

(ii) Aggregate number of equity shares allotted as fully paid up by way of Bonus Shares: Nil

(iii) Aggregate number of equity shares bought back: Nil

(g) Details of Terms of any securities convertible into equity / preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date: Nil

(h) Calls unpaid (showing aggregate value of calls unpaid by directors and officers): Nil

(i) Forfeited shares (amount originally paid-up): Partly paid shares forfeited for ' 34.04 lakhs.

1. Sanctioned amount '250.00 lakhs disbursed during July 2020 for Covid emergency loan. 80% secured by stocks and book debts and 20% clean. Balance outstanding as on 31^st March 2023 was '16.99 Lakhs. Rate of interest linked to one year MCLR of Bank, with annual reset interest ranging between 7.50% to 7.55%. Principal repayable in 30 equal monthly instalments starting from February 2021.

2. Sanctioned '2,707.00 lakhs during February 2022 as Capacity Enhancement Project Term Loan. Rate of interest rate is ranging at 7% to 9.50% with repo linked. Availed during the year '1,415.69 Lakhs and balance outstanding as on 31^st March 2023 was '2,224.61 lakhs. The term loan is secured with exclusive charge on project assets created out of this loan. Monthly installment repayment of '56.40 lakhs starting from January 2023.

(a) Liability to existing employees of the Company in respect of gratuity is covered under insurance policy (maintained with Reliance Nippon Life Insurance Company Limited) administered by a Trust maintained by Kothari Petrochemicals Limited (KPL).The actuarial valuation is done by an independent external valuer under the Projected Unit Credit Method to ascertain the liability enterprise wise. During the year2021-22, KPLhas created separate trust for KPLemployees and equitable interesttransferbasedonactuary valuation were carried out.Thefollowingtablesummarisesthecomponentsof defined benefit plan cost to be recognised in statement of profit and loss account, other comprehensive income, liability to be recognized in balance sheet and changes in fair value of planned assets.

(a) Contribution to Provident Fund is in the nature of defined contribution plan and are made to Employees Provident Fund Scheme, 1952. Under the Scheme the Company is required to contribute a specified percentage of payroll cost to the Scheme. The interest as declared by the Government from time to time accrues to the employees under the Scheme.

(b) Contribution to Superannuation Fund is in the nature of defined contribution plan and is remitted to Reliance Nippon Life Insurance Company Limited. Under the Scheme the Company is required to contribute a specified percentage of payroll cost to underwriters to enable them to make settlement to the qualifying employees.

(c) Contribution to Employees' Group Gratuity-cum Life Assurance scheme is in the nature of Defined Benefit plan and is remitted to Reliance Nippon Life Insurance Company Ltd. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

(d) Liability for unavailed leave for employees is considered as short term benefit and provided accordingly in books.

Note - 32: Capital Management

The Company's capital management is intended to maximise the return to shareholders of the Company through the optimization of debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans. The funding requirements are met through equity and long term/short term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Note - 35: Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest risk and equity price risk), credit risk, liquidity risk and cyber security risk.

The Company seeks to minimise the effect of these risks by using financial instruments such as foreign currency forward contracts and appropriate risk management policies. The Company does not enter into trade financial instruments, including derivative financial instruments for speculative purposes.

a) Foreign currency risk management

The Company is exposed to foreign exchange risk on account of exports. The Company has a forex policy in place whose objective is to reduce foreign exchange risk by deploying the appropriate hedging strategies (forward covers) and also by maintaining reasonable open exposures within the approved parameters depending on the future outlook on currencies.

The forward contracts have been entered into to hedge highly probable sale transactions and trade receivables. Forward cover has been taken for all the export trade receivables as at the above dates. Exposures to other currency is negligible and hence not considered above.

b) Interest rate risk management

The Company uses cash credit for working capital and term loan for capex. The interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of reporting was outstanding for the whole year. A 50 basis point increase or decrease in case of Rupee borrowing is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rate.

If the interest rate were to increase by 50 basis from 31^st March 2023, in case of Rupee borrowings and all other variables were held constant,Impact of '11.21 lakhs as additional annual interest expense on floating rate borrowing would arise as on 31^st March 2023. (31^st March 2022 '5.49 lakhs).

c) Equity price risks

The Company's listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification, by placing limits on equity instruments and party routing through portfolio management services. Reports on the equity portfolio are submitted to the Company's senior management on a regular basis. The Company's Board of Directors reviews and approves all equity investment decisions.

Increase or decrease in equity prices by 5% would the expose the listed equity securities at fair value of '268 lakhs by '13.41 lakhs as at 31^st March 2023 ('10.21 lakhs - as on 31^st March 2022).

d) Credit risk management

Credit risk refers to the risk that acounter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and controls relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and credit worthiness of its counter parties are periodically monitored and taken up on a case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as the major chunk of trade receivables is from oil PSUs with high credit rating. There is no material expected credit loss based on the past experience. The Company assesses the impairment of trade receivables on a case to case basis and creates loss allowances, if required.

e) Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

f) Cyber security Risk

This risks refers to the potential loss due to a breach or failure of an organizations's information systems or technology infrastructure. It may results in financial losses, legal liabilities and damage to an organization's reputation which can affect financial stability and performance.

It can manifest in various forms, such as hacking, phishing, malware, ransomware, and denial-of-service attacks. These threats can lead to theft of sensitive information, disruption of operations, or destruction of data, all of which can result in financial losses for the organization.

The company has put in place effective management of cyber security risk by adopting a comprehensive approach that includes implementing of security controls, conducting regular vulnerability assessments, training employees on cyber security best practices. By managing cyber security risk effectively, organizations can protect their financial assets and ensure their ongoing financial stability and success.

Note 36: Events after the reporting period

No adjusting or significant non-adjusting events have occurred between 31^st March 2023, the reporting date and the date of approval of financial statements.The Board of Directors recommended a Final dividend of ' 0.75 per equity share in the meeting held on 26^th May 2023.

Note - 39: Segment Reporting (Ind AS 108)

The Company is engaged in the business of Manufacture and sale of Petrochemical Products which constitutes single business segment. As per management's perspective, the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported under Ind AS 108.

(ii) Disclosure on borrowings secured against current assets:

The company has working capital facilities from Indian bank. Quarterly returns or statements filed by the company against current assets with the bank and are in agreement with the books of accounts.

(iii) Registration of charges or satisfaction with Registrar of Companies (ROC):

The company has no charges or satisfaction yet to be registered with ROC beyond the statutory period.

Note - 41: Exceptional items

Last year, the company scrapped old equipment which have no further use, the carrying amount in books was derecognised and shown under exceptional loss. During the year, the company has realized proceeds from the disposals of the old equipments which was scrapped during March 2022. The resultant gain is shown under exceptional item.

Note - 42: Previous year figures

Previous year figures have been regrouped wherever necessary to correspond with current year's classification/ disclosure.