అకౌంట్స్ గమనికలుAgro Phos India Ltd.

Mar 31, 2025

NATURE AND PURPOSE OF RESERVES:

(II Securities Premium

Securities Premium Reserve is created on receiving ₀f premium on issue of shares. The reserve can be uofcsed In accordance with the provisions of the Companies Act, 2013.

(II) Capital Reserve

The capital reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(II) Retained Eaminqs

The same is created out of profits over the years and shall be utilised as per the prowsons of the act.

Working Capital Loans from Axis Bank Rs. 1774.65 Lacs (Previous Year -Rs. 1789.97 Lacs, 01 April 2023 • Rs. 1611.18 Lacs) Is secured by :

a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movable fixed assets, both present and future,of the Company and personal guarantee of Directors and carry Rate of Interest 9.75% p.a. (Previous Year 9.50 % p.a., 01 April 2023 9.65 % p.a.)

b) Further secured by Equitable Mortgage on following properties:

1. Factory land and building situated at 13A''2, Industrial Area No. 1, AB Road, Dewas (MP) 455111.

2. I35-A,138-A,I36-A,I36-A II & 137-A ,AKVN Industrial Road, Meghnagar, Dst. Ihabua Madhya Pradesh In the name of Agro Phns (India) Limited.

3. Residential House situated at A-7, Mangal Murti Nagar, Navlakha Mam Road, Indore (MP) 452001 In the name of Mrs. Uma Gupta.

4. Residential House situated a? WA-12, Sector A, Scheme No. 94, Ring Road, Indore (MP) 452001 in the name ol Ms. Shraddba Gupta.

5. Office premies situated at M-91-92 Trade Center, 18 South Tukogan), Indore (MP) 452001

II Working Capital Loans from Canara Bank Rs. 957.84 Lacs (Pre.Year -Rs. 956.02 Lacs, 01 April 2023 Rs. 745.91 Lacs) are secured by :

a) Secured by hypothecator, of Inventories & Book debts and carry Rale of interest 9.75% p.a. (Previous Year 9.75% p.a. as at 1st April 2023 9.65%)

b) Further secured by Equitable Mortgage on following properties:

1. Survey No. 9/13/3 situated Village Lasudia Mori Patwari Halka No. 17 (new 45) District and Tehsil Indore

2. Survey No. 9/13/4 situated Village Lasudia Mori Patwan Halka No. 17 (new 45) District and Tehsil Indore

3. Office premises situated at M-86, M-87/A , M-87/B, M-88/A , M-88/B Trade Center, 18 South Tukoganj, Indore (MP) 452001

III Temporary overdraft from Axts Bank Rs. Nil (Pre.Year Rs. Nil, 01 April 2023 Rs. 100.12 lacs) repayaDle on demand and carry Rate of Interest Nil (Previous year Nil, 01 April 2023 11.15 % p.a.)

NOTE: 36 • CONTINGENT LIABILITIES AND COMMITMENTS			(Rs. in lacs)
	Particulars	As at 31st March,2025	As at 31st March,2024	As at 01st April, 2023
	a. Contingent Liability Sates Tax demand disputed m appeal		21.43	13.40
	0 The company does not expect any reimbursements in respect of tne above continoent liabilities
	) It is not piact cable to estimate the timing of cash outflows, if any, in respect of above matters due to pendeng resolution of the arbitration/ appellate proceeding, Further, the liability me>tioned in above indudes interest except m cases where the Comoany has determined that the possibility of such
	b. Capital commitments Estimated amount of contracts remaining to be executed on capital account and not provided tor (Net of advances of Rs 12.11 Lacs previous yea'' Rs. Nil), As at 01.04.2023 Rs. 21.00 Lacs)	10.00		34.00

NOTH: 40

For the financial year ended 31st March 2025, the Company was not required to spend any amount towards Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013. However, dunng the year, the Company spent 9.00/- Lacs towards unspent CSR obligations from previous years, comprising *8.90/- Lacs related to FYs 2015-16 to 2017-18 and *0.10/- Lacs related to FY 2023-24. thereby fulfilling all outstanding CSR commitments.

Financial risk management

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

(i) Market risk

(a) Currency risk;

(b) Interest rate nsfc;

(c) Commodity risk;

(ii) Credit risk ; and (iii) Liquidity risk;

Risk management framework

Tiie Company''s activities expose It to a variety of financial risks. Including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company''s risk management assessment policies and processes are estate-shed to identify ana analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. These policies and processes are reviewed by management regularly to reflect changes In market conditions and the Company''s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(I) Market risk

Market risk a the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company''s income or the value of Us holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.

(a) Currency risk

The fluctuation in foreign currency exchange rates may have impact on the profit and kiss account, where any transaction has more than une currency or where assets/llabiBdes are denominated In a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates m those countries. The risks primarily relate to fluctuations in U.S. dollar and Euro, against the respective functional currrencies. The Company, as per its risk management policy, uses foreign exchange and other derivative instalments primarily to hedge foreign exchange- and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.

Interest rate risk is the nsk that the fair value or future cash flows of a financial instalment will fluctuate because of changes in market interest rates The company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing from bank and financial companies. Currently Company Is not using any mitigating factor to cover interest rate nsk.

Interest rate sensitivity

A reasonably possible change of 1% in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by amounts shown below. This analysis assumes that all other variables, in particular, foreign currency exchange rates, remain constant This calculation also assumes that the change occurs at the balance sheet date and has been calculated based or» risk exposures outstanding as at that date. The period end balances are riot necessarily representative of the average debt outstanding during the period.

Credit risk is the risk of financial toss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customer. The Company establishes an allowance for doubtful debts and impairment that represents its estimate on expected loss model.

A. Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment Credit risk Is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Expected credit loss assessment for customers as at March 31, 2025, March 31, 2024 and April 01, 2023

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit tosses. Historical trends of Impairment of trade receivables do not reflect any significant credit losses. Impa-red amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay thou outstanding balances, mainly due to economic circumstances.

B. Cash and cash equivalents

The Company holds cash and cash equivalents voth credit worthy banks of Rs. 10.4G Lacs as at March 31, 2025, (Rs. 9.07 Lacs as at 31st March 2024 & Rs. 13.53 Lacs as at 01 April 2023).The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

NOTE: 47 - SEGMENT REPORTING

(a) The Company is in the business of manufacturing / marketing of Fertilisers. This is the only activity performed and is thus also the main source of risks and returns. The Managing Director and Chief Financial Officer of the Company has been identified as the chief operating decision maker (CODM) as defined by Ind AS 108, ''Operating Segments''. Further, all the customers and assets are located in India. Accordingly, the Company has a single reportable and geographical segment. Hence, the relevant disclosures as per Ind AS 108, "Operating Segments" are not applicable to the Company.

NOTE: SS - ADDITIONAL REGULATORY INFORMATION

The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies '' Act, 2013.) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

The company neither have any Benami property nor any pnxeedlogs have been initiated or pending against the company for raiding any benami property "¦ under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

iii. the company is not declared wilful defaulter by any bank or financial Institution or other tender.

the company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies A a. 1956.

The company has not made any Investments in subsidiary company hence compliance with the number of layers prescribed under clause (87) of section 2 of ^v‘ the Act read with Companies (Restriction on number cf Layers) Rules, 2017 cs not applicable.

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other v5. peison(s) or entity(ics), including foreign entities (Intermediaries) with the understanding (whether recorded m writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Unimate Beneficiaries,

(8) The company has not received any fund from any persons) or entity(ies), Including foreign entitles (Funding Party) with the undeistanding (whether recorded in writing or otherwise) that the company shall

(I) directly or indirectly lend or Invest In other persons ot entities Identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ^v '' in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions ol the Income Tax Act, 1961).

vRI. The Company has not traded or Invested In Crypto currency or Virtual Currency during the financial year,

The company has borrowings from banks or financial institutions on lt

NOTE: 56

Intercorporate Loans was presented under other financial assets (Refer Note No 12) in previous years is regrouped and presented in loans (Refer Note No 11) as Financial assets from current financial year, accordingly previous year figures atso regrouped

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Mar 31, 2024

NOTE: 53 - ADDITIONAL REGULATORY INFORMATION

The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined

i. under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

_ii The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any

ⁱⁱ. benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

_i The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of

^iv. Companies Act, 1956.

The company has not made any investments in subsidiary company hence compliance with the number of layers prescribed under clause

^v. (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of

vi. funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as

vii. income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

The company has borrowings from banks or financial institutions on the basis of security of current assets. Quarterly returns or statements

ix. of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts except following differences:

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Mar 31, 2023

xv. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources 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 its existence in the financial statements

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 Company. Contingent assets are not recognized, but its existence is disclosed in the financial statements where an inflow of economic benefits is probable.

xvi. Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

As per the requirements of Ind AS 116 the company evaluates whether an arrangement qualifies to be a lease. In identifying a lease the company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extent the lease if the company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The Company revises the lease term if there is a change in the noncancellable period of a lease.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately from nonlease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

Right of Use Assets

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the lease term. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable and impairment loss, if any, is recognised in the statement of profit and loss.

Lease hold land are amortised over period of lease and considered as Right of Use assets and classified accordingly.

Lease Liability

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the remeasurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. If an arrangement contains lease and non-lease components, the Company applies Ind AS 115 Revenue from contracts with customers to allocate the consideration in the contract.

xvii. Impairment of Non-Financial Assets

The company assesses at each reporting date whether there is any objective evidence that a nonfinancial asset or a group of non-financial assets are impaired. If any such indication exists, the company estimates the amount of impairment loss.

For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or group of assets is considered as cash generating unit.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognized in statement of profit and loss and reflected in an allowance account. When the company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been in place had there been no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement of Profit and Loss, taking into account the normal depreciation/amortization.

xviii. 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. Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts, interest rate swaps and currency options; and embedded derivatives in the host contract.

i. Financial assets Classification

The Company classifies financial assets in the following measurement categories:

a. Those measured at amortised cost and

b. Those measured subsequently at fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset are adjusted to the fair value in case of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the company commits to purchase or sell the asset. Measured at amortised cost

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.

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.

Measured at fair value through other comprehensive income (FVOCI)

A financial asset is measured at FVOCI 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.

Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to profit and loss. Interest earned whilst holding FVOCI debt instrument is reported as interest income using the EIR method.

Financial Asset at fair value through profit and loss (FVTPL)

FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL.

In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'').

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognised (i.e. removed from the company''s balance sheet) when:

i. The rights to receive cash flows from the asset have expired, or

ii. 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 ''passthrough'' 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.

iii. When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the company''s continuing involvement. In that case, the company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.

iv. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.

b) Trade receivables.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

i. Trade receivables which do not contain a significant financing component.

The application of simplified approach recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

ii. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

ii. Financial liabilities Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative financial instruments.

Financial liabilities at fair value through profit or loss.

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. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the group that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

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 as finance costs in the statement of profit and loss.

This category generally applies to interest-bearing loans and borrowings.

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 or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and when the company has a legally enforceable right to set off the amount and it intends either to settle them on net basis or to realize the asset and settle the liability simultaneously.

xix. Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values, for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

xx. Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to income item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant related to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

Subsidy for fertilisers is recognized as per the rates notified by the Government of India in accordance with Nutrient Based Subsidy Policy from time to time. Subsidy income recognized only when goods finally sold to end user / farmer and bill generated through IMFS System.

xxi. Standard issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

(a) Ind AS 1 - Presentation of Financial Statements - The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy

information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements.

(b) Ind AS 12 - Income Taxes - The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the Initial recognition exemption of Ind AS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions such as initial recognition of a lease and a decommissioning provision.

(c) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - The definition of a "change in accounting estimates" has been replaced with a definition of "accounting estimates". Accounting estimates are defined as "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

The Company is evaluating the impact, if any, in its financial statements and does not expect to have these amendments to have any significant impacts in its financial statements.

NOTE: 43 - FINANCIAL INSTRUMENTS- FAIR VALUES AND RISK MANAGEMENT Financial risk management

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

(i) Market risk

(a) Currency risk;

(b) Interest rate risk;

(c) Commodity risk;

(ii) Credit risk ; and

(iii) Liquidity risk;

Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company''s risk management assessment policies and processes are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. These policies and processes are reviewed by management regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(i) Market risk

Market risk is the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company''s income or the value of its holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.

i(a) Currency risk

The fluctuation in foreign currency exchange rates may have impact on the profit and loss account, where any transaction has more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchangrates in those countries. The risks primarily relate to fluctuations in U.S. dollar and Euro, against the respective functional currencies. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.

NOTE: 52 - ADDITIONAL REGULATORY INFORMATION

The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related

i. parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

The company neither have any Benami property nor any proceedings have been initiated or pending against the company for

ii. holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

_jv The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or '' section 560 of Companies Act. 1956.

The company has not made any investments till 31st March, 2023 in subsidiary company hence compliance with the number ^v- of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules,

"7017 ic nnt annliraKlo

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other vi. sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax ^Vll‘ assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

. The company has borrowings from banks or financial institutions on the basis of security of current assets. Quarterly returns or statements of current assets filed by the company '' with banks or financial institutions are in agreement with the books of accounts except following differences:

Notes forming part of financial statements

NOTE: 53

Previous year’s figures are regrouped or rearranged wherever considered necessary to make them comparable with current year''s figures.

As per our report of even date attached. For and on behalf of the Board of Directors

For ASHOK KHASGIWALA & CO. LLP

Chartered Accountants

(Firm Registration No 0743C/C400037) Rajkumar Gupta Vishnukant Gupta j

Managing Director Whole Time Director and CFO

DIN : 00244925 DIN : 05233476

CA Ashok Khasgiwala

Partner

Membership No.070288 Indore, 30.05.2023

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Mar 31, 2018

A. General Information

Agro Phos (India) limited is a public limited company incorporated under the Companies Act, 1956 bearing Corporate Identity No. U24123MP2002PLC015285 dt. 19.09.2002 having registered office at M-87, Trade Centre 18M, South Tukoganj, Indore, MP -452001. The Company was initially incorporated as a private limited company and has been converted into public limited company w.e.f. 28.02.2004. Company established its manufacturing facilities at Industrial Area, Dewas (M.P.) during the year 2014-15 and its new manufacturing facility at Meghnagar Distt. Jhabua (M.P.). The Shares of the Company are listed at the National Stock exchange SME Platform

1.1 Rights, Preference and restrictions attached to Shares :

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 For a period of five years immediately preceding the date of Balance Sheet i.e. 31st March 2018 the company has :-

(i) Not allotted shares as fully paid up pursuant to contract (s) without payment being received in cash.

(ii) Allotted 11515292 equity shares as fully paid up by way of bonus shares during F.Y. 2016-17.

(iii) Not bought back any shares .

I Working Capital Loans from Axis Bank Rs. 171313005/- (Pre. Year Nil) is secured by :

a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movable fixed assets, both present and future,of the Company and personal guarantee of Directors.

b) Further secured by Equitable Mortgage on following property:

1. Factory land and building situated at 13A/2, Dewas Industrial Area ,Office premies of M-91-92 Trade Center, 18 South Tukoganj Indore and Office premises at gold plaza, MG Road Indore.

2.Resident Plot no. 120 PLCC DLF Garden city Indore, 37 & 38 Megha Apartment , Ram Nagar, Annex ,Dewas , Residential Plot no. WB-93, Sector B, Scheme No. 94, IDA, Ring road Indore and Residential Plot No. 40 Ramanagar Annex, A.B road ,Dewas in the name of Rajkumar Gupta (Director),

3. Residential House A-7, Mangal Murti Nagar, Navlakha Main Road Indore in the name of Mrs. Uma Gupta,

4. Residential House WA-12, Sector A, Scheme No. 94, Ring Road Indore in the name of Ms. Shraddha Gupta and

5. Pledge of 10 Lacs Equity shares of promoters having market value of Rs. 2.12 crore as on 24.07.2017

Working Capital Loans from Union Bank of India Rs. Nil (Pre.Year Rs.14,76,97,680/-) are secured by :

Secured by hypothecation of Inventories & Book debts. Also Secured by personal guarantee of Directors of the company.

Working Capital Loans from Punjab National Bank Rs. Nil (Pre.Year Rs.3,94,45,904/-) are secured by :

Secured by pledge of Warehouse Receipts of the agriculture commodities and fertilizers which have been stored or may be stored with the Central/State Warehousing Corporation. Also Secured by personal guarantee of Directors of the company.

Short term borrowings aggregating to Rs. 17,13,13,005 (Pre. Year Rs.18,71,43,584/-) is personally guaranteed by directors.

II Unsecured loan is Over Draft against LC Bills from Union Bank of India, Siyaganj, Indore.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. The company is mainly engaged in the business of Manufacturing and trading of Fertilizers. This is the only product in which company is dealing and Company’s all business located in India, hence disclosure as per AS 17 - Segment Reporting is not required.

4. Leases (Where company is Lessee)

The Company lias taken various premises under operating leases with no restrictions and are renewable / cancellable at the option of either parties. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 39,92,433 (Pre. Year Rs. 41,49,827). The company has not recognized any contingent rent as expense in the statement of profit and loss.

5. Disclosure as required under section 186 (4) of the Companies Act, 2013 the following are the details thereof:

Investments made are classified under respective heads and are utilized for the purposes as mentioned in their object clause.

6. Previous year’s figures are regrouped or re arranged wherever considered necessary to make them comparable with current year’s figures.