అకౌంట్స్ గమనికలుBhaskar Agrochemicals Ltd.

Mar 31, 2025

2.15 Provisions and Contingencies

a) A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance cost.

b) A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but will probably not, require an outflow of resources. When there is a possible obligation of a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision disclosure is made.
Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable.

2.16 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 an expense 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 relates to an asset, it is recognised as income in equal amounts over the expected useful life of
the related asset.

2.17 Earnings per Shares

Basic EPS is calculated by dividing the net profit or loss before OCI for the year by the weighted average number
of equity share outstanding during the year. For the purpose of calculating diluted EPS the net profit or loss for the
year attributable to equity shareholders and the weighted average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares

2.18 Operating Cycles

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash
equivalents. Based on the nature of products/ activities of the Company, the management has determined its operating
cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.19 Financial Instruments

a) Financial Assets

i) Recognition and initial measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the
instruments. Financial assets other than trade receivables are initially recognised at fair value through profit and
loss. Financial assets are carried at fair value through profit or loss are initially recognised at fair value, and
transaction costs are expensed in the statement of profit and loss. However, Trade receivables that do not
contain a significant financing component are measured at transaction price.

ii) Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in four categories:

Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recignised in
the statement of profit and loss. Any gain or loss on derecognition is recognised in the statement of profit and loss.
Financial assets at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value. Interest income under the effective interest method,
foreign exchange gains and losses and impairment are recognised in the statement of profit and loss. Other net
gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified
to the statement of profit and loss.

Financial assets at fair value through profit (FVTPL)

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend
income, are recognised in the statement of profit and loss.

Financial instruments measured at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value. Dividends are recognised as income in the statement of
profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in OCI and are not reclassified to the statement of profit and loss.

iii) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially
all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance
sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred
assets are not derecognised.

iv) 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:

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

- Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather,it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

b) Financial Liabilities

i) Recognition and initial measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of
the instrument. A financial liability is initially measured at fair value, in case of financial liability which are recognised
at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and
loss. In other cases, the transaction costs are attributed to the issue of a financial liability.

ii) Subsequent measurement

Financial liabilities are classified and measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognised in the statement of profit and loss. Other financial liabilities are subsequently measured at amortised
cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised
in the statement of profit and loss. Any gain or loss on derecognition is also recognised in the statement of profit
and loss.

iii) Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or
expire. The Company also derecognises a financial liability when its terms are modified and the cash flows under
the modified terms are substantially different. In this case, a new financial liability based on the modified terms is
recognised at fair value. The difference between the carrying amount of the financial liability is extinguished and
the new financial liability with modified terms is recognised in the statement of profit and loss.

iv) Setting off financial instruments

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

c) Derivative Financial Instruments

The Company uses derivative financial instruments, such as forward currency contracts to hedge its interest rate
risk. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value at each reporting period. Any changes
therein are generally recognised in the profit and loss account.

2.20 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.

2.21 Material accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, 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 years.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end 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.

Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the
amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating
units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty
relates to assumptions about future operating results and the determination of a suitable discount rate.
Defined benefit plans (gratuity benefits)

The cost of the defined benefit plans such as gratuity is 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 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 year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market
yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary
increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis.

2.22 Segment reporting

Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision
Maker evaluates the Company''s performance and allocates the resources based on an analysis of various
performance indicators by business segments. Inter segment sales and transfers are reflected at market prices.
Unallocable items includes general corporate income and expense items which are not allocated to any business segment.
Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the Company as a whole. Common allocable costs are allocated to
each segment on an appropriate basis.

2.23 Standards that became effective during the year

Ministry of corporate Affairs (MCA) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting standards) Rules as issued from time to time. For the year ended March 31 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the company.

2.24 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest thousand as per
requirement of Schedule III of the Act, unless otherwise stated.

2.25 Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the
balance sheet date of material size or nature are only disclosed.

13.3.1. As per records of the Company, including its register of shareholders/members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships
of shares.

13.4 During the year, the Company has received an amount of Rs.174.00 Thousands towards the allotment money on
partly paid equity shares issued earlier. Upon receipt of the allotment money, these shares have been fully paid-up and
rank pari-passu with the existing fully paid equity shares in all respects from the date of such receipt.

13.5 The Company has not allotted any equity shares as fully paid up without being received in cash or as bonus
shares or bought back any equity shares during the period of five years immediately preceding the current year end

14.1 Nature and purpose of reserves
Capital Reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.
Security Premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the
provisions of the Companies Act, 2013.

General Reserve

General reserve is created at the time of creating the deferred tax assets arising out of the timing difference of the
earlier year as per the transitional provisions of the Ind AS
Retained Earnings

Retained earnings represent the amount of accumulated earnings of the Company.

Other Comprehensive Income

Other Comprehancive Income include remeasurement of net defined benefit liability / asset through other comprehensive
income.

15.1 Note on preference share

In accordance with Ind AS 32 - Financial Instruments, the preference shares are classified as a financial liability
due to their contractual obligation to deliver cash (on redemption). The redemption has been accounted for by
derecognising the liability component corresponding to the redeemed shares, with the difference between the
carrying amount and the redemption amount recognised in the Statement of Profit and Loss under finance costs.

During the year ended 31.03.2025, As per the approval of the board the Company has redeemed 185,000 non¬
convertible preference shares of face value Rs.100 each at the rate of Rs. 100/- as per the valuation report given
by the approved valuer, amounting to Rs.18500 Thousand, out of the total 325,000 NCPS issued and outstanding
as at the beginning of the financial year. The redemption was carried out in accordance with the terms and
conditions approved by the shareholders at the time of issuence of preference shares and in compliance with the
provisions of the Companies Act, 2013, and applicable SEBI regulations.

(B) Defined Benefit Plans
44(B)(1) Gratuity

Gratuity: The Company provides for gratuity, a defined benefit plan (the ''Gratuity Plan”) covering eligible employees
in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective
employee''s salary. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at
the end of each year. Actuarial losses/gains are recognized in the other comprehensive income in the year in
which they arise.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability.
Gains and losses through re-measurements of the net defined benefit liability/(asset)are recognized in other
comprehensive income and are not reclassified to profit or loss in subsequent periods.The actual return of the
portfolio of plan assets,in excess of the yields computed by applying the discount rate used to measure the defined
benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized
in net profit in the Statement of Profit and Loss.

47. RISK MANAGEMENT

Financial Risk Management objectives & Policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies.

The Company''s activity expose it to market risk, commodity risk and credit risk. In order to minimise any adverse
effects on the financial performance of the Company.

The Company''s financial risk management policy is set by the Managing Director and governed by overall direction of
Board of Directors of the Company.

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 a financial instrument may change as a result of changes in the interest
rate, 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 investments and
deposits, foreign currency receivable, payables and loan and borrowings.

47.1 Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assess financial reliability of customers, taking into account the financial
conditions, current economic trends, and analysys of historical bad debts and ageing of accounts receivable. Individual
risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period.

To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on
asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and
supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to
meet its obligations

iv) Significant increase in credit risk on other financial instruments of the same counterparty.

The company catogarises financial assets based on the assumptions, inputs and factors specific to the class of
financial assets into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate
credit risk; Substandard assets, relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets,
credit-impaired.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. The Company categorises a loan or receivable for write off when a
debtor fails to make contractual payments greater than one year past due. Where loans or receivables have been
written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognized in profit or loss.

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be
predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced
credit judgement.
b) Cash and Cash Equivalents

The Company held cash and cash equivalents of Rs. 986.03 thousand at March 31,2025 (March 31,2024: Rs. 891.20
thousand) This includes the cash and cash equivalents held with the bank and cash on hand with the company.

47.2 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company has obtained fund and non-fund based working capital loan from bank. The borrowed funds are generally
applied for companys own operational activities.

Exposure to liquidity risk:

b) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is
the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. The
company''s exposure to the risk of changes in the market interest rate relates primarily to the company''s long term debt
obligations with floating interest rates.

The company''s interest rate exposure is mainly related to variable interest rates debt obligations. The Company manages
the liquidity and fund requiremens for its day to day operations like working capital, suppliers/buyers credit.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest
rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management
of the Company is as follows.

47.3 a) Market Risk

Market risk is the possibilty of losses that may be incurred by the company due to factors that affect the overall
performance of the company - such as foreign exchange rates, interest rates, recessions etc. Market risk is
attributable to all market risk sensitive financial instruments including foreign currency receivables and payables
and long term debt. We are exposed to market risk primarily due to the fluctuations in the rate of interest for
borrowings from banks, recession in the market, foreign exchange rate fluctuation etc.

b) Currency Risk

The company deals in domestic market in the functional currency and does not have any exposure in foreign
currency in operating activities and borrowings.

c) Exposure to currency risk

The currency profile of financial assets and financial liabilities as at March 31, 2025 & March 31, 2024 are in
Indian Rupees is NIL.

48. CAPITAL RISK MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves.
The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company
manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants.

The Company monitors capital using adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as
total debt less cash and bank balances.

51 Wilful Defaulter

The Company has not defaulted in servicing the debt availed from banks, financial Institutions or any other lender
and is therefore not a defaulter or wilful defaulter as defined by RBI Circular.

52 Compliance with number of layers of companies :

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017.

53 Complaince with approved schemes

The Company has not entered into a scheme of arrangement during the year and previous year.

54 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been
surrendered or disclosed as income during the current year as well as in the previous 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.

55 Details of Crypto Currency or Virtual Currency

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

56 Utilisation of Borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) out of its borrowed funds or share premium or any other source with the
understanding that the Intermediary shall:

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

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

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

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

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

57 The Company has not extended any loans or advances in the nature of loans to its promoters, directors, key
managerial personnel and its related parties, as defined under the Act, during the years ended 31 March 2025 and
31 March 2024.

58 The Code on Social Security 2020

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post¬
employment, has received Presidential assent on September 28, 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 November
13, 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 are published.

59 Figures of the Previous year are regrouped / reclassified wherever considered necessary and rounded off to the
nearest thousand.

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

for R Kankaria & Uttam Singhi BHASKAR AGROCHEMICALS LIMITED

Chartered Accountants

^{ICAI Firm Regi}'' ^No- ^000442S/ICAI P. PRAVEEN KUMAR P. PATTABHI RAMA RAO

Rajendra Kankaria Joint Managing Director & CFO Chairman & Managing Director

^Partner DIN : 00353720 DIN : 00353641

Membership No. : 022051/ICAI

CHETNA TIWARI

Place : Hyderabad Company Secretary

Date : 26.05.2025 ICSI MRN : 59205

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Mar 31, 2024

2.15 Provisions and Contingencies

a) A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

b) A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the likelihood of outflow of resources is remote, no provision disclosure is made. Contingent assets are not disclosed in the financial statements unless an inflow of economic benefits is probable.

2.16 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 an expense 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 relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

2.17 Earnings per Shares

Basic EPS is calculated by dividing the net profit or loss before OCI for the year by the weighted average number of equity share outstanding during the year. For the purpose of calculating diluted EPS the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares

2.18 Operating Cycles

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on the nature of products/ activities of the Company, the management has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.19 Financial Instruments

a) Financial Assets

i) Recognition and initial measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognised at fair value through profit and loss. Financial assets are carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the statement of profit and loss. However, Trade receivables that do not contain a significant financing component are measured at transaction price.

ii) Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in four categories:

Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recignised in the statement of profit and loss. Any gain or loss on derecognition is recognised in the statement of profit and loss. Financial assets at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in the statement of profit and loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to the statement of profit and loss.

Financial assets at fair value through profit (FVTPL)

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in the statement of profit and loss.

Financial instruments measured at fair value through other comprehensive income (FVTOCI)

These assets are subsequently measured at fair value. Dividends are recognised as income in the statement of profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to the statement of profit and loss.

iii) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

iv) 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:

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

- Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather,it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

b) Financial Liabilities

i) Recognition and initial measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial liability is initially measured at fair value, in case of financial liability which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction costs are attributed to the issue of a financial liability.

ii) Subsequent measurement

Financial liabilities are classified and measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the statement of profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the statement of profit and loss. Any gain or loss on derecognition is also recognised in the statement of profit and loss.

iii) Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability is extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.

iv) Setting off financial instruments

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

c) Derivative Financial Instruments The Company uses derivative financial instruments, such as forward currency contracts to hedge its interest rate risk. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at each reporting period. Any changes therein are generally recognised in the profit and loss account.

2.20 Contributed equity

Equity shares are classified as equity share capital.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.21 Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, 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 years. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end 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.

Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit plans such as gratuity is 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 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 year end.

The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

2.22 Segment reporting

Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices. Unallocable items includes general corporate income and expense items which are not allocated to any business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. Common allocable costs are allocated to each segment on an appropriate basis.

2.23 Standards that became effective during the year

Ministry of corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies (Indian Accounting standards) Rules as issued from time to time. For the year ended March 31 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.

2.24 Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest thousand as per requirement of Schedule III of the Act, unless otherwise stated.

2.25 Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

35 EARNINGS PER SHARES

35.1 Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

35.2 Diluted earnings /(loss) per share amounts are calculated by dividing the profit/loss attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Terms and conditions of transactions with related parties:

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. No balances in respect of the related parties has been provided for written off / written back.

47 Fair values of financial assets and financial liabilities

The fair value of other current financial assets, cash and cash equivalents, trade receivables investments, trade payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security deposits are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other financial assets.

Non-current borrowing comprises term loan from the banks. The impact of fair value on such portion is not material and therefore not considered for above disclosure.

Dealership Deposits received from individual customers is not material, hence the impact of fair value on such deposit is not considered for above disclosure.

Non-current borrowings comprises of Inter corporate borrowing has been valued at amortised cost using Effective Interest Rate (EIR).

48. RISK MANAGEMENT

Financial Risk Management objectives & Policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies.

The Company''s activity expose it to market risk, commodity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company.

The Company''s financial risk management policy is set by the Managing Director and governed by overall direction of Board of Directors of the Company.

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 a financial instrument may change as a result of changes in the interest rate, 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 investments and deposits, foreign currency receivable, payables and loan and borrowings.

48.1 Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial conditions, current economic trends, and analysys of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period.

To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations

iv) Significant increase in credit risk on other financial instruments of the same counterparty.

The company catogarises financial assets based on the assumptions, inputs and factors specific to the class of financial assets into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate credit risk; Substandard assets, relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets, credit-impaired.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater than one year past due. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

48.2 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has obtained fund and non-fund based working capital loan from bank. The borrowed funds are generally applied for companys own operational activities. Exposure to liquidity risk:

b) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. The company''s exposure to the risk of changes in the market interest rate relates primarily to the company''s long term debt obligations with floating interest rates.

The company''s interest rate exposure is mainly related to variable interest rates debt obligations. The Company manages the liquidity and fund requiremens for its day to day operations like working capital, suppliers/buyers credit.

48.3 a) Market Risk

Market risk is the possibilty of losses that may be incurred by the company due to factors that affect the overall performance of the company - such as foreign exchange rates, interest rates, recessions etc. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily due to the fluctuations in the rate of interest for borrowings from banks, recession in the market, foreign exchange rate fluctuation etc.

b) Currency Risk

The company deals in domestic market in the functional currency and does not have any exposure in foreign currency in operating activities and borrowings.

c) Exposure to currency risk

The currency profile of financial assets and financial liabilities as at March 31, 2024 & March 31, 2023 are in Indian Rupees is NIL.

49. CAPITAL RISK MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

50 The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

51 Wilful Defaulter

The Company has not defaulted in servicing the debt availed from banks, financial Institutions or any other lender and is therefore not a defaulter or wilful defaulter as defined by RBI Circular.

52 Compliance with number of layers of companies :

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

53 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the current year as well as in the previous 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.

54 Details of Crypto Currency or Virtual Currency

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

55 Utilisation of Borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) out of its borrowed funds or share premium or any other source with the understanding that the Intermediary shall:

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

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

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

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

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

56 The Company has not extended any loans or advances in the nature of loans to its promoters, directors, key managerial personnel and its related parties, as defined under the Act, during the years ended 31 March 2024 and 31 March 2023.

57 The Code on Social Security 2020

The Code on Social Security 2020 (‘the Code’) relating to employee benefits, during the employment and post-employment,has received Presidential assent on September 28, 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 November 13, 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 are published.

58 Figures of the Previous year are regrouped / reclassified wherever considered necessary and rounded off to the nearest thousand.

As p^{er our} r^ep°rt ^{of even date attached}. For _and on behalf of the Board

for R Katana & ^{Uttam Singhi} BHASKAR AGROCHEMICALS LIMITED

Chartered Accountants

ICAI Firm Regi. No. 000442S/ICAI

_{i i} P. PRAVEEN KUMAR P. PATTABHI RAMA RAO

Ke _r^{Kumar Singhi} Whole Time Director & CFO Managing Director

Membership No. : 027481/ICAI DIN : 00353720 DIN : 00353641

CHETNA TIWARI

^{Place : Hy}d^erabad Company Secretary

^{Date : 3}°.°⁵.²⁰²⁴ ICSI MRN : 59205

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Mar 31, 2000

Debentures :

Interest accrued and due

- 18% 300,000 Secured Redeemable Non-Convertible Debentures of Rs. 100 each. Redeemable 4 equal annual instalments commencing from 28-03-2002 i.e, on expiry of 4th year from the date of allotment. (Privately placed with Financial Institution) Secured by equitable mortgage by deposit of title deeds relating to the company's immovable properties situated at company's technical plant and further excluding those hypothecated in favour of banks for securing working capital facilities, ranking paripassu with the term loan from financial institutions.

Term Loans :

- From Financial Institutions

Interest accrued and due

Secured by equitable mortgage by deposit of title deeds relating to the company's immovable properties situated at company's technical plant and further hypothecation of movable properties, present and future excluding those hypothecated in favour of Banks for securing working capital facilities.

- From others

Interest accured and due

Secured by equitable mortgage by deposit of title deeds relating to the staff quarters and land appurtenant thereto.

Other than Term Loans :

- From others

Secured by equitable mortgage by deposit of title deeds relating to the land belonging to other company and personnel properties of some of the directors.

Cash Credits - From Banks

Secured by equitable mortgage by deposit of title deeds relating to company's immovable properties situated at company's formulation plant and further hypothecation of plant and machinery thereat and by a second charge by way of hypothecation of plant and machinery at Company's technical plant and further hypothecation of inventories and book debts.

Hire Purchase - From others

Secured by way of hypothecation of specific plant and machinery and vehicles

The above Loans are Guaranteed by some of the Directors of the Company.

3. Pursuant to resolution of the members of the company, passed at the Annual General Meeting held on Monday, the 29th September 1997, the Authorised Share Capital of the company has been altered and increased from Rs. 6,00,00,000 (Rupees Six Hundred Lakhs) divided into 60,00,000 (Sixty Lakhs) Equity Shares Rs. 10 (Rupees Ten only) each to Rs. 8,00,00,000 (Rupees Eighty Hundred Lakhs) divided into 80,00,000 (Eighty Lakhs) Equity Shares of Rs. 10 (Rupees Ten only). However, Under Schedule I, the Authorised Share Capital is stated at the level prior to the increase, pending completion of other procedures under the Companies Act, 1956.

4. State Subsidy of Rs. 16,61,760 (1999 : Rs. 16,61,760) included under Capital Reserve is refundable in the event of non compliance of certain conditions attached to the grant of the subsidy.

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Mar 31, 1996

The excise duty payable on finished goods is accounted for on clearance of goods from the factory. The amount of excise duty payable on stock in trade not cleared from factory as at 31.3.96 is estimated at Rs.2,384,772/-(1995 Rs.141,136). However, non accounting of the excise duty will not affect the profit for the year.

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Mar 31, 1995

5. The excise duty payable on finished goods is accounted for on clearance of goods from the factory. The amount of excise duty payable on stock in trade not cleared from factory as at 31.3.1995 is estimated at Rs. 141136/- (1994 Rs. Nil). However, non accounting of the excerciseduty will not effect the profit for the year.

7. Information with regard to other maters specified in Clauses 3, 4C & 4D of Part II of Schedule VI to the Companies Act, 1956 to the extent that they are either NIL or Not Applicable to the company has not been given.

8. Comparative figures of the previous year, where necessary have been regrouped to confirm with those of the current years.

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Mar 31, 1994

No significant notes to accounts.

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Mar 31, 1993

Not available.