అకౌంట్స్ గమనికలుChemplast Sanmar Ltd.

Mar 31, 2025

3.15 Provisions and Contingencies

Provisions are recognised when the Company has a
present obligation as a result of past events, and it is
probable that an outflow of resources will be required
to settle the obligation and a reliable estimate of the
amount of the obligation can be made.

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

Contingent liabilities are disclosed when there is
a possible obligation arising from past events,

the existence of which 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 or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

3.16 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.
When loans or similar assistance are provided by
Governments or related institutions, with an interest
rate below the current applicable market rate, the effect
of this favourable interest is regarded as a Government
grant. The loan or assistance is initially recognised and
measured at fair value and the Government grant is
measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan
is subsequently measured as per the accounting
policy applicable to financial liabilities.

3.17 Borrowing Costs

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

3.18 Impairment of Non-Financial Assets

The Company assesses, at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an
asset’s or Cash-Generating Unit’s (CGU) fair value less
costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are

largely independent of those from other assets or
Company’s assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to
its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time
value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent
market transactions are taken into account. If no
such transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share
prices for publicly traded companies or other available
fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company’s CGUs
to which the individual assets are allocated. These
budgets and forecast calculations generally cover a
period of five years. For longer periods, a long-term
growth rate is calculated and applied to projected
future cash flows after the fifth year. To estimate cash
flow projections beyond periods covered by the most
recent budgets / forecasts, the Company extrapolates
cash flow projections in the budget using a steady or
declining growth rate for subsequent years, unless
an increasing rate can be justified. In any case, this
growth rate does not exceed the long-term average
growth rate for the products, industries, or country
or countries in which the entity operates, or for the
market in which the asset is used.

3.19 Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity share holder
of the Company by the weighted average number of
equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity
share to the extent that they are entitled to participate
in dividends relative to a fully paid equity share during
the reporting period. The weighted average number
of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus
element in a rights issue, share split and reverse share
split (consolidation of shares) that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

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

3.20 Recent Accounting Pronouncements

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. As on date of this
financial statements, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.

Reconciliation of tax expense and accounting profit multiplied by India''s domestic tax rate for March 31, 2025

During the financial year 2024-25, the Company opted to exercise the provision under Section 115BAA of the Income Tax
Act, 1961, effective from 2023-24. Consequently, the Deferred Tax Liability (net) as of March 31,2024, along with the tax
expense for 2024-25, was remeasured at a lower tax rate. Furthermore, following the amendment in tax rates affecting
certain assets with long-term capital gains, as introduced in the Finance Act, 2024, the Company reassessed its deferred
tax liabilities related to the revaluation of land. The cumulative impact of these adjustments resulted in the reversal of
deferred tax liability, which is recognised in the statement of profit and loss and other comprehensive income, amounting
to '' 18.41 Crores and '' 135.09 Crores, respectively.

The tax on the Company’s profit before tax differs from the theoretical amount that would arise using the standard rate of
corporation tax in India (25.168%) as follows:

| 13 Earnings Per Share [EPS]:

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted
average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest
on the convertible preference shares, if any) 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.

Significant Observable and Unobservable Valuation Inputs:

The value of freehold land was determined based on condition, location, demand, supply, plant-layout and other
infrastructure facility available at and around the said plot of land.

Right-of-use of leasehold land which was based on government promoted industrial estates, was measured on the
present fair market value depending on the condition of the said estates, its location and availability of such plots in the
said industrial estate.

The valuation of buildings and plant and equipment was based on its present fair market value after allowing for the
depreciation of the particular assets, as well as the present condition of the assets (Depreciated Replacement Cost
method). The replacement value of the said assets as well as its maintenance up-keep is considered while working out
its present fair value.

A) Summary of borrowing arrangements
Term loan from bank

a) Term loan from bank amounting to '' 133.75 Crores (March 31,2024: '' 138.66 Crores) is secured by first pari
passu charge over entire moveable property, plant and equipment of the Company.

b) Term loan from bank amounting to '' 225.48 Crores (March 31,2024: '' 233.49 Crores) is secured by first pari
passu charge over entire moveable property, plant and equipment of the Company.

c) Term loan from bank amounting to '' 93.41 Crores (March 31,2024: '' 95.23 Crores) is secured by first pari passu
charge over entire moveable property, plant and equipment of the Company.

d) Term loan from bank amounting to '' 170.10 Crores (March 31, 2024: '' 74.89 Crores) is secured by first pari
passu charge over entire moveable property, plant and equipment of the Company.

e) Vehicle loan from bank amounting to '' 0.30 Crores (March 31,2024: '' 0.36 Crores) is secured by hypothecation
of the vehicle purchased out of the loan financed.

f) Term loan from bank amounting to '' 19.31 Crores (March 31,2024: Nil) is secured by exclusive charge on ship.

g) Term loan from bank amounting to '' 14.86 Crores (March 31,2024: Nil) is secured by first pari passu charge on
entire Movable fixed assets of the Company.

Repayment of loans

(a) Repayment of term loan amounting to '' 133.75 Crores in 25 structured quarterly installments, commencing
from March 2024.

Note: Current interest rate of the above term loan is 8.05% (March 31,2024: 8.61%).

(b) Repayment of term loan amounting to '' 225.48 Crores in 25 structured quarterly installments, commencing
from September 2024.

Note: Current interest rate of the above term loan is 9.50% (March 31,2024: 9.15%).

(c) Repayment of term loan amounting to '' 93.40 Crores in 25 structured quarterly installments, commencing from
October 2024.

Note: Current interest rate of the above term loan is 8.94% (March 31,2024: 9.44%).

(d) Repayment of term loan amounting to '' 170.12 Crores in 25 structured quarterly installments, commencing
from September 2025.

Note: Current interest rate of the above term loan is 9.65% (March 31,2024: 9.30%).

(e) Repayment of Vehicle loan amounting to '' 0.30 Crores in 60 structured quarterly installments, commencing
from January 2024.

Note: Current interest rate of the above term loan is 8.85% (March 31,2024: 8.85%).

| 36 Financial instruments

36.1 Capital management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return
to shareholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of debt, which includes the borrowings (Note 26 and 30), cash and cash
equivalents (Note 20) and equity attributable to equity holders of the Company, comprising issued capital, securities
premium and retained earnings.

Gearing ratio

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. The
gearing ratios at March 31,2025 and March 31,2024 were as follows:

36.3 Financial risk management objectives

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal
financial assets trade and other receivables, cash and cash equivalents and other bank balances that derive directly from
its operations.

The Company’s activities expose it primarily to fluctuations in foreign currency exchange rates, interest rates, liquidity and
credit risk.

The Company has a risk management policy which not only covers the foreign exchange risks but also other risks
associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy
is approved by the board of directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on
the Company’s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.
There has been no change to the Company’s exposure to market risk or the manner in which these risks are managed
and measured.

36.4 Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in 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 rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future
specific market movements cannot be normally predicted with reasonable accuracy.

36.5 Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate
fluctuations arise. The currencies, in which these transactions primarily are denominated in American Dollars (USD) and
EURO. The Company may use forward exchange contract towards hedging risk resulting from changes and fluctuations
in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities
depending upon the primary host contract requirement and risk management strategy of the Company. Exchange rate
exposures are managed with in approved policy parameters.

36.6 Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument 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 Company’s long-term debt obligations with floating interest rates. It also uses sensitive financial instruments to
manage the liquidity and fund requirements for its day to day operations like short-term loans.

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments
at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting year was outstanding for the whole year. A 100 basis point increase or decrease is
used when reporting interest rate risk internally to key management personnel and represents management’s assessment
of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company’s profit
/ (loss) would increase or decrease as below:

36.7 Credit risk management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
Risk control assesses the credit quality of the customer, taking into account its financial position, past experience,
other publicly available financial information, its own trading records and other factors, where appropriate, as means of
mitigating the risk of financial loss from defaults. The Company’s exposure is continuously monitored and the aggregate
value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across various industries and geographical areas.

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents
the Company’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

None of the Company’s cash and cash equivalents, including time deposits with banks, trade receivables and other
receivables, and other loans or receivables have an expected credit loss as at March 31,2025.

36.7.1 Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and controls relating to customer
credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective
industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit
risk as the customer base is widely distributed economically.

36.7.2 Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company’s treasury in accordance with the Board approved policy.
Investments of surplus funds, temporarily, are made only with approved counterparties who meet the minimum threshold
requirements under the counterparty risk assessment process.

36.8 Liquidity risk management

The Company has built an appropriate liquidity risk management framework for the management of the Company’s
short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities.

The following table details the Company’s remaining contractual maturity for their financial liabilities. The contractual
maturities of the financial instruments have been determined on the basis of earliest date on which the Company can be
required to pay.

36.9 Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair

value, compiled into Level 1 to Level 3, as described below:

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).

i. The management assessed that cash and cash equivalents, short-term investments, trade receivables, trade
payables, other current financial liabilities approximate their carrying amounts largely due to their short-term
nature.

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

iii. Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the
anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining
maturities.

(II) Guarantees provided

The Company has provided corporate guarantee to State Industries Promotion Council of Tamil Nadu for '' 331.86
Crores towards the outstanding soft loan of '' 100.26 Crores (March 31, 2024: '' 156.48 Crores) availed by the
Subsidiary Company, Chemplast Cuddalore Vinyls Limited.

| 40 Segment reporting

The Company’s operations predominantly relate to manufacture and sales of Speciality Chemicals. The Board of Directors
of the Company who have been identified as the Chief Operating Decision Maker (CODM), evaluates the Company’s
performance, allocate resources based on the analysis of the various performance indicators of the Company as a single
unit. Therefore, there is no separate reportable segment for the Company as per the requirement of Ind AS 108 "Operating
Segments". The Company’s operations are predominantly conducted in India and accordingly, there are no separate
reportable geographic segment.

The Company’s revenue from one customer contributing to more than 10% amounts to '' 263.25 Crores (Previous year
two customers contributing to more than 10% amounted to '' 411.78 Crores).

| 45 Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company
for holding any Benami property.

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

(iii) 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.

(iv) 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 assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

| 46 Employee benefit cost
Defined benefit plans

Gratuity:

This is a defined benefit plan and the Company’s Scheme is administered by Life Insurance Corporation of India (LIC).
The liability is determined based on the actuarial valuation using projected unit credit method as at Balance Sheet date.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out
at March 31,2025 by an independent actuary.

a. Judgements

In the process of applying the Company’s accounting policies, management has not made any judgements, which
have significant effect on the amounts recognised in the financial statements.

b. Estimates and assumptions

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

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets
or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based
on a Discounted Cash Flow (DCF) model.

Taxes

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

Defined benefit plans

The cost of the defined benefit gratuity plan is determined using actuarial valuation. 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 reporting date.

Further details about defined benefit obligations are given in Note 46.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF
model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value
of financial instruments. See Note 36 for further disclosures.

Fair value measurement of property, plant and equipments

The Company measures land, buildings, plant and machinery classified as property, plant and equipment at revalued
amounts with increase in fair value being recognised in OCI. The Company had engaged independent valuation
specialists to assess fair value for revaluation of land, buildings, plant and equipment as at November 30, 2024. Fair
value of land was determined by using the market approach, hypothetical layout method and building and plant and
equipment was determined by using Depreciated Replacement Cost (DRC) method. The key assumptions used to
determine fair value of the property, plant and equipment are provided in Note 14.4.

Revenue from contract with customers

The Company estimates variable considerations to be included in the transaction price for the sale of goods and
volume rebates. The Company’s expected rebates and discounts are analysed on a per customer basis for contracts
that are subject to the applicable thresholds. Determining whether a customer will be likely entitled to rebate and
discounts will depend on the customer’s rebates entitlement and total purchases to date.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its Incremental
Borrowing Rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay
to for its borrowings.

Useful life of PPE

Estimated useful life of certain items of PPE are based on economic life of these assets as estimated by the
management basis a technical assessment and usage and replacement policy of such assets. The residual values,
useful lives and methods of depreciation of PPE are reviewed at each financial year end and adjusted prospectively,
if appropriate.

| 52 Employees'' benefits obligations

a. Defined contribution plan

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the
Company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered
employees’ salary. The Company recognises contribution payable to the provident fund scheme as an expenditure,
when an employee renders the related service. The Company has no further obligations under the plan beyond its
monthly contributions.

b. Defined benefit plan
Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of
service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a
qualifying insurance policy. Fund is maintained with Life Insurance Corporation of India.

As per our report of even date attached

for B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Chemplast Sanmar Limited

Firm Registration Number: 101248W/W-
100022

S Sethuraman Vijay Sankar Ramkumar Shankar Sanjay Vijay Bhandarkar

Partner Chairman Managing Director Chairman - Audit Committee

Membership No. 203491 DIN: 00007875 DIN: 00018391 DIN: 01260274

Place: Chennai Place: Chennai Place: Chennai Place: Mumbai

Date: May 13, 2025

N Muralidharan M Raman

Chief Financial Officer Company Secretary

Place: Chennai Membership No ACS 06248

Date: May 13, 2025 Place: Chennai

---

Mar 31, 2024

Q3I Earnings per share [EPS]:

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares, if any) 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.

14.4 Revaluation of property, plant and equipment

Fair value of property, plant and equipment was determined by using the market value method, hypothetical layout method for freehold land and depreciable replacement cost method (DRC) for Buildings and Plant and Equipment. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific property. As at the date of latest revaluation on January 1,2022, the properties’ fair values are based on valuations performed by RBSA Valuation Advisors LLP and N.Ayyapan (for land), who are both Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Significant Observable and unobservable Valuation Inputs :

The value of Freehold land was determined based on condition, location, demand, supply, plant-layout and other infrastructure facility available at and around the said plot of land.

Right of use of leasehold land which was based on government promoted industrial estates, was measured on the present fair market value depending on the condition of the said estates, its location and availability of such plots in the said industrial estate.

The valuation of buildings and plant and equipment was based on its present fair market value after allowing for the depreciation of the particular assets, as well as the present condition of the assets (depreciated replacement cost method). The replacement value of the said assets as well as its maintenance up-keep is considered while working out its present fair value.

Note (2) Exceptional item -

During the previous year, the Zero COVID policy in China and the resultant COVID related shutdown there, had resulted in a sharp contraction of demand for PVC resin in that country. On account of this, there was a spike in exports of PVC resin from China, leading to a steep fall in finished products prices in India as well as feedstock prices. In line with generally accepted accounting principles, the Company had written down the carrying value of stocks of major intermediates and finished products, to levels corresponding to the net realisable value of finished products, leading to an exceptional charge of '' 49.80 Crores during the previous year.

Shares Held by Holding company and its subsidiaries

Sanmar Holdings Limited and its nominees holds 8,69,45,065 equity shares (Previous Year 8,69,45,065 equity shares) Rights, Preferences and Restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of '' 5 per share (March 31,2023: '' 5 per share). Each share holder is eligible for one vote per share held. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves:Capital reserve

The Company recognises the difference between the net assets less reserves acquired or transferred by the Company and as reduced by the shares capital issued or received respectively, pursuant to a common control business combination is adjusted to capital reserve.

Capital redemption reserve:

The Company had created Capital redemption reserve in respect of redemption of preference shares in accordance with Companies Act, 2013.

Securities premium

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

Asset revaluation reserve:

The Company had recognised the surplus arising out of revaluation of property, plant and equipment to asset revaluation reserve in accordance with Ind-AS 16.

General reserve

General reserve is free reserve available for distribution as recommended by Board in accordance with requirements of the Companies Act, 2013.

A) Summary of borrowing arrangements

Term loan from bank

a) Term loan from bank amounting to '' 138.66 Crores (March 31, 2023: '' 77.53 Crores) is secured by first pari passu charge over moveable and immoveable property, plant and equipment of the Company.

b) Term loan from bank amounting to '' 233.49 Crores (March 31,2023: '' 109.56 Crores ) is secured by first pari passu charge over moveable and immoveable property, plant and equipment of the Company.

c) Term loan from bank amounting to '' 95.23 Crores (March 31, 2023: '' 19.75 Crores ) is secured by first pari passu charge over moveable and immoveable property, plant and equipment of the Company.

d) Term loan from bank amounting to '' 74.89 Crores (March 31,2023: Nil) is secured by first pari passu charge over moveable and immoveable property, plant and equipment of the Company.

e) Vehicle loan from bank amounting to '' 0.36 Crores (March 31,2023: Nil) is secured by hypothecation of the vehicle purchased out of the loan financed.

Repayment of loans

(a) Repayment of term loan amounting to '' 138.66 Crores in 25 structured quarterly installments, commencing from March 2024

Note: Current interest rate of the above term loan is 8.61% (March 31,2023: 8.71%)

(b) Repayment of term loan amounting to '' 233.49 Crores in 25 structured quarterly installments, commencing from September 2024

Note: Current interest rate of the above term loan is 9.15% (March 31,2023: 9.15%)

(c) Repayment of term loan amounting to '' 95.23 Crores in 25 structured quarterly installments, commencing from October 2024

Note: Current interest rate of the above term loan is 9.44% (March 31,2023: 9.38%)

(d) Repayment of term loan amounting to '' 74.89 Crores in 25 structured quarterly installments, commencing from November 2025

Note: Current interest rate of the above term loan is 9.30% (March 31,2023: NA)

(e) Repayment of Vehicle loan amounting to '' 0.36 Crores in 60 structured quarterly installments, commencing from January 2024

Note: Current interest rate of the above term loan is 8.85% (March 31,2023: NA)"

Security Particulars :

Working capital limits from banks are secured by a first pari passu charge on inventories and book debts and second pari passu charge on Property, Plant and Equipment of the Company (excluding specifically charged land and buildings).

The quarterly return submitted by the Company to its Bankers are in agreement with the books of accounts.

* General Terms: The average credit period varies for each product between 1 and 240 days. In general - No interest is charged for the initial period of 60 days. Thereafter interest / discounting charges is paid at LIBOR / SOFR Spread on the outstanding balance

* The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

* Includes dues for payment to Micro and Small enterprises '' 7.53 Crores (March 31,2023: '' 2.95 Crores) (Also refer note 42)

* Also Refer Note 50 for Trade payables ageing schedule

U Financial instruments36.1 Capital management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of debt, which includes the borrowings (Note 26 and 30), cash and cash equivalents (Note 20) and equity attributable to equity holders of the Company, comprising issued capital, securities premium, and retained earnings.

36.3 Financial risk management objectives

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

The Company’s activities expose it primarily to fluctuations in foreign currency exchange rates, interest rates, liquidity and credit risk.

The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company’s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

There has been no change to the Company’s exposure to market risk or the manner in which these risks are managed and measured.

36.4 Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in 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 rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

36.5 Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. The currencies, in which these transactions primarily are denominated in American Dollars (USD). The Company may use forward exchange contract towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities depending upon the primary host contract requirement and risk management strategy of the Company. Exchange rate exposures are managed with in approved policy parameters.

The Company imports Ethylene, Ethylene Dichloride (EDC), VCM for manufacture of PVC , Methanol for manufacture of Chloromethanes and coal for its Captive Power Plant.

A) Ethylene, EDC and VCM :

Prices of PVC manufactured by the Company are monitored by Company’s management and adjusted to respond to change in import parity price of PVC in Indian market. The prices of Ethylene/EDC/VCM (Input) and PVC (Output) generally move in the same direction thereby maintaining the margins more or less at the same levels over a period of time. Therefore, the Company is not significantly exposed to the variation in commodity prices over a period for the above products.

36.7 Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument 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 Company’s long-term debt obligations with floating interest rates. It also uses sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting year was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Risk control assesses the credit quality of the customer, taking into account its financial position, past experience, other publicly available financial information, its own trading records and other factors, where appropriate, as means of mitigating the risk of financial loss from defaults. The Company’s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across various industries and geographical areas.

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Company’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

None of the Company''s cash and cash equivalents, including time deposits with banks, trade receivables and other receivables, and other loans or receivables have an expected credit loss as at March 31,2024

36.8.1 Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed economically.

36.8.2 Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company’s treasury in accordance with the Board approved policy. Investments of surplus funds, temporarily, are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process.

36.9 Liquidity risk management

The Company has built an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair

value, Compiled into Level 1 to Level 3, as described below.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Derivative instruments classified under Level 2 are valued using the quotes obtained by aggregators based on deals entered between market participants. Investments in unquoted equity shares classified under Level 3 are valued using DCF method. Long-term growth rate and Weighted average cost of capital are significant unobservable inputs whose sensitivity does not significantly affect the carrying values of such investments.

(ii) Guarantees provided

The Company has provided corporate guarantee to State Industries Promotion Council of Tamil Nadu for '' 331.86 Crores towards the outstanding soft loan of '' 156.48 Crores (March 31,2023 : '' 107.66 Crores) availed by the subsidiary company, Chemplast Cuddalore Vinyls Limited.

H Segment Reporting

The Company’s operations predominantly relate to manufacture and sales of Specialty Chemicals. The Board of Directors of the Company who have been identified as the chief operating decision maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is no separate reportable segment for the Company as per the requirement of Ind-AS 108 "Operating Segments". The Company’s operations are predominantly conducted in India and accordingly, there are no separate reportable geographic segment.

The Company’s revenues from two customers contributing to more than 10% amounts to '' 411.78 Crores (There was no customer during the previous year contributing to more than 10%).

Contingent liabilities and Guarantees*
Particulars		As at	As at
		March 31, 2024	March 31, 2023
A.	Contingent Liabilities
	Claims against the Company not acknowledged as debts : On account of Direct Taxes	36.62	32.76
	On account of Indirect Taxes	22.41	22.81
On account of other disputes		16.02	16.43
B.	Guarantees
Corporate guarantee given to State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in respect of soft loan availed by Chemplast Cuddalore Vinyls Limited from SIPCOT		156.48	107.66
- (Total amount of the corporate guarantee given by Chemplast Sanmar Limited to SIPCOT for the soft loan facility is '' 331.86 Crores - Actual amount of the Loan drawn by CCVL against this facility is '' 156.48 Crores (Previous year '' 107.66 Crores)
Total		231.53	179.66

*The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals.

It is not practicable for the Company to estimate the timing of the cash flows, if any, in respect of above, pending resolution of the respective appellate proceedings with various forums / authorities.

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

Capital Commitments
Particulars	As at	As at
	March 31, 2024	March 31, 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	289.64	325.52
	289.64	325.52

£2! Dues to micro and small enterprises

As at March 31,2024, there is no interest paid or payable to Micro and Small Enterprises as defined under The Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Note 31 and 33 have been determined to the extent such parties have been identified on the basis of information available with the Company.

43.| The code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

The Company has expenditure towards Corporate Social Responsibility in excess of the prescribed limits for the year ended March 31, 2024 and the same is carried forward to the next year for utilisation as per applicable provisions of Companies Act, 2013.

£51 Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

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

(iii) 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,

(iv) 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 assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

|]6| Employee benefit cost

Defined benefit plans

Gratuity:

This is a defined benefit plan and the Company’s Scheme is administered by Life Insurance Corporation of India (LIC). The liability is determined based on the actuarial valuation using projected unit credit method as at Balance Sheet date.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at March 31,2024 by an independent actuary.

I. The entire plan assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC)

II. The expected / actual return on Plan assets is as furnished by LIC

III. The estimate of future salary increase takes in to account inflation, likely increments, promotions and other relevant factors.

The overall expected rate of return is a weighted average of the expected returns of the various categories of plan assets held. The directors’ assessment of the expected returns is based on historical return trends and analysts’ predictions of the market for the asset over the life of the related obligation.

The Company expects to make a contribution of '' 3.02 Crores to the defined benefit plans during the next financial year.

The table below outlines the effect on the service cost, the interest cost and the defined benefit obligation in the event of a decrease/increase of 1% in the assumed rate of discount rate and salary escalation:

1 Total Debt = Long term Borrowings (including current maturities of Long term Borrowings), lease liabilities (current and non-current), short term borrowings and Interest accrued on Debts

2 Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments like loss on sale of Fixed assets etc.

3 Debt service = Interest and Lease Payments Principal Repayments

4 Avg. Shareholder''s Equity = Average of Opening Total Equity and Closing Total Equity excluding revaluation reserve

5 Avg. Inventory = Average of Opening Inventory and Closing Inventory

6 Avg. Trade Receivable = Average of Opening Trade Receivables and Closing Trade Receivables

7 Avg. Trade Payables = Average of Opening Trade Payables and Closing Trade Payables

8 Working capital shall be calculated as current assets minus current liabilities (excluding current maturities of Iong term debt, lease liability and interest accrued on borrowings)

9 EBIT = Earning before interest and taxes

10 Capital Employed = Tangible Net Worth (excluding revaluation reserve) Total Debt Deferred Tax Liability

11 Average Total Assets = Average of Opening Total Assets and Closing Assets excluding revaluation impact

Significant accounting judgements, estimates and assumptions

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

a. Judgements

In the process of applying the Company’s accounting policies, management has not made any judgements, which have significant effect on the amounts recognised in the financial statements.

b. Estimates and assumptions

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

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model.

Taxes

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

Defined benefit plans

The cost of the defined benefit gratuity plan is determined using actuarial valuation. 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 longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Further details about defined benefit obligations are given in Note 46.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 36 for further disclosures.

Fair value measurement of property, plant and equipments

The Company measures land, buildings, plant and machinery classified as property, plant and equipment at revalued amounts with increase in fair value being recognised in OCI. The Company had engaged an independent valuation specialist to assess fair value for revaluation of land, buildings, plant and equipment as at January 01,2022. Fair value of land was determined by using the market approach, hypothetical layout method and building and plant and equipment was determined by using depreciated replacement cost (DRC) method. The key assumptions used to determine fair value of the property, plant and equipment are provided in Note 14.4.

Revenue from contract with customers

The Company estimates variable considerations to be included in the transaction price for the sale of goods and volume rebates. The Company’s expected rebates and discounts are analysed on a per customer basis for contracts that are subject to the applicable thresholds. Determining whether a customer will be likely entitled to rebate and discounts will depend on the customer’s rebates entitlement and total purchases to date.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to for its borrowings.

Useful life of PPE

Estimated useful life of certain items of PPE are based on economic life of these assets as estimated by the management basis a technical assessment and usage and replacement policy of such assets. The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.

J Employees'' benefits obligations

a. Defined contribution plan

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the Company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employees’ salary. The Company recognises contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. The Company has no further obligations under the plan beyond its monthly contributions.

b. Defined benefit plan Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy. Fund is maintained with Life Insurance Corporation of India.

J Previous year''s figures have been regrouped wherever necessary.

---

Mar 31, 2023

Revaluation of Property, Plant and Equipment

Fair value of property, plant and equipment was determined by using the market value method, hypothetical layout method for Freehold land and Depreciable Replacement Cost method (DRC) for Buildings and Plant & Equipment. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific property. As at the date of latest revaluation of 1 January 2022, the properties’ fair values are based on valuations performed by RBSA Valuation Advisors LLP & N.Ayyapan (for land), who are both Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Note (1) Exceptional item:

During the year, the Zero COVID policy in China and the resultant COVID related shutdown there, had resulted in a sharp contraction of demand for PVC resin in that country. On account of this, there was a spike in exports of PVC resin from China, leading to a steep fall in finished products prices in India as well as feedstock prices. In line with generally accepted accounting principles, the Company had written down the carrying value of stocks of major intermediates and finished products, to levels corresponding to the net realisable value of finished products, leading to an exceptional charge of '' 49.80 Crores during the year.

Rights, Preferences and Restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of '' 5 per share (March 31,2022: '' 5 per share). Each share holder is eligible for one vote per share held. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves:

Asset Revaluation Reserve:

The Company has recognised the surplus arising out of revaluation of Property, plant and equipment to Asset Revaluation Reserve in accordance with Ind-AS 16.

Capital reserve

The Company recognises the difference between the net assets less reserves acquired or transferred by the Company and as reduced by the shares capital issued or received respectively, pursuant to a common control business combination is adjusted to capital reserve.

Capital Redemption Reserve:

The Company had created Capital Redemption reserve in respect of redemption of preference shares in accordance with Companies Act.

Securities premium

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

General reserve

General reserve is free reserve available for distribution as recommended by Board in accordance with requirements of the Companies Act, 2013.

Summary of borrowing arrangements

Term loan from bank

a) Term loan from bank amounting to '' 77.53 Crores (March 31,2022: Nil) is secured by first pari passu charge over moveable fixed assets of the Company.

b) Term loan from bank amounting to '' 109.56 Crores (March 31, 2022: Nil) is secured by first pari passu charge over moveable fixed assets of the Company.

c) Term loan from bank amounting to '' 19.75 Crores (March 31,2022: Nil) is secured by first pari passu charge over moveable fixed assets of the Company

Repayment of loans

(a) Repayment of term loan amounting to '' 77.53 Crores in 25 structured quarterly installments, commencing from December 2023

Note: Current interest rate of the above term loan is 8.71% (March 31,2022: Nil)

(b) Repayment of term loan amounting to '' 109.56 Crores in 25 structured quarterly installments, commencing from September-24

Note: Current interest rate of the above term loan is 9.15% (March 31,2022: Nil)

(c) Repayment of term loan amounting to '' 19.75 Crores in 25 structured quarterly installments, commencing from December-23

Note: Current interest rate of the above term loan is 9.38% (March 31,2022: Nil)"

The Company imports Ethylene, Ethylene Dichloride (EDC) for manufacture of PVC , Methanol for manufacture of Chloromethanes and coal for its Captive Power Plant.

A) Ethylene, EDC :

Prices of PVC manufactured by the Company are monitored by Company’s management and adjusted to respond to change in import parity price of PVC in Indian market. The prices of Ethylene/EDC (Input) and PVC (Output) generally move in the same direction thereby maintaining the margins more or less at the same levels over a period of time. Therefore, the Company is not significantly exposed to the variation in commodity prices over a period for the above products.

Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument 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 Company’s long-term debt obligations with floating interest rates. It also uses sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting year was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Risk control assesses the credit quality of the customer, taking into account its financial position, past experience, other publicly available financial information, its own trading records and other factors, where appropriate, as means of mitigating the risk of financial loss from defaults. The Company’s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across various industries and geographical areas.

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Company’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

None of the Companys’ cash equivalents, including time deposits with banks, trade receivables and other receivables, and other loans or receivables have an expected credit loss as at March 31,2023.

Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed economically.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company’s treasury in accordance with the Board approved policy. Investments of surplus funds, temporarily, are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process.

36.9 Liquidity risk management

The Company has built an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The following table details the Company’s remaining contractual maturity for their financial liabilities. The contractual maturities of the financial instruments have been determined on the basis of earliest date on which the Company can be required to pay.

36.10 Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair

value, Compiled into Level 1 to Level 3, as described below.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Derivative instruments classified under Level 2 are valued using the quotes obtained by aggregators based on deals entered between market participants. Investments in unquoted equity shares classified under Level 3 are valued using DCF method. Long-term growth rate and Weighted average cost of capital are significant unobservable inputs whose sensitivity does not significantly affect the carrying values of such investments.

Segment Reporting

The Company’s operations predominantly relate to manufacture and sales of Specialty Chemicals. The Board of Directors of the Company who have been identified as the chief operating decision maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of Ind-AS 108 "Operating Segments". The Company’s operations are predominantly conducted in India and accordingly, there are no separate reportable geographic segment.

40.	| Contingent liabilities and Guarantees*
Particulars		As at March 31, 2023	As at March 31, 2022
A. Contingent Liabilities
Claims against the Company not acknowledged as debts :
On account of Direct Taxes		32.76	11.34
On account of Indirect Taxes		22.81	24.75
On account of other disputes		16.43	16.44
B. Guarantees
Corporate guarantee given to State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in respect of soft loan availed by Chemplast Cuddalore Vinyls Limited from SIPCOT		107.66	107.66
- (Total amount of the corporate guarantee given by Chemplast Sanmar Limited to SIPCOT for the soft loan facility is '' 331.86 Crores - Actual amount of the Loan drawn by CCVL against this facility is '' 107.66 Crores (Previous year '' 107.66 Crores)
Total		179.66	160.19
* - The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals. - It is not practicable for the Company to estimate the timing of the cash flows, if any, in respect of above, pending resolution of the respective appellate proceedings with various forums / authorities. - The Company does not expect any reimbursement in respect of the above contingent liabilities.
41.	Capital Commitments
Particulars		As at March 31, 2023	As at March 31, 2022
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)		325.52	108.04
		325.52	108.04

£2! Dues to micro and small enterprises

As at March 31,2023, there is no interest paid or payable to Micro and Small Enterprises as defined under The Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Note 31 and 33 have been determined to the extent such parties have been identified on the basis of information available with the Company.

43. The Company has completed the Initial Public Offer ("IPO") of 71,164,509 Equity Shares of the face value of '' 5/- each at an issue price of '' 541/- per Equity Share, comprising offer for sale of 4,71,34,935 shares by Selling Shareholders and fresh issue of 2,40,29,574 shares. The Equity Shares of the Company are listed on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") on August 24, 2021.

The total offer expenses are '' 96.43 Crores (inclusive of taxes) which are proportionately allocated between the selling shareholders and the Company as per respective offer size. The Company’s share of these expenses is '' 33.16 Crores (inclusive of taxes), of which '' 28.38 Crores (excluding taxes) has been adjusted against securities premium.

44. The code on Social Security, 2020 (''Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

The Company has expenditure towards Corporate Social Responsibility in excess of the prescribed limits for the year ended March 31,2023 and the same is carried forward to the next year for utilisation as per applicable provisions of Companies Act, 2013.

H Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not advanced to or loaned to or invested funds (either borrowed funds or share premium or any other sources or kind of funds) in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such 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

(iii) 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,

(iv) 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 assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

Employee benefit cost Defined benefit plans

Gratuity:

This is a defined benefit plan and the Company’s Scheme is administered by Life Insurance Corporation of India (LIC). The liability is determined based on the actuarial valuation using projected unit credit method as at Balance Sheet date.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at March 31,2023 by a private actuary.

| Significant accounting judgements, estimates and assumptions

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

a. Judgements

In the process of applying the Company’s accounting policies, management has not made any judgements, which have significant effect on the amounts recognised in the financial statements.

b. Estimates and assumptions

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

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model. Taxes

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

Defined benefit plans

The cost of the defined benefit gratuity plan is determined using actuarial valuation. 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 reporting date.

Further details about defined benefit obligations are given in Note 48.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 36 for further disclosures.

Fair value measurement of property, plant and equipments

The Company measures land, buildings, plant and machinery classified as property, plant and equipment at revalued amounts with increase in fair value being recognised in OCI. The Company had engaged an independent valuation specialist to assess fair value for revaluation of land, buildings, plant and equipment as at January 01, 2022. Fair value of land was determined by using the market approach, hypothetical layout method and building and plant & equipment was determined by using depreciated replacement cost (DRC) method. The key assumptions used to determine fair value of the property, plant and equipment are provided in Note 14.3.

Revenue from contract with customers

The Company estimates variable considerations to be included in the transaction price for the sale of goods and volume rebates. The Company’s expected rebates and discounts are analysed on a per customer basis for contracts that are subject to the applicable thresholds. Determining whether a customer will be likely entitled to rebate and discounts will depend on the customer’s rebates entitlement and total purchases to date.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to for its borrowings. Useful life of PPE

Estimated useful life of certain items of PPE are based on economic life of these assets as estimated by the management basis a technical assessment and usage and replacement policy of such assets. The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.

Employees'' benefits obligations

a. Defined contribution plan

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the Company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employees’ salary. The Company recognises contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. The Company has no further obligations under the plan beyond its monthly contributions.

b. Defined benefit plan Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy. Fund is maintained with Life Insurance Corporation of India.

Previous year’s figures have been regrouped wherever necessary.

The Financial Statements for the year ended March 31,2022 have been audited by a firm other than B S R & Co. LLP

---

Mar 31, 2022

Note on Recognition of Right-of-use asset

The Company has adopted the modified retrospective approach as given in Ind AS 116 and so has recognised Right-of-use assets and Lease liability for unexpired contracts as at April 1, 2019 and which has a lease term of more than 12 months from the date of initial application. Prepayments amounting to Rs. 7.54 Million were reclassified as part of Right-of-use asset on the date of initial application.

Note : 14.2

Assets held for sale

(a) The management had approved the sale of helicopter during the previous year and has accordingly classified the same as "Asset held for sale" as at March 31,2021. Subsequently, the Company has sold the same in the current year.

Note : 14.3

Revaluation of Property, Plant and Equipment

Fair value of property, plant and equipment was determined by using the market value method, hypothetical layout method for Freehold land and Depreciable Replacement Cost method (DRC) for Buildings and Plant & Equipment. This means that valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific property. As at the date of latest revaluation of January 1,2022, the properties'' fair values are based on valuations performed by RBSA Valuation Advisors LLP & N.Ayyapan (for land), who are both Registered Valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Significant Observable and Unobservable Valuation Inputs :

The value of Freehold land was determined based on condition, location, demand, supply in and around, plant-layout and other infrastructure facility available at and around the said plot of land.

The valuation of Buildings and Plant and equipment was based on its present fair market value after allowing for the depreciation of the particular assets, as well as the present condition of the assets (Depreciated Replacement Cost Method). The replacement value of the said assets as well as its maintenance up-keep is considered while working out its present fair value

* The Board of Directors of the Company in its meeting held on January 30, 2021 and shareholders in the Extraordinary General Meeting held on March 24, 2021 approved the sub-division of shares from Rupee 10 per share to Rupee 5 per share. As a result the number of equity shares of the Company has increased from 67,040,000 to 134,080,000.

Shares Held by Holding Company and its subsidiaries

Sanmar Holdings Limited and its nominees 86,945,065 equity shares (Previous Year 132,480,000 equity shares)

Rights, Preferences and Restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 5 per share (March 31,2021: Rs. 5 per share). Each share holder is eligible for one vote per share held. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 25 Other Equity (contd.)

Nature and purpose of reserves:

Asset Revaluation Reserve:

The Company has recognised the surplus arising out of revaluation of Property, plant and equipment to Asset Revaluation Reserve in accordance with Ind AS 16.

Capital Reserve:

The Company recognises the difference between the net assets less reserves acquired or transferred by the Company and as reduced by the share capital issued or received respectively, pursuant to a common control business combination is adjusted to capital reserve.

Capital Redemption Reserve:

The Company had created Capital Redemption reserve in respect of redemption of preference shares in accordance with Companies Act. Debenture Redemption Reserve (DRR):

The Companies (Share Capital and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 10% of the value of debentures outstanding. Accordingly, the Company had appropriated DRR equal to 10% of the outstanding value of debentures as at respective year.

Securities Premium:

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

General Reserve:

General reserve is a free reserve available for distribution as recommended by Board in accordance with requirements of the Companies Act, 2013.

Summary of borrowing arrangements

17.50% Debentures outstanding of Nil (March 31, 2021: Rs.12,117.16 Million) was originally repayable in 7 unequal annual installments

commencing from 21-Dec-2020. Also refer Note 42.

Security particulars of borrowing arrangements

Non-convertible debentures amounting to Rs. 12,700 Million was originally secured by :

a) A first ranking mortgage on all the Company''s immoveable properties.

b) A first ranking charge on all the Company''s moveable assets (excluding current assets), intangible assets and designated account and the Debt Service Reserve Account and all amounts lying to the credit thereof.

c) A second ranking charge on all the Company''s Current Assets, both present and future.

d) A first ranking exclusive pledge over the equity shares held by the Immediate Holding Company, Sanmar Holdings Limited in the Company, comprising at least 26% of the paid up equity share capital of the Company, on a Fully Diluted Basis in favour of the Debenture Trustee.

e) Corporate Guarantee provided by Sanmar Engineering Services Limited and Sanmar Holdings Limited in favour of the Debenture Trustee for the purposes of securing the Debentures, together with all Secured Obligations.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of debt, which includes the borrowings (Note 26 and 30), cash and cash equivalents (Note 20) and equity attributable to equity holders of the Company, comprising issued capital, securities premium and retained earnings.

35.3 Financial risk management objectives

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

The Company''s activities expose it primarily to fluctuations in foreign currency exchange rates, interest rates, liquidity and credit risk.

The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company''s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

There has been no change to the Company''s exposure to market risk or the manner in which these risk are managed and measured.

35.4 Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in 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 rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. The currencies, in which these transactions primarily are denominated is American Dollars (USD). The Company may use forward exchange contract towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirement and risk management strategy of the Company. Exchange rate exposures are managed with in approved policy parameters.

35.6 Commodity price risk

The Company imports Ethylene, Ethylene Dichloride (EDC) for manufacture of PVC , Methanol for manufacture of Chloromethanes and Coal for its Captive Power Plant.

A) Ethylene, EDC :

Prices of PVC manufactured by the Company are monitored by Company''s management and adjusted to respond to change in import parity price of PVC in Indian market. The prices of Ethylene/EDC (Input) and PVC (Output) generally move in the same direction thereby maintaining the margins more or less at the same levels over a period of time. Therefore, the Company is not significantly exposed to the variation in commodity prices over a period for the above products.

35.7 Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument 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 Company''s long-term debt obligations with floating interest rates.

The Company does not have any floating rate debt obligations and so the Company is not exposed to interest rate fluctuations.

35.8 Credit risk management

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Risk control assesses the credit quality of the customer, taking into account its financial position, past experience, other publicly available financial information, its own trading records and other factors, where appropriate, as means of mitigating the risk of financial loss from defaults. The Company''s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across various industries and geographical areas.

The carrying amount of financial assets recorded in the Financial Statements, which is net of impairment losses, represents the Company''s maximum exposure to credit risk without taking account of the value of any collateral obtained.

None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other loans or receivables that are neither impaired nor past due, there were no indications as at March 31,2022, that defaults in payment obligations will occur.

Customer credit risk is managed by the Company''s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed economically.

35.8.2 Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company''s treasury in accordance with the Board approved policy. Investments of surplus funds, temporarily, are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process.

35.9 Liquidity risk management

The Company has built an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

35.10 Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, compiled into Level 1 to Level 3, as described below.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Derivative instruments classified under Level 2 are valued using the quotes obtained by aggregators based on deals entered between market participants. Investments in unquoted equity shares classified under Level 3 are valued using DCF method. Long-term growth rate and Weighted average cost of capital are significant unobservable inputs whose sensitivity does not significantly affect the carrying values of such investments.

i. The management assessed that cash and cash equivalents, short-term investments, trade receivables, trade payables, other current financial liabilities approximate their carrying amounts largely due to their short-term nature.

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

iii. Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

The Company''s operations predominantly relate to manufacture and sales of Speciality Chemicals. The Board of Directors of the Company whom have been identified as the Chief Operating Decision Maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of Ind AS 108 "Operating Segments". The Company''s operations are predominantly conducted in India and accordingly, there are no separate reportable geographic segment.

Note 39 Contingent liabilities and Guarantees*
Particulars	As at March 31, 2022	As at March 31, 2021
A. Contingent Liabilities
Claims against the Company not acknowledged as debts :
- On account of Direct Taxes	113.40	67.26
- On account of Indirect Taxes	247.46	228.82
- On account of other disputes	164.37	143.96
B. Guarantees
Corporate guarantee given to State Industries Promotion Corporation of Tamil Nadu (SIPCOT) in respect of soft loan availed by Chemplast Cuddalore Vinyls Limited from SIPCOT	1,076.63	1,076.63
- (Total amount of the corporate guarantee given by Chemplast Sanmar Ltd to SIPCOT for the soft loan facility is Rs 3,318.60 Million - Actual amount of the Loan drawn by CCVL against this facility is Rs 1,076.63 Million ( Previous year Rs. 1,076.63 Million))
	1,601.86	1,516.67
- The Company is of the opinion that the above demands are not sustainable and expects to suceed in its appeals. - It is not practicable for the Company to estimate the timing of the cash flows, if any, in respect of above, pending resolution of the respective appellate proceedings with various forums / authorities. - The Company does not expect any reimbursement in respect of the above contingent liabilities.
Note 40 Capital commitments :
	As at March 31, 2022	As at March 31, 2021
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	1,080.36	276.84
	1,080.36	276.84

Note 41 Dues to Micro and Small Enterprises

As at March 31, 2022, there is no interest paid or payable to Micro and Small Enterprises as defined under The Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Note 31 and 33 have been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 42

The Company has completed the Initial Public Offer ("IPO") of 71,164,509 Equity Shares of the face value of Rs 5/- each at an issue price of Rs 541/- per Equity Share, comprising offer for sale of 47,134,935 shares by Selling Shareholders and fresh issue of 24,029,574 shares. The Equity Shares of the Company are listed on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") on August 24, 2021.

Exceptional items before tax is Nil (Previous year Rs.156.84 Million) refers to compensation payable to employees who have opted for an early separation scheme announced by the Company

Note 44

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

The Company has incurred expenditure towards Corporate Social Responsibility in excess of the prescribed limits for the year ended March 31,2022 and the same is carried forward to the next year for utilisation as per applicable provisions of Companies Act, 2013.

Note 46 Other Statutory Information

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such 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

(iii) 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

(iv) 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 assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961)

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

I. The entire plan assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC)

II. The expected / actual return on Plan assets is as furnished by LIC

III. The estimate of future salary increase takes in to account inflation, likely increments, promotions and other relevant factors.

The overall expected rate of return is a weighted average of the expected returns of the various categories of plan assets held. The directors'' assessment of the expected returns is based on historical return trends and analysts'' predictions of the market for the asset over the life of the related obligation.

The Company expects to make a contribution of Rs. 34.26 Million to the defined benefit plans during the next financial year.

Note 53 Significant accounting judgements, estimates and assumptions

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

a. Judgements

In the process of applying the Company''s accounting policies, management has not made any judgements, which have significant effect on the amounts recognised in the Financial Statements.

b. Estimates and assumptions

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

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model.

Taxes

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

Defined benefit plans

The cost of the defined benefit gratuity plan is determined using actuarial valuation. 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 reporting date.

Further details about defined benefit obligations are given in Note 48.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 35.11 for further disclosures.

Fair value measurement of property, plant and equipments

The Company measures land, buildings, plant and machinery classified as property, plant and equipment at revalued amounts with changes in fair value being recognised in OCI. The Company had engaged an independent valuation specialist to assess fair value for revaluation of land, buildings, plant and equipment as at January 1, 2022. Fair value of land was determined by using the market approach, hypothetical layout method and building and plant & equipment was determined by using depreciated replacement cost (DRC) method. The key assumptions used to determine fair value of the property, plant and equipment are provided in Note 14.3.

Revenue from contract with customers

The Company estimates variable considerations to be included in the transaction price for the sale of goods and volume rebates. The Company''s expected rebates and discounts are analysed on a per customer basis for contracts that are subject to the applicable thresholds. Determining whether a customer will be likely entitled to rebate and discounts will depend on the customer''s rebates entitlement and total purchases to date.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to for its borrowings.

Useful life of PPE

Estimated useful life of certain items of PPE are based on economic life of these assets as estimated by the management basis a technical assessment and usage and replacement policy of such assets. The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.

a. Defined contribution plan

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the Company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employees'' salary. The Company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. The Company has no further obligations under the plan beyond its monthly contributions.

b. Defined benefit plan

Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy. Fund is maintained with Life Insurance Corporation of India.

Note 55

Previous year''s figures have been regrouped wherever necessary.

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Mar 31, 2012

NOTE 1

A. Term loans from banks and financial institutions amounting to Rs.44454.21 lacs and Rs.6250.00 lacs respectively (Previous year Rs.61586.12 lacs and Rs.7250.00 lacs respectively) is secured by first pari passu charge on land, buildings and plant and machinery of the company subject to exclusive charge on assets referred to in B below

I. Repayment of loans from Banks

(a) Loan amounting to Rs.5418.00 lacs (Previous year Rs.8127.00 lacs) - repayment in 9 half yearly instalment basis

(b) Loan amounting to Rs.26449.85 lacs (Previous year Rs.38459.12 lacs) - repayment in quarterly instalments ranging between 16 and 28 quarters

(c) Loan amounting to Rs.12586.36 lacs (Previous year Rs.15000.00 lacs) - repayment in monthly instalments ranging between 60 and 66 months

II. Repayment of loans from financial institutions

(a) Loan amounting to Rs.6250.00 lacs (Previous year Rs.7250.00 lacs) - repayment in 36 quarterly instalments.

B. Term loans from banks aggregating to Rs.13406.00 lacs (Previous year Rs.18313.00 lacs) is secured by equitable mortgage of specific land and buildings.

I. Repayment schedule of loans from banks

(a) Loan amounting to Rs.5250.00 lacs (Previous year Rs.6375.00 lacs) - repayment in 18 quarterly un-equal instalments

(b) Loan amounting to Rs.2500.00 lacs (Previous year Rs.3750.00 lacs) - repayment in 26 quarterly instalments.

(c) Loan amounting to Rs.5656.00 lacs (Previous year Rs.8188.00 lacs) - repayment in 54 monthly instalments.

C. Hire purchase loan from financial institution amounting to Rs.2884.93 lacs (Previous year Rs.Nil) is secured by way of first charge on helicopter. The loan is repayable in 60 monthly instalments.

D. Term loans from banks aggregating to Rs.1151.30 lacs (Previous year Rs.5948.41 lacs) is secured by hypothecation of Certified Emission Reduction (CER) receivables. Loans are repaid in agreed proportion on proceeds of CER receipts.

Note: Repayment schedule indicated above is from the date of drawal of the loan or from the end of moratorium period whichever applicable.

NOTE 2

Unamortised Expenditure:

Unamortised Expenditure represents unamortised balance of ancillary costs related to borrowings, which is being

amortised over the currency of the borrowing commencing from the first withdrawal of the amount borrowed.

NOTE 3

Exceptional item:

During the year ended March 31, 2011, the impairment provision relating to the LSHS gensets has been reversed

to the extent of Rs.725.55 lacs (before tax Rs.1050.00 lacs).

NOTE 4

Dues to Micro, Small and Medium Enterprises: As at March 31, 2012, there is no interest paid or payable to Micro, Small and Medium Enterprises as defined under The Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Note 15 have been determined to the extent such parties have been identified on the basis of information available with the company.

NOTE 5

The company is principally engaged in a single business segment viz, Chemicals and operates in one geographical segment. Accordingly there are no separate reportable segments as per Accounting Standard 17 on "Segment Reporting".

NOTE 6

Related party transaction:

(a) List of parties where control exists

Sanmar Holdings Limited Holding Company

(b) Associates/ Fellow Subsidiaries

BS&B Safety Systems (India) Limited Sanmar Foundries Limited

Cabot Sanmar Limited Sanmar Croup Corporate Finance

Cathedral Corporate Finance Sanmar Shipping Limited

Emerson Process Management Chennai Sanmar Speciality Chemicals Limited* Limited

Flowserve Sanmar Limited SHL Property Holdings Limited

Kalamkriya Limited Stargate Realty Private Limited

Matrix Metals LLC TCI Sanmar Chemicals S.A.E.

Mowbrays Corporate Finance Tyco Sanmar Limited

Sanmar Consolidations Limited Xomox Sanmar Limited

Sanmar Engineering Services Limited

* Upto 31.03.2011 formerly known as Fisher Sanmar Limited

(c) Key Management Personnel

P S Jayaraman, Chairman

S Gopal, Managing Director

NOTE 7

The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

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Mar 31, 2011

31.03.2011 31.03.2010 Rs.Lacs Rs.Lacs

1. Contingent liabilities:

(a) Claims against the company not acknowledged as debts 3638.17 1985.27

(b) In respect of guarantees to banks for obligations of an associate company. 15606.50 15715.00

2. Miscellaneous Expenditure:

Miscellaneous Expenditure to the extent not written off or adjusted represents unamortised balance of ancillary costs related to borrowings, which is being amortised over the currency of the borrowing commencing from the first withdrawal of the amount borrowed.

3. Exceptional item:

The previous year ended March 31, 2010 included asset impairment provisions of Rs.2141.01 Lacs (before tax Rs.3125.17 Lacs) for the LSHS gensets decommissioned after commissioning the coal based power plant, and Rs.1431.10 Lacs (before tax Rs.2088.94 Lacs) being the value of the Metkem Silicon plant which had been mothballed, totalling to Rs.3572.11 Lacs (before tax Rs.5214.11 Lacs). In the last quarter of the current year ended March 31, 2011, the impairment provision relating to the LSHS gensets has been reversed to the extent of Rs.725.55 Lacs (before tax Rs.1050.00 Lacs) based on offers received for them.

4. Dues to micro, small and medium enterprises:

As at March 31, 2011, there is no interest paid/payable to micro, small and medium enterprises as defined under the Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Schedule 19 have been determined to the extent such parties have been identified on the basis of information available with the company.

5. The company is principally engaged in a single business segment viz, Chemicals and operates in one geographical segment. Accordingly there are no separate reportable segments as per Accounting Standard 17 on "Segment Reporting".

6. Related party transaction:

(a) List of parties where control exists

Sanmar Holdings Limited Holding company

(b) Associates/ Fellow Subsidiaries

BS&B Safety Systems (India) Limited

Cabot Sanmar Limited

Cathedral Corporate Finance Fisher Sanmar Limited

Flowserve Sanmar Limited

Kalamkriya Limited Sanmar Foundries Limited

Sanmar Shipping Limited

Sanmar Speciality Chemicals Limited

SHL Property Holdings Limited

TCI Sanmar Chemicals S.A.E

Tyco Sanmar Limited

Xomox Sanmar Limited

Stargate Realty Private Limited

(c) Key Management Personnel

P S Jayaraman, Chairman

S Gopal, Managing Director

7. Previous year's figures have been regrouped wherever necessary.

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Mar 31, 2010

1. Contingent liabilities: 31.03.2010 31.03.2009 Rs.Lacs Rs.Lacs (a) Claims against the company not acknowledged as debts 1985.27 1894.58 (b) In respect of guarantees to banks for loans/ obligations granted by them to an associate company. 15715.00 17759.00

2. Miscellaneous expenditure:

Miscellaneous expenditure to the extent not written off or adjusted represents unamortised balance of ancillary costs related to borrowings, which is being amortised over the currency of the borrowing commencing from the first withdrawal of the amount borrowed.

3. Montreal Protocol compensation:

The company is eligible to receive compensation from Multilateral Fund under the Montreal Protocol for phasing out the production of Chlorofluorocarbons and supply of Carbon Tetra Chloride to non feed stock sector. The aforesaid compensation is received in periodic instalments subject to meeting certain conditions stipulated in the Protocol and accordingly the compensation is accounted only after complying with such conditions and ensuring that there is no uncertainty in this regard. Following this practice compensation received during the year alone has been accounted and shown under Other Income.

4. Income from Certified Emission Reduction (CER):

The company is entitled to receive Carbon Credits towards CER from United Nations Framework Convention for Climate Change (UNFCCC).

Income from CER is reckoned when the company is entitled to such credits, which occurs

- on incineration of HFC 23 at Mettur

on production of steam from Waste Heat Recovery Boiler at Karaikal

5. Exceptional item net of tax - Rs.3572.11 Lacs (before tax Rs.5214.11 Lacs) - relates to Asset impairment provisions of Rs.2141.01 Lacs for the LSHS based Power Generation Plant decommissioned consequent on commissioning of the Coal based Power Plant, and Rs.1431.10 Lacs being the value of the Metkem Silicon Plant which has been mothballed pending revival of the price of the end product.

6. Dues to micro, small and medium enterprises:

As at March 31, 2010, there is no interest payable to micro, small and medium enterprises as defined under The Micro, Small and Medium Enterprises Act, 2006. This information and that disclosed in Schedule 19 have been determined to the extent such parties have been identified on the basis of information available with the company.

7. The company is principally engaged in a single business segment viz, Chemicals and operates in one geographical segment. Accordingly there are no separate reportable segments as per Accounting Standard 17 on "Segment Reporting".

8. Related party transaction:

(a) List of parties where control exists Sanmar Holdings Limited Holding company

(b) Associates/ Fellow Subsidiaries

BS&B Safety Systems (India) Limited Cabot Sanmar Limited Cathedral Corporate Finance Fisher Sanmar Limited Flowserve Sanmar Limited Kalamkriya Limited Sanmar Foundries Limited Sanmar Croup Corporate Finance Bangalore Genei (India) Private Limited Sanmar Shipping Limited Sanmar Speciality Chemicals Limited SHL Property Holdings Limited TCI Sanmar Chemicals LLC Sanmar Ferrotech Limited Tyco Sanmar Limited Xomox Sanmar Limited Stargate Realty Private Limited

(c) Key Management Personnel

P S Jayaraman, Chairman S Gopal, Managing Director V Ramesh, Deputy Managing Director (part of the year)

9. During the year, to part finance the companys PVC project at Cuddalore, the company issued equity shares of Re.1 each at a premium of Rs.4 per share on rights basis, in the ratio of 2 equity shares for every 3 shares, aggregating to Rs.159.94 crores. The issue closed on April 13, 2009 was fully subscribed and allotment of 31,98,79,087 equity shares of Re.1 each was made on April 27, 2009. The paid up capital of the company post allotment is 79,96,98,527 equity shares of Re.1 each.

10. Previous years figures have been regrouped wherever necessary.