అకౌంట్స్ గమనికలుNeogen Chemicals Ltd.

Mar 31, 2025

• Impairment

At the end of each reporting year, the
Company reviews the carrying amounts of its
tangible and intangible assets to determine
whether there is any indication that those
assets have suffered an impairment loss. If
any such indication exists, the recoverable
amount of the asset is estimated in order to
determine the extent of the impairment loss (if
any). Where it is not possible to estimate the
recoverable amount of an individual asset, the
Company estimates the recoverable amount
of the cash-generating unit to which the asset
belongs. Where a reasonable and consistent
basis of allocation can be identified, corporate
assets are also allocated to individual cash¬
generating units, or otherwise they are
allocated to the smallest group of cash¬
generating units for which a reasonable and
consistent allocation basis can be identified.
Intangible assets with indefinite useful lives
and intangible assets not yet available for use
are tested for impairment at least annually,
and whenever there is an indication that
the asset may be impaired. Recoverable
amount is the higher of fair value less costs
to sell and value in use. 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 for which the
estimates of future cash flows have not been
adjusted. If the recoverable amount of an
asset (or cashgenerating unit) is estimated to
be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit)
is reduced to its recoverable amount. An
impairment loss is recognised immediately
in the Statement of Profit and Loss Goodwill
and intangible assets that do not have definite
useful life are not amortised and are tested
at least annually for impairment. If events
or changes in circumstances indicate that
they might be impaired, they are tested for
impairment once again.

H. Investments

The investments in subsidiaries, associates and joint
ventures are carried in these financial statements
at historical ‘cost, except when the investment or
a portion thereof, is classified as held for sale,
in which case it is accounted for as Non-current
assets held for sale and discontinued operations.
Where the carrying amount of an investment is
greater than its estimated recoverable amount, it is
written down immediately to its recoverable amount
and the difference is transferred to the Statement
of Profit and Loss. On disposal of investment, the
difference between the net disposal proceeds and
the carrying amount is charged or credited to P & L.

I. Borrowing costs

General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period of time that is required to complete
and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their
intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred.
Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange difference to the extent regarded as an
adjustment to the borrowing costs.

J. Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker (“CODM”) of
the Company. The CODM, who is responsible for
allocating resources and assessing performance
of the operating segments, has been identified as
the Board of directors. The Company has identified
only one segment as reporting segment based on
the information reviewed by CODM.

K. Financial Instruments

• Recognition initial measurement

Trade receivables are initially recognised when
they originate. All other financial assets and
financial liabilities are initially recognised when

the Company becomes a party to the contractual
provisions of the instrument. A financial asset or
financial liability is initially measured at fair value.
Transaction costs that are directly attributable to
the acquisition or issue of financial assets and
financial liabilities (other than financial assets
and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair
value of the financial assets or financial liabilities,
as appropriate, on initial recognition. However,
trade receivables that do not contain a significant
financing component are measured at transaction
price.

• Classification and subsequent measurement

• Financial Assets

On initial recognition, a financial asset is
classified as measured at

• amortised cost or

• FVTPL

Financial assets are not reclassified
subsequent to their initial recognition, except
if and in the period the Company changes its
business model for managing financial assets.
A financial asset is measured at amortised
cost if it meets both of the following conditions
and is not designated as at FVTPL:

• the asset is held within a business model
whose objective is to hold assets to
collect contractual cash flows; and

• the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

• Financial assets: Business model assessment
The Company makes an assessment of
the objective of the business model in
which a financial asset is held at a portfolio
level because this best reflects the way the
business is managed and information is
provided to management. The information
considered includes:

• The stated policies and objectives for
the portfolio and the operation of those
policies in practice. These include
whether management’s strategy focuses
on earning contractual interest income,
maintaining a particular interest rate
profile, matching the duration of the
financial assets to the duration of any
related liabilities or expected cash
outflows or realising cash flows through
the sale of the assets;

• how the performance of the portfolio is
evaluated and reported to the Company’s
management;

• t he risks that affect the performance of
the business model (and the financial
assets held within that business model)
and how those risks are managed;

• how managers of the business are
compensated e.g. whether compensation
is based on the fair value of the assets
managed or the contractual cash flows
collected; and

• the frequency, volume and timing of sales
of financial assets in prior periods, the
reasons for such sales and expectations
about future sales activity.

Transfers of financial assets to third parties
in transactions that do not qualify for
derecognition are not considered sales for
this purpose, consistent with the Company’s
continuing recognition of the assets. Financial
assets that are held for trading or are managed
and whose performance is evaluated on a
fair value basis are measured at FVTPL.
The Company recognises transfers between
levels of the fair value hierarchy at the end of
the reporting period during which the change
has occurred.

• Financial assets: Assessment whether
contractual cash flows are solely payments of
principal and interest

For the purposes of this assessment,
‘principal’ is defined as the fair value of the

financial asset on initial recognition. ‘Interest’
is defined as consideration for the time value
of money and for the credit risk associated
with the principal amount outstanding during
a particular period of time and for other basic
lending risks and costs (e.g. liquidity risk
and administrative costs), as well as a profit
margin.

In assessing whether the contractual cash
flows are solely payments of principal
and interest, the Company considers the
contractual terms of the instrument. This
includes assessing whether the financial asset
contains a contractual term that could change
the timing or amount of contractual cash flows
that it would not meet this condition. In making
this assessment, the Company considers:

• contingent events that would change the
amount or timing of cash flows;

• terms that may adjust the contractual
coupon rate, including variable interest
rate features;

• prepayment and extension features; and

• terms that limit the Company’s claim to
cash flows from specified assets (e.g.
non-recourse features).

A prepayment feature is consistent with
the solely payments of principal and
interest criterion if the prepayment amount
substantially represents unpaid amounts of
principal and interest on the principal amount
outstanding, which may include reasonable
additional compensation for early termination
of the contract Additionally, for a financial
asset acquired at a significant discount or
premium to its contractual par amount, a
feature that permits or requires prepayment
at an amount that substantially represents
the contractual par amount plus accrued (but
unpaid) contractual interest (which may also
include reasonable additional compensation
for early termination) is treated as consistent
with this criterion if the fair value of the
prepayment feature is insignificant at initial
recognition.

• Financial assets: subsequent measurement
and gains and losses

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

Financial assets at amortised cost: These
assets are subsequently measured at
amortised cost using the effective interest
method. The amortised cost is reduced by
impairment losses. Interest income, foreign
exchange gains and losses and impairment
are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit or
loss

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

• Derecognition

• Financial assets

The Company derecognizes a financial
asset when the contractual rights to
the cash flows from the financial asset
expire, or it transfers the rights to
receive the contractual cash flows in a
transaction in which substantially all of
the risks and rewards of ownership of
the financial asset are transferred or in
which the Company neither transfers
not retains substantially all of the risks

and rewards of ownership but does not
retain control of the financial asset. If
the Company enters into transactions
whereby it transfers assets recognized
on its balance sheet, but retains either
all or substantially all of the risks and
rewards of the transferred assets, the
transferred assets are not derecognized.

• Financial liabilities

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

• Offsetting

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

• Equity instruments

Equity instruments issued by the
Company are classified according
to the substance of the contractual
arrangements entered into and the
definitions of an equity instrument. An
equity instrument is any contract that
evidences a residual interest in the
assets of the Company after deducting all
of its liabilities and includes no obligation
to deliver cash or other financial assets.

L. Leases

A contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. Company as a lessee The
Company’s lease asset classes primarily consist of
leases for land. The Company assesses whether
a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an identified
asset, the Company assesses whether: (i) the
contract involves the use of an identified asset (ii)
the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and (iii) the Company has the right to
direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short¬
term leases) and low value leases. For these
short-term and low value leases, the Company
recognizes the lease payments as an operating
expense on a straight-line basis over the term of
the lease. Certain lease arrangements includes
the options to extend or terminate the lease
before the end of the lease term. ROU assets and
lease liabilities includes these options when it is
reasonably certain that they will be exercised. The
right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives.
They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. The lease liability is initially

measured at amortized cost at the present value
of the future lease payments. The lease payments
are discounted using the interest rate implicit in
the lease or, if not readily determinable, using
the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option. Lease liability
and ROU asset have been separately presented in
the Balance Sheet and lease payments have been
classified as financing cash flows.

M. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

N. Earnings per share

• Basic earnings per share

Basic earnings per share is calculated by dividing:

a) the profit attributable to owners of the
Company

b) by the weighted average number of equity
shares outstanding during the financial year,
adjusted for bonus elements in equity shares
issued during the year and excluding treasury
shares.

O. Business combination

Business combinations are accounted for using
the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration
transferred measured at acquisition date fair value
and the amount of any non-controlling interests
in the acquiree if any. Acquisition-related costs
are expensed as incurred. At the acquisition date,
the identifiable assets acquired and the liabilities
assumed if any are recognised at their acquisition
date fair values. For this purpose, the liabilities
assumed include contingent liabilities representing
present obligation and they are measured at their
acquisition fair values irrespective of the fact that

outflow of resources embodying economic benefits
is not probable. However, the following assets and
liabilities acquired in a business combination are
measured at the basis indicated below:

Deferred tax assets or liabilities, and the assets or
liabilities related to employee benefit arrangements.
are recognised and measured in accordance with
Ind AS 12 Income Tax and Ind AS 19 Employee
Benefits respectively. When the Company acquires
a business, it assesses the financial assets and
liabilities assumed for appropriate classification
and designation in accordance with the contractual
terms, economic circumstances and pertinent
conditions as at the acquisition date. Goodwill is
initially measured at cost, being the excess of the
aggregate of the consideration transferred and the
amount recognised for noncontrolling interests, and
any previous interest held, over the net identifiable
assets acquired and liabilities assumed. If the fair
value of the net assets acquired is in excess of
the aggregate consideration transferred (bargain
purchase), the company re-assesses whether it has
correctly identified all the assets acquired an all of
the liabilities assumed and reviews the procedures
used to measure the amounts to be recognised at
the acquisition date. If the reassessment still results
in an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then

the gain is recognised in Other Comprehensive
Income (OCI) an accumulated in equity as capital
reserve. However, if there is no clear evidence of
bargain purchase, the entity recognises the gain
directly in equity as capital reserve, without routing
the same through OCI.

Business combinations arising from transfers of
interests in entities that are under common control
are accounted using pooling of interest method.
The difference between consideration given and
the aggregate historical carrying amounts of assets
and liabilities of the acquired entity are recorded in
equity

P. Recent 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. For the year
ended March 31, 2025, MCA has notified Ind AS
- 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f.
April 1,2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

(b) Rights, preferences & Restriction of each class of shares

The Company has one class of Equity shares having a par value of '' 10 per share. Each Share holder is eligible for
one vote per share held. All Equity Shareholders are eligible to receive dividends in proportion to their shareholdings.
The dividends proposed by the Board of Directors are subject to the approval of the Shareholders in the ensuing Annual
General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the
Company, after distribution of all preferential amounts, in proportion to their share holding.

The Description of the nature and purpose of each reserve within equity:

General Reserve: General reserve is a free reserve which is created by transferring fund from retained earnings to meet future
obligations and purposes.

Retained Earnings: Retained earnings are the profits that the company has earned till date, less any transfers to general
reserve, dividends paid to shareholders.

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

Capital Reserve on Business Combination: This represents the capital reserve on account of business combination on
purchase of unit of Solaris Chemtech industries limitd, amalgmation of BuLi Chemicals India Private Limited under common
control buisness combination transaction.

Other Comprehensive Income: Remeasurement of defined benefit plans : Remeasurement of defined benefit plans represents
actuarial gains and losses relating to gratuity

Notes:

1 The secured term loan outstanding of '' 12.98 crore (March 31,2024 : '' 55.64 crore) from Kotak Bank carries interest at
8.25 % (REPO rate plus 2%). The loan is repayable within 7 years from its origination and the final instalment of repayment
is due on 25-07-2029 (original repyament schedule), however as per agreed terms with bank outstanding amount would
be paid in next one year. Charge created on movable and immovables assets of the Company.

2 The secured term loan outstanding of '' 48.82 crore (March 31,2024 : '' 72.96 crore) from HDFC Bank carries interest
at 8.53% (REPO rate plus 2.51%). The loan is repayable within 7 years from its origination and the final instalment of
repayment is due on 30-03-2028. Charge created with on movable and immovables assets of the Company.

3 The secured term loan outstanding of '' 18.75 crore (March 31, 2024 : '' 23.75 crore) from Axis Bank carries interest
at 8.95% (REPO rate plus 2.75%). The loan is repayable within 7 years from its origination and the final instalment of
repayment is due on 31-12-2028. Charge created on movable and immovables assets of the Company.

4 The secured term loan outstanding of '' 11.99 crore (March 31,2024 : NIL) from Bandhan Bank carries interest at 8.90%
(REPO rate plus 2.25%). The loan is repayable within 7 years from its origination and the final instalment of repayment is
due on 24-05-2031. Charge created on movable and immovables assets of the Company.

5 Secured by way of charge on current assets (Inventories and Trade Receivables)

On March 05, 2025 there was fire at Multi-Purpose Plant (MPP3)- Facility, Tank Farms and warehouse at Dahej SEZ Plant of
the Company. This incident led to damage of certain property, plant and equipment, inventory and interrupted business. The
Company is adequately insured for reinstatement value of damaged assets and loss of profits due to business interruption. The
Company has intimated the fire incident with the insurance company and submitted loss estimate pertaining to replacement
value of the damaged property, plant and equipment, loss of damaged inventory and incidental expenses incurred on account
of fire. The Company is awaiting for completion of surveyor assessment appointed by the insurance company.

The Company has recognised loss of '' 348.16 Crore on account of damage to certain property, plant & equipment, inventory
and estimated cost of incidental charges. The Company has recognised insurance claim receivable of '' 334.60 Crore to the
extent of recovery of loss after adjusting applicable deductibility considering its assessment of loss and admissibility of claims
as per the policy, adequacy of coverage and nature of loss and based upon the independent opinion obtained by the company
from Independent Surveyor and Independent Expert Practitioner. The Company has not accounted claim for loss of profit due
to business interruption and excess value of reinstatement of assets over written down value as per accounting conservatism.
The aforementioned losses and corresponding insurance claim has been presented on a net basis of '' 13.56 Crore under
exceptional item and claim receivable in other current financial assets in these standalone financials.

Note : 32. Earnings Per Share

Basic Earnings per share (EPS) amounts are 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 earnings /(loss) per share
amounts are calculated by dividing the profit/loss (after adjusting for interest on the convertible preference shares) attributable
to equity holders 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.

(b) Defined Benefit Plans

Gratuity

The Company has covered its Gratuity liability under Group Gratuity policy viz ‘Employee Group Gratuity Scheme’ issued
by LIC of lndia. As per company policy, an employee on separation (after fulfilling other conditions) is eligible for benefit,
which is equal to 15 days salary for each completed year of service. Hence, Gratuity is covered under a defined benefit
plan. The Insurance policy represents the plan assets. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit
of employee benefit entitlement and measure each unit separately to build up the final obligation.

Compensated Absences

The Company has also provided long term compensated absences which is outstanding. The obligation for leave
encashment is recognised in the same manner as gratuity

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and
the funded status and amounts recognised in the balance sheet for gratuity and leave encashment plan:

Note : 39. Financial risk management objectives and policies

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 and to provide guarantees to support its
operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents
that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management is supported by a risk management committee that advises
on financial risks and the appropriate financial risk governance framework for the Company. The risk management committee
provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist
teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for
speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk.
Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative financial
instruments.

The sensitivity analyses in the following sections relate to the position as at March 31,2025 and March 31,2024.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations and provisions.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at March 31,2025 and March 31,2024.

Interest rate risk

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 and short term debt obligations with floating interest rates.

If the interest rates had been 1% higher / lower and all other variables held constant, impact on the Company’s profit for the
year ended 31st March, 2025 will not be significant.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the
reporting date. The Company uses forward exchange contracts to hedge the currency exposure and is therefore not exposed
to significant currency risk at the respective reporting dates.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to
match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from
the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable
that is denominated in the foreign currency.

Foreign currency sensitivity

The following table details the Company’s sensitivity to a 5% appreciation and depreciation in the '' against the relevant foreign
currencies net of hedge accounting impact.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at
the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates
an increase in profit or equity where '' strengthens 5% against the relevant currency. For a 5% weakening of '' against the
relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Price risk

The Company does not have much exposure to price risk due to annual contracts and pass through mechanism for imports.
Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments.

The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit
risk controls.

None of the financial instruments of the Company result in material concentrations of credit risk. The company’s objective is to
seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset.

The entity’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due. Management monitors rolling forecasts of the entity’s liquidity position and cash and cash equivalents on
the basis of expected cash flows. The entity takes into account the liquidity of the market in which the entity operated.

Note : 42. Capital management

The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes made in the objectives, policies or processes for managing capital during the years ended March 31,2025 and
March 31,2024.

Note : 43. Other statutory information

i) The Company does not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any benami property.

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

iii) The Company has not received any funds 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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries

iv) The Company has not advanced or loaned or Invested fund to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lends or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries

v) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

vi) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was
obtained.

vii) The Company does not have any transactions with companies which are struck off.

viii) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

ix) The Company have no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

x) All the title deeds of Immovable properties (other than properties where the Company is the lessee and lease agreements
are duly executed in favour of the lessee) are held in the name of the company and the properties are not held in joint
name.

xi) The Company has not revalued its intangible assets and accordingly the revaluation as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017 is not applicable.

xii) The company has complied provision prescribed under clause (87) of section 2 of the Companies Act, 2013 for maintaining
layers of Companies.

xiii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

xiv) Subsequent Event:

There are no subsequent events which require disclosure or adjustment subsequent to the Balance Sheet date.

Note : 44. Proposed Dividend

The Board of Directors of the Company at its meeting held on May 17 2025, has recommended a final dividend of '' 1 per equity

share on the paid-up equity share capital of the company for F.Y. 2024-25, subject to approval of Shareholders

Note : 46. Disclosure pursuant to Ind AS 103 “Business Combination”

Buli Chemicals India Private Limited, wholly owned subsidiary, merged with company under scheme of Amalgamation approved
by National Company Law Tribunal, Mumbai Bench, through order dated Januray 9, 2025, the Scheme is effective from the date
of filing of the certified copy of Order with the Registrar of Companies, Mumbai i.e. January 31, 2025 (“Effective Date”),with
appointed date as April 1, 2024. The Scheme sanctioned being a common control transaction has been accounted using
pooling of interest method, in accordance with Ind AS 103 “Business Combination” involving the following:

i) The assets and liabilities of Buli Chemicals India Private Limited were reflected at their carrying amounts. No adjustment
was made to reflect the fair values, or recognise any new asset or liability.

ii) The balance of the Retained earnings appearing in the financial statements of the Buli Chemicals India Private Limited
was aggregated with the corresponding balance appearing in the financial statements of the Company.

iii) Restating the financials of the Company from April 1, 2023.

Note : 47. Previous year figures have been regrouped/rearranged where necessary to conform to current year’s classification.
As per our report of even date attached

For Chandabhoy & Jassoobhoy For and on behalf of the Board of Directors

Chartered Accountants NEOGEN CHEMICALS LIMITED

Firm Registration No. 101647W CIN- L24200MH1989PLC050919

Bhupendra Nagda Haridas Kanani Dr. Harin Kanani

Partner Chairman & Managing Director Managing Director

Membership No.102580 DIN: 00185487 DIN: 05136947

Gopikrishnan Sarathy Unnati Kanani

Place: Thane Chief Financial Officer Company Secretary and Compliance Officer

Date: May 17, 2025 M. no. A35131

---

Mar 31, 2024

h) Provisions and contingent liabilities

Provisions are recognized when present obligations as a result of a past event will probably lead to an outflow of economic resources and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises when there is a presence of a legal or constructive commitment that has resulted from past events, for example, legal disputes or onerous contracts. Provisions are not recognized for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present

obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Provisions are discounted to their present values, where the time value of money is material. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. In those cases where the outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognized.

Contingent liability is disclosed for:

Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

i) Revenue Recognition

The company manufactures and sells a range of products to various customers. In case of contracts with customers, revenue is recognised when the significant risk and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods to the degree usually associated with the ownership, and the amount of revenue can be measured reliably, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable. Revenue recognised in relation to these contracts in excess of billing is recognised as a Contract Asset. In remaining cases revenue is recognised over Company’s performance does not create an asset with alternative use to the Company and the entity has an enforceable right to payment for performance completed till date. Accumulated experience is used to estimate and provide for the discounts and returns and revenue is only recognised to the extent that it is highly probable that a significant reversal will not

occur. A refund liability (included in other current liabilities)is recognised for expected returns from the customer. Liability (included in other financial liabilities) is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. Amounts disclosed as revenue are net of returns, discounts, volume rebates and net of goods and service tax. Incentives on exports are recognised in books after due consideration of certainty of utilisation / receipt of such incentives

j) Other income

a. Interest Income

Interest income is recognized on time proportion basis considering the amount outstanding and rate applicable. For all financial assets measured at amortized cost, interest income is recorded using the effective interest rate (EIR) i.e. the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial assets.

b. Government grant

Grants and subsidies from the government are recognised when there is reasonable assurance that (i) the company will comply with the condition attached to them and (ii) the grant /subsidy will be received

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises the related costs for which the grants are intended to compensate or when performance obligations are made.

Where the grant relates to an asset, it is recognized as deferred income and credited to income in equal amounts over the expected useful life of the related asset.

k Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard 19- Employee Benefits.

l) Borrowing costs

Borrowing costs directly attributable to the acquisitions, construction or production of a qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs.

A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Capitalization of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption.

m) Income taxes

The income tax expense recognized in the financial statement of profit and loss comprises the sum of deferred tax and current tax not recognized in Other Comprehensive Income (OCI) or directly in equity.

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Current tax relating to items is recognized outside statement of profit and loss (i.e. in OCI or equity depending upon the treatment of underlying item).

Deferred tax liabilities are generally recognized in full for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilized against future taxable income. This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized, or the liability is

settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside the statement of profit and loss is recognized outside statement of profit and loss (in OCI or equity depending upon the treatment of underlying item).

Minimum Alternate Tax (''MAT’) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The Company reviews the same at each financial statement of assets and liabilities date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain that the Company will pay normal income-tax during the specified period.

The Company has benefited from certain income tax incentives that the Government of India had provided for export of good or services from the units registered under the Special Economic Zones Act (SEZs), 2005. SEZ units which began the manufacturing of goods or provision of services on or after April 1, 2005 are eligible for a deduction of 100% of profits or gains derived from the export of goods or services for the first five years from the financial year in which the unit commenced the manufacturing of goods or provision of services and 50% of such profits or gains for further five years. Upto 50% of such profits or gains is also available for a further five years subject to creation of a Special Economic Zone Re-investment Reserve out of the profit for the eligible SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business as per the provisions of the Income tax Act, 1961

n) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the financial year attributable

to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the financial year. The weighted average number of equity shares outstanding during the financial year is adjusted for events including a bonus issue.

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

o) Lease

The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under Ind AS 17

As a lessee

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The company

presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and lease liabilities under financial liability in statement of financial position. (Refer Note 34)

Subsequently, the assets were accounted for in accordance with the accounting policy applicable to that asset. Assets held under other leases were classified as operating leases and were not recognised in the company’s statement of financial position. Payments made under operating leases were recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received were recognised as an integral part of the total lease expense, over the term of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to the ownership of an asset to the Company. All other leases are classified as operating leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments

The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Land under perpetual lease is accounted as finance lease which is recognised at upfront premium paid for the lease and the present value of the lease rent obligation. The corresponding liability is recognised as a finance lease obligation. Land under nonperpetual lease is treated as operating lease.

Operating lease payments for land are recognised as prepayments and amortised on a straightline basis over the term of the lease. Contingent rentals, if any, arising under operating leases are recognised as an expense in the period in which they are incurred.

p) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting done to the Chief Operating Decision Maker. The Company operates in a single operating segment. The board of directors is collectively the company’s ‘Chief Operating Decision maker’ or ‘CODM’ within the meaning of -Ind AS 108.

q) Significant accounting judgements, estimates and assumptions

When preparing the financial information management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

The actual results are likely to differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.

Information about significant judgments, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below:

Significant judgements:

(i) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized. The recognition of deferred tax assets and reversal thereof is also dependent upon management decision relating to timing of availment of tax holiday benefits available under the Income Tax Act, 1961 which in turn is based on estimates of future taxable profits.

(ii) Contingent liabilities

The Company is the subject of certain legal proceedings which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the final outcome of such matters. The cases and claims against the Company often raise difficult and complex factual and legal issues,

which are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law. In the normal course of business, management consults with legal counsel and certain other experts on matters related to litigation and taxes. The Company accrues a liability when it is determined that an adverse outcome is probable, and the amount of the loss can be reasonably estimated.

(iii) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

(iv) Allowance for doubtful debts

The allowance for doubtful debts reflects management’s estimate of losses inherent in its credit portfolio. This allowance is based on Company’s estimate of the losses to be incurred, which derives from past experience with similar receivables, current and historical past due amounts, dealer termination rates, write-offs and collections, the careful monitoring of portfolio credit quality and current and projected economic and market conditions. Should the present economic and financial situation persist or even worsen, there could be a further deterioration in the financial situation of the Company’s debtors compared to that already taken into consideration in calculating the allowances recognized in the financial statements.

(v) Litigation

From time to time, the Company might be subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made, and the amount of the loss can be reasonably estimated. Significant judgement is made

when evaluating, among other factors, the probability of unfavorable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for the changes in facts and circumstances

Sources of estimation uncertainty:

(a) Provisions

At each standalone statement of assets and liabilities date, basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However, the actual future outcome may be different from management’s estimates.

(b) Recoverability of advances/receivables

At each standalone statement of assets and liabilities date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

r) Business combination

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree if any. Acquisition-related costs are expensed as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed if any are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities acquired in a business combination are measured at the basis indicated below:

Deferred tax assets or liabilities, and the assets or liabilities related to employee benefit arrangements

are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for noncontrolling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed.

If the fair value of the net assets acquired is in excess of the aggregate consideration transferred (bargain purchase), the company re-assesses whether it has correctly identified all of the assets acquired an all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in Other Comprehensive Income (OCI) an accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

s) Investments is subsidiaries, joint ventures and associates

Investments in subsidiaries, joint ventures and associates are recognized at cost as per Ind AS 27 Except where investment accounted for at cost shall be accounted for in accordance with Ind AS 105, Non-current Assets Held for Sale and Discontinued Operations, when they are classified as held for sale.

t) Investment and other financial assets

(i) Classification

The Company classifies its financial assets in

the following measurement categories:

i. those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

ii. those measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction cost of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

u) Debt instruments:

Subsequent measurement of debt instruments depends on the Company’s business model for managing the assets and the cash flow characteristics of the assets. The Company classifies it’s debt instruments into following categories:

i. Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent safety payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

ii. Fair value through profit and loss: Assets that do not meet the criteria for amortised cost are measured at fair value to the statement of profit and loss. Interest income from these financial assets is included in other income.

v) Short - term employee obligation

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services are recognised in respect of employees’ services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled

w) Other long - term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees upto the end of the reporting period using the projected unit credit method. The benefits are discounted using the discount rates for Government Securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurement as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

(i) Post - employment obligations

The company operates the following post employment schemes

(a) defined benefits plans such as gratuity and leave encashment, and

(b) defined contribution plans such as provident fund etc.

(ii) Leave and gratuity obligations

The liability or asset recognised in the balance sheet in the respect of defined benefit pension and gratuity plans in the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan asset. The define benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to the market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligations.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retain earnings in the statement of changes in equity and in the balance sheet.

(iii) Defined contribution plans

Defined contribution plans such as provident fund etc., are charged to the Statement of Profit and Loss as and when incurred.

(iv) Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for this benefits. The Company recognises termination benefits at the earlier of the following dates: (a) when the company can no longer withdraw the offer of those benefits; and (b) when the Company recognises cost for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

x) Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities measured at fair value through profit and

loss are recognised immediately in Statement of Profit and Loss.

y) Financial assets

(i) Recognition and initial measurement

The Company initially recognises loans and advances, deposits and debt securities purchased on the date on which they originate. Purchases and sale of financial assets are recognised on the trade date, which is the date on which the Company becomes a party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value. In the case of financial assets not recorded at FVTPL, transaction costs that are directly attributable to its acquisition of financial assets are included therein.

(ii) Classification of financial assets and Subsequent Measurement

On initial recognition, a financial asset is classified to be measured at -

- Amortised cost; or

- Fair Value through Other Comprehensive Income (FVTOCI) - debt investment; or

- Fair Value through Other Comprehensive Income (FVTOCI) - equity investment; or

- Fair Value through Profit or Loss (FVTPL)

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated at FVTPL:

The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument is classified as FVTOCI only if it meets both of the following conditions and is not recognised at FVTPL:

The asset is held within a business model whose objective is achieved by both collecting

contractual cash flows and selling financial assets; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

All equity investments in scope of IND AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which IND AS 103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment. However, on sale/disposal the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

All other financial assets are classified as measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces and accounting mismatch that would otherwise arise.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains and losses arising on remeasurement recognised in statement of profit or loss. The net gain or loss recognised in statement of profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other income’ line item. Dividend on financial assets at FVTPL is recognised when:

• The Company’s right to receive the dividends is established,

• It is probable that the economic benefits associated with the dividends will flow to the entity,

• The dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

Impairment

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is

the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months. If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous year, but determines at the end of a reporting year that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous year, the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument

as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied to debt instruments at FVTOCI except that the loss allowance is recognised in other comprehensive income and is not reduced from the carrying amount in the balance sheet.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL and Interest income is recognised in profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company’s senior management determines change in the business model as a result of external or internal changes which are significant to the Company’s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

A Financial liabilities and equity instruments

a) Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

b) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of directly attributable transaction costs.

c) Financial liabilities

Financial liabilities are classified as measured at amortised cost or ‘FVTPL

A Financial Liability is classified as at FVTPL if it is classified as held-for-trading or it is a derivative (that does not meet hedge accounting requirements) or it is designated as such on initial recognition.

A financial liability is classified as held for trading if:

I t has been incurred principally for the purpose of repurchasing it in the near term; or

On initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

It is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:

Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

It forms part of a contract containing one or more embedded derivatives, and IND AS 109 permits the entire combined contract to be designated as at FVTPL in accordance with IND AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in Statement of Profit and Loss. The net gain or loss recognised in Statement of Profit and Loss incorporates any interest paid on the financial liability and is included in the ‘other gains and

losses’ line item in the Statement of Profit and Loss.

d) Other financial liabilities

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

e) Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

Offsetting financial instrument

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle financial asset and liability on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

(b) Defined Benefit Plans Gratuity

The Company has covered its Gratuity liability under Group Gratuity policy viz ‘Employee Group Gratuity Scheme’ issued by LIC of lndia. As per company policy, an employee on separation (after fulfilling other conditions) is eligible for benefit, which is equal to 15 days salary for each completed year of service. Hence, Gratuity is covered under a defined benefit plan. The Insurance policy represents the plan assets. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation for Leave Encashment is recognised in the same manner as Gratuity.

Compensated Absences

The Company has also provided long term compensated absences which is outstanding.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for gratuity and leave encashment plan:

Note : 37 Financial risk management objectives and policies

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 and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at March 31,2024 and March 31,2023

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31,2023

Interest rate risk

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 and short term debt obligations with floating interest rates.

If the interest rates had been 1% higher / lower and all other variables held constant, impact on the Company’s profit for the year ended 31st March, 2024 will not be significant.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. The Company uses forward exchange contracts to hedge the currency exposure and is therefore not exposed to significant currency risk at the respective reporting dates.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

Foreign currency sensitivity

The following table details the Company’s sensitivity to a 5% appreciation and depreciation in the INR against the relevant foreign currencies net of hedge accounting impact.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where INR strengthens 5% against the relevant currency. For a 5% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Price risk

The Company does not have much exposure to price risk due to annual contracts and pass through mechanism for imports Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

None of the financial instruments of the Company result in material concentrations of credit risk. The company’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

The entity’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due Management monitors rolling forecasts of the entity’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The entity takes into account the liquidity of the market in which the entity operated.

The company has given corporate guarantees against the loans and credit facilities of subsidiaries. These amounts will be payable on default by the concerned entity. As of the reporting date, the subsidiary have not defaulted and hence, the company does not have any present obligation to third parties in relation to such guarantees.

Note : 39. Capital management

The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes made in the objectives, policies or processes for managing capital during the year ended March 31,2024 and March 31,2023.

Note No. 40 - Other statutory information

i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

iii) The Company has not received any funds 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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries

iv) The Company has not advanced or loaned or Invested fund to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries

v) The company has borrowings from banks on the basis of security of current assets.The quarterly returns/statement of current assets filled by the company are in agreement with books of account subject to INDAS and other adjustment as per sanction terms.

vi) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained

vii) The Company does not have any transactions with companies which are struck off

viii) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year

ix) The Company have no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

x) All the title deeds of Immovable properties (other than properties where the Company is the lessee and lease agreements are duly executed in favour of the lessee) are held in the name of the company and the properties are not held in joint name.

xi) The Company has not revalued its intangible assets and accordingly the revaluation as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.

xii) The company has complied provision prescribed under clause (87) of section 2 of the Companies Act, 2013 for maintaining layers of Companies

for the year ended March 31,2024

Notes Accompanying Standalone Financial Statements

('' in Crores unless otherwise stated)

Note : 43. Previous year figures have been regrouped/rearranged where necessary to conform to current year’s classification.

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

As per our report of even date attached

For JMT & Associates Chartered Accountants Firm Registration No. 104167W	For and on behalf of the Board of Directors NEOGEN CHEMICALS LIMITED CIN- L24200MH1989PLC050919
Jayesh J Shah Partner Membership No: 039910	Haridas Kanani Chairman & Managing Director DIN:00185487	Dr. Harin Kanani Managing Director DIN:05136947
Place: Thane Date: 30 April, 2024	Ketan Vyas Chief Financial Officer	Unnati Kanani Company Secretary and Compliance Officer M. no. A35131

i. those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

ii. those measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction cost of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

u) Debt instruments:

Subsequent measurement of debt instruments depends on the Company’s business model for managing the assets and the cash flow characteristics of the assets. The Company classifies it’s debt instruments into following categories:

i. Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent safety payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

ii. Fair value through profit and loss: Assets that do not meet the criteria for amortised cost are measured at fair value to the statement of profit and loss. Interest income from these financial assets is included in other income.

v) Short - term employee obligation

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services are recognised in respect of employees’ services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled

---

Mar 31, 2023

Rights, Preferences & Restriction of each class of shares

(a) The Company has only one class of equity shares having a face value of Rs. 10 per share. Each Shareholder is eligible for one vote per share.

During the year the company issued 16,04,710 equity shares of Rs 10/- each on preferential basis at a premium of Rs @ 1392.12/- per share to the identified investors and the shares were alloted on January 6, 2022 and listed at BSE on January 14,2022 and at NSE on January 13, 2022.

i) First Pari passu charge by way of hypothecation of stocks of raw materials, finished goods, work-in-process and book debts / receivables of the Company, both present and future.

ii) First Pari passu charge on movable properties and immovable properties forming part of the fixed/blocked assets of the Company, both present and future except such properties as may be specifically excluded and except GECL facility from HDFC Bank Limited wherein Second Pari Passu charge is created on movables and immovables.

Working Capital Loans of Rs. 54.00 Crores (Nil as at 31 March 2022) are unsecured.

37. Contingent Liabilities and Commitments		(Rs. in Crores)
Particulars	As at March 31, 2022	As at March 31, 2021
(I) Contingent Liabilities
Contingent liability for Letters of Credit issued by the Bank and Bank Guarantee for Excise,Customs etc.
(i) Letter of credit / Bank Guarantee	9.65	6.53
(ii) Bill discounted / Cheques purchased	2.87	14.10
Total	12.52	20.63
(II) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances).	14.64	52.45

39. Employee Benefit Expenses i Defined Contribution Plan

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Statutory Provident Fund, which is a defined contribution plan. The Company has no obligations other than to make the specified contributions.

ii Defined Benefit Plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

40. Financial Risk Management Framework A Capital Market

For the purpose of the entity''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the company. The primary objective of the entity''s capital management is to maximise the shareholder value. The entity manages its capital structure and make adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The entity''s policy is to keep an optimum gearing ratio.

B Financial Risk Management

The Company''s activities primarily expose it to various risks such as Market Risks, Credit Risk and Liquidity Risk. Those are explained below:

i) Market Risk

Market Risks arise due to Changes in Interest rates, Foreign Exchange rates and changes in Market prices. These are explained below:

Interest Rate Risks

The Company borrows funds in Indian Rupees, to meet short term funding requirements. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly and hence the Company is exposed to Interest rate risks. However, since the borrowings are not significant, the Company does not see any major risk.

If the interest rates had been 1% higher / lower and all other variables held constant, impact on the Company''s profit for the year ended 31st March, 2023 will not be significant.

Foreign Currency Risks

The entity has international transaction and is expected to foreign currency risk arising from foreign currency transaction (Exports & Imports)

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the entity''s functional currency.

The company as per its overall strategy uses forward contracts and swap to mitigate its risks associated with fluctuations in foreign currency and such contracts are not designated as hedge under Ind AS 109.

a Exposure in foreign currency - Unhedged

The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any Derivative Instruments for trading and Speculation purposes.

Currency Risk

The company is exposed to the exchange rate risk as a significant portion of our revenues and expensditure are denominated in foreign currencies. We import certain raw materials the price of which we are required to pay in foreign currency, which is mostly the U.S Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as natural hedge. Any appreciation/depreciation in the value of the Rupees against U.S dollar, Euro , or other foreign currencies would Increase / decrease the Rupee value of debtors/ creditors. To a certain extent the Company uses foreign exchange forward contracts to minimise the risk.

Price Risks

The Company does not have much exposure to price risk due to annual contracts and pass through mechanism for imports

Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the entity.

The entity''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost.

The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit risk arises from cash and cash equivalents, trade receivables, investments carried at amortized cost and deposits with banks and financial institutions.

None of the financial instruments of the Company result in material concentrations of credit risk. The company''s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

The entity''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the entity''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The entity takes into account the liquidity of the market in which the entity operates.

Exposure to liquidity risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments.

41. Operating Lease

The Company has taken office premises, factory land under operating lease. These are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free deposits in accordance with the agreed terms. These Lease have terms of between 1 years to 5 years.

42. Operating Segment Disclosure

The company is in the business of Manufacturing of speciality Chemicals and accordingly has one reportable business segment

43. Additional Regulatory Information Required by Schedule III

a) All the title deeds of Immovable properties (other than properties where the Company is the lessee and lease agreements are duly executed in favour of the lessee) are held in the name of the company and the properties are not held in joint name.

b) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

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

d) The Company has not revalued its intangible assets and accordingly the revaluation as defined under rule 2 of Companies ( Registered Valuers and Valuation) Rules, 2017 is not applicable.

e) The company has not granted loans or advances to its promoters, directors and KMPs and for related parties disclosures refer note 38.

Reason for differences:

There was no material discrepancies between amount reported in the quarterly return and amount as per books of account. However, there was some immaterial discrepancies due to following reason;

• The company has to submit its data to bank within stipulated time lines. Accordingly, the data prevailing as on these reporting dates into books of accounts are submitted to banks for managing compliances and borrowing facility usage.

• Amount as per books of account are after due verification, limited review by Statutory auditors and corrective entries. This generally happens only after the due dates of data submission to bank have passed.

Due to the above facts, there was an identified differences in data submitted to banks and data as per books of accounts.”

g) Wilful defaulter

The company is not declared a wilful defaulter by any bank or financial institution or other lender

h) Details of benami property held

No proceedings have been initiated on or are pending against the comoany for holding benami property under the Benami Transactions

i) Compliance with number of layers of companies

The company does not have any layers prescribed under clause (87) of section 2 of the Companies Act, 2013.

j) Utilisation of borrowed funds and share premium

The company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

l) Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

m) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

o) Corporate social responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are Water Management Programmes , environmental sustainability and agriculture development; Promoting education amongst Children; promoting health care including preventive health care and sanitation and Disaster Management; Contribution towards Combating COVID Pandemic. Supporting Women Empowerment Projects; and Rural Development Projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

p) The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year

q) The Company has assessed the possible impact of COVID-19 on its financial statements based on the internal and external information and concluded no adjustments are required in these standalone financial statements. The Company continues to monitor changes in future economic conditions.

44. (i) Rupees in crores are rounded off nearest to two decimals and totals of notes , schedules may vary due to said rounding off

(ii) Previous period figures have been regrouped / rearranged/recasted wherever necessary, to conform to current period presentation