అకౌంట్స్ గమనికలుShree Pushkar Chemicals & Fertilisers Ltd.

Mar 31, 2025

M. Provisions, Contingent Liabilities and Contingent Assets
General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be
reimbursed, the expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company
does not recognize a contingent liability but discloses its existence in the financial statements. Payments in respect of such
liabilities, if any are shown as advances.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. The
Company does not recognize a contingent asset nor disclose it in the financial statements.

N. Accounting for Taxation of Income
(i) Current taxes

Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that it relates
to items recognized directly in other comprehensive income or equity, in which case it is recognized in other
comprehensive income or equity respectively. Current income tax is recognized at the amount expected to be paid
to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date. The Company offsets, on a year to year basis, the current tax assets and liabilities,
where it has legally enforceable right to do so and where it intends to settle such assets and liabilities on a net basis.

(ii) Deferred taxes

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit and are accounted for using the
balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences,
and deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Company intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

O. Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique

In estimating the fair value of an asset or liability, the Company takes into account the characteristics of the asset or liability
if market participants would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as
assets held for distribution in discontinued operations.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

P. Foreign Currency-Transactions and Balances

The Company''s functional currency is INR and accordingly, the financial statements are presented in INR.

Transactions in foreign currencies are initially recorded by the company in their functional currency spot rates at the date
the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of
exchange at the reporting period. Gains and losses arising on account of differences in foreign exchange rates on settlement/
translation of monetary assets and liabilities are recognised in the Statement of Profit and Loss except exchange differences
on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost
of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was determined. The gain or loss arising on translation
of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair
value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are
also recognised in OCI or profit or loss, respectively).

Q. Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added
to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other
borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

R. Leases

As a lessor

Lease income from operating leases where the Company is a lessor is recognized in income on a straight-line basis over
the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

As a lessee

The Company recognizes 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 end
of the lease term.

The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or
assets or whether the arrangement conveys a right to use the asset. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a time in exchange for a consideration. The Company, at the
inception of a contract, assesses whether the contract is a lease or not lease. For arrangements entered into prior to April
01,2019, the Company has determined whether the arrangement contains a lease on the basis of facts and circumstances
existing on the date of transition.

The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant 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.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a
lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate
for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance
fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase
option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is
reasonably certain to exercise an extension option.

The lease liability is subsequently remeasured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s
estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment
of whether it will exercise a purchase, extension or termination option.

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.

Lease liability and the right of use asset will be separately presented in the balance sheet and lease payments will be
classified as financing activities.

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease
term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises
the lease payments associated with these leases as an expense in standalone statement of profit and loss over the lease
term. The related cash flows are classified as operating activities.

S. Employee Benefits

a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employee''s services up to the end of the reporting period and are measured at the undiscounted amounts of the
benefits expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

b) Other Long-term employee benefit obligations

The liabilities for compensated absences (annual leave) which are not expected to be settled wholly within 12 months
after the end of the period in which the employee render the related service are presented as non-current employee
benefits obligations. They are therefore measured as the present value of expected future payments to be made
in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit
method. The benefits are discounted using the market yields at the end of the reporting period on government bonds
that have terms approximating to the terms of the related obligations. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognised in the Statement of
Profit and Loss.

The obligations are presented as current in the balance sheet, if the Company does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

c) Post- employment obligations

The Company operates the following post-employment schemes:

(i) Defined benefit plans such as gratuity

(ii) Defined contribution plans such as provident fund.

Defined benefit plan - Gratuity Obligations

The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective
employee''s salary and the tenure of employment.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation
is actuarially determined 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 market yields at the end of the reporting period on government bonds that have a terms approximating to the
terms of the obligation.

The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the
fair value of the plan assets, is recognised as employee benefit expenses in the statement of profit and loss.

Remeasurements gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the other comprehensive income in the year in which they arise and are not subsequently reclassified to
Statement of Profit and Loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined Contribution Plan

The Company pays provident fund contributions to publicly administered provident funds as per local regulatory authorities.
The Company has no further obligations once the contributions have been paid. The contributions are accounted for as
defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

T. Earnings Per Share

Basic Earnings per Share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by
the weighted average number of equity shares outstanding during the year.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

• The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• Weighted average number of equity shares that would have been outstanding assuming the conversion of all the
dilutive potential equity.

U. 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 from the date of acquisition), which are subject to an insignificant risk of changes
in value.

V. Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is
no uncertainty in receiving the claims.

W. Segment Reporting

The Company identifies operating segments based on the internal reporting provided to the chief operating decision-maker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses have been identified to segments on the basis of their relationship to the operating activities of
the segment.

X. 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, which
is not 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.

Notes:

1) Working capital loans from State Bank of India Rs. 1,336.81 lakhs (March 31, 2024: Rs.1,179.97 lakhs) carries interest rate

@ 9.10% (March 31, 2024: 8.60% p.a.) and are secured as under:

a) Primary Security:

i) Hypothecation on the entire current assets of the company both present and future on pari-passu 1st charge with
Axis Bank and Kotak Mahindra Bank.

b) Collateral Security:

i) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-102, MIDC, Lote
Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-103, MIDC, Lote
Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-25, MIDC, Lote
Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-97, MIDC, Lote
Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-18, MIDC, Lote
Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) Hypothecation charges on pari-passu basis over Plant & Machinery and entire fixed assets located at B-102/103,
D-25, B-97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of
company.

2) Working capital loans from Axis Bank Ltd. Rs. 1,609.51 lakhs (March 31, 2024: Rs. 1,784.76 lakhs) carries interest rate @

8.75% p.a. (March 31, 2024: 8.75% p.a.) and are secured as under:

a) Primary Security:

i) First Pari-passu charge on the entire current assets of the company with State Bank of India and Kotak Mahindra
Bank, present and future.

b) Collateral Security:

i) First Pari-passu charge on Land & Building located at B-102/103, D-25, D-18, B-97 MIDC, Lote Parshuram, Taluka
Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First Pari-passu charge on Plant & Machinery located at B-102/103, D-25, D-18, B-97 MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

3) Working capital loans from Kotak Mahindra Rs. Nil (March 31, 2024: Rs. -604.70 lakhs) carries interest rate @ 9.10% p.a.

(March 31, 2024: 9.10% p.a.) and are secured as under:

a) Primary Security:

i) First PP hypothecation charge with SBI and Axis on all present and future current assets and moveable fixed assets
of the company.

b) Collateral Security:

i) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at B-102, MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at B-103, MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at D-25, MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at B-97, MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at D-18, MIDC, Lote Parshuram,
Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) Hypothecation charges on pari-passu basis over Plant & Machinery and entire fixed assets located at B-102/103,
D-25, B-97 , & D-18 Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

4) Details of continuing default in the repayment of loans and interest, specifying the period and amount separately in each

case.

There has been no default in the repayment of loans or interest thereon as on date.

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 Fixed deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk
management. The Company is in the business of manufacturing and trading of Chemical, Fertilisers and Dyes intermediate.
Credit quality of a customer is assessed by the management on regular basis with market information and individual credit
limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major
customers are approved by the senior management.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.
The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision
matrix takes into account available external and internal credit risk factors and the Company''s historical experience for
customers.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in
accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for
funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate
financial loss to make payments for vendors.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans
and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with
existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

The table below provides details regarding the maturities of significant financial liabilities as of March 31,2025 & March 31,
2024:

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk
include loans and borrowings and deposits

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 obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and
variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

The exposure of the Company to interest rate changes at the end of the reporting period are as under:

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 its
operating activities. The Company manages its foreign currency risk by hedging the payables when considered necessary.
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. The Company hedges its exposure to fluctuations on the translation into INR
of its foreign payables in foreign currencies and by using foreign currency option or forward contracts.

Equity price risk

The Company''s unlisted equity securities are of subsidiary and deemed cost of the same are taken as previous GAAP
carrying value (i.e. cost of acquisition). The value of the financial instruments is not material and accordingly any change in
the value of these investments will not affect materially the profit or loss of the Company.

Note 43 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium
and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital
management is to maximise the value of the share and to reduce the cost of capital.

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 can adjust the dividend
payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt
divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents.

Note:

1. The Company has issued Corporate Guarantees aggregating to Rs. 4,800.00 lakhs as at year end (March 31, 2024:
Rs. 3,000.00 lakhs) on behalf of Subsidiary M/s Kisan Phosphates Private Limited, Liabilities outstanding for which
Corporate Guarantees have been issued aggregate to Rs. 4,800.00 lakhs as on March 31, 2025 (March 31, 2024: Rs.
3,000.00 lakhs).

2. The Company has issued Corporate Guarantees aggregating to Rs. 6,100.00 lakhs as at year end (March 31,2024: Rs.

6.100.00 lakhs) on behalf of Subsidiary M/s Madhya Bharat Phosphate Private Limited, Liabilities outstanding for which
Corporate Guarantees have been issued aggregate to Rs. 6,100.00 lakhs as on March 31, 2025 (March 31, 2024: Rs.

6.100.00 lakhs).

Note 46 : Segment Information

Operating segments are defined as components of an enterprise for which discrete financial information is available
that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing
performance. Considering the nature of business and integrated manufacturing process of the Company, the Company
considers its products under one segment only i.e. Chemicals & Fertilisers. Accordingly, Segment Reporting in accordance
with Indian Accounting Standard - 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and
adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

III. Sensitivity Analysis

The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of
assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

a. There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

b. The Company has not entered into any transactions with struck off companies during the year.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

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

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

f. 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 or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, 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
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has complied with the number of layers prescribed under clause (87) of the Section 2 of the Companies
Act, 2013 read with the Companies (Restrictions on Number of Layers) Rule, 2017.

h. The Company is not declared wilful defaulter by bank or financial institutions or any lender during the financial year.

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

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

The Company has re-grouped, re-classified and/or re-arranged figures for previous year, wherever required to confirm with
current year''s classification.

The notes referred to above are an integral part of these financial statements.

As per our report of even date attached

For S. K. Patodia & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number: 112723W/W100962

Dhiraj Lalpuria Punit Makharia Gautam Makharia

Partner Chairman & Managing Director Joint Managing Director

Membership Number : 146268 DIN : 01430764 DIN : 01354843

Deepak Beriwala Pankaj Manjani

Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date : May 16, 2025 Date : May 16, 2025

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Mar 31, 2024

M. Provisions, Contingent Liabilities and Contingent Assets General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Payments in respect of such liabilities, if any are shown as advances.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. The Company does not recognize a contingent asset nor disclose it in the financial statements.

N. Accounting for Taxation of Income

(i) Current taxes

Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in other comprehensive income or equity respectively. Current income tax is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The Company offsets, on a year to year basis, the current tax assets and liabilities, where it has legally enforceable right to do so and where it intends to settle such assets and liabilities on a net basis.

(ii) Deferred taxes

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

O. Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique

In estimating the fair value of an asset or liability, the Company takes into account the characteristics of the asset or liability if market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations-

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

P. Foreign Currency-Transactions and Balances

The Company''s functional currency is INR and accordingly, the financial statements are presented in INR.

Transactions in foreign currencies are initially recorded by the company in their functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting period. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognised in the Statement of Profit and Loss except exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

Q. Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

R. Leases

As a lessor

Lease income from operating leases where the Company is a lessor is recognized in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

As a lessee

The Company recognizes 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 end of the lease term.

The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or whether the arrangement conveys a right to use the asset. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. For arrangements entered into prior to April 01, 2019, the Company has determined whether the arrangement contains a lease on the basis of facts and circumstances existing on the date of transition.

The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant 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.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option.

The lease liability is subsequently remeasured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option.

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.

Lease liability and the right of use asset will be separately presented in the balance sheet and lease payments will be classified as financing activities.

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in standalone statement of profit and loss over the lease term. The related cash flows are classified as operating activities.

S. Employee Benefits

a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee''s services up to the end of the reporting period and are measured at the undiscounted amounts of the benefits expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

b) Other Long-term employee benefit obligations

The liabilities for compensated absences (annual leave) which are not expected to be settled wholly within 12 months after the end of the period in which the employee render the related service are presented as noncurrent employee benefits obligations. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligations. Re-measurements as a result of experience adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognised in the Statement of Profit and Loss.

The obligations are presented as current in the balance sheet, if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

c) Post- employment obligations

The Company operates the following post-employment schemes:

(i) Defined benefit plans such as gratuity.

(ii) Defined contribution plans such as provident fund.

Defined benefit plan - Gratuity Obligations

The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is actuarially determined 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 market yields at the end of the reporting period on government bonds that have a terms approximating to the terms of the obligation.

The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets, is recognised as employee benefit expenses in the statement of profit and loss.

Remeasurements gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the other comprehensive income in the year in which they arise and are not subsequently reclassified to Statement of Profit and Loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined Contribution Plan

The Company pays provident fund contributions to publicly administered provident funds as per local regulatory authorities. The Company has no further obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

T. Earnings Per Share

Basic Earnings per Share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

• The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• Weighted average number of equity shares that would have been outstanding assuming the conversion of all the dilutive potential equity.

U. 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 from the date of acquisition), which are subject to an insignificant risk of changes in value.

V. Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

W. Segment Reporting

The Company identifies operating segments based on the internal reporting provided to the chief operating decisionmaker.

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

X. 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, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Notes:

1) Working capital loans from State Bank of India Rs. 1,179.97 lakhs (March 31, 2023: Rs. Nil) carries interest rate @ 8.60%

(March 31, 2023: 7.70% p.a.) and are secured as under:

a) Primary Security:

i) Hypothecation on the entire current assets of the company both present and future on pari-passu 1st charge with Axis Bank and Kotak Mahindra Bank.

b) Collateral Security:

i) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-102, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank)on Land & Building located at B-103, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-25, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) First pari-passu charge (with Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) Hypothecation charges on pari-passu basis over Plant & Machinery and entire fixed assets located at B-102/103, D-25, B-97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

2) Working capital loans from Axis Bank Ltd. Rs. 1,784.76 lakhs (March 31, 2023: Rs. 554.01 lakhs) carries interest rate @

8.75% p.a. (March 31, 2023: 9.20% p.a.) and are secured as under:

a) Primary Security:

i) First Pari-passu charge on the entire current assets of the company with State Bank of India and Kotak Mahindra Bank, present and future.

b) Collateral Security:

i) First Pari-passu charge on Land & Building located at B-102/103, D-25, D-18, B-97 MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First Pari-passu charge on Plant & Machinery located at B-102/103, D-25, D-18, B-97 MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

3) Working capital loans from Kotak Mahindra Rs. -604.70 lakhs (March 31, 2023: Rs. Nil) carries interest rate @ 9.10% p.a.

(March 31, 2023: 8.40% p.a.) and are secured as under:

a) Primary Security:

i) First PP hypothecation charge with SBI and Axis on all present and future current assets and moveable fixed assets of the company.

b) Collateral Security:

i) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at B-102, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at B-103, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with SBI Bank and Axis Bank) on Land & Building located at D-25, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

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 Fixed deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company is in the business of manufacturing and trading of Chemical, Fertilisers and Dyes intermediate. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

The table below provides details regarding the maturities of significant financial liabilities as of March 31,2024 & March 31, 2023:

Market Risk

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings and deposits

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 obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

The exposure of the Company to interest rate changes at the end of the reporting period are as under:

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 its operating activities. The Company manages its foreign currency risk by hedging the payables when considered necessary. 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. The Company hedges its exposure to fluctuations on the translation into INR of its foreign payables in foreign currencies and by using foreign currency option or forward contracts.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Note 43 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the value of the share and to reduce the cost of capital.

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 can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note:

1. The Company has issued Corporate Guarantees aggregating to Rs. Nil as at year end (March 31, 2023: Rs. Nil) on behalf of Mrs. Bhanu Makharia, a relative of KMP, Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. Nil as on March 31, 2024 (March 31, 2023: Rs. Nil).

2. The Company has issued Corporate Guarantees aggregating to Rs. 3,000.00 lakhs as at year end (March 31, 2023: Rs. 4,900.00 lakhs) on behalf of Subsidiary M/s Kisan Phosphates Private Limited, Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. 3,000.00 lakhs as on March 31, 2024 (March 31,2023: Rs. 4,900.00 lakhs).

3. The Company has issued Corporate Guarantees aggregating to Rs. 6,100.00 lakhs as at year end (March 31, 2023: Rs. 4,925.00 lakhs) on behalf of Subsidiary M/s Madhya Bharat Phosphate Private Limited, Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. 6,100.00 lakhs as on March 31, 2024 (March 31, 2023: Rs. 4,925.00 lakhs).

Note 46 : Segment Information

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilisers. Accordingly, Segment Reporting in accordance with Indian Accounting Standard - 108 "Operating Segment" issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

III. Sensitivity Analysis

The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

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

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

f. 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 or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has complied with the number of layers prescribed under clause (87) of the Section 2 of the Companies Act, 2013 read with the Companies (Restrictions on Number of Layers) Rule, 2017.

h. The Company is not declared wilful defaulter by bank or financial institutions or any lender during the financial year.

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

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

^j. obtained.

Note 55 : Previous Years'' Figures

The Company has re-grouped, re-classified and/or re-arranged figures for previous year, wherever required to confirm with current year''s classification.

The notes referred to above are an integral part of these financial statements.

As per our report of even date attached

For S. K. Patodia & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number: 112723W/W100962

Dhiraj Lalpuria Punit Makharia Gautam Makharia

Partner Chairman & Managing Director Joint Managing Director

Membership Number : 146268 DIN : 01430764 DIN : 01354843

Deepak Beriwala Nitesh Pangle

Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date : May 16, 2024 Date : May 16, 2024

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Mar 31, 2023

(i) The fair value of quoted mutual fund units are based on quoted net asset value at the reporting date.

(ii) The strategic investments in subsidiaries have been taken at cost.

(iii) The market price of a bond is determined using the current interest rate compared to the interest rate stated on the bond.

(iv) Terms of conversion : 1,22,999 Compulsorily Convertible Debenture will be converted into 36,95,883 equity shares of the company, Kisan Phosphates Private Limited after a period of 5 years. After conversion into equity shares it shall rank pari passu with the existing equity shares of the company, Kisan Phosphates Private Limited.

(v) Investment at fair value through profit and loss reflect investment in quoted and unquoted equity securities, bonds and quoted mutual fund units.

(a) Terms / rights attached to:

Equity Shares

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

Amount standing in the Capital Reserve account pertains to the money received by the Company against share warrants amounting to Rs. 29.77 lakhs that was transferred to Capital Reserve during the financial year 2012-13 and 2019-20 due to non-allotment of equity shares.

The amount standing in the Securities Premium account pertains to the premium received on issue of shares during the previous years. In the current year the amount of Rs. 1421.05 lakhs was credited to securities premium account against issuance of 7,89,473 shares at a premium of Rs.180.00 each.

1) Working capital loans from State Bank of India Rs. Nil (March 31,2022: Rs. 578.08 lakhs) carries interest rate @ 7.70%

(March 31,2022: 7.00% p.a.) and are secured as under:

a) Primary Security:

i) Hypothecation on the entire current assets of the company both present and future on pari-passu 1st charge with Axis Bank, Kotak Mahindra Bank and DBS Bank.

b) Collateral Security:

i) First pari-passu charge (with Axis Bank, Kotak Mahindra Bank and DBS Bank) on Land & Building located at B-102, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with Axis Bank, Kotak Mahindra Bank and DBS Bank)on Land & Building located at B-103, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with Axis Bank, Kotak Mahindra Bank and DBS Bank) on Land & Building located at D-25, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) First pari-passu charge (with Axis Bank, Kotak Mahindra Bank and DBS Bank) on Land & Building located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) First pari-passu charge (with Axis Bank, Kotak Mahindra Bank and DBS Bank) on Land & Building located at D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) Hypothecation charges on pari-passu basis over Plant & Machinery and entire fixed assets located at B-102/103, D-25, B-97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the

company.

2) Working capital loans from Axis Bank Ltd. Rs. 554.01 lakhs (March 31,2022: Rs. 1158.33 lakhs) carries interest rate @

9.20% p.a. (March 31, 2022: 7.00% p.a.) and are secured as under:

a) Primary Security:

i) First Pari-passu charge on the entire current assets of the company.

b) Collateral Security:

i) First Pari-passu charge on Land & Building located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) Second Pari-passu charge on Land & Building located at B-102/103, D-25, D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) Second Pari-passu charge on Plant & Machinery located at B-102/103, D-25, D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the

company.

3) Working capital loans from Kotak Mahindra Rs. Nil (March 31, 2022: Rs. Nil) carries interest rate @ 8.40% p.a. (March

31, 2022: 7.20% p.a.) and are secured as under:

a) Primary Security:

i) Hypothecation on the entire current assets of the company both present and future on pari-passu 1st charge with SBI Bank, Axis Bank, and DBS Bank.

b) Collateral Security:

i) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank) on Land & Building located at B-102, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank)on Land & Building located at B-103, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank) on Land & Building located at D-25, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank) on Land & Building located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank) on Land & Building located at D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) First pari-passu charge (with SBI Bank, Axis Bank, and DBS Bank) on Land & Building located at D-10, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vii) Hypothecation charges on pari-passu basis over Plant & Machinery and entire fixed assets located at B-102/103, D-25, B-97 , D-18 & D-10, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the

company.

4) Working capital loans from DBS Bank Rs. Nil (March 31, 2022: Rs. Nil) carries interest rate @ 8.55% p.a.(March 31,

2022: 7.20% p.a.) and are secured as under:

a) Primary Security:

i) Hypothecation on the entire current assets of the company both present and future on pari-passu 1st charge with SBI Bank, Axis Bank, and Kotak Mahindra Bank.

b) Collateral Security:

i) Equitable mortgage by way of first pari-passu (with SBI Bank, Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-102, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) Equitable mortgage by way of first pari-passu charge (with SBI Bank, Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-103, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) Equitable mortgage by way of first pari-passu charge (with SBI Bank, Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-25, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) Equitable mortgage by way of first pari-passu charge (with SBI Bank, Axis Bank and Kotak Mahindra Bank) on Land & Building located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) Equitable mortgage by way of first pari-passu charge (with SBI Bank, Axis Bank and Kotak Mahindra Bank) on Land & Building located at D-18, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

vi) Hypothecation charges on first pari-passu basis over Plant & Machinery, Office Equipment''s, Furniture & Fixtures & all other fixed assets located at B-102/103, D-25, B-97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company.

d) 10% of SBLC limits in form of Fixed deposits lien marked in favour of bank.

5) Details of the aggregate of each loan guaranteed by directors or others, each head-wise.

All the loans repayable on demand from banks amounting to Rs. 554.01 lakhs (March 31, 2022: Rs.1709.03 lakhs) guaranteed by Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company.

6) Details of continuing default in the repayment of loans and interest, specifying the period and amount separately in each case.

There has been no default in the repayment of loans or interest thereon as on date.

Note: The above investments are quoted instruments in active markets and the same is recognised at fair value. Fair value measurement is done considering the Level -1 of Fair Value Hierarchy as per the Ind-AS 113.

Note 42 : Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the 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 Fixed deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company is in the business of manufacturing and trading of Chemical, Fertilisers and Dyes intermediate. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company''s historical experience for customers.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings and deposits

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 obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

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 its operating activities. The Company manages its foreign currency risk by hedging the payables when considered necessary. 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. The Company hedges its exposure to fluctuations on the translation into INR of its foreign payables in foreign currencies and by using foreign currency option or forward contracts.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Equity price risk

The Company''s unlisted equity securities are of subsidiary and deemed cost of the same are taken as previous GAAP carrying value (i.e. cost of acquisition). The value of the financial instruments is not material and accordingly any change in the value of these investments will not affect materially the profit or loss of the Company.

Note 43 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the value of the share and to reduce the cost of capital.

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 can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Cases pending before appellate authorities in respect of which the Company has filed appeals.

* On the basis of current status of individual case for respective years and as per legal advice obtained by the Company, wherever applicable, the Company is confident of winning the above cases and is of the view that no provision is required in respect of above cases.

(b) Bank guarantee given by the banks on behalf of the Company amounting to Rs. 746.85 lakhs (March 31, 2022: Rs. 547.75 lakhs) to suppliers of goods and services, the Electricity Board and Customs Authority.

Note:

1. The Company has issued Corporate Guarantees aggregating to Rs. Nil as at year end (March 31,2022: Rs. 511 lakhs) on behalf of Mrs. Bhanu Makharia, a relative of director. Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. Nil as on March 31,2023 (March 31, 2022: Rs. 16.32 lakhs).

2. The Company has issued Corporate Guarantees aggregating to Rs. 4,900.00 lakhs as at year end (March 31, 2022: Rs. 5,500.00 lakhs) on behalf of Subsidiary M/s Kisan Phosphates Private Limited. Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. 4,900.00 lakhs as on March 31, 2023 (March 31, 2022: Rs. 4,700.00 lakhs).

3. The Company has issued Corporate Guarantees aggregating to Rs. 4,925.00 lakhs as at year end (March 31, 2022: Rs. 7,275.00 lakhs) on behalf of Subsidiary M/s Madhya Bharat Phosphate Private Limited. Liabilities outstanding for which Corporate Guarantees have been issued aggregate to Rs. 4,925.00 lakhs as on March 31,2023 (March 31, 2022: Rs. 7,275.00 lakhs).

Note 46 : Segment Information

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilisers. Accordingly, Segment Reporting in accordance with Indian Accounting Standard - 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

III. Sensitivity Analysis

The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Note 49 : Expenditure on Corporate Social Responsibility

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 eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the Companies Act, 2013.

Note 53 : Statutory Information

a. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

b. The Company has not entered into any transactions with struck off companies during the year.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

period.

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

e. The Company does not have any such transaction which is not recorded in the books of accounts that has been

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

f. 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 or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has complied with the number of layers prescribed under clause (87) of the Section of the Companies Act read with the Companies (Restrictions on Number of Layers) Rule, 2017.

h. The Company is not declared wilful defaulter by bank or financial institutions or any lender during the financial year.

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

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

Note 55 : Previous Years'' Figures

The Company has re-grouped, re-classified and/or re-arranged figures for previous year, wherever required to confirm with current year''s classification.

The notes referred to above are an integral part of these financial statements.

---

Mar 31, 2018

Note 1: Company Overview

Shree Pushkar Chemicals & Fertilisers Limited (the “Company”) is a Public Limited Company domiciled in India and incorporated on March 29, 1993 under the provisions of Companies Act, 1956. The Company is engaged in the business of manufacturing and trading of Chemicals, Dyes and Dyes Intermediate, Cattle Feeds, Fertilisers and Soil Conditioner. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited

Note 2 : First Time Adoption of Ind-AS

For all periods up to March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) Indian GAAP (“IGAAP”). These standalone financial statements of Shree Pushkar Chemicals and Fertilizers Limited for the year ended March 31, 2018 have been prepared in accordance with Ind-AS. This is the first set of Financial Statements in accordance with Ind-AS. For the purpose of transition from the IGAAP to Ind-AS, the Company has followed guidance provided in Ind-AS 101 - First Time Adoption of Indian Accounting Standards, w.e.f. April 01, 2016 as the transition date.

The transition to Ind-AS has resulted in changes in the presentation of the financial statements, disclosures in the notes, accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the standalone financial statements for the year ended on March 31, 2018 as well as for March 31, 2017 for comparative information. In preparing these financial statements, opening balance sheet was prepared as at 1 April 2016. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended March 31, 2017.

Exemptions on first time adoption of Ind-AS availed in accordance with Ind-AS 101, have been described below: Exemptions availed on first time adoption of Ind AS 101

Ind-AS 101 allows certain optional exemptions and mandatory exemptions on first time adoption of Ind-AS from the retrospective application of certain provisions of Ind-AS. The Company has accordingly applied the following exemptions: Ind AS optional exemptions:

(i) Property, Plant and Equipment and Intangible Assets

Ind-AS 101 permits, a first time adopter to elect to continue with the carrying values for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind-AS 38 Intangible Assets and Investment properties covered by Ind-AS 40 Investment Properties.

Accordingly, the Company has elected to measure all of its property, plant and equipment, Investment properties and intangible assets at their previous GAAP carrying value.

(ii) Measurement of Investment in subsidiaries, associates and joint ventures

Ind-AS allows entity that subsequently measures an investment in a subsidiary, joint ventures or associate at cost, may measure such investment at cost (determined in accordance with Ind-AS 27) or deemed cost (fair value or previous GAAP carrying amount) in its separate opening Ind-AS balance sheet.

For investments in equity instruments of subsidiary, the Company has elected to apply separate exemption available under Ind-AS 101 by measuring at their previous GAAP carrying amount, which is the deemed cost at the date of transition to Ind-AS.

Ind AS mandatory exceptions:

(i) Estimates

An entity''s estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind-AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind-AS at the date of transition as these were not required under previous GAAP:

- Impairment of financial assets based on expected credit loss model.

(ii) Classification and measurement of financial assets

Ind-AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and

Note 3 : Reconciliations Between Previous GAAP and Ind-AS

The following reconciliations provides the effect of transition to Ind-AS from IGAAP in accordance with Ind-AS 101:

A. Equity as at beginning of April 1, 2016

B. Equity as at March 31, 2017

C. Net profit for the year ended March 31, 2017

D. Cash flows for the year ended March 31, 2017

Notes :

1. Other Non Current Financial Assets

Under Indian GAAP, deposits were recorded at absolute amount of deposit paid. Under Ind-AS, deposits are recorded at present value by discounting the amount of security deposit paid at an appropriate discounting rate. Accordingly effect of the same has been effected by reducing other non-current finacial assets by INR 8.45 lakhs and a corresponding increase in other current assets as prepaid expenses as at April 1, 2016.

2. Trade Receivables

Under Indian GAAP, the Company has created provision for impairment of trade receivables consists only in respect of specific amount for incurred losses. Under Ind-AS, impairment allowance has been determined based on Expected Credit Loss model (ECL). Accordingly, trade receivables have been reduced by INR 44.27 lakhs with a corresponding decrease in retained earnings of INR 29.22 lakhs and deferred tax liability of INR 15.05 lakhs as at April 1, 2016.

Notes :

1. Other Non Current Financial Assets

Under Indian GAAP, deposits were recorded at absolute amount of deposit paid. Under Ind-AS, deposits are recorded at present value by discounting the amount of security deposit paid at an appropriate discounting rate. Accordingly effect of the same has been effected by reducing other non-current finacial assets by INR 26.43 lakhs and a corresponding increase in other current assets as prepaid expenses as at March 31,2017

2. Trade Receivables

Under Indian GAAP, the Company has created provision for impairment of trade receivables consists only in respect of specific amount for incurred losses. Under Ind-AS, impairment allowance has been determined based on Expected Credit Loss model (ECL). Accordingly, trade receivables have been reduced by INR 98.20 lakhs with a corresponding decrease in retained earnings of INR 64.21 lakhs and deferred tax liability of INR 33.99 lakhs as at March 31, 2017.

3. Secured Loan

Under Indian GAAP, transaction costs incurred in connection with borrowings are charged to profit or loss/ capitalised as and when incurred. Under Ind-AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss/ capitalised using the effective interest method. Accordingly, borrowings have been decreased by INR 0.25 lakhs with a corresponding increase in retained earnings of INR 0.16 lakhs, decrease in deferred tax liability of INR 0.09 lakhs as at March 31, 2017.

Notes :

1. Excise Duty and Cash Discount

As per the requirements of Ind-AS 109 to measure revenue at the fair value of the consideration received or receivable cash discount of Rs.712.45 is netted off from revenue under the head "Gross Revenue from Operations" and corresponding decrease is made in other expenses during the financial year 2016-17.Also Excise duty of INR 3,556.10 lacs on account of sale of goods has been included in revenue as it is on own account because it is liability of the manufacturer which forms part of the production, irrespective of whether goods are sold or not.

2. Interest Income on Deposits

As per the requirements of Ind-AS 109, notional income of INR 5.45 Lakhs for interest on deposits for rent under the head "Other Income" is recognised during the financial year 2016-17.

3. Other comprehensive income (OCI)

Concept of other comprehensive income did not exist under Indian GAAP. Under Ind-AS, all items of income and expenses recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income or expenses that are not recognised in profit or loss but are shown in the statement of profit and loss as ''Other comprehensive income'' includes remeasurement of defined employee benefits plans. The amount related to remeasurement of defined employee benefit plan of INR 11 lakhs and tax effect of INR 3.81 lakhs on the same is presented as part of OCI during the financial year 2016-17.

4. Finance Costs

Ind-AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of interest expense by applying the effective interest method.

5. Deferred Tax

Various Ind-AS transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in relation to the underlying transaction either in retained earnings or a separate component of equity. Effect of timing difference is considered for calculation of deferred tax for the financial year 2016-17.

1 Asset under construction

Capital Work In Progress as at March 31, 2018 comprises expenditure for capacity enhancement of Unit III and Unit IV situated at Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra,

2 Property, Plant and Equipments pledged/ mortgaged as security

All Property, Plant and Equipment are subject to a first charge/ collateral to secure the loans taken by the Company.

Note (i) The fair value of quoted mutual fund units are based on quoted net asset value at the reporting date.

(ii) The strategic investments in subsidiaries have been taken at cost.

(iii) Terms of conversion : 1,22,999 Compulsorily Convertible Debenture will be converted into 36,95,883 equity shares of the company, Kisan Phosphates Private Limited after a period of 5 years.After conversion into equity shares it shall rank pari passu with the existing equity shares of the company,Kisan Phosphates Private Limited.

(iv) Investment at fair value through profit and loss reflect investment in quoted and unquoted equity securities and quoted mutual fund units.

Trade Receivables are non interest bearing and terms are generally from 60 to 90 days.

Receivables outstanding for a period exceeding six months mainly includes Rs.796.94 lakhs (March 31, 2017 : Rs. 797.05 lakhs, April 1,2016: Rs. 0.11 lakhs) related to dues from Huntsman International (India) Private Limited and Rs. Nil (March 31, 2017 : Rs. 533.20 lakhs, April 1,2016 : Rs. 323.06 lakhs) related to dues from Shriram Fertilisers & Chemicals Limited (on account of subsidy receivable).

In case of Huntsman International (India) Private Limited, the Company has filed a summary suit in the Hon''ble Bombay High Court against it for recovery of its unpaid dues. The said suit is pending for trial in the said Court.

In matter of suit filed by Huntsman International (India) Private Limited against the Company, the Hon''ble High Court of Delhi has awarded the order in favour of the Company on February 21, 2018 wherein the suit has been dismissed / the plaint returned to plaintiff for filing in the Court of appropriate territorial jurisdiction. Accordingly, the Company''s management is very confident for recovery of these unpaid dues and an order in the Company''s favour.

In case of Shriram Fertilisers & Chemicals Limited, the subsidy is related to sale of Single Super phosphate (SSP) and as per the management''s view, the Company is receiving subsidy regularly and the balance amount has been recovered as on date. Therefore, the management has not considered these balances as doubtful.

(a) Terms / rights attached to:

Equity Shares

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

During the year ended March 31, 2018, the amount of per share dividend recognised as distributions to Equity Shareholders is Rs. 1.5/- per share of Rs.10/- each for the year ended March 31, 2017.

During the year ,the company has received share application money in cash from its directors against preferential issue of 1,89,062 equity shares for which the allotment is pending as on March 31, 2018.

Further, the company has received consideration other than cash i.e. in the form of 27.10 lakh equity shares of Kisan Phosphates Private Limited amounting to Rs. 902.43 lakhs for which the company has to allot 4,26,540 shares to the shareholder''s of Kisan Phosphates Private Limited

Notes:

1) Working capital loans from State Bank of India of Rs. 1,511.81 Lakhs (March 31, 2017: Rs. 1,414.38 Lakhs, April 1, 2016: Rs. 1,042.78 Lakhs) carrying interest rate of 9.20% (March 31, 2017: 10.60% p.a., April 1, 2016 :10.80% p.a) and are secured as under:

a) Primary Security:

i) Hypothecation of the entire current assets of the company on paripassu basis with IDBI Bank and Axis Bank .

b) Collateral Security:

i) Equitable mortgage by way of pari-passu (with IDBI Bank & Axis Bank) on Land & Building of the company located at :

- B-102 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company

- B-103 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- D-25 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- B-97 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- D-18 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) Hypothecation charges on pari-passu basis over plant & machinary,Office Equipments,Furniture & Fixtures & all other fixed assets located at

- B102/103, D25, B97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company

2) Working capital loans from IDBI Bank Limited Rs. (31.94) Lakhs (March 31, 2017: Rs. 0.76 Lakhs,April 1, 2016: Rs. 690.67 Lakhs) carrying interest rate of 8.75% p.a.(March 31, 2017 :10.60% p.a. ; April 1, 2016 : 11.80% p.a) and are secured as under:

a) Primary Security:

i) Hypothecation of the entire current assets of the company on paripassu basis with State Bank Of India and Axis Bank .

b) Collateral Security:

i) Equitable mortgage by way of pari-passu (with State Bank Of India & Axis Bank) on Land & Building of the company located at :

- B-102 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company

- B-103 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- D-25 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- B-97 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

- D-18 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

ii) Hypothecation charges on pari-passu basis over plant & machinary,Office Equipments,Furniture & Fixtures & all other fixed assets located at :

- B102/103, D25, B97 & D-18, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

c) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company

3) Working capital loans from Axis Bank Ltd. Rs. 497.66 Lakh (March 31, 2017: Rs. Nil Lakh, April 1, 2016: Rs. Nil lakh) carrying interest rate of 8.20% p.a.(March 31, 2017 :Nil ; March 31, 2016 : Nil) and are secured as under:

a) Primary Security:

i) First Pari-passu charge on the entire current assets of the company.

ii) First Pari-passu charge on Land & Building of the company located at B-97 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

iii) Second Pari-passu charge on Land & Building of the company located at B-102/103, D-25, D-18 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

iv) Second Pari-passu charge on Plant & Machinary located at B-102/103, D-25, D-18 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

b) Personal Guarantee of Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company

4) Details of the aggregate of each loan guaranteed by directors or others, each head-wise.

All the loans repayable on demand from banks amounting to Rs.1977.52 Lakhs (March 31,2017: Rs.390.44 Lakhs ; April 1,2016 : 737.08 Lakhs) guaranteed by Mr. Punit Makharia and Gautam Makharia, Chairman and Joint Managing Director of the company

5) Details of continuing default in the repayment of loans and interest, specifying the period and amount separately in each case.

There has been no default in the repayment of loans or interest thereon as on date.

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables.The main purpose of these financial liabilities is to finance the Company''s operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

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 Fixed deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company is in the business of manufacturing and trading of Chemical,Fertilisers and Dyes intermediate. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 11.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company''s historical experience for customers.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements. The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2018, March 31, 2017 and April 1, 2016:

Market Risk

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings and deposits 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 obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest.The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

The exposure of the Company to interest rate changes at the end of the reporting period are as under:

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 to purchase of raw material of chemical and fertiliser products from out of the India. The Company manages its foreign currency risk by hedging the payables as an when considered necessary. 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. The Company hedges its exposure to fluctuations on the translation into INR of its foreign payables in foreign currencies and by using foreign currency option or forward contracts.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Equity price risk

The Company''s unlisted equity securities are of subsidiary and deemed cost of the same are taken as previous GAAP carrying value (i.e. cost of acquisition). The value of the financial instruments is not material and accordingly any change in the value of these investments will not affect materially the profit or loss of the Company.

Note 4 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the value of the share and to reduce the cost of capital.

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 can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

(b) Bank guarantee given by the banks on behalf of the Company amounting to Rs.328.19 Lakhs (March 31, 2017: 242.87 Lakhs, April 01, 2016: 378.71 Lakhs) to suppliers of goods and services, the Electricity Board and Customs Authority.

(c) A customer, Huntsman International (India) Private Limited, of the Company had filed Civil suit with the Hon''ble High Court of Delhi at New Delhi for Injunction and Damages for Rs. 300.00 lakhs against Abiss Textile Solutions Private Limited (a company promoted by two promoters of the Company), the Company and its promoters for allegedly using confidential and proprietary information of the customer for manufacturing, marketing and selling Dye products and for other consequential relief. The Hon''ble High Court of Delhi had granted an ex-parte interim injunction in this matter till the next date of hearing to Huntsman International (India) Private Limited vide its order dated May 24, 2016.

On the other hand, the Company has also filed Summary Suit with Hon''ble Bombay High Court on July 20, 2016 for recovery of unpaid dues against Huntsman International (India) Private Limited, Damage and Defamation suit with Hon''ble Bombay High Court on September 8, 2016 for claim of Rs. 25,000 lakhs for malafide intention behind damaging and defaming image of the Company against Huntsman International (India) Private Limited and also filed Criminal Cheating case against Huntsman International (India) Private Limited and its directors and officers.

The Company''s management was of the view that the claim of Huntsman International (India) Private Limited is not justifiable and will not sustain as the Company and Huntsman International (India) Private Limited are Mumbai-based parties and they will not be covered under the jurisdiction of Delhi High Court. The same view has been enumerated in the judgement order passed by the Hon''ble High Court of Delhi vide its order dated February 21, 2018. The suit filed by Huntsman International (India) Private Limited has been dismissed / the plaint returned to plaintiff for filing in the Court of appropriate territorial jurisdiction. With the dismissal of this suit, the ex-parte interim order for injunction in this matter stands vacated and thus there is no case against the company by Huntsman lnternational (lndia) Private Limited. Therefore, there are no contingent liabilities as on date in this respect which needs to be reported.

Note:

1. The Company has issued Corporate Guarantees aggregating to Rs. 511 Lakhs as at year end (March 31, 2017: Rs. 511 Lakhs, April 01, 2016: Rs. 511 Lakhs) on behalf of Mrs. Bhanu Makharia, a relative of director. Liabilities outstanding for which Corporate Guarantees have been issued aggregates Rs. 136.89 Lakhs as on March 31, 2018 (March 31, 2017: Rs. 155.42 Lakhs, April 01, 2016: Rs. 181.73 Lakhs).

2 The Company has issued Corporate Guarantees aggregating to Rs. 3,100.00 Lakhs as at year end (March 31, 2017: Rs. Nil Lakhs, April 01, 2016: Rs. Nil Lakhs) on behalf of Subsidiary M/s Kisan Phosphates Private Limited.

Note 5 : Segment Information:

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group''s chief operating decision maker is the Chief Executive Officer and Managing Director. Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilisers. Accordingly, Segment Reporting in accordance with Ind Accounting Standard - 108 "Operating Segment" issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

IV. Sensitivity Analysis

The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

V. Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed:

Interest risk

A decrease in the market yields in the government bond will increase the plan liability.

Longevity risk

The present value of defined benefit plan liability is calculated using a discount rate which is determined by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

The present value of defined benefit plan liability is calculated using a discount rate which is determined by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Note 6 : Expenditure on Corporate Social Responsibility:

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 eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year - Rs. 65.72 Lakhs (March 31,2017: Rs. 44.04 Lakhs)

Note 7 : Previous Years'' Figures:

The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The Company has adopted Ind-AS on April 1, 2017 with the transition date as April 1, 2016, and adoption was carried out in accordance with Ind-AS 101 - First Time Adoption of Indian Accounting Standards. The previous period''s figures have been regrouped or rearranged wherever necessary.

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Mar 31, 2016

NOTE 1 : SHARE CAPITAL

(a) Terms / rights attached to equity shares:

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

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

(d) The Company completed its Initial Public Offering (IPO) pursuant to which 1,07,69,200 equity shares of the Company of Rs.10 each were allotted at a price of Rs. 65 per equity share consisting of a fresh issue of 87,42,611 equity shares and an offer for sale of 20,26,589 equity shares. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 10, 2015._

(a) Nature of security and terms of repayment for Secured Borrowings :

Nature of Security Terms of Repayment

Rupee Term loan from State Bank of India amounting to Rs. 2 Lacs The Principal is repayable in monthly

(March 31, 2015: Rs. 22 Lacs) secured by way of Equitable mortgage of installments of Rs. 2.00 Lacs each. The Factory Land & Building situated at MIDC, Lote Parshuram, Taluka Khed, term loan carry interest rate @ Base Rate District Ratnagiri, Maharashtra standing in the name of the Company and 3.60%.

Hypothecation charge on Plant & Machinery and other movable assets situated at above plants.

-Personal guarantee of Mr. Punit Makharia and Mr. Gautam Makharia

(Promoter Directors of the Company)__

Rupee Term Loan from ICICI Bank amounting to Rs. 8.68 lacs (March 31, Repayable in 47 monthly installments, Rate 2015 : Rs. 24.65 lacs) secured by the vehicles purchased from the loan of interest 11.25% p.a.

proceedings.__

Rupee Term Loan from HDFC Limited Bank amounting to Rs. Nil (March Repayable in 36 monthly installments, Rate 31, 2015 : Rs.0.47 lacs) secured by the vehicles purchased from the loan of interest 11% p.a.

proceedings.__

Rupee Term Loan from HDFC Bank Limited amounting to Rs. 0.29 lacs Repayable in 36 monthly instalments, Rate (March 31, 2015 : Rs.1.90 lacs) secured by the vehicles purchased from of interest 10.50% p.a.

the loan proceedings.__

Rupee Term Loan from Reliance Capital Limited amounting to Rs. Nil Repayable in 35 monthly instalments, Rate (March 31, 2015 : Rs.2.24 lacs) secured by the vehicles purchased from of interest 12.53% p.a.

the loan proceedings.__

Rupee Term Loan from Kotak Mahindra Prime Limited amounting to Rs. Nil Repayable in 35 monthly installments, Rate (March 31, 2015 : Rs.1.44 lacs) secured by the vehicles purchased from of interest 11.64% p.a.

the loan proceedings.__

Rupee Term Loan from Volkswagen Finance Private Limited amounting Repayable in 36 monthly installments, Rate to Rs.6.67 lacs (March 31, 2015 : Rs.14.05 lacs) secured by the vehicles of interest 10.43% p.a.

purchased from the loan proceedings.__

Notes:

1) Working capital loans from State Bank of India Rs. 1,042.78 Lakh (March 31, 2015: Rs. 1,005.06 Lakh) carries interest rate

@ 10.80% p.a. and are secured as under:

a) Primary Security:

i) Hypothecation of the entire current assets of the company on paripassu basis with SBT and IDBI Bank.

b) Collateral Security:

i) Equitable mortgage of Factory Land and Building and the asset thereon, both present and future, located at B-97, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri

ii) Equitable mortgage by way of second pari-passu (with SBT & IDBI Bank) on Land & Building of the company located at B-102 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iii) Equitable mortgage by way of second pari-passu (with SBT & IDBI Bank) on Land & Building of the company located at B-103 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

iv) Equitable mortgage by way of second pari-passu (with SBT & IDBI Bank) on Land & Building of the company located at D-25 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company.

v) Equitable mortgage on B-97(admeasuring 11951 sq mtrs.) located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, standing in the name of company on first pari passu basis with SBT and IDBI Bank.

2) Working capital loans from IDBI Bank Limited Rs. 690.67 Lakh (March 31, 2015: Rs. 1,303.65 Lakh) carries interest rate @

11.80% p.a. and are secured as under:

a) Primary Security:

i) Hypothecation of the entire current assets of the company on paripassu basis with SBT and IDBI Bank.

b) Collateral Security:

i) Equitable mortgage by way of second parri-passu charge(with SBT and SBI) on Land and Building of the company located at B-102 at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, standing in the name of company.

ii) Equitable mortgage by way of second parri-passu charge(with SBT and SBI) on Land and Building of the company located at B-103 at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, standing in the name of company.

iii) Equitable mortgage by way of second parri-passu charge(with SBT and SBI) on Land and Building of the company located at D-25 at MIDc, Lote Parshuram, Taluka Khed, District Ratnagiri, standing in the name of company.

iv) Hypothecation charge on Plant & Machinery on second pari-passu basis (with SBT & SBI Bank) of the company located at B-102, B-103 and D-25 located at MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra.

3) Working capital loans from State bank of Travankore Rs. 0.002 Lakh (March 31, 2015: Rs. 130.76 Lakh) carries interest rate @ 11.80% p.a. and are secured as under:

a) Primary Security:

Hypothecation of the entire current assets of the company on paripassu basis with SBI and IDBI Bank.

Note :

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding as at March 31,2016. This information has been determined on the basis of information available with the Company.

NOTE 2 : RELATED PARTY TRANSACTIONS

a. Details of Related Parties

Description of Relationship Names of Related Parties

Key Management Personnel (KMP) and their Mr. Punit Makharia - Chairman & Managing Director relatives Mr. Gautam Makharia - Joint Managing Director

Mr. Ratan Jha - Chief Financial Officer Mr. Kishan Bhargav - Company Secretary Mrs. Ranjana Makharia - Wife of M.D Mrs. Aradhana Makharia - Wife of J.M.D Bhanu Makharia - Mother of M.D/J.M.D

Company in which KMP / Relatives of KMP can exercise - significant influence

Notes:

1) The list of related parties above has been limited to entities with which transactions have taken place during the year.

2) Related party transactions have been disclosed till the time the relationship existed.

NOTE 3 : OPERATING LEASE TRANSACTIONS Where the Company is a lessee:

The Company has taken Office Buildings & Godown under operating lease as per the requirement. The aggregate rental expenses for the year are Rs. 4,86,672 (2014-15: Rs. 11,05,213).

NOTE 4 : EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY

(a) Gross amount required to be spent by the Company during the year - Rs. 24.21 Lacs

NOTE 5 : CURRENT ASSETS AND LOANS AND ADVANCES

In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE 6 : INITIAL PUBLIC OFFERING

During the year, the Company has made an Initial Public Offer (IPO) for 1,07,69,200 equity shares of Rs.10 each, comprising of 87,42,611 fresh issue of equity shares by the Company and 20,26,589 equity shares offered for sale by selling shareholders [India Enterprise Development Fund ("IEDF")]. The equity shares were issued at a price of Rs. 65 per equity share (including premium of Rs. 55 per share). Out of the total proceeds from the IPO of Rs. 7,000.00 Lacs, the Company''s share is Rs. 5,682.70 Lacs from the fresh issue of 87,42,611 equity shares. The total expenses in connection with the IPO amount of Rs. 551.43 Lacs, being the IPO expenses, is adjusted against the securities premium account. Further the Company has allotted 7,69,235 equity shares as Pre-IPO allotment at a price of Rs. 65 per equity share (including premium of Rs. 55 per share). Proceeds from this Pre-IPO allotment will also be utilized as mentioned in the Prospectus for IPO dated August 29, 2015.

Fresh equity shares were allotted by the Company on September 5, 2015 and these shares rank pari-passu with the existing shares. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 10, 2015.

NOTE 7: TRADE RECEIVABLES AND TRADE PAYABLES

The balances in case of trade receivable, trade payable and loans and advances shown as per books of accounts, are subject to reconciliation and adjustment, if any.

NOTE 8 :In the past, the Company has provided a corporate guarantee for Rs. 511.00 Lacs towards housing loans availed by Mrs. Bhanu Makharia, mother of Mr. Punit Makharia, a director of the Company from Citibank N.A, which has been secured by way of a corporate guarantee provided by our Company, other than the primary security. Providing such corporate guarantee is a violation of provisions of the Section 295 of the Companies Act, 1956. The balance of such loans as at March 31, 2016 is Rs. 181.73 Lacs. Mrs. Bhanu Makharia is regularly paying the loans as per the EMI schedule and till now there is no any default in repayment of such loans. As per the information available, the market value of the assets so financed is more than the value of the corporate guarantee, therefore, in the opinion of the Management, the terms and conditions thereof are not prejudicial to the interest of the Company.

NOTE 9 : SEGMENT INFORMATION

Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilizers. Accordingly, Segment Reporting in accordance with Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2006 is not applicable to the Company.

NOTE 10 : PREVIOUS YEAR FIGURES

The Company has re-grouped, re-classified, recanted and/or re-arranged figures for previous year, wherever required to confirm with current year''s classification.

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Mar 31, 2015

The company has no information as to whether any of its suppliers constitute Micro, Small or Medium Enterprises and therefore, the claims for suppliers and other related details as per the provisions of Micro, Small or Medium Enterprises Development Act, 2006 could not be ascertained. This has been relied by the auditors upon certificate by the management.

1. In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

2. There is no system of sending yearly confirmation letters in respect of balances reflected in respect of all significant Account under Trade Receivables, Trade Payable, Advance from Customers and Loans & Advances. Therefore, the balances under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

3. The Company has re-grouped, re-classified, recanted and/or re-arranged figures for previous year, wherever required to confirm with current year's classification.

4. Contingent Liabilities not provided for in books of accounts:

a. Corporate Guarantee of Rs, 171 (Previous Year Rs, 511 Lacs) give by company against housing loan taken by the relative of promoter director of the company.

b. Bank Guarantee amounting to Rs, 534.79 Lacs (previous year Rs, 259.45 Lacs) to suppliers of goods, services and electricity board.

5. The Company has adopted Accounting Standard - 15 (Revised 2005) for accounting of Employee Benefits and accordingly, the Company has classified various benefits provided to employee as under:

a. Defined Contribution Plans

The company has recognized the amounts of contribution to provident and other funds amounting to Rs, 1.67 Lacs (previous year Rs, 1.44 Lacs) in Profit & Loss account for the Period ended 31st March, 2015.

b. Defined Benefit Plans

The Company has provided Contribution to Gratuity Fund underfunded Scheme.

Expenses recognized in Profit & Loss account for the year ended 31/03/2015

6.Related Party disclosure

The names of the related parties, key management personnel, the nature of their transactions and their values are given herein below

A. List of Related Parties & their relationship

Punlt Makharla Chairman & Managing Director

Gautam Makharia Joint Managing Director

Ranjana Makharia Wife of M.D Relative of the Director

Aradhana Makharia Wife of J.M.D Relative of the Director

Bhanu Makhria Mother of M.D/J.M.D Relative of the Director

7. Segmental Information

Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilizers. Accordingly, Segment Reporting in accordance with Accounting Standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2006 is not applicable to the Company.

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Mar 31, 2013

1. In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

2. Confirmation letters have been sent in respect of all significant balances reflected under Trade Receivables, Trade Payables, Advance from Customers and Loans & Advances. Since most of such parties did not respond to confirmation requests, the balances under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

3. As at 31 March 2012, the Company had received an amount of Rs, 195 Lacs towards Share Application Money for issuing Equity shares of the Company. The same has been refunded during the year.

4. The Company has re-group, re-classified and/or re-arranged figures for previous year, wherever required to confirm with current year's classification.

5. Contingent Liabilities not provided for in books of accounts:

a. Corporate Guarantee aggregating to Rs, 511 Lacs (previous year Rs, 511 Lacs) given by the Company against housing loans taken by the relative of promoter-directors of the Company

b. Bank Guarantee amounting to Rs, 259.45 Lacs (previous year Rs, 301.01 Lacs) to suppliers of goods and electricity board.

6. The Company has adopted the Accounting Standard - 15 (Revised 2005) for accounting of Employee Benefits and accordingly, the Company has classified various benefits provided to employee as under:

a. Defined Contribution Plans

The company has recognized the amounts of contribution to provident and other funds amounting to Rs, 1.44 Lacs (previous year Rs, 2.07 Lacs) in Profit & Loss account for the year ended 31st March, 2013. b. Defined Benefit Plans

The Company has provided Contribution to Gratuity Fund under funded Scheme.

7. Related Party Disclosures

The names of the related parties, key management personnel, the nature of their transactions and their values are given herein below:

A. List of Related Parties & their relationship

Punit Makharia Chairman & Managing Director

Gautam Makharia Joint Managing Director

Ranjana Makharia Relative of the Director

Aradhana Makharia Relative of the Director

Bhanu Makharia Relative of the Director

8. Segmental Information Considering the nature of business and integrated manufacturing process of the Company, the Company considers its products under one segment only i.e. Chemicals & Fertilizers. Accordingly, Segment Reporting in accordance with Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2006 is not applicable to the Company.

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Mar 31, 2012

I. In the opinion of the Management, the Current Assets, Loans & Advances are approximately of the value stated and are realizable in the ordinary course of business. The provisions for all known liabilities are adequate.

ii. Confirmation letters have been sent by the Company in respect of balances reflected under Sundry Debtors, Sundry Creditors and Loans and Advances. In view of confirmations having been received from only some of the parties, the balance under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

iii. As at 31 March 2012, the Company has received an amount of Rs.195 Lacs towards Share Application Money for issuing preference shares of the Company (As at 31 March, 2011 Rs. 195 Lakhs). The Company is required to complete the allotment formalities by March - 2013. Presently the Company does not have sufficient authorized capital to cover the allotment of these shares.

iv. Contingent liabilities not provided for in books of accounts.

1. Corporate Guarantee aggregating to Rs. 511 Lacs (P.Y. Rs.511 Lacs) against housing loans taken by the Directors of the company.

2. Bank Guarantee of Rs. 301.01 Lacs (.P.Y. Rs.49.50 Lacs) to suppliers of goods and electricity board.

3. Disputed tax liabilities :-

v. Estimated Cost of Expansion is Rs. 10.95 Crores out of which 2.91 Crores is in WIP in 2011-12

vi. The company has no information as to whether any of its suppliers constitutes Micro, Small or Medium Enterprises and therefore, the claims for suppliers and other related data as per the requirement of Micro, Small or Medium Enterprises Development Act 2006 could not be ascertained.

vii. The company adopted the Accounting Standard (AS-15) (Revised 2005) "Employee Benefits", the company has classified the various benefits provided to employee as under;

a) Defined Contribution Plans:

The company has recognized the amounts of provided fund of Rs.1.97 Lacs (P.Y.Rs.1.89 Lacs) in Profit & Loss account for the year ended 31st March, 2012

b) Defined Benefit Plans:

The company has provided contribution to gratuity Fund (Funded Scheme).

viii. The financial statements for the year ended 31.03.2011 had been prepared as per the then applicable, pre revised schedule VI of the companies Act, 1956. Consequent to the notification of revised schedule VI under the companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared as per revised schedule VI. Accordingly, the previous year figures have also been re-classified to confirm to this year

ix. Related party Disclosures:

The names of the related parties, key management personal, the nature of their

transactions and their values are given herein below:

a) Key Managerial Personals

Name of related parties Nature of relationship

Punit Makharia Chairman & Managing Director

Gautam Makharia Joint Managing Director

Ranjana Makharia Relative of the Director

Aradhana Makharia Relative of the Director

Bhanu MaKharia Relative of the Director

classification. The adoption of revised schedule VI for the previous year figures does not impact recognition & measurement principles followed for preparation of the financial statements. vi. Previous Year Figures have been audited by a firm other than K C P L & Associates.

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Mar 31, 2011

1) In the opinion of directors provisions for all known liabilities have been made in the accounts.

2) Loan & advances, sundry debtors, sundry creditors and other liabilities are subject to confirmation and reconciliation. The balances are therefore as per the books of accounts.

3) Contingent liabilities not provided for in books of accounts.

1. Corporate Guarantee aggregating to Rs. 511 Lacs (P.Y. Rs.NIL Lacs) against housing loans taken by the Directors of the company.

2. Bank Guarantee of Rs. 49.50 Lacs (.P.Y. Rs,49.50 Lacs).

4) The company has no information as to whether any of its suppliers constitutes Micro, Small or Medium Enterprises and therefore, the claims for suppliers and other related data as per the requirement of Micro, Small or Medium Enterprises Development Act 2006 could not be ascertained.

5) The company adopted the Accounting Standard (AS-15) (Revised 2005) "Employee Benefits", the company has classified the various benefits provided to employee as under;

a) Defined Contribution Plans:

The company has recognised the amounts of Provided fund of Rs.1.89 Lacs (P.Y.Rs.1.48 Lacs) in Profit & Loss account for the year ended 31st March,2011

b) Defined Benefit Plans:

The company has provided contribution to gratuity Fund (Funded Scheme).

6) Related party Disclosures:

The names of the related parties, key management personal, the nature of their transactions and their values are given herein below: a) Key Managerial Personals

Name of related parties Nature of relationship

Punit Makharia Chairman & Managing Director

Gautam Makharia Director

Ranjana Makharia Relative of the Director

Aradhana Makharia Relative of the Director

Bhanu MaKharia Relative of the Director

7) Previous year's figures have been regrouped, rearranged and reclassified whenever necessary.

8) The additional information pursuant to paragraph 3,4 ( C) and (D) of part II of schedule VI to the companies Act, 1956.have given to the extent of applicable.