A-1 Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

9.2 Rights, Preferences and Restrictions attached to equity shares :

The Company has one class of shares having par value of ?10 per share. Each shareholder is eligible for one vote per share held. The final 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 shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. No Shares has been reserved for issue under options or contracts/commitments for the shares/disinvestment.

9.3 In the five years immediately proceeding March 31,2025

The Company had issued 3 equity bonus shares for every 20 equity shares during the Financial Year ended on March 31,2022.

Note: Board of Directors of the Company have proposed final dividend of Rs. 1.50 per equity share of face value of Rs. 10/- each. Proposed dividend on equity shares are subject to approval at the Annual General Meeting and hence not recognized as a liability as at March 31,2025. No interim dividend was declared or paid during the financial year ending March 31,2025.

The description of the nature and purpose of each reserve within equity is as follows:

a. General Reserve

General Reserve is created by transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

b. Securities Premium

Securities premium is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act.

c. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfer to general reserve, dividends or other distributions to shareholders.

Note 11 : Financial Liabilities

Note 26 : Segment Reporting Identification of Segments :

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company.

Operating Segments :

The Company''s business activity falls within a single operating business segment of Trading of Acids & Chemicals.

Note 27 : Disclosure Pursuant to Employee Benefits A. Defined Benefit Plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

(a) Gratuity (Unfunded)

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

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method.

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

Risks associated to the defined benefit plans:

1. Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

2. Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of membe? As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

3. Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

4. Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

5. Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

6. Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines.

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

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

(c) Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances other than loan given, at the year-end are unsecured and interest free and settlement occurs in cash.

(d) Commitments with related parties

The Company has not provided any commitment to the related party as at March 31,2025 (March 31,2024: Rs. Nil)

The management assessed that the fair values of cash and cash equivalents, other bank balances, loans, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(b) Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for There are no transfer between level 1,2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of director The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to interest rate risk of short-term and long-term floating rate instruments. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

The break of Fixed Interest bearing and variable interest bearing financial instruments is as below along with the sensitivity analysis.

(a2) Foreign currency risk

The Company has neither incurred any foreign currency transaction during the year nor it has any outstanding receivable or payable in foreign currency, it doesnot assume any currency risk.

(a3) Price Risk

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss.

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. The Company ensures appropriate risk governance framework through appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company’s policies and risk objectives

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the company''s experience for customers.

Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability Of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.

The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely monitors its liquidity position and deploys a robust cash management system. Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments:

Note 34 : Capital Management Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current period.

Note 35 : Code on Social Security, 2020

"The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective."

Note 36 : New Accounting Pronouncements to be adopted on or after March 31,2025

There are no standards or interpretations which are notified but not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods.

Note 37 : Additional Regulatory Disclosures As Per Schedule III Of Companies Act, 2013

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

a. Utilisation of borrowed funds and share premium

During the year ended March 31,2025 and March 31,2024, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Further, during the year ended March 31, 2025 and March 31, 2024, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. Details of crypto currency or virtual currency

" The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31,2025 (March 31,2024: Rs. NIL)."

c. Details of benami property held

"No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31,2025 (March 31,2024:Rs. NIL)."

d. Willful Defaulter

The Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31,2025 (March 31,2024:Rs. NIL).

e. Undisclosed Income

The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,

1961) during the year ended March 31,2025 (March 31,2024:Rs. NIL).

f. Relationship with struck off companies

The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31,2025 (March 31,2024:Rs. NIL).

g. Compliance with number of layers of companies

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

h. Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement.

i. Valuation of property, plant and equipments, right-of-use assets and intangible asset

The Company has not revalued its property, plant and equipments, right-of-use assets and intangible asset during the current or previous year.

j. Quarterly Returns or Statements of Current Assets Filed with Banks

"The Company has Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the said facility, the revised submissions made by the Company to its lead bankers based on closure of books of accounts at the year end, the revised quarterly returns or statements comprising stock statements, book debt statements, credit monitoring arrangement reports, statements on ageing analysis of the debtors/other receivables, and other stipulated financial information filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed."

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Note 39 : Events occurring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. On April 12, 2025, a majo office of the Company. There were no injuries or loss of life and the safety of all the personnel was ensured. The said incident has an i Machinery and other assets. The Company is adequately insured with the Insurance Company. The Company is unable to make a reliab loss, which would be estimated once the surveyors have completed their assessment. Since this is a nonadjusting subsequent event, above standalone audited financial results.

Note 40 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with of the Company as at March 31,2025.

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Mar 31, 2024

a(i) The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of equity share is entitled to one vote per share and rank equally with regard to dividends .

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all referential amounts. However, no such preferential amounts exist currently.

(iii) The distribution will be in proportion to the number of equity shares held by the shareholders

(iv) No Shares has been reserved for issue under options or contracts/commitments for the shares/disinvestment

(v) In the five years immediately proceeding March 31, 2024

The company had issued 3 equity bonus shares for every 20 equity shares during the Financial Year ended on 31.3.22.

The bonus shares shall rank pari passu in all respects and carry the same rights as the existing equity shareholders and shall be entitled to participate in full, in any dividend and any other corporate action, after allotment.

a. On 5th October 2018, the Company has allotted 30,00,000 Equity Shares of face value Rs. 10/- each fully paid -up at issue price of Rs.60/- per share including a premium of Rs.50/- per share aggregating to Rs.1,500 lacs of Securities Premium balance, through the initial public offer. Against this balance of Premium amount Rs. 129.22 lacs was adjusted as IPO expense leaving balance of Rs. 1370.78 lacs

b. General Reserve is created by transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

c. The company has issued 3 equity bonus shares for every 20 equity shares during the year ended on March 31,2022.

The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either directly (i.e. as prices ) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)

There were no transfers between the levels during the year

Valuation Process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values.

The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their short-term nature.

35 Financial Risk Management

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

I Credit Risk

II Liquid Risk

III Market Risk

Risk Management Framework

The Company’s risk management is governed by policies and approved by the board of directors. The company has policies for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and market risk.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

I Credit Risk

"Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company maintain its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

“The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. “On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the company''s experience for customers."

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if collection is doubtful. The Company also calculates the expected credit loss (ECL) for non-collection of receivables. The Company makes additional provision if the ECL amount is higher than the provision made for doubtful debts. In case the ECL amount is lower than the provision made for doubtful debts, the Company retains the provision made for doubtful debts without any adjustment.

The movement in allowances for doubtful accounts comprising provision for both non-collection of receivables and delay in collection is as follows:

II Liquid Risk

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

Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assesment of maturity profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity ratios are considered while reviewing the liquidity position.

III Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

As company has neither incurred any foreign currency transaction during the year nor it has any outstanding receivable or payable in foreign currency, it doesnot assume any currency risk.

b) Interest Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

"The Company’s capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance.“The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company."

37 Expenditure on Corporate Social Responsibility activities

a) Gross amount required to be spent by the Company during the year FY 23-24 was INR 12.88 lacs (P.Y. 11.43 lacs) under section 135 of the Companies Act, 2013.

The company has done actual spending of INR NIL (PY INR 11.91 lacs), accordingly INR NIL (PY INR 0.48 lacs) is excess spending.

1 Total Debt = Current Borrowings Non Current Borrowings

2 Earnings available for Debt Servicing= Net profit before taxes Interest Depreciation adjustment for non operational income/expenses

3 Capital Employed= Tangible Networth Total Debt Deferred Tax Liability

4 Working Capital= Current Assets- current liabilities

Reason For Variance above 25% in ratios

1 Return on Equity, , Net Profit Ratio & Return on Capital Employed Ratio: The Return ratios have deteriorated on account of decreased profitability vis a vis last year

2 Net Capital Turnover:The ratio has declined on account of drop in revenue from operations vis a vis last year

3 Inventory Turnover & Receivable Turnover Ratio: The ratios have deteriorated/increased due to dip in turnover and COGS as same is variable to sale.

4 Trade payable Turnover ratio: The ratio has increase due to increase in credit period.

5 Return on Investment has declined due to losses in associate result and increased investment

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

c Company has no balance outstanding for transactions done with the Companies Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

d No undisclosed Income is voluntarily disclosed under any scheme identified by Income tax authorities under any tax assessments under the Income Tax Act.

e The Company has neither traded nor invested in crypto currency during the financial year.

f No Proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

g The Company donot have charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

h The Company is not declared as willful defaulter by any bank or Financial Institution or other lender.

i Utilisation of Borrowed funds and Share Premium

a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, 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.

b) During the year, no funds have been received by the Company from any persons or entities, 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.

40 The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been made operative with effect from 13/06/2023 and thereafter operated throughout the year for all relevant transaction recorded in the software. During the year audit trail feature has not been tampered with.

41 Approval of Standalone Financial Statements

The Standalone financial statements are approved for issue by Audit Committee and Board of Directors at their meetings held on May 29, 2024

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Mar 31, 2023

(I) The general credit period in respective on Domestic sale ranges between 30-90 days and for Export it ranges between 30-90 days, by and large company is not charging any interest on late payment.

(ii) Credit risk is managed at the operational segmental level. The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references, etc.

(iii) The credit limit and the credit period are reviewed regularly at periodical intervals.

a(i) The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of equity share is entitled to one vote per share and rank equally with regard to dividends.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all referential amounts. However, no such preferential amounts exist currently.

(iii) The distribution will be in proportion to the number of equity shares held by the shareholders

(iv) No Shares has been reserved for Issue under options or contracts/commitments for the shares/disinvestment

(v) In the five years immediately preceeding March 31,2023

60,00,000 Equity Shares of Rs. 10 each fully paid up, were issued as bonus shares during the month of December 2017, by utilisation of Rs.6 00,00,000 from surplus, pursuant to a bonus issue approved by shareholders.

The company had Issued 3 equity bonus shares for every 20 equity shares during the Financial Year ended on 31.3.22.

The bonus shares shall rank pari passu in all respects and carry the same rights as the existing equity shareholders and shall be entitled to participate in full, in any dividend and any other corporate action, after allotment.

a. On 5th October 2018, the Company has allotted 30,00,000 Equity Shares of face value Rs. 10/- each fully paid -up at issue price of Rs.60/- per share including a premium of R$.50/- per share aggregating to Rs.1,500 lacs of Securities Premium balance, through the initial public offer. Against this balance of Premium amount Rs. 129.22 lacs was adjusted as IPO expense leaving balance of Rs. 1370.78 lacs

b. General Reserve is created by transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

c. The company has issued 3 equity bonus shares for every 20 equity shares during the year ended on March 31,2022.

Contingent Liabilitites		(INR in Lacs)
32 Particulars	As at March 31,2023	As at March 31, 2022
Contingent Liability not provided for claims against the Company not acknowledged as debt Bank Guarantee for Perfomance and Earnest money	52.94		4.28
Estimated amount of contracts remaining to be executed on Capital Account.

The above fair value hierarchy explains ihe judgements and estimates made in determining the fair values of the financial Instruments that are (a| recognised and measured at fair value and |b| measured at amortised cost for which fair values are disclosed in the financial statements. To provide the indication about th* reliability of the Inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level l - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 7 ¦ inputs other than Quoted prices included within Level 1 that are observable for the asset or llabilly, either directly (i.e. as prices I or indirectly ll.«. derived from prices)

Level 3 Inputs tor the assets or liabilties that are not based on observable market data (unchservable inputs]

There were no transfers between the levels during the year

Valuation Process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values.

The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fairveiue due to their short-term nature.

35 Financial Risk Management

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

I Credit Risk li Liquid Risk III Market Risk

Risk Management Framework

The Company''s risk management is governed by policies and approved by the board of directors. The company has policies for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and market risk.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit internal audit undertakes both regular and ad hoc reviews of risk management controls and prceedures, the results of which ere reported to the audit comm Ittee.

I Credit Risk

Credit risk refers to the risk of default cn its obligation by the counterparty resulting in a financial lass. The Company maintain its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality credit rati ng and also reviews their credit''Worthiness on an on-going basis.

''The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the narmal course of business. "On account of the adaption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute Ihe ECL allowance for trade receivables and unbilled revenues. The provision matrix takes inio account available external and internal credit risk factors and the company’s experience for customers.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts If collection is doubtful. The Company also calculates the expected credit loss (ECL] for non-collection of receivables. The Company makes additional provision if the ECL amount is higher than the provision made for doubtful debts, m case the ECl amount is lower than the provision made for doubtful debts, the Company retains the provision made tor doubtful debts without any adjustment.

il Uquid Risk

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

Management regularly monitors the position of cash and cash equivalents vls-i-vis projections. Ajsesment of maturity profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity ratios are considered while reviewing the liquidity position

III Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

As company has neither incurred any foreign currency transaction during the year nor it has any outstanding receivable or payable in foreign currency, it doesnot assume any currency risk.

b] Interest Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimise the Company''s position with regards to interest Income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate Interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A SO basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates

36 Capital management

"The Company''s capital management is intended to maximise the return to shareholders and benefits far ether stakeholders for meeting the long term and short term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e, the debt and equity baiance.''The Company monitors the capital structure on the basis of Net debt to eouity ratio and maturity profile

of the overall debt portfolio af the Company "

3£ Segment Information

The company’s primarily engaged in one business segment as determined by the chief decision maker in accordance with md AS 108, Operating Segments viz Trading of Acids and Chemicals

1 Toy Debt ¦ Currerr Borrowings * Non Current Borrowing;

2 Earning* jvuiabia far Oebi StrvidP£= Net profit befora i »***-* iptarut Depreciation-* idjuslment for pop op«rj|io«il ircarnf>«xp«n*is

3 Capital Emp eyed- Tangible Neewarth ♦ Total Debt* Deferred Ta* Liability A Working Capital* Current Assets current liabilities

Reason For Variance above 25% In ntlot

1 Return an Equity,, Debt Service Coverage Ratio A Return on Capita Fir ployed Ratio: The Return ratios have ceteriorated on aaaunt af decreased profitability vis a vis last year

2 Net Capital Turnover: The ratio hat improved on account of efficient working capital management and revenue from operations vii avis last year

3 Current Ratio,inventory Turnover, Trade Payable A Receivable Turnover Ratio: THa ratios haw improvad an accounl of efficiant working capital cyda management

4 Return on invvrtirant has improvad due to improvamtnt in associate result »nc increased investment

b The company has complied with the number of layers prescribed under clause (B7Jnf section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017. f Company has no balance outstanding for transactions done with the Companies Struck Off eilher under section 248 of the Act or under Section S6C of Companies act 1956.

d No undisclosed income is voluntarily disclosed under anv scheme identified bv income ten authorities under anv tax essessments under the income Tex Act.

t The Company has neither traded nor invested in crypto currency during the financial year,

f No Proceedings have been initiated or pending against the company for holding any benami property under the Benaml Transactions (Prohibition] Act, 1988 (49 of 1988]. g The Company donot have charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

h The Company is not declared as willful defaulter by any bank or Financial institution or other lender,

i Utilisation of Borrowed funds and Share Premium

a] During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds] by the Company to or in any other persons or entities, 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 (he Company ("uHlmete BeneficiariesH or provide a ny guarantee, security or the like on behalf of the Ulhmale eenefioanes.

b) During the year, no funds have been received by the Company from any persons or entitles, 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 eny 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.

40 Approval of Stand e lone Flnancia I State meets

The Standalone financial statements are approved for issue by Audit Committee and Board of directors at their meetings held on May 15, 2029