IVP Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

2A.6 Provisions

A provision is recognised if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future
cash flows (representing the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The unwinding of the discount is recognised as
finance cost. Expected future operating losses are not
provided for.

2A.7 Contingent Liabilities and Contingent
Assets

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot
be made. A contingent asset is not recognized in
financial statements, however, the same is disclosed
where an inflow of economic benefit is probable.

2A.8 Revenue Recognition

Revenue from sale of goods is recognized when
control of the products being sold is transferred to the
customer and when there are no longer any unfulfilled
obligations.

The performance obligations in contracts by the
Company are fulfilled at the time of dispatch, delivery
or upon formal customer acceptance depending on
customer terms.

Revenue is recognized at the point in time when the
performance obligation is satisfied and control of the
goods are transferred to the customer upon dispatch
or delivery, in accordance with the terms of customer
contracts.

Revenue is recognized at an amount that the
Company expects to receive from customers that is
net of discounts, rebates and taxes as applicable.

The customers have the contractual right to return
goods only when authorized by the Company. An
estimate is made of goods that will be returned and
a liability is recognized for this amount using a best
estimate based on accumulated experience.

Rental Income

Income from rentals is recognized in accordance with
terms of the contracts with customer based on the
period for which the facilities have been used.

Interest Income

Interest income is recognized using the effective
interest rate (EIR) method.

Dividend Income

Dividend income on investments is recognized when
the right to receive dividend is established.

2A.9 Employee Benefits

(i) Defined benefit plans

For defined benefit plans, the cost of providing benefits
is determined using the Projected Unit Credit Method,
with actuarial valuations being carried out at each
balance sheet date. Remeasurement, comprising
actuarial gains and losses, the effect of the changes
to the asset ceiling and the return on plan assets
(excluding interest), is reflected immediately in the
balance sheet with a charge or credit recognized
in other comprehensive income in the period in
which they occur. Past service cost, both vested and
unvested, is recognized as an expense at the earlier
of (a) when the plan amendment or curtailment
occurs; and (b) when the entity recognizes related
restructuring costs or termination benefits.

(ii) Defined contribution plans

The retirement benefit obligations recognized in
the balance sheet represents the present value of
the defined benefit obligations reduced by the fair
value of scheme assets. Any asset resulting from this
calculation is limited to the present value of available
refunds and reductions in future contributions to the
scheme.

Contributions to defined contribution plans are
recognized as expense when employees have
rendered services entitling them to such benefits.

(iii) Short-term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits. Benefits such as
salaries, wages etc. and the expected cost of bonus
are recognized in the period in which the employee
renders the related service. A liability is recognized
for the amount expected to be paid when there is
a present legal or constructive obligation to pay
this amount as a result of past service provided by
the employee and the obligation can be estimated
reliably.

(iv) Compensated absences

Compensated absences which are expected to occur
within twelve months after the end of the period in
which the employee renders the related services are

recognized as undiscounted liability at the balance
sheet date. Compensated absences which are not
expected to occur within twelve months after the
end of the period in which the employee renders
the related services are recognized as an actuarially
determined liability at the present value of the defined
benefit obligation at the balance sheet date.

2A.10 Income taxes

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred taxes
are recognized in statement of profit and loss, except
when they relate to items that are recognized in other
comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognized
in other comprehensive income or directly in equity,
respectively.

Current tax

Current tax is the expected tax payable/receivable on
the taxable income/loss for the year using applicable
tax rates for the relevant period, and any adjustment
to taxes in respect of previous years. Interest
expenses and penalties, if any, related to income
tax are included in finance cost and other expenses
respectively. Interest income, if any, related to income
tax is included in other income.

Advance taxes and provisions for current income
taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision
where the relevant tax paying unit intends to settle the
asset and liability on a net basis.

Deferred tax

Deferred income tax is recognized using the balance
sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable
temporary differences arising between the tax base
of assets and liabilities and their carrying amount,
except when the deferred income tax arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the
transaction.

Deferred income tax assets are recognized to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences and the carry forward of unused tax
credits and unused tax losses can be utilized.

The carrying amount of deferred income tax assets
is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient

taxable profit will be available to allow all or part of the
deferred income tax asset to be utilized.

Deferred tax assets and liabilities are measured using
substantively enacted tax rates expected to apply to
taxable income in the years in which the temporary
differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation
authority and the relevant entity intends to settle its
current tax assets and liabilities on a net basis.

2A.11 Earnings per share

Basic earnings per share is computed by dividing
profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity
shares outstanding during the year. The Company did
not have any potentially dilutive securities in any of
the years presented.

2A.12 Foreign currency

Foreign currency transactions are recorded at
exchange rates prevailing on the date of the
transaction. Foreign currency denominated monetary
assets and liabilities are retranslated at the exchange
rate prevailing on the balance sheet date and
exchange gains and losses arising on settlement and
restatement are recognized in the statement of profit
and loss. Non-monetary assets and liabilities that
are measured in terms of historical cost in foreign
currencies are not retranslated.

2A.13 Financial instruments

Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value.

Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added
to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

The Company derecognizes a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another entity. The Company
derecognizes financial liabilities when, and only when,
the Companys'' obligations are discharged, cancelled
or have expired.

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant
risk of change in value and having original maturities
of three months or less from the date of purchase,
to be cash equivalents. Cash and cash equivalents
consist of balances with banks which are unrestricted
for withdrawal and usage.

Financial assets at amortized cost

Financial assets are subsequently measured at
amortized cost if these financial assets are held within
a business whose objective is to hold these assets to
collect contractual cash flows and the contractual
terms of the financial assets give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business whose objective is
achieved by both collecting contractual cash flows on
specified dates that are solely payments of principal
and interest on the principal amount outstanding and
selling financial assets.

The Company has made an irrevocable election
to present subsequent changes in the fair value
of equity investments not held for trading in other
comprehensive income.

Financial assets at fair value through profit or
loss

Financial assets are measured at fair value through
profit or loss unless they are measured at amortized
cost or at fair value through other comprehensive
income on initial recognition. The transaction costs
directly attributable to the acquisition of financial
assets and liabilities at fair value through profit or loss
are immediately recognized in statement of profit
and loss.

Financial liabilities

Financial liabilities are measured at amortized cost
using the effective interest method.

Hedge accounting

The Company designates certain foreign exchange
forward contracts as hedge instruments in respect of
foreign exchange risks. These hedges are accounted
for as cash flow hedges.

The Company uses hedging instruments that are
governed by the policies of the Company which
are approved by the Board of Directors. The policies
provide written principles on the use of such financial
derivatives consistent with the risk management
strategy of the Company.

The hedge instruments are designated and
documented as hedges at the inception of the
contract. The Company determines the existence
of an economic relationship between the hedging
instrument and hedged item based on the currency,
amount and timing of their respective cash flows.
The effectiveness of hedge instruments to reduce
the risk associated with the exposure being hedged
is assessed and measured at inception and on an
ongoing basis. If the hedged future cash flows are no
longer expected to occur, then the amounts that have
been accumulated in other equity are immediately
reclassified in net foreign exchange gains/losses in
the statement of profit and loss.

The effective portion of change in the fair value of the
designated hedging instrument is recognized in the
other comprehensive income.

Hedging instrument is recognized as a financial asset
in the balance sheet if its fair value as at reporting
date is positive as compared to carrying value and as
a financial liability if its fair value as at reporting date
is negative as compared to carrying value.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated or no longer
qualifies for hedge accounting. Any gain or loss
recognized in other comprehensive income and
accumulated in equity till that time remains and is
recognized in statement of profit and loss when the
forecasted transaction ultimately affects the profit or
loss.

2(b) significant accounting policies
2B.1 Investment property

Investment property is property held either to
earn rental income or for capital appreciation or
for both, but not for sale in the ordinary course of
business, use in the production or supply of goods or
services or for administrative purposes. Upon initial
recognition, an investment property is measured at
cost. Subsequently, investment property is measured

at cost less any accumulated depreciation and
accumulated impairment losses, if any.

Gains or losses arising on retirement or disposal of
investment property are recognized in the Statement
of Profit and Loss.

The fair value of investment property is disclosed in the
notes. Fair values are determined by an accredited
independent registered valuer who hold a recognized
and relevant professional qualification and has
recent experience in the location and category of the
investment property being valued.

2B.2 Intangible Assets

Intangible assets purchased are initially measured
at cost. Subsequently, intangible assets are carried
at cost less any accumulated amortization and
accumulated impairment losses, if any. The useful
lives of intangible assets are assessed as finite. Finite-
life intangible assets are amortized on a straight-line
basis over the period of their estimated useful lives.

2B.3 Cash flow Statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of
transactions of non-cash nature and non-operating
nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from
operating, investing and financing activities of the
Company are segregated based on the available
information.

2B.4 Leases

The Companys'' lease asset classes primarily consist
of leases for Land. The Company assesses whether
a contract is or contains a lease, at inception of a
contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.
At the date of commencement of the lease, a right-of-
use asset ("ROU") and a corresponding lease liability
is recognized for all lease arrangements in which the

Company is a lessee, except for leases with a term of
twelve months or less (short-term leases) and leases
of low value assets. For these short-term and leases of
low value assets, the Company recognizes the lease
payments as an operating expense on a straight¬
line basis over the term of the lease. The right-of-
use assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior
to the commencement date of the lease plus any
initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-
use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset. ROU
asset has been separately presented in the Balance
Sheet.

The lease liability is initially measured at the present
value of the future lease payments. The lease
payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates.

The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made. A lease liability is

remeasured upon the occurrence of certain events
such as a change in the lease term or a change in
an index or rate used to determine lease payments.
The remeasurement normally also adjusts the leased
assets. There exists no lease liability in respect of long¬
term lease of land as the lease premium for the entire
lease period was paid upfront at lease initiation/
renewal.

2B.5 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker (CODM). The board
of directors of IVP has appointed the Chief Executive
Officer (''CEO'') to assess the financial performance
and position of the Company, and make strategic
decisions. The CEO has been identified as being
the Chief Operating Decision Maker for corporate
planning.

2B.6 Recent accounting developments

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. During the year, MCA
has not notified any new amendment to the existing
standards under Companies (Indian Accounting
Standards) which are effective from 1.4.2026.

Description of the nature and purpose of Other Equity

General Reserve: The General Reserve comprises of transfer of profits from retained earnings for appropriation
purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net of amount
transferred to other reserves such as general reserves etc., amount distributed as dividends and adjustments
on account of transition to Ind AS.

Note: The Board of Directors in their meeting held on May 21, 2026 have recommended a dividend of g 1.50 per
Equity Share (March 31, 2025: g 1 per Equity Share) to be approved by the shareholders in the ensuing general
meeting. On approval, this will result in an outflow of g 155 Lakhs (March 31, 2025: g 103 lakhs).

(i) Cash credit facilities from multiple banks are repayable on demand and carry interest rates during the year
ranging from 8.25% p.a. to 10.00% p.a. (FY 24-25: 7.70% p.a. to 10.59% p.a).

(ii) Working capital demand loans taken from multiple banks carry interest rates during the year ranging from
6.86% p.a. to 9.00% p.a. (FY 24-25: 7.55% p.a. to 9.04% p.a). These loans are repayable on different dates within
three months from the balance sheet date.

(iii) Buyer''s credit is a loan facility under Supplier Financing Arrangement extended by bank against import and
carries interest rates linked to Secured Overnight Financing Rate (SOFR) during the year ranging from 4.26%
p.a. to 4.94% p.a. (FY 24-25: 4.80% p.a. to 5.88% p.a).

(iv) Inter-corporate deposits carry interest @ 7.25% p.a. (FY 24-25: 7.25%). Interest rate has been revised to 6.75%
p.a. from 7.25% p.a. with effect from 01st April 2026.

Supplier Finance Arrangement disclosure requirement as per IND AS 7

Supplier financing is arranged through Buyer''s Credit, a loan facility extended by the bank against import-backed
issuance of a Standby Letter of Credit (SBLC). Under this arrangement, the bank settles payments to suppliers on
the due date and provides us an extended credit period of 30-60 days and accordingly outstanding amounts
classified under short-term borrowings. This helps optimize working capital and manage cash flows efficiently,
with interest rates typically linked to SOFR. The effective interest rate under this arrangement is generally lower
than standard bank borrowing rates.

1) Type and Effect of Non-Cash Changes

During the period, the following non-cash changes occurred in the carrying amounts of borrowings related to
Supplier Financials Arrangement.

a) Effect of Exchange Differences:

The company has recognised non-cash exchange differences in the carrying amount of borrowings arising
from supplier financing arrangements.

As of the Balance Sheet date, the carrying amount of borrowings related to supplier financing arrangements
denominated in foreign currencies has increased by g 69 lakhs due to changes in foreign exchange rates.

The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four
labour codes viz the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020,
and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Codes").
The Codes have been made effective from November 21, 2025. The Ministry of Labour & Employment notified
Central Rules on 8 May 2026 however State rules are yet to be notified. The new Labour Codes have resulted
in one time increase in provision for employee benefits of the company. The estimated incremental impact of
these changes as assessed by the Company amounts to g 46 lakhs pertains to past services rendered upto
31st March 2026 and this has been recognised and presented as Exceptional Items in the Statement of profit and
loss of the Company for the year ended March 31, 2026 consistent with the guidance provided by the Institute of
Chartered Accountants of India. Once Central/State Rules are notified by the Government on all aspects of the
Codes, the Company will evaluate impact, if any, on the measurement of employee benefits and would provide
appropriate accounting treatment.

The Company has disclosed financial instruments such as cash and cash equivalents, trade receivables, loans,
other financial assets, borrowings, trade payables and other financial liabilities at carrying value because their
carrying amounts are a reasonable approximation of the fair values due to their short term nature.

B. Fair Value measurement hierarchy

The fair value of financial instruments as referred to in note (a) have been classified into three categories
depending on the inputs used in the valuation technique.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level
1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data.

Financial assets and liabilities measured at fair value as at Balance Sheet date

i. The Fair values of investments in quoted investment in equity shares is based on the current bid price of
respective investment as at the Balance Sheet date.

ii. The Company entered into forward contracts to hedge foreign currency risks of underlying exposures
during FY 2025-2026 as well as in FY 2024-2025.

iii. Financial instruments such as cash and cash equivalents, trade receivables, loans, other financial assets,
borrowings, trade payables and other financial liabilities are stated at carrying value because their carrying
amounts are a reasonable approximation of the fair values due to their short term nature.

41. CAPITAL MANAGEMENT AND FINANCIAL RISK MANAGEMENT POLICY
A. Capital management

For the purpose of the Companys'' capital management, Capital includes Issued Equity Capital and all Other
Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Companys'' Capital
Management is to maximise the shareholders'' value. The Companys'' capital management objectives are to
maintain equity including all reserves to protect economic viability and to finance any growth opportunities that
may be available in future so as to maximise shareholder''s value. The Company is monitoring Capital using the
equity ratio as its base, which is total equity divided by total assets. Also, the Company monitors capital using
debt-equity ratio, which is total debt divided by total equity.

B. Financial risk management and
policies

The Companys'' financial risk management is an
integral part of how to plan and execute its business
strategies. The risk management policy is approved
by the Companys'' Board. The Companys'' principal
financial liabilities comprise of loans and borrowings,
trade and other payables. The Companys'' principal
financial assets include trade and other receivables,
and cash and cash equivalents that derive directly
from its operations and investments. The Company
is exposed to market risk, credit risk, liquidity risk etc.
The objective of the Companys'' financing policy are
to secure solvency, limit financial risks and optimise

the cost of capital. The Companys'' capital structure is
managed using equity and debt ratios as part of the
Companys'' financial planning.

a. Market risk

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

effectively to achieve the business objectives. This includes identification of risk, its assessment, control and
monitoring at timely intervals.

The above mentioned risks may affect the Companys'' income and expenses, or the value of its financial
instruments. The Companys'' exposure to and management of these risks are explained below:

i. Foreign currency risk

The Company is subject to the risk that changes in foreign currency values impact the Companys'' imports and
other payables. During the reporting period the company has availed and utilised facility of Buyer''s Credit from
bank which also exposed the company to foreign currency risk as buyer''s credit facility is considered as foreign
currency loan. The Company is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to US Dollar. The exposures are hedged as per the policy of the Company.

ii. Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency
payments in USD. The Company enters into contracts with terms upto 120 days. The Companys'' philosophy does
not permit any speculative calls on the currency. It is driven by conservatism which guides that management
follows conventional wisdom by use of Forward contracts in respect of Trade transactions.

Regulatory requirements: The Company will alter its hedge strategy in relation to the prevailing regulatory
framework and guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time.

Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The
forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are
by actual delivery of the hedged currency for settling the underline hedged trade transaction.

The Company entered into forward cover contracts during FY 2025-2026 as well as in FY 2024-2025.

b. Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual
funds, derivative financial instruments, other balances with banks, loans and other receivables. The outstanding
trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with
banks is limited and there is no collateral held against these because the counterparties are banks and
recognised financial institutions with high credit ratings. The Companys'' exposure is continuously monitored.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivables. The
provision matrix is based on its historically observed default rates over the expected life of the trade receivable
and is adjusted for forward-looking estimates. At every reporting date, the historically observed default rates are
updated and changes in forward-looking estimates are analysed. The Company estimates the following matrix
at the reporting date.

Trade Receivable of g 21,018 lakhs as at March 31, 2026 forms a significant part of the financial assets carried
at amortised cost which is valued considering provision for allowance using expected credit loss method. In
addition to the historical pattern of credit loss, management has considered forward looking information. The
Company closely monitors its customers on regular basis. Basis this assessment, the allowance for doubtful
trade receivables of g 2,388 lakhs as at March 31, 2026 is considered adequate.

c. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value The Company maintains
a cautious liquidity strategy, with a positive cash balance throughout the year. Management monitors the
Companys'' liquidity position through rolling forecasts on the basis of expected cash flows. Cash flow from
operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

Additional funding required, if any, will be provided by the banks based on undrawn sanctioned working capital
facilities.

42. EMPLOYEE BENEFITS

The Company has classified various employee benefits as under:

A. Defined contribution plans

State Defined Contribution Plans

- Employers'' Contribution to Employees'' State Insurance

- Employers'' Contribution to Employees'' Pension Scheme 1995

The Companys'' contributions paid/payable to Employees State Insurance Scheme, Employees Pension
Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes and are
recognised as expense in the Statement of Profit and Loss during the year in which the employee renders the
related service. There are no further obligations other than the contributions payable to the approved trusts/
appropriate authorities.

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

Furthermore, in presenting the above sensitivity
analysis, the present value of the defined benefit
obligations has been calculated using the Projected
Unit Credit Method at the end of the reporting period,
which is the same as that applied in calculating the
defined benefit obligation liability recognised in the
balance sheet.

Each year an Asset - Liability matching study is
performed in which the consequences of the strategic
investment policies are analysed in terms of risk and
return profiles. Investment and contribution policies
are integrated within this study.

The Company is expected to contribute g 81 lakhs
to Gratuity fund for the year ended March 31, 2026.
(March 31,2025: g 14 lakhs).

(ii) Provident fund

In accordance with Indian law, all eligible employees
of the Company in India are entitled to receive

benefits under the provident fund plan in which
both the employee and employer (at a determined
rate) contribute monthly to a Trust set up by the
Company to manage the investments and distribute
the amounts entitled to employees. This plan is a
defined benefit plan as the Company is obligated to
provide its members a rate of return which should,
at the minimum, meet the interest rate declared by
Government administered provident fund. A part of the
Companys'' contribution is transferred to Government
administered pension fund. The contributions made
by the Company and the shortfall of interest, if any, are
recognised as an expense in statement of profit and
loss under employee benefit expenses. In accordance
with an actuarial valuation of provident fund liabilities
on the basis of guidance issued by Actuarial Society
of India and based on the assumptions as mentioned
below, there is no deficiency in the interest cost as
the present value of the expected future earnings
of the fund is greater than the expected amount to
be credited to the individual members based on the
expected guaranteed rate of interest of Government
administered provident fund. However, during the
year, Trust estimated deficit in Income and Expenditure
account amounting to g 9 lakhs excluding mark-to-
market losses on investment in mutual funds which
has been recognised as an expenses in statement of
Profit and Loss under employee benefit expenses.

The Company contributed g 210 Lakhs and g 195 Lakhs for the year ended March 31, 2026 and March 31, 2025
respectively, to the provident fund.

C. Other long term employee benefits

Compensated absences

Provision in respect of leave encashment benefits has been made based on actuarial valuation carried out
by an independent actuary at the Balance sheet date using Projected Unit Credit method. During the year, the
Company has recognised g 11 Lakhs as an expenses (March 31, 2025: g 12 Lakhs) in the Statement of Profit and
Loss.

45. FRAUD

During the year, the Company identified a fraud
involving misrepresentation and falsification of
customer records by a sales employee. Based on
the findings of the completed investigation, the total
financial impact has been assessed at f 613 lakhs. The
same is fully provided for in the books in accordance
with Ind AS 109 "Financial Instruments" including S 254
lakhs provided during the financial year.

The Company has initiated steps for recovery and

Internal controls and processes have been further
strengthened to mitigate and prevent recurrence of
such incidents.

46. OTHER STATUTORY INFORMATION

i. There are no balance outstanding on account of
any transaction with companies struck off under
section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

ii. The Company does not have any Capital-work-in

progress or intangible assets under development,
whose completion is overdue or has exceeded its
cost to its original plan.

iii. The Company has not advanced or loaned or
invested funds to any other person(s) or entity(ies),

including foreign entitles (Intermediaries) with
the understanding that the Intermediary shall:

a. Directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf the company
(ultimate Beneficiaries), or

b. Provide any guarantee, security or the like to
or on behalf of the Ultimate beneficiaries.

iv. 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 will:

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

b. Provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

v. The Company has not entered into 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.

vi. Details of benami property held: No proceedings
have been initiated on or are pending against the
Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and Rules made thereunder.

vii. Compliance with number of layers of
companies:

the number of layers prescribed under the
Companies Act, 2013.

viii. Compliance with approved scheme(s) of
arrangements:

any scheme or arragnement during the year.

ix. Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency
or virtual currency during the current or previous year.

x. Title deeds of immovable properties not held in name of the Company: There are no immovable properties
(other than properties where the Company is the lessee and the lease agreements are duly executed in
favour of the lessee) not held in the name of the Company.

xi. Registration of charges or satisfaction with registrar of companies: There are no charges or satisfaction
which are yet to be registered with the registrar of companies beyond the statutory period.

xii. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, there were no instances of audit trail features being tampered
with in respect of the said software.

Additionally, the audit trail has been preserved by the company as per the statutory requirements for the
record retention.

xiii. Utilisation of borrowings availed from banks and financial institutions - The borrowings obtained by the
Company from banks and financial institutions have been applied for the purposes for which such loans
were was taken.

xiv. Borrowing secured against current assets - The Company has not taken any working capital borrowings
from banks and financial institutions on the basis of security of current assets of the Company.

47. The figures for the previous year have been regrouped/reclassified to correspond with current year''s

classification/disclosure.

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Mar 31, 2025

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of '' 10 per share. Each holder of the Equity Shares is entitled to one vote per share. The Company declares and pays dividend proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by shareholders.

Description of the nature and purpose of Other Equity

General Reserve: The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividends and adjustments on account of transition to Ind AS.

Note: The Board of Directors in their meeting held on May 15, 2025 have recommended a dividend of '' 1/- per Equity Share (March 31, 2024: '' 1 per Equity Share) to be approved by the shareholders in the ensuing general meeting. On approval, this will result in an outflow of '' 103 Lakhs (March 31, 2024: '' 103 Lakhs).

Note: The above details are in respect of Micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) which have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. Accordingly, there is no undisputed amount overdue as on March 31, 2025, to Micro and Small Enterprises on account of principal or interest except '' 7 Lakhs ( March 31, 2024''8 Lakhs).

36.INFORMATION ON SEGMENT REPORTING AS PER IND AS 108 ON "OPERATING SEGMENTS"

Operating Segments are those components of the business whose operating results are regularly reviewed by the Chief Operating Decision making body in the Company to make decisions for performance assessment and resource allocation.

Company is engaged in the business of manufacturing and distribution of Chemicals, which is the only reportable operating segment as per Ind AS 108.

The Company has disclosed financial instruments such as cash and cash equivalents, trade receivables, loans, other financial assets, borrowings, trade payables and other financial liabilities at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

B.Fair Value measurement hierarchy

The fair value of financial instruments as referred to in note (A) have been classified into three categories depending on the inputs used in the valuation technique.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

Calculation of fair value

Fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended March 31, 2025.

Financial assets and liabilities measured at fair value as at Balance Sheet date

i. The Fair values of investments in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

ii. The Company entered into forward contracts to hedge foreign currency risks of underlying exposures during FY 2024-2025 as well as in FY 2023-2024.

iii. Financial instruments such as cash and cash equivalents, trade receivables, loans, other financial assets, borrowings, trade payables and other financial liabilities are stated at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

40. CAPITAL MANAGEMENT AND FINANCIAL RISK MANAGEMENT POLICY

A. Capital management

For the purpose of the Companys'' capital management, Capital includes Issued Equity Capital and all Other Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Companys'' Capital Management is to maximise the shareholders'' value. The Companys'' capital management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximise shareholder''s value. The Company is monitoring Capital using the equity ratio as its base, which is total equity divided by total assets. Also, the Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

B.Financial risk management and policies

The Companys'' financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Companys'' Board. The Companys'' principal financial liabilities comprise of loans and borrowings, trade and other payables. The Companys'' principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations and investments. The Company is exposed to market risk, credit risk, liquidity risk etc. The objective of the Companys'' financing policy are to secure solvency, limit financial risks and optimise the cost of capital. The Companys'' capital structure is managed using equity and debt ratios as part of the Companys'' financial planning.

a.Market risk

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

borrowings, deposits, investments and derivative financial instruments. The Company has designed risk management framework to control various risks effectively to achieve the business objectives. This

includes identification of risk, its assessment, control and monitoring at timely intervals.

The above mentioned risks may affect the Companys'' income and expenses, or the value of its financial instruments. The Companys'' exposure to and management of these risks are explained below:

i.Foreign currency risk

The Company is subject to the risk that changes in foreign currency values impact the Companys'' imports and other payables. During the reporting period the company has availed and utilised facility of Buyer''s Credit from bank which also exposed the company to foreign currency risk as buyer''s credit facility is considered as foreign currency loan. The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar. The exposures are hedged as per the policy of the Company.

* In the current as well as previous financial year the Company continues to take Forward cover to hedge its import trade payables, however the exposure of USD NIL (March 31, 2024: USD 28,49,067 (Net)) and EURO 27,508 (March, 31, 2024: NIL) remains as unhedged as on March 31, 2025 and therefore the sensitivity is calculated as above.

ii.Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD. The Company enters into contracts with terms upto 120 days. The Companys'' philosophy does not permit any speculative calls on the currency. It is driven by conservatism which guides that management follows conventional wisdom by use of Forward contracts in respect of Trade transactions.

Regulatory requirements: The Company will alter its hedge strategy in relation to the prevailing regulatory framework and guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time. Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

b.Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings. The Companys'' exposure is continuously monitored.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historically observed default rates are updated and changes in forward-looking estimates are analysed. The Company estimates the following matrix at the reporting date.

Trade Receivable of '' 20,081 Lakhs as at March 31, 2025 forms a significant part of the financial assets carried at amortised cost which is valued considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, management has considered forward looking information. The Company closely monitors its customers on regular basis. Basis this assessment, the allowance for doubtful trade receivables of '' 1,865 Lakhs as at March 31, 2025 is considered adequate.

c.Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Company maintains a cautious liquidity strategy, with a positive cash balance throughout the year. Management monitors the Companys'' liquidity position through rolling forecasts on the basis of expected cash flows. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

41. EMPLOYEE BENEFITS

The Company has classified various employee benefits as under:

A. Defined contribution plans

State Defined Contribution Plans

- Employers'' Contribution to Employees'' State Insurance

- Employers'' Contribution to Employees'' Pension Scheme 1995

The Companys'' contributions paid/payable to Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes and are recognised as expense in the Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/appropriate authorities.

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

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

Each year an Asset - Liability matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk and return profiles. Investment and contribution policies are integrated within this study.

The Company is expected to contribute '' 14 Lakhs to Gratuity fund for the year ended March 31, 2025. (March 31,2024: '' 38 Lakhs).

(ii) Provident fund

In accordance with Indian law, all eligible employees of the Company in India are entitled to receive benefits under the provident fund plan in which both the employee and

employer (at a determined rate) contribute monthly to a Trust set up by the Company to manage the investments and distribute the amounts entitled to employees. This plan is a defined benefit plan as the Company is obligated to provide its members a rate of return which should, at the minimum, meet the interest rate declared by Government administered provident fund. A part of the Companys'' contribution is transferred to Government administered pension fund. The contributions made by the Company and the shortfall of interest, if any, are recognised as an expense in statement of profit and loss under employee benefit expenses. In accordance with an actuarial valuation of provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the assumptions as mentioned below, there is no deficiency in the interest cost as the present value of the expected future earnings of the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest of Government administered provident fund.

The Company contributed '' 195 Lakhs and '' 188 Lakhs for the year ended March 31, 2025 and March 31, 2024 respectively, to the provident fund.

C. Other long term employee benefits

Compensated absences

Provision in respect of leave encashment benefits has been made based on actuarial valuation carried out by an independent actuary at the Balance sheet date using Projected Unit Credit method. During the year, the Company has recognised '' 12 Lakhs as an expenses (March 31, 2024: '' 6 Lakhs) in the Statement of Profit and Loss.

All Related Party Transactions entered during the year were in ordinary course of the business and on arm''s length basis.There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March, 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: '' NIL).This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

44. OTHER STATUTORY INFORMATION

i There are no balance outstanding on account of any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

ii. The Company does not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost to its original plan.

iii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entitles (Intermediaries) with the understanding that the Intermediary shall:

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

b. Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.

iv. 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 will:

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

b. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v. The Company has not entered into 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.

45. The figures for the previous year have been regrouped/reclassified to correspond with current year''s classification/disclosure.

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Mar 31, 2024

* During the year ended March 31, 2023, the Company has reclassified buildings represented by 1 fully paid up share in a condominium of '' 100; and Cost of 86 shares of '' 50/- each and 172 loan stock bond certificates of '' 100/- each held in The New Surya - Kiron Co-operative Housing Society Limited in respect of a residential flat as "Assets held for Sale" in accordance with Ind AS 105.

Contractual Obligation: Refer Note 35 for disclosure of contractual commitments for the acquisition of Property, plant and equipments.

9. ASSETS HELD FOR SALE

The Company intends to sell its residential flat held in The New Surya - Kiron Co-operative Housing Society Limited and accordingly carrying value of such residential flat is reclassfied as "Assets held for sale" in accordance with requirements of Ind AS 105 : Non-current Assets Held for Sale and Discontinued Operations.

Note: Inventories are carried at the lower of cost and net realisable value. The Company has recorded inventory write down of '' 45 Lakhs during financial year 2023-24 (NIL during financial year 2022-23) which is included as part of cost of materials consumed.

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of '' 10 per share. Each holder of the Equity Shares is entitled to one vote per share. The Company declares and pays dividend proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by shareholders.

Description of the nature and purpose of Other Equity

General Reserve: The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividends and adjustments on account of transition to Ind AS.

Note: The Board of Directors in their meeting held on May 23, 2024 have recommended a dividend of '' 1 per Equity Share (March 31, 2023: '' 1.50 per Equity Share) to be approved by the shareholders in the ensuing general meeting. On approval, this will result in an outflow of '' 103 Lakhs (March 31, 2023: '' 155 Lakhs).

(i) The Company has represented to lenders of loans for waiver and amendment with respect to compliance of certain covenants such as current ratio etc, which will not have any financial implication.

(ii) Cash credit facilities from multiple banks are repayable on demand and carry interest rates during the year ranging from 8.80% p.a. to 10.05% p.a.

(iii) Working capital demand loans taken from multiple banks carry interest rates during the year ranging from 7.53% p.a. to 9.14% p.a. These loans are repayable on different dates within three months from the balance sheet date.

(iv) Buyer''s credit is a loan facility extended by bank against import and carries interest rates linked to SOFR during the year ranging from 5.63% p.a. to 6.03% p.a.

(v) Inter-corporate deposits carry interest @ 7.50% p.a till October 31, 2023 and w.e.f November 01, 2023 interest rate was revised to 7.25% p.a.

Note: The above details are in respect of Micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) which have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. Accordingly, there is no undisputed amount overdue as on March 31, 2024, to Micro, Small and Medium Enterprises on account of principal or interest.

Note: Other advances includes ad-hoc payment of '' 20 Lakhs received from Century Rayon Limited (division of Century Textile and Industries Ltd) in compliance of judgement dated November 27, 2019 passed by Honourable Supreme Court in the matter of Civil Appeal no 9063 of 2019 (Arising out of SLP (Civil) no. 6243 of 2019).

* '' 8,587 Lakhs (Previous year '' 8,117 Lakhs) representing demand raised in respect of rent charged of '' 6,451 Lakhs (Previous year '' 5,981 Lakhs) based on market value of property until March 31, 2024 and interest of '' 2,136 Lakhs until December 31, 2020 by Mumbai Port Trust, which is contrary to the order passed by the Hon''ble Supreme Court in 2004. The Company has filed writ petitions before the Hon''ble Bombay High Court challenging the Orders passed by the Tariff Authority for Major Ports - fixing rent (Scale of Rates) retrospectively on the basis of hypothetical market value of open and unencumbered land and has also replied to the demand notices denying the alleged demands. These matters are subjudice.

37. INFORMATION ON SEGMENT REPORTING AS PER IND AS 108 ON "OPERATING SEGMENTS"

Operating Segments are those components of the business whose operating results are regularly reviewed by the Chief Operating Decision making body in the Company to make decisions for performance assessment and resource allocation.

Company is engaged in the business of manufacturing and distribution of Chemicals, which is the only reportable operating segment as per Ind AS 108.

B. Fair Value measurement hierarchy

The fair value of financial instruments as referred to in note (a) have been classified into three categories depending on the inputs used in the valuation technique.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data.

Calculation of fair value

Fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended March 31, 2023.

Financial assets and liabilities measured at fair value as at Balance Sheet date

i. The Fair values of investments in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

ii. The Company entered into forward contracts to hedge foreign currency risks of underlying exposures during FY 2023-2024 as well as in FY 2022-2023.

iii. Financial instruments such as cash and cash equivalents, trade receivables, loans, other financial assets, borrowings, trade payables and

other financial liabilities are stated at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

41. CAPITAL MANAGEMENT AND FINANCIAL RISK MANAGEMENT POLICY A. Capital management

For the purpose of the Company''s capital management, Capital includes Issued Equity Capital and all Other Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Company''s Capital Management is to maximise the shareholders'' value. The Company''s capital management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximise shareholder''s value. The Company is monitoring Capital using the equity ratio as its base, which is total equity divided by total assets. Also, the Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

B. Financial risk management and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Company''s Board. The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations and investments. The Company is exposed to market risk, credit risk, liquidity risk etc. The objective of the Company''s financing policy are to secure solvency, limit financial risks and optimise the cost of capital. The Company''s capital structure is managed using equity and debt ratios as part of the Company''s financial planning.

a. Market risk

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

and borrowings, deposits, investments and derivative financial instruments. The Company has designed risk management framework to control various risks effectively to achieve the business objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The above mentioned risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company''s exposure to and management of these risks are explained below:

i. Foreign currency risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s imports and other payables. During the reporting period the Company has availed and utilised facility of Buyer''s Credit from bank which also exposed the Company to foreign currency risk as buyer''s credit facility is considered as foreign currency loan. The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar. The exposures are hedged as per the policy of the Company.

* In the current as well as previous financial year the Company continues to take Forward cover to hedge its import trade payables, however the exposure of USD 28,49,067 (net) remains as unhedged as on March 31, 2024 and therefore the sensitivity is calculated as above.

ii. Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD. The Company enters into contracts with terms upto 120 days. The Company''s philosophy does not permit any speculative calls on the currency. It is driven by conservatism which guides that management follows conventional wisdom by use of Forward contracts in respect of Trade transactions.

Regulatory requirements: The Company will alter its hedge strategy in relation to the prevailing regulatory framework and guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time. Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

The Company entered into forward cover contracts during FY 2023-2024 as well as in FY 2022-2023.

b. Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings. The Company''s exposure is continuously monitored.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward-looking estimates. At every reporting date, the historically observed default rates are updated and changes in forward-looking estimates are analysed. The Company estimates the following matrix at the reporting date.

Trade Receivable of '' 18,366 Lakhs as at March 31, 2024 forms a significant part of the financial assets carried at amortised cost which is valued considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, management has considered forward looking information. The Company closely monitors its customers on regular basis. Basis this assessment, the allowance for doubtful trade receivables of '' 1,232 Lakhs as at March 31, 2024 is considered adequate.

c. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value The Company maintains a cautious liquidity strategy, with a positive cash balance throughout the year. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

Additional funding required, if any, will be provided by the banks based on undrawn sanctioned working capital facilities.

42. EMPLOYEE BENEFITS

The Company has classified various employee benefits as under:

A. Defined contribution plans

State Defined Contribution Plans

- Employers'' Contribution to Employees'' State Insurance

- Employers'' Contribution to Employees'' Pension Scheme 1995

The Company''s contributions paid/payable to Employees State Insurance Scheme, Employees Pension Schemes, 1995 and other funds, are determined under the relevant approved schemes and/or statutes and are recognised as expense in the Statement of Profit and Loss during the year in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved trusts/ appropriate authorities.

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

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

Each year an Asset: Liability matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk and return profiles. Investment and contribution policies are integrated within this study.

The Company is expected to contribute '' 38 Lakhs to Gratuity fund for the year ended March 31, 2024. (March 31, 2023: '' 61 Lakhs).

(ii) Provident fund

In accordance with Indian law, all eligible employees of the Company in India are entitled to receive benefits under the provident fund plan in which both the employee and employer (at a determined rate) contribute monthly to a Trust set up by the Company to manage the investments and distribute the amounts entitled to employees. This plan is a defined benefit plan as the Company is obligated to provide its members a rate of return which should, at the minimum, meet the interest rate declared by Government administered provident fund. A part of the Company''s contribution is transferred to Government administered pension fund. The contributions made by the Company and the shortfall of interest, if any, are recognised as an expense in statement of profit and loss under employee benefit expenses. In accordance with an actuarial valuation of provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the assumptions as mentioned below, there is no deficiency in the interest cost as the present value of the expected future earnings of the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest of Government administered provident fund.

The plan assets have been primarily invested in Government securities and corporate bonds.

The Company contributed '' 188 Lakhs and '' 164 Lakhs for the year ended March 31, 2024 and March 31, 2023 respectively, to the provident fund.

C. Other long term employee benefits

Compensated absences

Provision in respect of leave encashment benefits has been made based on actuarial valuation carried

out by an independent actuary at the Balance sheet date using Projected Unit Credit method. During the year, the Company has recognised '' 6 Lakhs as an expenses (March 31, 2023: '' 22 Lakhs reversal of provision) in the Statement of Profit and Loss.

43. DISCLOSURES OF TRANSACTIONS WITH RELATED PARTIES REQUIRED UNDER IND AS 24 ON "RELATED PARTY DISCLOSURES"

A. List of Related Parties

(I) Holding Company Allana Exports Private Limited

(II) Fellow Subsidiaries (with which, the Company has transactions)

Frigorifico Allana Private Limited Indagro Foods Private Limited Allanasons Private Limited

Allana Investment & Trading Company Private Limited

*As the liabilities for defined benefit plans and compensated absences are provided on actuarial basis for the Company as a whole, the amounts pertaining to Key Management Personnel are not included.

All Related Party Transactions entered during the year were in ordinary course of the business and on arm''s length basis.There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: '' NIL).This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The reason for change in ratios (change of 25% or more as compared to the immediately previous financial year) are as under:

$ Debt-Equity Ratio is decreased due to increase in reserves and surplus and decrease in borrowings.

# Return on equity ratio is decreased due to decrease in Profit after tax.

* Net Capital Ratio is decreased due to decrease in Sales and increase in average networth.

@ Net profit ratio is decreased due to decrease in Profit after tax.

** Return on Capital employed is decreased due to decrease in Earning before interest and taxes.

45. OTHER STATUTORY INFORMATION

i. There are no balance outstanding on account of any transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

ii. The Company does not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost to its original plan.

iii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entitles (Intermediaries) with the understanding that the Intermediary shall:

a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf the Company (Ultimate Beneficiaries); or

b. Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.

iv. 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 will:

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

b. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v. The Company has not entered into 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.

46 . The figures for the previous year have been regrouped/reclassified to correspond with current year''s classification/disclosure.

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Mar 31, 2018

1. Corporate Information

IVP Limited ("the Company") is engaged in Chemical Manufacturing business.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Shashikant N. Redj Marg, Ghorupdeo, Mumbai 400 033. The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange (NSE) of India Limited.

The financial statements for the year ended March 31, 2018 are approved for issue by the Company''s Board of Directors on May 24, 2018.

Notes:

(i) Cost of Investment is represented by:

* 630 Equity Shares of Rs 10/- each fully paid up in Carmel Properties Pvt. Ltd.

* 1725 Debentures of Rs 100/- each fully paid up in Carmel Properties Pvt. Ltd."

(ii) Since Cost of Investment Property is in the form of investments in Equity Shares and Debentures, as also considering the materiality of the amount involved, depreciation is not charged on such Investment Property."

Notes:

(i) The Company has availed working capital facilities and other non-fund based facilities viz., Bank Gaurantees and Letter of Credits.

Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of R 10 per share. Each holder of the Equity Shares is entitled to one vote per share. The Company declares and pays dividend proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by shareholders.

Description of the nature and purpose of Other Equity

General Reserve : The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes.

The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividends and adjustments on account of transition to Ind AS.

Note: The Board of Directors in their meeting held on May 24, 2018 have recommended a dividend of Rs 2 per Equity Share (previous year R 2 per equity share) to be approved by the shareholders in the ensuing general meeting. On approval, this will result in an outflow of R 248.98 Lakhs (previous year Rs 248.57 Lakhs) including dividend distribution tax.

Note: This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been indentified on the basis of information available with the Company.

2. Information on Segment Reporting as per Ind AS 108 on "Operating Segments''''

Operating Segments are those components of the business whose oprating results are regularly reviewed by the Chief Operating Decision making body in the company to make decisions for performance assessment and resource allocation.

During the year, the Company was engaged in the business of manufacturing of Chemicals, which is the only reportable operating segment as per Ind AS 108.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances on account of trade receivable, trade payable, other receivable, other payable and interest receivable on loan at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received in respect of outstanding receivables or payables from/to any related party. This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

3. Capital Management and Financial Risk Management Policy

A. Capital Management

For the purpose of the Company''s Capital Management, Capital includes issued Equity Capital and all Other Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Company''s Capital Management is to maximise the shareholders'' value. The Company''s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximise shareholder''s value. The Company is monitoring Capital using debt equity ratio as its base, which is debt to equity. The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.

B. Financial Risk Management and Policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Company''s Board. 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 and to provide guarantees to support its operations in select instances. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations and investments. The company is exposed to market risk, credit risk, liquidity risk etc. The objective of the Company''s financing policy are to secure solvency, limit financial risks and optimise the cost of capital. The Company''s capital structure is managed using equity and debt ratios as part of the Company''s financial planning.

a. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative financial instruments.The Company has designed risk management framework to control various risks effectively to achieve the business objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The above mentioned risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company''s exposure to and management of these risks are explained below:

i. Foreign Currency Risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s export, import and other payables. The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar.

ii. Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD. The Company enters into contracts with terms upto 90 days. The Company''s philosophy does not permit any speculative calls on the currency. It is driven by conservatism which guides that we follow conventional wisdom by use of Forward contracts in respect of Trade transactions.

Regulatory Requirements: The Company will alter its hedge strategy in relation to the prevailing regulatory framework and guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time. Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

Though the Company did not enter into any forward contract during FY 2017-18, such contracts were entered into for FY 2016-17 and FY 2015-16.

b. Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies. The companies exposure are continuously monitored.

The Company uses a provision matrix to determine impairment loss on portfolio of its Trade Receivables. The provision matrix is based on its historically observed default rates over the expected life of the Trade Receivable and is adjusted for forward-looking estimates. At every reporting date, the historically observed default rates are updated and changes in forward-looking estimates are analysed. The Company estimates the following matrix at the reporting date.

c. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value The Company maintains a cautious liquidity strategy, with a positive cash balance throughout the year. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

4. Employee Benefits

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

Provident Fund

State Defined Contribution Plans

Employers'' Contribution to Employees'' State Insurance Employers'' Contribution to Employees'' Pension Scheme 1995

The Provident Fund and the State Defined Contribution Plans are operated by IVP Limited Trust Fund and the Superannuation Fund is administered by IVP Limited as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

vi. The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

vii. The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

viii. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

ix. Gratuity fund asset is managed by IVP Limited has funding ratio of 100% (i.e. asset over liability ratio of 100%), which is on the top when compared to other companies, there is no material risk of the Company unable to meet the Gratuity payments. Also as the fund is set up as a trust, the monies as a part of the trust will not flow back into the company until the last employee of the trust is paid.

Note on other risks:

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.

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

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.

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.

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.

Note on Sensitivity Analysis

Sensitivity analysis for each significant actuarial assumptions of the Company which are discount rate and salary assumptions as of the end of the reporting period, showing how the defined benefit obligation would have been affected by changes is called out in the table above.

The method used to calculate the liability in these scenarios is by keeping all the other parameters and the data same as in the base liability calculation except for the parameters to be stressed.

There is no change in the method from the previous period and the points /percentage by which the assumptions are stressed are same to that in the previous year.

5. Financial Instruments

Fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Valuation

i. The Fair values of investments in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

ii. The Fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at the Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

iii. The Company did not enter into any forward contracts during FY 17-18, such contracts were entered into for FY 16-17 and FY 15-16.

iv. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value measurement heirarchy

The fair value of financial instruments as referred below have been classified into three categories depending on the inputs used in the valuation technique.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data.

6. The Company has entered into agreement in the nature of Lease or Leave and Licence agreement with different lessors/licensors for the purpose of operating its factories and offices. These agreements are generally in the nature of operating lease or leave and licence and renewable or cancellable at the option of lessees or lessors. In view of the above, there are no disclosures required as per the Ind-AS 17 issued by Ministry of Corporate Affairs.

7. The Company has incurred an expenditure of Rs 82.51 Lakhs (2016-17: Rs 57.51 Lakhs)(2015-16: Rs 26.35 Lakhs) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

8. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realise at least the value at which they appear in the books of accounts in aggregate, as required by the Ind AS 36 on ''Impairment of Assets'' issued by Ministry of Corporate Affairs.

9. Trade Receivables, Trade Payables and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

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Mar 31, 2017

Terms/Rights attached to Equity Shares

The Company has only one class of Equity shares having a par value of Rs. 10 per share. Each holder of the Equity shares is entitled to one vote per share. The Company declares and pays dividend proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company , after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by shareholders.

1. Transitional provisions specified in Accounting Standard 10 on “Property, Plant and Equipment”, as introduced by the Companies (Accounting Standards) Amendment Rules, 2016, provide that in case an enterprise does not adopt the revaluation model as its accounting policy, but if there is any previous revaluation reflected in the carrying amount of an item of Property, Plant and Equipment, the amount outstanding in the Revaluation Reserve is to be adjusted against the carrying amount of that item, maximum up to its residual value. Thereafter, any excess amount in the Revaluation Reserve is to be adjusted in revenue reserves. In terms thereof, the Company has adjusted the Revaluation Reserve of Rs. 120,91,322 against the carrying amounts of Leasehold Land, Building and Plant & Machinery. Thereafter, the balance of Rs. 57,374 outstanding as Revaluation Reserve is adjusted in General Reserve. Further, due to the said adjustment as per the transitional provisions, depreciation for the year is lower by Rs. 29,257 and the net profit for the year is higher by the like amount; and unlike earlier years, no amount on account of depreciation is transferred from the Revaluation Reserve to General Reserve.

2. The company proposes to declare dividend of Rs. 2/- per share after March 31, 2017, for FY 2016-17 which has been recommended by the Board of Directors in the meeting held on May 23, 2017 which would be approved by the shareholders.

3. As per the Revised Accounting Standard 4 (Contingencies and Events Occurring after the Balance Sheet Date) issued by the Institute of Chartered Accountants of India, the said proposed dividend and corporate dividend tax thereon would be recorded in the Financial statements only on the approval by shareholders during the

4. Other Liabilities include a non committed amount of Rs. 120,000,000 (2015-16: Rs. 120,000,000) received from a party interested to purchase company''s property

5. Information on Segment Reporting as per Accounting Standard 17 Primary Segments - Business Segments

During the year the Company was engaged in the business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17

6. The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

7. Amounts receivable in foreign currency on account of export of goods : USD 6,495 (2015-16: USD 11,200)

8. Amounts payable in foreign currency on account of import of goods : Nil (2015-16 Nil)

9. Employee benefits:

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 ‘Employee Benefits'' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS -15

10. Disclosure on leases as per Accounting Standard - 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessor. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by The Institute of Chartered Accountants of India.

11. Provision for Taxation has been made without considering the impact of "Income Computation and Disclosure Standard" ("Tax Accounting Standards") issued by The Finance (2) Act, 2014 by the Central Board of Direct Taxes under provisions of Section 145 (2) of the Income Tax Act, 1961 with effect from 01st day of April, 2017 in relation to Assessment Year 2017-18.

12. The Company has been sanctioned a limit of Rs. 22 crores 90 lakhs (FY 2015-2016 Rs. 20 crores 40 lakhs) as Cash Credits, Letter of Credits, Bank Guarantees etc., by banks, which are secured by pari - passu charge over whole of Current Assets. The Company has availed such credit facility during the year.

13. The company has incurred expenditure of Rs. 5,750,565 (2015-16: Rs. 2,635,174) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

14. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on ‘Impairment of Assets’ issued by the Institute of Chartered Accountants of India.

15. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

16. The previous year’s figures, wherever necessary have been regrouped, reclassified and recast to confirm with this year’s classification.

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Mar 31, 2016

(i) Buildings include :

(a) Rs.100/- representing value of a fully paid up share in a condominium and

(b) Cost of 86 shares of Rs.50/- each and 172 loan stock bond certificate of Rs.100/- each held in Surya - Kiron Co - operative Housing Society Limited in respect of a residential flat

(ii) The title deed of land at Aurangabad has now been transferred in the name of the company and is now registered with the Sub-Registrar of Aurangabad on 04.06.15

(iii) The above Gross Block includes Rs. 1,45,99,324 added on revaluation of Freehold Land, Factory Buildings and Plant & Machinery of Mumbai-Reay Road Factory as at 31st December 1984 and Rs. 1,82,55,883 added on revolution of leasehold land, factory building, office buildings and Plant & machinery at Tarapur as at 31st March, 1989 on the basis of fair market valuation report of technical consultant.

(iv) During the previous year, the company has aligned the useful life of fixed assets in line with Part C of the Schedule II of the Companies Act, 2013. The written down value of the fixed assets, whose useful life as per Part C of the Schedule II of the Companies Act, 2013 had expired as at 31st March, 2014 was Rs 2,22,28,049. Of this amount debited to opening reserve was Rs 18,606,421 and amount debited to Revaluation Reserve was Rs 36,21,628. Net of deferred tax of Rs 60,37,784/- the amount debited to retained earnings worked out to Rs 16,190,265.

(v) During the year, the company has provided depreciation on the revalued figure of leasehold land and building instead of on historical cost as required in Para 36 of The Application Guide on the provision of Schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India. As a result of which, the depreciation charged to Profit & Loss account is higher by Rs 29,698 and profit is lower by like amount.

* Including Rs.115,214,992 (2014-15 Rs.100,709,508) in respect of charging of rent on market value of property by Mumbai Port Trust, which is at variance with the order passed by the Hon''ble Supreme Court in 2004. The Company has filed a writ petition in the Hon''ble High Court at Mumbai challenging the method of charging rent on market value basis by Mumbai Port Trust.

1. Cost of material consumed include write-down of inventories to its net realizable value Rs. Nil (2014-15 Rs. 789,938).

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

(ii) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

(a) Amounts receivable in foreign currency on account of export of goods : USD 11,200 (2014-15: USD 130,573)

(b) Amounts payable in foreign currency on account of import of goods : Nil (2014-15 : USD 53,714)

2. Employee benefits:

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 ‘Employee Benefits'' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS -15

Defined Contribution Plan:

Contribution to defined contribution plan, recognized in the statement of profit and loss under ‘Payment to and provision for employees'', in Note No. 23 for the year are as under

3. Disclosure on leases as per Accounting Standard - 19 on “Accounting for Leases”:

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessons / licensors for the purpose of operating its factories and offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessons. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by The Institute of Chartered Accountants of India.

4. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on ‘Impairment of Assets'' issued by the Institute of Chartered Accountants of India.

5. The Company has been sanctioned a limit of Rs 20 crores 40 lakhs (2014-2015 Rs. 20 crores 40 lakhs) as Cash Credits, Letter of Credits, Bank Guarantees etc., by banks, which are secured by pari - passu charge over whole of Current Assets. The Company has availed such credit facility by way of Secured Loans during the year and there is no outstanding in respect of Cash Credit Facility at the end of the current year and at the end of the previous year.

6. The company has incurred expenditure of Rs.2,635,174 (2014-15: Rs. 1,809,468) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

7. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

8. The previous year''s figures, wherever necessary have been regrouped, reclassified and recast to confirm with this year''s classification.

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Mar 31, 2015

Terms/Rights attached to Equity Shares

The Company has only one class of Equity shares having a par value of Rs 10 per share. Each holder of the Equity shares is entitled to one vote per share. The Company declares and pays dividend proposed by the Board of Directors subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the current year, the dividend amount of Rs. 2/- per share is proposed.

In the event of liquidation of the company, the holders of the Equity Shares will be entitled to receive remaining assets of the Company , after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by shareholders.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (2013 - 14 Rs. 15,350,000)

3. Contingent Liabilities not provided for in respect of disputed demands:

Particulars 2014 - 15 2013 - 14 Rupees Rupees

1. * Claims against the Company not acknowledged as Debts 112,716,357 98,983,380

2. Bank Guarantee issued by the Company 4,005,356 2,225,479

3. Government Authorities for VAT, Service tax and Excise matters 9,511,403 13,206,764

* Including Rs. 100,709,508 (previous year Rs. 86,976,531) in respect of charging rent on market value of property by Mumbai Port Trust, which is in variance with the order passed by the Hon'ble Supreme Court in 2004. The Company has filed a writ petition in the Hon'ble High Court at Mumbai challenging the method of charging rent on market value basis by Mumbai Port Trust.

4. Cost of material consumed include write - down of inventories to its net realizable value Rs. 789,938 (2013 - 14 Rs.824,253).

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Other Liabilities include a non committed amount of Rs. 120,000,000 (2013 - 14: Rs 120,000,000) received from a party interested to purchase company's property

6. Information on Segment Reporting as per Accounting Standard 17 Primary Segments - Business Segments

During the year the Company was engaged in the business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17.

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

(a) Amounts receivable in foreign currency on account of export of goods USD 130,573 (2013 - 14: USD 68,726) and on account of services Euro Nil (2013 - 14: Euro 12,031)

(b) Amounts payable in foreign currency on account of import of goods USD 53,714 (2013 - 14 USD 9,743)

7. Employee benefits:

Effective April 1,2007 the Company has adopted revised Accounting Standard 15 'Employee Benefits' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS - 15

Defined Contribution Plan:

Contribution to defined contribution plan, recognized in the statement of profit and loss under 'Payment to and provision for employees', in Note No. 23 for the year are as under

8. Disclosure on leases as per Accounting Standard - 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by The Institute of Chartered Accountants of India.

9. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India.

10. The Company has sanctioned limit of Rs 20 crores 40 lakhs (FY 2013 - 2014 Rs. 20 crores 40 lakhs) as Cash Credits, Letter of Credits, Bank Guarantees etc., by banks, which are secured by pari - passu charge over whole of Current Assets. The Company has availed such credit facility by way of Secured Loans during the year and there is no outstanding in respect of Cash Credit Facility at the end of the current year and at the end of the previous year.

11. The company has incurred expenditure of Rs. 1,809,468 (2013 - 14: Rs. 1,779,259) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

12. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

13. The previous year's figures, wherever necessary have been regrouped, reclassified and recast to confirm with this year's classification.

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Mar 31, 2014

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.15,350,000 (2012-13: Rs. 2,260,042)

2. Contingent Liabilities not provided for in respect of disputed demands:

2013-14 2012-13 Particulars Rupees Rupees

1. Claims against the Company not acknowledged as Debts 2,396,000 2,396,000

2. Bank Guarantee with Parties 2,225,479 20,000,000

3. Bank Guarantee for Customs Duty / Octroi -- 771,670

4. Sales Tax [VAT of various states and CST] 4,435,078 4,435,078

5. Excise / Service Tax 8,720,024 9,637,191

6. Mumbai Agricultural Produce marketing Committee (APMC) 1,797,879 1,797,879

7. Electricity Charges 195,829 195,829

8. Mumbai Port Trust * 86,976,531 73,771,739

9. Infrastructure Damage Charges 7,617,141 7,617,141

10. Duty on Export obligation pending against Advance Licence 51,662 --

* The Company has filed a writ petition in the Hon''ble High Court at Mumbai challenging the charging of rent on market value of property as also not renewing the lease up to year 2024 which is violative of the order passed by the Hon''ble Supreme Court on January 13, 2004 and the same has been admitted on January 24, 2012 which is pending for disposal.

3. The charge to the statement of profit and loss consequent to the write-down inventories to its net realizable is Rs. 8,24,253 (2012-13 Rs. 349,207).

4. Other Liabilities include a non committed amount of Rs. 120,000,000 (2012-13: Rs 120,000,000) received from a party interested to purchase company''s property.

5. Information on Segment Reporting as per Accounting Standard 17 Primary Segments - Business Segments

During the year the Company was engaged in the business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17.

6. Employee benefits:

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 ''Employee Benefits'' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS -15

7. Disclosure on leases as per Accounting Standard – 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and branch offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by the Institute of Chartered Accountants of India.

8. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India.

9. The Company has been sanctioned a limit of Rs 20 crores 40 lakhs (FY 2012-2013 Rs. 20 crores) as Cash Credits, Letter of Credits, Bank Guarantees etc., by consortium of banks, which are secured by pari - passu charge over whole of Current Assets. The Company has availed such credit facility by way of Secured Loans during the year and there is no outstanding in respect of Cash Credit Facility at the end of the year.

10. Exceptional Item in FY 2012-2013 represents compensation paid to workers on closure of Foundry Chemicals factory at Golmuri, Jamshedpur.

11. The company has incurred expenditure of Rs. 1,779,259 (2012-13: Rs. 1,909,054) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

12. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

13. The previous year''s figures, wherever necessary have been regrouped, reclassified and recast to confirm with this year classification.

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Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2,260,042 (2011-12: Rs. 533,157)

2. Contingent Liabilities not provided for in respect of disputed demands :

2012-13 2011-12

Particulars Rupees Rupees

1. Claims against the Company not acknowledged as Debts 2,396,000 2,661,000

2. Bank Guarantee with Parties 20,000,000 25,118,991

3. Bank Guarantee for Customs Duty / Octroi 771,670 771,670

4. Sales Tax [VAT of various states and CST] {(includes bank Guarantee 4,435,078 5,158,862 Rs.45,317 (Rs.45,317)}

5. Excise / Service Tax 9,637,191 10,337,191

6. Mumbai Agricultural Produce marketing Committee (APMC) 1,797,879 1,797,879

7. Electricity Charges 195,829 195,829

8. Mumbai Port Trust * 73,771,739 61,074,812

9. Infrastructure Damage Charge 7,617,141

* The Company has filed a writ petition in the Hon''ble High Court at Mumbai Challenging the charging of rent on Market value of property as also not renewing the lease up to year 2024 which is vocative of the order passed by the Hon''ble Supreme Court on January 13, 2004 and the same has been admitted on January 24, 2012 which is pending for disposal.

Note: Figures in Brackets indicate corresponding figures for previous year.

3. The charge to the statement of profit and loss consequent to the write-down inventories to its net realizable is Rs.349,207 (2011-12 Rs.273,748).

4. Other Liabilities include a non committed amount of Rs. 120,000,000 (2011-12: Rs 120,000,000) received from a party interested to purchase company''s property

5. Information on Segment Reporting as per Accounting Standard 17 Primary Segments - Business Segments

During the year the Company was engaged in the business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17.

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

(a) Amounts receivable in foreign currency on account of export of goods USD 74,006 (2011-12: USD 55,008)

(b) Amounts payable in foreign currency on account of import of goods USD 20,044 (2011-12: 206,809)

6. Employee benefits :

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 ''Employee Benefits'' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS -15

7. Disclosure on leases as per Accounting Standard - 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and branch offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by the Institute of Chartered Accountants of India.

8. No provision for impairment of assets of the company is required,as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on ''Impairment of Assets'' issued by the Institute of Chartered Accountants of India.

9. The Company has been sanctioned a limit of Rs20 Crores (FY 2011-2012: 20Crores) as Cash Credits, Letter of Credits etc., by consortium of banks, which are secured by pari - passu charge over whole of Current Assets and during the year the Company has availed such credit facility by way of Secured Loans.

10. Exceptional Item represents compensation paid to workers on closure of Foundry Chemicals factory at Golmuri, Jamshedpur.

11. The company has incurred expenditure of Rs.1,909,054 (2011-12: Rs.1.683,951) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

12. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

13. The previous year''s figures, wherever necessary have been regrouped, reclassified and recasted to confirm with this years classification.

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Mar 31, 2012

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 533,157 (2010-11-RS.4,160,915)

2. Contingent Liabilities not provided for in respect of disputed demands :

2011-12 2010-11

Particulars Amount Amount Rs. Rs.

1. Claims against the Company not acknowledged as Debts 2,661,000 2,661,000

2. Bank Guarantee with Parties 25,118,991 25,035,000

3. Bank Guarantee for Customs Duty / Octroi 771,670 721,670

4. Pollution Board Bank Guarantee Nil 100,000

5. Sales Tax [VAT of various states and CST] {(includes bank Guarantee 5,158,862 110,037,228 Rs.45,317/- (Rs.350,000)}

6. Excise / Service Tax 10,337,191 9,637,191

7. Mumbai Agricultural Produce marketing Committee (APMC) 1,797,879 1,797,879

8. Electricity Charges 195,829 195,829

9. Mumbai Port Trust * 61,074,812 49,090,078

* The Company has filed a writ petition in the Hon'ble High Court at Mumbai challenging the charging of rent on market value of property as also not renewing the lease up to year 2024 which is volatile of the order passed by the Hon'ble Supreme Court on January 13, 2004. The Writ Petition has been admitted on January 24, 2012 and is pending for disposal.

Note: Figures in Brackets indicate corresponding figures for previous year.

3. The charge to the profit and loss account consequent to the write-down inventories to its net realizable is Rs.273,748/- (Previous year Rs. Nil).

4. Other Liabilities include a non committed amount of Rs. 120,000,000/- (Previous year Rs. 105,000,000/-) received from a party interested to purchase company's property

Note: The Company had granted loan of Rs.500,000 (maximum outstanding during the year Rs.500,000) [FY 2010-2011 NIL] to the Whole Time Director Mr. M S I Lakdawala, the said loan has been repaid during the year.

5. Derivative Instruments :

The following are outstanding Forward Exchange Contracts entered into by the company

2011-12 2010-11

USD 653,560 USD 230,775 (Buy) (Buy)

The yearend foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below

(a) Amounts receivable in foreign currency on account of export of goods USD 55,008 (Previous year USD 4,932)

(b) Amounts payable in foreign currency on account of import of goods - Nil (*) (Previous Year Nil) (*) [Import Purchases of USD 206,809 relating to March 31, 2012 has been hedged by a derivative instrument on April 3, 2012],

6. Employee benefits :

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 'Employee Benefits' Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS -15

7. Disclosure on leases as per Accounting Standard - 19 on "Accounting for Leases :

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and branch offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancellable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by the Institute of Chartered Accountants of India.

8. No provision for impairment of assets of the company is required, as in the opinion of the management, realizable value of all the assets and their net present value of estimated future cash flows expected to arise from the assets taken as a whole will realize at least the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India.

9. The Company has been sanctioned a limit of Rs. 20 Crores (FY 2010-2011 10Crores) as Cash Credits, Letter of Credits etc., by consortium of banks, which are secured by pari - passu charge over whole of Current Assets. The Company has availed such credit facility by way of Secured Loans during the year and there is no outstanding in respect of Cash Credits at the year end.

10. The company has incurred expenditure of Rs. 16,83,951 (2010-11 Rs. 15,56,165/-) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

11. Debtors, Creditors and Bank Balances of inoperative accounts of the company are subject to confirmation and subsequent reconciliations, if any.

12. The previous year's figures, wherever necessary have been regrouped, reclassified and recast to confirm with this years classification.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.4,160,915 (2009-2010 Rs. 4,336,362).

2. (a) During the year the Company has entered into Memorandum of Settlement in respect of payment of Rs.32,500,013 to temporary workers of Reay Road factory, as a result of which all pending litigation has been withdrawn. The terms of consent have been filed with The Industrial Tribunal, Mumbai and the same has been confirmed vide Order dated 06.05.10.

(b) The Previous year's figure represents settlement amount in respect of permanent workers at Reay Road factory and the Court has disposed of the appeal in terms of consent filed with Honorable High Court, Mumbai, which has been confirmed vide Order dated 06.05.10.

3. No provision for Impairment of assets of the company is required as in the opinion of the management, realisable value of all the assets and the present value of estimated future cash flows expected to arise from the assets taken as a whole will realise atleast the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India.

4. Contingent liabilities not provided for in respect of disputed demands :

2010-2011 2009-2010 Rupees Rupees

(a) Sales tax [includes Bank guarantee Rs.350,000 (Nil)] 110,037,228 118,099,429

(b) Excise/ServiceTax[includes Bank guarantee Nil (Rs.700,000)] 9,637,191 10,375,349

(c) Bank guarantee for Customs duty/Octroi 721,670 671,670

(d) Mumbai Agricultural Produce Marketing Committee (APMC) 1,797,879 1,797,879

(e) Electricity charges 195,829 195,829

(f) Pollution Board Bank guarantee 100,000 25,000

(g) Mumbai Port Trust 49,090,078 37,566,299

(h) Claims against the company not acknowledged as debts 2,661,000 2,661,000

(i) Bank Guarantee with parties 25,035,000 -

Figures in Brackets indicate corresponding figures for previous year.

5. The company has incurred expenditure of Rs.1,556,165 (2009-10 Rs.1,745,108) on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimisation, etc. which has been certified by the management.

6. The charge to the profit and loss account consequent to the write-down of inventories to its net realisable value is Nil (2009-2010 Rs.799,754).

7. Other Liabilities includes a non committed amount of Rs.105,000,000 received from a party interested to purchase company's property.

8. Information on Segment Reporting as per Accounting Standard 17: Primary Segments - Business Segments

During the year the Company was engaged in the Business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17.

9. Employee benefits :

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 'Employee Benefits'. Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS-15.

10. Disclosure on leases as per Accounting Standard - 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and Branch offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by the Institute of Chartered Accountants of India.

11. Debtors and Creditors of the company are subject to confirmation and subsequent reconciliation, if any.

12. Figures for the previous year have been recast/ regrouped wherever necessary.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.43,36,362 (2008-2009 Rs. 634,306).

2. The company has a limit of Rs. 2 crores (2008-2009 Rs. 8 crores) for cash credits and letter of credit etc. from banks which are secured by hypothecation of whole of the current assets. The Company has availed such credit facility by way of Secured Loans during the year and there is no outstanding in respect of cash credit facility.

3. The Division Bench of Mumbai High Court, by its interim order passed on December 16, 2009 had continued to grant stay of operation of the award of the Industrial Tribunal dated July 19, 2007 rejecting the Companys application for closure of Reay Road factory. However, the Division Bench directed, in the interim order, to pay last drawn wages from the date of admission of appeal, as also to deposit in court 20% of back wages due to the workmen from the date of refusal of permission for closure till the date of admission of appeal. Further, the compliance of the order of the Division Bench of Honorable Mumbai High Court had been kept in abeyance pending the outcome of discussion already initiated for an out-of-court settlement. Accordingly, the memorandum of settlement between the Company and the permanent workers has been entered into on May 06, 2010. Considering this is a significant event after the Balance Sheet date which gave rise to an obligation to make the payment of Rs. 71,508,409 has resulted into an impact on the financial position of the company and as such the necessary provisions have been made in the Books of Accounts. However, the Company and the Workers Union have jointly filed Consent Terms before the Honorable Mumbai High Court on May 6, 2010 in terms of which all pending litigation will stand withdrawn. Final Court order is awaited.

4. A certain number of Temporary Workers employed by Companys Reay Road factory had filed complaints before the Labour Court / Tribunal in Mumbai alleging that they were entitled to permanency in the employment of the Company as also payment of wages at the rate applicable to the Permanent Workers. This matter has been pending in litigation as at the Balance Sheet date i.e. March 31, 2010. However, the Union representing the concerned workers which is a party in the litigation approached the Company subsequent to the balance sheet date for an out of court settlement of the litigation and accordingly Memorandum of Settlement was signed between the parties on May 6, 2010 and filed before the court on the same date and payment of Rs.3,25,00,013 has been made in terms of the settlement, in terms of which all pending litigation will stand withdrawn. Final Court order is awaited.

The obligation for this post Balance Sheet event has been considered by the Company as not existing on the Balance Sheet date and hence no provision is made in the books as on March 31, 2010.

5. (i) No provision for Impairment of assets of the discontinued business of Reay Road unit has been made, as in the opinion of the management, assets of Reay Road unit taken as a whole will realise atleast the value at which they appear in the books of accounts in aggregate.

(ii) No provision for Impairment of assets of the company other than discontinued operation is required as in the opinion of the management, realisable value of all the assets and the present value of estimated future cash flows expected to arise from the assets taken as a whole will realise atleast the value at which they appear in the books of accounts in aggregate, as required by Accounting Standard 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India

6. The Company has proposed to declare dividend of Rs 1,03,26,263, (being 10% on the paid up Share Capital of the Company) on which Corporate Dividend Tax is Rs 17,54,948 for the Financial Year ended on March 31, 2010. However, in view of current year loss, the company has proposed to declare the dividend out of the opening balance of Profit & Loss appropriation account of Rs 84,95,668/- and the balance of Rs 35,85,543/- out of the amount withdrawn from accumulated General Reserve transferred to Profit & Loss Appropriation Account in accordance with Companies (Declaration of Dividend Out of Reserves) Rules, 1975.

7. Contingent liabilities not provided for in respect of disputed demands :

2009-2010 2008-2009 Rupees Rupees

(a) Sales tax 118,099,429 119,147,736

(c) Excise duty / Service tax 10,375,349 8,758,182

(d) Customs duty 671,670 671,670

(e) Mumbai Agricultural Produce Marketing Committee (APMC) 1,797,879 1,797,879

(f) Electricity / Water charges / Pollution Board 220,829 919,378

(g) Mumbai Port Trust 37,566,299 26,384,292

(h) Claims against the company not acknowledged as debts 2,661,000 2,661,000

8. The company has incurred expenditure of Rs. 1,745,108 on improving product quality, import substitution, process modification, fuel consumption, raw material cost optimization, etc. which has been certified by the management.

9. The charge to the profit and loss account consequent to the write-down of inventories to its net realisable value is Rs. 799,754 ( 2008-2009 Nil).

10. No provision for taxation is made in view of brought forward business losses and unabsorbed depreciation of earlier years & in view of current year loss.

11. Information on Segment Reporting as per Accounting Standard 17: Primary Segments - Business Segments

During the year the Company was engaged in the Business of manufacturing of Foundry Chemicals, which is the only reportable segment as per Accounting Standard 17.

12. Employee benefits :

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 Employee Benefits. Pursuant to the adoption, no adjustment was required to be made to general reserve as there is no impact of revised AS-15.

13. Disclosure on leases as per Accounting Standard 19 on "Accounting for Leases":

The Company has entered into agreement in the nature of lease or Leave and License agreement with different lessors / licensors for the purpose of operating its factories and Branch offices. These agreements are generally in the nature of operating lease or leave and license and renewable or cancelable at the option of lessees or lessors. In the view of above there are no disclosures required as per the Accounting Standard 19 issued by the Institute of Chartered Accountants of India.

14. Debtors and Creditors of the company are subject to confirmation and subsequent reconciliation, if any.

15. Figures for the previous year have been recast/ regrouped wherever necessary.