Shree Ganesh Remedies Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

i. Provisions and contingent liabilities

The Company recognises a provision when there is a present
legal or constructive obligation as a result of a past events, it is
probable that an outflow of resources will be required to settle
the obligation and the amount can be reliably estimated.

Long term provisions are measured at the present value of
management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is
recognised as interest expense.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation that the
likelihood of outflow of resources is remote, no provision or
disclosure is made.

j. Revenue recognition

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer at an amount that reflects the consideration
entitled in exchange for those goods or services. The
Company is generally the principal as it typically controls the
goods or services before transferring them to the customer.
Revenue is measured at the amount of consideration which the
Company expects to be entitled to in exchange for transferring
distinct goods or services to a customer as specified in the
contract, excluding amounts collected on behalf of third
parties (for example taxes and duties collected on behalf of the
government). Consideration is generally due upon satisfaction
of performance obligations and a receivable is recognised
when it becomes unconditional.

Revenue from services, including those embedded in contract
for sale of goods, namely, freight and insurance services
mainly in case of export sales, is recognised in proportion of
completion of services.

Government grants are recognised at their fair value if there
is reasonable assurance that the grant will be received and
all related conditions will be complied with. Cost grants are
recognised as income over the periods necessary to match
the grant on a systematic basis to the cost that it is intended
to compensate. If the grant is an investment grant, its fair value

is initially recognised as deferred income in Other non-current
liabilities and then released to profit or loss over the expected
useful life of the relevant asset.

Other Income

Dividend income is accounted for when the right to receive
dividend is established and amount of dividend can be
measured reliably.

Interest is recognised only when no uncertainty as to
measurability or collectability exists. Interest on fixed deposits
is recognised on time proportion basis considering the amount
outstanding and the rate applicable.

Eligible export incentives are recognised in the year in which
the conditions precedent are met and there is no significant
uncertainty about the collectability.

k. Impairment of Tangible and Intangible Assets

The Company assesses, at each reporting date, whether there
is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is
required, the Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s (CGU) fair value less costs
of disposal and its value in use. Recoverable amount is
determined for an individual asset unless the asset does not
generate cash inflows that are largely independent of those
from other assets or Company’s assets. When the carrying
amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its
recoverable amount.

l. Employee Benefits

i) Defined contribution plans

The Group’s contribution to Provident Fund and Employee
State Insurance Scheme are considered as defined
contribution plans and are charged as an expense based on
the amount of contribution required to be made and when
services are rendered by the employees.

ii) Defined benefit plans (Gratuity)

In accordance with applicable Indian Law, the Company
provides for gratuity, a defined benefit retirement plan (the
Gratuity plan) covering eligible employees. The Gratuity
Plan provides a lump sum payment to vested employees, at
retirement or termination of employment, and amount based
on respective last drawn salary and the years of employment
with the Company. The Company’s net obligation in respect
of the Gratuity Plan is calculated by estimating the amount of
future benefits that the employees have earned in return of
their service in the current and prior periods; that benefit is
discounted to determine its present value. Any unrecognised
past service cost and the fair value of plan assets are deducted.
The discount rate is the yield at reporting date on risk free
government bonds that have maturity dates approximating
the terms of the Company’s obligation. The calculation is
performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a benefit to
the Company, the recognised asset is limited to the total of any
unrecognised past service cost and the present value of the
economic benefits available in the form of any future refunds
from the plan or reduction in future contribution to the plan.

The Company recognises all re-measurements of net defined
benefit liability/asset directly in other comprehensive income.

m. Leases
As a lessee

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

The right-of-use assets are subsequently depreciated using
the straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or
the end of the lease term. In addition, the right-of use asset
is periodically reduced by impairment losses, if any, and
adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at amortised cost at
the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined,
using the incremental borrowing rate.

Short-term leases and leases of low-value assets

The company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases of real estate
properties that have a lease term of less than 12 months. The
company recognises the lease payments associated with
these leases as an expense on a straight line basis over the
lease term.

n. Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange
rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currencies are translated in
functional currency at closing rates of exchange at the reporting
date for the year. Non-monetary assets and liabilities are carried
at the rates prevailing on the date of transaction.

Exchange differences arising on settlement or translation of
monetary items recognised in statement of profit and loss.

o. Income Tax Expense

Income tax expense comprises current tax and deferred tax
charge or credit.

Current Tax

The current charge for income taxes is calculated in accordance
with the relevant tax regulations applicable to the Company.

Deferred Tax

Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the Financial
Statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible

temporary differences can be utilised. Such deferred tax
assets and liabilities are not recognised if the temporary
difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.

Current and deferred tax are recognised in Statement of Profit
and Loss, except when they relate to items that are recognised
in Other Comprehensive Income or directly in equity, in which
case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.

Advance taxes and provisions for current income taxes are
presented in the balance sheet after offsetting advance
taxes paid and income tax provisions arising in the same tax
jurisdiction and the Company intends to settle the asset and
liability on a net basis. The Company offsets deferred tax
assets and deferred tax liabilities if it has a legally enforceable
right and these relate to taxes on income levied by the same
governing taxation laws.

p. Earning Per Share

The basic earnings per share (“EPS”) is computed by dividing
the net profit after tax for the year by the weighted average
number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, net profit
after tax for the year and the weighted average number of
shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares. The dilutive potential
equity shares are deemed converted as of the beginning of
the period, unless they have been issued at a later date. The
Company presents basic and diluted EPS from continuing and
discontinuing operations separately.

q. Financial Instruments
Financial Assets

Initial recognition and measurement

The Company recognizes a financial asset in its Balance Sheet
when it becomes party to the contractual provisions of the
instrument. All financial assets are recognized initially at fair
value, plus in the case of financial assets not recorded at fair
value through profit or loss (FVTPL), transaction costs that are
attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is
different from its transaction price, the difference between the fair
value and the transaction price is recognized as a gain or loss in the
Statement of Profit and Loss at initial recognition if the fair value is
determined through a quoted market price in an active market for
an identical asset (i.e. level 1 input) or through a valuation technique
that uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level
2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and
recognized as a gain or loss in the Statement of Profit and
Loss only to the extent that such gain or loss arises due to

a change in factor that market participants take into account
when pricing the financial asset.

However, trade receivables that do not contain a significant
financing component are measured at transaction price.

Subsequent measurement

For subsequent measurement, the Company classifies a
financial asset in accordance with the below criteria:

i. The Company’s business model for managing the
financial asset; and

ii. The contractual cash flow characteristics of the financial
asset.

Based on the above criteria, the Company classifies its financial
assets into the following categories:

i. Financial assets measured at amortized cost.

ii. Financial assets measured at fair value through other
comprehensive income (FVTOCI).

iii. Financial assets measured at fair value through profit or
loss (FVTPL).

Financial assets measured at amortized cost:

A financial asset is measured at the amortized cost if both the
following conditions are met:

a) The Company’s business model objective for managing
the financial asset is to hold financial assets in order to
collect contractual cash flows; and

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

This category applies to cash and bank balances, trade
receivables and other financial assets of the Company. Such
financial assets are subsequently measured at amortized cost
using the effective interest method.

Under the effective interest method, the future cash receipts
are exactly discounted to the initial recognition value using the
effective interest rate. The cumulative amortization using the
effective interest method of the difference between the initial
recognition amount and the maturity amount is added to the
initial recognition value (net of principal repayments, if any)
of the financial asset over the relevant period of the financial
asset to arrive at the amortized cost at each reporting date.
The corresponding effect of the amortization under effective
interest method is recognized as interest income over the
relevant period of the financial asset. The same is included
under other income in the Statement of Profit and Loss.

The amortized cost of a financial asset is also adjusted for loss
allowance, if any.

Financial assets measured at FVTOCI

Financial assets that are held within a business model whose
objective is achieved by both, selling financial assets and
collecting contractual cash flows that are solely payments of
principal and interest, are subsequently measured at fair value
through other comprehensive income. Fair value movements
are recognized in the other comprehensive income (OCI).
Interest income measured using the EIR method and

impairment losses, if any are recognised in the Statement of
Profit and Loss.

Financial assets measured at FVTPL

A financial asset is measured at FVTPL unless it is measured
at amortized cost or at FVTOCI as explained above. Such
financial assets are subsequently measured at fair value at
each reporting date. Fair value changes are recognized in the
Statement of Profit and Loss.

Financial Liabilities

Initial recognition and measurement

The Company recognizes a financial liability in its Balance
Sheet when it becomes party to the contractual provisions of
the instrument. All financial liabilities are recognized initially at
fair value minus, in the case of financial liabilities not recorded
at fair value through profit or loss (FVTPL), transaction costs
that are attributable to the acquisition of the financial liability.

Where the fair value of a financial liability at initial recognition
is different from its transaction price, the difference between
the fair value and the transaction price is recognized as a gain
or loss in the Statement of Profit and Loss at initial recognition
if the fair value is determined through a quoted market price
in an active market for an identical asset (i.e. level 1 input) or
through a valuation technique that uses data from observable
markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level
2 input as mentioned above, the difference between the fair
value and transaction price is deferred appropriately and
recognized as a gain or loss in the Statement of Profit and
Loss only to the extent that such gain or loss arises due to
a change in factor that market participants take into account
when pricing the financial liability.

Subsequent measurement

All financial liabilities of the Company are subsequently
measured at amortized cost using the effective interest
method.

Under the effective interest method, the future cash payments
are exactly discounted to the initial recognition value using
the effective interest rate. The cumulative amortization using
the effective interest method of the difference between the
initial recognition amount and the maturity amount is added to
the initial recognition value (net of principal repayments, if any)
of the financial liability over the relevant period of the financial
liability to arrive at the amortized cost at each reporting date.
The corresponding effect of the amortization under effective
interest method is recognized as interest expense over the
relevant period of the financial liability. The same is included
under finance cost in the Statement of Profit and Loss.

Equity Instruments

An equity instrument is a contract that evidences residual
interest in the assets of the company after deducting all of
its liabilities. Incremental costs directly attributable to the
issuance of equity instruments are recognised as a deduction
from equity, net of any tax effects.

The Company derecognizes a financial asset when the
contractual right to the cash flows from the asset expires or
it transfers the rights to receive the contractual cash flows
on the financial asset in a transaction which substantially all
the risk and rewards of ownership of the financial asset are
transferred. If the Company retains substantially all the risk
and rewards of ownership of a transferred financial asset,
the Company continues to recognize the financial asset and
also recognizes a collateralized borrowing for the proceeds
received. The Company derecognizes a financial liability
when its contractual obligations are discharged, cancelled
or expired; the difference between the carrying amount of
d erecog nized financial liability and the consid eration paid is
recognized as profit or loss.

Impairment of financial assets

At each balance sheet date, the Company assesses whether a
financial asset is to be impaired. Ind AS 109 requires expected
credit losses to be measured through loss allowance. The
Company measures the loss allowance for financial assets at
an amount equal to lifetime expected credit losses if the credit
risk on that financial asset has increased significantly since
initial recognition. If the credit risk on a financial asset has not
increased significantly since initial recognition, the Company
measures the loss allowance for financial assets at an amount
equal to 12-month expected credit losses. The Company uses
both forward-looking and historical information to determine
whether a significant increase in credit risk has occurred.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset, and the net
amount is reported in Financial Statements if there is a currently
enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

Trade Receivables

Trade receivables are amounts due from customers for sale
of goods and services in the ordinary course of business.
Trade receivables are initially recognized at its transaction
price which is considered to be its fair value and are classified
as current assets as it is expected to be received within the
normal operating cycle of the business.

Cash and Cash Equivalents

Cash and cash equivalents consists of cash on hand, balance with
banks, short demand deposits. Short term means investments
with original maturities/holding period of three months or less
from the date of investments. Bank overdrafts that are repayable
on demand and form an integral part of the Company’s cash
management are included as a component of cash and cash
equivalent for the purpose of statement of cash flow.

Trade Payables

Trade payables are amounts due to vendors for purchase of
goods or services acquired in the ordinary course of business
and are classified as current liabilities to the extent it is
expected to be paid within the normal operating cycle of the
business.

Other non-derivative financial instruments are initially recognized
at fair value and subsequently measured at amortized costs
using the effective interest method.

r. Investment in subsidiary Companies

Investments in subsidiary is carried at cost less accumulated
impairment losses and accordingly, it is fully impaired. Where
an indication of impairment exists, the carrying amount of the
investment is assessed and written down immediately to its
recoverable amount.

s. Segment Reporting

Ind AS 108 establishes standards for the way that public
enterprises report information about operating segments and
related disclosures about products, services, geographic areas,
and major customers. Based on the ‘management approach’
as defined in Ind AS 108, the Company is required to present
information in the manner which the Chief Operating Decision
Maker (“CODM”) evaluates the Company’s performance
and allocates resources. The analysis is generally based on

an analysis of various performance indicators by business
segments.

The accounting principles used in the preparation of the
Financial Statements are consistently applied to record
revenue and expenditure in individual segments and are as
set out in the relevant applicable accounting policies above.
Revenue and identifiable operating expenses in relation to
segments are categorised based on items that are individually
identifiable to that segment.

Segment assets include all operating assets used by the
business segments and consist principally of fixed assets,
trade receivables and inventories. Segment liabilities include
the operating liabilities that result from the operating activities
of the business. Segment assets and liabilities that cannot
be allocated between the segments are shown as part of
unallocated corporate assets and liabilities respectively.
Income/Expenses relating to the enterprise as whole and not
allocable on a reasonable basis to business segments are
reflected as unallocated corporate income/expenses. Inter¬
segment transfers are accounted at prevailing market prices.

Note 7.1

a. Trade receivables are non-interest bearing and generally on credit term of 7 to 120 days.

b. There are no dues from directors or other officers of the company either severally or jointly with any other person, due from
firms or private companies respectively in which any director is a partner, a director or a member.

c. The above trade receivables are given as security to the bankers by way of first pari passu charge against the fund based
based working capital limits availed or to be availed by the Company.

d. Since the Company calculates impairment under the simplified approach for Trade Receivables, it is not required to
separately track changes in credit risk of Trade Receivables as the impairment amount represents-Lifetime Expected Credit
Loss. Accordingly, based on a harmonious reading of Ind AS 109 and the break-up requirements under Schedule III, the
disclosure for all such Trade Receivables is made as shown above.

e. In determining the allowances for credit losses of Trade Receivables (as also for Unbilled Revenue), the Company has used
a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix.
The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.The
expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.
The Company estimates mostly the following matrix at the reporting date.

10.6 All Equity Shares have common voting rights, preferences and there are no restrictions inter-alia. The Company has only
one class of equity shares having a par value of T 10/-. Each holder of equity share is entitled to one vote per share. In the event
of liquidation of the Company, the holders of equity shares shall be entitled to receive the remaining assets of the Company, after
distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the
shareholders.

10.7 The company has declared & paid dividend during the current year 2025-26 T Nil (per equity share of Face Value of T 10
each) & in Previous year 2024-25 Nil.

10.8 The Company had, issued 8,40,471 equity shares of face value of T 10 each on right basis (‘Rights Equity Shares’). In
accordance with the terms of issue, T 135 i.e. 60% of the Issue Price per Rights Equity Share, was received from the allottees on
application and shares were allotted. The Board has made First and Final call of T 90 per Rights Equity Share (including a premium
of T 86 per share) in February, 2024. As on March 31,2024, an aggregate amount of T 8.62 Lakhs was unpaid on 9,578 No. of
equity shares (including securities premium). During the previous year, Company has forfeited 9,578 equity shares and paidup
amount on such equity shares (i.e. T 135 per share) amounting to T 12.93 Lakhs is transferred to capital reserve.

12.1 Nature of Security and terms of repayment of secured borrowings

i. Term loans from banks:

Term Loan comprises of secured loan from DBS Bank India Limited and Kotak Mahindra Bank Limited.

The loan from DBS Bank India Limited is repayable in 66 equal monthly installments. The tenor of loan is 84 months with a
moratotium of 18 months. The loan carries interest rate of 3.40%

The loan from Kotak Mahindra Bank Limited is repayable in 66 equal monthly Installment. The tenure of loan is 84 months with a
moratotium of 18 months. During the year 2025-26 the loan has been converted to Rupee loan and carries interest rate of 8.15%.

Note 15.1: Overdraft Facility is secured by first pari pasu hypothecation charge on entire current assets and movable fixed
assets of the firm (present and future) excluding current assets/movable fixed assets situated at Plot No. 6011. Also above facilities
are secured by a charge in favour of DBS bank India Limited and Kotak Mahindra Bank Limited (first pari passu) over the immovable
properties situated at Plot no. 6012, 6002-6003 GIDC , Ankleshwar 393002, Dist. Bharuch, for credit limits sanctioned by it. The
whole of the amount is guaranteed by Directors. Terms of Repayment: Payable on demand.

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company
and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises
Development Act, 2006 has been made in the Financial statement as at March 31,2026 based on the information received and
available with the Company. On the basis of such information, no interest is payable to any micro, small and medium enterprises.
Auditors have relied upon the information provided by the Company.

29 EMPLOYEE BENEFITS
Defined Benefit Plans

(a) Gratuity

Every employee of the Company is entitled to the benefits in form of Gratuity for each completed year of service. The same is
payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service. The liability
in respect of gratuity benefits being defined benefit schemes, payable in future, are determined by actuarial valuation as on
balance sheet date.

In arriving at the valuation for gratuity following assumptions were used:

The company’s gratuity plan is not funded. The following table sets out the status of the gratuity plan as required under Para 11
of Ind AS 19 “Employee Benefits”:

33 DISCLOSURES UNDER IND AS 116 “LEASES”

Assets taken on lease includes leasehold land,Staff Quarters taken from GIDC and Solar Power Plant.

Disclosure pursuant to Para B48 of IND AS 116

Termination and renewal options

All the lease assets aquired from GIDC which has life of 99 years and the Company has right to use such lease assets for the
remaining years from the date of acquisition. Lessee has no right to termination of lease before its maturity period. Futher in
case of lessee terminates a lease agreement before lease term in such case lessee has to surrender his rights on said assets.
The Lessee has to pay 75% value of the difference amount between allotment price paid at the time of allotment and prevailing
allotment price at the time of surrender application is refunded.

Lease period will be further renewed after the completion of lease period, i.e. 99 by lessee after paying GIDC renewal premium
decided by the GIDC authority.

There is a least sensitivity of Reported information to key variables

Exposure to other risk to arise to leasehold assets are:

(i) Risk of non-maintenance: Lessee has to maintain leasehold as per the conditions specified in the deed of assignments.
Further, Lessee has to pay annual GIDC revenue charges and land revenue on regular basis.

(ii) Alienation Risk: The risk associated with the lease is that the leased premises are under the ownership of the Lessor viz.
GIDC, whereas the lessee (Shree Ganesh Remedies Limited) may face the risk of alienation of property at the end of the lease
tenure of 99 years. The said risk is however mitigated by an option which can be exercised at the end of the lease tenure for
renewal of the lease.

There are no deviations from industry Practice as regards unusual or unique lease terms and conditions, which may affect
the lessee’s lease portfolios

36 (A) CAPITAL MANAGEMENT

The Company manages its capital to ensure that company will be able to continue as going concern while maximising the return
to stakeholders through the optimisation of Total Equity Balance. The capital structure of the Company consists of both own equity
as well as borrowings. Gearing Ratio of the company as at March 31, 2026 and March 31, 2025 is as calculated as under. The
Company is not subject to any externally imposed capital requirement.

(B) CATEGORIES OF FINANCIAL INSTRUMENTS

Refer Note 36 (G) (A) for Classification of Financial Assets and Liabilities and its Fair Values.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company’s financial liabilities comprise mainly of borrowings, lease liabilities, trade and other payables and financial assets
comprise mainly of cash and cash equivalents, other bank balances, investments, trade and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk
management policy. Further, they also have oversight in the area of financial risks and controls.

The following disclosures summarize the Company’s exposure to financial risks. Quantitative sensitivity analysis have been
provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial
position of the Company.

(D) 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 risks: interest rate risk, currency risk and other price risk. Financial instruments
affected by interest rate risk includes borrowings, by currency risk includes borrowings, trade payables and trade receivables and
by price risk includes investments.

Within the various methodologies to analyze and manage risk, Company has implemented a system based on “sensitivity analysis”
on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an
approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of
assumptions. The risk estimates provided here assume:

- 1% increase/decrease in interest rates

- 5% increase/decrease in exchange rates

- 5% increase/decrease in investment price

The potential economic impact, due to these assumptions, is based on the occurrence of adverse/inverse market conditions and
reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss
may differ materially from these estimates due to actual developments in the global financial markets.

The following assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at March 31,2026, and March 31,2025.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company seeks to mitigate such risk by regularly reviewing its interest rate on borrowings. Summary of
borrowings which are exposed to such risk has been provided below:

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following
table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk
estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes
that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date.
The period end balances are not necessarily representative of the average debt outstanding during the period.

Price Risk

The Entity is exposed to price risks arising from its investments in Mutual Funds which are held for strategic purposes. The
sensitivity analysis have been determined based on the exposure to price risks for Investments in Mutual Funds at the end of
the reporting period. If prices had been 5% higher/lower, Profit before tax for the year ended March 31, 2026 would increase/
decrease by f 62.27 Lakhs (for the year ended March 31, 2025 by f 91.29 Lakhs) as a result of the change in fair value of
investments.

(E) FOREIGN CURRENCY RISK MANAGEMENT

Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company transacts business in foreign currencies (primarily USD). Consequently, the Company has foreign currency
trade payables and receivables. Further, Company has also obtained foreign currency term loan and is therefore exposed to
foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established
risk management policy. The carrying amounts of the Company’s foreign currency denominated monetary items are as follows:

B Measurement of Fair Values

i Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are 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.

ii Levels 1,2 and 3: Valuation Techniques and Key Inputs

Level 1: It includes Investment that has a quoted price and which are actively traded. It is being valued using the closing price as
at the reporting period on the active market. Fair value of Investment in Mutual Fund is considered as Level 1 fair value.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2. Fair value of foreign exchange forward
contracts outstanding on reporting date is considered as Level 2 fair value.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

38 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY

The Company’s revenue is denominated in various currencies. Given the nature of the business, a large portion of cost is
denominated in Indian Rupee. This exposes the Company to currency fluctuation.

The Company has entered into derivative instruments by way of foreign exchange forward. Such derivatives are recorded at
fair value through profit and loss. As at March 31,2026, the notional amount of outstanding contracts aggregated to T Nil Lakhs
(T 725.42 Lakhs as at March 31,2025) and corresponding derivative asset/(liability) is T Nil (T 4.85 Lakhs as at March 31,2025).

41 OTHER NOTES

a In respect of borrowings on the basis of security of
current assets from banks and financial institutions,
quarterly returns/statements of current assets filed by
the Company with banks and financial institutions were in
agreement with the books of account.

b There were no charges or satisfaction yet to be registered
with ROC beyond the statutory period.

c The Company has not been declared as a wilful defaulter
by any lender who has powers to declare a company as
a willful defaulter at any time during the financial year
or after the end of reporting period but before the date
when the financial statements are approved.

d The Company has not advanced or loaned or invested
funds to any other person(s) or entity(ies), including
foreign entities ("Intermediaries") with the understanding
that the Intermediary shall (i) directly or indirectly lend or
invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company ("Ultimate
Beneficiaries”) or (ii) provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.

Further, Company has not received any fund from any
person(s) or entity(ies), including foreign entities ("Funding
Party") with the understanding that the company shall (i)
directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or
(ii) provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

e The Company has not granted any Loans or Advances
in the nature of loans to Promoters, directors, KMP''s and
related parties that are repayable on demand or given
without specifying terms or period of repayment.

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

g The Company does not have any transaction with struck-
off companies.

h The Company has complied with the number of layers
prescribed under clause (87) of section 2 of the
Companies Act 2013, read with Companies (Restrictions
on number of Layers) Rules, 2017.

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

j The Company does not have any transactions which
are not recorded in the books of account but has been
surrendered or disclosed as income during the year in the
tax assessments under the Income-tax Act, 1961 (such
as, search or survey or any other relevant provisions of
the Income tax Act, 1961).

k The company has used an accounting software for
maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions
recorded in the software. Additionally, the audit trail has
been preserved by the company as per the statutory
requirements for record retention.

l Previous year''s figures have been regrouped/reclassified
whereever necessary to make them comparable with
current year''s presentation.

Note 6.1

a. The cost of inventories recognised as an expense during the year is P 3,738.11 Lakhs (Previous year: P 6,104.74 Lakhs) as included in Notes 22.

b. There is write down of inventories to net realisable value of P Nil (Previous year: P 172.73 Lakhs).

c. For mode of valuation of inventories: Refer Note 1(g).

d. The above inventories are given as security to the bankers by way of first pari passu charge against the fund based working capital limits availed or to be availed by the Company.

Note 7.1

a. Trade receivables are non-interest bearing and generally on credit term of 7 to 120 days.

b. There are no dues from directors or other officers of the Company either severally or jointly with any other person, due from firms or private companies respectively in which any director is a partner, a director or a member.

c. The above trade receivables are given as security to the bankers by way of first pari passu charge against the fund based based working capital limits availed or to be availed by the Company.

d. Since the Company calculates impairment under the simplified approach for Trade Receivables, it is not required to separately track changes in credit risk of Trade Receivables as the impairment amount represents —Lifetime Expected Credit Loss. Accordingly, based on a harmonious reading of Ind AS 109 and the breakup requirements under Schedule III, the disclosure for all such Trade Receivables is made as shown above.

e. In determining the allowances for credit losses of Trade Receivables (as also for Unbilled Revenue), the Company has used a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix.

The provision matrix takes into account historical credit loss experience and is adjusted for forward looking

information.

The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the

provision matrix.The Company estimates mostly the following matrix at the reporting date.

* As at March 31, 2024: Includes 8,30,893 Equity Shares issued & Subscribed on right basis on which First and Final call money has been received and the partly paid up Equity Shares have been converted in fully paid up Equity Shares, but are pending for listing and trading approval for fully paid up Equity Shares, and hence continued to be disclosed under partly paid up shares as on March 31, 2024. Also, includes 9,578 equity shares issued on right basis on which First and Final call money has not been received.

10.6 All Equity Shares have common voting rights, preferences and there are no restrictions inter-alia. The Company has only one class of equity shares having a par value of A 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.

10.7 The Company has paid dividend during the current year 2024-25 A Nil (A Nil per equity share of Face Value of A 10 each) & Company has paid dividend in previous year 2023-2024 A 62.56 (A 0.50 per equity share of Face Value of A 10 each).

10.8 The Company had, issued 8,40,471 equity shares of face value of A 10 each on right basis (‘Rights Equity Shares’). In accordance with the terms of issue, A 135 i.e. 60% of the Issue Price per Rights Equity Share, was received from the allottees on application and shares were allotted. The Board has made First and Final call of A 90 per Rights Equity Share (including a premium of A 86 per share) in February, 2024. As on March 31, 2024, an aggregate amount of A 8.62 Lakhs was unpaid on 9,578 No. of equity shares (including securities premium). During the current year, Company has forfeited 9,578 equity shares and paidup amount on such equity shares (i.e. A 135 per share) amounting to A 12.93 Lakhs is transferred to capital reserve.

Securities Premium Account

The Securities Premium Account is used to record the premium on issue of shares. The Reserve is to be utilised in accordance with the provisions of the Companies Act, 2013.

Retained Earnings

The amount represents portion of profits not distributed among the shareholders but retained and used in the business.

Other Comprehensive Income

Other Comprehensive Income includes remeasurements of defined benefit plans comprising of actuarial gain and losses.

Note: 12.1 Nature of Security and terms of repayment of secured borrowings

i. Term loans from banks:

Term Loan comprises of secured loan from DBS Bank India Limited and Kotak Mahindra Bank Limited.

The loan from DBS Bank India Limited is repayable in 66 equal monthly installments. The tenor of loan is 84 months with a moratotium of 18 months. The loan carries interest rate of 3.40%.

The loan from Kotak Mahindra Bank Limited is repayable in 66 equal monthly Instalment. The tenor of loan is 84 months with a moratotium of 18 months. The loan carries interest rate of 3months Euribor Bank Spread.

The Term Loan from DBS Bank India Limited and Kotak Mahindra Bank Limited are secured by of creating first paripasu charge on immovable property located at Plot no. 6012, 6002-6003, GIDC Ankleshwar, Gujarat.

ii. Car loan:

The Car loan is taken from HDFC Bank Limited, which is secured by way of hypothecation of car. The loan is repayable in 48 equal monthly instalments. The loan carries interest rate of 8.90% p.a.

Note 15.1: Overdraft Facility is secured by first pari pasu hypothecation charge on entire current assets and movable fixed assets of the firm (present and future) excluding current assets/movable fixed assets situated at Plot No. 6011. Also above facilities are secured by a charge in favour of DBS bank India Limited and Kotak Mahindra Bank Limited (first pari passu) over the immovable properties situated at Plot no. 6012, 6002-6003 GIDC, Ankleshwar 393002, Dist. Bharuch, for credit limits sanctioned by it. The whole of the amount is guaranteed by Directors. Terms of Repayment: Payable on demand.

Note 15.2: Loan from Directors are repayable on demand and interest free in nature.

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the Financial statement as at March 31, 2024 based on the information received and available with the Company. On the basis of such information, no interest is payable to any micro, small and medium enterprises. Auditors have relied upon the information provided by the Company.

29. EMPLOYEE BENEFITS Defined Benefit Plans

(a) Gratuity

Every employee of the Company is entitled to the benefits in form of Gratuity for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service. The liability in respect of gratuity benefits being defined benefit schemes, payable in future, are determined by actuarial valuation as on balance sheet date.

In arriving at the valuation for gratuity following assumptions were used:

The Company''s gratuity plan is not funded. The following table sets out the status of the gratuity plan as required under Para 11 of Ind AS 19 "Employee Benefits":

33. DISCLOSURES UNDER IND AS 116 "LEASES"

Assets taken on lease includes leasehold land,Staff Quarters taken from GIDC and Solar Power Plant.

Disclosure pursuant to Para B48 of IND AS 116

Termination and renewal options

All the lease assets aquired from GIDC which has life of 99 years and the Company has right to use such lease assets for the remaining years from the date of acquisition. Lessee has no right to termination of lease before its maturity period. Futher in case of lessee terminates a lease agreement before lease turm in such case lessee has to surrender his rights on said assets. The Lesseee has to pay 75% value of the difference amount between allotment price paid at the time of allotment and prevailing allotment price at the time of surrender application is refunded.

Lease period will be further renewed after the completion of lease period, i.e. 99 by lessee after paying GIDC renewal premium decided by the GIDC authority.

There is a least sensitivity of Reported information to key variables

Exposure to other risk to arise to leasehold assets are:

(i) Risk of non-maintenance: Lessee has to maintain leasehold as per the conditions specified in the deed of assignments. Further, Lessee has to pay annual GIDC revenue charges and land revenue on regular basis.

(ii) Alienation Risk: The risk associated with the lease is that the leased premises are under the ownership of the Lessor viz. GIDC, whereas the lessee (Shree Ganesh Remedies Limited) may face the risk of alienation of property at the end of the lease tenure of 99 years. The said risk is however mitigated by an option which can be exercised at the end of the lease tenure for renewal of the lease.

There are no deviations from industry Practice as regards unusual or unique lease terms and conditions,

which may affect the lessee’s lease portfolios.

Company as a lessee

Assets taken under leases - Lease Term

The weighted average incremental borrowing rate of 11.5 % has been applied to lease liabilities recognised in the

balance sheet at the date of initial application.

(B) CATEGORIES OF FINANCIAL INSTRUMENTS

Refer Note 36 (G) (A) for Classification of Financial Assets and Liabilities and its Fair Values.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company’s financial liabilities comprise mainly of borrowings, lease liabilities, trade and other payables and financial assets comprise mainly of cash and cash equivalents, other bank balances, investments, trade and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further, they also have oversight in the area of financial risks and controls.

The following disclosures summarize the Company’s exposure to financial risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

(D) 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 risks: interest rate risk, currency risk and other price risk. Financial instruments affected by interest

rate risk includes borrowings, by currency risk includes borrowings, trade payables and trade receivables and by price risk includes investments.

Within the various methodologies to analyze and manage risk, Company has implemented a system based on "sensitivity analysis” on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- 1% increase/decrease in interest rates

- 5% increase/decrease in exchange rates

- 5% increase/decrease in investment price

The potential economic impact, due to these assumptions, is based on the occurrence of adverse/ inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.

The following assumption has been made in calculating the sensitivity analysis:

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

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Price Risk

The Entity is exposed to price risks arising from its investments in Mutual Funds which are held for strategic purposes. The sensitivity analysis have been determined based on the exposure to price risks for Investments in Mutual Funds at the end of the reporting period. If prices had been 5% higher/lower, Profit before tax for the year ended March 31, 2025 would increase/decrease by P 91.29 Lakhs (for the year ended March 31, 2024 by P 23.29 Lakhs) as a result of the change in fair value of investments.

(E) FOREIGN CURRENCY RISK MANAGEMENT

Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD). Consequently, the Company has foreign currency trade payables and receivables. Further, Company has also obtained foreign currency term loan and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company’s foreign currency denominated monetary items are as follows:

Foreign currency sensitivity analysis

The following tables demonstrate the sensitivity to a reasonably possible change in USD/EURO rates to the functional currency of respective entity, with all other variables held constant. The Company’s exposure to foreign currency changes for all other currencies is not material. The impact on the Company’s profit after tax is due to changes in the fair value of monetary assets and liabilities.

(F) 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''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing at an optimised cost.

The table below analysis financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.

B. Measurement of Fair Values

i. Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are 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.

ii. Levels 1, 2 and 3: Valuation Techniques and Key Inputs

Level 1: It includes Investment that has a quoted price and which are actively traded. It is being valued using the closing price as at the reporting period on the active market. Fair value of Investment in Mutual Fund is considered as Level 1 fair value.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Fair value of foreign exchange forward contracts outstanding on reporting date is considered as Level 2 fair value.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

iii. There have been no transfers between Level 1, 2 and 3 during the years.

iv. There is no movement in Instruments in Units of Mutual Funds classified as FVTPL and valued using Level 3

valuation technique.

38. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY

The Company''s revenue is denominated in various currencies. Given the nature of the business, a large portion of cost is denominated in Indian Rupee. This exposes the Company to currency fluctuation.

The Company has entered into derivative instruments by way of foreign exchange forward. Such derivatives are recorded at fair value through profit and loss. As at March 31, 2025, the notional amount of outstanding contracts aggregated to T 725.42 Lakhs 169.47 Lakhs as at March 31, 2024) and corresponding derivative asset/(liability) is T 4.85 Lakhs (^ 1.46 Lakhs as at March 31, 2024).

41. OTHER NOTES

a. In respect of borrowings on the basis of security of current assets from banks and financial institutions, quarterly returns/statements of current assets filed by the Company with banks and financial institutions were in agreement with the books of account.

b. There were no charges or satisfaction yet to be registered with ROC beyond the statutory period.

c. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a Company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

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

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

Further, Company has not received any fund from any person(s) or entity(ies), including foreign entities (""Funding Party"") with the understanding that the Company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (""Ultimate Beneficiaries"") or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

e. The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMP''s and related parties that are repayable on demand or given without specifying terms or period of repayment.

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

g. The Company does not have any transaction with struck-off companies.

h. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013, read with Companies (Restrictions on number of Layers) Rules, 2017.

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

j. The Company does not have any transactions which are not recorded in the books of account but has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 ( such as, search or survey or any other relevant provisions of the Income tax Act, 1961).

a. Trade receivables are non-interest bearing and generally on credit term of 7 to 120 days.

b. There are no dues from directors or other officers of the company either severally or jointly with any other person, due from firms or private companies respectively in which any director is a partner, a director or a member.

c. The above trade receivables are given as security to the bankers by way of first pari passu charge against the fund based based working capital limits availed or to be availed by the Company.

d. Since the Company calculates impairment under the simplified approach for Trade Receivables, it is not required to separately track changes in credit risk of Trade Receivables as the impairment amount represents —Lifetime Expected Credit Loss. Accordingly, based on a harmonious reading of Ind AS 109 and the break-up requirements under Schedule III, the disclosure for all such Trade Receivables is made as shown above.

e. In determining the allowances for credit losses of Trade Receivables (as also for Unbilled Revenue), the Company has used a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix.

The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.

The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. The Company estimates mostly the following matrix at the reporting date.

11.6 All Equity Shares have common voting rights, preferences and there are no restrictions inter-alia. The Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.

11.7 The company has declared & paid dividend during the current year 2023-24 ^ 62.56 lakhs 0.50 per equity share of Face Value of ^ 10 each) & in Previous year 2022-23 ^ 60.03 lakhs (^ 0.50 per equity share of Face Value of ^ 10 each).

11.8 The Company had, issued 8,40,471 equity shares of face value of ^ 10 each on right basis (‘Rights Equity Shares''). In accordance with the terms of issue, ^ 135 i.e. 60% of the Issue Price per Rights Equity Share, was received from the allottees on application and shares were allotted. The Board has made First and Final call of ^ 90 per Rights Equity Share (including a premium of ^ 86 per share) in February, 2024. As on March 31, 2024, an aggregate amount of ^ 8.62 Lakhs is unpaid.

Note : 13.1 Nature of Security and terms of repayment of secured borrowings

i. Term loans from banks:

Term Loan comprises of secured loan from DBS Bank India Limited and Kotak Mahindra Bank Limited.

The loan from DBS Bank India Limited is repayable in 66 equal monthly instalments. The tenor of loan is 84 months with a moratorium of 18 months. The loan carries interest rate of 3.40%

The loan from Kotak Mahindra Bank Limited is repayable in 66 equal monthly Instalments. The tenor of loan is 84 months with a moratorium of 18 months. The loan carries interest rate of 3months Euribor Bank Spread The Term Loan from DBS Bank India Limited and Kotak Mahindra Bank Limited are secured by of creating first paripasu charge on immovable property located at Plot no. 6012, 6002-6003, GIDC Ankleshwar, Gujarat

Note 16.1 : Overdraft Facility is secured by first pari pasu hypothecation charge on entire current assets and movable fixed assets of the firm (present and future) excluding current assets/movable fixed assets situated at Plot No. 6011. Also above facilities are secured by a charge in favour of DBS bank India Limited and Kotak Mahindra Bank Limited (first pari pasu) over the immovable properties situated at Plot no. 6012, 6002-6003 GIDC , Ankleshwar 393002, Dist. Bharuch, for credit limits sanctioned by it. The whole of the amount is guaranteed by Directors. Terms of Repayment: Payable on demand

29. EMPLOYEE BENEFITS

Defined Benefit Plans (a) Gratuity

Every employee of the Company is entitled to the benefits in form of Gratuity for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service. The liability in respect of gratuity benefits being defined benefit schemes, payable in future, are determined by actuarial valuation as on balance sheet date.

In arriving at the valuation for gratuity following assumptions were used:

The company''s gratuity plan is not funded. The following table sets out the status of the gratuity plan as required under Para 11 of Ind AS 19 "Employee Benefits":

33. DISCLOSURES UNDER IND AS 116 "LEASES"

Assets taken on lease includes leasehold land, Staff Quarters taken from GIDC and Solar Power Plant.

Disclosure pursuant to Para B48 of IND AS 116 Termination and renewal options

All the lease assets acquired from GIDC which has life of 99 years and the Company has right to use such lease assets for the remaining years from the date of acquisition. Lessee has no right to termination of lease before its maturity period. Further in case of lessee terminates a lease agreement before lease term in such case lessee has to surrender his rights on said assets. The Lessee has to pay 75% value of the difference amount between allotment price paid at the time of allotment and prevailing allotment price at the time of surrender application is refunded.

Lease period will be further renewed after the completion of lease period, i.e. 99 by lessee after paying GIDC renewal premium decided by the GIDC authority.

Company as a lessee

Assets taken under leases - Lease Term

The weighted average incremental borrowing rate of 11.5 % has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

35. SEGMENT INFORMATION:

The company is primarily engaged in the business of Bulk Drug Intermediates, which constitute a single reportable segment in accordance with Ind AS 108 - "Segment Reporting".

36. (A) CAPITAL MANAGEMENT

The Company manages its capital to ensure that company will be able to continue as going concern while maximising the return to stakeholders through the optimisation of Total Equity Balance. The capital structure of the Company consists of both own equity as well as borrowings. Gearing Ratio of the company as at March 31, 2024 and March 31, 2023 is as calculated as under. The Company is not subject to any externally imposed capital requirement.

(B) CATEGORIES OF FINANCIAL INSTRUMENTS

Refer Note 36 (G) (A) for Classification of Financial Assets and Liabilities and its Fair Values.

(C) FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company''s financial liabilities comprise mainly of borrowings, lease liabilities, trade and other payables and financial assets comprise mainly of cash and cash equivalents, other bank balances, investments, loans trade and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company monitors the risk as per risk management policy. Further, they also have oversight in the area of financial risks and controls. The following disclosures summarize the Company''s exposure to financial risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

(D) 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 risks: interest rate risk, currency risk and other price risk. Financial instruments affected by interest rate risk includes borrowings, by currency risk includes borrowings, trade payables and trade receivables and by price risk includes investments.

Within the various methodologies to analyze and manage risk, Company has implemented a system based on “sensitivity analysis” on symmetric basis. This tool enables the risk managers to identify the risk position of the entities. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:

- 1% increase / decrease in interest rates

- 5% increase / decrease in exchange rates

- 5% increase / decrease in investment price

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit and loss may differ materially from these estimates due to actual developments in the global financial markets.

The following assumption has been made in calculating the sensitivity analysis:

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

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company seeks to mitigate such risk by regularly reviewing its interest rate on borrowings. Summary of borrowings which are exposed to such risk has been provided below:

Interest rate sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Price Risk

The Entity is exposed to price risks arising from its investments in Mutual Funds which are held for strategic purposes. The sensitivity analysis have been determined based on the exposure to price risks for Investments in Mutual Funds at the end of the reporting period. If prices had been 5% higher/lower, Profit before tax for the year ended March 31,2024 would increase/decrease by ^ 23.29 Lakhs (for the year ended March 31,2023 by ^ Nil Lakhs) as a result of the change in fair value of investments.

(E) FOREIGN CURRENCY RISK MANAGEMENT

Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company transacts business in foreign currencies (primarily USD). Consequently, the Company has foreign currency trade payables and receivables. Further, Company has also obtained foreign currency term loan and is therefore exposed to foreign exchange risk. The Company manages its foreign currency risk by following policies approved by board as per established risk management policy. The carrying amounts of the Company''s foreign currency denominated monetary items are as follows:

(F) 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''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing at an optimised cost.

The table below analysis financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.

The following table details the Company''s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Entity''s liquidity risk management as the liquidity is managed on a net asset and liability basis.

b. Measurement of Fair Values

i Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are 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.

ii Levels 1,2 and 3 : Valuation Techniques and Key Inputs

Level 1 : It includes Investment that has a quoted price and which are actively traded. It is being valued using the closing price as at the reporting period on the active market. Fair value of Investment in Mutual Fund is considered as Level 1 fair value.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Fair value of foreign exchange forward contracts outstanding on reporting date is considered as Level 2 fair value.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

iii There have been no transfers between Level 1, 2 and 3 during the years.

iv There is no movement in Instruments in Units of Mutual Funds classified as FVTPL and valued using Level 3 valuation technique.

38. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY

The Company''s revenue is denominated in various currencies. Given the nature of the business, a large portion of cost is denominated in Indian Rupee. This exposes the Company to currency fluctuation.

The Company has entered into derivative instruments by way of foreign exchange forward. Such derivatives are recorded at fair value through profit and loss. As at March 31, 2024, the notional amount of outstanding contracts aggregated to ^ 169.47 Lakhs Nil as at March 31,2023) and corresponding derivative asset / (liability) is ^ 1.46 Lakhs (^ Nil as at March 31,2023).

Note No. 41 RESTATEMENT OF COMPARITIVE INFORMATION (Ind AS 8)

Hitherto, the Company has capitalised exchange differences on translation of foreign currency term loans at the each reporting period. However, during the year ended March 31,2024, based on the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India, the management of the Company was made aware that only to the extent the requirements of paragraph 6(e) of Ind AS 23, “Borrowing Costs” are applicable, the exchange differences are to be considered as borrowing costs and since the same are directly attributable to the acquisition or construction of qualifying assets, these should be capitalised as a part of the cost of those assets but any other exchange differences, on foreign currency term loans (being monetary items) are to be recognised in the Statement of Profit and Loss in terms of Ind AS 21, “The Effect of Changes in Foreign Exchange Rates”, since those are specific to the treatment of foreign exchange fluctuations and the requirements of Ind AS 16, “Property, Plant and Equipment” are therefore not applicable to it. Accordingly, the said prior period errors in capitalisation of exchange differences and borrowing costs are corrected.

While determining the borrowing costs in form of exchange differences to be capitalised as aforesaid and reversing the exchange differences not to be capitalised, the management observed that inadvertently borrowing costs were not appropriately capitalised as part of the cost of that asset till the asset is ready for its intended use in accordance with Ind AS 23.

Also, it was observed that the foreign currency term loans should have been measured after adjusting for transaction costs and applying the effective interest rate method in accordance with Ind AS 109, “Financial Instruments”.

The management has also identified the following inadvertent errors in recognition and measurement of items of financial statements of earlier periods:"

i. Costs incurred for ERP software under development were considered as if the software was available for use and amortised based on its estimated useful life and residual value at five per cent.

ii. On acquisition of land alongwith buildings under expansion plans of the Company, the cost of building which was demolished for Plant under Construction (Capital Work-in-progress) was recognised as “Impairment Loss”. In terms of Ind AS 16 on “Property, Plant and Equipment”, the cost should have been capitalised to appropriate class of Property, Plant and Equipment or disclosed as Capital Work-in-progress.

iii. The amortisation of such Leasehold Land is required to be recognised and measured and accordingly, appropriately capitalised till the items of Buildings and ready for its intended use.

Furthermore, the management has also identified the following inadvertent errors in classification certain line items of financial statements:

i. The Company is also engaged in trading of certain items and purchases thereof were subsumed under “Cost of Materials Consumed” instead of separate classification as “Purchases of Stock-intrade”.

ii. Items of Freight and Insurance collected from customers on export sales on CIF basis and bank charges incurred on remittances received from Trade Receivable for export sales were adjusted as exchange differences on settlement thereof.

iii. During the financial year ended March 31, 2023, the Company acquired Leasehold Land through an auction during the year and classified the same under “Capital Work-in-progress”, under the head “Non-current Assets” instead of “Right-of-use Assets”.

iv. Term Deposit with banks having maturity of more than three months but less than twelve months were classified as “Other Financial Assets” under the head “Non-Current Assets” instead of “Bank Balances other than Cash and Cash Equivalents” under the head “Current Assets”.

v. Interest Accrued (Receivable) in Term Deposits with Banks was classified as “Other Financial Assets” under the head “Non-current Assets” instead of “Other Financial Assets” under the head “Current Assets”.

vi. At the time of transition to Ind AS, the adjustment for cumulative amount of amortisation of leasehold land was recognised under “Other Comprehensive Income” instead of “Retained Earnings” under the “Other Equity”."

The management believed that the impact of the above items should be restated the comparative information for the year ended March 31, 2023 and the opening retained earnings as at April 1, 2022. The following tables summarize the impact on the financial statements:

43. OTHER NOTES

a. In respect of borrowings on the basis of security of current assets from banks and financial institutions, quarterly returns / statements of current assets filed by the Company with banks and financial institutions were in agreement with the books of account.

b. There were no charges or satisfaction yet to be registered with ROC beyond the statutory period.

c. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

d. "The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (""Intermediaries"") with the understanding that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (""Ultimate Beneficiaries"") or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Further, Company has not received any fund from any person(s) or entity(ies), including foreign entities (""Funding Party"") with the understanding that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (""Ultimate Beneficiaries"") or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

e. The Company has not granted any Loans or Advances in the nature of loans to Promoters, directors, KMP''s and related parties that are repayable on demand or given without specifying terms or period of repayment.

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

g. The Company does not have any transaction with struck-off companies.

h. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013, read with Companies (Restrictions on number of Layers) Rules, 2017.

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

j. The Company does not have any transactions which are not recorded in the books of account but has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 ( such as, search or survey or any other relevant provisions of the Income tax Act, 1961).

1. CURRENT ASSET BALANCES

Balances of Sundry Creditors, Sundry Debtors and loans and advances are subject to confirmation. In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation at least equal to the amounts at which they are stated in the Balance Sheet.

2. INVENTORIES

Inventory is valued at cost (including cost for bringing the inventory to its current location and condition) or net realisable value whichever is less. Inventory as appearing in the financial statements is inclusive of duties, taxes and freight, in terms of Para 10 to 19 of Ind AS - 2, Inventories. Inventory excludes excise duty, VAT and Goods and Services Tax.

3. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

The company has declared 10% dividend (net after DDT) i.e. Rs.1,08,48,594/- pertaining to FY 2017-18 including Dividend Distribution Tax of Rs.18,77,238/-. However the same have not been recognized as expense in the view of Para 12 & 13 of Ind AS-10 (Events after the Reporting Period). No contingencies have arisen which have a specific quantified effect on the financial statements after the balance sheet date, in terms of Para 4 of the said accounting standard.

4. CHANGE IN ACCOUNTING POLICY

There has been no other changes in the accounting policy, in terms of Para 14 to 21 of Ind AS - 8 (Accounting Policies, Change in Accounting Estimates and Errors).

5. PRIOR PERIOD ERRORS

During the year the following prior period errors had been identified and hence adjusted into retained earnings as per Para 49 of Ind AS-8 (Accounting Policies, Change in Accounting Estimates and Errors).

Error on account of depreciation missed on computers Rs. 17,191.96/

6. RECLASSIFICATION ADJUSTMENTS

Since IND AS are applicable for the first time to the company, reclassification adjustments have been reclassified to Profitability Statement wherever require naccessary. Further, Reconsiliation required as per para 32 of Ind AS 101 (First-time Adoption of Indian Accounting Standards) is given below:

7. DEPRECIATION

Depreciation on fixed assets is provided using the written down value method at the rates specified in Schedule II to the Companies Act, 2013 or based on the useful life of the assets as estimated by management, whichever is higher. This policy has been continued during the current year. Depreciation is calculated on a pro-rata basis from the date of instalation till the date the assets are sold or disposed. Disclosure as per Para 75-76 of Ind AS-16 (Property, Plant and Equipment) relating to dismantling cost is unascertainable. The management is unable to estimate the dismantaling cost of individual assets as the same is impracticable, due to the complexity and size of the company.

8. REVENUE RECOGNITION

The Customs Duty Drawback benefits have been recognized as recommended by the Expert Advisory Committee of ICAI. In the opinion of the Expert Advisory Committee on the accounting treatment of Duty Drawback benefit, wherein it has been opined that the benefit under the Duty Drawback Scheme should be recognised as income when the exports (against which the credit has been granted) are made, provided the criteria for recognition of revenue under AS 9 have been fulfilled (query No. 28 of Vol. XX of Compendium of Opinions, page 96).

In the said opinion, the Committee has stated, inter alia, the following: “Under the facts and circumstances of the query, the Duty Drawback benefit should be recognised in the books of account when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist. In the case of drawback benefit on post-export basis when the company applies for the credit on realisation of export proceeds and the benefit is to be utilised for imports by the company, there seems to be no such significant uncertainty and, therefore, the drawback benefit should be recognised in the year in which the export was made."

9. PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment are carried at the cost of acquisition or construction less accumulated depreciation. The cost of Property, Plant and Equipment includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and instalation of the respective assets as per Para 11 of Ind AS - 16, (Property Plant and Equipment). Borrowing costs directly attributable to acquisition or construction of those Property, Plant and Equipment which necessarily take a substantial period of time to get ready for their intended use are capitalised as per Para 8 of Ind AS - 8 (Borrowing Costs).

10. FOREX FLUCTUATIONS

Export Sales have been recorded at the prevailing customs rate as on the date of removal of good from the factory. The relevant debtor ledger is debited/credited with appropriate loss / profit on foreign exchange transaction when the sale proceeds are actually received as per Para 21 of AS - 21, (The Effect of Changes in Foreign Exchange Rates).

11. INVESTMENTS

Long-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment as per Para 17 of AS - 13, Accounting for Investments

12. EMPLOYEE BENEFITS

The company''s gratuity plan is not funded. The following table sets out the status of the gratuity plan as required under Para 11 of Ind AS-19 (Employee Benefits).

13. SEGMENT REPORTING

The company is primarily engaged in the business of Bulk Drug Intermediates , which constitute a single reportable segment in accordance with Ind AS 108 - "Segment Reporting"

14. LEASES

Assets taken on lease includes leasehold land, and Staff Quarters taken from GIDC on full payment of future lease payments. The total of future minimum lease payments under non cancellable operating leases for each of the following periods:

The operating lease cost of Rs. 12,80,970/- and Rs.28,68,779/- (including capitalized borrowing costs) has been prepaid. The same was not amortized as expenditure over the remaining lease term. However, in compliance with the requirements of Para 33 of Ind AS-17 (Leases) the cumulative unapportioned cost of lease is adjusted against the accumulated profits and the apportionment of the lease cost over its remaining economic useful life is recognized as an expense on straight line basis for the current period.

15. DEFERRED TAX ASSET / LIABILITY

During the current year, the company has recognised a reduction in deferred tax liability, on account of temporary difference for taxation. Accordingly a deferred tax liability has been reduced by an amount of Rs.2,24,311/- has been reduced from the existing deferred tax liability balance considering the principle of prudence as per Para 16-18 & 58 of AS - 12 (Income Taxes).

16. IMPAIRMENT OF ASSETS

No impairment loss for any assets have been identified and recorded during the year in terms of Para 58-64 of AS - 36, Impairment of Assets

17. COMPARATIVE FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.