2) Material Accounting Policies:

The material accounting policies applied by the Company in the preparation of its financial statements are listed
below. Such accounting policies have been applied consistently to all the periods presented in these financial
statements unless otherwise indicated.

i. Basis of preparation and presentation

a) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified
under section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting
principles generally accepted in India.

b) Recent pronouncements

During the year the Ministry of Corporate Affairs (MCA) announced amendment to Companies (Indian
Accounting Standards) Rules, 2015. These amendments included an introduction of new IND AS 117 “
Insurance Contracts “and replaces current Ind AS 104 with consequential amendments in Ind AS 101
“First-time Adoption of Ind AS” , Ind AS 103 “Business Combinations” , Ind AS 105” Non-Current Assets
Held for Sale and Discontinued Operations”, Ind AS 107 “Financial Instruments: Disclosures”, Ind AS 109
“Financial Instruments” and Ind AS 115 “Revenue from Contracts with Customers” to align the with Ind AS
117. Further, amendments in Ind AS 116 “Leases” is made to provide guidance on Sale and Leaseback
Transactions. These amendments are not relevant to the company

Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards. There
is no such notification which would have been applicable from April 1, 2025.

c) Basis of preparation

These financial statements have been prepared on going concern basis using the significant accounting
policies and measurement bases summarized below. Accounting Policies have been consistently applied
except where a newly issued accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in accounting policy hitherto in use. In those cases the new accounting policy is
adopted in accordance with the transitional provisions stipulated in that Ind AS and in absence of such
specific transitional provision, the same is adopted retrospectively for all the periods presented in these
financial statements.

The financial statements have been prepared on the historical cost basis except for certain financial assets
and liabilities (refer accounting policy regarding financial instruments) that are measured at fair values at
the end of each reporting period, assets for defined benefit plans that are measured at fair value, assets
held for sale which are measured at lower of cost and fair value less cost to sell as explained further in notes
to financial statements.

d) Functional and presentation currency

The financial statements are presented in Indian rupees (?), which is company's functional currency. All
amounts have been rounded off to nearest lakhs and two decimal places unless otherwise indicated.

e) Operating Cycle

All assets and liabilities has been classified as current and non-current as per the Company's normal
operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the
nature of services and time between the acquisition of assets for providing of services and their realisation
in Cash and Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose
of current/non-current classification of assets and liabilities.

ii. Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realised or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as
non-current.

A liability is treated as current when it satisfies any of the following criteria:

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

• The Company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments does not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are
classified as non-current.

The Company has ascertained its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

iii. Property, plant and equipment & capital work-in-progress

Property, plant and equipment are tangible items that are held for use in the production or supply for goods
and services, rental to others or for administrative purposes and are expected to be used during more than
one period.

The cost of an item of property, plant and equipment is being recognised as an asset if and only if it is
probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. Subsequent costs are included in the asset’s carrying amount only
when it is probable that future economic benefits associated with the item will flow to the entity and the
cost of the item can be measured reliably.

Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net
of recoverable taxes/duty credit availed less accumulated depreciation, and accumulated impairment loss,
if any.

The cost of an asset includes the purchase cost of assets, including import duties and non-refundable
taxes, and any directly attributable costs of bringing an asset to the location and condition of its intended
use. For this purpose, cost includes carrying value as Deemed cost on the date of transition. Interest on
borrowings used to finance the construction of qualifying assets are capitalised as part of the cost of the
asset until such time that the asset is ready for its intended use.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property,
plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the
statement of profit and loss on consumption. When parts of an item of PPE have different useful lives, they
are accounted for as separate component.

The carrying amount of the replaced part is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. When a significant part of property, plant and equipment are required
to be replaced at intervals, the company derecognizes the replaced part and recognise the new part with
its own associated life and it is depreciated accordingly. Likewise when a major repair is performed, its
cost is recognised in the carrying amount of the plant and equipment as a replacement, if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in the Statement of Profit and
Loss as incurred.

The present value of the expected cost for the decommissioning of an asset after its use, if any, is included
in the cost of the respective asset if the recognition criteria for a provision are met.

The cost and related accumulated depreciation are eliminated from the financial statement upon sale or
retirement of the asset and resultant gain or loss are recognized in the Statement of Profit and Loss.

Assets identified and technically evaluated as obsolete are retired from active use and held for disposal
and are stated at the lower of its carrying amount and fair value less cost to sell.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and
not ready for their intended use, is carried at cost. Cost includes related acquisition expenses, construction
costs, related borrowing costs and other direct expenditures.

iv. Intangible assets

Intangible assets are recognized when it is probable that the future benefits that are attributable to the
assets will flow to the Company and the cost of the assets can be measured reliably.

Research costs are expensed as incurred. Development expenditures on an individual project are
recognised as an intangible asset when the company can demonstrate:

a) The technical feasibility of completing the intangible assets so that the asset will be available for use or
sale. b)Its intention to complete and its ability and intention to use or sale the assets.

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset.

e) The ability to measure reliably the expenditure during development.

During the period of development, the asset is tested for impairment annually.

Intangible assets acquired separately including patents and licenses, are measured on initial recognition
at cost/deemed cost. Following initial recognition, intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses, if any. Amortisation of the assets begins when the asset
is available for use.

The useful life of intangible assets asre assessed as either finite or indefinite. Intangible assets with finite
lives are amortized over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.The amortization period and the amortization method
for an intangible assets with a finite useful life are reviewed atleast at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the assets are considered to modify the amortization period or method, as appropriate , and
are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually,
either individually or at cost generating unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the change in useful life from
indefinite to finite is made on prospective basis.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss for the year in which the expenditure is incurred.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from
its use. Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss
when the asset is derecognized. Deemed cost is carrying amount under the previous GAAP as at transition
date.

v. Depreciation and amortization

The classification of plant and machinery into continuous and non-continuous process is done as per their
use and depreciation thereon is provided accordingly. Depreciation commences when the assets are
available for their intended use. Depreciation is calculated using the straight-line method to allocate their
cost, net of their residual values, over their estimated useful lives.

The management has estimated the useful lives and residual values of all property, plant and equipment
and adopted useful lives as stated in Schedule II of the Companies Act, 2013.

Intangible assets with finite life are amortized over the period of 5 to 10 years on straight line basis based
on the expected pattern of consumption of future economic benefits embodied in the assets.

vi. Foreign currency translations
Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at
the date the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the
balance sheet date are translated at the functional currency spot rate of exchange prevailing at the
balance sheet date. Any income or expense arising on account of foreign exchange difference either on
settlement or on translation is recognised in the Statement of Profit and Loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated
using the exchange rate at the date of the initial transaction. Non-monetary items which are measured at
fair value in a foreign currency are translated using the exchange rates at the date when fair value is
determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on the change in fair value of item.

vii. Inventories

(i) Raw materials, spares and consumables are valued at Cost on FIFO basis.

(ii) Traded Goods are valued at lower of cost or net realizable value. The cost is determined on FIFO
basis.

(iii) Finished Goods and Work in progress are valued at Lower of cost of production or net realizable
value.

Cost is determined on FIFO basis.

Cost of inventories comprises all costs of purchase and other cost incurred in bringing the inventories to
their present location and condition. Cost of production comprises of cost of direct materials, cost of
labour, manufacturing overheads, and a portion of fixed cost, based on the normal operating capacities.
Duties and taxes those are subsequently recoverable from the taxing authorities are excluded while
arriving at cost of purchase. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and the estimated costs necessary to make the sale.

viii. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.

Revenue from Contracts with Customers

Revenue from Contract(s) is recognised by following five steps model from revenue recognition as
prescribed in Ind AS 115 which namely are identifying of the contract(s) with a customer ; identifying the
separate performance obligation in the contract ; determining the transaction price ; allocating the
transaction price to the each separate performance obligation and recognising revenue when (or as) each
performance obligation is satisfied. The model specifies that revenue should be recognised when (or as)
an entity transfer control of goods or services to a customer at the amount to which the entity expects to
be entitled

The Company is in the business of manufacturing and sale of Detergents and Organic Chemicals. Revenue
from contract with customers is recognized upon transfer of control of promised products or services to
customers in an amount that reflects the consideration, the company expect to receive in exchange of
those products or services. Revenue is inclusive of excise duty and excluding estimated discount and
pricing incentives, rebates, other similar allowances to the customers and excluding Goods and Service
Tax (GST) and other taxes and amounts collected on behalf of third parties or government, if any.

Sale of Products

Revenue from sale of products is recognised at the point in time when control of asset is transferred to
the customers i.e when the customers obtain the ability to direct the use of and obtain sustantially all of
the remaining benefits from the asset, including ability to prevent other entities from directing the use of,
and obtaining the benefits from an asset. The company considers whether there are other promises in the
contract that are separate performance obligation to which a portion of the transaction price needs to be
allocated e.g warranties. In determining the transaction price for the sale of products, the company
considers the effect of variable consideration, the existence of significant financing components, non-cash
consideration, and consideration payable to the customers, if any.

Contract Balances
Contract Assets

A contract asset is recognised for the conditional earned consideration, if the company has the right to
consideration in exchange of goods or services transferred to a customer before the customer pays the
consideration or before payment is due.

Trade Receivables

A trade receivable is recognised for the company's right to an amount of consideration, in exchange of
goods or services transferred to a customer, that is unconditional i.e. only the passage of time is required
before payment of the consideration is due.

Contract Liabilities

A Contract liabilities is recognised for the consideration paid by a customer before the transfer of goods or
services to the company. The contract liabilities are recognised as revenue when the company performs
under the contract.

Contract Cost

The incremental costs of obtaining a contract with a customer and the costs incurred to fulfill a contract
with a customer, if those cost are not within the scope of other Ind AS for e.g. Ind AS 2 - Inventories, Ind
AS 16- Property Plant & equipment, Ind AS 38- Intangible Assets etc., are recognised as an asset, if the
company expects to recover those costs. The incremental costs of obtaining the contract are those that
the company incurs to obtain a contract with a customer that would not have been incurred if the contract
had not been obtained. The company has elected to apply the optional practical expedient for costs to
obtain a contract and to fulfill a contract which allows the company to immediately expense the costs
because the amortization period of the asset that the company otherwise would have used is one year.

Interest Income

Interest income from a financial asset is recognized when it is probable that the economic benefit will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset’s net carrying amount on initial recognition.

Dividend Income

Dividend income is recognized when the Company’s right to receive the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to the entity and the amount of
the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the
Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.

Insurance Claim

Insurance claim are recognised only when the realization of insurance claim is probable, and only to the
extent of related loss recognised in the financial statements. The recovery of loss is generally would be
probable, when the claim is not in dispute. Any amount expected to be recovered is excess of recognised
loss, which will result in gain is recognised upon the resolution of contingencies liability to insurance claim
i.e. whether amount of claim is admitted to the payable by the insurance company.

Export Incentive

Export Incentives are accounted for in the year of exports based on eligibility and when there is no
significant uncertainty in receiving the same.

Other Incomes

All other incomes are accounted on accrual basis.

ix. Expenses

All expenses are accounted for on an accrual basis.

x. Long-term borrowings

Long-term borrowings are initially recognised at a net of material transaction costs incurred and measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the
effective interest method.

xi. Borrowing costs

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

xii. Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the use of such option is reasonably certain. The
Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby
assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold
improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to Company's operations taking into account the location of the
underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed
to ensure that the lease term reflects the current economic circumstances.

• The company as a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease
components of the contract and allocates the consideration in the contract to each lease component
based on the relative stand-alone price of the lease component and the aggregate stand-alone price of the
non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease
term at the lease commencement date. The cost of the right-of-use asset measured at inception shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments

made at or before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted
for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The estimated useful lives of right-of-use assets are determined on the same basis as those of property,
plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of
profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at
the commencement date of the lease. The lease payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company
uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a
lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the
incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments,
variable lease payments, residual value guarantees, exercise price of a purchase option where the
Company is reasonably certain to exercise that option and payments of penalties for terminating the lease,
if the lease term reflects the lessee exercising an option to terminate the lease.

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 and remeasuring the
carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed
lease payments. The company recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon
the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of the lease liability, the Company recognises any
remaining amount of the re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all
assets that have a lease term of 12 months or less and leases for which the underlying asset is of low
value. The lease payments associated with these leases are recognized as an expense on a straight-line
basis over the lease term.

The company as a lessor

At the inception of the lease, the Company classifies each of its leases as either an operating lease or a
finance lease. The Company recognises lease payments received under operating leases as income on a
straight-line basis over the lease term. In the case of a finance lease, finance income is recognised over
the lease term based on a pattern reflecting a constant periodic rate of return on the lessor’s net
investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the
head lease and the sub-lease separately. It assesses the lease classification of a sublease with reference
to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head
lease is a short-term lease to which the Company applies the exemption described above, then it classifies
the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies Ind AS 115 Revenue
from contracts with customers to allocate the consideration in the contract.

xiii. Taxes

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to a business combination or to an item recognized directly in equity or in other comprehensive
income.

i) Current income tax :

Current income tax assets and liabilities are measured at the amount expected to be recovered from or

paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are

enacted or substantively enacted, at the reporting date.

Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized

directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and established provisions, where appropriate, on
the basis of amounts expected to be paid to the tax authorities.

The Company Offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets
and settle the liabilities simultaneously.

The Company will update the amount in the financial statement if facts and circumstances change as a
result of examination or action by tax authorities.

ii) Deferred tax:

Deferred tax is recognized using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to apply when the related
deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax is recognized in the Statement of profit and loss except to the extent that it relates to items
recognized directly in OCI or equity, in which case it is recognized in OCI or equity.

Deferred tax liabilities are generally recognised for all taxable temporary differences. A deferred tax asset
is recognized to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax (MAT) credits is recognised as deferred tax assets in the Balance Sheet only when
the asset can be measured reliably and to the extent there is convincing evidence that sufficient taxable
profit will be available against which the MAT credits can be utilised by the company in future.

xiv) Impairment

• Non-financial assets

Goodwill and Intangible assets that have an indefinite useful life are not subject to amortisation but are
tested annually for impairment.

Other intangible assets and property, plant and equipment are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment
based on internal/external factor. An asset is impaired when the carrying amount of the assets exceeds the
recoverable amount. Impairment is charged to the profit and loss account in the year in which an asset is
identified as impaired.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized
for the asset in prior years.

• Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (“ECL”) model for financial assets
measured at amortized cost. The Company recognizes lifetime expected credit losses for trade receivables.
Loss allowance equal to the lifetime expected credit losses are recognized if the credit risk of the financial
asset has significantly increased since initial recognition.

xv) Government grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with.

Government grants related to assets, including non-monetary grants recorded at fair value, are treated as
deferred income and are recognized and credited in the Statement of Profit and Loss on a systematic and
rational basis over the estimated useful life of the related asset.

When loans or similar assistance are provided by governments or related institutions, with an interest rate
below the current applicable market rate, the effect of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and measured at fair value and the government grant
is measured as the difference between the initial carrying value of the loan and the proceeds received.
The loan is subsequently measured as per the accounting policy applicable to financial liabilities.