Note to 5.10: Fixed deposits with banks amounting to '212.81 Lakhs (PY '69.67 Lakhs) are kept with the bankers as margin monies towards Bank guarantees issued to suppliers of the company and the said fixed deposits cannot be utilised by the company till completion of the contracts entered with suppliers. Earmarked balances with banks are the amounts pertaining to unpaid dividend and these amounts can be utilised by the company only for paying unpaid dividends.

5.13 (A) Rights, Preferences and restrictions attached to Equity Shares

Equity shares have a par value of '10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholdings.

Note 5.14 (a) Refer Statement of changes in Equity for Movement in balances of reserves Note 5.14 (b) General Reserve

The General Reserve is created from time to time by appropriating profits from retained earnings. The general reserve is created by transfer from one component of equity to another and accordingly it is not reclassified to the Statement of profit and loss.

Note 5.14 (c) Retained Earnings

Retained earnings generally represents the undistributed profit / amount of accumulated earnings of the company. Note 5.14 (d) Foreign Currency Translation Reserve relates to exchange differences for investment in Wholly owned foreign subsidiaries as the same are classified as non-integral foreign operations.

Note 5.14 (e) Other Comprehensive Income

Other Comprehensive Income (OCI) represents the balance in equity for items to be accounted under OCI and comprises of: items that will not be reclassified to profit and loss

a. The Company has made an irrevocable election to present the subsequent fair value changes of investments in OCI. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value including tax effects. The company transfers restated fair value amounts from this reserve to retained earnings when the relevant financial instruments are disposed.

b. The actuarial gains and losses along with tax effects arising on defined benefit obligations have been recognised in OCI.

Note 5.14 (f): In respect of the year ended 31^st March, 2025, the Board of Directors has proposed a dividend of ' 3/- per equity share, subject to approval by the shareholders at the ensuing Annual General Meeting after which dividend would be accounted and paid out of the retained earnings available for distribution in accordance with the provisions of the Act and for the year ended 31^st March, 2024, the Company paid dividend of ' 3/- per equity share as approved by the Shareholders in its respective Annual General Meeting.

Note 5.15A Security for term loans from PNB:

a) Exclusive charge on inventories, Book debts of the company, both present and future of the Company

b) Exclusive charge on plant and machinery equipments of the company

c) Unconditional and irrevocable Corporate Guarantee given by M/s Anar Enterprises Private Limited.

d) Term loan from SIDBI secured by the Solar Plant of 1.1 Megawatt being set-up at Polepalli, Anakapalle District. Repayment terms (Commencing from March, 2024):

Term loan-I is repayable in 17 equal monthly instalments of '49.78 Lakhs and 2^nd Term Loan is repayable in 52 equal monthly instalments of '14.94 Lakhs from December, 2023 to July 2027 & '15.93 Lakhs from August, 2027 to March, 2028.

Loan from SIDBI is repayable in 53 equated monthly installments of ' 8.95 lakhs commencing from 10^th November 2025. Note 5.15B Security for Vehicle loans: Loan taken for purchase of vehicles are exclusive charge on the respective vehicles purchased.

Repayment terms: Vehicles loans from ICICI bank are repayable in 40 monthly instalments commencing from April, 2023 with monthly EMIs of '1.64 Lakhs.

Vehicle loan from NBFC are repayable in 48 monthly instalments commencing from September, 2023 with monthly EMI of ' 2.05 Lakhs.

b) Defined Benefit Plans: General Description of the Post Employment defined Benefit Plans;

i) Gratuity:

The company provides for gratuity to the employees as per Payment of Gratuity Act,1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity is payable on retirement/resignation The gratuity plan is a Unfunded plan and the company provides liability in the books of account based on actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method.

ii) Compensated Absence:

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. Encashment of accumulated earned leave, subject to maximum permissible limits as per the terms of appointment, will be paid to the employee on separation.

The sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.

i) The tax rate used for the years ended 31^st March, 2025 and 31^st March, 2024 in reconciliations above is the corporate tax rate of 25.168 % (Previous year 29.12 %) payable by corporate entities in India on taxable profits under the Income Tax Act, 1961

ii) Pursuant to section 115BAA of the Income Tax Act, 1961, domestic companies have the option to pay corporate income tax rate at 22% plus applicable surcharge and cess (New tax rate @ 25.168%). The company has decided to opt for the new tax rate from the financial year 2024-25.

Note 5.34 Calculation of Earnings Per Share (EPS) is as follows:

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects all dilutive potential equity shares.

Operating segments are identified and reported taking into account the different risk and return, organization structure and internal reporting system. Segmental reporting as per Ind AS-108 as notified by MCA is not applicable, as the Company is engaged in manufacture of a single line of product.

Note 5.36 Impairment of Assets

The company assesses, at each reporting date, whether there is an indication that an asset may have to 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 its fair value less costs of disposal and 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 groups of 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.

According to an internal technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of Indian Accounting Standard 36 'Impairment Of Assets'

Note 5.42: Other additional Regulatory information

a) Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

b) No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.

c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies Act, 2013.

d) The company has not granted any Loans or advances in the nature of loans to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

e) There are no transactions that are not recorded in the books of account and have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

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

Note 5.43:

As at 31.03.2025, the company has invested US$ 5,25,000, INR equivalent ' 450.45 Lakhs in Alufluoride International Pte Limited, Singapore. The company was allotted 5,25,000 ordinary shares of the face value of US$ 1 each fully paid up. Accordingly, Alufluoride International Pte Limited, Singapore has become the 100 per cent owned subsidiary of the company. An MOU was signed between Alufluoride Limited, Visakhapatnam and Jordan Phosphate Mines Company PLC, Jordan and Indo Jordan Chemical Company, Jordan (Joint Venture Partners) to set up a green field Aluminium Fluoride manufacturing facility at Jordan. However,Alufluoride International Pte Limited, Singapore has disinvested its entire shareholding in Indo Jordan Chemical Company, Jordan due to geopolitical reasons.

A) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries)

B) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 5.46 Previous year's figures have been regrouped and rearranged wherever necessary to make them comparable with the current year figures.