Significant Observable and Unobservable Valuation Inputs:

The value of freehold land was determined based on condition, location, demand, supply, plant-layout and other infrastructure facility available at and around the said plot of land.

Right-of-use of leasehold land which was based on government promoted industrial estates, was measured on the present fair market value depending on the condition of the said estates, its location and availability of such plots in the said industrial estate.

The valuation of buildings and plant and equipment was based on its present fair market value after allowing for the depreciation of the particular assets, as well as the present condition of the assets (Depreciated Replacement Cost method). The replacement value of the said assets as well as its maintenance up-keep is considered while working out its present fair value.

Note on impairment provision -

The Company assessed its investment in its wholly owned subsidiary, CCVL, for impairment during the year due to significant regulatory and market developments in the last few months and including non notification of and consequent dropping of the expected anti-dumping duty on S-PVC, removal of customs duty on import of S-PVC, significant reduction in S-PVC prices on account of low priced imports and raw material price volatility due to West-Asia crisis.

CCVL has been identified as a separate cash-generating unit (CGU) as it generates independent cash inflows from the production and sale of Suspension PVC. The recoverable amount of the CGU has been determined based on the value in use (VIU) method using cash flow projections approved by management for a period of five years, which reflects the expected business cycle, and extrapolated thereafter using a terminal growth rate of 3%, consistent with industry averages. The valuation has been supported by an independent valuer. The VIU calculation is based on a post-tax weighted average cost of capital (WACC) of 13%.

Based on the independent valuer’s report, the recoverable amount of the CGU is ' 657.68 Crores compared to its carrying amount of ' 1,555.68 Crores, resulting in an impairment provision of ' 898.00 Crores as at March 31, 2026. Based on such valuation report and associated sensitivity analysis, management has recognised a provision for impairment of investment of ' 898.00 Crores, which has been disclosed as an exceptional item in the financial statements.

(Refer Note 39 for details of investments and also refer Note 38).

Nature and purpose of reserves:

Capital reserve:

The Company recognises the difference between the net assets less reserves acquired or transferred by the Company and as reduced by the share capital issued or received respectively, pursuant to a common control business combination is adjusted to capital reserve.

Capital redemption reserve:

The Company had created Capital redemption reserve in respect of redemption of preference shares in accordance with Companies Act, 2013.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares, adjustment of shares issue expenses, etc in accordance with the provisions of the Companies Act, 2013.

Asset revaluation reserve:

The Company had recognised the surplus arising out of revaluation of property, plant and equipment to asset revaluation reserve in accordance with Ind AS 16.

General reserve

General reserve is free reserve available for distribution as recommended by Board in accordance with requirements of the Companies Act, 2013.

A) Summary of borrowing arrangements Term loan from bank

a) Term loan from bank amounting to ' 772.94 Crores (March 31,2025: ' 637.60 Crores) is secured by first pari passu charge over entire moveable property, plant and equipment of the Company.

b) Vehicle loan from bank amounting to ' 0.23 Crores (March 31,2025: ' 0.30 Crore) is secured by hypothecation of the vehicle purchased out of the loan financed.

c) Term loan from bank amounting to ' 12.91 Crores (March 31, 2025: ' 19.31 Crores) is secured by exclusive charge on ship.

Repayment of loans

a) Term loan amounting to ' 772.94 Crores are repayable in 25 structured quarterly installments commencing from March 2024.

Current interest rate on the above term loan ranges from 7.12% to 9.50% p.a (March 31,2025: 8.05% to 9.65% p.a)

b) Term loan amounting to ' 0.23 Crores are repayable in 60 structured quarterly installments commencing from January 2024.

Current interest rate on the above term loan is 7.60% p.a (March 31,2025: 8.85% p.a)

c) Term loan amounting to ' 12.91 Crores are repayable in 36 structured monthly installments commencing from April 2025.

Current interest rate on the above term loan is 8.75% p.a (March 31,2025: 9.05% p.a)

C) The outstanding term loans from banks as at March 31,2026, amounting to '786.08 Crores (March 31,2025: ' 657.21 Crores), are subject to various financial covenants such as Total Debt / Tangible Net Worth ('TNW'), Debt Service Coverage Ratio, Asset Coverage Ratio, Earnings before Interest, Depreciation & Amortisation and Tax ('EBITDA') / Net Interest Expense, Total Debt / Adjusted TNW, Total Debt / EBITDA, Interest Cover, Fixed Asset Coverage Ratio, Total outside liabilities /Adjusted TNW. These covenants are tested annually as at March 31.

D) In relation to the outstanding term loans from banks as at March 31, 2026, the Company has complied with all material terms of the loan agreement, including financial covenants, or has obtained applicable waiver letters / other relevant confirmations from the respective lenders prior to the year-end, regarding continued repayment as per original sanction letters.

E) Where the Company cannot meet the financial covenant compliance requirements in the ensuing twelve months period, it is confident of obtaining appropriate waiver letter / other relevant confirmations from the lenders. Also refer note 2.3

Security Particulars

Working capital limits from banks are secured by a first pari passu charge on inventories and all current assets and second pari passu charge on all moveable property, plant and equipment.

The quarterly return submitted by the Company to its Bankers are in agreement with the books of accounts.

Supplier finance arrangement 1. Description of arrangement

The Company participates in a supply chain financing ('SCF') arrangement, which is disclosed under "Others" category of borrowings. Under this arrangement, a financial institution (factor) agrees to pay participating suppliers the amounts due from the Company on the original due dates of the invoices. The Company subsequently settles these amounts with the factor based on extended payment terms, over and above the normal credit terms originally agreed with the suppliers.

The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The risk management framework aims to:

• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company’s business plan.

• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

There has been no change to the Company’s exposure to market risk or the manner in which these risks are managed and measured.

36.4 Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

36.5 Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. The currencies, in which these transactions primarily are denominated in American Dollars (USD) and EURO. The Company may use forward exchange contract towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities depending upon the primary host contract requirement and risk management strategy of the Company. Exchange rate exposures are managed with in approved policy parameters.

36.5.1 Foreign currency sensitivity analysis

The following table details the Company’s sensitivity to a 1% increase and decrease in the functional currency against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1% change in foreign currency rates.

36.6 Interest rate risk management

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’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. It also uses sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting year was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Risk control assesses the credit quality of the customer, taking into account its financial position, past experience, other publicly available financial information, its own trading records and other factors, where appropriate, as means of mitigating the risk of financial loss from defaults. The Company’s exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across various industries and geographical areas.

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Company’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

None of the Company's cash and cash equivalents, including time deposits with banks, trade receivables and other receivables, and other loans or receivables have an expected credit loss as at March 31,2026.

36.7.1 Trade receivables

Customer credit risk is managed by the Company's established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed economically.

36.7.2 Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company’s treasury in accordance with the Board approved policy. Investments of surplus funds, temporarily, are made only with approved counterparties who meet the minimum threshold requirements under the counterparty risk assessment process.

36.8 Liquidity risk management

The Company has built an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair

value, compiled into Level 1 to Level 3, as described below:

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

i. The management assessed that cash and cash equivalents, short-term investments, trade receivables, trade payables, other current financial liabilities approximate their carrying amounts largely due to their short-term nature.

ii. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

iii. Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

| 37 COMMODITY PRICE RISK

The Company imports Ethylene, Ethylene Dichloride (EDC), VCM for manufacture of PVC, Methanol for manufacture of

Chloromethanes and Coal for its Captive Power Plant.

A) Ethylene, EDC and VCM :

Prices of PVC manufactured by the Company are monitored by Company’s management and adjusted to respond to change in import parity price of PVC in Indian market. The prices of Ethylene / EDC / VCM (Input) and PVC (Output) generally move in the same direction thereby maintaining the margins more or less at the same levels over a period of time. Therefore, the Company is not significantly exposed to the variation in commodity prices over a period for the above products.

| 40 SEGMENT REPORTING

The Company’s operations predominantly relate to manufacture and sales of Speciality Chemicals. The Board of Directors of the Company who have been identified as the chief operating decision maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is no separate reportable segment for the Company as per the requirement of Ind-AS 108 "Operating Segments". The Company’s operations are predominantly conducted in India and accordingly, there are no separate reportable geographic segment.

The Company’s revenue from one customer contributing to more than 10% amounts to ' 291.60 Crores (Previous year one customer contributing to more than 10% amounted to ' 263.25 Crores).

| 45 OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not advanced to or loaned to or invested funds (either borrowed funds or share premium or any other sources or kind of funds) in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding whether recorded in writing or otherwise, that such Intermediary shall:

(a) 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

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

(iii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

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

(iv) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

(v) The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

| 46 EMPLOYEE BENEFIT COST Defined benefit plans

Gratuity:

This is a defined benefit plan and the Company’s Scheme is administered by Life Insurance Corporation of India (LIC). The liability is determined based on the actuarial valuation using projected unit credit method as at Balance Sheet date. The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at March 31,2026 by an independent actuary.

| 51 EXCEPTIONAL ITEMS

The Company’s wholly owned subsidiary - CCVL is engaged in the production and sale of Suspension PVC (S-PVC). Pursuant to significant regulatory and market developments in the last few months and including non notification of and consequent dropping of the expected anti-dumping duty on S-PVC, removal of customs duty on import of S-PVC, significant reduction in S-PVC prices on account of low priced imports and raw material price volatility due to West-Asia crisis, the Company has revised its budgets / cash flow projections and has done a detailed evaluation of the carrying value of its investment in CCVL as at March 31,2026 with the help of an independent valuer. Based on such evaluation, the Company has recorded an impairment provision of ' 898.00 Crores as an exceptional item for the year ended March 31, 2026. (Also refer to Note 15 for further disclosures relating to the impairment assessment).

| 52 EMPLOYEES' BENEFITS OBLIGATIONS

a. Defined contribution plan

Employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the Company make monthly contributions to the Regional Provident Fund equal to a specified percentage of the covered employees’ salary. The Company recognises contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. The Company has no further obligations under the plan beyond its monthly contributions.

b. Defined benefit plan Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy. Fund is maintained with Life Insurance Corporation of India.

c. Labour code

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on wages 2019, the Industrial Relations Code 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 - 29 existing labour laws, collectively referred to as the "New Labour Codes". For the year ended March 31,2026, the Company has assessed and recorded the incremental impact of these changes amounting to ' 3.49 Crores, determined taking into consideration the best information available read with the FAQs released by Ministry of Labour & Employment and Institute of Chartered Accountants of India. The Company continues to monitor developments on the rules to be notified by regulatory authorities, including clarifications/ additional guidance from authorities and will continue to assess the accounting implications basis such developments/ guidance.

| 53 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a. Judgements

In the process of applying the Company’s accounting policies, management has not made any judgements, which have significant effect on the amounts recognised in the financial statements.

b. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans

The cost of the defined benefit gratuity plan is determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Further details about defined benefit obligations are given in Note 46.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 36 for further disclosures.

Fair value measurement of property, plant and equipments

The Company measures land, buildings, plant and machinery classified as property, plant and equipment at revalued amounts with increase in fair value being recognised in OCI. The Company had engaged independent valuation specialists to assess fair value for revaluation of land, buildings, plant and equipment as at November 30, 2024. Fair value of land was determined by using the market approach, hypothetical layout method and building and plant and equipment was determined by using Depreciated Replacement Cost (DRC) method. The key assumptions used to determine fair value of the property, plant and equipment are provided in Note 14.4.

Revenue from contract with customers

The Company estimates variable considerations to be included in the transaction price for the sale of goods and volume rebates. The Company’s expected rebates and discounts are analysed on a per customer basis for contracts that are subject to the applicable thresholds. Determining whether a customer will be likely entitled to rebate and discounts will depend on the customer’s rebates entitlement and total purchases to date.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its Incremental Borrowing Rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to for its borrowings.

Useful life of PPE

Estimated useful life of certain items of PPE are based on economic life of these assets as estimated by the management basis a technical assessment and usage and replacement policy of such assets. The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.