1. Change in estimates

During the year ended 31 March 2024, consequent to the technical evaluation of the remaining useful life of the existing property, plant and equipment of the Company, in case of certain items, the management had revised its estimates of useful life and computed depreciation accordingly. However, this change did not result in any significant impact on the depreciation expense for the year ended 31 March 2024 as well as year ended 31 March 2025, and is also not expected to have any material impact in the future periods.

2. Property, plant and equipment pledged as security:

There is no charge on property, plant and equipment as at March 31, 2025 and as at March 31, 2024.

3. Title deeds of immovable properties not held in name of the Company:

There is no immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deed is not held in the name of the Company.

4. Benami properties:

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

5. Capital commitments:

Refer note 38.1 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

There are no loans due by directors or other officers of the Company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.

The Company has not granted any loans to promoters, directors, key managerial personnel and the related parties (as defined under the Act), either severally or jointly with any other person, that are:

The Company’s trade receivables consist of receivables from dealers and customers against sales of pipes and fittings and PVC resin. Trade receivables are mostly on terms of advance payment and in certain cases credit period is generally up to 60 days. The Company also charges interest @ 18% per annum (p.a.) in case of delay in collection of trade receivables.

There are no loans having significant increase in credit risk or which are credit impaired or doubtful as at March 31, 2025 and March 31, 2024.

Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy.

There are no loans due by directors or other officers of the Company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.

The Company has not granted any loans to promoters, directors, key managerial personnel and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment

Disclosure pursuant to section 186(4) of the Act

The Company has granted unsecured loans to unrelated parties, towards expansion of their production capacity. These loans are repayable on demand. Further, no loans have been granted during the year. The outstanding balance as at March 31, 2025 is ^ 13.08 Crore (March 31, 2024 ^ 16.52 Crore).

i) The Company has not issued any bonus shares, neither the Company has bought back any of its shares, nor any shares have been issued pursuant to contract without payment being received in cash during the five years immediately preceding the balance sheet date.

ii) The Company has only one class of equity shares having a par value of ^ 2 each. Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

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. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) The Board of Directors have recommended a final dividend of ^ 2 (100%) per equity share of ^ 2 each and a special dividend of ^ 1.60 (80%) per equity share of ^ 2 each, aggregating to ^ 3.60 (180%) per equity share of ^ 2 each for the year ended March 31, 2025. The dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

Nature and purpose of reserves1. Capital redemption reserve

Capital redemption reserve is created by transferring an amount from retained earnings pursuant to buy back of equity shares, and represents nominal value of shares bought back. The reserve will be utilised in accordance with the provisions of the Act.

2. General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings. General reserve does not include a component of OCI.

3. Securities premium

Amount received (on issue of shares) in excess of the par value has been classified as securities premium. The reserve will be utilised in accordance with the provisions of the Act.

4. Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, capital redemption reserve, dividends or other distributions paid to shareholders.

5. Equity instruments through OCI

Equity instruments through OCI represents unrealised fair value gain(or) loss in investments measured at FVOCI.

a) The Company was entitled to receive Industrial Promotion Subsidy under the Package Scheme of Incentives in relation to investments in property, plant and equipment at Ratnagiri plant. Accordingly, the same has been classified as grant related to assets and the Company recognises the revenue from grants over the remaining useful life of the respective property, plant and equipment from the date on which the company is entitled to receive such grants.

Details of terms of borrowings:

Buyer’s credits are part of working capital facilities. These are repayable based on the terms of each buyer’s credit which is up to 90 days. The interest rate ranges from 4.57% per annum (p.a.) to 5.74% p.a. (March 31, 2024: 4.97 % p.a. to 6.10% p.a.)

Cash credits facilities have interest rate ranging from 8.50% p.a. to 9.60% p.a. (March 31, 2024: 8.70% p.a. to 9.60% p.a.)

The Company has aggregate limits of working capital borrowings of ^ 1,916.25 Crore (March 31, 2024: ^ 1,916.25 Crore) from various banks.

Borrowings from banks have been utilized for the purpose for which they were taken.

The Company has not been declared as wilful defaulter by any bank or financial institution or government or government authority.

Refer note 40 for discussion on Company’s financial risk management policies and procedures.

E Composition of deferred tax assets and deferred tax liabilities

Deferred taxes are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period. The Company offsets tax assets and liabilities, if and only if, it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income-taxes levied by the same tax authority.

Disclosures pursuant to Ind AS 115 - Revenue from contract with customers, are as follows:

(a) Revenue streams

The Company derives revenue form sale of pipes and fittings and PVC resin, which is disclosed in note 35 as segment revenue. Hence, no disaggregation of revenue is provided separately.

(b) Disaggregation of revenue from contracts with customers

The Company has performed a disaggregated analysis of revenues considering the nature, amount, timing and uncertainty of revenues. This includes disclosure of revenues by product lines, timing of revenue recognition and geography:

The aggregate amount of transaction price allocated to the performance obligations (yet to be completed) as at March 31, 2025 is ^ 10.75 Crore. This balance represents the advance received from customers against sale of goods. The management expects to invoice and collect the remaining balance of total consideration within next 12 months. These balances will be recognised as revenue in subsequent period as per the policy of the Company.

Nature of CSR activities:

Agriculture and rural development, eradicating hunger and poverty, promoting education, vocational skills, and livelihood, gender equality and women empowerment, preventive healthcare, heritage art and culture, environmental sustainability, promoting sports, sanitation, hygiene and safe drinking water, animal welfare, support to differently abled, technology incubators, armed forces/veterans, contribution to river and beach cleaning.

35 Segment information

The Company is in the business of manufacturing PVC resin and PVC pipes and fittings. Therefore as per Ind AS 108, “Operating Segments”, the Company has disclosed two segments i.e. PVC resin and PVC pipes and fittings.

The management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss that is measured consistently with profit or loss in the financial statements. The Company’s financing (including finance costs and finance income) and income-taxes are not allocated to operating segments.

Adjustments and eliminations

Finance income, costs and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the Company as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to these segments as they are managed for the Company as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets and additions to capital work-in-progress.

Geographic information

The Company operates in domestic market only, hence no separate geographical information has been provided.

36 Disclosure pursuant to employee benefitsA. Defined contribution plans:

Amount of ^ 8.77 Crore (March 31, 2024: ^ 7.95 Crore) is recognised as expenses and included in note no. 29 “Employee benefits expense”.

The contribution are made to recognised provident fund administered by the Government of India for employees @12% p.a. of basic salary per regulations. The obligation of the Company is limited to the amount contributed and it has no further contractual constructive obligation.

B. Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.

The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to fifteen days last drawn salary for each completed year of service as per Payment of Gratuity Act, 1972. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1. Liability risks

a. Asset-liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c. Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management’s discretion may lead to uncertainties in estimating this increasing risk.

d. Withdrawal

Actual withdrawal providing higher or lower than assumed withdrawal and change of withdrawal rate at subsequent valuation can impact plan’s liability.

2. Asset risks

All plan assets are maintained in a trust fund managed by a LIC, public sector insurer. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

*As post employment obligations and other long-term employee benefits/obligation are computed for all employees in aggregate, the amounts relating to key management personnel cannot be individually computed and hence are not included in the above.

Terms and conditions of transactions with related parties

Transaction entered into with related parties are made in ordinary course of business and on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

38 Commitments and contingencies 38.1 Commitments

a) Capital commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for as at March 31, 2025 ^ 18.66 Crore (March 31, 2024: ^ 51.49 Crore)

b) Other commitments:

Aggregate amount of bank guarantees outstanding as on March 31, 2025 is ^ 64.51 Crore (March 31, 2024: ^ 39.07 Crore)

1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

2 The amounts disclosed above represent the best possible estimates arrived at on the basis of available information.

3 The Company is contesting all of the above demands and the management believes that its positions are likely to be upheld by the respective courts. The management believes that the ultimate outcome of these proceedings are not expected to have a material impact on the Company’s standalone financial statements and hence no provisions have been made in this regard.

39 Fair value of financial assets and liabilities

This note explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at (i) fair value (ii) measured at amortised cost and for which fair values are considered to be same as the amortised costs disclosed in the financial statements. They are further classified into Level 1 to Level 3 as required by the Ind AS and described in the significant accounting policies of the Company. Further, the note describes valuation techniques used, key inputs to valuations and quantitative information about significant unobservable inputs for fair value measurements.

Valuation techniques used to determine the fair value of each financial instrument:

Fair value of financial instruments classified at amortised cost:

The management assessed that the fair values of cash and bank, loans, trade receivables, other financials assets, borrowings, trade payables, lease liabilities and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Carrying value of non-current financial liabilities are considered to be same as their fair value due to discounting at rate which are an approximation of incremental borrowing rate.

Fair value of financial instruments classified at FVTPL:

These financial instruments consist of investment in quoted equity instruments and units of mutual funds. The fair value of quoted equity instruments is based on the respective quoted price in the active markets as at the measurements date and fair value of investment in mutual funds is determined using the quoted price Net Asset Value ( ‘NAV’ ) of the respective units in the active market at the measurement date.

Fair value of financial instruments classified at FVOCI:

These financial instruments consist of investments in equity instruments. The fair value of quoted equity instruments is based on the respective quoted price in the active markets as at the measurement date. The fair value of investments in unquoted equity shares has been estimated using the net asset method. The valuation requires to consider the cost of replacement of an asset as an indication of the fair market value of that asset.

During the year ended March 31, 2025 and March 31, 2024, there were no transfers between hierarchies of fair value measurements.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. In addition, the Company internally reviews valuations, including independent price validation for certain instruments.

The Company’s principal financial liabilities comprise current borrowings, trade payables, lease liabilities and other financial liabilities. The Company’s principal financial assets include investments, trade receivables and cash and cash equivalents and other bank balances that arrive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s management oversees the management of these risks. The Company’s management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework. The risk management committee provides assurance to the Company’s management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company’s policies appetite. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

i) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company evaluates credit risk with respect to trade receivables as significantly low, as its payment terms are mostly advance basis.

a) Trade receivables

In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counter party or any group of counter parties having similar characteristics. Trade receivables consist of a large number of customers. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment, the Company adjust it’s exposure to various counterparties. The Company’s maximum exposure to credit risk for the other components of balance sheet is the carrying amount as disclosed below:

ii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all time 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.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

iii) Market risk

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

The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt, proportion of financial instruments in foreign currencies are all constant at March 31, 2025.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, other post retirement obligations and provisions Company’s activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

PVC pricing is on import parity and import parity value of sales of the Company exceeds the United States Dollar (USD) payables on a six monthly rolling basis and hence the Company does not generally need to resort to hedging by way of forward contracts, options, etc.

b) 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 has current borrowings with fixed interest rates and hence the future cash-flows of relevant financial instrument are not affected by changes in market interest rate.

c) Price risk i) Commodity price risk

The Company is affected by the volatility of prices of certain commodity chemicals (Ethylene and PVC) and intermediate products (Ethylene and Ethylene Dichloride (‘EDC’) and Vinyl Chloride Monomer (‘VCM’)). Its operating activities involve the ongoing purchase of VCM, EDC, all being petrochemical products for manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by the Company’s management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the Company is exposed to the variation in prices over short term period.

ii) Equity price risk

The Company’s listed and unlisted equity securities are susceptible to market-price risk arising from uncertainties about future values of the investment securities. The equity securities held by the Company are strategic in nature. The Company’s Board of Directors reviews and approves all equity investment decisions.

41 Capital management

Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure its ability to continue as going concern, maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company is not subject to externally imposed capital requirement. The Company manages its capital structure and makes adjustments to maintain efficient financing structure in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is total debt divided by total capital plus other equity.

44 Disclosure pursuant to Ind AS 116

(a) The Company as a lessee has obtained certain assets such as immovable properties on leasing arrangements for the purposes of manufacturing and storage facilities. With the exception of short-term leases and leases of low value underlying assets, each lease is reflected on the balance sheet as a right-to-use asset and a corresponding lease liability. Variable lease payment which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right-of-use assets. The Company has presented its right-of-use assets separately from other assets. Each lease generally imposes a restriction that unless there is a contractual right for the Company to sub-lease the asset to another party, the right-of-use asset can only be used by the Company. Some lease contain an option to extend the lease for a further term.

(b) Additional information on extension/ termination options: Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company’s operations. The majority of extension and termination options held are exercisable based on consent of the Company.

(c) There are no leases which are yet to commence as on March 31, 2025 and as on March 31, 2024.

(d) Lease payments, not included in measurement of liability

45 Utilization of borrowed funds:

During the years ended March 31, 2025 and March 31, 2024:

(i) 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, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 Undisclosed income:

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

47 Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current year and previous year.

48 Transactions with struck-off companies:

The Company does not have any transaction or outstanding balance with struck-off companies under section 248 of the Act or section 560 of Companies Act, 1956, during current and previous year.

49 Registration/satisfaction of charges with Registrar:

There are no charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period in the current as well as in the previous year.

50 Compliance on number of layers:

The Company has complied with the number of layers prescribed under section 2(87) of the Act.

51 Revaluation of property, plant and equipment and intangible assets :

The Company have not revalued its property, plant and equipment and intangible assets during the current year and previous year.

52 Compliance on scheme of arrangement:

The Company covered under the Act has not entered into any scheme of arrangement in terms of section 230 to 237 of the Act during the current year and previous year.

53 Recording audit trail:

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses the accounting software SAP for maintaining its books of account. During the year ended 31 March 2025, the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct data changes on account of recommendation in the accounting software administration guide which states that enabling the same would consume storage space on the disk and can impact database performance significantly. The users of the Company do not have any access to database IDs with DML (Data Manipulation Language) authority which can make direct data changes (create, change, delete) at database level. Audit trail (edit log) is enabled at the application level.

54 Previous year comparatives:

Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classifications / disclosures. The impact of such regroupings/ reclassifications are not material to the standalone financial statements.

The accompanying notes including a summary of material accounting policy information and other explanatory information form an integral part of these standalone financial statements.