d) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed,
for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement. If
the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time
is recognised as a finance cost. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed in respect of possible
obligations that have risen from past events and the existence of
which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control
of the enterprise, or is a present obligation that arises from past
events but is not recognised because either it is not probable
that an outflow of resources embodying economic benefits will
be required to settle the obligation, or a reliable estimate of the
amount of the obligation cannot be made.

e) Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or
sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing cost
also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

f) Taxes

Tax expense (Income Tax and Deferred Tax) in accordance with
Ind-AS 12: Accounting for Taxes on Income has been recognised.
There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax
determination is uncertain. Where the final tax outcome of these
matters is different from the amounts initially recorded, such
differences will impact the current and deferred tax provisions in
the period in which the tax determination is made. The deferred
tax asset is recognized and carried forward only to the extent that
there is a virtual certainty that the assets will be realized in future.

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 in accordance with the Income-tax Act, 1961. The tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside statement
of profit and loss is either in other comprehensive income or
in equity. Current tax items are recognised in correlation to
the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions
where appropriate.

g) Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognised in respect of
employees' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

ii. Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not
expected to be settled wholly within 12 months after the
end of the period in which the employees render the related
service. They are therefore measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the end of the reporting period
using the projected unit credit method. The benefits are
discounted using the market yields at the end of the reporting
period that have terms approximating to the terms of the
related obligation. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are
recognised in profit or loss. The obligations are presented
as current liabilities in the balance sheet if the entity does not
have an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of when
the actual settlement is expected to occur.

iii. Post-employment obligations

The Company operates the following post-employment
schemes:

(a) Defined benefit plans such as gratuity, pension, post¬

employment medical plans; and

(b) Defined contribution plans such as provident fund.

iv. Defined benefit plans

The Company's gratuity scheme is a defined benefit plan. A
defined benefit plan is a post employment benefit plan. The
Company's net obligation in respect of defined benefit plans
is calculated by estimating the amount of future benefits
that employee have earned in return for their services in the
current and prior periods.

v. Defined contribution plans

The company's provident fund scheme is a defined
contribution plan. A defined contribution plan is a post
employment benefit plan under which an entity pays fixed
contributions and will have no obligation to pay further
amounts. Obligation for contributions to defined contribution
plans are recognised as employees benefit expenses in the
statement of Profit and Loss when they are due.

a. Gratuity

Gratuity is a post employment defined benefit plan. The
liability recognised in the Balance Sheet in respect of gratuity
is the present value of the defined benefit obligation at the
Balance Sheet date. The Company's liability is actuarially
determined at the end of each year. Actuarial gains/
losses through remeasurement are recognised in other
comprehensive income.

b. Pension and gratuity obligations

The liability or asset recognised in the balance sheet in
respect of defined benefit pension and gratuity plans is the
present value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit obligation
denominated in INR is determined by discounting the
estimated future cash outflows by reference to market yields
at the end of the reporting period on government bonds
that have terms approximating to the terms of the related
obligation. The benefits which are denominated in currency
other than INR, the cash flows are discounted using market
yields determined by reference to high-quality corporate
bonds that are denominated in the currency in which the
benefits will be paid, and that have terms approximating to
the terms of the related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other
comprehensive income.

They are included in retained earnings in the statement of
changes in equity and in the balance sheet. Changes in
the present value of the defined benefit obligation resulting
from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

a) Defined benefit plans (gratuity benefits), liability in
respect of defined benefit plans is recognised in the
balance sheet, and is measured as the present value
of the defined benefit obligation at the reporting date
less the fair value of the planned assets. The present
value of the defined benefit obligation is based on
expected future payments which arise from the fund at

the reporting date, calculated annually by independent
actuaries. Consideration is given to expected future
salary levels and period of service etc.

b) Company's contribution to provident fund is accounted
for on accrual basis.

c) Temporary employee benefits are recognized as an
expense at the undiscounted amount in the statement
of profit and loss of the year in which the related service
is rendered.

d) Bonus is provided in accordance with provisions of
Payment of Bonus Act,1965 on the basis of profitability.

e) Post employment and other long term employee
benefits are recognised as an expense in the statement
of profit and loss for the year in which the employee
has rendered services. The expense is recognized at
the present value of the amount payable determined
using actuarial valuation technique. Actuarial gain and
loss in respect of post employment and other long-term
benefits are charged to statement of profit and loss.

h) Foreign Currency Transactions and balances

Transactions in foreign currency are recorded applying the
exchange rate at the date of transaction. Monetary assets and
Transactions in foreign currency are recorded applying the
exchange rate at the date of transaction. Monetary assets and
liabilities denominated in foreign currency remaining unsettled at
the end of the year, are translated at the closing rate prevailing on
the Balance Sheet date. Non-monetary items which are carried
in terms of historical cost denominated in foreign currency are
reported using the exchange rate at the date of transaction.
Exchange differences arising as a result of the above are
recognized as income or expenses in the statement of profit
and loss. Exchange difference arising on the settlement of
monetary items at rates different from those at which they were
initially recorded during the year, or reported in previous financial
statements, are recognised as income or expenses in the year in
which they arise. Foreign exchange difference on foreign currency
borrowings, loans given, settlement gain/loss and fair value gain/
loss on derivative contract relating to borrowings are accounted
and disclosed under finance cost. Such exchange difference
does not include foreign exchange difference regarded as an
adjustment to the borrowings cost and capitalised with cost of
assets

i) Impairment of non-financial assets

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

In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

For assets excluding goodwill, an assessment is made at each
reporting date to determine whether there is an indication that
previously recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company estimates the
asset's or CGU's recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount
since the last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would
have been determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such reversal is
recognised in the statement of profit or loss. When the recoverable
amount of the CGU is less than it carrying amount, an impairment
loss is recognised.

j) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at
banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to an insignificant risk
of changes in value. For the purpose of the statement of cash
flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts
as they are considered an integral part of the Company's cash
management.

k) Cash flow Statement

Cash flows are reported using the indirect method, whereby profit
for the year is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated
with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company are
segregated.

l) Cash dividend

The Company recognises a liability to make cash distributions
to equity holders when the distribution is authorised and the
distribution is no longer at the discretion of the Company. As per
the corporate laws in India, a distribution is authorised when it
is approved by the shareholders. A corresponding amount is
recognised directly in equity.

m) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) paid as per Indian Income Tax Act,
1961 is in the nature of unused tax credit which can be carried
forward and utilised when the Company will pay normal income tax
during the specified period. Deferred tax assets on such tax credit
are recognised to the extent that it is probable that the unused tax
credit can be utilised in the specified future period. The net amount
of tax recoverable from, or payable to, the taxation authority is
included as part of receivables or payables in the balance sheet.

n) Government grants

Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an
expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to
compensate, are expensed. When the grant relates to an asset,
it is recognised as income in equal amounts over the expected
useful life of the related assets.

o) Export Benefits:

Duty free imports of raw materials under Advance License for
imports as per the Import and Export Policy are matched with
the exports made against the said licenses and the net benefit/
obligation has been accounted by making suitable adjustments in
raw material consumption.

The benefit accrued under the Duty Drawback, Merchandise
Export Incentive Scheme and other schemes as per the Import
and Export Policy in respect of exports made under the said
schemes is included as ‘Export Incentives' under the head ‘Other
operating revenue'.

p) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit
or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during
the period. For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

q) Share-Based Payments:

Measurement and disclosure of the employee share based
payment plans are done in accordance with Ind AS 102, Share-
Based Payment. The Company measures compensation cost
relating to employee stock options using the fair value method.
Compensation expense is amortised over the vesting period of the
option on a straight-line basis.

r) Errors and Omissions of earlier period:

Errors and omissions in individual items of Income and Expenditure
relating to earlier periods, exceeding Rs.1 Lakh is accounted in
the respective period, if possible, or adjusted against opening
retained earnings.

Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments
to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. On March 31, 2023, MCA amended the
Companies (Indian Accounting Standards) Amendment Rules, 2023, as
below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires
the entities to disclose their material accounting policies rather than their
significant accounting policies. The effective date for adoption of this
amendment is annual periods beginning on or after April 1, 2023. The
Company has evaluated the amendment and the impact of the amendment
is insignificant in the standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
- This amendment has introduced a definition of ‘accounting estimates' and
included amendments to Ind AS 8 to help entities distinguish changes in
accounting policies from changes in accounting estimates. The effective
date for adoption of this amendment is annual periods beginning on or after
April 1, 2023. The Company has evaluated the amendment and there is no
impact on its standalone financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the
initial recognition exemption so that it does not apply to transactions that
give rise to equal and offsetting temporary differences. The effective date for
adoption of this amendment is annual periods beginning on or after April 1,
2023. The Company has evaluated the amendment and there is no impact
on its standalone financial statement.

Accounting policy:

The Company uses the carrying value as the deemed cost of investment
properties. Investments in property that are not intended to be occupied
substantially for use by, or in the operations of the company, have been
classified as investment property. Investment properties are measured
initially at its cost including transaction cost and borrowing cost, wherever
applicable. Subsequent to initial recognition, investment properties are
stated at cost less accumulated depreciation and accumulated impairment
loss, if any. Subsequent cost are included in the assets carrying amount or
recognized as a separate asset, as appropriate, only when 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. All other repairs and
maintenance are charged to profit or loss during the reporting period in which
they are incurred.

Though the company measures investment property using cost based
measurement, the fair value of investment property is disclosed in the notes.
Fair values are determined based on an annual evaluation performed by an
accredited external independent valuer

The company depreciates its investment properties over the useful life which
is similar to that of Property, Plant and Equipment.

Investment properties are derecognised either when they have been
disposed off or when they are permanently withdrawn from use and no future
economic benefit is expected from their disposal. The difference between the
net disposal proceeds and the carrying amount of the asset is recognised in
profit or loss in the period of derecognition.

Accounting policy:

Intangible assets acquired separately are measured on initial recognition
at cost. Following initial recognition, intangible assets with definite life
are carried at cost less any accumulated amortisation and accumulated
impairment losses. Internally generated intangible assets, excluding
capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure
is incurred. The amortisation period and the amortisation method for an
intangible asset with a definite useful life are reviewed at least at the end of
each reporting period.

Gains or losses arising from de-recognition of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognised in the statement of profit
and loss when the asset is derecognised. Research costs are expensed
as and when incurred. Development expenditures on an individual project
are recognised as an intangible asset when the Company can demonstrate
technical and commercial feasibility of making the asset available for use
or sale.

Following initial recognition of the development expenditure as an asset, the
asset is carried at cost less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins when development is
complete and the asset is available for use. It is amortised over the period of
expected future benefit. Amortisation expense is recognised in the statement
of profit and loss unless such expenditure forms part of carrying value of
another asset.

15a. Lease
Accounting policy:

The Company assesses whether a contract contains a lease at inception of
a contract. A contract is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the
use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of
the asset throughout the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a
right-of-use asset (“ROU”) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over the term of the
lease.

As a lessee, the Company determines 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 HOCL'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.

Certain lease arrangements include the options to extend or terminate the
lease before the end of the lease term. ROU assets and lease liabilities
includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the
initial amount of the lease liability adjusted for any lease payments made
at or prior to the commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently measured at cost
less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a
straight-line basis over the shorter of the lease term and useful life of the
underlying asset. Right-of-use-assets 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 lease liability is initially measured at amortized cost at the present value
of the future lease payments. The lease payments are discounted using the
interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases. Lease
liabilities are remeasured with a corresponding adjustment to the related
right of use asset if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance
Sheet and lease payments have been classified as financing cash flows.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks
and rewards of ownership of an asset are classified as operating leases.
Rental income from operating lease is recognised on a straight-line basis
over the term of the relevant lease.

profit or loss. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered. Deferred tax
assets and liabilities are measured at the tax rates that are expected to apply
in the year when the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the
reporting date. Deferred tax relating to items recognised outside profit or loss
is recognised outside profit or loss (either in other comprehensive income or
in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

16. Deferred Tax liabilities
Accounting policy:

Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date. Deferred tax liabilities are
recognised for all taxable temporary differences, except when the deferred
tax liability arises from the initial recognition of Goodwill or an asset or liability
in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss
in respect of taxable temporary differences associated with investments in
subsidiaries, associates and interests in the temporary differences will not
reverse in the foreseeable future Deferred tax assets are recognised for all
deductible temporary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognised to the extent that
it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised, except: When the deferred tax asset relating to
the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable

*Borrowings are initially recognised at fair value, net of transaction costs
incurred. Borrowings are subsequently 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 rate (EIR) method.

The company has obtained a term loan from Energy Management Centre
(EMC) amounting to Rs 299 lakhs on 20th March,2024, repayable in 60
equal instalments over a period of 5 years, carrying an effective interest rate
of 5.59%. The loan is measured at amortised cost using the effective interest
rate (EIR) method. The upfront processing fees and other transaction costs
of Rs 12.67 lakhs have been deducted from the loan proceeds and are being
amortised over the tenure of the loan using the EIR method.

The term loan was obtained for the purpose of replacement of compressor
with energy- efficient ones. The installation of energy efficient compressor
is not completed, it is not ready for its intended use. Consequently, the
payment was not made to the supplier and the loan amount is temporarily
invested in a fixed deposit

a) The long outstanding loan of Rs.43,586.46 lakhs from the Government
of India (GOI) and Redeemable Preference Shares of Rs.27,000 lakhs,
along with the accrued interest of Rs. 47,359.79 lakhs and Rs.7,222.5
lakhs respectively, as at 30th September 2024, have been waived off by
GOI vide Order No. 1600/9/2024-IFD dated 21st March 2025. Accordingly,
the principal amount of Rs. 70,586.46 lakhs has been transferred to the
other equity, and the interest and penal interest of preference shares of Rs.
54,582.29 lakhs have been classified as miscellaneous Income. (Ref: Note
No. 35 (vii& viii)

b) An additional liability of Rs. 4,306.91 lakhs was provided to comply with the
orders of Bombay High Court decision determining the mesne profit as Rs.
5,070 lakhs payable to Harchandrai & Sons. Company had deposited Rs.
250 lakhs to comply the order. HOCL has filed a Special Leave Petition
before the Hon’ble Supreme Court of India challenging the Bombay High
Court’s order.(Ref: Note No.35 (v))

31 EMPLOYEES BENEFIT PLAN:

A. Provision for leave encashment

The Company has made a provision and levied Rs.1,189.15 Lakhs (previous
year Rs.1,155.38 Lakhs) for leave encashment as on 31st March, 2025, as
per the Ind AS-19 based on Actuarial Valuation and the unpaid amount of
leave encashment claims submitted by the employees.

B. Provident fund

Employees receive benefits from the provident fund managed by the
Company upto 30th June 2018. From 1st July 2018 onwards the Company
has transferred the Provident fund accounts of all employees to Employees
Provident Fund Organisation (EPFO) and managed by EPFO. The
employee and employer each make monthly contributions to the Provident
Fund/Pension Fund plan equal to 12% of the employees’ salary/wages.

C. Gratuity

Gratuity plan is governed by the Payment of Gratuity Act, 1972 and employee
who has completed five years of service is entitled to gratuity and the level of
benefits provided depended on the member’s length of service and salary at
retirement age. The Employees’ Gratuity Fund Scheme, which is a defined
benefit plan, is managed by the Trust through an Annuity Scheme maintained
with Life Insurance Corporation of India (LIC). The Company has considered
return on plan assets as Other Comprehensive Income for the period.
The balance fund available with LIC is Rs.1,459.16 Lakhs (Previous year
Rs.1,651.34 Lakhs) and deposit with ICICI Bank Rs.0.45 Lakhs (Previous
year Rs. 0.45 Lakhs)

A. Acturial Risk:

It is the risk that benefits will cost more than expected. This can arise
due to one of the following reasons:

Adverse salary growth experience:

Salary hikes that are higher than the assumed salary escalations
will result into an increase in obligation at a rate that is higher than
expected.

Variability in mortality rates:

If actual mortality rates are higher than assumed mortality rate
assumption then the Gratuity Benefits will be paid earlier than expected.
Since there is no condition of vesting on the death benefit, the
acceleration of cashflow will lead to an actuarial loss or gain depending
on the relative values of the assumed salary growth and discount rate.
Variability in withdrawal rates:

If actual withdrawal rates are higher than assumed withdrawal rate
assumption then the Gratuity Benefits will be paid earlier than expected.
The impact of this will depend on whether the benefits are vested as at
the resignation date.

B. Investment Risk

For funded plans that rely on insurers for managing the assets, the
value of assets certified by the insurer may not be the fair value of
instruments backing the liability. In such cases, the present value of the
assets is independent of the future discount rate. This can result in wide
fluctuations in the net liability or the funded status if there are significant
changes in the discount rate during the inter-valuation period.

C. Liquidity Risk :

Employees with high salaries and long durations or those higher in
hierarchy, accumulate significant level of benefits. If some of such
employees resign/retire from the Company there can be strain on the
cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes
and fluctuations of the financial markets. One actuarial assumption that
has a material effect is the discount rate. The discount rate reflects the
time value of money. An increase in discount rate leads to decrease
in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate/government bonds
and hence the valuation of liability is exposed to fluctuations in the
yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction
in the plan assets due to change in the legislation/regulation. The
government may amend the Payment of Gratuity Act thus requiring the
companies to pay higher benefits to the employees. This will directly
affect the present value of the Defined Benefit Obligation and the same
will have to be recognized immediately in the year when any such
amendment is effective.

The Summary of the assumptions used in the valuations is given below:

MDRS, HOCL had waived interest of Rs.2,260.26 lakhs accumulated
on loan given to HFL and converted the unsecured loan amounting to
Rs.2,744.07 lakhs as Zero Coupon Loan (ZCL), into secured loan by
on HFL creating first charge on immovable property in favour of HOCL.
This loan was payable in 7 equal annual instalments commencing from
2010-11, aggregating to Rs.2,744.07 lakhs (Previous year Rs.2,744.07
lakhs) which has become due and payable in full. Further, the Company
had given loans to HFL aggregating to Rs. 453.01 lakhs (Previous
Year Rs. 453.01 lakhs) at the interest rate of 10.25% to 14.50% which
has become payable in full. This loan is also secured by first charge
on the HFL immovable property. The interest accrued on the loan till
31.03.2023 amounts to Rs. 1075.05 lakhs. Additionally, an amount
of Rs.19.39 lakhs was provided during the year towards delisting
expenses.

As per the valuation report by an external registered independent
valuer having professional qualification the value of the secured
property of 84 acre and 31 gunthas acre of land is Rs.10,196.71
lakhs ( Rudram Village 32 acre and 26 gunthas valued at Rs.4,898.81
Lakhs and Edathanoor village 52 acre and 5 gunthas valued at Rs.
5,297.99 Lakhs),as on date 31.03.2025. The company will recover the
said receivables from the proceeds of the secured property, hence no
provision is required to be made in this regard.

a) Claims against the Company not Acknowledged as debts:

i) Income Tax Claims: Rs.92.00 Lakhs.

There are various appeals for Assessment years are pending before
authorities i.e. ITAT, High Court and other forums. The Company is
awaiting for hearing, the details are as follows:-

A Y 2002-03 Rs. 70.49 Lakhs and AY 2011-12 Rs.21.50 Lakhs.

The above assessments are under disputes at various appellate
authorities. The Company has not acknowledged the debts and
the interest / penalty that would be leviable on the claims are not
ascertainable.

ii) Excise duty / Service tax

The Company has ongoing disputes with Central excise authorities
relating to the period 2006-07, amounting to Rs.104.63 Lakhs.
Company has filed Appeals at various Tribunals.

The above assessments are under disputes at various appellate
authorities. The Company has not acknowledged the debts and
the interest / penalty that would be leviable on the claims are not
ascertainable.

iii) Gratuity for School teachers

Case filed by the teaching staff of HOC Rasayani School for the period
upto March 1997, pending before Bombay High Court (Rs.75.31 Lakhs)
(as on 31.03.2025).

iv) Other claims (Legal cases): Rs.272.90 Lakhs (as on 31.03.2025).

a) Case filed by the Company against the award passed by MAC
Tribunel, Trichur in relation to Phenol Tanker accident in 1994
(Rs.118 Lakhs)(as on 31.03.2025)

b) ESI corporation has raised a demand for contribution during the
period from 01.04.1992 to 31.10.1992 amounting to Rs.2.17 lakhs.
The matter is pending with ESI Court, Ernakulam, as desired by
the ESI Court we had applied for exemption from ESI Act to the
Govt. of India, hence no liability is created and a contingent liability
to that extend is provided.

c) The Company had invited open tender for work of construction
of “Civil and Structural works for Construction of Plant Building,
Technical Service Building, R&D Building, etc of PU System House
Project. Company had issued the Work Order to M/s Shetusha
Engineers & Constructions Pvt. Ltd. (SECPL). On account of
delay and other shortcomings in the completion, company had
deducted Liquidated damages. SECPL objected for the said
deductions and filed an Arbitration Application before the Hon'ble
High Court, Mumbai. Later the M/s SECPL had unconditionally
withdrawn the said Arbitration Application from the Court. Further,
M/s SECPL had filed Suit before the Hon'ble High Court, Mumbai
against the Company for passing the Decree against the Company
towards payment of Rs.113.35 Lakh including interest. The case is
pending for final hearing (as on 31.03.2025).

d) The Company invoked the peformance gurantee given by
M/s Vakharia Construction Company, Mumbai (VCC) to whom

civil contracts had been alloted as the contract works were not
completed as per the terms of the work order. The matter was
referred to arbitration and later went to the High Court. The court
ordered the Company to deposit Rs.12 lakhs and M/s VCC is
allowed to withdraw the amount on submission of bank gurantee.
The appeals filed before the Hight Court were dismissed. Now
M/s VCC raised demand for bank gurantee commission paid to
the bank and interest at the rate of 18% as the money decree
passed by the Trial Court in favour of VCC was stayed due to filing
civil application by the company. The liability estimated on this is
Rs.39.38 lakhs and the matter is pending before court of law and
accordingly shown under contingent liabilities (as on 31.03.2025).

e) Saikripa was a contractor engaged by HOCL Limited to provide
canteen services at the Rasayani Unit under an agreement from
01.03.2013 to 28.02.2014, which was subsequently extended
up to March 2016. Due to the poor financial condition of HOCL
Limited, the company was unable to pay the monthly bills raised
by Saikripa. As a result, Saikripa was unable to deposit the
Provident Fund (PF) contributions of its employees with the PF
authorities due to lack of funds. Subsequently, in October 2021,
the Regional PF Commissioner-II, R.O. Thane (South), passed an
order directing Saikripa to pay Rs.12,12,747/- to the PF authorities
towards interest. Saikripa has filed a case against this order before
the Central Government Industrial Tribunal (CGIT), Mumbai.The
estimated liability in this matter is Rs. 34.00 lakhs, and the case is
currently pending before the CGIT, Mumbai.(as on 31.03.2025)

f) The Company has given the mandate for the personal loan of the
employees to Canara Bank. Accordingly, Applicant had borrowed
the loan from Canara Bank and HOC Limited was deducting EMI
and depositing the same in bank. Further, HOC Limited informed
the employees certain cut-off date for deduction from their salaries
and informed employees to deposit their EMI directly in bank. The
Applicant had not paid EMI after cut-off date fixed by HOC Limited.
Further, Applicant filed the said case for not depositing the amount
deducted by HOC Limited up to cut-off date. The estimated liability
as on 31.03.2025 is Rs. 79.00Lakhs(2 33 36 8).

g) Provident Fund Damages Claim: The Employees' Provident
Fund Organisation (EPFO) has raised a demand of Rs. 38.44
Lakhs towards damages for delayed remittance of provident fund
contributions for the period from 01.04.2013 to 28.02.2018. The
Company has contested the demand on the grounds that the
said period falls within the time when the Company was under
the Board for Industrial and Financial Reconstruction (BIFR), and
therefore, such claim is not payable. An appeal has been filed by
the Company before the Central Government Industrial Tribunal
(CGIT), Ernakulam. Pending final adjudication, the said amount
has been disclosed as a contingent liability.

h) A case has been filed before the Central Government Industrial
Tribunal (CGIT), Ernakulam, by workmen who were transferred
from the Rasayani unit, claiming the benefit of three additional
increments granted to employees of the Kochi unit under
a separate wage settlement in 2007. The three increments
were granted to Kochi employees in recognition of the unit's
performance. Following the closure of the Rasayani unit, certain
workmen were transferred to Kochi and have subsequently raised
an industrial dispute seeking parity in increments. The matter is
pending adjudication before the CGIT.The estimated liability as on
31.03.2025 is Rs. 10.00 Lakhs.

v) Rental claim Harchandrai House Rs.6,738.19 Lakh

The Bombay High Court passed orders determing Rs. 5,070 lakhs as
mesne profit and interest thereon. Consequently, company deposited
Rs. 250 lakhs to comply the orders and an additional liability of
Rs.4,316.91 Lakhs was provided to in compliance with the orders of
Bombay High Court. HOCL has filed a Special Leave Petition before
the Hon'ble Supreme Court of India challenging the Bombay High
Court's order.

vi) JNPT lease rent: Rs.3,318.86 Lakhs (as on 31.03.2025).

The Company has entered into MoU with Jawaharlal Nehru Port Trust
(JNPT) to hand over the land allotted to the Company for setting up
Liquid Tank Farm on lease basis along with assets of the Company
‘as is where is basis'. The JNPT raised a demand of Rs.4,124 lakhs
towards lease rentals and other charges. The Company has instituted
arbitral proceedings and Arbitral Tribunal issued the award in favour
of the Company. The assets of the Company valued as per the MoU
at Rs.1,638.50 lakhs and same is agreed and paid by M/s.JNPT. The
undisputed amount of lease rent payable by the Company to JNPT
was computed on a mutual understanding between the Parties on the
basis of arbitral award is Rs. 805.13 lakhs and the same is paid by
the Company. The disputed amount includes lease rentals Rs.2,974.51
lakhs, water charges 0.65 Lakhs, way leave charges Rs.297.09 Lakhs
and Service tax of way leave charges Rs.46.61 lakhs. The Company
has shown balance amount of demand of JNPT after adjusting
undispute lease rental paid as contingent liability since the appeal filed
against the arbitral awards pending for hearing before High Court and
the Company is of the opinion that no provision is required as there is
uncertainties in crystatlisation of demand at this stage of litigation.

vii& viii) Interest at higher rate on Govt. Loans: Rs.9,398.31 Lakhs and
Interest on defaulted interest on Govt. Loan Rs.68,294.06 lakhs

The long outstanding loan of Rs. 43,586.46 lakhs from GOI and
Redeemable Preference Shares of Rs. 27,000 lakhs carry along with
the outstanding interest of GOI, interest on preference shares, and
penal interest thereon of Rs. 47,359.79 lakhs, Rs. 7,222.5 lakhs, and
Rs. 9,967.96 lakhs, respectively, as at 30 Sep 2024, have been waived
off by GOI vide GOI Order No. 1600/9/2024-IFD dated 21.03.2025.
Since the original interest on loan has been waived off the interest on
interest of Rs. 68,294.06 lakhs stand irrelevant and has been cleared
from contingent liability.

ix) ix) Nilima Chemical Corporation.

Payment of Rs. 15.00 lakhs was made to to nilima chemicals
corporation to comply IO No.WB00908 Dt. 18.01.2025. The case has
been been disposed off full and final satisfaction

x) GST Demand Rs. 41.97 Lakhs

A Show cause Notice received from GST audthorities dated 04-09¬
2023, from the Joint Commissioner of Central Tax & Central Excise I
S Press Road. Kochi. on 10 th September, 2023. In the show cause
notice it is mentioned that HOCL has availed and utilized Input Tax
credit of Rs.61,977,794/-, wrongly for the period July, 2017 to July,
2018, and requested to give written reply within 30 days from the receipt
of above show cause notice .At the time of implementation of GST
and filing of GSTR-3B for the period July, 2017 to July 2018, GST
amount of Credit notes issued to Customers was added to Input tax
credit instead of deducting the same from sales amount. In effect there
will not be any change in the net GST amount payable. As requested
by Joint Commissioner (GST) , We have represented our case to
Joint Commissioner (GST) through M/s. Krishna Iyer & Co our GST
consultant and submitted CA certificates collected from Customers for
Rs.600.01 Lakhs- before 12-12-2023.The final order was passed by
JC the demand of Rs.619.77 Lakhs was reduced to Rs.19.76 Lakhs,
and issued DRC07 for Rs. 41.97 Lakhs- (GST Rs.19.76Lakhs Interest
Rs. 20.23 Lakhs Penalty Rs. 1.97Lakhs ). Further we have collected
CA Certificates for Rs.11.58lakhs - which is kept with us and will be
produced to GST authorities after collecting the certificates for the
balance amount. We have filed Appeal against order No. .16/2023-24
GST (JC) Dated-12-12-2023 Of The Joint Commissioner, Central Tax &
Central Excise, Kochi Commissionerate on 27-02-2024

xi) The amount of claims in respect of legal cases filed against the
Company for labour matters relating to regular and retired employees
and not acknowledged as debts is not ascertainable.

b) Bank Guarantees issued Rs.5892.45 Lakhs

The Company has submitted bank guarantees to Kerala State
Electricity Board amounting to Rs.250.35 lakhs, BPCL Rs.5,350 Lakhs
and Rs.292.10 Lakhs to others. The Company does not expect any
outflow in respect of the above.

Note: In the ordinary course of its business, the Company enters into
transactions with other Government controlled entities (not included in the
list above).

Sales and purchases of goods and ancillary materials; Rendering and
receiving of services; Receipt of dividends; Loans and advances; Depositing
and borrowing money; Guarantees and Uses of public utilities.

These transactions are conducted in the ordinary course of business on
terms comparable to those with other entities that are not Government
controlled entities.

37. Financial Instruments :

Accounting policy:

A financial instrument is any contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.

Financial assets:

Initial recognition and measurement

All financial assets are recognised initially at fair value plus(or minus)
transaction costs. In the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset.

Debt instruments at amortised cost

A ‘debt instrument' is measured at its amortised cost if both the following
conditions are met:

a) The asset is held within a business model whose objective is to hold
assets for collecting contractual cash flows, and

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

After initial measurement, such financial assets are subsequently measured
at amortised cost using the effective interest rate (EIR) method. Amortised
cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in other income in the statement of profit or loss.
The losses arising from impairment are recognised in the statement of profit
or loss.

Debt instrument at Fair Value Through Other Comprehensive Income
(FVTOCI)

A ‘debt instrument' is classified at FVTOCI if both of the following criteria
are met:

a) The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets, and

b) The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured
initially as well as at each reporting date at fair value. Fair value movements
are recognized in the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the Profit and Loss. On de-recognition of the
asset, cumulative gain or loss previously recognised in OCI is reclassified
from the equity to Profit and Loss. Interest earned whilst holding FVTOCI
debt instrument is reported as interest income using the EIR method.

Debt instrument at Fair Value Through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument,
which does not meet the criteria for categorization as at amortized cost or
as FVTOCI, is classified as FVTPL. In addition, the Company may elect
to designate a debt instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election is allowed only if
doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ‘accounting mismatch'). The Company has designated certain
debt instrument as at FVTPL. Debt instruments included within the FVTPL
category are measured at fair value with all changes recognized in the
statement of profit and loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For
all other equity instruments, the company may make an irrevocable election
to present in other comprehensive income subsequent changes in the fair
value. The Company makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and is irrevocable. If
the Company decides to classify an equity instrument as at FVTOCI, then all
fair value changes on the instrument, excluding dividends, are recognized in
the OCI. There is no recycling of the amounts from OCI to statement of profit
and loss, even on sale of investment. However, the Company may transfer
the cumulative gain or loss within equity. Equity instruments included within
the FVTPL category are measured at fair value with all changes recognized
in the statement of profit and loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a
company of similar financial assets) is primarily derecognised (i.e. removed
from the Company's balance sheet) when:

the rights to receive cash flows from the asset have expired, or the Company
has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a
third party under a ‘pass-through' arrangement; and either

(a) the Company has transferred substantially all the risks and rewards of
the asset, or

(b) the Company has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from
an asset or has entered into a pass-through arrangement, it evaluates
if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the extent
of the Company's continuing involvement. In that case, the Company
also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained. Continuing involvement that
takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.

In accordance with Ind AS 109, the Company applies expected credit loss
(ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured
at amortized cost e.g., loans, debt securities deposits, trade
receivables and bank balance

b) Financial assets that are debt instruments and are measured as at
FVTOCI

c) Lease receivables under Ind AS 17

d) Trade receivables or any contractual right to receive cash or another

financial asset that result from transactions tha are within the scope

of Ind AS 18 (referred to as ‘contractual revenue receivables' in these
financial statements)

e) Financial guarantee contracts which are not measured as at FVTPL

The Company follows ‘simplified approach' for recognition of impairment loss
allowance on:

Trade receivables and Other receivables

The application of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right from its initial recognition. For
recognition of impairment loss on other financial assets and risk exposure,
the Company determines that whether there has been a significant increase
in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss.

However, if credit risk has increased significantly, lifetime ECL is used. If,
in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognising impairment loss allowance based on
12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible
default events over the expected life of a financial instrument. The 12-month
ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity is required to consider:

All contractual terms of the financial Instrument (including prepayment,
extension, call and similar options) over the expected life of the financial
instrument. However, in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the entity is required to use the
remaining contractual term of the financial instrument.

Cash flows from the sale of collateral held or other credit enhancements
that are integral to the contractual terms. Financial assets measured as at
amortised cost, contractual revenue receivables and lease receivables: ECL
is presented as an allowance, i.e., as an integral part of the measurement of
those assets in the balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write-off criteria, the Company does not
reduce impairment allowance from the gross carrying amount.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities
at fair value through profit or loss, loans and borrowings, or payables, as
appropriate. All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly attributable

transaction costs. The Company's financial liabilities include trade and
other payables, loans and borrowings including bank overdrafts, financial
guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as
described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as
at fair value through profit or loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered
into by the Company that are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109. Gains or losses on liabilities
held for trading are recognised in the statement of profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition,
interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss. This category generally applies to borrowings.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts
that require a payment to be made to reimburse the holder for a loss it incurs
because the specified debtor fails to make a payment when due in accordance
with the terms of a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the guarantee. Subsequently,
the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount
recognised less cumulative amortisation.

De-recognition

A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the de-recognition of the original liability and
the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

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

A Fair value measurement

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and minimizing the
use of unobservable inputs. All assets and liabilities for which fair value is
measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole

i. Market risk

Market risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices.
Such changes in the values of financial instruments may result from
changes in the foreign currency exchange rates, interest rates, credit,
liquidity and other market changes. The Company's exposure to market
risk is primarily on account of foreign currency exchange rate risk.

a) Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have
potential impact on the statement of profit and loss and other
comprehensive income and equity, where any transaction
references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of
the Company but as company balance in foreign currency hence
company is not exposed to foreign currency exchange rate risk

b) Interest rate risk

The Company's investments are primarily in subsidiary through
quoted equity share and unquoted equity share of other entity
therefore none of the investment activity is generating interest
out of the investment. Hence, the Company is not significantly
exposed to interest rate risk.

ii. Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to
repay or service debt according to the contractual terms or obligations.
Credit risk encompasses of both, the direct risk of default and the risk
of deterioration of creditworthiness as well as concentration of risks.
Credit risk is controlled by analysing credit limits and creditworthiness
of customers on a continuous basis to whom the credit has been
granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit
risk principally consist of trade receivables, unbilled receivables,
investments, cash and cash equivalents, bank deposits and other
financial assets, company generating revenue for individually in excess
of 10% or more of the Company's revenue for the year ended March
31,2025 from the below mention customer.

Geographic concentration of credit risk

Geographical concentration of trade receivables, unbilled receivables
(previous year: unbilled revenue) and contract assets is allocated
based on the location of the customers.

iii. Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its
financial obligations. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use
as per requirements.

The Company manages liquidity risk by maintaining adequate reserve,
banking facilities and reserve borrowing facilities, continuously
monitoring forecast and actual cash flow and by matching the maturity
profiles of financial assets and liabilities.

42 Going concern

The Company is in the process of implementing the restructuring plan,
as per GOI order dated 22nd May 2017. Pursuant to this, the Rasayani
Unit has been closed and the scrapped plant and equipment have
been disposed off. This unit includes assets with a carrying amount
of Rs. 94,550.32 lakhs, including 517.819 acres of land. Sale of
unencumbered land at Rasayani and at Panvel is in process. Upon the
successful completion of the sale, the company's cash flow is expected
to improve significantly. The Phenol plant at Kochi continues to operate.
The company achieved sales turnover of Rs.53,586.76 lakhs and
Rs.70,389.00 lakhs, Net profit/(loss) excluding other comprehensive
income of Rs. 39,154.13 and Rs. (5,531.7) lakhs and net worth
excluding other comprehensive income of Rs. 13,306.91 lakhs and
Rs. (96,433.68) lakhs in the FY 2024-25 and 2023-24 respectively.
Further, the long outstanding loan of Rs.43,586.46 lakhs from GOI
and Redeemable Preference Shares of Rs. 27,000 lakhs along with
the outstanding interest of Rs.47,359.79 lakhs and penal interest of
Rs.9,967.96 (for the loan) and Rs. 7,222.5 lakhs (for preference shares)
as of 30 Sep 2024 have been waived off by GOI vide GOI Order No.
1600/9/2024-IFD dated 21.03.2025. The company has a balance under
current assets of cash and cash equivalents and other bank balances
of Rs 22,560.85 lakhs (Previous year Rs.22,642.08 lakhs) as at the
year end.

43 No scheme of arrangement has been approved by the competent
authority in terms of Sections 230 to 237 of the Companies Act, 2013
during the year 2024-25.

44 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,
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.

45 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, 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 Relationship with Struck off Companies

During the financial year ended 31st March 2025 the company does not
have any relationship with struck of companies.

47 The company has no charge or satisfaction to be registered with the
Registrar of Companies except for :

During the period from 2002 to 2004, the Company had availed a
Plan Loan amounting to Rs. 1,319 lakhs from the Department of
Chemicals and Petrochemicals (DCPC), Government of India. In 2019,
the principal portion of the loan was repaid by the Company, while the
interest remained outstanding. Hence the charge was not withdrawn.
Subsequently, the GOI waived off the outstanding dues of the
company, the remaining interest liability, including this Plan Loan vide
order dated 21.03.2025. Accordingly, the Company is in the process of
obtaining a No Objection Certificate (NOC) from DCPC. Upon receipt of
the NOC, the Company will proceed to file for satisfaction of charge with
the Registrar of Companies (ROC), in accordance with the applicable
statutory requirements.

48 No Loans or Advances in the nature of loan is granted to promoters,
directors, KMPs and the related parties (as defined under Companies
Act, 2013,) either severally or jointly with any other person during the
year, which are repayable on demand or without specifying any terms
of repayment

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

50. There is no intangible assets under development

51. 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 the rules made there under.

52. Company is not declared as a wilful defaulter by any bank or financial
Institution or other lender.

53. The Company has no transaction 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)
and no previously unrecorded income and related assets have been
recorded in the books of account during the year.

54. The Company is not required mandatorily to carry out any CSR activities
on account of losses incurred during the previous years.

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

56. The Standalone Financial Statements were authorized for issue
in accordance with a resolution passed by the Board of Directors
on 16.05.2025. The audit committee is not functional, therefore, the
financial statements are not reviewed by the audit committee.

57. The company has not revalued any of its intangible assets during the
year

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

As per our report of even date attached For and on behalf of the Board of Directors

For Balan & Co. Sajeev B.

Chartered Accountants Chairman and Managing Director

FRN 340S DIN 09344438

M. Venugopal Yogendra Prasad Shukla Subramonian H.

Partner Director (Finance) Company Secretary

Membership No.: 244882 DIN 09674122

UDIN : 25244882BMKTZ09628

Place: Ernakulam Place: Ernakulam, Kerala

Date: 16.05.2025 Date: 16.05.2025