1 Provisions, Contingent Liabilities and Contingent
Assets:

Provisions are recognised when there is a present
legal or constructive obligation as a result of a past
event and it is probable (i.e. more likely than not)
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.

Provision for separate sales related obligations is
made for probable future claims on sales effected
and are estimated based on previous claim
experience on a scientific basis. This provision is
revised annually.

Contingent liabilities are disclosed on the basis of
judgement of management / independent experts.
These are reviewed at each balance sheet date
and are adjusted to reflect the current management
estimate.

5 Revenue Recognition and Other Income

The Company derives revenues primarily from sale
of goods comprising of speciality chemicals.
Revenue from contract with customers is
recognised upon transfer of control of promised
products or services to customers in an amount
that reflects the consideration The Company
expects to receive in exchange for those products
or services.

Revenue from the sale of goods is recognised at
the point in time when control is transferred to the
customer.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price allocated to that performance obligation.
The transaction price of goods sold and services
rendered is net of variable consideration on
account of turnover/product/prompt payment
discounts and schemes offered by the Company
as part of the contract with the customers.When
the level of discount varies with increase in
levels of revenue transactions, the Company
recognises the liability based on its estimate of the
customer’s future purchases using expected value
method. The Company recognises changes in the
estimated amounts of obligations for discounts in
the period in which the change occurs. Revenue
also excludes taxes collected from customers.
Revenue in excess of invoicing are classified
as contract assets while invoicing in excess of
revenues are classified as contract liabilities.

Use of significant judgements in revenue
recognition:

• Judgement is required to determine
the transaction price for the contract.
The transaction price could be either a
fixed amount of consideration or variable
consideration with elements such as turnover
discounts. Any consideration payable to the
customer is adjusted to the transaction price,
unless it is a payment for a distinct product
or service from the customer. The estimated
amount of variable consideration is adjusted
in the transaction price only to the extent
that it is highly probable that a significant
reversal in the amount of cumulative revenue
recognised will not occur and is reassessed
at the end of each reporting period.

The Company exercises judgement in determining
whether the performance obligation is satisfied at a
point in time or over a period of time. The Company
considers indicators such as how customer
consumes benefits as services are rendered or who
controls the asset as it is being created or existence
of enforceable right to payment for performance to
date and alternate use of such product or service,
transfer of significant risks and rewards to the
customer, acceptance of delivery by the customer,
etc.

Export incentives are recognised as income of
the year on accrual basis. In case of utilisation for
Import purpose the same is recognised as raw
material cost in the year of import.

6 Employee Benefits

Short-term Employees Benefits

All employee benefits payable wholly within twelve
months of rendering services are classified as short
term employee benefits. Benefits such as salaries,
wages, short-term compensated absences,
performance incentives etc., are recognised during
the period in which the employee renders related
services and are measured at undiscounted
amount expected to be paid when the liabilities are
settled.

Post-employment benefits

The Company provides the following post¬
employment benefits:

i) Defined benefit plans such as gratuity

ii) Defined Contribution plans such as provident
fund

Defined benefits plans

The cost of providing defined benefit plans such
as gratuity is determined on the basis of present
value of defined benefits obligation which is
computed using the projected unit credit method
with independent actuarial valuation made at the
end of each annual reporting period.
Re-measurements comprising of actuarial gains
and losses arising from experience adjustments
and change in actuarial assumptions, the effect of
change in assets ceiling (if applicable) and the return
on plan asset (excluding net interest as defined
above) are recognised in other comprehensive
income (OCI) except those included in cost of
assets as permitted in the period in which they
occur. Re-measurements are not reclassified to
the Statement of Profit and Loss in subsequent
periods.

Defined Contribution Plans

Payments to defined contribution retirement
benefit plans, viz., Provident Fund for eligible
employees are recognised as an expense when
employees have rendered the service entitling
them to the contribution.

7 Income Taxes

Income tax expense represents the sum of
tax currently payable and deferred tax. Tax is
recognised in the profit or loss section of Statement
of Profit and Loss, except to the extent that it relates
to items recognised directly in equity or in other
comprehensive income.

Current tax

Current tax is the expected tax payable/ receivable
on the taxable income/ loss for the year using
applicable tax rates for the relevant period, and
any adjustment to taxes in respect of previous
years. Penalties, if any, related to income tax are
included in other expenses. Interest Income, if any,
related to Income tax is included in Other Income.

Deferred Tax

Deferred tax is recogn ised on temporary
differences between the carrying amounts of
assets and liabilities in the balance sheet and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognised
for all taxable temporary differences. Deferred tax
assets are recognised for all deductible temporary
differences, unabsorbed losses and unabsorbed
depreciation to the extent that it is probable that
future taxable profits will be available against
which those deductible temporary differences,
unabsorbed losses and unabsorbed depreciation
can be utilised.

! Financial Instruments
a) Financial Assets

Investments in subsidiaries

I nvestments in equity shares of subsidiaries
are carried at cost.

Financial assets other than investment in
subsidiaries

Financial assets of the Company comprise
trade receivable, cash and cash equivalents,
Bank balances, Investments in equity shares
of companies other than in subsidiaries,
Investment in units of Mutual Funds, loans/
Debt instrument/ advances to employee /
related parties / others, security deposit,
claims recoverable etc.

Initial recognition and measurement

All financial assets are recognised initially at
fair value plus, 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.
However, Trade receivables that do not
contain a significant financing component are
measured at Transaction Price. Transaction
costs of financial assets carried at fair value
through profit or loss are expensed in profit
or loss.

For purposes of subsequent measurement
financial assets are classified in three
categories:

• Financial assets measured at amortised
cost

• Financial assets at fair value through OCI

• Financial assets at fair value through
profit or loss

Financial assets measured at amortised
cost

Bank deposits, Security deposits, investment
in Debt Instruments and Export benefits
receivable are measured at amortised cost.
Financial assets are measured at amortised
cost if the financials asset is held within a
business model whose objective is to hold
financial assets in order to collect contractual
cash flows and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments of
principal and interest on the principal amount
outstanding. These financials assets are
amortised using the effective interest rate
(EIR) method, less impairment. 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 finance
income in the statement of profit and loss.

Financial assets at fair value through profit
or loss (‘FVTPL’)

Any financial asset that does not meet the
criteria for classification as at amortised cost
or as financial assets at fair value through
other comprehensive income is classified as
financial assets at fair value through profit or
loss.

Derecognition

The Company derecognises a financial
asset only when the contractual rights to the
cash flows from the asset expire, or when it
transfers the financial asset and substantially
all the risks and rewards of ownership of the
asset to another entity.

The Company assesses impairment based
on expected credit loss (‘ECL’) model on the
following:

• Financial assets that are measured at
amortised cost; and

ECL is measured through a loss allowance on
a following basis:-

• The 12 month expected credit losses
(expected credit losses that result from
those default events on the financial
instruments that are possible within 12
months after the reporting date)

• Full life time expected credit losses
(expected credit losses that result from
all possible default events over the life
of financial instruments)

The Company follows ‘simplified approach’
for recognition of impairment on trade
receivables or contract assets resulting
from normal business transactions. The
application of simplified approach does not
require the Company to track changes in
credit risk. However, it recognises impairment
loss allowance based on lifetime ECLs at
each reporting date, from the date of initial
recognition.

For recognition of impairment loss on other
financial assets, the Company determines
whether there has been a significant increase
in the credit risk since initial recognition. If
credit risk has increased significantly, lifetime
ECL is provided. For assessing increase in
credit risk and impairment loss, the Company
assesses the credit risk characteristics on
instrument-by-instrument basis.

Impairment loss allowance (or reversal)
recognised during the period is recognised
as expense/income in Profit and Loss.

b) Financial Liabilities

The Company’s financial liabilities include
bank overdraft, trade payable, accrued
expenses and other payables etc.

Derivative instruments are initially recognised
at fair value on the date a derivative contract
is entered into and are subsequently re¬
measured to their fair value at the end of each
reporting period. The resulting gain or loss is
recognised in profit or loss immediately unless
the derivative is designated and effective as
a hedging instrument and is recognised in
Other Comprehensive Income (OCI).

9 Business Combination

Business combinations through common control
transactions are accounted on a pooling of
interests method. No adjustments are made to
reflect the fair values, or recognise any new assets
or liabilities, except to harmonise accounting
policies. The identity of the reserves are preserved
and the reserves of the transferor becomes the
reserves of the transferee. The difference between
consideration paid and the net assets acquired, if
any, is recorded under capital reserve / retained
earnings, as applicable.

E Recent accounting pronouncements

The 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. For the year ended 31
March, 2025 MCA has not notified any new standards
or amendments to the existing standards applicable to
the Company.

Notes:

i. Title deeds of Freehold Land are held in the name of the Company. Title deeds in respect of Buildings on immovable
properties which are constructed on company's Freehold/Leasehold Land is based on documents consituting evidence
of legal ownership of the Buildings except for the building and leasehold land acquired through amalgamation wherein
change in favour of the Company is pending.

ii. During the year, the Company has capitalised the following expenses of revenue nature to the cost of Property, Plant and
Equipment/Capital Work-In-Progress;

NOTE 25

A. Capital Management

For the purpose of Company's Capital Management, capital includes Issued Equity Capital, Securities Premium, and all
other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company's Capital
Management is to maximise the Share Holder Value.

As at 31 March, 2025, the Company has only one class of equity shares and has no long term debt. Consequent to such
capital structure, there are no externally imposed capital requirements. The Company allocates its capital for distribution as
dividend or re-investment into business based on its long term financial plans.

B. Financial Risk Management

The Company’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other
receivables, investments in mutual funds/equity shares & debt instruments and cash and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

i) Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of
a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments
affected by market risks, primarily include investments, foreign currency receivables, payables and borrowings.

Interest Rate Risks

The Company borrows funds in Indian Rupees to meet short term funding requirements. Interest on Short term
borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed below have
been determined based on the exposure to variable interest rates on the outstanding amounts due to bankers over a
year.

If the interest rates had been 1% higher / lower and all other variables held constant, the Company's profit for the year
ended 31 March, 2025 would have been decreased/increased by ' 0.62 crores (P.Y. 2023-24 - ' 0.45 crores.)

Foreign Currency Risks

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company is exposed to foreign exchange risk arising from foreign currency transactions.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and liabilities
denominated in a currency that is not its functional currency. The exposure to foreign currency risk of the Company at
the end of the reporting period expressed is as follows:

Price Risks

More than two-third of the Company's revenues are generated from exports and the raw materials are procured
through import and local purchases where local purchases track import parity price. The Company is affected by
the price stability of certain commodities. Due to the significantly increased volatility of certain commodities, the
Company enters into contract with the customers that has provision to pass on the change in the raw material prices..
The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in
commodity prices and freight costs.

The Company is exposed to price risk due to its investments in debt instruments and mutual funds. The price risk
arises due to uncertainties about the future market values of these investments. The Company manages the securities
price risk through investments in debt funds and diversification by placing limits on individual and total investments.
Reports on Investment Portfolio are reviewed on regular basis and all approvals of investment decisions are done in
concurrence with the senior management.

As at 31 March, 2025 the investments in mutual funds/Debt Instruments/ETF/Equity Shares amounts to ' 26.41 crores
(PY 2023-24 - ' 39.38 crores). A 1% point increase or decrease in the NAV with all other variables held constant would
have lead to aprroximately an additional ' 0.26 crores (P.Y. 2023-24 - ' 0.39 crores) on either side in the statement of
profit and loss.

i) Credit Risk

Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to
the Company. It arises from credit exposure to customers, financial instruments viz., Investments in Debt Funds and
Balances with Banks.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in
the normal course of business. The Company also has an external credit risk insurance cover with ECGC Policy for
specific customer(s).. The outstanding trade receivables due for a period exceeding 180 days as at the year ended 31
March, 2025 is 13.60% (PY 2023-24 - 0.21%) of the total trade receivables. The Company uses Expected Credit Loss
(ECL) Model to assess the impairment loss or gain. Historical experience of collecting receivables of the Company is
supported by low level of past default and hence the credit risk is perceived to be low.

There are no transactions with single customer which amounts to 10% or more of the Company's revenue.

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in mutual
funds , debt funds and loans to other companies. It has a diversified portfolio of investments with various number
of counterparties which have secure credit ratings, hence the risk is reduced. Individual risk limits are set for each
counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures
are actively monitored by its treasury department.

iii) Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, investment in mutual funds, fund and
non-fund based working capital lines from banks and the cash flow that is generated from operations. It believes that
current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient
to meet requirements. Accordingly, liquidity risk is perceived to be low.

The details of the contractual maturities of significant financial liabilities as at 31 March, 2025 are as under:

The Fair Value of financial assets and liabilities included is the amount at which the instrument could be exchanged in a current
transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

Level 1: This includes financial instruments measured using quoted prices/Net Asset Value. The fair value of all debt instruments
which are traded on the Stock Exchanges is valued using the closing price as at the reporting period.

Level 2: The Company enters into Derivative financial instruments with counterparties principally with Banks with investment
grade credit ratings. The foreign exchange forward contracts are valued using valuation techniques which employs the use of
market observable inputs namely, Marked-to-Market.

k) Disclosures pursuant to the Regulation 34(3) read with para A of Schedule V to the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and Section 186 (4) of the Companies Act, 2013.

i) Details of Investments made are given in Note 3.

ii) Amount of Loans and advances in the nature of loans outstanding from /to subsidiaries ' Nil (Previous year ' Nil).

iii) Loans to employees have been considered to be outside the purview of disclosure requirements.

iv) Investment by Loanee in the shares of the Parent company- Nil ( Previous year Nil).

l) Events Occuring after the Balance Sheet date

The proposed final dividend for 2024-25 amounting to ' 77.75 crores (PY 2023-24 : 72.57 crores) will be recognised as
distribution to owners during the financial year 2025-26 on its approval by Shareholders. The proposed final dividend per
share amounts to ' 7.50/- (PY 2023-24 : ' 7/-).

m) Other Statutory Information

(i) The Company does not have any Benami property nor any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or

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

(vii) The Company has not recorded any transaction 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.

(viii) The Company has not been declared a wilful defaulter by any bank or financial institution or any of the lenders.

(ix) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

n) The figures for the corresponding previous year have been regrouped and/or rearranged wherever considered
necessary.

For M M Nissim & Co LLP For and on behalf of Board of Directors

Chartered Accountants

Firm Reg.No. 1107122W/W100672 Vinati Saraf Mutreja Vinod Saraf

Managing Director & CEO Chairman

DIN: 00079184 DIN: 00076708

Dimple Maru

Partner

Mem.No. 141312 Nand Kishor Goyal Milind Wagh

Chief Financial Officer Company Secretary

Mumbai, Dated 15 May, 2025