Notes to Accounts of AksharChem (India) Ltd.

Mar 31, 2025

17.2 The Company has only one class of shares i.e. equity shares.All equity shares carry equal rights with respect to voting and dividend.

17.3 In the event of liquidation of the Company the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

17.4 Subsequent to Balance Sheet date, the Board of Directors has recommended a dividend of Rs. 0.75 per share to be paid on fully paid equity shares in respect of financial year ended on March 31,2025. The equity dividend is subject to approval by shareholders at the ensuing annual general meeting and has not been included as a liability in these financial statements. The total estimated equity dividend to be paid is Rs. 60.25 Lakhs.

17.5 Shares held by holding/ultimate holding company/or their subsidiaries/associates: Not Applicable

Securities Premium:

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

Capital Redemption Reserve:

Capital Redemption Reserve represents reserve created during buy back of Equity Shares and it is a non-distributable reserve.

General Reserve:

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Underthe erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

Retained Earnings:

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Equity Instruments through Other Comprehensive Income:

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off. Effective portion of Cash Flow Hedges:

This Reserve represents the cumulative effective portion of changes in FairValue of derivatives that are designated as Cash Flow Hedges. It will be reclassified to profit or loss or included in the carrying amount of the non-financial asset in accordance with the Company''s accounting policy.

19.1 Details of security and rate of interest for term loan from HDFC Bank Limited Primary Security:

a) First exclusive charge over factory land and building located at plot No. D-2/CH/152, GIDCDahej, Gujarat.

b) First exclusive charge over movable fixed assets including Plant and Machinery located at Plot No. D-2/CH/152, GIDC Dahej, Gujarat.

c) First exclusive charge over ground mounted solar plant Repayment Terms:

a) 20 quarterly installments of Rs. 150.00 Lakhs each starting from January 2022

b) 14 quarterly installment of Rs. 71.43 Lakhs each starting from April 2025

c) 75 monthly installment of Rs. 22.67 Lakhs each starting from January 2026 Rate of Interest:

Interest rate for the year ranges between 8.37% to 8.9%

22.1 Details of security for working capital facilities from State Bank of India Repayment Schedule:

Repaybleon Demand Primary Security:

Exclusive charge by way of hypothecation over entire present and future current assets of the company.

Collateral Security:

"Exclusive charge, by way of Equitable Mortgage and Hypothecation on entire fixed assets (Land, Building, Plant & Machinery) both present and future of the company situated at Survey Nos. 166,167,168 and 169 of Mouje Indrad Village, Kadi - Kalol Road, Chhatral,Taluka Kadi, Dist. Mehsana, Gujarat

- Lien overTDR worth Rs. 25 Lakhs in lieu of waiverof ECGC policy.

Rate of Interest:

Interest rate for the year ranges between 7.41% to 10.20% (PY.2023-24 between 7.80% to 9%)

43.Financial Risk Management - Objectives and Policies

The Company’s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company’s activities are exposed to Credit risk, Liquidity Risk and Market risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

The Company’s audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

43.1 Credit Risk Management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customers and loans.The carrying amounts of financial assets represent the maximum credit riskexposure.

Trade Receivables and Loans

The company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the company’s customers have been transacting with the company for over five years, and none of these customers’balances are credit-impaired atthe reporting date.

Confirmation of balances from Debtors & Loans and Advances received, are being reconciled.

Cash and Cash Equivalents

The company holds cash and cash equivalents of Rs. 14.44 Lakhs at March 31,2025 (P.Y. Rs. 15.99 Lakhs).The cash and cash equivalents are held with bank and cash on hand.

43.2 Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation. The company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

43.3 Market Risk

Market risk is the riskthat changes in market prices-such as foreign exchange rates and interest rates-will affect the company’s income orthe value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

43.4 Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

43.5 Foreign Currency Risk

The company operates internationally and is exposed to currency risk on account of its receivables in foreign currency. The functional currency of the company is Indian Rupee. The company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one yearfromthe reporting date.

The company does not use derivative financial instruments for trading or speculative purposes.

43.6 Price Risk

Investment Price Risk

The company''s exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss.To manage its price risk arising from investments, the company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the company’s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Commodity Price Risk

Principal Raw Material for company’s products is Acetanilide, CPC Blue & Sodium Silicate. Company sources its raw material requirements from domestic markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

44. Capital Management

For the purposes of the Company’s capital management, capital includes issued capital and all other equity reserves.The primary objective of the Company’s Capital Management is to maximise shareholder value.The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31,2025, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2025.

45. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

46. In terms of Ind As 36- Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

47. Financial Instruments - Fair Values & Risk Management 47.1 Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, otherthan in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2 Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual creditworthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4 The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

5 The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique: Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs otherthan the quoted prices included within Level 1 that are observable forthe asset or liability, either directly or indirectly.

Note- ’Reason for material discrepancies’

- The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends.

- The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.

- There are other differences on account of regrouping and reclassification of trade receivable balances .The Company has filed provisional return with banks for the quarter ended March 31 2025, as per the due date and subsequently filed final return with respective banks where amounts as per return matches with underlying books of accounts as at March 31,2025.

50 The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the BenamiTransactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

51 The Company does not have any transactions with companies struck off.

52 As on March 31,2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions.The borrowed funds have been utilised for the specific purpose for which the funds were raised.

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

54 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

55 The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

56 The Company have 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:

- 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 orthe like to or on behalf of the Ultimate Beneficiaries

57 The Company have 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:

- 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 orthe like to or on behalf of the Ultimate Beneficiaries

58 The company does not have any investment in any subsidiary company.Therefore, there is no requirement to comply with the number of layers prescribed under clause (87) of section 2 of Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

59 There was no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year ended March 31,2025 and March 31,2024.

60 The Company has borrowings from banks and financial institutions on the basis of security of assets and the quarterly returns filed by the Company with the banks and financial institutions are in accordance with the books of accounts of the Company for the respective quarters.

61 The Company has taken borrowings from banks and financial institutions and utilised them for the specific purpose for which they were taken as at the Balance sheet date.

62 On 3rd May, 2024 the Company has informed to BSE and NSE that afire broke out on 2nd May, 2024 at around 04:30 p.m. (IST) in the Dry zone of VS Plant of the Company located at Village: lndrad, Chhatral-Kadi Road, Mahesana-382715. Due to a fire incident, production operation of the said Dry Zone plant was disrupted. However, there were no human injuries or casualties reported. The Company has lodged claim of this incident with the insurance company and the process is currently ongoing. The Company has adequate insurance coverage for the aforesaid loss and based on its assessment of loss and terms and conditions of the policy, the insurance claim is fully admissible. Further the claim is not disputed by the insurance company.

During the Quarter-3 of FY 2024-25, the Company was able to e-auction scrap of the Property, Plant & Equipment damaged due to fire and realized Rs. 32.29 Lakhs. On the basis of the same, Company has estimated and recognised loss of Rs. 402.18 Lakhs on account of damage to Property, Plant & Equipment and Inventory and has recognised insurance claim receivable to the extent of aforesaid losses, net of amount realized from sale of scrap. Further, the Company is in the process of determining final claim for reinstatement of assets. The aforesaid losses of Rs. 402.18 Lakhs and corresponding credit of Rs. 402.18 Lakhs arising from insurance claim receivables has been presented on a net basis (Nil) under Exceptional Items.

63 Previous year''s figures have been regrouped/re-arranged/recasted, wherever necessary, so as to make them comparable with current year''s figures.

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Mar 31, 2024

2.12Provisions, Contingent Liability and Contingent Assets (IND AS 37)

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, Excise, GST etc.) pending in appeal / court for which no reliable estimate can be made and or involves uncertainty of the outcome of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts. However, present obligation as a result of past event with possibility of outflow of resources, when reliable estimation can be made of the amount of obligation, is recognized in accounts in terms of discounted value, if the time value of money is material using a current pretax rate that reflects the risk specific to the liability. No contingent asset is recognized but disclosed by way of notes to accounts.

2.13 Trade and Other Payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

2.14 Revenue Recognition (IND AS 18)

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government such as Goods and Services Tax, etc.

Sale of Goods

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customers and there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Revenue from sales excludes GST. It is measured at fair value of consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Rendering of Services

Revenue from rendering of services is recognized as per the terms of the contract with customers when related services are performed and when the outcome of the transactions involving rendering of services can be estimated reliably.

Dividend Income

Dividend Income is accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend.

Interest Income

Interest Income on financial assets measured at amortised cost is recognised on a time-proportion basis using the effective interest method.

Other Income

Other income is recognised when no significant uncertainty as to its determination or realisation exists.

2.15 Cash Flows and Cash and Cash Equivalents (IND AS 7)

Statement of cash flows is prepared in accordance with the indirect method prescribed in the IND AS 7. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and book overdrafts. However, Book overdrafts are shown within borrowings in current liabilities in the balance sheet for the purpose of presentation.

2.16Earnings per share (IND AS 33)

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company

• By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• The after ''income-tax'' effect of interest and other financing costs associated with dilutive potential equity shares, and

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

2.17 Segment Reporting (IND AS 108)

Based on "Management Approach" as defined in IND AS 108 -Operating Segments, the Management evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators by business segments.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.18 Foreign Currency Transactions (IND AS 21)

In preparing the financial statements of the Company, transactions in foreign currencies, other than the Company''s functional currency are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rate prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency, are not retranslated.

Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which these arise

except for:

• exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings; and

• exchange differences on transactions entered into in order to hedge certain foreign currency risks.

2.19 Events occurring after the balance sheet date (IND AS 10)

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared after the reporting period but before the issue of financial statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements.

2.20 Financial Instruments (IND AS 109)

i. Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) -equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets 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.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI. (designated as FVOCI - equity investment). This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss

De-recognition Financial assets

The company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The company also de-recognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

2.21 Cash Dividend to Equity Holders of the Company:

The Company recognises a liability to make cash distributions to equity holders of the Company 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.

2.22 Research and Development

Expenditure on research is recognized as an expense when it is incurred. Expenditure on development which does not meet the criteria for recognition as an intangible asset is recognized as an expense when it is incurred.

Items of property, plant and equipment and acquired intangible assets utilized for research and development are capitalized and depreciated / amortized in accordance with the policies stated for Property, Plant and Equipment and Intangible Assets.

2.23 Goods and Service Tax / Service Tax input Credit:

Goods and Service tax / Service tax input credit is accounted for in the books in the period in which the underlying service

received is accounted and when there is reasonable certainty in availing / utilising the credits.

2.24 RECENT PRONOUNCEMENT

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies the treatment of any cost or fees incurred by an entity in the process of derecognition of financial liability in case of repurchase of the debt instrument by the issuer. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 106 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

43. Financial Risk Management - Objectives and Policies

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Liquidity Risk and Market risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company''s risk management framework. The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

The Company''s audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

43.1 Credit Risk Management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade Receivables and Loans

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the company''s customers have been transacting with the company for over five years, and none of these customers'' balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances received, are being reconciled.

Cash and Cash Equivalents

The company holds cash and cash equivalents of Rs. 15.99 Lakhs at March 31, 2024 (P.Y. Rs. 14.74 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

43.2 Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation. The company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

43.3 Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

43.4 Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

47. Financial Instruments - Fair Values & Risk Management 47.1 Accounting Classifications & Fair Value Measurements

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

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

5. The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique: Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Note- '' Reason for material discrepancies''

- The differences in inventories and trade receivables are majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends.

- The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.

- There are other differences on account of regrouping and reclassification of trade receivable balances . The Company has filed provisional return with banks for the quarter ended March 31 2024, as per the due date and subsequently filed final return with respective banks where amounts as per return matches with underlying books of accounts as at March 31, 2024.

50. The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Hence any proceeding has not 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 thereunder.

51. The Company does not have any transactions with companies struck off.

52. As on March 31, 2024 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

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

54. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

55. The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

56. The Company have 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:

- 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 to or on behalf of the Ultimate Beneficiaries

57. The Company have 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:

- 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 to or on behalf of the Ultimate Beneficiaries

58. On 3rd May, 2024 Company has informed to both exchanges that a fire broke out on 2nd May, 2024 at around 04:30 p.m. (IST) in the Dry zone of VS Plant of the Company located at Village: Indrad, Chhatral-Kadi Road, Mahesana-382715. Due to fire incident, production operation of the said Dry Zone plant disrupted. However, there were no human injuries or casualties reported. The Company is in the process of ascertaining the cause of the fire and the actual loss caused by it. The Company has adequate insurance coverage and has informed the insurance company about such incident. The initial estimated loss of the material stock at dry zone of VS plant is around Rs. 3.15 crores. The initial estimated loss of Plant & Machinery, Building and other assets is around 5.35 crores. However, on detailed inspection of the Plant & Machinery, Building etc. the extent of damages would be known.

59. The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.

60. Previous year''s figures have been regrouped/re-arranged/recasted, wherever necessary, so as to make them comparable with current year''s figures.

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

Aksharchem (India) Limited

For Talati & Talati LLP Hardik S.Shah Paru M. Jaykrishna

Chartered Accountants Chief Financial Officer Chairperson & Mg. Director

Firm Registration No.110758W/W100377 (ICAI M.No.: 132449) DIN: 00671721

Umesh Talati Mehul Naliyadhara Munjal M. Jaykrishna

(Partner) Company Secretary Jt. Managing Director & CEO

Membership No. 034834 (ICSI M.No.: ACS 39558) DIN: 00671693

Place : Ahmedabad Place :Ahmedabad

Date: May 29, 2024 Date: May 29, 2024

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Mar 31, 2023

2.12 Provisions, Contingent Liability and
Contingent Assets (IND AS 37)

Disputed liabilities and claims against the
company including claims raised by fiscal
authorities (e.g. Sales Tax, Income Tax, Excise,
GST etc.) pending in appeal / court for which no
reliable estimate can be made and or involves
uncertainty of the outcome of the amount of
the obligation or which are remotely poised for
crystallization are not provided for in accounts
but disclosed in notes to accounts. However,
present obligation as a result of past event with
possibility of outflow of resources, when reliable
estimation can be made of the amount of
obligation, is recognized in accounts in terms of
discounted value, if the time value of money is
material using a current pre-tax rate that
reflects the risk specific to the liability. No
contingent asset is recognized but disclosed by
way of notes to accounts.

2.13 Trade and Other Payables

These amounts represent liabilities for goods
and services provided to the company prior to
the end of financial year which are unpaid.
Trade and other payables are presented as
current liabilities unless payment is not due
within 12 months after the reporting period.
They are recognized initially at their fair value
and subsequently measured at amortized cost
using the effective interest method.

2.14 Revenue Recognition (IND AS 18)

Revenue is recognized to the extent that it is
probable that the economic benefits will flow to
the Company and the revenue can be reliably
measured, regardless of when the payment is
being made. Revenue is measured at the fair
value of the consideration received or receivable,
taking into account contractually defined terms of
payment and excluding taxes or duties collected
on behalf of the Government such as Goods and
Services Tax, etc.

Sale of Goods

Revenue from sale of goods is recognised when
control of the products being sold is transferred
to our customers and there are no longer any
unfulfilled obligations. The performance
obligations in our contracts are fulfilled at the
time of dispatch, delivery or upon formal
customer acceptance depending on customer
terms.

Revenue from sales excludes GST. It is
measured at fair value of consideration received
or receivable, net of returns and allowances,
trade discounts and volume rebates.

Rendering of Services

Revenue from rendering of services is

recognized as per the terms of the contract with
customers when related services are performed
and when the outcome of the transactions
involving rendering of services can be estimated
reliably.

Dividend Income

Dividend Income is accounted for when the right
to receive the same is established, which is
generally when shareholders approve the
dividend.

Interest Income

Interest Income on financial assets measured at
amortised cost is recognised on a time-
proportion basis using the effective interest
method.

Other Income

Other income is recognised when no significant
uncertainty as to its determination or realisation
exists.

2.15 Cash Flows and Cash and Cash
Equivalents (IND AS 7)

Statement of cash flows is prepared in accordance
with the indirect method prescribed in the IND AS
7. For the purpose of presentation in the
statement of cash flows, cash and cash
equivalents includes cash on hand, cheques and
drafts on hand, deposits held with Banks, other
short term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which
are subject to an insignificant risk of changes in
value, and book overdrafts. However, Book
overdrafts are shown within borrowings in current
liabilities in the balance sheet for the purpose of
presentation.

2.16 Earnings per share (IND AS 33)

(i) Basic earnings per share

Basic earnings per share is calculated by
dividing:

• The profit attributable to owners of the
Company

• By the weighted average number of
equity shares outstanding during the
financial year, adjusted for bonus
elements in equity shares issued during
the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account:

• The after ‘income-tax'' effect of interest
and other financing costs associated with
dilutive potential equity shares, and

• The weighted average number of
additional equity shares that would
have been outstanding assuming the
conversion of all dilutive potential equity
shares.

2.17 Segment Reporting (IND AS 108)

Based on “Management Approach” as defined in
IND AS 108 - Operating Segments, the

Management evaluates the Company''s
performance and allocates the resources based
on an analysis of various performance indicators
by business segments.

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements
of the Company as a whole.

2.18 Foreign Currency Transactions (IND AS 21)

In preparing the financial statements of the
Company, transactions in foreign currencies,
other than the Company''s functional currency
are recognised at the rates of exchange
prevailing at the dates of the transactions. At
the end of each reporting period, monetary
assets and liabilities denominated in foreign
currencies are translated at the rate prevailing
at that date. Non-monetary items that are
measured in terms of historical cost in a foreign
currency, are not retranslated.

Exchange differences on monetary items are
recognised in the Statement of Profit and Loss in
the period in which these arise except for:

• exchange differences on foreign currency
borrowings relating to assets under
construction for future productive use, which
are included in the cost of those assets
when they are regarded as an adjustment
to interest costs on those foreign currency
borrowings; and

• exchange differences on transactions
entered into in order to hedge certain
foreign currency risks.

2.19 Events occurring after the balance sheet
date (IND AS 10)

Assets and liabilities are adjusted for events
occurring after the reporting period that
provides additional evidence to assist the

estimation of amounts relating to conditions
existing at the end of the reporting period.

Dividends declared by the Company after the
reporting period are not recognized as liability at
the end of the reporting period. Dividends
declared after the reporting period but before the
issue of financial statements are not recognized
as liability since no obligation exists at that time.
Such dividends are disclosed in the notes to the
financial statements.

2.20 Financial Instruments (IND AS 109)

i. Recognition and initial measurement

All financial assets and financial liabilities are
initially recognized when the Company
becomes a party to the contractual
provisions of the instrument.

A financial asset or financial liability is
initially measured at fair value plus, for an
item not at fair value through profit and loss
(FVTPL), transaction costs that are directly
attributable to its acquisition or issue.

ii. Classification and subsequent
measurement

Financial assets

On initial recognition, a financial asset is
classified as measured at

• amortized cost;

• Fair Value through Other Comprehensive
Income (FVOCI) - equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent
to their initial recognition, except if and in the
period the Company changes its business
model for managing financial assets.

A financial asset is measured at amortized cost
if it meets both of the following conditions and
is not designated as at FVTPL:

• the asset is held within a business model
whose objective is to hold assets 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.

On initial recognition of an equity investment
that is not held for trading, the Company may
irrevocably elect to present subsequent
changes in the investment''s fair value in OCI.
(designated as FVOCI - equity investment). This
election is made on an investment-by¬

investment basis.

All financial assets not classified as measured at
amortized cost or FVOCI as described above are
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the
Company may irrevocably designate a financial
asset that otherwise meets the requirements to
be measured at amortized cost or at FVOCI or at
FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

Financial liabilities

Financial liabilities are classified as measured at
amortized cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-
trading, or it is a derivative or it is designated as
such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains
and losses, including any interest expense, are
recognized in profit or loss. Other financial
liabilities are subsequently measured at
amortized cost using the effective interest
method. Interest expense and foreign exchange
gains and losses are recognized in profit or loss.
Any gain or loss on de-recognition is also
recognized in profit or loss

De-recognition
Financial assets

The company de-recognizes a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash flows
in a transaction in which substantially all of the
risks and rewards of ownership of the financial
asset are transferred or in which the company
neither transfers nor retains substantially all of
the risks and rewards of ownership and does
not retain control of the financial asset.

If the company enters into transactions whereby
it transfers assets recognized on its balance
sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognized.

Financial liabilities

The company de-recognizes a financial liability
when its contractual obligations are discharged or
cancelled, or expire. The company also de¬
recognizes a financial liability when its terms are
modified and the cash flows under the modified
terms are substantially different. In this case, a
new financial liability based on the modified terms
is recognized at fair value. The difference
between the carrying amount of the financial
liability extinguished and the new financial liability
with modified terms is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance
sheet when, and only when, the company
currently has a legally enforceable right to set
off the amounts and it intends either to settle
them on a net basis or to realize the asset and
settle the liability simultaneously.

2.21 Cash Dividend to Equity Holders of the
Company:

The Company recognises a liability to make cash
distributions to equity holders of the Company
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.

2.22 Research and Development

Expenditure on research is recognized as an
expense when it is incurred. Expenditure on
development which does not meet the criteria
for recognition as an intangible asset is
recognized as an expense when it is incurred.

Items of property, plant and equipment and
acquired intangible assets utilized for research
and development are capitalized and
depreciated / amortized in accordance with the
policies stated for Property, Plant and
Equipment and Intangible Assets.

2.23 Goods and Service Tax / Service Tax input
Credit:

Goods and Service tax / Service tax input credit is
accounted for in the books in the period in which
the underlying service received is accounted and
when there is reasonable certainty in availing /
utilising the credits.

2.24 RECENT PRONOUNCEMENT

Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
On March 23, 2022, MCA amended the

Companies (Indian Accounting Standards)
Amendment Rules, 2022, applicable from April
1st, 2022, as below:

Ind AS 103 - Reference to Conceptual
Framework

The amendments specify that to qualify for
recognition as part of applying the acquisition
method, the identifiable assets acquired and
liabilities assumed must meet the definitions of
assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian

Accounting Standards (Conceptual Framework)
issued by the Institute of Chartered

Accountants of India at the acquisition date.
These changes do not significantly change the
requirements of Ind AS 103. The Company does
not expect the amendment to have any
significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from
deducting from the cost of property, plant and
equipment amounts received from selling items
produced while the company is preparing the
asset for its intended use. Instead, an entity will
recognise such sales proceeds and related cost
in profit or loss. The Company does not expect
the amendments to have any impact in its
recognition of its property, plant and equipment
in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of
Fulfilling a Contract

The amendments specify that that the ‘cost of
fulfilling'' a contract comprises the ‘costs that
relate directly to the contract''. Costs that relate
directly to a contract can either be incremental
costs of fulfilling that contract (examples would
be direct labour, materials) or an allocation of
other costs that relate directly to fulfilling
contracts. The amendment is essentially a
clarification and the Company does not expect
the amendment to have any significant impact
in its financial statements.

Ind AS 109 - Annual Improvements to Ind
AS (2021)

The amendment clarifies the treatment of any
cost or fees incurred by an entity in the process
of derecognition of financial liability in case of
repurchase of the debt instrument by the
issuer. The Company does not expect the
amendment to have any significant impact in its
financial statements.

Ind AS 106 - Annual Improvements to Ind
AS (2021)

The amendments remove the illustration of the
reimbursement of leasehold improvements by
the lessor in order to resolve any potential
confusion regarding the treatment of lease
incentives that might arise because of how
lease incentives were described in that
illustration. The Company does not expect the
amendment to have any significant impact in its
financial statements.

38. The Company operates in a single segment and in line with Ind AS - 108 - "Operating Segments”, the operation of the Company fall under Chemical
Business which is considered to be the only reportable business segment.

39. Related Party Disclosures

As per the Indian Accounting Standard on "Related Party Disclosures" (Ind AS 24), the related parties of the Company are as follows:

Related Parties and Nature of Relationship
39.1 Name of the Related Parties and Nature of Relationship:

A. Enterprises own or significantly influenced by key managerial personnel or their relatives

Asahi Songwon Colors Limited
Skyways

Skyjet Aviation Private Limited
Akshar Silica Private Limited

Chhatral Environment Management System Private Limited

Chelsea Marketing LLP

Mrugesh Jaykrishna Family Trust-2

Munjal M. Jaykrishna Family Trust

Munjal M. Jaykrishna HUF

B. Key Managerial Personnel:

EXECUTIVE DIRECTORS

Mrs. Paru M. Jaykrishna - Chairperson & Managing Director
Mr. Munjal M. Jaykrishna - Jt. Managing Director & CEO
Mr. Ashok D. Barot - Director

NON-EXECUTIVE DIRECTORS EXECUTIVE OFFICERS

Mr. Gokul M. Jaykrishna - Director Mr. Hardik Shah - Chief Financial Officer (w.e.f. 20.05.2022)

Mr. Pradeep Jha - Independent Director Mr. Meet Joshi - Company Secretary

Ms. Maitri K. Mehta - Independent Director
Mr. Jigar M. Patel - Independent Director

C. Relative of Key Managerial Personnel

Mr. Mrugesh Jaykrishna
Ms. Namrata Jaykrishna
Mr. Sachin Jaykrishna

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Mar 31, 2018

1. Company Information

AksharChem (India) Limited (the ''Company'') is a public limited Company domiciled in India with its registered office at 166/169, Village Indrad, Kadi Kalol Road, Dist. Mehsana, Gujarat -382 715 (India).. The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited and Ahmedabad Stock Exchange Ltd. (ASE).

The Company is principally engaged in the business of manufacturing & export of Dyes and Pigments.

The financial statements as at March 31, 2018 present the financial position of the Company.

The financial statements for the year ended March 31, 2018 were approved by the Board of Directors and authorized for issue on May 30, 2018.

2. Terms/rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of H10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity __shares held by the shareholders.

18.5 Shares Reserved for Issued under options & contracts or commitments for the sale of shares or disinvestment, including terms of amounts : NIL

18.6

a. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

b. Aggregate number and class of shares allotted as fully paid by way of Bonus Shares : NIL

c. Aggregate number and class of shares bought back : NIL

18.7 Securities which are convertible into Equity Shares : NIL

18.8 Aggregate Value of Calls unpaid by directors and officers : NIL

Description of nature and purpose of each reserve :

Securities Premium Reserve: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

Primary Security:

State Bank of India Term Loan: First charge in favour of State Bank of India By way of Equitable Mortgage over entire factory land & building and Hypothecation of Plant & Machinery (created out of bank finance) and situated at survey nos. 167 and 168 Mouje- Indrad Village Kadi-kalol Road, Chhatral, Taluka-kadi, Dist. Mehsana Gujarat State Bank of India Corporate Loan: First charge over P&M/fixed assets created out of praposed corporate loan.

Collateral Security:

State Bank of India Term Loan and Corporate Loan: First charge in favour of State Bank of India, by way of Equitable Mortgage and Hypothecation over land, building, plant & Machinery and other fixed assets situated at Survey Nos. 166 & 169, of Mouje Indrad Village, Kadi-Kalol Road, Chhatral, Taluka Kadi, Dist. Mehsana, Gujarat. Extension of First Charge by way of Equitable Mortgage and Hypothecation over land, building, plant & machinery and other fixed assets situated at Survey Nos. 167 & 168, Mouje Indrad Village, Kadi-Kalol Road, Chhatral, Taluka Kadi, Dist. Mehsana, Gujarat.

- Lien of TDR worth of Rs. 25 Lakhs.

Term of Repayment.

Corporate Loan from State Bank of India amounting to Rs. Nil (Previous Year Rs. 625 Lakhs is repayable by 4 quarterly instalments of Rs.50 Lakhs, 4 quarterly instalments of Rs.75 Lakhs, 2 quarterly instalments of Rs.100 Lakhs and last 1 quarterly instalment of Rs.125 Lakhs.)

There was no default in repayment of loan or interest.

Primary Security:

First charge by way of hypothecation over entire present and future current assets of the company.

Collateral Security:

State Bank of India Working Capital Loan: First charge in favour of State Bank of India, by way of Equitable Mortgage and Hypothecation over land, building, plant & Machinery and other fixed assets situated at Survey Nos. 166 & 169, of Mouje Indrad Village, Kadi-Kalol Road, Chhatral, Talika Kadi, Dist. Mehsana, Gujarat. Extension of First Charge by way of Equitable Mortgage and Hypothecation over land, building, plant & machinery and other fixed assets situated at Survey Nos. 167 & 168, Mouje Indrad Village, Kadi-Kalol Road, Chhatral, Taluka Kadi, Dist. Mehsana, Gujarat.

Lien of TDR worth of Rs. 25 Lakhs.

3. The depreciation on Fixed Assets is to be provided on the basis of useful life of the Assets as per schedule - II of the Companies Act, 2013. During the year, the Company has credited Rs. 214.90 Lakhs to the Retained Earnings Account & Rs. 69.98 Lakhs to the Statement of Profit & Loss of 2016-17, being the excess Depreciation as worked out on the basis of the useful life of the Assets and other requirements of Schedule-II of the Act.

4. Proposed Dividend

The Board of Directors at its meeting held on May 30, 2018 have recommended a payment of final dividend of Rs.3.50 per equity shares of face value of Rs.10/- each for the financial year ended March 31, 2018. The same amounts to Rs.346.10 Lakhs including dividend distribution tax of Rs.59.01 Lakhs .

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

vii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis on defined benefit obligation is given below :

5. Disclosure on Corporate Social Responsibility ( CSR ) activities u/s 135 of the Companies Act, 2013 is as under:

a. Gross amount required to be spent by the Company during the year: Rs.47.71 Lakhs (Previous year Rs.60.93 Lakhs.)

b. Amount spent and utilized during the year on:

6. Financial Risk Management - Objectives and Policies

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Liquidity Risk and Market risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company''s risk management framework. The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

The Company''s audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

6.1 Credit Risk Management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables and loans

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the company''s customers have been transacting with the company for over four years, and none of these customers'' balances are credit-impaired at the reporting date.

Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.

Cash and cash equivalents

The company holds cash and cash equivalents of Rs.393.19 Lakhs at March 31, 2018 (March 31, 2017: Rs.364.09 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

6.2 Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation. The company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.

6.3 Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

6.4 Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.

The company is not exposed to significant interest rate risk as at the specified reporting date.

6.5 Foreign currency risk

The company operates internationally and is exposed to currency risk on account of its receivables in foreign currency. The functional currency of the company is Indian Rupee. The company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

The company does not use derivative financial instruments for trading or speculative purposes.

6.6 Price Risk

Investment Price Risk

The company''s exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the company diversifies its portfolio.

Sensitivity Analysis

The table below summarises the impact of increase/decrease of the index on the company''s equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.

Commodity Price Risk

Principal Raw Material for company''s products is Acetanilide, CPC Blue & Ethylene Oxide. Company sources its raw material requirements from domestic markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

Sensitivity Analysis

The table below summarises the impact of increase/decrease in prices of Acetanilide, CPC Blue & Ethylene Oxide by Rs.1 per kg on profit for the period.

7. Capital management

For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

The company monitors capital using gearing ratio, which is net debt divided by total equity plus debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31, 2018, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

8. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

9. In terms of Ind As 36 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

10. Financial Instruments - Fair Values & Risk Management

10.1 Accounting Classifications & Fair Value Measurements

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

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

5. The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

11. First time adoption of IND AS

The Company has prepared financial statements for the year ended March 31, 2018 are the first financial statements prepared by the company in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the company prepared its financial statements in accordance with accounting standards notified notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of he Companies (Accounts) Rules, 2014 (Previous GAAP).

Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on or after March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2017 and the financial statements as at and for the year ended March 31, 2017. The transition to Ind-AS has resulted in changes in the presentation of the financial statements, disclosures in the notes, accounting policies and principles.

Exemptions availed on first time adoption of Ind-AS 101:

Ind-AS 101 allows certain optional exemptions and mandatory exemptions on first time adoption of Ind-AS from the retrospective application of certain provisions of Ind-AS. The Company has accordingly applied the following exemptions:

A. Ind AS optional exemptions:

Deemed Cost for Property, Plant and Equipment and Intangible Assets

Ind-AS 101 permits, a first time adopter to elect to continue with the carrying values for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind-AS 38 and Investment properties covered by Ind-AS 40. Accordingly, the Company has elected to measure all of its Property, Plant and Equipment, Investment Properties and Intangible Assets at their previous GAAP carrying value.

B. Ind AS mandatory exceptions:

Estimates

An entity''s estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is an objective evidence that those estimates were in error. Ind-AS estimates at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Classification and measurement of financial assets

Ind-AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.

12. Previous year''s figures have been regrouped/re-arranged/recasted, wherever necessary, so as to make them comparable with current year''s figures.

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Mar 31, 2017

b. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs.10 each. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of members and other declarations received from them regarding beneficial interest, the above shareholding represent both legal and beneficial ownership of the shares.

e. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

2. Aggregate number and class of shares allotted as fully paid up by way of Bonus Shares : NIL

3. Aggregate number and class of shares bought back: NIL

Note I:

1. Term Loan is repayable by 4 quarterly equal installments of Rs. 25,09,641.

2. Corporate Loan is repayable by 4 quarterly installments of Rs. 50,00,000, 4 quarterly installments of Rs. 75,00,000, 2 quarterly installments of Rs. 1,00,00,000 and last 1 quarterly installment of Rs. 1,25,00,000.

b. Vehicle loans are secured by hypothecation of concerned vehicles.

Repayment terms of Vehicle Loan

Vehicle loans are repayable in equal monthly installment over the terms of loan ranging from 1 to 3 years.

There was no default in repayment of loan or interest.

(2) There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2017. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

*There is no amount due and outstanding to be transferred to the Investors Education and Protection Fund (IEPF) as on March 31, 2017, Unclaimed Dividend if any shall be transferred to IEPF as and when they become due.

4. SEGMENT REPORTING

The Company is principally engaged in a single segment of Dyes and Pigments.

5. RELATED PARTY DISCLOSURES

Related Party Disclosures as required by Accounting Standard 18 issued by Institute of Chartered Accountants of India are given below:

1. Related Parties and Nature of Relationship

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:

Asahi Songwon Colors Ltd.

Skyjet Aviation Pvt. Ltd.

Skyways

Asahi Energy Pvt. Ltd.

Asahi Powertech Pvt. Ltd.

Flyover Communication Pvt. Ltd.

Akshar Silica Pvt. Ltd.

Vapi Enviro Management System Private Limited

b) Key Managerial Personnel:

Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Mr. Meet Joshi

c) Relative of Key Managerial Personnel Mr. Mrugesh Jaykrishna

d) Subsidiary Company*

Akshar Pigments Pvt. Ltd

6. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

* For the purpose of this clause "Specified Bank Notes": shall have the same meaning provided in the notification of the Government of the India, in the Ministry of Finance. Department of Economic Affairs number S.O. 3407{E}, dated the 8th November, 2016.

7. Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2016

Note I:

1. Term Loan is repayable by 7 quarterly equal installments of Rs. 25,09,641 and 8th for Rs. 25,09,643.

2. Corporate Loan is repayable by first 3 quarterly installments of Rs. 25,00,000, thereafter 5 quarterly installments of Rs. 50,00,000, 4 quarterly installments of Rs. 75,00,000, 2 quarterly installments of Rs. 1,00,00,000 and last 1 quarterly installment of Rs. 1,25,00,000. Repayment schedule starts from June, 2016.

b. Vehicle loans are secured by hypothecation of concerned vehicles.

Repayment terms of Vehicle Loan

Vehicle loans are repayable in equal monthly installment over the terms of loan ranging from 1 to 3 years.

There was no default in repayment of loan or interest.

“Secured loans are secured by hypothecation of raw materials, finished goods, stock in process book debts and other current assets of the Company.

(2) There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2016. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

3. SEGMENT REPORTING

The Company has reorganized the system of operation and internal business reporting and accordingly identified the business segment based on the nature of products, risks, returns and the internal business reporting system as per the Accounting Standard -17. Accordingly, The Company is principally engaged in a single segment of Dyes and Pigments.

4. RELATED PARTY DISCLOSURES

Related Party Disclosures as required by Accounting Standard 18 issued by Institute of Chartered Accountants of India are given below:

5.Related Parties and Nature of Relationship

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:

Asahi Songwon Colors Ltd.

Skyjet Aviation Pvt. Ltd.

Skyways

Asahi Energy Pvt. Ltd.

Asahi Powertech Pvt. Ltd.

Flyover Communication Pvt. Ltd.

Akshar Silica Pvt. Ltd.

b) Key Managerial Personnel:

Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Mr. Meet J. Joshi

c) Relative of Key Managerial Personnel

Mr. Mrugesh Jaykrishna Mr. Gokul M. Jaykrishna #

d) Subsidiary Company

Akshar Pigments Pvt. Ltd

6.. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

7. In the previous financial year i.e. 2014-15 Prior Period Adjustments of Rs. 11,565,000/- shown in the Statement of Profit and Loss.

8. SCHEME OF ARRANGEMENT

Pursuant to the Scheme of Arrangement ("the Scheme") under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("the Company"), Asahi Songwon Colors Limited ("ASCL") and their respective shareholders and creditors as approved by the Hon’ble High Court of Gujarat vide its certified order dated November 29, 2014, which became effective from December 2, 2014 on filing with Registrar of Companies, Gujarat and accordingly all assets and liabilities of the CPC Green Division (i.e. business and interests in manufacture of CPC Green Division) of Asahi Song won Colors Limited has been transferred by way of demerger to the Company at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2014). Accordingly the same has been reflected in the previous year’s figures.

9. Previous year’s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2015

1. Previous year figures have been regrouped wherever necessary, to confirm to this year's classification.

2. The cash flow statement has been prepared under the 'Indirect Method' set out in Accounting Standard 3 'Cash Flow Statement' issued by Institute of Chartered Accountants of India.

3. The figures of current year are not comparable with the previous years figures, pursuant to the Scheme of Arrangement sanctioned by the Hon'ble High Court of Gujarat in the nature of demerger and transfer of CPC Green Division of Asahi Songwon Colors Limited to the Company on the appointed date i.e. April 01,2014. All the Assets and liabilities are transferred the Company on that date. (Refer Note-42).

4. Corporate Information

The Company is a Public Limited Company incorporated under the Companies Act, 1956. The Company is currently engaged in the business of manufacturing, marketing, trading and export of Dyes Intermediates and Pigments.The company's equity shares are listed at BSE Limited and Ahmedabad Stock Exchange Limited.

5. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs.10 each. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

6. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash:

2,360,050 Equity Shares of Rs.10 each have been issued to Shareholders of Asahi Songwon Colors Limited in terms of Scheme of Arrangement in the nature of demerger and transfer of CPC Green Division of Asahi Songwon Colors Limited into the Company sanctioned by the Hon'ble High Court of Gujarat at Ahmedabad vide order dated 17.10.2014.

7. Aggregate number and class of shares allotted as fully paid up by way of Bonus shares : NIL

8. Aggregate number and class of shares bought back: NIL

a. Secured loans are covered by:

Term Loans from State Bank of India (SBI) are secured by Equitable Mortgage of Land and Buildings and a first charge by way of hypothecation of the whole of the movable properties of the company including its movable plant & machinery, stores, tools & accessories, present & future and other movables save & except book debts & current assets.

b. Vehicle loans are secured by hypothecation of concerned vehicles.

Repayment terms of Vehicle Loan

Vehicle loans are repayable in equal monthly installment over the terms of loan ranging from 1 to 3 years. There was no default in repayment of loan or interest.

9. CONTINGENT LIABILITIES & COMMITMENTS

(Amount in Rupees)

Particulars 31/03/2015 31/03/2014

1 Income Tax: order U/s 154 Passed by ACIT Circle -1 Ahmedabad for Asst Year. 669,293 669,293

2001-02.

2 Sales Tax: Appellate order passed by Dy. Commissioner of Commercial Taxes, 1,803,341 1,803,341

Appeals-3 at Gandhinagar for the year 2004-05, and Subsequently applied for

Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal).

3 The Commissioner of Income Tax -1Ahmedabad has filed an appeal in the High 4,427,236 4,427,236

Court of Gujarat, Ahmedabad for the Asst. Year 2003-04

4 The Commissioner of Income Tax -1 Ahmedabad has filed an appeal for the 293,669 293,669

Asst. Year 2004-05

5 Income Tax: order U/s 263 Passed by ITO (Tech-I) Pr. Commissioner of Income 261,960 -

tax-1 Ahmedabad for Asst Year. 2010-11 has filed an appeal to the Appellate Tribunal

6 Estimated amount of Contracts / purchase orders remaining to be executed 43,234,100 -

and not provided for Capital goods.

7 Bills discounted against Letter of Credit but not realized and credited to the 68,002,255 - parties accounts

10. sundry debtors, sundry creditors and loans and advances

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

11. SEGMENT REPORTING

The Company has two reportable primary segments "Dyes and Intermediate" and "Pigments" for the year ended 31.03.2015 (Previous year up to 31/03/2014 had one segment "Dyes and Intermediates" as they do not include figures of CPC Green Division, which has been since demerged into the Company from Asahi Songwon Colors Limited with appointed date April 01,2014) as per Accounting Standard-17. (Refer Note-42)

12. RELATED PARTY DISCLOSURES

Pursuant to the Accounting Standard on "Related Party Disclosure" (AS 18) notified by Companies (Accounting Standards) Rules, 2006, the following persons will be considered as related persons for the period ended on March 31,2015.

1 Related Parties and Nature of Relationship

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:

Asahi Songwon Colors Ltd.

Skyjet Aviation Pvt. Ltd.

Skyways

Asahi Energy Pvt. Ltd.

Asahi Powertech Pvt. Ltd.

Flyover Communication Pvt. Ltd.

Akshar Silica Pvt. Ltd.

b) Key Managerial Personnel:

Mrs. Paru M. Jaykrishna

Mr. Gokul M. Jaykrishna

Mr. Munjal M. Jaykrishna

c) Relative of Key Managerial Personnel

Mr. Mrugesh Jaykrishna

13. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

14. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

15. The Prior Period Adjustments of Rs.11,565,000/- shown in Statement of Profit and Loss represents the recovery of excess payment of Remuneration paid to the Managing Directors of the Company during the Financial Year 2013-2014.

16. The extraordinary Item shown in the Statement of Profit and Loss represents unrealised export incentives written off for Rs. Nil (Previous year Rs. 15,979,288/-)

17. Consequant to the Approval of the Scheme of Arrangement ("Scheme") under section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("the Company"), Asahi Songwon Colors Limited ("ASCL") and their respective shareholders and creditors, CPC Green division of Asahi Songwon Colors Limited ("demerged Undertaking), including all assets and liabilities thereof, (i.e. business and interests in manufacture of CPC Green Division) as sanctioned by Hon'ble High Court of Gujarat vide its Certified order dated November 29, 2014, and thereunder filed with the Registrar of Companies on December 2, 2014, has been transferred by way of demerger to the Company at their respective book values on a going concern basis with effect from the appointed date of the Scheme, i.e. April 1,2014. Accordingly, these financial statements includes the figures of the said CPC Green Division of ASCL ("demerged undertaking") for the period from 01.04.2014 to 31.03.2015.

18. Upon the scheme being effective the Authorised Share Capital of Asahi Songwon Colors Limited amounting to Rs. 35,000,000/-has been transferred to the Company and accordingly the Authorised Share Capital of the Company is increased to the said extent as on the effective date without any further act or deed.

19. The transaction pertaining to the CPC Green Division ASCL from the appointed date up to the effective date of the Scheme of Arrangement has been deemed to be made by the Company.

20. The employees of demerged undertaking have been transferred to the Company on their existing terms of employment with ASCL.

21. All contingent liabilities relating to demerged undertaking has been transfereed to the Company on the appointed date.

22. All loans, advances and other facilities sanctioned to the ASCL in relation to the CPC Green Division by State Bank of India prior to the Appointed Date, which are partly drawn or utilized is transferred to the Company. Further, such loans, advance and other facilities utilized either partly or fully by the ASCL from the appointed date till the effective date of the CPC Green Division (within the overall limits sanctioned by State Bank of India) is on the effective date treated as loans, advances and other facilities made available by the Company without any further act or deed.

23. Figures for the period prior to the appointed date i.e. April 1,2014 are not comparable since they do not include figures of CPC Green division which has been since demerged into the company from Asahi Songwon Colors Limited as per the Scheme of Arrangement approved by the Hon'ble High Court of Gujarat.

24. Earning per Share (EPS) for the period ended 31/3/2015 has been calculated in accordance with Accounting Standard 20 after considering the effect of shares issued to the shareholders of Asahi Songwon Colors Limited pursuant to the Scheme of Arrangement in the nature of demerger and transfer of CPC Green division of Asahi Songwon Colors Limited. Since the scheme of demerger is with effect from appointed date i.e. April 01, 2014, consequently the figures in respect of EPS for current period are not comparable with figures for the period prior to the appointed date.

25. Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2014

1. Terms / rights attached to Equity Shares

The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares are entitled to one vote per share. The company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the realised value of the assets of the company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. I. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

II. Aggregate number and class of shares allotted as fully paid up by way of Bonus Shares : NIL

III. Aggregate number and class of shares bought back: NIL

3. ''There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2014. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

4. CONTINGENT LIABILITIES & COMMITMENTS NOT PROVIDED FOR

(Amount in Rupees)

31/03/2014 31/03/2013

1. Income Tax: order U/s 154 passed 669,293 669,293 by ACIT Circle -1 Ahmedabad for Asst Year. 2001-02. 2. Sales Tax: Appellate order passed 1,803,341 1,803,341 by Dy. commissioner of commercial Taxes, Appeals-3 at Gandhinagar for the year 2004-05, and Subsequently applied for Appeal at commercial tax commissioner Ahmedabad. (VAT Tri- bunal).

3. The commissioner of Income Tax -1 4,427,236 4,427,236 Ahmedabad has filed an appeal in the High court of Gujarat, Ahmedabad for the Asst. Year 2003-04

4. The commissioner of Income Tax -1 Ahmedabad has filed an appeal for the 293,669 293,669 Asst. Year 2004-05

5. Estimated value of contracts - - remaining to be executed on capital account & not provided for

6. Bills discounted against Letter of - 5,636,505 credit but not realized and credited to the parties accounts

5. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

6. SEGMENT REPORTING

The company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by companies (Accounting Standards) Rules, 2006.

7. The extraordinary item shown in the Statement of profit and Loss represents unrealised export incentives written off for Rs. 15,979,288/- (previous year - Nil)

8. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT credit entitlement has been treated as advance payment of Tax.

9. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the company and as such no provision is required as per Accounting Standard 28 issued by The Institute of chartered Accountants of India.

10. Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2013

1. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

2. SEGMENT REPORTING

The Company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

3. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

4. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

5. Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2012

A. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: Nil

2. Aggregate number and class of shares allotted as fully paid up by way of Bonus Shares : Nil

3. Aggregate number and class of shares bought back: Nil

a. Secured loans are covered by:

1. Term Loan from State Bank of India is secured by Equitable mortgage of Land and Buildings and a first charge by way of hypothecation of the whole of the movable properties of the company including its movable plant & machinery, stores, tools & accessories, present & future and other movables save

& except book debts & current assets and further secured by personal guarantee of three Directors of the Company.

b. Repayment terms of outstanding long term borrrowings as on March 31, 2012:

1. There was no default in repayment of loan or interest.

2. Repayment terms of secured term loan:

Amount payable within 12 Months Rs. 5,013,105/- (Previous.Year. Rs. 12,000,000/-). Current year term loan outstanding is repayable by 4 monthly installments of Rs. 1,000,000/- and last installment for balance amount.

* Secured loans are secured by hypothecation of raw materials, finished goods, stock in process and book debts, and furher secured by first charge over the fixed assets of the company and personal guarantee of three Directors of the Company.

(2) There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2012. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.

3 The Revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the Company effective from April 1, 2011 for the presentation made in the financial statements. The adoption of the revised Schedule VI requirements has significantly modified the presentation and disclosures which have been complied with in these financial statements. Previous year figures have been reclassified in accordance with current year requirements.

4 Contingent Liabilities

(Amount in Rupees) 31/03/2012 31/03/2011

1. Income Tax: order U/s 250 Dated 30/12/2010 Passed 669,293 2,680,821 by CIT (A)-VI Ahmedabad for Asst Year. 2001-02.

2. Sales Tax : Assessment order passed by Sales tax officer Kadi - 110,145 for the year 1997-1998 for which Appeal filed with Assistant

Commissioner of Sales Tax Mehsana GST and CST Respectively.

3. Sales Tax: Appellate order passed by Dy. Commissioner of 1,803,341 1,803,341 Commercial Taxes, Appeals-3 at Gandhinagar for the year

2004-05, and Subsequently applied for Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal).

4. The Commissioner of Income Tax -1 Ahmedabad has filed an 4,427,236 4,427,236 appeal in the High Court of Gujarat, Ahmedabad for the Asst.

Year 2003-04.

5. Income Tax: order U/s 143(3) Dated 09/09/2011 Passed by 293,669 - DCIT Circle -1 Ahmedabad for Asst Year. 2004-05.

6. Estimated amount of contracts remaining to be executed - 12,287,645 on capital account & not provided for.

7. Bills discounted against Letter of Credit but not realized and 12,411,154 4,389,172 credited to the parties accounts.

8. Guarantees Issued by the banks on behalf of the Company. 837,105 837,105

9. Central Excise: - Applied for appeal at Commissioner of 462,642 462,642 Central Excise. Ahmedabad-III on December 2009 dispute against availed the cenvat credit.

5 Sundry Debtors, Sundry Creditors and Loans and Advances

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

6 Segment Reporting

The Company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

7 Related Party Disclosures

Pursuant to the Accounting Standard on "Related Party Disclosure" (AS 18) notified by Companies (Accounting Standards) Rules, 2006, the following persons will be considered as related persons for the year ended on March 31, 2012.

8 Accounting for Tax on Income

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

9 Impairment of Assets

There are no indications which reflects that any of the assets of the Company has got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on "Impairment of Assets" (AS 28) notified by the Companies (Accounting Standards) Rules, 2006.

10 Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.

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Mar 31, 2010

1. Contingent Liabilities

As at As at

31/03/10 31/03/09

Rs. Rs.

a. Income Tax: Assessment order passed by Income-Tax office of Ward 1(1) Ahmedabad for A.Y. 2001-02 for which Filed an Appeal with Appellate Tribunal. 1,129,189 1,129,189

b. Sales Tax : Assessment order passed by Sales tax officer Kadi for the year 1997-1998 for which Appeal filed with Assistant Commissioner of Sales Tax Mehsana GST and CST Respectively. 110,145 110,145

c. Sales Tax: Appellate order passed by Dy. Commissioner of Commercial Taxes, Appeals-3 at Gandhinagar for the year 2004-05,. and Subsequently applied for Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal). 1,803,341 1,803,341

d. Income Tax : Assessment order passed by Income-Tax office of Ward 1(1) Ahmedabad for A.Y. 2003-04 for which CIT Appeal Filed on April 2006. 4,427,234 4,427,234

e. Estimated amount of contracts remaining to be executed on capital account & not provided for. 1,135,000 NIL

f. Bills discounted against Letter of Credit but not realized and credited to the parties accounts. 38,949,691 24,865,323

g. Guarantees Issued . by the banks on behalf of the Company. 837,105 NIL

h Central Excise: - Applied for appeal at Commissioner of Central Excise. Ahmedabad-III on December 2009 dispute against availed the cenvat credit. 462,642 NIL



2. Sundry Debtors, Sundry Creditors and Loans and Advances

a. The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

b. There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at 31st March, 2010. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the Company.

3. Segment Reporting

The Company is mainly engaged in manufacturing of "Dyes & Intermediates" which is considered the Primary reportable business segment as per AS-17 "Segment Reporting" issued by Institute of Chartered Accountants of India.

4. Related Party Disclosures

1. Related Parties and Nature of Relationship

a) The Parties over which significant influence is exercised

Names Relationship

Asahi Songwon Colors Ltd. One or more directors are director

Skyjet Aviation Pvt Ltd One or more directors are director

Skyways One or more directors are trustees

Third Screen Solution Pvt Ltd One or more directors are director

Grey Cell Solution Pvt Ltd One or more directors are director

Flyover Communication Pvt Ltd One or more directors are director



b) Key Management Personal and their Relatives:

Names Relationship

Mrs. Paru M. Jaykrishna Chairperson and Managing Director

Mr. Gokul M. Jaykrishna Executive Director

Mr. Munjal M. Jaykrishna Joint Managing Director Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing

Director and Father of Executive Director and Joint Managing Director.