Notes to Accounts of Dhanuka Agritech Ltd.

Mar 31, 2025

h. Provisions, Contingent Liabilities and
Contingent Assets

A provision is recognized if, as a result of a past
event, the company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. If the effect of the time value of money
is material, provisions are determined by
discounting the expected future cash flows at a
pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. Where discounting is
used, the increase in the provision due to the
passage of time is recognized as a finance cost.

Contingent Liability is disclosed after careful
evaluation of facts, uncertainties and possibility
of reimbursement, unless the possibility of an
outflow of resources embodying economic
benefits is remote. Contingent liabilities are not
recognized but are disclosed in notes.

Contingent assets are not disclosed in the financial
statements unless an inflow of economic benefits
is probable. Provisions, Contingent Liabilities and
Contingent Assets are reviewed at each Balance
Sheet date.

i. Revenue Recognition

I. Sale of goods

Revenue is generated primarily from sale of
agrochemicals.

Revenue is recognized upon transfer of
control of promised goods to customers in an
amount that reflects the consideration which
the Company expects to receive in exchange
for those goods.

Revenue from the sale of goods is recognized
at the point in time when control is transferred
to the customer which is usually on delivery.

Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, rebates, scheme
allowances, price concessions, incentives,
and returns, if any, as specified in the contracts
with the customers. Revenue excludes taxes
collected from customers on behalf of the
government. Accruals for discounts/
incentives and returns are estimated (using the
most likely method) based on accumulated
experience and underlying schemes and
agreements with customers. Due to the short
nature of credit period given to customers,
there is no financing component in the
contract.

Contract balances
Trade receivables

A receivable represents the Company''s right
to an amount of consideration that is
unconditional (i.e., only the passage of time is
required before payment of the consideration
is due). Refer to accounting policies of
financial assets in section 3(d) Financial
instruments - initial recognition and
subsequent measurement.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an
amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods or
services to the customer, a contract liability is
recognized when the payment is made or the
payment is due (whichever is earlier).
Contract liabilities are recognized as revenue
when the Company performs under the
contract.

II. Interest Income

Interest income is accrued on a time basis, by
reference to the principal outstanding and at
the effective interest rate applicable, which is
the rate that exactly discounts estimated
future cash receipts through the expected life
of the financial asset to the asset''s net carrying
amount on initial recognition. Interest income
is included in other income in the statement of
profit and loss.

III. Insurance claims

Insurance claims are accounted for on the
basis of claims admitted and to the extent that
there is no uncertainty in receiving the claims.

IV. Government Grants

Government grants and subsidies are
recognised where there is reasonable
assurance that the grant/subsidies will be
received and all attached conditions will be
complied with. The Grants are presented
under the head other operating income.

j. Employee Benefits

I. Short Term Employee benefits

Short-term employee benefits are expensed as
the related service is provided. A liability is
recognized for the amount expected to be paid
if the Company has a present legal or
constructive obligation to pay this amount as a
result of past service provided by the
employee and the obligation can be estimated
reliably.

II. Defined contribution plans

Employees benefits in the form of the
Company''s contribution to Provident Fund,
Pension scheme, Superannuation Fund,
National Pension scheme and Employees
State Insurance are defined contribution
schemes. The Company recognizes
contribution payable to these schemes as an
expense, when an employee renders the
relatedservice. If the contribution payable
exceeds contribution already paid, the deficit
payable is recognized as a liability (accrued
expense), after deducting any contribution
already paid. If the contribution already paid
exceeds the contribution due for service
before the end of the reporting period, the
Company recognize that excess as an asset
(prepaid expense) to the extent that the
prepayment will lead to reduction in future
payments or a cash refund.

III. Defined benefit plans

Retirement benefits in the form of gratuity are
considered as defined benefit plans. The
Company''s net obligation in respect of
defined benefit plans is calculated by
estimating the amount of future benefit that
employees have earned in the current and
prior periods, discounting that amount and
deducting the fair value of any plan assets.

The company provides for its gratuity liability
based on actuarial valuation of the gratuity
liability as at the Balance Sheet date, based on

Projected Unit Credit Method, carried out by an
independent actuary. The company contributes to
the gratuity fund, which are recognized as plan
assets. The defined benefit obligation as reduced
by fair value of plan assets is recognized in the
Balance Sheet.

When the calculation results in a potential asset
for the company, the recognized asset is limited to
the present value of economic benefits available in
the form of any future refunds from the plan or
reductions in future contributions to the plan. To
calculate the present value of economic benefits,
consideration is given to any applicable minimum
funding requirements.

Remeasurement of the net defined benefit
liability, which comprise actuarial gains and
losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling (if any,
excluding interest), are recognized immediately in
Other Comprehensive Income. Net interest
expense (income) on the net defined liability
(assets) is computed by applying the discount rate,
used to measure the net defined liability (asset), to
the net defined liability (asset) at the start of the
financial year after taking into account any
changes as a result of contribution and benefit
payments during the year. Net interest expense and
other expenses related to defined benefit plans are
recognized in statement of profit & loss.

When the benefits of a plan are changed or when a
plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on
curtailment is recognized immediately in
statement of profit & loss. The company
recognizes gains and losses on the settlement of a
defined benefit plan when the settlement occurs.

IV. Other long term employee benefits

Other long term Employee benefits includes
earned leaves and sick leaves. The Company''s
net obligation in respect of long-term
employee benefits is the amount of future
benefit that employees have earned in return

for their service in the current and prior
periods. That benefit is discounted to
determine its present value. Remeasurement
are recognized in statement of profit & loss in
the period in which they arise.

The liability for long term compensated
absences are provided based on actuarial
valuation as at the Balance Sheet date, based
on Projected Unit Credit Method, carried out
by an independent actuary.

k. Foreign currency transactions

The financial statements are presented in Indian
rupee, which is the company''s functional and
presentation currency, unless stated otherwise. A
company''s functional currency is that of the
primary economic environment in which the
company operates.

Foreign currency transactions are translated into
the functional currency using the exchange rate at
the date of the transaction. Foreign exchange
gains/losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign
currencies at year end exchange rates are
recognized in the statement of profit and loss.

l. Borrowing costs

Borrowing costs are interest and ancillary cost
incurred in connection with the arrangement of
borrowings. Borrowing costs are recognized in
the statement of profit and loss within finance
costs of the period in which they are incurred.

m. Income Tax

Income tax expense comprises current and
deferred tax. It is recognized instatement of profit
& loss except to the extent that it relates to items
recognized directly in equity or in Other
Comprehensive Income.

I. Current Tax

Current tax comprises the expected tax payable on
the taxable income for the year after taking credit
of the benefits available under the Income Tax Act
and any adjustment to the tax payable or
receivable in respect of previous years. It is
measured using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and liabilities are offset only if,
the Company:

a) has a legally enforceable right to set off the
recognized amounts; and

b) intends either to settle on a net basis, or to
realize the asset and settle the liability
simultaneously.

II. Deferred Tax

Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
values of assets and liabilities in the financial
statements and the corresponding tax bases used
in the computation of taxable profit and is
accounted for using the balancesheet liability
method. Deferred tax assets/liabilities are
generally recognized for all taxable temporary
differences, the carry forward balance of unused
tax credits and unused tax losses to the extent that
it is probable that taxable profits will be available
against which those deductible temporary
differences, the carry forward balance of unused
tax credits and unused tax losses can be utilized.

The carrying value of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Deferred tax is measured at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realized based on the tax
rates and tax laws that have been enacted or
substantially enacted by the end of the reporting
period. The measurement of deferred tax
liabilities and assets reflects the tax consequences
that would follow from the manner in which the

company expects, at the end of the reporting
period, to cover or settle the carrying value of its
assets and liabilities.

Deferred tax assets and liabilities are offset only if:

i) The entity has a legally enforceable right to set off
current tax assets against current tax liabilities;

and

ii) The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity.

n. Lease

The Company''s lease asset classes primarily
consist of leases for Building and Vehicles. The
Company assesses whether a contract contains a
lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right
to control the use of an identified asset for a period
of time in exchange for consideration. To assess
whether a contract conveys the right to control the
use of an identified asset, the Company assesses
whether:

(i) the contract involves the use of an identified
asset (ii) the Company has substantially all of the
economic benefits from use of the asset through
the period of the lease and (iii) the Company has
the right to direct the use of the asset.

Company as a lessee

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

Certain lease arrangements include the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities

includes these options when it is reasonably
certain that they will be exercised.

The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of the
lease. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying
amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and
the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash
flows that are largely independent of those from
other assets. In such cases, the recoverable
amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.

The lease liability is initially measured at
amortized cost at the present value of the future
lease payments. The lease payments are
discounted using the interest rate implicit in the
lease or, if not readily determinable, using the
incremental borrowing rates in the country of
domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to
the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option.

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

Company as a lessor

When the Company acts as a lessor, it determines
at lease inception whether each lease is a finance
lease or an operating lease. To classify each lease,
the Company makes an overall assessment of
whether the lease transfers substantially all of the
risks and rewards incidental to ownership of the
underlying asset. If this is the case, then the lease
is a finance lease; if not, then it is an operating
lease.

The Company recognises lease payments
received under operating leases as income on a
straight-line basis over the lease term as part of
''other income''.

o. Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
Equity Shareholders by the weighted average
number of equity shares outstanding during the
period.

For the purpose of calculating diluted earnings per
Share, the net profit or loss for the period
attributable to Equity Shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.

p. Dividend to Equity Shareholders

Final dividend to equity shareholders is
recognized as a liability and deducted from
shareholders'' Equity, in the period in which the
dividends are approved by the equity shareholders
in the general meeting. Interim dividends are
recognized on declaration by the Board of
Directors.

The Board of Directors of the Company in its meeting held on 2nd August 2024, had approved the proposal for Buy Back of 5,00,000 (Five
Lacs Only) Equity Shares of the Company for an amount of Rs. 100 Crores (Rupees One Hundred Crores only) excluding transaction costs
at a price of Rs. 2,000/- (Rupees Two Thousands only) per Equity Share, through the tender offer route. Pursuant to the above, the Company
had bought back its 5,00,000 (Five Lacs only) fully paid-up equity shares, representing 1.10% of the total issued capital and extinguished
those Equity Shares on 11th September 2024. Consequently, Paid up Share Capital had been reduced by Rs.10,00,000 (Rupees Ten lacs
only).

The aggregate number of equity shares bought back during a period of five financial years immediately preceding the financial year ended
31 March 2025 is 20 Lacs equity shares (31 March 2024: 35 Lacs equity shares).

b. Terms/Rights attached to Issued Equity Shares

1 The Company has only one class of Equity Shares having at par value of ¹ 2/- per share. Each Equity share is entitled to one vote.

2 In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts.

3 The distribution will be in proportion to the number of Equity Shares held by the shareholders.

36. EMPLOYEE BENEFITS

The company participates in defined contribution
and benefit schemes, the funded assets of which
are held in separately administered funds. For
defined contribution schemes the amount charged
to the statements of profit & loss is the total of
contributions payable in the year.

a. Defined Contribution Plans

The Company has Defined Contribution
Plans for post-employment benefits namely
Provident Fund, Superannuation Fund and
National Pension Scheme, which are
administered by appropriate Authorities.

The Company contributes to a Government
administered Provident Fund, Employees''
Deposit Linked Insurance Scheme and
Employee Pension Scheme, on behalf of its
employees and has no further obligation
beyond making its contribution.

The Superannuation Fund and National
Pension Scheme applicable to certain
employees is a Defined Contribution Plan as
the Company contributes to these Schemes
which are administered by an Insurance

Company and has no further obligation
beyond making the payment to the Insurance
Company.

The Company contributes to State Plans
namely Employees'' State Insurance Fund and
has no further obligation beyond making the
payment to them.

The Company''s contributions to the above
funds are charged to revenue every year.

The company has recognized an expense of ''
518.91 Lakhs (Previous year '' 533.11Lakhs)
towards the defined contribution plans.

b. Defined Benefit Plans

In accordance with the payment of Gratuity
Act, 1972, the Company has a Defined Benefit
Plan namely “Gratuity Plan” covering its
employees. The Gratuity scheme is funded
through Group Gratuity-cum-Life Assurance
Scheme and the liability for the Gratuity plan
is provided based on an actuarial valuation at
the year-end. Re-measurement as a result of
experience adjustments and changes in
actuarial assumptions are recognized in other
comprehensive income.

VII. Sensitivity Analysis

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

X. Method and assumption related terms

1) Discount Rate: -Discount rate is the rate
which is used to discount future benefit cash
flows to determine the present value of the
defined benefit obligation at the valuation
date. The rate is based on the prevailing
market yields of high quality corporate bonds
at the valuation date for the expected term of
the obligation. In countries where there are no
such bonds, the market yields at the valuation
date on government bonds for the expected
term is used.

2) Salary escalation Rate: - The rate at which
salaries are expected to escalate in future. It is
used to determine the benefit based on salary
at the date of separation.

3) Attrition Rate: - The reduction in staff/
employees of a company through normal
means, such as retirement and resignation.
This is natural in any business and industry.

4) Mortality Rate: - Mortality rate is a measure
of the number of deaths (in general, or due to a
specific cause) in a population, scaled to the

5) Projected Unit credit method: - The

Projected Unit Credit Method (sometimes
known as the accrued benefit method pro¬
rated on service or as the benefit/years of
service method) considers each period of
service as giving rise to an additional unit of
benefit entitlement and measures each unit
separately to build up the final obligation. The
Projected Unit Credit Method requires an
enterprise to attribute benefit to the current
period (in order to determine current service
cost) and the current and prior periods (in
order to determine the present value of
defined benefit obligations).

c. Other Long term employee benefits

The liabilities for earned leave and sick leave are
not expected to be settled wholly within 12
months after the end of the period in which the
employees render the related service. They are
therefore measured as the present value of
expected future payments to be made in respect of
services provided by employees up to the end of
the reporting period using the projected unit credit
method. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognized in statement of profit
and loss.

The company has recognized an expense of ''
156.59 Lakhs (Previous year '' 114.25 Lakhs)
towards the compensated absences.

* Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings
of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/
decisions pending with various forums / authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The
company also believes that the above issues, when finally settled are not likely to have any significant impact
on the financial position of the Company.

** Company has received Refund of Terminal Excise Duty (TED) during FY 2015-16 & FY 2016-17 from
Director General of Foreign Trade (DGFT). In November-2019, company has received show cause notice
from DGFT for recovery of erroneous payment of Terminal Excise Duty. Against this notice, company has
filed writ before Gujarat High Court and the court has stayed the recovery of the notice. As on now the matter is
pending before Gujarat High Court.

38. LEASES

The Company''s lease asset primarily consists of
leases for offices, warehouses and Vehicles
having the various lease terms. Effective April 1,
2019, the Company adopted Ind AS 116 “Leases”
and applied the standard to all lease contracts
existing on April 1, 2019 using the modified
retrospective method. Consequently, the
cumulative effect of initially applying the

standard recognised at the date of initial
application, with right-of-use asset recognised at
an amount equal to the lease liability, adjusted by
the prepaid lease rent.

a. Right of Use

Following is carrying value of right of use assets
and the movements thereof during the year ended
are as under:-

c. The company has elected Para 6 of Ind AS-116 for
short-term leases & recognised lease expense of ''
41.16Lakhs(Previous Year '' 26.59 Lakhs)
associated with these lease.

d. The weighted average incremental borrowing rate
of 9% has been applied to lease liabilities
recognised in the Balance Sheet at the date of
initial application.

c. The Maturity analysis of lease liabilities are
disclosed in Note 43(b)

39. SEGMENT INFORMATION

The company has evaluated the applicability of
segment reporting and has concluded that the
company has only one primary business segment
i.e. Agro Chemicals and one geographical
reportable segment i.e. Operations mainly within
India.The overall performance is reviewed by
the Chairman, Managing Directorand CFO,
which have been identified as the CODM (Chief
operating decision makers) by the Company.

Thus the segment revenue, expenses, results,
assets and liabilities are same as reflected in the
financial statements as at and for the year ended 31
March, 2025.

Note-Figures are shown net of GST, wherever

applicable.

• The above post-employment benefits exclude
gratuity which cannot be separately identified
from the composite amount advised by the
actuary.

• The Board of Directors of Dhanuka Agritech
Limited in its meeting held on November 07, 2023
had approved the Strike off of its wholly owned
subsidiary i.e. Dhanuka Chemicals Private
Limited (DCPL). DCPL has filed an application
for strike-off with the Registrar of Companies
(ROC), NCT of Delhi and Haryana. The ROC has
approved the strike off and the name of the
Company has been struck off with effect from July
16, 2024 from the Register of the Companies.
Investment of Rs. 1.00 lac have been consequently
written off in FY 2024-25.

• The above transactions do not include property tax
of Rs. Nil (March 31, 2024 Rs. 23.01 Lakhs) paid
to Municipal Corporation on behalf of Mridul
Dhanuka HUF. The same has been reimbursed by
Mridul Dhanuka HUF to the company.

• The above amount of services received-rent
includes property tax reimbursement of Rs. 4.71
Lakhs (March 31,2024 Rs. 3.79 Lakhs).

• The above amount of services rendered - rent
includes property tax reimbursement of Rs. 3.44
Lakhs (March 31, 2024 Rs. Nil)

c. Terms and conditions of transactions with
related parties

All the transactions with related parties are made
on terms equivalent to those that prevail in arm’s
length transactions. Outstanding balances at the
year-end are unsecured and settlement occurs in
cash. There have been no guarantees provided or
received for any related party receivables or
payables. The company has not recorded any
impairment of receivables relating to amounts
owed by related parties except as mentioned above
for the year ended March 31, 2025and March 31,
2024.

41. THE MICRO, SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT (MSMED)
ACT,2006

The information regarding Micro, Small and
Medium enterprises has been determined to the
extent such parties have been identified on the
basis of information available with the company:

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

The carrying amounts of cash and cash equivalents,
bank balance other than cash and cash equivalents,
trade receivables, Short term loans, trade payables,
short term borrowings and other current financial
assets and liabilities are considered to be the same as
their fair values, due to their short-term nature. Fair
value for security deposits (other than perpetual
security deposits) has been presented in the above
table. Fair value for all other non-current financial
assets and liabilities is equivalent to the amortized
cost, interest rate on them is equivalent to the market
rate of interest.

III. Fair Value hierarch

Level 1- This includes financial instruments
measured using quoted prices
(Unadjusted) in active markets for
identical assets and liabilities.

Level 2 - The fair value of financial instruments that

are not traded in an active market is
determined using valuation techniques
which maximize the use of observable
market data and rely as little as possible
on entity-specific estimates. If all
significant inputs required to fair value an
instrument are observable, the instrument
is included in level 2. Inputs other than
quoted prices included within Level 1 that
are observable for the asset or liability,
either directly (i.e. as prices) or indirectly
(i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are
not based on observable market data
(unobservable inputs).

IV. Valuation techniques used to determine fair
value

Level 1- Financial assets categorized in Level 1,
are fair valued based on market data as at
reporting date.

Level 2 - The fair valuation of investments
categorized in Level 2 has been
determined on the basis of independent
valuation done by respective funds.

43. FINANCIAL RISK MANAGEMENT

The Company’s operational activities expose to
various financial risks i.e. market risk, credit risk and
risk of liquidity. The Company realizes that risks are
inherent and integral aspect of any business. The
company’s board of directors has the overall
responsibility for the management of these risks. The
company has the risk management policies and
systems in place and are reviewed regularly to reflect
changes in market conditions and the company’s
activities. The primary focus is to foresee the
unpredictability of financial markets and seek to
minimize potential adverse effects on its financial
performance. The company’s audit committee
oversees how management monitors compliance with
the risk management policies and procedures, and
reviews the adequacy of risk management framework
in relation to the risks faced by the company.

a.) Credit Risk

Credit Risk refers to the risk that a counter
party will default on its contractual obligation
resulting in financial loss to the company.
Credit risk arises from the operating activities
primarily from trade receivables and from its
financing activities including cash and cash
equivalents, deposits with banks, Investments
and other financial instruments. The carrying
amount of financial assets represents the
maximum credit exposure and is as follows:

Trade Receivables

Trade receivables are typically unsecured and
are derived from revenue earned from
customers primarily located in India. The
company has established a credit policy under
which each customer is analyzed individually
for creditworthiness before the company’s
credit terms are offered. Credit risk is
managed through credit approvals,
establishing credit limits and continuously
monitoring the creditworthiness of customers
to which the company grants credit terms in

the normal course of business. Credit limits
are established for each customer and
reviewed periodically. Any sales order
exceeding those limits require approval from
the appropriate authority. The concentration
of credit risk is limited due to the fact that the
customer base is large and unrelated.

In case of trade receivables, the Company
follows the simplified approach permitted by
Ind AS 109 - Financial Instruments for

recognition of impairment loss allowance.
The company calculates the expected credit
losses on trade receivables using a provision
matrix on the basis of its historical credit loss
experience. These loss rates are adjusted by
considering the available, reasonable and
supportive forward looking information.

The ageing of Trade Receivables and
allowances for doubtful debts are given
below:

Financial assets other than Trade Receivables,
Loans to corporate & others, Security Deposit and
Investment in Real Estate Funds.

Credit risks from financial transactions are managed
independently by finance department. For banks and
financial institutions, the company has policies and
operating guidelines in place to ensure that financial
instrument transactions are only entered into with high
credit rated banks and financial institutions. The
company had no other financial instrument that
represent a significant concentration of credit risk. So
there is no impairment in these financial assets.

b.) Liquidity Risk

Liquidity risks result from the possible inability of

the company to meet current or future payment
obligations due to lack of cash or cash
equivalents. The liquidity risk is assessed and
managed by the finance department as a part of
day to day and medium term liquidity planning.

The company holds sufficient liquidity to ensure
the fulfillment of all planned payment obligations
at maturity. The company’s liquidity risk policy is
to maintain sufficient liquidity reserve at all times
based on cash flow projections to meet payment
obligation when it falls due. The primary source
of liquidity is cash generated from operations.
Liquid assets are held mainly in the form of bank
deposits and mutual fund investments. The
company maintain flexibility in funding by

c.) Market Risk

i. Currency Risk

Foreign currency risks for the company is
from changes in exchange rates and the
related changes in the value of financial
instruments in the functional currency (INR).
The company is exposed to foreign exchange

risk arising from foreign currency
transactions primarily with respect to US
Dollar and EURO.

The carrying amounts of the Company’s
unhedged foreign currency denominated
monetary assets and monetary liabilities at the
end of the reporting period are as follows:

Note: This is mainly attributable to the exposure
outstanding on foreign currency receivables and
payables in the Company at the end of the reporting
period. The assumed movement in exchange rate
sensitivity analysis is based on the currently
observable market environment.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or
future cash flow of a financial instrument will
fluctuate because of changes in market interest
rates. The short-term borrowings of the company
do not have any significant fair value or cash flow
interest rate risk due to short tenure. So, there is no

material interest risk relating to the company’s
financial liabilities.

iii. Price Risk

The company is mainly exposed to the price risk
due to its investment in mutual funds and
classified in the balance sheet as fair value through
profit and loss. Mutual fund investments are
susceptible to market price risk, mainly arising
from changes in the interest rates or market yields
which may impact the return and value of such
investments. However, due to very short tenor of
the underlying portfolio in the liquid schemes,
these do not pose any significant price risk.

There is no material risk relating to the company’s
equity investments which are detailed in note 8. The
company’s equity investments majorly comprise of
strategic investments rather than trading purposes.

44. CAPITAL MANAGEMENT

The company manages its capital to ensure that the
company will be able to continue as going concern
while maximizing the return to stakeholders through

optimization of debt and equity balance. Further its
objective is to maintain an adequate capital base so as
to maintain creditor and market confidence and to
sustain future development.

The company manages capital using gearing ratio,
which is total debt divided by total equity. The gearing
at the end of the reporting period was as follows:

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

49. Other Statutory Information

a. ) The Company does not have any Benami

property, where any proceeding has been
initiated or pending against the company for
holding any Benami property.

b. ) The Company do not have any charges or

satisfaction which is yet to be registered with
ROC beyond the statutory period.

c. ) The Company have not traded or invested in

Crypto currency or Virtual Currency during
the financial year.

d. ) The Company has not advanced or loaned or

invested funds to any other person(s) or
entity(ies), including foreign entities

(Intermediaries) with the understanding that
the Intermediary shall:

I. directly or indirectly lend or invest in
other persons or entities identified in
any manner whatsoever by or on
behalf of the Funding Party (Ultimate
Beneficiaries) or

II. provide any guarantee, security or the
like to or on behalf of the Ultimate
Beneficiaries

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

I. directly or indirectly lend or invest in
other persons or entities identified in
any manner whatsoever by or on
behalf of the Funding Party (Ultimate
Beneficiaries) or

II. provide any guarantee, security or the
like on behalf of the ultimate
beneficiaries

f.) The Company is in compliance with the number
of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017 (as
amended).

g. ) 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.

h. ) The Company has not revalued its property,

plant and equipment (including right-of-use
assets) or intangible assets or both during the
current or previous year.

i. ) The Company has no transactions with struck

off companies.

j. ) The company have not been declared willful

defaulter by any banks or any other financial

institution at any time during the financial
year.

k. ) The company has utilized the borrowings

from banks & financial institutions for
specific purpose for which it was taken during
the year.

l. ) The company has been sanctioned working

capital limit in excess of Rs. five crores in
aggregate, at any point of time during the year
from bank on the basis of security of current
assets. The quarterly return/statement filed by
company with the banks are in agreement with
the books of account of the company of the
respective quarters.

50. Subsequent Event

a.) The Board of Directors have recommended
Final Dividend of 100% i.e. Rs. 2.00 per
equity share for the financial year 2024-25,
subject to the approval of the Shareholders of
the company in the ensuing Annual General
Meeting.

As per our report of even date attached

For S S KOTHARI MEHTA & CO. LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No:000756N/N500441

Sd/- Sd/-

M.K.Dhanuka Rahul Dhanuka

Chairman ManagingDirector

DIN : 00628039 DIN : 00150140

Sd/- Sd/- Sd/-

Jalaj Soni V.K.Bansal Jitin Sadana

Partner Chief Financial Officer Company Secretary

Membership No: 528799 (M.No. : 86263) (FCS No. : F 7612)

Place: Gurugram
Dated: 16^thMay, 2025

---

Mar 31, 2024

The Board of Directors of the Company in its meeting held on 1st November 2022, had approved the proposal for Buy Back of 10,00,000 (Ten Lacs Only) Equity Shares of the Company for an amount of Rs.85 Crores (Rupees Eighty Five Crore only) excluding transaction costs at a price of Rs. 850/- (Rupees Eight Hundred Fifty only) per Equity Share, through the tender offer route. Pursuant to the above, the Company had bought back its 10,00,000 (Ten Lacs only) fully paid-up equity shares, representing 2.15% of the total issued capital and extinguished those Equity Shares on 17th January 2023. Consequently, Paid up Share Capital had been reduced by Rs.20,00,000 (Rupees Twenty lacs only)

The aggregate number of equity shares bought back during a period of five financial years immediately preceding the financial year ended 31 March 2024 is 35 Lacs equity shares (31 March 2023: 35 Lacs equity shares) b. Terms/Rights attached to Issued Equity Shares

1 The Company has only one class of Equity Shares having at par value of ?2/- per share. Each Equity share is entitled to one vote.

2 In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

3 The distribution will be in proportion to the number of Equity Shares held by the shareholders.

36. EMPLOYEE BENEFITS

The company participates in defined contribution and benefit schemes, the funded assets of which are held in separately administered funds. For defined contribution schemes the amount charged to the statements of profit & loss is the total of contributions payable in the year.

a. Defined Contribution Plans

The Company has Defined Contribution Plans for postemployment benefits namely Provident Fund, Superannuation Fund and National Pension Scheme, which are administered by appropriate Authorities.

The Company contributes to a Government administered Provident Fund, Employees'' Deposit Linked Insurance Scheme and Employee Pension Scheme, on behalf of its employees and has no further obligation beyond making its contribution.

The Superannuation Fund and National Pension Scheme applicable to certain employees is a Defined Contribution Plan as the Company contributes to these Schemes which are administered by an Insurance Company and has no

further obligation beyond making the payment to the Insurance Company.

The Company contributes to State Plans namely Employees'' State Insurance Fund and has no further obligation beyond making the payment to them.

The Company''s contributions to the above funds are charged to revenue every year.

The company has recognized an expense of ^ 533.11 Lakhs (Previous year ^ 411.45 Lakhs) towards the defined contribution plans.

b. Defined Benefit Plans

In accordance with the payment of Gratuity Act, 1972, the Company has a Defined Benefit Plan namely "Gratuity Plan” covering its employees. The Gratuity scheme is funded through Group Gratuity-cum-Life Assurance Scheme and the liability for the Gratuity plan is provided based on an actuarial valuation at the year-end. Remeasurement as a result of experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.

X. Method and assumption related terms

1) Discount Rate: - Discount rate is the rate which is used to discount future benefit cash flows to determine the present value of the defined benefit obligation at the valuation date. The rate is based on the prevailing market yields of high quality corporate bonds at the valuation date for the expected term of the obligation. In countries where there are no such bonds, the market yields at the valuation date on government bonds for the expected term is used.

2) Salary escalation Rate: - The rate at which salaries are expected to escalate in future. It is used to determine the benefit based on salary at the date of separation.

3) Attrition Rate: - The reduction in staff/employees of a company through normal means, such as retirement and resignation. This is natural in any business and industry.

4) Mortality Rate: - Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.

5) Projected Unit credit method: - The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The Projected Unit Credit Method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations).

c. Other Long term employee benefits

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of profit and loss.

The company has recognized an expense of ^ 114.25 Lakhs (Previous year ^ 235.09 Lakhs) towards the compensated absences

37. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (f |n |acs)
S.No.	Particular	As at March 31, 2024	As at March 31, 2023
I	Contingent Liabilities
a.	Claims against the Company not acknowledged as debt*
	-Income Tax	490.86	490.86
	-Excise Duty (Net of Expenses recognized of Rs. 70.70 Lakhs)	637.81	637.81
	-Service Tax (Net of Expenses recognized of Rs. 65.20 Lakhs)	111.05	111.05
	-Sales Tax	138.15	138.15
	-Goods and Service Tax	1,299.91	7.54
	-Litigation pending in consumer forum	102.65	135.21
	-Other**	2,980.00	2,980.00
b.	Guarantees excluding financial guarantees
	-Bank Guarantees	22.62	25.62
c.	Other money for which the Company is contingently liable
	-''C'' forms pending against central sales tax	0.01	0.01

S.No.	Particular	As at March 31,2024	As at March 31, 2023
d.	There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated February 28, 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. Due to pending decision on the subject review petition and directions from EPFO, the impact for the past period, if any, was not ascertainable and consequently no effect was given in the accounts.
II	Commitments
	-Estimated amount of contracts remaining to be executed on capital account and not provided for {Net of advances ^ 110.32 Lakhs (March 31,2023 : ^ 442.50 Lakhs)}	573.98	5,980.32

* Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/ decisions pending with various forums / authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company also believes that the above issues, when finally settled are not likely to have any significant impact on the financial position of the Company.

** Company has received Refund of Terminal Excise Duty (TED) during FY 2015-16 & FY 2016-17 from Director General of Foreign Trade (DGFT). In November-2019, company has received show cause notice from DGFT for recovery of erroneous payment of Terminal Excise Duty. Against this notice, company has filed writ before Gujarat High Court and the court has stayed the recovery of the notice. As on now the matter is pending before Gujarat High Court.

38. LEASES

The Company''s lease asset primarily consists of leases for offices, warehouses and Vehicles having the various lease terms. Effective April 1,2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1,2019 using the modified retrospective method. Consequently, the cumulative effect of initially applying the standard recognised at the date of initial application, with right-of-use asset recognised at an amount equal to the lease liability, adjusted by the prepaid lease rent.

c. The company has elected Para 6 of Ind AS-116 for short-term leases & recognised lease expense of ^ 26.59 Lakhs (Previous Year ^ 69.99 Lakhs) associated with these lease.

d. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in the Balance Sheet at the date of initial application.

e. The Maturity analysis of lease liabilities are disclosed in Note 43(b)

39. SEGMENT INFORMATION

The company has evaluated the applicability of segment reporting and has concluded that the company has only one primary business segment i.e. Agro Chemicals and one geographical reportable segment i.e. Operations mainly within India. The overall performance is reviewed by the Chairman, Vice Chairman & Managing Director, Joint Managing Director and CFO, which have been identified as the CODM (Chief operating decision makers) by the Company.

Thus the segment revenue, expenses, results, assets and liabilities are same as reflected in the financial statements as at and for the year ended 31 March, 2024.

• The above dividend paid does not include Rs. 102.36 Lakhs paid to close members & entities controlled by close members of Mr. Arun Kumar Dhanuka.

• The above transactions do not include property tax of Rs. 23.01 Lakhs. (March 31, 2023 Rs. Nil) paid to Municipal Corporation on behalf of Mridul Dhanuka HUF. The same has been reimbursed by Mridul Dhanuka HUF to the company.

• The above amount of services received - rent includes property tax reimbursement of Rs. 3.79 Lakhs (March 31,2023 Rs. 3.39 Lakhs)

• Out of total amount paid under contribution towards CSR, payment amounting to Rs. Nil (Previous year Rs. 80.79 Lakhs) has been made to M/s Kalptaru Real Estate for construction of school building which is in the name of M/s Chiranji Lal Dhanuka Charitable Trust.

• The above amount of services rendered - rent is net of credit note issued amounting to Nil to IKO Overseas. (March 31,2023 Rs. 0.14 Lakhs)

• The Board of Directors of Dhanuka Agritech Limited in its meeting held on 02nd February, 2021 had approved the dissolution/ liquidation of this wholly owned subsidiary Dhanuka Agri-Solutions Private Limited (DASPL). The RJSC (Office of the Registrar of Joint Stock Companies and Firms), Bangladesh registered the returns of winding-up on 10th May 2023. DASPL stands dissolved/liquidated on 10th August 2023. Outstanding loan balance of Rs. 13.42 lakhs and investment of Rs. 0.09 lakhs have been consequently written off in FY 22-23.

• The above amount of dividend paid does not include final dividend of FY 2022-23 paid to Sh. Arun Kumar Dhanuka. The dividend was paid before transmission of his shares to his legal heirs.

• As there were no operations/activities started in Dhanuka Chemicals Private Limited (DCPL) since its incorporation, the Board of Directors has approved to liquidate/strike off DCPL in its meeting held on 7th November, 2023. The Strike off application of DCPL has been filed in the Registrar of the Companies (ROC).

c. Terms and conditions of transactions with related parties

All the transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The company has not recorded any impairment of receivables relating to amounts owed by related parties except as mentioned above for the year ended March 31,2024 and March 31,2023.

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

The carrying amounts of cash and cash equivalents, bank balance other than cash and cash equivalents, trade receivables, Short term loans, trade payables, short term borrowings and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature. Fair value for security deposits (other than perpetual security deposits) has been presented in the above table. Fair value for all other non-current financial assets and liabilities is equivalent to the amortized cost, interest rate on them is equivalent to the market rate of interest.

III. Fair Value hierarchy

Level 1 - This includes financial instruments measured using quoted prices (Unadjusted) in active markets for identical assets and liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

IV. Valuation techniques used to determine fair value

Level 1 - Financial assets categorized in Level 1, are fair valued based on market data as at reporting date.

Level 2 -The fair valuation of investments categorized in Level 2 has been determined on the basis of independent valuation done by respective funds.

43. FINANCIAL RISK MANAGEMENT

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The company''s board of directors has the overall responsibility for the management of these risks. The company has the risk management policies and systems in place and are reviewed regularly to reflect changes in market conditions and the company''s activities. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The company''s audit committee oversees how management monitors compliance with the risk management policies and procedures, and reviews the adequacy of risk management framework in relation to the risks faced by the company.

a.) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the company. Credit risk arises from the operating activities primarily from trade receivables and from its financing activities including cash and cash equivalents, deposits with banks, Investments and other financial instruments. The carrying amount of financial assets represents the maximum credit exposure and is as follows:

Trade Receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. The company has established a credit policy under which each customer is analyzed individually for creditworthiness before the company''s credit terms are offered. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Credit limits are established for each customer and reviewed periodically. Any sales order exceeding those limits require approval from the appropriate authority. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience. These loss rates are adjusted by considering the available, reasonable and supportive forward looking information.

Financial assets other than Trade Receivables, Loans to corporate & others, Security Deposit and Investment in Real Estate Funds.

Credit risks from financial transactions are managed independently by finance department. For banks and financial institutions, the company has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high credit rated banks and financial institutions. The company had no other financial instrument that represent a significant concentration of credit risk. So there is no impairment in these financial assets.

b.) Liquidity Risk

Liquidity risks result from the possible inability of the company to meet current or future payment obligations due to lack of cash or cash equivalents. The liquidity risk is assessedand managed by the finance department as a part of day to day and medium term liquidity planning.

The company holds sufficient liquidity to ensure the fulfilment of all planned payment obligations at maturity. The company''s liquidity risk policy is to maintain sufficient liquidity reserve at all times based on cash flow projections to meet payment obligation when it falls due. The primary source of liquidity is cash generated from operations.

Liquid assets are held mainly in the form of bank deposits and mutual fund investments. The company maintain flexibility in funding by maintaining availability under cash credit lines set up with banks.

The table below analyze the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities essential for an understanding of timing of cash flows.

c.) Market Risk

i. Currency Risk

Foreign currency risks for the company is from changes in exchange rates and the related changes in the value of financial instruments in the functional currency (INR). The company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to US Dollar. The company''s exposure to changes in foreign currency other than USD is not material.

Note: This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company does not have any major borrowings as on balance sheet date. So there is no material interest risk relating to the company''s financial liabilities.

iii. Price Risk

The company is mainly exposed to the price risk due to its investment in mutual funds and classified in the

balance sheet as fair value through profit and loss. Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.

There is no material risk relating to the company''s equity investments which are detailed in note 8. The company''s equity investments majorly comprise of strategic investments rather than trading purposes.

44. CAPITAL MANAGEMENT

The company manages its capital to ensure that the company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance. Further its objective is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development.

48. 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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

49. Other Statutory Information

a. ) The Company does not have any Benami property, where any proceeding has been initiated or pending against the

company for holding any Benami property.

b. ) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

period.

c. ) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

d. ) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

e. ) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

with the understanding (whether recorded in writing or otherwise) that the Company shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the l ike on behalf of the ultimate beneficiaries

f. ) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies

Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

g. ) 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 I ncome Tax Act, 1961.

h. ) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets

or both during the current or previous year.

i. ) The Company has no transactions with struck off companies.

j. ) The company have not been declared willful defaulter by any banks or any other financial institution at any time

during the financial year.

k. ) The company has utilized the borrowings from banks & financial institutions for specific purpose for which it was

taken during the year.

l.) The company has been sanctioned working capital limit in excess of Rs. five crores in aggregate, at any point of time during the year from bank on the basis of security of current assets. The quarterly return/statement filed by company with the banks are in agreement with the books of account of the company of the respective quarters.

50. Subsequent Event

a.) The Board of Directors have recommended Final Dividend of 300% i.e. Rs. 6.00 per equity share for the financial year 2023-24, subject to the approval of the Shareholders of the company in the ensuing Annual General Meeting.

---

Mar 31, 2023

a. Terms/Rights attached to Issued Equity Shares

1. The Company has only one class of Equity Shares having at par value of ''2/- per share. Each Equity share is entitled to one vote.

2. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

3. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

35. EMPLOYEE BENEFITS

The company participates in defined contribution and benefit schemes, the funded assets of which are held in separately administered funds. For defined contribution schemes the amount charged to the statements of profit & loss is the total of contributions payable in the year.

a. Defined Contribution Plans

The Company has Defined Contribution Plans for postemployment benefits namely Provident Fund, Superannuation Fund and National Pension Scheme, which are administered by appropriate Authorities.

The Company contributes to a Government administered Provident Fund, Employees'' Deposit Linked Insurance Scheme and Employee Pension Scheme, on behalf of its employees and has no further obligation beyond making its contribution.

The Superannuation Fund and National Pension Scheme applicable to certain employees is a Defined Contribution Plan as the Company contributes to these Schemes which are administered by an Insurance Company and has no further obligation beyond making the payment to

the Insurance Company.

The Company contributes to State Plans namely Employees'' State Insurance Fund and has no further obligation beyond making the payment to them.

The Company''s contributions to the above funds are charged to revenue every year.

The company has recognized an expense of '' 411.45 lacs (Previous year '' 405.08 lacs) towards the defined contribution plans.

b. Defined Benefit Plans

In accordance with the payment of Gratuity Act, 1972, the Company has a Defined Benefit Plan namely "Gratuity Plan” covering its employees. The Gratuity scheme is funded through Group Gratuity-cum-Life Assurance Scheme and the liability for the Gratuity plan is provided based on an actuarial valuation at the year-end. Remeasurement as a result of experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.

X. Method and assumption related terms

1) Discount Rate: - Discount rate is the rate which is used to discount future benefit cash flows to determine the present value of the defined benefit obligation at the valuation date. The rate is based on the prevailing market yields of high quality corporate bonds at the valuation date for the expected term of the obligation. In countries where there are no such bonds, the market yields at the valuation date on government bonds for the expected term is used.

2) Salary escalation Rate: - The rate at which salaries are expected to escalate in future. It is used to determine the benefit based on salary at the date of separation.

3) Attrition Rate: - The reduction in staff/employees of a company through normal means, such as retirement and resignation. This is natural in any business and industry.

4) Mortality Rate: - Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.

5) Projected Unit credit method: - The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The Projected Unit Credit Method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations).

c. Other Long term employee benefits

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of profit and loss.

The company has recognized an expense of '' 235.09 Lacs (Previous year '' 172.47 Lacs) towards the compensated absences

36. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)			('' In lacs)
S.No.	Particular	As at March 31, 2023	As at March 31, 2022
I	Contingent Liabilities
a.	Claims against the company not acknowledged as debt1
	-Income Tax	490.86	490.86
	-Excise Duty (Net of Expenses recognized of Rs. 70.70 Lacs)	637.81	637.81
	-Service Tax (Net of Expenses recognized of Rs. 65.20 Lacs)	111.05	111.05
	-Sales Tax	138.15	138.15
	-Goods and Service Tax	7.54	7.54
	-Litigation pending in consumer forum	135.21	124.51
	-Other2	2,980.00	2,980.00
b.	Guarantees excluding financial guarantees
	-Bank Guarantees	25.62	8.00
c.	Other money for which the company is contingently liable
	-''C'' forms pending against central sales tax	0.01	0.01
d.	There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated February 28, 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. Due to pending decision on the subject review petition and directions from EPFO, the impact for the past period, if any, was not ascertainable and consequently no effect was given in the accounts.
II	Commitments
	-Estimated amount of contracts remaining to be executed on capital account and not provided for {Net of advances '' 442.50 Lacs (March 31,2022 : '' 443.85 Lacs)}	5,980.32	2,070.89

c. The company has elected Para 6 of Ind AS-116 for short-term leases & recognised lease expense of '' 69.99 Lacs (Previous Year '' 58.5 Lacs) associated with these lease.

d. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in the Balance Sheet at the date of initial application.

e. The Maturity analysis of lease liabilities are disclosed in Note 42(b)

38. SEGMENT INFORMATION

The company has evaluated the applicability of segment reporting and has concluded that the company has only one primary business segment i.e. Agro Chemicals and one geographical reportable segment i.e. Operations mainly within India. The overall performance is reviewed by the Chairman, Managing Director, Joint Managing Director and CFO, which has been identified as the CODM (Chief operating decision makers) by the Company.

Thus the segment revenue, expenses, results, assets and liabilities are same as reflected in the financial statements as at and for the year ended 31 March, 2023.

Note-Figures are shown net of GST, wherever applicable.

• The above post-employment benefits exclude gratuity which cannot be separately identified from the composite amount advised by the actuary.

• The above amount of services received - rent includes property tax reimbursement of Rs. 3.39 Lacs. (March 31,2022 Nil)

• Out of total amount paid under contribution towards CSR, payment amounting to Rs. 80.79 Lacs (Previous year Rs. 228.57 Lacs) has been made to M/s Kalptaru Real Estate for construction of school building which is in the name of M/s Chiranji Lal Dhanuka Charitable Trust.

• The above amount of services rendered - rent is net of credit note issued amounting to Rs. 0.14 Lacs to IKO Overseas. (March 31,2022 Nil)

• The Board of Directors of Dhanuka Agritech Limited in its meeting held on 02 nd February, 2021 had approved the dissolution/ liquidation of this wholly owned subsidiary Dhanuka Agri-Solutions Private Limited (DASPL). The RJSC (Office of the Registrar of Joint Stock Companies and Firms), Bangladesh registered the returns of winding-up on 10th May 2023. DASPL shall be deemed to be dissolved on the expiration of three months from the above registration i.e. 10th August 2023. Outstanding loan balance of Rs. 13.42 Lacs and investment of Rs. 0.09 Lacs have been consequently written off.

C. Terms and conditions of transactions with related parties

All the transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The company has not recorded any impairment of receivables relating to amounts owed by related parties except as mentioned above for the year ended March 31,2023 and March 31,2022.

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

The carrying amounts of cash and cash equivalents, bank balance other than cash and cash equivalents, trade receivables, Short term loans, trade payables, short term borrowings and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature. Fair value for security deposits (other than perpetual security deposits) has been presented in the above table. Fair value for all other non-current financial assets and liabilities is equivalent to the amortized cost, interest rate on them is equivalent to the market rate of interest.

III. Fair Value hierarchy

Level 1 - This includes financial instruments measured using quoted prices (Unadjusted) in active markets for identical assets and liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

IV. Valuation techniques used to determine fair value

Level 1 - Financial assets categorized in Level 1, are fair valued based on market data as at reporting date.

Level 2 - The fair valuation of investments categorized in Level 2 has been determined on the basis of independent valuation done by respective funds.

42. FINANCIAL RISK MANAGEMENT

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The company''s board of directors has the overall responsibility for the management of these risks. The company has the risk management policies and systems in place and are reviewed regularly to reflect changes in market conditions and the company''s activities. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The company''s audit committee oversees how management monitors compliance with the risk management policies and procedures, and reviews the adequacy of risk management framework in relation to the risks faced by the company.

a.) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the company. Credit risk arises from the operating activities primarily from trade receivables and from its financing activities including cash and cash equivalents, deposits with banks, Investments and other financial instruments. The carrying amount of financial assets represents the maximum credit exposure and is as follows:

Trade Receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. The company has established a credit policy under which each customer is analyzed individually for creditworthiness before the company''s credit terms are offered. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Credit limits are established for each customer and reviewed periodically. Any sales order exceeding those limits require approval from the appropriate authority. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience. These loss rates are adjusted by considering the available, reasonable and supportive forward looking information.

Financial assets other than Trade Receivables, Loans to corporate & others, Security Deposit and Investment in Real Estate Funds.

Credit risks from financial transactions are managed independently by finance department. For banks and financial institutions, the company has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high credit rated banks and financial institutions. The company had no other financial instrument that represent a significant concentration of credit risk. So there is no impairment in these financial assets.

b.) Liquidity Risk

Liquidity risks result from the possible inability of the company to meet current or future payment obligations due to lack of cash or cash equivalents. The liquidity risk is assessed and managed by the finance department as a part of day to day and medium term liquidity planning.

The company holds sufficient liquidity to ensure the fulfillment of all planned payment obligations at maturity. The company''s liquidity risk policy is to maintain sufficient liquidity reserve at all times based on cash flow projections to meet payment obligation when it falls due. The primary source of liquidity is cash generated from operations.

Liquid assets are held mainly in the form of bank deposits and mutual fund investments. The company maintain flexibility in funding by maintaining availability under cash credit lines set up with banks.

The table below analyze the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities essential for an understanding of timing of cash flows.

c.) Market Risk

i. Currency Risk

Foreign currency risks for the company is from changes in exchange rates and the related changes in the value of financial instruments in the functional currency (INR). The company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to US Dollar. The company''s exposure to changes in foreign currency other than USD is not material.

The carrying amounts of the Company''s unhedged foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Note: This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company does not have any major borrowings as on balance sheet date. So there is no material interest risk relating to the company''s financial liabilities.

iii. Price Risk

The company is mainly exposed to the price risk due to its investment in mutual funds and classified in the balance sheet as fair value through profit and loss. Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.

There is no material risk relating to the company''s equity investments which are detailed in note 7. The company''s equity investments majorly comprise of strategic i nvestments rather than trading purposes.

43. CAPITAL MANAGEMENT

The company manages its capital to ensure that the company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance. Further its objective is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development.

47. 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 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements

48. Other Statutory Information

a.) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

b. ) The Company do not have any charges or satisfaction

which is yet to be registered with ROC beyond the statutory period.

c. ) The Company have not traded or invested in Crypto

currency or Virtual Currency during the financial year.

d. ) The Company has not advanced or loaned or invested

funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

e. ) The Company has not received any fund from any

person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

f. ) The Company is in compliance with the number of

layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

g. ) 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.

h. ) The Company has not revalued its property, plant and

equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

i. ) The company do not have any transactions with

companies stuck off.

j. ) The company have not been declared willful defaulter

by any banks or any other financial institution at any time during the financial year.

k. ) The company has utilized the borrowings from banks &

financial institutions for specific purpose for which it was taken during the year.

l. ) The company has been sanctioned working capital

limit in excess of Rs. five crores in aggregate, at any point of time during the year from bank on the basis of security of current assets. The quarterly return /statement fled by company with the banks are in agreement with the books of account of the company of the respective quarters.

49. Subsequent Event

a.) The Board of Directors have recommended Final Dividend of 100% i.e. Rs. 2.00 per equity share for the financial year 2022-23, subject to the approval of the Shareholders of the company in the ensuing Annual General Meeting.

50. Previous year figures have been regrouped/reclassifed, wherever necessary. However, impact of these reclassifications, if any, are not material.

1

Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/ decisions pending with various forums / authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company also believes that the above issues, when Anally settled are not likely to have any significant impact on the financial position of the Company.

2

Company has received Refund of Terminal Excise Duty (TED) during FY 2015-16 & FY 2016-17 from Director General of Foreign Trade (DGFT). In November-2019, company has received show cause notice from DGFT for recovery of erroneous payment of Terminal Excise Duty. Against this notice, company has filed writ before Gujarat High Court and the court has stayed the recovery of the notice. As on now the matter is pending before Gujarat High Court.

37. LEASES

The Company''s lease asset primarily consists of leases for offices, warehouses and Vehicles having the various lease terms. Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1,2019 using the modified retrospective method. Consequently, the cumulative effect of initially applying the standard recognised at the date of initial application, with right-of-use asset recognised at an amount equal to the lease liability, adjusted by the prepaid lease rent.

---

Mar 31, 2022

"*The Board of Directors of the Company in its Meeting held on 22 nd July, 2020, has approved the proposal for Buyback of 10,00,000 (Ten Lakhs) Equity Shares of the Company for an amount not exceeding '' 100.00 Crores (Rupees One Hundred Crore Only) at a maximum price not exceeding '' 1,000/- (Rupees One Thousand only) per Equity Share, which was further approved by the Members at the 35th Annual General Meeting of the Company held on 15th September, 2020. The Buy Back Committee in its Meeting held on 16th September, 2020 determined the Buy Back Price of '' 1,000/- (Rupees One Thousand only) per Equity Share.

Pursuant to above, Offer for Buy Back of Equity Shares of the Company were opened from 20th October, 2020 to 3rd November, 2020. The Company bought back 10,00,000 (Ten Lakhs) Fully Paid-up Equity Shares of the Face Value of '' 2 each from Eligible Shareholders of the Company as on September 28, 2020 i.e. the Record Date and accordingly the Company has extinguished 10,00,000 (Ten Lakhs) Equity Shares on November 13, 2020 in terms of SEBI (Buy Back of Securities) Regulations, 2018. Consequent to above Buy Back, Paid up Share Capital of the Company have been reduced by '' 20,00,000/-(Twenty Lakhs Only)"

b. Terms/Rights attached to Issued Equity Shares

1 The Company has only one class of Equity Shares having at par value of '' 2/- per share. Each Equity share is entitled to one vote.

2 In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

3 The distribution will be in proportion to the number of Equity Shares held by the shareholders.

35. EMPLOYEE BENEFITS

The company participates in defined contribution and benefit schemes, the funded assets of which are held in separately administered funds. For defined contribution schemes the amount charged to the statements of profit & loss is the total of contributions payable in the year.

a. Defined Contribution Plans

The Company has Defined Contribution Plans for postemployment benefits namely Provident Fund, Superannuation Fund and National Pension Scheme, which are administered by appropriate Authorities.

The Company contributes to a Government administered Provident Fund, Employees'' Deposit Linked Insurance Scheme and Employee Pension Scheme, on behalf of its employees and has no further obligation beyond making its contribution.

The Superannuation Fund and National Pension Scheme applicable to certain employees is a Defined Contribution Plan as the Company contributes to these Schemes which are administered by an Insurance Company and has no further obligation beyond making the payment to

the Insurance Company.

The Company contributes to State Plans namely Employees'' State Insurance Fund and has no further obligation beyond making the payment to them.

The Company''s contributions to the above funds are charged to revenue every year.

The company has recognized an expense of '' 405.08 lacs (Previous year '' 387.14 lacs) towards the defined contribution plans.

b. Defined Benefit Plans

In accordance with the payment of Gratuity Act, 1972, the Company has a Defined Benefit Plan namely "Gratuity Plan” covering its employees. The Gratuity scheme is funded through Group Gratuity-cum-Life Assurance Scheme and the liability for the Gratuity plan is provided based on an actuarial valuation at the year-end. Remeasurement as a result of experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.

X. Method and assumption related terms

1) Discount Rate: - Discount rate is the rate which is used to discount future benefit cash flows to determine the present value of the defined benefit obligation at the valuation date. The rate is based on the prevailing market yields of high quality corporate bonds at the valuation date for the expected term of the obligation. In countries where there are no such bonds, the market yields at the valuation date on government bonds for the expected term is used.

2) Salary escalation Rate: - The rate at which salaries are expected to escalate in future. It is used to determine the benefit based on salary at the date of separation.

3) Attrition Rate: - The reduction in staff/employees of a company through normal means, such as retirement and resignation. This is natural in any business and industry.

4) Mortality Rate: - Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.

5) Projected Unit credit method: - The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The Projected Unit Credit Method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations).

c. Other Long term employee benefits

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of profit and loss.

The company has recognized an expense of '' 172.47 lacs (Previous year '' 226.38 lacs) towards the compensated absences

36. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (r |n lacs)
S.No.	Particular	As at March 31, 2022	As at March 31,2021
I	Contingent Liabilities
a.	Claims against the company not acknowledged as debt1
	-Income Tax	490.86	168.64
	-Excise Duty (Net of Expenses recognized of Rs. 70.70 lacs)	637.81	637.81
	-Service Tax (Net of Expenses recognized of Rs. 65.20 lacs)	111.05	111.05
	-Sales Tax	138.15	138.15
	-Goods and Service Tax	7.54	0.00
	-Litigation pending in consumer forum	124.51	99.91
	-Other2	2980.00	2980.00
b.	Guarantees excluding financial guarantees
	-Bank Guarantees	8.00	5.00
c.	Other money for which the company is contingently liable
	-''C'' forms pending against central sales tax	0.01	0.01
d.	There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated February 28, 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. Due to pending decision on the subject review petition and directions from EPFO, the impact for the past period, if any, was not ascertainable and consequently no effect was given in the accounts.
II	Commitments
	-Estimated amount of contracts remaining to be executed on capital account and not provided for {Net of advances '' 443.85 lacs (March 31,2021 : '' 43.45 lacs)}	2070.89	224.32

c. The company has elected Para 6 of Ind AS-116 for short-term leases & recognised lease expense of '' 58.50 lacs (Previous Year '' 241.59 lacs) associated with these lease.

d. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in the Balance Sheet at the date of initial application.

e. The Maturity analysis of lease liabilities are disclosed in Note 42(b)

38. SEGMENT INFORMATION

The company has evaluated the applicability of segment reporting and has concluded that the company has only one primary business segment i.e. Agro Chemicals and one geographical reportable segment i.e. Operations mainly within India. The overall performance is reviewed by the Chairman, Managing Director, COO and CFO, which has been identified as the CODM (Chief operating decision makers) by the Company.

Thus the segment revenue, expenses, results, assets and liabilities are same as reflected in the financial statements as at and for the year ended 31 March, 2022.

Note - Figures are shown net of GST, wherever applicable.

* The above post-employment benefits exclude gratuity which cannot be separately identified from the composite amount advised by the actuary.

** Out of total amount, payment amounting to Rs. 228.57 Lakhs (Previous year '' 130.00 lacs) has been made to M/s Kalptaru Real Estate for construction of school building which is in the name of M/s Chiranji Lal Dhanuka Charitable Trust.

# Dhanuka Agri-Solutions Pvt. Ltd., Wholly Owned Subsidiary of Dhanuka Agritech Ltd. was incorporated on 17th July, 2011 and operations have not yet been started. Further the Board of Directors of Dhanuka Agritech Limited in its meeting held on 02nd February, 2021 has approved the dissolution/ liquidation of this wholly owned subsidiary. So this amount is not recoverable and accordingly provision for the same amount has been made in this financial year.

c. Terms and conditions of transactions with related parties

All the transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The company has not recorded any impairment of receivables relating to amounts owed by related parties except as mentioned above for the year ended March 31, 2022 and March 31, 2021.

40. THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT,2006

The information regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company:

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

The carrying amounts of cash and cash equivalents, bank balance other than cash and cash equivalents, trade receivables, Short term loans, trade payables, short term borrowings and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature. Fair value for security deposits (other than perpetual security deposits) has been presented in the above table. Fair value for all other non-current financial assets and liabilities is equivalent to the amortized cost, interest rate on them is equivalent to the market rate of interest.

III. Fair Value hierarchy

Level 1 - This includes financial instruments measured using quoted prices (Unadjusted) in active markets for identical assets and liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

IV. Valuation techniques used to determine fair value

Level 1 - Financial assets categorized in Level 1, are fair valued based on market data as at reporting date.

Level 2 - The fair valuation of investments categorized in Level 2 has been determined on the basis of independent valuation done by respective funds.

42. FINANCIAL RISK MANAGEMENT

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The company''s board of directors has the overall responsibility for the management of these risks. The company has the risk management policies and systems in place and are reviewed regularly to reflect changes in market conditions and the company''s activities. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The company''s audit committee oversees how management monitors compliance with the risk management policies and procedures, and reviews the adequacy of risk management framework in relation to the risks faced by the company.

a.) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the company. Credit risk arises from the operating activities primarily from trade receivables and from its financing activities including cash and cash equivalents, deposits with banks, Investments and other financial instruments. The carrying amount of financial assets represents the maximum credit exposure and is as follows:

Trade Receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. The company has established a credit policy under which each customer is analyzed individually for creditworthiness before the company''s credit terms are offered. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Credit limits are established for each customer and reviewed periodically. Any sales order exceeding those limits require approval from the appropriate authority. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience. These loss rates are adjusted by considering the available, reasonable and supportive forward looking information.

Financial assets other than Trade Receivables, Loans to corporate & others, Security Deposit and Investment in Real Estate Funds.

Credit risks from financial transactions are managed independently by finance department. For banks and financial institutions, the company has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high credit rated banks and financial institutions. The company had no other financial instrument that represent a significant concentration of credit risk. So there is no impairment in these financial assets.

b.) Liquidity Risk

Liquidity risks result from the possible inability of the company to meet current or future payment obligations due to lack of cash or cash equivalents. The liquidity risk is assessed and managed by the finance department as a part of day to day and medium term liquidity planning.

The company holds sufficient liquidity to ensure the fulfillment of all planned payment obligations at maturity. The company''s liquidity risk policy is to maintain sufficient liquidity reserve at all times based on cash flow projections to meet payment obligation when it falls due. The primary source of liquidity is cash generated from operations.

Liquid assets are held mainly in the form of bank deposits and mutual fund investments. The company maintain flexibility in funding by maintaining availability under cash credit lines set up with banks.

The table below analyze the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities essential for an understanding of timing of cash flows.

c.) Market Risk

i. Currency Risk

Foreign currency risks for the company is from changes in exchange rates and the related changes in the value of financial instruments in the functional currency (INR). The company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to US Dollar. The company''s exposure to changes in foreign currency other than USD is not material.

To mitigate the currency fluctuation, receivables and payables in foreign currencies which arises from export and import of goods are hedged through forward exchange contracts.

Note: This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

ii. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company has surplus cash position and does not have any major borrowings as on balance sheet date. So there is no material interest risk relating to the company''s financial liabilities.

iii. Price Risk

The company is mainly exposed to the price risk due to its investment in mutual funds and classified in the balance sheet as fair value through profit and loss. Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.

There is no material equity risk relating to the company''s equity investments which are detailed in note 7. The company''s equity investments majorly comprise of strategic investments rather than trading purposes.

43. CAPITAL MANAGEMENT

The company manages its capital to ensure that the company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance. Further its objective is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development.

47. 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 1,2022, 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.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 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

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognize a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements

Ind AS 116 -Annual Improvements to Ind AS

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.

48. Other Statutory Information

a. ) The Company does not have any Benami property,

where any proceeding has been initiated or pending against the company for holding any Benami property.

b. ) The Company do not have any charges or satisfaction

which is yet to be registered with ROC beyond the statutory period.

c. ) The Company have not traded or invested in Crypto

currency or Virtual Currency during the financial year.

d. ) The Company has not advanced or loaned or invested

funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

e. ) The Company has not received any fund from any

person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

I. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by

or on behalf of the Funding Party (Ultimate Beneficiaries) or

II. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

f. ) The Company is in compliance with the number of

layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

g. ) 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.

h. ) The Company has not revalued its property, plant and

equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

i. ) The company do not have any transactions with

companies stuck off.

j. ) The company have not been declared willful defaulter

by any banks or any other financial institution at any time during the financial year.

k. ) The company has utilized the borrowings from banks &

financial institutions for specific purpose for which it was taken during the year.

l. ) The company has been sanctioned working capital

limit in excess of Rs. five crore in aggregate, at any point of time during the year from bank on the basis of security of current assets. The quarterly return/statement fled by company with the banks are in agreement with the books of account of the company of the respective quarters.

49. Subsequent Event

a.) The Board of Directors have recommended Final Dividend of 300% i.e. Rs. 6.00 per equity share for the financial year 2021-22, subject to the approval of the Shareholders of the company in the ensuing Annual General Meeting.

50. Previous year figures have been regrouped/reclassifed, wherever necessary. However, impact of these reclassifications, if any, are not material.

1

Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/ decisions pending with various forums / authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company also believes that the above issues, when Anally settled are not likely to have any significant impact on the financial position of the Company.

2

Company has received Refund of Terminal Excise Duty (TED) during FY 2015-16 & FY 2016-17 from Director General of Foreign Trade (DGFT). In November-2019, company has received show cause notice from DGFT for recovery of erroneous payment of Terminal Excise Duty. Against this notice, company has filed writ before Gujarat High Court and the court has stayed the recovery of the notice. As on now the matter is pending before Gujarat High Court.

37. LEASES

The Company''s lease asset primarily consist of leases for offices, warehouses and Vehicles having the various lease terms. Effective April 1, 2019, the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Consequently, the cumulative effect of initially applying the standard recognised at the date of initial application, with right-of-use asset recognised at an amount equal to the lease liability, adjusted by the prepaid lease rent The adoption of Ind AS 116 did not have any material impact on Statement of profit and loss and earnings per share.

Presentational changes:

The first-time application of Ind AS 116 as of April 1, 2019, resulted in the recognition of lease liabilities and Right-of-use assets adjusted by the amount of prepaid lease Rental.

In the Statement of Profit and Loss, the Company recognised the depreciation of the right-of-use assets and the interest expense for the lease liabilities under Ind AS 116 instead of Rent expenses for operating leases in Other Operating Expenses as per Ind AS 17.

In the Statement of Cash Flows, Ind AS 116 had a positive effect on the operating cash flow by reducing cash outflows from operating activities, while the repayment component of lease payments and the interest expense are recognised in cash outflows from financing activities.

---

Mar 31, 2018

1. EMPLOYEE BENEFITS

The company participates in defined contribution and benefit schemes, the funded assets of which are held in separately administered funds. For defined contribution schemes the amount charged to the statements of profit & loss is the total of contributions payable in the year

a. Defined Contribution Plan

The Company has Defined Contribution Plans for postemployment benefits namely Provident Fund, Superannuation Fund and National Pension Scheme, which are administered by appropriate Authorities.

The Company contributes to a Government administered Provident Fund, Employees'' Deposit Linked Insurance Scheme and Employee Pension Scheme, on behalf of its employees and has no further obligation beyond making its contribution.

The Superannuation Fund and National Pension Scheme applicable to certain employees is a Defined Contribution Plan as the Company contributes to these Schemes which are administered by an Insurance

Company and has no further obligation beyond making the payment to the Insurance Company.

The Company contributes to State Plans namely Employees'' State Insurance Fund and has no further obligation beyond making the payment to them.

The Company''s contributions to the above funds are charged to revenue every year.

The company has recognized an expense of Rs. 452.27 lacs (Previous year Rs. 419.80 lacs) towards the defined contribution plan

b. Defined Benefit Plan

In accordance with the payment of Gratuity Act, 1972, the Company has a Defined Benefit Plan namely "Gratuity Plan” covering its employees. The Gratuity scheme is funded through Group Gratuity-cum-Life Assurance Scheme and the liability for the Gratuity plan is provided based on an actuarial valuation at the year-end. Remeasurement as a result of experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.

X. Method and assumption related terms

1) Discount Rate: - Discount rate is the rate which is used to discount future benefit cash flows to determine the present value of the defined benefit obligation at the valuation date. The rate is based on the prevailing market yields of high quality corporate bonds at the valuation date for the expected term of the obligation. In countries where there are no such bonds, the market yields at the valuation date on government bonds for the expected term is used.

2) Salary escalation Rate: - The rate at which salaries are expected to escalate in future. It is used to determine the benefit based on salary at the date of separation.

3) Attrition Rate: - The reduction in staff/employees of a company through normal means, such as retirement and resignation. This is natural in any business and industry.

4) Mortality Rate: - Mortality rate is a measure of the number of deaths (in general, or due to a specific cause) in a population, scaled to the size of that population, per unit of time.

5) Projected Unit credit method: - The Projected Unit Credit Method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The Projected Unit Credit Method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations).

c. Other employee benefits

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognized in statement of profit and loss.

The company has recognized an expense of Rs. 339.13 lacs (Previous year Rs. 309.91 lacs) towards the compensated absences

*Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/ decisions pending with various forums / authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The company also believes that the above issues, when finally settled are not likely to have any significant impact on the financial position of the Company.

3. LEASES

Lease rent paid for operating leases are recognized as an expense in the Statement of Profit and Loss in the year to which it relates.

The Company has taken certain office/Go down spaces and vehicles on operating lease basis. Future lease rents and escalation (to cover inflation) in rent have been determined on the basis of agreed terms. At the expiry of the initial lease term, generally the company has an option to extend the lease for a further pre-determined period.

4. SEGMENT INFORMATION

The company has evaluated the applicability of segment reporting and has concluded that since the company has only one primary business segment i.e. Agro Chemicals and one geographical reportable segment i.e. Operations mainly within India. The overall performance is reviewed by the Chairman, Managing Director, Executive directors and CFO, which has been identified as the CODM (Chief operating decision makers) by the Company.

Thus the segment revenue, expenses, results, assets and liabilities are same as reflected in the financial statements as at and for the year ended 31 March, 2018

5. RELATED PARTY DISCLOSURES

a. Nature of Related Party Relationship I. Subsidiaries

a.) Dhanuka Agri-Solutions Pvt. Limited Wholly owned Subsidiary

II. Key Management personnel

a.) Sh. Ram Gopal Agarwal Chairman

b.) Sh. Mahendra Kumar Dhanuka Managing Director

c.) Sh. Arun Kumar Dhanuka Executive Director

d.) Sh. Rahul Dhanuka Executive Director

e.) Sh. Mridul Dhanuka Executive Director

f.) Sh. Ashish Saraf Executive Director

g.) Sh. Vinod Kumar Bansal Chief Financial Officer

h.) Sh. Kapil Garg Company Secretary (till 21^st Aug, 2017)

i.) Smt. Jyoti Verma Company Secretary (w.e.f. 13^th Nov, 2017)

III. Relatives of Key Management Personnel with whom transactions have taken place

a.) Sh. Harsh Dhanuka Son of Sh. Mahendra Kumar Dhanuka

b.) Smt. Megha Dhanuka Wife of Sh. Mridul Dhanuka

c.) Smt. Akangsha Dhanuka Son''s wife of Sh. MK Dhanuka

d.) Smt. Madhuri Dhanuka Wife of Sh. Rahul Dhanuka

IV. Entities controlled by KMP/Relative of KMP, with whom transactions have taken place

a.) Dhanuka Marketing Company

b.) Mridul Dhanuka HUF

c.) Dhanuka Private Limited

d.) Dhanuka Laboratories Limited

e.) Chiranji Lal Dhanuka Charitable Trust

f.) Hindon Mercantile Limited

g.) Exclusive Leasing and Finance Limited

h.) Sikkim Agro Industries Limited

i.) Golden Overseas Pvt. Limited j.) M.D. Buildtech Pvt. Limited k.) H.D. Realtors Pvt. Limited

l.) Dhanuka Infotech Pvt. Limited

m.) Otsuka Chemical (India) Pvt. Limited

n.) IKO Overseas

o.) Synmedic Laboratories

*The above post-employment benefits exclude gratuity which cannot be separately identified from the composite amount advised by the actuary.

c. Terms and conditions of transactions with related parties

All the transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended March 31, 2018 and March 31, 2017

III. Fair Value hierarchy

Level 1 - This includes financial instruments measured using quoted prices (Unadjusted) in active markets for identical assets and liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

6. FINANCIAL RISK MANAGEMENT

The Company''s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The company''s board of directors has the overall responsibility for the management of these risks. The company has the risk management policies and systems in place and are reviewed regularly to reflect changes in market conditions and the company''s activities. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The company''s audit committee oversees how management monitors compliance with the risk management policies and procedures, and reviews the adequacy of risk management framework in relation to the risks faced by the company.

a.) Credit Risk

Credit Risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the company, and arises from the operating activities primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India.

The company has established a credit policy under which each customer is analyzed individually for creditworthiness before the company''s credit terms are offered. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Credit limits are established for each customer and reviewed periodically. Any sales order exceeding those limits require approval from the appropriate authority.

The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.

In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience. These loss rates are adjusted by considering the available, reasonable and supportive forward looking information.

Reconciliation of allowance for lifetime expected credit loss on customer balances:

Credit risks from financial transactions are managed independently by finance department. For banks and financial institutions, the company has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high quality banks and financial institutions. The company had no other financial instrument that represent a significant concentration of credit risk. The surplus funds are invested in bank deposits and mutual fund investments. So there is no impairment in these financial assets.

The company assessed the credit risk of these financial instruments. Based on the assessment there is no impairment in the other financial instruments.

b.) Liquidity Risk

Liquidity risks result from the possible inability of the company to meet current or future payment obligations due to lack of cash or cash equivalents. The liquidity risk is assessed and managed by the finance department as a part of day to day and medium term liquidity planning.

The company holds sufficient liquidity to ensure the fulfilment of all planned payment obligations at maturity. The company''s liquidity risk policy is to maintain sufficient liquidity reserve at all times based on cash flow projections to meet payment obligation when it falls due. The primary source of liquidity is cash generated from operations.

Liquid assets are held mainly in the form of bank deposits and mutual fund investments. The company maintain flexibility in funding by maintaining availability under cash credit lines set up with banks.

c.) Market Risk

i. Currency Risk

Foreign currency risks for the company is from changes in exchange rates and the related changes in the value of financial instruments in the functional currency (INR). The company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to US Dollar.

To Mitigate the currency fluctuation, receivables and payables in foreign currencies which arises from export and import of goods are hedged through forward exchange contracts.

The company''s exposure to changes in foreign currency other than USD is not material.

ii. Interest Rate Risk

The company has surplus cash position and does not have any major borrowings as on balance sheet date. So there is no material interest risk relating to the company''s financial liabilities.

iii. Price Risk

The company is mainly exposed to the price risk due to its investment in mutual funds and classified in the balance sheet as fair value through profit and loss. Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.

There is no material equity risk relating to the company''s equity investments which are details in note 7. The company''s equity investments majorly comprise of strategic investments rather than trading purposes.

7. CAPITAL MANAGEMENT

The company manages its capital to ensure that the company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance. Further its objective is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development.

8. STANDARDS ISSUED BUT NOT EFFECTIVE

On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from April 01, 2018.

(a) Issue of Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

(b) Amendment to Existing issued Ind AS

The MCA has also carried out amendments of the following accounting standards:

i. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

ii. Ind AS 12 - Income Taxes

Application of above standards are not expected to have any significant impact on the Company''s Financial Statements.

9. FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with 1st April, 2016 as the transition date.

Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2016, together with the comparative period data as at and for the year ended 31 March 2017. In preparing these financial statements, the company''s opening balance sheet was prepared as at 1 April 2016, the date of transition to Ind AS.

Ind AS 101- First time adoption of Indian accounting standards requires the company to reconcile equity, total comprehensive income and cash flows for previous years. The following reconciliations provide the explanations and quantification of the differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101

Exemptions and exceptions availed:

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

a. Ind AS optional exemptions:

Ind AS 101 allow first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has applied the following exemptions:

i. Property, plant and equipment & Intangible assets

Ind AS 101 permits a first-time adopter to elect to

continue with the carrying value for all of its Property, Plant and Equipment & Intangible Assets as recognized 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.

Accordingly, the company has elected to measure all of its Property, Plant and Equipment & Intangible Assets at their previous GAAP carrying value.

ii. Investment in subsidiaries, joint ventures and associate

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiaries, joint ventures and associate as recognized 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.

Accordingly, the Company has elected to measure its investments in subsidiary at previous GAAP carrying value.

iii. Business Combination

As per Ind AS 101, at the date of transition, an entity may elect not to restate business combinations that occurred before the date of transition. If the entity restates any business combinations that occurred before the date of transition, then it restates all later business combinations, and also applies Ind AS 110, Consolidated Financial Statements, from that same date.

The Company has opted not to restate business combinations that occurred before 1 April, 2016.

b. Ind AS mandatory exceptions

i. 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 objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should reflect condition that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind-AS).

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for Impairment of financial assets based on expected credit loss model, fair valuation of financial instruments carried at FVTPL in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

ii. Classification and Measurement of Financial Assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively except where the same is impracticable.

iii. Derecognition of Financial Assets and Liabilities

As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The company has elected to apply the derecognition principles of Ind AS 109 prospectively.

iv. Impairment of Financial Assets

An entity shall determine an approximate credit risk at the date when the financial instruments were initially recognized and compare that to the credit risk at the date of transition to Ind AS. This should be based on reasonable and supportable information that is available without undue cost or effort. If the entity is unable to make this determination without undue cost or effort, it shall recognize a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognized.

c. Reconciliations

iii. Reconciliation of Cash flow

There is no significant reconciliation items between cash flow prepared under Previous GAAP and those prepared under Ind AS.

d. Notes to first time adoption

i. Investments

For investment in Mutual Fund, Equity instruments and Market linked debentures, company has elected to fair value through Profit and Loss (FVTPL). However, in the previous GAAP the same is carried at cost.

For investment in bonds and debentures, where objective is to hold assets for collecting contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, needs to be measured at amortized cost using the effective interest rate method. The company has applied effective interest rate method to those investments retrospectively. However, in the previous GAAP the same is carried at cost.

ii. Security Deposit

Under previous GAAP the company has carried security deposits given at cost, while as per Ind AS, security deposits which qualify as financial assets, need to be measured at amortized cost using the effective interest rate method less any impairment losses. The company has applied effective interest rate method to those deposits retrospectively.

iii. Trade Receivables

On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.

The provision matrix takes into account as per the Company''s historical experience for customers.

iv. Excise Duty

Under the previous GAAP revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses.

v. Deferred Tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

vi. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of statement of profit & loss. Under the previous GAAP, these remeasurements were forming part of the statement of profit & loss for the year.

vii. Lease Equalization

As per Ind AS 17, payments under operating lease are recorded in the Statement of Profit and Loss on a straight line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases.

The Company has taken office/Godown spaces on operating lease basis. Future lease rents and escalation in rent which is generally on account inflation only, have been determined on the basis of agreed terms.

As increase in the rentals are on account of inflation only, company has decided to reverse the lease equalization reserve made as per the provisions of previous IGAAP

10. EVENTS AFTER REPORTING DATE

Refer to note 16(b) for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing annual general meeting.

11. Trade receivables, trade payables and advances are subject to confirmation and / or reconciliation except those for which confirmation / reconciliation already received.

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Mar 31, 2016

1. Defined-Benefits Plans [Accounting Standards (AS)-15]:

The Company offers its employees defined-benefit plans in the form of a Gratuity scheme. Benefits under the defined-benefit plans are typically based either on years of service and the employee''s compensation (generally immediately before retirement). The Gratuity scheme covers substantially all regular employees. For the Gratuity scheme, the Company contributes funds to Gratuity Trust.

The Actuarial valuation is done based on "Projected Unit Credit” Method.

2. Related Party Disclosure (Accounting Standard (AS)-18):

a) Key Managerial Personnel, Executive Directors -Sh. Harsh Dhanuka, Son

and Relatives -Smt. Akangsha Dhanuka, Son''s Wife

- Sh. Ram Gopal Agarwal, Chairman _ , „

-Relatives of Sh. Arun Kumar Dhanuka

- Sh. Mahendra Kumar Dhanuka, Managing Director „ „ , ,

- Smt. Pushpa Dhanuka, Mother

- Sh. Arun Kumar Dhanuka, Director „

- Smt. Mamta Dhanuka, Wife

- Sh. Rahul Dhanuka, Director ,

- Sh. Arjun Dhanuka, Son

- Sh. Mridul Dhanuka, Director ™ ~

- Smt. Aastha Dhanuka, Son''s Wife

- Sh. Vinod Kumar Bansal,Chief Financial Officer „

- Smt. Megha Chripal, Daughter

- Sh. Kapil Garg, Company Secretary

- Smt. Varsha Goel, Daughter

- Relatives of Sh. Ram Gopal Agarwal

- Sh. Manish Dhanuka, Brother

- Smt. Urmila Dhanuka, Wife „

- Smt. Seema Dhanuka, Brother''s Wife

- Sh. Rahul Dhanuka, Son

- Smt. Reema Khowala, Daughter -^{Relatives of Sh Rahul Dhanuka}

- Smt. Rashmi Gupta, Daughter - ^Smt. ^{Madhuri Dhanuka}, ^Wife

- Sh. Mahendra Kumar Dhanuka, Brother - ^Ms. ^{Shailja Dhanuka}, ^Daughter

- Sh. Satya Narain Agarwal, Brother - ^{Master Shashvat Dhanuka}, ^Son

- ^Smt. ^{Lalita Dhanuka, Brother}''^{s wife} -Relatives of Sh. Mridul Dhanuka

- Relatives of Sh. Mahendra Kumar Dhanuka - ^Smt. ^{Megha Dhanuka}, ^Wife

- Smt. Uma Dhanuka, Wife - ^Ms. ^{Sahana Dhanuka, Dau}g^hter

- Sh. Mridul Dhanuka, Son - ^Ms. ^{Tushti Dhanuka, Dau}g^hter

Companies, Firms & Trusts in which Key Management Personnel & their Relatives have Significant Influence:

- Hindon Mercantile Limited - Dhanuka Infotech Pvt. Limited

- Exclusive Leasing and Finance Limited - Dhanuka Pvt. Limited

- Dhanuka Laboratories Limited - Otsuka Chemical (India) Pvt. Limited

- Sikkim Agro Industries Limited - Dhanuka Agri-Solutions Pvt. Limited (Wholly

- Golden Overseas Pvt. Limited ^{Owned Subsidiary})

- M.D. Buildtech Pvt. Limited - ^{Balaji Builders}

- H.D. Realtors Pvt. Limited - ^{Shree Ram Enter}p^rises

- Passion Alliance - Sampad Developers

- Dhanuka Marketing Company - IKO Overseas

- Chiranji Lal Dhanuka Charitable Trust - Synmedic Laboratories

- Durga Prasad Dhanuka Charitable Trust - Synmedic Laboratories Ltd

- Triveni Trust - Ram Gopal Agarwal (HUF)

- Pushpa Dhanuka Trust - Satya Narain Agarwal (HUF)

- R G Agarwal Trust - Mahendra Kumar Dhanuka (HUF)

- M K Dhanuka Trust - Arun Kumar Dhanuka (HUF)

- A K Dhanuka Trrust - Manish Dhanuka (HUF)

- Manish Dhanuka Trust - Rahul Dhanuka (HUF)

- Mridul Trust - Mridul Dhanuka (HUF)

- Harsh Trust - Harsh Dhanuka (HUF)

3. Corporate Social Responsibility (CSR) Activities

During the year, the company has incurred expenditure in accordance with Section 135 of the Companies Act, 2013 on the CSR activities as specified in Schedule VII to the Companies Act, 2013. The details are as under:

(a) Gross amount required to be spent by the company during the year - Rs.216.37 Lacs

(c) Short fall in amount spent on CSR activities (a-b) as referred above is Nil.

4. Segment information

The Company is engaged in the business of manufacturing and trading of various types of pesticides. The entire operations are governed by same set of risk and returns. Hence, the same has been considered as representing a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard - 17 on segment reporting.

5. Dues to Micro, Small and Medium Enterprises

Amount due to Micro, Small and Medium Enterprises outstanding as at 31.03.2016 was Rs.790.93 Lacs. There is no overdue amount outstanding and interest due thereon as at 31.03.2016.

6. Set up of new manufacturing unit at Keshwana, Rajasthan

The company has set up a new state of the art manufacturing unit at Keshwana, Rajasthan. The commercial production was started on 16-03-2016. The plant is fully operational with all quality parameters. The plant is a greenfield facility which started from scratch to becoming India''s largest formulation unit intended with high focus on Environment, Health and Safety. The facility has been designed ergonomically for better efficiency in the working environment.

7. On 31.07.2015 the company was subjected to a search and seizure operation under section 132 of the Income Tax Act,1961. Notices under section 153A have been received to file fresh returns for A.Y. 2010-11 to A.Y. 2015-16. The assessment proceedings are under process for the above mentioned assessment years.

8. Depreciation for the year includes a sum of Rs 13.51 Lacs on account of additional depreciation on certain assets due to change in estimation of useful life of those assets.

9. Trade receivables/ customers are shown net of trade discounts and rate differences.

10. Trade receivables, Trade payables and advances are subject to confirmation and/ or reconciliations except those for which confirmations/ reconciliations already received.

11. Previous year''s figures have been regrouped and rearranged wherever considered necessary.

12. All the figures have been shown in Lacs.

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Mar 31, 2015

1. RELATED PARTY DISCLOSURE - ACCOUNTING STANDARD (AS-18)

a) Key Managerial Personnel and Relatives Relatives of Mr. Arun Kumar Dhanuka

Mr. Ram Gopal Agarwal, Chairman Mrs. Pushpa Dhanuka, Mother

Mr. Mahendra Kumar Dhanuka, Managing Director Mrs. Mamta Dhanuka, Wife

Mr. Arun Kumar Dhanuka, Director Mr. Arjun Dhanuka, Son

Mr. Rahul Dhanuka, Director Mrs. Aastha Dhanuka, Son's Wife

Mr. Mridul Dhanuka, Director Mrs. Megha Chripal, Daughter

pa Aga Mr. Manish Dhanuka, Brother

Mrs. Urmila Dhanuka, Wife Mrs Seema Dha Brother's Wife

Mr. Rahul Dhanuka, Son

Mrs. Reema Khowala, Daughter Relatives of Mr. Rahul Dhanuka

Mrs. Rashmi Gupta, Daughter Mrs. Madhuri Dhanuka, Wife

Mr. Mahendra Kumar Dhanuka, Brother Ms. Shailja Dhanuka, Daughter

Mr. Satya Narain Agarwal, Brother Master Shashwat Dhanuka, Son

Mrs. Lalita Dhanuk, Brother's Wife Relatives of Mr. Mridul Dhanuka

Relatives of Mr. Mahendra Kumar Dhanuka Mrs. Megha Dhanuka, Wife

Mrs. Uma Dhanuka, Wife Ms. Sahana Dhanuka, Daughter

Mr. Mridul Dhanuka, Son Ms. Tushti Dhanuka, Daughter Mr. Harsh Dhanuka, Son Mrs. Akangsha Dhanuka, Son's Wife

Companies, Firms & Trusts in which Key Management Personnel & their Relatives have Significant Influence:

Hindon Mercantile Limited RG Agarwal Trust

Exclusive Leasing and Finance Limited MK Dhanuka Trust

Dhanuka Laboratories Limited A.K. Dhanuka Trust

Sikkim Agro Industries Limited Manish Dhanuka Trust

Golden Overseas Pvt. Limited Mridul Trust

M.D. Buildtech Pvt. Limited Harsh Trust

H.D. Realtors Pvt. Limited Sampad Developers

Dhanuka Infotech Pvt. Limited IKO Overseas

Dhanuka Pvt. Limited Synmedic Laboratories

Otsuka Chemical (India) Pvt. Limited Synmedic Laboratories Pvt. Limited

Dhanuka Agri-Solutions Pvt. Limited (Wholly Owned Subsidiary) Ram Gopal Agarwal (HUF)

Balaji Builders Satya Narain Agarwal (HUF)

Shree Ram Enterprises Mahendra Kumar Dhanuka (HUF)

Passion Alliance Arun Kumar Dhanuka (HUF)

Dhanuka Marketing Company Manish Dhanuka (HUF)

Chiranji Lal Dhanuka Charitable Trust Rahul Dhanuka (HUF)

Durga Prasad Dhanuka Charitable Trust Mridul Dhanuka (HUF)

Triveni Trust Harsh Dhanuka (HUF)

Pushpa Dhanuka Trust

Future lease rents and escalation in rent have been determined on the basis of agreed terms. At the expiry of the initial lease term, generally the Company has an option to extend the lease for a further pre determined period.

2. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES:

During the year, the Company has incurred expenditure in accordance with Section 135 of the Companies Act, 2013 on the CSR activities as specified in Schedule VII to the Companies Act, 2013. The details are as under:

(a) Gross amount required to be spent by the Company during the year - Rs.176.86 lakhs

(b) Amount spent during the year on :

(c) Short fall in amount spent on CSR activities (a-b) as referred above is Rs.11.99 lakhs

3. MAT CREDIT ENTITLEMENT:

MAT credit entitlement has not been accounted for in the books. The same shall be adjusted in the future tax liability in accordance with the provisions of the Income Tax Act, 1961.

4. GOVERNMENT GRANT/ INCENTIVE:

During the year the company has availed Excise Duty refund in respect of Udhampur Unit which has been reduced from Excise Duty. Considering the purpose for which subsidy is granted, the Company is of the view that excise duty refund being in the nature of capital receipt and hence is not regarded as Income in computing total income under normal provision of the Income Tax Act as well as under book profit u/s 115JB of the Income Tax Act.

5. SEGMENT INFORMATION:

The Company is engaged in the business of manufacturing and trading of various types of Pesticides. The entire operations are governed by same set of risk and returns. Hence, the same has been considered as representing a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard - 17 on Segment Reporting.

6. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:

Amount due to Micro, Small and Medium Enterprises outstanding as at 31.03.2015 was Rs.851.27 lakhs. There is no overdue amount outstanding and interest due thereon as at 31.03.2015. The names of such Small and Medium Enterprises are:

7. SCHEME OF AMALGAMATION

A Scheme of Amalgamation was framed under the provisions of sections 391 and 394 of the Companies Act, 1956, and other applicable provisions, if any, for amalgamation of M/s A.M. Bros. Fintrade Pvt Ltd and M/s Dhanuka Finvest Pvt Ltd (the Transferor Companies No. 1 and 2 respectively) with M/s Dhanuka Agritech Ltd (the Transferee Company).

I. Salient features of the Scheme of Amalgamation are as follows:

a. All assets and liabilities including Income Tax and all other statutory liabilities of the Transferor Companies No. 1 and 2 will be transferred to and vested in the Transferee Company.

b. All the employees of the Transferor Companies No. 1 and 2 in service, on the Effective Date, shall become the employees of the Transferee Company on and from such date without any break or interruption in service and upon terms and conditions not less favorable than those subsisting in the concerned Transferor Company on the said date.

c. The Appointed Date for Amalgamation will be 1st January, 2015.

d. Shares to be issued for the Amalgamation:

i. The Transferee Company will issue 55,33,350 new equity shares of face value of Rs.2/- each fully paid to the equity share holders of Transferor Company No.1 in the proportion of the number of equity shares held by the shareholders of Transferor Company No.1. The fractional entitlement, if any, to which shareholders of the Transferor Company No.1 would become entitled to upon issue of new equity shares shall be rounded off by the Transferee company to the nearest integer. However, in no event, the number of new equity shares to be issued by the Transferee Company to the shareholders of the Transferor Company No.1 shall exceed the total number of equity shares held by the Transferor Company No.1 in the Transferee Company.

ii. The Transferee Company will issue 3,09,58,890 new equity shares of face value of Rs.2/- each fully paid to the equity share holders of Transferor Company No.2 in the proportion of the number of equity shares held by the shareholders of Transferor Company

No.2. The fractional entitlement, if any, to which shareholders of the Transferor Company No.2 would become entitled to upon issue of new equity shares shall be rounded off by the Transferee company to the nearest integer. However, in no event, the number of new equity shares to be issued by the Transferee Company to the shareholders of the Transferor Company No.2 shall exceed the total number of equity shares held by the Transferor Company No.2 in the Transferee Company.

The aforesaid Scheme of Amalgamation was approved by the Hon'ble High Court of Delhi vide its order dated 06th November, 2015 (Pronouncement date). The Scheme became effective on 01-12-15, being the date of filing of the Court Orders with the ROC. Since the Scheme is operative from the Appointed Date, 01-01-2015, it has been given effect to in the present audited accounts. Accordingly, the present audited accounts are consisting of financial figures of the Transferee Company as well as financial figures of the Transferor Companies No. 1 and 2.

II. In terms of the Scheme, the Transferee Company will issue 55,33,350 Equity Shares of Rs.2/- each, credited as fully paid up, to the members of the Transferor Company No. 1 and 3,09,58,890 Equity Shares of Rs. 2/- each, credited as fully paid up, to the members of the Transferor Company No. 2, in exchange of 100% share capital of these Companies after cancellation of cross holding, if any.

The aforesaid Shares to be issued by the Transferee Company have been disclosed under the head "Shares to be issued pursuant to the Scheme of Amalgamation" in the Balance Sheet.

The allotment of aforesaid shares to the respective shareholders of the Transferor Companies has been approved in the meeting of Board of Directors held on 02nd December, 2015.

III. Amalgamation of Transferor Companies with the Transferee Company has been accounted for under the Purchase Method as per Accounting Standard-14 (AS-14) as prescribed under the Companies (Accounting Standards) Rules, 2006. Accordingly, all the assets and liabilities of each of the Transferor Companies have been recorded in the Company's books. Inter-company balances, if any, stand cancelled.

IV. The following accounting treatment has been given to some of the issues pertaining to the Scheme:

a. 3,64,92,240 Equity Shares of the Transferee Company held by the Transferor Companies have been extinguished out of the issued and paid- up share capital of the Transferee Company on cancellation of cross holding.

b. An amount of Rs. 95.05 Lakhs being excess of net assets of the transferor companies over the face value of the shares to be issued by the transferee company to the shareholders of the transferor companies and adjusted for cancellation of investment in the equity share capital of the transferee company has been recorded as capital reserve in the transferee company.

8. Trade receivables/ customers are shown net of trade discounts and rate differences.

9. Trade receivables, Trade payables and advances are subject to confirmation and/ or reconciliations except those for which confirmations/ reconciliations already received.

10. Previous year's figures have been regrouped and rearranged wherever considered necessary.

11. All the figures have been shown in lakhs.

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Mar 31, 2014

1. Terms/Rights attached to Equity Shares

1. The Company has only one class of Equity Shares having at par value of Rs. 2/- per share. Each Equity share is entitled to one vote.

2. The Company has paid 100% Interim Dividend i.e. Rs. 2.00 per Equity Share having Face value of Rs. 2/- each during the Financial Year 2013-14. The total outgo on this account amounted to Rs. 1,170.41 lacs (including Rs. 170.02 Lacs of Corporate Dividend Tax). The Interim Dividend was paid to the Shareholders whose names appeared in the Register of Members on Record date, i.e. 18-02-2014 and entire amount of the said Dividend was paid within Statutory time lines stipulated by the Companies Act, 1956.

3. During the year ended 31st March, 2014, the amount of final dividend is proposed at 100% i.e. Rs. 2.00 per equity share having face value of Rs. 2/-each

4. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

5. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

2 Unclaimed dividends do not include any amounts, due and outstanding to be credited to Investor Education and Protection fund.

3 Other payables includes statutory dues, employee related costs and provision of discounts and rebates on sale.

Note: During the year company has received Rs. 13,63,599/- on account of Capital Investment Subsidy from Directorate of Industries & Commerce , Govt of Jammu & Kashmir, in respect of Plant & Machinery installed at Udhampur (J&K) unit . The same has been reduced from the carrying cost of Plant & Mechinery of Udhampur unit as per the provision of Accounting Standard (AS-12).

* : Stock of Raw Materials includes value of goods in transit of Rs. 79.44 lacs [Previous Year Rs. 84.48 lacs]

~: Stock of Packing Materials includes value of goods in transit of Rs. 16.59 lacs [Previous Year Rs. 47.13 lacs] #: Stock of Finished Goods includes value of goods in transit of Rs. Nil [Previous year Rs. 296.31 lacs]

* Fixed deposit with Bank having maturity with in one year .

** Fixed deposit with Bank having maturity more than one year been shown under heading Non current Assets (Refer Note no 14)

* Note : Excise duty paid is net of excise duty refund of Udhampur unit (J&K) of Rs. 962.85 lacs (Previous year Rs. 526.68 lacs)

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Mar 31, 2013

1. The Company has only one class of Equity Shares having at par value of Rs.2/- per share. Each Equity is entiled to one vote.

2. The Company has paid 75% Interim Dividend i.e. Rs.1.50 per Equity Share having Face value of Rs.2/- each during the Financial Year 2012-13. The total outgo on this account amounted to Rs.872.01 lakhs (including Rs.121.72 Lakhs of Corporate Dividend Tax). The Interim Dividend was paid to the Shareholders whose names appeared in the Register of Members on record date, i.e. 19th February, 2013 and entire amount of the said Dividend was paid within statutory time-lines stipulated by the Companies Act 1956.

3. During the Year ended 31st March, 2013, the amount of Final Dividend is proposed at 65% i.e. Rs. 1.30 per equity shares having face value Rs. 2/- each.

4. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

5. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

5.1 Term loan from HDFC Bank is secured by way of first charge over immovable properties situated at Sanand (Gujarat), and the personal guarantee of the Promoter Directors. The term loans carried interest rate @12.55% during the Year.

6.1 Unclaimed dividends do not include any amounts, due and outstanding to be credited to Investor Education and Protection fund.

6.2 Other payables includes Statutory Dues, Employee related costs and provision of discounts and rebates on sale.

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Mar 31, 2012

A. Terms/Rights attached to Equity Shares:

The Company has only one class of Equity Share having par value of Rs.2/- per share. The Equity Shares have pari-passu Voting Rights.

During the year ended 31st March, 2012, the amount of Dividend per Share recognized as distribution to Equity Shareholders is Rs.2.20 per Equity Share (Previous year Rs.2/- per Equity Share).

In the event of liquidation of the Company, the Equity Shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

As per the records of the Company, including its Register of Shareholders/Members and other declarations received from Shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of Shares.

1.1 Unclaimed Dividend does not include any amount, which is due and outstanding and has to be credited to Investor Education and Protection Fund.

1.2 Other payables include Statutory dues, Employee related costs and provision of discounts and rebates on sale.

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Mar 31, 2011

1) Deferred Revenue Expenditure:

Revenue expenditure where benefit is expected to accrue over a longer period is amortized equally over a period of 5 years.

2 Contingent Liabilities not provided for:

Particulars As on As on 31.03.2011 31.03.2010

(Rs.) (Rs.)

a) Bank Guarantees 3,40,000 Nil

b) Letter of Credit 37,97,69,695 11,42,27,475

c) Sales Tax pending in appeals 2,63,000 2,63,000

d) Income Tax cases pending in appeals 10,64,244 21,29,460

e) Excise Disputes pending 1,04,13,000 1,04,13,000

f) Claims against the Company not acknowledged as debt - 77,663

3. Defined-Benefit Plans (AccountingStandards AS-15):

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined- benefit plans are typically based either on years of service and the employees compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. For the gratuity scheme, the Company contributes funds to Gratuity Trust.

4 Related Party Disclosure (Accounting Standard AS-18):

a) Key Managerial Personnel & Relatives :

- Mr. Ram Gopal Agarwal, Director

- Mr. Mahendra Kumar Dhanuka, Managing Director

- Mr. Arun Kumar Dhanuka, Director

- Mr. Rahul Dhanuka, Director

- Mr. Krishnakumar Baijnath Kejariwal, Director (upto 13th Sep,2010)

Relatives of Mr. Ram Gopal Agarwal

- Mr. Satya Narain Agarwal, Brother

- Mrs. Urmila Dhanuka, Wife

- Mrs. Reema Khowala, Daughter

- Mrs. Rashmi Gupta, Daughter

Relatives of Mr. Mahendra Kumar Dhanuka

- Mr. Satya Narain Agarwal, Brother

- Mrs. Uma Dhanuka, Wife

- Mr. Mridul Dhanuka, Son

- Mr. Harsh Dhanuka, Son

Relatives of Mr. Arun Kumar Dhanuka

- Mrs. Pushpa Dhanuka, Mother

- Mr. Manish Dhanuka, Brother

- Mrs. Mamta Dhanuka, Wife

Relatives of Mr. Rahul Dhanuka

- Mrs. Madhuri Dhanuka, Wife

- Ms. Shailja Dhanuka, Daughter

- Mst. Shashwat Dhanuka, Son

Relatives of Mr. Krishnakumar Baiinath Keiariwal

- Mr. Shriyas Kejariwal, Son

- Mrs. Aarti Gupta , Daughter

- Mrs. Manju Kejariwal, wife

Companies/Firm in which key management personnel & their relatives have significant influence

- Cosmo Components Private Limited

- Duke Impex Private Limited

- Exclusive Leasing and Finance Limited

- Golden Overseas Limited

- Growth Advertising and Marketing Private Limited

- Hindon Mercantile Limited

- Liberty Sales Private Limited

- Zoom Leasing and Finance Company Limited

- Sikkim Agro Industries Limited

- Dhanuka Laboratories Limited

- Dhanuka Infotech (P) Ltd.

- M.D.Buildtech (P) Ltd.

- H.D.Realtors (P) Ltd.

- Dhanuka Pvt. Ltd.

- Madhuri Designs -N- Exports (P) Ltd.

- Balaji Buliders

- S.P Enterprises

- Investors Associates

- Eight Reit

- Shree Ram Enterprises

- Passion Alliance

- Tempex Enterprises

- Key ideas Infotech ELtd.

The Deferred Tax Liability/Assets has arisen on account of the time difference between the depreciation admissible under the Income Tax Act, 1961 and the depreciation adjusted in the Accounts.

5. On 9th July 2010 a fire broke out at Gurgaon plant situated at Daulatabad Road, Gurgoan. The claim for the same was filed with the Insurance Company. The accounting effect for claim has been given on the basis of provisional assessment of the surveyor. The claim has not yet been received by the Company.

6. In terms of Accounting Standard (AS 28) on "impairment of Asset" issued by Institute of Chartered Accountant of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said accounting standard. The Company has identified that no asset of the Company has been impaired during the year.

7. Segment information:

The Company is engaged in the business of manufacturing and trading of various types of pesticides. The entire operations are governed by same set of risk and returns. Hence the same has been considered as representing a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard -17 on segment reporting.

8. In pursuance to Section 81(1 A) of the Companies Act, 1956 read with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 ("the Regulations") The Company has issued and allotted 41,25,000 equity shares of Rs. 2/- each on preferential basis, at a premium of Rs.80.20 per share, constituting post issue 8.25% of the total issued and paid-up share capital of the Company to M/s 2020 Equity Investors Limited, a sub account of Muse Capital Advisors Limited, in the Board meeting held on 13th September, 2010. The approval of the shareholders was accorded in the Extra-Ordinary General Meeting of the Company held on 30th August, 2010.

9. The Company has subdivided its equity shares of face value of Rs.10/- each into 5 equity shares of face value of Rs.2/- each. The record date for this purpose was 4th September, 2010. Due to the aforesaid split up of shares the basic & diluted earning per share has been restated for the previous year.

10. In accordance with notification no S.O.301 (E) dated 08th Feb., 2011 issued by Ministry of Corporate Affairs Govt, of India, exempting manufacturing Company from disclosing information required under Para 3 (i) (a) and 3 (ii) (a) of the Part II of Schedule VI i.e. disclosure of information about sales and raw materials consumed , the Board has approved not to disclose the aforesaid information.

11. Sundry Debtors/Customers are shown net of trade discounts and rate differences.

12. Previous years figures have been regrouped and rearranged wherever considered necessary.

13. All the figures have been shown to the nearest rupee.

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Mar 31, 2010

(i) On 14th Aug 2009 a fire broke out at Gurgaon plant situated at Daulatabad Road, Gurgoan. The claim for the same was filed with Insurance company. The accounting effect for claim has been given on the basis of provisional assessment of the surveyor. The claim has not yet been received by the Company.

(ii) On 3rd August, 2009, it was noticed by the Company, that some unauthorized foreign exchange transactions have been allegedly entered into by some of the employees of the Company with Banks. In order to safeguard the interests of the Company, the matter was reported to the Law Enforcing Agencies for investigation and initiating appropriate action under the law. Three employees were involved out of which services of two were terminated and one employee has been suspended pending completion of enquiry. The matter has been settled with the concerned Banks and all business dealings with them have been discontinued.

(iii) In terms of Accounting Standard (AS 28) on "impairment of Asset" issued by Institute of Chartered Accountant of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said accounting standard. The Company has identified that no asset of the Company has been impaired during the year.

(iv) Segment information

The Company is engaged in the business of manufacturing and reselling of various types of pesticides. The entire operations are governed by same set of risk and returns, hence the same has been considered as representing a single primary segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standard - 17 on segment reporting.

The company sells its products within India, hence, it is considered to be operating in single geographical segment.