Notes to Accounts of Link Pharma Chem Ltd.

Mar 31, 2025

m. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best estimates.

Provisions are not recognised for future operating losses.

n. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in which they are incurred.

o. Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non—occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation that is not recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits
will arise. When an inflow of economic benefits is probable, contigent assets are disclosed in the financial
statements.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

p. Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company, excluding any costs of servicing equity other
than ordinary shares.

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

ii. Diluted earnings per share

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

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

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

q. Segment Reporting

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

r. Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and highly liquid
investments with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

Cash flow statement

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

2. No trade or other receivables are due from directors or other officers of the Company either severally or jointly with
any other person.

3. The average credit period on sales of goods is generally 90 days. No interest is generally charged on trade
receivables for the first 90 days from the date of the invoice. No interest is charged though over and above the agreed
credit period.

4. The Company has 5 customers (For F.Y. 23-24: 3 customer) who had accounted for more than 10% of the
Company''s revenue. Total amount of revenue from such customers is Rs. 1,802.12 lakhs for the year ended March
31, 2025 and Rs. 1,379.59 lakhs for the year ended March 31,2024.

The company has offered following assets as security to the bank as follow:

Primary Securities:

a) The hypothecation charge on stock and books debts of the company both present and future.

b) Equitable mortagage (with residual value) on land and building situated at Plot no 161/1 & 162, GIDC Industrial Estate
Nandesari owned by company.

c) Pledge of TDR face value of Rs. 5.00 Lakh.

d) Hypothecation of Existing Machinery & its components purchased out of Term loan -I and II.

Collateral Securities:

a) Equitable mortgage of Land and Building situated at plot No. 161/1 & 162, GIDC, industrial estate, Nandesari.

b) Hypothecation of Existing Plant and Machinery.

c) Personal guarantee given by 2 directors.

NOTE - 35 - DISCLOSURES FOR EMPLOYEE BENEFITS

a. Defined benefit plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a grautity payout per the Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation
of India in the form of qualifying insurance policy for future payout of gratuity of the employees. Each year-end, the
management reviews the level of funding in the gratuity fund. Such review includes the asset - liability matching
strategy. The management decides its contributions based on the results of this review. The management aims to
keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.

The following table sets out the components of net benefit expense recognised in Statement of Profit and Loss and
the funded status and amounts recognised in the Balance Sheet for the respective plans:

b. Defined Contribution Plans

The Company makes Provident Fund contributions to defined contribution plan for qualifying employees. Under the
scheme, the Company is required to contribute a specified percentage of payroll costs to fund the benefits. The
Company has recognised provident fund contribution of Rs. 20.63 lakhs (March 31, 2024 Rs. 21.06 lakhs) as
expense in Note 27 under the head ‘Contributions to Provident and Other Funds''.

NOTE - 36 - SEGMENT INFORMATION

The Company has one production unit engaged in the manufacturing and job work of organic intermediates. Accordingly,
the Chief Operating Decision Maker monitors the operating results of both manufacturing and job work for the purpose
of making decision about resource allocation and performance assessment. Thus there are no separate reportable
segments in terms of the requirements of Ind AS 108 “Operating Segments” as notified under section 133 of the
Companies Act, 2013.

Geographical segment analysis:

(i) Revenues from customers attributed to an individual foreign country are NIL for the years ended on March 31,2025
and March 31,2024.

NOTE - 37 - DISCLOSURE ON REVENUE PURSUANT TO IND AS 115 - REVENUE FROM CONTRACTS WITH
CUSTOMERS

(i) Disaggregation of revenue

(a) Revenue from sale of products and conversion charges are recognised at a point in time. There are no further
disaggregation of revenue with respect to this information.

(b) Revenue from sale of products and conversion charges are from Domestic market i.e within India. There are no
further disaggregation of revenue with respect to this information.

NOTE - 38 - DETAILS OF HEDGED AND UNHEDGED EXPOSURE IN FOREIGN CURRENCY DENOMINATED
MONETARY ITEMS

Derivatives not designated as hedging instruments

The Company does not have exposure to foreign currency risk.

NOTE - 39 - CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management
is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and
maximise shareholder value. pRQ QQ

The Company determines the capital management requirements on the basis of Annual Budget and other strategic
investment plans as approved by the Board of Directors. The Company manages its capital structure and makes
adjustments to it in light of changes in economic conditions or its business requirements. To maintain or adjust the
capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits
(including other bank balance).

B. Measurement of fair values & Sensitivity Analysis
i) Valuation techniques and significant unobservable inputs:

Fair value hierarchy:

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments
by valuation techniques:

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

(ii) 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).

(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Note: The Company has invested in the equity instruments of various companies. However, the percentage of
shareholding of the Company in such investee companies is very low and hence, it has not been provided with
financial statements, future projections including projected profit and loss account by those investee companies.
Hence, the Company has estimated fair value based on available historical transaction details of such companies
and other information as available in the public domain. Since the future projections are not available, discounted
cashflow approach for fair value determination has not been followed. In light of no information available for future
projections, capacity utilisation, commencement of operations, etc., the valuation is based on cost approach.

Financial Instrument measured at amortised cost:

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

Transfer out of Level 3:

There was no movement in level 3 in either directions during the year 2024-25 and 2023-24.

NOTE - 41 - FINANCIAL RISK MANAGEMENT
Risk management framework:

The Company''s principal financial liabilities, other than derivatives, comprises of trade and other payables, and financial
liabilities. Company uses short term bank facilities which is not outstanding as at the balance sheet date. The main
purpose of these financial liabilities is to finance the Company''s operations to support its operations. The Company''s
principal financial assets include loans, trade and other receivables, cash and cash equivalents, other bank balances
and other financial assets that derive directly from its operations. The Company also holds FVTPL investments.

The Company has an effective risk management framework which helps the Board to monitor the risks controls in key
business processes. In order to minimise any adverse effects on the bottom line, the Company takes various mitigation
measures such as credit control, foreign exchange forward contracts to hedge foreign currency risk exposures and
execution off set hedges to contain the zinc metal price risks. Derivatives are used exclusively for hedging purposes
and not as trading or speculative instruments.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk
i. Credit risk:

Credit risk is the risk that counter party will not meet its obligation leading to a financial loss. The Company is
exposed to credit risk arising from its operating activities primarily from trade receivables and from financing activities
primarily realting to parking of surplus funds with various schemes of Mutual Funds and as Deposits with Banks.
The Company considers probability of default upon initial recognition of assets and whether there has been a
significant increase in credit risk on an ongoing basis throughtout the reporting period. To assess whether there is
a significant increase in credit risk, the Company compares the risk of default occuring on the asset as at the
reporting date with the risk of default as at the date of initial recognition. This assessment is based on available
information and the business environment.

a) Trade and other receivables:

The Company has a Credit Policy and extends credit to its customers based on customer''s credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

Impairment of trade receivables:

The impairment provisions for trade receivables are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company''s past history, existing market conditions as well as forward looking
estimates at the end of each reporting period i.e. a practical expedient. The Company calculates expected credit
loss allowance based on the ageing of the days the receivables are due.

The Company has a Credit Policy and extends credit to its customers based on customer''s credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

Based on the assessment as at each reporting date, the expected credit loss allowance is as under

b) Financial Instruments and Cash Deposits

The credit risk from balances/deposits with Banks, current investments and other financial assets are managed
in accordance with company''s policy. Investment of surplus funds are primarily made in Liquid/Short Term Plan
of Mutual Funds and in Bank Deposits which carry a high external rating.

ii. Liquidity risk:

Liquidity risk is the risk that the company may encounter difficulty in meeting its obligations. The company prepares
a detailed Annual Operating Plan (AOP) to assess both short term as well as long term fund requirements. Detailed
month-wise cash flow forecast is also carried out to determine the working capital and other long term fund
requirements. The company funds both these requirements through internal accruals. The company also has working
capital credit lines approved from its bank, which besides non-fund based, provides healthy liquidity. These working
capital credit lines are from a nationalised bank.

iii. Market risk:

Market Risk is the risk that the fair value of the future cash flow will fluctuate because of changes in the market
prices such as currency risk, interest rate risk and commodity price risk.

a. 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 the Market interest rates.

Besides the impact of interest rate risk on the provision for retirement benefits, the company is not exposed to
significant interest rate risk at the respective reporting date as it does not have any borrowings.

If prices had been 100 basis points higher/lower, profit before tax for the year ended March 31, 2025 would
increase/decrease by Rs. 2.03 lakhs (for the year ended 31 March, 2024: Rs. 2.91 lakhs) as a result of the
changes in fair value of these investments which have been designated as at FVTPL.

c. Foreign currency risk

The Company operates to a small extent in the global market and is, therefore, exposed to insignificant foreign
exchange risk arising from foreign currency transactions i.e. exports and imports, primarily with respect to USD.
As these transactions are recorded in currency other than functional currencies (INR), the company is exposed
to foreign exchange risk arising from future commercial transactions and recognized assets and liabilities. As
the company is exposed to insignificant risk from change in foreign exchange rates, hedging of foreign currency
risk is not performed by the management.

NOTE - 44 - OTHER DISCLOSURE

(i) The company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property;

(ii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender;

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

(iv) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the
Companies Act, 2013;

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

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

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

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

(a) 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

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

vii) The company has no 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.

(viii) The company have not traded or invested in Crypto currency or Virtual Currency during the year.

(ix) The company does not have any subsidiaries therefore disclosure of compliance with layer of companies prescribed
under clause 2(87) of section 2 of the Companies Act, 2013 is not applicable.

NOTE - 45:

The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors
on May 27th, 2025. The financial statements as approved by the Board of Directors are subject to final approval by its
Shareholders.

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

For CNK Associates & LLP Link Pharma Chem Limited

Chartered Accountants

ICAI Firm Registration No. 101961W/W-100036 Satish G. Thakur Rishikesh Thakur

Chairman Managing Director

Pareen Shah (DIN:00292129) (DIN:08777265)

Partner

Membership No. 125011 Sanjib Dutta Khushbu Patel

Chief Financial Officer Company Secretary (M.No.: 65182)
Place : Vadodara Place : Vadodara

Date : 27th May, 2025 Date : 27th May, 2025

---

Mar 31, 2024

m. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase

in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best estimates.

Provisions are not recognised for future operating losses.

n. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in which they are incurred.

o. Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non—occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation that is not recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits
will arise. When an inflow of economic benefits is probable, contigent assets are disclosed in the financial
statements.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

p. Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company, excluding any costs of servicing equity other
than ordinary shares.

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

ii. Diluted earnings per share

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

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

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

q. Segment Reporting

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

r. Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and highly liquid
investments with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

Cash flow statement

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

The company has offered following assets as security to the bank as follow:

Primary Securities:

a) The hypothecation charge on stock and books debts of the company both present and future.

b) Equitable mortagage (with residual value) on land and building situated at Plot no 161/1 & 162, GIDC Industrial Estate
Nandesari owned by company.

c) Pledge of TDR face value of Rs. 5.00 Lakh.

d) Hypothecation of Existing Machinery & its components purchased out of Term loan -I and II.

Collateral Securities:

a) Equitable mortgage of Land and Building situated at plot No. 161/1 & 162, GIDC, industrial estate, Nandesari.

b) Hypothecation of Existing Plant and Machinery.

c) Pledge of TDR in the name of Co. face value 61.16 Lakh.

d) WCTL of 53 Lakhs shall be covered under Guarantee of NCGTC.

e) Personal guarantee given by 2 directors.

NOTE - 36 - DISCLOSURES FOR EMPLOYEE BENEFITS:

a. Defined benefit plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a grautity payout per the Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation
of India in the form of qualifying insurance policy for future payout of gratuity of the employees. Each year-end, the
management reviews the level of funding in the gratuity fund. Such review includes the asset - liability matching
strategy. The management decides its contributions based on the results of this review. The management aims to
keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.

The following table sets out the components of net benefit expense recognised in Statement of Profit and Loss and
the funded status and amounts recognised in the Balance Sheet for the respective plans:

b. Defined Contribution Plans

The Company makes Provident Fund contributions to defined contribution plan for qualifying employees. Under the
scheme, the Company is required to contribute a specified percentage of payroll costs to fund the benefits. The
Company has recognised provident fund contribution of ? 21.06 lakhs (March 31,2023 ? 21.02 lakhs) as expense
in Note 28 under the head ‘Contributions to Provident and Other Funds''.

NOTE - 37 - SEGMENT INFORMATION:

The Company has one production unit engaged in the manufacturing and job work of organic intermediates. Accordingly,
the Chief Operating Decision Maker monitors the operating results of both manufacturing and job work for the purpose
of making decision about resource allocation and performance assessment. Thus there are no separate reportable
segments in terms of the requirements of Ind AS 108 “Operating Segments” as notified under section 133 of the
Companies Act, 2013.

Geographical segment analysis:

(i) Revenues from customers attributed to an individual foreign country are NIL for the years ended on March 31,2024
and March 31,2023._

NOTE - 38 - DETAILS OF HEDGED AND UNHEDGED EXPOSURE IN FOREIGN CURRENCY DENOMINATED MONETARY
ITEMS:

Derivatives not designated as hedging instruments

The Company does not have exposure to foreign currency risk.

NOTE - 39 - CAPITAL MANAGEMENT:

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management
is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and
maximise shareholder value.

The Company determines the capital management requirements on the basis of Annual Budget and other strategic
investment plans as approved by the Board of Directors. The Company manages its capital structure and makes
adjustments to it in light of changes in economic conditions or its business requirements. To maintain or adjust the
capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits
(including other bank balance).

Note: The Company has invested in the equity instruments of various companies. However, the percentage of
shareholding of the Company in such investee companies is very low and hence, it has not been provided with
financial statements, future projections including projected profit and loss account by those investee companies.
Hence, the Company has estimated fair value based on available historical transaction details of such companies
and other information as available in the public domain. Since the future projections are not available, discounted
cashflow approach for fair value determination has not been followed. In light of no information available for future
projections, capacity utilisation, commencement of operations, etc., the valuation is based on cost approach.

Financial Instrument measured at amortised cost:

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

Transfer out of Level 3:

There was no movement in level 3 in either directions during the year 2023-24 and 2022-23.

Risk management framework:

The Company''s principal financial liabilities, other than derivatives, comprises of trade and other payables, and financial
liabilities. Company uses short term bank facilities which is not outstanding as at the balance sheet date. The main
purpose of these financial liabilities is to finance the Company''s operations to support its operations. The Company''s
principal financial assets include loans, trade and other receivables, cash and cash equivalents, other bank balances
and other financial assets that derive directly from its operations. The Company also holds FVTPL investments.

The Company has an effective risk management framework which helps the Board to monitor the risks controls in key
business processes. In order to minimise any adverse effects on the bottom line, the Company takes various mitigation
measures such as credit control, foreign exchange forward contracts to hedge foreign currency risk exposures and
execution off set hedges to contain the zinc metal price risks. Derivatives are used exclusively for hedging purposes
and not as trading or speculative instruments.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

i. Credit risk:

Credit risk is the risk that counter party will not meet its obligation leading to a financial loss. The Company is
exposed to credit risk arising from its operating activities primarily from trade receivables and from financing activities
primarily realting to parking of surplus funds with various schemes of Mutual Funds and as Deposits with Banks.
The Company considers probability of default upon initial recognition of assets and whether there has been a
significant increase in credit risk on an ongoing basis throughtout the reporting period. To assess whether there is
a significant increase in credit risk, the Company com pares the risk of default occuring on the asset as at the
reporting date with the risk of default as at the date of initial recognition. This assessment is based on available
information and the business environment.

a) Trade and other receivables:

The Company has a Credit Policy and extends credit to its customers based on customer''s credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

Impairment of trade receivables:

The impairment provisions for trade receivables are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company''s past history, existing market conditions as well as forward looking
estimates at the end of each reporting period i.e. a practical expedient. The Company calculates expected credit
loss allowance based on the ageing of the days the receivables are due.

The Company has a Credit Policy and extends credit to its customers based on customer''s credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

b) Financial Instruments and Cash Deposits

The credit risk from balances/deposits with Banks, current investments and other financial assets are managed
in accordance with company''s policy. Investment of surplus funds are primarily made in Liquid/Short Term Plan
of Mutual Funds and in Bank Deposits which carry a high external rating.

ii. Liquidity risk:

Liquidity risk is the risk that the company may encounter difficulty in meeting its obligations. The company prepares
a detailed Annual Operating Plan (AOP) to assess both short term as well as long term fund requirements. Detailed
month-wise cash flow forecast is also carried out to determine the working capital and other long term fund
requirements. The company funds both these requirements through internal accruals. The company also has working
capital credit lines approved from its bank, which besides non-fund based, provides healthy liquidity. These working
capital credit lines are from a nationalised bank.

iii. Market risk:

Market Risk is the risk that the fair value of the future cash flow will fluctuate because of changes in the market
prices such as currency risk, interest rate risk and commodity price risk.

a. 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 the Market interest rates.

Besides the impact of interest rate risk on the provision for retirement benefits, the company is not exposed to
significant interest rate risk at the respective reporting date as it does not have any borrowings.

iii. Market risk: (Contd.....)

a. Exposure to interest rate risk

The Company has exposure to short and long term fixed deposits invested at fixed rate of interest with banks. Thus
, it''s interest income and related cash inflows are not affected much by changes in the market interest rates.

b. Equity price risk

Price risk is the risk arising from investments held by the company and classified in the balance sheet either
at fair value through Other Comprehensive Income or at fair value through Profit & Loss Account. The company''s
investments are not current in nature and primariliy in Liquid Plan of Mutual Funds and listed equity shares which
are not exposed to significant price risk.

If prices had been 100 basis points higher/lower, profit before tax for the year ended March 31, 2024 would
increase/decrease by ? 2.91 lakhs (for the year ended 31 March, 2023: ? 3.62 lakhs) as a result of the changes
in fair value of these investments which have been designated as at FVTPL.

c. Foreign currency risk

The Company operates to a small extent in the global market and is, therefore, exposed to insignificant foreign
exchange risk arising from foreign currency transactions i.e. exports and imports, primarily with respect to USD.
As these transactions are recorded in currency other than functional currencies (INR), the company is exposed
to foreign exchange risk arising from future commercial transactions and recognized assets and liabilities. As
the company is exposed to insignificant risk from change in foreign exchange rates, hedging of foreign currency
risk is not performed by the management.

NOTE - 44 - OTHER DISCLOSURE:

(i) The company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property;

(ii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender;

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

(iv) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the
Companies Act, 2013;

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

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

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

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

(a) 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

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

(vii) The company has no 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.

(viii) The company have not traded or invested in Crypto currency or Virtual Currency during the year.

(ix) The company does not have any subsidiaries therefore disclosure of compliance with layer of companies prescribed
under clause 2(87) of section 2 of the Companies Act, 2013 is not applicable.

NOTE - 45:

The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors
on May 29th, 2024. The financial statements as approved by the Board of Directors are subject to final approval by its
Shareholders.

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

For CNK Associates & LLP Link Pharma Chem Limited

Chartered Accountants

ICAI Firm Registration No. 101961W/W-100036 Satish G. Thakur Rishikesh Thakur

Chairman Managing Director

Pareen Shah (DIN:00292129) (DIN:08777265)

Partner

Membership No. 125011 Sanjib Dutta Khushbu Patel

Chief Financial Officer Company Secretary
Place : Vadodara Place : Vadodara

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

---

Mar 31, 2015

1. Securities:

Principal :

* 1st Equitable Mortgage charge on Land & Building situated at Plot No. 161 & 162, GIDC, Ind. Estate, Nandesari.

* 1st equitable Mortgage charge on Land & Building at Plot No. 163 & 164, GIDC, Ind. Estate, Nandesari.

* Hypothication charge on Stocks and Book Debts.

Collateral:

* EQM of office premises situated at office no. 6-B-2, 6th floor, Ramkrishna chambers, Productivity Road, alkapuri, Vadodara.

1) The Notes referred to in the Balance Sheet and Statement of Profit and Loss form an integral part of the accounts.

2) In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

3) Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year

The above Information has been complied in respect of Parties to the extent to which they could be identified as Small Scale & Ancillary Undertakings on the basis of Information available with the Company.

4) Net Profit of Rs. 0/- (Previous year Net Profit of Rs. 6,74,212/-) on account of exchange difference has been considered under foreign exchange earning under the head of indirect Income in the profit and loss account.

5) In accordance with the requirements of AS-18 on related party disclosures, the names of the related parties where control exists and / or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are as under:

i. Key Managerial Personnel Executive Directors. B.V.Retarekar S.G.Thakur

ii. Relatives of Key Managerial Mayaben S Thakur Personnel Nehaben B Retarekar Mayank B Retarekar Rishikesh S Thakur

iii. Firms in which the Key Managerial Chloro Chem of India - Vadodara

Personnel & their relatives : Pharma Inter Chemie - Vadodara are interested

iv. Fellow/ Subsidiary / Associates: None

Figures in bracket represent Previous Year's figures.

6) Additional information pursuant to the provisions of paragraph 3 and 4 part II of schedule VI of the Companies Act, 2013.

7) AS - 15 Accounting For Retirement Benefits in Financial Statements of Employees:

* Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

* There are no VRS expenses incurred during the year.

---

Mar 31, 2014

1) The Notes referred to in the Balance Sheet and Statement of Profit and Loss form an integral part of the accounts.

2) In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

3) Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year.

4) During the year company has provided for income tax of 11,68,272-

5 ) Research & Development Expenditure is as follows:-

6) Names of Small Scale Industrial undertakings to which the company owes sums outstanding for more than 30 days as at the date of balance sheet are as under:

The above Information has been complied in respect of Parties to the extent to which they could be identified as Small Scale & Ancillary Undertakings on the basis of Information available with the Company.

7) Net Profit of Rs. 6,74,212/- (Previous year Net Profit of Rs. 1,43,721-) on account of exchange difference has been considered under foreign exchange earning under the head of indirect Income in the profit and loss account.

8) Auditors Remuneration is detailed here below:

9) In accordance with the requirements of AS-18 on related party disclosures, the names of the related parties where control exists and / or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are as under:

1. Key Managerial Personnel

0Executive Directors. B.V.Retarekar S.G.Thakur

2. Relatives of Key Managerial Mayaben S Thakur Personnel Nehaben B Retarekar Mayank B Retarekar Rishikesh S Thakur

3. Firms in which the Key Managerial Chloro Chem of India - Vadodara Personnel & their relatives are interested: Pharma Inter Chemie - Vadodara

4. Fellow/ Subsidiary / Associates : None

Figures in bracket represent Previous Year''s figures.

During the year there is no write off or right back of any amount due from or payable to related parties. Transactions with Related parties during the period are as under.

10) Additional information pursuant to the provisions of paragraph 3 and 4 part II of schedule VI of the Companies Act, 1956.

a) Particulars of Licensed and Installed Capacity and Actual Production (as certified by the management and accepted by the auditors without verification being a technical matter):

11) During last year the Company has Capitalized Rs. 15,00,000- towards interest, as borrowing Cost. Company follows the policy of Capitalizing Borrowing Costs that are directly attributable to the acquisition, Construction or Purchase of any Qualifying Asset.

12) The Company''s business activity falls within a single primary business segment namely, manufacturing of Chemicals, however the segment reporting of revenues for the Company is on the geographical location of the customers are as under:-

13) AS -15 Accounting For Retirement Benefits in Financial Statements of Employees:

* Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

* There are no VRS expenses incurred during the year.

* There are no provision made for retirement Benefits in books of accounts

---

Mar 31, 2013

Note 1:

The Notes referred to in the Balance Sheet and Statement of Profit and Loss form an integral part of the accounts.

Note 2:

In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

Note 3:

Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year.

Note 4:

During the year company has provided for income tax of Rs. 1,645,765/-

Note 5: Net Profit of Rs. 1,43,721.00 (Previous year Net Profit Rs. 1,01,027/-) on account of exchange difference has been considered under foreign exchange loss under the head of indirect Expenses in the profit and loss account.

Note 6: In accordance with the requirements of AS-18 on related party disclosures, the names of the related parties where control exists and / or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are as under:

1. Key Managerial Personnel Executive Directors B. V. Retarekar, S. G. Thakur

2. Relatives of Key Managerial Personnel Mayaben S Thakur, Nehaben B Retarekar,

Mayank B Retarekar, Rishikesh S Thakur

3. Firms in which the Key Managerial Personnel &

their relatives are interested Pharma Inter Chemie, Chloro Chem of India

4. Fellow/Subsidiary Associates None Figures in bracket represent Previous Year''s figures.

Note 7: During the last year the Company has Capitalized Rs. 54,66,3171- towards interest, as borrowing Cost but during the current year company has not incurred any interest towards capital expenditure. Company follows the policy of Capitalizing Borrowing Costs that are directly attributable to the acquisition, Construction or Purchase of any Qualifying Asset.

Note 8: AS - 15 Accounting For Retirement Benefits in Financial Statements of Employees:

* Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

* There are no VRS expenses incurred during the year.

* There is no provision made for retirement Benefits in books of accounts.

---

Mar 31, 2012

Note 1:

The Notes referred to in the Balance Sheet and Statement of Profit and Loss form an integral part of the accounts.

Note 2:

In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

Note 3:

Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year.

Note 4:

During the year company has provided for income tax of Rs.23,18,652/-

Note 5: Net Loss of Rs. 1,01,027 (Previous year Net Profit Rs. 71,516/-) on account of exchange difference has been considered under foreign exchange loss under the head of indirect Expenses in the profit and loss account.

Note 6: AS - 15 Accounting For Retirement Benefits in Financial Statements of Employees:

Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

There are no VRS expenses incurred during the year.

There is no provision made for retirement Benefits in books of accounts.

Note 7: Ankleshwar Unit is sold but still Cess, Modvate & Other excise balance is pending in the books of accounts.

---

Mar 31, 2011

1) The schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

2) In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

3) Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year.

4) During the year company has provided for income tax provision for Rs. 4,05,840/-

5) Net profit of Rs. 71,516 (Previous year Rs. 26,770/-) on account of exchange difference has been considered under foreign exchange earnings under the head of other income in the profit and loss account.

6) We are of the opinion that company will be contingently liable in respect of Gujarat Sales Tax of Rs.3,67,685/ - for financial year 2003-04.

7) In accordance with the requirements of AS-18 on related party disclosures, the names of the related parties where control exists and / or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are as under:

1. Key Managerial Personnel Executive Directors : B. V. Retarekar, S. G. Thakur

2. Relatives of Key Managerial Personnel : -

3. Firms in which the Key Managerial Personnel & their relatives are interested : Pharma Inter Chemie, Chloro Chem of India

4. Fellow / Subsidiary Associates : None

Figures in bracket represent Previous Year's figures. -

8) During the year the Company has Capitalized Rs.45,46,227/- towards interest, as borrowing Cost. Company follows the policy of Capitalizing Borrowing Costs that are directly attributable to the acquisition, Construction or Purchase of any Qualifying Asset.

9) We have selected some Debtors and Creditors on random basis to which confirmation letters have been sent, out of which some have confirmed the balance. Those who have confirmed, out of them all are tallying with balance as per books.

10) AS -15 Accounting For Retirement Benefits in Financial Statements of Employees:

-Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

-There is no VRS expenses incurred during the year.

-There is no provision made for retirement Benefits in books of accounts.

11) Ankleshwar Unit is sold but still Cess, Modvate & Other excise balance is pending in the books of accounts.

---

Mar 31, 2010

1) The schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

2) In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans and * advances and current assets, in the ordinary course of business, will not be less than the amount at which they are stated in the balance sheet.

3) Previous year figures have been regrouped, rearranged and recast to correspond with the figures of the current year.

4) During the year company has provided for income tax provision for Rs. 6,76,161/-

5) Net toss of Rs. NIL (Previous year Rs. Nil) on account of exchange difference has been considered under foreign exchange earnings under the head of other income in the prof and loss account.

8) We are of the opinion that company will be contingently liable in respect of Gujarat Saie^, Tax of Rs.3,67,685/ - for financial year 2003-04.

9) Disclosure of Earnings per Share (EPS) computation as per Accounting Standard- 20 of the institute of Char- tered Accountants of India:

10) In accordance with the requirements of AS-18 on related party disclosures, the names of the related parties where control exists and / or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are as under:

1. Key Managerial Personnel Executive Directors : B. V. Retarekar, S. G. Thakur

2. Relatives of Key Managerial Personnel : -

3. Firms in which the Key Managerial Personnel &

their relatives are interested : Pharma Inter Chemie, Chloro Chem of India

4. Fellow / Subsidiary Associates : None

Figures in bracket represent Previous Years figures.

During the year there is no write off or right back of any amount due from or payable to related parties.

11) During the year the Company has Capitalized Rs.21,84,096/- towards interest, Rs.3,18,386/- towards bank charges and commission and Rs.81,900/- towards legal and filing charges as borrowing Cost. Company follows the policy of Capitalizing Borrowing Costs that are directly attributable to the acquisition, Construction or Purchase of any Qualifying Asset.

12) We have selected some Debtors and Creditors on random basis to which confirmation letters have been sent, out of which some have confirmed the balance. Those who have confirmed, out of them all are tallying with balance as per books.

13) AS - 15 Accounting For Retirement Benefits in Financial Statements of Employees:

Employee benefits are not classified into short-term benefits, Post employment benefits and termination benefits.

There is no VRS expenses incurred during the year.

There is no provision made for retirement Benefits in books of accounts.

14) Anklashwar Unit is sold but still Cess, Modvate & Other excise balance is pending in the books of accounts.