Notes to Accounts of Mysore Petro Chemicals Ltd.

Mar 31, 2025

x. Provisions, contingent Liabilities and contingent assets

(a) Provisions:

A provision is recognised when the Company has a present obligation (legal or constructive) as
a result of past event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. If the effect of time value of money
is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risk 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. These are reviewed at each balance sheet date
and adjusted to reflect the current best estimates.

(b) Contingency liability:

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.

(c) Contingent assets:

The Company does not recognize a contingent asset but discloses its existence in the financial
statements if the inflow of economic benefits is probable. However, when the realisation of income
is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an
asset.

xi. Revenue recognition

The Company recognizes revenue to depict the transfer of promised goods or services to customers in
an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services. A 5-step approach is used to recognize revenue as below:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and it can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivable.

Sale of Goods:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer, which generally coincide with delivery of the goods. Revenue from
the sale of goods is measured at the fair value of the consideration received or receivable. Amounts
disclosed as revenue are net of returns and allowances, trade discounts and volume rebates, goods and
service tax (GST) and amounts collected on behalf of third parties

Interest Income:

Interest income is recognized on a time-proportion basis considering the amount outstanding and the
applicable interest rate. Interest income is included and classified under the head "other income” in the
standalone statement of profit and loss.

Dividend Income:

Dividend income on investments is recognized when the right to receive dividends is established.
Insurance Claims:

Insurance claim receivable is accounted for when the amount of the claim is finalized by the insurance
company.

xii. Borrowing Costs

Borrowing costs attributable to the acquisition of a qualifying assets are capitalized as part of the cost of
the assets till the assets is ready for its intended use and borrowing costs are being incurred. A qualifying

assets is an assets that necessarily takes a substantial period of time to get ready for its intended use. All
other borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing
cost includes interest expense incurred in connection with borrowing of funds and exchange difference
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest
cost.

xiii. Employee Benefit Expenses

i. Short-term employee benefit:

All employee benefits falling due wholly within twelve months of rendering the service are classified
as short-term employee benefits and they are recognized as an expense at the undiscounted
amount in the Standalone statement of profit and loss in the period in which the employee renders
the related service.

ii. Post-employment benefits

a) Defined Contribution Plan

The defined contribution plan is a post-employment benefit plan under which the Company
contributes a fixed contribution to a government-administered fund and will have no
obligation to pay further contributions. The Company''s contribution to defined contribution
plans is recognized in the Statement of Profit and Loss in the period in which the employee
renders the related service.

b) Defined Benefit Plan

The liability recognized in the balance sheet in respect of the defined benefit gratuity plan
is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method. The present value of the
defined benefit obligation is determined by discounting the estimated future cash outflows
using interest rates of government bonds and that have terms to maturity approximating to
the terms of the related gratuity.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return
on plan assets (excluding amounts included in net interest on the net defined benefit
liability), are recognized immediately in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. The Company recognizes the following changes in the net defined benefit obligation
as an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses
on curtailments and non-routine settlements; and

• Net interest expense or income

c) Other long-term benefits

The Company has other long-term benefits in the form of leave benefits. The present value
of the other long term employee benefits is determined based on actuarial valuation using
the projected unit credit method. The rate used to discount defined benefit obligation is
determined by reference to market yields at the Balance Sheet date on Indian Government
Bonds for the estimated term of obligations.

Actuarial gains or losses arising on account of experience adjustment and the effect of
changes in actuarial assumptions are recognised immediately in the statement of profit
and loss as income or expense.

Gains or losses on the curtailment or settlement of other long-term benefits are recognised
when the curtailment or settlement occurs.

xiv. Leases

The Company evaluates each contract or arrangement, and whether it qualifies as a lease as defined
under Ind AS 116.

Company as a Lessee:

A lease is classified at the inception date as a finance lease or an operating lease.

The Company assesses, whether the contract is, or contains, a lease at the inception of the contract or
upon the modification 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.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost
and a corresponding lease liability, except for leases with a term of twelve months or less (short-term
leases) and leases for which the underlying asset is of low value (low-value leases). For these short¬
term and low-value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability,
adjusted for any lease payments made at or prior to the commencement date of the lease, any initial
direct costs incurred by the Company, any lease incentives received and expected costs for obligations
to dismantle and remove right-of-use assets when they are no longer used.

Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and
accumulated impairment losses, if any. The right-of-use assets are depreciated on a straight-line basis
from the commencement date of the lease over the shorter of end of the lease term or useful life of the
right-of-use asset.

Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet
carrying amount may not be recoverable using cash flow projections for the useful life.

For lease liabilities at the commencement date, the Company measures the lease liability at the present
value of the future lease payments as from the commencement date of the lease to the end of the
lease term. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, the Company''s incremental borrowing rate for the asset subject to the lease in the
respective markets.

Subsequently, the Company measures the lease liability by adjusting carrying amount to reflect interest
on the lease liability and lease payments made.

The Company re-measures the lease liability (and makes a corresponding adjustment to the related right-
of-use asset) whenever there is a change to the lease terms or expected payments under the lease, or a
modification that is not accounted for as a separate lease.

The portion of the lease payments attributable to the repayment of lease liabilities is recognized in cash
flows used in financing activities. Also, the portion attributable to the payment of interest is included in
cash flows from financing activities. Further, Short-term lease payments, payments for leases for which
the underlying asset is of low-value and variable lease payments not included in the measurement of the
lease liability is also included in cash flows from operating activities.

Company as a Lessor:

In arrangements where the Company is the lessor, it determines at lease inception whether the lease
is a finance lease or an operating lease. Leases that transfer substantially all of the risk and rewards
incidental to ownership of the underlying asset to the counterparty (the lessee) are accounted for as
finance leases. Leases that do not transfer substantially all of the risks and rewards of ownership are
accounted for as operating leases. Lease payments received under operating leases are recognized
as income in the statement of profit and loss on a straight-line basis over the lease term or another
systematic basis. The Company applies another systematic basis if that basis is more representative of
the pattern in which the benefit from the use of the underlying asset is diminished.

xv. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker.

xvi. Foreign Currencies

The standalone financial statements are presented in INR, the functional currency of the Company. Items
included in the standalone financial statements of the Company are recorded using the currency of the
primary economic environment in which the Company operates (the ''functional currency'').

Foreign currency transactions are translated into functional currency using exchange rates at the date
of the transaction. Foreign exchange gains and losses from settlement of these transactions and from
translation of monetary assets and liabilities at the reporting date exchange rates are recognized in the
Statement of Profit and Loss.

xvii. Earnings per share (‘EPS'')

Basic earnings per share are calculated by dividing the net profit or loss (after tax) for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding during the year. The
weighted average number of equity shares outstanding during the period and all periods presented is
adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss (after tax) for the year
attributable to equity shareholders and the weighted average number of equity shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares.

xviii. Cash Flow Statement

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

1C. Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March,
2025, MCA has notified Ind AS-117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company w.e.f. 1^st April, 2024. Further, the proposed amendments
to Ind AS 21, "The Effects of Changes in Foreign Exchange Rates,” focus on clarifying the concept of currency
exchangeability and providing guidance on estimating spot exchange rates when a currency is not exchangeable
into another. The Company has reviewed the new amendment and, based on its evaluation, has determined that
it does not have any significant impact in its standalone financial statements.

A) The liquidator has been appointed w.e.f. 28^th October, 2024 with respect to the subsidiary company [Q C Polymer
Limited (England)] and the voluntary liquidation has been initiated from 23^rd December, 2024. As per the letter
dated 12^th February, 2025 from the joint administrator of the foreign subsidiary, the Subsidiary Company has
filed an Insurance Claim with its Insurance Company for the loss of its assets (GBP 1.3 million) and is also in the
process of filing various legal claims against the other parties. However, outcome of the insurance claim and
other legal proceedings are still not certain and hence, on a conservative basis, the Company has recognized
100% impairment loss/fair value loss aggregating to '' 2,534.59 lakhs with respect to its exposure to Subsidiary
Company (Investment, Unsecured Loan and Interest Receivable thereon) in the Standalone Financial Statement
of the Company and future claims received will be recognized as income in the year of recovery/certainty to its
collection. Further, in the current year the investment in the said subsidiary company has been classified from
investment at cost to investment at fair value through profit and loss as the Company losses its control w.e.f.
28^,h October, 2024.

B) Exceptional items for the year ended 31^st March, 2025 consist of (a) Profit '' 1,403.75 lakhs on the sale of
immovable properties to its associate company (I G Petrochemicals Limited) which was approved by the Board
of Directors and Shareholders in the previous year and (b) capital work in progress of '' 201.75 lakhs written off
due to discontinuing of the project at Raichur, Bangalore.

* Excluding provision for gratuity and leave encashment as the same is determined on overall basis by
the actuary

Transactions with Related Parties are identified by the Management and the same has been relied upon
by us.

3 Defined benefit obligation
I Gratuity

The Company has a unfunded gratuity plan and is governed by the Payment of Gratuity Act, 1972. Under
the Act, employee who has completed five years of service is entitled to specific benefit. The level of
benefits provided depends on the employee''s length of service and salary at retirement age.

35 Financial Risk Management Policies and objectives

The Company''s financial risk management is an integral part of how to plan and execute its business strategies.
The Company''s financial risk management policy is set by the Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change
in the price of a financial instrument. The value of financial instrument may change as a result of changes in
the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market
risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including
foreign currency receivables, payables, loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent
control over the entire process of market risk management. The treasury department recommends risk
management objectives and policies, which are approved by Senior Management and the Audit Committee.
The activities of this department include management of cash resources, implementing hedging strategies for
foreign currency exposures & borrowings.

Interest rate risk

The Company''s exposure to interest rate risk is minimal as the Company does not have any significant interest
earning asset or interest bearing liability. As such, the Company is not exposed to significant interest rate risk
as at the reporting date.

Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in a financial loss to
the Company. To manage this, the Company periodically assess the financial reliability of customers, taking
into account the financial condition, current economic trends, analysis of historical bad debts and agreeing of
accounts receivable. Individual risk limit are set accordingly.

Financial assets are provided for when there is no reasonable expectation of recovery, such as a debtor failing
to engage in a repayment plan with the Company. The Company categorises a loan or receivable for provision
as per provisioning policy of the Company. Where loans or receivables have been provided, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are
made, these are recognized in the Statement of Profit and Loss.

Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because
of changes in foreign currency rates. The Company evaluates exchange rate exposure arising from foreign
currency transactions and the Company follows established risk management policies. Currently, the Company
has considered foreign currency loan given and interest thereon as items which would be subject to major
foreign currency risk.

Price Risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded
price/ changes in fair value of investment.

The impact on Company''s Profit Before Tax and Other Equity due to change in fair value of investments is given
below

Note - In the above table, the management has not considered investment in Subsidiary and associate which
is carried at cost under non current investments.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium
term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk
arises primarily from mismatches of the maturities of financial assets and liabilities.

The table below analyse financial liabilities of the Company into relevant maturity groupings based on the
remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table
are the contractual undiscounted cash flows -

Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business.

The Company has adequate cash and bank balances. The company monitors its capital by a careful scrutiny of
the cash and bank balances, and a regular assessment of any debt requirements. In the absence of any debt,
the maintenance of debt equity ratio etc. may not be of any relevance to the Company.

36 Segment Information

For management purposes, the Company is into one reportable segment i.e. trading activity.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results
of its Company for the purpose of making decision about resource allocation and performance assessment.
Company''s performance as single segment is evaluated and measured consistently with profit or loss in the
standalone financial statements.

Valuation technique used to determine fair value:

(i) Level 2 investments are fair valued using net asset value on the basis of the statement received from
investee party.

(ii) The cost of unquoted investments included in Level 3 of fair value hierarchy approximate their fair value
because there is a wide range of possible fair value measurements and the cost represents estimate of
fair value within that range.

44 Other Statutory Information:

(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 does not have any transactions with companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

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

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

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

(vi) The Company 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 have not 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).

(viii) The title deeds of all the immovable properties including Investment property, Assets held for sale and
other line items where applicable to the financial statements, are held in the name of the company.

(ix) The Company has not been declared wilful defaulter by any bank or financial institution or government
or any government authority.

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

45 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered
necessary, to make them comparable with current years classification..

As per our attached report of even date For and on behalf of the Board of Directors of
For RMJ & Associates LLP Mysore Petro Chemicals Limited

Chartered Accountants CIN L24221KA1969PLC001799

Firm''s Registration No.: W100281

Rakesh Upadhyaya Dr. Vaijayanti Pandit Nikunj Dhanuka Mayank Dhanuka S N Maheshwari

Partner Chairperson Non-Executive Director Non-Executive Director Whole-time Director

Membership No.: 046271 DIN 06742237 DIN 00193499 DIN 00747034 DIN 00193540

Shanti Kumar Loonker Nilesh Panchal Labdhi Shah

Mumbai Independent Director Chief Financial Officer Company Secretary

21^st May, 2025 DIN 01482626 Membership No. 129078 Membership No. A57600

---

Mar 31, 2024

x. Provisions, contingent Liabilities and contingent assets

(a) Provisions:

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk 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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(b) Contingency liability:

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

(c) Contingent assets:

The Company does not recognize a contingent asset but discloses its existence in the financial statements if the inflow of economic benefits is probable. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

xi. Revenue recognition

The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to recognize revenue as below:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and it can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Sale of Goods:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which generally coincide with delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and allowances, trade discounts and volume rebates, goods and service tax (GST) and amounts collected on behalf of third parties

Interest Income:

Interest income is recognized on a time-proportion basis considering the amount outstanding and the applicable interest rate. Interest income is included and classified under the head “other income” in the standalone statement of profit and loss.

Dividend Income:

Dividend income on investments is recognized when the right to receive dividends is established. Insurance Claims:

Insurance claim receivable is accounted for when the amount of the claim is finalized by the insurance company.

xii. Borrowing Costs

Borrowing costs attributable to the acquisition of a qualifying asset are capitalized as part of the cost of the asset till the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost includes interest expense incurred in connection with borrowing of funds and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost.

i. Short-term employee benefit:

All employee benefits falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized as an expense at the undiscounted amount in the Standalone statement of profit and loss in the period in which the employee renders the related service.

ii. Post-employment benefits

a) Defined Contribution Plan

The defined contribution plan is a post-employment benefit plan under which the Company contributes a fixed contribution to a government-administered fund and will have no obligation to pay further contributions. The Company''s contribution to defined contribution plans is recognized in the Statement of Profit and Loss in the period in which the employee renders the related service.

b) Defined Benefit Plan

The liability recognized in the balance sheet in respect of the defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds and that have terms to maturity approximating to the terms of the related gratuity.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

• Net interest expense or income

c) Other long-term benefits

The Company has other long-term benefits in the form of leave benefits. The present value of the other long term employee benefits is determined based on actuarial valuation using the projected unit credit method. The rate used to discount defined benefit obligation is determined by reference to market yields at the Balance Sheet date on Indian Government Bonds for the estimated term of obligations.

Actuarial gains or losses arising on account of experience adjustment and the effect of changes in actuarial assumptions are recognised immediately in the statement of profit and loss as income or expense.

Gains or losses on the curtailment or settlement of other long-term benefits are recognised when the curtailment or settlement occurs.

____J

The Company evaluates each contract or arrangement, and whether it qualifies as a lease as defined under Ind AS 116.

Company as a Lessee:

A lease is classified at the inception date as a finance lease or an operating lease.

The Company assesses, whether the contract is, or contains, a lease at the inception of the contract or upon the modification 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.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost and a corresponding lease liability, except for leases with a term of twelve months or less (short-term leases) and leases for which the underlying asset is of low value (low-value leases). For these short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, adjusted for any lease payments made at or prior to the commencement date of the lease, any initial direct costs incurred by the Company, any lease incentives received and expected costs for obligations to dismantle and remove right-of-use assets when they are no longer used.

Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets are depreciated on a straightline basis from the commencement date of the lease over the shorter of end of the lease term or useful life of the right-of-use asset.

Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet carrying amount may not be recoverable using cash flow projections for the useful life.

For lease liabilities at the commencement date, the Company measures the lease liability at the present value of the future lease payments as from the commencement date of the lease to the end of the lease term. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, the Company''s incremental borrowing rate for the asset subject to the lease in the respective markets.

Subsequently, the Company measures the lease liability by adjusting carrying amount to reflect interest on the lease liability and lease payments made.

The Company re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever there is a change to the lease terms or expected payments under the lease, or a modification that is not accounted for as a separate lease.

The portion of the lease payments attributable to the repayment of lease liabilities is recognized in cash flows used in financing activities. Also, the portion attributable to the payment of interest is included in cash flows from financing activities. Further, Short-term lease payments, payments for leases for which the underlying asset is of low-value and variable lease payments not included in the measurement of the lease liability is also included in cash flows from operating activities.

Company as a Lessor:

In arrangements where the Company is the lessor, it determines at lease inception whether the lease is a finance lease or an operating lease. Leases that transfer substantially all of the risk and rewards incidental to ownership of the underlying asset to the counterparty (the lessee) are accounted for as finance leases. Leases that do not transfer substantially all of the risks and rewards of ownership are accounted for as operating leases. Lease payments received under operating leases are recognized as income in the statement of profit and loss on a straight-line basis over the lease term or another systematic basis. The Company applies another systematic basis if that basis is more representative of the pattern in which the benefit from the use of the underlying asset is diminished.

xv. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.

xvi. Foreign Currencies

The standalone financial statements are presented in INR, the functional currency of the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ''functional currency'').

Foreign currency transactions are translated into functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions and from translation of monetary assets and liabilities at the reporting date exchange rates are recognized in the Statement of Profit and Loss.

xvii. Earnings per share CEPS'')

Basic earnings per share are calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period and all periods presented is adjusted for events of bonus issue and share split.

For the purpose of calculating diluted earnings per share, the net profit or loss (after tax) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

xviii. Cash Flow Statement

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

. Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

E Terms/rights attached to equity shares

The Company has only one class of equity shares referred to as equity shares having a par value of '' 10 per share. Each holder of equity share is entitled to one vote per share. The Company pays the dividend in Indian Rupees. The final dividend is subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

33 Defined benefit obligation I Gratuity

The Company has a unfunded gratuity plan and is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee''s length of service and salary at retirement age.

35 Financial Risk Management Policies and objectives

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, payables ,loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures& borrowings.

Interest rate risk

The Company''s exposure to interest rate risk is minimal as the Company does not have any significant interest earning asset or interest bearing liability. As such, the Company is not exposed to significant interest rate risk as at the reporting date.

Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Company. To manage this, the Company periodically assess the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and agreeing of accounts receivable. Individual risk limit are set accordingly.

Financial assets are provided for when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorises a loan or receivable for provision as per provisioning policy of the Company. Where loans or receivables have been provided, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in the Statement of Profit and Loss.

Foreign Currency Risk

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changes in foreign currency rates. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies. Currently, the Company has considered foreign currency loan given and interest thereon as items which would be subject to major foreign currency risk.

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price /changes in fair value of investment.

The impact on Company''s Profit Before Tax and Other Equity due to change in fair value of investments is given below :

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

The table below analyse financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows -

Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company has adequate cash and bank balances. The company monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements. In the absence of any debt, the maintenance of debt equity ratio etc. may not be of any relevance to the Company.

36 Segment Information

For management purposes, the Company is into one reportable segment i.e. trading activity.

The Managing Director is the Chief operating Decision Maker of the Company who monitors the operating results of its Company for the purpose of making decision about resource allocation and performance assessment. Company''s performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements.

44 Other Statutory Information:

(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 does not have any transactions with companies struck off.

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

the statutory period.

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

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

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

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

(vi) The Company 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 have not 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

(viii) The title deeds of all the immovable properties including Investment property, Assets held for sale and other line items where applicable to the financial statements, are held in the name of the company.

(ix) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

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

45 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current years classification.

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

For RMJ & Associates LLP Mysore Petro Chemicals Limited

Chartered Accountants CIN L24221KA1969PLC001799

Firm''s Registration No.: W100281

Nirav Gosalia M M Dhanuka Shrikant Somani

Partner Managing Director Independent Director

Membership No.: 133110 DIN 00193456 DIN 00085039

Nilesh Panchal Labdhi Shah

Mumbai Chief Financial Officer Company Secretary

24^th May, 2024 Membership No.: 129078 Membership No.: A57600

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Mar 31, 2018

Note - 1: Related Party Disclosure

(A) List of related parties (as identified by management)

(i) Enterprises Owned or significantly influenced by KMP or their relatives:

I G Petrochemicals Limited

(ii) Key Management Personnel (KMP)

1. Mr M M Dhanuka - Managing Director & CEO

2. Mr Paras Jain - Chief Financial Office (upto May 31, 2017)

3. Mr Nilesh Panchal - Chief Financial Officer ( from June 1, 2017)

4. Mr Anand Kadkol - Company Secretary (upto January 19, 2018)

3. Ms Pragati Nathani - Company Secretary (from February 14, 2018)

(iii) Relatives of KMP.

1. Mrs Binadevi Dhanuka - Wife of Managing Director & CEO

2. Mr Mayank Dhanuka - Son of Managing Director & CEO

3. Mrs Neha Dhanuka - Son''s wife of Managing Director & CEO

(B) Transaction during the year ended and balances outstanding with related parties are as follows:

(i) Outstanding balances with related parties

The estimates of future salary increase, considered in actuarial valuation, taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

(II) Provident Fund

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefit in respect of Provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary. The contribution, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI) and Mysore Petro Chemicals Ltd Officers Provident Fund Trust (MPCL OPF Trust). The Company has no further obligation under the fund managed by the GOI and MPCL OPF Trust beyond its monthly contribution which are charged to the Statement of Profit and Loss in the period they are incurred except shortfall if any based on the Government specified minimum rate of return in the case of MPCL OPF Trust . The benefit are paid to employees on their retirement or resignation from the Company.

NOTES TO THE STANDALONE FINANCIAL STATEMENT AS AT MARCH 31, 2018 Note - 35: Note on Slump Sale

The Company has sold the Maleic Anhydride Unit situated at T-1, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra - 410 208 to I G Petrochemicals Limited (IGPL) as a going concern on slump sale basis effective from April 1, 2017 for consideration of Rs, 74.48 Crores (Rupees Seventy Four Crores Forty Eight Lakhs Only) as per valuation by Haribhakti & Co. LLP and also approved by shareholders of the Company. The Profit on sale of the unit amounting to Rs, 6,459.20 Lakhs is shown under Exceptional item.

Note - 2 :Financial Risk Management Policies and objectives

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, payables, loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures & borrowings.

Interest rate risk

The Company''s exposure to interest rate risk is minimal as the Company does not have any significant interest earning asset or interest bearing liability. As such, the Company is not exposed to significant interest rate risk as at the reporting date.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company maintains sufficient cash and cash equivalents to manage its liquidity risk.

Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Company. To manage this, the Company periodically assess the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and agreeing of accounts receivable. Individual risk limit are set accordingly.

Financial assets are provided for when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorizes a loan or receivable for provision as per provisioning policy of the Company. Where loans or receivables have been provided, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in the statement of profit and loss.

Foreign Currency Risk

Foreign Currency exposure as at balance sheet Date is Nil

Note -3: Pursuant to Ind AS -17 ‘Leases’, the following information is disclosed

a) The Company has given asset on operating lease. The lease rental are receivable by the Company on monthly basis.

b) Future minimum lease rentals receivable under non-cancellable lease agreements are as under:

Note - 4:

The operations of Phthalic Anhydride Plant at Raichur, Karnataka was closed during 3rd week of April 2013. The Board of Directors of the Company in their meeting held on June 4, 2013 had decided to close the unit permanently due to Economic unviability and the unit is closed since July 16, 2013.

Note - 5: Segment Information

For management purposes, the Company is into one reportable segment i.e. trading activity.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of its Company for the purpose of making decisions about resource allocation and performance assessment. Company''s performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements.

Note - 6: Proposed Dividend

The Board of Directors at its meeting held on May 29, 2018 have recommended a payment of final dividend of '' 2 (Rupees two only) per equity share of face value of '' 10 each for the financial year ended March 31, 2018. This amounts to '' 158.74 lakhs including dividend distribution tax of '' 27.07 lakhs.

NOTES TO THE STANDALONE FINANCIAL STATEMENT AS AT MARCH 31, 2018

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

Note - 7: First-time adoption of Ind AS

For all periods up to and including the year ended March 31, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP''). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP.

(A) Exemptions availed:

Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:

1 The Company has elected not to apply Ind AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 1, 2016 (‘Ind AS Transition Date'').

2 The Company has elected to consider the carrying value of all its items of property, plant and equipment and investment property recognized in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.

3 The carrying amounts of the Company''s investments in its associate company as per the financial statements of the Company prepared under Previous GAAP, are considered as deemed cost for measuring such investments in the opening Ind AS Balance Sheet.

Footnotes:

1 In the financial statements prepared under Previous GAAP, remeasurement of defined benefit plans, arising primarily due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognized in OCI as per the requirements of Ind AS 19- Employee benefits.

2 In the financial statements prepared under Previous GAAP, dividend on equity shares recommended by the Board of Directors after the end of reporting period but before the financial statements were approved for issue, was recognized as a liability in the financial statements in the reporting period relating to which dividend was proposed. Under Ind AS, such dividend is recognized in the reporting period in which the same is approved by the members in a general meeting.

3 Under Previous GAAP, there was no concept of Other comprehensive income. Under Ind AS, specified item of Income, expenses, gains or losses are required to be presented in Other Comprehensive income.

4 The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

5 In the financial statements prepared under Previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, revenue from sale of products includes excise duty. Excise duty expense amounting to '' 322.74 lakhs is presented separately on the face of the Statement of Profit and Loss for the year ended March 31, 2017.

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Mar 31, 2016

1. Relationship

(a) Subsidiary Companies Nil

(b) Enterprises Owned or significantly I G Petrochemicals Limited influenced by key management

personnel or their relatives

(c) Key Management Personnel Mr. M. M. Dhanuka - Managing Director

Mr. Paras Jain - Chief Financial Officer Mr. Anand Kadkol - Company Secretary

(d) Subsidiary Companies Nil

(e) Relatives of key management Mr. Nikunj Dhanuka - Brother''s Son of Managing Director personnel and their enterprises Mrs. Binadevi Dhanuka - Wife of Managing Director where transactions have taken place. Mr. Mayank Dhanuka - Son of Managing Director

Mrs. Rajkumari Dhanuka - Brother''s wife of Managing Director Mrs. Neha Dhanuka - Son''s wife of Managing Director Mr. Umang Dhanuka - Brother''s Son of Managing Director

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

2. Transaction carried out with related parties referred in 1 above, in ordinary course of business areas under:

Note: Amount in bracket represents figures for previous year.

i. General Description of defined benefit plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.__

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Provident Fund

Pending the issuance of Guidance Note from the Actuarial Society of India, the Company''s Actuary has expressed his inability to reliably measure the Provident Fund Liability. There is no deficit in the fund as at March 31st 2016 and no provision has been made.

ii. Defined Contribution Plan

Employee Benefits Expenses in Note 18 includes the following contributions to defined contribution plan

iii. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

Outstanding to parties covered under the Micro, Small and Medium Enterprises as per MSMED Act, 2006 have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

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

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Mar 31, 2015

1. Contingent Liabilities not provided for

a) Sales Tax matter under appeal - Case decided in favour of the 23.98 23.98 company which are taken further in appeal by Karnataka State Sales Tax Department.

b) Corporate Guarantees Given. (Amount outstanding). 4,644.58 4,757.12

c) The operations of Phthalic Anhydride Plant at Raichur, Karnataka was closed during 3rd week of April 2013. The Board of Directors of the Company in their meeting held on 4th June 2013 had decided to close the unit permanently due to Economic unavaibility and the unit was closed since 16th July 2013.

The workmen's union have raised certain demands and the matter has been referred to Industrial Tribunal, Hubballi, Karnataka by the Labour Department, Government of Karnataka and the matter is pending. As the matter is subjudice no provision has been made. Future cash out flow of the same are determinable on receipt of judgement / decision.

The employees benefits expense includes amount of Rs. 58.12 lacs (Previous year of Rs. 329.69 lacs) towards settlement to management staff and workmen.

52 workmen have not accepted the dues amounting to Rs. 93.17 lacs (without considering the effect of demand of the union), however provision has been made.

d) Workmen's Union demand of the Company at Taloja with effect from 1st June, 2014 is under negotiation, amount presently not ascertainable.

2. SEGMENT INFORMATION

The Company is mainly engaged in the business of manufacture and sale of chemicals and as the Company is managed organizationally as a united entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 - Segmental Reporting issued by the Institute of Chartered Accountants of India.

3. RELATED PARTY DISCLOSURE

1. Relationship

(a) Subsidiary Companies Nil

(b) Other related Parties / Associates I G Petrochemicals Limited

(c) Key Management Personnel Mr. M M Dhanuka - Managing Director

Mr.Paras Jain - Chief Financial Officer

Mr. Anand Kadkol - Company Secretary

(d) Relatives of key management Mr. Nikunj Dhanuka - personnel and their enterprises Brother's Son of Managing where transactions have taken place. Director

Mrs. Binadevi Dhanuka - Wife of Managing Director

Mr. Mayank Dhanuka - Son of Managing Director

Mrs. Rajkumari Dhanuka - Brother's wife of Managing Director

Mrs. Neha Dhanuka - Son's wife of Managing Director

Mr. Umang Dhanuka - Brother's Son of Managing Director

4. Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

i. General Description of defined benefit plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet.

5. Provident Fund

Pending the issuance of Guidance Note from the Actuarial Society of India, the Company's Actuary has expressed his inability to reliably measure the Provident Fund Liability. There is no deficit in the fund as at March 31st 2015 and no provision has been made.

iii. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

Outstanding to parties covered under the Micro, Small and Medium Enterprises as per MSMED Act, 2006 have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

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

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Mar 31, 2014

1. Contingent Liabilities not provided for

a) Sales Tax matter under appeal - Case 23.98 23.98 decided in favour of the company which are taken further in appeal by Karnataka State Sales Tax Department.

b) Corporate Guarantees Given. (Amount outstanding). 4,757.12 —

c) The operations of Phthalic Anhydride Plant at Raichur, Karnataka was closed during 3rd week of April 2013. The Board of Directors of the Company in their meeting held on 4th June 2013 had decided to close the unit permanently due to Economic unaviability and the unit was closed since 16th July 2013. The workmen''s union have raised certain demands and the matter have been referred to Industrial Tribunal,

Hubbali, Karnataka by the Labour Department, Government of Karnataka and the matter is pending. The employees benefits expense includes payment of Rs. 329.69 Lacs towards settlement made to management staff and few of the workmen, 52 workmen have not accepted the dues amounting to Rs. 93.17 Lacs (without considering the effect of demand of the union), as the matter is subjudiced the provision have not been made for these workmen. Future cash out flow of the same are determinable on receipt of judgement / decision.

2. Segment Information

The Company is mainly engaged in the business of manufacture and sale of chemicals and as the Company is managed organizationally as a united entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 - Segmental Reporting issued by the Institute of Chartered Accountants of India.

Note: Amount in bracket represents figures for previous year.

*As per contract with I G Petrochemicals Limited , certain exchange transaction of services / goods mutually beneficial have been entered into which have not been quantified above.

3. Employee Benefits

i. General Description of defined benefit plan

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

4. Provident Fund

Pending issuance of Guidance Note from the Actuarial Society of India, the Company''s Actuary has expressed his inability to reliably measure the Provident Fund Liability. There is no deficit in the fund as at March 31st 2014 and no provision has been made.

5. Research & Development

Research & Development Expenditure of Rs. 3.01 Lacs (Previous Year Rs. 11.53 Lacs) have been accounted for in the respective heads of the Statement of Profit and Loss.

6. Previous Year Comparatives

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

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Mar 31, 2013

NOTE - 1 : CONTINGENT LIABILITIES Contingent Liabilities not provided for

a) Bill of Exchange Discounted - Others — 108.56

b) Sales Tax matter under appeal - Case decided in favour of the 23.98 23.98 company which are taken further in appeal by Karnataka State Sales Tax Department.

NOTE - 2 : SEGMENT INFORMATION

The Company is mainly engaged in the business of manufacture and sale of chemicals and as the Company is managed organizationally as a united entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 - Segmental Reporting issued by the Institute of Chartered Accountants of India.

NOTE - 3 : EMPLOYEE BENEFITS

i. General Description of defned beneft plan

Gratuity

The Company has a defned beneft gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net beneft expense recognized in the Statement of Proft and Loss and the funded status and amounts recognized in the balance sheet.

Provident Fund

Pending issuance of Guidance Note from the Actuarial Society of India, the Company''s Actuary has expressed his inability to reliably measure the Provident Fund Liability. There is no defcit in the fund as at March 31st 2013 and no provision has been made.

iii. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

There are no outstanding to parties covered under the Micro, Small and Medium Enterprises as per MSMED Act, 2006. This information has been determined to the extent such parties have been identifed on the basis of information available with the Company. This has been relied upon by the Auditors.

NOTE - 4 : RESEARCH & DEVELOPMENT

Research & Development Expenditure of Rs. 11.53 Lacs (Previous Year Rs. 10.29 Lacs) have been accounted for in the respective heads of the Statement of Proft and Loss.

NOTE - 5 : PREVIOUS YEAR COMPARATIVES

Previous year''s fgures have been regrouped / reclassifed wherever necessary to correspond with the current year''s classifcation / disclosure.

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Mar 31, 2012

Contingent Liabilities not provided for



a) Bill of Exchange Discounted - Others 108.56 52.84

b) Sales Tax matter under appeal - Case decided in favour of the 23.98 23.98 company which are taken further in appeal by Karnataka State Sales Tax Department.

c) Workmen's Union Demands at Maleic Anhydride Unit of the Company at Taloja with effect from 1st June 2011 is under negotiation, amount presently not ascertainable.

The Company is mainly engaged in the business of manufacture and sale of chemicals*and as the Company is managed organizationally as a united entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 - Segmental Reporting issued by the Institute of Chartered Accountants of India.

The Company announced a Voluntary Separation Scheme (VSS) for the employees of one of the units during the year. A sum of Rs 43.26 Lacs (Previous Year Rs Nil) has been paid during the year and debited to Statement of Profit and Loss under the head "Employee Benefits Expense.

i. General Description of defined benefit plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet.

Research & Development Expenditure of Rs.10.29 Lacs (Previous Year Rs.8.17 Lacs) have been accounted for in the respective heads of the Profit and Loss Account.

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly changed the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

1. secured Loan

a. Working Capital Facility by The Saraswat Co-Operative Bank Ltd, a Scheduled Bank, is secured against Hypothecation of all movable properties of the Company including stocks and book debts of the company. The facility is further secured by collateral security of Equitable Mortgage of Land & Building at Raichur & Taloja and personal Guarantee by two Directors of the Company.

b. Hire Purchase loans are secured by the assets acquired through such loans.

2. The Company had obtained a legal opinion from an eminent legal counsel stating that privately placed debentures cannot be construed to be "Debentures" for the purpose of Clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956.

3. Stock in process includes Process / Production / Store Scrap materials Rs4,056 Thousand (Previous Year Rs 6,965 Thousand) valued at estimated realizable value.

4. Research & Development Expenditure of Rs817 Thousand (Previous Year Rs696 Thousand) have been accounted for in the respective heads of the Profit and Loss Account.

5. The Company has carried forward unabsorbed depreciation as per the Income Tax Act 1961. The net deferred tax assets have not been recognized considering the principle of virtual certainty as stated in the Accounting Standard AS-22 – Accounting for Taxes on Income.

6. segment Information

The Company is mainly engaged in the business of manufacture and sale of chemicals and as the Company is managed organizationally as a unified entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 – Segmental Reporting issued by the Institute of Chartered Accountants of India.

Note: Amount in bracket represents figures for previous year.

*As per contract with I G Petrochemicals Limited, certain exchange transactions of services / goods mutually beneficial have been entered into which have not been quantified above.

7. Provisions and Contingencies

Contingent Liabilities not provided for

a) Sales Tax Matter under appeal Rs2,398 Thousand (Previous Year ? 2,398 Thousand). Case decided in favour of the Company which are taken further in appeal by Karnataka State Sales Tax Department.

b) Bill of Exchange discounted with others Rs5,284 Thousand (Previous Year Rs8,228 Thousand)

8. employee Benefits

i. General Description of defined benefit plan

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet.

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Provident Fund

Pending the issuance of Guidance Note from the Actuarial Society of India, the Company's Actuary has expressed his inability to reliably measure the Provident Fund Liability. There is no deficit in the fund as at March 31, 2011 and no provision has been made.

As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors not ascertainable and therefore not included above.

As per terms of contract no commission is payable & hence the computation U/S 349 of the Companies Act, 1956 has not been given.

v. Details of dues to Micro, small and Medium enterprises as per MsMeD Act, 2006 There are no outstanding to parties covered under the Micro, Small and Medium Enterprises as per MSMED Act, 2006. This information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

9. Fixed Deposits of Rs3,600 Thousand (Previous Year Rs 13,380 Thousand) have been lodged with Banks and Rs15 Thousand (Previous Year Rs 5 Thousand) with Government Departments as a security.

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Mar 31, 2010

1. Secured Loan

a. Working Capital Facility by The Saraswat Co-operative Bank Ltd, a Scheduled Bank, is secured against Hypothecation of all movable properties of the Company including stocks and book debts of the company. The facility is further secured by collateral security of Equitable Mortgage of Land & Building at Raichur & Taloja and personal Guarantee by two Directors of the Company.

b. Factoring facility is secured by respective Book debts and personal guarantee by two Directors of the Company.

c. Hire Purchase loans are secured by the assets acquired through such loans.

2. The Company had obtained a legal opinion from an eminent legal counsel stating that privately placed debentures cannot be construed to be "Debentures" for the purpose of Clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956.

3. Stock in process includes Process / Production / Store Scrap materials Rs. 6965 Thousand (Previous Year Rs.5617 Thousand ) valued at estimated realizable value.

4. Research & Development Expenditure of Rs. 696 Thousand (Previous Year Rs.649 Thousand) have been accounted for in the respective heads of the Proft and Loss Account.

5. The Company has carried forward unabsorbed depreciation as per the Income Tax Act 1961. The net deferred tax assets have not been recognized considering the principle of virtual certainty as stated in the Accounting Standard AS-22 - Accounting for Taxes on Income.

6. Segment Information

The Company is mainly engaged in the business of manufacture and sale of chemicals and as the Company is managed organizationally as a unifed entity with various functional heads reporting to the top management there are no separate reportable segments as per Accounting Standard 17 - Segmental Reporting issued by the Institute of Chartered Accountants of India.

7. Related parties disclosures

1. Relationships

(a) Subsidiary Companies : Nil

(b) Other related Parties / Associates : I G Petrochemicals Limited

Bihariji Construction (I) Limited

(c) Key Management Personnel : Mr. M. M. Dhanuka - Managing Director

(d) Relatives of key management Nil personnel and their enterprises where transactions have taken place.

Note: Related party relationship is as identifed by the Company and relied upon by the Auditors.

8. Provisions and Contingencies Contingent Liabilities not provided for

a) Sales Tax Matter under appeal Rs.2398 Thousand (Previous Year Rs.2398 Thousand). Case decided in favour of the Company which are taken further in appeal by Karnataka State Sales Tax Department.

b) Bill of Exchange discounted with others Rs.8228 Thousand (Previous Year Rs.Nil)

c) Custom duties on raw materials under Advance Licence pending export obligation Rs. Nil (Previous Year Rs.203 Thousand)

d) Workmans Union Demands at Phthalic Anhydride Unit at Raichur with effect from 1st January 2010 is under negotiation , amount presently not ascertainable.

9. Employee Benefits

i. General Description of defined benefit plan

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the proft and loss account and the funded status and amounts recognised in the balance sheet.

10. Fixed Deposits of Rs.13380 Thousand (Previous Year Rs.13493 Thousand) have been lodged with Banks and Rs.15 Thousand (Previous Year Rs.15 Thousand) with Government Departments as a security.

11. Previous Year Comparatives

Previous years figures have been regrouped where necessary to conform to this years classification.