Notes to Accounts of Sadhana Nitro Chem Ltd.

Mar 31, 2025

2.6 Foreign Currency Transactions & Translations

The functional currency of the Company is Indian rupee.

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Foreign
currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance
sheet date.

Exchange rate differences resulting from foreign currency transactions settled during the period including year-
endtransalation of assets & liabilities are recognised in the statement of profit and loss.

Non-monetary assets which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of initial transation.

Changes in fair value of forward contracts designated as fair value hedge are recognised in the statement of profit and
loss.

2.7 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use. Interest income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation. Capitalization of borrowing cost is suspended and
charges to the statement of Profit and Loss during extended periods whenactive development activity on the
qualifying assets is interrupted.All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

2.8 Government grants

(i) Government grants in respect to manufacturing units located in developing regions :

The Company is entitled to various incentives from government authorities in respect of manufacturing units located
in developing regions. The Company accounts for its entitlements on accrual basis on approval of the initial claim by
the relevant authorities and there is reasonable assurance that the grants will be received.

(ii) Government grants in respect of additional Capital Expenditures :

Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire
capital assets is accounted for as deferred income. The grant is recognised as income over the life of a depreciable
asset by accounting deferred income in the Statement of Profit and Loss on a systematic and rational basis over the
useful life of the asset.

(iii) Export Incentives

Export incentives under various schemes are accounted for in the year of export.

2.9 Employee benefits

(1) Defined Contribution Plan:

Payments to defined contribution retirement benefit schemes viz. Company''s Provident Fund Scheme and
Superannuation Fund are recognised as an expense when the employees have rendered the service entitling them to
the contribution.

(2) Defined Benefit Plan:

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on
plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit
recognised in other comprehensive income in the period in which they occur.

Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will
not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);

• net interest expense or income; and

• remeasurement.

(i) Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on
termination of employment of an amount equivalent to 15/26 days salary payable for each completed year of service.
Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits
payable in future based on an independent actuarial valuation. The Company has taken a Group Gratuity cum Life
Assurance Scheme with Life Insurance Corporation for future payment of gratuity to the eligible employees.

(ii) Compensated Absences:

The Company provides for the encashment of compensated absences with pay subject to certain rules. The
employees are entitled to accumulate compensated absences subject to certain limits, for future encashment.
Accumulated leave, which is expected to be utilised within the next twelve months, is treated as short-term employee
benefit and the accumulated leave expected to be carried forward beyond twelve month is treated as long-term
employee benefit which are provided based on the number of days of un utilised compensated absence on the basis
of an independent actuarial valuation.

2.10 Taxation

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity, respectively. Income tax expense represents the sum of the tax
currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as
reported in the statement of profit or loss and other comprehensive income/statement of profit or loss because of
items of income or expense that are taxable or deductible in other years and items that are never taxable or
deductible.

The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end
of the reporting period.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are
recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and
their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at
the time of the transaction.

Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be

utilised. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable
income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority
and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

2.11 Property, Plant and Equipment

Property, plant and equipment held for use in production or supply of goods or services or for administrative purposes
are stated at cost less accumulated depreciation/amortization less accumulated impairment, if any. The cost of fixed
assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the
asset ready for its intended use, and interest on borrowings attributable to acquisition of qualifying fixed assets up to
the date the asset is ready for its intended use.

Capital work-in-progress for production, supply of administrative purposes is carried at cost less accumulated
impairment loss, if any, until construction and installation are complete and the asset is ready for its intended use.

Depreciation is recognized (other than on capital work-in-progress) on a straight line basis over the estimated useful
lives of assets in respect of property plant & equipment & computers acquired after 1st April 2006. Property plant &
equipment including non factory building furniture fixutures & vehicles acquired prior to 1st April 2006 are depreciated
under WDV Method at the rates prescribed under Schedule II of Companies Act, 2013. Depreciation on assets
acquired/ purchased, sold/discarded during the year is provided on a pro-rata basis from the date of each addition till
the date of sale/retirement.

The economic useful lives of assets is assessed based on a technical evaluation, taking into account the nature of
assets, the estimated usage of assets, the operating conditions of the assets, past history of replacement, anticipated
technological changes, maintenance history, etc.The estimated useful life is reviewed at the end of each reporting
period, with effect of any change in estimate being accounted for on a prospective basis.

Where the cost of part of the asset is significant to the total cost of the assets and the useful life of that part is different
from the useful of the remaining asset, useful life of that significant part is determined separately. Depreciation of such
significant part, if any, is based on the useful life of that part.

Freehold land is not depreciated.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item
of property, plant and equipment, determined as the difference between the sales proceeds and the carrying amount
of the asset, is recognized in the Statement of Profit or Loss.

2.12 Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization. Amortization is recognized on a straight line basis over their estimated useful lives of 5 years, which
reflects the pattern in which the asset''s economic benefits are consumed. The estimated useful life, the amortization
method and the amortization period are reviewed at the end of each reporting period, with effect of any change in
estimate being accounted for on a prospective basis.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, and are recognised in the profit or loss when the asset is
derecognised.

2.13 Impairment of tangible and intangible assets other than goodwill:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if
any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognized immediately in profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset
(or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit and loss.

2.14 Inventories

Inventories of raw materials, stock-in-trade, stores & spares, Fuel, packing material, work in progress, stock in trade
and finished goods are valued at the lower of cost and net realizable value after providing for obsolescence and other
losses, where considered necessary. Stock of scrap and spent acid is valued at net realizable value. Cost comprieses
all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location
and condition. Stores and spares are valued on weighted average cost basis and all others are valued on a FIFO
basis.

2.15 Financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which
are unrestricted for withdrawal and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair
value through other comprehensive income on initial recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or
loss.

Investment in subsidiaries

Investment in subsidiaries are measured at cost as per Ind AS 27 - Separate Financial Statements.

Financial liabilities

Financial liabilities are measured at amortised cost using the effective interest method.

Financial guarantee contracts:

A Financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of
a debt instruments.

Financial guarantee contracts issued by a holding company are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of :

• The amount of loss allowance determined in accordance with impairment requirements of IND AS 109; and

• The amount initially recognised less, when appropriate, the cumulative amount of income recognised in
accordance with the principles of IND AS 18.

Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its
liabilities. Equity instruments recognised by the Company are recognised at the proceeds received net off direct issue
cost.

Reclassification of Financial Assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial
assets which are debt instruments, a reclassification is made only if there is a change in the business model for
managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior
management determines change in the business model as a result of external or internal changes which are
significant to the company''s operations. Such changes are evident to external parties. A change in the business
model occurs when a company either begins or ceases to perform an activity that is significant to its operations. If the
Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which
is the first day of the immediately next reporting period following the change in business model. The Company does
not restate any previously recognized gains, losses (including impairment gains and losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to
realize the assets and settle the liabilities simultaneously.

2.16 Earnings Per Share (EPS)

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share.
Basic earnings per share is computed by dividing the net profit or loss for the period by the weighted average number
of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit or loss
for the period by the weighted average number of equity shares outstanding during the period as adjusted for the
effects of all diluted potential equity shares except where the results are anti-dilutive.

2.17 Current/Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An
asset is classified as current when it satisfies any of the following criteria:

- It is expected to be realized or intended to be sold or consumed in normal operating cycle

- It is held primarily for the purpose of trading

- It is expected to be realized within 12 months after the date of reporting period, or

- Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after reporting period.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

A liability is current when it satisfies any of the following criteria:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within 12 months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting
period Current liabilities include the current portion of long term financial liabilities.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets and their realization in cash and cash equivalents.
The Company has identified 12 months as its operating cycle.

2.18 Share Capital
Ordinary Shares

Ordinary shares are classified as equity. Incremental costs, if any, directly attributable to the issue of ordinary shares
are recognized as a deduction from other equity, net of any tax effects.

2.19 Fair Value Measurement

Fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell an asset or transfer the liability takes place either:

- in the principle market for the asset or liability

- in the absence of principle market, in the most advantageous market for the asset or liability.

The principle or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

The fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that would
use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted (Unadjusted) Market prices in active markets for incidental assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

directly or indirectly observable

Level 3 - Valuation Techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers that have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

Determination of Fair Value

1) Financial Assets - Debt Instruments at amortized cost

After initial measurement the financial assets are subsequently measured at amortized cost using the Effective
Interest Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or cost that are an integral part of the EIR.

2) Financial Assets - Debt Instruments at Fair Value through Other Comprehensive Income (FVTOCI)

Measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the Other
Comprehensive Income (OCI). On derecognition of the asset, cumulative gain or loss previously recognized in OCI is
reclassified from the equity to P&L.

3) Debt instruments & derivatives at Fair Value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

4) Equity Instruments at Fair Value through Other Comprehensive Income

On initial recognition, the Company can make an irrevocable election (on an instrument by instrument basis) to
present the subsequent changes in fair value in ither comprehensive income pertaining to investments in equity
instruments. These elected inbestments are initially measured at fair value plus transaction costs. Subsequently, they
are measured at fair value with gains / losses arising from changes in fair value recognized in other comprehensive
income. This cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

5) Financial Liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit & loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Companies financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts and derivative financial instruments.

Subsequent Measurement

Fair value through Profit & Loss

Financial liabilities at fair value through profit & loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. All changes in fair value of such liabilities are
recognised in statement of profit or loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as
through the EIR amortization process. The EIR amortization is included as finance costs in the statement of profit and
loss.

2.20 Dividend

Dividend on share is recorded as liability on the date of approval by the shareholders and is shown as a reduction
from retained earnings under Other Equity.

2.22 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments are the segments for which separate financial
information is available and for which operating profit / loss amounts are evaluated regularly by the Chief Operating
Decision Maker (CODM) in deciding how to allocate resources and in assessing performance.

''The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on
the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the
basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets
and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have
been included under “unallocated revenue / expenses / assets / liabilities”.

(i) During the year ended 31st March, 2025,the Company has issued and allotted 8,23,52,603 fully paid up Equity Shares under
rights issue at an issue price of Rs. 6.06 per share (including a premium of Rs. 5.06 per Equity Share) to eligible equity
shareholders in the ratio of 1 Right Equity Share for every 3 fully paid -up equity share held. Accoringly, the paid up equity share
capital of the Company has been increased from Rs. 24,70,58,454 to Rs. 32,94,11,057 by addition of 8,23,52,603 equity shares.

(ii) During the year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719 equity shares of Re. 1/- each to
eligible shareholders of equity shares on the book closure date (i.e. 5th July, 2023) as fully paid up bonus equity shares by
capitalizing reserves

(iii) The company has converted 65,20,606 share warrants into equivalent no of equity shares of Rs 1 each at a premium of Rs
152.36 /- per equity shares on preferential basis during the year ended 31-03-2023 .These shares are under lock -in for a period
of one year from the date of issue and consequently restricted for transfer.

(iv) (iv) During the year ended 31st March, 2022, the Company has issued and allotted 5,58,90,894/- equity shares of Re. 1/- each
to eligible shareholders of equity shares on the book closure date (i.e. 19th July, 2021) as fully paid up bonus equity shares by
capitalizing reserves.

(v) During the year ended 31st March, 2021, the Company has issued and allotted 4,65,75,745/- equity shares of Re. 1/- each to
eligible shareholders of equity shares on the book closure date (i.e. 17th September, 2020) as fully paid up bonus equity shares
by capitalizing reserves.

Capital Reserve

Capital Reserve is utilised in accordance with the provisions of the Act.

Capital Redemption Reserve

Capital redemption reserve represents reserve created on redemption of preference shares. It is non distributable reserve.
During the year ended March 31,2024 the company has utilised Rs. 34,10,088/- of the reserve towards issued of fully paid
up bonus shares.

Securities Premium Reserve

Securities premium reserve represents the amount received by the company on issue of securities over and above the face
value of the securities. During the year ended March 31, 2024 the company has utilised Rs. 4,15,09,631 of the reserve
towards issue of fully paid up bonus shares. During the year ended 31st March, 2025, the company has raised money
through rights issue at Rs. 6.06 per equity share, including premium of Rs. 5.06 per equity share which has been credited to
Securities Premium Reserve.

Retained Earnings

The amount that can be distributed by the company as dividend to its equity shareholders.

Transition Revaluation Reserve

Transition Reserve represents reserve created on transition from Accounting Standards to Ind AS.

General Reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purpose.

(a) Term loan from banks & other financial institutions are secured by charge created on plant & machinery, motor vehicles and
factory land and building and residential property situated at Roha Raigad. Refer Note (d) below for terms of repayment, rate of
interest etc. Further, these loans are secured by a lien on amounts invested in fixed deposits as mentioned in Note No. 12 to
these financial statements. Further, these loans are also secured by the personal guarantees of Mr. Asit Javeri & Abhishek
Javeri, Chairman and Managing Director, and Corporate guarantee of Manekchand Panachand Trading Investment Co Pvt
Ltd, holding company of the Company and shares of the Company held by the holding Company.

(b) Further, the Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between
8.10% to 12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and
future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the
company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds
and further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of
Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

(c) Inter Corporate Deposits are carrying interest rate in the range of 10-15% and repayable on or before March 31,2025.

Note No. 27: Financial Instruments and Risk Review
Capital Management

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the
focus on total equity to uphold the investor, creditor and customer confidence and to ensure future development of its
business. The Company is focused on keeping strong total equity base to ensure independence, security as well high
financial flexibility for potential future borrowings, if required without impacting the risk profile of the company. The
Company''s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual
dividends in future periods. The amount of future dividends of equity shares will be balanced with efforts to continue to
maintain an adequate liquidity status.

Financial Risk Management Framework

The company has exposure to the following risks arising from financial assets & liabilities :

a) Credit risk

b) Liquidity risk

c) Market risk

i) Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract
leading to financial loss. The credit risk arises principally from its operating activities ( primarily trade receivables) and
from its financing activities including deposits with banks and financial institutions and other financial instruments.

The customer credit is managed by the company''s established policy , procedures and controls relating to customer
credit management. The company has established a credit policy under which each new customer is analysed
individually for credit worthiness before the company''s standard payment and delivery terms and conditions are
offered. The company''s review includes external ratings where available and other publicaly available financial
information. Outstanding customers receivables are regularly monitored and any shipment to major customers are
generally covered by letter of credit or other forms of credit insurance.

ii) Liquidity risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to
ensure as far as possible that will have sufficient liquidity to meet its liabilities when they are due under both normal and
stressed conditions without incurring unacceptable losses or risking damage to company''s reputation.

The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is
perceived. In addition, the company maintains the following line of credit.

The Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between 8.10% to
12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future
current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company,
present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds and
further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of
Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

iii) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is
primarily on account of foreign currency exchange rate risk.

Foreign Currency exchange rate risk

The Company operates internationally and major portion of the business is transacted in several currencies and
consequently the company is exposed to foreign exchange risks through operating activities in foreign currency.

28.1 During the year ended 31st March ,2025, the Company has issued and allotted 8,23,52,603 fully paid up Equity
Shares of Re. 1/- each at an issue price of Rs 6.06 per share (including a premium of Rs 5.06 per Equity Share) to
eligible equity shareholders.

28.2 During the previous year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719
equity shares of Re. 1/- each to eligible equity shareholders on the book closure date (i.e. 5th July, 2023)
as fully paid up bonus equity shares by capitalizing reserves.

The earning per share figures for the previous year have been restated to give effect of the allotement of the bonus
shares, as required by IND-4533, ''Earning Per Share'' Accordingly the opening & closing no. of outstanding equity
shares has been restated and consequently the EPS for the previous year has also been restated.

Note 29 : Employee benefits

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plan administered by the Regional Provident
Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to
fund the benefits. The Company has recognized Rs. 1,21,29,667/- towards Provident Fund and other fund contributions
(March 31,2024: Rs. 1,08,97,616 /-)in the Statement of Profit and Loss. The provident fund and ESIC contributions payable
by the Company are in accordance with rules framed by the Government from time to time.

(b) Defined Benefit Plans:

Gratuity

The employee''s gratuity fund scheme managed by a trust is a defined benefit plan.The present value of the obligation is
determined based on actuarial valuation using the projected unit credit method,which recognises each period of service as
giving rise to adiitional unit of employee benefit entitlement and measures each unit seperately to build up the final
obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation,take into account inflation,seniority promotion
and other relevant factor including supply and demand in the employment market. The above information is certified by
actuary. The expected rate on plan assets is determined considering several applicable factor,mainly the composition of
plan assets held assessed risk ,historical result of return on plan assets and the company''s policy for plan assets
management.

The Company has a defined benefit plan for every employee who has completed five year 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 unfunded.

The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to
employees as and when claimed.

Note 30 : Corporate Social Responsibility

As required under Section 135 of the Companies Act, 2013, the Board of the Company in its meetings held on 19th October,
2018 has constituted a Corporate Social Responsibility Committee (CSR Committee).

The Board of Directors of the Holding Company has approved the CSR policy based on the recommendation of the CSR
Committee and is in the process of identifying the activities for CSR spends.

Reasons for not spending the amount

The Company had undertaken a major expansion project which entailed a significant capital outlay over the past three
years. Accordingly, majority of the Company''s limited resources were utilized during this period towards the completion of
the expansion project & towards the day to day operations of the Company.

However, the unprecedented Covid-19 pandemic, severly affected the market conditions globally which put tremendous
strain on the working capital requirements and resulted in a financial squeeze on the operating margins of the Company.
During the current financial year, the company has completed a significant portion of its expansion. This coupled with an
improvement in the global market conditions will help reduce the strain on the finances of the Company in the subsequent
year which in turn will enable the Company to meets its past obligations with reagrds to Corporate Social Responsibility.

The Company has already spent the necessary amount towards Corporate Social Responsibility expenditure for the
financial year ended 31st March, 2025 which was required to be spent in compliance with the provisions of Section 135 of
the Companies Act, 2023. The Company shall strongly endeavour to meet its past CSR spending obligations by transferring
the amount of Rs. 218.19 Lakhs to the funds prescribed under Schedule VII of the Companies Act at the earliest possible.

Note 33

Transfer Pricing

The Company has ''international transactions with associated enterprises'' which are subject to Transfer Pricing regulations
in India. These regulations, inter alia, require the maintenance of prescribed documents and information for the basis of
establishing arm''s length price including furnishing a report from an Accountant within the due date of filing the return of
income.

For the fiscal year ended March 31,2025, the Company has taken necessary steps including conducting a study as required
by the regulations and the Accountant''s report in this regard is awaited. In the opinion of the management, the transactions
are carried out at arm''s length and no adjustments is expected to arise thereon.

Note 34

Segment Reporting

In accordance with Ind AS 108, "Operating Segments", the Company has presented segment information on the basis of
consolidated financial statements which form part of this report.

Note 35

Borrowing Cost

During the year, the Company has capitalized Rs. 1402.58 Lakhs (P.Y. Rs. 566.69 Lakhs ) as part of cost of qualifying CWIP
as borrowing costs.

Note 36 : Significant estimates and assumptions
Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assests or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change
due to market changes or circumstances arising that are beyond the control of the Company. Such changes will be reflected
in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or Cash Generating Unit (CGU) exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The
cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is
not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested.
The recoverable amounts sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

Defined Benefit Plans (Gratuity Benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary increases
and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of
the post-employment benefit obligation.

The mortality rate is based on publicaly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates.

Details about gratuity obligations are given in Note 29.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, the fair value is measured using valuation techniques including the DCF model. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value target and the discount factor.

The Company has valued its financial instruments through profit & loss which involves significant judgements and estimates
such as cash flows for the period for which the instrument is valid, EBITDA of investee company, fair value of share price of
the investee company on meeting certain requirements as per the agreement, etc. The determination of the fair value is
based on expected discounted cash flows. The key assumptions take into consideration the probability of meeting each
performance target and the discount factor.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that are either
observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in
part using a valuation model based on assumption that are neither supported by prices from observable current market
transaction in the same instrument nor are they based on available market data.

The Investments included in leval 3 of fair value heirachy have been valued using the cost approach to arrive at their fair
value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value
measurements and the cost represents estimate of fair value within the range.

Note 40 : Details of Benami Property held

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the year.

Note 41 : Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any other lender during the year.
Note 42 : Relationship with Struck Off Companies

The Company does not have any transactions or balances with the companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year and the previous year.

Note 43 : Registration of Charges or satisfaction with Registrar of Companies (ROC)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for
registration, modification or satisfaction with Registrar of Companies (ROC) beyond the statutory period except in case of
Rs. 41,50,000/- taken from Kotak Mahindra Prime Ltd., against hypothecation of vehicle.

Note 44 : Compliance with number of layers of companies

The Company is in compliance with the relevant provisions of the Companies Act, 2013 with respect to the number of layers
prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of
Layers) Rules, 2017.

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity,
including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or
entity, including foreign entity (“Funding Parties”).

Note 46 :

The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as
income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

Note 47 :

The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.
Note 48 :

There has been no fraud by the Company or on the Company during the year and previous year.

Note 49 :

There is no scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year and hence, no disclosures are required to be made by the Company in these financial statements
for the year ended 31st March, 2025

Note 50 : Dividend

Dividend paid during the year

Dividends paid during the year ended March 31,2025 include an amount of Rs 0.15 per equity share towards final dividend
for the year ended March 31,2024. Dividends paid during the year ended March 31,2024 include an amount of Rs. 0.15 per
equity share towards final dividend for the year ended March 31,2023.

Dividend declared

Dividends declared by the Company are based on the profits available for distribution. The Board of Directors have
proposed a final dividend of 10% i.e. Rs. 0.10 (Previous year Rs. 0.15) per equity share amounting to Rs. 3,29,41,106/- for
the year 2024-25 ( Previous year Rs. 3,70,58,768/-) after the balance sheet date, subject to the approval of shareholders at
the ensuing Annual General Meeting of the Company and therefore, the proposed final dividend has not been recognised as
the liability as at the balance sheet date in line with Ind AS 10 on ''Events after the reporting period''.

Note 51 : Events Occuring after the balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization.

Note 52 : Acquistion of Calchem Industries (India) Limited

During the year, the company has completed the acquistion of Calchem Industries (India) Limited ("Calchem"), a company
under insolvency proceedings as approved by the order of the Honorable National Company Law Tribunal (NCLT) dated
October 29, 2024. The Company has taken possession of Calchem Industries (India) Limited, along with the plant, land and
machinery at Roha which adjacent to Company''s current factory. Pursuant to this acquisition, Calchem Industries (India) Ltd
is now a wholly owned subsidiary of Sadhana Nitro Chem Limited (SNCL).

The acquisition cost of Rs. 950 Lakhs has been paid in the nature of subscription of share capital of Calchem amounting Rs.
200 Lakhs and the balance as a loan to the subsidiary as a loan at the rate of 15% p.a.

(i) The above difference are due to the fact that the valuation of inventory of raw material, work in progress & finished goods
submitted to the banks where based on the approximation / previous quarter''s costing figures as the same were due for
submission to banks within a fortnight of month closing, whereas in the books of accounts the valuation was done using
the actual costing as at the quarter ending. The differences arisen due to these are not material.

Note 54 : Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. In Lakhs as per the

requirement of Schedule III of the Companies Act, 2013, unless otherwise stated.

Note

---

Mar 31, 2024

Footnotes:

(i) Deposit with carrying amount of Rs 75.04 Lakhs (31st March 2023 Rs 13.00 Lakhs) are subject to first charge against bank guarantees.

(ii) Deposit with carrying amount of Rs. 50.00 Lakhs (31st March 2023 Rs 50.00 Lakhs) has been given as a security deposit to the Ministry of Pharamaceuticals, Chemicals & Fertilizers towards the PLI Scheme.

(iii) Deposit with carrying amount of Rs. 110.79 Lakhs ( 31st March 2023 Rs. 110.79 Lakhs) has been given as a security deposit to Northern Arc Pvt Ltd against the borrowing of Rs. 10 crores from them.

(iv) Deposit with carrying amount of Rs. 247.37 Lakhs ( 31st March 2023 Rs. 238.24 Lakhs) has been given as a security deposit to Vivriti Capital Pvt Ltd against the borrowing of Rs. 20 crores from them.

(v) Deposit with carrying amount of Rs. 331.34 Lakhs (31st March 2023 Rs 328.82 Lakhs) has been given as a security against Overdraft facility and Term Loan facilities availed from them B190.

(i) During the year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719 equity shares of Re. 1/- each to eligible shareholders of equity shares on the book closure date (i.e. 5th July, 2023) as fully paid up bonus equity shares by capitalizing reserves

(ii) The company has converted 65,20,606 share warrants into equivalent no of equity shares of Rs 1 each at a premium of Rs 152.36 /- per equity shares on preferential basis during the year ended 31-03-2023 .These shares are under lock -in for a period of one year from the date of issue and consequently restricted for transfer.

(iii) During the year ended 31st March, 2022, the Company has issued and allotted 5,58,90,894/- equity shares of Re. 1/- each to eligible shareholders of equity shares on the book closure date (i.e. 19th July, 2021) as fully paid up bonus equity shares by capitalizing reserves.

(iv) During the year ended 31st March, 2021, the Company has issued and allotted 4,65,75,745/- equity shares of Re. 1/- each to eligible shareholders of equity shares on the book closure date (i.e. 17th September, 2020) as fully paid up bonus equity shares by capitalizing reserves.

(b) Terms/Rights attached to Equity shares:

The company has only one class of equity shares having at par value of z 1/- (P.Y. z 1/-)per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing annual general meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by share holder.

Capital Reserve:

Capital Reserve is utilised in accordance with the provisions of the Act.

Capital Redemption Reserve

Capital redemption reserve represents reserve created on redemption of preference shares. It is non distributable reserve. During the year ended March 31,2024 the company has utilised Rs. 34.10 Lakhs of the reserve towards issued of fully paid up bonus shares.

Securities Premium Reserve

Capital redemption reserve represents reserve created on redemption of preference shares. It is non distributable reserve. During the year ended March 31,2024 the company has utilised Rs. 415.07 Lakhs of the reserve towards issued of fully paid up bonus shares.

Retained Earnings

The amount that can be distributed by the company as dividend to its equity shareholders.

Transition Revaluation Reserve

Transition Reserve represents reserve created on transition from Accounting Standards to Ind AS.

General Reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purpose.

(a) Term loan from banks & other financial institutions are secured by charge created on plant & machinery, motor vehicles and factory land and building and residential property situated at Roha Raigad. Refer Note (e) below for terms of repayment, rate of interest etc. Further, these loans are secured by a lien on amounts invested in fixed deposits as mentioned in Note No. 12 to these financial statements. Further, these loans are also secured by the personal guarantees of Mr. Asit Javeri & Abhishek Javeri, Chairman and Managing Director, and Corporate guarantee of Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company and shares of the Company held by the holding Company.

(b) The company has foreign currrency working capital facilities from a Bank at interest rate of 7.75% p.a. These facilities are secured by exclusive charge on present and future stocks and book debts, exclusive charge on entire plant and machinery. Further secured by personal guarantee of Chairman and Managing Director and Corporate Guarantee of Holding Company.

(c) Further, the Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between 6.60% to 12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds and further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

(d) Further, the Company has working capital facilities in Indian currency from a bank carrying interest rate ranging between 6.65% to 12.00 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116 and further secured by personal guarantee of Chairman and Managing Director of the company.

(e) Inter Corporate Deposits are carrying interest rate in the range of 10-15% and repayable on or before March 31,2025,

Effective from April 1,2019, the company adopted I nd AS 116 "Lease", applied to all lease contracts existing on April 1,2019 using the modified retrospective approach and has taken the cumulative adjustment to retained earnings, on date of initial application. Due to transition, the nature of expenses in respect of certain leases under erstwhile standard has changed from ''Lease Rental'' to Depreciation & Amortization expenses and Finance cost'' for the Right to use assets and on Lease Liability respectively. Due to the accounting treatment as per this Standard, the current year profit has been Reduced by Rs. 198.90 Lakhs

(Previous Year profit Increased by Rs. 159.92 Lakhs)

24.1 During the financial year ended 31st March, 2023, the management has changed the policy with regards to leave encashment. As per the revised leave policy, there will be no leave encashments post 1st April, 2022 and unavailed leave couting to a maximum of 15 days in a year will be allowed to be carried forward subject to a maximum accumulation upto 45 days of leave. This change in policy has resulted in a significant dcrease in accumulated leave encashment liability which has resulted in the reversal of provisions of earlier years during the year ended 31st March, 2023

Note No. 27: Financial Instruments and Risk Review Capital Management

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold the investor, creditor and customer confidence and to ensure future development of its business. The Company is focused on keeping strong total equity base to ensure independence, security as well high financial flexibility for potential future borrowings, if required without impacting the risk profile of the company. The Company''s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual dividends in future periods. The amount of future dividends of equity shares will be balanced with efforts to continue to maintain an adequate liquidity status.

Financial Risk Management Framework

The company has exposure to the following risks arising from financial assets & liabilities :

a) Credit risk

b) Liquidity risk

c) Market risk

i) Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract leading to financial loss. The credit risk arises principally from its operating activities ( primarily trade receivables) and from its financing activities including deposits with banks and financial institutions and other financial instruments.

The customer credit is managed by the company''s established policy , procedures and controls relating to customer credit management. The company has established a credit policy under which each new customer is analysed individually for credit worthiness before the company''s standard payment and delivery terms and conditions are offered. The company''s review includes external ratings where available and other publicaly available financial information. Outstanding customers receivables are regularly monitored and any shipment to major customers are generally covered by letter of credit or other forms of credit insurance.

Majority of the balance of trade receiavbles of the Company are from eight (P.Y. seven) customers of which one is a wholly owned subsidiary of the Company.

The total outstanding from these customers as at year end is Rs. 11846.27 Lakh (P.Y. Rs. 6618.70 Lakh)

Credit risk on cash and cash equivalenet is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit ratings agencies.

ii) Liquidity risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to ensure as far as possible that will have sufficient liquidity to meet its liabilities when they are due under both normal and stressed conditions without incurring unacceptable losses or risking damage to company''s reputation.

The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. In addition, the company maintains the following line of credit.

The company has foreign currrency working capital facilities from a Bank at interest rate of 7.75% p.a. These facilities are secured by exclusive charge on present and future stocks and book debts, exclusive charge on entire plant and machinery. Further secured by personal guarantee of Chairman and Managing Director and Corporate Guarantee of Holding Company.

Further, the Company has working capital facilities in Indian currency from a banks carrying interest rate ranging between 6.60% to 12.75 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116, investments in Mutual Funds and further secured by personal guarantee of Chairman and Managing Director of the company and Corporate guarantee of Manekchand Panachand Trading Investment Co Pvt Ltd, holding company of the Company.

iii) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.

Foreign Currency exchange rate risk

The Company operates internationally and major portion of the business is transacted in several currencies and consequently the company is exposed to foreign exchange risks through operating activities in foreign currency.

28.1 During the previous year ended 31st March, 2024, the Company has issued and allotted 4,49,19,719 equity shares of Re. 1/- each to eligible equity shareholders on the book closure date (i.e. 5th July, 2023) as fully paid up bonus equity shares by capitalizing reserves.

The earning per share figures for the previous year have been restated to give effect of the allotment of the bonus shares, as required by IND-AS 33, ‘Earning Per Share''. Accordingly the opening & closing no. of outstanding equity shares has been restated and consequently the EPS for the previous year has also been restated.

Note 29 : Employee benefits(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plan administered by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to fund the benefits. The Company has recognized Rs. 108.98 Lakhs towards Provident Fund and other fund contributions (March 31,2023: Rs. 98.68 Lakhs)in the Statement of Profit and Loss. The provident fund and ESIC contributions payable by the Company are in accordance with rules framed by the Government from time to time.

(b) Defined Benefit Plans:

Gratuity

The employee''s gratuity fund scheme managed by a trust is a defined benefit plan.The present value of the obligation is determined based on actuarial valuation using the projected unit credit method,which recognises each period of service as giving rise to adiitional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation,take into account inflation,seniority promotion and other relevant factor including supply and demand in the employment market. The above information is certified by actuary. The expected rate on plan assets is determined considering several applicable factor,mainly the composition of plan assets held assessed risk ,historical result of return on plan assets and the company''s policy for plan assets management.

The Company has a defined benefit plan for every employee who has completed five year 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 unfunded.

The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

As required under Section 135 of the Companies Act, 2013, the Board of the Holding Company in its meetings held on 19th October, 2018 has constituted a Corporate Social Responsibility Committee (CSR Committee).

The Board of Directors of the Holding Company has approved the CSR policy based on the recommendation of the CSR Committee and is in the process of identifying the activities for CSR spends.

Reasons for not spending the amount

The Company had undertaken a major expansion project which entailed a significant capital outlay over the past three years. Accordingly, majority of the Company''s limited resources were utilized during this period towards the completion of the expansion project & towards the day to day operations of the Company.

However, the unprecedented Covid-19 pandemic, severly affected the market conditions globally which put tremendous strain on the working capital requirements and resulted in a financial squeeze on the operating margins of the Company. During the current financial year, the company has completed a significant portion of its expansion. This coupled with an improvement in the global market conditions will help reduce the strain on the finances of the Company in the subsequent year which in turn will enable the Company to meets its past obligations with reagrds to Corporate Social Responsibility.

The Company has already spent the necessary amount towards Corporate Social Responsibility expenditure for the financial year ended 31st March, 2024 which was required to be spent in compliance with the provisions of Section 135 of the Companies Act, 2023. The Company shall strongly endeavour to meet its past CSR spending obligations by transferring the amount of Rs. 218.19 Lakhs to the funds prescribed under Schedule VII of the Companies Act at the earliest possible.

Note 31 : Contingent liabilities and commitments (to the extent not provided for)
Particular	March 31, 2024	March 31, 2023
(i) Contingent liabilities :
(a) Contingent Liabilities for (Net of amount paid against the demand) :	-	-
- Income Tax Act 1961 (F.Y. 2013-14)	0.55	0.55
- Employees Provident Fund and Miscellaneous Provisions Act 1952#	-	58.77
- Employees Provident Fund and Miscellaneous Provisions Act 1952#	4.72	4.72

#The Company is subject to legal proceedings and claims which have arisen in the ordinary course of business from Direct tax laws(TDS), Indirect tax laws and Other Laws. Future cash outflow, if any in respect of these matters are determinable only on receipt of judgements /decisions pending at various stages before the appellate authorities. The Management is of the opinion that the matters would be resolved in favour of the Company. The Company Management does not reasonable expect that these legal action when ultimately concluded and determined would have a material and adverse effect on the Company''s result of operations or financial condition.

(ii) The erstwhile subisidiary, Spidigo Net Private Limited, which merged with the Company during the current financial year (Refer Note No. 49) had received Demand notice u/s 14B under Employees Provident Funds and Miscellaneous Provisions Act, 1952 from the period 01/04/2016 to 31/05/2019 for Rs 16.98 Lakhs. Demand of Rs 16.98 Lakhs consist of followings:

Note 33

Transfer Pricing

The Company has ‘international transactions with associated enterprises'' which are subject to Transfer Pricing regulations in India. These regulations, inter alia, require the maintenance of prescribed documents and information for the basis of establishing arm''s length price including furnishing a report from an Accountant within the due date of filing the return of income.

For the fiscal year ended March 31,2024, the Company has taken necessary steps including conducting a study as required by the regulations and the Accountant''s report in this regard is awaited. In the opinion of the management, the transactions are carried out at arm''s length and no adjustments is expected to arise thereon.

Note 34

Segment Reporting

In accordance with Ind AS 108, "Operating Segments", the Company has presented segment information on the basis of consolidated financial statements which form part of this report.

Note 35

Borrowing Cost

During the year, the Company has capitalized Rs. 566.70 (P.Y. Rs. 799.31 ) as part of cost of qualifying CWIP as borrowing costs.

Note 36 : Significant estimates and assumptions Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assests or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes will be reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or Cash Generating Unit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amounts sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Defined Benefit Plans (Gratuity Benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicaly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Details about gratuity obligations are given in Note 29.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, the fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value target and the discount factor.

The Company has valued its financial instruments through profit & loss which involves significant judgements and estimates such as cash flows for the period for which the instrument is valid, EBITDA of investee company, fair value of share price of the investee company on meeting certain requirements as per the agreement, etc. The determination of the fair value is based on expected discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.

The Investments included in level 3 of fair value heirachy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within the range.

Note 40: Details of Benami Property held

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the year.

Note 41: Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or any other lender during the year.

Note 42: Relationship with Struck Off Companies

The Company does not have any transactions or balances with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year and the previous year.

Note 43: Registration of Charges or satisfaction with Registrar of Companies (ROC)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration, modification or satisfaction with Registrar of Companies (ROC) beyond the statutory period.

Note 44: Compliance with number of layers of companies

The Company is in compliance with the relevant provisions of the Companies Act, 2013 with respect to the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

Note 45: Utilisation of Borrowed Funds and Share Premium under Rule 11(e)

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”).

Note 46:

The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

Note 47:

The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year. Note 48 :

There has been no fraud by the Company or on the Company during the year and previous year.

Note 49 :

There is no scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year and hence, no disclosures are required to be made by the Company in these financial statements for the year ended 31st March, 2024

Note 50: DividendDividend paid during the year

Dividends paid during the year ended March 31,2024 include an amount of Rs 0.15 per equity share towards final dividend for the year ended March 31,2023. Dividends paid during the year ended March 31,2023 include an amount of Rs. 0.15 per equity share towards final dividend for the year ended March 31,2022.

Dividend declared

Dividends declared by the Company are based on the profits available for distribution. The Board of Directors have proposed a final dividend of 15% i.e. Rs. 0.15 (Previous year Rs. 0.15) per equity share amounting to Rs. 370.59 for the year 2023-24 ( Previous year Rs. 303.21) after the balance sheet date, subject to the approval of shareholders at the ensuing Annual General Meeting of the Company and therefore, the proposed final dividend has not been recognised as the liability as at the balance sheet date in line with Ind AS 10 on ''Events after the reporting period''.

Note 51: Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

Note 52: Borrowings from banks for Credit Facility

There is no material or significant deviation in the quarterly returns or statements of current assets filed by the Company with the banks or financial institutions vis-a-vis the books of accounts for the year. The deviations, if any, have been intimated by the Company to the banks or financial institutions, wherever necessary.

(i) The stock statements submitted to ICICI bank includes stock of store spares which are not included in the stock statement of Citibank due to the difference in the definition of Inventories as prescribed by the respective banks.

(ii) The above difference are due to the fact that the valuation of inventory of raw material, work in progress & finished goods submitted to the banks where based on the approximation / previous quarter''s costing figures as the same were due for submission to banks within a fortnight of month closing, whereas in the books of accounts the valuation was done using the actual costing as at the quarter ending. The differences arisen due to these are not material.

Note 53: Events Occuring after the balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization.

Note 54: Previous Year Figures

Previous year''s figures have been regrouped, rearranged & reclassified where ever considered necessary.

---

Mar 31, 2023

PROVISION AND CONTIGENT LIABILTY

Financial assots an- subsequently measured at amorl.sed cost i? these fiiancial assets ara held within a business
whose object-ve s to hoid these assets in order 10 collect contractual cash flows and the contractual terms of the
financml asset give rise an spec-tied dates to cash flows lh-H are solely payments of principal ano inlerosl on tho
principal amount outstanding

Fir 3 ncisit 3 s sets 3t fair value throu gh other eompre hengive income

Fmsrvial aggintH. :rra meaSuf&d -affair vrsi ii-h through ntner nnmpneherns :ve income il thosa financial -issets :^rr- hs-rt
within a tmgiPKHS whose fctjjpttrve ig ach^evert hy l>mh pOttetJing ttuntigclual cash flows end helling Fi-ianc.-al ftggfllg
am the crmtiarfu.il temljs of tiie ! rnndel egg Hi rpivH r ga cm speciher dates hr rash Mows hat are golely psymantg ot
principal and internet online principal amounteutsiandlijg

Financial atfcats :it lejr vaiti ei through profit or log-i

Financial assets are measured at ia i valor;- through profit or loss unless it is measured at ante; Listed cost .jr at fair
value through other comproionstve rtcome pn initial recognition Ti.s tians-action costs d roctiy attributable to the
acquisition of financial assets and liabilities a; fair value through profii or loss are irnniediateiy rocogoiserj in profit or
less

Investment in subsidiaries

Ihvestnlent in suijjjtd aries niwmea fiursrl at r:os1 05 per Isid A?; J 7 - $£ r.g''Kte Fi-ian. ¦ al SUlteme n t-
Financial ligtitiiies

FnancielI nh;l lieseremeasuredgl amortisedcost u$inqHie^FfHrCiv-H ulmertmethod
Fin a ncial gu b ra ntee contrac fa:

A Financial guarantee contract in a contract that rnqumi the Issuer to piata s-pselfled payments fa reimburse the
holder dpi a loss it incurs because a ujHjcifmd debtor fai is to make payment s wher: d uu In accord a: ice wtLi i fra terms or
adebllr^trumants.

Financial guarantee contracts issues by a housing company are initially measured ol their Fair values ants, it not
designated ss at FVTPL. aresubsequently measurec nl the higher a*

¦ Tire amount of toss allowance determined In nccGfdancew''th mparmenl requirements oFINDAS 109 end

The ensoiml Initicr lly recognised less, when appropriate. 1he com Illative 3moon1 of income rewgn''sed in
accondancewrln the principles cut IMG AS 13

Equity instruments

An equity Instrument 15 ecpnlrard (hat evidences residual Interest in the assets mi IheCpmp^nyatte'' nertudlnq ell ml its
I: a b ill 1199 Equity ji ;ilru irie¹ Its : eaigrii Sect Li y I lie Cor tpflr r,¹ are r eCOgi Used a: the proceeds, received i le I u"¹ 11 ir act icsj a
co&L

Reclassification of Financial Assets.

The C c ni pariy da to rmines clas sifi cation or" Fi n andal assets and I labil tics on irItkJ reoog n itioi l Alta.MiiItlal i ecoqnition,
no ^classification is made For Financial assets winch are equity itistmnents and linandal i abilties. For fiiaitcia!
assets which are debt instrumenls, a tecinssiFicanon is made wily it thaw s g change in the business mode¹ for
managing those assets.. Changes lo the business model are expected to be Infrequent The Company''s senior
marage-men! determines change in Ihe business rnodel as a ^resull Of external or internH charges which are
significant to ihe company''s opera:ions Such charges a-re evident lo external parties A change in the business

model one u rs when a company eitl’ er Jiegi n s nr ceases In perform gp activity that is significant [n it a operatic ns I f the
Ccrnnany neo 1*53 ihas Finanoiat esse 1s. it apinhes 1he nacfaseiflCalfoh p-rnsnectively frnn: Lhe redaBSificetinn dele
Wh r:h s (tie first ray of hie -irrr “''Lately next re pel no period fotawlng "lie change .n business model I tie Crn''p.any
? D“S hit resiata ary pnaviDLisly recognizee qa n9, loSts-efi (including impairment gains and loSSfiS}or interesl

DftsEftlinu of financial I tistrum erltfi

Financial p spots anc i nancial lipbiktias arc offer: L una the net amourtl is reported in I ho Balance Shed t tnsrc Is
cuiiontly enforceable legal rigM to offset Lno recognizees amounts and Lhoruis an n ten ion to setlfe on a net basis, to
i eatizu tl it s ssets and settle the li abilitiae si m j ta n eousiy

2.16 Earnings Per Share (EPS)

The Company reports basic one difol-ed eamrngs per share in accordance with Ind AS 33 on Earnings per gtiane
Fig sic eamings per share is computed by divid r.n I lie net profit -a i- loss for the per od by the weighrtaif average number
of equily sb afpscmfotfl nding during the period Diluted eani nq S pe r ahare tnmpute.i by d ivi ding I lie net profit or loss
For Ihe period by I lie we ghted average numher nf ecinty shares outstapdirig drtring the perlnd as ad.n.sred for the
e Ifeots n1 al! d iluted pnte n lial equily stie res exon pt where the resuIts are anti-mlUlive

2*17 C u r reritfFJ ur i-Cu r r e at ClESSitlcdtLon

I tit Onrrlpaiiy presents assels and liabilities, nl tf''i: balarlce stieet based oh c.uhuiilAiarl-Clji lerit dasS-lflcatldh. An
assot is class iflod as parent wh,a n 11 sa tist; a s c n y -of the folio™ ng criteria:

It is expect&o to bt raalized or intended to tte snilcor consumed lit normal opera ting cycle
It is held primarily for the purposo of irac ing

it is expected lobe realized within (SmQnltisaffjrfiie date of reporting period or

Cash and cash egnivalcnl unless restricted From being exchanged or used to settle a Hab-lMy for at least 12
monrbsafterreportingpenod.

Currenr assets include the current portion of non-cumenl financial assets
All otherasuets are c ass-ifierins non-cirrerh.

Almn-lily in c.rrent when It sstislies g.ny oflhe fallow rin orilgria''

It is expected lohe settled In nomiel oye''eting cycle

II iftiiald pi''iniarilyfcir Ltie purpose hf trading

It li due to her StrllfL rt wi LI i in 12 months afti: r Itis reporting pt i lod. Or

Tlwa :s no uiruodtiition^t right to defer (ho settfemEnt of the liability fur al least 12 months aftei Ute ipportirig
poriod Currant I ubil.liii''S include LluLi-curr-QriLLiorLioi''. c.f -iiiiy ttinr i rtancia; iobi''isiefi.

The Company classtfies another liatnlltics as non current

Doferrod tax asselsantl l abiltios are classified as non-current assets anc liabtlil cs

The operating eye''e :S the time beTwei;pthe acquisi^rion of assets gnd their realization it casts anjdt cash equivalents
The Compar y bo s identified 12 nfjn th s as its operating cycle.

?.1J5 Share Capital
Ordinary Shares

Ordinary shares aretiewitieEi as equity, incremental cost:;, deny, dlwdlyattnbuteWe idine issue at ordinary shares
H''e PB''pogn /srasa deduction fiornc-lhef nquity, not of anyfex effects

2.19 Fal r Value Measu re ment

r bSli- value IS Lhu price that would lie reC&ivad from the calc of Ml asset pr paid La transfer 3 liability In an orderly
transaction betwaan ma-''koi |..arlrCioan!s a! iht niGaeuromiir''L data. Trio fair value measuroaient is cased on [he
o resumption that tlieiraniaciid: i lo sell an as set crtransterthenaPi.ity takes ptacssIlhsR

- in (tie prm :lpfe market for (he H-?set ..i I atnl ly

- in th B 3 hsence of principle mgrkel. in (he most n dvar.tg gaous m arkel for the S5501 or Liability
The pn nciplti or the most advantageous fti a rk-st must be accessible by the Company.

The fa ir vulua of an ussui or a I lability is ineasured u sir ig th* assumptions ihai inartcet partu::pants Mould use wttar;
pricing Urn asset *1 liability, assuming that market Participant sect In than etaiiu.''iMi test Interest.

This In r vaLia measure mail! pf a onn-^: n annual asset take* mint acc-onnl a fnarKiel parlidpgntahhity [p qaiiarele
ecpn am ic ben etife by iijmc 1 h e assel in Its hiq haul a nd best uge nr by sel¹ mg It to a not ''ifl^r m h rket particip a nt that wg.i: rt
usstHi''esset In fts highest end beitpsa

The Company uses valuation techniques the! :ane? Hpnroprnte m the circumstances and for which snff-cient octa are
availnniR In measure tair value maximizing the use of relevant tyhaervah e inputs am minimizing the use of
unobservable ;npuls.

All assets one liabiin e-; for which fatryelije ¦& m&ssured or disclosed in Ihe financsl slarennents are categorized wit h n
me fair value hierarchy, desorbed as follows based on. the lowest ievel rput that is significant to Hie fa r value
measu nempot as e whole''

Levei i Quoted (Unadjusted) Marks! prices In sefivo markets for inetdentei assets or liabilities

Level 2 - Vatuafkin tedtiniquee for which the lowest level input that is significant to thu f£ir value mansurenwitt i-

cKeclly or i nd iiccLly observable

l.aVi-i 3 - Valuation techniques for which Ihe iowesl level iipnl I hat Is a on ifira ri I Ln dip feir vr^J.lue measnremenl Is
unobservable

For assets and liadtliTes that are recognized n the financim statements on a recurring basis the Company
determines Whether transfers that nave occurred balween levels in the nierarnhy by re-sasessing categorization
fhased ori 1^ffe lowest level Input that is Significant to Ihe fair value measuremeril ss a whole) at the? find of each
repod''i''g fierind

Determination of Fair Value

H Financial Assets - Debt Instruments at amoTtiaed cost

After initial measurement the financial assets are subsequently measured a1 amortlited nosl US eg fee EffenliyE
Interest Hate (FfiR) method Amod zed cost is caloulatert by taking mte account any discount nr premium on
flog ijih lion 3 nd fees or cost tha L are a n. n leg ^ral pari of the EI Ft

2) Financial Assets - Debt Instruments at Fair Value through Other Com preha naive income (FVTOCi)

Measure u Initially as wull as at each run: rung dale a I lair yfttufl. i au value mjov&menls aru rticagritiad m the
Otli&rCoinpi Liberia :vii inocimo fQCl>. Op oaraoogri’tion of the asset, cumulative gain or loss previously recognized n
OO11 s reclassified from the eq uity to Pfi L.

3) Dobl instruments & derlvattvts at Fair va lire thro tig b Profit or Loss (FVTPL)

FVTPL is z- res. dun I category for debt instruments Ary debt instrument woich does iG'' mecl die intern a for
categorization as at amortized cost or a s F VTOCI, is cl ossified as a I FVTP L.

¦*i Equity I nstrumentg af Fair Value throng h QtherComprebensive treome

On initial recognition, the Company can make an nevocable election (on an ingrrumem by instrument basis) to
present the suhsequent changei; in fe?r value n ittrer rornprunenaive mmm? pertaining to invealmenla m equity
m sin i mentr? 1 be ee e lecied i nnesl me-nls a ^_e ini1. ally meas u red at ta ir Value p!i is tra m>a utinn costa Si rbseqi jenLly. I hey
are measured al feu value with qii.nt / losses ar.emq from eba igeu in fair value recognizer n oltiar onmpfehersive
n ¦ Come. This Oum u i^live gai n Or : jai is rial reclasfii I ed to profit ur lass ail di Spofral Of the ii l ves hfenbi.

5) Financial Liabilities

¹ inariciaJ hablfities arc LlassifiLb. at uillfal rwjpgriHi&n, us Imurhciai I labilities at fan valuer through profit & lotfe,
loans anu borrow-iiLas. payablts. or as derlvalives dGsignatud as bMging lr&UumL>r>ts Ir an offediva Itadgc, as
apuiupnatt;.

All financial i iabil ities a ne recog ruzed Irittalty at fair va lue and, n rhe case of loar-s and twryow. ngs and c ay ? bios. not of
directly arributable !ransaction costs Th*? Conripanies financiaf lijcfifies incluide trade and other pnyahies.^:oans and
hor rowi ngs incl \ id rg bank overdrafts a nd derivative financia'' T.stru meats

Fair value through Profit & Loss

Financial lien Ii1-Ks.n1 lair va-t.e thrcugn profit & loss include I nandal I abiMies heln lor Iran inn Hid flhBnnnl liabilities
¦des-ignatea upon inihai recognition as at fan value through pi of it or (oe&. All changes in fair vs ire of such liabditte-s are
'' ocdgni ae*cf m statarrns nt ?: pruti L or loss.

Loans and Borrowings

Aft&r Initial r-scogr. ition. mtc rest- ben ring loans ana OQfmwing&aro subsequently m-oasumd at amorazac cost using
the EIR method Ga-ns and losses recognized i p-rofit or toss when the-1labilities aro derecognized as wen as
Th rough the EIR amortization process The EIR rsn-orizatlon is Included as f inance costs ''nine stntement of profit and
loss.

3.30 dividend

Dividend on sb*re is recorded as liahilily m ‘he cigle of approval by the sharegnlders gnrt is shown as a reduction
trnm retained earnings unde: Other Equity.

1.31 Segment Re parting

i ho Company irteittifies ......ary sogniinls niisedtm the domlfiaril isjourtn, nature ol risks and returns anij tlwlntonr^

wganlaallSn and maaagamanl structure. I run operating segments are [bo e&gmerts for which separata financial
information is available ana: fr_r which oporating profit 1 loss amounts, evaluatoc rogolarly by the Chief Opera hr a
Deosion Maker (CGDM) in deerd ing liow to a llocate resources anti in assessing pe-rforma nee.

The accounting policies adopted for segment reporting are n line with the accounting policies of the Company.
Segment revenue, segment expenses, segment ssseis ancsegme-m liability have been ''certified to segments or
1he basis of ihe^r relationship ip the operating acfiviiiesofme segment Iuter-serjmenf revenue is accounted on the
nesis o1 transactions wn ch are primarily determined based on market / fair wane factors. Revenue, expenses aseels
end liabilties which relate Ip the Company ass wnnle and are opt a-lncahle in segments nr reasonable basis have
beer Include n 11 nder ''unal- or.al en revenue I r. Kpen sea ¦'' assets: i .abil ities''

---

Mar 31, 2018

Footnote:

1. Trade receivables are dues in respect of goods sold in the normal course of business.

2. The normal credit period allowed by the company ranges from 60 to 90 days.

3. No trade or other receivables are dues from directors or other officer of the company either severally or jointly with any other person nor any trade or other receivables are due from firm or private companies respectively.

4. Trade receivables include receivables from related parties Rs, Nil (March 31, 2017 -f 3,13,91,521/- and March 31, 2016 - Rs, 2,98,29,663/-) and maximum amount outstanding f 7,41,10,762 /- (March 31,2017/ - Rs, 3,49,51,679/- ; March 31, 2016 - Rs, 2,98,29,663/-)

5. Refer note no 28 for credit risk

Capital Reserve:

Capital Reserve is utilised in accordance with the provisions of the Act.

Capital Redemption Reserve

Capital redemption reserve represents reserve created on redemption of preference shares. It is non distributable reserve Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares . This reserve is utilised in accordance with the provisions of the Act.

Retained Earnings

The amount that can be distributed by the company as dividend to its equity shareholders Transition Reserve

Transition Reserve represents reserve created on transition from Accounting Standards to Ind AS.

General Reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purpose.

The Company had obtained a interest free Loan of Rs,20.89 Lakh under sales tax deferred scheme repayable in 15 instalment . The loan was repaid during the year.

(d ) Inter Corporate Deposits are carrying interest rate of 12% and repayable on or before 2019.

( e ) Redeemable Preference Shares

During the year,{after obtaining the consent of the preference shareholders) the company has varied the terms of issue of preference shares allotted from 9% cumulative preference shares to 1% non-cumulative preference shares redeemable at par until the entire losses are recouped or at such a premium not exceeding Rs, 8 per share after entire losses of the company are recouped at the sole discretion and option of the company with effect from 1st April 2017. Further cumulative dividends accumulated up to 31st March 2017 have been waived.

( f) Working Capital loan from Bank

The Company had working capital facilities from various banks carrying interest rate of 12.95%p.a. These facilities are repayable on demand, secured by way of first pari passu charge on current assets, secornd pari passu charge on company''s entire fixed assets and _further secured by personal guarantee of Chairman and Managing Director_

( b) The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information collected by the Management.

(c) All trade payables are ''current''. The Company''s exposure to currency and liquidity risks related to trade payables is disclosed in note no 28

Note 6C- Excise Duty

The Government of India has implemented Goods and Service Tax (GST) from July 1, 2017 replacing excise duty , service tax and various other indirect taxes. Excise duty for the year ended March 31, 2018 pertains to the period of 3 month (April 2017 to June 2017) whereas for the year ended March 31,2017 pertains to 12 month period .

Note :7(1)

The company had issued 1,14,319 Equity Shares at Rs, 43.94/- per share as Sweat Equity Shares to Shri. Abhishek Asit Javeri, the Executive Director & CFO in substitution of the remuneration due to him for 2016-17 in terms of the Special Resolution passed in the Extra Ordinary General Meeting held on 22nd May 2017.

Note - 8 First-time adoption of Ind-AS

These are the Company''s first financial statement prepared in accordance with Ind AS. The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April 2017, with a transition date of 1st April 2016. Ind AS 101- first time adoption of Indian Accounting Standards requires that all Ind As standards and interpretations that are issued and effective for the first Ind AS Financial statements which is for the year ended March 31st, 2018 for the company , be applied retrospectively and consistently for all financial years presented. Consequently , in preparing these Ind AS financial statements , the company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity.

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

A. Optional Exemptions Availed

(a) Deemed Cost

The Company has opted paragraph D7AA and accordingly considered the carrying value of property, plant and equipment (other than free hold land) as deemed cost as at the transition date. Freehold land valued at fair value.

(b) Investments in subsidiaries

The Company has opted paragraph D14 and D15 and accordingly considered the Previous GAAP carrying amount of investment as deemed as at the transition date

(c) Designation of previously recognised financial

Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to IND AS. The Company has opted to apply this exemption for its investment in equity instruments.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to IND AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies). INDA Sestimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for the following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

-Investments in equity instruments carried at FVPL or FVOCI

-Investments in debt instruments carried at FVPL

-Impairment of financial assets based on expected credit loss model

(b) Classification and measurement of financial assets

As required under IND AS 101 the company has assessed the classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to INDAS

C. Transition to IND AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under IND AS 101

(I) Reconciliation of Equity and Profit and loss as previous reported under Indian GAAP to IND AS

(ii) Reconciliation of Balance sheet as at March 31, 2017 and April 1,2016 (Transition Date)

(iii) Reconciliation of Total comprehensive income for the year ended March 31, 2017

Note No. -9 Financial Instruments and Risk Review Capital Management

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold the investor, creditor and customer confidence and to ensure future development of its business. The Company focused on keeping strong total equity base to ensure independence, security as well high financial flexibility for potential future borrowings, if required without impacting the risk profile of the company. The Company''s goal is to continue to be able to return excess liquidity to shareholders by

The company business plan coupled with global macro-economic scenario have helped the company achieve enhanced profitability and liquidity resulting improved equity base and lower the risk profile of the company.

Financial Risk Management Framework

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

a) Credit risk

b) Liquidity risk

c) Market risk

I) Credit Risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract leading to financial loss. The credit risk arises principally from its operating activities ( primarily trade receivables) and from its financing activities including deposits with banks and financial institutions and other financial instruments. The customer credit is managed by the company''s established policy , procedures and controls relating to customer credit management. The company has established a credit policy under which each new customer is analysed individually for credit worthiness before the company''s standard payment and delivery terms and conditions are offered. The company''s review includes external ratings where available and other publically available financial information. Outstanding customers receivables are regularly monitored and any shipment to major customers are generally covered by letter of credit or other forms of credit insurance. The company establishes an allowance for impairment that represents fixed estimate of expected losses in respect of trade and other receivable. The maximum exposure to credit risk as at

reporting date is primarily from trade receivable amounting to 77,68,17,476/- (2017- 713,04,06,221/- and 2016 -712,97,83,912/-). The movement in allowance for impairment in trade and other receivables during the year was as follows:

No single customer accounted for 10 percent of trade receivable as of March 31, 2018 and March 31, 2017. There is no significant concentration of credit risk. Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit r a t i n g s agencies.

ii) Liquidity risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to ensure as far as possible that will have sufficient liquidity to meet its liabilities when they are due under both normal and stressed conditions without incurring unacceptable losses or risking damage to company''s reputation. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly , no liquidity risk is perceived. In addition, the company maintains the following line of credit.

a) Working capital loan from a bank carrying interest rate of 12.95 % p.a. These facilities are repayable on demand, secured by way of first pari passu charge on the present and future current assets of the company, second pari passu charge on entire movable and immovable fixed assets of the company, present and future at plot no 47, MIDC, Roha Industrial Area, Raigad District - 402116 and further secured by personal guarantee of Mr A. D. Javeri Chairman and Managing Director of the company.

The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of March 31,2018

iii) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.

Foreign Currency exchange rate risk

The Company operates internationally and major portion of the business is transacted in several currencies and consequently the company is exposed to foreign exchange risks through operating activities in foreign currency. The company does not engage in hedging and the unhedged foreign currency exposure is as follows:

Note 31: Employee benefits

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plan administered by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to fund the benefits. The Company has recognized X 31,71,923/- or Provident Fund contributions(March 31, 2017:Rs, 27,42,660 /-) and Rs,1,23,310/- (March 31, 2017 : X 56,348/-) towards ESIC in the Statement of Profit and Loss. The provident fund and ESIC contributions payable by the Company are in accordance with rules framed by the Government from time to time.

(b) Defined Benefit Plans:

Gratuity

The employee''s gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final o b I i g a t i o n. The obligation for leave encashment is recognised in the same manner as gratuity. The estimated rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevant factor including supply and demand in the employment market. The above information is certified by actuary. The expected rate on plan assets is determined considering several applicable factor, mainly the composition of plan assets held assessed risk .historical result of return on plan assets and the company''s policy for plan assets management.

Note 10: Significant estimates and assumptions

Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assests or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes will be reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or Cash Generating Unit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amounts sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Defined Benefit Plans (Gratuity Benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publically available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Details about gratuity obligations are given in Note 31. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, the fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value target and the discount factor.

The Company has valued its financial instruments through profit & loss which involves significant judgements and estimates such as cash flows for the period for which the instrument is valid, EBITDA of investee company, fair value of share price of the investee company on meeting certain requirements as per the agreement, etc. The determination of the fair value is based on expected discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor.

Note 11- Related party transactions

I) List of related parties

I) Holding Company M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiary a - M/SAnuchem B.V.B.A Belgium

b - M/S Strix Wireless Systems Pvt Ltd

II) Key Management Personal

I) Shri. Asit D.Javeri Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri A.D Javeri Shri. Abhishek A. Javeri son of Shri A.D Javeri

ii) Abhishek A Javeri Director & Chief Financial Officer

iii) Shri Nitin R Jani Company Secretary

III) Disclosure in respect of material related party transaction during the year

1) Sale of Good to Anuchem BVBA, Belgium ^=10,55,09,151/- (PY Rs,9,29,27,225/-)

2) Loan given to M/s. Strix Wireless Systems Pvt Ltd Rs,8,42,94,647/- (P.Y Nil)

Note 12 -Transfer Pricing

The Company has ‘international transactions with associated enterprises’ which are subject to Transfer Pricing regulations in India. These regulations, inter alia, require the maintenance of prescribed documents and information for the basis of establishing arm’s length price including furnishing a report from an accountant within the due date of filing the return of income.

For the fiscal year ended March 31, 2018, the Company has taken necessary steps including conducting a study as required by the regulations and the Accountant’s report in this regard is awaited. In the opinion of the management, the transactions are carried out at arm’s length and no adjustments is expected to arise thereon."

Note 13- Segment reporting

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Company is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals. Which in the context of Indian Accounting Standard 108 ‘Segment information’ represents single reportable business segment. The accounting policies of the reportable segments are the same as the accounting policies disclosed in Note2. The revenues, total expenses and net profit as per the Statement of Profit and Loss represents the revenue, total expenses and the net profit of the sole reportable segment.

Note 14- Events after reporting period

(i) On April 30, 2018, the Board of Directors of the Company approved issue of 1500000 Warrants convertible into equity share after 18 months at a premium on Preferential basis to the Promoters Group

(ii) On April 30, 2018, the Board of Directors of the Company has proposed a dividend of Rs, 0.10 per preference and a dividend of Rs, 1.00/- per equity share. The proposed dividend is subject to the approval of shareholders in the Annual general meeting.

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Mar 31, 2017

Right, preferences and restriction attached to each class of shares.

The company has only one class of equity shares having at par value of Rs. 10/- per Share. Each holder of equity share is entilted to one vote per share. The company declares and pays dividend in indian Rupees. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual general meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by share holder.

The company has only one class of Preference shares having par value of Rs.. 10/- per Share. The Preference shares are non-convertible in nature bearing fixed dividend rate of 9%. The non-convertible, cumulative, redemable preference shares shall be redeemed at the option of the company any time after 3 (three) years but not later than 10 (Ten) years from the date of issue & as decided by the Board of Director in accordance with the term of the issue and in accordance with the provision of the Companies Act, 2013, or any re -enactment thereof.

Note No 1(1)

Loan of Rs. 20.89 Lacs under sales tax deferred scheme Is Interest free and Is repayable In 15 Installment from April-2012 to April -2018

Note No 1 (2)

a) Inter Coporate Deposit are repayable in quaterly after April -2018 and earring interest Rate of 15% to 16%

Note No 2 (1)

As notified by Ministry of Corporate Affairs (MCA) vide its notification no.G.S.R. 308(E), the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November,2016 to 30th December,2016 as provided in the table below:-

Defined Benefit Plan

The Employee’s gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevant factor including supply and demand in the employment market. The above information is certified by actuary. The expected rate on plan assets is determined considering several applicable factor, mainly the composition of plan assets held assessed risk, historical result of return on plan assets and the company’s policy for plan assets management.

Note No 3 SEGMENT REPORT

In accordance with AS-17 ‘Segment Reporting’ segment information has been given in the consolidated financial statements of Sadhana Nitro Chem Ltd. and therefore no separate disclosure on segment information is given in these financial statements.

Ill) Disclosure in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs. 9,29,27,225 (Rs. 7,62,52,149)

(2) Loan Accepted from Manekchand Panachand Trading & Investment Co.Pvt Ltd. (Holding Company) Rs. 2,69,12,313 (P.YRs. 9291000)

(3) Loan Repayment from Manekchand Panachand Trading & Investment Co.Pvt Ltd. (Holding Company)Rs. 2,69,12,313 (P.YRs. 86,52,313)

Note No 4

Previous year’s figures have been regrouped and re-classified wherever necessary.

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Mar 31, 2016

Rights, preferences and restrictions attached each class of shares.

The company has only one class of equity shares having at par value of '' 10/- per Share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual general meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by share holder. The company has only one class of Preference shares having at par value of '' 10/- per Share. The Preference shares are non-convertible in nature bearing fixed dividend rate of 9%. The non-convertible, cumulative, redeemable preference shares shall be redeemed at the option of the company any time after 3 (three) years but not later than 10 (Ten ) years from the date of issue & as decided by the Board of Director in accordance with the term of the issue and in accordance with the provision of the Companies Act, 2013, or any re -enactment thereof.

Defined Benefit Plan

The Employee''s gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company''s policy for plan assets management.

I) List of related parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A Belgium

iii) Promoters Having Significant Influence - M/s. Lifestyle Networks Ltd.

M/s. I.B.I. Engineering & Services Pvt. Ltd.

M/s. Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Ltd.

II) Key Management Personal

i) Shri. A. D. Javeri - Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri. A. D. Javeri Smt. Molina D. Javeri mother of Shri. A. D. Javeri Mr. Abhishek A. Javeri son of Shri. A. D. Javeri

ii) Abhishek A . Javeri - Director & CFO

iii) Shri. N. R. Jani - Company Secretary

III) Disclosure in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs, 7,62,52,149 (PY Rs, 1,62,32,722) (2) Receiving Services to Amnisera Corporation (Associate Company) Rs, 4,63,375 (PY. Rs, 1,62,543) (4) Loan Accepted from Manekchand Panachand Trading & Investment Co. Pvt. Ltd. (Holding Company) Rs, 92,91,000 (PY. Rs, Nil) (5) Loan Repayment from Manekchand Panachand Trading & Investment Co.Pvt. Ltd. (Holding Company) Rs,8 65 2313 (PY. Rs, Nil)

NOTE - 1

The order book position has improved during the financial year as compared to the past including long term supply agreements. This will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31⁸¹ March, 2016, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE - 2

Previous year''s figures have been regrouped and re-classified wherever nec

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Mar 31, 2015

Note (1)

The Loan ofRs. 35.00 Laks from ICICI Bank having interest of 10.91 % is repayable in 60 monthly installment of Rs. 0.75 lakhs from January2012to Oct- 2016

Note (2)

The Total loan ofRs. 20.90 lakhs from SICOM Ltd. Consisting of 3 loans Rs. 12.10 lacs, Rs. 5.81 lacs and Rs. 2.98 lacs. This loan is interest free under Sales Tax Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installments falling due on April 2018.

Defined Benefit Plan

The Employee's gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognzied in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevent factor including supply and demand in the employment market. The above information is certified by actuary.

The expected rate on plan assets is determined considering several applicable factor, mainly the composition of plan assets held assessed risk, historical result of return on plan assets and Ihe company's policy for plan assets management.

3) List of related parties

i) Holding Company - M/s, Manekchand Panachand Trading Investment Co, Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

Associates - M/s. Lifestyle Networks Ltd.

M/s. Phthlo Colours & Chemicals (I) Ltd.

M/s. Amnisera Corporation

II) Key Mangement Personal

i) Shri. A.D Javeri - Chairman & Managing Director

ii) Shri N.R.Jani - Company Secretary

iii) Shri Sanjeev P. Shah - Chief Finance Officer

III) Disdousre in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs 1,62,32,722 (PY Rs 7,37,96,603) (2) Anuchem PTE Ltd Singapore Rs Nil (Rs 67,55,275) (3) Receiving Services from Amnisera Corp. (Associate) Rs 4,63,375 (PY Rs.1,62,543) (4) Purchase of Asset from Manekchand Panachand Trading Inv.Co Pvt .Ltd (Holding Company)Rs 7,35,00,000 (PY Rs.Nil) (5) Guarantee Commission paid to Asit D Javeri (KMP)Rs 24,00,000 (PY Nil) (6) Loan Repayment to Asit D Javeri (KM P) Rs Nil (PY Rs.12,00,000)

NOTE 4

During the years, the company reassessed useful life of its fixed assets as per Schedule II of Companies Act, 2013. Accordingly,an amount of Rs.21,93,101/- has been recognized in the opening balance of retained earning where the remaining useful life of the assets isNIL.

NOTE 5

The order book position has improved during the financial year as compared to the past including long term supply agreements. During the period, the company has disposed most of its non core assets and the proceeds have been utilized to settle some of the high costdetrt and also towards working capital requirements. This in cumulative perspective will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31 St March, 2015, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE 6

The Current financial statements have been prepared for 12 months whereas the previous period was for 9 months and accordingly previous year figures are not comparable. Previous year's figures have been reclassified in accordance with the requirements applicable during the current period.

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Mar 31, 2014

Note 1(i)

The loan of Rs. 35.00 lakhs from ICICI Bank having interest of 10.91% is repayable in 60 monthly installments of Rs. 0.75 lakhs each from January 2012 to July 2016.

Note 2(ii)

The Total loan of Rs. 20.90 lakhs from SICOM Ltd. consisting of 3 loans of Rs. 12.10 lacs, Rs. 5.81 lakhs and Rs. 2.98 lakhs. This loan is interest free under Sales Ta x Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installment falling due on April 2018.

Note 3(iii)

This interest free loan has been given by Chairman and Managing Director Pursuant to agreement with secured lenders and is repayable only after repayment of secured term loan.

Defined Benefit plan

The employee''s gratuity fund scheme managed by a trust is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company''s policy for plan assets management.

NOTE - 4

In accordance with AS-17 ''Segment Reporting'' segment information has been given in the consolidated financial statements of the company and therefore no separate disclosure on segment information is given in these financial statements.

I) List of Related Parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

M/s. Anuchem Pte. Ltd., Singapore

iii) Associate Companies

- M/s. Lifestyle Networks Ltd.

M/s. IBI Engineering & Services Pvt. Ltd. M/s. Amnisera Corporation M/s. Manekchand Panachand & Co. M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel & their relatives i) Shri A.D.Javeri

- Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri A.D. Javeri Smt. Molina D. Javeri Mother of Shri A.D. Javeri Mr. Abhishek A. Javeri son of Shri A.D. Javeri

ii) Shri N.R. Jani - Wholetime Director & Company Secretary

III ) Disclosure in respect of material related party transactions during the period.

(1) Sale of Goods to Anuchem B.V.B.A., Belgium Rs. 7,37,96,603/- (P.Y. Rs. 18,95,57,392/-) (2) Anuchem Pte Ltd., Singapore Rs. 67,55,275/- (P.Y. Rs. 3,11,63,124/-) (3) Receiving Services to Amnisera Corporation (Associated Company) Rs. 1,62,543/- (P.Y. Rs.1 5,88,652/-) (4) Interest Expenses to Manekchand Panachand Trading & Investment Co.Pvt.Ltd.(Holding Company) Rs. Nil (P.Y. Rs. 45,18,399/-) (5) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company) Rs. Nil (P.Y. Rs. 6,10,54,474/-) (6)Loan Repayment to Asit D. Javeri (Key Management) Rs. 12,00,000/- (P.Y. Rs. 38,00,000/-) ( 7 ) Fixed Deposit Received from Asit D. Javeri (Key Management) Rs. Nil (P.Y. Rs. 12,00,000/-).

NOTE - 5

Income Tax assessments for the assessment year 98-99 and 99-2000 were reopened under section 148 of the Income Tax Act, 1961 for disallowing claim under section 80HHC of the Act and assessments were completed under section 144 of the Act. The Hon''ble Bombay High court in the company''s writ petition has issued rules and the matter is pending. Company has been legally advised that it bound to succeed in the writ and hence against demand of Rs. 1,54,19,469/-for these year no provision is considered necessary. provision existing in books of Rs. 93,42,356/-is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon''ble Supreme Court for the assessment year 2001-02 to 2005-06 that are awaited and in respect of subsequent year.

NOTE - 6

The order book position has improved during the financial year as compared to the past including long term supply agreements. During the period, the company has disposed most of its non core assets and the proceeds have been utilized to settle some of the high cost debt and also towards working capital requirements. This in cumulative perspec- tive will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31St March, 2014, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE - 7

The Approval towards Managerial Remuneration of Whole time Director & Company Secretary is awaited from the Central Government.

NOTE - 8

The Current financial statements have been prepared for 9 months whereas the previous year was prepared for 15 months and accordingly previous year figures are not comparable. Previous year''s figures have been re-classified in accordance with the requirements applicable during the current period.

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Jun 30, 2013

NOTE - 1

Income Tax assessments for the assessment year 98-99 and 99-2000 wear reopened under section 148of income tax act 1961 for disallowing claim under section 80HHC of the act and assessment were completed under section 144of the act .in the company writ petition before the Hon.ble Bombay High courtrules issued and matter is pending. Company has been legally advised that it bound to succeed in the writ and hence again demand of Rs.1, 54,19,469/- for these year no provision is considered necessary, provision existing in books of Rs. 93 42 356/- is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon''able Supreme Court for the assessment year 2001-02 to 2005-06 that are awaited and in respect of subsequent year.

NOTE - 2

The order book position has improved during the financial year as compared to the past including long term supply agreements. In order to execute these orders on a timely basis which will have positive impact on overall performance, the company has strategically initiated disposal of their non-core fix assets which would generate sufficient working capital. These measures will improve overall financial position of the company in addition to absorbing accumulated losses. Hence, although there are accumulated losses as on June 30*, 2013, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

In addition, Disposal of non core fixed assets would be sufficient to reverse deferred tax assets created on account of unabsorbed depreciation as the proposed gain of these assets and resultant taxable income would be higher than the carrying value of deferred tax assets.

NOTE - 3

The unamortized balance in Foreign currency monetary item translation difference Account arising out of revaluation of Long term Foreign Currency monetary items which are being amortized over the period of such items have disclosed in Note on Reserves and Surplus (Note 3).

NOTE - 4

The current financial statements have been prepared for 15 months and accordingly previous year figures are not comparable. Previous year''s figures have been re-classified in accordance with the requirements applicable during the current period.

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Mar 31, 2012

Rights, preferences and restrictions attached each class of shares.

The company has only one class of equity share having at par value of Rs.10/-per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by the share holder.

(Note 1 (1))

a] WCTLIoan ofRs 444.10 lakhs (P.Y. Rs 671.12 lakhs) having interest of 7.25% to 7.50% is repayable in 16 quarterly installments of Rs 31.25 lakhs from April 2011 to January 2015.

b] Term Loan ofRs 50.61 lakhs (P.Y. Rs69.98 lakhs) having interest of 14.50% to 14.50% is repayable in 6 equal quarterly installments after a moratorium of 18 months. This loan is repayable from November 2010 to June 2012.

c] WCTLIoan of Rs 243.12 lakhs (P.Y. Rs 283.29 lakhs) having interest of 15.25% to 15.25% is repayable in 48 monthly installments fromApril, 2010 to April 2013.

d] Term Loan ofRs22.81 lakhs (P.Y. Rs 123.32 lakhs) having interest of 13.50% to 14% is repayable in 60 monthly installment of Rs 8.30 lakhs starting from May 2007 to May 2012.

e] WCTL loan of Rs 446.41 lakhs (P.Y.Rs 474.90 lakhs) having interest of 7.25% to 7.50% is repayable in 15 quarterly installment from first July, 2010 to three installment ofRs 10.00 lakhs each, next 4 installments of Rs 15.00 lakhs each, next 4 installments ofRs 40.00 lakhs each, and last three installments ofRs 56.25 lakhs each.

f] Term Loan ofRs 69.95 lakhs (P.Y. Rs153.38 lakhs) having interest of 14.50% to 14.50% is repayable in 10 quarterly installment fromApril 2010 to first four installments ofRs 17.00 lakhs each, next 4 installments ofRs 21.00 lakhs each and last 2 installments ofRs 17.75 lakhs each.

g] Term Loan ofRs 113.88 lakhs (P.Y. Rs 419.88 lakhs) having interest of 14.50% to 14.50% is repayable in 10 quarterly installments fromApril 2010 to first four installments ofRs 33.00 lakhs, next 4 installments ofRs 42.00 lakhs and last installments of Rs 37.50 lakhs each.

h] Details of continuing default as on 31st March, 2012.

State Bank of Patiala Rs 42.00 lakhs due on 31-03-2012 not yet paid, State Bank of Patiala Rs 36.00 lakhs (USD 70768) due on 31 -03-2012 paid on 18-06-2012 (P. Y.- State Bank of Patiala Rs 10.00 lakhs (USD 22090) due 30-09-2010, paid on 24-12-2010 Rs41.67 lakhs (USD 92490) due on 31-03-2011 paid on 12-05-2011.)

Note 1(2)

The loan ofRs 35.00 lakhs from ICICI Bank having interest of 10.91 % is repayable in 60 monthly installments of Rs 0.75 lakhs each from January 2012 to July 2016.

Note 1(3)

Inter corporates deposits Rs 86.66 lakhs (P.Y. Rs 91.26 lakhs) are interest free and are repayable on March, 2015.

Note 1(4)

The Total loan of Rs 20.90 lakhs from SICOM Ltd. consisting of 3 loans ofRs 12.10 lacs,5.82 lacs and Rs 2.98 lacs. This loan is interest free under Sales Tax Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installment falling due on April 2018.

The Company has investment of X 25,50,000 comprising of 2,55,000 equity shares ofRs 10/- each (51% of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2012, accumulated loss of the subsidiary of Rs 4,99,65,059/- has exceeded capiial. Desides investments, to the subsidiary the Company had given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs 62,07,857/-. Based on the subsidiary's performance during the financial year and other business plans coupled with the fact that out of the loans advanced to them in the past have been recovered during the year no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

Defined Benefit plan

The employee's gratuity fund scheme managed by a trust is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company's policy for plan assets management.

NOTE - 2

Contingent Liabilities not provided for:

(a) Estimated amount of contracts remaining to be executed on capital accounts (Net of Payments) - 18,47,390

(b) In respect of Guarantee given by the Company's Banker for Central Excise and other purposes 25,000 25,000

(c)In respect of corporate guarantee given by the company to the bank for Loans borrowed by Indian subsidiary 62,07,857 2,95,48,508

NOTE:

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment. Revenue from other activities pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Loal. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses

i) Revenue directly attributable each of the segments is shown under sgement revenue.

ii) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) Segment Assets and Liablities

Fixed Assets used in the companies business are not identifiable to any particular reportable segment; consequently management believes that it is not practical to provide segment disclosures relating to capital employed.

Ill) Disclosure in respect of material related party transactions during the year.

(1) Sale of Goods to Anuchem B.V.B.A., Belgium Rs 28,99,24,002/- (P.Y. Rs 10,08,49,541/-) (2) Anuchem Pte Ltd., Singapore Rs 2,21,58,969/- (P.Y. f Nil) (3) Receiving Services to Amnisera Corporation (Associated Company) Rs 13,18,581/- (P.Y. Rs 10,34,181/-) (4) Interest Expenses to Manekchand Panachand Trading & Investment Co.PvLLtd.(Holding Company) Rs 42,12,838/-(P.Y. Rs 21,34,213/-) (5) Interest Expenses to Manekchand Panachand & Co. (Associate Company) Rs 42,12,838/- (P.Y. Rs 21,34,213/-) (6) Interest Income to Life Style Network Ltd. (Subsidiary Company) Rs Nil (P.Y Rs 16,11,690/-) (7) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company) Rs 3,83,85,000/- (P.Y. Rs 4,44,60,000/-), Manekchand Panachand & Co. (Associate Company)Rs. Nil (P.Y. Rs .27,50,000/-) (8) Loan Repayment to Lifestyle Networks Ltd. (Subsidiary Company) Rs Nil (P.Y. Rs 2,43,07,166/-), Asit D. Javeri (Key Management) Rs 32,52,000/-(P.Y. Rs 4,50,000/-) (9) Fixed Deposit Received to Asit D. Javeri (Key Management) 112,00,000/- (P.Y. Rs 12,00,000/-).

NOTE - 3

income Tax assessments for the assessment years 98-99 and 99-2000 were reopened under section 148 of the Income Tax Act, 1961 for disallowing claim under section 80 HHC of the Act and assessments were completed under section 144 of the act. In the Companies Writ Petition before the Hon'ble Bombay High Court rule was issued and matter is pending. Company has bee legally advised that it is bound to succeed in the Writ and hence against demand of Rs 1,54,19,469/-for these years no provision is considered necessary. Provision existing in books of X 93,42,356/- is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon'ble Supreme Court for the assessment year 2001 -02 to 2005-06 that are awaited and in respect of subsequent years.

NOTE - 4

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) (Second Amendment Rules) 2011 on Accounting Standard 11 (AS -11) notified by Government of India on Deceember 29,2011. Accordingly an amount ofRs 1,13,13,928/- has been transferred to the Foreign Currency Monetary items Translation difference account to be amortised over the balance period of loan and an amount of Rs 27,58,520/- has been capatialised as part of cost of asset and shall be depreciated over balance life of asset. This has the effect of increasing the profits for the period and corresponding decrese in debit balance in Profit and Loss Account byRs 1,20,66,214/-.

NOTE - 5

Cinsidering the turn around in the global economy coupled with the fact that the order book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in the coming years which would in turn absorb accumulated losses. Hence the company feels that although there are accumulated losses as on March 31,2012, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.

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Mar 31, 2011

1) The previous year's figures have been reworked, regrouped and reclassified wherever necessary.

2) Considering the turn around in the Global economy coupled with the fact that the Order Book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in the coming years which would in turn absorb accumulated losses. Hence, the company feels that although there are accumulated losses as on March 31,2011, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.

3) The Company has investment of Rs. 25,50,000 comprising of 2,55,000 equity shares ofRs. 10/- each (51 % of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2011, accumulated loss of the subsidiary of Rs. 5,36,27,881/- has exceeded in capital. Besides investments, to the subsidiary the Company had given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs.2,95,48,508/-. Based on the subsidiary's performance during the financial year and business plans that are in the process of being implemented, coupled with the fact that out of the loans advanced to them in the past have been recovered during the year no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

4) Expenditure attributed to Fixed assets in the course of construction Rs. 30,46,464/- (RY Rs. 2,47,080/-)

5) Income tax assessments are completed up to and inclusive of the year ending 31/03/2008. In the writ petitions filed before H'ble Bombay High Court in respect of the re-opened Assessment pertaining to year ending 31st March 1998 and 31st March 1999, rule was issued and that for the year ending 31st March 2001 has been restored to C.I.T (Appeals) for re-adjudication. Company has been advised that for these years and in the appeal that is pending before C.I.T (Appeals) for the year ended 31-03-2007, based on judicial precedent, no provision is required to be made towards the outstanding demands of Rs. 1,42,09,603/-. For the year ending 31-03-2002 to 31-03-2005, company's special leave petition are pending before H'ble Supreme Court and for these years provision (net of payments made) in the accounts of Rs.38,38,909/- is considered adequate.

6) Schedule "D" - Unsecured Loan

a) Fixed Deposits from others include Rs. 75,00,000/- of deposits which is personally guaranteed by the Chairman & Managing Director.

b) Other loan from Directors include 12,13,093/- (RY Rs. 7,63,093/-) as part of promoters contribution pursuant to the convenant contained in the sanction letters of lender bank.

7) Other debtors includes Rs. 3,74,64,587/- (RY Rs. 1,92,08,392/-) from wholly owned subsidiary.

8) a) Sundry Creditors includes Rs. 15,80,276/- (RY Rs. 5,16,773/-) being total outstanding dues to Small Scale Industrial Undertakings to the extent identified on the basis of information available with the company.

b) Names of Small Scale Industrial Undertaking and Disclosure under MSMEDA to whom the Company owes as on 31st March, 2011, an amount exceeding Rs. 1.00 Lac which is outstanding for more than 30 days; (i) R.S. Samant Engineers Pvt.Ltd. Rs. 7,95,671/- (ii) Kris Flexipacks Rs. 3,64,165/- (iii)Amod Engineering Works Rs. 2,16,415/- (iv) Niki Chemical industries Rs. 2,04,025/-.

9) SEGMENT REPORT

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment. Revenue from other activities pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Local. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses :-

i) Revenue directly attributable each of the segments is shown under segment revenue.

ii) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) SegmentAssets and Liabilities :-

Fixed Assets used in the companies business are not identifiable to any particular reportable segment; consequently management believes that it is not practical to provide segment disclosures relating to capital employed

10) RELATED PARTY DISCLOSURES.

I) List of Related Parties

i) Holding Company M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries M/s. Anuchem B.VBA, Belgium

M/s. Anuchem Pte. Ltd., Singapore

M/s. Lifestyle Networks Ltd.

iii) Associate Companies M/s. IBI Engineering & Services Pvt. Ltd.

M/s.Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel

i) ShriA.D.Javeri Chairman & Managing Director

Smt. SeemaA. Javeri wife of Shri A.D. Javeri Smt. Molina D. Javeri Mother of Shri A.D. Javeri Mr.AbhishekA. Javeri son of ShriA.D. Javeri

ii) ShriN.R.Jani Director & Company Secretary

III) Disclosure in respect of material related party transactions during the year.

(1) Sale of Goods to Anuchem B.VBA, Belgium Rs. 10,08,49,541/- (RY Rs. 8,66,39,697/-) (2) Receiving Services to Amnisera Corporation (Associated Company) Rs. 10,34,181/- (RY Rs. 7,53,006/-) (3) Interest Expenses to Manekchand Panachand Trading & Investment Co.Pvt.Ltd.(Holding Company)Rs. 21,34,213/- (RY Rs. 10,91,731/-) (4) Interest Expenses to Manekchand Panachand & Co. (Associate Company) Rs. 3,68,630/- (RY Rs. 39,340/-) (5) Interest Income to Life Style NetwBrk Ltd. (Subsidiary Company) Rs. 16,11,690/- (RY Rs.55,60,156/-) (6) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company)Rs. 4,44,60,000/- (RY Rs.1,66,00,000/-), Manekchand Panachand & Co. (Associate Company) Rs..27,50,000/- (RY Rs.20,00,000/-) (7) Loan Repayment to Lifestyle Networks Ltd. (Subsidiary Company)Rs. 2,43,07,166/- (RY Rs. 3,72,99,379/-), Manekchand Panachand & Co.Rs. 27,50,000/- (RY Rs. 20,00,000/-), Asit D. Javeri (Key Management) Rs.4,50,000/-. (8) Fixed Deposit Received to Asit D. Javeri (Key Management)Rs. 12,00,000/- (RY Rs. 12,00,000/-)

31.03.2011 31.03.2010

11) Contingent Liabilities not provided for:

(a) Estimated amount of contracts remaining to be executed on capital accounts (Net of Payments) 18,47,390 8,88,797

(b) In respect of Guarantee given by the Company's Banker for Central Excise and other purposes 25,000 25,000

(c) In respect of corporate guarantee given by the company to the bank for Loans borrowed by Indian subsidiary 2,95,48,508 4,93,70,807

12) The Ministry of Corporate Affairs, Government of India vide its general Notifications No S.0.301 (E) dated 8th February 2011 issued under section 211 (3) of the Companies Act, 1956 has exempted certain classes of companies from disclosing certain information in their profit and loss account. The company being an export oriented company is entitled to the exemption. Accordingly, disclosures mandated by paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the CompaniesAct, 1956 have not been provided.

13) Additional information required to be given in pursuance of Para Nos.3,4-C,4-D of Part II of Schedule VI of the CompaniesAct, 1956.

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Mar 31, 2010

1) Considering the turn around in the Global economy coupled with the fact that the Order Book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in coming years which would in turn absorb accumulated losses. Hence, the company feels that although there are accumulated losses as on 31st March, 2010, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.

2) The Company has investment of Rs. 25,50,000 comprising of 255000 equity shares of Rs. 10/- each (51 % of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2010, accumulated loss of the subsidiary of Rs. 5,21,24,019/- has exceeded its capital. Besides investments, in the subsidiary the Company had advanced unsecured loans of Rs. 5,44,34,699/- as at 1st April, 2009 and having closing balance of Rs. 2,26,95,476/- as at 31st March, 2010 and had further given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs. 4,93,70,807/- (P.Y. Rs. 6,35,65,772/- ). Based on the subsidiarys performance during the financial year and business plans that are in the process of being implemented, coupled with the fact that out of the loans advanced to them in the past substantial recoveries were made during the year and the subsidiary has represented that they would clear the entire outstanding before the end of the following financial year, no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

3) Income tax assessment of demand are completed upto and inclusive of the assessment year 2007-08 (Financial Year31st March, 2007). As perthe department amount outstanding is Rs. 1,98,68,768/-. Retrospective amendment to Section 80HHC brought about by the Taxation Laws Amendment Act 2005 were given effect to in the reopened assessments of earlier years and in the subsequent regular assessments. Against the reopening of earlier years assessments in the Companys writ petition, Honble Bombay High Court was pleased to issue rule and against disallowances made in regular assessments, the matter is restored to CIT(Appeals) for fresh adjudication. Management is of the view that if the Companys petition for waiver of interest under Section 234B (on account of the retrospective amendment to Section 80HHC) as per CBDT instructions, reliefs in appellate proceedings and on account payments are taken into account, balance in provision for taxation as at the Balance Sheet date is adequate.

4) The repayment of Loan falling due within one year is as under :-

a) Secured Term Loans : Rs. 4,62,45,944/-

b) Unsecured Loans : (1) Fixed Deposit Rs. 1,84,93,000/-

(2) Other Loan Rs. 4,10,67,962/-

(3) From Directors Rs. 7,63,093/-

5) a) Sundry Creditors includes Rs. 5,16,773/- (P.Y. Rs.24,86,959/-) being total outstanding dues to Small Scale Industrial Undertakings to the extent identified on the basis of information available with the company.

b) Names of Small Scale Industrial Undertaking and Disclosure under MSMEDA to whom the Company owes as on 31st March, 2010, an amount exceeding Rs. 1.00 Lac which is outstanding for more than 30 days:

(i) R. S. Samant Engineers Pvt. Ltd. Rs. 3,97,861/-

(ii) Kris Flexipacks Rs. 1,18,912/-.

6) SEGMENTREPORT.

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment Revenue from other activrties pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Local. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses :-

i) Revenue, directly attributable each of the segments is shown under segment revenue.

B) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) Segment Assets and Liabilities :-

Fixed Assets used in the companies busiriess are not identifiable management believes that it is not practical to provide segment disclosures relating to capital employed.

7) RELATED PARTY DISCLOSURES.

I) List of Related Parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

M/s. Anuchem Re. Ltd., Singapore

M/s. Lifestyle Networks Ltd.

iii) Associate Companies - M/s. !BI Engineerings Services Pvt. Ltd.

M/s. Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel

i) ShriA.D.Javeri - Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri AD. Javeri

Smt. Molina D. Javeri Mother of Shri A.D. Javeri

Mr. Abtvshek A. Javeri son of Shri A.D. Javeri

ii) Shri N.R.Jani - Director & Company Secretary

* IBI Engineering & Services Pvt. Ltd., Rs. 30,125/- and Manekchand Panachand & Co. Rs. 9,205/-.

** Mr. A.D. Javeri Rs. 1,71,200/-.

# From Manekchand Panachand & Co. Rs. 20,00,000/-.

8) Employee Benefit.

Defined Benefit plan

The employee gratuity fund scheme managed by a trust is defined benefit plane .the present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

9) The previous years figures have been reworked, regrouped and reclassified wherever necessary. Amount and other disclosure for the proceeding year are included as an integral part of the current year financial statement and are to be read relation to the amount and other disclosures relating to the current year.

This information is given pursuant to the recognition granted by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India, vide their letter No.TU/IV-RD/1177/2006 dated 17th April, 2006, the Companys Research & Development Laboratory.