Notes to Accounts of Sree Rayalaseema Hi-Strength Hypo Ltd.

Mar 31, 2025

(l) Provisions and contingencies

A Provision is recognised when the company has a present obligation(legal or
constructive) as a result of past event i.e., it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are discounted using a
current pre-tax rate reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not
wholly within the control of the company or

• Present obligations arising from past events where it is not probable that
an outflow of resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made.

• Contingent liabilities and assets are not recognised in financial statements.

A disclosure of the contingent liability is made when there is a possible or
a present obligation that may, but probably will not, require an outflow of
resources.

h. j

(m) Government grants

Government grants are not recognised until there is reasonable assurance
that the Company will comply with the conditions attached to them and that
the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over
the periods in which the Company recognises as expenses the related costs
for which the grants are intended to compensate. Specifically, government
grants whose primary condition is that the Company should purchase, construct
or otherwise acquire non-current assets are recognised as deferred revenue
in the standalone statement of financial position and transferred to profit or
loss on a systematic and rational basis over the useful lives of the related
assets.

Government grants that are receivable as compensation for expenses or
losses already incurred or for the purpose of giving immediate financial support
to the Company with no future related costs are recognised in profit or loss in
the period in which they become receivable.

The benefit of a government loan at a below-market rate of interest is treated
as a government grant, measured as the difference between proceeds
received and the fair value of the loan based on prevailing market interest
rates.

(n) Earning per equity share

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

For the purpose of calculating diluted earnings per equity share, the net profit
or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares. In computing the dilutive earnings
per share, only potential equity shares that are dilutive and that either reduces
the earnings per share or increases loss per share are included.

(o) Statement of Cash flow

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

(p) Investment property

Investment properties are properties held to earn rentals and/or for capital
appreciation (including property under construction for such purposes).
Investment properties are recognised initially at cost, including transaction
costs. Subsequent to initial recognition, investment properties are measured

at cost less accumulated depreciation and accumulated impairment losses if
any.

Depreciation on buildings is calculated using straight line method to allocate
their cost, net of residual values, over their estimated useful lives, depreciation
is provided on useful life of assets as prescribed in schedule III to the Companies
Act, 2013.

An investment property is derecognised upon disposal or when the investment
property is permanently withdrawn from use and no future economic benefits
are expected from the disposal. Any gain or loss arising on derecognition of
the property (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the period
in which the property is derecognised.

(q) Segment Reporting

The management has assessed the identification of reportable segments in
accordance with the requirements of Ind AS 108 ‘Operating Segments'' and
the company has disclosed three reportable segments namely (i) Chemical
Manufacturing, (ii) Power Generation and (iii) Trading in coal. Further, the
Board of directors have designated the Managing Director as Chief Operating
Decision Marker (‘CODM'').

(r) Estimates and assumptions

The preparation of the Company''s financial statements requires management
to make judgments, 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 assets or liabilities
affected in future periods.

The Company applies judgment to determine whether each product or
services promised to a customer are capable of being distinct, and are distinct
in the context of the contract, if not, the promised product or services are
combined and accounted as a single performance obligation. The Company
allocates the arrangement consideration to separately identifiable performance
obligation deliverables based on their relative stand-alone selling price. Because
the financial reporting of these contracts depends on estimates that are
assessed continually during the term of these contracts, recognized revenue
and profit are subject to revisions as the contract progresses to completion.
Allowance for expected credit losses:

It describes the use of practical expedient by computing the expected credit
loss allowance for trade receivables based on provision matrix. The expected
credit allowance is based on the aging of the days receivables which are past
due and the rates derived based on past history of defaults in the provision
matrix.

Fair value of investments:

The Company has invested in the equity instruments of various companies.
However, the percentage of shareholding of the Company in such investee
companies is very low and hence, it has not been provided with future
projections including projected profit and loss account by those investee
companies. Hence, the valuation exercise carried out by the Company with
the help of available historical annual reports and other information in the
public domain.

Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be
utilized. Significant management judgment is required to determine the amount
of deferred tax assets that can be recognized, based upon the likely timing
and the level of future taxable profits together with future tax planning strategies.
Contingent liability judgement:

Contingent liabilities are claims against the Company not acknowledged as
debt. Contingencies may arise from the ordinary course of business in relation
to claims against the Company, including legal, contractor and other claims.
By their nature, contingencies will be resolved only when one or more uncertain
future events occur or fail to occur. The assessment of the existence, and
potential quantum of contingencies inherently involve the exercise of significant
judgment and the use of estimates regarding the outcome of future events.

(s) Recent pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments
to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time, MCA has notified following amendments:

1) During the year ended March 31,2025, MCA has notified Ind AS 117 -
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and lease back transactions, applicable from April 01, 2024. The
Company has assessed that there is no significant impact on its financial
statements.

2) Ind AS 21 The Effects of Changes in Foreign Exchange Rates to specify
how an entity should assess whether a currency is exchangeable and
how it should determine a spot exchange rate when exchangeability is
lacking. The amendments also require disclosure of information to enable
understand the impact on entity''s financial performance, financial position
and cash flows. The amendments are effective for annual reporting periods
beginning on or after April 01,2025. When applying the amendments, an
entity cannot restate comparative information. The Company has reviewed
the new pronouncements and based on its evaluation has determined
that it does not have any significant impact on its financial statements.

Fair value of Investment properties Rs.1892.66 lakhs
Estimation of fair value

1) The Company obtains independent valuations for its investment properties
annually. The best evidence of fair value is current prices in an active market
for similar properties. Where such information is not available, the Company
considers information from a variety of sources including:

(i) Rates as per Sub Registrar Office

(ii) current prices in an active market for properties of different nature.

(iii) recent prices of similar properties in less active markets, adjusted to
reflect those differences

The main input used is the price per square metre as per the State
Government''s Registration and Stamps Department rate for the property. All
resulting fair value estimates for investment properties are included in level 2.

2) Income and operating expenses of Investment Property:

(i) Rental income - Rs.143.52 lakhs

The Average credit period on sales is 60 days

No interest is charged on Trade Receivables for delay in payment beyond credit
period from the due date of the Invoice.

The Company has used a practical expediency by computing the expected credit
loss allowance for Trade Receivables based on a provision matrix. The provision
matrix takes into account historical credit loss experience and adjusted for forward
looking information. The expected credit loss allowance is based on the ageing of
the days the receivables are due and the rates are given in the provision matrix.
The provision matrix at the end of the Reporting Period is as follows :

* Refer Note 46 for related party transactions.

** Based on the above data, As there is a sufficient provision, it is carried forward
from previous year. No additional provision is made during the current year. The
provision for expected credit loss being higher is continued on a prudent basis for
unexpected credit losses.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted
prices. This includes listed equity instruments, traded bonds and mutual funds that
have quoted price. The fair value of all equity instruments (including bonds) which
are traded in the stock exchanges is valued using the closing price as at the
reporting period.

Level 2: The fair value of financial instruments that are not traded in an active
market (for example, traded bonds, over-the-counter derivatives) is determined
using valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable. If all significant inputs
required to fair value an instrument are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs is not based on observable market
data, the instrument is included in level 3. This is the case for unlisted equity
securities included in level 3.

There are no transfers between levels 1 and 2 during the year.

Note 41: Capital Management & Risk Management
Capital management

The Company being in a capital intensive industry, its objective is to maintain a
strong credit rating healthy capital ratios and establish a capital structure that
would maximise the return to stakeholders through optimum mix of debt and
equity.The Company''s capital requirement is mainly to fund its capacity expansion,
repayment of principal and interest on its borrowings. The principal source of
funding of the Company has been, and is expected to continue to be, cash
generated from its operations supplemented by funding from bank borrowings.
The Company is not subject to any externally imposed capital requirements. The
Company regularly considers other financing and refinancing opportunities to
diversify its debt profile, reduce interest cost and align maturity profile of its debt
commensurate with life of the assets, and closely monitors its judicious allocation
amongst competing capital expansion projects to capture market opportunities at
minimum risk.

Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the
entity manages the risk and the impact in the financial statements.

A Special Team with Senior Executives having exposure in various fields has been
formed to assist Cheif Financial Officer (CFO) in(a) Overseeing and approving the
Company''s enterprise wide risk management framework, and (b) Overseeing
that all the risks that the organisation faces such as market risk(including currency
risk, interest rate risk and other price risk), Credit risk and liquidity risk have been
identified and assessed and there is an adequate risk management infrastructure
in place capable of addressing those risks.The CFO, monitors and reports on the
principal risks and uncertainties that can impact the company and its ability to
achieve strategic objectives. The Company''s management systems, organisational
structures, processes, standards, code of conduct and behaviors together form
the Management and business of the Company.

A. Market risk

The Company is exposed to market risk through changes in foreign currency
exchange rates and changes in interest rates. Financial assets/liabilities affected
by this risk are borrowings, letter of credits and trade receivables.

The Company''s investments in equity securities are susceptible to price risk arising
from uncertainities about future value of the investment secutities. The Company''s
non-current investment in equity shares are strategic investments and hence are
considered as Fair Value through Other Comprehensive Income. The company''s
Board of Directors reviews and approves all equity investment decisions.

Foreign Currency risk management

The Company operates internationally and is exposed to foreign currency risk
arising from foreign currency transactions, primarily with respect to the US$. Foreign
exchange risk arises from import as well as exports of goods. The risk is measured
through a forecast of highly probable foreign currency cash flows.

The special team as mentioned above analysis the options for hedging. Based on
the analysis the management takes decision regarding hedging of foreign currency
exposures. Currently, the Company has not hedged any of the foreign currency
transactions in the veiw of the natural hedging. The natural hedging is sufficient to
manage the current foreign currency risk management.

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

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to US Dollor.

The following tables demonstrate the sensitivity to a reasonably possible change in
USD exchange rates, with all other variables held constant. The Company''s
exposure to foreign currency changes for all other currencies is not material.

Interest Rate Risk Management

Interest rate risk is the risk that the fair value or future cash flows of a financial
intruments will fluctuate because of changes in market interest rates. The Company''s
exposure to the risk of changes in market interest rates relates primarily to the
Company''s borrowings with floating base interest rates. Based on the interest rate
sensitivity the Company decides on the management of interest rate risk. The
Company manages by having a balanced portfolio of variable and fixed interest
rate borrowings.

B. Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual
obligations resulting in financial loss to the Company. The Company is operating
through network of dealers based at different locations. Regular monitoring of the
receivables is undertaken by the Marketing Department and in case the limits are
exceeded, steps will be taken by the Marketing departments and after discussing
with the management the Company will decide whether to stop or not further
supplies to the concerned dealer till the amount outstanding is recovered. For the
export made by the Company, the sales are backed by letters of credit or advance
receipts. The internal risk management committee of the Company meets regularly
to discuss the dealers and credit risks, measures taken to address them and the
status and level of risk after the measures taken.Export sales are fully secured
through letters of credit or against advance receipts. (refer Note No.9 for Trade
Receivbles outstanding).

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of funding through an adequate amount of committed
credit facilities to meet obligations when due and to close out market positions. Due
to the dynamic nature of the underlying businesses, Company maintains flexibility
in funding by maintaining availability under committed credit lines.

Ultimate responsibility for liquidity risk management rests with the board of directors,
which has established an appropriate liquidity risk management framework for the
management of the Company''s short-term, medium-term and long-term funding
and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

Note : (1) Income tax dues includes amount of TDS credit eligible by the company
but not considered by the Department in faceless assessment,
Rectification application filed pending rectification orders.

(2) GST dues includes incorrect availament of CENVAT credits and
transitional credit as per order in original passed by the department,
appeal filed with CESTAT pending disposal and also includes excess
availment as per order passed by Assisstant Commissioner GST
appeal filed with GST Appeals pending disposal.

43. Employee benefits:

A) Defined contribution plans

Employees contribution to provident fund and employees state insurance
(ESI) are recognized as expenditure in statement of profit and loss account,
as they are incurred. there are no other obligation other than the contribution
payable to aforesaid respective Trust/Government Authorities

B) Defined benefit Plans

The Company''s obligation towards the Gratuity (Lic) is a defined benefit plan
and is funded with Life Insurance Corporation of India. The following table
sets out the funded status of the defined benefits scheme and the amount
recognised in financialstatements as per Acturial Valuation:

Nature of Benefits:

The Company operates a defined benefit final salary gratuity plan which is open to
new entrants. The gratuity benefits payable to the employees are based on the
employee''s service and last drawn salary at the time of leaving. The employees do
not contribute towards this plan and the full cost of providing these benefits are met
by the Company.

i. Regulatory Framework:

There are no minimum funding requirements for a gratuity plan in India. The
trustees of the gratuity fund have a fiduciary responsibility to act according to
the provisions of the trust deed and rules. Since the fund is income tax
approved, the Company and the trustees have to ensure that they are at all
times fully compliant with the relevant provisions of the income tax and rules.
Besides this if the Company is covered by the Payment of Gratuity Act, 1972
then the Company is bound to pay the statutory minimum gratuity as
prescribed under this Act.

ii. Governance of the Plan:

The Company has setup an income tax approved irrevocable trust fund to
finance the plan liability. The trustees of the trust fund are responsible for the
overall governance of the plan.

iii. Risk exposures:

Valuations are performed on certain basic set of pre-determined assumptions
and other regulatory framework which may vary over time. Thus, the Company
is exposed to various risks in providing the above benefit which are as follows:
(a) Interest Rate risk: The plan exposes the Company to the rise of fall in
interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in the
value of the liability (as shown in financial statements).
b) Liquidity Risk: This is the risk that the Company is not able to meet the
short-term Benefit payouts. This may arise due to non availability of enough
cash / cash equivalent to meet the liabilities or holding of illiquid assets not
being sold in time.

(c) Salary escalation Risk: The present value of the defined benefit plan is
calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan''s liability.

(d) Demographic Risk: The Company has used certain mortality and attrition
assumptions in valuation of the liability. The Company is exposed to the
risk of actual experience turning out to be worse compared to the
assumption.

(e) Regulatory Risk: Benefit is paid in accordance with the Provisions of Gratuity
Act 1972 (as may be amended from time to time). There is a risk of
change in provisions of Gratuity Act requiring higher Plan Benefit pay outs
(e.g. change in benefit formula).

(f) Asset Liability Mismatching or Market Risk: The duration of the liability is
longer compared to duration of assets, exposing the Company to market
risk for volatilities/fall in interest rate.

(g) Investment Risk: The probability or likelihood of occurrence of losses
relative to the expected return on any particular investment.

iv. Amendments, Curtailments and Settlements - Not applicable in this case

These sensitivities have been calculated to show the movement in defined benefit
obligation in isolation and assuming there are no other changes in market conditions
at the accounting date. There have been no changes from the previous periods in
the methods and assumptions used in preparing the sensitivity analyses.

Special Events:

There are no special events such as benefit improvements or curtailments or
settlements during the inter-valuation period.

viii. Asset Liability Matching Reserves: The Company has Life Insurance
Corporation (Group Gratuity Manager) for administering the Plan liability. The
funds of the Plan liability are invested by the Life Insurance Corporation, (LIC),
pay the benefits to members of the enterprise as per Rules of the LIC. So the
LIC is exposed to the liquidity risk of not being able to arrange for the benefit
outgo due to cash liquidity problems and so the LIC faces a liquidity risk.

ix. Funding Arrangements & Policy:

The money contributed by the Company to the fund to finance the liabilities of
the plan has to be invested.

The trustees of the plan have outsourced the investment management of the
fund to an insurance company. The insurance company in turn manages
these funds as per the mandate provided to them by the trustees and the
asset allocation which is within the permissible limits prescribed in the insurance
regulations. Due to the restrictions in the type of investments that can be held
by the fund, it is not possible to explicitly follow an asset-liability matching
strategy to manage risk actively.

There is no compulsion on the part of the Company to fully pre fund the liability
of the Plan. The Company''s philosophy is to fund the benefits based on its
own liquidity and tax position as well as level of under funding of the plan.

The expected contribution payable to the plan next year is INR 2,000,000.

x. Projected plan cash flow and maturity profile:

The table below shows the expected cash flow profile of the benefits to be
paid to the current membership of the plan based on past service of the
employees as at the valuation date:

G. Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of transaction
price yet to be recognized as at the end of the reporting period and an explanation as to when
the Company expects to recognize these amounts in revenue.

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the
remaining performance obligation related disclosures for contracts where the revenue recognized
corresponds directly with the value to the customer of entity’s performance completed to date.

The aggregate amount of transaction price allocated to remaining performance obligations as
per the requirements of Ind AS 115 is Rs. 877.20 Lakhs out of which, approximately 100% is
expected to be recognized as revenues within one year and the balance beyond one year.

Note:

1. Total debt = Long term Borrowings (including current maturities of Long term
borrowings), Sales tax deferrment loans(Current and non-current), short term
borrowings and Interest accrued on Debts

2. Earning for Debt Service = Net Profit after taxes Non-cash operating
expenses like depreciation and other amortizations interest other
adjustments like loss on sale of Fixed assets etc

3. Debt service = Interest & lease payments principal repayments

4. Avg. Shareholder''s equity = Average of opening total equity and closing total
equity

5. Avg. Inventory = Average of opening inventory and closing inventory

6. Avg. Trade Receivable = Average of opening trade receivables and closing
trade receivables

7. Avg. Trade Payables = Average of opening trade payables and closing trade
payables

8. Working capital shall be calculated as current assets minus current liabilities

9. Capital Employed = Tangible net worth (excluding revaluation reserve)
Total debt Deferred tax liability

10. Average Total Assets = Average of opening total assets and closing total
assets

11. Average Total equity = Average of opening equity share capital other
equity and closing equity share capital other equity.

56. Investment in Subsidiary:

The Company has a single partly owned Subsidiary Company and has no
Associates or Joint ventures, the Company has significant investment in the
Subsidiary Company as per details below:

a. This Financial Statements are Standalone Financial Statements.

b. The details of significant investment in Subsidiary Company as below:

i) Name of Subsidiary Company - TGV Metals and Chemicals Private
Limited.

ii) The principal place of business and country of incorporation - 40-304,
K.J.Complex, Bhagya nagar, Kurnool, A.P India.

iii) Proportionate ownership is 50 % with voting rights.

c. Method of accounting investment - Investment of Rs.1725 Lakhs at Cost.

57. Additional regulatory information:

(1) The Company has not granted any loans or Advances in the nature of Loans
to Promoters, Directors, KMPs and other related parties.

(2) The company has investment property as at the Balance Sheet date and its
fair value is disclosed as per valuation obtained from Sub Registrar Office,
Kurnool and fair valuation parameters obtained are not based on valuation by
a Register Valuer.

(3) The company has not made any revaluations of its Property Plant and
Equipment (including Right of use Assets) hence disclosing revaluations based
on values of registered valuer is not applicable to the company.

(4) The Company is not holding any Benami property and no proceeding has
been initiated or pending against the company.

(5) The Company has no transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in tax
assessments under the Income Tax Act, 1961 (such as search or survey or
any relevant provisions of Income Tax Act, 1961)

(6) (A) The Company has not advanced or loaned or invested any funds in any

other person(s) or entity(ies), including foreign entities (intermediaries)
with understanding that the intermediary shall be directly or indirectly
lend or invest in other person or entitites on behalf of the company or
provide any gurantee or security or the like to or on behalf of the company.

(B) The Company has not received any funds from any person(s) or entity(ies),
including foreign entities (funding party) with the understanding that the
company shall lend or invest in other person or entity indentified in any
manner by or on behalf of the funding party/Ultimate beneficiary or provide
any guarantee or security or the like on behalf of the funding party/
Ultimate beneficiary.

(7) The Company is not declared as willful defaulter by any Bank or Financial
institutions or RBI or other lenders.

(8) The Company has no borrowings from banks or financial institutions on the
basis of security of current assets. Accordingly submission of quarterly returns
of current assets and its reconciliation with books of accounts is not applicable
to the Company.

(9) There are no charges or satisfaction of charges yet to be registered with
Registrar of Companies beyond the statutory period.

(10) Transactions with struck off companies : During the year under review, the
Company has no transactions with any struck off companies.

(11) The company has not made any investments through any layers of invesmtment
companies.

(12) There are no Schemes of Arrangements approved by the Competent Authority
in terms of sections 230 to 237 of the Companies Act, 2013.

(13) The Company has not invested or traded in crypto currency or virtual currency
during the financial year 2023-24.

(14) The Company do not have any intangible assets.

(15) The Company does not have any capital work in progress.

(16) The title deeds of Immovable property are in the name of the Company and
the property not held in the name of the Company is detailed in Note No.53

(17) The financial ratios are calculated and provided in Note No.55

(18) Regulatory defferal accounting balances are not applicable to the Company.

58. Confirmation of balances

Confirmation of balances from certain parties for amounts due to them or due
from them are yet to be received confirmation letters were received from
some of the parties. And as per the letter of confirmation the balances are
deemed to be accepted if not responded with in 15 days.

59. Figures have been rounded off to the nearest decimal of lakhs as required
under Schedule III.

60. Approval of financial statements

The standalone financial statements approved by the Board of Directors in
their meeting held on May 30, 2025.

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

For S.T.Mohite & Co., Sd/_- Sd/_-

Chartered Accountants (Regn.No.011410S) TG.Shilpa Bharath R.Triveni

^Sd/- Chairperson & Managing Director Director

C.A. Sreenivasa Rao T.Mohite DIN : 01895414 DIN : 09045405

^Partner Sd/- Sd/-

^Me^mbe^rship ^{No 01}5635 V.Surekha S. Ifthekhar Ahmed

^{UDIN NO} : ²⁵°1⁵⁶³⁵B^MOFNN41°⁴ Company Secretary Chief Financial Officer

Place: Kurnool Place: Kurnool

Date : May 30, 2025 Date : May 30, 2025

---

Mar 31, 2024

2.19 Provisions and contingencies

A Provision is recognised when the company has a present obligation(legal or constructive) as a result of past event i.e., it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

• Contingent liabilities and assets are not recognised in financial statements. A disclosure of the contingent liability is made when there is a possible or a present obligation that may, but probably will not, require an outflow of resources.

2.20 Financial instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in two categories:

• Financial assets at amortised cost

• Equity instruments at fair value through other comprehensive income (FVTOCI)

Financial assets at amortised cost

‘Financial asset'' is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade receivables.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value.

The Company makes such election on an instrument by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at Fair Value throughOther Comprehensive Income, then all fair value changes on the instrument, excluding dividends, are recognized in the Other Comprehensive Income. There is no recycling of the amounts from Other Comprehensive Income to Profit &Loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the Fair Value throughProfit &Loss category are measured at fair value with all changes recognized in the Profit &Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

The rights to receive cash flows from the asset have expired, or

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through'' arrangement— And either

(a) The Company has transferred substantially all the risks and rewards of the asset, or

(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

Impairment of Financial assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss.

The Company follows “Simplified approach” for recognition of impairment loss allowance on trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognised as an impairment gain or loss in profit or loss. As a practical expediency, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses''.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

2.21 Earning per equity share

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

For the purpose of calculating diluted earnings per equity share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. In computing the dilutive earnings per share, only potential equity shares that are dilutive and that either reduces the earnings per share or increases loss per share are included.

2.22 Segment Reporting

The management has assessed the identification of reportable segments in accordance with the requirements of Ind AS 108 ‘Operating Segments'' and the company has disclosed three reportable segments namely (i) Chemical Manufacturing, (ii) Power Generation and (iii) Trading in Coal. Further, the Board of directors have designated the Managing Director as Chief Operating Decision Marker (‘CODM'').

2.23 Cash flow Statement

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

2.24 Estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, 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 assets or liabilities affected in future periods.

The Company applies judgement to determine whether each product or services promised to a customer are capable of being distinct, and are distinct in the context of the contract, if not, the promised product or services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation deliverables based on their relative stand-alone selling price. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognized revenue and profit are subject to revisions as the contract progresses to completion.

Allowance for expected credit losses:

It describes the use of practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The expected credit allowance is based on the aging of the days receivables which are past due and the rates derived based on past history of defaults in the provision matrix.

Fair value of investments:

The Company has invested in the equity instruments of various companies. However, the percentage of shareholding of the Company in such investee companies is very low and hence, it has not been provided with future projections including projected profit and loss account by those investee companies. Hence, the valuation exercise carried out by the Company with the help of available historical annual reports and other information in the public domain.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will beavailable against which the losses can be utilised. Significant management judgement is required to determine theamount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxableprofits together with future tax planning strategies.

Contingent liability judgement:

Contingent liabilities are claims against the Company notacknowledged as debt. Contingencies may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum of contingencies inherently involve the exercise of significant judgement and the use of estimates regarding the outcome of future events.

2.25New Standards, Interpretations and Amendments adopted by the Company

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s Standalone Financial Statements.

Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant'' accounting policies with a requirement to disclose their ‘material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously has not recognised for deferred tax on leases. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets.

Impact on the statement of profit and loss account is recognition of deferred tax asset amounting to Rs. 12.54 lakhs. Opening retained earnings is increased by Rs. 55.87 lakhs.

Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

There are no transfers between levels 1 and 2 during the year.

The investments in certain quoted and unquoted instruments which are held for medium or longterm strategic purpose and are not held for trading purpose. Upon application of IND AS 109, the company has chosen to designate these equity instruments at FVTOCI as the management believe that this provides a more meaningful presentation for medium or longterm strategic investments, than reflecting changes in fair value in profit and loss account

Note 41: Capital Management & Risk Management Capital management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.The Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings. The Company is not subject to any externally imposed capital requirements. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.

Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.

A Special Team with Senior Executives having exposure in various fields has been formed to assist Cheif Financial Officer (CFO) in(a) Overseeing and approving the Company''s enterprise wide risk management framework, and(b) Overseeing that all the risks that the organisation faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.The CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company''s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.

A. Market risk

The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.

The Company''s investments in equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The company''s Board of Directors reviews and approves all equity investment decisions.

Foreign Currency risk management

The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.

The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.

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

Interest Rate Risk Management

Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk. The Company manages by having a balanced portfolio of variable and fixed interest rate borrowings.

B. Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by letters of credit or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.Export sales are fully secured through letters of credit or against advance receipts. (refer Note No.9 for Trade Receivbles outstanding).

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Nature of Benefits:

The Company operates a defined benefit final salary gratuity plan which is open to new entrants. The gratuity benefits payable to the employees are based on the employee''s service and last drawn salary at the time of leaving. The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company.

1. Regulatory Framework:

There are no minimum funding requirements for a gratuity plan in India. The trustees of the gratuity fund have a fiduciary responsibility to act according to the provisions of the trust deed and rules. Since the fund is income tax approved, the Company and the trustees have to ensure that they are at all times fully compliant with the relevant provisions of the income tax and rules. Besides this if the Company is covered by the Payment of Gratuity Act, 1972 then the Company is bound to pay the statutory minimum gratuity as prescribed under this Act.

2. Governance of the Plan:

The Company has setup an income tax approved irrevocable trust fund to finance the plan liability. The trustees of the trust fund are responsible for the overall governance of the plan.

3. Risk exposures: Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

(a) Interest Rate risk: The plan exposes the Company to the rise of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

(b) Liquidity Risk: This is the risk that the Company is not able to meet the short-term Benefit payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Salary escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

(d) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

(e) Regulatory Risk: Benefit is paid in accordance with the Provisions of Gratuity Act 1972 (as may be amended from time to time). There is a risk of change in

8. Asset Liability Matching Reserves: The Company has Life Insurance Corporation (Group Gratuity Manager) for administering the Plan liability. The funds of the Plan liability are invested by the Life Insurance Corporation, (LIC), pay the benefits to members of the enterprise as per Rules of the LIC. So the LIC is exposed to the liquidity risk of not being able to arrange for the benefit outgo due to cash liquidity problems and so the LIC faces a liquidity risk.

9. Funding Arrangements & Policy:

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset-liability matching strategy to manage risk actively.

There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company''s philosophy is to fund the benefits based on its own liquidity and tax position as well as level of under funding of the plan. The expected contribution payable to the plan next year is INR 2,000,000.

10. Projectedplan cash flow and maturity profile:

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan based on past service of the employees as at the valuation date:

Note:

1. Totaldebt = Long term Borrowings (including current maturities of Long term borrowings), Sales tax deferrment loans

(Current and non-current), short term borrowings and Interest accrued on Debts

2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations interest other adjustments like loss on sale of Fixed assets etc

3. Debt service = Interest &lease payments principal repayments

4. Avg. Shareholder’s equity = Average of opening total equity and closing total equity

5. Avg. Inventory = Average of opening inventory and closing inventory

6. Avg. Trade Receivable = Average of opening trade receivables and closing trade receivables

7. Avg. Trade Payables = Average of opening trade payables and closing trade payables

8. Working capital shall be calculated as current assets minus current liabilities

9. Capital Employed = Tangible net worth (excluding revaluation reserve) Total debt Deferred tax liability

10. Average Total Assets = Average of opening total assets and closing total assets

11. Average Total equity = Average of opening equity share capital other equity and closing equity share capital other equity.

55. Additional Regulatory Information:

(1) The Company has not granted any loans or Advances in the nature of Loans to Promoters, Directors, KMPs and other related partiesexcept Rs.2,109.1 Olakhs to subsidiaries (note12) which are without specifying terms and period of repayment and constitutes 100% of total advances.

(2) The company has no investment property as at the close of the year for fair valuation. The company has not revalued its Property Plant and Equipment (including Right of use Assets).

(3) The Company is not holding any Benami property and no proceeding has been initiated or pending against the company.

(4) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961(such as search or survey or any relevant provisions of Income Tax Act, 1961)

(5) (A)The Company has not advanced or loaned or invested any funds in any other person(s) or

entity(ies), including foreign entities (intermediaries) with understanding that the intermediary shall be directly or indirectly lend or invest in other person or entitites on behalf of the company or provide any gurantee or security or the like to or on behalf of the company.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding that the company shall lend or invest in other person or entity indentified in any manner by or on behalf of the funding party/Ultimate beneficiary or provide any guarantee or security or the like on behalf of the funding party/ Ultimate beneficiary.

(6) The Company is not declared as willful defaulter by any Bank or Financial institutions or RBI or other lenders.

(7) The Company has borrowings from Banks or Financial institutions on the basis of security of Current Assets. Quarterly returns or Statement of current assets filed by the company with Banks or Financial Institutions are in agreement with the Books of Accounts with some insignificant variances.

(8) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(10) The company has not made any investments through any layers of invesmtment companies.

(11) There are no Schemes of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 201 3.

(12) The Company has not invested or traded in crypto currency or virtual currency during the financial year 2023-24.

(13) The Company do not have any intangible assets.

(14) The Company does not have any capital work in progress.

(15) The title deeds of Immovable property are in the name of the Company and the property not held in the name of the Company is detailed in Note No.52

(16) The financial ratios are calculated in Note No.54

(17) Compliance with number of layers of companies:

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

56. Confirmation of Bbalances

Confirmation of balances from certain parties for amounts due to them or due from them are yet to be received confirmation letters were received from some of the parties. And as per the letter of confirmation the balances are deemed to be accepted if not responded with in 15 days.

57. Figures have been rounded off to the nearest decimal of lakhs as required under Schedule III.

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

59. Approval of financial statements

60. The standalone financial statements approved by the Board of Directors in their meeting held on May 28, 2024.

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

For S.T.Mohite & Co.,

Chartered Accountants (Regn.No.011410S) Sd/_- Sd/_-

Sri TG.Bharath Smt. R.Triveni

^Sd/- Chairman & Managing Director Director

Sreenivasa Rao T.Mohite DIN : 00125087 DIN : 09045405

Partner

Membership No.015635 Sd/_- Sd/_-

UDIN NO : 24015635BKFPOC2912 Smt. V.Surekha Sri S. Ifthekhar Ahmed

Company Secretary Chief Financial Officer

Place: Kurnool Place: Kurnool

Date : May 28, 2024 Date : May 28, 2024

---

Mar 31, 2023

The Company obtains independent valuations for its investment properties annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:

(i) current prices in an active market for properties of different nature

(ii) recent prices of similar properties in less active markets, adjusted to reflect those differences

The main input used is the price per square metre as per state government''s registration and stamps department rate for the property. All resulting fair value estimates for investment properties are included in level 2.

The average credit period on sales is 60 days

No interest is charged on trade receivables for delay in payment beyond credit period from the due date of the Invoice.

The Company has used a practical experience by computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates are given in the provision matrix. The provision matrix at the end of the Reporting Period is as follows :

No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

Before accepting any new customer, the Company uses an external credit scoring system and other potential information to assess the customer credit quality and defines credit limit. The limit and scoring attributable to customer are reviewed periodically.

(ii) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

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 the number of equity shares held by the shareholders.

Nature and purpose of other reserves General Reserve

As General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to profit or loss.

FVTOCI intruments

The Company has elected to recognise changes in the fair value of certain investments in equity and preference securities in other comprehensive income. These changes are accumulated within the FVTOCI investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant securities are derecognised.

(a) The term loan from banks are secured by exclusive charge on specific fixed assets.

(b) The loan repayable on demand from banks are cash credits, bills purchases, discountings, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in thier individual capacities

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

There are no transfers between levels 1 and 2 during the year.

NOTE 41: CAPITAL MANAGEMENT & RISK MANAGEMENT

Capital Management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.

The Company’s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings.

The Company is not subject to any externally imposed capital requirements. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.

Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.

A Special Team with Senior Executives having exposure in various fields has been formed to assist Cheif Financial Officer (CFO) in (a) Overseeing and approving the Company''s enterprise wide risk management framework, and(b) Overseeing that all the risks that the organisation faces such as market risk (including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.

The CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company''s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.

A. Market risk

The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.

The Company''s investments in equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The Company''s Board of Directors reviews and approves all equity investment decisions.

Foreign currency risk management

The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.

The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.

Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk. The Company manages by having a balanced portfolio of variable and fixed interest rate borrowings.

Interest rate sensitivity:

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating base rate borrowings, as follows:

B. Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the marketing department and in case the limits are exceeded, steps will be taken by the marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by letters of credit or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.“Export sales are fully secured through letters of credit or against advance receipts. (refer Note No.9 for Trade Receivbles outstanding).

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

42. CONTINGENT LIABILITIES AND COMMITMENTS: (to the extent not provided for)
Particulars	Year Ended 31st March, 2023	Year Ended 31st March, 2022
Contingent liabilities a) Claims against company not acknowledged as debts (Income tax dues under dispute and GST under dispute pending in Appeal) b) Guarantees issued by banks on behalf of the Company and outstanding at end of the year	149.59 152.27	50.79 12,261.33
Commitments a) Unexpired letters of credit established by the Company ^-	4,607.05	6,159.11 -y

43. EMPLOYEE BENEFITS:

A) Defined contribution plans

Employees contribution to provident fund and employees state insurance (ESI) are recognized as expenditure in statement of profit and loss account, as they are incurred. there are no other obligation other than the contribution payable to aforesaid respective Trust/Government Authorities

B) Defined benefit plan

The Company''s obligation towards the Gratuity (Lic) is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognised in financial statements as per Acturial Valuation:

LEASES:

The Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the Company''s incremental borrowing rate at the date of initial application.

The Company has taken a portion of factory land, office premises and movable assets (hydrozen cylinders) on operating lease. And the company has given a portion of land, hatchery unit on operating lease.

C. Lease receipts recognized in the Profit and Loss Account is ''48.91 Lakhs during the

year ended March 31,2023.

45. SEGMENT REPORTING:

Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographical areas and major customers. The Company''s operations predominantly relate to manufacturing of chemicals, real estate, trading of coal and power generation. The Chief Operating Decision Making (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments.The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segements, and are as set out in the accounting policies.

49. REVENUE FROM CONTRACTS WITH CUSTOMERS:

The Company is producer of calcium hypochlorite, sulphuricacid, stable bleaching powder, hydrogen gas, sodium methoxide, sodium hydride and also in coal trading and generation and distribution of Power.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

Revenue from sale of goods is recognized when control of the products being sold is transferred to our customer and when there are no longer any unfulfilled obligations.

The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Income from services rendered is recognizedbased on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.

Interest income is recognized using the effective interest rate (EIR) method.

Dividend income on investments is recognized when the right to receive dividend is established.

The Company represents revenue net of indirect taxes in its Statement of Profit and Loss.

G. Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of entity''s performance completed to date.

The aggregate amount of transaction price allocated to remaining performance obligations as per the requirements of Ind AS 115 is '' 6,238.65 Lakhs out of which, 100% is expected to be recognized as revenues within one year.

52. CONFIRMATION OF BALANCES

Confirmation of balances from certain parties for amounts due to them or due from them are yet to be received confirmation letters were received from some of the parties. And as per the letter of confirmation the balances are deemed to be accepted if not responded with in 15 days.

1. Total debt = Long term Borrowings (including current maturities of Long term borrowings), Sales tax deferrment loans

(Current and non-current), short term borrowings and Interest accrued on debts

2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations interest other adjustments like loss on sale of Fixed assets etc

3. Debt service = Interest & Lease Payments Principal Repayments

4. Avg. Shareholder''s Equity = Average of opening total equity and closing total equity

5. Avg. Inventory = Average of opening inventory and closing inventory

6. Avg. Trade Receivable = Average of opening trade receivables and closing trade receivables

7. Avg. Trade Payables = Average of Opening Trade Payables and Closing Trade Payables

8. Working capital shall be calculated as current assets minus current liabilities

9. Capital employed = Tangible Net Worth (excluding revaluation reserve) Total debt Deferred tax liability

10. Average total Assets = Average of opening total assets and closing total assets

11. Average total equity = Average of opening equity share capital other equity and closing equity share capital other equity.

Additional Regulatory Information:

(1) The Company has not granted any loans or Advances in the nature of Loans to Promoters, Directors, KMPs and other related parties except ''1171.53 lakhs to subsidiaries (note12) which are without specifying terms and period of repayment and constitutes 100% of total advances.

(2) The Company has no investment property as at the close of the year for fair valuation. The company has not revalued its Property Plant and Equipment (including Right of use Assets).

(3) The Company is not holding any Benami property and no proceeding has been initiated or pending against the company.

(4) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961(such as search or survey or any relevant provisions of Income Tax Act, 1961)

(5) (A) The Company has not advanced or loaned or invested any funds in any other person(s)

or entity(ies), including foreign entities (intermediaries) with understanding that the intermediary shall be directly or indirectly lend or invest in other person or entitites on behalf of the company or provide any gurantee or security or the like to or on behalf of the company.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding that the company shall lend or

invest in other person or entity indentified in any manner by or on behalf of the funding party/Ultimate beneficiary or provide any guarantee or security or the like on behalf of the funding party/Ultimate beneficiary.

(6) The Company is not declared as willful defaulter by any Bank or Financial institutions or RBI or other lenders.

(7) The Company has borrowings from Banks or Financial institutions on the basis of security of Current Assets. Quarterly returns or Statement of current assets filed by the company with Banks or Financial Institutions are in agreement with the Books of Accounts.

(8) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(9) The company has no transactions and no relationship with companies struck off under Section 248 of the Companies Act, 201 3 or Section 560 of Companies Act, 1956.

(10) The company has not made any investments through any layers of invesmtment companies.

(11) There are no Schemes of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 201 3.

(12) The Company has not invested or traded in crypto currency or virtual currency during the financial year 2021-22.

55. Figures have been rounded off to the nearest decimal of lakhs as required under Schedule III.

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

57. Approval of financial statements

The standalone financial statements approved by the Board of Directors in their meeting held on May 30, 2023

---

Mar 31, 2018

Note 1: General Information

Sree Rayalaseema Hi - Strength Hypo Limited incorporated on 28^th March, 2005 It is the leading producer of Calcium Hypo Chloride, Stable Bleaching Powder, Sulphuric Acid and other chemicals.

The Company is a public limited company domiciled in India. The address off its registered office and principal place of business are disclosed in the introduction to the Annual Report. The equity shares of the Company are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The financial statements are approved for issue by the Company’s Board of Director’s on 30^th May, 2018.

Contingent liability judgement:

Note 2 describes claims against the Company not acknowledged as debt. Contingencies may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum of contingencies inherently involve the exercise of significant judgement and the use of estimates regarding the outcome of future events.

3.1 Standards issued but not yet effective

The standards issued, but not effective up to the date of issuance of Financial Statements is disclosed below:

a. Ind AS 115 - Revenue from contracts with customers

In march, 2018, the Ministry of Company Affairs has notified Ind As 115, ‘Revenue from contracts with customers’, which is effective for accounting periods beginning on or after 1 April 2018. This comprehensive new standard will supersede existing revenue recoginition guidance, and requires an entity to recognize revenue to depicit the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements.

Ind AS 115 is effective for annual reporting periods beginning on or after April 1,2018. The company intends to adopt Ind AS 115 effective April 1, 2018, using the modified retrospective method. The adoption of Ind AS 115 is not expected to have a significant impact on the Company’s recognition of revenues.

b. Other amendments to Indian Accounting Standards;

The Ministry of Corporate Affairs (MCA), on 28 March 2018, issued certain amendments to Ind AS. The amendments relate to the following standards:

Ind AS 21, The Effects of Changes in Foreign Exchange Rates - The amendment lays down the principle regarding advance payment or receipt of consideration denominated or priced in foreign currency and recoginition of non-monetary prepayment asset or deferred income liability.

Ind AS 12, Income Taxes - The amendment explains that determining temporary differences and estimating probable future taxable profit against which deductible temporary differences are assessed for utilization are two separate steps and the carrying amount of an asset is relevant only to determining temporary differences.

Ind AS 28, Investments in Associates and Joint Ventures - The amendment clarifies when a venture capital, mutual fund, unit trust or similar entities elect to initially recognize the investments in associates and joint ventures.

Ind AS 112, Disclosure of Interests in Other Entities - The amendment clarifies that disclosure requirements for interests in other entities also apply to interests that are classified as Held for sale or discontinued operations in accordance with Ind AS 105.

Ind AS 40, Investment Property - The amendment clarifies when a property should be transferred to / from investment property.

The amendments are effective 1 April 2018. The company believes that the aforementioned amendments will not materially impact the financial position, performance or the cash flows of the Company.

Estimation of fair value

The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:

Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences The main input used is the price per square metre as per state government’s registration and stamps department rate for the property.

All resulting fair value estimates for investment properties are included in level 2.

The Company has used a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates are given in the provision matrix. The provision matrix at the end of the Reporting Period is as follows :

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member. Before accepting any new customer, the company uses an external credit scoring system and other potential information to assess the customer credit quality and defines credit limit. The limit and scoring attributable to customer are reviewed periodically.

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. 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 the number of equity shares held by the shareholders.

As per records of the Company including its register of share holders/members and other declarations received from share holders regarding benificial interest, the above share holding represents legal ownership of shares as at balance sheet date.

The Company declares and pays dividend in indian rupees. In the meeting held on 30th May 2018, the board had recommended a dividend as provided in the accounts is subject to approval of members at the ensuing Annual General Meeting, The Company had four wholly owned Subsidaries which ceased to be subsidiaries from 29th August, 2016.

The Company has issued 24,48,132 convertible warrants in 2017 of which 8,15,329 warrants were converted into equity shares on 26th March, 2018 and 8,58,241 warrants will be converted on or before 30th September, 2018. As per terms of preferential allotment the outstanding 8,58,241 warrants be fully convertible into equal number of shares.

On 30th May, 2018 the Board of directors have proposed a dividend of Rs.2/- (Two) per equity share in respect of the year ended 31st March, 2018 subject to approval of the shareholders in the Annual General Meeting. If approved, dividend would be paid to shareholders on the record date resulting in a cash out flow of Rs.392.53 Lakhs inclusive of dividend distribution tax of Rs.66.40 Lakhs

Nature and purpose of other reserves Securities premium reserve

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

General Reserve

The General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purpose. As General Reserve is created by a transfer from one component of Equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to profit or loss.

FVTOCI intruments

The Company has elected to recognise changes in the fair value of certain investments in equity and preference securities in other comprehensive income. These changes are accumulated within the FVTOCI investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant securities are derecognised.

Money received against warrants

The above amounts were received at 25% upfront for the share warrants issued pending conversion on or before 30th September, 2018 on payment of balance 75% of issue price.

Security

(a) The term loan from banks are secured by exclusive charge on specific fixed assets.

(b) The loan repayable on demand from banks are cash credits, bills purchases, discountings, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities

During the Current Year, the Tax Liability under normal Provisions of the Income Tax Act, 1961 is less than the Tax Liability under MAT Provisions of Income Tax Act, 1961 as detailed below. Hence, the Company is required to pay the tax under MAT Provisions of Income Tax Act, 1961. Accordingly, MAT credit Entitlement reflects the difference between the normal tax and tax under MAT Provisions.

The income tax expense for the year can be reconciled to the accounting profit as follows :

4. Employee Benefits:

A) Defined Contribution Plans

Employers contribution to provident fund and Employees state insurance are recognized as expenditure in statement of profit and loss account, as they are incurred. There are no other obligation other than the contribution payable to aforesaid respective Trust/ Government Authorities

B) Defined Benefit Plan

The Company’s obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognised in financial statements as per Acturial Valuation:

Operating lease:

The Company has taken a portion of factory land, office premises and movable assets(hydrozen cylinders) on operating lease. And the company has given a portion of land, hatchery unit on operating lease. The expenses on such lease rentals recognized in the statement of profit and loss for the year ended31st March,2018 are given hereunder.

A. The total future commitments on Lease Payments are detailed hereunder:

C. Lease Payments recognized in the Profit and Loss Account is Rs.204.57 Lakhs during the year 2017-18.

D. Lease Receipts recognized in the Profit and Loss Account is Rs.14.82 Lakhs during the year 2017-18.

Note No. 5. Related Party Disclosures

As required under Ind As 24, Related Party Disclosures, the following are the related parties identified, transactions with such related parties during the year ended 31st March, 2018 an the balances as on that date are given below:

Note 6: Capital Management & Risk management Capital management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.The Company’s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings. The Company is not subject to any externally imposed capital requirements. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.

Gearing ratio

The Company monitors its capital using gearing ratio as given below:

*Total Debt is defined as secured long-term including current maturities of borrowings. Financial risk management and objectives and policies

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.

A Special Team with Senior Executives having exposure in various fields has been formed to assist Cheif Financial Officer (CFO) in :

(a) Overseeing and approving the Company’s enterprise wide risk management framework, and

(b) Overseeing that all the risks that the organisation faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.The CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company’s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.

A.Market risk

The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.

The Company’s investments in equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Company’s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The company’s Board of Directors reviews and approves all equity investment decisions.

Foreign Currency risk management

The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.

The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.

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

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to US Dollor.

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The Company’s exposure to foreign currency changes for all other currencies is not material.

Interest Rate Risk Management

Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk. The Company manages by having a balanced portfolio of variable and fixed interest rate borrowings.

Interest Rate Sensitivity:

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating base rate borrowings, as follows: _

B. Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by letters of credit or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.Export sales are fully secured through letters of credit or against advance receipts. (refer Note No.8(a) for Trade Receivbles outstanding).

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Financing arrangements

The table below provides details regarding the remaining contractual maturities of financial liabilities as at reporting date

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

There are no transfers between levels 1 and 2 during the year.

7. Income and expenditure in foreign currency and Foreign Currency Exposures earning in foreign currency

8. The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstandinaas on 31-03-2018 and remaining unpaid to any Micro, Small and MediumEnterprises is Rs 80.01 and the said amounts are due for less than 45 days as on 31-03-2018. Hence, excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 2013.

Note 9: First-time adoption of Ind AS Transition to Ind AS:

These are the Company’s first financial statements prepared in accordance with Ind AS.The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (date of transition). In preparing opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

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

Ind AS optional exemptions Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investment in subsidaries. Deemed cost

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

Ind AS 101 allows an entity to make an irrevocable option at initial recognition for investments in equity instrument not held for trading to measure at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.The Company has elected to apply this exemption for its investment in equity instruments.

Leases

Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.The Company has elected to apply this exemption for such contracts/arrangements.

Ind AS mandatory exemptions Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:- Investment in instruments carried at FVOCI; and- Impairment of financial assets based on expected credit loss model.

De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Notes:

a) Under IGAAP transaction costs incurred towards origination of borrowings were either capitalised or recognised in the Statement of Profit or Loss. Whereas, under Ind AS these transaction costs are deducted from the carrying amount of borrowings on initial recognition. These costs are then capitalised or recognised in the Statement of Profit or Loss over the tenure of borrowings as part of the interest expense by applying the effective interest method. The corresponding adjustments have been recognised in retained earnings as at the date of transition and subsequently in the Statement of Profit or Loss.

b) Under IGAAP provisions for trade receivables are provided based on the best judgement of management after analysing the facts and circumstances. Whereas, Under Ind AS the trade receivables are subject to Expected Credit Loss model. Impairment loss allowance is made in financial statements after considering “Expected Credit Loss model”.

c) Under IGAAP Long-term Investments are usually carried at cost. Whereas under Ind AS Long-term Investments are measured at fair value and resulting fair value changes are recognised through Other Comprehensive Income (OCI).

d) Under previous GAAP, dividends on Equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends together with dividend distribution tax are recognised when approved by the members in the General Meeting.

e) IGAAP requires deferred tax accounting using income statement approach i.e recognising tax effect on timing difference between the accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e tax effect on temporary differences between carrying amount and tax base. Also deferred taxes are recognised on account of the above mentioned changes.

Footnotes to the reconciliation of equity as at April 1st, 2016 and March 31, 2017 and total comprehensive income for the year ended March 31, 2017:

10.1 Investment property:

Ind AS 40 Investment property defines property (i.e land or a building—or part of a building—or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation or both as Investment property.Such properties identified by the Company are classified as Investment property in the balance sheet. The Investment properties are measured at cost and any incidental expenses have been added to the investment property. There is no impact on the total equity or profit as a result of this adjustment.

10.2 Fair valuation of investments:

Under IGAAP Long-term Investments are usually carried at cost. Whereas under Ind AS 109 Financial Instruments, the equity instruments not held for trading, an entity can make an irrevocable option at initial recognition and measure the same at fair value and resulting fair value changes are recognised through Other Comprehensive Income (OCI).The Company has measured the equity instruments at fair value through OCI and gains/ losses if any has been recognised through OCI.

10.3 Trade receivables

As per Ind AS 109 Financial Instruments, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. Impairment loss allowance is made in financial statements after considering “Expected Credit Loss model”. Where as under IGAAP provisions for trade receivables are provided based on the best judgement of management after analysing the facts and circumstances.

10.4 Borrowings

Ind AS 109 Financial Instruments, requires transaction costs to be deducted from the carrying amount of borrowings on initial recognition. These costs are then capitalised or recognised in the Statement of Profit or Loss over the tenure of borrowings as part of the interest expense by applying the effective interest method. The corresponding adjustments have been recognised in retained earnings and to fixed assets as at the date of transition and subsequently in the Statement of Profit or Loss.

10.5 Deposits

As per the current accounting system in India, there is no specific treatment defined for any kind of security deposits which are being taken/ given in normal course of business by an entity and all such deposits that are refundable shown at their respective transaction values.Under Ind AS 109, Financial Instruments Deposits which are being given/ received from parties on account of return in future (refund period is certain) in cash will be discounted and will be shown at their present value at the time of its initial recognition. These present value calculated as mentioned in above will be treated as fair values of these securities deposits and it will be recognized as financial asset/ liabilities accordingly.Subsequently, these fair valued deposit amounts will charged for finance expense/ income using discount rate which was used for discounting initially (or the new one if there is any change subsequently) and accordingly will be transferred/ charged to PL and at the same time prepaid exp/ deferred income will be released to PL using some systematic allocation.

10.6 Re-measurement of post-employment benefit plans

Under IGAAP remeasurement gains and losses relating to post employment benefits based on actuarial valuation were forming part of the Statement of Profit and Loss. Whereas under Ind AS these measurements are recognised through Other Comprehensive Income (OCI).

10.7 Deferred tax

IGAAP requires deferred tax accounting using income statement approach i.e recognising tax effect on timing difference between the accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e tax effect on temporary differences between carrying amount and tax base. Also deferred taxes are recognised on account of the above mentioned changes.

10.8 Dividend payable

Under Indian GAAP, proposed dividends including DDT are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is approved by shareholders in a general meeting.

10.9 Retained earnings

Retained earnings as at April 1, 2016 have been adjusted consequent to the above Ind AS transition adjustments.

10.10 0ther comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

11 Confirmation of balances.

Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received. Confirmation letters were received from some of the parties. No material discrepancies are observed.

12 Regrouped/ Rearranged/ Reclassified.

Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current year’s disclosures and figures.

13 Rounding off

Figures shown in the Financial Statements have been rounded off to the nearest Rupee.

Signature to note 1 to 39

---

Mar 31, 2016

1. Rights, preferences and restrictions

The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings.

2. The Company declare and pays dividend in Indian rupees. In the meeting held on 30th May, 2016, the Board has proposed a dividend of Rs.1.50 (15%) per equity share for the year ended 31st March, 2016. The proposed dividend as provided in the accounts is subject to approval of members at the ensuing Annual General meeting.

3. The Company has Four Wholly owned Subsidiaries and has an Associate Company. The Company has no Holding Company.

4. Of the above issued shares, 24,86,028 Equity shares of Rs. 10/- each fully paid were issued for consideration with out payment received in cash as per terms of amalgamation

5. Utilized of issue proceeds

There are no Unutilized Proceeds of issue as at the close of the Financial Year.

6. Additional information on borrowings

1. Security

(a) The term loan from banks are secured by exclusive charge on specific fixed assets.

(b) The loan repayable on demand from banks are cash credits, bills purchases, discounting, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities

7. Defaults

There are no defaults/continuing defaults as on 31st Mar, 2016 in payment of interest and repayment of loans.

8. Rights, preferences and restrictions

The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings.

9. The Company declare and pays dividend in Indian rupees. In the meeting held on 30th May, 2016, the Board has proposed a dividend of Rs.1.50 (15%) per equity share for the year ended 31st March, 2016. The proposed dividend as provided in the accounts is subject to approval of members at the ensuing Annual General meeting.

10. The Company has Four Wholly owned Subsidiaries and has an Associate Company. The Company has no Holding Company.

11. Of the above issued shares, 24,86,028 Equity shares of Rs. 10/- each fully paid were issued for consideration with out payment received in cash as per terms of amalgamation

12. Utilized of issue proceeds

There are no Unutilized Proceeds of issue as at the close of the Financial Year.

13. Additional information on borrowings

13.1. Security

(a) The term loan from banks are secured by exclusive charge on specific fixed assets.

(b) The loan repayable on demand from banks are cash credits, bills purchases, discounting, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities

13.2. Defaults

There are no defaults/continuing defaults as on 31st Mar, 2016 in payment of interest and repayment of loans.

14. Micro, Small and Medium Enterprises

The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstanding as on 31-03-2016 and remaining unpaid to any Micro, Small and Medium Enterprises is Rs1,69,56,532/- and the said amounts are due for less than 45 days as on 31-03-2016. Hence, excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 1956.

15. Disclosure pursuant to clause 34(3) of SEBI (LODR) Regulation 2015 (As applicable to the company)

Disclosure pursuant to clause 34(3) of Securities Exchange Board of India (listing obligations and disclosure requirement) Regulations, 2015, in respect of amount of loans and advances in the nature of loans outstanding from subsidiaries as at 31st March, 2016.

16. Disclosure under AS-15 Employee benefits

A. Defined contribution plan:

Contributions to defined contribution plan recognized as expenditure in profit and loss account are as under:

2015-16 (Rs.) 2014-15(Rs.)

Employers contribution to Provident fund 35.87 29.91

The provident fund contributions are remitted to Regional Provident fund Commissioner, Kadapa.

B. Defined benefit plan:

The company has employee group gratuity fund through a policy with LIC and contributes to the fund through annual renewal premium determined based on actuarial valuation using projected unit credit method as at 31-03-2016.The company has funded current service cost obligations and contributions made are recognized as expenses. The unfunded past service cost is provided as per actuarial valuation as on 31-03-2016.The disclosures in respected of funded and unfunded defined benefit obligations as required by AS 15 are as below.

VII. Major category of fair value of plan asset at close of the year

Fund with LIC under a policy

Percentage of total plan assets 100%

VIII. Principal actuarial assumptions:

Demographic assumptions

a) Retirement age of employees of the company are assumed at 58 years and average age is 40.31years.

b) The Mortality is as per the published rates of Life Insurance Corporation of India (1994-96).

Mortality table (ultimate), which is considered as a Standard Table.

c) Average past service : 10.54 years

d) Withdrawal rate : 1 to 3% depending upon age

Financial assumptions

a)Discount rate(p.a.) 8.00%

b)Expected rate of return(p.a.) 9.50%

c)Salary escalation rate(p.a.) 7.00%

17. Disclosure under AS-17 Segment reporting

The Company has disclosed Business segment as the primary segment with geographical segment being secondary segment based on geographical location of customers. Segment have been identified taking into account the nature of the products differing risks and returns, the organization structure and internal reporting system.

The Company operations predominantly relate to manufacture of chemicals. Other business segments reported are Energy generation.

Segment revenue, Segment Results, Segment Assets and Segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

The expenses, which are not directly attributed to the business segment, are shown as un-allocable corporate cost.

Assets and liabilities that cannot be allocated between the segments are shown as a part of un-allocable corporate assets and liabilities respectively.

18. Disclosure under AS-22 Taxes on income.

Deferred tax liability:

The company has accounted for Deferred tax in accordance with Accounting Standard 22 “Accounting for Taxes on Income” issued under section 133 of the Companies Act 2013 and has charged the net profit and loss account with the deferred tax liability of Rs.1,26,20,041/-relating to the year.

19. Confirmation of balances.

Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received.

Confirmation letters were received from some of the parties. No material discrepancies are observed.

20. Regrouped/ Rearranged/ Reclassified.

Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current year’s disclosures and figures.

21. Rounding off

Figures shown in the Financial Statements have been rounded off to the nearest Rupee.

---

Mar 31, 2015

1. Rights, preferences and restrictions

The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings.

2. The Company has no Subsidaries or Holding Company or associate companies holding shares in the company as on the date of Balance sheet

3. Of the above 1,47,16,689 issued shares, 24,86,028 Equity shares of Rs. 10/- each fully paid were issued for consideration for constructions with out payment received in cash as per terms of amalgamation.

4. Additional information on borrowings

1. Security

(a) The term loan and vehicle loans from banks are secured by exclusive charge on specific fixed assets.

(b)The loan repayable on demand from banks are cash credits, bills purchases, discountings, letter of credits limitsand bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans from banks arefurther secured by guarantee from Managing Director and a promoter in their individual capacities.

2. Defaults

There are no defaults/continuing defaults as on 31st Mar, 2015 in payment of interest and repayment of loans.

5. Contingent liabilities and Commitments

Contingent liabilities: (to the extent not provided for )

a) Claims against company not acknowledged as debts 3,57,04,682 10,20,24,054

b) Corporate Guarantees outstanding 97,40,000 2,30,20,816

c) Other money for which company is contingently liable - -

Commitments :

a) Estimated amount ofcontracts remainingtobeexecuted - 3,61,43,574

on capital account and not provided for

b) Uncalled liability on shares and other investments partly paid 500 500

c) Other commitments

1) Incometax appeal pending against ITOAO 3,04,714 3,04,714

2) Consumers cheques / bills discounted with Banks 14,39,81,914 16,88,48,875

3) Unexpired Bank Guarantees provided on behalfofthe Company. 3,38,11,382 1,06,01,216

4) Unexpired Letters of Credit established on behalfofthe Company. 27,29,42,422 27,14,50,919



d) Dividends remitted in Foreign Currency NIL

i) Total number of shares held by non-residents -

ii) Amount of dividend -

iii) No. of non resident share holders -

iv) Year to which the dividend is related -

6. Notes forming part of financial statements:

7. Corporate Information

Sree Rayalaseema Hi-Strength Hypo Limited is a public company domiciled in India and is Incorporated under the provisions of the companies Act, 1956. The company's principal business is manufacturing and sale of industrial chemicals and generation and distribution of power. The company caters to both domestic and Indian markets.

8. Basis of preparation

i) The accounts are maintained under Historical cost Convention and are prepared on accrual basis (except income and expenditure below Rs.5000/ per transaction and impairment or revaluation if any) as a 'going concern' by complying with generally accepted accounting principles and applicable Accounting Standards.

ii) The Accounting policies have been consistently followed and financial statements are prepared to comply in all material aspects in respect with Accounting Standards notified by the Companies Accounting Standards Rules, 2006 and relevant provisions of the Companies Act, 1956.

9. Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the end of reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from estimates.

10. Presentation and disclosure in Financial Statements:

For the year ended 31st Mar, 2015, the newly enacted Companies Act, 2013 is applicable w.e.f. 01st April, 2014 to the company for presentation and disclosure in financial statements. The company's financial statements are in accordance with Schedule-III of the companies act 2013 and rules made there under and reclassifies the previous years figure accordingly.

11. Micro, Small and Medium Enterprises

The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstanding as on 31-03-2015 and remaining unpaid to any Micro, Small and Medium Enterprises is Rs. 2,50,10,056/- and the said amounts are due for less than 45 days as on 31-03-2015. Hence, excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 1956.

12. Disclosure pursuant to clause 32 of the listing agreement (As applicable to the company)

1) Cash flow statement according to AS3, Cash flow and related party disclosure as per AS18 are furnished as part of these financial statements.

2) Loans and Advances

Loans and Advances to associates are Rs.0/- outstanding as on 31.03.2015.

13. Disclosure under AS-15 Employee benefits

A. Defined contribution plan:

Contributions to defined contribution plan recognized as expenditure in profit and loss account are as under:

2014-15 2013-14 (Rs.) (Rs.)

Employers contribution to Provident fund 29.91 29.47

The provident fund contributions are remitted to Regional Provident fund Commissioner, Kadapa.

B. Defined benefit plan:

The company has employees group gratuity fund through a policy with LIC and contributes to the fund through annual renewal premium determined based on actuarial valuation using projected unit credit method as at 31-03-2015.The company has funded current service cost obligations and contributions made are recognized as expenses. The unfunded past service cost is provided as per actuarial valuation as on 31-03-2015.The disclosures in respected of funded and unfunded defined benefit obligations as required by AS 15 are as below.

14. Disclosure under AS-17 Segment reporting

The Company has disclosed Business segment as the primary segment with geographical segment being secondary segment based on geographical location of customers. Segment have been identified taking into account the nature of the products differing risks and returns, The organization structure and internal reporting system.

The Company operations predominantly relate to manufacture of chemicals. Other business segments reported are Wind energy generation.

Segment revenue, Segment Results, Segment Assets and Segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

The expenses, which are not directly attributed to the business segment, are shown as un-allocable corporate cost.

15. Disclosure under AS-18, Related Party Disclosure.

The Company has the following related parties on account of shareholdings by Key Management Personnel and their relatives.

(B) Enterprises on which Key Management Person has Significant Influence

a) TGV Securities Pvt. Ltd No

b) Vibhu Cement Pvt. Ltd No

c) Sree Arya Lakshmi Steels Pvt.Ltd., No

(C) Key Management Personnel :

Name of the Related Party Nature of Relationship

a) Mr. T G Bharath Chairman & Managing Yes Director

(D) Relatives of Key Relationship to Key Management person Management person

a) Sri T G Venkatesh Father

b) Smt.T G Rajyalakshmi Mother

c) Smt.T G Shilpha Bharath Wife

(i) Assets taken on Lease: Factory Buildings, Office Buildings and Hydrogen Cylinders

(ii) Leased out Assets: Chlorine Cylinders.

(iii) Future lease rentals are determined on the basis of agreed terms.

(iv) At the expiry of the lease term, the Company has an option either to return the asset or extended the term by giving notice in writing.

16. Disclosure under AS-22 Taxes on income.

Deferred tax liability:

The company has accounted for Deferred tax in accordance with Accounting Standard 22 " Accounting for Taxes on Income" issued by the Institute of Chartered Accountant of India and has charged the net profit and loss account with the deferred tax liability relating to the year net of Rs.164,21,693/-

17. Confirmation of balances.

Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received.

Confirmation letters were received from some of the parties. No material discrepancies are observed.

18. Regrouped/ Rearranged/ Reclassified.

Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current year's disclosures and figures.

19. Rounding off.

Figures shown in the Financial Statements have been rounded off to the nearest rupee.

---

Mar 31, 2014

1.1 Rights, preferences and restrictions

The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings

1.2 The Company has no Subsidiries or Holding Company as on date of Balance sheet

1.3 During the year 4,92,506 Equity shares of Rs. 10/- each were issued pursuant to convertion of warrants under preferential allotment for cash at a premium of Rs. 44.62 per share as fully paid up.

1.4 Of the above 14716689 issued shares, 24,86,028 Equity share of Rs. 10/- each fully paid were issued for consideration with out payment received in cash as per terms of amalgamation

1.5 Additional information on borrowings 1. Security

(a) The term loan from banks are secured by exclusive charge on specified fixed assets.

(b) The loan repayable on demand from banks are cash credits, bills purchases, bills discounting, letter of credits limits and bank guarantees which are secured by hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.

(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.

(d) The working capital and Term loans from banks are further secured by guarantee from Managing Director and a promoter in their individual capacities

As at As at 31st Mar, 2014 31st Mar, 2013 2 Contingent liabilities and Commitments

Contingent liabilities: (to the extent not provided for )

a) Claims against company not acknowledged as debts 102024054 128903475

b) Guarantees outstanding 23020816 37075000

c) Other money for which company is contingently liable Commitments :

1) Estimated amount of

contracts remaining to be executed on capital account and not provided for 36143574 44177391

2) Uncalled liability on shares & other investments partly paid 500 500

3) Other commitments

i) Income tax appeal pending against ITO AO 304714 304714

ii) Customers cheques / bills discounted with Banks 168848875 158034276

iii) Unexpired Bank Guarantees provided by the Company 10601216 12102768

iv) Unexpired Letters of Credit established by the Company 271450919 217701067

d) Dividends remitted in Foreign Currency during the year i) Total number of shares held by non-residents

ii) Amount of dividend

Nil iii) No. of non resident share holders

iv) Year to which the dividend is related

---

Mar 31, 2013

1.1) Basis of preparation

i) The accounts are maintained under Historical cost Convention and are prepared on accrual basis (except income and expenditure below Rs.5000/per transactions and impairment or revaluation if any) as a ''going concern'' by complying with generally accepted accounting principles and applicable Accounting Standards.

ii) The Accounting policies have been consistently followed and financial statements are prepared to comply in all material aspects in respect with Accounting Standards notified by the Companies Accounting Standards Rules, 2006 and relevant provisions of the Companies Act, 1956.

1.2) Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the end of reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from estimates.

1.3 Micro, Small and Medium Enterprises

The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstanding as on 31-03-2013 and remaining unpaid to any Micro, Small and Medium Enterprises is Rs.3,20,97,715/- and the said amounts are due for less than 45 days as on 31-03-2013. Hence,excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 1956.

1.4 Disclosure pursuant to clause 32 of the listing agreement (As applicable to the company)

1) Cash flow statement according to Accounting Standard - 3, Cash flow and related party disclosure as per Accounting Standard - 18 are furnished as part of this financial statements.

2) Investments in own shares of the company

The company had acquired its own equity shares as per scheme of arrangement from transferor company. The beneficiary interest is held through its directors. The shares held as on 31.03.2013 are 1025289 equity shares.

3) Loans and Advances

Loans and Advances to associates is Rs. 25,29,380/- outstanding as on 31.03.2013.

1.5 Disclosure under AS-16 Borrowing costs

During the financial year the company has two qualifying assets i.e. expansion of calcium hypo chlorite project and captive thermal project at the end of the year and these are under implementation. The Borrowing cost that are directly relate to these qualifying assets are determined, identified and capitalised during the financial year amounted to Rs 4,88,93,646/- (previous year : Rs.1,65,57,218/- )

1.6 Disclosure under AS-17, Segment Reporting

The Company has disclosed Business segment as the primary segment with geographical segment being secondary segment based on geographical location of customers. Segment have been identified taking into account the nature of the products differing risks and returns, The organization structure and internal reporting system.

The Company operations predominantly relate to manufacture of chemicals. Other business segments reported are Wind energy generation.

Segment revenue, Segment Results, Segment Assets and Segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

The expenses, which are not directly attributed to the business segment, are shown as un-allocable corporate cost.

Assets and liabilities that cannot be allocated between the segments are shown as a part of un-allocable corporate assets and liabilities respectively.

1.7 Confirmation of balances.

Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received.

Confirmation letters were received from some of the parties. No material discrepancies are observed.

1.8 Regrouped/ Rearranged/ Reclassified.

Previous year figures have been regrouped/rearranged/reclassified wherever necessary to make them comparable with current year''s disclosures and figures.

1.9 Rounding off the figures

Figures shown in the accounts have been rounded off to the nearest Rupee.

---

Mar 31, 2010

1) The Sales tax liability is being accumulated in view of sanction of deferment by the Government of Andhra Pradesh as per State Incentive Scheme and is included under unsecured loans.

2) Confirmation of balances from certain parties for amounts due to them or due from them are yet to be received. Confirmation letters were received from some of the parties. No material discrepancies are observed.

3) The Company identified Micro,Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro,Small and Medium Enterprises. The principal amounts outstanding as on 31-03-2010 and remaining unpaid to any Micro,Small and Medium Enterprises is Rs.1,30,15,961/-and the said amounts are due for less than 45 days as on 31-03-2010.Hence,excepting above, there is no

4. Related parties Disclosures :

The Company has the following related parties on account of shareholdings by Key Management Personnel and their relatives.

(A) Particulars of Associate Companies

Name of the Related Party

a) Sree Rayalaseema Alkalies and Allied Chemicals Ltd.

b) Sree Rayalaseema Dutch kassenbouw Pvt. Ltd.

c) TGV Projects & Investments Pvt. Ltd.

d) Brilliant Bio Pharma Ltd.

e) Sree Maruthi Marine Industries Ltd.

f) Gowri Gopal Hospitals Pvt. Ltd

g) Sree Rayalaseema Galaxy Projects Pvt. Ltd. h) SRHHL Industries Ltd.

i) Sree Maruthi Agro Tech Ltd.

j) T G V Pharma Pvt. Ltd.

k) Vibhu Cements Pvt. Ltd.

l) Shree Arya Lakshmi Steels Pvt. Ltd.

5. Segment Reporting

The Company has disclosed Business segment as the primary segment with geogrophical segment being secondary segment based on geographical location of customers. Segments have been identified taking into account the nature of the products differing risks and returns, the organisation structure and internal reporting system.

The Companys operations predominantly relate to manufacture of chemicals.

Other business segments reported are wind energy generation.

Segment Revenue, Segment Results, Segment Assets and Segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

The expenses, which are not directly attributed to the business segment, are shown as unallocable corporate cost.

Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable corporate assets and liabilities respectively.

6).Disclosure pursuant to Accounting Standard 15 (Revised 2005) Employee benefits:

A. Defined contribution plan:

Contribution to defined contribution plan recognized as expenditure in profit and loss account are as under:

2009-10 2008-09

(Rs. in lakhs) (Rs. in lakhs)

Employers contribution to

Provident fund 27.57 26.64

The provident fund contributions are remitted to Regional provident fund Commissioner,Kadapa.

B. Defined benefit plan:

The company has employees Group Gratuity Fund through a policy with LIC and contributes to the fund through annual renewal premium determined based on actuarial valuation using projected unit credit method as at 30-09-2009.The company has funded current service cost obligations and contributions made are recognized as expenses. The unfunded past service cost is provided as per actuarial valuation as on 30-09-2009.The disclosures in respected of funded and unfunded defined benefit obligations as required by Accounting Standard 15 are given below.