I) Provisions, Contingent Liabilities and Contingent Assets:

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

J) Contingent Liabilities:

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

K) Contingent Assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are
recognised in the period in which the change occurs.

L) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the
fair value of the consideration received or receivable, taking into account contractually defined terms of payment,
excluding taxes or duties collected on behalf of the government.

Revenue is recognised only if the following conditions are satisfied:

- The Company has transferred risks and rewards incidental to ownership to the customer;

- The Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;

- It is probable that the economic benefit associated with the transaction will flow to the Company; and

i. It can be reliably measured and it is reasonable to expect ultimate collection.

ii. Dividends are recognised when the right to receive them is established.

iii. Interest and Other Income are accounted on accrual basis.

M) Employee Benefits:

i. Short Term employee benefits are recognised as expenses at the undiscounted amount in the profit and loss account
of the year in which the related service is rendered.

ii. Post employment employee benefits are recognised as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognised at the present value of the amounts payable.

N) Impairment of Assets:

As at the end of each accounting year, the company reviews the carrying amounts of its non-financial assets e.g.
PPE, investment property, intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If such indication exists, the said assets are tested for impairment so as to determine
the impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable
amount is determined:

(i) in the case of an individual asset, at the higher of the net selling price and the value in use; and

(ii) in the case of a cash generating unit (a group of assets that generates identified, independent cash flows), at
the higher of the cash generating unit's net selling price and the value in use.

(The amount of value in use is determined as the present value of estimated future cash flows from the
continuing use of an asset and from its disposal at the end of its useful life. For this purpose, the discount rate
(pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for
risks specified to the estimated cash flows of the asset).

For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that
generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount,

such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying

amount of the asset (or cash generating unit) is reduced to its recoverable amount.

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

O) Borrowing Cost:

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect
of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent
they are regarded as an adjustment to interest costs.

Borrowing costs net of any investment income from the temporary investment of related borrowings, that are
attributable to the acquisition, construction or production of a qualifying asset are capitalized/inventoried as part of
cost of such asset till such time the asset is ready for its intended use or sale.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use
or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

P) Foreign Currency Transaction:

i) Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction.
Monetary foreign currency assets and liabilities outstanding at the close of the financial year are revalued at the
exchange rates prevailing on the balance sheet date. Exchange differences arising on account of fluctuation in
the rate of exchange is recognised in the statement of profit and loss.

ii) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or
loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value
gain or loss is recognised in OCI or statement of profit and loss are also recognised in OCI or statement of
profit and loss, respectively).

Q) Leases

Where the Company is a lessee:

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item,
are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit
and loss on a straight-line basis over the lease term.

Note 21: The Company has no balance payable to Micro and Small Enterprises as at 31^st March 2025. This information is
required to be disclose under Micro, Small and Medium Enterprises Act, 2006 (MSMED Act) and has been determined to
the extent such parties have been identified on the basis of information available with the Company.

Note 22 : Contingent Liabilities :

1. Labour Matter:

Two Complaints were filed by the District Labour Officer against the Company and its then Directors (2007) for
alleged violation of Section 13 of Payment of Wages Act read with rule 4, 3, 18, 28 and 24 of the Maharashtra
Payment of Wages Rules 1963 and the Bonus Act, as follows

i) It has been alleged that the company failed to show the records to the Labour Officer upon his visit to the
factory on February 9, 2007 and the Labour Officer noted that the Company has failed to pay four months'
salary (October 2006 to January 2007), till that date of inspection (due date is on or before 7 days from the date
of closing the calander month for the respective month) to the employees

The non-payment of salary during the above period was due to sickness of the company.

ii) also alleged on February 9, 2007 against the Company and its then Directors for failure to pay Bonus to its
employees for the F.Y 2005 - 2006, before the due date (Due date is before 15th Nov of every year for the
previous F.Y.).

Company Advocate for both the complaints argued in the lower Court on the maintainability of the complaints
in view of the relief provided by the BIFR. Court rejected Company's say in both the cases. The Company filed
two revision petitions against the above trial Court's order dated 14th March 2014 and argued by the company
showing exemption of the BIFR Order against the maintainability of the case. The revision petitions were also
dismissed on March 30, 2021. The matter now will continue before the Judicial Magistrate FC, Khed once the
orders of dismissing the revision petitions are received by the Lower Court.

The listing and next date in the matter awaited. Company has paid all dues to its employees subsequently
during 2008 itself, once the factory restarted after lockout. The liabilities and penalties, if any, cannot be
quantified.

2. Income Tax: Assessment Year 2015-16 (Financial year 2014-15)-Rs.171.58 Lakhs

• The case was re-opened for A.Y. 2015-16 and arbitrary order was passed by the ITO NFAC, Delhi (ITO) without
giving opportunity been heard.

• The Assessing officer failed to give reasons recorded for issue of notice, not giving copy of sanction received
for issue of notice u/s 148 of IT Act and not giving show cause notice and draft assessment order as per the
provisions of Income Tax Law.

• This resulted into addition of Rs. 214.29 Lakhs to the total income and a tax liability demand of Rs. 171.58
Lakhs

• The ITO also calculated the total income erroneously without giving the benefit of set-off of brought forward
losses.

Against the above demand, the Company has filed rectification application on 27/04/2022 and the Company
has filed appeal to the Commissioner of Income-Tax (Appeals) on 29/04/2022. Vide Order dated 20/02/2025 of
the Commissioner of Income-Tax (Appeals), has partly allowed the Appeal for statistical purposes, however,
the main ground of the Appeal of reopening the assessment has not been considered by the CIT(A). Against
the Order of the CIT(A), the Company has filed Appeal before ITAT, Mumbai on 17.04.2025 which is pending.

The Company has contested the aforesaid appropriation, based on the concession given by Board for Industrial and
Financial Reconstruction (BIFR) vide its Order dated 26^th September, 2007, and a Writ has been filed at Hon'ble High
Court, Bombay. The Company has been legally advised that the aforesaid appropriation by MSEDCL is not tenable and
the Company is entitled for the refund. However, due to uncertainty of the above amount receivable, the same has been
written off during the year 2016-17 in the books of accounts.

The Company has deposited additional amount of ' 34,00,000/- during the year 2018-19 without prejudice to the right of
contention pursuant to the interim Order of Bombay High Court in order to transfer the electric connection/meter in the
name of Gharda Chemicals Ltd. The Company is hopeful of recovery of the said amount.

Note 24: The values of Current Assets and Loans and Advances are stated at realisable in ordinary course of the
business in the Balance Sheet, as per the opinion of the Management of the Company.

The management assessed that the fair value of cash and cash equivalent, trade receivables, security deposits,
trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to
the short-term maturities of these instruments.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in
determining fair value, the company has classified its financial instruments into three levels prescribed under the
accounting standard. An explanation of each level follows underneath the table:

iii. Fair value measurement

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 which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are
valued using the closing NAV.

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

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included
in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

v. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, this team reports directly to the chief financial officer (CFO) and the audit
committee. Discussions of valuation processes and results are held between the CFO, AC and the valuation team
regularly in line with the company's reporting periods.

Note 36: Financial Risk Management

The company's activity expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on
the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts,
foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used
exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk
which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial
statements.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises
from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial
institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into
account factors such as credit track record in the market and past dealings with the company for extension
of credit to Customer. Company monitors the payment track record of the customers, restrict credit limited in
SAP, credit rating etc. Concentrations of credit risk are limited as a result of the company's large and diverse
customer base.

ii. Provision for expected credit losses - Trade Receivables

The company follows 'simplified approach' for recognition of loss allowance on Trade receivables

As a practical expedient, 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 analyzed.

Exposure - Trade Receivables: Rs. 29.35 lakhs (PY 189.01 lakhs). The Company does not expect credit
loss on Trade Receivable.

iii. Provision for expected credit losses - Other financial assets

The carrying amount of cash and cash equivalents, loans, deposits with banks and financial institutions and
other financial assets represents the maximum credit exposure as detailed above. The maximum exposure to
credit risk is Rs. 759.32 lakhs (PY ' 899.87 lakhs). The Company does not expect credit loss on other financial
assets.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial
liabilities that are settled by delivering cash or other financial assets. The group monitors rolling forecasts of its liquidity
requirements to ensure it has sufficient cash to meet operational needs. The table below provides undiscounted cash
flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the
contractual maturity date for which there is no Liquidity risk as sufficient current assets are available to discharge the
same.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change
in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk
such as commodity price risk.

(i) Foreign currency risk

Foreign currency risk arises commercial transactions that recognised assets and liabilities denominated in a
currency that is not Company's functional currency (INR).

- Foreign currency risk exposure: Trade payable- import Rs.7.69 lakhs (PY NIL) which is not subject
to any risk.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of change in market interest rates. The management is responsible for the monitoring of the Company' interest
rate position.

- Interest rate risk exposure: NIL

(iii) Inventory price risk

The Inventory of the Company consist of Stock in trade of Rs.32.74 lakhs (PY Rs. NIL) which is not subject to
any inventory price risk.

Note 37: For the purpose of the company's capital management, capital includes issued equity capital, convertible
preference shares, share premium and all other equity reserves attributable to the equity holders of the parent. The
primary objective of the Company's capital management is to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a
gearing ratio, which is net debt divided by total capital plus net debt. The company's policy is to keep the gearing ratio
restricted to 40%. The company includes within debt, interest bearing loans and borrowings, trade and other payables, less
cash and cash equivalents, excluding discontinued operations.

In order to achieve the objective of maximize shareholders value, the Company's capital management, amongst other
things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital
structure requirements. The above capital gearing ratio has achieved the desired objectives.

Note 38: Ind AS optional exemptions

i. 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 and intangible assets covered by Ind AS 38 - Intangible Assets 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. Accordingly, the company has elected to measure all of its property, plant and equipment and
intangible assets at their previous GAAP carrying value.

ii. Estimates

The estimates at April 1,2016 and at March 31,2017 are consistent with those made for the same dates in accordance
with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from Impairment of
financial assets based on expected credit loss model.

The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions at April
1, 2016, the date of transition to Ind AS and as of March 31, 2025.

iii. Classification and measurement of financial assets

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 Accordingly, the classification and measurement of
financial assets have been done on the basis of the facts and circumstances that existed at the date of transition and
end of comparative year.

Note 40: The figures of the previous year have been regrouped and rearranged wherever necessary so as to make them
comparable with those of the current financial year.

As per our report of even date attached

For Verma Mehta & Associates For and on behalf of the Board of Directors

Chartered Accountants

Rohit Rahalkar Kostuv Kejriwal Purshottam Kejriwal

Partner Director Director

M.N.139232 DIN: 00285687 DIN:02476745

FRN: 112118W

UDIN : 25139232BMMIML2576

Divya Desai R. B. Gujrathi

Company Secretary Chief Executive &

ACS: 61179 Financial Officer

Place : Mumbai Place : Mumbai

Date : 24th May,2025 Date : 24th May,2025