n) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle
the present obligation at the end of the reporting
period, taking into account the risks and uncertainties
surrounding the obligation. In the event the time value
of money is material provision is carried at the present
value of the cash flows required to settle the obligation.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made. When
there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.

Contingent assets are possible assets that arises from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control

of the entity. A contingent asset is disclosed, where an
inflow of economic benefits is probable.

o) Government Grants

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

Government grants are recognised in the Statement of
Profit and 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 balance sheet and transferred
to the Statement of Profit and Loss on a systematic and
rational basis over the useful lives of the related assets.

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.

In the unlikely event that a grant previously recognised
is ultimately not received, it is treated as a change in
estimate and the amount cumulatively recognised is
expensed in the Statement of Profit and Loss.

p) Financial instruments, Financial assets, Financial
liabilities and Equity instruments:

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the relevant instrument.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities measured at fair value through Profit
and Loss) are added to or deducted from the fair value on
initial recognition of financial assets or financial liabilities.
Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value
through Profit and Loss are recognised immediately
in the Statement of Profit and Loss. However, trade
receivables that do not contain a significant financing
component are measured at transaction price.

Classification and subsequent measurement
Financial Assets

All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales
of financial assets that require delivery of assets within

a time frame established by regulation or convention
in the market place. All recognised financial assets are
subsequently measured at either amortised cost or fair
value depending on their respective classification.

On initial recognition, a financial asset is classified as
measured at -

• Amortised cost; or

• Fair Value through Other Comprehensive Income
(FVTOCI) ; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets.

All financial asset not classified as measured at amortised
cost or FVTOCI are measured at FVTPL. This includes all
derivative financial assets.

Financial assets at amortised cost are subsequently
measured at amortised cost using effective interest
method. The amortised cost is reduced by impairment
losses. Interest income, foreign exchange gains and
losses and impairment are recognised in the Statement
of Profit and Loss. Any gain and loss on derecognition is
recognised in the Statement of Profit and Loss.

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition.

For equity investments, the Company makes an
election on an instrument-by-instrument basis to
designate equity investments as measured at FVTOCI.
These elected investments are measured at fair value
with gains and losses arising from changes in fair
value recognised in Other Comprehensive Income and
accumulated in the reserves. The cumulative gain or
loss is not reclassified to profit or loss on disposal of the
investments. These investments in equity are not held
for trading. Instead, they are held for medium or long¬
term strategic purposes. Upon the application of Ind
AS 109, the Company has chosen to designate these
investments as at FVTOCI as the Company believes
that this provides a more meaningful presentation
for medium or long-term strategic investments, than
reflecting changes in fair value immediately in the

Statement of Profit and Loss. Dividend income received
on such equity investments are recognised in the
Statement of Profit and Loss.

Equity investments that are not designated as measured
at FVTOCI are designated as measured at FVTPL and
subsequent changes in fair value are recognised in the
Statement of Profit and Loss.

Financial assets at FVTPL are subsequently measured
at fair value. Net gains and losses, including any interest
or dividend income, are recognised in the Statement of
Profit and Loss.

Financial liabilities and equity instruments

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the
Company is recognised at the proceeds received, net of
directly attributable transaction costs.

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as FVTPL if it is classified as held-for-trading or it is a
derivative or it is designated as such on initial recognition.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses
are recognised in the Statement of Profit and Loss. Any
gain or loss on derecognition is also recognised in the
Statement of Profit and Loss.

Compound instruments

An issued financial instrument that comprises of both
the liability and equity components are accounted as
compound financial instruments. The fair value of the
liability component is separated from the compound
instrument and the residual value is recognised as
equity component of financial instrument. The liability
component is subsequently measured at amortised
cost, whereas the equity component is not remeasured
after initial recognition. The transaction costs related to
compound instruments are allocated to the liability and
equity components in the proportion to the allocation
of gross proceeds. Transaction costs related to equity
component is recognised directly in equity and the cost
related to liability component is included in the carrying
amount of the liability component and amortised using
effective interest method.

Derecognition of financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of
the risks and rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred assets
are not derecognised.

Offsetting

Financial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the asset
and settle the liability simultaneously.

Financial guarantee contracts and loan commitments

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

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

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

• The amount initially recognised less, when
appropriate, the cumulative amount of income
recognised in accordance with the principles of Ind
AS 115.

Impairment of financial assets

The Company applies the expected credit loss (ECL)
model for recognising impairment loss on financial
assets. With respect to trade receivables, the Company
measures the loss allowance at an amount equal to
lifetime expected credit losses. For all other financial
instruments, the Company recognises lifetime ECL when
there has been a significant increase in credit risk since
initial recognition. If, on the other hand, the credit risk on
the financial instrument has not increased significantly

since initial recognition, the Company measures the
loss allowance for that financial instrument at an amount
equal to 12-month ECL. The assessment of whether
lifetime ECL should be recognised is based on significant
increases in the likelihood or risk of a default occurring
since initial recognition. 12-month ECL represents the
portion of lifetime ECL that is expected to result from
default events on a financial instrument that are possible
within 12 months after the reporting date.

Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case
when the Company determines that the debtor does not
have assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written
off could still be subject to enforcement activities under
the Company's recovery procedures, taking into account
legal advice where appropriate. Any recoveries made
are recognised in the Statement of Profit and Loss.

q) Dividend Distribution

Final dividend on shares are recorded as a liability on
the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors.

r) Derivative contracts:

The Company uses derivative financial instruments such
as foreign exchange forward contracts and interest rate
swaps to hedge its foreign currency risks which are
not designated as hedges. All derivative contracts are
marked-to-market and losses/gains are recognised in
the Statement of Profit and Loss. Derivatives are carried
as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

s) Use of Estimates and judgement:

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

The estimates and underlying assumptions are reviewed
at the end of each reporting period. Revisions to
accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only
that period, or in the period of the revision and future

periods if the revision affects both current and future
periods.

Critical accounting judgements and key source of
estimation uncertainty

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year.

Useful lives of property, plant and equipment and
intangible assets

As described in the significant accounting policies, the
Company reviews the estimated useful lives of property,
plant and equipment and intangible assets at the end of
each reporting period. Useful lives of intangible assets
is determined on the basis of estimated benefits to
be derived from use of such intangible assets. These
reassessments may result in change in the depreciation
/amortisation expense in future periods.

Fair value measurements and valuation processes

Some of the Company's assets and liabilities are
measured at fair value at each balance sheet date or at
the time they are assessed for impairment. In estimating
the fair value of an asset or a liability, the Company uses
market-observable data to the extent it is available.
Where Level 1 inputs are not available, the Company
engages third party valuers, where required, to perform
the valuation. Information about the valuation techniques
and inputs used in determining the fair value of various
assets and liabilities require estimates to be made by
the management and are disclosed in the notes to the
financial statements.

Actuarial Valuation

The determination of Company's liability towards
defined benefit obligation to employees is made through
independent actuarial valuation including determination
of amounts to be recognised in the Statement of Profit
and Loss and in Other Comprehensive Income. Such
valuation depend upon assumptions determined after
taking into account discount rate, salary growth rate,
expected rate of return, mortality and attrition rate.
Information about such valuation is provided in notes to
the financial statements.

t) Fair value measurement:

The Company measures certain financial instruments at
fair value at each reporting date.

Certain accounting policies and disclosures require the
measurement of fair values, for both financial and non¬
financial assets and liabilities.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in
the principal or, in its absence, the most advantageous
market to which the Company has access at that
date. The fair value of a liability also reflects its non¬
performance risk.

The best estimate of the fair value of a financial
instrument on initial recognition is normally the
transaction price i.e. the fair value of the consideration
given or received. If the Company determines that
the fair value on initial recognition differs from the
transaction price and the fair value is evidenced neither
by a quoted price in an active market for an identical
asset or liability nor based on a valuation technique
that uses only data from observable markets, then the
financial instrument is initially measured at fair value,
adjusted to defer the difference between the fair
value on initial recognition and the transaction price.
Subsequently that difference is recognised in the
Statement of Profit and Loss on an appropriate basis
over the life of the instrument but no later than when
the valuation is wholly supported by observable market
data or the transaction is closed out.

While measuring the fair value of an asset or liability,
the Company uses observable market data as far as
possible. Fair values are categorised into different levels
in a fair value hierarchy based on the inputs used in the
valuation technique as follows:

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

• Level 2: inputs other than quoted prices included
in Level 1 that are observable for the assets or
liabilities, either directly (i.e. as prices) or indirectly
(i.e. derived from prices)

• Level 3: inputs for the assets or liabilities that are not
based on observable market data (unobservable
inputs)

Earnings per share

• Basic earnings per share are calculated by dividing
the 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
share, the 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 effect of all dilutive potential
equity shares.

• Diluted earnings per share adjust the figures used
in the determination of basic earnings per share to
take into account: The after income tax effect of
interest and other financing costs associated with
dilutive potential equity shares, and the weighted
average number of additional equity shares that
would have been outstanding assuming the
conversion of all dilutive potential equity shares.
The dilutive effect of outstanding options is
reflected in the computation of diluted earnings per
share.

v) Cash and cash equivalents (for purposes of Cash Flow
Statement)

• Cash and cash equivalents in the Balance sheet
majorly comprise cash in current accounts, cash
on hand and short-term deposits with an original
maturity of three months or less, which are subject
to an insignificant risk of changes in value. For the
purpose of the Statement of Cash Flows, cash and
cash equivalents consist of cash in current accounts,
cash on hand and short-term deposits, as defined
above, net of outstanding bank overdrafts as they
are considered an integral part of the Company's
cash management.

2.3 The amount of expenditure (other than borrowing cost) recognised in the carrying amount of property, plant and equipment
in the course of construction is ' 5.47 Crores (2024-25 : ' 1.10 Crores) out of which ' 0.81 Crores (2024-25 : ' 0.07 Crores)
is incurred in current year.

2.4 Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at
Taloja and specified properties located at Tarapur and movable fixed assets at these locations.

2.5 The Impairment expenses if any, have been included under ‘Depreciation, amortisation and impairment expenses' and
Impairment reversals if any, have been included under ‘Other Income' in the Statement of Profit and Loss.

2.6 Plant and Equipment include ' 5.56 Crores (2024-25'4.79 Crores) being cost of assets incurred by the Company, the
ownership of which vests with government company and ' 0.52 Crores (2024-25'0.04 Crores) being accumulated
depreciation thereon.

2.7 Refer Note 41(B) for commitments
*Figures less than ' 50,000.

Notes:

3.1 The amortisation expenses of Right of use Asset have been included under ‘Depreciation, amortisation and impairment
expenses' in the Statement of Profit and Loss.

3.2 Addition during the year include modification amounting to ' Nil Crores (2024-25: ' 0.23 Crores)and Deductions/
Adjustments during the year include modification amounting to ' 1.69 Crores (2024-25: ' Nil Crores)

3.3 The Company had received an Order dated 5^th October 2024 from Gujarat Industrial Development Corporation (GIDC),
initiating proceedings to vacate the land for non-utilisation within the required period (Carrying value as of 31^st March
2026 is ' 72.88 Crores and 31^st March 2025 is ' 73.74 Crores). The Company was granted Interim Stay, and the matter is
currently subjudice. The Company is legally advised that it has a strong case. Based on management's assessment and
pending legal proceedings, no provision has been considered necessary at this stage.

B. Rights, Preferences and Restrictions attached to Equity Shares:

The Company has only one class of equity shares having a par value of ' 10 per share. The Equity shares of the company rank
pari-passu in all respects including voting rights and entitlement to dividend.

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.

#Mrs. Sandhya Patil expired on 25^th April, 2019. The shares in her individual capacity have been transmitted to her legal heirs
viz. Mr. Siddharth Sudhir Patil and Mr. Yash Sudhir Patil and shown under the category of promoter. The shares registered in her
name as a partner of Galaxy Chemicals are in the process of transmission to legal heirs.

^AEquity Shares held by Anuradha Dayanand Prabhu were transmitted to her legal heir Ms. Pratima Dayanand Prabhu during
FY24-25.

As per the records of the Company, including its register of shareholders/members and other declarations received from the
shareholders regarding the beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.

Description of the nature and purpose of reserves in statement of changes in equity

Securities Premium: This reserve represents the premium on issue of equity shares received and can be utilized in accordance
with the provisions of the Companies Act, 2013.

General Reserve: This reserve is created by an appropriation from one component of equity (generally retained earnings) to
another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the
provisions of the Companies Act, 2013.

Retained Earnings: This reserve represents the cumulative profits of the Company and effects of remeasurement of defined
benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Share Based Payment Reserve: This reserve represents equity settled performance share options granted to the Company's
employees in pursuance of the Performance Stock Option Plan.

Notes :

23.1 The information regarding Micro and Small Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company. No interest in terms of Section 16 of Micro, Small and
Medium Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining
unpaid as at 31^st March 2026.

23.2 Trade payable - Other than Micro and Small enterprises includes payable to subsidiary company ' 3.61 Crores
(2024-25: ' 1.50 Crores). (Refer Note 43)

23.3 Trade payables Ageing Schedule:

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

Remaining performance obligation estimates are subject to change and are affected by several factors, including
terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialised
and adjustments for currency fluctuations.

The aggregate value of performance obligations that are completely or partially unsatisfied as at 31^st March, 2026, other
than those meeting the exclusion criteria mentioned above, is ' 48.76 Crores, the company expects to recognize the
same in the form of revenue within the next one year.

37 There are no capital losses for which deferred tax asset is recognised in the balance sheet.

38 Segment Information

The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of
Directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and assessing the
performance of operating segments. Accordingly, the reportable segment is only one segment i.e. home and personal care
ingredients.

Revenue from Type of Product and Services

There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external
customers shown under geographical information is representative of revenue based on product and services.

Information about major customers

During the year ended 31^st March, 2026 and 31^st March, 2025 respectively, Revenue from transaction with one external customer
amounted to 10% or more of the companies revenue from external customers.

39 Details of Research and Development

Research and Development expenses for the year amount to ' 16.27 Crores (2024-25 : ' 15.74 Crores) debited to the Statement
of Profit and Loss.

40 Details of CSR Expenditure

As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financials years on corporate social responsibility (CSR) activities. The area
for CSR activities are promoting healthcare including preventive healthcare; Promoting education, including special education and
employment enhancing vocational skills among children, women, elderly, and the differently abled and livelihood enhancement
projects; Rural development projects; Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
agroforestry, conservation of natural resources and maintaining quality of soil, air and water; Animal welfare; Empowering women.
A CSR committee has been formed by the company as per the Act.

Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various
forums/authorities.

(B) Commitments

Estimated amount of contracts remaining to be executed of Property, Plant and Equipment (net of advances) and not provided
for ' 49.45 Crores ( 2024-2025 : ' 61.90 Crores).

Estimated amount of contracts remaining to be executed of Other Intangible assets (net of advances) and not provided for
' -* Crores ( 2024-2025 : ' 0.16 Crores).

*Figures less than ' 50,000.

42 Disclosure Pursuant to Section 186 (4) of the Companies Act, 2013

(a) Investments made

The same are classified under respective heads. Refer Note 6 and Note 11.

(b) Guarantees/Securities given

The same are classified under respective heads for purposes of guarantees given for loan availments from banks by
subsidiaries/associate companies. Refer Note 43.

(c ) Loans given

There are no inter corporate loans given.

43.1 As the liabilities for defined benefit plans are provided on the basis of report of actuary for the Company as a whole, the
amounts pertaining to Key Management Personnel are not included.

43.2 Includes commission on the basis of payments made during the year.

*Figures less than ' 50,000.

44 Employee Benefits

a. Defined contribution plan

The Company makes contributions towards Provident Fund, Employee's State Insurance Corporation (ESIC) for qualifying
employees. The Company has recognised ' 8.42 Crores (2024-25 - ' 8.04 Crores) for the year being Company's
contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of
Profit and Loss.

b. Defined benefit plan
Gratuity plan

Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of
the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee
who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year
of service. The Company makes an annual contribution to the group gratuity scheme administered by the insurance
companies.

Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Interest risk

A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan's assets.
Salary risk

The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan's liability.

Investment risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.

c. Exceptional Item of Gratuity and Leave Encashment

The Government of India, vide Notification dated November 21, 2025, has notified the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 (collectively referred to as “the Labour Codes”), which consolidate and replace existing multiple labour
legislations. In accordance with Ind AS 19 - Employee benefits, changes to employee benefit plans resulting from the
new labour codes are treated as plan amendments, requiring immediate recognition of past service cost as expense
in the statement of profit and loss. This approach is consistent with the guidance issued by the Institute of Chartered
Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company
has presented such incremental impact as “Impact of new Labour Codes” under “Exceptional items” towards increase in
Gratuity by ' 9.66 Crores and Leave Encashment by ' 2.22 Crores for the year ended 31^st March 2026. The Company
continues to monitor developments on the rules to be notified by regulatory authorities, including clarifications / additional
guidance from authorities and will continue to assess the accounting implications basis such developments / guidance.

d. Performance Stock Option Plan 2025 (PSOP 2025)

Pursuant to the applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI
LODR'), the Nomination and Remuneration Committee of the Company, at its meeting held on September 05, 2025 has
inter alia approved grant of Stock Options to the eligible Employee(s) of Galaxy Surfactants Limited (“the Company”) under
the GALAXY SURFACTANTS LIMITED - PERFORMANCE STOCK OPTION PLAN 2025 or PSOP 2025.

Vesting is subject to the achievement of performance criteria as decided by the Nomination and Remuneration Committee
and continuation of employment and subject to other conditions specified in the grant letter and the Galaxy PSOP 2025
Scheme.

Under the plan, the Company has granted 156,323 number of options to eligible employees based on grant date i.e. 8^th
December, 2025. The options will vest after Annual General Meeeting of Financial year 2027-28.

Each stock option carries the right to apply for and be allotted 1 (one) equity share of face value of Rs. 10/- each of the
Company

Options which have got vested will need to be exercised within 4 years from the date of such vesting. Any vested options
not so exercised within the prescribed period shall lapse.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns
to shareholders. The capital structure of the Company is based on management's judgement of its strategic and day-
to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence.
The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The
Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an
approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The
policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external
and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are
determined to bring risk exposure levels in line with risk appetite. The Company's risk management policies and systems are
reviewed regularly to reflect changes in market conditions and our business activities. The Company's business activities are
exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest rate risk and Commodity price
risk.

A) Market Risk

The Company's size and operations result in it being exposed to the market risks that arise from its use of financial instruments
namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company's income and expenses, or
the value of its financial instruments. The Company's exposure to and management of these risks are explained below.

a) Interest Rate Risk

Interest rate risk results from changes in prevailing market interest rates, which can cause changes in the interest payments
of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry
interest at variable rates. The management is responsible for the monitoring of the Company's interest rate position. Various
variables are considered by the management in structuring the Company's borrowings to achieve a reasonable, competitive
cost of funding.

b) Commodity Risk

The company is exposed to the price risk associated with purchasing of the raw materials. The company typically does not
enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials
may affect the Company's business and results of operations. Management reviews the commodity price risk regularly to avoid
material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk
associated with the major raw material.

c) Currency Risk

The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in
foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is
mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge.
Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/
decrease the Rupee value of debtors/ creditors. To a certain extent, the company uses foreign exchange forward contracts to
minimise the risk.

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The Company's
customer base majorly has creditworthy counterparties which limits the credit risk. The company's exposures are continuously
monitored and wherever necessary we take advances/LC's to minimise the risk.There is no significant concentration of credit
risk in both years.

a) Trade Receivables, Advances and Other Financial Assets

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits
the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed expected credit
losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information
(including macroeconomic information) has been incorporated into the determination of expected credit losses. Based on
such information the company has evaluated that there is no provision required under expected credit loss model. Further, the

b) Other Financial Assets

In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates the
carrying amount of each class of financial assets.

C) Liquidity Risk
Liquidity risk management

Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that
are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have sufficient
liquidity or access to funds to meet our liabilities when they are due.

Maturity profile of financial liabilities

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted
cash flows along with its carrying value as at the Balance Sheet date.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the
reporting period does not reflect the exposure during the year.

(B) Interest Rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rate for both long term & short term
borrowings.

The following table demonstrates the sensitivity in interest rates on that portion of loans and borrowings which are not hedged,
with all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings,
as follows:

49 Offsetting of balances

The Company has not offset financial assets and financial liabilities.

50 Collaterals

The Company has borrowings which are secured by hypothecation of current assets, mortgage of immovable properties
located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations.

51 Fair Value Disclosures

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market or Net Asset Value (“NAV”) for identical assets or liabilities.

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

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

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally
accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that
reflects the credit risk of counterparty.

Explanatory notes:

(i) Investments includes current and non-current investments including Fixed deposits excluding investments in Equity/
Preference instruments.

Explanation for change in the ratios by more than 25%:

(i) Debt Service Coverage Ratio (Times): The debt service coverage ratio is at 5.25 in current year as against 3.55 in previous
year primarily due to lower repayment of long term borrowings during the year

(ii) Net Profit Ratio (%): The Net profit ratio in the current year of 4.4% as against 5.8% in the previous year primarily due to
denominator effect of high feedstock prices and lower profits on account of impact of exceptional items pertaining to new
labour code.

(iii) Return on Investment (%): Return on Investment decreased to 3.5% in the current year from 6.72% in the previous year,
primarily due to lower yields on investments in mutual funds, in line with broader market trends.

55 Other Statutory Information

(i) The Company does not have any Benami property, where any proceedings have been initiated or pending against the
Company for holding any Benami property.

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

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

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

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

b. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or

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

(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).

56 Ind-AS yet to be notified

New and amended standards adopted by the Company

The Ministry of Corporate Affairs vide notification dated September 9, 2024 and September 28, 2024 notified the Companies
(Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards (see below), and are effective for
annual reporting periods beginning on or after 1 April 2024:

Insurance contracts - Ind AS 117; and Lease Liability in Sale and Leaseback - Amendments to Ind AS 116
Ind AS 1, Presentation of Financial Statements, w.e.f April 1, 2025:

The amendment relates to classification of liabilities as current or non current and non-current liabilities with covenants. In the
context of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12
months after the reporting date and instead requires that the said right should exist on the reporting date and have substance.
The amendment also introduces guidance on classification of liabilities with covenants.

Ind AS 107, Financial Instruments: Disclosures, w.e.f. April 1, 2025:

The amendment introduces enhanced disclosure requirements for supplier finance arrangements (such as supply-chain
finance or reverse factoring). Entities are required to disclose information that enables users of financial statements to assess
the effects of such arrangements on the entity's liabilities, cash flows and exposure to liquidity risk. The disclosures include the
nature and terms of the arrangements, the carrying amounts of related financial liabilities, the portion for which suppliers have
already been paid by finance providers, and a comparison of payment terms under supplier finance arrangements with those
of normal trade payables.

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods

New and amended standards issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2026, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.