m. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, 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. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that 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. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best estimates.

Provisions are not recognised for future operating losses.

n. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in which they are incurred.

o. Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
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 is not recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits
will arise. When an inflow of economic benefits is probable, contigent assets are disclosed in the financial
statements.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

p. Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company, excluding any costs of servicing equity other
than ordinary shares.

- by the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjusts 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 ordinary shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

q. Segment Reporting

Based on "Management Approach" as defined in Ind AS 108 -Operating Segments, the Chief Operating
Decision Maker evaluates the Company's performance and allocates the resources based on an analysis
of various performance indicators by business segments.

r. Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and highly liquid
investments with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

Cash flow statement

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

The company has offered following assets as security to the bank as follow:

Primary Securities:

a) The hypothecation charge on stock and books debts of the company both present and future.

b) Equitable mortagage (with residual value) on land and building situated at Plot no 161/1 & 162, GIDC Industrial Estate
Nandesari owned by company.

c) Pledge of TDR face value of Rs. 5.00 Lakh.

d) Hypothecation of Existing Machinery & its components purchased out of Term loan -I and II.

Collateral Securities:

a) Equitable mortgage of Land and Building situated at plot No. 161/1 & 162, GIDC, industrial estate, Nandesari.

b) Hypothecation of Existing Plant and Machinery.

c) Pledge of TDR in the name of Co. face value 61.16 Lakh.

d) WCTL of 53 Lakhs shall be covered under Guarantee of NCGTC.

e) Personal guarantee given by 2 directors.

NOTE - 36 - DISCLOSURES FOR EMPLOYEE BENEFITS:

a. Defined benefit plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a grautity payout per the Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation
of India in the form of qualifying insurance policy for future payout of gratuity of the employees. Each year-end, the
management reviews the level of funding in the gratuity fund. Such review includes the asset - liability matching
strategy. The management decides its contributions based on the results of this review. The management aims to
keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.

The following table sets out the components of net benefit expense recognised in Statement of Profit and Loss and
the funded status and amounts recognised in the Balance Sheet for the respective plans:

b. Defined Contribution Plans

The Company makes Provident Fund contributions to defined contribution plan for qualifying employees. Under the
scheme, the Company is required to contribute a specified percentage of payroll costs to fund the benefits. The
Company has recognised provident fund contribution of ? 21.06 lakhs (March 31,2023 ? 21.02 lakhs) as expense
in Note 28 under the head ‘Contributions to Provident and Other Funds'.

NOTE - 37 - SEGMENT INFORMATION:

The Company has one production unit engaged in the manufacturing and job work of organic intermediates. Accordingly,
the Chief Operating Decision Maker monitors the operating results of both manufacturing and job work for the purpose
of making decision about resource allocation and performance assessment. Thus there are no separate reportable
segments in terms of the requirements of Ind AS 108 “Operating Segments” as notified under section 133 of the
Companies Act, 2013.

Geographical segment analysis:

(i) Revenues from customers attributed to an individual foreign country are NIL for the years ended on March 31,2024
and March 31,2023._

NOTE - 38 - DETAILS OF HEDGED AND UNHEDGED EXPOSURE IN FOREIGN CURRENCY DENOMINATED MONETARY
ITEMS:

Derivatives not designated as hedging instruments

The Company does not have exposure to foreign currency risk.

NOTE - 39 - CAPITAL MANAGEMENT:

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management
is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and
maximise shareholder value.

The Company determines the capital management requirements on the basis of Annual Budget and other strategic
investment plans as approved by the Board of Directors. The Company manages its capital structure and makes
adjustments to it in light of changes in economic conditions or its business requirements. 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 includes within net debt, interest bearing loans and borrowings less cash and short-term deposits
(including other bank balance).

Note: 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
financial statements, future projections including projected profit and loss account by those investee companies.
Hence, the Company has estimated fair value based on available historical transaction details of such companies
and other information as available in the public domain. Since the future projections are not available, discounted
cashflow approach for fair value determination has not been followed. In light of no information available for future
projections, capacity utilisation, commencement of operations, etc., the valuation is based on cost approach.

Financial Instrument measured at amortised cost:

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

Transfer out of Level 3:

There was no movement in level 3 in either directions during the year 2023-24 and 2022-23.

Risk management framework:

The Company's principal financial liabilities, other than derivatives, comprises of trade and other payables, and financial
liabilities. Company uses short term bank facilities which is not outstanding as at the balance sheet date. The main
purpose of these financial liabilities is to finance the Company's operations to support its operations. The Company's
principal financial assets include loans, trade and other receivables, cash and cash equivalents, other bank balances
and other financial assets that derive directly from its operations. The Company also holds FVTPL investments.

The Company has an effective risk management framework which helps the Board to monitor the risks controls in key
business processes. In order to minimise any adverse effects on the bottom line, the Company takes various mitigation
measures such as credit control, foreign exchange forward contracts to hedge foreign currency risk exposures and
execution off set hedges to contain the zinc metal price risks. Derivatives are used exclusively for hedging purposes
and not as trading or speculative instruments.

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

• Credit risk ;

• Liquidity risk ; and

• Market risk

i. Credit risk:

Credit risk is the risk that counter party will not meet its obligation leading to a financial loss. The Company is
exposed to credit risk arising from its operating activities primarily from trade receivables and from financing activities
primarily realting to parking of surplus funds with various schemes of Mutual Funds and as Deposits with Banks.
The Company considers probability of default upon initial recognition of assets and whether there has been a
significant increase in credit risk on an ongoing basis throughtout the reporting period. To assess whether there is
a significant increase in credit risk, the Company com pares the risk of default occuring on the asset as at the
reporting date with the risk of default as at the date of initial recognition. This assessment is based on available
information and the business environment.

a) Trade and other receivables:

The Company has a Credit Policy and extends credit to its customers based on customer's credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

Impairment of trade receivables:

The impairment provisions for trade receivables are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company's past history, existing market conditions as well as forward looking
estimates at the end of each reporting period i.e. a practical expedient. The Company calculates expected credit
loss allowance based on the ageing of the days the receivables are due.

The Company has a Credit Policy and extends credit to its customers based on customer's credit worthiness,
ability to repay, and past track record. The extension of credit is constantly monitored through a review
mechanism. The company also covers its domestic as well as export receivables through a credit insurance
policy.

b) Financial Instruments and Cash Deposits

The credit risk from balances/deposits with Banks, current investments and other financial assets are managed
in accordance with company's policy. Investment of surplus funds are primarily made in Liquid/Short Term Plan
of Mutual Funds and in Bank Deposits which carry a high external rating.

ii. Liquidity risk:

Liquidity risk is the risk that the company may encounter difficulty in meeting its obligations. The company prepares
a detailed Annual Operating Plan (AOP) to assess both short term as well as long term fund requirements. Detailed
month-wise cash flow forecast is also carried out to determine the working capital and other long term fund
requirements. The company funds both these requirements through internal accruals. The company also has working
capital credit lines approved from its bank, which besides non-fund based, provides healthy liquidity. These working
capital credit lines are from a nationalised bank.

iii. Market risk:

Market Risk is the risk that the fair value of the future cash flow will fluctuate because of changes in the market
prices such as currency risk, interest rate risk and commodity price risk.

a. 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 changes in the Market interest rates.

Besides the impact of interest rate risk on the provision for retirement benefits, the company is not exposed to
significant interest rate risk at the respective reporting date as it does not have any borrowings.

iii. Market risk: (Contd.....)

a. Exposure to interest rate risk

The Company has exposure to short and long term fixed deposits invested at fixed rate of interest with banks. Thus
, it's interest income and related cash inflows are not affected much by changes in the market interest rates.

b. Equity price risk

Price risk is the risk arising from investments held by the company and classified in the balance sheet either
at fair value through Other Comprehensive Income or at fair value through Profit & Loss Account. The company's
investments are not current in nature and primariliy in Liquid Plan of Mutual Funds and listed equity shares which
are not exposed to significant price risk.

If prices had been 100 basis points higher/lower, profit before tax for the year ended March 31, 2024 would
increase/decrease by ? 2.91 lakhs (for the year ended 31 March, 2023: ? 3.62 lakhs) as a result of the changes
in fair value of these investments which have been designated as at FVTPL.

c. Foreign currency risk

The Company operates to a small extent in the global market and is, therefore, exposed to insignificant foreign
exchange risk arising from foreign currency transactions i.e. exports and imports, primarily with respect to USD.
As these transactions are recorded in currency other than functional currencies (INR), the company is exposed
to foreign exchange risk arising from future commercial transactions and recognized assets and liabilities. As
the company is exposed to insignificant risk from change in foreign exchange rates, hedging of foreign currency
risk is not performed by the management.

NOTE - 44 - OTHER DISCLOSURE:

(i) The company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property;

(ii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender;

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

(iv) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the
Companies Act, 2013;

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

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

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

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

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

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

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

(viii) The company have not traded or invested in Crypto currency or Virtual Currency during the year.

(ix) The company does not have any subsidiaries therefore disclosure of compliance with layer of companies prescribed
under clause 2(87) of section 2 of the Companies Act, 2013 is not applicable.

NOTE - 45:

The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors
on May 29th, 2024. The financial statements as approved by the Board of Directors are subject to final approval by its
Shareholders.

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

For CNK Associates & LLP Link Pharma Chem Limited

Chartered Accountants

ICAI Firm Registration No. 101961W/W-100036 Satish G. Thakur Rishikesh Thakur

Chairman Managing Director

Pareen Shah (DIN:00292129) (DIN:08777265)

Partner

Membership No. 125011 Sanjib Dutta Khushbu Patel

Chief Financial Officer Company Secretary
Place : Vadodara Place : Vadodara

Date : May 29th, 2024 Date : May 29th, 2024