M. Provisions, contingent liabilities and contingent
assets

Provisions are recognized when there is 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. The expenses
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 determined by discounting the
expected future cash flows specific to the liability.
The unwinding of the discount is recognised as
finance cost. A provision for onerous contracts is
measured at the present value of the lower of the
expected cost of terminating the contract and the
expected net cost of continuing with the contract.
Before a provision is established, the Company
recognises any impairment loss on the assets
associated with that contract.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but will probably not, require an outflow of
resources. When there is a possible obligation of a
present obligation in respect of which the likelihood
of outflow of resources is remote, no provision
disclosure is made. A contingent asset is not
recognised but disclosed in the financial statements
where an inflow of economic benefit is probable.

Commitments include the amount of purchase order
(net of advance) issued to parties for completion
of assets. Provisions, contingent assets, contingent
liabilities and commitments are reviewed at each
balance sheet date.

N. Leases

Company as a lessee

The Company’s lease asset classes primarily
consist of leases for land. The Company assesses
whether a contract contains a lease, at inception
of a contract. A contract is, or contains, a lease if
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an identified
asset, the Company assesses whether: (i) the
contract involves the use of an identified asset (ii)
the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and (iii) the Company has the right to
direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short¬
term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes
the lease payments as an operating expense on a
straight-line basis over the term of the lease. Certain
lease arrangements include the options to extend
or terminate the lease before the end of the lease
term. ROU assets and lease liabilities include these

options when it is reasonably certain that they will
be exercised.

The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of the
lease plus any initial direct costs less any lease
incentives. They are subsequently measured at
cost less accumulated depreciation and impairment
losses. Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable.

The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates
in the country of domicile of these leases. Lease
liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the
Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

Company as a lessor

Leases under which the Company is a lessor are
classified as a finance or operating lease. Lease
contracts where all the risks and rewards are
substantially transferred to the lessee are classified
as a finance lease. All other leases are classified as
operating lease.

For leases under which the Company is an
intermediate lessor, the Company accounts for
the head-lease and the sub-lease as two separate
contracts. The sub-lease is further classified
either as a finance lease or an operating lease by
reference to the RoU asset arising from the head-
lease.

O. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and 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.

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

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

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
equity shares that would have been
outstanding assuming the conversion of
all dilutive potential equity shares.

Q. Business combination

Business combinations are accounted for using the
acquisition method. The cost of an acquisition is
measured as the aggregate of the consideration
transferred measured at acquisition date fair value
and the amount of any non-controlling interests
in the acquiree if any. Acquisition-related costs
are expensed as incurred. At the acquisition date,
the identifiable assets acquired and the liabilities
assumed if any are recognised at their acquisition
date fair values. For this purpose, the liabilities
assumed include contingent liabilities representing
present obligation and they are measured at their

acquisition fair values irrespective of the fact that
outflow of resources embodying economic benefits
is not probable. However, the following assets and
liabilities acquired in a business combination are
measured at the basis indicated below:

Deferred tax assets or liabilities, and the assets or
liabilities related to employee benefit arrangements.
are recognised and measured in accordance with
Ind AS 12 Income Tax and Ind AS 19 Employee
Benefits respectively. When the Company acquires
a business, it assesses the financial assets and
liabilities assumed for appropriate classification
and designation in accordance with the contractual
terms, economic circumstances and pertinent
conditions as at the acquisition date. Goodwill is
initially measured at cost, being the excess of the
aggregate of the consideration transferred and the
amount recognised for noncontrolling interests, and
any previous interest held, over the net identifiable
assets acquired and liabilities assumed. If the fair
value of the net assets acquired is in excess of
the aggregate consideration transferred (bargain
purchase), the Company re-assesses whether it has
correctly identified all the assets acquired an all of
the liabilities assumed and reviews the procedures
used to measure the amounts to be recognised at
the acquisition date. If the reassessment still results
in an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then
the gain is recognised in Other Comprehensive
Income (OCI) an accumulated in equity as capital
reserve. However, if there is no clear evidence of
bargain purchase, the entity recognises the gain
directly in equity as capital reserve, without routing
the same through OCI.

Business combinations arising from transfers of
interests in entities that are under common control
are accounted using pooling of interest method.
The difference between consideration given and
the aggregate historical carrying amounts of assets
and liabilities of the acquired entity are recorded
in equity.

T Research and Development expenditure

Expenditure on research is recognised as an
expense when it is incurred. Expenditure on
development which does not meet the criteria for

recognition as an intangible asset is recognised as
an expense when it is incurred. Items of Property,
Plant and Equipment and acquired Intangible
assets are used for research and development are
capitalised and depreciated in accordance with the
policies stated for Property, Plant and Equipment
and Intangible assets.

S. Recent Pronouncements

The Ministry of Corporate Affairs vide notification
dated 7 May 2025 and 13 August 2025 notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025 and Companies (Indian
Accounting Standards) Second Amendment
Rules, 2025, respectively, which amended certain
accounting standards (see below), and are effective
for annual reporting periods beginning on or after 1
April 2025:

(a) Ind AS 1 - Presentation of Financial Statements
Clarifications on classification of liabilities as
current or non-current, including the impact of
loan covenants and rights to defer settlement.

(b) Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS 21The

amendment in Ind AS 7 requires to inform
users of financial statements of the existence
of supplier finance arrangements and explain
the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to
add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Company provided new disclosures for
liabilities under supplier finance arrangements
in note 20.

(c) International Tax Reform - Pillar Two
Model Rules - Amendments to Ind AS 107

The Ministry of Corporate Affairs (MCA) has
notified amendments to Ind AS 12, Income
Taxes, to incorporate the OECD Pillar Two
Model Rules. These amendments introduce
specific disclosure requirements for entities
that may be subject to Pillar Two income tax.
Pillar Two legislation has not yet been enacted
in India, where the Company is headquartered.
Accordingly, no adjustments have been made

to these financial statements in respect of
Pillar Two income taxes. The Company will
continue to monitor developments in India and
other jurisdictions in which it operates, and will
evaluate the impact of such legislation as and
when it becomes applicable.

(d) Lack of Exchangeability - Amendments

to Ind AS 21 The amended Ind AS 21
have added requirements to help entities
to determine whether a currency is
exchangeable into another currency, and the
spot exchange rate to use where it is not.

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.

T New and amended standards not yet adopted
Ministry of Corporate Affairs (“MCA’) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time.

Ind AS 1- Presentation of Financial Statements
Clarifications on classification of liabilities as current
or non-current, basis the timing of waiver granted
by the lender on breach of a material provision.
Once effective, the Company does not expect
this amendment to have a material impact on its
operations or financial statements.

(b) Rights, preferences & Restriction of each class of shares

The Company has one class of Equity shares having a par value of ' 10 per share. Each Share holder is eligible for one
vote per share held. All Equity Shareholders are eligible to receive dividends in proportion to their shareholdings. The
dividends proposed by the Board of Directors are subject to the approval of the Shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company,
after distribution of all preferential amounts, in proportion to their share holding.

NOTE : 13. EQUITY SHARE CAPITAL (CONTD.)

(c) Note For Shares Held Under Esop Trust:

The Company has created an Employee Stock Ownership Plan (ESOP) for providing share-based payment to its employees.
ESOP is the primary arrangement under which shared plan service incentives are provided to certain specified employees
of the Company and its subsidiaries in India. For the purpose of the scheme, the Company purchases shares from the
open market under ESOP trust. The Company treats ESOP trust as its extension and shares held by ESOP trust are
treated as treasury shares.

The Description of the nature and purpose of each reserve within equity:

General Reserve: General reserve is a free reserve which is created by transferring fund from retained earnings to meet future
obligations and purposes.

Retained Earnings: Retained earnings are the profits that the company has earned till date, less any transfers to general
reserve, dividends paid to shareholders.

Securities Premium: Security premium is used to record the premium received on issue of shares. It is utilised in accordance
with the provisions of Companies Act, 2013.

Capital Reserve on Business Combination: This represents the capital reserve on account of business combination purchase
of unit of Solaris Chemtech industries ltd, amalgamation of BuLi Chemicals India Private Limited under common control business
combination transaction.

Employee stock option reserve :The Company offers ESOP, under which options to subscribe for the Company’s share have
been granted to certain employees and senior management of Neogen Chemicals and its subsidiaries. The reserve is used to
recognise the value of equity settled share based payments provided as part of the ESOP scheme.

Other Comprehensive Income - Remeasurement of defined benefit plans : Remeasurement of defined benefit plans
represents actuarial gains and losses relating to gratuity.

Treasury Shares: The Company has formed an Employee Welfare Trust for purchasing Company’s share to be allotted to eligible
employees under Employees Stock Options Scheme, 2024. As per Ind AS 32 - Financial Instruments: Presentation, Reacquired
equity shares of the company are called Treasury Shares and deducted from equity.

Notes:

1 The secured term loan outstanding of ' 24.25 crore (March 31,2025: ' 48.82 crore) from HDFC Bank carries interest at
790% p.a (REPO rate plus 2.65%). The loan is repayable within 7 years from its origination and the final instalment of
repayment is due on 30-03-2028. Charge created on current and future movable and immovables assets of the company.

2 The secured term loan outstanding of ' 13.75 crore (March 31,2025: ' 18.75 crore) from Axis Bank carries interest at 795%
p.a (REPO rate plus 2.70%). The loan is repayable within 7 years from its origination and the final instalment of repayment
is due on 31-12-2028.Charge created on current and future movable and immovables assets of the company.

3 The secured term loan outstanding of ' 21.13 crore (March 31,2025: ' 11.99 crore ) from Bandhan Bank carries interest
at 8.25% p.a (REPO rate plus 3.00%). The loan is repayable within 7 years from its origination and the final instalment of
repayment is due on 29-08-2031. Charge created on current and future movable and immovables assets of the company.

4 Redeemable Non Convertible Debentures (NCD) issued by company amounting to ' 200.00 crore (March 31,2025: Nil)
are rated, listed and secured by way of Subservient charge over immovable assets at Karakhadi,Dahej, ' 15.00 crore fixed
deposit has been specifically liened and all the movable asset of the company .These debentures will mature on 12-02¬
2028 . The interest rates is 10.5% p.a.

5 The secured term loan outstanding of ' 62.39 crore (March 31,2025: NIL) from Vivitri Capital carries interest at 12.00%
p.a. The loan is repayable within 2 years from its origination and the final instalment of repayment is due on 28-03-2028,
with put option. Subservient and continuing charge by way of hypothecation over all current assets and future current
assets and present and future movable fixed assets, ' 8.45 crore fixed deposit and ' 5.85 crore security deposit has been
specifically liened.

6 Charge created on current and future movable and immovables assets of the company.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities
and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of
taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets
will be recovered.

Given that the Company does not have any intention to dispose investments in subsidiaries in the forseeable future, deferred
tax asset on indexation benefit in relation to such investments has not been recognised.

Under these arrangements:

suppliers may elect to receive payment from the finance provider before the original invoice due date;

the finance provider settles the amount due to participating suppliers; and

the Company settles the obligation with the finance provider on the agreed due date.

The supplier finance arrangements are entered into to facilitate efficient working capital management and provide suppliers
with optional early payment facilities.

The obligations under these arrangements continue to be recognised as trade payables since the nature of the liabilities remains
consistent with liabilities arising from the purchase of goods and services.

Loss. This approach is consistent with the guidance issued by the Institute of Chartered Accountants of India. The implementation
of the Labour Codes has resulted in an increase of ' 0.10 Crore in the provision for defined benefit obligation, which has
been recognised as an employee benefit expense in the year ended March 31,2026. The Company continues to monitor the
finalisation of Central and State Rules, as well as Government clarifications on other aspects of the Labour Codes and will
incorporate appropriate accounting treatment based on these developments as required.

The Company has formulated Employee Share-based Payment Schemes (ESOP) named “Neogen Chemicals Employee Stock
Option Scheme, 2024” during the year ended 2025, as approved by the Board of Directors of the Company dated 1^st April 2025
for issuance of stock options to its employees as well as to the employees of its subsidiary company.

Under the plan, options will be vested in specified ratio subject to fulfilment of the performance criteria as laid down in the
scheme.This shall be monitored annually as per the performance evaluation cycle of the company and options shall be vested
based on achieved performance.

On March 05, 2025, there was fire at Multi-Purpose Plant (MPP3) Facility, Tank Farms and warehouse at Dahej SEZ Plant of
the Company. This incident led to damage of certain property, plant and equipment, inventory and interrupted business. The
Company is adequately insured for reinstatement value of damaged fixed assets, inventory and loss of profits due to business
interruption. The Company has intimated the fire incident with the insurance company and submitted loss estimate pertaining to
replacement value of the damaged property, plant and equipment, loss of damaged inventory and incidental expenses incurred
on account of fire. The Claim is admitted by the insurance company.

During the financial year ended March 31,2025, the Company has recognised loss of ' 348.16 Crore on account of damage
to certain property, plant & equipment, inventory and estimated cost of incidental charges. The Company has recognised
insurance claim receivable of ' 334.60 Crore to the extent of recovery of loss after adjusting applicable deductibility considering
its assessment of loss and admissibility of claims as per the policy, adequacy of coverage and nature of loss and based upon the
independent opinion obtained by the company from Independent Surveyor and Independent Expert Practitioner. The Company
has not accounted claim for loss of profit due to business interruption and excess value of reinstatement of assets over written
down value as per accounting conservatism. The aforementioned losses and corresponding insurance claim has been presented
on a net basis of ' 13.56 Crore under exceptional item and claim receivable in other current financial assets in these standalone
financial statement for the financial year ended March 31,2025.

During the current year ended March 31,2026, Company has received ' 14705 Crore (' 140.00 Crore as on account payment
from insurance company and balance ' 705 Crore pertains to sale of scrap) and incurred further incidental charges of ' 1.41
Crore which is also claimed as per insurance policy.

NOTE : 33. EARNINGS PER SHARE

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders of
the parent by the weighted average number of equity shares outstanding during the year. Diluted earnings /(loss) per share
amounts are calculated by dividing the profit/loss attributable to equity holders by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the
dilutive potential equity shares into equity shares.

(b) Defined Benefit Plans

Gratuity

The Company has covered its Gratuity liability under Group Gratuity policy viz ‘Employee Group Gratuity Scheme’ issued
by LIC of lndia . As per company policy, an employee on separation (after fulfilling other conditions) is eligible for benefit,
which is equal to 15 days salary for each completed year of service. Hence, Gratuity is covered under a defined benefit
plan. The Insurance policy represents the plan assets. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit
of employee benefit entitlement and measure each unit separately to build up the final obligation.

Compensated Absences

The Company has also provided long term compensated absences which is outstanding. The obligation for leave
encashment is recognised in the same manner as gratuity.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and
the funded status and amounts recognised in the balance sheet for gratuity and leave encashment plan:

NOTE : 37 SEGMENT INFORMATION

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of directors. The Company has identified only one segment as reporting
segment based on the information reviewed by CODM.

The Company deals in Specialty Chemicals and considering that the nature of products and the predominant risk and returns
of the products are similar, the Company considers it as one operating segment in accordance with Ind AS 108.

NOTE : 38. ACCOUNTING CLASSIFICATION AND FAIR VALUES

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are
presented below.

a) Abbreviations

FVTPL - Fair value through the profit and loss

FVTOCI - Fair Value through other comprehensive income

b) The investments does not include equity investment which are carried at cost and hence are not required to be disclosed
as per Ind AS 107 “Financial instruments disclosures

c) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by
valuation techniques.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

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

Level 3 — Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

NOTE : 38. ACCOUNTING CLASSIFICATION AND FAIR VALUES (CONTD.)

d) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair values:

The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.
The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign
exchange forward contracts and cross currency interest and principal swap are valued using valuation techniques, which
employs the use of market observable inputs. The model incorporates various inputs including the credit quality of counter
parties, foreign exchange spot and forward rates.

Mutual Funds: The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the
issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the
issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Derivative assets and liabilities: The Company enters into a variety of derivative financial instruments to manage its exposure
to foreign exchange rate risks, including foreign exchange forward contracts and cross currency swaps. Derivatives are initially
recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value
at the end of each reporting year.

e) There were no transfers between level 1 and 2 during the year.

NOTE : 39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its
operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents
that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management is supported by a financial risk committee that advises on
financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides
assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies
and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and
risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate
skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivative
financial instruments.

The sensitivity analyses in the following sections relate to the position as at March 31,2026 and March 31,2025

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations and provisions.

NOTE : 39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at March 31,2026 and March 31,2025.

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 market interest rates. The Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s long-term debt and short term debt obligations with floating interest rates.
If the interest rates had been 1% higher / lower and all other variables held constant, impact on the Company’s profit for the
year ended March 31,2026 and March 31,2025 will not be significant.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a foreign currency).

The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the
reporting date. The Company uses forward exchange contracts to hedge the currency exposure and is therefore not exposed
to significant currency risk at the respective reporting dates.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to
match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from
the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable
that is denominated in the foreign currency.

Foreign currency sensitivity

The following table details the Company’s sensitivity to a 5% appreciation and depreciation in the ' against the relevant foreign
currencies net of hedge accounting impact.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at
the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates
an increase in profit or equity where ' strengthens by 5% against the relevant currency. For a 5% weakening of ' against the
relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

NOTE : 39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)Price risk

The Company does not have much exposure to price risk due to annual contracts and pass through mechanism for imports.
Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit
risk controls.

None of the financial instruments of the Company result in material concentrations of credit risk. The company’s objective is to
seek continual revenue growth while minimising losses incurred due to increased credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset.

The entity’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due Management monitors rolling forecasts of the entity’s liquidity position and cash and cash equivalents on the
basis of expected cash flows. The entity takes into account the liquidity of the market in which the entity operated.

As described in Note 20, the Company also participates in a supplier finance arrangement with the principal purpose of facilitating
efficient payment processing of supplier invoices and providing the willing suppliers early payment terms compared with the
related invoice payment due date. The arrangement allows the Company to centralise payments of trade payables to the bank
rather than paying each supplier individually. From the Company’s perspective, the arrangement does not significantly extend
payment terms beyond the normal terms agreed with other suppliers that are not participating.

The company has given bank guarantees against the loans and credit facilities of subsidiaries. These amounts will be payable
on default by the concerned entity. As of the reporting date, the subsidiary have not defaulted and hence, the company does
not have any present obligation to third parties in relation to such guarantees.

NOTE : 41. CAPITAL MANAGEMENT

The primary objective of the Company’s capital management is to maximise 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 includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and cash equivalents.

NOTE 42 - OTHER STATUTORY INFORMATION

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 has not traded or invested in Crypto currency or Virtual Currency during the financial year.

iii) The Company has not received any funds 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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries.

iv) The Company has not advanced or loaned or Invested fund to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lends or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or

(b) provides any guarantee, security or the like on behalf of the ultimate beneficiaries.

NOTE 42 - OTHER STATUTORY INFORMATION (CONTD.)

v) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

vi) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

vii) The Company does not have any transactions with companies which are struck off.

viii) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

ix) The Company have no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

x) The Company has not revalued its intangible assets and accordingly the revaluation as defined under rule 2 of Companies

(Registered Valuers and Valuation) Rules, 2017 is not applicable.

xi) The Company has complied with provision prescribed under clause (87) of section 2 of the Companies Act, 2013 for
maintaining layers of Companies.

xii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

NOTE 46 - DISCLOSURE PURSUANT TO IND AS 103 “BUSINESS COMBINATION”

Buli Chemicals India Private Limited, wholly owned subsidiary, merged with company under scheme of Amalgamation approved
by National Company Law Tribunal, Mumbai Bench, through order dated January 09, 2025 the Scheme is effective from the
date of filing of the certified copy of Order with the Registrar of Companies, Mumbai i.e. January 31,2025 (“Effective Date”),with
appointed date as April 1,2024. The Scheme sanctioned being a common control transaction has been accounted using pooling
of interest method, in accordance with INDAS 103 “Business Combination” involving the following:

i) The assets and liabilities of Buli Chemicals India Private Limited were reflected at their carrying amounts. No adjustment
was made to reflect the fair values, or recognise any new asset or liability.

ii) The balance of the Retained earnings appearing in the financial statements of the Buli Chemicals India Private Limited
was aggregated with the corresponding balance appearing in the financial statements of the Company.

iii) Restating the financials of the Company from April 1, 2023.

NOTE 47: SUBSEQUENT EVENTS

The Board of Directors of the Company, at its meeting held on March 7 2026, inter alia approved the issue and offer of 10,00,000
equity shares of face value of ' 10 each at a price of ' 1,610 per Equity Share including a premium of ' 1,600 per Equity Share,
aggregating to ' 1,61,00,00,000 (Rupees One Hundred and Sixty One Crore only) on preferential basis for cash consideration.
Subsequently, the shareholders of the Company at its Extra Ordinary General meeting held on March 29, 2026, has approved
issue, offer and allotment of the said 10,00,000 equity shares to Cadamba Solutions Private Limited, a Promoter Group member
of the Company. The receipt of the application money and the allotment of the said equity shares of the Company on a preferential
basis was done on April 18, 2026. The Equity Shares were listed on Bombay Stock Exchange and National Stock Exchange.

NOTE 48: PROPOSED DIVIDEND

The Board of Directors of the Company at its meeting held on May 16, 2026, has recommended a final dividend of ' 1 per equity
share on the paid-up equity share capital of the Company for F.Y. 2025-26, subject to approval of shareholders.

NOTE : 49. Previous year figures have been regrouped/rearranged where necessary to conform to current year’s classification.