p) Provisions and contingencies:

Provisions are recognized 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. If the effect of the time value of money
is material, provisions are discounted using 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 date and are
adjusted to reflect the current best estimate.

Contingent liabilities are disclosed in case of:

• A present obligation arising from past events,
when it is not probable that an outflow of
resources will be required to settle the
obligation;

• A present obligation arising from past events,
when no reliable estimate is possible;

• A possible obligation arising from past events,
unless the probability of outflow of resources is
remote.

Commitments include capital expenditure (net of
advances) in relation to solar power plant.

Provisions, contingent liabilities, contingent assets
and commitments are reviewed at each balance
sheet date.

q) Impairment of Assets:

At each balance sheet date the company reviews
whether there is any indication of impairment of the
carrying amount of the company's fixed assets. If
any indication exists, an asset's recoverable amount
is estimated. An impairment loss is recognised
whenever the carrying amount of an asset exceeds
its recoverable amount and charged to profit & loss
account in the year in which asset is identified as
impaired. The recoverable amount is the greater of
the net selling price and value in use. In assessing
value in use, the estimated future cash flows are

discounted to their present value based on an
appropriate discount factor. The impairment loss
recognized in prior accounting periods is reversed if
there has been a change in estimate of recoverable
amount.

r) Research And Development

Revenue expenditure pertaining to Research &
Development which are not for enduring benefit
are charged to Profit & Loss Account. Expenditure
incurred for enduring benefit for the development of
the products/processes which will generate future
economic benefit by the way of improvement in yield
and efficiency of those products are carried over
as R&D work in progress under the head 'Capital
Work in Progress'. The value of process/product so
developed is amortized over a period of ten years
from the year of successful development.

2.2 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

In the process of applying the Company's accounting
policies, management has made the following estimates,
assumptions and judgments, which have significant effect
on the amounts recognized in the financial statement:

> Useful lives of property, plant and equipment
and intangible assets.

Management has assessed the remaining useful
lives and residual value of fixed assets. Management
believes that the assigned useful life is reasonable.

> Impairment of property, plant and equipment
and intangible assets.

For property, plant and equipment and intangibles
an assessment is made at each reporting date
to determine whether there is an indication that
the carrying amount may not be recoverable or
previously recognised impairment losses no longer
exist or have decreased. If such indication exists,
the Company estimates the asset's recoverable
amount. A previously recognised impairment loss
is reversed only if there has been a change in
the assumptions used to determine the asset's
recoverable amount since the last impairment loss
was recognised

> Defined Benefit Obligation (gratuity benefits)

The cost of the defined benefit plan and other
post-employment benefits and the present value
of such obligation are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual

developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and attrition rate. Due
to the complexities involved in the valuation and
its long-term nature, a defined obligation is highly
sensitive to changes in these assumptions. All
assumption are reviewed at each reporting date.

> Fair value measurement of financial instruments

When the fair value of financial asset and liabilities
recorded in balance sheet cannot be measured based
on quoted price in active markets, their fair value is
measured using valuation techniques including the
Discounted Cash Flow (DCF) model. The inputs to
these models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgement include considerations of
inputs such as liquidity risk, credit risks and volatility.
Changes in assumption about these factors could
affect the reported fair value of financial instruments.

> Lease commitments - As a lessee

When The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. The application of Ind AS 116 requires
company to make judgement and estimates that
affect the measurement of right-of-use assets and
liabilities. The Company uses significant judgement
in assessing the lease term and the applicable
discount rate.

The Company has entered into lease agreement of its
registered office, located at 54D, Kandivali Industrial
Estate, Charkop, Kandivali West, Mumbai-67. The
Company determines the lease term as the non¬
cancellable period of a lease, together with both
periods covered by an option to extend the lease if
the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option

to extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for
the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the
lease.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of
use asset in a similar economic environment.

> Expected Credit Loss on Trade Receivables

Trade receivables do not carry any interest and are
stated at their nominal value as reduced by provision
for impairment. The Company uses a provision
matrix to determine impairment loss on portfolio of
its domestic trade receivables. The provision matrix
provides impairment for domestic trade receivables
outstanding over 360 days, as per the management,
where the chances of recovery are distant.

> Income taxes

Management judgment is required for the calculation
of provision for income taxes and deferred tax
assets and liabilities. The Company reviews at each
balance sheet date the carrying amount of deferred
tax assets. The factors used in estimates may differ
from actual outcome which could lead to significant
adjustment to the amounts reported in the financial
statements.

> Contingencies

Management judgment is required for estimating the
possible outflow of resources, if any, in respect of
contingencies/claim/ litigation against the Company
as it is not possible to predict the outcome of pending
matters with accuracy.

Capital Reserve

This reserve has been created from State subsidy received for establishment of Industry in MIDC, subsidy was received in FY
1994-95

Revaluation Reserve

Plant, Machinery, Land & Building were revalued in FY 2005-06 and the reserve which will be transferred to Revenue Reserve at
the time of disposal of the assets

Retained earnings

Retained earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves, if any,
and amount distributed as dividend and adjustments on account of transition to Ind AS.

Current reporting period As on 31.03.2026

a) Note on Nature of Security on secured loan

Working Capital facility of Rs. 8Cr is taken from YES bank secured by first pari pasu charge on all present and future current
assets and second charge on movable fixed assets of the company

b) Working capital borrowing carry interest of Repo Rate 2.25%

Previous reporting period As on 31.03.2025

a) Note on Nature of Security on secured loan

Working Capital facility of Rs. 8Cr is taken from YES bank secured by first pari pasu charge on all present and future current
assets and second charge on movable fixed assets of the company

b) Working capital borrowing carry interest of Repo Rate 2.25%

NOTE-34

Disclosure in accordance with Ind AS - 19 “Employee Benefits”, of the Companies (Indian Accounting Standards) Rules, 2015

Leave Encashment - The company has provided an expense of Rs. 2.48 lakhs in in Employee Benefit expenses in Profit and
Loss Statement and Rs. 2.29 lakhs in Exceptional items for leave encashment as per Actuarial valuation considering the new
Labour Code. Total provision of Rs. 15.20 lakhs has already been provided.

Gratuity - The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is
the employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years
of service. The Gratuity Plan is a funded plan and the company makes contributions to recognized funds in India. The company
does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations
of expected gratuity payments. The pan typically exposes the company to actuarial risk

The following table summarizes the components of net benefit expense recognized in the statement of profit and loss and in the
balance sheet.

The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the
reporting period on government bonds

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and
mortality.

Risk Exposure

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

Market risk (interest rate) - Market risk is a collective term for risks that are related to the changes and fluctuations of the
financial markets. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined
Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds
and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Longevity risk - The impact of longevity risk will depend on whether the benefits are paid before retirement age or after. Typically
for the benefits paid on or before the retirement age , the longevity risk is not very material.

Actuarial risk

Salary Increase Assumption - Actual Salary increase that are higher than the assumed salary escalation , will result in increase
to the obligation at a rate that is higher than expected.

Attrition/Withdrawal Assumption

If actual withdrawal rates are higher then assumed withdrawal rates, the benefits will be paid earlier then expected. Similarly if the
actual withdrawal rates are lower then assumed, the benefits will be paid later then expected. The impact of this will depend on
the demography of the company and the financials assumptions

“Regulatory Risk - Any Changes to the current Regulations by the Government, will increase (in most cases) or Decrease the
obligation which is not anticipated. Sometimes, the increase is many fold which will impact the financials quite significantly.

NOTE-35

FINANCIAL INSTRUMENTS

The carrying value and fair value of financial instruments by category wise is as follows:

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

2. 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, other than in a forced or liquidation sale.

NOTE-36

FAIR VALUE HIERARCHY

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a)
recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its
financial instruments into the three levels prescribed under the accounting standard.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices 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).

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

NOTE-37

FINANCIAL RISK FACTORS

The Company's business activities are exposed to a variety of financial risks: market/business risk, credit risk, exchange risk,
etc. The Company's focus is to foresee the unpredictability of financial and business risks and seek to minimize potential adverse
effects of these risks on its business and financial performance.

i. Business/ Market Risk

The primary business/market risk to the Company is the price risk and its ability to pass on the same to its customers.
The Company's operations extend to a number of countries across the globe and its products pricing competitiveness is
a primary factor for the acceptability of Company's products in those markets. The Company has a robust procurement
process, which ensures that its pricing power is not adversely affected by price changes in the market place for its raw
materials.

The Company also continuously forays into different markets/countries to reduce its complete dependence on any particular
country or customer group.

ii. Credit risk

The company is engaged in business of manufacturing of Pyridine, Picoline, Cynopyridine and derivatives of the same. Bulks
drugs and nutritional products are toll converted. Receivables are typically not secured by any form of credit support such as
letters of credit, performance guarantees or escrow arrangements. Credit risk is the risk that counterparty will not meet its
obligations under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating
activities and from its financing activities, including deposits with banks and other financial instruments.

Financial assets that are potentially subject to concentrations of credit risk and failures by counter-parties to discharge their
obligations in full or in a timely manner consist principally of cash, cash equivalents and other receivables. Credit risk on
cash balances with Bank are limited because the counterparties are entities with acceptable credit ratings. The exposure to
credit risk for loan to related parties is limited because the related parties are entities with acceptable credit rating.

iii. Foreign currency risk

The Company has a system of regularly monitoring its currency wise exposures. The significant part of Company's
receivables and payables are in US Dollars which operates as a natural hedge against each other. The Company has a
policy not to borrow in a currency where it has no business exposure. The company is in the process of starting currency
hedging to safeguard currency exchange losses.

Sensitivity Analysis

The following tables demonstrate the sensitivity to a reasonably possible change in USD and GBP exchange rates, with all other
variables held constant. 5% is the sensitivity rate which represents management's assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items that
are not hedged by derivative instruments and adjusts their translation at the year end for a 5% change in foreign currency rates.
The sensitivity analysis includes foreign vendors. A positive number below indicates increase in profit or equity where the INR
strengthens by 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a
comparable impact on the profit.

NOTE-38

CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes paid-up equity share capital and all other equity reserves
attributable to the equity holders. The primary objective of the Company's capital management is to maximize the shareholders'
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 its dividend payment
ratio to shareholders, return capital to shareholders or issue fresh shares. The Company monitors capital using a gearing ratio,
which is net debt divided by its total capital. The Company includes within its net debt the interest bearing loans and borrowings,
trade and other payables less cash and cash equivalents.

In order to achieve this overall objective, the Company's capital management, among other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing the capital during the years ended March 31,2026
and March 31, 2025.

NOTE-39

The Company offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the
recognized amounts and the Company intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously. During the year the Company has not settled any such transactions.

NOTE-48

Expenditure in Foreign Currency

During the year ended 31^st March 2026, the Company has incurred expenses in foreign currency amounting to '1,765.17 Lakhs
for commission on sales,freight, license fees and import of raw material ('1,502.64 Lakhs on commission on sales, freight import
of raw material in FY 24-25)

NOTE-49

Events Occurring after the Balance Sheet Date

The Company has announced a dividend @10% of paid up value amounting to ' 115.44 lakhs

Reasons where variance is more then 25%

(a) Due to increase in trade payables in current year

(b) & (C) Due to increase in profitability in the current year and reduction of debt

(d) Due to increase in sales and profitability in current year

(g) Due to increase in creditors in current year

(i) & (j) Due to increase in profitability in current year

NOTE-51

a. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year

b. The Company does not have any transaction or relationships with any companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of the Companies Act, 1956.

c. The Company has not revalued its Intangible assets during the year. Also, there are no Intangible asset under development
in the Company during the current reporting period.

d. No Loans or Advances are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act,
2013) either severally or jointly with any other person.

e. There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 which have not been recorded in the books of accounts.

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

g. The company submits monthly statement of stock and trade receivable to bank every month and the statements submitted
are in agreement with the books of accounts

h. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

i. 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

j. 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,

NOTE-52

Figures for the previous year have been regrouped / reclassified / reinstated, wherever considered necessary.