m. Provisions, contingent liabilities and contingent assets

Provisions are recognised when present obligations as a result of a past event will probably lead to an
outflow of economic resources and amounts can be estimated reliably. Timing or amount of the outflow
may still be uncertain. A present obligation arises when there is a presence of a legal or constructive
commitment that has resulted from past events, for example, legal disputes or onerous contracts.
Provisions are not recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present obligation, based
on the most reliable evidence available at the reporting date, including the risks and uncertainties
associated with the present obligation. Provisions are discounted to their present values, where the
time value of money is material.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect
to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of
the related provision.

All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

In those cases where the outflow of economic resources as a result of present obligations is considered
improbable or remote, no liability is recognised.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control
of the Company or

• Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.

Contingent assets are not recognised. However, when inflow of economic benefits is probable, related
asset is disclosed.

n. Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian
Accounting Standard 19- Employee Benefits.

Defined benefit plans
Gratuity

The Company operates one defined benefit plan for its employees, viz. gratuity. The cost of providing
benefits under this plan is determined on the basis of actuarial valuation at each year-end using the
projected unit credit method. Actuarial gain and loss for the defined benefit plan is recognized in full in
the period in which they occur in other comprehensive income.

Other long-term benefits

Accumulated leave expected to be carried forward beyond twelve months, is treated as long term
employee benefit. Such long term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the year end. Accumulated leave, which is expected
to be utilised within the next 12 months, is treated as short term employee benefit.

Liability under continuity linked key resource and deferred salary schemes is provided for on actuarial
valuation basis, which is done as per the projected unit credit method at the end of each financial
period.

Defined contribution plans
Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident
Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution
paid or payable is recognised as an expense in the period in which services are rendered by the
employee.

Short-term employee benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or
payable for the period during which services are rendered by the employee.

o. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net 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 effects of all dilutive potential equity shares.

p. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting done to the chief
operating decision maker. The chief operating decision maker is responsible for allocating resources and
assessing performance of the operating segments of the Company.

3. Significant accounting judgments, estimates and assumptions

When preparing the financial statements, management undertakes a number of judgments, estimates
and assumptions about recognition and measurement of assets, liabilities, income and expenses.

The actual results are likely to differ from the judgments, estimates and assumptions made by
management, and will seldom equal the estimated results.

Information about significant judgments, estimates and assumptions that have the most significant
effect on recognition and measurement of assets, liabilities, income and expenses are discussed below:

Significant judgments:

(i) Evaluation of indicators for impairment of non-financial assets

The evaluation of applicability of indicators of impairment of non-financial assets requires assessment of
several external and internal factors which could result in deterioration of recoverable amount of the
assets.

(ii) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability
of the future taxable income against which the deferred tax assets can be utilised. The recognition of
deferred tax assets and reversal thereof is also dependent upon management decision relating to timing
of Availment of tax holiday benefits available under the Income Tax Act, 1961 which in turn is based on
estimates of future taxable profits.

Sources of estimation uncertainty:

(i) Provisions

At each balance sheet date, basis the management judgment, changes in facts and legal aspects, the
Company assesses the requirement of provisions against the outstanding warranties and guarantees.
However, the actual future outcome may be different from management's estimates.

(ii) Fair valuation of financial instruments

Management applies valuation techniques to determine the fair value of financial instruments (where
active market quotes are not available). This involves developing estimates and assumptions consistent
with how market participants would price the instrument.

IV. Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares with paid up value of Rs.10 per share. Each holder of equity
shares is entitled to one vote per share on all resolutions submitted to shareholders. They have right to
participate in the profits of the company, if declared by the Board as interim dividend and recommended by
the Board and declared by the members as final dividend. They are also entitled to bonus/right issue, as
declared by Company from time to time. They have right to receive annual report of the Company, beside
other rights available under the Companies Act and Listing Regulations.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining
assets of the Company, beside other rights available under the Companies Act.

The distribution will be in proportion to the number of equity shares held by the shareholders.

V. Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment
being received in cash, by way of bonus shares and shares bought back for the period of 5 years immediately
preceding the balance sheet date

The Company has not issued any shares pursuant to contract(s) without payment being received in cash. No
bonus shares have been issued in preceding 5 years. The Company has not undertaken any buy back of
shares.

Additional Disclosures:

i. Nature of Dilutive Instruments:

As on the reporting date, the Company had 35, 00,000 outstanding share warrants, which are
considered potential equity shares. The impact of these warrants has been considered for the
purpose of diluted earnings per share using the Treasury Stock Method

ii. Methodology Used:

In calculating diluted earnings per share, it is assumed that the share warrants are converted
into equity shares. The proceeds receivable upon conversion (Rs. 122 per warrant, of which 25%
is already received) are assumed to be used to buy back shares at the market price as on 28
March 2025 (Rs 126), resulting in a net increase of 9,58,333 shares.

iii. Compliance:

The calculation of EPS has been made in accordance with Paragraphs 10-49 of Ind AS 33, and
the presentation aligns with the requirements of Division II of Schedule III to the Companies
Act, 2013 for companies following Ind AS.

39. Lease related disclosures

The Company has lease for office building and factory lease hold land. With the exception of short-term
leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-
of-use asset and a lease liability as a borrowings. Variable lease payments which do not depend on an
index or a rate are excluded from the initial measurement of the lease liability and right of use assets.
The Company classifies its right-of-use assets in a consistent manner to its property, plant and
equipment.

For leases previously classified as finance leases the entity recognised the carrying amount of the lease
asset and lease liability immediately before transition as the carrying amount of the right of use asset
and the lease liability at the date of initial application. The measurement principles of Ind-AS 116 are
only applied after that date.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to
sublease the asset to another party, the right-of-use asset can only be used by the Company. Some
leases contain an option to extend the lease for a further term. The Company is prohibited from selling
or pledging the underlying leased assets as security. For leases over office building the Company must
keep those properties in a good state of repair and return the properties in their original condition at the
end of the lease.

40. (A) Financial instruments

A. Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial
position are classified into three Levels of a fair value hierarchy. The three levels are defined
based on the observability of significant inputs to the measurement, as follows:

• Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

• Level 2: The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximise the use of observable market data
rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.

40. (B) Financial Risk Management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of
directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. This note explains the sources of risk which the entity is exposed to and how
the entity manages the risk and the related impact in the financial statements.

A. Fair values hierarchy:

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The
company is exposed to this risk for various financial instruments, for example by granting loans and
receivables to customers, placing deposits, etc. The company's maximum exposure to credit risk is
limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

Credit risk management:

Credit risk rating -

The Company assesses and manages credit risk based on internal credit rating system, continuously
monitoring defaults of customers and other counterparties, identified either individually or by the
company, and incorporates this information into its credit risk controls. Internal credit rating is
performed for each class of financial instruments with different characteristics. The Company assigns
the following credit ratings to each class of financial assets based on the assumptions, inputs and
factors specific to the class of financial assets.

A: Low
B: Medium
C: High

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly
rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables:

Company's trade receivables are considered of high quality and accordingly no life time expected
credit losses are recognised on such receivables.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes advances to employees. Credit risk related
to these other financial assets is managed by monitoring the recoverability of such amounts
continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.

B. Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due. Due to the nature of the business, the Company maintains flexibility in
funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the

C. Market Risk:

a. Interest rate risk

The Company is not exposed to changes in market interest rates as all of the borrowings are
at fixed rate of interest. Also the Company's fixed deposits are carried at amortised cost and
are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS
107, since neither the carrying amount nor the future cash flows will fluctuate because of a
change in market interest rates.

b. Price risk
Exposure:

The Company's exposure to price risk arises from investments held and classified as FVTPL. To
manage the price risk arising from investments in mutual funds and equity investment, the
Company diversifies its portfolio of assets.

Sensitivity:

Below is the sensitivity of profit or loss and equity to changes in fair value of investments,
assuming no change in other variables:

B. Commitments (net of advance):

Estimated amount of contracts remaining to be executed on capital account Rs. 912.69 Lakh,
(Previous year: 31 March 2024: Rs. 3963.68 Lakh).

44. Unclaimed amount in respect of debentures and excess share application money refundable Rs. 11.64
lakhs, (Previous year: 31 March 2024: 11.64 lakhs) is required to be transferred to the "Investor
education and protection fund" in terms of section 125 of the companies act, 2013. The company is
taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

45. Authorisation of financial statements

These financial statements for the year ended 31 March 2025 were approved by the Board of Directors on
29th May 2025.

46. The figures have been rounded off to the nearest Rs. lakhs up to two decimals.

47. Derivative instruments and unhedged foreign currency exposure

The Company has no outstanding derivative instrument at the year-end. The amount of foreign currency
exposure that are not hedged by derivative instruments or otherwise are as under:

49. Additional Regulatory Information:

i. Company has freehold immovable property at Bikaner (Rajasthan) during the year and title deed of
freehold property at Bikaner are held in the name of Company.

ii. The Company has not revalued its Property, Plant and Equipments during the year.

iii. The company has not made any loan or advances in the nature of loans to promoters, directors,
KMPs, and the related parties.

iv. The company do not own or hold any Benjamin Property under the Benjamin Transactions
(Prohibition) Act, 1988(45of 1988) and the rules made there under.

v. The statements of current assets filed by the company with banks are in agreement with the books of
accounts.

vi. The company is not declared a Willful Defaulter by any bank or financial institutions.

vii. The company do not have any transactions with companies stuck off under section 248 of the
companies Act, 2013 or section 560 of companies Act, 1956.

viii. All Registration of charges or satisfaction are registered with Registrar of Companies (ROC).

ix. No Scheme(s) of Arrangements has been approved by the competent authority in terms of section
230 to 237 of the companies Act, 2013.

x. The company has utilised long term borrowed fund for long term purpose only and short term fund
for short term purpose only.

xi. During the year no income was surrendered or disclosed as income in the Tax Assessments

xii. The company has not dealt in Crypto Currency during the year.

xiii. The company is not having downstream companies or layers of companies prescribed under clause
(87) of section 2 of the Act read with companies (Restriction on number of layers) Rules, 2017.

xiv. The Company has not advanced or loaned or invested funds to any other person or entities with an
understanding that the intermediary will invest or provide any guarantee, security or the like to or on
behalf of ultimate beneficiaries.

Summary of significant accounting policies and accompanying notes form an integral part of these financial
statements.

As per our report of even date. For and on behalf of Board of Directors of Lords Chloro Alkali Limited

For Nemani Garg Agarwal & Co Madhav Dhir Ajay Virmani

Chartered Accountants Whole-time Director Managing Director

Firm Registration No. 010192N DIN 07227587 DIN 00758726

CA. Jeetmal Khandelwal Pankaj Mishra Rajiv Kumar

Partner Company Secretary Chief Financial Officer

Membership No. 074267 M.No. A40550 M. No. 508277

UDIN : 25074267BMOXYU2618

New Delhi
Date: 29-05-2025