1.15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provision

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a current pre-tax rate.
The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liability

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation
that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
The Company does not recognize a contingent liability but discloses its existence in the consolidated financial statements.
Contingent Asset

Contingent asset is not recognised in standalone financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent
asset and is recognized. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.16 REVENUE RECOGNITION

The Company derives revenue primarily from manufacture of Polymers & Co-Polymers business comprising of Styrene,
Divinyl Benzene, Acrylic Acid and Acrylates.

Revenue is recognised upon transfer of control of promised products or services to customers at the amount of transaction
price (net of variable consideration) that reflects the consideration the Company expects to receive in exchange for those
products or services. Revenue is measured based on the fair value of consideration specified in the contract with customer and
excludes amounts collected on behalf of third parties.

Goods and Service Tax (GST) collected on behalf of the government is excluded from Revenue, as it is not an economic benefit
to the Company.

Other Operating Revenue

Other Operating Income consists of revenue generated from export incentives, duty drawbacks, and realized exchange gains.
This income is recognized when performance obligations, as specified are fulfilled, and there is no significant uncertainty
regarding the amount of consideration to be received

1.17 RECOGNITION OF INTEREST AND DIVIDEND INCOME
Interest

Interest income is recognized using the effective interest rate method.

Dividend

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it is
probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend
can be measured reliably.

1.18 TAXES ON INCOME
Current Tax

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/appeals.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the Statement of Profit and
Loss.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized
deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date.

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized outside the Statement of Profit
and Loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income
or directly in equity.

The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at
after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets against
liabilities.

1.19 EMPLOYEE BENEFITS
Short-term obligations

Short-term employee benefits are measured on an undiscounted basis and expensed as the related service is provided. A

liability is recognised for the amount expected to be paid under short-term cash bonus, if the Company has a present legal
or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be
estimated reliably.

Post-employment obligations

The Company operates the following post-employment schemes:

• defined benefit plans such as gratuity; and

• defined contribution plans such as provident fund.

Defined Benefit Plans

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating
to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized
immediately in Statement of Profit and Loss as past service cost.

Defined contribution plans

The Company makes specified monthly contributions towards government administered provident fund scheme. The
Company has no further payment obligations once the contributions have been paid. The contributions are accounted for
as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid
contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments are available.
Other long-term employee benefit obligations

The liabilities for leave are not expected to be settled wholly within twelve months after the end of the period in which the
employees render the related service. They are therefore measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.
The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the
terms of the related obligation. Measurements as a result of experience adjustments and changes in actuarial assumptions are
recognized in Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to
defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected
to occur.

1.20 EARNINGS PER SHARE (EPS)

Basic earnings per share

Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Company by the weighted
average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding
during the year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse
share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after
considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive
potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share
adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive
potential equity shares.

1.21 RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards
or amendments to the existing standards which are applicable to the Company.

4.03 Employee benefits

1) Defined Contribution Plans:

The amounts of contribution to provident fund and ESIC recognized as expenses during the year is Rs. 25.06 Lakhs (March
31, 2024 : Rs.21.13 Lakhs) for the year ended March 31, 2025.

2) Defined Benefit Plans:

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees, as governed by the
Payment of Gratuity Act, 1972 (Gratuity Act). The gratuity plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each
completed year of service. Vesting occurs upon completion of Five (5) continuous years of service as governed by the
Gratuity Act. The Present value of the defined benefit obligations and related current service cost were measured using
the Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date.

The Gratuity Plan is administered by "Polychem Limited Employees Group Gratuity Scheme" & "Life Insurance Corporation
of India" that is legally seperated from the Company.

The company expects to pay Rs. 40,28,120/- in contributions to defined benefit plans in financial year 2025-26.

Investment Risk The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to government bond yields. If the return on plan asset is below this rate, it will create a plan
deficit. Currently the plan has investment with LIC of India.

4.06 Capital Management
Risk management

The Company's primary objectives in managing capital are to safeguard its ability to continue as a going concern while
maximising shareholder value through an optimal capital structure. Capital is actively monitored and comprises total equity,
including share capital, reserves and non-controlling interests. The Company maintains a conservative capital structure with
minimal debt exposure, currently limited only to lease liabilities under Ind AS 116.

For the purpose of the Company's capital management, capital includes capital and all other equity reserves. In order to
maintain or achieve a capital structure that maximizes the shareholder value, the Company allocates its capital for distribution
as dividend or re-investment into business based on its long term financial plans. As at March 31, 2025, the Company has
only one class of equity shares and has no borrowings other than lease liabilities. Hence, there are no externally imposed
capital requirements.

4.07 Financial Instruments

i) Methods & assumptions used to estimate the fair values

The fair values of the financial assets and liabilities are 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.

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

(a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank
balances, deposits, loans to employees, trade payables, other financial liabilities and cash and cash equivalents are
considered to be the same as their fair values.

(b) The fair values for long term security deposits given and remaining non current financial assets were calculated based on
cash flows discounted using a current rate at 9%. They are classified as level 3 fair values in the fair value hierarchy due
to the inclusion of unobservable inputs.

(c) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

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

Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: inputs which are not based on observable market data

4.08 Financial Risk Management

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's
financial risk management policy is set by the Board of Directors. The details of different types of risk and management policy
to address these risks are listed below:

The Company's activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimize any
adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the
Board of Directors / Management.
i) Credit Risk

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge
its obligation as agreed.

Credit risks from balances with banks are managed in accordance with the Company policy. For derivative and financial
instruments, the Company attempts to limit the credit risk by only dealing with reputable banks having high credit-
ratings assigned by credit-rating agencies.

Based on the industry practices and business environment in which the Company operates, management considers that
the trade receivables are in default if the payment are more than 12 months past due.

ii) Liquidity Risk

Liquidity risk is risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements. The Company's principal sources of
liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company
has consistently generated sufficient cash flows from its operations and believes that these cash flows along with its
current cash and cash equivalents and funding arrangements are sufficient to meet its financial obligations as and when
they fall due. Accordingly, liquidity risk is perceived to be low.

Performance Obligations and remaining Performance Obligations

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performances as the
performance obligations relates to contracts where the Company has a right to consideration from a customer in an amount
that corresponds directly with the value to the customer of the Company's performance completed to date.

4.13 Export Benefits
RoDTEP Scheme

The company is also entitled to Remission of Duties and Taxes on Exported Products (RoDTEP) scheme w.e.f 1.1.2021 vide
Public Notice No.19/2015-20 notified on 17.08.2021. Accordingly, the company has recognized benefits of Rs.24.54 lakhs in
the year ended March 31, 2025 (March 31, 2024 - Rs. 41.95 Lakhs).

4.14 Leases
As Lessee

The Company's lease asset primarily consist of leases for Office Space.

(i) The Amount recognised in the Standalone statement of profit and loss in respect of right of use asset and lease obligation

(iv) Rental expense recorded for short-term leases was Rs.11.90 Lakhs for the year ended March 31,2025 (March 2024-
Rs.12.26 Lakhs).

(v) The maturity analysis of lease liabilities are disclosed in Note no. 4.08 (ii). The Company does not face a significant
liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease
liabilities as and when they fall due.

(vi) Certain lease agreements are subject to escalation clause and with extension of lease term options.

(vii) Future lease payments which will start from April 1, 2025 is Rs. NIL . (March 31, 2024: Rs. Nil)

As a Lessor

Rental Income on assets given on operating lease is Rs.5.78 Lakhs for the year ended March, 2025 (March 31, 2024:
Rs.5.78 Lakhs)

4.18 Additional Regulatory Information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

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

(b) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the current or previous year.

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

(d) 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:

i. 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

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

(e) 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:

i. 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

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

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

(g) The Company has no borrowings from banks and financial institutions on the basis of security of current assets.

(h) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government
or any government authority.

(i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(j) The Company has not entered into any scheme of arragment which has an accounting impact on current or previous financial
year.

4.19 Supplementary statutory information required to be given pursuant to schedule V of Regulation 34(3) and 53(f) of the
SEBI (Listing Obligation & Disclosure Requirement) Regulations, 2015:

The company has complied with the requirements to the extent applicable, which forms part of annual report.

4.20 The provisions of the Companies Act, 2013 and rules made thereunder requires that the Company uses only such accounting
software for maintaining its books of account which has a feature of recording audit trail for each and every transaction,
creating an edit log of each change made in books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled or tampered with effect from April 1, 2023.

Further the audit trail has been preserved by the company as per statutory requirements for record retention.

The Company has taken all necessary steps to be compliant with the above requirement of audit trail functionality since it's
effective date.

4.21 Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards which are applicable to the Company.

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

For Nayan Parikh & Co.

Chartered Accountants Parthiv T. Kilachand Managing Director (DIN No.: 00005516)

Firm Registration No.: 107023W Nandish T. Kilachand Director (DIN No.:00005530)

Deepali N Shrigadi Kanan V. Panchasara Chief Financial Officer

Partner Deepali V. Chauhan Company Secretary & Compliance Officer

Membership No.: 133304

Place: Mumbai Date: May 14, 2025 Place: Mumbai Date: May 14, 2025