j. Provisions, Contingent Liabilities and Contingent Assets(i) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources will be required to settle
the obligation and a reliable estimate can be made. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.

If the effect of time value of money is material, provisions are discounted using a current pre
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.

(ii) Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount cannot be made.

(iii) Contingent Assets

Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are
disclosed in the notes to the financial statements.

k. Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. This condition is regarded as met
only when the asset is available for immediate sale in its present condition subject only to terms
that are usual and customary for sale of such asset and its sale is highly probable. For the sale to
be highly probable, the appropriate level of management must be committed to a plan to sell the
asset and an active programme to locate a buyer and complete the plan must have been initiated.

l. Revenue Recognition(i) Sale of goods

- Revenue from the domestic sales are recognised net of returns and allowances, trade
discounts and volume rebates upon delivery which is when the control of the goods passes
to the Customer and performance obligation is met at a point in time.

- Revenue from the export sales are recognised net of returns and allowances, trade discounts
and volume rebates upon delivery, usually on the basis of dates of bill of lading which is
when the control of the goods passes to the Customer and performance obligation is met
at a point in time.

(ii) Sale of Service

Revenue is recognised from sale of services and services rendered by the Company pertaining
to scaling of production process, engineering assistance, pilot projecting etc, when the
performance obligation is satisfied and the services are rendered in accordance with the terms
of customer contracts.

(iii) Export incentives

Revenue from export incentives are accounted on export of goods if the entitlements can be
estimated with reasonable assurance and conditions precedent to claim are fulfilled.

(iv) Interest Income

(a) Interest income is recognised as the interest accrues (using the effective interest rate, that
is, the rate that exactly discounts estimated future cash receipts through the expected life
of the financial instrument to the net carrying amount of the financial asset).

(b) Interest income on fixed deposits with banks is recognised on time basis.

(v) Dividend Income

Dividend income on investments is recognised when the right to receive dividend is established.

m. Employee Benefits

Liabilities in respect of employee benefits to employees are provided for as follows:

(i) Short term employee benefits:

Liabilities for wages, salaries, bonus and medical benefits including non-monetary benefits
that are expected to be settled wholly within twelve months after the end of the period in
which the employees render the related service are recognised in respect of employees'
service up to the end of the reporting period and are measured at the amounts expected to
be incurred when the liabilities are settled. The liabilities are presented as current employee
benefit obligations in the balance sheet.

(ii) Post-employment benefits:

Defined contribution plans

Payments to defined contribution plans for eligible employees in the form of superannuation
fund and the Company's contribution to Provident Fund are recognised as an expense in the
Statement of Profit and Loss as the related service is provided.

Defined benefit plans

The Company has an obligation towards gratuity, a defined benefit retirement plan covering
eligible employees. The Company's net obligation in respect of defined benefit plan is calculated
by estimating the amount of future benefit that employees have earned in current and prior

periods, after discounting the same. The calculation of defined benefit obligation is performed
by a qualified actuary using the projected unit credit method. The defined benefit obligation
recognised in the Balance Sheet represent the present value of the defined benefit obligation
as reduced by the fair value of plan assets. Any defined benefit asset (negative defined benefit
obligation resulting from this calculation) representing the present value of available refunds
and reductions in future contributions to the plan is recognised.

All expenses represented by current service cost, past service cost, if any, and net interest
expense / (income) on the net defined benefit liability / (asset) are recognised in the Statement
of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising
actuarial gains and losses are recognised immediately in Other Comprehensive Income (OCI).

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognised immediately
in the Statement of Profit and Loss. The Company recognises gains and losses on the settlement
of a defined benefit plan when the settlement occurs.

(iii) Other long-term employee benefits

Other long term employee benefits represent liabilities for earned leave that are not expected
to be settled wholly within 12 months after the end of the period in which the employees
render the service. These liabilities are measured as the present value of expected future
payments to be made in respect of services provided by the employees up to the end of the
reporting period using the projected unit credit method. Remeasurements are recognised in
the Statement of Profit and Loss in the period in which they arise. Actuarial gains and losses in
respect of such benefits are charged to the Statement of Profit and Loss in the period in which
they arise.

n. Share-based payment transactions

Employees Stock Options Plans (“ESOPs”): The fair value of options granted to employees is
recognised as an employee expense, with a corresponding increase in equity, over the period that
the employees become unconditionally entitled to the options. The expense is recorded for each
separately vesting portion of the award. The increase in equity recognised in connection with share
based payment transaction is presented as a separate component in equity under “Employee
Stock Options Outstanding”.

o. Borrowing Cost

Borrowing costs are interest and other costs that the Company incurs in connection with the
borrowing of funds and is measured with reference to the effective interest rate applicable to
the respective borrowing. Borrowing costs also include exchange differences on foreign currency
borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs pertaining to the period from commencement of activities relating to the
construction / development of qualifying asset till the time all activities necessary to prepare the

qualifying asset for its intended use or sale are complete are capitalised. Any income earned from
temporary investment of borrowed funds is deducted from borrowing costs incurred.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready to
its intended use or sale.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

p. Foreign currency transactions / translations

Transactions in foreign currencies are initially recorded at the functional currency spot rate of
exchange prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies and remaining unsettled at the
reporting date are translated into the functional currency at the exchange rate prevailing on the
reporting date.

Non- monetary items that are measured based on historical cost in a foreign currency are not
translated.

Exchange differences arising on settlement of transactions or translation of monetary assets and
liabilities at rates different from those at which they were translated on initial recognition during the
period or in the previous financial statements are recognised in the Statement of Profit and Loss
in the year in which they arise except for exchange differences recognised as a part of qualifying
assets.

q. Income tax

Income tax expense comprises current and deferred tax. It is recognised in the Statement of Profit
and Loss except to the extent that it relates to items recognised directly in other equity or in other
comprehensive income, in which case, the tax is also recognised directly in other equity or other
comprehensive income, respectively.

(i) Current Tax

Current tax is determined as the amount of tax payable or recoverable in respect of taxable
income or loss for the year and any adjustment to the tax payable in respect of previous years.
It is measured using tax rates that are enacted or substantively enacted at the reporting date.

Minimum Alternate Tax (MAT) is accounted as current tax when the Company is subjected to
such provisions of the Income Tax Act, 1961. However, credit of such MAT paid is available when
the Company is subject to tax as per normal provisions in the future.

Current tax assets and liabilities are offset only if, the Company:

a) has a legally enforceable right to set off the recognised amounts; and

b) Intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

(ii) Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and amounts used for taxation purposes.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are amounts of income taxes in future periods in respect of deductible temporary differences,
unused tax losses, and unused tax credits to the extent it is probable that future taxable
profits will be available against which they can be used. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or all of the deferred tax asset to be
utilised.

Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, using tax rates enacted or substantively enacted at the reporting
date.

Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the
extent that it has become probable that future taxable profits will be available against which
they can be recovered.

The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Company expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if:

a) The Company has a legally enforceable right to set off current tax assets against current
tax liabilities; and

b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity.

MAT (Minimum Alternate Tax) credit is recognised as an asset only when, and to the extent,
there is convincing evidence that the Company will pay normal income tax during the specified
period and the said is created by way of credit to the Statement of Profit and Loss and shown
as MAT credit entitlement. The Company reviews carrying amount of MAT credit at each
reporting date and writes down the same to the extent that there is no longer convincing
evidence to the effect that the Company will pay normal income tax during the period.

r. Earnings per Share

Basic earnings per share are computed by dividing the net profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the net profit / (loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of equity shares outstanding during the year
adjusted for the effect of all dilutive potential equity shares.

s. Dividend

The Company recognises a liability for any dividend declared but not distributed at the end of
the reporting period, when the distribution is authorised and the distribution is no longer at the
discretion of the Company on or before the end of the reporting period. As per Corporate laws
in India, a distribution is authorized when it is approved by the shareholders. A corresponding
amount is recognised directly in other equity.

t. Segment Reporting

Operating Segments are reported in a manner consistent with the internal reporting provided to
the Chief Operating Decision Maker (CODM) which is a single business segment in Fine Chemicals.

u. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed
at the end of the reporting period, the impact of such events is adjusted within the financial
statements. Otherwise, events after the balance sheet date of material size or nature are only
disclosed.

v. Exceptional items

An item of income or expense which by its size, nature or incidence requires disclosure in order to
improve an understanding of the performance of the Company is treated as an exceptional item
and the same is disclosed in the statement of profit and loss and in the notes forming part of the
financial statements.

4.2 The Company has carried out valuation of said property as on October 8, 2025 amounting to ' 558
lakh. In the opinion of the management there is no major change in the fair value of the property as
on March 31, 2026.

4.3 Refer Note 22.1, 22.2, 25.1 and 25.2 for information on investment property pledged as security for
borrowings.

6.1 Includes ' 10.70 lakh (March 31, 2025: Nil) towards fair value of employee stock options under CFS
Employee Stock Option Plan, 2021 (ESOP 2021) given to certain employees of CFS Do Brasil Industria,
Comercio, Importacao E Exportacao De Aditivos Alimenticios LTDA (Refer Note 21.4).

6.2 The Company had invested ' 56.01 lakh (March 31, 2025 : ' 56.01 lakh) in the share capital of Solentus
North America Inc., its wholly owned subsidiary company (“the subsidiary”). The Company has
decided to close the said subsidiary and has initiated the process of closure, which is delayed due to
technical reasons. Consequently, the Company has made full provision for impairment in the value of
said investment.

6.3 Includes ' 28.98 lakh (March 31, 2025: Nil) towards fair value of employee stock options under CFS
Employee Stock Option Plan, 2021 (ESOP 2021) given to certain employees of CFS North America
LLC (Refer Note 21.4).

6.4 Includes ' 115.31 lakh (March 31, 2025: ' 115.31 lakh) towards fair value of financial guarantees issued
to a Bank in relation to loan availed by Dresen Quimica S.A.P.I. de C.V. (Dresen Quimica). 50,820,277
Equity Shares of Dresen Quimica are pledged in respect of the aforesaid loan.

6.5 The Company had participated in 50,000 shares of CFS De Mexico Blends S.A.P.I.DE C.V. (CFS Blends)
its wholly owned subsidiary for which the subscription amount was not remitted.

The cost of investment included ' 126.58 lakh (March 31, 2025: ' 126,58 lakh) towards fair value of
financial guarantees issued to a Bank in relation to loan availed for acquisition of 33.5% stake in
Dresen Quimica. The aforesaid 50,000 shares of CFS Blends & 50,820,277 equity shares of Dresen
Quimica held by the Company were pledged in respect of the loan.

The reverse merger of CFS Blends with its subsidiary Dresen Quimica with effect from
February 28, 2025 was approved on May 21, 2025 by the concerned authorities.

With effect from February 28, 2025, CFS Blends ceased to be the subsidiary of the Company and
Dresen Quimica became a wholly owned subsidiary of the Company. The Company's shareholding
in CFS Blends was extinguished and no new shares were issued by Dresen Quimica. Even though,
the equity shares held by CFS Blends in Dresen Quimica were extinguished, the shareholding of
50,820,277 shares in Dresen Quimica by the Company remained unchanged. The cost of investment
in CFS Blends amounting to ' 126.58 lakh has been subsumed in the cost of investment in Dresen
Quimica.

The said shareholding in Dresen Quimica is pledged as a security for loan borrowed by Dresen Quimica
alongwith a corporate guarantee of USD 11.18 million.

The cost of invetsment also includes recognition of fair value of put option available to erstwhile non¬
controlling interest amounting to ' 615.15 lakh. The corresponding financial liability on extinguishment
of this put option amounting to ' 247.8 lakh was transferred to “Other Equity” (Refer Note 21).

6.6 Includes ' 125.33 lakh (March 31, 2025: ' 125.33 lakh) towards fair value of financial guarantees issued
to a Bank in relation to loan availed by CFS Europe S.p.A.

6.7 ' 35.53 lakh (March 31, 2025: ' 6.86 lakh) is towards fair value of employee stock options under
CFS Employee Stock Option Plan, 2021 (ESOP 2021) and CFS Employee Stock Option Scheme, 2018
(ESOP 2018) given to certain employees of Industrias Petrotec de Mexico S.A. de C.V. (Refer Note
21.4).

6.8 Includes ' 6.87 lakh (March 31, 2025: ' 6.87 lakh) towards fair value of employee stock options under
CFS Employee Stock Option Scheme, 2018 (ESOP 2018) given to an employee of CFS Wanglong
Flavours (Ningbo) Co. Ltd. (Refer Note 21.4).

6.9 The Company had invested ' 17.89 lakh in the share capital of CFS Pahang Asia Pte Ltd.
(“the subsidiary”). The said subsidiary is dissolved during the year with effect from
November4, 2025. Impairment in the value of investment amounting to'17.89 lakh was accounted during the
financial year 2024-25. Pursuant to the dissolution, CFS Pahang Asia Pte Ltd ceased to be a subsidiary
of the Company with effect from November 4, 2025.

6.10 There are no operations in CFS PP (M) SDN BHD during the year. No amount towards subscription of
shares has been remitted as on March 31, 2026.

6.11 ' 3.78 lakh (March 31, 2025: Nil) is towards fair value of employee stock options under CFS Employee
Stock Option Plan, 2021 (ESOP 2021) given to an employee of Vitafor Invest NV (Refer Note 21.4).

6.12 On February 24, 2025, the Company and certain significant shareholders of Vinpai S.A. ('Vinpai'),
including its founders entered into a Share Purchase Agreement for acquisition by the Company
of 2,723,316 ordinary shares of Vinpai at Euro 3.60 per equity share. The consideration payable
for the acquisition as per SPA was determined at Euro 9,803,937.60 equivalent to ' 10,170.60 lakh.
On November 30, 2025, the said consideration was discharged by issue of 4,106,181 fresh equity
shares of the Company having a face value of ' 1 each and securities premium of ' 246.69 per share.
The cost of investment also includes ' 405.84 lakh towards expenses incurred for acquisition of Vinpai.
Further, the Company invested Euro 3.30 million in Vinpai through subscription to 3,300 listed
secured convertible bonds having a subscription price of € 1,000 per bond issued by Vinpai on
February 24, 2025. These bonds matured on December 31, 2025, and were converted into 1,100,000
new ordinary shares of Euro 3 per equity share of Vinpai at its fair value of ' 4,157.17 lakh.

Pursuant to the issue of shares and conversion of bonds by the Company, the Company now holds
3,823,316 shares of Vinpai representing 83.82% of Vinpai's outstanding share capital.

This acquisition has resulted into an open offer by the Company to the minority shareholders of
Vinpai as per the local regulations. Consequently, an open offer will be made for 711,363 equity shares
at Euro 3.60 per equity share after approval of the concerned authorities.

On March 30, 2026 , Company has transferred Euro 2,560,907 equivalent to ' 2,791.77 lakh to an
escrow account for the aforesaid offer (Refer Note 15).

6.13 During the year, the Company has made an investment of ' 490.97 lakh to acquire 49% equity
shares in CleanMax Sundarban Private Limited, a Special Purpose Vehicle (SPV) formed jointly with
Clean Max Enviro Energy Solutions Private Limited, for setting up of 3.3 MW wind-solar hybrid
power plant at Dahej, Gujarat. As per the Shareholder's Agreement, the Company does not have any
significant influence over the SPV. Consequently, the SPV has not been considered as an associate
for accounting purposes. The change in fair value of investment amounting to ' 58.88 lakh has been
recognised in profit or loss. (Refer Note (31(b))

6.14 The provision for impairment in the value of investments represents the provision in respect of
investments in the following:

7.1 The loan to subsidiaries have been made for general corporate purpose of each subsidiary.
These loans are given at rates comparable to the average commercial rate of interest and in
compliance with the provision of Companies Act, 2013.

7.2 No loans are due from Directors or other officers of the Company either severally or jointly
with any other person or amount due by firms or private companies in which any director is a
partner, a director or a member.

7.3 The Company had given loans of ' 189.18 lakh (' 242.27 lakh including interest of ' 53.09
lakh (Refer Note 17) to Solentus North America Inc., its wholly owned subsidiary company.
The Company had also provided advances of ' 15.79 lakh to Solentus North America Inc.
(Refer Note 17). The Company has decided to close the said subsidiary and has initiated the
process of closure, which is delayed due to technical reasons. Consequently, the Company has
made full provision for the said loans and advances.

12.1 The Company invested Euro 3.30 million in Vinpai S.A. (“Vinpai”) through subscription to 3,300
listed secured convertible bonds having a subscription price of Euro 1,000 per bond issued by
Vinpai on February 24, 2025. These bonds matured on December 31, 2025, and were converted
into 1,100,000 new ordinary shares of Euro 3 per equity share of Vinpai (Refer Note 6.12).

13.3 Details of loss allowance

The Company has used practical expedient by computing expected credit loss allowance for
trade receivables (excluding subsidiaries) by taking into consideration historical credit loss
experience and adjusted for forward looking information. The expected credit loss is calculated
on the basis of ageing of the days, the receivables are due and the expected credit loss rate.
The movement in loss allowance is as follows:

13.4 The carrying amount of trade receivables include receivables discounted with banks, which
are with re-course to the Company. Accordingly, the Company continues to recognise the
transferred receivables in its Balance Sheet. The carrying amount of these receivables is ' 248.47
lakh (March 31, 2025: ' 426.84 lakh). The corresponding carrying amount of associated liabilities
are recognised as short term borrowings. (Refer Note 25.2).

19.1 The Company intends to dispose off freehold land situated at Pali in the next 12 months.
This land was not utilised by the Company for its operations. No impairment loss is recognised
on reclassification of the land as held for sale, as the management expects that the fair value
(estimated based on the recent market prices of similar properties in similar locations) less costs
to sell is higher than the carrying amount.

d) Rights, preferences and restrictions attached to Equity Shares

The Company has only one class of shares having par value of ' 1 per share. Each holder of
Equity Shares is entitled to one vote per share. The Company declares and pays dividends in
Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company,
the holders of Equity Shares are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.

f) Shares reserved for issue under options outstanding as at the end of the year on un-issued
share capital:

i) The Company has 4,500,000 (March 31, 2025: 4,500,000) Equity Shares reserved for issue under
Employee Stock Option Plan, 2021 as at March 31, 2026. As at March 31, 2026, the Company has
issued grant letters for 1,623,000 options under the said plan. (Refer Note 34.2.1).

ii) The Company has 4,400,000 (March 31, 2025: 4,400,000) Equity Shares reserved for issue under
Employee Stock Option Plan, 2020 as at March 31, 2026. As at March 31, 2026, the Company has
issued grant letters for 3,912,096 options under the said plan. 3,845,176 options (March 31, 2025:
3,869,596) are unexercised as at March 31, 2026. (Refer Note 34.2.2).

iii) The Company has 1,500,000 (March 31, 2025: 1,500,000) Equity Shares reserved for issue under
Employee Stock Option Scheme, 2018 as at March 31, 2026. As at March 31, 2026, the Company
has issued grant letters for 621,000 options under the said scheme. 40,000 options (March 31,
2025: 181,275) are unexercised as at March 31, 2026 (Refer Note 34.2.3).

h) Increase in Authorised Share Capital

Pursuant to the resolutions passed by the Board of Directors on April 3, 2026, and subsequently
approved by the Shareholders on May 7, 2026, the Company has increased its Authorised Capital
from ' 215,000,000/- (comprising 215,000,000 equity shares of ' 1 each) to ' 250,000,000/-
(comprising 250,000,000 equity shares of ' 1 each).

i) Capital Raised through Rights Issue

On November 22, 2024 the Board of Directors of the Company approved the rights issue of
equity shares for an amount upto ' 2,250,000,000/-. Pursuant to it the Securities Issue and
Allotment Committee of the Board at its meeting held on January 8, 2025 declared a rights issue
of 20,426,244 equity shares of ' 1 each for a subscription of ' 110 per share (along with a share
premium of ' 109 per equity share) aggregating to ' 2,246,886,840/- for a right entitlement of
5 right equity shares for 41 equity shares.

The Securities Issue and Allotment Committee of the Board at its meeting held on
January 31, 2025, took on record the Basis of Allotment and approved the allotment of
20,425,805 Rights Equity Shares to successful applicants for a total amount of ' 224,68,38,550.
The aforesaid allotment does not include the entitlements of 439 Rights Equity Shares which
have been kept in abeyance.

j) Shares in abeyance out of the Right Issue made during the year

The right entitlement of 439 equity shares relating to original holding of 3600 equity shares of
one of the shareholders has been kept in abeyance due to the legal dispute of the ownership
of the shareholder. The shares against this right entitlement will be issued on resolution of the
dispute.

k) Utilization of Rights Issue Proceeds

During the year ended March 31, 2025 the Company raised ' 22,468.39 lakh through a rights
issue of equity shares at ' 110 per share. The proceeds of the rights issues including interest
earned of ' 187.05 lakh were utilised in accordance with the letter of offer and the details are
forth below:

NATURE AND PURPOSE OF RESERVES:21.1 Equity component of Foreign Currency Convertible Bonds (FCCBs)

At the time of initial recognition, FCCBs issued by the Company are split into equity and liability
component and presented under other equity and non-current financial liabilities respectively.

21.2 Capital Reserve

Capital Reserve comprises of amount received pursuant to preferential share warrants forfeited
by the Company on account of warrants not exercised by the allottees.

21.3 Securities Premium

i. The Securities premium account has been created to record the premium on issue of Equity
Shares.

ii Securities premium has been utilized to write off expenses incurred in connection with the
Rights Issue, in accordance with the provisions of Section 52 of the Companies Act, 2013.

21.4 Employee Stock Option Outstanding

The Company has Employee Stock Option Scheme / Plan under which options to subscribe
to the Company's shares have been given to certain employees of the Company / Group.
This reserve is used to recognise the value of equity settled share based payments provided to
the employees, including Key Management Personnel, as a part of their remuneration.

The addition to Employee Stock Options Outstanding during the year is on account of CFS
Employees' Stock Option Plan, 2021.

21.5 General Reserve

General Reserve is created from time to time by way of transfer of profits from Retained Earnings.

21.6 Effective Portion of Cash Flow Hedges

The Company uses foreign exchange forward contracts as part of its risk management policy
for managing foreign currency risk. The effective portion of change in the fair value of forward
contracts classified as cash flow hedges is recognised in other comprehensive income and
accumulated in other equity under cash flow hedge reserve.

21.7 Reserve on conversion of FCCBs

Pertains to conversion of FCCBs during financial year 2023-24.

22.1 Term Loans from Banks in Rupees - Secured

(a) ' 1,829.41 lakh (March 31, 2025: ' 2,401.48 lakh) secured by first pari passu charge by way of
hypothecation of all current assets of the Company, both present and future. Further secured by
first pari passu charge by an equitable mortgage on entire movable and immovable fixed assets
of the Company, both present and future, excluding assets charged exclusively to other lenders.
The borrowings are repayable through structured instalments up to May 2029. The current rate
is at a spread ranging from 75 basis points to 100 basis points over 6 months /1 year MCLR,
subject to maximum 9.25% p.a.

(b) ' 88.78 lakh (March 31, 2025: ' 141.02 lakh) secured by way of hypothecation of vehicle.
The borrowings are repayable through structured instalments up to July 2028. The current
interest rate is ranging from 7.25% per annum to 8.70% p.a.

(c) ' 4,352.21 lakh (March 31, 2025: Nil) secured by second pari passu charge over Company's current
assets, both present and future. Further, secured by second pari passu charge by an equitable
mortgage on the entire movable and immovable fixed assets of the Company, both present and
future, excluding assets exclusively charged to other lenders. The loan is repayable in 36 equal
monthly instalments by February 2030 commencing after a moratorium of 12 months from the
date of disbursement. The current interest rate is 10% p.a.

22.2 Term Loans from others- Secured(a) In Foreign Currency

i) ' 8,273.99 lakh (March 31, 2025: ' 9,573.81 lakh) secured by first pari passu charge over
entire movable and immovable fixed assets at Plot No. Z/96/D at Dahej SEZ. The loan is
repayable in remaining 7 semi-annual instalments by July 2029. The current interest rate is
at spread of 443 basis points over 6 months SOFR.

ii) ' 9,377.78 lakh (March 31, 2025: ' 9,942.63 lakh) secured by first pari passu charge over
entire movable and immovable fixed assets at Plot No. Z/96/D at Dahej SEZ. The loan is
repayable in remaining 20 structured quarterly instalments by January 2031. The current
interest rate is at a spread of 500 basis points over 3 months SOFR (including additional
100 basis points as per terms and conditions).

(b) In Rupees

' 4,297.17 lakh (March 31, 2025: Nil) secured by first pari passu charge over Company's current
assets, both present and future. Further, secured by first pari passu charge by an equitable
mortgage on the entire movable and immovable fixed assets of the Company, both present and
future, excluding assets exclusively charged to other lenders. The said working capital facilities
are additionally guaranteed by Mr. Ashish Dandekar, Promoter, Chairman & Managing Director
of the Company. The loan is repayable in remaining 29 monthly instalments by August 2028.
The current interest rate is at a spread of 405 basis points over 1 year VCL Index Rate.

22.3 The balances shown above include interest accrued amounting to ' 390.55 lakh (March 31, 2025:
' 468.54 lakh)

25.1 Loans repayable on demand from banks - Secured

' 15,739.52 lakh (March 31 2,025: ' 18,745.91 lakh) on account of working capital facilities availed
from banks and are secured by first pari passu charge over Company's current assets both
present and future. Further secured by first pari passu charge by an equitable mortgage on the
entire movable and immovable fixed assets of the Company both present and future excluding
assets exclusively charged to other lenders. The said working capital facilities are additionally
guaranteed by Mr. Ashish Dandekar Promoter Chairman & Managing Director of the Company.
The current interest rates range from 11.85% to 12.95% p.a.

25.2 Other Short Term Borrowings from banks - Secured

' 248.47 lakh (March 31, 2025: ' 426.84 lakh) towards Bill Discounting availed from banks and is
secured by security stated against Note 25.1

25.3 Other Short Term Borrowings from others- Secured

' 2,970.73 lakh (March 31, 2025: ' Nil) secured by pledge of shares held by Mr. Ashish Dandekar,
Promoter, Chairman & Managing Director of the Company. The current rate of interest is in range
of 14% p.a. to 16% p.a.

25.4 The Company does not have any charges which are yet to be registered with the Registrar
of Companies (ROC) beyond the statutory period. Further, no certification in relation to the
satisfaction of charge received from the banks are pending for submission with ROC.

25.5 The Company has submitted stock statements, debtors statements and other information /
returns as required by the banks on a monthly as well as quarterly basis. Such monthly / quarterly
statements and returns are generally in agreement with the books of account except for differences
in some cases on account of valuation, provisions etc, the impact of which is not material.

26.3 Due to Micro and Small Enterprises

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium
Enterprises Development Act, 2006" has been determined to the extent such parties have been
identified on the basis of information collected by the Management. This has been relied upon
by the auditors. The credit period varies as per the contractual terms with suppliers. No interest
is generally charged by the suppliers. The disclosure relating to Micro and Small Enterprises is
as under:

26.4 Supplier Finance Arrangement

The Company has entered into certain Supplier Finance Arrangements (SFA) with finance
providers during the year. The primary objective of these arrangements is to enable the Company
to avail additional credit period to efficiently manage its working capital. The Company doesn't
provide any collateral or guarantees to the finance provider.

30.2 The amounts receivable from customers become due after expiry of credit period which ranges
between 15 to 120 days. There is no significant financing component in any transaction with the
customers.

30.3 The Company does not have any remaining performance obligation as contracts entered for sale
of goods are for a short duration.

30.4 Revenue from sale of products includes loss of ' 215.74 lakh (2024-25: Gain ' 151.10 lakh)
pertaining to effective portion of changes in fair value of foreign exchange forward contracts
classified as cash flow hedges

30.5 Revenue from sale of products for the year ended March 31, 2026 includes refund receivable
with respect to tariffs paid under the International Emergency Economic Powers Act of USA
amounting to ' 1,035.09 lakh.

34.1 Employee Benefit Plans(a) Other long term employment benefits

Leave encashment is payable to the employees of the Company due to death, retirement,
superannuation or resignation. Employees are entitled to encash leave while in service. The leave
encashment benefit is payable to all the eligible employees of the Company at the rate of daily
salary as per current accumulation of leave days.

The Privilege Leave encashment liability and amount charged to Statement of Profit and Loss
determined on actuarial valuation using projected unit credit method are as under:

(b) Defined Contribution Plans:

The contributions to the Provident Fund of eligible employees are made to a Government
administered Provident Fund and there are no further obligations beyond making such
contribution. Under the plan, the Company has contributed ' 378.91 lakh during the year
(2024-2025: ' 349.22 lakh).

(c) Defined Benefit Plans:

The Company makes contributions to the Group Gratuity cum Life Assurance Scheme
administered by the Life Insurance Corporation of India ("LIC") and SBI Life Insurance Company
Limited (SBI Life), a funded defined benefit plan for qualifying employees. On retirement /
resignation, the Scheme provides for payment as per the provisions of Payment of Gratuity Act,
1972 with vesting period of 5 years of service. On death / permanent disablement in service,
vesting period is not applicable.

The most recent actuarial valuation of plan assets and present value of defined benefit obligation
of gratuity was carried out as at March 31, 2026. The present value of defined benefit obligation
and the related current service cost and past service cost were measured using the Projected
Unit Credit Method. The following table summaries the net benefit expense recognised in the
Statement of Profit and Loss, the details of the defined benefit obligation and the funding status
of the gratuity plans:

34.2 Employee Stock Option Scheme
34.2.1Employee Stock Option Plan 2021

The Company has granted options on November 11, 2025 to senior management employees under
“Camlin Fine Sciences Limited Employees Stock Option Plan, 2021” (CFS ESOP 2021) approved
by the Board of Directors, Shareholders and Remuneration Committee. The options granted under
these schemes are equity settled. The details of the scheme are summarised below:

34.2.2 Employee Stock Option Plan 2020

The Company has granted options on August 20, 2020 to senior management employees under
“CFSL Employees Stock Option Plan, 2020” (ESOP 2020) approved by the Board of Directors,
Shareholders and Remuneration Committee. The options granted under these schemes are equity
settled. The details of the scheme are summarised below:

c) Nature of CSR activities during the year

The Company operates CSR Policy in the areas of promoting healthcare, education including
special education and employment enhancing vocation skills especially among children, the
differently abled, tribal communities and measures for reducing inequalities faced by socially
and economically backward classes. The projects identified and adopted are as per the activities
included and amended from time to time in Schedule VII of the Companies Act, 2013.

Since the Company recorded an average net loss of Rs. 477.34 lakhs during the three immediately
preceding financial years (i.e., 2024-25, 2023-24 and 2022-23), it was not obligatory for the
Company to incur CSR expenditure for the financial year 2025-26. Hence, no expenditure on
CSR activities was undertaken during the financial year 2025-26.

40 Exceptional ItemsFor the year ended March 31, 2026

Exceptional items (expense), recognized in the Profit & Loss during the year ended March 31, 2026
includes:

i) Provision for doubtful loan and interest receivable of ' 1,145.93 lakh;

ii) Impact of the New Labour Codes on retirement benefits ' 222.17 lakh, (Refer note 40(a) as
below);

iii) Provision for impairment of trade and other receivables (net of payables) due from subsidiaries
- ' 266.42 lakh

iv) Other impairment gain - ' 7.55 lakh

40(a) On November 21, 2025, the Government of India notified four Labour Codes (the Code on
Wages 2019, the Code on Social Security 2020, the Industrial Relations Code 2020, and the
Occupational Safety, Health and Working Conditions Code, 2020) consolidating existing labour
laws (collectively “new Labour Codes”). In accordance with the new Labour Codes, the Company
has currently estimated the incremental impact on retirement benefits consisting of gratuity
and leave encashment to be ' 222.17 lakh. Considering the materiality and regulatory driven
non-recurring nature of this development, it has been presented under “Exceptional Items”
in the financial statements. The Company continues to monitor the finalization of Central/State
Rules and clarifications from the Government on other aspects of the Labour Codes and would
provide appropriate accounting effects as and when such clarifications are issued / rules are
notified.

For the year ended March 31, 2025

Exceptional items (expense), recognized in the Profit & Loss during the year ended March 31,
2025 includes:

i) Impairment loss on investments in subsidiaries namely:

a) CFS Europe ' 1,178.56 Lakh

b) CFSWL ' 436.92 Lakh

c) CFS Pahang Asia Pte Ltd. ' 17.89 Lakh

ii) Impairment of trade and other receivables (net of payables) due from subsidiaries:

a) CFS Europe SpA N' 1,929.04 Lakh

b) CFSWL ' 5,941.52 Lakh

iii) Loss on demolition / refurbishment of assets (net of scrap sale) ' 96.28 Lakh.

41 EARNINGS PER SHAREa) Basic Earnings Per Share

The calculation of basic earnings per share is based on the profit attributable to ordinary
shareholders and weighted average number of ordinary shares outstanding.

41.1 During the financial year ended March 31, 2025, the Company issued rights shares in the ratio of 5:41
at a price lower than the market price. As the rights issue included a bonus element, the earnings
per share for the year ended March 31, 2025 and comparative previous periods have been adjusted
for the bonus element in accordance with Ind AS 33. The weighted average number of shares
used for EPS calculation has been adjusted retrospectively as if the rights issue occurred at the
beginning of the earliest period presented for financial year ended March 31, 2025.

42 SEGMENT REPORTING

As per the requirements of Ind AS 108 on "Operating Segments", segment information has been
provided under the Notes to Consolidated Financial Statements.

43.1 Pursuant to the directions of the Honorable Supreme Court dated December 14, 2020, National
Green Tribunal had reheard the matter and vide its direction dated January 24, 2022 had
enhanced the portion of compensation attributable to the Company for alleged violations of
environmental norms by manufacturers at Tarapur MIDC for an amount of ' 1,712.31 lakh from
' 516.56 lakh. The Honourable Supreme Court vide its order dated April 27, 2022 has stayed the
proceedings of the aforesaid directions until the matter is heard. Further as per the directions
of the Honourable Supreme Court, the Company has deposited 30% of the compensation
amounting to ' 154.97 lakh which is disclosed as recoverable advance (Refer Note 18). Based on
the assessment of the management, the Company believes that it has strong grounds to defend
its position against these directions and hence no provision for compensation is considered
necessary in the financial statements.

44 RELATED PARTY DISCLOSURES

I List of Related Parties as required by Ind AS 24,”Related Party Disclosures”, are given below:
i Related parties where control exists
Subsidiaries

CFS Do Brasil Industria, Comercio, Importacao De Exportacao De Aditivos Alimenticios LTDA
(herein after referred as “CFS do Brazil”)

Solentus North America Inc
CFS North America LLC

b) Fair value hierarchy (Refer Note B to material accounting policies)c) Measurement of Fair Value

The fair values of financial assets or liabilities are included at the amount that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. Methods and assumptions used to estimate the fair values are consistent
in both years. The following methods and assumptions are used to estimate the fair values:

(i) The Management assesses that fair values of trade receivables, cash and cash equivalents,
other bank balances, loans, trade payables, current borrowings and other financial liabilities
(current), approximate to their carrying amounts largely due to the short-term maturities
of these instruments. The Company does not anticipate that the carrying amount would be
significantly different from the values that would eventually be received or settled.

(ii) The fair value of forward contracts for the remaining maturity period of the contracts is
determined using Mark-to-Market report provided by the Company's bankers.

(iii) The Company held investment in bonds measured at fair value, original investment value
' Nil (March 31, 2025: ' 3,052.50 lakh). These instruments are categorized as Level 1 under
the fair value hierarchy (Refer Note 12.1).

d) Risk Management Framework

The Company's business activities expose it to a variety of financial risks, namely credit risk,
liquidity risk and market risks. Market risks comprise of currency risk and interest rate risk.
The Company's Senior Management and Key Management Personnel have the ultimate
responsibility for managing these risks. The Company has a process to identify and analyse
the risks faced by the Company, to set appropriate risk limits, to control and monitor risks and
adherence to these limits. Risk Management policies and systems are reviewed regularly to reflect
changes in market conditions and Company's activities. Further, Audit Committee undertakes
regular reviews of Risk Management Controls and Procedures.

(i) Credit Risk

Credit risk is the risk that a customer or counterparty fails to meet its contractual
obligations resulting in financial loss to the Company. The Company is exposed to credit
risk from its operating activities (trade receivables) and from its financing activities
including investments in mutual funds, deposits with banks and financial institutions and
financial instruments.

Trade Receivables

Credit risk from trade receivables is managed by establishing credit limits, credit approvals
and monitoring creditworthiness of the customers. Outstanding customer receivables are
regularly monitored. The Company has computed credit loss allowances based on Expected
Credit Loss Model, which excludes transactions with subsidiaries.

Term Deposits and Bank Balances

The Company's exposure in term deposits with banks is limited, as the counterparties are highly rated
banks.

⁽ⁱⁱ⁾ Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its
financial liabilities. The Company's approach to managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable losses.

Tabulated below are the Company's remaining contractual maturities of financial liabilities as at
the reporting date with agreed repayment periods. The tables have been drawn up considering the
undiscounted contractual cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The table includes both interest and principal cash flows.

(iii) Currency Risk

The Company's operations result in it being exposed to foreign currency risk on account of trade
receivables, trade payables, borrowings and lendings. The foreign currency risk may affect the
Company's income and expenses, or its financial position and cash flows. The objective of the
Company's Management of foreign currency risk is to maintain these risk within acceptable parameters,
while optimising returns.

The Company's exposure to foreign currency risk denominated monetary assets and liabilities at the
end of the reporting period expressed in INR (in lakh), is as follows:

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rate with other conditions remaining
unchanged would have the following effect on Company's profit or loss before tax and equity for the
year ended March 31, 2026 and March 31, 2025. This calculation assumes that the change occurs at
the balance sheet date and has been calculated based on risk exposures outstanding as at that date.
The year end balances are not necessarily representative of the average debt outstanding during the
period. The analysis assumes that all other variables, in particular foreign currency exchange rates
remains constant.

46 CAPITAL MANAGEMENT

The primary objective of the Company's capital management is to maintain an efficient capital
structure and to maximise shareholder's value. The Management seeks to maintain a balance
between higher returns that is achieved by raising funds through equity and the advantages by a
sound capital position.

The Company monitors capital using a ratio of 'Net Debt to Equity'. For this purpose, Capital includes
issued capital and all other equity reserves. Net Debt is defined as total borrowings less cash & bank
balances and other current investments.

The Company's Net Debt to Equity ratio are as follows:

47 DISCLOSURES U/S 186(4) OF THE COMPANIES ACT, 2013

a Details of investments made are disclosed in Note 6.

b Details of Loans given to subsidiaries, associates, firms/companies in which directors are
interested are disclosed in Note:16.1, 16.2 and 16.3.

c Details of Guarantee given on behalf are disclosed in Note: 43(I)(c).

48 DISCLOSURES MADE IN TERMS OF SCHEDULE V OF THE SEBI (LISTING OBLIGATION AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

For disclosure of loans, investments and Guarantee- 'Refer Note 47'. Further, there is no investment
in shares of the Company by the parties to whom loan have been given.

50 ADDITIONAL REGULATORY INFORMATION

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 been declared as wilful defaulter by any lender who has the powers to
declare a company as wilful defaulter at any time during the financial year or after the end of the
reporting period but before the date when financial statements are approved.

c) The Company has complied with the number of layers prescribed under clause 87 of section 2 of
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

d) The Company does not have any approved scheme of Arrangement during the year.

e) 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.

f) The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding 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 to or on behalf of the Ultimate Beneficiaries.

g) The Company does not have any transaction not recorded in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.

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

51 Previous year's figures have been regrouped / reclassified wherever necessary to conform to current
year's classification.