Note 17.1 : Nature and purpose of reserves

I Securities Premium

Securities premium reserves is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

II Retained Earnings

This comprise company's undistributed profit after taxes.

III Other Comprehensive Income

Other Comprehensive Income(OCI) reserve represents the balance in equity for items to be accounted in other comprehensive income. OCI is classified into : (i) Items that will not be reclassified into statement of profit & loss and (ii) Items that will be reclassified to statement of profit & loss

(a) GECL1.0 Extension from State bank of India are secured by hypothecation of entire current assets (present and future ) of the company including goods in transit and stock in process and book debts , first charge on fixed assets of the company and equitable mortgage of immovable properties owned by the company and M/S Standard Sulphonators Pvt Ltd and further secured by personal guarantee of the directors of the company and corporate gurantee of M/S Standard Sulphonators Pvt Ltd.

(b) Term Loan from SBI is secured by hypothecation of Plant and Machinery, first charge on fixed assets of the company and equitable mortgage of immovable properties owned by the company and M/S Standard Sulphonators Pvt Ltd and further secured by personal guarantee of the directors of the company and corporate gurantee of M/S Standard Sulphonators Pvt Ltd.

(c) The PNB Car loan and Kotak Mahindra Car Loan is secured by the hypothecation of vehicle owned by the company and further secured by personal guarantee of Mr. Ankur Garg (director of the company).

The Quarterly Returns/ Statements (referred to as "Bank returns"), which were prepared based on provisional books of accounts and filed before the completion of all financial statement closure activities including Ind AS related adjustments/ reclassifications, as applicable. Also, there were exclusion of certain current assets in the Bank returns filled with the Banks, which led to these differences between the Financial Statements and the bank return.

Further, difference also arises on account of different valuation methodology adopted for valuing the finished goods stock in the books and for the purpose of reporting in the bank return. In the books, stock of finished goods is recorded at lower of cost or net realisable value but for bank purposes it is taken at net realisable value which is determined as per bank norms. However, there is no material difference in reporting the quantity of stock in the bank returns as compared to books of accounts.

The differences arise due to different methodology of valuation of stock in the books and for the purpose of reporting in the bank return and due to stautory adjustment for finalisation of the results

CC Limits ,Forex Demand Loan and e-DFS (IOCL) loan from bank are secured by hypothecation of entire current assets (present and future ) of the company including goods in transit and stock in process and book debts , first charge on fixed assets of the company and equitable mortgage of immovable properties owned by the company and M/S Standard Sulphonators Pvt Ltd and further secured by personal guarantee by the directors of the company and corporate gurantee of M/S Standard Sulphonators Pvt Ltd.

The finance cost on Edfs financing is net of cost recovered from customer. Note-36-Contingent Liabilities and Commitments: Not provided for in respect of:

The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of sucessfull outcome.

The required disclosures of employees benefits as per Indian Accounting Standard (Ind AS) -19 are given hereunder I) Defined Contribution Plan :

The contribution to the respective funds are made in accordance with the relevant statute and are recognised as expense when employees have rendered service entitling them to the contribution. The contribution to defined contribution plan, recognised as expense in the Statement of Profit & Loss are as under:

II) Defined Benefit Plan

(i) In respect of non funded defined benefit scheme of gratuity (Based on actuarial valuation) :

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the said Act, an employee who has completed 5 years of service is entited to specific benefit. The gratuity plan providesa lumpsum payment to employees at retirement, death, incapacitation or termination of employment. The level of benefits provided depends on the member's length of service and salary at retirement age. It is valued as per the actuarial report.

The Group is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest Rate risk : The plan exposes the Group to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

Salary escalation risk : The present value of the defined benefit plan is calculated with the assumption of salary increase 0.50% per annum of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Actual mortality & disability : deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.

Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

Note-38- DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS

a) Operating Segments

The Company is organized into two main business segments, namely:

a) Chemical and Surface active segment

b) Others

b) Identification of Segments

The chief operational decision maker monitors the operating results of its Business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.Operating Segments have been identified by the management and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems.

c) Segment revenue and results:

The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated income).

d) Segment assets and liabilities:

While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment Liabilities include all operating liabilities and include creditors, accrued liabilities and interest bearing liabilities.

e) Segment Accounting Policies:

(i) The segment results have been prepared using the same accounting policies as per the Financial Statements of the Company.

(ii) Unallocated assets include deferred tax, investments and interest bearing deposits.

(iii) Unallocated liabilities include non-interest bearing liabilities and tax provisions.

(iv) Capital expenditure pertains to additions made to fixed assets during the year and includes capital work in progress.

(v) Rvenues are shown net of intersegment revenue.

f) Geographical Information

The company operated only in India during the year ended 31st March, 2023 and 31st March, 2022.

g) Information about major customers

No single customer contributed 10% or more of the total revenue of the company for the year ended 31st March, 2023 and 31st March, 2022.

Note :The company has converted 2,48,302 and 5,97,000 warrants on March 24, 2023 and April 12, 2023 respectively, into the same number of equity shares of Rs10 each (face value) at a premium of Rs32 each.