The sensitivity analysis above have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period and may not be representative of the actual change. It
is based on a change in the key assumption while holding all other assumptions constant. When calculating the
sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has
been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared with the previous year.

31 Capital Management

The Company's capital management is intended to create value for shareholders by facilitating the meeting of
long term and short term goals of the Company. The Company determines the amount of capital required on the
basis of annual business plan coupled with long term and short term strategic investment and expansion plans.
The funding needs are met through equity, cash generated from operations and long term and short term bank
borrowings on need basis, if any. The Company monitors the capital structure on the basis of gearing ratio i.e. net
debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest
bearing borrowings less cash and cash equivalents.

B. Dividend

The Company follows the policy of Dividend for every financial year as may be decided by Board considering financial
performance of the company and other internal and external factors enumerated in the Company's dividend policy

No dividend has been declared by the company during the reporting year.

32 Financial Instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability
and equity instrument are disclosed in Note 1 Basis of Preparation, Significant Accounting Policies.

b) Fair value measurements

The fair value of financial instruments as referred to in note above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable
inputs (Level 3 measurements).

The categories used are as follows:

a) Level 1: Quoted prices for identical instruments in an active market -

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted)
in active markets for identical assets or liabilities. This category consists of investment in quoted equity
shares.

b) Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs -

This level of hierarchy includes financial assets and liabilities, measured using inputs other than the quoted
prices included within level 1 that are observables for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices). This level of hierarchy includes Company's derivative contracts.

c) Level 3: Inputs which are not based on observable market data -

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based
on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor they are based on available market data.

i) The Company has assessed that cash and bank balances, trade receivables, trade payables, and other financial
assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

ii) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of the amounts that the Company could have realised
or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the
reporting dates may be different from the amounts reported at each reporting date.

iii) There have been no transfers between Level 1, level 2 and Level 3 for the period ended March 31, 2025 and for
the year ended March 31, 2024.

33 Financial Risk Management

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance and support Company's operations. The Company's principal financial
assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees
the management of these risks. The Company's financial risk activities are governed by appropriate policies and
procedures and financial risks are identified, measured and managed in accordance with the Company's policies
and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks. The risk
management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate
fluctuations on the Company's business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in
advance.

I Market risk:

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may change as a result of
changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market
changes. Future specific market movements cannot be normally predicted with reasonable accuracy

a) Market risk - Foreign currency exchange rate risk: The Company enter into sale and purchase transactions
denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Management
monitors the movement in foreign currency and the Company's exposure in each of the foreign currency. Based
on the analysis and study of movement in foreign currency, the Company takes remidial measures to hedge foreign
currency risk through various measures like derivative instruments etc.

A 10% appreciation/depreciation of the foreign currencies with respect to functional currency of the Company
would result in an decrease/ increase (net) in the Company's net profit before tax by approximately:

INR 24.95 lacs - March 31, 2025
INR 8.49 lacs - March 31, 2024

b) Market risk - Interest rate risk: Interest rate risk is the risk that the fair value or future cashflow of a financial
instrument will fluctuate because of change in market interest rate. The company does not have any borrowings,
hence there is no exposure to interest rate risk.

II Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration risks. Financial instruments that are subject to concentrations of credit risk, principally
consist of Cash & bank balances, trade receivables, finance receivables and loans and advances. Company regularly
reviews the credit limits of the customers and takes action to reduce the risk. Further diverse and large customer
bases also reduces the risk. All trade receivables are reviewed and assessed for default on quarterly basis.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are
banks with high credit ratings.

II Liquidity risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. The Company has obtained fund and non-fund based working capital lines from various banks.

The Company invests its surplus funds in bank fixed deposits, which carry no or low market risk. The Company's
liquidity position remains strong at:

INR 2,283.28 lacs as at March 31, 2025
INR 1,70702 lacs as at March 31, 2024

comprising of cash and cash equivalents and other balances with banks.

1. The company's related party transactions for the year ended March 31, 2025 and March 31, 2024 are at arms

length and in the ordinary couse of business. Outstanding balances at the year-end are unsecured and interest-
free and settlement occurs in cash. All related party balances at year end are considered good and no provision
for bad or doubtful debts due from related parties was made during the current / prior year.

2. The Company has, with effect from September 30, 2023, acquired control over Stallion Enterprise, a proprietary

concern owned by Mr. Shazad Rustomji, under slum sale through business transfer agreement dated September
30, 2023. Total purchase consideration is INR 3,246.86 lacs which represents the book value of the business
and the consideration is paid through issue of 6,341,514 equity shares of the company to Mr. Shazad Rustomji
(refer note 35).

36 Transition of business from Stallion Enterprise (refer note 34)

Pursuant to the slum sale agreement executed by the Company, Stallion Enterprise, previously owned by Mr.
Shazad Rustomji, has been transferred to the Company in its entirety as a going concern on a slum sale basis.
The strategic intent behind this acquisition is to consolidate the business operations under the Company's
umbrella, effective from the closing date of September 30, 2023.

As per the terms of the slum sale agreement, all benefits arising from transactions conducted after the closing
date will accrue to the Company.

The following transactions carried out under Stallion Enterprise post-closing (i.e. September 30, 2023) form part
of the Financial Statements:

1 Current Ratio is computed by dividing Current Assets by Current liabilities.

2 Debt Equity Ratio is computed by dividing Borrowings by Total Equity.

3 Debt Service Coverage Ratio is computed by dividing earnings available for debt service (profit after tax finance cost
depreciation and amortisation expenses) by debt service (Interest expense lease payments principal repayments of debt).

4 Return on Equity is computed by dividing profit after tax by average shareholders' equity.

5 Inventory turnover ratio is computed by dividing Cost of goods sold by Average Stock {(Opening Closing stock)/2}.

6 Trade receivables turnover ratio is computed by dividing revenue from operations by average trade receivables.

7 Trade Payables turnover ratio is computed by dividing total purchases by average trade payables.

8 Net capital turnover ratio is computed by dividing revenue from operations by working capital (current assets less current
liabilities).

9 Net profit ratio is computed by dividing profit after tax by revenue from operations.

10 Return on capital employed is computed by dividing Earning before Interest and Tax by capital employed.

Capital Employed= Tangible Net Worth Total Debt Deferred Tax Liability

11 Return on investment is computed by dividing (Profit Before tax Finance cost) by total asset

38 Other disclosure requirements as per Schedule III

(i) The title deeds (registered sale deed/ transfer deed) of all the immovable properties (other than properties
where the Company is the lessee and the lease agreements are duly executed in the name of the lessee) are
held in the name of the Company.

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

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly
or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(vi) The Company does not have any 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.

(vii) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India.

(viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)
during the year.

(ix) The Company doesn't have any co-owned properties or the properties (including properties for which
the lease agreement executed and disclosed as 'Right-of-Use Assets' in restated consolidated financial
information) title deed of which are held by the others.

(x) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person.

(xi) The Company has used the borrowings from the banks only for its intended purpose during the financial
year.

(xii) The Company did not have any transaction with companies struck off under Section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the current and previous financial year.

(xiii) Utilisation of borrowed funds and share premium:

(a) The Company has not advanced or loaned or invested funds to any other persons or entities, including
foreign entities (Intermediaries) other than normal course of business 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.

(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) other than normal course of business 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 company (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(xiv) The Company has complied with the requirement with respect to number of layers prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017

39 As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such
accounting software for maintaining its books of account that have a feature of recording audit trail of each
and every transaction creating an edit log of each change made in the books of account along with the date
when such changes were made and who made those changes within such accounting software. This feature of
recording audit trail has operated throughout the year and was not tampered with during the year. In respect
of the accounting software, audit trail was not enabled as per the requirements of rule 3(1) of the Companies
(Accounts) Rules 2014 for direct data changes to database level. The company has established and maintained an
adequate internal control framework over its f inancial reporting and based on its assessment, has concluded that
the internal controls for the year ended March 31, 2025 were effective.

40 During the year ended March 31, 2025 the Company has completed IPO comprising of fresh issue of 17,858,740
equity shares of face value INR 10/- each at an issue price of INR 90/- per share for cash consideration aggregating
to INR 16,072.87 lakhs. Pursuant to IPO, equity shares of the Company were listed on BSE Limited and National
Stock Exchange (hereinafter referred to as "Stock Exchanges”) w.e.f. January 23, 2025.

IPO expense stands at INR 2,33787 lakhs of which INR 1,198.92 lakhs has been utilised from IPO Proceeds and
balance from internal accruals. These expenses have been adjusted against securities premium.

The Company has received an amount of INR 14,873.95 lakhs (net of IPO expenses of INR 1,198.92 lakhs) from
proceeds out of fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below.

41 There have been no events after the reporting date that require adjustments or disclosure in these financial
statements.

42 Previous period' figures have been re-grouped/ re-classified wherever necessary, to confirm to current period's
classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013.

For Mittal & Associates For and on behalf of the Board of Directors of

Chartered Accountants Stallion India Fluorochemicals Limited (Formerly Known as Stallion India

Firm's Registration: 106456W Fluorochemicals Private Limited)

CIN: L51410MH2002PLC137076

Sourabh Bagaria Shazad Rustomji Rohan Shazad Rustomji

Partner Managing Director & CEO Director

Membership number: 183850 DIN: 01923432 DIN: 09312347

UDIN: 25183850BMKZAP8523

Virenderkumar Mehta Govind Rao

Chief Financial Officer Company Secretary

Place: Mumbai M No. A47094

Date: 16/05/2025