1.19 Provisions and contingent liabilities

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of
resources will be required to settle the obligation in
respect of which a reliable estimate can be made.
Provisions are determined based on the best estimate
required to settle the obligation at the balance sheet
date and measured using the present value of cash
flows estimated to settle the present obligations
(when the effect of time value of money is material).
These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

Contingent liability is disclosed for (i) Possible
obligations which will be confirmed only by future
events not wholly within the control of the Company
or (ii) Present obligations arising from past events
where it is not probable that an outflow of resources
will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be
made. The Company does not recognize a contingent
liability but discloses its existence in the Financial
Statements. Contingent assets are only disclosed
when it is probable that the economic benefits will
flow to the entity.

1.20 Provision for warranty

The estimated liability for product warranties is
recorded when products are sold. These estimates are
established using historical information on the nature,
frequency and average cost of warranty claims and
management estimates regarding possible future
incidence based on corrective actions on product
failures. The timing of outflows will vary as and when
warranty claim will arise-being typically upto three
years.

1.21 Insurance Claims

Insurance claims are accounted for on the basis
of claims admitted/expected to be admitted and
to the extent that the amount recoverable can be
measured reliably and it is reasonable to expect
ultimate collection.

1.22 Financial Instruments

Financial assets and financial liabilities are
recognised when the Company becomes a party to
the contractual provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value except in respect of Trade
receivables that do not have a significant financial
component which are measured at transaction price.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit and loss) are
added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and loss
are recognised immediately in profit and loss.

1.23 Financial assets

All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases
or sales of financial assets that require delivery of
assets within the time frame established by regulation
or convention in the marketplace.

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.

Classification of financial assets:

Debt instruments that meet the following conditions

are subsequently measured at amortised cost (except

for debt instruments that are designated as at fair

value through profit or loss on initial recognition):

• the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

Debt instruments that meet the following
conditions are subsequently measured at fair
value through other comprehensive income
(except for debt instruments that are designated
as at fair value through profit or loss on initial
recognition):

• the asset is held within a business model
whose objective is achieved both by collecting
contractual cash flows and selling financial
assets; and

• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

By default, all other financial assets are measured
subsequently at fair value through profit or loss
(fvtpl).

Despite the foregoing, the Company may make
the following irrevocable election/designation at
initial recognition of a financial asset:

• the Company may irrevocably elect to present
subsequent changes in fair value of an equity
investment in other comprehensive income if
certain criteria are met (see (iii) below); and

• the Company may irrevocably designate a debt
investment that meets the amortised cost or
FVTOCI criteria as measured at FVTPL if doing so
eliminates or significantly reduces an accounting
mismatch (see (iv) below). All other financial
assets are subsequently measured at fair value.

(i) Amortised cost and effective interest
method:

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period.

For financial assets other than purchased or
originated credit-impaired financial assets (i.e. assets
that are credit-impaired on initial recognition), the
effective interest rate is the rate that exactly discounts
estimated future cash receipts (including all fees and
points paid or received that form an integral part
of the effective interest rate, transaction costs and
other premiums or discounts) excluding expected
credit losses, through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the gross carrying amount of the debt instrument
on initial recognition. For purchased or originated
credit-impaired financial assets, a credit-adjusted
effective interest rate is calculated by discounting the
estimated future cash flows, including expected credit
losses, to the amortised cost of the debt instrument
on initial recognition.

The amortised cost of a financial asset is the amount
at which the financial asset is measured at initial
recognition minus the principal repayments, plus the
cumulative amortisation using the effective interest
method of any difference between that initial amount
and the maturity amount, adjusted for any loss
allowance. The gross carrying amount of a financial
asset is the amortised cost of a financial asset before
adjusting for any loss allowance.

Interest income is recognised using the effective
interest method for debt instruments measured
subsequently at amortised cost and at FVTOCI. For
financial assets other than purchased or originated
credit-impaired financial assets, interest income is
calculated by applying the effective interest rate to
the gross carrying amount of a financial asset, except
for financial assets that have subsequently become
credit-impaired (see below). For financial assets that
have subsequently become credit-impaired, interest
income is recognised by applying the effective interest
rate to the amortised cost of the financial asset. If, in
subsequent reporting periods, the credit risk on the
credit-impaired financial instrument improves so
that the financial asset is no longer credit-impaired,
interest income is recognised by applying the
effective interest rate to the gross carrying amount of
the financial asset.

For purchased or originated credit-impaired financial
assets, the Company recognises interest income by
applying the credit-adjusted effective interest rate to
the amortised cost of the financial asset from initial
recognition. The calculation does not revert to the
gross basis even if the credit risk of the financial asset
subsequently improves so that the financial asset is
no longer credit-impaired.

Interest income is recognised in profit or loss and is
included in the 'Other income' line item.

(ii) Debt instruments classified as at FVTOCI:

The debt instruments are initially measured at fair
value plus transaction costs.

Subsequently, changes in the carrying amount of
these debt instruments as a result of foreign exchange
gains and losses (see below), impairment gains or
losses (see below), and interest income calculated
using the effective interest method (see (i) above)
are recognised in profit or loss. The amounts that
are recognised in profit or loss are the same as the
amounts that would have been recognised in profit
or loss if these debt instruments had been measured
at amortised cost. All other changes in the carrying
amount of these debt instruments are recognised in
other comprehensive income and accumulated in
a separate component of equity. When these debt
instruments are derecognised, the cumulative gains or
losses previously recognised in other comprehensive
income are reclassified to profit or loss.

(iii) Equity instruments designated as at
FVTOCI:

On initial recognition, the Company may make an
irrevocable election (on an instrument-by-instrument
basis) to designate investments in equity instruments
as at FVTOCI. Designation at FVTOCI is not permitted if
the equity investment is held for trading:

Investments in equity instruments at FVTOCI are
initially measured at fair value plus transaction costs.

Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
recognized in other comprehensive income and
accumulated in a separate component of equity. The
cumulative gain or loss is not reclassified to profit or
loss on disposal of the equity investments, instead, it is
transferred to retained earnings.

Dividends on these investments in equity instruments
are recognised in profit or loss in accordance with
Ind AS 109, unless the dividends clearly represent
a recovery of part of the cost of the investment.

Dividends are included in the 'Other income' line item
in profit or loss.

The Company designates all investments in equity
instruments that are not held for trading as at FVTOCI
on initial recognition.

A financial asset is held for trading if:

• It has been acquired principally for the purpose
of selling it in the near term;

• On initial recognition it is part of a portfolio of
identified financial instruments that the Company
manages together and has a recent actual
pattern of short-term profit-taking.

(iv) Financial assets at fair value through
profit or loss (FVTPL):

Financial assets that do not meet the criteria for being
measured at amortised cost or FVTOCI (see (i) to (iii)
above) are measured at FVTPL. Specifically:

• Investments in equity instruments are classified
as at FVTPL, unless the Company designates an
equity investment that is neither held for trading
(see (iii) above).

• Debt instruments that do not meet the amortised
cost criteria or the FVTOCI criteria (see (i) and (ii)
above) are classified as at FVTPL. In addition, debt
instruments that meet either the amortised cost
criteria or the FVTOCI criteria may be designated
as at FVTPL upon initial recognition if such
designation eliminates or significantly reduces a
measurement or recognition inconsistency (so
called 'accounting mismatch') that would arise
from measuring assets or liabilities or recognising
the gains and losses on them on different bases.
The Company has not designated any debt
instruments as at FVTPL.

Financial assets at FVTPL are measured at fair value at
the end of each reporting period, with any fair value
gains or losses recognised in profit or loss. The net
gain or loss recognised in profit or loss includes any
dividend or interest earned on the financial asset and
is included in the 'other income' line item.

Foreign exchange gains and losses:

The carrying amount of financial assets that are
denominated in a foreign currency is determined in
that foreign currency and translated at the spot rate
at the end of each reporting period. Specifically:

• for financial assets measured at amortised
cost that are not part of a designated hedging

relationship, exchange differences are recognised
in profit or loss in the 'other income' line item;

• for debt instruments measured at FVTOCI that
are not part of a designated hedging relationship,
exchange differences on the amortised cost of
the debt instrument are recognised in profit or
loss in the 'other income' line item. As the foreign
currency element recognised in profit or loss is the
same as if it was measured at amortised cost, the
residual foreign currency element based on the
translation of the carrying amount (at fair value)
is recognised in other comprehensive income in
a separate component of equity;

• for financial assets measured at FVTPL that are
not part of a designated hedging relationship,
exchange differences are recognised in profit or
loss in the 'other income' line item as part of the
fair value gain or loss; and

• for equity instruments measured at FVTOCI,
exchange differences are recognised in other
comprehensive income in a separate component
of equity.

Impairment of financial assets:

The Company recognises a loss allowance for
expected credit losses on investments in debt
instruments that are measured at amortised cost or
at FVTOCI, lease receivables, trade receivables and
contract assets, financial guarantee contracts, and
certain other financial assets measured at amortised
cost such as deferred consideration receivable on
disposal of subsidiaries. The amount of expected
credit losses is updated at each reporting date to
reflect changes in credit risk since initial recognition of
the respective financial instrument.

Expected credit losses are the weighted average
of credit losses with the respective risks of default
occurring as the weights. Credit loss is the difference
between all contractual cash flows that are due to the
Company in accordance with the contract and all the
cash flows that the Company expects to receive (i.e.
all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted effective interest
rate for purchased or originated credit-impaired
financial assets). The Company estimates cash flows
by considering all contractual terms of the financial
instrument (for example, prepayment, extension, call
and similar options) through the expected life of that
financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on

that financial instrument has increased significantly
since initial recognition. If the credit risk on a financial
instrument has not increased significantly since
initial recognition, the Company measures the loss
allowance for that financial instrument at an amount
equal to 12-month expected credit losses. 12-month
expected credit losses are portion of the life-time
expected credit losses and represent the lifetime
cash shortfalls that will result if default occurs within
the 12 months after the reporting date and thus, are
not cash shortfalls that are predicted over the next 12
months.

For trade receivables, the Company always measures
the loss allowance at an amount equal to lifetime
expected credit losses. Further, for the purpose of
measuring lifetime expected credit loss allowance for
trade receivables, the Company has used a practical
expedient method as permitted under Ind AS 109. This
expected credit loss allowance is computed based on
a provision matrix which takes into account historical
credit loss experience and adjusted for forward¬
looking information.

De-recognition of financial assets:

The Company derecognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another entity. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognises its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial
asset and also recognises a collateralized borrowing
for the proceeds received.

On derecognition of a financial asset measured at
amortised cost, the difference between the asset's
carrying amount and the sum of the consideration
received and receivable is recognised in profit or
loss. In addition, on derecognition of an investment
in a debt instrument classified as at FVTOCI, the
cumulative gain or loss previously accumulated in a
separate component of equity is reclassified to profit
or loss. In contrast, on derecognition of an investment
in an equity instrument which the Company has
elected on initial recognition to measure at FVTOCI,
the cumulative gain or loss previously accumulated
in a separate component of equity is not reclassified
to profit or loss, but is transferred to retained earnings.

1.24 Financial liabilities and equity
instruments

Classification as debt or equity:

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments:

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued
by the Company are recognised at the proceeds
received, net of direct issue costs. Repurchase of the
Company's own equity instruments is recognised
and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale,
issue or cancellation of the Company's own equity
instruments.

All financial liabilities are measured subsequently at
amortised cost using the effective interest method or
at FVTPL.

However, financial liabilities that arise when a transfer
of a financial asset does not qualify for derecognition
or when the continuing involvement approach
applies, and financial guarantee contracts issued by
the Company, are measured in accordance with the
specific accounting policies set out below.

Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when
the financial liability is (i) held for trading or (ii) it is
designated as at FVTPL.

A financial liability is classified as held for trading if:

• it has been acquired principally for the purpose
of repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of
identified financial instruments that the Company
manages together and has a recent actual
pattern of short-term profit-taking;

A financial liability other than a financial liability
held for trading may be designated as at FVTPL
upon initial recognition if:

• such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise; or

• the financial liability forms part of a group of
financial assets or financial liabilities or both, which
is managed and its performance is evaluated
on a fair value basis, in accordance with the
Company's documented risk management or
investment strategy, and information about the
grouping is provided internally on that basis;

Financial liabilities at FVTPL are measured at fair value,
with any gains or losses arising on changes in fair
value recognised in profit or loss The net gain or loss
recognised in profit or loss incorporates any interest
paid on the financial liability and is included in the
'other income' line item in profit or loss.

However, for financial liabilities that are designated
as at FVTPL, the amount of change in the fair value
of the financial liability that is attributable to changes
in the credit risk of that liability is recognised in other
comprehensive income, unless the recognition of the
effects of changes in the liability's credit risk in other
comprehensive income would create or enlarge an
accounting mismatch in profit or loss. The remaining
amount of change in the fair value of liability is
recognised in profit or loss. Changes in fair value
attributable to a financial liability's credit risk that
are recognised in other comprehensive income are
recognised in retained earnings. Gains or losses on
financial guarantee contracts issued by the Company
that are designated by the Company as at FVTPL are
recognised in profit or loss.

Financial liabilities subsequently measured
at amortised cost:

Financial liabilities that are not held-for-trading or
designated as at FVTPL, are measured subsequently
at amortised cost using the effective interest method.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability, or
(where appropriate) a shorter period, to the amortised
cost of a financial liability.

Foreign exchange gains and losses:

For financial liabilities that are denominated in a
foreign currency and are measured at amortised
cost at the end of each reporting period, the
foreign exchange gains and losses are determined
based on the amortised cost of the instruments.

These foreign exchange gains and losses are
recognised in the 'other income' line item in profit or
loss for financial liabilities.

The fair value of financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end
of the reporting period. For financial liabilities that
are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses
and is recognised in profit or loss for financial liabilities.

Derecognition of financial liabilities:

The Company derecognises financial liabilities
when, and only when, the Company's obligations are
discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and
payable is recognised in profit or loss.

When the Company exchanges with the existing
lender one debt instrument into another one with
the substantially different terms, such exchange is
accounted for as an extinguishment of the original
financial liability and the recognition of a new
financial liability. Similarly, the Company accounts
for substantial modification of terms of an existing
liability or part of it as an extinguishment of the original
financial liability and the recognition of a new liability.
It is assumed that the terms are substantially different
if the discounted present value of the cash flows
under the new terms, including any fees paid net of
any fees received and discounted using the original
effective rate is at least 10 per cent different from the
discounted present value of the remaining cash flows
of the original financial liability. If the modification is not
substantial, the difference between: (1) the carrying
amount of the liability before the modification; and (2)
the present value of the cash flows after modification
is recognised in profit or loss as the modification gain
or loss within 'other income'.

1.25 Impairment of Tangible and Intangible
Assets

At the end of each reporting period, the Company
reviews the carrying amounts of its tangible and
intangible assets or cash generating units to
determine whether there is any indication that those
assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the
impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual
asset, the Company estimates the recoverable
amount of the cash-generating unit to which the

asset belongs. When a reasonable and consistent
basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units,
or otherwise they are allocated to the smallest group
of cash-generating units for which a reasonable and
consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested
for impairment at least annually, or whenever there is
an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less
costs of disposal and value in use. In assessing value
in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate
that reflects current market assessments of the time
value of money and the risks specific to the asset for
which the estimates of future cash flows have not
been adjusted.

If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash¬
generating unit) is reduced to its recoverable amount.
An impairment loss is recognised immediately in the
statement of profit and loss, unless the relevant asset
is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating
unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that
would have been determined had no impairment loss
been recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is
recognised immediately in the statement of profit and
loss, unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment
loss is treated as a revaluation increase.

1.26 Investment in subsidiary

Investment in subsidiary is measured at cost. Dividend
income from subsidiaries is recognised when its right
to receive the dividend is established.

1.27 Dividend

Final dividends on shares are recorded as a liability on
the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Board of Directors of the Company.
The Company declares and pays dividends in Indian
rupees and are subject to applicable taxes.

1.28 Asset held for sale

Non-current assets (and disposal groups) classified
as held for sale are measured at the lower of carrying
amount and fair value less costs to sell. Non-current
assets and disposal groups are classified as held for
sale if their carrying amount will be recovered through
a sale transaction rather than through continuing use.
This condition is regarded as met only when the sale
is highly probable and the asset (or disposal group) is
available for immediate sale in its present condition.
Management must be committed to the sale which
should be expected to qualify for recognition as a
completed sale within one year from the date of
classification.

When the Company is committed to a sale plan
involving loss of control of a subsidiary, all of the
assets and liabilities of that subsidiary are classified
as held for sale when the criteria described above are
met, regardless of whether the Company will retain a
non-controlling interest in its former subsidiary after
the sale.

1.29 Critical Accounting Judgements and
Key Sources of Estimation Uncertainty

The preparation of Financial Statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions that
affect the application of accounting policies and

the reported amounts of assets, liabilities, income
and expenses and the accompanying disclosures.
Uncertainty about the assumptions and estimates
could result in outcomes that require a material
adjustment to the carrying value of assets or liabilities
affected in future periods.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which
the estimates are revised and in any future periods
affected.

Information about significant areas of estimation
uncertainty and critical judgments in applying
accounting policies that have the most significant
effect on the amounts recognised in Financial
Statements is included in the following notes:

(i) Useful lives of Property, Plant and Equipment.

(ii) Employee Benefits.

Determination of functional currency:

Currency of the primary economic environment
in which the Company operates ("the functional
currency") is Indian Rupee (^) in which the company
primarily generates and expends cash. Accordingly,
the Management has assessed its functional currency
to be Indian Rupee (^).

b) CWIP whose completion is overdue or exceed its cost

The above capital work in progress does not have any project whose completion is overdue or has exceeded
its cost compared to original plan in the current and in the previous year. There are no projects whose activity
is suspended.

C. The Company has carried out necessary adjustments to the deferred tax balances and MAT credit balances
as at 31 March 2026 based on applicable tax laws. The Company's Company's Income tax payment for the year
is based on MAT provisions u/s 115JB.

D. Significant judgments are involved in determining the provision for income taxes, including amount expected
to be paid/recovered for uncertain tax positions. The provision for taxation for the current year has been
determined by the Management based on the tax positon to be considered for tax filing and its assessment of
the probability of acceptance of the same by the taxation authorities.

13.01 Secured Trade Receivables are secured by way of irrevocable Letter of Credits and Bank Guarantees.

13.02 Trade Receivables includes receivables outstanding from customers constituting individually 5% or more
of the total trade receivables as at 31 March 2026 of 5 1,224.36 lakhs (PY: 5 1,420.22 lakhs) out of which Pipes
segment is 5 755.58 Lakhs (PY: 5 339.97 Lakhs) And Chemical segment is 5 468.79 Lakhs (PY: 5 1,080.25 Lakhs).

13.03 The Company has used a practical expedient by computing the expected loss allowance for trade
receivables based on provision matrix. The provision matrix takes into account the historical credit loss experience
and adjustments for forward looking information. Trade receivables are non-interest bearing and are generally
on terms in range of-from advance payment to upto 90 days credit.

1. This represents Share Application Money received
from employees under the ESOP scheme titled
"CAESOS 2020" [Chemfab Alkalis Employees Stock
Option Scheme 2020]. Also Refer Note 47.

2. Capital reserve represents reserve recognised
on amalgamation being the difference between
consideration amount and net assets of the
transferor company and profit on reissue of
shares.

3. Capital redemption reserve has been created
pursuant to Section 55 of the Companies Act,
2013 on account of redemption of preference
shares out of the profits of the Company.

4. Securities premium reserve represents amount
of premium recognised on issue of shares to
shareholders at a price more than its face
value. The reserve can be utilised only for limited
purposes in accordance with the provisions of
section 52 of the Companies Act, 2013.

5. Shares based payment reserve relates to the
share options granted by the company to its
employees under its share option plan. Refer Note
47 for further details.

6. Retained earnings refer to net earnings not paid
out as dividends, but retained by the company to
be reinvested in its core business. This amount is
available for distribution of dividends to its equity
shareholders.

7. Other comprehensive income represents the
cumulative gain and losses arising on the
revaluation of equity instruments measured at
fair value through other comprehensive income,
net of taxes.

8. Dividend is paid at 5 1.25 per share for 1,43,63,702
shares held on record date 05.09.2025 (PY. At 1.25
per share for 1,42,76,602 shares held on record
date 13.09.2024).

Note:

Details in respect of Borrowings are as under:

(i) Term Loan carrying an interest rate of 7.11% p.a
average during the year was availed from HDFC
Bank Limited and Axis Bank Limited. The borrowings
are secured by way of Equitable Mortgage over.

(a) leasehold land (taken under 99 years lease
by the Company) comprising of 5 acres
located in Domestic Tarrif Zone (DTZ) situated
in Irugulam Village, Satyavedu Mandal,
Chittor District, Andhra Pradesh-Exclusive
Charge for term loan of E 3,150 Lakhs and E
3,780 Lakhs from HDFC bank.

(b) fixed assets (Building, Plant and Machineries),
created out of the term loan of E 1,800 lakhs
from HDFC bank out of which E 1,308 Lakhs is
outstanding-Exclusive Charge.

(c) fixed assets (Plant and Machineries/civil
structures), created out of the term loan of
E 3,150 lakhs from HDFC bank out of which
E 2,047.50 Lakhs is outstanding-Exclusive
Charge.

(d) fixed assets (Plant and Machineries/civil
structures), created out of the term loan of
E 3,780 lakhs from HDFC bank out of which E
3,024 Lakhs is outstanding-Exclusive Charge.

(e) fixed assets (Plant and Machineries/civil
structures), created out of the term loan of
E 2,550 lakhs from Axis Bank out of which E
2,550 Lakhs is outstanding-Exclusive Charge.

Out of the above term loans, E 1,886.50
lakhs (PY. E 1674 lakhs) have been classified

as current maturities of long-term debt
(secured) under Borrowings-Current. Refer
note24).

(ii) Repayment Summary:

Term Loan outstanding of E 1,308 lakhs as at 31
March 2026:

Repayable in 53 monthly instalments of E 24
lakhs each and 1 monthly instalment of E 36 lakhs
respectively. Repayment of this tranche of term
loan began from October 2023.

Term Loan outstanding of E 2,047.50 lakhs as at
31 March 2026:

Repayable in 13 quarterly instalments of E 157.50
lakhs each. This loan was availed in part tranches
whose repayment of first availed tranche began
from Sept 2024.

Term Loan outstanding of E 3,024 lakhs as at 31
March 2026:

Repayable in 48 monthly instalments of E 63
lakhs each. Repayment of this tranche of term
loan began from April 2025.

Term Loan outstanding of E 2,550 lakhs as at 31
March 2026:

Repayable in 60 monthly instalments of E 42.50
lakhs each. Repayment of this tranche of term
loan will begin from Nov 2026.

There were no delays in repayments made by the
Company towards the borrowings from banks
during the current year and previous year.

(iii) quarterly returns or statements of current assets filed by the Company with banks or financial institutions
are in agreement with the books of accounts. (Also Refer note 5l(v))

(iv) With respect to the term loan from Axis Bank of E 2550 Lakhs, there was a breach of a financial covenant
relating to current ratio (which is one of the 3 ratios stipulated) as at the end of the reporting year. As per the
terms of the sanction vide letter dated 15 July 2025, the current ratio was to be >=1.20, whereas the current
ratio as at the end of the reporting year is 0.73. As per the requirements of IND AS 1, the lender has agreed
after the reporting date but before the approval of the financial statements that the above-mentioned
breach will not be considered as an event of default. and consequently, based on the terms of the loan
agreement dated 07 October 2025, the loan will not be treated as payable on demand.

(v) Unsecured loan from related party is repayable from June 2027 onwards in tranches on mutully agreed
basis.

Details in respect of Current Borrowings are as under:

(i) Cash Credit facilities and demand loans are secured by way of first charge over the entire current assets
of the Company and mortgage over land and building comprising of 9.70 acres belonging to the company
situated at East Coast road, Gnanananda Place, Kalapet, Pondicherry. The cash credits are repayable on
demand.

(ii) The Fund Based Cash Credit facilities and Non fund based facilities are sanctioned by HDFC Bank upto E
2,500 Lakhs (PY E 2,500 Lakhs). by Axis Bank upto E 4,500 Lakhs (PY E 2,500 Lakhs) and Shinhan bank upto E
1,000 Lakhs (PY 1,000).

(iii) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions
are in agreement with the books of accounts.

(iv) Also refer Note 20.

30.2 Trade Receivables and Contract Balances

The Company classifies the right to consideration in exchange for deliverables as receivable. A receivable is
a right to consideration that is unconditional upon passage of time. Revenue is recognized as and when the
related goods are delivered to the customer. Trade receivable are presented net of impairment in the Balance
Sheet.

Contract liabilities include payments received in advance of performance under the contract, and are realized
with the associated revenue recognized under the contract.

The Company has applied practical expedient and has not disclosed information about remaining performance
obligations in contracts where the original contract duration is one year or less or where the entity has the right
to consideration that corresponds directly with the value of entity's performance completed to date.

30.4 Information about major customers

The Company is a manufacturer of caustic soda lye, flakes, liquid chlorine, hydrogen gas, pvco pipes and other
products.

Revenues arising from direct sales above includes revenues of approximately E 4,592.40 Lakhs (Previous Year
E 7,339.73 Lakhs) which arose from sales to the company's single largest customer in Chemical segment and E
Nil in PVCO segment. (Previous Year E 1,471.98 Lakhs). No other single customers contributed 10% or more to the
Company's revenue during the current year.

Note: The Company has estimated and recognized the impact of implementation of the New Labour Codes
under Employee benefits expense for the year ended 31 March 2026. The impact of the same is not material for
the year.

The Company continues to monitor the notification of State Rules and further clarifications from the Government
in respect of other aspects of the Labour Codes. Any additional impact arising from such developments will be
assessed and appropriately accounted for in the books as and when such rules are notified or clarifications are
issued.

Notes:

(i) The amounts shown above represent best possible estimate carried on the basis of the available
information. The uncertainties and possible reimbursement are dependent on the outcome of the various
case proceedings which have been initiated by the Company or the claimants, as the case may be, and
therefore cannot be predicted accurately.

(ii) Figures in bracket indicate previous year figures.

41. EMPLOYEE BENEFIT PLANS
I. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund which are defined contribution plans, for qualifying
employees. During the year, the Company has recognised the following amounts under Defined Contribution
Plan in the Statement of Profit and Loss:

II. Defined benefit plans

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per
the Code on Social Security, 2020 (CSS) effective 21 November 2025. The provision includes amount payable to
"fixed term employees" who have been in continuous service for a period of 1 year in addition to other employees
who are eligible for gratuity benefits post the continuous employment period of 5 years. As per the said Code
on Social Security, 2020, gratuity entitlement is based on the last drawn wages computed proportionately
for 15 days for every year of completed service or part thereof in excess of six months. Previously, estimation
was based on the provisions of the Payment of Gratuity Act, 1972. The Company makes annual contribution
to the group gratuity scheme administered by the Life Insurance Corporation of India and Aditya Birla Sun Life
Insurance Company Limited. Gratuity has been accrued based on actuarial valuation as at the balance sheet
date, carried out by an independent actuary.

(i) The current service cost and interest expense for the year are included in the "Employee Benefit Expenses
in the statement of profit & loss under the line item "Contribution to Provident and Other Funds".

(ii) The remeasurement of the net defined benefit liability is included in other comprehensive income.

The sensitivity analysis presented above may not be
representative of the actual change in the defined
benefit obligations as it is unlikely that the change in
assumptions would occur in isolation of one another
as some of the assumptions may be correlated.

Furthermore in presenting the above sensitivity
analysis the present value of defined benefit obligation
has been calculated using the projected unit credit
method at the end of the reporting period which is
the same as that applied in calculating the defined
benefit obligation liability recognised in the balance
sheet.

There is no change in the methods and assumptions
used in preparing the sensitivity analysis from the
prior years.

(g) Effect of plan on Entity's future cash flows

(i) Funding arrangements and funding policy:

The Company has a gratuity fund to provide for
payment of gratuity to the employees. Every year, the
insurance Company carries out a funding valuation
based on the latest employee data provided by the
company. The deficit in the assets in funded by the
company.

(ii) The Company expects to make a contribution of
E Nil during the next financial year.

(iii) The weighted average duration of the benefit
obligation as at 31 March 2026 is 4.9 years (5.1 years as
at 31 March 2025).

44. FINANCIAL INSTRUMENTS
(l) Capital Management

The Company manages its capital to maximise shareholders' returns while maintaining a sound and optimal
capital structure. For the purpose of capital management, capital comprises equity share capital and other
equity, while debt comprises borrowings and current maturities of long-term debt, net of cash and bank
balances and short-term investments. The Company monitors its capital structure and liquidity position on
a periodic basis, including through the gearing ratio, and there has been no change in its overall capital risk
management strategy compared to the previous year. Although the Company had a net current liability position
at the reporting date, it has access to adequate liquidity through sanctioned credit facilities and unutilised
funding lines. Based on fund flow projections, available financing arrangements and expected drawdown of
sanctioned facilities, management believes the Company has sufficient resources to meet its obligations as
they fall due and to maintain an appropriate capital structure. The Company is not subject to any externally
imposed capital requirements.

(III) Financial Risk Management Framework:

The Company manages financial risk relating to the operations through internal risk reports which analyse
exposure by degree and magnitude of risk. These risks include market risk (including currency risk, interest
rate risk and other price risk), credit risk and liquidity risk. The Company does not enter into or trade financial
instruments including derivative financial instruments for speculative purpose.

(IV) Foreign Currency Risk Management:

The Company undertakes transactions denominated in foreign currencies and consequently, exposures to
exchange rate fluctuations arises. The Company has not entered into any derivate contracts during the year
ended 31 March 2026 and there are no outstanding contracts as at 31 March 2026.

(V) Foreign Currency sensitivity analysis:

The following table details the Company's sensitivity to a 5% increase and decrease in E against the relevant
foreign currencies. 5% is the rate used in order to determine the sensitivity analysis considering the past trends
and expectation of the management for changes in the foreign currency exchange rate. The sensitivity analysis
includes the outstanding foreign currency denominated monetary items and adjusts their translation at the
period end for a 5% change in foreign currency rates. A positive number below indicates a increase in profit/
decrease in loss and increase in equity where the E strengthens 5% against the relevant currency. For a 5%
weakening of the E against the relevant currency, there would be a comparable impact on the profit or loss and
equity and balance below would be negative.

(VI) Forward foreign exchange contracts:

There are no forward foreign exchange contracts outstanding as at 31 March 2026.

(VII) Liquidity Risk Management:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company manages
liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and
actual cash flows and by matching maturing profiles of financial assets and financial liabilities in accordance
with the approved risk management policy of the Company.

Liquidity and Interest Risk Tables:

The following tables detail the Company's remaining contractual maturity for its non-derivative financial
liabilities with agreed repayment periods. The tables include both interest and principal cash flows.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves
at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company
may be required to pay.

Interest Rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates.

Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for term loan at
the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the
liability outstanding at the end of the reporting period was outstanding for the whole year. A change (decrease/
increase) of 100 basis points in interest rates for term loan at the reporting date would increase/(decrease)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain
constant.

Non-interest rate bearing financial assets disclosed above includes Trade Receivable, Cash, Balances with
banks held in current accounts and Other Financial Assets.

Fixed interest rate instruments disclosed above represents balances with banks held in deposit accounts and
discounted financial assets.

(VIII) Credit Risk:

Credit risk refers to the risk that a customer or a counterparty will default on its contractual obligations resulting
in a financial loss to the Company. The carrying amount of the financial assets recorded in these financial
statements, grossed up for any allowance for losses, represents the maximum exposures to credit risk.

(IX) Fair value of financial assets and financial liabilities that are not measured at fair value
(but fair value disclosures are required)

The Management considers that the carrying amount of financial assets and financial liabilities recognized in
the financial statements approximate their fair values.

(X) Offsetting of financial assets and financial liabilities

The Company has not offset financial assets and financial liabilities.

45. FAIR VALUE HIERARCHY

This note provides information about how the Company determines fair value of various financial assets and
liabilities.

46. SEGMENT INFORMATION

Description of segments and principal
activities

The company identifies its operating segment based
on the nature and class of product and services,
nature of production process and assessment of
differential risks and returns and financial reporting
results reviewed by the Chief Operating Decision
Maker (CODM) for the purposes of resource allocation
and assessment of performance. Operating
segments have been identified on the basis of
the nature of products/services and have been

identified as per the quantitative criteria specified
in the Ind AS. For financial statements presentation
purposes, individual operating segments have been
aggregated into a single operating segment after
taking into consideration the similar nature of the
products, production processes and other risk factors.

Specifically, the Company's reportable segments
under Ind AS are as follows:

1) Chemicals and related Products/Services

2) PVC-O Pipes

Geographical segments

The geographical segments considered for disclosure are based on markets, broadly as India and Others.

Segment accounting policies

In addition to the significant accounting policies applicable to the business segment as set out in note 1.16, the
accounting policies in relation to segment accounting are as under:

Operating revenues and expenses related to both third party and inter-segment transactions are included in
determining the segment results of each respective segment. Inter segment sales are eliminated in consolidation.

Other income earned and finance expense incurred are not allocated to individual segment and the same has
been reflected at the Company level for segment reporting.

The total assets disclosed for each segment include all operating assets used by each segment, and primarily
include receivables, property, plant and equipment, intangibles, inventories, operating cash and bank balances,
inter-segment assets and exclude, deferred tax assets and income tax etc.

Segment liabilities comprise operating liabilities and exclude external borrowings, provision for taxes, deferred
tax liabilities etc.

50. EVENTS SUBSEQUENT TO THE BALANCE
SHEET DATE:

(i) The Board of Directors have recommended a
final dividend of 12.50% (E 1.25 per Equity Share of
E 10 each) for the financial year 2025-26 which
is subject to the approval of the shareholders in
the forthcoming Annual General Meeting of the
Company.

51. ADDITIONAL REGULATORY INFORMATION

(i) The Company has not revalued any of its
property, plant and equipment and intangible
assets during the year.

(ii) No proceedings have been initiated during the
year or are pending against the Company as at
31 March 2026 for holding any benami property
under the Benami Transactions (Prohibition)
Act,1988 (as amended in 2016) and rules made
thereunder.

(iii) 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).

(iv) The Company has not defaulted in the repayment
of loans or other borrowings or in the payment
of interest thereon to any lender during the year.

The Company has not been declared wilful
defaulter by any bank or financial institution or
government or any government authority.

(v) The quarterly returns or statements comprising
(stock statements, book debt statements, credit
monitoring arrangement reports, statements on
ageing analysis of the debtors/other receivables,
and other stipulated financial information filed
by the Company with such banks or financial
institutions are in agreement with the unaudited
books of account of the Company of the
respective quarters.

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

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

(viii) 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.

(ix) 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.

(x) The Company does not have any Scheme of
Arrangements which have been approved by the
Competent Authority in terms of sections 230 to
237 of the Act.

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

(xii) The Company has utilised the borrowing amount
taken from financial institutions for the purpose
as stated in the sanction letter.

(xiii) The Company uses an accounting software
for maintaining its books of accounts that has
a feature of recording audit trail, which was
enabled and operating throughout the year.
However, in respect to a payroll software, in the
absence of service organization control report
from the vendor, the Company is unable to assess
whether the audit trail feature of the said software
was enabled and operated for the audit period
01 January 2026 to 31 March 2026, for all relevant
transactions recorded in the said software and
whether there was any instance of the audit trail
feature been tampered with. The Company has
established and maintained adequate internal
controls over its financial reporting.

52. The Board of Directors of the Company has
reviewed the realisable value of all the current assets
and has confirmed that the value of such assets
in the ordinary course of business will not be less
than the value at which these are recognized in the
financial statements. In addition, the Board has also
confirmed the carrying value of the non-current
assets in the financial statements. The Board, duly
taking into account all the relevant disclosures made,
has approved these standalone financial statements
in its meeting held on 13 May 2026.