1.1 Statement of compliances

The standalone financial statements have been
prepared and comply in all material aspects with
Indian Accounting Standards (Ind AS) notified under
the Section 133 of the Companies Act, 2013, read with
the Companies (Indian Accounting Standards) Rules
2015 (“as amended”) and other relevant provisions
of the Companies Act, 2013. The material accounting
policies have been applied consistently to all the
periods presented in the financial statements, unless
otherwise indicated.

1.2 Basis of preparation and presentation

The standalone financial statements have been
prepared on the historical cost basis, except for certain
financial instruments and defined benefit plans which
are measured at fair value at the end of each reporting
period, as explained in the accounting policies below:

Historical cost is generally based on the fair value of
the consideration given in exchange for goods and
services.

Fair value is the price 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. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability take place either:

- In the principal market for the asset or liability, or

- I n the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their best economic interest.

Fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the assets in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level inputs that is significant to
the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2 - Valuation techniques for which the

lowest level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the

lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above.

Quantitative disclosures of fair value measurement
hierarchy (Refer Note 34)

All assets and liabilities have been classified as current
or non-current as per the Company's normal operating
cycle and other criteria set out in Note 1.22 operating
cycle. Based on the nature of products and services
and the time between the acquisition of assets for
processing and their realisation in cash and cash
equivalent, the Company has ascertained its operating
cycle as 12 months for the purpose of current and
non-current classification of assets and liabilities,
except for salt at crystalizers for which the operating
cycle is 24 months.

The Company is confident of getting its land lease
renewed as mentioned in Note 3. Hence the financial
statements have been prepared on going concern
basis.

1.3 Changes in Accounting Standards with effect from
April 01, 2025

(i) New and amended standards adopted by the
Company:

The Company has applied the following
amendments for the first time for their annual
reporting period commencing April 01, 2025:

Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates

In May 2025, the Ministry of Corporate Affairs
(MCA) notified amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange Rates,
applicable for annual periods beginning on or after
April 01,2025. The amendment introduces a new
framework for assessing whether a currency is
exchangeable into another currency and provides
guidance when exchangeability is lacking.

The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in its
financial statements.

In August 2025, the MCA notified the following
amendments:

• Ind AS 1 - Presentation of Financial
Statements (applicable w.e.f. April 01, 2025)

The amendment relates to classification
of liabilities as current or non-current and
non-current liabilities with covenants. In the
context of classifying a liability as current,
it removes the requirement of existence of
a right to defer settlement for at least 12
months after the reporting date and instead
requires that the said right should exist on
the reporting date and have substance. The
amendment also introduces guidance on
classification of liabilities with covenants.

Based on the Company's assessment,
the Company has no impact of these
amendments in its classification criteria of
current and non-current liabilities.

• Ind AS 7 - Statement of Cash Flows and Ind
AS 107 - Financial Instruments: Disclosures
(applicable w.e.f. April 01, 2025)

The amendment in Ind AS 7 requires to
inform users of financial statements of the
existence of supplier finance arrangements
and explain the nature of the arrangements,
the carrying amount of liabilities and the
range of payment due dates. Ind AS 107
has been amended to add supplier finance
arrangements as a factor that may cause
concentration of liquidity risk.

The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in
its financial statements.

• Ind AS 12 - International Tax Reform - Pillar
Two Model Rules (applicable immediately)

The amendments provide a temporary
mandatory relief from deferred tax
accounting for top-up tax and disclose that
they have applied the relief. This relief is
immediate and applies retrospectively.
The Company has determined that this
amendment does not have any impact in its
standalone financial statements.

1.4 Changes in Accounting Standards notified but not
yet effective March 31, 2026.

New Accounting Standards/Amendments notified but
not yet effective.

MCA has not notified any new standards or
amendments to the existing standards applicable to
the Company during the year ending March 31, 2026.

1.5 Property, plant and equipment

Property, plant and equipments (PPE) held for use in
the production or supply of goods or services, or for
administrative purposes, are stated in the standalone
balance sheet at cost less accumulated depreciation
and accumulated impairment losses.

PPE in course of construction for production, supply or
administrative purposes are carried at cost, less any
recognised impairment loss. Cost includes professional
fees and, for qualifying assets, borrowings costs
capitalised in accordance with Company's accounting
policy. Such properties are classified to appropriate
categories of property, plant and equipment when
completed and ready for intended use. Depreciation
of these assets, on the same basis as other property
assets, commences when the assets are ready for
their intended use.

Advance paid towards acquisition of property, plant
and equipment outstanding at each standalone
balance sheet date is classified as capital advances
under other non current assets.

Cost of assets not ready to use are disclosed under
'capital work in progress'.

Depreciable amount is the cost of an asset less its
estimated residual value. Depreciation on Property,
plant and equipment has been provided on the
straight-line method as per the useful life prescribed
in Schedule II to the Companies Act, 2013 except in
respect of the following categories of assets, in whose
case the life of the assets has been assessed as under
based on technical advice, taking into account the
nature of the asset, the estimated usage of the asset,
the operating conditions of the asset, past history
of replacement, anticipated technological changes,
manufacturers warranties and maintenance support,
etc. Useful life of the Property, plant and equipment is
reassessed at each year end based on the technical
evaluation.

PPE individually costing Rs. 5,000 or less are fully
depreciated in the year of capitalization.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,
plant and equipment is determined as the difference
between the sale proceeds and carrying amount of the
asset and is recognised as profit or loss.

Upon transition to the Ind AS, the Company has
elected to continue with the carrying value of all of its
Property, Plant and Equipment as at April 01, 2017
(transition date) measured as per the previous GAAP,
as its deemed cost.

1.6 Intangible assets other than goodwill

Intangible assets with finite useful life are carried at
cost less accumulated amortisation and impairment
losses, if any. The cost of an intangible asset comprises

of the purchase price, including any import duties and
other taxes and any directly attributable expenditure
on making the asset ready for its intended use and net
of any trade discounts, tax credits and rebates.

The intangible assets are amortised over their
respective estimated useful life on a straight-line basis,
commencing from the date the asset is available to
the Company for its use. The amortisation period are
reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed
pattern.

Subsequent expenditure on an intangible asset
after its purchase/completion is recognised as an
expense when incurred unless it is probable that such
expenditure will enable the asset to generate future
economic benefits in excess of its originally assessed
standards of performance and such expenditure can
be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of
the asset.

Derecognition of intangible assets:

An intangible asset is derecognised on disposal, or
when no future economic benefits are expected from
use. Gains or losses arising from derecognition of an
intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of
the asset, are recognised in the statement of profit or
loss.

Useful lives of intangible assets:

Estimated useful lives of the intangible assets are as
follows:

Software licenses - 5 Years

Deemed cost on transition to Ind AS

Upon transition to Ind AS, the Company has elected to
continue with the carrying value of all of its intangible
assets as at April 01, 2017 (transition date) measured
as per the previous GAAP, as its deemed cost.

1.7 Impairment of property, plant and equipment &
intangible assets

At the end of each reporting period, the Company
reviews the carrying amounts of its property, plant and
equipment and intangible assets 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.

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.

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 standalone statement
of profit and loss.

1.8 Right of use assets

The Company has adopted Indian Accounting
Standards (“Ind AS”) 116 “Leases” to all its lease
contracts existing on April 01, 2019 adopting modified
retrospective approach. Consequently the Company
recorded the lease liability calculated at present
value of remaining lease payments discounted at the
incremental borrowing rate. Right to use asset has
been recognised to this extent.

1.9 Investments in subsidiary

Investment in subsidiary is carried at cost less
impairment losses, if any. Where an indication of
impairment exists, the carrying amount of investments
is assessed and impairment provision is recognised,
if required, immediately to its recoverable amount.
On disposal of such investments, difference between

the net disposal proceeds and carrying amount is
recognised in the standalone statement of profit and
loss.

1.10 Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

- the contract involves the use of an identified
asset -this may be specified explicitly or implicitly,
and should be physically distinct or represent
substantially all of the capacity of a physically
distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified;

- the Company has the right to obtain substantially
all of the economic benefits from use of the asset
throughout the period of use; and

- the Company has the right to direct the use of the
asset. The Company has this right when it has
the decision-making rights that are most relevant
to changing how and for what purpose the asset
is used. In rare cases where the decision about
how and for what purpose the asset is used is
predetermined, the Company has the right to
direct the use of the asset if either:

a) the Company has the right to operate the
asset; or

b) the Company designed the asset in a
way that predetermines how and for what
purpose it will be used.

This policy is applied to contracts entered into, or
changed, on or after April 01, 2019.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-
of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or
less and leases of low value assets (assets of
less than INR 10 Lakhs in value). The Company
recognises the lease payments associated with
these leases as an expense over the lease term.

1.11 Inventories

Inventories are valued at the lower of cost on
moving weighted average basis or estimated net
realisable value (net of allowances) after providing

for obsolescence and other losses, where considered
necessary. The cost comprises of cost of purchase, cost
of conversion and other costs including appropriate
production overheads in the case of finished goods
and work-in-progress, incurred in bringing such
inventories to their present location and condition,
including transportation cost, transit insurance and
any other charges. Trade discounts or rebates are
deducted in determining the costs of purchase. Net
realisable value represents the estimated selling price
for inventories less all estimated costs of completion
and costs necessary to make the sales.

Salt at crystallizers (work-in-progress) is valued at
cost on the estimated quantity based on the depth and
density statement of salt precipitated in salt crystaliser
at the close of the year.

1.12 Cash & Cash Equivalents

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents include cash
on hand, other short-term, highly liquid investments
with original maturities of three months or less
that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of
changes in value.

1.13 Foreign currency transactions and translations

(i) Functional and presentation currency

Items included in the standalone financial
statements of the Company are measured using
the currency of the primary economic environment
in which the entity operates ('the functional
currency'). The standalone financial statements
are presented in Indian Rupee (INR), which is the
Company's functional and presentation currency.

(ii) Transactions and balances

In preparing the standalone financial statement,
transactions in currencies other than the entity's
functional currency (foreign currencies) are
recognised at the rates of exchange prevailing at
the dates of the transactions. At the end of each
reporting period, monetary items denominated
in foreign currencies are retranslated at the
rates prevailing at that date. Non-monetary
items carried at fair value that are denominated
in foreign currencies are retranslated at the
rates prevailing at the date when the fair value
was determined. Non-monetary items that are
measured in terms of historical cost in a foreign
currency are not retranslated.

Exchange differences on monetary items are
recognised in profit or loss in the period in which they
arise except for:

• exchange differences on foreign currency
borrowings relating to assets under construction
for future productive use, which are included in
the cost of those assets when they are regarded
as an adjustment to interest costs on those
foreign currency borrowings;

• exchange differences on monetary items
receivable from or payable to a foreign operation
for which settlement is neither planned nor
likely to occur (therefore forming part of the
net investment in the foreign operation), which
are recognised initially in other comprehensive
income and reclassified from equity to profit or
loss on repayment of the monetary items.

1.14 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist
of interest and other costs that an entity incurs in
connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

1.15 Revenue recognition

Revenues are derived primarily from sale of Industrial
Salt, Liquid Bromine and other marine chemicals.
Revenue is measured based on the consideration
specified in a contract with a customer and excludes
amounts collected on behalf of third parties.

Revenue is recognised upon transfer of control of
products or services to customers for an amount
that reflects the probable consideration expected
to be received in exchange. Revenue is reduced for
estimated customer returns, rebates and other similar
allowances.

The Company accounts for volume discounts and
pricing incentives to customers as a reduction of revenue
based on the rateable allocation of the discounts/
incentives to each of the underlying performance
obligation that corresponds to the progress by the
customer towards earning the discount/incentive. Also,
when the level of discount/pricing incentives varies
with increases in levels of revenue transactions, the
Company recognises the liability based on its estimate

of the customer's future purchases. If it is probable
that the criteria for the discount will not be met, or if
the amount thereof cannot be estimated reliably, then
discount/pricing incentives is not recognised until the
payment is probable and the amount can be estimated
reliably. The Company recognises changes in the
estimated amount of obligations for discounts/pricing
incentives in the period in which the change occurs.

Revenue from services has been recognised as and
when the service has been performed.

1.16 Employee benefits

Defined contribution plans

Payments to defined contribution retirement
benefit plans are recognised as an expense when
employees have rendered service entitling them to the
contributions.

Defined benefit plans

For defined benefit plans, the cost of providing benefits
is determined using the projected unit credit method,
with actuarial valuations being carried out at the end
of each annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect of
the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding net interest), is
reflected immediately in the balance sheet with a charge
or credit recognised in other comprehensive income
in the period in which they occur. Remeasurement
recognised in other comprehensive income is reflected
immediately in retained earnings and is not reclassified
to profit or loss. Past service cost is recognised in
profit or loss in the period of a plan amendment. Net
interest is calculated by applying the discount rate at
the beginning of the period to the net defined benefit
liability or asset. Defined benefit costs are categorized
as follows.

- Service Cost (including current service cost,
past service cost, as well as gain and losses on
curtailments and settlements)

- Net interest expense or income, and

- Remeasurement.

The Company presents the first two components of
defined benefit costs in profit or loss in the line item
“Employee Benefits Expense”. Curtailment gains and
losses are accounted for as past service costs.

The retirement benefit obligation recognised in the
balance sheet represents the actual deficit or surplus
in the Company's defined benefit plans. Any surplus
resulting from this calculation is limited to the present

value of any economic benefits available in the form
of refunds from the plans or reductions in future
contributions to the plans.

A liability for a termination benefit is recognized at the
earlier of when the entity can no longer withdraw the
offer of the termination benefit and when the entity
recognises any related restructuring costs.

The Company has an employees 'gratuity fund
managed by the Life Insurance Corporation of India.

Short - term and other long - term employee
benefits

A liability is recognised for benefits accruing to
employees in respect of wages and salaries, annual
leave in the period related service is rendered at the
undiscounted amount of the benefits expected to be
paid in exchange for that service.

Liabilities recognised in respect of other long term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided
by the employees up to the reporting date.

Share based payments

The Company recognises compensation expense
relating to share based payments in accordance with Ind
AS 102 Share-based Payment. Stock options granted
by the Company to its employees are accounted as
equity settled options. Accordingly, the estimated fair
value of options granted that is determined on the date
of grant, is charged to statement of Profit and Loss on
a straight line basis over the vesting period of options,
with a corresponding increase in equity.