a) Rights, preferences and restrictions:

The Company has one class of shares referred to as equity shares having a par value of ' 10 each.

i) Equity shares

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts and preference shares. The distribution will be in proportion to the number of equity shares held by the shareholders.

Each holder of equity shares is entitled to one vote per share.

ii) Dividend

The dividend proposed by the Board, if any, is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

b) Issue of shares under rights issue:

On December 14, 2022, the Board of Directors of the Company approved the rights issue of equity shares. Subsequently the Right Issue Committee approved the rights issue of 29,37,662 equity shares of the face value of ' 10 each at a price of ' 170 per share (including a security premium of ' 160) in the ratio of 24:77, i.e. 24 new shares for 77 existing equity shares held by the eligible shareholders on record date, i.e. February 21, 2023. On March 23, 2023, the Committee has approved the allotment of 29,37,662 equity shares of face value of ' 10 each to the eligible shareholders. The entire proceeds received from the rights issue during the year amounting to ' 4994.03 lakhs were used for the objects stated in the offer document of the rights issue.

Equity issue expenses of ' 56.87 lakhs have been adjusted against securities premium in the year ended on March 31, 2023.

Nature and purpose of reserves

a) Securities premium

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

b) Retained earnings

Retained earnings are the profits that the Company has earned till date, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders.

c) Other reserve

As per Modified Sanction Scheme MS-10 and MS-13 approved by the Board of Industrial Finance and Reconstruction, the Company issued 0% redeemable and non-convertible preference shares of ' 1,000 lakhs to Atul Ltd (promoter) and received interest-free secured loan of ' 1,128.89 lakhs and interest-free unsecured loan of ' 539.58 lakhs from Atul Ltd. These financial liabilities are measured at amortised cost and the initial fair value difference is recognised as a capital contribution from Atul Ltd.

i) Information about individual provisions and significant estimates

a) Compensated absences

The compensated absences cover the liability for earned leave. Out of the total amount disclosed above, the amount of ' 1.29 lakhs (March 31, 2023: ' 1.39 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

b) Others

Regulatory and other claims:

The Company has provided for certain regulatory and other charges for which it has received claims. The provision represents the unpaid amount that it expects to incur | pay for which the obligating event has already arisen as on the reporting date.

i) Security details:

Working capital loans repayable on demand from banks (March 31, 2024: ' nil March 31, 2023: ' 0.62 lakhs) is secured by hypothecation of tangible current assets, namely, inventories and book debts of the Company as a whole and also secured by second and subservient charge on immovable and movable assets of the Company.

ii) Quarterly statements of current assets filed with banks during the year are in agreement with the books of account.

iii) The carrying amount of assets hypothecated as security for borrowing limits are:

during 2023-24, the loans aggregating ' 1,699 lakhs as of March 31, 2023, is converted into 1,69,90,000, 10.50% non-cumulative redeemable preference shares at ' 10 per share, amounting to ' 1,699 lakhs and an additional investment of ' 500 lakhs made into 50,00,000, 10.50% non-cumulative redeemable preference shares at ' 10 per share. During 2022-23, the loans aggregating ' 5,000.14 lakhs are converted into 27,19,000 equity shares at ' 110.34 per share amounting to ' 3,000.14 lakhs and 2,00,00,000, 10% non-cumulative redeemable preference shares at ' 10 per share, amounting to ' 2,000 lakhs.

Note 29.3 (F) Terms and conditions

1. Sales to and purchases from related parties were made on normal commercial terms and conditions and at prevailing market prices or where market price is not available, at cost plus margin.

2. Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

3. All outstanding balances are unsecured and are repayable in cash and cash equivalent.

Note 29.4 Current and deferred tax

The major components of income tax expense for the years ended March 31, 2024 and March 31, 2023, are:

Funded schemes

a) Defined contribution plans Gratuity

The gratuity fund is maintained with the Life Insurance Corporation of India and Bajaj Allianz Life Insurance under Group Gratuity scheme. Every employee is entitled to a benefit equivalent to the last drawn salary of 15 days for each completed year of service in line with the Payment of Gratuity Act, 1972 or the Company scheme, whichever is more beneficial. Gratuity is payable at the time of separation or retirement from the Company, whichever is earlier. The benefit vests after five years of continuous service.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability recognised in the Standalone Balance Sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the previous year.

Risk exposure

Through its defined contribution plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

i) Interest rate risk

A fall in the discount rate that is linked to the government securities rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark-to-market value of the assets depending on the duration of asset.

ii) Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than the assumed level will increase the plan liability.

iii) Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate, which is determined with reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities and other debt instruments.

iv) Concentration risk

The plan includes having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow regulatory guidelines.

c) Defined contribution plans:Provident fund

State defined contribution plans

Employers' contribution to employees' state insurance Employers' contribution to employees' pension scheme 1995

The provident fund and the state defined contribution plans are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognised by the income tax authorities. The contribution of the Company to the provident fund and other contribution plans for all employees is charged to the Standalone Statement of Profit and Loss.

a) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are: a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed in the Indian Accounting Standard. An explanation of each

includes investments in BEIL Infrastructure Ltd (21,000 equity shares) and Narmada Clean Tech (4,06,686 equity shares), which are for operation purposes and the Company has to hold it till production at GIDC, Ankleshwar site continues. The Company estimates that the fair value of these investments are not materially different as compared to its cost.

There were no transfers between any levels during the year.

Level 1: This hierarchy includes financial instruments measured using quoted prices. The fair value of all equity instruments that are traded on the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques, which maximise the use of observable market data and minimise the reliance on entity-specific estimates. The mutual fund units are valued using the closing net assets value. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

b) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

i) the use of quoted market prices or dealer quotes for similar instruments

ii) the fair value of the remaining financial instruments is determined using discounted cash flow analysis

c) Valuation processes

The Finance department of the Company includes a team that performs the valuations of financial assets and liabilities with assistance from independent external experts when required, for financial reporting purposes, including level 3 fair values.

The carrying amounts of trade receivables, bank deposits with less than 12 months maturity, cash and cash equivalents, other receivables, trade payables, employee benefits payable, payable towards expenses and retention are considered to be the same as their fair values due to the current and short-term nature of such balances.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 29.7 Financial risk management

The business activities of the Company are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. Responsibility for the establishment and oversight of the risk management framework lies with the Senior Management of the Company. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the risk management policies of the Company. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The risk management policies

Note 29.7 Financial risk management (continued)

are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the activities of the Company.

This note explains the risks which the Company is exposed to and how the Company manages the risks in the Standalone Financial Statements.

a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations. Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost or fair value through profit and loss deposits with banks and financial institutions, as well as credit exposures to trade | non-trade customers including outstanding receivables.

i) Credit risk management

Credit risk is managed through the policy surrounding Credit Risk Management.

ii) Provision for expected credit losses

The Company provides for expected credit loss based on the following:

Trade receivables

Trade receivables consist of a few customers, for which ongoing credit evaluation is performed on the financial condition of the account receivables. Historical experience of collecting receivables of the Company is supported by low-level of past default and hence the credit risk is perceived to be low.

b) Liquidity risk

The ultimate responsibility for liquidity risk management rests with the Board of Directors (Bord). The Board approves an appropriate liquidity risk management framework for short, medium and long-term funding and liquidity management requirements of the Company. The Management monitors rolling forecasts of the liquidity position of the Company and cash and cash equivalents on the basis of expected cash flows. Additionally, they manage liquidity risk by continuously monitoring the forecast and actual cash flows by matching the maturity profiles of financial assets and liabilities.

Note 29.7 Financial risk management (continued)

The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows, including contractual interest payment, as at the Standalone Balance Sheet date:

c) Market risk

i) Cash flow and fair value interest rate risk

Maturity analysis of financial liabilities of the Company is based on contractually agreed undiscounted cash flows as at the Balance Sheet date:

Borrowings of the Company was from Axis Bank Ltd and are mainly exposed to interest rate risk due to its variable interest rate borrowings. The interest rate risk arises due to uncertainties about the future market interest rate of these borrowings.

As an estimation of the approximate impact of the interest rate risk, with respect to financial instruments, the Group has calculated the impact of a 25 bps change in interest rates. A 25 bps increase in interest rates would have led to approximately an additional impact of ' nil lakhs (2022-23: ' 0.02 lakhs). A 25 bps decrease in interest rates would have led to an equal but opposite effect.

Note 29.8 Segment information

The Company operates in a single business segment that is the manufacturing of bulk chemicals. The Board is the Chief Operating Decision Maker (the ‘CODM') of the Company and makes operating decisions, assesses financial

performance and allocates resources based on discrete financial information. Since the Company operates in a single operating segment, separate segment reporting has not been made under Indian Accounting Standard (‘Ind AS') 108 - ‘Operating Segment'. Further, its operations are confined only to one geographical segment i.e. within India.

During 2023-24, the loans aggregating ' 1,699 lakhs as of March 31, 2023 is converted into 1,69,90,000, 10.50% non-cumulative redeemable preference shares at ' 10 per share, amounting to ' 1,699 lakhs and additional investment of ' 500 lakhs made into 50,00,000, 10.50% non-cumulative redeemable preference shares at ' 10 per share.

During 2022-23, the loans aggregating ' 5,000.14 lakhs are converted into 27,19,000 equity shares at ' 110.34 per share amounting to ' 3,000.14 lakhs and 2,00,00,000, 10% non-cumulative redeemable preference shares at ' 10 per share, amounting to ' 2,000 lakhs.

Above disclosures have been made based on information available with the Company, for suppliers who are registered as micro, small and medium enterprise under ‘The Micro, Small and Medium Enterprise Development Act, 2006' as at March 31, 2024. The auditors have relied upon in respect of this matter.

Note 29.12 Expenditure on Corporate Social Responsibility initiatives

a) Gross amount required to be spent by the Company during the year is ' 12.05 lakhs (March 31, 2023: ' 20.85 lakhs)

Note 29.14 Capital management

The primary objective of capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. It determines the capital requirement based on annual operating plans, long-term plans and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements (refer Note 29.13 (b) for debt-equity ratio).

Note 29.15 Other statutory information (required by schedule III to the Companies Act, 2013)

a) The Company has not entered into any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961.

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

c) The Company is not declared wilful defaulter by any bank or financial institution or other lender.

d) The Company has not traded or invested in cryptocurrency or virtual currency during the financial year.

e) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year.

f) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

g) No loans or advances in the nature of loans are granted to Promoters, Directors, Key Managerial Personnel and the related parties (as defined under the Companies Act, 2013) either severally or jointly with any other person.

h) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

i) There were no loans, advances and investments made in intermediary company.

Note 29.16 Relationship with struck off companies

There were no transactions or balances with struck off companies.

Note 29.17 Audit trail

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 records the audit trail of all transactions, creates an edit log of all changes made in the books of account along with when such changes were made and by whom. This feature of recording audit trail has operated throughout the year and was not tampered with during the year. In respect of aforesaid accounting software, after thorough testing and validation, audit trail was not enabled for direct data changes at the database level in view of the possible impact on the efficiency of the system. In respect of audit trail at the database level, the Company has established and maintained an adequate internal control framework over its financial reporting and based on its assessment, has concluded that the internal controls for the year ended March 31, 2024, were effective. The Company is in the process of system upgradation to meet the database level audit trail requirement.

Note 29.18 Foreign currency exposure

There was no foreign currency exposure as on March 31, 2024.

Note 29.19 Rounding off

Figure less than ' 500 have been shown as ‘0.00' in the relevant notes in these Standalone Financial Statement. Note 29.20 Authorisation for issue of the Standalone Financial Statements

The Standalone Financial Statements were authorised for issue by the Board of Directors on April 19, 2024.