(q) Provisions and contingent liabilities

Provisions for claims including litigations are recognised when the Company has a present obligation as a result of past events, in the year when it is established by way of orders of court or government notifications etc. that it is probable that an outflow of resources will be required to settle the obligations and the amount can be reasonably estimated. The provision including any subsequent adjustments are accounted for in the same expenditure line item to which the claim pertains.

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.

(r) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116 and this may require significant judgment. The Company also uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend or terminate the lease if the Company is reasonably certain based on relevant facts and circumstances that the option to extend or terminate will be exercised. If there is a change in facts and circumstances, the expected lease term is revised accordingly.

The discount rate is generally based on the interest rate specific to the lease being evaluated or if that cannot be easily determined the incremental borrowing rate for similar term is used.

due as per terms of agreements. The respective leased assets are included in the financial statements based on their nature.

(s) Statement of Cashflows

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cashflows are segregated into and presented as cashflows from operating, investing and financing activities.

(t) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of directors of the Company has been identified as being the chief operating decision maker by the Management of the company. The Business activity of the company majorly falls within one business segment viz "Chemicals""

(u) Accounting policies not specifically referred above are consistent with generally accepted accounting practices.

Note No. 37

Employee Defined Benefits:

Gratuity

The Company is having payment of gratuity plan through gratuity trust. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Asset Volatility

The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan assets underperform compared to this yield, this will create or increase a deficit. The defined benefit plans may hold equity type assets, which may carry volatility and associated risk.

Changes in bond yields

A decrease in government bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of the plans' investment in debt instruments.

Inflation risk

The present value of some of the defined benefit plan obligations are calculated with reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability. The post retirement benefit obligation is sensitive to inflation and accordingly, an increase in inflation rate would increase the plan's liability.

Life expectancy

The present value of defined benefit plan obligation is calculated by reference to the best estimate of the mortality of plan participants, both during and after the employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Note No. 41

A total of 2867 chlorine tonners (including rented tonners) were in circulation with various customers as returnable empties as on 31.3.2024.

Note No. 42

Additional Regulatory Information pursuant to the requirement in Division II Schedule III of Companies Act, 2013 are as follows:

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

b) The Company has not been declared wilful defaulter by any bank or financial institution.

c) The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both

during the current or previous year.

d) All the title deeds of Immovable Properties are held in the name of the company except leased properties.

e) The company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

f) The company has not granted any loans or advances in the nature of loans to promoters, directors, key managerial personnel

and the related parties either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment,"

g) Compliance with number of layers of companies: This is not applicable

h) Utilisation of borrowed funds & Share Premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the company (ultimate beneficiaries). The company has not received any fund from any party(s) (funding party) with the understanding whether, directly or indirectly lend or invest in other persons or entities identify by on or behalf of the company (ultimate beneficiaries) or provide any guarantee , security or the like on behalf of ultimate beneficiaries.

i) Disclosure for Struck off Companies

The following table depicts the details of balances outstanding in respect of transactions undertaken with a company struck-off under section 248 of the Companies Act, 2013:

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

k) The Company has not any such 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).

Note No. 43

Financial Risk Management

The company's activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The company's primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.

Financial guarantees: The Company is exposed to credit risk in relation to guarantees given to bank. The company's maximum exposure in this regard is C0.81 Crores, which is the maximum amount company would have to pay if the guarantee is called upon. Further the company has given bond of C363.41 Crores to Custom Authorities against which the liability of custom duty has since been paid. The continuity bond after cancellation is awaited from Custom Authorities.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company's receivables from customer and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding account receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates also has influence on credit risk assessment. The company has taken dealer securities which are considered in determination of expected carried losses, where applicable. The company makes an allowance for doubtful trade receivable using the simplified approach for expected credit loss and by continuously monitoring the recoverability of receivable balances.

Investments

The company limits its exposure to credit risk by generally investing in liquid securities and only with counter parties that have a good credit rating. The company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors.

Liquidity Risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they become due. The company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also the company is utilising cash credit limits (Fund Based and Non Fund Based) of C75 Crore sanctioned by banks from time to time as and when required.

Foreign Currency risk.

The company is exposed to foreign currency risk to the extent of exchange rate fluctuation at the time of payment of purchase price applicable in Foreign Letter of Credit (FLC) .The currencies in which these transactions are primarily denominated are US Dollar and EURO.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company do not have exposure to the risk of changes in market interest rates relating to company's debt obligations as it is on fixed interest rates.

Note No. 45

The Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13, 2020. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

Note No. 46

Fair Value Hierarchy

The company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, loans, other financial assets, borrowings, trade payables and other financial liabilities at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.

Note:

EBIT - Earnings before interest and taxes including other income EBITDA - Earnings before interest, taxes, depreciation and amortisation.

PAT - Profit after taxes.

* Net working capital is -ve

Note No. 48

The business activity of the company falls within one broad business segment viz. "Chemicals" Hence, the disclosure requirement of Ind AS 108 of 'Segment Reporting' is not considered applicable.

Note No. 49

As at 31 March 2024, the Company's current liabilities exceed its current assets by C9445.03 Lakhs. During the year, the Company has generated positive cashflows from operations amounting to C2753.22 Lakhs. Current liabilities as at 31 March 2024 include

outstanding short-term loans (excluding current maturities of long term loans) of C4319.15 Lakhs. As per the estimated projections, the Company expects to generate positive cashflows from its operations in the foreseeable future. Further, the Company has unutilized credit facilities of C681 Lakhs as at 31 March 2024. Considering the above, the Company is of the view that it will be able to meet its obligations, as and when due, for a period of at least 12 months from the balance sheet date. Therefore, the management believes that the use of going concern assumption in preparation of these financial statements is appropriate.

Note No. 50

a) To make the financial statements more relevant and provide appropriate information to the users, the corresponding figures of the previous year have been re-grouped/reclassified in following cases:

i) Right of use assets of C550.49 Lakhs which was earlier shown under " Property, plant and equipment" in Note no. 3, has now been shown separately on the face of balance sheet (Note No. 3a) .

ii) Security deposit of C2083.27 Lakhs which was shown under "Other Non Current Assets" (Note No. 9) in previous year has been reclassified as "Non current financial assets" (Note No. 7).

iii) Insurance Claim Recoverable of C7.18 Lakhs which was shown under"Other Current Assets" (Note No. 14) in previous year has been reclassified as"Other current financial assets" (Note No. 13).

iv) Current portion of "Lease liabilities "amounting to C4.24 Lakhs has been shown on the face of balance sheet (refer Note No. 18) which was earlier shown under "Current liabilities - Borrowings" (Note No. 20).

v) Creditors for capital goods for C2604.50 Lakhs which was earlier stand included in "Current financial liabilities - Trade Payable" in Note No. 21 has now been reclassified and shown under" Other financial liabilities ( Note No. 22)

vi) "Store & spares consumed" amounting to C 1555.01 Lakhs was shown under "Manufacturing Expenses" (Note No. 29) in previous year, however the same has been reclassified under head"Other Expenses "(Note No. 32)."

b) The figures have been rounded off to the nearest C Lakhs.

Note No. 51

The Board of Directors of the Company, duly taking into account all the relevant disclosures made, has approved these standalone financial statements in its meeting held on May 30, 2024.

For and on Behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/-

(ARUN KUMAR KAUSHAL) (SUGANDHA KUKREJA) (JATIN DAHIYA) (NAVEEN CHOPRA)

Chief Financial Officer Company Secretary Executive Director Managing Director

FCS-11578 DIN: 08106876 DIN: 08465391

As per our separate report of even date For S. Tandon & Associates LLP Chartered Accountants Firm Registration No. 006388N ICAI UDIN : 24518893BKDIDK9186

Sd/-

Place: Chandigarh ^(Nip^{un Rast}°g»

Date : May 30, 2024 ^Pa.^rtn.?^r

Membership No. 518893