Subsidiary Company Hindustan Fluorocarbons Ltd has created first charge in ROC, Hyderabad in favour of the company on 84.31 acres of land at Rudraram Village, Medak Dist., Telengana state towards zero coupon loan of Rs.2744.07 Lakh outstanding, the interest bearing loan of Rs.453.01 Lakh and interest accruing thereon till 31st March 2023 Rs.1075.05 (previous year Rs.1017.79 lakhs) is Rs.4272.13 lakhs (previous year Rs.4214.87 lakhs). As per the valuation report by an external registed independent valuer having professional qualification the value of the property comes to Rs.10196.76 Lakhs.

Securities Premium Reserve - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium Reserve”. The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

1. The preference shareholders have no voting rights.

2. The Government of India had released earlier in the year 2006-07 Rs.27000 Lakh (for financial restructuring Rs. 25000 Lakh and Caustic Soda Plant recommissioning Rs. 2000 Lakh) against allotment of 8% Non-Cumulative Redeemable Preference Shares, thereby broadening the capital base as per the revival scheme. The 8% Preference Shares were allotted to Government of India by the Board on 28th January, 2008, redeemable @ 20% commencing from 4th year with last redemption in the 8th year (ie.2015-16). At the request of the Company, Government of India had extended the commencement of redemption from financial year 2011-12 to financial year 2015-16 @ 25% each year. Government of India, had granted extension of redemption, subject to payment of interest @ 1.5 % pa, on the total amount of Rs.27000 Lakh and an amount of Rs.405 Lakh has been provided in the books of accounts during the year. Further interest @1 % is payable for default in repayment and accordingly interest amount of Rs.270 Lakh has been provided during the year.

i) There is a continuing default in repayment of loan from Government of India since the year 2009-10 and the overdue amount towards principal is Rs.45256.46 Lakh (previous year Rs.45256.46 Lakh) and for interest accrued is Rs.39860.59 Lakh (previous year Rs.34860.78 Lakh), these amounts are shown under 'Other Current Liabilities'. Company has during the year repaid loan overdue Principal amounts of Rs.NIL (previous year Rs.1404.00 Lakh).

ii) During the year the Company has made provision in respect of Damages/Penalty/Penal interest and the total cumulative provision is given below.

a. Interest (1.5 %) on Preference Share (Rs.270 Crore) postponement of redemption for 4 year Rs.405.00 lakhs.

b. Interest on default in repayment of Preference Share Capital @ 1 % Rs.270.00 lakhs per year.

Other miscellaneous expense includes Rs.10.61 lakhs pertaining to the year 2021-22 has been incorrectly accounted due to error as such the comparative amount has been restated as per Ind As8.

(a) Nature of the prior period error : Miscellaneous Expense

(b) Amount of correction : Rs.10.61 lakhs

(c) Financial line item affected: Note No.29 -Other Expense 30 EMPLOYEES BENEFIT PLAN:

A. Provision for leave encashment

The Company has made a provision and levied Rs.1180.00 Lakh (previous year Rs.1217.87 lakh) for leave encashment as on 31st March, 2023, as per the Ind AS-19 based on Actuarial Valuation and the unpaid amount of leave encashment claims submitted by the employees.

B. Provident fund

Employees receive benefits from the provident fund managed by the Company upto 30th June 2018. From 1st July 2018 onwards the Company has transferred the Provident fund accounts of all employees to Employees Provident Fund Organisation (EPFO) and managed by EPFO. The employee and employer each make monthly contributions to the Provident Fund/Pension Fund plan equal to 12% of the employees’ salary/wages.

C. Gratuity

Gratuity plan is governed by the Payment of Gratuity Act, 1972 and employee who has completed five years of service is entitled to gratuity and the level of benefits provided depended on the member’s length of service and salary at retirement age. The Employees’ Gratuity Fund Scheme, which is a defined benefit plan, is managed by the Trust through an Annuity Scheme maintained with Life Insurance Corporation of India (LIC). The balance fund available with LIC is Rs.1729.04 lakh (Previous year Rs.1490.18 lakh) and depoist with ICICI Bank Rs.0.43 lakh (Previous year Rs. 0.43 lakh)

A. Acturial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse salary growth experience:

Salary hikes that are higher than the assumed salary escalations will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates:

If actual mortality rates are higher than assumed mortality rate assumption then the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates:

If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk :

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

The Summary of the assumptions used in the valuations is given below:

Method of Valuation

Actuaries has used projected unit credit (PUC) Method to value the Defined benefit obligation.

31 PROPERTY, PLANT AND EQUIPMENT

a) Originally the Rasayani unit of the Company was in possession of land admeasuring 1012.355 acres (as per revenue records). Out of the said land, 251 acres were sold to BPCL and 20 acres were sold to ISRO during the year 2017-18, 38.687 acres were sold to BPCL in the year 2018-19. In the year 2019-20, 85.27 acres of land sold to BPCL and 0.386 acre was sold to IOCL (Petrol pump area). Out of the balance land of 65.840 acres, 22.717 acres has been idenitified as encroached, 32.547 acres in possession of MIDC, MSEB, HIL, MES etc, and 10.576 acres of public road, considered at Nil value. The said encroachment has been determined on the basis of the survey carried out by the company through M/s. The Geo Tek vide their report dated April 24, 2019. The balance 551.172 acres (Previous year 551.172 acres) of land has been revalued at the ready recknor rate or the agreed rate of sale to BPCL valuing to Rs.832.95 Crore (Previous year Rs. 832.95 Crore).

b) As per the communication received from Municipal commissioner Panvel, regarding the actual area of plot No.11 & 12 of survey No.738 on which there is a public road passing through and thereby the total area of Panvel land available for sale has reduced from 8 acre to 7.09 acre. Accordingly the reserve price (fair value) has been reduced to Rs.158 crore. The said proposal of Govt of Maharashtra has been approved by HOCL Board in its meeting to be held on 09.11.2022. The company is in the process of obtaining necessary approval from Administrative Ministry.

32 INVESTMENT

a) The Company has an investment of Rs.1106.00 lakh (previous year Rs.1106.00 lakh) in the equity share of subsidiary company M/s. Hindustan Fluorocarbons Ltd. (HFL) which is under BIFR since 1994. The net worth of the Company based on its latest audited balance sheet as at 31st March, 2023 is negative. Market value of the shares (face value Rs.10) as on 31.03.2023 was Rs.8.91 (Previous year Rs.9.57). Provision has been made in the books towards diminution in the value of these investments amounting to Rs.120.55 lakh (Previous year Rs.47.56 lakh). Government of India has decided to close down M/s.HFL as per CCEA decision on 29.01.2020. An amount of Rs.75.87 crore (Rs.73.70 crore on 26.05.2020 and Rs.2.17 crore on 15.03.2022) has been released by Government of India as interest free loan to meet the VRS expenses and for clearing dues to Bank and suppliers.

b) During the year 2007-08, the Modified Draft Rehabilitation Scheme (MDRS) for revival of subsidiary - Hindustan Flurocarbon Ltd. (HFL) was approved by BIFR for implementation. As part of implementation of MDRS, HOCL had waived interest of Rs.2260.26 lakh accumulated on loan given to HFL and converted the unsecured loan amounting to Rs.2744.07 lakh as Zero Coupon Loan (ZCL), into secured loan by on HFL creating first charge on immovable property (land 84.31 acre valued to the extent of Rs.10196.76 lakh as per Govt. rate) in favour of HOCL. This loan was payable in 7 equal annual instalments commencing from 2010-11, aggregating to Rs.2744.07 lakh (Previous year Rs.2744.07 lakh) which has become due and payable in full. Further, the Company had given loans to HFL aggregating to Rs. 453.01 lakh (Previous Year Rs. 453.01 lakh) at the interest rate of 10.25% to 14.50% which has become payable in full. This loan is also secured by first charge on the HFL immovable property. As per the valuation report by an external registered independent valuer having professional qualification the value of the secured property of 84.31 acre of land is Rs.10196.76 lakh as on date (previous year Rs.10196.76 lakhs).

34 SEGMENT REPORTING.

Since the company is manufacturing only Chemicals, there are no separate reportable primary and secondary segments and all the chemicals manufactured by the company are considered to have been representing as single reportable segment. The requirements of Indian Accounting Standard 108 with regard to disclosure of segmental results are therefore considered not applicable to the company.

35 BALANCE CONFIRMATION

Balances of trade receivables, trade payables, loans, advances, other current assets and borrowings are subject to confirmation / reconciliation and subsequent adjustments except in cases where confirmation has been received.

a) Claims against the Company not Acknowledged as debts:

i) Income Tax Claims: Rs.91.99 Lakh.

There are various appeals for Assessment years are pending before authorities i.e. ITAT, High Court and other forums. The Company is awaiting for hearing, the details are as follows A Y 2002-03 Rs. 70.49 Lakh and AY 2011-12 Rs.21.50 Lakh.

The above assessments are under disputes at various appellate authorities. The company has not acknowledged the debts and the interest / penalty that would be leviable on the claims are not ascertainable.

ii) Excise duty / Service tax

The Company has ongoing disputes with Central excise authorities relating to the period 2006-07, amounting to Rs.104.63 Lakh. Company has filed Appeals at various Tribunals. The above assessments are under disputes at various appellate authorities. The company has not acknowledged the debts and the interest / penalty that would be leviable on the claims are not ascertainable.

iii) Gratuity for School teachers

Case filed by the teaching staff of HOC Rasayani School for the period upto March 1997, pending before Bombay High Court (Rs.75.31 Lakh).

iv) Other claims (Legal cases): Rs.321.23 Lakh.

a) Case filed by the Company against the award passed by MAC Tribunel, Trichur in relation to Phenol Tanker accident in 1994 (Rs.118 Lakh)

b) ESI corporation has raised a demand for contribution during the period from 01.04.1992 to 31.10.1992 amounting to Rs.2.17 lakh. The matter is pending with ESI Court, Ernakulam, as desired by the ESI Court we had applied for exemption from ESI Act to the Govt. of India, hence no liability is created and a contingent liability to that extend is provided.

c. HOCL filed appeal in High Court of Kerala against the order of the CAT giving direction to HOCL to pay the Salary arrears and other benefits of Sri P C James former employee and rework his gratuity, the estimated amount is Rs.48.33 lakhs.

d) The Company had invited open tender for work of construction of “Civil and Structural works for Construction of Plant Building, Technical Service Building, R&D Building, etc of PU System House Project. Company had issued the Work Order to M/s Shetusha Engineers & Constructions Pvt. Ltd. (SECPL). On account of delay and other shortcomings in the completion, company had deducted Liquidated damages. SECPL objected for the said deductions and filed an Arbitration Application before the Hon’ble High Court, Mumbai. Later the M/s SECPL had unconditionally withdrawn the said Arbitration Application from the Court. Further, M/s SECPL had filed Suit before the Hon’ble High Court, Mumbai against the Company for passing the Decree against the Company towards payment of Rs.113.35 Lakh including interest. The case is pending for final hearing.

e) The Company invoked the peformance gurantee given by M/s Vakharia Construction Company, Mumbai (VCC) to whom civil contracts had been alloted as the contract works were not completed as per the terms of the work order. The matter was referred to arbitration and later went to the High Court. The court ordered the company to deposit Rs.12 lakhs and M/s VCC is allowed to withdraw the amount on submission of bank gurantee. The appeals filed before the Hight Court were dismissed. Now M/s VCC raised demand for bank gurantee commission paid to the bank and interest at the rate of 18% as the money decree passed by the Trial Court in favour of VCC was stayed due to filing civil application by the company. The liability estimated on this is Rs.39.38 lakhs and the matter is pending before court of law and accordingly shown under contigent liabilities.

v) Rental claim Harchandrai House Rs.6219.08 Lakh

As the company has not vacated the office premises taken on lease from M/s Harchandrai & Sons as per their notice they initiated legal proceedings and stopped to accept the lease rent. The company vacated the office premises during the year 2014. Landlords filed the Mesne Profit Application before Small Causes Court, Mumbai for Mesne profit for the period from 01/06/2000 to till the possession of the said premises. The Mense profit application filed by M/s.Harchandrai & Sons is allowed by the Court of Small Causes, Mumbai on 02.05.2022 directing the Company to pay the mesne profit @Rs.138/- per sq.ft. for the period from 01/06/2000 to 31/12/2006, for subsequent period @Rs.274/-per sq.ft. together with an interest@9% p.a. The total amount as per Order of Small Causes court, Mumbai for mesne profit for the period from 01/06/2000 to 31/03/2014 and interest thereon upto 31-032023 works out to Rs.6982.86 lakh(previous year Rs.6713.75 lakhs). The valuer appointed by HOCL has submitted his report and the average rate is assessed @Rs.48.91 per sq.ft. which is not considered by the Small Causes Court, Mumbai. As per the legal opinion, the company had filed appeal against the Order and the Company is of the opinion that there is uncertainties in crystalisation of demand other than the amount calculated as per the report of the HOCL valuer assessing mesne profit @Rs.48.91 per sq.ft. The amount of mesne profit calculated based on the report of HOCL valuer @Rs.48.91 per sq.ft is Rs.763.78 lakh has already been provided in the books of account for the year 2021-22. The difference amount of Rs.6219.08 lakh (6982.86-763.78) is shown as contingent liability.

vi) JNPT lease rent: Rs.3318.86 Lakh

The Company has entered into MoU with Jawaharlal Nehru Port Trust (JNPT) to hand over the land alloted to the company for setting up Liquid Tank Farm on lease bais along with assets of the company ‘as is where is basis’. The JNPT raised a demand of Rs.4124 lakhs towards lease rentals and other charges. The company has instituted arbitral proceedings and Arbitral Tribunal issed the awared in favour of the company. The assets of the company valued as per the MoU at Rs.1638.50 lakhs and same is agreed and paid by M/s.JNPT. The undisputed amount of lease rent payable by the Company to JNPT was computed on a mutual understanding between the Parties on the basis of arbitral award is Rs. 805.13 lakhs and the same is paid by the Company. The disputed amount includes lease rentels Rs.2974.51 lakhs, water charges 0.65 Lakh, way leave charges Rs.297.09 Lakhs and Service tax of way leave charges Rs.46.61 lakhs. The company has shown balance amount of demand of JNPT after adjusting undispute lease rental paid as contingent liability since the appeal filed against the arbitral awards pending for hearing before High Court and the company is of the opinion that no provision is required as there is uncertainities in crystatlisation of demand at this stage of litigation.

vii& viii) Interest at higher rate on Govt. Loans: Rs.8258.81 Lakh and Interest on defaulted interest on Govt. Loan 52435.82 lakhs

The Government of India reserves the right to raise the rate of interest in respect of loans granted to the company, in case of default of repayment of principal on the due date and also charge interest at rate on default in any of the payment of interest due. As there is default in payment of principal loan as well as interest due thereon, the company, in anticipation that the Government of India may demand higher rate on principal and interest on interest outstanding, arrived the additional interest liability and shown as contingent laibility. As per the balance confirmation given by the Government of India, the interest at the higher rate and interest on defualted interest have not been included.

ix) Nilima Chemical Corporation

This Civil Suit is filed by M/s Nilima Chemical Corporation in the year 1996 before the First Court of the Asstt. District Judge, 24 Parganas (South), West Bengal, India.

Brief Facts of the Matter:- HOCL was supplying the material to M/s Nilima Chemical Corporation (“NCC”) against the bank guarantee (“BG”) provided/submitted by NCC. During the course of business, NCC had failed to pay the overdue amount towards the supply of the material and hence on 15th May 1996 HOCL had written a letter to the concerned bank namely Vijaya Bank to enforce the BG to square up the overdue of the HOCL by NCC. Subsequently, Vijay Bank released the funds of/from the BG in favour of HOCL. Thus, being aggreived with this step/decision NCC filed the Civil Suit for passing the decree of an amount of Rs.3,90,681=90 before the First Court of the Asstt. District Judge, 24 Parganas (South). This Suit was decreed ex-parte and the Advocate of NCC informed Company vide his letter dated 24th Novmeber 2011 that they are executing the said Decree. Subsequently, HOCL had filed Misll. Case No.156 of 2011 for setting aside the said Decree and/or Suit be heard on merits. HOCL also filed the Caveat in the said matter on 25th August 2011. Company had also filed affidavit for opposing the Title Execution Case No. 11 of 2014. Now, the said case is pending before the Court for hearing. This Execution Application is filed by NCC against HOCL for execution of the Decree passed in 45 of 1996 (Ex-parte). This matter was came up for hearing on 10th November 2021 on this date the Advocate for HOCL Mrs. Saroj Tulsian tried to seek adjournment but Court declined the request for adjournment and matter was partly heard on 10th November 2021.

x) The amount of claims in respect of legal cases filed against the Company for labour matters relating to regular and retired employees and not acknowledged as debts is not ascertainable. b) Bank Guarantees issued Rs.2645.80 Lakh

The Company has submitted bank guarantees to Kerala State Electricity Board amounting to Rs.101 lakh, BPCL Rs.5100 lakh, OMPL Rs.1000 lakh and Rs.1.06 Lakh to others. The company does not expect any outflow in respect of the above.

Contingent liability and commitments has been shown against bank guarantees issued to BPCL Rs.1145.80 lakh and OMPL Rs.1000.00 lakh only.

II) Estimated amount of Contracts remaining to be executed on capital account and not provided for: Rs.36.27 Lakh

37 Disclosure relating to error or omission as per Ind AS 8

The following expenditure/income had been incorrectly accounted during the year 202223 due to error. Accordingly, previous year financial statement were restated to correct the errors as per Ind As8. The effect of the restatement on the financial statement is summarised below.

(1) Miscellaneous income relating to 2021-22 Rs.11.25 lakhs has been incorrectly accounted due to error as such the comparative amount for the year 2021-22 is restated as per Ind As 8 .

(a) Nature of the prior perid error : Miscellaneous Income

(b) Amount of correction : Rs.11.25 lakhs

(c) Financial line item affected: Note No.23 (Miscellaneous Income)

(2) Other miscellaneous expense includes Rs.10.61 lakhs pertaining to the year 2021-22 has been incorrectly accounted due to error as such the comparative amount has been restated as per Ind As8.

(a) Nature of the prior period error : Miscellaneous Expense

(b) Amount of correction : Rs.10.61 lakhs

(c) Financial line item affected: Note No.29 -Other Expense

(3) Employee benefits expense includes Rs. 295 lakhs towards salary arrears up to 31.03.2022 has been incorrectly accounted due to error as such the comparative amount has been restated as per Ind As8.

(a) Nature of the prior perid error : Employee benefits expense

(b) Amount of correction : Rs.295 lakhs

(c) Financial line item affected: Note No.26 - Employee Benefits Expense 38 RELATED PARTY DISCLOSURE AS PER Ind- AS 24

Since Government of India owns 58.78% of the Company’s equity share capital (under the administrative control of Ministry of Chemicals and Fertilizers, Department of Chemicals and Petrochemicals), the disclosures relating to transactions with the Government and other Government controlled entities have been reported in accordance with para 26 of Ind AS 24. List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

Note:

In the ordinary course of its business, the Company enters into transactions with other Government controlled entities (not included in the list above). The Company has transactions with other Government-controlled entities,including but not limited to the followings:

Sales and purchases of goods and ancillary materials; Rendering and receiving of services; Receipt of dividends; Loans and advances; Depositing and borrowing money; Guarantees and Uses of public utilities.

These transactions are conducted in the ordinary course of business on terms comparable to those with other entities that are not Government controlled entities.

Note-39 Financial Instruments :

39 a. Financial Instrument

A Fair Values hierarchy :

Level 1 — Includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 — The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities, contingent consideration and indemnification asset

Note No. 40 Financial risk management

i. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the Company but as company balance in foreign currency hence company is not exposed to foreign currecncy exchange rate risk

b) Interest rate risk

The Company’s investments are primarily in subsidiary through quoted equity share and unquoted equity share of other entity therefore none of the investment activity is generating interest out of the investment. Hence, the Company is not significantly exposed to interest rate risk.

ii. Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled receivables, investments, cash and cash equivalents, bank deposits and other financial assets, company generating revenue for individually in excess of 10% or more of the Company’s revenue for the year ended March 31, 2023 from the below mention customer.

Geographic concentration of credit risk

Geographical concentration of trade receivables, unbilled receivables (previous year: unbilled revenue) and contract assets is allocated based on the location of the customers.

iii. Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The company manages liquidity risk by maintaining adequate reserve, banking facilities and reserve borrowing facilities, continuosly monitoring forecast and actual cash flow and by matching the maturity profiles of financial assets and liabilties.

43 Notes to Statement of Profit and Loss and Other Comprehensive Income

a) The Company has elected to continue with the carrying value for all its Property, Plant and Equipment as of April 1, 2016 measured under Indian GAAP as deemed cost as of April 1, 2016 (transition date) except Freehold Land where fair value (circle rate) has been considered as deemed cost.

b) Under Indian GAAP, the Company measured financial assets at cost. As at the transition date, the company recognised the provision for expected credit loss for certain financial assets as per the criteria set out in Ind AS 101. All the financials liabilities have been carried at amortized cost and such differences have been appropriately addressed.

c) The Company recognises costs related to its post-employment defined benefit plan on an actuarial basis both under Indian GAAP and Ind AS. Under Indian GAAP, the entire cost including actuarial gains and losses and return on planned assets are charged to profit or loss. Under Ind AS, actuarial gains and losses and return on planned assets recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income.

d) Consequential sum of the adjustments carried out in the other comprehensive income net of tax implications thereon.

44 Non- Compliance of the SEBI Listing Obligation and Disclosure Requirements (LODR) Regulations, 2015- as per Regulation 17(1)(b), the chairman being an executive director, at least half of the board of Directors should be comprised of Independent Directors. Currently, the Company does not have required number of Independent Directors on its board. Non- Compliance of the SEBI Listing Obligation and Disclosure Requirements (LODR) Regulations, 2015 - as per the Regulation 17 (1) (a) of the SEBI Listing Obligation and Disclosure Requirements (LODR) Regulations, 2015, Board of Directors shall have an optimum combination of executive and non-executive directors with at least one woman director and not less than fifty percent of the Board of Directors shall comprise of nonexecutive directors. Currently, the Company does not have woman director on its Board.

45 Going concern

a) The company has reported net loss including other comprehensive income of Rs.4239.63 lakhs (Previous year net profit including other comprehensive income of Rs.1015.89 lakhs) Also the company has accumulated loss amounting to Rs 107078.48 lakhs (Previous year Rs.102056.08 lakhs) with a negative networth of Rs.95512.95 lakhs (Previous year Rs.90490.55 lakhs). But its current assets exceeds its current liabilities by Rs 1879.87 lakhs (Previous year Rs.7204.31 lakhs). The company has a balance under current assets of cash and cash equivalents and other bank balances of Rs 16730.48 lakhs (Previous year Rs.13510.73 lakhs) as at the year end. After considering these conditions, the standalone financial result of the company have been prepared on going concern basis.

b) The company is in the process of implementation of the Govt. Approved restructuring plan vide order dated May 22, 2017, the company has closed the Rasayani Unit, plant and equipment scrapped has been disposed off. Sale of unencumbured land in Rasayani through NBCC and Panvel land through e-auction are in progress. The Phenol plant at Kochi is operational and was operating at 93% capacity in the current year as against 62% in the previous year. The production of acetone and phenol increased to 60656 MT in the current year from 40305 mT in the previous year. At the end of the financial year 2022-23, the EBIT for the year 2022-23 is Rs. 1666.29 lakhs (Previous Year 2021-22 Rs. 3932.38 lakhs)

46 Board recommended to implement salary revision of employees w.e.f. 25.01.2021 and the same was submitted to the Ministry of Chemicals and Fertilizers for approval. Company has provided Rs. 295 lakhs for the year 2021-22 and Rs.248.00 lakhs in the books of accounts towards provision for wage revision during the year 2022-23.

47 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, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48 No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49 Relationship with Struck off Companies

During the financial year ended 31st March 2023 the company does not have any relationship with struck of companies.

50 No charge or satisfaction yet to be registered with ROC beyond the statutory period.

51 No Loans or Advances in the nature of loan is granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person during the year.

52 There is no capital- work- in progress as on 31.03.2023

53 The company does not hold any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not in the name of the company.

54 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.

55 The Company has revalued its Property, Plant and Equipment and the revaluation is based on the valuation by a registered valuer (Mr. Er.S.Rajendraprasad, Wealth Tax No: Catogory No.1/3/Vol.ll/2009-10.No:CC-CHN/TECH/RV/3/2009-10) as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

56 There is no intangible assets under development

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

58 Company has no borrowings from banks or financial institutions on the basis of security of current assets.

59 Company is not declared as a wilful defaulter by any bank or financial Institution or other lender.

60 Company has no transaction which are 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), unless there is immunity for disclosure under 11 any scheme and also shall state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.

61 The Company is not required mandatorily to carry out any CSR activities on account of losses incurred during the previous years.

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

63 The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 18.05.2023

64 Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.