(I) The general credit period in respective on Domestic sale ranges between 30-90 days and for Export it ranges between 30-90 days, by and large company is not charging any interest on late payment.

(ii) Credit risk is managed at the operational segmental level. The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references, etc.

(iii) The credit limit and the credit period are reviewed regularly at periodical intervals.

a(i) The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of equity share is entitled to one vote per share and rank equally with regard to dividends.

(ii) 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 referential amounts. However, no such preferential amounts exist currently.

(iii) The distribution will be in proportion to the number of equity shares held by the shareholders

(iv) No Shares has been reserved for Issue under options or contracts/commitments for the shares/disinvestment

(v) In the five years immediately preceeding March 31,2023

60,00,000 Equity Shares of Rs. 10 each fully paid up, were issued as bonus shares during the month of December 2017, by utilisation of Rs.6 00,00,000 from surplus, pursuant to a bonus issue approved by shareholders.

The company had Issued 3 equity bonus shares for every 20 equity shares during the Financial Year ended on 31.3.22.

The bonus shares shall rank pari passu in all respects and carry the same rights as the existing equity shareholders and shall be entitled to participate in full, in any dividend and any other corporate action, after allotment.

a. On 5th October 2018, the Company has allotted 30,00,000 Equity Shares of face value Rs. 10/- each fully paid -up at issue price of Rs.60/- per share including a premium of R$.50/- per share aggregating to Rs.1,500 lacs of Securities Premium balance, through the initial public offer. Against this balance of Premium amount Rs. 129.22 lacs was adjusted as IPO expense leaving balance of Rs. 1370.78 lacs

b. General Reserve is created by transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

c. The company has issued 3 equity bonus shares for every 20 equity shares during the year ended on March 31,2022.

The above fair value hierarchy explains ihe 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 for which fair values are disclosed in the financial statements. To provide the indication about th* reliability of the Inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level l - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 7 Ý inputs other than Quoted prices included within Level 1 that are observable for the asset or llabilly, either directly (i.e. as prices I or indirectly ll.«. derived from prices)

Level 3 Inputs tor the assets or liabilties that are not based on observable market data (unchservable inputs]

There were no transfers between the levels during the year

Valuation Process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values.

The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fairveiue due to their short-term nature.

35 Financial Risk Management

The Company has exposure to the fallowing risks arising from financial instruments:

I Credit Risk li Liquid Risk III Market Risk

Risk Management Framework

The Company's risk management is governed by policies and approved by the board of directors. The company has policies for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk and market risk.

The audit committee oversees how management monitors compliance with the company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit internal audit undertakes both regular and ad hoc reviews of risk management controls and prceedures, the results of which ere reported to the audit comm Ittee.

I Credit Risk

Credit risk refers to the risk of default cn its obligation by the counterparty resulting in a financial lass. The Company maintain its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality credit rati ng and also reviews their credit'Worthiness on an on-going basis.

'The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the narmal course of business. "On account of the adaption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute Ihe ECL allowance for trade receivables and unbilled revenues. The provision matrix takes inio account available external and internal credit risk factors and the company’s experience for customers.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts If collection is doubtful. The Company also calculates the expected credit loss (ECL] for non-collection of receivables. The Company makes additional provision if the ECL amount is higher than the provision made for doubtful debts, m case the ECl amount is lower than the provision made for doubtful debts, the Company retains the provision made tor doubtful debts without any adjustment.

il Uquid Risk

Liquidity risk is the risk thal ihe Company Mill encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Ihe Company's reputation.

Management regularly monitors the position of cash and cash equivalents vls-i-vis projections. Ajsesment of maturity profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity ratios are considered while reviewing the liquidity position

III Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

As company has neither incurred any foreign currency transaction during the year nor it has any outstanding receivable or payable in foreign currency, it doesnot assume any currency risk.

b] Interest Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimise the Company's position with regards to interest Income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate Interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A SO basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates

36 Capital management

"The Company's capital management is intended to maximise the return to shareholders and benefits far ether stakeholders for meeting the long term and short term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e, the debt and equity baiance.'The Company monitors the capital structure on the basis of Net debt to eouity ratio and maturity profile

of the overall debt portfolio af the Company "

3£ Segment Information

The company’s primarily engaged in one business segment as determined by the chief decision maker in accordance with md AS 108, Operating Segments viz Trading of Acids and Chemicals

1 Toy Debt Ý Currerr Borrowings * Non Current Borrowing;

2 Earning* jvuiabia far Oebi StrvidP£= Net profit befora i »***-* iptarut Depreciation-* idjuslment for pop op«rj|io«il ircarnf>«xp«n*is

3 Capital Emp eyed- Tangible Neewarth ♦ Total Debt* Deferred Ta* Liability A Working Capital* Current Assets current liabilities

Reason For Variance above 25% In ntlot

1 Return an Equity,, Debt Service Coverage Ratio A Return on Capita Fir ployed Ratio: The Return ratios have ceteriorated on aaaunt af decreased profitability vis a vis last year

2 Net Capital Turnover: The ratio hat improved on account of efficient working capital management and revenue from operations vii avis last year

3 Current Ratio,inventory Turnover, Trade Payable A Receivable Turnover Ratio: THa ratios haw improvad an accounl of efficiant working capital cyda management

4 Return on invvrtirant has improvad due to improvamtnt in associate result »nc increased investment

b The company has complied with the number of layers prescribed under clause (B7Jnf section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017. f Company has no balance outstanding for transactions done with the Companies Struck Off eilher under section 248 of the Act or under Section S6C of Companies act 1956.

d No undisclosed income is voluntarily disclosed under anv scheme identified bv income ten authorities under anv tax essessments under the income Tex Act.

t The Company has neither traded nor invested in crypto currency during the financial year,

f No Proceedings have been initiated or pending against the company for holding any benami property under the Benaml Transactions (Prohibition] Act, 1988 (49 of 1988]. g The Company donot have charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

h The Company is not declared as willful defaulter by any bank or Financial institution or other lender,

i Utilisation of Borrowed funds and Share Premium

a] During the year, 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 persons or entities, including foreign entities ("Intermediaries"], with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities Identified In any manner whatsoever by or on behalf of (he Company ("uHlmete BeneficiariesH or provide a ny guarantee, security or the like on behalf of the Ulhmale eenefioanes.

b) During the year, no funds have been received by the Company from any persons or entitles, including foreign entities ("funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in eny 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.

40 Approval of Stand e lone Flnancia I State meets

The Standalone financial statements are approved for issue by Audit Committee and Board of directors at their meetings held on May 15, 2029