t) Provisions, contingent liabilities and contingent assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each
Balance Sheet date and are adjusted to reflect the current best estimate.

If the effect of the time value of money is material, provisions are discounted using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to
the liability. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost.

Contingent liabilities are disclosed by way of a note to the financial statements when there is a possible obligation
arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or when there is a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

Contingent assets are not recognized in financial statements but disclosed when the inflow of economic benefits is
probable. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset
and is recognised.

u) Cash and cash equivalents:

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, 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 and bank overdrafts. These do not include
bank balances earmarked / restricted for specific purposes.

v) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts
or payments.

w) Earnings per share:

1) Basic earnings per share:

Basic earnings per share is calculated by dividing the profit / (loss) after tax attributable to owners of the Company
by the weighted average number of equity shares outstanding during the financial year.

2) Diluted earnings per share:

Diluted earnings per share is calculated by dividing the profit / (loss) after tax as adjusted for dividend, interest
and other charges to expense or income relating to dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.

x) Business combinations and Goodwill

Acquisitions of business are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets
transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity
interest issued by the Company in exchange of control of the acquiree. Acquisition related costs are recognised in
profit and loss as incurred.

A business combination involving entities or businesses under common control is a business combination in which
all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after
the business combination and the control is not transitory. The transactions between entities under common control
are specifically covered by Ind AS 103. Such transactions are accounted for using the pooling-of-interest method.
The assets and liabilities of the acquired entity are recognised at their carrying amounts of the Company's financial
statements.

Purchase consideration paid in excess / shortfall of the fair value of identifiable assets and liabilities including
contingent liabilities and contingent assets, is recognised as goodwill / capital reserve respectively, except in case
where different accounting treatment is specified in the court approved scheme.

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
business less accumulated impairment losses, if any.

y) Ind AS 108: Segment Reporting:

Ind AS 108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and major customers.

Based on “Management Approach” as defined in Ind AS 108 - Operating segments, the operating segments are
reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker of the Company is responsible for allocating resources and assessing performance of the
operating segments and accordingly is identified as the chief operating decision maker.

2.2 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f. April 1,2024. The Company has reviewed the new pronouncements
and based on its evaluation has determined that it does not have any significant impact in its financial statements.

(i) Capital inaiiayeiiieiii

For the purpose of the Company's capital management, equity includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's
capital management is to maximise the shareholder value. The Company's capital management objectives are to
maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may
be available in future so as to maximise shareholders' value. The Company is monitoring capital using debt equity
ratio as its base, which is debt to equity. The Company manages its capital to ensure that the Company will be able
to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt
and equity balance. The capital structure of the Company consists of debt which includes the borrowings, cash and
cash equivalents including short term bank deposits, equity comprising issued capital, reserves and non-controlling
interests. The gearing ratio for the year is as under:

Fair Value Hiearchy :

The fair value hierarchy is based on the inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consists of the following three levels :

Level 1- Level 1 heirarchy includes financial instruments measured using quoted prices and mutual funds are
measured using the closing net asset value (NAV)

Level 2 - The fair value of financial instruments that are not traded in an active market 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 are 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 based on observable market data, the instrument is included in Level 3.

The fair value hierarchy of assets and liabilities measured at fair value as of March 31, 2025 is as follows :

Cash and cash equivalents, other bank balances, trade and other receivables, trade and other payables and othe
financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities or nature o
these instruments.

The fair value of Company's interest bearing borrowings are determined using amortised cost basis using a discoun
rate that reflects issuer's borrowing rate as at the end of reporting date.

Financial risk management objectives:

The Company's activities exposes it to a variety of financial risk viz. market risks, credit risks and liquidity risks. In orde
to manage the aforementioned risks, the Company has a risk management policy and a program that performs closi
monitoring of and responding to each risk factors.

Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change:
in market prices. Such changes in the values of financial instruments may result from changes in the foreign currenc
exchange rates, interest rates and other market changes.

Foreign currency risk:

Foreign currency risk mainly arises from transactions undertaken by an operating unit in currencies other than it:
functional currency. The carrying amount of Company's financial assets and financial liabilities denominated in foreigi
currencies at the reporting date are as follows :

appreciation / depreciation or the respective foreign currencies with respect to the functional currency or the
Company would result in decrease / increase in the Company's profit before tax by approximately ?22.17 lakhs (net)
for the year ended March 31,2024.

Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company does not have significant floating interest rate borrowings during the
year ended March 31,2025 and March 31,2024. Hence, the Company is not exposed to significant interest rate risk
as at the respective reporting dates.

Credit risk:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically
unsecured and are derived from revenue earned from customers located in India. Credit risk has always been
managed by the Company through continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss or gain.

b) Enterprise significantly influenced by the Key Managerial Personnel or their relatives (Contd.)

5) Khatau Leasing and Finance Company Private Limited

6) Prism Plantations Private Limited

7) Khatau Holding and Trading Company Private Limited

8) MKK Holdings Private Limited

9) Priyanilgiri Holdings Private Limited

10) Priyamvada Holdings Limited

11) Orchard Acres

12) Reactive Engineering Private Limited

c) Key management personnel and their relatives

1) Mr. Mahendra K. Khatau (Chairman and Managing Director)

2) Mrs. Asha M. Khatau (Non-Executive Director and wife of Chairman)

3) Mr. Manish M. Khatau (Whole-Time Director and son of Chairman)

4) Mr. Kailash Pershad (Non-Executive Independent Director) till 31.03.24

5) Mr. Bhalchandra G. Sontakke (Non-Executive Indepednet director) till 31.03.24

6) Mrs. Sneha Vidydhar Khandekar (Non-Executive Independent Director)

7) Mr. Suyash Neelkanth Bhise (Non-Exectutive Independent Director)

8) Mr. Adarsh Shukla (Non-Executive Independent Director)

9) Mr. Rahul Singh (Non-Executive Independent Director)

10) Ms. Rupal B. Parikh (Chief Financial Officer)

11) Mr. Rajesh D. Pisal (Company Secretary)

12) Mr. Arup Basu (Managing Director)

13) Mr. Vikas Agarwal (CFO - Refnol Resins and Chemicals Limited ) till 29.09.23.

14) Mr. Bilal Topia (CS, Refnol Resins and Chemicals Limied) till 29.09.23.

15) Mrs. Leela K. Khatau (Consultant, Refnol Resins and Chemicals Limited - mother of Shri Mahendra K.
Khatau - Chiarman) till 29.09.23.

16) Mr. Mukund R. Nagpurkar (Non-Executive Independent Diretor Refnol Resins and Chemicals Limited) till
29.09.23.

d) Key Managerial Personnel Compensation

d) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

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

f) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

g) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

h) The Company does not have 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.)

i) The Company is not declared as willful defaulter by any bank or financial institution or other lender.

j) The Company does not have subsidiary in India. All the subsidiaries are incorporated outside India and therefore
section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable to the Company.

Note : * Date or satisfaction of Loan not available.

Note 36 : Figures for previous year have been regrouped, wherever necessary.

As per our attached report of even date

For C N K & Associates LLP For and on behalf of the Board

Chartered Accountants INDOKEM LIMITED

Firm Registration No.: 101961 W / W - 100036

Rachit Sheth Mahendra K. Khatau Manish M. Khatau

Partner Chairman & Managing Director Director

Membership No.: 158289 DIN : 00062794 DIN : 02952828

Rupal B. Parikh Rajesh D. Pisal

Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: May 9, 2025 Date: May 9, 2025