19.3 Consequent to the order dated March 10, 2022 of NCLT, Mumbai face value of each equity shares stands reduced to r 4 per share from r 10 per share. Accordingly the authorised capital is changed to 312,500,000 of r 4 each aggregating to r 125,000 Lakhs and Company's share capital reduced from r 9,402.07 Lakhs to r 3,760.83 Lakhs consequent to reduction of nominal value of shares to r 4 per shares from r 10 and payment of r 6 per share to eligible shareholder on the record date.

19.4 In the financial year 2022-23 the Company sub-divided its share with nominal value of r 4 per shares into two share of r 2 per share.

19.6. The Company has only one class of shares referred to as equity shares having a par value r 2/- per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange and is subject to applicable distribution taxes.

19.7. In the event of the Company being liquidated, since the equity shares of the Company are fully paid - up, there would be no additional liability on the shareholders of the Company. However, post settlement of the liabilities of the Company, the surplus, if any, would be distributed amongst the shareholders in proportion to the number of shares held by each one of them.

Capital Redemption Reserve : Capital Redemption Reserve was created for redemption of preference shares issued by the Company and for buy back of shares.The Reserves were created by transfer from general reserves and share premium account.

General Reserve : General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders.

Retained Earnings : This represents profits remaining after all appropriations. This is a free reserve and can be used for distributions as dividend.

Dividend

20.5 In the Board meeting held on 21.10.2024 the board declared an amount of r 2.50 per equity shares (FV r 2) as a interim dividend (Previous Year r 2 and FV r 2) which was distributed to equity shares holder. The amount of interim dividend distributed to equity share holder was r 4,701.03 lakhs (Previous Year r 3,760.82 lakhs).

The Board of Directors, in their meeting on April 23, 2025 , have proposed a final dividend of r 7.50 per equity share (Previous Year r 7 per equity share) for the financial year ended March 31, 2025. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on July 04, 2025 and if approved would result in a cash outflow of approximately r 14,103.10 lakhs (Previous Year r 13,162.89 lakhs).

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year. This has been relied upon by the auditor.

a. Revenue from Contract with Customers as per disclosure requirements under Ind AS 115.

The Company offers, performance-based discounts and other discounts as per the prevailing trade practices at the time of sale. A sales invoice is the de facto contract agreement with the Customers. Any credit notes for discounts issued thereafter are netted off from the Sale of Products and is shown in the Statement of Profit and Loss. Debit note when issued towards interest on delayed payment, are included under Other Income and shown separately.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

B. Leave Encashment

The valuation of Leave Encashment has been done on exit as well as availment during the service. This liability forms part of other long term benefits as per the standard and does not require disclosures as mentioned in Para 158 of the Ind AS 19.

C. Provident Fund

The provident fund contribution is made to a trust administered by the Company. In terms of the guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of provident fund liability based on assumptions listed below and determined that there is no Interest shortfall as at 31st March, 2025.

The assumptions used in determining the present value of obligation of interest rate guarantee under deterministic approach are:

Average holding period of Assets 6 Years

Guaranteed rate 8.25 %

D. Superannuation

The Company operates defined contribution superannuation fund for all qualifying employees of the Company.

The total expense recognised in the statement of profit and loss of r 64.31 lakhs (for the year ended March 31, 2024 : r 59.07 lakhs) for superannuation fund represent contributions payable to these plans by the Company at rates specified in the rules of the plans.

The above table show sensitivity of open forex exposure to USD/INR movement. We have considered 1% ( /-) change in the currency movement, increase indicates appreciation whereas decrease indicates depreciation in the currency rates. The movement does not reflect management forecast on currency movement.

2. Change in Interest Rate

The Company being a debt free Company is not exposed to Interest rate risks.

NOTE : 41Financial Risk Management

The Company's activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk, capital risk and foreign currency risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimise potential adverse effects on the financial performance of the Company.

Commodity Risk:

International pricing and demand / supply risk are inherent in the import of styrene monomer, the main raw material. The Company enters into procurement contracts for import of styrene monomer on annual basis. The contracts specify the quantity and attributes for arriving at monthly pricing. However, a part of the requirement is sourced on spot basis so as to float with current price in the market and to guard against price volatility. The Company has also linked part of its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase / decrease in raw material costs.

Credit Risk:

Credit risk from cash and cash equivalents, derivative financial instruments and bank deposits is considered insignificant in view of the creditworthiness of the banks the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these policies factor in the customer's financial position, past experience and other customer specific factors.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. In any case all doubtful debts over 18 months are provided for 100% under ECL working or written off. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognised in Statement of Profit and Loss.

Liquidity Risk:

The Company needs to ensure that at all times, it meets its payment obligations on time. The table below summarises the Company's liquidity position and its preparedness for likely variations in the liquidity:

The Company is debt free (except amortised value of right to use assets taken on lease) and has, adequate liquidity as detailed above, to meet any exigencies. In addition to the undrawn fund-based credit limits, the Company also has recourse to discount trade receivables backed by letters of credit. These measures are considered by the management adequate to ensure that the Company is not exposed to any liquidity risk.

The table below analyse financial liabilities of the Company into relevant maturity groupings based on the reporting period from the reporting date to the contractual maturity date:

The Company's total owned funds of r 2,27,114.34 lakhs with zero debt is considered adequate by the management to meet its business interest and any capital risk it may face in future.

Foreign Currency Risk:

The Company has no foreign currency debt and hence faces no foreign currency risk on account of debt outstanding. However, the Company depends entirely on imports for its requirement of styrene monomer and other raw materials. It also exports a part of its products in insignificant quantities. All the transactions are exposed to fluctuation in the external value of rupee largely against US dollar. Exposure to other currencies is minimal.

To overcome these risks of cost and pricing due to foreign exchange volatility, the Company hedges part of open foreign exchange exposure relating to imports so as to lessen the impact of foreign exchange rate fluctuations if any in respect of import of raw materials. The Company also has a natural hedge to the extent of its exports and pricing its products locally on import parity basis. These measures are considered adequate by the management of the Company to safeguard from foreign exchange fluctuation risk. However foreign currency exchange rate being dynamic is monitored constantly to decide on proper response measure.

1. The management has estimated the provisions for pending litigation, claims and demands (including cases relating to direct and indirect taxes) on its assessment of probability for these demands crystallizing against the Company in due course. The difference between the amount demanded and provision made is disclosed as contingent liabilities.

2. In the Previous year, the Company has entered into a Power Delivery Agreement with TP Saturn Limited on October 10, 2023 and has since entered into a Share Holder Agreement and Share Purchase Agreement on December 14, 2023 to acquire 26% equity shares in TP Saturn Limited, a Special Purpose Vehicle (SPV) formed by Tata Power Renewable Energy Ltd., for supply of solar power energy 12.5 MW (i.e. 17.95 MWp) to the Company's plant at Amdoshi, Dist. Raigad, Maharashtra. Subsequently, the Company has made a payment of r 130,000 as share application money, of which allotment has been done on April 3, 2024.

3. The Company entered into a Share Purchase Agreement (SPA) with the Promoters/Shareholders of Xmold Polymers Private Limited, Tamil Nadu (“Xmold”) on April 10, 2025, for acquiring 100% stake therein for a consideration of r 3927.00 lakh payable in two tranches. Company acquired 80% equity shares of Xmold on April 17, 2025 under first tranche, for a consideration of r 3142.60 lakh and the remaining 20% equity shares is likely to be aquired by Company within a period of 2 years i.e. upto March 2027. Consequent upon said acquisition of shares, Xmold has became subsidiary of company w.e.f. April 17, 2025.

NOTE : 43Segment Reporting

The Company has only one primary reporting segment which is styrenics. Hence, segment reporting under Ind AS 108 is not applicable

Note: (i) Entire non-current assets are located in India.

(ii) None of the Customers individually account for 10% or more sales.

NOTE : 44 Investments

Investments in the Balance Sheet comprises of short-term surplus funds invested in debt and arbitrage schemes of Mutual Funds and in Sovereign Bonds which are measured at fair value through Profit and Loss. Fixed deposits with banks are measured through amortized cost.

NOTE : 45

Working capital facilities (including letters of credit) from banks are secured by hypothecation of Company's all moveable assets, stock and trade receivables and by second charge by way of mortgage of the Company's immoveable properties (including plant and machinery) situated at Tamil Nadu plants.

(ix) The Company has taken up projects under CSR, which are under implementation. An amount of r 329.12 lakhs (Previous Year r 473.34 lakhs) allocated to these projects and yet to be spent is under process of transfer to a separate fund maintained with Kotak Mahindra Bank. There is no shortfall in the amount to be incurred under CSR for the year 2024-25.

(x) None of above amount spent is through any related party / affiliate except as stated vide Note no 46.

NOTE : 52

The new Code on Social Security, 2020 has been enacted but the effective date from which the changes are applicable is yet to be notified and the rules are yet to be framed. The Company shall give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

NOTE : 53

The other matters as required under paragraph “L - Additional Regulatary Information” under part I of Division II of Schedule III of the Companies Act, 2013 and Paragraph 7(l) and 7 (n) of Part II of Division II and Schedule III to Companies Act, 2013, are either not applicable or there are no reportable matters.