xxiii) Provisions

A provision is recognized when the Company has a
present obligation (legal or constructive) as a result of
past event, 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. The expense relating to a
provision is presented in the statement of profit and loss
net of any reimbursement. If the effect of the time value
of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time

is recognised as a finance cost.

In case of seeds division, the Company makes an
estimation of probable sales return out of the sales
booked during the financial year, considering the terms
and condition of the sale and past tendency of such sales
return. A provision is made for loss on account of such
estimated sales return which is approximate to the
amount of profit originally booked on such sale.

xxiv) Segment Reporting Policies

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief
Operating Decision Maker. Chief Operating Decision
Maker review the performance of the Company
according to the nature of products manufactured,
traded and services provided, with each segment
representing a strategic business unit that offers
different products and serves different markets. The
analysis of geographical segments is based on the
locations of customers.

Segment accounting policies

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting standalone financial
statements of the Company as a whole.

B. Significant accounting judgements, estimates and
assumptions

The preparation of the Company's standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, the accompanying
disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future
periods.

a) Determining the lease term of contracts with renewal
and termination options- Company as lessee

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

The Company has several lease contracts that include
extension and termination options. The Company
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew
or terminate the lease. That is, it considers all relevant
factors that create an economic incentive for it to
exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease

term if there is a significant event or change in
circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew
or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to
the leased asset).

b) Defined benefit plans

The cost of the defined benefit gratuity plan, post¬
employment medical benefits and other defined benefit
plans and the present value of the obligation of defined
benefit plans are determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
defined benefit plans, the management considers the
interest rates of government bonds.

The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at
interval in response to demographic changes. Future
salary increases are based on the expected future
inflation rates. Further details about the defined benefit
obligations are given in Note 35.

c) Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their
fair value is measured using valuation techniques
including the DCF model. The inputs to these models
are taken from observable markets wherever possible,
but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial
instruments. Refer Note 39 for further disclosures.

d) Provision for expected credit losses of trade receivables

The Company uses a provision matrix to calculate ECLs
for trade receivables. The provision rates are based on
days past due for groupings of various customer
segments that have similar loss patterns (i.e., by
geography, product type, customer type and coverage
by deposits or others instruments).

The provision matrix is initially based on the Company's
historical observed default rates. The Company will

calibrate the matrix to adjust the historical credit loss
experience with forward-looking information. For
instance, if forecast economic conditions (i.e., gross
domestic product) are expected to deteriorate over the
next year which can lead to an increased number of
defaults in the manufacturing sector, the historical
default rates are adjusted. At every reporting date, the
historical observed default rates are updated and
changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Company's historical credit
loss experience and forecast of economic conditions may
also not be representative of customer's actual default
in the future. The information about the ECLs on the
Company's trade receivables is disclosed in Note 40.

e) Useful life of Property, plant and equipment

The management estimates the useful life and residual
value of property, plant and equipment based on
technical evaluation. These assumptions are reviewed
at each reporting date.

f) Impairment of non-financial assets

Impairment exists when the carrying value of an asset
or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal
and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales
transactions, conducted at arm's length, for similar
assets or observable market prices less incremental costs
for disposing of the asset. The value in use calculation is
based on a discounted cash flow (DCF) model. The cash
flows are derived from the budget for the next five years
and do not include restructuring activities that the
Company is not yet committed to or significant future
investments that will enhance the asset's performance
of the CGU being tested. The recoverable amount is
sensitive to the discount rate used for the DCF model as
well as the expected future cash-inflows and the growth
rate used for extrapolation purposes. These estimates
are most relevant to goodwill recognised by the
Company.

g) Revenue from contracts with customers

The Company applied the following judgements that
significantly affect the determination of the amount and
timing of revenue from contracts with customers:

Determining method to estimate variable
consideration and assessing the constraint

Certain contracts for the sale of goods include a right of
return and volume rebates that give rise to variable

consideration. In estimating the variable consideration,
the Company is required to use either the expected value
method or the most likely amount method based on
which method better predicts the amount of
consideration to which it will be entitled.

The Company determined that the expected value
method is the appropriate method to use in estimating
the variable consideration for the sale of goods with
rights of return, given the large number of customer
contracts that have similar characteristics. In estimating
the variable consideration for the sale of goods with
volume rebates, the Company determined that using a
combination of the most likely amount method and
expected value method is appropriate. The selected
method that better predicts the amount of variable
consideration was primarily driven by the number of
volume thresholds contained in the contract. The most
likely amount method is used for those contracts with a
single volume threshold, while the expected value
method is used for contracts with more than one volume
threshold.

Before including any amount of variable consideration
in the transaction price, the Company considers whether
the amount of variable consideration is constrained. The
Company determined that the estimates of variable
consideration are not constrained based on its historical
experience, business forecast and the current economic
conditions. In addition, the uncertainty on the variable
consideration will be resolved within a short time frame.

Estimating variable consideration for returns and
volume rebates

The Company estimates variable considerations to be
included in the transaction price for the sale of goods
with rights of return and volume rebates.

The Company developed a statistical model for
forecasting sales returns. The model used the historical
return data of each product to come up with expected
return percentages. These percentages are applied to
determine the expected value of the variable
consideration. Any significant changes in experience as
compared to historical return pattern will impact the
expected return percentages estimated by the Company.

The Company's expected volume rebates are analysed
on a per customer basis for contracts that are subject to
a single volume threshold. Determining whether a
customer will be likely entitled to rebate will depend on
the customer's historical rebates entitlement and
accumulated purchases to date.

The Company applied a statistical model for estimating
expected volume rebates for contracts with more than
one volume threshold. The model uses the historical
purchasing patterns and rebates entitlement of

(i) New and amended standards adopted by the Company:

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. 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.

The Ministry of Road Transport and Highways vide their gazzette notification dated 02.03.2024 notified compulsory acquistion of 450 sq
mtr land situated at village Pannagudi, Taluka Naggapattim. The Compensation for the same is yet to be awarded to the company.

The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current
prices in an active market for similar properties. Where such information is not available, the Company considers information from a
variety of sources including :-

1. Current prices in an active market of properties of different nature or recent prices of similar properties in less active market adjusted
to reflect those differences.

2. Discounted cash flow projections based on reliable estimates of future cash flows.

3. Capitalised income projections based upon a property's estimated net market income, and a capitalisation rate derived from an
analysis of market evidence.

As at 31 March 2025 and 31 March 2024, the fair values of the investment properties are INR 609.12 lakhs and INR 559.20 lakhs respectively.
These valuations are based on valuations performed by an accredited independent valuer, who is specialist in valuing these types of
investment properties. A valuation model in accordance with that recommended by the International Valuation Standards Committee has
been applied. The valuation is done based on current prices in active market of properties of different nature.

(a) 3,33,55,907 (31 March 2024: 3,34,75,907) number of shares of Mangalore Chemicals and Fertilisers Limited are pledged as security
for long term loan taken from bank/ FI's (Refer Note 13 & 14) including 2,40,90,907 shares are released subsequently.

(b) Following the impairment testing principles of Ind AS 36 "Impairment of Assets", the Company has assessed the recoverable amount
of the investment in the subsidiaries i.e. Mangalore Chemicals and Fertiliser Limited. The recoverable amount is higher of fair value
less cost to sale and value in use. The investment made by the Company in the subsidiaries are strategic investments and the Company
has control over the subsidiary companies. On basis of the Stock price of the MCFL as at 31 March 2025, there is no indication of
impairment i.e. the current investment value is higher than the purchase value. Accordingly third party valuation has not been obtained.

(c) The management has assessed fair value of the investment in unquoted share of Indian Potash Limited based on valuation report of an
independent valuer. For details of method and assumptions used for the valuation refer Note 37.

(d) Investments at fair value through OCI (fully paid) reflect investment in quoted and unquoted equity securities. These equity shares are
designated as fair value through other comprehensive income (FVTOCI) as they are not held for trading purpose. Thus, disclosing their
fair value fluctuation in profit and loss will not reflect the purpose of holding. The Company has not reclassified any gain or loss within
equity in the current or previous period. Refer Note 38 for determination of their fair values.

Nature and purpose of reserves
Business Restructuring Reserve

In the Finance Year 2012-13, pursuant to the Scheme of Arrangement and Demerger ("The Scheme") between Zuari Industries Limited
(Formerly Zuari Global Limited) and Zuari Holdings Limited (now known as Zuari Agro Chemicals Limited, the Company) approved by the
Hon'ble High Court of Bombay at Goa, on 2 March 2012, all the assets and liabilities pertaining to Fertiliser Undertaking as on 1 July 2011
of Zuari Industries Limited (Formerly Zuari Global Limited) had been transferred to the Company at their book values and accordingly the
surplus of assets over the liabilities of the Fertiliser undertaking so demerged, resulted in creation of Business Restructuring Reserve of INR
65,404.84 lakhs in terms of the Order of the Hon'ble High Court of Bombay at Goa which was filed with the Registrar of Company on 21
March 2012. The said reserve be treated as free reserve and be restricted and not utilized for declaration of dividend by the Company.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage
in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is
more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable
results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage
of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised
only in accordance with the specific requirements of Companies Act, 2013.

Surplus / (deficit) in the statement of profit and loss

Surplus / (deficit) in the statement of profit and loss represents the profits / (losses) generated by the Company that are not distributed to
the shareholder and are re-invested in the Company.

Equity instruments through Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income.
These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this
reserve to retained earnings when the relevant equity securities are derecognised.

1 (a). Indian rupee term loan from a financial institution of INR 3,991.25 lakhs (including current maturities of INR 2,500.00 lakhs)

carries interest rate of 12% p.a (31 March 2024: INR 7,463.41 lakhs (including current maturities of INR Nil lakhs ) carries interest
rate of 12.00% p.a. The loan is repayable on December 2026. The loan is secured by exclusive charge over land (including structures)
with minimum cover of 1.2 times and pledge of shares of its subsidiary, Mangalore Chemicals and Fertilisers Limited ("MCFL"),
with a minimum share security cover of 1.10 times.

1 (b). Indian rupee term loan from a financial institution of INR 3977.47 lakhs (including current maturities of INR Nil) carries interest

rate of 12% p.a (31 March 2024: INR Nil lakhs (including current maturities of INR Nil lakhs ) carries interest rate of nil. The loan is
repayable on September 2027. The loan is secured by exclusive charge over land (including structures) with minimum cover of 1.3
times and pledge of shares of its subsidiary, Mangalore Chemicals and Fertilisers Limited ("MCFL"), with a minimum share security
cover of 2 times.

2. Non-Convertible Debentures of INR 4,953.82 Lakhs (including current maturities of INR 4,953.82 lakhs) [31 March 2024: INR 4,898.63
lakhs (including current maturity of INR Nil lakhs)] carries coupon rate of 11.65% p.a. are secured by pledge of shares of its subsidiary,
Mangalore Chemicals and Fertilisers Limited ("MCFL"), with a minimum share security cover of 2.00 times. The debentures are
redeemable in October 2025.

3. Inter-corporate deposit of INR 7,850.00 lakhs (31 March 2024: INR 1,000.00 lakhs) carries interest rate of 12.00%-12.50% (31 March
2024: 15.00% p.a). The loan is repayable after 12 months from the date of disbursement.

3,33,55,907 (31 March 2024: 3,34,75,907) number of shares of Mangalore Chemicals and Fertilisers Limited are pledged as security
for total secured loans taken from bank/ FI's (Refer Note 13 & 14) including 60,50,000 shares are released subsequently.

The Company has not filed any quarterly returns or statement of current assets with banks or financial institutions as there is no
working capital loan availed during the period.

* During the year, the Company along with Zuari Industries Limited (Related party of the company) has surrendered its exemption to
hold contribution in Employees' Provident Fund Trust of the Company (Zuari Industries Limited Employee Provident Fund Trust - ZIL
EPF Trust) to Employees' Provident Fund Organisation (EPFO) based on the statutory obligation as at January 31, 2025 by availing the
option of depositing entire corpus of Zuari Industries Limited Employee Provident Fund trust in liquid cash to EPFO.

Till 31st January, 2025 Plan assets of INR Nil (31 March 2024 : INR 44.37 lakhs) have not been recognised in the financial statements,
as the surplus of the trust, is distributable among the beneficiaries of the provident fund trust. The above includes amount contributed
by Zuari Industries Limited (related party of the Company). W.e.f. 31st January, 2025 due to surrender of exmeption of Zuari Industries
Limited Employee Provident Fund Trust to the Employees' Provident Fund Organization (EPFO), Government of India.

The Company has no obligation other than the contribution payable to the Provident Fund. The Company recognizes contribution
payable to the Provident Fund scheme as an expenditure, when an employee renders the related service. If the contribution payable
to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the
scheme is recognized as a liability.

a) Gratuity

Gratuity (being administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof in excess of
6 months and is payable on retirement/termination/resignation. The Gratuity plan is governed by the Payment of Gratuity Act, 1972.
Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends
on the member's length of service and salary at retirement/termination/resignation. The Gratuity plan for the Company is a defined
benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide
gratuity benefits. The Trust has taken an insurance policy, whereby these contributions are transferred to the insurer. The Company
makes provision of such gratuity asset/liability in the books of account on the basis of actuarial valuation carried out by an independent
actuary.

b) Provident Fund

As per Ind-AS 19, Employee Benefits, provident funds setup by employers, which requires interest shortfall to be met by the employer,
needs to be treated as defined benefit plan. Actuarial valuation of Provident Fund was carried out in accordance with the guidance
note issued by Actuary Society of India.

During the year, the Company along with Zuari Industries Limited (Related party of the company) has surrendered its exemption to
hold contribution in Employees' Provident Fund Trust of the Company (Zuari Industries Limited Employee Provident Fund Trust - ZIL
EPF Trust) to Employees' Provident Fund Organisation (EPFO) based on the statutory obligation as at January 31, 2025 by availing the
option of depositing entire corpus of Zuari Industries Limited Employee Provident Fund trust in liquid cash to EPFO.

W.e.f. 31st January, 2025 due to surrender of exemption of Zuari Industries Limited Employee Provident Fund Trust to the Employees'
Provident Fund Organization (EPFO), Government of India, the Company has no obligation other than the contribution payable to the
Provident Fund. The Company recognizes contribution payable to the Provident Fund scheme as an expenditure, when an employee
renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability.

As per the arrangement, the Trust has liquidated the investment portfolio and other assets from Zuari Industries Limited Employee
Provident Fund Trust and the shortfall/ deficit between the value of investment portfolio held by ZIL EPF Trust and ZIL EPF Trust
obligation to EPFO was made good by the Companies. Accordingly, net loss of INR 176.18 lakhs (94.54% share of the company) is
accounted under Employee benefit expenses in the financial statements for the year ended March 31, 2025 and the past accumulations
of PF contributions (with interest) as on 31st January, 2025 amounting to INR 1174.07 Lakhs transferred to EPFO.

c) Post Retirement Medical Benefit Plan

The Company has a defined benefit post retirement medical benefit plan, for its employees. The Company provides medical benefit to
those employees who leave the services of the Company on retirement. As per the plan, retired employee and the spouse will be
covered till the age of 85 years and the dependent children till they attain the age of 25 years. In case of death of retired employee, the
spouse will be covered till the age of 85 years and the dependent children till they attain the age of 25 years. The plan is not funded
by the Company.

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded
status and amounts recognised in the balance sheet for the respective plans:

36. Segment Information

Information regarding primary segment reporting as per Ind AS-108

The Company is engaged in the business of manufacturing, trading and marketing of chemical fertilizers and fertilizer products which
according to the management, is considered as the only business segment.

Accordingly, no separate segmental information has been provided herein.

Geographical segments

The Company operates in India and therefore caters to the needs of the domestic market. Therefore, there is only one geographical
segment and hence, geographical segment information is not required to be disclosed.

Revenue from single customer i.e. subsidy income from Government of India amounted to INR 1,831.49 lakhs (31 March 2024 : INR
2,934.92 lakhs) arising from sales in the fertilizers segment.

The management assessed that cash and cash equivalents, trade receivables and trade payables approximate their carrying amounts
largely due to the short-term maturities of these instruments.

Borrowings are primarily Indian domestic long-term rupee loans wherein interest rates are linked to benchmark rates (Marginal Cost
of Lending Rates/ Prime Lending Rates) of respective lenders. These benchmark rates are determined based on cost of funds of the
lenders, as well as, market rates. The benchmark rates are periodically revised by the lenders to reflect prevalent market conditions.
Accordingly, effective cost of debt for Borrowings at any point of time is in line with the prevalent market rates. Due to these reasons,
management is of the opinion that they can achieve refinancing, if required, at similar cost of debt, as current effective interest rates.
Hence, the discounting rate for calculating the fair value of Borrowings has been taken in line with the current cost of debt.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The following methods and assumptions were used to estimate the fair values:

(i) Security deposits / Employee loans - The fair value of security deposits / employee loans approximates the carrying value and
hence, the valuation technique and inputs have not been given.

(ii) The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation requires management to
make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The
probabilities of the various estimates within the range can be reasonably assessed and are used in management's estimate of fair
value for these unquoted equity investments.

(iii) The fair values of the remaining FVTOCI financial assets are derived from quoted market prices in active markets.

(iv) Performance security: The Company considers that the performance security received does not include a significant financing
component. The performance security receipt is intended to protect the interest of the company, from the counter party obligations
under the contract. Accordingly, transaction cost of performance security deposit is considered as fair value at initial recognition
and subsequently measured at amortised cost.

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include
loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds
investments and enters into derivative transactions. The Company is exposed to market risk, credit risk and liquidity risk. The Company's
senior management oversees the management of these risks.

The Company's risk management is carried out by a treasury department under policies approved by the Board of directors of the
Company. The treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company's operating
units. The Board of directors (Committee of directors for Banking and Finance) provides written principles for overall risk management,
as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments, and investment of excess liquidity.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial
instruments affected by market risk include borrowings, investments and derivative financial instruments.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the
debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement
obligations, provisions, and other non-financial assets.

The following assumptions have been made in calculating the sensitivity analysis:

- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the
financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

a) 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.

c) Commodity price risk

The Company also deals in purchase of imported raw materials (i.e. P2O5), imported by third party, which are procured by the Company
on an high sea sale arrangement and used in the manufacturing of fertiliser. The import prices of these materials are governed by
international prices. There is a price and material availability risk.

Equity price risk

The Company's listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future
values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on
individual and total equity instruments. Reports on the equity portfolio are submitted to the Company's senior management on a
regular basis. The Company's Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to unlisted equity securities at fair value was INR 7,093.44 lakhs (31 March 2024 : INR 6526.08
lakhs). Sensitivity analyses of these investments have been provided in Note 39.

At the reporting date, the exposure to listed equity securities at fair value was INR Nil (31 March 2024 : INR Nil). A decrease of 5% on
the BSE market price could have an impact of approximately INR Nil (31 March 2024 : INR Nil) on the OCI or equity attributable to the
Company. An increase of 5% in the value of the listed securities would also impact OCI and equity. These changes would not have an
effect on profit or loss.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

a) Trade receivables

The Company receivables can be classified into two categories, one is from the customers into the market and second one is from
the Government in the form of subsidy. As far as Government portion of receivables are concerned, credit risk is nil. For market
receivables from the customers, the Company extends credit to customers in normal course of business. The Company considers
factors such as credit track record in the market and past dealings for extension of credit to customer. The Company monitors the
payment track record of the customer. Outstanding customer receivables are regularly monitored. The Company evaluates the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in
largely independent markets. The Company has also taken security deposits from its customers, which mitigate the credit risk to
some extent. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed in Note 9. The Company holds collateral as security for many of its customers. At 31 March 2025, 32.88% (31 March
2024 : 8.06%) of the Company's trade receivables are covered by collateral security. The Company evaluates the concentration of
risk with respect to trade receivables as low, as its customers are located in several geographical areas and are having long term
business relationship with the Company.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The
Company adjusts the receipts from customer on first in first out basis. The provision rates are based on days past due for groupings
of various customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and
coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the
time value of money and reasonable and supportable information that is available at the reporting date about past events,
current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off if past due for more
than five years and are not subject to enforcement activity. Security collaterals obtained by the Company resulted in a decrease
in the ECL of INR 0.06 lakhs as at 31 March 2025 (31 March 2024 : INR 3.63 lakhs). During the year ended 31 March 2025 , the
Company had performed certain key steps for recoverability of trade receivables including but not limited to reconciliation with
its customers, filing of legal cases with customers, recoverability assessment of aged receivables and etc. Basis these steps taken
by the management, the Company is carrying provision of INR 37.94 lakhs (31 March 2024 : INR 38.19 lakhs) based on their best
estimate.

Set out below is the information about the credit risk exposure of the Company's trade receivables and contract asset using
provision matrix:

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance
with the guidelines framed by the board of directors of the Company. Guidelines broadly covers the selection criterion and over
all exposure which the Company can take with a particular financial institution or bank. Further, the guideline also covers the limit
of overall deposit which the Company can make with a particular bank or financial institution. The Company does not maintain
the significant amount of cash and deposits other than those required for its day to day operations.

Liquidity risk

The Company's objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The
Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines
of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its
liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where
applicable) on any of its borrowing facilities.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.

41. Capital management

For the purpose of the Company's capital management, capital 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 manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables,
less cash and cash equivalents.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2025 and ended
31 March 2024.

The Company has various covenants to be complied in respect of its borrowings. The primary covenants are total outstanding liabilities
to tangible net worth ratio, debt service coverage ratio, interest coverage ratio, fixed assets coverage ratio, current ratio, debt to
EBITDA ratio, current assets to current liabilities ratio and total debt to equity ratio. There is no non compliances for debt covenants
for borrowings.

42. Disclosure required under Section 186 (4) of the Companies Act, 2013

(i) The Board of Directors of the Company at its meeting held on 31st March, 2023 has approved the liquidation and winding up of
Adventz Trading DMCC ('DMCC'), a wholly owned subsidiary of the Company subject to the approval of Reserve Bank of India and
other Regulatory Authorities as DMCC was not conducting any business since May, 2021. Further, the Company does not envisage
any viable business in the near future as well. The Board of DMCC at its meeting held on 31st March, 2023 has also approved the
liquidation and winding up of DMCC.

To give effect to the above, during the Financial year 2022-23 the Company has written off 100% of carrying value of its investment
also written off the loans given to Adventz DMCC of INR 230.88 lakhs and interest receivable thereon of INR 113.11 lakhs.

Adventz Trading DMCC is dissolved w.e.f. 13-06-2023 as per DMCC Authority Letter dated 08.05.2024.

(ii) The Company has not given any loans or guarantee or security under section 186(4) of the Companies Act, 2013

(iii) Details of Investments made are given under Note 6A.

43. During the financial year 2013-14, the Company had sold part of freehold land to Zuari Industries Limited (formerly, Zuari Global
Limited) at a consideration of INR 16,359.32 lakhs. The possession of the said parcel of land was handed over on 28 March 2014;
however the transfer of title of some of the land parcels is under progress. The Company had received full consideration from the
buyer in the financial year 2013-14.

44. I n terms of demerger of fertilizer undertaking from Zuari Industries Limited (formerly, Zuari Global Limited) in an earlier year, the land
records of some of the land parcels are in the process of being mutated in the name of the Company.

45. Zuari Industries Limited (formerly, Zuari Global Limited) had demerged its fertilizer undertaking to the Company with effect from 1 July
2011. ZIL has during an earlier year, based on Hon'ble High Court order on demerger of fertilizer undertaking, identified amount of
income tax paid under protest pertaining to fertilizer undertaking demerged into the Company.

The Company has exchanged letter of mutual understanding with ZIL wherein the Company has paid such amount of income tax
under protest. The balance carrying value of such amount is INR 522.15 lakhs (31 March 2024: INR 522.15 lakhs) and classified under
Income Tax Assets under non-current assets.

46. During the previous years ended 31 March 2017, 31 March 2018 and 31 March 2019, the Company had written off an amount of INR
3885.12 lakhs in books of accounts towards irrecoverable/un-utilisable balance of GST credit on services. During the year ended 31
March 2025, the Company has recovered INR Nil lakhs (31 March 2024: INR 667.36 lakhs) through refund claim of GST paid on Ocean
freight and the same has been considered as other income (Refer Other Income Note no. 22).

47. At the 14th Annual General Meeting held on 27th September 2023, the shareholders of the Company, have approved the waiver of
recovery of excess remuneration of ' 81 Lakh paid to Mr. Sunil Sethy, Ex-Managing Director during the financial year 2019-20. The
Company has filed an application under Section 454 read with Section 441 of the Companies Act, 2013 for adjudication of penalties/
compounding of offence under Section 197 of the Companies Act, 2013. Vide Order of Adjudication of Penalty dated 16th August,
2024, a penalty of ' 5 Lakh was imposed on the Company which the Company has paid on 10th October, 2024.

48. During the year the Company at their meeting dated November 25, 2024 has considered and approved the revised proposed transfer
of 2,90,37,000 (Two Crores Ninety Lakhs Thirty Seven thousand) equity shares having face value of INR 10/- (Indian Rupees Ten) each
of Mangalore Chemicals and Fertilisers Limited ("MCFL"), representing 24.50% of the paid-up equity share capital of MCFL, held by the
Company to Zuari Maroc Phosphates Private Limited, pursuant to and as set out in the composite scheme of arrangement by and
amongst MCFL, Paradeep Phosphates Limited and their respective shareholders and creditors, subject to the approval of the
shareholders of the Company, as may be required under applicable law. Post implementation of the proposed scheme of arrangement,
MCFL will be amalgamated with and into Paradeep Phosphates Limited and MCFL will stand dissolved without winding up.

The transfer of the Identified Shares from the Company to Zuari Maroc Phosphates Private Limited is proposed to take place as per the
Scheme, at a price of INR 144 (Indian Rupees One Hundred and Forty Four) per Identified Share, and Zuari Maroc Phosphates Private
Limited is to pay an aggregate cash consideration of INR 41,813.28 lakhs for such transfer of the Identified Shares, subject to any Taxes
that need to be deducted at source, if any. In connection with this, ZMPPL has provided INR 25,000.00 Lakhs to the Company as
performance security to secure ZMPPL's obligations. The arrangement is expected to be executed within 12 Months.

The proposed transfer of the Identified Shares by the Company to Zuari Maroc Phosphates Private Limited may be considered a
'related party transaction' under the SEBI LODR Regulations.The transfer of the Identified Shares by the Company to Zuari Maroc
Phosphates Private Limited is proposed to take place pursuant to and in accordance with the price as set out in the Scheme, and will
be undertaken on an arm's length basis.

49. During the year, the Company along with other noticees (3 former and 1 present Key Managerial Personnels), has received a Show
Cause Notice (SCN) dated 14th January, 2025 from the Securities and Exchange Board of India ("SEBI") under the Securities and
Exchange Board of India Act, 1992 ("SEBI Act") and Regulations issued by SEBI thereunder alleging certain irregularities in the financial
statements for earlier years. The Company has filed a joint settlement application on behalf of all the noticees named in the SCN,
including the Company, for settlement under the SEBI (Settlement Proceedings) Regulation, 2018, without admitting or denying the
finding of fact and conclusions of law. The matter is pending and settlement order from SEBI is awaited.

50. During the major period of the 4th quarter of the current financial year, the Mahad plant was temporarily shut down due to shortage
of raw materials. The management expects the production to resume from beginning of June 2025 as raw material is expected to
reach the Plant by that time.

51. During the year, the Company along with Zuari Industries Limited (Related party of the company) has surrendered its exemption to
hold contribution in Employees' Provident Fund Trust of the Company (Zuari Industries Limited Employee Provident Fund Trust - ZIL
EPF Trust) to Employees' Provident Fund Organisation (EPFO) based on the statutory obligation as at January 31, 2025 by availing the
option of depositing entire corpus of Zuari Industries Limited Employee Provident Fund trust in liquid cash to EPFO. As per the
arrangement, the Trust has liquidated the investment portfolio and other assets from Zuari Industries Limited Employee Provident
Fund Trust and the shortfall/ deficit between the value of investment portfolio held by ZIL EPF Trust and ZIL EPF Trust obligation to
EPFO was made good by the Companies. Accordingly, net loss of INR 176.18 lakhs (94.54% share of the company) is accounted under
Employee benefit expenses in the financial statements for the year ended March 31, 2025 and the past accumulations of PF contributions
(with interest) as on 31st January 2025 amounting to INR 1174.08 lakhs transferred to EPFO.

52. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received
Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will
come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact
of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a
preliminary assessment, the entity believes the impact of the change will not be significant.

(iii) The Company does not have any charges or satisfaction pending registration with ROC beyond the statutory period except E-
Form CHG-9 for modification of charges bearing charge ID 100574422 vide SRN F17273277 dated 27th July 2022. The same was
filed by the Company to secure the Non-Convertible Debentures (NCDs) worth INR 125 Crore by way of land in addition to earlier
charge created by pledge over the equity shares of Mangalore Chemicals & Fertilizers Limited and hypothecation of escrow
account. The said form was sent for resubmission by MCA on 3rd August 2022 and again on 15th August 2022. Due to transition
from V2 to V3 MCA portal from 15th August 2022 to 30th August 2022, the Company could not resubmit the E-form CHG-9 on the
V3 portal. Further, the said E-Form CHG-9 was not made available for resubmission on V3 portal till February 2023. The Company
had raised various complaints to MCA and submitted various letters to Registrar of Companies, Goa, Diu and Daman, in this
behalf. However, the issue could not resolved and the E-Form CHG-9 remained pending in the time prescribed for resubmission.
The Company, thereafter, redeemed the NCDs worth INR 25 Crore on 30th June 2023 and INR 21 Crore on 17th January 2024 and
relevant E-Forms CHG-9 for modification of charge from INR 125 Crore to INR 100 Crore and from INR 100 Crore to INR 79 Crore,
respectively, were filed by the Company. Further, the Company redeemed the remaining NCDs amounting to INR 79 Crore, for
which E-Form CHG-4 for satisfaction of charge was filed vide SRN No. AA7138991 on 4th April 2024. Hence, the Company has fully
complied with the relevant provisions of the Companies Act, 2013, in this behalf.

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

(v) 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:

(a) 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

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

(vi) 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:

(a) 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

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

(vii) 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.

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(restriction on number of layers) Rules, 2017.

(ix) The Company has neither declared nor paid any interim dividend or final dividend during the year.

(x) The Company was not required to spend for CSR under under section 135 of Companies Act, 2013 for the Financial Year 2024-25.
54. Previous period/year figures have been regrouped/ re-classified wherever necessary.

As per our report of even date For and on behalf of the Board of Directors of Zuari Agro Chemicals Limited

For K.P.Rao & Co Nitin M. Kantak Athar Shahab

Chartered Accountants Executive Director Director

ICAI Firm Registration number: 003135S DIN: 08029847 DIN: 01824891

Prashanth.S Manish Malik Asheeba Pereira

Partner Chief Financial Officer Company Secretary

Membership Number: 228407 Membership Number: A48097

Place: Bengaluru

Date: 14 May 2025 Date: 14 May 2025