NATURE AND PURPOSE OF RESERVES:

(II Securities Premium

Securities Premium Reserve is created on receiving ₀f premium on issue of shares. The reserve can be uofcsed In accordance with the provisions of the Companies Act, 2013.

(II) Capital Reserve

The capital reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(II) Retained Eaminqs

The same is created out of profits over the years and shall be utilised as per the prowsons of the act.

Working Capital Loans from Axis Bank Rs. 1774.65 Lacs (Previous Year -Rs. 1789.97 Lacs, 01 April 2023 • Rs. 1611.18 Lacs) Is secured by :

a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movable fixed assets, both present and future,of the Company and personal guarantee of Directors and carry Rate of Interest 9.75% p.a. (Previous Year 9.50 % p.a., 01 April 2023 9.65 % p.a.)

b) Further secured by Equitable Mortgage on following properties:

1. Factory land and building situated at 13A'2, Industrial Area No. 1, AB Road, Dewas (MP) 455111.

2. I35-A,138-A,I36-A,I36-A II & 137-A ,AKVN Industrial Road, Meghnagar, Dst. Ihabua Madhya Pradesh In the name of Agro Phns (India) Limited.

3. Residential House situated at A-7, Mangal Murti Nagar, Navlakha Mam Road, Indore (MP) 452001 In the name of Mrs. Uma Gupta.

4. Residential House situated a? WA-12, Sector A, Scheme No. 94, Ring Road, Indore (MP) 452001 in the name ol Ms. Shraddba Gupta.

5. Office premies situated at M-91-92 Trade Center, 18 South Tukogan), Indore (MP) 452001

II Working Capital Loans from Canara Bank Rs. 957.84 Lacs (Pre.Year -Rs. 956.02 Lacs, 01 April 2023 Rs. 745.91 Lacs) are secured by :

a) Secured by hypothecator, of Inventories & Book debts and carry Rale of interest 9.75% p.a. (Previous Year 9.75% p.a. as at 1st April 2023 9.65%)

b) Further secured by Equitable Mortgage on following properties:

1. Survey No. 9/13/3 situated Village Lasudia Mori Patwari Halka No. 17 (new 45) District and Tehsil Indore

2. Survey No. 9/13/4 situated Village Lasudia Mori Patwan Halka No. 17 (new 45) District and Tehsil Indore

3. Office premises situated at M-86, M-87/A , M-87/B, M-88/A , M-88/B Trade Center, 18 South Tukoganj, Indore (MP) 452001

III Temporary overdraft from Axts Bank Rs. Nil (Pre.Year Rs. Nil, 01 April 2023 Rs. 100.12 lacs) repayaDle on demand and carry Rate of Interest Nil (Previous year Nil, 01 April 2023 11.15 % p.a.)

NOTH: 40

For the financial year ended 31st March 2025, the Company was not required to spend any amount towards Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013. However, dunng the year, the Company spent 9.00/- Lacs towards unspent CSR obligations from previous years, comprising *8.90/- Lacs related to FYs 2015-16 to 2017-18 and *0.10/- Lacs related to FY 2023-24. thereby fulfilling all outstanding CSR commitments.

Financial risk management

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

(i) Market risk

(a) Currency risk;

(b) Interest rate nsfc;

(c) Commodity risk;

(ii) Credit risk ; and (iii) Liquidity risk;

Risk management framework

Tiie Company's activities expose It to a variety of financial risks. Including market risk, credit risk and liquidity risk. The Company's primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company's risk management assessment policies and processes are estate-shed to identify ana analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. These policies and processes are reviewed by management regularly to reflect changes In market conditions and the Company's activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(I) Market risk

Market risk a the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company's income or the value of Us holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.

(a) Currency risk

The fluctuation in foreign currency exchange rates may have impact on the profit and kiss account, where any transaction has more than une currency or where assets/llabiBdes are denominated In a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates m those countries. The risks primarily relate to fluctuations in U.S. dollar and Euro, against the respective functional currrencies. The Company, as per its risk management policy, uses foreign exchange and other derivative instalments primarily to hedge foreign exchange- and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.

Interest rate risk is the nsk that the fair value or future cash flows of a financial instalment will fluctuate because of changes in market interest rates The company's exposure to the risk of changes in market interest rates relates primarily to the borrowing from bank and financial companies. Currently Company Is not using any mitigating factor to cover interest rate nsk.

Interest rate sensitivity

A reasonably possible change of 1% in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by amounts shown below. This analysis assumes that all other variables, in particular, foreign currency exchange rates, remain constant This calculation also assumes that the change occurs at the balance sheet date and has been calculated based or» risk exposures outstanding as at that date. The period end balances are riot necessarily representative of the average debt outstanding during the period.

Credit risk is the risk of financial toss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customer. The Company establishes an allowance for doubtful debts and impairment that represents its estimate on expected loss model.

A. Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment Credit risk Is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Expected credit loss assessment for customers as at March 31, 2025, March 31, 2024 and April 01, 2023

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit tosses. Historical trends of Impairment of trade receivables do not reflect any significant credit losses. Impa-red amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay thou outstanding balances, mainly due to economic circumstances.

B. Cash and cash equivalents

The Company holds cash and cash equivalents voth credit worthy banks of Rs. 10.4G Lacs as at March 31, 2025, (Rs. 9.07 Lacs as at 31st March 2024 & Rs. 13.53 Lacs as at 01 April 2023).The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

NOTE: 47 - SEGMENT REPORTING

(a) The Company is in the business of manufacturing / marketing of Fertilisers. This is the only activity performed and is thus also the main source of risks and returns. The Managing Director and Chief Financial Officer of the Company has been identified as the chief operating decision maker (CODM) as defined by Ind AS 108, 'Operating Segments'. Further, all the customers and assets are located in India. Accordingly, the Company has a single reportable and geographical segment. Hence, the relevant disclosures as per Ind AS 108, "Operating Segments" are not applicable to the Company.

NOTE: SS - ADDITIONAL REGULATORY INFORMATION

The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies ' Act, 2013.) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

The company neither have any Benami property nor any pnxeedlogs have been initiated or pending against the company for raiding any benami property "Ý under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

iii. the company is not declared wilful defaulter by any bank or financial Institution or other tender.

the company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies A a. 1956.

The company has not made any Investments in subsidiary company hence compliance with the number of layers prescribed under clause (87) of section 2 of ^v‘ the Act read with Companies (Restriction on number cf Layers) Rules, 2017 cs not applicable.

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other v5. peison(s) or entity(ics), including foreign entities (Intermediaries) with the understanding (whether recorded m writing or otherwise) 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 Unimate Beneficiaries,

(8) The company has not received any fund from any persons) or entity(ies), Including foreign entitles (Funding Party) with the undeistanding (whether recorded in writing or otherwise) that the company shall

(I) directly or indirectly lend or Invest In other persons ot 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.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ^v ' in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions ol the Income Tax Act, 1961).

vRI. The Company has not traded or Invested In Crypto currency or Virtual Currency during the financial year,

The company has borrowings from banks or financial institutions on lt<e basis of security of current assets. Quarterly returns or statements of current assets *’ filed by the company with banks or financial institutions are in agreement with the books of accounts except following differences:

NOTE: 56

Intercorporate Loans was presented under other financial assets (Refer Note No 12) in previous years is regrouped and presented in loans (Refer Note No 11) as Financial assets from current financial year, accordingly previous year figures atso regrouped