Notes to Accounts of Dharmaj Crop Guard Ltd.

Mar 31, 2025

(xiii) Provisions, Contingent Liabilities and
Contingent Assets

Provisions are recognized when the Company has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and the
amount can be reliably estimated. The expense relating to
a provision is presented in the Statement of Profit and Loss,
net of any reimbursements.

The amount recognized as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated
to settle the present obligation, it carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

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, is disclosed as a contingent liability. Contingent
liabilities are also disclosed 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.

Claims against the Company, where the possibility of
any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.

Contingent assets are not recognized in standalone financial
statements since this may result in the recognition of income
that may never be realized. However, when the realization
of income is virtually certain, then the related asset is not a
contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

(xiv) Employee Benefits

Short-term benefits

Short-term benefit obligations are measured on an
undiscounted basis and are expensed as the related
service is provided. A liability is recognized for the amount
expected to be paid if the Company has a present legal or
constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be
estimated reliably.

Defined contribution plans

The Company makes defined contributions to the
Government Employee Provident Fund, which is recognized
in the Statement of Profit and Loss, on an accrual basis. The
Company recognizes contribution payable to the provident
fund scheme as an expense when an employee renders the

related service. The Company has no obligation other than
the contribution payable to the provident fund.

Defined benefit plans

The Company''s liabilities under The Payment of Gratuity
Act, 1972 are determined on the basis of actuarial valuation
made at the end of each financial year using the projected
unit credit method.

The Gratuity obligation is unfunded. Obligation is measured
at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market
yields at the Balance Sheet date on Government bonds,
where the terms of the Government bonds are consistent
with the estimated terms of the defined benefit obligation.

The net interest cost is calculated by applying the discount
rate to the defined benefit obligation. This cost is included in
the ''Employee benefits expense'' in the Statement of Profit
and Loss.

Re-measurement gains or losses arising from changes
in actuarial assumptions are recognized in the period in
which they occur, directly in OCI. These are presented
as re-measurement gains or losses on defined benefit
plans under other comprehensive income in other equity.
Remeasurement gains or losses are not reclassified
subsequently to the Statement of Profit and Loss.

Compensated absences

The employees of the Company are entitled to compensated
absences. Accumulated compensated absences, which
are expected to be encashed beyond twelve months from
the end of the year, are treated as long-term employee
benefits. Liability for such benefit is provided on the basis
of actual leave balance as at the Balance Sheet date. The
Company records an obligation for compensated absences
in the period in which the employee renders the services
that increases this entitlement. The Company measures the
expected cost of compensated absences as the additional
amount that the Company expects to pay as a result of the
unused entitlement that has accumulated at the end of the
reporting period. The Company recognizes accumulated
compensated absences based on actuarial valuation in the
Statement of Profit and Loss.

(xv) Financial instruments

A financial instrument is any contract that gives rise to a
financial asset for one entity and a financial liability or equity
instrument for another entity.

Financial assets and liabilities are recognized when the
Company becomes a party to the contractual provisions of
the instrument.

Financial assets:

Initial recognition and measurement

Financial assets are classified, at initial recognition, and
subsequently measured at amortised cost, fair value through

other comprehensive income (OCI), and fair value through
profit or loss.

The classification depends on the Company''s business
model for managing the financial assets and the contractual
terms of the cash flows.

Subsequent measurement

For purposes of subsequent measurement, financial assets
are classified in following categories:

â¢ Debt instruments at amortised cost

â¢ Debt instruments, derivative financial instruments and
equity instruments at fair value through profit or loss
(FVTPL)

â¢ Equity instruments measured at fair value through other
comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both
the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.

This category is the most relevant to the Company. After
initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation
is included in finance income in the standalone statement
of profit and loss. The losses arising from impairment are
recognised in the statement of profit and loss.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as amortized cost or as FVTOCI, is classified
as FVTPL.

Debt instruments included within the FVTPL category are
measured at fair value with all changes recognised in the
profit and loss.

The Company classifies its debt instruments which are held
for trading under FVTPL category. Held for trading assets are
recorded and measured in the Balance Sheet at fair value.
Gains and losses on changes in fair value of debt instruments
are recognised on net basis through profit or loss.

Debt instrument at FVTOCI

A debt instrument is subsequently measured at fair value
through other comprehensive income if it is held within
a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company''s balance
sheet) when:

â¢ The rights to receive cash flows from the asset have
expired, or

â¢ The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay
to a third party under a ''pass-through'' arrangement and
either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset,
the Company continues to recognise the transferred asset
to the extent of the Company''s continuing involvement.
In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Company could be
required to repay.

Impairment of financial assets

The Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are
measured at amortised cost e.g., loans, debt securities,
deposits and bank balances.

b) Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.

The Company follows ''simplified approach'' for recognition
of impairment loss allowance on:

â¢ Trade receivables or contract revenue receivables;

Under the simplified approach the Company does not track
changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date,
right from its initial recognition.

ECL is the difference between all contracted cash flows that
are due to the Company in accordance with the contract
and all the cash flows that the Company expects to receive,
discounted at the original EIR. ECL impairment loss allowance
(or reversal) recognised during the period is recognised as
income/(expense) in the statement of profit and loss (P&L).

The balance sheet presentation for various financial
instruments is described below:

Financial assets measured as at amortised cost and
contractual revenue receivables

ECL is presented as an allowance, i.e., as an integral part of
the measurement of those assets in the balance sheet. The
allowance reduces the net carrying amount. Until the asset
meets write-off criteria, the Company does not reduce
impairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss,
the Company combines financial instruments on the basis
of shared credit risk characteristics with the objective of
facilitating an analysis that is designed to enable significant
increases in credit risk to be identified on a timely basis.

Financial liabilities

Initial recognition, measurement and presentation

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables or derivatives, as appropriate.

All financial liabilities are recognised initially at fair value and,
in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

The Company''s financial liabilities include trade payables,
loans and borrowings including bank overdrafts, other
financial liabilities and derivative financial instruments.

For purposes of subsequent measurement, financial liabilities
are classified in two categories:

â¢ Financial liabilities at fair value through profit or loss.

â¢ Financial liabilities at amortised cost (loans and
borrowings).

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition at fair value through
profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative financial
instruments entered into by the Company that are not
designated as hedging instruments in hedge relationships as
defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in
the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS
109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk
are recognised in OCI. These gains/ loss are not subsequently
transferred to profit or loss. However, the Company may
transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the
statement of profit and loss.

Loans and borrowings

After initial recognition at fair value, interest-bearing loans
and borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are recognised
in the statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is included
as finance costs in the statement of profit and loss.

This category generally applies to borrowings.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The

difference in the respective carrying amounts is recognised
in the statement of profit and loss.

Offsetting financial instruments

Financial assets and liabilities are off-set and the net amount
is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognized amounts and
there is an intention to settle on a net basis or realize the
asset and settle the liability simultaneously.

Derivative financial instruments

The Company uses derivative financial instruments, such
as foreign exchange forward contracts, and interest rate
swap to manage its exposure to interest rates and foreign
exchange risks. Such derivative financial instruments are
initially recognized at fair value on the date on which a
derivative contract is entered into and are subsequently reÂ¬
measured at fair value.

Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value is
negative.

The Company enters into derivative contracts to hedge
risks which are not designated in any hedging relationship
i.e., hedge accounting is not followed. Such contracts are
accounted for at FVTPL.

(xvi) Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are readily
convertible to a known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company''s cash
management.

(xvii) Cash dividend to equity holders

The Company recognises a liability for payment of dividend
to equity holders when the distribution is authorised and the
distribution is no longer at the discretion of the Company.
As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding
amount is recognised directly in equity.

(xviii) Earnings per share

Basic earnings per share are calculated by dividing the
profit for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding
during the period.

For the purpose of calculating diluted earnings per share, the
profit for the period attributable to equity shareholders and
the weighted average number of shares outstanding during

the period are adjusted for the effects of all dilutive potential
equity shares.

(xix) Segment Information

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision-maker. The Chief Operating decision-maker is
responsible for allocating resources and assessing the
performance of the operating segments and makes strategic
decisions.

(xx) New accounting standards, amendments
and interpretations adopted by the Company
effective from April 1, 2024:

The accounting policies adopted in the preparation of the
standalone financial statements are consistent with those
followed in the preparation of the Company''s annual financial
statements for the year ended March 31, 2024, except for
amendments to the existing Indian Accounting Standards
(Ind AS). The Company has not early adopted any other
standard, interpretation or amendment that has been issued
but is not yet effective.

The Ministry of Corporate Affairs notified new standards or
amendment to existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time.

The Company applied following amendments for the firstÂ¬
time during the current year which are effective from
April 1, 2024:

Introduction of Ind AS 117:

MCA notified Ind AS 117, a comprehensive standard
that prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for accounting
insurance contracts and it applies to all companies i.e., to all
"insurance contracts" regardless of the issuer. However, Ind
AS 117 is not applicable to the entities which are insurance
companies registered with IRDAI.

Additionally, amendments have been made to Ind AS 101,
First-time Adoption of Indian Accounting Standards, Ind
AS 103, Business Combinations, Ind AS 105, Non-current
Assets Held for Sale and Discontinued Operations, Ind
AS 107, Financial Instruments: Disclosures, Ind AS 109,
Financial Instruments and Ind AS 115, Revenue from
Contracts with Customers to align them with Ind AS 117.
The amendments also introduce enhanced disclosure
requirements, particularly in Ind AS 107, to provide clarity
regarding financial instruments associated with insurance
contracts.

Amendments to Ind AS 116-Lease liability in a sale
and leaseback:

The amendments require an entity to recognise lease liability
including variable lease payments which are not linked to
index or a rate in a way it does not result into gain on Right
of use asset it retains.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have a significant impact on the
Company''s Standalone Financial Statements.

1D. SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of standalone financial statements in
conformity with Ind AS requires management to make
judgements, estimates and assumptions, that affect the
application of accounting policies and the reported amounts
of assets, liabilities, income and expenses at the date of
these standalone financial statements and the reported
amounts of revenues and expenses for the year presented.
Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each
balance sheet date. Revisions to accounting estimates are
recognized in the period in which the estimate is revised and
future periods affected.

Estimates and judgments involved in applying accounting
policies, is in respect of:

â¢ Useful lives of property, plant and equipment
and Intangible assets

Determination of the estimated useful lives of tangible
and intangible assets and the assessment as to which
components of the cost may be capitalized. Useful lives of
tangible assets are based on the life prescribed in Schedule
II of the Companies Act, 2013.

â¢ Taxes

There are many transactions and calculations undertaken
during the ordinary course of business for which the
ultimate tax determination is uncertain. Where the final tax
outcome of these matters is different from the amounts
initially recorded, such differences will impact the current
and deferred tax provisions in the period in which the tax
determination is made. The assessment of probability
involves estimation of a number of factors including future
taxable income.

â¢ Defined benefit plans (gratuity benefits)

A liability in respect of defined benefit plans is recognised in
the balance sheet, and is measured as the present value of
the defined benefit obligation at the reporting date less the
fair value of the plan''s assets. The present value of the defined
benefit obligation is based on expected future payments
at the reporting date, calculated annually by independent
actuaries. Consideration is given to expected future salary
levels, experience of employee departures and periods of
service. Refer note 28 for details of the key assumptions
used in determining the accounting for these plans.

â¢ Discounts, rebates and sales returns

The Company recognises the accruals for rebates/ discount/
incentives and returns based on accumulated experience
and underlying schemes and agreements with customers.

Notes:

(1) In case of work-in-progress (including intermediate goods), during the year ended March 31, 2025 '' 1.38 millions
(March 31, 2024''5.35 millions) was recognised as expense for inventories at net realizable value.

(2) In case of finished goods, during the year ended March 31, 2025''1.71 millions (March 31, 2024''3.45 millions) was
recognised as expense for inventories at net realizable value.

(3) Finished goods includes goods in transit '' 103.60 millions (March 31, 2024''20.46 millions).

(4) Stock in trade includes goods in transit '' 9.15 millions (March 31, 2024''0.01 millions).

(5) The secured cash credit facilities are covered by paripassu charge on inventories (including raw material, finished goods
and work-in-progress) and trade receivables (refer note 14).

(6) The above includes inventories held by third parties amounting to '' 91.33 millions (March 31, 2024''87.14 millions).

(7) The mode of valuation of inventories has been stated in note 1C(xi).

14. BORROWINGS (Contd.)

Details of terms and securities for the above
borrowing facilities are as follows:

1) Cash Credit from State Bank of India amounting to
'' 6.82 millions (P.Y '' 174.23 Million) is secured by
Hypothecation and pari passu first charge on entire
present and future asset of the comapny comprises of
stocks & receivables and equitable mortgage of Factory
land & buildings: Plot no 408,409,410 & 411 at kerala
GIDC, Bavla, Ahmedabad; Office Building: 901 to 903
& 911, B-square-2, Iscon Ambli Road, Ahmedabad.
The cash credit facility carries interest rate linked to 6
months MCLR Plus spread of 0.30%. (March 31, 2024:
6 months MCLR Plus spread of 0.30%). The effective
interest rate is 9.15% (March 31, 2024: 8.85%).

2) The term loan from State Bank of India amounting
to '' 296.85 millions (P.Y '' 366.27 Million) for
construction & establishment of saykha technical
manufacturing plant, secured by Hypothecation of all
the plant & machineries, utility item, furniture fixture,
lab items, misc fixed assets created out of credit
facilities extended by bank situated at Plot no. DP/154
Saykha to Saran Village Road Saykha industrial Estate
GIDC Mouje Saykha Bharuch and equitable mortgage
of Factory land & buildings : Plot no 408, 409, 410
& 411 at Kerala GIDC, Bavla, Ahmedabad; Factory
land and building situated at Plot no. DP/154 Saykha
to Saran Village Road Saykha industrial Estate GIDC
Mouje Saykha Bharuch; Office Building: 901 to 903 &
911, B-square-2, Iscon Ambli Road, Ahmedabad. The
loan carries interest rate linked to 6 months MCLR plus
spread of 0.30%. (March 31,2024: 6 months MCLR
plus spread of 0.30%) The effective interest rate is
9.20% (March 31, 2024: 8.80%). The loan is repayable
in 64 monthly installments commencing from February
2024.

All the credit facilities extended by State Bank of India
is also secured by personal guarantee of Manjulaben
Rameshbhai Talavia, Muktaben Jamankumar
Talaviya,Vishalbhai H Domadia, Jagdish R Savaliya,
Rameshbhai R Talavia, Jamankumar H Talavia.

3) Cash Credit from HDFC Bank amounting to
'' 287.47 millions (P.Y '' 61.74 million) is secured by
Hypothecation of stocks, debtors, plant & machinery
and equitable mortgage of Factory land & buildings:
Plot no 408,409,410 & 411 at kerala GIDC, Bavla,
Ahmedabad; Factory land and building situated at
Plot no. DP/154 Saykha to Saran Village Road Saykha
industrial Estate GIDC Mouje Saykha Bharuch; Office
Building: 901 to 903 & 911, B-square-2, Iscon Ambli
Road, Ahmedabad. The effective interest rate is 8.19%.
(March 31, 2024: 8.37%).

4) The term loan from HDFC bank amounting to '' 460.57
millions (P.Y '' 500 Million) is sanctioned for construction
& establishment of saykha technical manufacturing
plant, secured by Hypothecation of plant & machinery
and equitable mortgage of Factory land & buildings
situated at Plot no. 408,409,410 & 411 at kerala GIDC,
Bavla, Ahmedabad; Factory land and building situated
at Plot no. DP/154 Saykha to Saran Village Road Saykha
industrial Estate GIDC Mouje Saykha Bharuch; Office
Building situated at 901 to 903 & 911, B-square-2,
Iscon Ambli Road, Ahmedabad. The effective interest
rate is 8.02%. (March 31, 2024: 8.36%). The loan is
repayable in 109 monthly installments commencing
from April 2024.

All the credit facilities extended by HDFC Bank is
also secured by personal guarantee of Manjulaben
Rameshbhai Talavia, Muktaben Jamankumar
Talavia,Vishalbhai H Domadia, Jagdish R Savaliya,
Rameshbhai R Talavia, Jamankumar H Talavia.

5) The unsecured loans from directors & others are
repayable on demand when there is surplus cash
available with the company. Based on the management''s
assessment of repayment the same has been classified
as current as at March 31, 2025.

6) Vehicle loans are secured against the same vehicles
for which loan is taken. All vehicle loan are repayable
in 60 monthly installments commencing from date of
sanction. The loan carries fixed interest rate of 7.25%-
9.10%.

7) Company has availed Buyer''s credit interchangeably
with Letter of credit facility from HDFC bank amounting
to '' 97.29 (P.Y: Nil) millions, secured by Hypothecation
of plant & machinery and equitable mortgage of Factory
land & buildings situated at Plot no 408,409,410 & 411
at kerala GIDC, Bavla, Ahmedabad; Factory land and
building situated at Plot no. DP/154 Saykha to Saran
Village Road Saykha industrial Estate GIDC Mouje
Saykha Bharuch; Office Building situated at 901 to 903
& 911, B-square-2, Iscon Ambli Road, Ahmedabad.
The buyer''s credit facility carries interest rate linked to
SOFR PLUS 175 bps.The interest rate for buyer''s credit
ranges from 6.09% - 6.26%. The buyer''s credit / Letter
of credit carries bank charges at 1% p.a.

All the credit facilities extended by HDFC Bank is
also secured by personal guarantee of Manjulaben
Rameshbhai Talavia, Muktaben Jamankumar Talaviya,
Vishalbhai H Domadia, Jagdish R Savaliya, Rameshbhai
R Talavia, Jamankumar H Talavia.

The management assessed that carrying values of financial assets i.e., cash and cash equivalents, Investments, loans, trade
receivables, other financial assets and liabilities as at March 31, 2025 and as at March 31, 2024 are reasonable approximations
of their fair values largely due to the short-term maturities of these instruments.

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.

B. Fair value measurements

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. The Company uses the following
hierarchy for determining and/or disclosing the fair value of Financial Instruments by valuation techniques:

(i) Level 1: quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

(ii) Level 2: inputs other than quoted prices included within Level 1 that are observable for the Assets or Liabilities, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

(iii) Level 3: inputs for the Assets or Liabilities that are not based on observable market data (unobservable inputs).

39. THE CODE ON SOCIAL SECURITY 2020

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.

40. OTHER STATUTORY INFORMATION:

(i) The Company does not have any Benami property,
where any proceeding has been initiated or pending
against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988
and rules made thereunder.

(ii) The Company does not have any transactions with
companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies
Act, 1956.

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

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

(v) Utilisation of Borrowed funds and share premium:

(i) 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.

(ii) 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.

(vi) 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).

(vii) The Company has not been declared a Wilful Defaulters
by any bank or financial institution or consortium
thereof in accordance with the guidelines on wilful
defaulters issued by the RBI.

(viii) There is no immovable property whose title deed is not
held in the name of the Company.

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

(x) The Company has not entered into any scheme of
arrangement in terms of sections 230 to 237 of the
Companies Act, 2013.

(xi) The Company has availed loans from banks on the
basis of security of current assets. The Company files
statement of current assets with the bank on periodical
basis. Reconciliation of quarterly returns or statements
of current assets filed with banks or financial institutions:

2) Trade Receivables:

a) Reversal of interest income on overdue trade receivables,

b) Loss allowance made for trade receivables,

c) Adjustments to trade receivables due to period-end cut-off procedures,

d) Remeasurement of balances due to foreign exchange rate fluctuations,

e) Recognition of discounts and rebates applied to revenue within trade receivables.

3) Advances to Suppliers and Advances from Customers:

a) Offsetting of these advances against trade payables and trade receivables.

4) Trade Payables:

a) Only inclusion of payables related to raw material and packing material vendor balances.

41. The Company has used an accounting software for maintaining its books of account, which has a feature of recording
the audit trail (edit log) facility, except that audit trail feature was not enabled throughout the year for certain relevant
transactions/fields/tables within the software at the application level. Further, for audit trail at database level, SOC
report with adequate coverage is not available with the Company.

Further, except for above, audit trail feature has operated throughout the year for all relevant transactions recorded
in the accounting software. Also, there are no instances of audit trail feature being tampered with except for above.
Additionally, the audit trail of previous year has been preserved by the Company as per the statutory requirements for
record retention to the extent it was enabled and recorded in previous year.

42. In the financial year 2022-23, the Company had completed initial public offer (IPO) of 10,596,924 equity shares of
face value of '' 10 each at an issue price of '' 237/- per share, comprising fresh issue of 9,113,924 shares (including
55,000 shares issued to employees at concessional rate of '' 227/- per share) and offer for sale of 1,483,000 shares
by selling shareholders. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange
of India limited (NSE) and BSE Limited (BSE) on December 8, 2022.

The Company had received an amount of '' 2,014.39 millions (net off IPO expenses of '' 145.06 millions) from proceeds
out of fresh issue of equity shares.

43. During the previous year ended March 31, 2024, the Board of Directors in their meeting held on November 03, 2023
considered and approved the Employee Stock Option Scheme, viz., Dharmaj Employees Stock Option Plan 2023
(''Scheme''), in terms of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The maximum
number of options that may be issued pursuant to this scheme is 300,000 Share options, to be convertible into equal
number of Equity shares of the Company. This Scheme was approved by the members through Postal Ballot with the
facility of E-voting by December 05, 2023. As on March 31, 2025, no stock options were granted to eligible employees.

44. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by
Company.

45. Standards issued but not effective: As at the date of issue of financial statements, there are no new standards or
amendments which have been notified by the MCA but not yet adopted by the Company. Hence, the disclosure is not
applicable.

46. EVENTS AFTER THE REPORTING PERIOD

The Company evaluates all events and transactions occurring subsequent to the balance sheet date but before the
approval of the financial statements to assess whether they require recognition or disclosure in the financial statements.
On January 07, 2025, the Company received an intimation from the GST Department regarding the initiation of a GST
audit covering the period from April 2018 to March 2024. During the course of the audit, the Department raised several
objections, including issues related to the incorrect classification of products, ineligible availment of Input Tax Credit
(ITC), and other compliance matters. Although a formal Show Cause Notice quantifying the demand has not yet been
issued, the Company received the final audit order, based on which it admitted a liability of '' 4.59 millions. This amount
was paid on April 25, 2025. As the conditions giving rise to this liability existed as of the balance sheet date and the
obligation was confirmed prior to the approval of the financial statements, this constitutes an adjusting event under
Ind AS 10. Accordingly, the financial impact has been recognized in the financial statements for the year ended March
31, 2025.

As per our report of even date

For M S K A & Associates For and on behalf of the Board of Directors

Chartered Accountants Dharmaj Crop Guard Limited

ICAI Firm Registration No: 105047W CIN: L24100GJ2015PLC081941

Samip Shah Rameshbhai Talavia Jamankumar Talavia

Partner Chairman & Managing Director Whole Time Director

Membership No: 128531 DIN: 01619743 DIN: 01525356

Vishal Domadia Vikas Agarwal

Chief Executive Officer Chief Financial Officer

Malvika Kapasi

Place: Ahmedabad Place: Ahmedabad Company Secretary

Dated: May 30, 2025 Dated: May 30, 2025 Membership No: A52602

Mar 31, 2024

(1) In case of semi finished goods, during the year ended March 31, 2024''5.35 million (March 31, 2023 '' Nil, April 01, 2022 '' Nil) was recognised as expense for inventories at net realizable value.

(2) In case of finished goods, during the year ended March 31, 2024''3.45 million (March 31, 2023 '' Nil, April 01, 2022 '' Nil) was recognised as expense for inventories at net realizable value.

(3) The secured cash credit facilities are covered by paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 14).

(1) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person nor any trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member.

(2) Generally, as per credit terms trade receivable are collectable within 90-120 days although the Company provide extended credit period with interest between 18%-36% considering business and commercial arrangements with the customers.

(3) The secured cash credit facilities are covered by paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 14).

(4) For information about credit risk and market risk related to trade receivable, please refer note 36.

12.5 Terms/rights attached to equity shares

Equity shares have a par value of '' 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.

12.6 Issue of Shares Under Bonus shares

In Financial year 2021-22 the Company had issued 82,27,791 bonus shares of face value of '' 10 each. Bonus issue was in proportion of 1:2 on the record date of November 27, 2021 for 82,27,791 fully paid equity shares to the shareholders. The shares was issued from securities premium reserve and retained earnings.

12.7 The Company has not bought back any equity shares during the period of five years immediately preceding the reporting date.

12.8 The Company has not issued any shares for consideration other than cash.

Nature & Purpose of Reserves

Retained earnings:

Retained earnings are the profits earned till date, less any transfers to other reserves and dividends distributed.

Securities premium:

Securities premium comprises of the premium on issue of shares. The reserve can be utilised in accordance with the specific provision of the Companies Act, 2013.

Details of terms and securities for the above borrowing facilities are as follows:

1) Cash Credit from State Bank of India amounting to '' 300 million is secured by Hypothecation of stocks & receivables and equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The cash credit facility carries interest rate linked to 6 months MCLR Plus spread of 0.30%. (March 31, 2023: 6 months MCLR plus spread of 1.05%). The effective interest rate is 8.85%.

2) The term loan from State Bank India amounting to '' 400 million is sanctioned for construction & establishment of saykha technical manufacturing plant, secured by Hypothecation of all the plant & machineries, utility item, furniture fixture, lab items, misc fixed assets created out of credit facilities extended by bank situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch and equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at Kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The loan carries interest rate linked to 6 months MCLR plus spread of 0.30%. (March 31,2023: 6 months MCLR plus spread of 1.05%) The effective interest rate is 8.80% (March 31, 2023: 9.10%). The loan is repayable in 64 monthly installments commencing from February 2024.

All the credit facilities extended by State Bank of India is also secured by personal guarantee of Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talaviya, Vishalbhai H Domadia, Jagdish R Savaliya, Rameshbhai R Talavia, Jamankumar H Talavia.

3) Cash Credit from HDFC Bank amounting to '' 227.50 million is secured by Hypothecation of stocks, debtors, plant & machinery and

equitable mortgage of Factory land & buildings: Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building: 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The effective interest rate is 8.37%. (March 31, 2023: 8.75%)._

4) The term loan from HDFC bank amounting to '' 500 million is sanctioned for construction & establishment of saykha technical manufacturing plant, secured by Hypothecation of plant & machinery and equitable mortgage of Factory land & buildings situated at Plot no 408, 409, 410 & 411 at kerala GIDC, Bavla, Ahmedabad; Factory land and building situated at Plot no. DP/154 Saykha to Saran Village Road Saykha industrial Estate GIDC Mouje Saykha Bharuch; Office Building situated at 901 to 903 & 911, B-square-2, Iscon Ambli Road, Ahmedabad. The effective interest rate is 8.36% (March 31, 2023: 10.05%). The loan is repayable in 109 monthly installments commencing from April 2024.

All the credit facilities extended by HDFC Bank is also secured by personal guarantee of Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talaviya, Vishalbhai H Domadia, Jagdish R Savaliya, Rameshbhai R Talavia, Jamankumar H Talavia.

5) The unsecured loans from directors & others are repayable on demand when there is surplus cash available with the Company. Based on the management''s assessment of repayment the same has been classified as current as at March 31, 2024.

6) Vehicle loans are secured against the same vehicles for which loan is taken. All vehicle loan are repayable in 60 monthly installments commencing from date of sanction. The loan carries fixed interest rate of 7.25%-9.10%.

7) Overdraft facility from HDFC Bank amounting to '' 450 million is secured against fixed deposits of '' 500 million. The said facility is fully repaid during the current financial year. The OD facility carries interest rate linked to FD ROI plus spread of 1%. The effective interest rate is 7.50%.

(1) In case of finished goods, during the year ended March 31, 2024''3.45 million (March 31, 2023 '' Nil) was recognised as expense for inventories at net realizable value.

(2) In case of semi finished goods, during the year ended March 31, 2024 '' 5.35 million (March 31, 2023 '' Nil) was recognised as expense for inventories at net realizable value.

28. EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

*The current patent infringement litigation initiated against the Company before the Hon''ble Delhi High Court, is at a pre-trial stage. The pleadings have been completed and the Company has an arguable case in defence in terms of invalidity. The Company''s appeal against the interim order is also pending before the Division Bench (2 Judge Bench) of the Delhi High Court. There is no immediate likelihood of financial liability being imposed upon the Company as that would only be adjudicated by the Courts post-trial which is likely to take a few months to years.

ii) Defined benefits plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service calculated on actuarial basis. The gratuity plan is a unfunded plan. The retirement age for the employees is 58 years.

30.2 Other Long-term employee benefits

i) Defined Benefit plan (Privilege Leave):

Entitlements to annual leave, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of leave encashment as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Entitlements to annual leave, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long-term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise. Amount of '' 8.47 million (March 31, 2023 '' Nil) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.

ii) Defined Benefit plan (Sick Leave):

Amount of '' 3.92 million (March 31, 2023 '' Nil) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.

31. RELATED PARTY DISCLOSURES:

March 31, 2024

In accordance with the requirements of Ind AS - 24 ''Related Party Disclosures'', names of the related parties, related party relationship, transactions and outstanding balances with whom transactions have taken place during reported periods are:

31.1 Name of related parties and their relationship

Key Management Personnel:

Rameshbhai Ravajibhai Talavia (Managing Director)

Jamankumar Hansarajbhai Talavia (Whole-Time Director)

Vishal Domadia (Chief Executive Officer)

(Designated on January 06, 2023)

Jagdishbhai Ravjibhai Savaliya (Whole-Time Director)

Vinay Joshi (Chief Financial Officer) (Joined on January 06, 2023)

Malvika Bhadresh Kapasi (Company Secretary)

Dipak Bachubhai Kanparia (Independent Director)

Bhaveshkumar Jayantibhai Ponkiya (Independent Director) Amisha Fenil Shah (Independent Director)

Relatives of Key Management Personnel:

Manjulaben Rameshbhai Talavia Muktaben Jamankumar Talavia Artiben Domadia Illaben Jagdishbhai Savaliya Prafullaben Shantilal Savaliya

Megi Ramesh Talavia Darshit Rameshbhai Talavia Jinal Jamankumar Talavia Hitarth Jamankumar Talavia

Entity over which Key Management Personnel or their relatives are able to exercise significant influence:

Dharmaj Foundation

Entity over which the Company has significant influence:

Khetipoint Private Limited (Upto June 01, 2023)

Terms and conditions of transactions with related parties:

(i) The future liability for gratuity and compensated absence is provided on aggregated basis for all the employees of the Company taken as a whole, the amount pertaining to KMPs is not ascertainable separately and therefore not included above.

32. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are Schedule VII(ii) promoting education,including special education and employment enhancing vocation skills. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

34. SEGMENT REPORTING

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM) i.e. the Board of Directors. The Company''s activities comprise manufacturing and dealing in pesticides including concessionaires of public health products for pest control, insecticides, herbicides, fertilizers and allied products related to research and technical formulations. As the Company''s business activity falls within a single business segment viz. "Agri-Inputs" and hence there is no separate reportable segment as per Ind AS 108 "Operating Segment".

The management assessed that carrying values of financial assets i.e., cash and cash equivalents, Investments, loans, trade payables, trade receivables, other financial assets and liabilities as at March 31, 2024 and as at March 31, 2023 are reasonable approximations of their fair values largely due to the short-term maturities of these instruments.

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.

Fair value hierarchy

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. The Company uses the following hierarchy for determining and/or disclosing the fair value of Financial Instruments by valuation techniques:

(i) Level 1: quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

(ii) Level 2: inputs other than quoted prices included within Level 1 that are observable for the Assets or Liabilities, either directly (i.e., as

prices) or indirectly (i.e., derived from prices).

(iii) Level 3: i nputs for the Assets or Liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

Financial instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities 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 trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks and ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

(A) 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. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Exposure to 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 exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates to the Company''s operating activities denominated in United States Dollar (USD), Arab Emirates Dirham (AED).

The following table sets forth information relating to unhedged foreign currency exposure as at March 31, 2024 and March 31, 2023.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, Euro & AED exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Company''s receivables, from deposits with landlords and other security deposits and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade Receivables

Trade Receivables of the Company are unsecured. Credit risk is managed through periodic monitoring of the creditworthiness of customers in the normal course of business. The allowance for impairment of Trade receivables is created to the extent and as and when required, based upon the past and expected collection pattern of accounts receivables.

(C) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing through various short term and long-term loans at an optimized cost.

37. 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. The primary objective of the Company''s capital management is to maximize the shareholder value, to optimize returns to the shareholders and to ensure the Company''s ability to continue as a going concern.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Notes:

i) The information below summaries the impact of restatement

on the balance sheet as on April 01, 2022:

a. Reclassification of Advance to Capital supplier from Other Current Assets to Other Non-current Assets '' 16.53 million.

b. Reclassification of Balance with Government Authorities from Other Non-current Assets to Other Current Assets '' 34.35 million.

c. Reclassification of interest on overdue trade receivables from Trade Receivables to Other Current Financial Assets '' 4.71 million.

d. Reclassification of Security Deposits received from customers from Other non-current liabilities to Other current financial liabilities '' 22.41 million.

e. Reclassification of Creditors for Capital Goods from Trade Payable to Other current financial liabilities '' 16.39 million.

f. Reclassification of employee benefits payable from Trade Payables to Other current financial liabilities '' 11.97 million.

ii) The information below summarises the impact of restatement

on the Balance Sheet as on March 31, 2023:

a. Correction of expenditure inadvertently capitalised in Capital Work in Progress, now charged off to Other Expenses '' 62.50 million.

b. Reclassification of Advance to Capital supplier from Other Current Assets to Other Non-current Assets '' 92.19 million.

c. Reclassification of Balance with Government Authorities from Other Non-current Assets to Other Current Assets '' 109.78 million.

d. Reclassification of interest on overdue trade receivables from Trade Receivables to Other Current Financial Assets '' 13.70 million

e. Reclassification of Security Deposits given to vendors from Loans to Other Current Financial Assets '' 25.12 million.

f. Reclassification of Security Deposits received from customers from Other non-current liabilities to Other current financial liabilities '' 37.48 million.

g. Reclassification of Creditors for Capital Goods from Trade Payable to Other current financial liabilities '' 167.90 million.

h. Reclassification of employee benefits payable from Trade Payables to Other current financial liabilities '' 19.58 million.

iii) The information below summarises the impact of restatement

on the Statement of Profit or Loss for the year ended March

31, 2023:

a. Correction of expenditure inadvertently capitalised in Capital Work in Progress, now charged off to Other Expenses '' 62.50 million.

b. Reclassification of Sales related discounts from other expenses to Revenue from Operations '' 71.18 million.

c. Reclassification of discount on purchase of goods from Revenue from Operations to Cost of materials consumed '' 21.35 million.

d. Reclassification of Traded Goods from cost of materials consumed to Purchase of Stock in Trade '' 1,110.17 million.

e. Reclassification of Freight inward and consumption of packing materials from Manufacturing & Operating Costs to Cost of materials consumed '' 14.82 million.

f. Reclassification of consumption of stores and spares from Cost of material consumed to other expenses '' 2 million.

g. Reclassification of Manufacturing & Operating expenses to other expenses '' 43.62 million.

Footnote:

(i) Current Assets = Inventories Trade Receivable Cash & Cash Equivalents Other Current Assets Other financial assets

(ii) Current Liability = Short-term borrowings Trade Payables Other financial Liability Provisions Other Current Liability

(iii) Debt = long-term borrowing and current maturities of longterm borrowings

(iv) Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interest other adjustments like loss on sale of Fixed assets etc.

(v) Debt Service = Interest & Lease Payments Principal Repayments

(vi) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

41. THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

42. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

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

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

(v) Utilisation of Borrowed funds and share premium:

(i) 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.

(ii) 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 not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines on wilful defaulters issued by the RBI.

(ix) There is no immovable property whose title deed is not held in the name of the Company.

(x) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(xi) The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013.

(xii) The Company has availed loans from banks on the basis of security of current assets. The Company files statement of current assets with the bank on periodical basis. Reconciliation of quarterly returns or statements of current assets filed with banks or financial institutions:

The reason for reconciliation between quarterly returns or statements of current assets filed with banks are as follows:

1) Inventories:

a) Inter-branch stock in transit,

b) Exclusion of stores and spares inventory,

c) Adjustments arising from the application of sales cut-off procedures.

2) Trade Receivables:

a) Reversal of interest income on overdue trade receivables,

b) Loss allowance made for trade receivables,

c) Adjustments to trade receivables due to period-end cut-off procedures,

d) Remeasurement of balances due to foreign exchange rate fluctuations,

e) Recognition of discounts and rebates applied to revenue within trade receivables.

3) Advances to Suppliers'' and Advances from Customers'':

a) Offsetting of these advances against trade payables and trade receivables.

4) Trade Payables:

a) Only inclusion of payables related to raw material and packing material vendor balances.

43. The Company uses an accounting software for maintaining its books of accounts during the year ended March 31, 2024, which has a feature of recording the audit trail (edit log) facility and the same has been operated throughout the year for all the relevant

transactions recorded in the accounting software. However, a) the trail feature was not enabled throughout the year for certain relevant transactions recorded in the accounting software at the application level. b) the audit trail feature was not enabled at the database level within the accounting software to log any direct data changes. No feature of audit trail being tampered with was noted in respect of the software.

44. In the financial year 2022-23, the Company had completed initial public offer (IPO) of 10,596,924 equity shares of face value of '' 10 each at an issue price of '' 237/- per share, comprising fresh issue of 9,113,924 shares (including 55,000 shares issued to employees at concessional rate of '' 227/- per share) and offer for sale of 1,483,000 shares by selling shareholders. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India limited (NSE) and BSE Limited (BSE) on December 08, 2022.

The Company had received an amount of '' 2014.39 million (net off IPO expenses of '' 145.06 million) from proceeds out of fresh issue of equity shares.

The entire IPO proceeds was utilized as per objects of IPO as tabulated above and certificate in this regard was issued by Care Edge Ratings (Monitoring Agency) which was submitted to the stock exchanges (BSE and NSE) on November 03, 2023.

45. During the year ended March 31, 2024, the Company has commenced its commercial production from January 22, 2024 at its new manufacturing plant situated at Saykha, Bharuch, Gujarat.

46. EVENTS AFTER THE REPORTING PERIOD

No Significant Subsequent events have been observed which may require an adjustments to the financial statements.

Mar 31, 2023

N) Provisions, Contingent Liabilities and Contingent

Assets

Provisions

The Company recognizes a provision when: it has a present legal or constructive obligation as a result of past events; it is likely that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognized for future operating losses. Provisions are reviewed at each balance sheet and adjusted to reflect the current best estimates.

Contingent liabilities and Contingent Assets

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, is disclosed as a contingent liability. Contingent liabilities are also disclosed 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.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

A contingent assets is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements. Contingent liabilities and contingent assets are reviewed at each balance sheet date.

O) Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, if any. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

P) Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.

Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction in the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the statement of profit and loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as operating leases. Lease rentals are charged to the statement of profit and loss on straight line basis.

Q) Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is current when it is:

â¢ Expected to be realized or intended to be sold or consumed in normal operating cycle,

â¢ Held primarily for the purpose of trading,

â¢ Expected to be realized within twelve months after the reporting period,

All other assets are classified as non-current.

A liability is current when:

â¢ It is expected to be settled in normal operating cycle,

â¢ It is held primarily for the purpose of trading,

â¢ It is due to be settled within twelve months after the reporting period, or

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Deferred tax assets/liabilities are classified as non-current.

All other liabilities are classified as non-current.

R) Fair value measurement

The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

â¢ Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

â¢ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

S) Financial instruments

a. Financial assets:

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortized cost.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in two broad categories:

â¢ Financial assets at fair value

â¢ Financial assets at amortized cost

Where assets are measured at fair value, gains and losses are either recognized entirely in the statement of profit and loss (i.e. fair value through profit or loss), or recognized in other comprehensive income (i.e. fair value through other comprehensive income).

A financial asset that meets the following two conditions is measured at amortized cost (net of any write down for impairment) unless the asset is designated at fair value through profit or loss under the fair value option.

â¢ Business model test: The objective of the Company''s business model is to hold the financial asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair value changes).

â¢ Cash flow characteristics test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless the asset is designated at fair value through profit or loss under the fair value option.

â¢ Business model test: The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.

Even if an instrument meets the two requirements to be measured at amortized cost or fair value through other comprehensive income, a financial asset is measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ''accounting mismatch'') that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

All other financial asset is measured at fair value through profit or loss.

All equity investments other than investment on subsidiary, joint venture and associates are measured at fair value in the balance sheet, with value changes recognized in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

â¢ The rights to receive cash flows from the asset have expired, or

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Investment in associates, joint venture and subsidiaries

The Company has accounted for its investment in subsidiaries and associates, joint venture at cost.

Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model to the Financial assets measured at amortized cost.

Expected credit losses are measured through a loss allowance at an amount equal to

â¢ the 12 - months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

â¢ full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

The Company follows âsimplified approachâ for recognition of impairment loss allowance on

â¢ Trade receivables or contract revenue receivables; and

â¢ All lease receivables

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12 - months ECL.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.

b. Financial liabilities:

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method.

Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an

existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amount is recognized in the statement of profit and loss.

c. Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amount and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

d. Derivative financial instruments:

The Company enters into derivative contracts to hedge foreign currency price risk on unexecuted firm commitments and highly probable forecast transactions. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss.

T) Employee Benefits

All employee benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.

Retirement benefit in the form of provident fund is a defined contribution scheme. 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 expense, when an employee renders the related service.

Gratuity, a defined benefit obligation is provided on the basis of an actuarial valuation made at the end of each year/period on projected Unit Credit Method.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method with actuarial valuations being carried out at each balance sheet date, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amount included in net interest on the net defined benefit liability and the return on plan assets (excluding amount included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to other comprehensive income in the period in which they occur. Re-measurements are not reclassified to the statement of profit and loss in subsequent periods. Past service cost is recognized in the Statement of Profit and Loss in the period of plan amendment.

The Company recognizes the following changes in the net defined benefit obligation under employee benefit expenses in the Statement of Profit and Loss:

i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements.

ii) Net interest expense or income.

Termination benefits are payable as a result of the Company''s decision to terminate employment before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes these benefits when it has demonstrably undertaken to terminate current employees'' employment in accordance with a formal detailed plan that cannot be withdrawn or to provide severance indemnities as a result of an offer made to encourage voluntary redundancy. Benefits that will not be paid within 12 months of the balance sheet date are discounted to their present value. Termination benefits are recognized as an expense in the period in which they are incurred.

(e) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of ^ 10/- each. Each holder of equity share is entitled to one vote per share. The distribution will be in proportion to the number of equity shares held by the shareholders.

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 preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(f) Changes in Authorised Capital

In Financial year 2021-22, the Company''s authorised capital increased from ^ 16,50,00,000 to ^ 35,00,00,000 comprising of 3,50,00,000 number of equity shares of face value ^ 10 each.

(g) Issue of Shares Under Bonus shares:

In Financial year 2021-22, the Company had issued 82,27,791 bonus shares of face value of ^ 10 each. Bonus issue was in proportion of 1:2 on the record date of November 27, 2021 for 82,27,791 fully paid equity shares to the shareholders. The shares was issued from securities premium reserve and retained earnings to the share capital.

(b) Details of securities and repayment terms of secured loans stated above;

1. Term loan and Cash Credit from HDFC Bank

i) Securities for Term Loans:

1) Primary Security charges on stock and books debts, and Plant and Machinery.

2 Collateral Security charges on immovable fixed assets of borrower at Factory land and building situated at Plot No 408 to 411, off NH8, Kerala GIDC Estate, Kerala, Tal. Bavla, Dist. Ahmedabad.

3) Collateral Security charges on immovable fixed assets of borrower at Factory land and building situated at 901 to 903 and 911, B - Square 2, Iscon Ambli road, Ahmedabad.

4) Collateral Security charges on immovable fixed assets of borrower at Factory land and building situated at Plot no. DP/154, Saykha to Saran Village Road, Saykha industrial Estate, GIDC Mouje Saykha, Bharuch.

ii) Securities for Term Loans from SBI Bank:

1) Primary Security charges on entire present & future current assets of the Company comprises stock and book debts, stores, spares, others etc.

2) Primary Security charges on all Plant, machineries, utility items, furniture fixture, lab items, misc. fixed assets created out at Plot no. DP/154, Saykha to Saran Village Road, Saykha industrial Estate, GIDC Mouje Saykha, Bharuch.

3) Primary Security charges on immovable fixed assets of borrower at factory land and building situated at Plot no. DP/154, Saykha to Saran Village Road, Saykha industrial Estate, GIDC Mouje Saykha, Bharuch.

4) Collateral Security charges on immovable fixed assets of borrower at factory land and building situated at Plot No 408 to 411, off NH8, Kerala GIDC Estate, Kerala, Tal. Bavla, Dist. Ahmedabad.

5) Collateral Security charges on immovable fixed assets at office no. 901 to 903 and 911, B - Square 2, Iscon Ambli road, Ahmedabad.

6) Collateral Security charges on all Plant, machineries, utility items, furniture fixture and other movable assets situated at Plot No 408 to 411, off NH8, Kerala GIDC Estate, Kerala, Tal. Bavla, Dist. Ahmedabad.

7) Joint and several guarantee by a) Rameshbhai Talavia, b) Jamankumar Talavia, c) Muktaben Talavia, d) Manjulaben Talavia, e) Jagdishbhai Savalia, f) Vishal Domadia in individual capacity.

Note:

1. Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.

2. Salary escalation & attrition rate are considered as advised by the Company; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.

3. Maturity Analysis of Projected Benefit Obligation is done considering future salary, attrition & death in respective year for members as mentioned above.

4. Risk Factors:

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Mortality risk:

If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death

benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Employee Turnover:

If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter valuation period.

Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the Company there can be strain on the cashflows.

Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/ regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

(i) Securities:

1) Cash Credit from Bankers:

Working Capital loan(Bank CC) is secured against hypothecation of Inventories, book debts and collaterally secured by equitable mortgage of factory, Office, Land and Building.

2) Bank Overdraft from Bankers:

Bank Overdraft (Bank OD) is secured against Bank FD.

(ii) Interest Rate:

Cash Credit* Interest Rate is 7.80%P.A. to 10.05%[Interest rates were 8.80%P.A. to 7.80%P.A. in 2021-22.]

Bank Overdraft* Interest Rate is 7.50%P.A.

(iii) Quarterly returns/stock statements filed by the Company with its bankers are in agreement with books of account.

36. Disclosure of transactions with Related Parties, as required by Indian Accounting Standard (Ind AS) - 24 "Related Party Disclosures"

(A) List of Related Parties

(a) Key Management personnel and their relatives

1) Rameshbhai Ravajibhai Talavia (Managing Director)

2) Jamankumar Hansarajbhai Talavia (Wholetime Director)

3) Vishal Domadia (Chief Financial Officer) (Resigned on 05/01/2023)

4) Vishal Domadia (Chief Executive Officer) (Designated on 06/01/2023)

5) Jagdishbhai Ravjibhai Savaliya (Wholetime Director)

6) Vinay Joshi (Chief Financial Officer) (Joined on 06/01/2023)

7) Manjulaben Rameshbhai Talavia (Relative of Director''s)

8) Muktaben Jamankumar Talavia (Relative of Director''s)

9) Maheshkumar Babulal Joshi (Independent Director) -(Resigned on 21/10/2021)

10) Deepak Bachubhai Kanparia (Independent Director)

11) Priyanka Choubey (Company Secretary) -(Resigned on 18/10/2021)

12) Malvika Bhadresh Kapasi (Company Secretary) -(Joined on 19/10/2021)

13) Domadia Artiben (Relative of KMP)

14) Illaben Jagdishbhai Savaliya (Relative of Director''s)

15) Prafullaben Shantilal Savaliya (Relative of Director''s)

16) Bhaveshkumar Jayantibhai Ponkiya (Independent Director) -(Joined on 18/11/2021)

17) Amisha Fenil Shah (Independent Director) -(Joined on 27/11/2021)

(b) Enterprise over which key management personnel/ their relatives have significant influences

1) Dharmaj Foundation

(c) Entity having Significant Influence

1) Khetipoint Private Limited

38. Financial Instruments

A. Calculation of Fair value

The fair value of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions are used to estimate the fair values of financial instruments:

i. The fair value of the long-term borrowing carrying floating-rate of interest is not impacted due to interest rate charges and will not be significantly different from their carrying amount as there is no significant change in the under-lying credit risk of the group.

ii. The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, book overdrafts and other current financial assets and liabilities approximate their carrying amount largely due to the short-term maturities of these instrument.

C. Fair Value Hierarchy

This section explains the judgments 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 and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

i) Recognised and measure at fair value:

Recognised and measurement of Financial Instrument is as per Note-38 (B)

ii) Measure at amortized cost for which fair value is disclosed:

The Company has determined fair value of all its financial instruments (except Investment) measured at amortized cost by using Level 3 inputs and Investment at FVTPL using Level 3 inputs.

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

1) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, and individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

2) The fair value of loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates

currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use unobservable inputs in the model, Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

39. Financial Risk Management

Financial Risk Management Objectives And Policies

The Company is exposed to various financial risks arising from its underlying operations and financial activities. The Company is primarily exposed to market risk (i.e. interest rate and foreign currency risk), credit risk and liquidity risk. The Company''s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities.

Financial risk management, which includes foreign currency risk, interest rate risk, credit and liquidity risk are very closely monitored by the senior management and the Board of Directors. The Company''s policies and guidelines also cover areas such as cash management, investment of excess funds and the raising of short and long term debt. Compliance with the policies and guidelines is managed by the senior management and directors. The objective of financial risk management is to manage and control financial risk exposures within acceptable parameters, while optimising the return.

The Company manages its market risk exposures by using specific type of financial instruments duly approved by the Board of Directors as and when deemed appropriate. The Company reviews and approves policies for managing each of the above risk.

i) Business/Market Risk

Market risk is the risk arising out of the fluctuations in fair value of future cash flows of a financial instrument because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes loans and borrowings, deposits, investments and derivative financial instruments. The Company enters into the derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk, from time to time.

ii) Foreign currency risk

Foreign currency risk also known as Exchange Currency Risk is the risk arising out of fluctuation in the fair value or future cash flows of an exposure because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company''s operating activities and financing activities. In the operating activities, the Company''s exchange rate risk primarily arises when revenue/costs are generated in a currency that is different from the reporting currency (transaction risk). The Company manages the exposure based on a duly approved policy by the Board, which is reviewed by Board of Directors on periodic basis. This foreign currency risk exposure of the Company is mainly in U.S. Dollar (USD).

The Company''s exposure in foreign currency is not material and hence the impact of any significant fluctuation in the exchange rates is not expected to have a material impact on the operating profits of the Company.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in inactive markets or inputs that are directly or indirectly observable in the market place.

iii) 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.

Trade receivables are typically unsecured and are derived from revenue earned from customer. 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 normal course of business. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account a continuing credit evaluation of the Company customers'' financial condition; ageing of trade accounts receivable and the Company''s historical loss experience.

Credit risk from balances with banks and financial institutions is managed by the Company''s Corporate Treasury function in accordance with the Company''s policy. Investments of surplus funds are made only with counter parties who meet the parameters specified in Investment Policy of the Company. The investment policy is reviewed by the Company''s Board of Directors on periodic basis and if required, the same may be updated during the year. The investment policy specifies the limits of investment in various categories of products so as the minimize the concentration of risks and therefore mitigate financial loss due to counter party''s potential failure.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the years ended March 31,2023 and March 31, 2022. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable liquid debt investments with appropriate maturities to optimise the returns on investments while ensuring sufficient liquidity to meet its liabilities.

41. Additional Regulatory Information las per the Schedule III requirements)

i) Title deeds of Immovable Properties not held in name of the Company

No such assets held by the Company as on period end March 31,2023, and March 31,2022.

ii) Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties

There is no Loans or advances granted to the Promoters, directors, KMP and the relative of their during the period ended March 2023, and March 2022.

iii) Details of Benami Property held

No such assets held by the Company as on period end March 31,2023, and March 31,2022.

iv) Registration of charges with Registrar of Companies

Company has register all it''s charges within time or extended time period given in the companies act, 2013.

v) Utilisation of Borrowed funds and share premium

A) The Company have 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:

(1) 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

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

B) The Company have 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:

(1) 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

(2) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) Relationship with Struck off Companies

The Company does not have any transactions with struck off companies.

vii) Wilful Defaulter

The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

viii) Compliance with approved Scheme(s) of Arrangements

There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

42. Significant Accounting Judgements, Estimates And Assumptions

The financial statements require management to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures 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.

(*) Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amount recognised in the separate financial statements.

(*) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

(*) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation 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 plans operated in India, the management considers the interest

rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. For plans operated outside India, the management considers the interest rates of high quality corporate bonds in currencies consistent with the currencies of the postemployment benefit obligation with at least an ''AA'' rating or above, as set by an internationally acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high quality corporate bonds.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

(*) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

43 . The Balance Sheet, Statement of Profit and Loss, Cash flow statement, Statement of Changes in Equity, Statement of Significant Accounting Policies and the other explanatory notes forms an integral part of the financial statements of the Company for the year ended March 31, 2023, and March 31, 2022.

44. Issue of Shares

Issue of Equity shares through IPO:

The Company has completed Initial Public Offer of 1,05,96,924 Equity Shares of the face value of ^ 10 each at an issue price of ^ 237 per Equity Share, comprising offer for sale of 14,83,000 shares by selling shareholders aggregating to ^ 351.47 Millions and fresh issue of 91,13,924 shares aggregating to ^ 2159.45 Millions. The Equity Shares of the Company were listed on December 8, 2022 on BSE Limited and the National Stock Exchange of India Limited.

IPO Expenses

The total IPO Expenses incurred ^ 171.27 Millions (Excludes goods and services tax) have been proportionately allocated between the selling shareholders and the Company. The Company''s share of expenses (net of taxes of ^ 25.168 Millions) of ^ 122.94 Millions has been adjusted against securities premium account.

For KARMA & Co LLP For and on behalf of the Board of Directors

Chartered Accountants DHARMAJ CROP GUARD LIMITED

FRN.: 127544W/W100376 CIN: L24100GJ2015PLC081941

CA Jignesh A. Dhaduk Rameshbhai Ravajibhai Talavia Jamanbhai Hansarajbhai Talavia

Partner Chairman & Managing Director Director

M.No.: 129149 DIN: 01619743 DIN: 01525356

UDIN: 23129149BGVKVL1320

Vishal Domadia Vinay Joshi

Chief Executive Officer Chief Financial Officer

Place: Ahmedabad Malvika Bhadreshbhai Kapasi

Dated: May 15, 2023 Company Secretary

A52602

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Notes to Accounts of Dharmaj Crop Guard Ltd.

(xiii) Provisions, Contingent Liabilities andContingent Assets

(xiv) Employee Benefits

Short-term benefits

Defined contribution plans

Defined benefit plans

Compensated absences

(xv) Financial instruments

Financial assets:

Initial recognition and measurement

Subsequent measurement

Debt instruments at amortised cost

Debt instrument at FVTPL

Debt instrument at FVTOCI

Derecognition of financial assets

Impairment of financial assets

Financial assets measured as at amortised cost andcontractual revenue receivables

Financial liabilities

Initial recognition, measurement and presentation

Financial liabilities at fair value through profit or loss

Loans and borrowings

Derecognition of financial liabilities

Offsetting financial instruments

Derivative financial instruments

(xvi) Cash and cash equivalent

(xvii) Cash dividend to equity holders

(xviii) Earnings per share

(xix) Segment Information

(xx) New accounting standards, amendmentsand interpretations adopted by the Companyeffective from April 1, 2024:

Introduction of Ind AS 117:

Amendments to Ind AS 116-Lease liability in a saleand leaseback:

1D. SIGNIFICANT ACCOUNTING JUDGEMENTS,ESTIMATES AND ASSUMPTIONS

â¢ Useful lives of property, plant and equipmentand Intangible assets

â¢ Taxes

â¢ Defined benefit plans (gratuity benefits)

â¢ Discounts, rebates and sales returns

14. BORROWINGS (Contd.)

Details of terms and securities for the aboveborrowing facilities are as follows:

B. Fair value measurements

39. THE CODE ON SOCIAL SECURITY 2020

40. OTHER STATUTORY INFORMATION:

46. EVENTS AFTER THE REPORTING PERIOD

12.5 Terms/rights attached to equity shares

12.6 Issue of Shares Under Bonus shares

Nature & Purpose of Reserves

Details of terms and securities for the above borrowing facilities are as follows:

28. EARNINGS PER SHARE (EPS)

30.2 Other Long-term employee benefits

31. RELATED PARTY DISCLOSURES:

March 31, 2024

31.1 Name of related parties and their relationship

34. SEGMENT REPORTING

(B) Credit risk

Trade Receivables

(C) Liquidity risk

37. CAPITAL MANAGEMENT

N) Provisions, Contingent Liabilities and Contingent

Assets

Provisions

Contingent liabilities and Contingent Assets

O) Earning Per Share

P) Leases

Q) Current and non-current classification

R) Fair value measurement

S) Financial instruments

a. Financial assets:

Initial recognition and measurement

Subsequent measurement

Derecognition

Investment in associates, joint venture and subsidiaries

Impairment of financial assets

Expected credit losses are measured through a loss allowance at an amount equal to

The Company follows âsimplified approachâ for recognition of impairment loss allowance on

b. Financial liabilities:

Initial recognition and measurement

Subsequent measurement

Financial liabilities at fair value through profit or loss

Loans and borrowings

Financial guarantee contracts

Derecognition

(xiii) Provisions, Contingent Liabilities and
Contingent Assets

Financial assets measured as at amortised cost and
contractual revenue receivables

(xx) New accounting standards, amendments
and interpretations adopted by the Company
effective from April 1, 2024:

Amendments to Ind AS 116-Lease liability in a sale
and leaseback:

1D. SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

â¢ Useful lives of property, plant and equipment
and Intangible assets

â¢ Taxes

â¢ Defined benefit plans (gratuity benefits)

â¢ Discounts, rebates and sales returns

Details of terms and securities for the above
borrowing facilities are as follows:

The Company follows âsimplified approachâ for recognition of impairment loss allowance on