Notes to Accounts of HLE Glascoat Ltd.

Mar 31, 2025

7) Provisions, Contingent Liabilities and Contingent
Assets:

Provisions are recognized when there is a present legal or
constructive obligation as a result of a past event and it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed on the basis of judgment
of management / independent experts. These are reviewed
at each balance sheet date and are adjusted to reflect the
current management estimate.

Provisions for warranty-related costs are recognized when
the product is sold to the customer. Initial recognition is
based on scientific basis as per past trends of such claims. The
initial estimate of warranty-related costs is revised annually.

8) Foreign Currency Transactions:

The financial statements of the Company are presented in
INR, which is also the functional currency (i.e. the currency
of the primary economic environment in which the Company
operates). In preparing the financial statements, transactions
in currencies other than the entity’s functional currency are
recognized at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period,

monetary items denominated in foreign currencies are
translated at the rates prevailing at that date. Non-monetary
items denominated in foreign currency are reported at the
exchange rate ruling on the date of transaction.

9) Cash Flows and Cash and Cash Equivalents:

Statement of cash flows is prepared in accordance with
the indirect method prescribed in the relevant IND AS.
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
cheques and drafts on hand, deposits held with Banks with
original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. However, Bank
overdrafts are to be shown within borrowings in current
liabilities in the balance sheet for the purpose of presentation.

10) Revenue Recognition:

The Company derives revenues primarily from sale of goods
comprising of (i) Glass Lined Equipment- Manufacturing of
Carbon Steel Glass Lined Equipment viz. reactors, receivers,
storage tanks, columns, agitators, valves, pipes and fittings
and other similar equipment and related spares and
accessories and (ii) Filtration, Drying and Other Equipment
- Manufacturing of Agitated Filters and Dryers, Rotary
Vacuum Paddle Dryers, other Chemical Process Equipment
and related spares and accessories.

Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price allocated to
that performance obligation. The transaction price of goods
sold and services rendered is net of variable consideration
on account of delayed delivery of goods /product discounts
and schemes offered by the company as part of the contract
with the customers. The Company recognises changes in the
estimated amounts of obligations for discounts in the period
in which the change occurs. Revenue also excludes taxes
collected from customers.

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when
payment is being made.

Revenue from contract with customers is recognized upon
transfer of control of promised products or services to
customers in an amount that reflects the consideration

the Company expects to receive in exchange for those
products or services.

Revenue from the sale of goods is recognized at the point in
time when control is transferred to the customer.

Revenue from sale of services is recognised when the
activity is performed.

Revenue in excess of invoicing are classified as contract
assets while invoicing in excess of revenues are classified as
contract liabilities.

Use of significant judgements in revenue recognition.

• Judgement is also required to determine the transaction
price for the contract. The transaction price could
be either a fixed amount of consideration or variable
consideration with elements such as delayed delivery
of goods/ product discounts. Any consideration
payable to the customer is adjusted to the transaction
price, unless it is a payment for a distinct product or
service from the customer. The estimated amount of
variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue
recognized will not occur and is reassessed at the end
of each reporting period. Some contracts for the sale of
goods provide customers with a right of return.

• Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. The transaction price of
goods sold and services rendered is net of variable
consideration on account of product discounts and
schemes offered by the company as part of the contract
with the customers. The Company recognizes changes
in the estimated amounts of obligations for discounts in
the period in which the change occurs.

11) Employee Benefits:

a) Short-term Employee Benefits:

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

measured at undiscounted amount expected to be paid
when the liabilities are settled.

b) Long-Term Employee Benefits:

The cost of providing long-term employee benefits
such as earned leave is measured as the present value
of expected future payments to be made in respect of
services provided by employees upto the end of the
reporting period. The expected costs of the benefit
are accrued over the period of employment using the
same methodology as used for defined benefits post¬
employment plans. Actuarial gains and losses arising
from the experience adjustments and changes in
actuarial assumptions are charged or credited to profit
or loss section of the Statement of Profit or Loss in the
period in which they arise except those included in the
cost of assets as permitted. The benefit is measured
annually by independent actuary.

c) Post-Employment Benefits:

The Company provides the following post¬
employment benefits:

i) Defined benefit plan i.e., gratuity

ii) Defined contributions plan i.e., provident fund.

d) Defined benefits Plans:

The cost of providing benefits on account of gratuity
obligations is determined using the projected unit credit
method on the basis of actuarial valuation made at the
end of each balance sheet date.

Re-measurements comprising of actuarial gains
and losses arising from experience adjustments and
change in actuarial assumptions, the effect of change
in assets ceiling (if applicable) and the return on plan
assets (excluding net interest as defined above) are
recognized in other comprehensive income (OCI)
except those included in cost of assets as permitted in
the period in which they occur. Re-measurements are
not reclassified to the Statement of Profit and Loss in
subsequent periods.

e) Defined Contribution Plans

Payments to defined contribution retirement benefit
plans, viz., Provident Fund are recognized as an expense
when employees have rendered the service entitling
them to the contribution.

12) Taxes on Income:

Income tax expense represents the sum of income tax
currently payable and deferred tax. Tax is recognized in the
profit or loss section of the Statement of Profit and Loss,
except to the extent that it relates to items recognized
directly in equity or in other comprehensive income.

a) Current Tax:

Current tax is the expected tax payable/ receivable on
the taxable income/ loss for the year using applicable
tax rates for the relevant period, and any adjustment
to taxes in respect of previous years. Tax on Income for
the current year is determined on the basis of estimated
taxable income and tax credits computed in accordance
with the provisions of the relevant tax laws and based on
the expected outcome of assessments/appeals.

b) Deferred Tax:

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the balance sheet and the corresponding tax bases
used in the computation of taxable profit. Deferred
tax liabilities are recognized for all taxable temporary
differences. Deferred tax assets are recognized for all
tax-deductible temporary differences, unabsorbed
losses and unabsorbed depreciation to the extent that
it is probable that future taxable profits will be available
against which these deductible temporary differences,
unabsorbed losses and unabsorbed depreciation
can be utilized.

13) Earnings per Share:

Basic earnings per share are calculated by dividing the total
profit attributable to equity shareholders of the Company by
the weighted average number of equities shares outstanding
during the year. Basic earnings per share are calculated
separately for both continuing and discontinuing operations.

14) Financial Instruments:
a) Financial Assets

A financial asset inter-alia includes any asset that is cash,
equity instrument of another entity or contractual rights
to receive cash or another financial asset or to exchange
financial asset or financial liability under conditions that
are potentially favorable to the Company.

Investments in subsidiaries

Investments in subsidiaries are carried at cost.

Financial assets other than investment in
subsidiaries

Financial assets of the Company comprise trade
receivable, cash and cash equivalents, Bank
balances, loans/advances to employees/ others,
security deposit, etc.

Initial recognition and measurement

All financial assets are recognised 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. However, Trade receivables that do not contain
a significant financing component are measured at
Transaction Price. Transaction costs of financial assets
carried at fair value through profit or loss are expensed
in Profit or Loss.

Subsequent measurement

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

• Financial assets measured at amortized cost

• Financial assets at fair value through OCI

• Financial assets at fair value through profit or loss

Financial assets measured at amortized cost

Financial assets are measured at amortized cost if the
financials asset is held within a business model whose
objective is to hold financial assets in order to collect
contractual cash flows 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. These financials assets
are amortized using the effective interest rate (EIR)
method, less impairment. Amortized cost is calculated
by considering any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The
EIR amortization is included in finance income in the
statement of profit or loss.

Financial assets at fair value through OCI (FVTOCI)

Financial assets are mandatorily measured at fair value
through other comprehensive income if the financial
asset 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. At initial recognition,
an irrevocable election is made (on an instrument-by¬
instrument basis) to designate investments in equity
instruments other than held for trading purposes at
FVTOCI. Fair value changes are recognized in the
other comprehensive income (OCI). On derecognition
of the financial assets other than equity instruments,
cumulative gain or loss previously recognized in OCI is
reclassified to Profit or Loss.

Financial assets at fair value through profit or loss
(FVTPL)

Any financial asset that does not meet the criteria for
classification as at amortized cost or as financial assets
at fair value through other comprehensive income,
is classified as financial assets at fair value through
profit or loss.

Derecognition

The Company derecognies a financial asset only when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of
the asset to another entity.

Impairment of financial assets

The Company assesses impairment based on expected
credit loss (ECL) model on the following:

• Financial assets that are measured at amortized cost.

• Financial assets (excluding equity instruments)
measured at fair value through other comprehensive
income (FVTOCI).

ECL is measured through a loss allowance on
the following basis after considering the value of
recoverable security:

• The 12 months expected credit losses (expected
credit losses that result from those default events
on the financial instruments that are possible within
12 months after the reporting date)

• Full lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of financial instruments)

The Company follows ‘simplified approach’ for
recognition of impairment on trade receivables
or contract assets resulting from normal business
transactions. It recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, from the
date of initial recognition.

For recognition of impairment loss on other financial
assets, the Company determines whether there has
been a significant increase in the credit risk since
its initial recognition. If credit risk has increased
significantly, lifetime ECL is provided. For assessing
increase in credit risk and impairment loss, the Company
assesses the credit risk characteristics on instrument-
by-instrument basis.

Impairment loss allowance (or reversal) recognized
during the period is recognized as expense/income in
profit or loss.

b) Financial Liabilities

The Company’s financial liabilities include loans and
borrowings, trade payable, accrued expenses and
other payables.

Initial recognition and measurement

All financial liabilities at initial recognition are
classified as financial liabilities at amortized cost or
financial liabilities at fair value through profit or loss,
as appropriate. 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.

Financial Liabilities classified as Amortised Cost:

All Financial Liabilities other than derivatives are
measured at amortised cost at the end of subsequent
accounting periods. Interest expense that is not

capitalised as part of costs of assets is included as
Finance costs in Profit or Loss.

Derecognition

A financial liability is derecognized when the obligation
under the liability is discharged / cancelled / expired.
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 recognized in of
profit or loss.

15) Recent Ind AS and other pronouncements:

Ministry of Corporate Affairs (‘MCA’) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has not notified any new standards
or amendments to the existing standards applicable
to the Company.

Footnotes:

(i) The amount of rental income from the investment property during the year ended March 31, 2025: '' 18.72 lakhs (Previous
Year '' 18.72 lakhs)

(ii) The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance
and enhancements. There is no restrictions on the realisability of investment properties or the remittance of income and proceeds
of disposal on the Company.

(iii) The fair value of investment property as on March 31, 2025 has been determined by external independent registered valuers as
defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional
qualification and recent experience in the location and category of the property being valued.

(iv) The fair value measurement for all the investments properties has been categorised as Level 2 based on the inputs to the valuation
technique used. Considering the type of the assets, “Market approach" to estimate the fair value of the subject properties is adopted.

(v) The fair value of investment property as at March 31, 2025: '' 142.00 lakhs (Previous year '' 121.90 lakhs)

Footnotes:

(i) Details of country of incorporation and % controlling interest have been disclosed in note no. 1(B)(ii) of the consolidated financial
statements for the year ended March 31, 2025.

(ii) The Company has completed the acquisition of 35.56% profit share with a controlling interest in Kinam Engineering Industries
(the “Firm") on September 26, 2023 for the purchase consideration of '' 7,996.66 lakhs in cash. The partners of the Firm agreed for
the succession of the business of the Firm into a Company. The business of the Firm was succeeded into a Company named Kinam
Engineering Industries Private Limited effective January 1, 2024. All the partners of the Firm received shares in this Company in
the proportion of their profit share in the Firm. The partners have agreed to dissolve / wind up the affairs of the Firm and terminate
the partnership deed effective from November 11, 2024.

(ii) General reserve

The general reserve represents amounts appropriated out of retained earnings based on the provisions of The Companies Act
prior to its amendment.

(iii) Capital reserve

Amount pertaining to forfeiture of shares

(iv) Retained earnings

Retained earnings represents net profits after distributions and transfers to other reserves.

(v) Remeasurements of defined benefit plans

Gains / Losses arising on remeasurements of defined benefit plans are recognized in the other comprehensive Income as per IND
AS-19 and shall not be reclassified to the statement of profit or loss in the subsequent years.

(vi) Capital redemption reserve

Capital redemption reserve is created by the company for redemption of preference share from its profits.

(vii) Equity component of compound financial interest

The component parts of compound financial instruments issued by the Company are classified as financial liabilities and equity
in accordance with the substance of the contractual arrangements and the definitions of financial liability and equity instrument.
Financial Liabilities are recognised at fair value net of directly attributable transaction costs and subsequently measured at
amortised cost using effective interest method.

(viii) Preference share capital

Current year Nil (Previous year 18,75,152 Nos.) 9.50% redeemable preference shares of '' Nil (Previous year '' 2/- each)

Non-Current Borrowings

1) Term Loan(s) from Bajaj Finance Limited are secured by mortgage of certain immovable property(ies) owned by the Promoters.
The Term Loans are repayable in 76 and 79 quarterly instalments commencing from November, 2017 and May, 2018 respectively
and carries an interest of 11.70% p.a. (March 31, 2024: 11.70% p.a.) payable monthly. This term loan is repaid in full and closed
during the year 2024-25.

During the year the Company has availed a fresh term loan from Bajaj Finance Limited, which is secured by first pari passu charge
on the entire present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire
present and future current assets of Company. The Term Loan is repayable in 66 equal monthly instalments commencing from
October 2025 and carries an interest of 9.25% p.a. (March 31, 2024: Nil) payable monthly.

2) Term Loan from HDFC Bank Limited is secured by first pari passu charge on the entire present and future movable (plant and
machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current
assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company.
The Term Loan is repayable in 63 unequal monthly instalments commencing from November 2022 and carries an interest of 9.59%
p.a. (March 31, 2024: 9.90% p.a.) payable monthly.

3) Term Loan from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery)
and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz.
stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term
Loan is repayable in 16 equal quarterly instalments commencing from June, 2022 and October, 2022 and carries an interest of
11.68% p.a. (March 31, 2024: 11.68% p.a) payable monthly.

4) Term Loan (foreign currency loan) from Citibank N.A. is secured by first pari passu charge on the entire present and future movable
(plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future
current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the
Company. The Term Loan is repayable in 16 equal quarterly instalments commencing from March, 2023 and carries an interest of
8.30% p.a. (March 31, 2024: 8.30% p.a.) payable monthly.

5) Term Loan(s) from State Bank of India are secured by first pari passu charge on the entire present and future movable (plant
and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future
current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the
Company. The Term Loans are repayable in 48 equal monthly instalments commencing from October, 2019 respectively and
carries an interest of 9.80% p.a. (March 31, 2024: 9.80% p.a.) payable monthly. This term loan is repaid in full and closed during the
financial year 2024-25.

6) Term Loan from ICICI Bank is secured by first pari passu charge on the entire present and future movable (plant and machinery)
and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz.
stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term
Loan is repayable in 48 equal monthly instalments commencing from March 2024 and carries an interest of 9.37% p.a. (March 31,
2024: 9.37%) payable monthly.

7) Term Loan from Axis Finance Limited is secured by first pari passu charge on the entire present and future movable and immovable
fixed assets of the Company and second pari passu charge on the entire present and future current assets of Company. The Term
Loan is repayable in 53 equal monthly instalments commencing from October 2024 and carries an interest of 10.15% p.a. (March
31, 2024: 10.05% p.a.) payable monthly.

8) Vehicle Loans availed from HDFC Bank are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable
in equal monthly instalments from the month subsequent to the disbursement of the loan. Interest is payable on monthly basis and
ranges from 6.25% p.a to 10.00% p.a. (March 31, 2024: 6.25% p.a to 10.00% p.a.)

Current Borrowings

1) Working capital facilities including packing credit and foreign bill discounting from HDFC Bank Limited are secured by first
pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 8.43% p.a. (March
31, 2024: 9.00% p.a.) and for other facilities is SOFR plus 250 bps [March 31, 2024: SOFR plus 250 bps].

2) Working capital facilities including packing credit and foreign bill discounting from Citibank N.A. are secured by first pari passu
charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable
stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable
(plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 10.00% p.a. (March 31,
2024: 10.00% p.a.)

3) Working capital facilities including packing credit and foreign bill discounting from ICICI Bank Limited are secured by first
pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.25% p.a. (March
31, 2024: 9.28% p.a.)

4) Working capital loan facilities including packing credit and foreign bill discounting from State Bank of India are secured by secured
first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of Interest for cash credit is 9.35% p.a. (March
31, 2024: 9.35% p.a.). This facility is repaid and closed during the financial year 2024-25.

5) Purchase Bill Discounting/ Short Term Revolving Loan facility from Bajaj Finance Limited are secured by mortgage of certain
immovable property owned by the Promoters and carries an interest of 8.70% p.a. (March 31, 2024: 9.35% p.a.) payable monthly.

6) The quarterly statement of stock and book debt filed by the Company with the banks are in agreement with the books of account
with no material discrepancies.

List of immovable properties of the Company is as under:

(i) Plot No A/6, R.S. No 153, New Block No 140, Maroli to Ubhrat Road, Village Nanod, Maroli, Navsari.

(ii) Plot No 200, Village Nadod, Navsari, Block B-3, Navsari.

(iii) Block No. 200 Paiky, Plot No. B/1/4, Maroli to Ubhrat Road, Village Nanod, Maroli, Navsari.

(iv) Survey No-183/P1, Village Naroli, Silvassa.

(v) Plot No. H 106, R S No. 1425/P, 1435/P, 1431/P, 1416/P and 1424/P, Vitthal Udyognagar I ndustrial Area, Village Mogri, Taluka
Anand, District Kheda.

(vi) Plot No. I 107, 107/A and I-105, Revenue Survey No. 808/P, 809/P, 811/P, R S No. 426/P, 1427/P, 1428/P, 1429/P and 1430/P,
Village Mogri, Taluka Anand, District Kheda.

B. FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities comprises of borrowings, trade payables and other payables. The main purpose of
these financial liabilities is to finance the operations of the Company. The principal financial assets includes trade receivables, other
receivables and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

(a) Market risk

Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument,
as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks,
primarily includes loans, borrowings, foreign currency receivables and payables.

i) Interest rate risks

Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates.

The Company’s interest rate risk arises from borrowings. Borrowings issued at fixed rates are exposed to fair value interest
rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported by the management of
the Company is as follows:

Fair value sensitivity analysis for floating-rate instruments

The Company accounts for floating-rate financial assets or financial liabilities at fair value through profit or loss.

If the interest rates had been 1% higher / lower and all other variables held constant, the company’s profit for the year ended
March 31, 2025 would have been decreased / increased by '' 255.82 lakhs (Previous Year '' 220.89 lakhs)

ii) Commodity Price Risks

The Company is affected by price stability of certain commodity due to significantly increased volatility of certain commodities,
the Company has entered into contracts with the customers that has provision to pass on the change in raw material prices. The
Company has risk management framework aimed at prudently managing the risk arising from volatility in commodity prices.

(b) Credit Risk Management:

It is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises
from cash and cash equivalents, investments as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a
low credit risk.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
also has an external credit risk insurance cover with ECGC Policy. The Company uses Expected Credit Loss (ECL) Model to
assess the impairment loss or gain.

(c) Liquidity Risk Management:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is
responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks
are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts based
on expected cash flows.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

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

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction
between willing parties.

The following methods and assumptions were used to estimate the fair value.

1. Non current financial assets / liabilities measured at amortised cost.

2. The Company enters into Derivative financial instruments with counterparties principally with Banks with investment grade
credit ratings. The Interest Rate swaps is valued using valuation techniques which employs the use of market observable
inputs namely, Marked-to-Market.

d) Other statutory information.

(i) The Company does not have any Benami property nor any proceeding has been initiated or pending against the Company for
holding any Benami property.

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or

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

(vii) The Company has not recorded any transaction 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 defaulter by any bank or financial institution or any of the lenders.

e) Exceptional item represents transaction cost related to acquisition of a subsidiary during previous year.

f) Disclosures as per Ind AS - 19 - Employee benefits

The Company make contributions towards provident fund, in substance a defined contribution retirement plan to the Regional
Provident Fund Commissioner for qualifying employees.

The Company make annual contributions to the Employees’ Gratuity Trust, for funding the defined benefit plans for
qualifying employees.

vi) Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below :

(a) Interest Rate Risk: While calculating the defined benefit obligation a discount rate based on government bonds yields
of matching tenure is used to arrive at the present value of future obligations. If the bond yield falls, the defined benefit
obligation will tend to increase and plan assets will decrease.

(b) Salary Risk: Higher than expected increases in salarywill increase the defined benefitobligation.

(c) Investment Risk: Iffuture investment returns on assets are lowerthan assumed in valuation, the scheme’s assetswill be
lower, and the funding level higher than expected.

k) Commitment

(i) Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided for '' Nil
(Previous year '' 1,132.28 lakhs)

(ii) Letters of credit issued by the banks is '' 419.47 lakhs (Previous Year '' Nil)

l) Contingent liabilities not provided for:

(i) Claims not acknowledged as debts:

(a) Disputed Service Tax for the period from 2008 to 2013 is '' 16.47 lakhs (Previous Year '' 16.47 lakhs) pending before
CESTAT, against which the Company has made payment of '' 5.19 lakhs(Previous Year '' 5.19 lakhs).

(b) Disputed Service Tax for the period from 2012 to 2015 is '' 29.07 lakhs (Previous Year '' 29.07 lakhs) pending before
CESTAT, against which the Company has made payment of '' 5.09 lakhs(Previous Year '' 5.09 lakhs).

(c) Disputed Service Tax for the period from 2013 to 2017 is '' 22.92 lakhs (Previous Year '' 22.92 lakhs) pending before
CESTAT, against which the Company has made payment of '' 4.01 lakhs(Previous Year '' 4.01 lakhs).

(ii) Corporate guarantee provided by the Company to third parties on behalf of subsidiary is '' 2,100 lakhs (Previous year '' Nil)

m) Discontinued operations:

(i) Description of discontinued operations:

(a) The Company had chemical manufacturing operations at Plot No.B-1,B-3,B-4 & A-7, Maroli Udyognagar, Maroli, Navsari,
Gujarat for manufacture of chemical product.

The Company had passed a circular resolution dated May 22, 2020for discontinuing of its chemical unit operations at Maroli.

(b) The Company started disposing of its Assets in the year 2020-21 and completed the process on March 31, 2024.

(ii) Business or geographical segment:

The Discontinued Unit was engaged in the business of chemicals and had business establishment only in India.

(iii) The amount of revenue and expenses in respect of the ordinary activities attributable to the discontinued operations
during the current financial reporting year are as under :

o) Corporate Social Responsibility

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 eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and
rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by
the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule
VII of the Companies Act, 2013:

p) In terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, if financial statement contains both the consolidated financial
statements and standalone financial statements, no separate disclosure on segment information is required to be given in the
standalone financial statements. Accordingly, segment information has been disclosed in the consolidated financial statements
of the Company.

q) Subsequent events post balance sheet

i) The Board of directors has recommended a dividend @ 55% ('' 1.10) per equity share at its meeting held on May 19, 2025
which is subject to approval of shareholders.

r) Previous year’s figures have been regrouped and/or rearranged, wherever considered necessary.

As per our report of even date attached For and on behalf of the board

For M M Nissim & Co LLP Himanshu Patel Aalap Patel

Chartered Accountants Managing Director Director

Reg. No. 107122W / W100672 DIN - 00202312 DIN - 06858672

Hiren P Muni Achal Thakkar Naveen Kandpal

Partner Company Secretary Chief Financial Officer

Membership No. 142067 ACS 30459 ACA 406038

Anand, Dated May 19, 2025 Anand, Dated May 19, 2025

---

Mar 31, 2024

7) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized when there is a present legal or constructive obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed on the basis of judgment of management / independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

Provisions for warranty-related costs are recognized when the product is sold to the customer. Initial recognition is based on scientific basis as per past trends of such claims. The initial estimate of warranty-related costs is revised annually.

8) Foreign Currency Transactions:

The financial statements of the Company are presented in INR, which is also the functional currency (i.e. the currency of the primary economic environment in which the Company operates). In preparing the financial statements, transactions in currencies other than the entity''s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items denominated in foreign currency are reported at the exchange rate ruling on the date of transaction.

9) Cash Flows and Cash and Cash Equivalents:

Statement of cash flows is prepared in accordance with the indirect method prescribed in the relevant IND AS. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks with original maturities of three months or less that are readily

convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. However, Bank overdrafts are to be shown within borrowings in current liabilities in the balance sheet for the purpose of presentation.

10) Revenue Recognition:

The Company derives revenues primarily from sale of goods comprising of (i) Glass Lined Equipment- Manufacturing of Carbon Steel Glass Lined Equipment viz. reactors, receivers, storage tanks, columns, agitators, valves, pipes and fittings and other similar equipment and related spares and accessories and (ii) Filtration, Drying and Other Equipment - Manufacturing of Agitated Filters and Dryers, Rotary Vacuum Paddle Dryers, other Chemical Process Equipment and related spares and accessories.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of delayed delivery of goods /product discounts and schemes offered by the company as part of the contract with the customers. The Company recognises changes in the estimated amounts of obligations for discounts in the period in which the change occurs. Revenue also excludes taxes collected from customers.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when payment is being made.

Revenue from contract with customers is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

Revenue from the sale of goods is recognized at the point in time when control is transferred to the customer.

Revenue from sale of services is recognised when the activity is performed.

Revenue in excess of invoicing are classified as contract assets while invoicing in excess of revenues are classified as contract liabilities.

Use of significant judgements in revenue recognition.

• Judgement is also required to determine the transaction price for the contract. The transaction price could be either a fixed amount of consideration or variable consideration with elements such as delayed delivery of goods/ product discounts. Any consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and is reassessed at the end of each reporting period. Some contracts for the sale of goods provide customers with a right of return.

• Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of product discounts and schemes offered by the company as part of the contract with the customers. The Company recognizes changes in the estimated amounts of obligations for discounts in the period in which the change occurs.

11) Employee Benefits:

a) Short-term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering services are classified as short-term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., are recognized during the period in which the employee renders related services and are measured at undiscounted amount expected to be paid when the liabilities are settled.

b) Long-Term Employee Benefits:

The cost of providing long-term employee benefit such as earned leave is measured as the present value of expected future payments to be made in respect of services provided by employees upto the end of the reporting period. The expected costs of the benefit is accrued over the period of employment using the same methodology as used for defined benefits postemployment plans. Actuarial gains and losses arising from the experience adjustments and changes in

actuarial assumptions are charged or credited to profit or loss section of the Statement of Profit or Loss in the period in which they arise except those included in cost of assets as permitted. The benefit is measured annually by independent actuary.

c) Post-Employment Benefits:

The Company provides the following postemployment benefits:

i) Defined benefit plan i.e., gratuity

ii) Defined contributions plan i.e., provident fund.

d) Defined benefits Plans:

The cost of providing benefits on account of gratuity obligations are determined using the projected unit credit method on the basis of actuarial valuation made at the end of each balance sheet date.

Re-measurements comprising of actuarial gains and losses arising from experience adjustments and change in actuarial assumptions, the effect of change in assets ceiling (if applicable) and the return on plan asset (excluding net interest as defined above) are recognized in other comprehensive income (OCI) except those included in cost of assets as permitted in the period in which they occur. Re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

e) Defined Contribution Plans

Payments to defined contribution retirement benefit plans, viz., Provident Fund are recognized as an expense when employees have rendered the service entitling them to the contribution.

12) Taxes on Income:

Income tax expense represents the sum of income tax currently payable and deferred tax. Tax is recognized in the profit or loss section of the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

a) Current Tax:

Current tax is the expected tax payable/ receivable on the taxable income/ loss for the year using applicable tax rates for the relevant period, and any adjustment to

taxes in respect of previous years. Tax on Income for the current year is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/appeals.

b) Deferred Tax:

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all tax deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent that it is probable that future taxable profits will be available against which these deductible temporary differences, unabsorbed losses and unabsorbed depreciation can be utilized.

13) Earnings per Share:

Basic earnings per share are calculated by dividing the total profit attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. Basic earnings per share are calculated separately for both continuing and discontinuing operations.

14) Financial Instruments:

a) Financial Assets

A financial asset inter-alia includes any asset that is cash, equity instrument of another entity or contractual rights to receive cash or another financial asset or to exchange financial asset or financial liability under condition that are potentially favorable to the Company.

Investments in subsidiaries

Investments in subsidiaries are carried at cost.

Financial assets other than investment in subsidiaries

Financial assets of the Company comprise trade receivable, cash and cash equivalents, Bank balances, loans/advances to employee/ others, security deposit, etc.

Initial recognition and measurement

All financial assets are recognised 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. However, Trade receivables that do not contain a significant financing component are measured at Transaction Price. Transaction costs of financial assets carried at fair value through profit or loss are expensed in Profit or Loss.

Subsequent measurement

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

• Financial assets measured at amortized cost

• Financial assets at fair value through OCI

• Financial assets at fair value through profit or loss

Financial assets measured at amortized cost

Financial assets are measured at amortized cost if the financials asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows 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. These financials assets are amortized using the effective interest rate (EIR) method, less impairment. 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 in finance income in the statement of profit or loss.

Financial assets at fair value through OCI (FVTOCI)

Financial assets are mandatorily measured at fair value through other comprehensive income if the financial asset 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. At initial recognition, an irrevocable election is made (on an instrument-byinstrument basis) to designate investments in equity

instruments other than held for trading purpose at FVTOCI. Fair value changes are recognized in the other comprehensive income (OCI). On derecognition of the financial asset other than equity instruments, cumulative gain or loss previously recognized in OCI is reclassified to Profit or Loss.

Financial assets at fair value through profit or loss (FVTPL)

Any financial asset that does not meet the criteria for classification as at amortized cost or as financial assets at fair value through other comprehensive income, is classified as financial assets at fair value through profit or loss.

Derecognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

Impairment of financial assets

The Company assesses impairment based on expected credit loss (ECL) model on the following:

• Financial assets that are measured at amortized cost.

• Financial assets (excluding equity instruments) measured at fair value through other comprehensive income (FVTOCI).

ECL is measured through a loss allowance on a following basis after considering the value of recoverable security:

• The 12 month expected credit losses (expected credit losses that result from those default events on the financial instruments that are possible within 12 months after the reporting date)

• Full life time expected credit losses (expected credit losses that result from all possible default events over the life of financial instruments)

The Company follows ''simplified approach'' for recognition of impairment on trade receivables or contract assets resulting from normal business transactions. It recognizes impairment loss allowance

based on lifetime ECLs at each reporting date, from the date of initial recognition.

For recognition of impairment loss on other financial assets, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has increased significantly, lifetime ECL is provided. For assessing increase in credit risk and impairment loss, the Company assesses the credit risk characteristics on instrument-byinstrument basis.

Impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in profit or loss.

b) Financial Liabilities

The Company''s financial liabilities include loans and borrowings, trade payable, accrued expenses and other payables.

Initial recognition and measurement

All financial liabilities at initial recognition are classified as financial liabilities at amortized cost or financial liabilities at fair value through profit or loss, as appropriate. 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.

Financial Liabilities classified as Amortised Cost:

All Financial Liabilities other than derivatives are measured at amortised cost at the end of subsequent accounting periods. Interest expense that is not capitalised as part of costs of assets is included as Finance costs in Profit or Loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged / cancelled / expired. 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 de recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in of profit or loss.

15) Segment Reporting:

The Company identifies segments as operating segments whose operating results are regularly reviewed by the Management to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment assets include all operating assets used by the business segments and consist of property plant and equipment, intangible assets, debtors and inventories. Segment liabilities include the operating liabilities that result from operating activities of the business segment. Assets and

Liabilities that cannot be allocated between the segments are shown as part of unallocated corporate assets and liabilities, respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated corporate income / expenses.

16) Recent Accounting Pronouncements :

Ministry of Corporate Affairs (''MCA'') notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Non-Current Borrowings

1. Term Loan(s) from Bajaj Finance Limited are secured by mortgage of certain immovable property(ies) owned by the Promoters. The Term Loans are repayable in 76 and 79 quarterly instalments commencing from November, 2017 and May, 2018 respectively and carries an interest of 11.70% p.a. (March 31, 2023: 11.60% p.a.) payable monthly.

2) Term Loan from HDFC Bank Limited is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 72 equal monthly instalments commencing from September, 2022 and carries an interest of 9.90% p.a. (March 31, 2023: 8.40% p.a.) payable monthly.

3) Term Loan from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 16 equal quarterly instalments from April, 2022 and carries an interest of 11.68% p.a. (March 31, 2023: 8.25% p.a) payable monthly.

4) Term Loan (foreign currency loan) from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 16 equal quarterly instalments commencing from March, 2023 and carries an interest of 8.30% p.a. (March 31, 2023: 2.50% p.a.) payable monthly.

5) Term Loan(s) from State Bank of India are secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future

current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loans are repayable in 78 and 48 equal monthly instalments commencing from October, 2019 and October, 2020 respectively and carries an interest of 9.80% p.a. and 10.05% p.a. (March 31, 2023: 9.80% p.a. and 10.05% p.a.) respectively payable monthly.

6) Term Loan from ICICI Bank is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 48 equal monthly instalments commencing from March 2024 and carries an interest of 9.15 % p.a. (March 31, 2023: 9.15%) payable monthly.

7) Term Loan from Axis Finance Ltd. is secured by first pari passu charge on the entire present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets of Company. The Term Loan is repayable in 72 unequal monthly instalments commencing from March 2024 and carries an interest of 9.85 % p.a. (March 31, 2023: Nil) payable monthly.

8) Vehicle Loans availed from HDFC Bank are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable in equal monthly instalments from the month subsequent to the disbursement of the loan. Interest is payable on monthly basis and ranges from 6.25% p.a to 10.00% p.a. (March 31, 2023: 6.25% p.a to 10.00% p.a.)

Current Borrowings

1) Working capital facilities including packing credit and foreign bill discounting from HDFC Bank Limited are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.00% p.a. [March 31, 2023: 9.43% p.a.] and for other facilities is SOFR plus 250 bps [March 31, 2023: SOFR plus 250 bps].

2) Working capital facilities including packing credit and foreign bill discounting from Citibank N.A. are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 10.00% p.a. [March 31, 2023: 9.25% p.a.]

3) Working capital facilities including packing credit and foreign bill discounting from ICICI Bank Limited are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.28% p.a. [March 31, 2023: 9.25% p.a.]

4) Working capital loan facilities including packing credit and foreign bill discounting from State Bank of India are secured by secured first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of Interest for cash credit is 9.35% p.a. [March 31, 2023: 7.95% p.a.]

5) Purchase Bill Discounting/ Short Term Revolving Loan facility from Bajaj Finance Limited are secured by mortgage of certain immovable property(ies) owned by the Promoters and carries an interest of 9.35% p.a. (March 31, 2023: 9.5% p.a.) payable monthly.

Note 27

A. CAPITAL MANAGEMENT

For the purpose of Company''s capital management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Shareholders of the Company. The primary objective of the Company''s Capital Management is to maximise the Shareholder''s Value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and requirements of the financial covenants and to continue as a going concern. The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and short term deposit.

B. FINANCIAL RISK MANAGEMENT

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 operations of The Company. The principal financial assets include trade and other receivables and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities. a) Market risk

Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans , borrowings , foreign currency receivables and payables .

i) Interest rate risks

Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates are exposed to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported by the management of the Company is as follows:

Fair value sensitivity analysis for floating-rate instruments

The Company accounts for floating-rate financial assets or financial liabilities at fair value through profit or loss.

If the interest rates had been 1% higher / lower and all other variables held constant, the company''s profit for the year ended 31^st March, 2024 would have been decreased/increased by '' 220.89 lakhs (Previous Year '' 133.05 lakhs)

ii) Commodity Price Risks

The Company is affected by price stability of certain commodity due to significantly increase volatility of certain commodities , the Company has entered into contracts with the customers that has provision to pass on the change in raw material prices . The Company has risk management framework aimed at prudently managing the risk arising from volatility in commodity prices.

(b) Credit Risk Management :

It is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents, investments as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company also has an external credit risk insurance cover with ECGC Policy. The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

(c) Liquidity Risk Management :

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts based on expected cash flows.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

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

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair value.

1. Non current financial assets / liabilities measured at amortised cost.

2. The Company enters into Derivative financial instruments with counterparties principally with Banks with investment grade credit ratings. The Interest Rate swaps is valued using valuation techniques which employs the use of market observable inputs namely, Marked-to-Market.

c) Disclosure required by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; and section 186(4) of the Companies Act, 2013:

1. Amount of Loans and advances in the nature of loans outstanding from subsidiaries '' Nil (Previous Year '' Nil)

2. Loans to employees have been considered to be outside the purview of disclosure requirements.

3. Investment by Loanee in the shares of the Company- Not applicable (Previous Year Not applicable)

d) Other statutory information.

(i) The Company does not have any Benami property nor any proceeding has been initiated or pending against the Company for holding any Benami property.

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

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

(vii) The Company has not recorded any transaction 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 defaulter by any bank or financial institution or any of the lenders.

e) Exceptional item represents transaction cost related to acquisition of a subsidiary during the year.

f) Disclosures as per IND AS - 19 - employee benefits

The Company make contributions towards provident fund, in substance a defined contribution retirement plan to the Regional Provident Fund Commissioner for qualifying employees.

The Company make annual contributions to the Employees'' Gratuity Trust, for funding the defined benefit plans for qualifying employees.

Footnotes:

i) Remuneration does not include provisions made for Gratuity and Leave benefits amounting to '' 28.69 Lakhs (Previous year '' 21.69 Lakhs)

ii) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances other than unsecured loan at the year-end are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2023: '' Nil). This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

h) Segment Information

The operations of the Company are limited to two segment viz. (i) Filtration, Drying and Other Equipment (ii) Glass

Lined Equipment

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following

additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”

l) Commitment

(i) Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided for '' 1,132.28

lakhs (Previous Year '' 408.51 lakhs)

(ii) Letters of credit issued by the banks '' Nil lakhs (Previous Year '' 2,185.62 lakhs)

m) Contingent Liabilities not provided for:

(i) Claims not acknowledged as debts:

(a) Disputed Service Tax for the period 2008 to 2013 is '' 16.47 lakhs (Previous Year '' 16.47 lakhs) pending before CESTAT, against which the Company has made payment of '' 5.19 lakhs(Previous Year '' 5.19 lakhs).

(b) Disputed Service Tax for the period 2012 to 2015 is '' 29.07 lakhs (Previous Year '' 29.07 lakhs) pending before CESTAT, against which the Company has made payment of '' 5.09 lakhs(Previous Year '' 5.09 lakhs).

(c) Disputed Service Tax for the period 2013 to 2017 is '' 22.92 lakhs (Previous Year '' 22.92 lakhs) pending before CESTAT, against which the Company has made payment of '' 4.01 lakhs(Previous Year '' 4.01 lakhs).

(d) There is a pending litigation against the Company for compensation of loss of profit of '' 500.00 lakhs. The Court has decided the judgment in favour of the Company during the year.

p) Corporate Social Responsibility

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 eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

q) Subsequent events post balance sheet

i) The Board has recommended a dividend @ 55 % ('' 1.10 ) per equity share and declared a dividend @ 9.5 % ('' 0.19) per preference share at its meeting held on 27^th May 2024.

r) Previous period''s figures have been regrouped and/or rearranged, wherever considered necessary.

As per our report of even date attached For and on behalf of the board

For M M Nissim & Co LLP Himanshu Patel Aalap Patel

Chartered Accountants Managing Director Director

Reg. No. 107122W / W100672 DIN - 00202312 DIN - 06858672

N. Kashinath Achal Thakkar Naveen Kandpal

Partner Company Secretary Chief Financial Officer

Membership No. 036490 ACS 30459 ACA 406038

Silvassa, Dadra & Nagar Haveli, Dated May 27, 2024 Silvassa, Dadra & Nagar Haveli, Dated May 27, 2024

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Mar 31, 2023

The quarterly returns or statements filed by the Company for working capital limits with its bankers are in agreement with the books of account of the Company except for statements filed for quarters June, 2022 and September, 2022, where the variances were observed in the value of inventory between the amount reported as per the books of account for respective quarters and amount as reported in the quarterly statements. The stock reported to the Banks in these quarters was lower compared to the books (June 2022 quarter the value of inventory was reported lower by Rs. 2,075.98 lakhs and September 2022 quarter the value of inventory was reported lower by Rs. 2,341.48 lakhs) This was mainly due to the fact that value of inventory which was in transit, discontinued

operations inventory and difference due to valuation of inventory due to valuation as per accounting standard, which is normally

done at the time of limited review/ audit. Since the inventory value reported was lower the Company has not revised the stock

statement that it had already submitted.

Non-Current Borrowings

1. Term Loan(s) from Bajaj Finance Limited are secured by mortgage of certain immovable property(ies) owned by the Promoters. The Term Loans are repayable in 76 and 79 quarterly instalments commencing from November, 2017 and May, 2018 respectively and carries an interest of 11.60% p.a. (March 31, 2022: 10.75% p.a.) payable monthly.

2) Term Loan from HDFC Bank Limited is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 72 equal monthly instalments commencing from September, 2022 and carries an interest of 8.40% p.a. (March 31, 2022: 7.95% p.a.) payable monthly.

3) Term Loan from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 16 equal quarterly instalments from April, 2022 and carries an interest of 11.74% p.a. (March 31, 2022: 8.25% p.a) payable monthly.

4) Term Loan (foreign currency loan) from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 16 equal quarterly instalments commencing from March, 2023 and carries an interest of 2.50% p.a. (March 31, 2022: 2.50% p.a.) payable monthly.

5) Term Loan(s) from State Bank of India are secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loans are repayable in 78 and 48 equal monthly instalments commencing from October, 2019 and October, 2020 respectively and carries an interest of 9.80% p.a. and 10.05% p.a. (March 31, 2022: 9.80% p.a. and 10.05% p.a.) respectively payable monthly.

6) Term Loan from ICICI Bank is secured by first pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term Loan is repayable in 48 equal monthly instalments commencing from March 2024 and carries an interest of 9.15% p.a. (March 31, 2022: Nil) payable monthly.

7) Vehicle Loans availed from HDFC Bank are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable in equal monthly instalments from the month subsequent to the disbursement of the loan. Interest is payable on monthly basis and ranges from 6.25% p.a to 10.00% p.a. (March 31, 2022: 6.25% p.a to 10.00% p.a.)

Current Borrowings

1) Working capital facilities including packing credit and foreign bill discounting from HDFC Bank Limited are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.43% p.a. [March 31, 2022: 7.90% p.a.] and for other facilities is SOFR plus 250 bps [March 31, 2022: LIBOR plus 250 bps].

2) Working capital facilities including packing credit and foreign bill discounting from Citibank N.A. are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.25% p.a. [March 31, 2022: 9.25% p.a.]

3) Working capital facilities including packing credit and foreign bill discounting from ICICI Bank Limited are secured by first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.25% p.a. [March 31, 2022: 9.25% p.a.]

4) Working capital loan facilities including packing credit and foreign bill discounting from State Bank of India are secured by secured first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable (plant and machinery) and immovable fixed assets of the Company. The rate of Interest for cash credit is 7.95% p.a. [March 31, 2022: 7.95% p.a.]

5) The unsecured loans from related parties, in which directors are interested, are carrying interest @ 9.00% p.a., [March 31, 2022: 9.00% p.a.] and are repayable on demand.

A. CAPITAL MANAGEMENT

For the purpose of Company''s capital management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Shareholders of the Company. The primary objective of the Company''s Capital Management is to maximise the Shareholder''s Value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and requirements of the financial covenants and to continue as a going concern. The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and short term deposit.

B. FINANCIAL RISK MANAGEMENT

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 operations of The Company. The principal financial assets include trade and other receivables and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

a) Market risk

Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans , borrowings , foreign currency receivables and payables .

i) Interest rate risks

Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Fair value sensitivity analysis for floating-rate instruments

The Company does not account for any floating-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

ii) Commodity Price Risks

The Company is affected by price stability of certain commodity due to significantly increase volatility of certain commodities , the Company has entered into contracts with the customers that has provision to pass on the change in raw material prices. The Company has risk management framework aimed at prudently managing the risk arising from volatility in commodity prices.

(b) Credit Risk Management

It is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents, investments as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company also has an external credit risk insurance cover with ECGC Policy. The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

(c) Liquidity Risk Management

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts based on expected cash flows.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

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

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair value.

1. The Fair values of Mutual Funds and Quoted Equities are based on NAV / Quoted Price at the reporting date.

2. Non current financial assets / liabilities measured at amortised cost - Discounted cash flow technique : The valuation model considers present value of expected payments discounted using an appropriate discounting rate.

3. The Company enters into Derivative financial instruments with counterparties principally with Banks with investment grade credit ratings. The Interest Rate swaps is valued using valuation techniques which employs the use of market observable inputs namely, Marked-to-Market.

c) Disclosure required by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015; and section 186(4) of the Companies Act,2013 :

1. Amount of Loans and advances in the nature of loans outstanding from subsidiaries Rs. Nil (Previous Year Rs. Nil)

2. Loans to employees have been considered to be outside the purview of disclosure requirements.

3. Investment by Loanee in the shares of the Company- Not applicable (Previous Year Not applicable)

d) There are no material transactions with respect to struck off companies as mentioned under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

e) Disclosures as per IND AS - 19 - employee benefits

The Company make contributions towards provident fund, in substance a defined benefit retirement plan and towards pension and superannuation funds which are defined contribution retirement plans for qualifying employees. The Company are liable to pay to the provident fund to the extent of the amount contributed and any shortfall in the fund assets based on Government specified minimum rates of return relating to current services. Such contribution and shortfall if any, are recognised as an expense in the year in which these are incurred.

The Company make annual contributions to the Employees'' Gratuity Trust, for funding the defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on termination of employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half month, three fourth month and full month salary last drawn for each completed year of service depending upon the completed years of continuous service in case of retirement or death while in employment. In case of termination, the benefit is equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of continuous service.

The trustees of the trust fund are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deed and rules in the best interests of the plan participants. They are tasked with periodic reviews of the solvency of the fund and play a role in the long-term investment, risk management and funding strategy.

(i) Remuneration does not include provisions made for Gratuity as it is determined on an actuarial basis for the Company as a whole.

(ii) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances other than unsecured loan at the year-end are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2022: Rs. Nil). This assessment is undertaken in each financial year through examining the financial position of the related party and the market in which the related party operates.

g) Segment Information

The operations of the Company are limited to two segment viz. (i) Filtration, Drying and Other Equipment (ii) Glass Lined Equipment

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”

l) Contingent Liabilities not provided for:

(i) Claims not acknowledged as debts:

(a) There is a pending litigation against the Company for compensation of loss of profit of Rs. 500.00 lakhs. The Court has decided the judgement in favour of the Company, however the mater has been referred to the High Court, in the opinion of the management, no provision is considered necessary.

(b) Disputed Service Tax for the period 2008 to 2013 is Rs. 16.47 lakhs (Prevous Year Rs. 16.47 lakhs) pending before CESTAT, against which the Company has made payment of Rs. 5.19 lakhs(Prevous Year Rs. 5.19 lakhs).

(c) Disputed Service Tax for the period 2012 to 2015 is Rs. 29.07 lakhs (Previous Year Rs. 29.07 lakhs) pending before CESTAT, against which the Company has made payment of Rs. 5.09 lakhs(Prevous Year Rs. 5.09 lakhs).

(d) Disputed Service Tax for the period 2013 to 2017 is Rs. 22.92 lakhs (Previous Year Rs. 29.48 lakhs) pending before CESTAT, against which the Company has made payment of Rs. 4.01 lakhs(Prevous Year Rs. 5.16 lakhs).

m) Discontinuing Operations:

a) Description of Discontinuing Operations:

i) The Company had chemical manufacturing operations at Plot No.B-1,B-3,B-4 & A-7, Maroli udhyognagar, Maroli, Navsari, Gujarat for manufacture of chemical product.

The Company had passed a circular resolution dated 22^nd May, 2020 for discontinuing of its chemical unit operations at Maroli.

ii) The Company started disposing of its Assets in the year 2020-21.

b) Business or Geographical segment:

The Discontinuing Unit is engaged in the business of chemicals and has business estiblesment only in India.

c) Date or period in which the discontinuance is expected to be completed if known or determinable:

The management of the Company has already initiated steps towards disposal. However the date or period in which the discontinuation is expected to be completed is not determinable as the process for disposal is still in progress as at March 31, 2023.

n) The amount due and paid during the year to “Investor Education and Protection Fund” is Rs. 17.43 lakhs (Previous Year - Rs. 5.43 lakhs).

o) Corporate Social Responsibility

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 eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

p) Subsequent events post balance sheet

i) The Board has recommended dividend @ 55% (Rs. 1.10) per equity share and declared dividend @ 9.5% W(Rs. 0.38) per preference share at its meeting held on 29^th May, 2023.

q) Previous period’s figures have been regrouped and/or rearranged, wherever considered necessary.

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Mar 31, 2022

Non-Current Borrowings

1) Term loan from Bajaj Finance Limited is secured by hypothecation of specific immovable property owned by the promoters. The term loan is repayable in 84 quarterly instalments commencing from November, 2017 and carries an interest rate of 10.25% p.a. (March 31, 2021: 10.75% p.a.) payable on monthly basis.

2) Term loan from HDFC Bank Limited is secured by first pari passu charge on present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The term loan is repayable in 72 months equal instalment (including 12 months moratorium) beginning from September, 2022 and carries an interest rate of 7.95% p.a. (March 31, 2021: Nil)

3) Term loan from Citibank N.A. is secured by first pari passu charge on present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. Repayment in 16 equal quarterly instalment beginning from April, 2022 and carries an interest rate of 8.25% p.a. (March 31, 2021: 8.25% p.a.)

4) Term loan (foreign currency loan) from Citibank N.A. is secured by first pari passu charge on present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. Repayment in 16 equal quarterly instalments starting from March, 2023 and carries an interest rate of 2.50% p.a. (March 31, 2021: Nil)

5) Term loan from State Bank of India is secured by first pari passu charge over on present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. Repayable in 78 and 48 monthly installments beginning October, 2019 and October, 2020 respectively. Carries interest of 9.80%/ 10.05% p.a. (March 31, 2021: 9.80%/ 10.05% p.a.) respectively.

6) Vehicle loans availed from HDFC Bank are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable in equal monthly instalments from the month subsequent to the disbursement of the loan. Interest is payable on monthly basis at 6.25% p.a. to 10% p.a. (March 31, 2021: 6.25% p.a to 10% p.a.)

7) Vehicle loans taken from financial institution are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable in equal monthly instalments from the month subsequent to the disbursement of the loan. The interest is payable on monthly basis at 11.05% p.a. [March 31, 2021: 11.05% p.a.]

Current Borrowings

1) Working capital facilities including packing credit and foreign bill discounting from HDFC Bank Limited are secured by first pari

passu charge on the present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the present and future movable and immovable fixed assets of the Company. The rate of interest for cash credit is 7.9% p.a. [March 31, 2021: 9.55% p.a.] and for other facilities is LIBOR plus 250 bps [March 31, 2021: LIBOR plus 250 bps].

2) Working capital facilities including packing credit and foreign bill discounting from Citibank N.A. are secured first pari passu charge on the present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the present and future movable and immovable fixed assets of the Company. The rate of interest for cash credit is 9.25% p.a. [March 31, 2021: 9.25% p.a.]

3) Working capital loan facilities including packing credit and foreign bill discounting from State Bank of India are secured by secured first pari passu charge on the present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company and second pari passu charge on the present and future movable and immovable fixed assets of the Company. The rate of Interest for cash credit is 7.95% p.a. [March 31, 2021: 9.05% p.a.]

4) The unsecured loans from directors and relatives are carrying an interest @ 9% p.a., [March 31, 2021: 9% p.a.] repayable on demand.

5) The monthly/ quarterly statements of stock and book debts filed by the Company with the banks are in agreement with the books of accounts and there are no material discrepancies.

List of immovable property of the Company as under:

1. Plot No A/6, R.S. No 153, New Block No 140, Maroli to Ubhrat Road Village Nanod Maroli Navsari.

2. Plot No 200, Village Nadod Navsari, Block B-3, Navsari.

3. Block No. 200 Paiky, Plot No.B/1/4, Maroli To Ubhrat Road, Village Nanod, Maroli, Talika and District Navsari.

4. Survey No-183/P1, Village Naroli, Silvassa.

5. Plot No. H 106, R S No.1425/P,1435/P,1431/P,1416/P and 1424/P, Vitthal Udyognagar Industrial Area, Village Mogri, Taluka Anand, District Kheda.

6. Plot No. I 107, 107/A and I-105, Revenue Survey No.808/P,809/P,811/P, R S No.426/P,1427/P,1428/P,1429/P and 1430/P, At. Mogri, Taluka Anand, District Kheda.

Note 25

A. CAPITAL MANAGEMENT

For the purpose of Company''s capital management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company''s Capital Management is to maximise the Share Holder Value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and requirements of the financial covenants and to continue as a going concern. The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and short term deposit.

B. FINANCIAL RISK MANAGEMENT

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 operations of The Company. The principal financial assets include trade and other receivables, investments in mutual funds and cash and short term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

a) Market risk

Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily includes loans, borrowings, foreign currency receivables and payables .

i) Interest rate risks

Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

ii) Commodity Price Risks

The Company is affected by price stability of certain commodity due to significantly increase volatility of certain commodities, the Company has entered into contracts with the customers that has provision to pass on the change in raw material prices. The Company has risk management framework aimed at prudently managing the risk arising from volatility in commodity prices.

(b) Credit Risk Management :

It is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents, investments as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company also has an external credit risk insurance cover with ECGC Policy. The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

The amounts reflected in the table above are not impaired as on the reporting date.

(c) Liquidity Risk Management :

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts based on expected cash flows.

Section 115BAA of the Income tax Act, 1961 as amended by the Finance Act 2020 has allowed an option to the domestic companies to switch to a lower tax rate structure of 22% (25.17% including surcharge and cess) from the earlier 25% (29.12% including surcharge and cess) on certain conditions. The Company has elected to switch to the new lower tax rate structure with effect from the financial year 2021-22.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

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

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair value.

1. The Fair values of Mutual Funds and Quoted Equities are based on NAV / Quoted Price at the reporting date.

2. Non current financial assets / liabilities measured at amortised cost - Discounted cash flow technique : The valuation model considers present value of expected payments discounted using an appropriate discounting rate.

This information complies with the terms of the R & D recognition granted upto 31^st March 2024 for the Company''s in-house Research and Development activities by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, vide their Letter No. F.No. TU/IV-RD/3905/2021 Dtd. 17^th August, 2021.

During the year the Company has opted for taxation u/s 115BAA and hence has not claimed any benefit under R&D expenditure. e) Disclosures as per IND AS - 19 - employee benefits

The Company make contributions towards provident fund, in substance a defined benefit retirement plan and towards pension and superannuation funds which are defined contribution retirement plans for qualifying employees. The Company are liable to pay to the provident fund to the extent of the amount contributed and any shortfall in the fund assets based on Government specified minimum rates of return relating to current services. Such contribution and shortfall if any, are recognised as an expense in the year in which these are incurred.

The Company make annual contributions to the Employees'' Gratuity Trust, for funding the defined benefit plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on termination of employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half month, three fourth month and full month salary last drawn for each completed year of service depending upon the completed years of continuous service in case of retirement or death while in employment. In case of termination, the benefit is equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years of continuous service.

The trustees of the trust fund are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deed and rules in the best interests of the plan participants. They are tasked with periodic reviews of the solvency of the fund and play a role in the long-term investment, risk management and funding strategy.

Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior period. For change in assumptions please refer to section 5 above, where assumptions for prior period, if applicable, are given.

b. Asset Liability Matching Strategies

The scheme is managed on funded basis.

c. Effect of Plan on Entity''s Future Cash Flows - Funding arrangements and Funding Policy

Terms and conditions of transactions with related parties;

* Remuneration does not include provisions made for Gratuity as it is determined on an actuarial basis for the Company as a whole.

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances other than unsecured loan at the year-end are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2021: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

g) Segment Information

The operations of the Company are limited to two segment viz. (i) Filtration, Drying and Other Equipment (ii) Glass Lined Equipment. The Registered Office and Glass Lined Equipment division is located at Vitthal Udyognagar, Anand, Gujarat. The Other Engineering Equipment division is located at Maroli Udyog Nagar, Vil. Nadod, Tal. Jalalpor, Dist. Navsari, Gujarat.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable".

j) Commitment

(i) Estimated amount of contracts remaining to be executed on Capital Account, net of advances and not provided for - Rs.

272.48 lakhs (Previous Year Rs. 833.34 lakhs)

(ii) Letters of Credit issued by the Banks - Rs. 3,846.87 lakhs (Previous Year Rs. 2,138.12 Lakhs)

k) Contingent Liabilities not provided for:

(i) Claims not acknowledged as debts:

(a) There is a pending litigation against the Company for compensation of loss of profit of Rs. 500.00 Lakhs. The Court has decided the judgement in favour of the Company, however the mater has been referred to the High Court, in the opinion of the management, no provision is considered necessary.

(b) Disputed Service Tax for the period 2008 to 2013 is Rs. 14.74 Lakhs (Previous Year Rs.14.74 Lakhs) pending before CESTAT, against which the Company has made payment of Rs. 5.19 Lakhs (Previous Year Rs. 5.19 Lakhs).

(c) Disputed Service Tax for the period 2012 to 2015 is Rs. 29.07 Lakhs (Previous Year Rs.29.07 Lakhs) pending before CESTAT, against which the Company has made payment of Rs. 5.09 Lakhs (Previous Year Rs. 5.09 Lakhs).

(d) Disputed Service Tax for the period 2013 to 2017 is Rs. 29.48 Lakhs (Previous Year Rs. 29.48 lakhs) pending before CESTAT, against which the Company has made payment of Rs. 5.16 Lakhs (Previous Year Rs. 5.16 Lakhs).

l) The amount due and paid during the year to "Investor Education and Protection Fund" is Rs. 5.43 lakhs (Previous

Year - Rs. 4.59 lakhs).

m) There are no material transactions with respect to struck off companies as mentioned under section 248 of the

Companies Act, 2013 or section 560 of the Companies Act, 1956.

n) Discontinuing Operations:

a) Description of Discontinuing Operations:

i) The Company had chemical manufacturing operations at Plot No.B-1,B-3,B-4 & A-7, Maroli udhyognagar, Maroli, Navsari, Gujarat for manufacture of chemical product.

The Company had passed a circular resolution dated 22^nd May, 2020 for discontinuing of its chemical unit operations at Maroli.

ii) The Company started disposing of its Assets in the year 2020-21.

b) Business or geographical segment:

The Discontinuing Unit is engaged only in the manufacture of chemicals and has business only in India

c) Date & nature of initial disclosure:

The date & nature of such disclosure is described as under:

i) The Company sold some of its plant & machinery in the year 2021-22.

d) Date or period in which the discontinuance is expected to be completed if known or determinable:

The management of the Company has already initiated steps towards disposal. However the date or period in which the discontinuation is expected to be completed is not determinable as the process for disposal is still in progress as at March 31, 2022.

As per Management, only those income & expenses directly attributable to the discontinuing operations are considered for disclosure.

o) Subsequent events post balance sheet

i) The Board has recommended dividend @ 50% (Rs. 5) per equity share and declared dividend @ 9.50% (Rs.0.57) per preference share at its meeting held on 23^rd May, 2022.

p) Previous period''s figures have been regrouped and/or rearranged, wherever considered necessary.

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Mar 31, 2018

A General Information

Established in 1991, Swiss Glascoat Equipments Ltd. (SGEL) is based in western part of India, specializes in design and manufacturing of Carbon Steel Glass Lined Equipment viz. Reactors, Receivers / Storage Tanks, Dryers, Filters, Columns, Agitators, Valves, Pipes And Fittings. SGEL caters to requirement of leading Pharmaceutical / API, Specialty Chemicals, Dyes/ Colours, Agro Chemicals, Food Processing and allied Industries.

B Basis of preparation of Financial Statements

The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the financial years presented, unless otherwise stated. (Refer Note:- D for the details of first-time adoption exemptions availed by the Company).

The Company has adopted all the applicable Indian Accounting Standards (''Ind AS'') in accordance with Ind AS 101 - First Time Adoption of Indian Accounting Standards. The Company has transited from its previous GAAP as defined in Ind AS 101 with the necessary disclosures relating to reconciliation of Shareholders equity under Previous GAAP and Ind AS and of the net profit as Previous GAAP and Total Comprehensive Income under Ind AS.

(i) Statement of Compliance

In accordance with the notification dated 16^th February, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from 1^st April, 2016.

The Standalone Financial Statements have been prepared in accordance with Ind AS as prescribed under Section 133 of the Companies Act, 2013 (''the Act'') the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The Financial Statements up to year ended 31 ^st March, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 and other relevant provisions of the Act (''Previous GAAP'').

The Financial Statement for the year ended 31 ^st March, 2018 is the first Financial Statement of the Company which has been prepared in accordance with Ind AS. Previous year numbers for the year ended 31 ^st March, 2017 in the Financial Statements have been restated to confirm to Ind AS. Accordingly, the date of transition to Ind AS is 1 ^st April, 2016.

(ii) Basis of preparation and presentation

The Financial Statements have been prepared on historical cost basis considering the applicable provisions of Companies Act 2013 except the following material items that have been measured at fair value as required by relevant Ind AS. Nevertheless, historical cost is generally based at the fair value of the consideration given in exchange for goods and services.

a) Certain financial assets/liabilities measured at fair value (refer Note No. 27 for fair value of financial instruments) and

b) Any other item as specifically stated in accounting policy.

The Financial Statement are presented in Indian Rupee (''INR'').

The company reclassifies comparative amounts, unless impracticable and whenever the company changes the presentation or classification of items in its financial statements materially. No such material reclassification has been made during the year.

The financial statements of the Company for the year ended 31st March, 2018 were authorised for issue in accordance with a resolution of the directors on 19th May, 2018.

(iii) Use of Estimate and judgment

In the application of accounting policy which are described in note (C) below, the management is required to make judgment, estimates and assumptions about the carrying amount of assets and liabilities, income and expenses, contingent liabilities and the accompanying disclosures that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant and are prudent and reasonable. Actual results may differ from those estimates. The estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future period.

The few critical estimations and judgments made in applying accounting policies are:

Property, Plant and Equipment:

Useful life of Property Plant and Equipment and Intangible Assets are as specified in Schedule II to the Companies Act, 2013 and on certain intangible assets based on technical advice which considered the nature of the asset, the usage of the asset and anticipated technological changes.

Impairment of Financial Assets:

The company impairs financial assets other than those measured at fair value through profit or loss or designated at fair value through other comprehensive income on expected credit losses. The estimation of expected credit loss includes the estimation of probability of default (PD), loss given default (LGD) and the exposure at default (EAD). Estimation of probability of default apart from involving trend analysis of past delinquency rates include an estimation on forward-looking information relating to not only the counterparty but also relating to the industry and the economy as a whole. The probability of default is estimated for the entire life of the contract by estimating the cash flows that are likely to be received in default scenario. The lifetime PD is reduced to 12 month PD based on an assessment of past history of default cases in 12 months. Further, the loss given default is calculated based on an estimate of the value of the security recoverable as on the reporting date. The exposure at default is the amount outstanding at the balance sheet date.

Defined Benefit Plans:

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligations 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, mortality rates and attrition rate. 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.

Fair Value Measurement of Financial Instruments:

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

Note 1 (d) - Footnotes to the reconciliation of equity as at 1st April, 2016 and 31st March, 2017 and total comprehensive income for the year ended 31st March, 2017

i) FVTPL Financial Liabilities:

Under previous GAAP, the Company accounted for non-current borrowings at cost. Under Ind-AS, the borrowings are required to be classified and measured subsequently at fair value through profit or loss. At the date of transition to Ind-AS, difference between the fair value and GAAP carrying amount of Rs. 3.04 Lakhs has been recognised in the retained earnings. The impact of Rs. 0.83 Lakhs as at 31st March, 201 7 has been recognised in the statement of profit and loss.

ii) Provisions:

Under previous GAAP proposed dividend including Dividend Distribution Tax are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind-AS, dividend is recognised as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting).

Accordingly, the liability of Rs. 1.32 Lakhs for the year ended on 31st March, 2016 recorded for proposed dividend has been derecognised against retained earnings on 1 st April, 201 6.

iii) Defined Benefit Obligation:

Both under previous GAAP and Ind-AS, the Group recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP the entire cost, including actuarial gains and losses, are charged to statement of profit and loss. Under Ind-AS, re-measurements comprising of actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, the effect of change in asset ceiling (if applicable) and the return on plan assets (excluding net interest) are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income (OCI). Thus, the employee benefit cost is reduced by Rs. 7.16 Lakhs (Net of Tax of Rs. 3.79 Lakhs) as at 31st March, 2017 and re-measurement losses on defined benefit plans has been recognised in the Other Comprehensive Incomes (net of tax)

iv) Other Comprehensive Income:

Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, it has reconciled previous GAAP profit to profit as per Ind-AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind-AS.

v) Leasehold Land:

Under previous GAAP, leasehold land had not been amortised. In Contrast, the IND AS requires amortisation of leasehold land over the period of lease. Accordingly, lease rental of Rs. 0.60 Lakhs has been provided in the year ended 31st March, 201 7. Also the same has been classified as prepaid lease rentals.

Note 2 : Capital Management

A. CAPITAL MANAGEMENT :

The Company''s objectives when managing capital are to (a) maximise shareholder value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

For the purposes of the Company''s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.

The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.

B FINANCIAL RISK MANAGEMENT OBJECTIVES :

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 operations of the Company. The principal financial assets include trade and other receivables, investments in mutual funds and cash and short-term deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities

A. Market Risk Management:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

1) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into forward exchange contracts to hedge its foreign currency exposures. Foreign currency risks from financial instruments at the end of the reporting period expressed in Rs. in lakhs :

The Sensitivity analysis is prepared on the net unhedged exposure of the Company at the reporting date.

2) Interest Rate Risk:

Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

3) Commodity price risk:

The Company is affected by the price stability of certain commodities. Due to the significantly increased volatility of certain commodities, the Company enters into contract with the customers that has provision to pass on the change in the raw material prices. The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices.

B. Credit Risk Management:

Is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents, investments as well as credit exposure to customers.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

Trade Receivables:

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company also has an external credit risk insurance cover with ECGC Policy. The company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

C. Liquidity Risk Management:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts based on expected cash flows.

Note 3 A : Fair Values and Hierarchy

1. Financial instruments - Fair values

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels are presented below . It does not include the fair value information for financial assets and financial liabilities not measured at fair value if their carrying amount is a reasonable approximation of fair value

B. Measurement of fair values

Valuation techniques and significant unobservable inputs:

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

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

1. The Fair values of Mutual Funds and Quoted Equities are based on NAV / Quoted Price at the reporting date.

2. Non current financial assets / liabilities measured at amortised cost - Discounted cash flow technique : The valuation model considers present value of expected payments discounted using an appropriate discounting rate.

b) The Company''s leasing arrangements are in respect of operating leases for factory and office permises. The leasing arrangements, which are not non-cancellable, are for one year generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent.

Note:-

The Company is engaged interalia in the manufacture of Chemicals. These in the context of Ind AS 108 " Operating Segment" are considered to constitute one single primary segment. The Company''s operations outside India do not exceed the quantitative threshold for disclosure envisaged in the Accounting Standard. Non-reportable segments have not been disclosed as unallocated reconciling item in view of their materiality. In view of the above, primary and secondary reporting disclosures for business/geographical segment are not applicable.

g) Commitment:

(i) Estimated amount of contracts remaining to be executed on Capital Account, net of advances and not provided for - Rs. 142.39 Lakhs (Previous Year Rs. Nil)

h) Contingent Liabilities not provided for:

(i) Guarantees given by the Banks - Rs. 809.39 Lakhs (Previous Year - Rs. 554.06 Lakhs)

(ii) Letters of Credit issued by the Banks - Rs. 888.28 Lakhs (Previous Year - Rs. 351.65 Lakhs)

(iii) Claims not acknowledged as debts:

(a) There is a pending litigation against the Company for compensation of loss of profit of Rs. 500.00 Lakhs. The Company has been legally advised that the compensation demanded is likely to be deleted and accordingly, in the opinion of the management, no provision is considered necessary.

(b) Disputed Income Tax for the Assessment Year 2003-04 and 2004-05 pending before High Court Rs. 15.89 Lakhs (Previous Year - 15.89 Lakhs) and Rs. 58.80 Lakhs (Previous Year Rs. 58.80 Lakhs)respectively

(c ) Disputed service tax for the period 2008 to 2013 is Rs. 16.47 Lakhs (Previous Year - Rs. 28.54 Lakhs) pending before CESTAT, against which company has made payment of Rs. 5.19 Lakhs (Previous Year - 5.19 Lakhs)

(d) Disputed service tax for the period 2012 to 2015 is Rs. 29.07 Lakhs (Previous Year - Rs. 29.07 Lakhs) pending before CESTAT, against which company has made payment of Rs. 5.09 Lakhs (Previous Year - Rs. 5.09 Lakhs)

i) Events Occuring after the Balance Sheet date:

The proposed final dividend for FY 201 7-18 amounting to Rs.130.00 Lakhs will be recognised as distribution to owners during the financial year 2018-19 on its approval by Shareholders. The proposed final dividend per share amounts to Rs.2/-.

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Mar 31, 2015

1. Nature of Securities

I Term Loans (A Above) obtained from Karur Vysya Bank is secured by way of hypothecation of assets acquired through said term loan.

II Vehicles Loans acquired on H.P Loans form Banks (B Above) are secured by exclusive charged on respective Vehicle purchased through those loans.

2. RELATED PARTY DISCLOSURES

Related Party disclosure as required by AS-18, are given below:

I Relationship:

a Subsidiary of the Company Nil

b Associates and Joint Ventures Nil

c Individual having control / Mr. Sudarshan Amin significant influence (Managing Director)

d Key Managerial Personnel [KMP] & Mr. Sudarshan Amin Relatives thereof (Managing Director) Mrs. Nita Amin, Ms. Phagun Amin

e Enterprises over which (c) & (d) Chemfilt above have significant influence

3. As the Company's business activity, in the opinion of the Management, falls within a single primary segment subject to the same risk and return, the disclosure requirement of Accounting Standard AS-1 7 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

4. CONTINGENT LIABILITIES AND COMMITMENTS

i Contingent Liabilities

a Claims against the Company/disputes & liabilities not acknowledge against debt - -

b Guarantee 74,337,495 43,849,916

c Letter of Credit 18,433,244 58,432,554

ii Commitments

a Estimated amt. of contract remaining to be executed on capital advance 1,027,846 5,730,500

b Other commitments - -

There is a pending litigation against the Company for compensation of loss of profit of Rs. 5,00,00,000/-. The Company has been legally advised that the compensation demanded is likely to be deleted and accordingly no provision is considered necessary.

5. PROPOSED DIVIDEND

The Board of Directors have proposed equity dividend of INR 2.70 (Previous Year INR 2.50) per equity share of INR 10 each. The aggregate amount of equity dividend proposed to be distributed is INR 1,61,99,198 (Previous Year INR 1,45,27,813) Including Dividend distribution tax of INR 26,99,198 (Previous Year INR 20,27,813).

6. PREVIOUS YEAR FIGURES

Previous year figures are regrouped, rearranged and recast wherever required to make them comparable with those of year under review.

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Mar 31, 2014

1. As the Company''s business activity, in the opinion of the Management, falls within a single primary segment subject to the same risk and return, the disclosure requirement of Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2. CONTINGENT LIABILITIES AND COMMITMENTS

i Contingent Liabilities

a Claims against the Company/disputes & liabilities not acknowledge against debt - 607,781

b Guarantee 43,849,916 68,738,724

c Letter of Credit 58,432,554 75,831,183

ii Commitments

a Estimated amt. of contract remaining to be executed on capital advance 5,730,500 3,522,678

b Other commitments - -

3. PROPOSED DIVIDEND

The Board of Directors have proposed equity dividend of Rs. 2.50 (Previous Year Rs. 2.20) per equity share of Rs. 10 each. The aggregate amount of equity dividend proposed to be distributed is Rs.1,45,27,813 (Previous Year Rs.1,27,84,475) Including Dividend distribution tax of Rs 20,27,813 (Previous Year Rs. 17,84,475).

4. PREVIOUS YEAR FIGURES

Previous year figures are regrouped, rearranged and recast wherever required to make them comparable with those of year under review.

5. Notes 1 to 36 form an integral part of the financial statements.

---

Mar 31, 2013

1 As the Company''s business activity, in the opinion of the Management, falls within a single primary segment subject to the same risk and return, the disclosure requirement of Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2 PROPOSED DIVIDEND

The Board of Directors have proposed equity dividend of Rs. 2.20 (Previous Year Rs. 2.20) per equity share of Rs. 10 each. The aggregate amount of equity dividend proposed to be distributed is INR.12,784.48 thousands (Previous Year INR 12,784.48 thousands) including Dividend Distribution Tax of INR 1,784.48 thousands (Previous Year INR 1,784.48 thousands).

3 PREVIOUS YEAR FIGURES

Previous year figures are regrouped, rearranged and recast wherever required to make them comparable with those of year under review.

4 Notes 1 to 36 form an integral part of the financial statements.

---

Mar 31, 2012

NOTE - 1.1 NATURE OF SECURITIES

I. Term Loans (A Above) obtain from. State Bank of India is Secured by way of hypothecation of Wind Mill with all its accessories located at plot No. BAR 06 at village ; Baridia, Taluka : Dwarka, District: Jamnagar, Gujarat and Karur Vysya Bank is secured by way of hypothecation of assets acquired through said term loan.

II. Vehicles Loans acquired on HP Loans form Banks (B Above) are secured by exclusive charged on respective Vehicle purchased through those on.

NOTE - 2 RELATED PARTY DISCLOSURE

Related Party disclosure as required by AS-18, are given below:

I) Relationship;

a) Subsidiary of the Company

- Nil

b) Associates and Joint Ventures

- Nil

c) Individuals having significant influence

- Mr. Sudarshan Amin (Managing Director)

d) Key Managerial Personnel & Relatives thereof

- Mr. Sudarshan Amin (Managing Director)

- Mr.Sudarshan Amin (Managing Director)

- Mr. Ambalal Patel (Whole Time Director)

- Mr. PhagunAmin (Executive Director)

- Mrs Urmilaben Patel, Mr. Tanmay Patel

e) Enterprises over which (c) & (d) above have significant influence

- Chemfilt

- Cera Coats

Note 3

As The Company's business activity, in the opinion of the management, falls within a single primary segment subject to the same risk and return, the disclosure requirement of Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

Note 4 CONTINGENT LIABILITIES AND COMMITMENTS

(INR In '000s) As at As at 31st March 2012 31st March 2011

(i) Contingent Liabilities

(a) Claims against the Company/disputes & liabilities not acknowledge against debt 6568,00 9534.25

(b) Guarantee 61230.85 62392.11

(c) Letter of Credit 37668,94 61876.60

(ii) Commitments

(a) Estimated amt. of contract remaining to be executed on capital advance 2226.61 14070.00

(b) Other commitments

NOTE 5 PROPOSED DIVIDEND

The Board of Directors have proposed equity dividend of Rs. 2,20 (Previous Year Rs. 2,00) per equity share of Rs. 10 each. The aggregate amount of equity dividend proposed to be distributed is Rs. 12784.48 thousands (Previous Year Rs. 11622.25 thousands) Including Dividend distribution tax of Rs 1784.48 thousands (Previous Year Rs. 1622.25 thousands)

NOTE 6 PREVIOUS YEAR FIGURES

During the year ended 31 st March, 2012, the Revised Schedule VI notified under The Companies Act, 1956 has become applicable to the company for preparation and presentation of its financial statement. The adoption of revised schedule VI dose not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statement. The company has also reclassified the previous year figure in accordance with the requirement applicable in the current year. In view of this reclassification, certain figures of current year are not strictly comparable with those of the previous year.

NOTE 7

Note 1 to 36 form an integral part of the financial statements.

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Mar 31, 2010

1. Previous years figures have been regrouped, rearranged and recast wherever necessary.

2. The schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

3. Contingent liabilities not provided for in respect of:

(Rs. In000s)

Particulars 2009-10 2008-09

Guarantees given by the Bank on behalf of the Company 27817.34 21231.77

II Letter of Credit 11246.39 5805.04

III [claims not acknowledged as debt Nil 1204.52

4. Related Party Transactions:

Related Party disclosures as required by AS-18 are given below: I) Relationship:

a) Individuals having control / significant influence

- Mr. Sudarshan Amin (Managing Director)

- Mr. Ambalal Patel (Whole-time Director)

b) Key Managerial Personnel

- Mr. Sudarshan Amin (Managing Director)

- Mr. Ambalal Patel (Whole-time Director)

c) Relatives of Key Managerial Personnel

- Neeta Amin, Phagun Amin & Chandni Amin

- Urmilaben Patel, Tanmay Patel, Ekta Patel, Palak Patel

d) Enterprises over which (a), (b) & (c) above have significant influence

- Chemfilt

- Euro Mixers

- Cera Coats

5. Segment Reporting:

As the Companys business activity, in the opinion of the Management, falls within a single primary segment subject to the same risk and returns, the disclosure requirements of Accounting Standard AS-17 "Segment Reporting" are not applicable.

6. The Company has not received any information from suppliers or service providers, that whether they are covered under the "Micro, Small and Medium Enterprise Development Act, 2006". Consequently, Disclosures relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

7. Employee Benefits:

(i) Defined Contribution Plans:

The Company has recognized Rs. 818.35 thousands (P.Y. Rs. 712.59 thousands) for Provident Fund Contribution as expenses under the defined contribution plan in the Profit and Loss account for the year ended 31st March, 2010.

(ii) Defined Benefit Plan:

The Company recognizes benefit towards the gratuity at each balance sheet date.

The most recent actuarial valuation of the defined benefit obligation for gratuity was carried out at March 31, 2010 by an actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation.