15.2 The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable withholding income taxes. The remittance of dividend outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

15.3 Rights, preferences and restrictions

i. The Company has only one class of shares, referred to as equity shares, having a par value of ' 2/- (Previous year ' 2/-).

ii. Final dividend of ' 10 per share for face value of ' 2/-each proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

i) . Cash Credits are secured by hypothecation of stocks of raw materials, semi-finished goods, finished goods, consumable stores and

book debts of the Company, both present and future, as well as by the second mortgage of the specified immovable properties of the Company.

ii) Packing credit are secured against hypothecation of stocks of raw materials, semi-finished goods, finished goods, consumable stores and book debts of the Company, both present and future, as well as by the second mortgage of the specified immovable properties of the Company.

iii) Packing credit due for payment within 180 days bears average interest of SOFR plus spread of 1.25% per annum (Previous year Nil).

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

The sensitivity analysis presented above may not be representative of the actual change in the projected 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.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the Projected Unit Credit Method at the end of the reporting year, which is the same method as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

37B Share Based Payments

The Company has in place an Employee Stock Option Plan approved by the Shareholders of the Company in the compliance with Securities & Exchange Board of India (Share Based Employee benefits) Regulations, 2014 - Alkyl Amines Employees Stock Option Plan, 2018

41 EARNINGS PER SHARE

Earning Per Share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Calculations for basic and diluted earnings per equity share are as stated below.

47 Leases

Leases as lessee

The Company enters into lease contracts primarily for the purpose of taking office spaces , storage server, Sheds and Machinery on lease to conduct its business in the ordinary course. The Company has elected not to apply the requirements of Ind AS 116 to short-term leases and certain leases for which the underlying asset is of low value.

(i) For the maturity analysis of contractual undiscounted cash flow (refer note 48.3)

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital by computing the above ratio on an annual basis and ensuring that the same is in Compliance with the requirements of the Financial Covenants.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to determine fair value of an instrument are observable, the instrument is included in Level2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level3.

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

-The fair value of forward foreign exchange contracts is determined using forward exchange rates received from The bank at The Balance Sheet date.

-The fair value of receivables is considered to be the same as its carrying value due to its short term nature.

iii) Valuation process

The finance department of the Company includes a team that performs the valuations of assets and liabilities required for financial reporting purposes, including level 3 fair values.

iv) Fair value of financial assets and liabilities measured at amortized cost

The carrying amounts of trade receivables, deposits, loans, cash and cash equivalents, other financial assets, trade payables, borrowings and other financial liabilities are considered to be the same as their fair values, due to their short-term nature. The non-current borrowings are at market interest rate and are assumed to be equivalent to its fair value.

48.3 Financial Risk Management

Policies and Objectives

The Company, in the course of its business, is exposed to a variety of financial risks, viz. market risk, credit risk and liquidity risk, which can adversely impact the financial performance. The Company’s endeavour is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company has a risk management policy that not only covers the foreign exchange risk but also other risks such as interest rate risk and credit risk which are associated with financial assets and liabilities. The risk management policy of the Company is approved by its board of directors. The risk management framework focuses on actively securing the Company’s short to medium term cash flows by minimizing the exposure to financial markets. Presented below is a description of our risks (market risk, credit risk and liquidity risk) together with a sensitivity analysis, performed annually, of each of these risks, based on selected changes in market rates and prices. These analysis reflect the management’s view of changes which are reasonably possible to occur over a one year period. In the event of crisis caused due to external factor, the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in the situations through internal and external source of funds. These forecast and assumptions are reviewed by board of directors.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in 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, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Foreign currency exchange rate risk:

The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit and Loss and Equity. This arises from transactions entered into in foreign currency and assets/liabilities which are denominated in a currency other than the functional currency of the Company.

A majority of the Company’s foreign currency transactions are denominated in US Dollars (USD). Other foreign currency transactions entered into by the Company are in EURO and GBP. However, the size of these transactions is relatively small in comparison to the US dollar transactions. Thus, the foreign currency sensitivity analysis has only been performed in relation to the US Dollar (USD).

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Further, in accordance with its risk management policy, the Company hedges its risks atleast 80% by using derivative financial instruments. The use of these instruments facilitates the management of transactional exposures to exchange rate fluctuations because the gains or losses incurred on the derivative instruments will offset, in whole or in part, losses or gains on the underlying foreign currency exposure.

Interest rate risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs.

The company has borrowed through financial instruments such as ECB and working capital loans. The company is subject to variable interest rates on some of these interest bearing liabilities.

The risk estimated provided assume a parallel shift of 50 basis points interest rates across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposure’s outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the year.

Interest rate sensitivity

For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. Based on the composition of net debt, a 50 basis points increase / decrease in interest rates over the 12 month period would increase/ decrease the Company’s net finance expense explained as below:

Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Financial instruments that are subject to concentration of credit risk, principally consist of Trade Receivables and Loans.

The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. The Company’s policy is to deal only with creditworthy counterparties. The Company management considers that all the Financial Assets are of good credit quality, including those that are past due. Majority of Customer have been transacting with the company for a quiet long period and non of these customers balance have been writtenoff or credit impaired at the reporting date.

In respect of Receivables other than Trade Receivables, the Company’s exposure to any significant credit risk exposure to any single counter party or any groups of counter parties having similar characteristics is considered to be negligible. The credit risk for liquid funds and other short-term Financial Assets is considered negligible, since the counter parties are reputed banks with high quality external credit ratings.

The derivatives are entered with reputed banks with high quality external credit ratings.

The Company’s exposure to credit risk is limited to the carrying amount of Financial Assets recognized at the Balance Sheet date.

The Company evaluates the concentration of risk with respect to trade receivable as low, as its customer are located in several jurisdictions and industries and operate in largely independent market.

Expected Credit Loss Assessment

Based on the industry practices and the business environment in which the entity operates, management considers that the trade receivables and loans are in default (credit impaired) if the payments are more than 365 days past due. However as per the history of the company none of the customer falls in the aforesaid category during the year ending March 31st 2023 and year ending March 31st 2022.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposits which carry no mark to market risk.

The following tables detail the remaining contractual maturities at the end of the reporting period of the Company, which are based on contractual and undiscounted cash flows and the earliest date the Company can be required to pay. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.

This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

49 The Company has upgraded its ERP (SAP) system from ECC to HANA from November 3rd, 2022. The following items were completely migrated to the new system as on October 31st, 2022.

a) all the General ledger with their balances,

b) all the Inventories with its quantities and values,

c) all Vendors’ and customers’ with their carrying value.

d) all components of Property plant & Equipment and Intangible Assets with respect to their acquisition cost, accumulated

depreciation/amortization and impairment.

e) Capital work in progress and Intangibles under development with respect to their acquisition cost and impairment.

All the masters with respect to company code, plant codes general ledger, vendors, customers, materials, cost center , work center , profit center and others have been newly created in HANA and are mapped with their respective masters in ECC.

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

51 The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

53 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

54 The Company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

55 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

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

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

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

57 The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

58 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

59 The Company has not entered into any scheme of arrangement which has an accounting impact on current year or previous financial year.

60 The Code on Social Security 2020 (‘Code’) has been notified in the Official Gazette on September 29, 2020, it has not yet become effective and related rules are yet to be notified. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

61 The Company’s Financial Statements were approved and authorized for issue by its Board of Directors on May 11, 2023.

62 The Ministry of Corporate Affairs has vide notification dated 23 March 2022 notified Companies (Indian Accounting Standards) Amendment Rules, 2022 which amends certain accounting standards, and are effective 1 April 2022. Following are recent changes applicable to the Company.

1. Ind AS 16, Property, Plant and Equipment - Proceeds before intended use of property, plant and equipment. The amendment clarifies that an entity shall deduct from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced when testing a machine to see if it is functioning properly).

2. Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets - Onerous Contracts - Cost of fulfilling a contract. The amendment explains that the cost of fulfilling a contract comprises: the incremental costs of fulfilling that contract (e.g. Direct labour and materials) and an allocation of other costs that relate directly to fulfilling contracts (e.g. an allocation of the depreciation charge for an item of PPE used in fulfilling that contract). “

3. Ind AS 109, Financial Instruments - Fees included in the 10% test for derecognition of financial liabilities. The amendment clarifies which fees an entity includes when it applies the ‘10%’ test in assessing whether to derecognize a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf.”

63 Previous year’s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year’s presentation. Figures in brackets, unless specified, represent previous year’s figures.