be made of the amount of the obligation. If the effect of the
time value of money is material, provisions are determined by
discounting the expected future cash flows to net present value
using an appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and, where
appropriate, the risks specific to the liability. Unwinding of the
discount is recognised in the Statement of Profit and Loss as
a finance cost. Provisions are reviewed at each reporting date
and are adjusted to the reflect the current best estimate.

A present obligation that arises from past events where it is
either not probable that an outflow of resources will be required

to settle or a reliable estimate of the amount cannot be made,
is disclosed as a contingent liability. Contingent Liabilities are
also disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company.
Contingent assets are not recognized in financial statements
since this may result in the recognition of income that may
never be realised.

S Standards issued but not yet effective

There is no such notification applicable from April 1,2025.

? Provisions, Contingent liabilities and Contingent assets

The Company recognises provisions when there is present
obligation as a result of past event and it is probable that
there will be an outflow of resources and reliable estimate can

Income Tax

The above demand is arising on account of the following reasons:

- disallowance of interest on account of loans given to subsidiary companies for assessment years 2013-14, 2014-15, 2016-17, 2017-18 and
2019-20. The matters are pending before the Commissioner of Income Tax (Appeals).

- disallowance of Capital Expenditure of Hotel Division relating to assessment year 2014-15. The matter is pending before the Commissioner
of Income Tax (Appeals).

- 80G disallowance and ICDS adjustments relating to assessment year 2020-21. The matter is pending before the Commissioner of Income
Tax (Appeals).

Demands pertaining to the assessment years 2013-14, 2014-15, 2016-17, 2017-18 and 2020-21 were fully paid by way of adjustment of refunds,
under protest. Out of the above demands, H546.54 lakh was paid under protest.

Custom Duty

On account of incorrect application of concessional rate of duty on ethanol during the period 15-07-2017 to 09-05-2020. The matter is pending
before the Commissioner of Customs (Appeals). The amount paid under protest is H54.11 lakh.

GST

On account of GST on technical know-how paid to foreign entity and corporate guarantee extended on behalf of the subsidiary company for
the period July 2017 to March 2023. The matter is pending before the GST appellate authority. The amount paid under protest is H28.28 lakh.

The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely
to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to
significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(e) Risk exposure

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

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation
will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement.
The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase,
discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short
career employee typically costs less per year as compared to a long service employee.

40. Capital management

(a) Capital management and gearing ratio

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders. The primary objective of the company's capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. The company monitors capital using a gearing ratio, which is debt divided by total capital. The company includes within
debt, interest bearing loans and borrowings.

The Company funds its operations through internal accruals and aims at maintaining a strong capital base to support the future growth of
its business.

(b) Particulars relating to short term borrowings

The company has obtained cash credit facilities under multiple banking from HFDC Bank Limited and State Bank of India, which are secured by

- first pari-passu charge by way of hypothecation over the entire current assets of the Company (except Hotel divison) and

- first pari-passu charge by the consortium on Land and Building and other movable fixed assets inlcuding Plant and machinery, both
present and future of Unit I (Freehold) at Gat No. 194, 195, 196, 197 & 201, Tamalwadi, Osmanabad, Maharashtra and Unit III (Leasehold)
at Plot No E-7 & E-8, MIDC, Chincholi, Solapur, Maharashtra.

41. Financial instruments and risk management
Fair values

The carrying amounts of trade payables, other financial liabilities (current),trade receivables, cash and cash equivalents, other bank balances
and loans are considered to be the same as fair value due to their short term nature.

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

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with
carrying amounts that are reasonable approximation of fair values:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds
and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges
is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives)
is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case
for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year. The company's policy is to recognise transfers into and transfers out of fair value
hierarchy levels as at the end of the reporting period.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in
any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily
indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of
financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk,
which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the financial performance of the Company.

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises of currency risk, interest rate risk and price risk.

Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency
exposure. The sensitivity analyses in the following sections relate to the position as at March 31,2025 and March 31,2024.

The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilties .

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

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables and trade/other
receivables. The risks primarily relate to fluctuations in US Dollar and Euros against the functional currencies of the Company. The Company's
exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate
fluctuations by assessing its exposure to exchange rate risks.

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

(ii) Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and
from foreign forward exchange contracts:

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US dollars and
Other currencies, where the functional currency of the entity is a currency other than US dollars and Other currencies.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest
rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating
interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates
are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to
material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes
in market interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings
affected. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings,
as follows:

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current
held-to financial assets of the Company include trade receivables, security deposits held with government authorities and bank deposits
which represents Company's maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control
team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors
that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance
with this assessment. With respect to other financial assets viz., loans & advances, deposits with government and banks, the credit risk is
insignificant since the loans & advances are given to employees only and deposits are held with government bodies and reputable banks.
The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.

(iii) Significant estimates and judgements
Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates.
The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company's
past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(C) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to
close out market positions. Company's treasury maintains flexibility in funding by maintaining availability under deposits in banks.

Management monitors cash and cash equivalents on the basis of expected cash flows.

42. Segment information

(a) Description of segments and principal activities

The Company's Managing Director and Chief Financial Officer examine the Company's performance from a product perspective and have
identified two reportable segments:

1. Chemicals - Manufacturing of speciality chemicals, aliphatic amines and derivatives

2. Hotel - Providing hotel, restaurant and hospitality services

Segment revenue and expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently.
All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific
segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total
income of the company. Segment result includes the respective other income.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed
to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a
reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments.
Assets which are not allocable to the segments have been disclosed as 'unallocated corporate assets'. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.
The loans and other borrowings that are not specifically allocable to the various segments are disclosed as 'unallocated corporate liabilities'.

(b) Information about products/services:

Revenue from external customers - Sale of Chemicals : H1,24,081.75 lakh (P.Y. 1,30,836.75 lakh)

Revenue from external customers - Sale of Hotel : H3,277.47 lakh (P.Y. 2,947.7 lakh)

(c) The company has not made external sales to a single customer meeting the criteria of 10% or more of the entity's revenue.

43. Ind AS 115 - Revenue from contracts with customers

(A) The Company is primarily in the Business of manufacture and sale of Speciality Chemicals and Hotel Industry. All product sales are made
at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch or delivery.
All service sales are made over a period of time and revenue is recognised based on percentage of completion method. The Company
has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give
significant credit period resulting in no significant financing component.

46. Note on "Code on Social Security, 2020"

The Indian Parliament has approved the 'Code on Social Security, 2020' ('the Code") which would impact the contributions by the
Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social
Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the
Ministry. 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.

47. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. The company has used an accounting software for maintaining its books of account having the feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the software. Also the audit trail is not
disabled/tampered. Further, the audit trail (edit log) is preserved as per the provisions of the Companies Act. The feature of recording
audit trail (edit log) facility at database level is not enabled.

As per our report of even date

For M. Anandam & Co., For and on behalf of Board of Directors

Chartered Accountants

(Firm Regn No: 000125S)

Sd/- Sd/- Sd/- Sd/- Sd/-

M V Ranganath A Prathap Reddy D Ram Reddy A Srinivas Reddy Abhijeet Kothadiya

Partner Executive Chairman Managing Director Whole Time Director & CFO Company Secretary

Membership No. 028031 DIN 00003967 DIN 00003864 DIN 03169721 M No : A68288

Place : Hyderabad Place : Hyderabad Place : Hyderabad Place : Hyderabad Place : Solapur

Date : May 28, 2025 Date : May 28, 2025 Date : May 28, 2025 Date : May 28, 2025 Date : May 28, 2025