(m) Provisions

Provisions are recognised when the Company has
a present obligation (legal or constructive), as a
result of a past event, 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.

When the Company expects some or all of a
provision to be reimbursed, for example, under
an insurance contract, the reimbursement is
recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the
standalone Statement of Profit and Loss. net of any
reimbursements.

If the effect of time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is
used, the increase in the provision due to the
passage of time is recognized as a finance cost.
Provisions are reviewed at each balance sheet
date and are adjusted to reflect the current best
estimates.

(n) Employee benefits

Employee benefits consist of provident fund,
superannuation fund, gratuity fund, compensated
absences, long service awards, post-retirement
medical benefits, directors' retirement obligations
and family benefit scheme.

Post-employment benefit plans

Defined contribution plans

Payments to a defined contribution retirement
benefit scheme for eligible employees in the form
of provident fund, pension scheme, employee state
insurance and superannuation fund are charged
as an expense as they fall due. Such benefits are
classified as Defined Contribution Schemes as the
Company does not carry any further obligations,
apart from the contributions made.

Defined benefit plans

For defined benefit schemes in the form of gratuity
fund, the cost of providing benefits is actuarially
determined using the projected unit credit
method, with actuarial valuations being carried
out at each Balance Sheet date. The retirement
benefit obligation recognised in the standalone
balance sheet represents the present value of
the defined benefit obligation as reduced by the
fair value of scheme assets. The present value of
the said obligation is determined by discounting
the estimated future cash outflows, using market
yields of government bonds of equivalent term
and currency to the liability. The interest income /
(expense) are calculated by applying the discount
rate to the net defined benefit liability or asset.

The net interest income / (expense) on the
net defined benefit liability is recognised in
the standalone Statement of Profit and Loss.
Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling (if any), are
recognised immediately in the standalone Balance
Sheet with a corresponding charge or credit to
retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified
to the standalone Statement of Profit and Loss in
subsequent periods. Changes in the present value
of the defined benefit obligation resulting from
plan amendments or curtailments are recognised
immediately in the standalone Statement of Profit
and Loss as past service cost.

Short-term employee benefits

The short-term employee benefits expected to
be paid in exchange for the services rendered by
employees is recognised during the period when
the employee renders the service. These benefits
include compensated absences such as paid
annual leave and performance incentives which
are expected to occur within twelve months after
the end of the period in which the employee
renders the related services.

The cost of compensated absences is accounted as
under:

(a) In case of accumulating compensated
absences, when employees render service
that increase their entitlement of future
compensated absences; and

(b) In case of non - accumulating compensated
absence, when the absences occur.

Other long-term employee benefits

Compensated absences which are not expected
to occur within twelve months after the end of the
period in which the employee renders the related
services are recognised as a liability. The cost of
providing benefits is actuarially determined using

If the hedging relationship no longer meets
the criteria for hedge accounting, then hedge
accounting is discontinued prospectively. If the
hedging instrument expires or is sold, terminated
or exercised, the cumulative gain or loss on the
hedging instrument recognised in cash flow
hedging reserve till the period the hedge was
effective remains in cash flow hedging reserve until
the underlying transaction occurs. The cumulative
gain or loss previously recognised in the cash
flow hedging reserve is transferred to the
Statement of Profit and Loss upon the occurrence
of the underlying transaction. If the forecasted
transaction is no longer expected to occur, then the
amount accumulated in cash flow hedging reserve
is reclassified in the Statement of Profit and Loss.

Derivatives that are not designated as hedges:
The Company enters into certain derivative
contracts to hedge foreign exchange risks which
are not designated as hedges. Such derivative
contracts are accounted for at each reporting date
at fair value through the standalone Statement of
Profit and Loss.

(p) Cash and cash equivalents

Cash and cash equivalents in the balance
sheet comprise cash at banks and on hand and
short-term deposits with an original maturity
of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above.

(q) Cash dividend

The Company recognizes a liability to make cash
distributions to equity shareholders when the
distribution is authorized and the distribution is no
longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized
when it is approved by the shareholders of the
Company.

(r) Government Grant

Government grants are recognised where there
is reasonable assurance that the grant will be
received and all attached conditions will be
complied with. When the grant relates to an
expense item, it is recognised as income on a
systematic basis over the periods that the related
costs, for which it is intended to compensate, are
expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the
expected useful life of the related asset.

When loans or similar assistance are provided by
governments or related institutions with an interest
rate below the current applicable market rate, the
effect of this favourable interest is regarded as a
government grant.

(s) Income taxes

Current income tax assets and liabilities are
measured at the amounts expected to be recovered
from or paid to the taxation authorities in
accordance with the Income Tax Act, 1961. The tax
rates and tax laws used to compute the amounts
are those that are enacted or substantively enacted
at the reporting date.

Current income tax relating to items recognized
outside profit and loss is recognized outside profit
and loss (either in other comprehensive income
or in equity). Current tax items are recognized in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation and
establishes provisions where appropriate.

Deferred income tax is provided using the liability
method on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes at
the reporting date. Deferred tax liabilities are
recognized for all taxable temporary differences
except when the deferred tax liability arises from

the initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss; or in respect of taxable temporary
differences associated with investment in
subsidiaries, associates and interests in joint
ventures, when the timing of the reversal of
temporary differences can be controlled and it is
probable that the temporary differences will not
reverse in the foreseeable future.

Deferred tax assets on deductible temporary
differences, the carry forward of unused tax
credits and any unused tax losses are recognized
to the extent that there is reasonably certainty that
taxable profits will be available against which the
deductible temporary differences and the carry
forward of unused tax credits and tax losses can be
utilized, except when the deferred tax asset relating
to the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is
reviewed at each reporting period and is reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available to allow
all or part of the deferred tax asset to be utilized.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognized to the
extent that it has become reasonably certain that
future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset or liability is settled based
on tax rates and tax laws that have been enacted
or substantively enacted at the reporting date.
Deferred tax relating to items recognized outside
profit and loss is recognized outside profit and
loss (either in other comprehensive income or
in equity). Deferred tax items are recognized in
correlation to the underlying transaction either in
OCI or directly in equity.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.

(t) Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable
to the equity shareholders by the weighted
average number of equity shares outstanding
during the period. For the purposes of calculating
diluted earnings per share, the net profit for the
period attributable to equity shareholders and
the weighted average number of equity shares
outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

(u) Segment reporting

Based on the "Management approach” as
defined in Ind AS 108: Operating Segments, the
Chief Operating Decision Maker evaluates the
Company's performance and allocates resources
based on an analysis of various performance
indicators by business segments. Inter-segment
sales and transfers are reflected at market prices.

Segment policies

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the standalone financial
statements as a whole. Common allocable costs
are allocated to each segment on an appropriate
basis. Revenues, expenses, assets and liabilities,
which are common to the enterprise as a whole
and are not allocable to segments on a reasonable
basis, have been treated as "unallocated revenues/
expenses/ assets/ liabilities", as the case may be.

(v) Business combinations

The Company accounts for the common control
transactions in accordance with the 'pooling of
interests' method prescribed under Ind AS 103
- Business Combinations for common control
transactions where all the assets and liabilities

of transferor companies would be recorded at the
book value as at the Appointed date.

(w) Contingent Liability and Contingent Assets

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the Company or a present
obligation that is not recognized because it is not
probable that an outflow of economic resources will
be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the standalone financial statements.

A contingent asset is not recognized unless
it becomes virtually certain that an inflow of
economic benefits will arise. When an inflow
of economic benefits is probable, contingent
assets are disclosed in the standalone financial
statements.

Contingent liabilities and contingent assets are
reviewed at each balance sheet date.

(x) Changes in material accounting policies

There have been no changes in accounting policies
during the financial year 2024-25.

(y) Recent Pronouncements

Recent Accounting Pronouncements

The Ministry of Corporate Affairs ("MCA") notifies
new standard or amendment 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
notified amendments to the existing standards:

1. Ind AS 117 - Insurance Contracts

2. Ind AS 116 - Sale and Leaseback

The amendments of the above standard are not
expected to have material impact for the Company.

Other Information:

The company has leases mainly for Corporate building, Director building, guest houses, plant & machinery, office equipment
and some furniture items. These lease contracts provide for payment to increase each year by inflation.

Company as a Lessor:

The Company has given building on operating lease, Lease are renewed only on mutual consent and at prevalent market
price. Operating lease rent and incidental income recognised in the Statement of Profit and Loss ' 2,094 Lakhs (31 March 2024
' 1,806 Lakhs). (Refer Note No 28)

* Deemed Investment is on account of accounting done in books for fair valuation of corporate guarantee issued to banks
on behalf of subsidiary and step-down subsidiary companies.

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

** During the year Compulsorily Convertible Debentures were converted into 14,90,439 equity shares at a value of ' 1,980/-
per share of Mahadhan Agritech Limited.

*** Investment in Deepak International Ltd ' 69 lakhs (31 March 2024'69 lakhs) has been fair valued at ' Nil

Refer Note 37(i) for Fair value measurements of financial assets and liabilities and refer Note 37(ii) for Fair value hierarchy
disclosures for financial assets and liabilities.

# The composite scheme between Mahadhan AgriTech Limited (MAL) and Deepak Mining Solutions Limited (DMSL) got
approved by NCLT on 28^th June 2024 and was made effective 1^st August 2024. The Appointed date of Scheme was 1
January 2022. Consequently Technical Ammonium Nitrate business including all assest, liabilities, permits, licences and
contracts etc has been transferred to DMSL. The Investment were bifurcated between MAL and DMSL as per terms of
the Scheme.

The Company has only one class of equity shares having par value of ' 10 per share. Holder of each equity share is entitled to
one vote per share.

The Company declares and pays dividend in Indian Rupees except in the case of overseas shareholders where dividend is paid
in respective foreign currencies considering foreign exchange rate applied at the date of remittance. The dividend proposed by
the Board of Directors is subject to the approval of shareholders in the Annual General Meeting.

In the event of liquidation of the Company the holders of equity share will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts in proportion to their shareholding. The distribution will be in proportion
to the numbers of equity shares held by the shareholder.

(a) Securities premium: Amount received in excess of face value of the equity shares is recognized in Securities Premium.
The reserve is eligible for utilisation in accordance with the provisions of the Companies Act, 2013.

(b) Capital redemption reserve: The Company had issued redeemable preference shares and as per the provisions of the
Act where preference shares are redeemed out of divisible profits, an amount equal to the nominal value of shares so
redeemed must be transferred to capital redemption reserve, out of divisible profits.

(c) General reserve: This represents appropriation of profits by the Company to General Reserve and is available for
distribution of dividend.

(d) Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders.

a) The term loan (i) and (v) has been availed for financing of Nitric Acid plant at Dahej. The term loan is secured by pari passu
charge on the land & building and hypothecation of all the present & future immovable fixed assets and intangible assets
pertaining to Nitric Acid project at Dahej.

b) The term loan (ii) has been availed to shore up the net working capital of the Company. The term loan is secured by pari
pasu charge on immovable property situated at Yerwada Pune belonging to joint operation, M/s Yerrowda Investments
Limited (YIL) with the subsisting mortgage/charge thereon in favour of the Lender for its Corporate Loan of ' 400 cr
sanctioned to Mahadhan AgriTech Limited. Corporate Guarantee of M/s Yerrowda Investments Limited (YIL) to the extent
of the value of Immovable property is offered to Bank of Baroda.

c) The term loan (iii) and (iv) has been availed for financing of upcoming Nitric Acid project at Dahej. The term loan is secured
by pari passu charge on the land & building and hypothecation of all the present & future immovable fixed assets and
intangible assets pertaining to upcoming Nitric Acid project at Dahej along with sharing of pari passu charge on movable
and immovable assets with existing lenders of Nitric Acid plant situated at Dahej as mentioned in (a).

d) The Company has used the borrowings taken from banks and financial institution for the specific purposes for which they
were taken as at the balance sheet date.

e) The Company has registered all the required charges with Registrar of Companies within the statutory period.

f) The Company has not received any funds from any person or entity, including foreign entities ("Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company has complied the relevant provisions of the Companies Act 2013 and the transactions are not violative of the
Prevention of Money Laundering Act 2002 (15 of 2003).

h) The Company has filed the statements of current assets as per the sanction letters with the banks and are in agreement
with the books of account.

(B) Defined Benefit Plans
i. Gratuity

The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to fifteen days
salary last drawn for each completed year of service. The same is payable on termination of service or retirement whichever
is earlier. The benefit vests after five years of continuous service. The gratuity plan is governed by the payment of Gratuity
Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of
benefits provided depends on the member's length of service and salary at retirement age.

In accordance with Ind AS 19 "Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity.
The discount rate assumed is 6.70% p.a. (31 March 2024: 7.20% p.a.) which is determined by reference to market yield
of Government bonds at the Balance Sheet date. The retirement age has been considered at 60 years (31 March 2024: 60
years) and mortality table is as per IALM (2012-14) (31 March 2024: IALM (2012-14)).

The estimates of future salary increases, considered in actuarial valuation is 9% p.a. (31 March 2024: 8% p.a), taking
into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment
market.

Expected contribution for next yean

The company intends to contribute ' 515 lakhs in 2025 (' 523 lakhs in 2024)

RISK EXPOSURE AND ASSET LIABILITY MATCHING

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain
long term obligations to make future benefit payments.

1. Liability Risks

a. Asset-Liability Mismatch Risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration
with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest
rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise
can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of
liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainities in
estimating this increasing risk.

2. Asset Risks

Plan assets are maintained in a trust fund partly managed by a public sector insurer viz; LIC of India. The company has
opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company has no control
over the management of funds but this option provides a high level of safety for the total corpus. A single account is
maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and
inflation risk are taken care of.

ii. Defined pension benefits

The Company has a Post Retirement Benefit plan, which is a defined benefit retirement plan, according to which executives
superannuating from the service after ten years of service are eligible for certain benefits like medical, fuel expenses,
telephone reimbursement, club membership etc. for specified number of year. The liability is provided for on the basis of
an independent acturial valuation.

In accordance with Ind AS 19 "Employee Benefits”, an actuarial valuation has been carried out in respect of post
retirement benefits. The discount rate assumed is 6.70% p.a. (31 March 2024: 7.20% p.a) which is determined by reference
to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 60 years (31
March 2024: 60 years), withdrawal rate is 10% p.a. (31 March 2024: 10% p.a.) and mortality table is as per IALM (2012-14)
(31 March 2024: IALM (2012-14)).

Performance obligations

"The Company satisfies its performance obligations pertaining to the sale of products at a point in time when the control
of goods is actually transferred to the customer. No significant judgment is involved in evaluating when a customer obtains
control of promised goods. The contract is a fixed price contract subject to refund due to shortages and discounts during the
mode of transportation and do not contain any financing component. The payment is generally due within 30-90 days.

The Company is obliged to give refunds due to shortages and discounts. There are no other significant obligations attached in
the contract with customer.

Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognised till period end. Further,
the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have
any performance obligations that have an original expected duration of one year or less or any revenue stream in which
consideration from a customer corresponds directly with the value to the customer of the entity's performance completed to
date.

Determining the timing of satisfaction of performance obligations

There is no significant judgement involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the
contract with the customer. There is no variable consideration involved in the transaction price except for refund due to
shortages and discounts which is adjusted with revenue.

(iii) Valuation technique to determine fair value

The following methods and assumptions were used to estimate the fair values of financial instruments:

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

b) The investment measured at fair value and falling under fair value hierarchy Level 3 pertains to investment in
equity shares of Avaada MHBudhana Private Limited which is regulated by the terms stated in the share purchase
agreement. These shares held by the Company are subject to specific limitations regarding the Company's ability
to sell them and the permissible valuation at which they can be sold. Given the nature of these restrictions and
the management's overall intention concerning the equity shares, the fair value attributed to such shares by the
Company is equivalent to their original cost.

c) The fair values of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date, NAV represents the price at which the
issuers will issue further units of mutual fund and the price at which issuers will redeem such units from investor.

d) The Company enters into derivative financial instruments with various counterparties. The fair value of derivative
financial instrument is based on observable market inputs including currency spot and forward rate, yield curves,
currency volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying instruments
etc. and use of appropriate valuation models.

Note 38 : FINANCIAL RISK MANAGEMENT

Risk management framework

The Company's Board of Directors have overall responsibility for the establishment and oversight of the Company's risk
management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit committee of the Board with top management oversee the formulation and implementation of the Risk management
policies. The risk are identified at business unit level and mitigation plans are identified, deliberated and reviewed at appropriate
forums.

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

- credit risk;

- liquidity risk; and

- market risk.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails

to meet its contractual obligations, and arises principally from the Company's receivables from customers, loans and

investments.

The carrying amount of financial assets represents the maximum credit risk exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness
before the payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they
are available, financial statements, credit agency information, industry information and business intelligence. Sale limits
are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the
appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether
they are an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic
location, industry, trade history with the Company and existence of previous financial difficulties.

Expected credit loss for trade receivables:

The Company based on internal assessment which is driven by the historical experience/ current facts available in
relation to default and delays in collection thereof, considers the credit risk for trade receivables to be low. The Company
estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6
month (net of expected credit loss allowance) is ' 37 Lakhs (31 March 2024: ' 396 Lakhs).

Expected credit loss on financial assets other than trade receivables:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be
high quality assets with negligible credit risk. The management believes that the parties from which these financial assets
are recoverable, have strong capacity to meet the obligations and hence the risk of default is negligible and accordingly no
provision for excepted credit loss has been provided on these financial assets.

ii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to manage liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company's treasury department is responsible for managing the short term and long term liquidity requirements.
Short term liquidity situation is reviewed periodically by treasury. Longer term liquidity position is reviewed on a regular
basis by the Board of Directors and appropriate decisions are taken according to the situation.

(ii) Sensitivity

The sensitivity analysis below has been determined based on the exposure to interest rates for floating rate liabilities
assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Company's profit
for the year ended 31 March 2025 before tax would decrease / increase by ' 195 lakhs (for the year ended 31 March 2024:
decrease / increase by ' 164 lakhs). This is mainly attributable to the Company's exposure to interest rates on its variable
rate borrowings.

Note 39 : CAPITAL MANAGEMENT
(a) Risk Management

The Company's objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for its shareholders and
benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents and other bank balances) and divided by Total equity (as
shown in the Balance Sheet).

The company is exposed to commodity price risk due to fluctuations in the prices of Propylene and Natural Gas, which are
influenced by movements in global indices. To mitigate this risk, the company uses option contracts as a hedging strategy.
Propylene exposure is hedged through option contracts on related commodities such as Propane and Butane, while Natural
Gas exposure is hedged using Brent Crude contracts.

For Hedges of this commodity purchases, the Company entered into a Hedge relationships where the critical terms of the
Hedging instrument match exactly with the terms of the Hedge item. The Company therefore performs a qualitative assessment
of effectiveness. There were no ineffectiveness during financial years ended 31 March 2025 and 31 March 2024 in relation to
commodity rate hedge.

The Company has received assessments orders and necessary appeals/rectification, as is applicable, have been filed which are
pending for disposal. Based on advice of the independent tax experts, management is of the view that aforesaid matters will
not have any significant impact on the Company's financial position and hence no further provision has been recognised as of
31 March 2025. Appropriate disclosure have been made under Contingent liabilities (Note 41).

Note 47

Segment information has been presented in the Consolidated Financial Statements as permitted by Indian Accounting Standard
Ind AS 108, Operating Segments as notified under the Companies (Indian Accounting Standard) Rules, 2015.

Note 48

The management based on legal advise is confident that the demand of Entry Tax to the extent of 9.5% of the purchase price
of the Natural Gas is revenue neutral since full set-off is available under the MVAT Act. The Company, therefore, had made a
provision only of 3% of the demand amount including interest. The penalty on the same had been disclosed under contingent
liabilities.

Note 49 OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

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

(iii) The Company does not have any transaction which is not recorded in the books of account 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).

(iv) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government
authority.

(v) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of account.

(vi) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause
(87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

The Company has also made deposits with banks on which it is earning return of around 5.25% to 7.5% (31 March 2024: 5.75%
to 7.5%).

Note 52

Previous period's figures have been reclassified/ regrouped wherever necessary.

Notes 3 to 52 form an integral part of the standalone financial statements.

As per our report of even date attached For and on behalf of Board of Directors of Deepak Fertilisers And

Petrochemicals Corporation Limited

For P G BHAGWAT LLP S. C. Mehta Subhash Anand

Chartered Accountants Chairman and Managing Director President & CFO

Firm Registration No.: 101118W/W100682 DIN: 00128204 Place: Pune

Place: Pune

Abhijeet Bhagwat Sujal Anil Shah Rabindra Purohit

Partner Director Company Secretary

Membership No.: 136835 DIN: 00058019 Membership No: FCS-4680

Place: Pune Place: Mumbai Place: Pune

Date: 22 May 2025 Date: 22 May 2025