1    The Company has capitalised 20 MTPD HX Crystal Project ' 6632 lakhs during FY 2024-25.

2    Asset acquisition includes R&D assets of ' 26.19 lakhs (previous year ' 59.07 lakhs).

3    The Company has leased a portion of land to Bank of Baroda for bank premises at Fertilizernagar & Sikka.Further, the    Company has let out its premises in

Dashrath to Vadodara Gas Limited for which renewal lease agreement is finalised but government approval is under consideration.

4    The Company has acquired land through Government and also through direct negotiations. The entire land is in possession of the Company. In respect of other portion of land acquired through direct negotiations, compensation has been paid at the negotiated price. The Company also holds possession of a portion of land for which no amount has been paid in absence of receipt of awards.

5    The Company established Sikka Jetty at its own cost, which is in operation since 1987. After due discussion with Gujarat Maritime Board (GMB), a consensus was arrived at establishing ownership of jetty with the Company. Thereafter, in terms of resolution passed by GMB, the ownership of the jetty at Sikka was transferred to the Company. However, during 1994, GMB has reversed its earlier decision not supported by resolution and contended that the ownership of the jetty rests with GMB. The Company has made representation to the appropriate authority with regards to the ownership of the jetty with the Company.

The matter of deciding the status of Jetty was under examination at GMB & Government of Gujarat levels since long back. Various meetings were also held and after due diligence on the matter, it is decided by the Board of GMB supported by a resolution to assign the status of Captive Jetty to sikka jetty and the Company has to sign Captive Jetty Agreement with GMB. The matter is under discussion with GMB authorities. At present the Company is in possession of the Jetty and continues to be the owner of the Jetty pending signing of the Agreement.

* Less than a Thousand

a)    There is no change in the no of shares compare to previous year, except where specifically mentioned above under each case.

b)    The equity shares held by the Company in Tunisian Indian Fertilizers S.A., Tunisia (TIFERT) have been pledged to secure the obligations of TIFERT to their lenders.

c)    Investments at fair value through OCI (fully paid) reflect investment in quoted and unquoted equity securities. Refer note 41 for determination of their fair values.

d)    During the year, the company has subscribed 1,44,00,000 equity shares of Face value of ' 10 each at par on the right basis (60% of total right issue) from Vadodara Jal Sanchay Private Limited. (? NIL during FY 2023-24).

e)    During the year, the company has made equity contribution in Gujarat Industries Power Company Ltd. of 19,82,378 equity shares of Face value of ' 10 each. (' NIL during FY 2023-24).

f)    Represents the various defaulted securities having net face value of ' 1912.81 Lakhs received in demat, against the losses make good by the company to GSFC’s EPFTs as per EPFO guideline. (' NIL during FY 2023-24).

g)    The company has provided a loan of USD 2.50 Mn to TIFERT for procurement of critical spares and equipment’s. Provided loan carries an interest of daily average LIBOR plus a margin of 225 basis points. It was provided with a condition of compulsory conversion in equity shares of TIFERT after 3 years from the date of agreement however the term of loan has been extended for further 5 years in total (Maturing in July, 2025) under three different amendment agreements by Sponsors on request of TIFERT. Principal amount of the loan along with unpaid interest will be converted into equity shares of TIFERT at face value after completion of loan term and accordingly the same has been classified as Investment, as in substance the nature is of the investment. The Fair Value of said loan is Nil as on 31^st March 2025 & 31^st March 2024.

h)    Impairment Loss of ' 2200.70 Lakhs has been recognised in the carrying value of investment in Karnalyte Resources Inc. during FY 2024-25 (' NIL during FY 2023-24) under the head “Other Expenses (Note No 35)” in Profit and Loss Account, taking into consideration consistent operating losses booked by the company and its low market capitalisation. As share valuation has been carried out considering the Net Asset Value method, Investment is categorised at Level 3 of the fair value hierarchy.

(i)    The average credit period on sale of goods is 30 to 90 days. No interest is charged on trade receivables up to the expiry of the credit period. Thereafter, interest is charged at 12% per annum on the outstanding balance.

(ii)    The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. Refer note 41 for the provision matrix at the end of the reporting period, ageing of receivable and movement in the expected credit loss allowance.

(iii)    The concentration of credit risk is limited due to the fact that the customer base is large and unrelated. There is no customer constituting more than 10% balance of the total trade receivables as of the Balance Sheet date. Refer note 41 for the credit risk management by the Company.

(iv)    The above balances include trade receivables from related parties ' 3882.6 Lakhs (' 4767.65 Lakhs as on 31 March 2024) Refer note 39.

If the dividend has not been claimed within 30 days from the date of its declaration, the Company is required to transfer the total amount of the dividend which remains unpaid or unclaimed, to a special account to be opened by the Company in a scheduled bank to be called “unpaid Dividend Account”. The unclaimed dividend lying in such account is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years from the date of declaration. Company has transferred Unclaimed Dividend upto FY 2016 - 2017 to IEPF upto March 31,2025.

1.    Capital Reserve: This reserve has been created from amounts forfeited on shares not fully paid up, scheme of capital subsidy for industries in backwards areas, etc. It is not available for distribution of dividend.

2.    Securities Premium: The amount received in excess of face value of the Rights Equity shares issued have been recognised in Share Premium Reserve, etc. It is not available for distribution of dividend.

3.    Capital Redemption Reserve: Capital Redemption Reserve has been created against the redemption of preference shares in earlier years. It is not available for distribution of dividend.

4.    General Reserve: General Reserve represents a reserve other than capital reserve which is not earmarked for a specific purpose.

5.    Retained Earnings: Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.

6.    Other comprehensive income (OCI): OCI comprises items of income and expenses (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by Indian Accounting Standards. The components of OCI include: re-measurements of defined benefit plans, gains and losses arising from investment in equity instruments.

* The Cash credit facility from consortium of banks is secured by hypothecation of stock of raw materials, finished products, packing materials, general stores, spares, book debts etc. of the Company.

Interest rate details for short term borrowings:

(i)    Cash credit accounts carry interest rates ranging from 8.35% to 9.30% p.a.

(ii)    Working capital demand loan carries interest rate ranging from 8.15% to 9.30% p.a.

(iii)    The Company has taken borrowings from banks and utilised them for the specific purpose for which they were taken as at the Balance sheet date. Quarterly statements of current assets filed by the Company with Bank are in agreement with the books of accounts of the Company for the respective periods.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk: The present value of the defined benefit liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s investments.

Longevity Risk: The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary Risk: The present value of the defined benefit liability is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the plan’s liability. b) Defined contribution plans:

Expenses towards Defined Contribution Plans have been recognised under Note 33 under line item ‘’Contributions to Provident, Gratuity and Superannuation Fund (pension) Funds (including provisions)”. They amounted to ' 5653.27 lakhs for FY 2024-25 (' 4722.44 lakhs for FY 2023-24).

Provident Fund contributions are made to the Employees’ Provident Fund Organization (EPFO) for the Baroda Unit and Polymer unit from 01/09/2024 as the Provident Fund trusts associated with these two units were surrendered with effect from 01/09/2024. Provident Fund contributions are made to remaining two trusts for Sikka unit & Fibre unit which are administered by the Company. The interest rate payable to the members of the Trusts shall not be lower than the statutory rate of interest declared by the Central government under the Employees provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company.

40 Segment information

For management purposes, the company is organised into business units based on its products and has two reportable segments, as follows:

1.    Fertilizer products comprising of urea, Ammonium Sulphate, Di-ammonium Phosphate, Ammonium Phosphate Sulphate, NPK (12:32:16), (10:26:26), traded fertilizer products etc.

2.    Industrial products comprising of Caprolactam, Nylon-6, Nylon Chips, Melamine, Methanol, traded industrial products etc.

The Chief Operating Decision Maker (“CODM”) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by the two operating segments. The CODM reviews revenue and gross profit as the performance indicator for both operating segments.

D] As per the directives issued by Department of Fertilizers (DoF), Company needs to report P&K fertilizers as a separate segment in Annual Audited Accounts. Accordingly, as per the DoF evaluation criteria for FY 202425, P&K Fertilizers- Manufacturing Revenue and P&K Fertilizers-Imported Revenue is reported at ' 4947.36 Crores & ' 838.14 Crores respectively. The Segment Result is reported at ' 426.54 Crores for P&K Fertilizers-manufacturing and at ' 10.76 Crores for P&K Fertilizers-Imported.

Note 1 : The Company has invested in the equity instruments of various companies. However, the percentage of shareholding of the Company in such investee companies is very low and hence, it has not been provided with future projections including projected profit and loss account by those investee companies. Hence, the independent valuer appointed by the Company has estimated fair value based on available historical Annual Reports of such companies and other information as available in the public domain. Since the future projections are not available, discounted cashflow approach for fair value determination has not been followed.

Note 2 : In case of some companies, there are no comparable companies valuations available. In light of no information available for future projections, capacity utilisation, commencement of operations, etc., the valuation is based on cost approach.

Transfer out of Level 3

There were no transfers to/from level 3 during the current and previous FY.

C. Financial risk management

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

•    Credit risk;

•    Liquidity risk    ;    and

•    Market risk

i.    Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company manages market risk through a Financial risk management committee, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Audit cum finance committee and Board of Directors. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit cum finance committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

The Company’s exposure to credit 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 the default risk of the industry and country in which customers operate.

The Revenue department has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the Board of Directors.

Goods are sold subject to retention of title clauses, so that in the event of non-payment the Company may have a secured claim. The Company does not otherwise require collateral in respect of trade and other receivables.

The company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The provision matrix of ECL at the end of reporting period is as follows.

Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk, including underlying customers’ credit ratings if they are available.

During the FY 2024-25, impairment provision has reduced by I NR 405.53 Lakhs whereas in FY 2023-24, impairment provision has increased by INR 47.65 lakhs.

Cash and cash equivalents

The Company held cash and cash equivalents of ' 23846.41 lakhs at march 31,2025 (' 51233.33 lakhs at march 31,2024). The cash and cash equivalents are held with approved scheduled banks.

Derivatives

The derivatives deals are done with AD category banks in OTC market and registered brokers in ETCD market.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing 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.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments.Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of company’s investments. Thus, company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to control the financial risks associated with the Foreign Exchange/ Currency rate movements through a sophisticated Foreign exchange Risk management System.

Currency risk

The Company is exposed to currency risk on account of its import payables and borrowings in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts, Options and futures to hedge its currency risk, most with a maturity of less than one year from the reporting date.

The company is using derivative instruments which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

*    As at March 31,2025, ' 738.19 lakhs (' 578.41 Lakhs as at 31^st March,2024) (refer note no. 27) towards unspent CSR amount for various ongoing projects is transferred to separate bank account within 30 days from close of financial year and the same is included under the head Donation and Contribution in Other Expense (Note No. 35).

#    ' 1,457.74 lakhs includes ' 967.30 lakhs accounted under the head Donations and Contributions in Other expenses (Note No. 35), ' 490.44 lakhs accounted under various other heads of the Statement of Profit & Loss. (In FY 23-24, ' 1,558.43 lakhs included ' 1,122.13 lakhs accounted under the head Donations and Contributions in Other expenses, ' 229.46 lakhs under various other heads of the Statement of Profit & Loss and ' 206.84 lakhs set-off from excess CSR spending during earlier years.)

** Refer Note no 39 for Related Party Transactions.

44. Details on derivative instruments and unhedged foreign currency exposure

(I)    (a) Forward exchange contracts and options(being derivative instruments) which are not intended for trading

or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

The nature of services and its disclosure of timing of satisfaction of performance obligation is mentioned in para 3.1 of Note No 3.There are no contract assets in the Balance Sheet. Contract Liabilities in the Balance Sheet constitutes advances from customers. The Company expects to recognise such revenue in the next financial year. There were no significant changes in contract liabilities during the reporting period except amount as mentioned in the table and explanation given above. Under the payment terms generally applicable to the Company’s revenue generating activities, prepayments are received only to a limited extent. Typically, payment is due upon or after completion of delivery of the goods.

46. Other Statutory Disclosures:

i.    The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

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

iii.    The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

iv.    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 Intermediaries shall:

(a)    directly or indirectly lend or invest in other persons or entities identifed 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.

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

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

(b)    provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

vi.    The Company has not traded    or invested in Crypto currency or virtual Currency during the financial year.

vii.    The Company has complied    with the number of layers prescribed under clause (87) of section 2 of the

Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

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

ix.    The Company does not have    any transaction which is not recorded in the books of accounts but 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).

x.    Disclosure as per regulation 34(3) and 53(f) of Securities and Exchange board of India (listing obligations and disclosures requirements) regulations, 2015:

a) loans & Advances in the nature of loans to subsidiaries is ' Nil (PY: ' Nil)

xi.    Details of outstanding towards MSMED, consisting of Micro and Small enterprises falling under either Trade Payables (Note 25) or Creditors for Capital Goods (Note 26) :

48. Other Matters

(i)    With respect to Fibre Unit and Polymer Unit, the Net Realizable Value of the units is higher compared to its carrying value as on March 31,2025.

(ii)    Previous year figures are regrouped / reclassified wherever required in order to make it comparable.

(iii)    The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the financial statements to determine the necessity for recognition and / or reporting of any of these events and transactions in the financial statements. As of 20^th may, 2025 there were no subsequent events to be recognized or reported that are not already disclosed.