Polychem Ltd — AGM Information 2025

Jul 17, 2025

POLYCHEM LIMITED

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CIN: L24100MH1955PLC009663

REGD. OFFICE: 7. JAMSHEDJI TATAROAD. CHURCHGATE RECLAMATION. MUMBAI-400 020 Ph: 022 - 2282 0048, E-mail: polychemltd@kilachand.com , Website: www.polychemltd.com

To 17.07.2025 Head Listing Compliance Bombay Stock Exchange Ltd. PhirozeJeejeebhoy Towers, Dalal Street, Mumbai - 400 001

Company Code: 506605

Dear Sir,

Sub: 68[th] Annual Report of Polychem Limited

The 68[th] Annual General Meeting of our Company is scheduled to be held on Tuesday, 12[th] August, 2025 at 11.00 a.m. through Video Conference / other audio visual means (OAVM).

Further, in Compliance with Regulation 34(1) of SEBI (Listing obligation and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), copy of Annual report for the Financial Year 2024-25 is attached herewith.

Kindly take the above on record.

Thanking you,

Yours faithfully,

For POLYCHEM LIMITED.,

DEEPALIBEN Digitally signed by DEEPALIBEN VISHAL VISHAL CHAUHAN Date: 2025.07.17 CHAUHAN 14:37:42 +05'30'

(DEEPALI V. CHAUHAN) COMPANY SECRETARY AND COMPLIANCE OFFICER Mem No. A38273

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POLYCHEM LIMITED

CIN: L24100MH1955PLC009663

(INCORPORATED UNDER THE INDIAN COMPANIES ACT, VII OF 1913)

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|---|---|---|
|BOARD OF DIRECTORS:|MR. TANIL R. KILACHAND|(DIN 00006659) Chairman|
|MR. PARTHIV T. KILACHAND|(DIN 00005516) Managing Director|
|MR. NANDISH T. KILACHAND|(DIN 00005530) Non – Executive Director|
|MR. ANAND A. DALAL|(DIN 00353555) Independent Director|
|MS. SALONI A. JHAVERI|(DIN 00029474) Independent Director|
|MR. RAJAN P. VAHI|(DIN 00033940) Independent Director|
|MR. ATUL H. MEHTA|(DIN 00005523) Dy. Managing Director|
|(upto 19th June, 2024)|
|MR. VINAYAK V. SAHASRABUDHE (DIN 00296976) Independent Director|
|(upto 4th August, 2024)|
|MR. CHETAN R. DESAI|(DIN 03246010) Independent Director|
|(upto 4th August, 2024)|
|MS. NIRMALA S. MEHENDALE|(DIN 01230600) Independent Director|
|(upto 24th March, 2025)|
|MR. YOGESH S. MATHUR|(DIN 01059977) Independent Director|
|(upto 30th March, 2025)|
|COMPANY SECRETARY & COMPLIANCE OFFICER:|MS. DEEPALI V. CHAUHAN|
|CHIEF FINANCIAL OFFICER:|MS. KANAN V. PANCHASARA|
|STATUTORY AUDITORS:|M/s. NAYAN PARIKH & CO.|Chartered Accountants|
|REGISTRAR & TRANSFER AGENTS:|M/s. MUFG INTIME INDIA PVT LTD|
|C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,|
|Vikhroli (W), Mumbai - 400 083. Tel: 022 4918 6000,|
|Email: rnt.helpdesk@in.mpms.mufg.com, Website: https://in.mpms.mufg.com/|
|REGISTERED OFFICE:|7, Jamshedji Tata Road, Churchgate Reclamation,|
|Mumbai - 400 020. Tel: 022 2282 0048,|
|Email: polychemltd@kilachand.com, Website: www.polychemltd.com|
|WORK:|SPECIALTY CHEMICALS|
|W-91, MIDC Phase II, Sonarpada,|
|Dombivali (E), 421 203,|
|Maharashtra, India.|

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Contents: Consolidated
Notice 3 Auditors’ Report 94
E-voting Instructions 12 Annexure to the Auditors’ Report 98
Directors’ Report 17 Balance Sheet 100
Annexures to the Directors’ Report 23
Management Discussion & Analysis Report 31 Profit and Loss Account 101
Corporate Governance Report 33 Cash Flow Statement 103
Notes to Financial Statements 105
Standalone
Form AOC - 1 141
Auditors’ Report 47
Annexure to the Auditors’ Report 51
Balance Sheet 56
Profit and Loss Account 57
Cash Flow Statement 59
Notes to Financial Statements 61
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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

N O T I C E

Notice is hereby given that the Sixty – Eighth Annual General Meeting of the Members of POLYCHEM LIMITED will be held on Tuesday, 12[th] August, 2025 at 11.00 a.m. via two – way Video Conferencing (‘VC’) facility or other audio video means (‘OAVM’) to transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt:

2. a) The audited Standalone financial statements of the Company for the financial year ended 31[st] March, 2025, including the audited Standalone Balance Sheet as at 31[st] March, 2025, the Statement of Profit and Loss and Cash Flow Statement, for the year ended on that date and the reports of the Board of Directors (the Board) and Auditors thereon.

3. b) The audited Consolidated financial statements of the Company for the financial year ended 31[st] March, 2025, including the audited Consolidated Balance Sheet as at 31[st] March, 2025, the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date and the report of Auditors thereon.

4. To declare dividend of Rs 20/- per equity share of Rs 10/- each for the financial year ended 31st March, 2025.

5. To appoint a Director in place of Mr. T. R. Kilachand (00006659), who retires by rotation and being eligible, offers himself for re-appointment.

SPECIAL BUSINESS:

1. Appointment of Ms. Ragini Chokshi & Co. Company Secretaries, Mumbai (Firm Regn No. 92897) as Secretarial Auditors of the Company:

To consider and if thought fit, to pass with or without modification/s, the following resolution as an Ordinary resolution :

“RESOLVED THAT pursuant to the provisions of section 204 and other applicable provisions of the Companies Act, 2013, read with the rules made thereunder [including any statutory modification or re-enactment thereof for the time being in force], Regulation 24A and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”) read with Circulars issued thereunder from time to time and as recommended by the Audit Committee and Board of Directors, M/s Ragini Chokshi & Co., Company Secretaries, Mumbai (Firm Regn No. 92897) be appointed as the Secretarial Auditors of the Company for a term of 5 consecutive years from FY 2025-26 till FY 2029-30 to conduct the Secretarial Audit of the Company on such terms and conditions and remuneration to be determined by the Board of Directors of the Company (referred to as the Board which expression shall include any Committee thereof or person(s) authorized by the Board) and to avail any other services, certificates, reports, or opinion as may be permissible under applicable laws and as per details set out in the explanatory statement annexed hereto.”

“RESOLVED FURTHER THAT the Board of Directors be and are hereby authorized to take such steps and do all such acts, deeds, matters, and things as may be considered necessary, proper and expedient to give effect to this Resolution.”

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

1. Payment of commission not exceeding 1% of net profit to Non-Executive Directors of the Company for a period of 3 years i.e. FY 2025-26, FY 2026-27 and FY 2027-28.

To consider and if thought fit, to pass with or without modification/s, the following resolution as an Ordinary resolution :

“RESOLVED THAT pursuant to the provisions of section 197, 198 and any other applicable provisions of the Companies Act, 2013, read with rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof for time being in force), and Regulation 17(6) of SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 and subject to availability of net profits at the end of each financial year, the consent of the members be and is hereby accorded for commission not exceeding 1% of net profits of the Company per annum, be paid to and distributed amongst the NonExecutive Directors of the Company for a period of three years for each financial years 2025-26, 2026-27 and 2027-28 in such proportion or manner as may be decided by the Board of Directors of the Company, in addition to the sitting fees and reimbursement of expenses for attending the meetings of the Board/Committee thereof.”

“RESOLVED FURTHER THAT the Board be and is hereby authorized to do all such acts, deeds, matters and things and execute all such documents, instruments and writings as may be required to give effect to aforesaid resolution.”

Registered Office: 7, Jamshedji Tata Road, Churchgate Reclamation, Mumbai – 400 020. CIN: L24100MH1955PLC009663 Tel : 022 - 22820048 Email id : polychemltd@kilachand.com website : www.polychemltd.com

By Order of the Board of Directors

DEEPALI V. CHAUHAN Company Secretary & Compliance Officer ACS No.: 38273

Mumbai, May 14, 2025.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES:

• (a) An Explanatory Statement pursuant to section 102 of the Companies Act, 2013 and Regulation 36(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 relating to special business under Item nos. 4 and 5 to be transacted at the meeting is annexed hereto.

• (b) The Ministry of Corporate Affairs (MCA) vide its General Circular Nos. 14/2020 dated April 8, 2020, 17/2020 dated April 13, 2020, 20/2020 dated May 5, 2020, and subsequent circulars issued in this regard, the latest being 09/2024 dated September 19, 2024 (collectively referred to as ‘MCA Circulars’) has permitted the holding of the Annual General Meeting (AGM) through Video Conferencing (‘VC’) / Other Audio Visual Means (‘OAVM’), without the physical presence of the Members at a common venue. Further, the Securities and Exchange Board of India (‘SEBI’) vide its circulars dated May 12, 2020, and subsequent circulars issued in this regard, the latest being October 3, 2024 (‘SEBI Circulars’) has provided certain relaxations from compliance with certain provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’). In Compliance with the provisions of the Companies Act, 2013 (‘the Act’), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) and MCA Circulars, the 68[th] AGM of the Company is being held through VC/OAVM on Tuesday, 12[th] August, 2025 at 11.00 a.m. The deemed venue for the 68[th] AGM shall be the Registered Office of the Company.

• (c) Further, pursuant to the MCA and SEBI Circulars, the Notice of the AGM along with the Annual Report for FY 2024-25 is sent in electronic form only to those Members whose email addresses are registered with the Company/ Depositories as of 1[st] cut-off date i.e. Tuesday, 1[st] July, 2025. The Notice calling the 68[th] AGM has been uploaded on the website of the Company at www.polychemltd.com. The Notice can also be accessed from the website of the Bombay Stock Exchange at www.bseindia. com and NSDL (agency for providing the Remote e-Voting facility) at www.evotng.nsdl.com. A letter providing the web-link for accessing the Annual report, including the exact path, is being sent to those members who have not registered their email address with the Company.

• (d) Pursuant to the provisions of the Companies Act, 2013, a Member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not be a Member of the Company. Since this AGM is being held pursuant to the MCA Circulars through VC or OAVM, physical attendance of Members has been dispensed with. Accordingly, in terms of the above-mentioned MCA and SEBI circulars, the facility for appointment of proxies by the Members will not be available for the AGM and hence the Proxy Form, Attendance Slip and AGM route map are not annexed to this Notice.

• (e) Members attending the meeting through VC or OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act 2013.

• (f) The Members can join the AGM in the VC/ OAVM mode 30 minutes before and 15 minutes after the scheduled time of the commencement of the Meeting by following the procedure mentioned on page 16. The facility of participation at the AGM through VC/OAVM will be made available for 1000 members on first come first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis.

• (g) Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, the Company is providing facility of remote e-voting to its Members in respect of the business to be transacted at the AGM the details of which are available on page No. 12.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (h) Ms. Ragini Chokshi of Ragini Chokshi & Co., Practicing Company Secretary (CP 1436) has been appointed as the Scrutinizer to scrutinize the voting and remote e-voting process in a fair and transparent manner.

• (i) Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) intending to send their authorised representative to attend the AGM through VC or OAVM or to vote through remote e-voting, pursuant to Sections 112 and 113 of the Act, are requested to send a certified copy of the board resolution to the Scrutinizer by e-mail at mail@raginichokshi.com with a copy marked to evotng@nsdl.com and polychemltd@kilachand.com, authorising their representative to attend and vote on their behalf at the AGM or they can also upload their Board Resolution / Power of Attorney / Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under “e-Voting” tab in their login.

• (j) Any person, who acquires shares of the Company and becomes member of the Company after sending of the Notice and holding shares as of the 2[nd] cut-off date i.e. 5[th] August, 2025 may obtain the login ID and password by sending an email to evotng@nsdl.com or polychemltd@kilachand.com by mentioning their Folio No. / DP ID and Client ID No. However, if you are already registered with NSDL for e-voting then you can use your existing user ID and password for casting your vote. If you forget your password, you can reset your password by using “Forget User Details/Password” option available on www.evotng. nsdl.com

• (k) In case of joint holder attending the Meeting, only such joint holder who is higher in the order of names will be entitled to vote.

• (l) All documents referred to in the accompanying notice and explanatory statements, the Register of Directors and Key Managerial Personnel and their shareholding, maintained under Section 170 of the Companies Act, 2013 will be available electronically for inspection by the members during the AGM.

• (m) Additional information, pursuant to Regulation 36(3)(a) of the LODR Regulations, 2015 and Secretarial Standard - 2 on General Meetings issued by the Institute of Company Secretaries of India (‘ICSI’), in respect of the director seeking reappointment at the AGM is provided on page 10.

• (n) The Register of Members and Share Transfer Book will remain closed from Wednesday, 6[th] August, 2025 to Tuesday, 12[th] August, 2025 (both days inclusive) in terms of provision of section 91 of Companies Act, 2013.

• (o) Dividend of Rs 20/- per equity share of Rs 10/- each (200%), if declared at the Meeting, will be credited / dispatched subject to deduction of income-tax at source wherever applicable on or after 12[th] August, 2025 to those members whose names shall appear on the Company’s Register of Members on Record date i.e. Tuesday, 1[st] July, 2025.

• (p) Pursuant to the Finance Act, 2020, dividend income will be taxable in the hands of the Shareholders w.e.f. April 1, 2020 and the Company is required to deduct Tax At Source (“TDS”) from dividend paid to the Members at prescribed rates in the Income Tax Act, 1961 (‘the IT Act’). In general, to enable compliance with TDS requirements, Members are requested to complete and / or update their Residential Status, PAN, Category as per the IT Act with their Depository Participants or in case shares are held in physical form, with the Company by sending documents through email at polychemltd@kilachand.com.

A communication and detailed instructions with respect to tax on dividend for the financial year ended March 31, 2025 were already sent to the members of the Company.

• (q) SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/ CIR/2021/655 dated November 3, 2021 (subsequently amended by Circular Nos. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021, SEBI/HO/MIRSD/MIRSD-PoD-1/P/ CIR/2023/37 dated March 16, 2023 and SEBI/HO/MIRSD/POD-1/P/CIR/2023/181 dated November 17, 2023) has mandated that with effect from April 1, 2024, dividend to security holders (holding securities in physical form), shall be paid only through electronic mode. Such payment shall be made only after furnishing the PAN, choice of nomination, contact details including mobile number, bank account details and specimen signature.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (r) Members holding shares in electronic form are requested to intimate immediately any change in their bank mandates to their Depository Participants with whom they are maintaining their demat accounts. Members holding shares in physical form are requested to advise any change in their bank mandates immediately to the Company or its Registrar & Share Transfer Agents - MUFG Intime India Pvt. Ltd.

• (s) Members are requested to note that as per Section 124(5) of the Act, the dividend which remains unpaid or unclaimed for a period of seven years from the date of its transfer to the Unpaid Dividend Account, is liable to be transferred by the Company to the “Investor Education Protection Fund” (IEPF) established by the Central Government under Section 125 of the Act.

• (i) Dividend Transferred:

The amount of unclaimed dividend for the financial year 2016-17 i.e. Rs 85,782/- has been transferred to the IEPF on 14[th] October, 2024, details of which are available on the website of the Company at www.polychemltd.com.

• (t) Members are requested to note that as per Section 124(6) of the Act, read with IEPF Rules as amended, all the shares in respect of which dividend has remained unpaid/unclaimed for seven consecutive years or more are required to be transferred to Demat Account of IEPF Authority.

• (i) Shares Transferred:

The Company has transferred 1,486 shares in IEPF in respect of which dividend has remained unpaid/ unclaimed for seven consecutive years on 22[nd] October 2024. The details of shares transferred to IEPF have been uploaded on the website of the Company. Members may note that shares as well as unclaimed dividends transferred to IEPF Authority can be claimed from IEPF by filling Form IEPF-5. Concerned members are advised to visit the weblink: htp://iepf. gov.in/IEPFA/refund. html for lodging claim for refund of shares and / or dividend from the IEPF Authority.

• (u) In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, securities of listed companies can only be transferred in dematerialised form with effect from 1[st] April, 2019. In view of the above, members are advised to dematerialise shares held by them in physical form.

• (v) To mitigate unintended challenges on account of freezing of folios, SEBI vide its Circular No. SEBI/HO/MIRSD/POD-1/P/ CIR/2023/181 dated November 17, 2023, has done away with the provision regarding freezing of folios not having PAN, KYC, and Nomination details.

• (w) Members holding shares in demat form are requested to provide their e-mail address, mobile number, bank details and details relating to nomination to their Depository Participant(s) (“DP’s”), in case the same are not updated.

• (x) MUFG Intime India Pvt. Ltd has launched an Investor self-service portal for the Investors ‘ SWAYAM ’.

‘ SWAYAM ’ is a web-based Application for Investors. The investors of listed entities, which are serviced by MUFG as the RTA. “SWAYAM” has been designed with a user-friendly, to help investors access their portfolios and raise any requests for service.

Through a single login, registered investors can access their investments which are linked to their PAN, obtain Company-wise summary of all holdings, fetch valuation of securities as per the last closing rates at BSE/NSE, view statement of holdings, check the status of corporate benefits and much more. SWAYAM allows investors to raise requests for Unpaid Amounts (not transferred to I.E.P.F) in an effortless way.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Investors can also register all types of service requests for speedier resolutions to requests/complaints lodged through “SWAYAM”. Investors can login to their ‘SWAYAM’ account with their Username & Password. A two-factor (2FA) investor login authentication is implemented for all investors connected to SWAYAM. 2FA is a security feature in which the investor provides two means of identification from separate channels of credentials, for increased security and to protect against cyber threats.

SWAYAM can be accessed through this web : htps://swayam.in.mpms.mufg.com/

(y) ODR Portal:

The Company has established Common Dispute Resolution Portal (“ODR Portal”) for resolution of disputes arising in Indian Securities Market. In addition to the option to resolve their grievances with the RTA/Company directly and through existing SCORES platform, the investors can initiate dispute resolution through the ODR Portal (https:// smartodr.in/login)

• (z) The Company’s securities are listed on the following Stock Exchange:

**Sr. No. **	Name & Address of the Stock Exchange	Nature of Security as on 31-03-2025
1.	Bombay Stock Exchange Ltd., Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001.	4,04,045 Equity Shares of Rs. 10/-each.

The Company has paid Annual Listing fees for the year 2025-26 to the above Stock Exchange.

Registered Office:

7, Jamshedji Tata Road, Churchgate Reclamation, Mumbai – 400 020. CIN: L24100MH1955PLC009663 Tel : 022 - 22820048 Email id : polychemltd@kilachand.com website : www.polychemltd.com

By Order of the Board of Directors

DEEPALI V. CHAUHAN Company Secretary & Compliance Officer ACS No.: 38273

Mumbai, May 14, 2025.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

ANNEXURE TO THE NOTICE

EXPLANATORY STATEMENT.

The following Explanatory Statement, as required by Section 102 of the Companies Act, 2013 and Regulation 36(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 sets out the material facts relating to business under Item Nos. 4 and 5, mentioned in the accompanying Notice dated May 14, 2025.

Item No.4

Appointment of Ms. Ragini Chokshi & Co. Company Secretaries, Mumbai (Firm Regn No. 92897) as Secretarial Auditors of the Company:

Pursuant to Section 204 of the Companies Act, 2013, it is mandatory for every listed Company to annex with its Board’s Report a “Secretarial Audit Report” given by a Company Secretary in practice in prescribed format i.e. Form MR-3 under rule 9 of the Companies (Appointment and Remuneration) Rules, 2014.

Under Section 179 of the Act read with Rule 8 of the Companies (Meetings of Board and its Powers) Rules, 2014 the appointment of Secretarial Auditor shall be made by the Board. SEBI vide its notification dated 12th December, 2024 amended Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (the Listing Regulations). The Amended regulation read with the SEBI circular no. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated 31st December, 2024 (the Circular) have inter-alia prescribed the term of appointment/reappointment, eligibility, qualifications and disqualifications of Secretarial Auditor of a Listed Company.

Pursuant to the amended Regulation 24A of the Listing Regulations, w.e.f. 01[st] April, 2025, every Listed Company on the recommendation of the Board of Directors shall appoint or re-appoint (i) an Individual as Secretarial Auditor for not more than one term of five consecutive years or (ii) a Secretarial Audit firm as Secretarial Auditor for not more than two terms of five consecutive years with the approval of its shareholders in its Annual General Meeting.

M/s Ragini Chokshi & Co., Company Secretaries are currently working as Secretarial Auditor of the Company. They have given their consent and confirmed that appointment, if made, would be within the limit specified by the Institute of Companies Secretaries of India. They have further confirmed that they are not disqualified to be appointed as Secretarial Auditors in term of provisions of the Companies Act, 2013, the Companies Secretaries Act, 1980 and Rules and Regulations made thereunder and the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 and the Circular.

Brief Profile

M/s Ragini Chokshi & Co., Company Secretaries is well known firm started in the year 1991 in Mumbai. At present, the firm has its branch offices in Delhi, Kolkata, Kerala, Madhya Pradesh. The firm has various partners and a team of qualified professionals who are experienced in providing corporate law services to the Companies across India.

The Board after taking into account the qualification and experience of M/s Ragini Chokshi & Co., Company Secretaries, Mumbai (Firm Reg No. 92897) and the consent and Peer review certificate submitted by them, was of the opinion that they are qualified to be appointed as the Secretarial Auditors of the Company in accordance with the Listing Regulations and the Circular.

The qualification and experience of M/s Ragini Chokshi & Co., Company Secretaries, Mumbai (Firm Reg No. 92897) is commensurate with the size and requirements of the Company and have accordingly recommended their appointment as the Secretarial Auditors for the term, as set out in the proposed resolution, to the members of the Company.

The proposed remuneration for the Secretarial Audit for the financial year 2025-26 is Rs. 1,00,000/- (Rupees One Lakh only), excluding applicable taxes and out-of-pocket expenses. Remuneration for subsequent financial years shall be determined by the Board of Directors, based on the recommendation of the Audit Committee, keeping in view the scope of work, industry standards, and the firm’s performance.

It is further proposed that remuneration to be paid to the Secretarial Auditor for issuing any other certificates, reports or opinions as the Board may approve to obtain from the Secretarial Auditors, may be determined, from time to time, by the Board or any committee of the Board or any officer of the Company authorized by the Board in this regard. In addition to the remuneration, the Secretarial Auditor shall be entitled to receive the out of pocket expenses as may be incurred by them during the course of the Audit or issuance of any other certificate or report or opinion.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

The consent cum certificate and Peer Review Certificate received from M/s Ragini Chokshi & Co., Company Secretary, Mumbai (Firm Reg No. 92897), shall be available for inspection by the members in electronic form up to the date of Annual General Meeting. The members seeking to inspect these documents may send an email request to polychemltd@kilachand.com.

The Board recommends the Ordinary Resolution as set out at Item No. 4 of the accompanying Notice, for Members approval.

None of the Directors or Key Managerial Personnel of the Company and their relatives are concerned or interested, financially or otherwise, in the Resolution.

Item No.5

Payment of commission not exceeding 1% of net proft to Non- Executve Directors of the Company for a period of 3 years i.e. FY 2025-26, FY 2026-27 and FY 2027-28.

The Directors of the Company plays an important role in overseeing the governance, performance and sustainable growth of the Company. They contribute their wealth of knowledge, skills, expertise and experience to the business of the Company and provide required diversity in Board decision – making process.

The Company had taken approval for payment of commission from the members of company at the AGM held on 29[th] August, 2023 for a period of three years i.e. for FY 2022-23, FY 2023-24 and FY 2024-25. In view of increased roles and responsibility of the directors under Companies Act, 2013 and SEBI Listing Regulations and in appreciation to the contribution and services, the directors have rendered and continue to render to the Company, It is proposed to take further approval for payment of Commission to Non- Executive Directors of the Company for a period of 3 years i.e. for each financial years 2025-26, 2026-27 and 2027-28 not exceeding 1% of net profit under section 197 of Companies Act, 2013 subject to availability of net profits as computed under section 198 of Companies Act, 2013 at the end of each financial year.

The quantum and manner of commission payable to each Non- Executive Directors shall be fixed and decided by the Board of Directors after considering the net profit for each year and recommendation of Nomination and Remuneration Committee. This Commission shall be in addition to the sitting fees payable to the Non- Executive Directors for attending the meetings of the Board or Committees thereof and reimbursement of expenses for participation in the Board and other meetings.

The Board recommends the resolution set out at Item No. 5 of the Notice for approval by the Members by way of an Ordinary Resolution.

All the non – executive directors along with their relatives are deemed to be concerned or interested, financially or otherwise, in this resolution to the extent of the remuneration or fees that may be received by them.

As required in terms of regulation 36(3) of SEBI (LODR) Regulations 2015 and Secretarial Standard - 2 on General Meetings issued by the Institute of Company Secretaries of India (‘ICSI’), the details of the Director who is proposed to re-appoint furnished below:

below:
Name of Director	Mr. T. R. Kilachand
Director Identfcaton Number	00006659
Age	88years
Date of First appointment on the Board	19.08.1986
Qualifcaton	B.A. from Cambridge University in History and Law. M.B.A. in Business Administraton from Harvard Business School.

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POLYCHEM LIMITE	D SIXTY-EIGHTH ANNUAL REPORT
Name of Director	Mr. T. R. Kilachand
Expertse	He was the Managing Director of the Company from 19thAugust, 1986 and Chairman & Managing Director from 1stFebruary, 1995. He was the Executve Chairman from 27thJuly, 2012 to 17thMay, 2016. He has over 50 years of experience in industry, management, implementaton of projects etc. He has been associated with various Chambers of Commerce and was the President of Indian Merchants’ Chamber. He has been associated with various charitable trusts and is Director/Chairman of several Companies.
Fulfllment of Skill and Capabilites for Role (for Independent Directors)	N.A
Terms and Conditons of Re-appointment	Liable to retre by rotaton as per secton 152(6) of Companies Act, 2013
Details of remuneraton last drawn(FY 2024-25)	Please refer “Details of Remuneraton to all Directors” in Corporate Governance Report.
Details of remuneraton sought to bepaid	Sitng fees will be paid to Mr. T. R. Kilachand and commission as approved by the Board.
Other Directorship and Commitee Membership as on 31st March, 2025 in listed entty	Directorship: Gujarat Poly Electronics Ltd –Executve Chairman Commitee Membership: A. Member 1. Audit Commitee 2. Stakeholder RelatonshipCommitee
Listed enttes from which the Director has resigned from directorship in last three (3) years:	None
No. of Board Meetngs atended during FY 2024-25	5
No. of Equity Shares held	1,938
Relatonship with other Directors	Mr. Parthiv T. Kilachand, Managing Director of the Company and Mr. Nandish T. Kilachand, Director of the Companyare the sons of Mr. Tanil R. Kilachand.

Registered Office: 7, Jamshedji Tata Road, Churchgate Reclamation, Mumbai – 400 020. CIN : L24100MH1955PLC009663 Tel : 022 22820048 Email Id : polychemltd@kilachand.com Website : www.polychemltd.com

By Order of the Board of Directors

Deepali V. Chauhan Company Secretary & Compliance Officer ACS No.: 38273

Mumbai, May 14, 2025.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

E-VOTING INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING AND JOINING GENERAL MEETING ARE AS UNDER:

1. The remote e-voting period begins on Friday, 8[th] August, 2025, at 09:00 A.M. and ends on Monday, 11[th] August, 2025 at 05:00 P.M. The remote e-voting module shall be disabled by NSDL for voting thereafter.

2. The Members, whose names appear in the Register of Members as on cut-off date i.e. 5[th] August, 2025, may cast their vote electronically.

3. The voting rights of members shall be in proportion to their shares of the paid up share capital of the Company as on the cut-off date of 5[th] August, 2025.

How do I vote electronically using NSDL e-Votng system?

The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below: Step 1: Access to NSDL e-Voting system

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

Step 1: Access to NSDL e-Votng system

A) Login method for e-Votng and joining virtual meetng for Individual shareholders holding securites in demat mode In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in order to access e-Voting facility. Login method for Individual shareholders holding securites in demat mode is given below:

Type of shareholders	Login Method
Individual Shareholders holding securites in demat mode with NSDL.	If the user is registered for NSDL IDeAS facility: 1. ExistngIDeASuser can visit the e-Services website of NSDL Viz.htps://eservices.nsdl.comeither on a Personal Computer or on a mobile. 2. On the e-Services home page click on the“Benefcial Owner”icon under“Login”which is available under‘IDeAS’secton, 3. This will prompt you to enter your existng User ID and Password. 4. Afer successful authentcaton, you will be able to see e-Votng services under Value added services. Click on“Access to e-Votng”under e-Votng services and you will be able to see e-Votng page. 5. Click on company name ore-Votng service provider i.e. NSDLand you will be re-directed to e-Votng website of NSDL for castng your vote during the remote e-Votng period or joining virtual meetng & votng during the meetng.
	If the user is not registered for NSDL IDeAS facility: If you are not registered for IDeAS e-Services, opton to register is available athtps://eservices.nsdl.com. Select“Register Online for IDeAS Portal”or click athtps://eservices.nsdl.com/SecureWeb/IdeasDirectReg. jsp

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

POLYCHEM LI	MITED SIXTY-EIGHTH ANNUAL REPORT
Type of shareholders	Login Method
	Votng directly through the NSDL portal: 1. Visit the e-Votng website of NSDL. Open web browser by typing the following URL:htps://www.evotng. nsdl.com/either on a Personal Computer or on a mobile. 2. Once the home page of e-Votng system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ secton. 3. A new screen will open. 4. You will have to enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and a Verifcaton Code as shown on the screen. Afer successful authentcaton, you will be redirected to NSDL Depository site wherein you can see e-Votng page. 5. Click on company name ore-Votng service provider i.e. NSDLand you will be redirected to e-Votng website of NSDL for castng your vote during the remote e-Votng period or joining virtual meetng & votng during the meetng. 6. Shareholders/Members can also download NSDL Mobile App “NSDL Speede” facility by scanning the QR code mentoned below for seamless votng experience.
Individual Shareholders holding securites in demat mode with CDSL	1. Existng users who have opted for Easi / Easiest, they can login through their user id and password. Opton will be made available to reach e-Votng page without any further authentcaton. The URL for users to login to Easi / Easiest arewww.cdslindia.comand click on New System Myeasi Tab and then use your existng my easi username & password. 2. Afer successful login of Easi/Easiest the user will be also able to see the E Votng Menu. The Menu will have links ofe-Votng service provider i.e. NSDL. Click onNSDLto cast your vote. 3. If the user is not registered for Easi/Easiest, opton to register is available at atwww.cdslindia.comand click on login and New System Myeasi Tab and then click on registraton opton. 4. Alternatvely, the user can directly access e-Votng page by providing demat Account Number and PAN from a link inwww.cdslindia.comhome page. The system will authentcate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. Afer successful authentcaton, user will be provided links for the respectve ESP i.e.NSDLwhere the e-Votng is in progress.
Individual Shareholders (holding securites in demat mode) login through their depository partcipants	1. You can also login using the login credentals of your demat account through your Depository Partcipant registered with NSDL/CDSL for e-Votng facility. 2. Once logged-in, you will be able to see e-Votng opton. Click on e-Votng opton, you will be redirected to NSDL/CDSL Depository site afer successful authentcaton, wherein you can see e-Votng feature. 3. Click on company name or e-Votng service provider i.e. NSDL and you will be redirected to e-Votng website of NSDL for castng your vote during the remote e-Votng period or joining virtual meetng & e-votng during the meetng.

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at respective websites.

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POLYCHEM LIMITED

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Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL.

Helpdesk for Individual Shareholders Depository i.e. NSDL and CDSL.	holding securites in demat mode for any technical issues related to login through
Login type	Helpdesk details
Individual Shareholders holding securites in demat mode with NSDL	Members facing any technical issue in login can contact NSDL helpdesk by sending a request at evotng@nsdl.com or call at 022–4886 7000
Individual Shareholders holding securites in demat mode with CDSL	Members facing any technical issue in login can contact CDSL helpdesk by sending a request at helpdesk.evotng@cdslindia.com or contact at toll free No. 1800-21-09911

• B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual shareholders holding securities in demat mode and shareholders holding securities in physical mode. How to Log-in to NSDL e-Votng website?

• Visit the e-Voting website of NSDL. Open web browser by typing the following URL: htps://www.evotng.nsdl.com/ either on a Personal Computer or on a mobile.

• Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/ Member’ section.

• A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

1. Your User ID details are given below:

Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical	Your User ID is:
a) For Members who hold shares in demat account with NSDL.	8 Character DP ID followed by 8 Digit Client ID For example if your DP ID is IN300 and Client ID is 12 then your user ID is IN30012**.
b) For Members who hold shares in demat account with CDSL.	16 Digit Benefciary ID For example if your Benefciary ID is 12** then your user ID is 12**
c) For Members holding shares in Physical Form.	EVEN Number followed by Folio Number registered with the company For example if folio number is 001 and EVEN is 101456 then user ID is 101456001

1. Password details for shareholders other than Individual shareholders are given below:

2. a) If you are already registered for e-Voting, then you can user your existing password to login and cast your vote.

3. b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.

4. c) How to retrieve your ‘initial password’?

   • (i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.

   • (ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose email ids are not registered .

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

1. If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:

2. a) Click on “ Forgot User Details/Password ?”(If you are holding shares in your demat account with NSDL or CDSL) option available on www.evotng.nsdl.com.

3. b) Physical User Reset Password ?” (If you are holding shares in physical mode) option available on www.evotng.nsdl.com.

4. c) If you are still unable to get the password by aforesaid two options, you can send a request at evotng@nsdl.com mentioning your demat account number/folio number, your PAN, your name and your registered address etc.

5. d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

6. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

7. Now, you will have to click on “Login” button.

8. After you click on the “Login” button, Home page of e-Voting will open.

Step 2: Cast your vote electronically and join General Meetng on NSDL e-Votng system.

1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting cycle and General Meeting is in active status.

2. Select “EVEN” of company for which you wish to cast your vote during the remote e-Voting period and casting your vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed under “Join General Meeting”.

3. Now you are ready for e-Voting as the Voting page opens.

4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.

5. Upon confirmation, the message “Vote cast successfully” will be displayed.

6. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to mail@csraginichokshi.com with a copy marked to evotng@nsdl.com Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution / Power of Attorney / Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under “e-Voting” tab in their login.

2. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.evotng.nsdl.com to reset the password.

3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for Shareholders available at the download section of www.evotng.nsdl.com or call at 022 – 48867000 or send a request `to Mr. Sanjeev Yadav (NSDL Official) at evotng@nsdl.com

Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice:

1. In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to polychemltd@kilachand.com.

2. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to polychemltd@kilachand.com.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

1. If you are an Individual shareholders holding securities in demat mode, you are requested to refer to the login method explained at step 1 (A) i.e. Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode.

2. Alternatively shareholder/members may send a request to evotng@nsdl.com for procuring user id and password for e-voting by providing above mentioned documents.

3. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are required to update their mobile number and email ID correctly in their demat account in order to access e-Voting facility.

THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF AGM ARE AS UNDER:-

1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.

2. Only those Members/ shareholders, who will be present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system in the AGM.

3. Members who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM.

4. The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day of the AGM shall be the same person mentioned for Remote e-voting.

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/OAVM ARE AS UNDER:

1. Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting system. Members may access by following the steps mentioned above for Access to NSDL e-Voting system . After successful login, you can see link of “VC/OAVM link” placed under “Join General meeting” menu against company name. You are requested to click on VC/ OAVM link placed under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.

2. Members are encouraged to join the Meeting through Laptops for better experience.

3. Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.

4. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

5. Shareholders who would like to express their views/have questions may send their questions in advance mentioning their name demat account number/folio number, email id, mobile number at polychemltd@kilachand.com. The same will be replied by the company suitably.

6. Shareholders, who would like to be the speaker shareholder at the AGM shall send their request at least four days in advance mentioning their name demat account number/folio number, email id, mobile number at polychemltd@kilachand.com.

7. Members who need assistance before or during the meeting, can contact NSDL on evoting@nsdl.com +91 22 48867000 or contact Mr. Sanjeev Yadav, Assistant Manager-NSDL at sanjeevy@nsdl.com.

OTHER INSTRUCTIONS:

1. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, unblock the votes cast through remote e-Voting (votes cast during the AGM and votes cast through remote e-Voting) and make, not later than 2 working days of conclusion of the AGM, a consolidated Scrutinizer’s Report of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in writing, who shall countersign the same.

2. The result declared along with the Scrutinizer’s Report shall be placed on the Company’s website www.polychemltd.com and on the website of NSDL htps://www.evotng.nsdl.com/ within 2 working days of conclusion of the AGM. The Company shall simultaneously forward the results to BSE, where the shares of the Company are listed.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

DIRECTORS’ REPORT

To

The Members of POLYCHEM LIMITED

Your Directors’ present the Sixty Eighth Annual Report and Statement of Accounts for the year ended 31[st] March, 2025.

Your Directors’ present the Sixty Eighth Annual Report and Stateme	nt of Accounts for the year ended 31stMarch, 2025.	nt of Accounts for the year ended 31stMarch, 2025.	nt of Accounts for the year ended 31stMarch, 2025.	nt of Accounts for the year ended 31stMarch, 2025.
FINANCIAL RESULTS	(Rs in Lakhs)
Partculars	Standalone		Consolidated
	Year ended on		Year ended on
	31-03-25	31-03-24	31-03-25	31-03-24
Revenue from Operatons	2,381.43	3,686.79	4,165.42	5,386.68
Other Income	311.76	131.89	224.88	196.19
Total Income	2,693.19	3,818.68	4,390.30	5,582.87
Total Expenses	2,299.03	3,047.88	3,911.08	4,627.73
Proft/(Loss) before tax	394.16	770.80	479.22	955.14
Current tax(for theyear)	63.25	170.00	71.69	170.00
Current tax(relatngtopreviousyear)	2.51	1.67	2.51	1.67
Deferred tax	(8.36)	(4.57)	20.83	(36.17)
Proft/(Loss) afer tax	336.76	603.70	384.19	819.63
Other Comprehensive Income	(6.89)	(5.78)	(19.73)	(9.76)
Total Comprehensive Income for theperiod	329.87	597.92	364.46	809.88

1. DIVIDEND:

For the year under review, the Directors propose to recommend a Dividend of Rs. 20/- per equity share of Rs 10/- each i.e. 200% (Rs 30/- i.e. 300% for the previous year) on the Equity shares of the Company aggregating to Rs. 80,80,900/-. The dividend payment is subject to approval of the Members at the ensuing Annual General Meeting.

2. STATE OF COMPANY’S AFFAIRS:

During the year ended 31[st] March, 2025, your Company has made a profit of Rs 336.76 lakhs after tax against a profit of Rs. 603.70 lakhs after tax in previous year. The sales of Specialty Chemicals including other operating revenue during the year ended was Rs. 2,381.43 Lakhs compared to Rs. 3,686.79 lakhs during the previous year and for property development Rs. Nil during the current and previous year.

3. RESERVES:

Your Directors do not propose to transfer any amount to the general reserve.

4. SUBSIDIARY COMPANY:

The Company has one subsidiary company i.e. Gujarat Poly Electronics Limited (GPEL).

In accordance with section 129(3) of the Companies Act, 2013, the Company has prepared the consolidated financial statements of the Company, which forms part of this Annual Report. Further a statement containing the salient features of the financial statement of our subsidiary company in the prescribed format AOC-1 also forms part of this Annual Report.

The sale of GPEL during the year ended 31[st] March, 2025 was Rs. 1,779.24 lakhs as against sale of Rs. 1,692.28 lakhs in the previous year. GPEL has made profit of Rs. 214.48 lakhs during the current year as compared to profit of Rs. 215.93 lakhs in the previous year. GPEL manufactures as wells as outsources ceramic capacitors & marketing the same.

During the year, the Company has sold 1,62,407 equity shares of Rs 10/- each i.e. 1.9% of GPEL in the market. As on 31[st] March, 2025, the Company holds 44,53,745 equity shares of Rs 10/- each i.e. 52.09% of GPEL.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

5. NUMBER OF BOARD MEETINGS HELD DURING THE YEAR:

During the year 2024-25, five Board Meetings were held through video conference on the following dates:

• (a) 14[th] May, 2024

(b) 16[th] July, 2024

• (c) 8[th] August, 2024

• (d) 13[th] November, 2024

• (e) 11[th] February, 2025

More details on the Board Meeting are given under Corporate Governance Report.

6. AUDIT COMMITTEE:

The Audit Committee during the year consisted of 4 members. More details on the committee are given in Corporate Governance Report.

7. STAKEHOLDERS RELATIONSHIP COMMITTEE:

The Stakeholders Relationship Committee during the year consisted of 3 members. More details on the committee are given in Corporate Governance Report.

8. NOMINATION AND REMUNERATION COMMITTEE:

The Nomination and Remuneration Committee consists of 3 members, More details on the committee are given in Corporate Governance Report.

9. VIGIL MECHANISM/WHISTLE BLOWER POLICY:

The Board has established a vigil mechanism for directors and employees to report genuine concerns to be disclosed, the details of which is placed on the website of the company. The Board has also formulated the whistle blower policy, same has been uploaded on the website of the company htp://www.polychemltd.com/download/Whistle%20Blower%20Policy_14.pdf.

There was no reporting made by any employee for violations of applicable laws and regulations and the Code of Conduct for the F.Y. 2024-25.

10. DIRECTORS’RESPONSIBILITY:

Pursuant to Section 134 of the Companies Act, 2013 the Directors confirm that:

• a. In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

• b. Appropriate accounting principles have been selected and applied consistently and have made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31[st] March, 2025 and of the profit of the Company for the year ended 31[st] March, 2025;

• c. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• d. The annual accounts have been prepared on a going concern basis;

• e. The directors have laid down internal financial controls to be followed by the company;

• f. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws.

11. TAXATION:

The Company’s Income Tax assessments have been completed up to the year ended 31[st] March, 2024.

12. DEPOSITS:

Company has not received any deposits from Public during the year and there are no outstanding deposits.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

13. INDUSTRIAL RELATIONS:

Industrial Relations with the employees of the Company were cordial during the year under report.

14. CONSERVATION OF ENERGY:

Report on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo etc. is given in Annexure I forming part of this report.

15. DIRECTORS:

• a) Mr. T. R. Kilachand (DIN 00006659) retires from Office by rotation, but being eligible, offers himself for re-appointment. The same is placed before the Members for their approval in ensuing Annual General Meeting.

• b) Mr. A.H. Mehta ceased to be director of Company due to demise on 19[th] June, 2024.

• c) Based on the recommendation of Nomination and Remuneration Committee, the Board of Directors of Company at its meeting held on 16[th] July, 2024 appointed Mr. A. A. Dalal (DIN 00353555) as Independent Director of the Company w.e.f. 1[st] August, 2024 for initial term of 5 years, the same was approved by the members via postal ballot on 21[st] August, 2024.

• d) Mr. V. V. Sahasrabudhe and Mr. C. R. Desai completed their second and final term as Independent Director of Company w.e.f 4[th] August, 2024 and hence ceased to be the Directors of Company.

• e) Ms. N. S. Mehendale and Mr. Y. S. Mathur completed their second and final term as Independent Director of Company w.e.f 24[th] March, 2025 and 30[th] March, 2025 and hence ceased to be the Directors of Company.

• f) Based on the recommendation of Nomination and Remuneration Committee, the Board of Directors of Company at its meeting held on 11[th] February, 2025 appointed Ms. S. A. Jhaveri (DIN 00029474) and Mr. R. P. Vahi (DIN 00033940) as Independent Director of the Company w.e.f. 25[th] March, 2025 and 31[st] March, 2025 for initial term of 5 years, the same was approved by the members via postal ballot on 22[nd] March, 2025.

16. PROMOTER AND PROMOTER’S GROUP:

During the year, 2 promoter companies namely Highclass Trading Private Limited and Delmar Trading Co. Private Limited have been merged with Virsun Investments Private Limited, another promoter company vide National Company Law Tribunal (NCLT), Mumbai order dated 16th May, 2024.

Accordingly, entire shareholding of Highclass Trading Private Limited and Delmar Trading Co. Private Limited have been transferred to Virsun Investments Private Limited. Hence, the number of promoters has been reduced to 7 from 9.

The holding of Promoter and Promoter’s Group before and after the merger remains same i.e. 52.09%

17. DECLARATION ABOUT INDEPENDENT DIRECTORS UNDER SUB-SECTION 6 OF SECTION 149:

The Company has received the declarations from Independent Directors that they meet the criteria of independence laid down under section 149(6) of the Companies Act, 2013 and under regulation 16(b) of SEBI (LODR) Regulations, 2015.

18. DISCLOSURE OF REMUNERATION RECEIVED BY MANAGING DIRECTOR OF THE COMPANY FROM ITS SUBSIDIARY/HOLDING COMPANY UNDER SECTION 197(14):

During the year 2024-25, Mr. A. H. Mehta, Dy. Managing Director of the Company has received Rs. 13.68 Lakhs excluding retirement benefits from Gujarat Poly Electronics Limited, subsidiary company in capacity of Managing Director.

Mr. Atul H. Mehta ceased to be the Director of the Company due to demise on 19[th] June, 2024.

19 . FORMAL ANNUAL EVALUATION:

As required under the act, evaluation of every director’s performance was carried out. An evaluation sheet was given to each director wherein certain criteria were set out for which ratings are to be given.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

20. COMPANY’S POLICY ON DIRECTORS APPOINTMENT, REMUNERATION ETC.:

The Nomination and Remuneration Committee recommends to the Board the policy relating to remuneration for the Directors, Key Managerial Personnel and other employees, same has been uploaded on the website of the Company htp://www.polychemltd. com/download/Criteria%20for%20Appointment%20&%20Evaluation%20of%20Board%20of%20Directors_14.pdf

21. RELATED PARTY TRANSACTIONS:

All Related Party Transactions (RPT) entered into by the Company during the year under review were at arms’ length and in ordinary course of business. All RPT are placed before Audit Committee for its review and approval. Prior Omnibus approval is obtained from Audit Committee for RPT on Annual basis.

Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014:

1. Details of contracts or arrangements or transactions not at arms’s length basis: NIL

2. Details of material contracts or arrangement or transactions at arm’s length basis:

FORM AOC- 2

FORM AOC- 2
Company & Nature of Relatonship	Nature of contracts/ arrangements / transacton	Duraton of the contracts / arrangement / transacton	Salient terms of the contracts or arrangements or transactons including the value,if any:	Date(s) of approval by the Board, if any:	Amount paid / received as advances, if any:
Ginners & Pressers Limited (Directors having signifcant infuence/ control)	Rent & Electricity	N.A	N.A	In Year 1997	No Advances paid. Amount paid as when expenses incurred
Tulsi Global Logistcs Pvt Ltd (Directors having signifcant infuence/ control)	Rent	3 Years	N.A	In Year 2023	No Advances Received. Amount recovered as when expenses incurred

The Board on recommendation of Audit Committee, adopted a policy on related party transactions to regulate transactions between the Company and its related parties, in compliance with the applicable provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The policy is uploaded and can be viewed on the Company’s website

htp://www.polychemltd.com/download/Related%20Party%20Transacton%20Policy_14.pdf

22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:

The Company has not given any loan or guarantee during the year and there is no outstanding loan or guarantee as on 31[st ] March, 2025 but the company has made an investment of Rs 399.98 Lakhs in Mutual Fund during the year.

23. DONATION:

During the year, the Company has not given donation to any charitable trust.

24. CORPORATE SOCIAL RESPONSIBILITY:

The Company has spent Rs. 7 Lakhs towards CSR in Financial Year 2024-25. The Details of the same is enclosed and marked as Annexure II

As per criteria mentioned under section 135(1) of the Companies Act, 2013, the Provision of CSR will not be applicable to the Company for the Financial year ended 31[st] March, 2025.

As per section 135(9) of the Companies Act, 2013, the amount to be spent for CSR activities does not exceed Rs. 50 Lakhs, hence the requirement for constitution CSR Committee is not required. The Company has adopted the CSR Policy and can be viewed on the Company’s website htp://www.polychemltd.com/Download/Polychem%20-%20CSR%20Policy.pdf

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POLYCHEM LIMITED

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25. INTERNAL FINANCIAL CONTROL:

The Company has adequate internal financial control system with reference to the financial statements.

26. RISK MANAGEMENT POLICY:

The Company has developed and implemented a risk management policy which identifies major risks which may threaten the existence of the Company. The same has also been adopted by your Board and is also subject to its review from time to time.

27 . OTHER DISCLOSURES AS PER SECTION 134 OF THE COMPANIES ACT, 2013:

• (a) There are no qualifications, reservations or adverse remark or disclaimer by the Statutory Auditor or by Secretarial Auditor in their respective reports.

• (b) There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company, to which the financial statements relate and the date of the report.

• (c) Pursuant to Section 92(3) read with section 134(3)(a) of the Act, the Annual Return as on 31[st] March, 2025 is available on the Company’s Website at htp://www.polychemltd.com/Annual%20Return.aspx

28. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company has zero tolerance for sexual harassment at workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. The policy is uploaded and can be viewed on the Company’s website htp://www.polychemltd.com/Download/Anti-Sexual%20Harassement%20Policy.pdf

The Company has also formed an Internal Complaints Committee (ICC) which is responsible for redressal of complaints related to sexual harassment and follows the guidelines provided in the policy. The Company has also filed Annual Report 2024 with District Collector and District Women and Child Development Officer.

The Company has not received any complaints on sexual harassment during the year.

29. PARTICULARS OF EMPLOYEES AND REMUNERATION:

Details of Remuneration as required in terms of the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed and marked as Annexure III .

In terms of the provisions of Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names of top ten Employees in terms of remuneration drawn and name and other particulars of Employees drawing remuneration in excess of the limits set out in the said Rules are required to be part of the report. However, there are no employees drawing remuneration as mentioned in rule 5(2) (i) (ii) and (iii) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The information of the top ten employees in terms of remuneration is not sent along with this report. However, having regards to the provisions of Section 136(1) of the Act the said information is available for inspection. Any member interested in obtaining such information may write to the Company Secretary, at the Registered office or at polychemltd@kilachand.com and the same will be furnished on request.

30. CORPORATE GOVERNANCE:

Pursuant to Regulation 34(3) and Schedule V of SEBI (LODR) Regulations, 2015, a separate report on Corporate Governance and a certificate from M/s. Ragini Chokshi & Co., Company Secretaries, are annexed to this Report.

31. STATUTORY AUDITOR:

In 65[th] Annual General Meeting, members of the Company have re-appointed M/s. Nayan Parikh & Co., Chartered Accountants, Mumbai, for a second term of 5 years from the conclusion of 65[th] AGM till the conclusion of 70[th] Annual General Meeting to be held in the Year 2027.

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POLYCHEM LIMITED

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32. SECRETARIAL AUDITOR:

Complying with the provisions of Section 204 of the Companies Act, 2013, the Audit Committee has recommended and the Board of Directors have appointed M/s. Ragini Chokshi & Co., Company Secretaries, (Firm Regn No. 92897) (Membership No.2390 & C.P. No.1436), a peer reviewed firm, being eligible and having sought appointment, as Secretarial Auditor of the Company to carry out the Secretarial Audit of the Company for the period of 5 years i.e. from FY 2025-26 till the F.Y 2029-30 on fees as may be decided by Board from time to time.

The Secretarial Audit Report for F.Y. 2024-25 is enclosed and marked as Annexure IV .

33. INTERNAL AUDITOR:

Pursuant to Section 138(1) of the Act read with the Companies (Accounts) Rules, 2014, your Company is required to appoint an internal auditor to conduct internal audit of the functions and activities of your Company. Your Board of Directors based on the recommendation of the Audit Committee, had approved the appointment of M/s S. K. Lotlikar, Chartered Accountants (Firm Registration No. 116871W) to conduct the internal audit of your Company for the Financial Year 2025-26.

34. MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT:

The MDA forms an integral part of this report and give details of the overview, industry structure and developments, different product groups of the company, operational performance of its various business segments.

35. SECRETARIAL STANDARDS:

The Company has in place proper system to ensure compliance with the provisions of applicable Secretarial Standards (SS-1 & SS-2) issued by ICSI.

36. ACKNOWLEDGEMENT:

The Directors extend their sincere thanks to the State and Central Government Authorities and Members for their co-operation and continued support. Sincere thanks are also due to the management team and the staff for their valuable contribution.

Registered Office: 7, Jamshedji Tata Road, Churchgate Reclamation, Mumbai – 400 020. CIN : L24100MH1955PLC009663 Tel: 022 22820048 Email Id: polychemltd@kilachand.com Website: www.polychemltd.com

By Order of the Board of Directors

TANIL KILACHAND Chairman DIN 00006659

Mumbai, May 14, 2025

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POLYCHEM LIMITED

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ANNEXURE I

A. CONSERVATION OF ENERGY:

1. Steps taken or impact on conservation of energy: NIL

2. Steps taken by the Company for utilizing alternate sources of energy: NIL

3. The capital investment on energy conservation equipment: NIL

Power And Fuel Consumpton(Electricity)	2024-25	2023-24
Purchased units(Kwh)	13,557.00	15,186.00
Total Amount(Rs.)	243,690.00	240,910.00
Rate(Kwh)	17.98	15.86

B. TECHNOLOGY ABSORPTION:

Disclosures of particulars with respect to Technology Absorption, Research & Development.

I. Research and Development

1. Specific area in which R & D work is carried out:

Currently our focus in R&D is to develop a cross linked polystyrene with bigger particle size distribution for use of Oil field application. The trials are in progress.

2. Benefits derived as a result of the above R & D:

We have improved the quality of our product particularly cross linked polystyrene. One of our grades of Cross Linked Polystyrene, STYREDEX-210 has gained good acceptance in export markets thereby improving our market share.

3. Future plan of action:

We intend to improve the efficiency of Cross Linked Polystyrene production further to match that of Competitors abroad.

4. Expenditure on R & D:

We have not incurred any major expenditure on R & D either for equipment or for testing facilities.

II. Technology Absorption, Adaptation and Innovation:

1. Efforts in brief made towards technology absorption, adaptation and innovation:

Since local technology is used for manufacture of the products of the Company, there is no question of technology absorption.

2. Benefits derived as a result of the above efforts e.g. product improvement, cost reduction, product development, import substitution etc.:

Not Applicable

3. Imported Technology:

No new technology has been imported.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

(Rs. in lakhs)

FOREIGN EXCHANGE EARNINGS AND OUTGO:		(Rs. in lakhs)
	Current Year	Previous Year
Foreign exchange outgo	0.75	1.91
Foreign exchange earned(FOB Value)	1,985.06	2,937.21

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POLYCHEM LIMITED

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ANNEXURE II

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR FINANCIAL YEAR 2024-25

1. Brief outline on CSR Policy of the Company:

Polychem Limited is a socially responsible company, for us Corporate Social Responsibility means responsible business practices through the involvement of all stakeholders in the decision-making process and in operations. It entails having business policies that are ethical, equitable, environmentally conscious, gender sensitive, and sensitive towards the differently abled. Our CSR Policy sets out our commitment to ensuring that our activities extend beyond business and include initiatives and endeavor’s for the benefit and development of the community and society. Our CSR Policy lays down the guidelines for undertaking programs geared towards social welfare activities or initiatives.

• NOT APPLICABLE

• 2. Composition of CSR Committee:

3. Web-links of CSR Policy and CSR projects approved by the board are disclosed on the website of the Company htp://www.polychemltd.com/Download/Polychem%20-%20CSR%20Policy.pdf

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of subrule (3) of rule 8, if applicable: Not applicable.

5.

(a)Average netproft of the companyasper secton 135(5)	Rs. 3,43,16,472
(b)Twopercent of average netproft of the companyasper secton 135(5)	Rs. 6,86,329
(c)Surplus arising out of the CSR projects or programmes or actvites of the previous fnancialyears	Nil
(d)Amount required to be set of for the fnancial year, if any	Nil
(e)Total CSR obligaton for the fnancialyear(5b+5c-5d)	Rs. 6,86,329

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): Rs. 7,00,000 (spent on other than ongoing project)

• (b) Amount spent in Administrative Overheads: NIL

• (c) Amount spent on Impact Assessment, if applicable: Not applicable

• (d) Total amount spent for the Financial Year [6(a)+6(b)+6(c)]: Rs. 7,00,000

• (e) CSR amount spent or unspent for the Financial Year:

Total Amount Spent for the Financial Year. (in Rs.)	Amount Unspent(in Rs.)	Amount Unspent(in Rs.)	Amount Unspent(in Rs.)	Amount Unspent(in Rs.)	Amount Unspent(in Rs.)
	Total Amount transferred to Unspent CSR Account asper secton 135(6).		Amount transferred to any fund specifed under Schedule VII asper secondproviso to secton 135(5).
	Amount.	Date of transfer.	Name of the Fund	Amount.	Date of transfer.
Rs. 7,00,000	NIL	NIL	NIL	NIL	NIL

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

(f) Excess amount setoff, if any:

Sr. No.	Partcular	Amount
(i)	Twopercent of average netproft of the companyasper secton 135(5)	Rs. 6,86,329
(ii)	Total amount spent for the Financial Year	Rs. 7,00,000
(iii)	Excess amount spent for the fnancial year [(ii)-(i)]	Rs. 13,671
(iv)	Surplus arising out of the CSR projects or programmes or actvites of the previous fnancialyears,if any	-
(v)	Amount available for set of in succeedingfnancialyears[(iii)-(iv)]	Rs. 13,671

7. Details of Unspent CSR amount for the preceding three financial years:

Sr. No.	Preceding Financial Year.	Amount transferred to Unspent CSR Account under secton 135 (6) (in Rs.)	Balance Amount in Unspent CSR Account under sub secton (6) of secton 135 (in Rs.)	Amount spent in the reportng Financial Year (in Rs.).	Amount transferred to any fund specifed under Schedule VII as per secton 135(6), if any.	Amount transferred to any fund specifed under Schedule VII as per secton 135(6), if any.	Amount remaining to be spent in succeeding fnancial years. (in Rs.)	Defciency, if any
					Amount (in Rs).	Date of transfer.
1.	2023-24	-	-	-	-	-	-	-
2.	2022-23	-	-	-	-	-	-	-
3.	2021-22	-	-	-	-	-	-	-
	TOTAL	-	-	-	-	-	-	-

8. Where any capital assets have been created or acquired through CSR amount spent in the Financial Year: NO

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): Not Applicable

By Order of Board of Directors

T. R. Kilachand

Chairman DIN: 00006659

P. T. Kilachand

Managing Director DIN: 00005516

Mumbai, May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

ANNEXURE III

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197 (12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5 (1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

A. Ratio of the remuneration of each Director to the Median remuneration of the employees of the Company:

Sr. No.	Name	Designaton	Rato of Remuneraton to median Remuneraton of employee
1	Mr. T. R. Kilachand	Chairman	0.28
2	Mr. P. T. Kilachand	ManagingDirector	9.39
3	Mr. A. H. Mehta *	Dy. Managing Director	N.A.
4	Mr. N. T. Kilachand	Non-Executve Director	0.26
5	Mr. A. A. Dalal **	Independent Director	N.A
6	Mr. V. V. Sahasrabudhe #	Independent Director	N.A.
7	Mr. C. R. Desai #	Independent Director	N.A
8	Ms. N. S. Mehendale %	Independent Director	0.34
9	Mr. Y. S. Mathur %	Independent Director	0.34
10	Ms. S. A. Jhaveri@	Independent Director	N.A.
11	Mr. R. P. Vahi@	Independent Director	N.A

*Mr. A.H. Mehta ceased to be director of company due to demise on 19[th] June, 2024. So the ratio of remuneration to median remuneration of employees is not comparable and hence not stated.

**Mr. A. A. Dalal was appointed as director of company w.e.f 1[st] August, 2024. So the ratio of remuneration to median remuneration of employees is not comparable and hence not stated.

Mr. V. V. Sahasrabudhe and Mr. C. R. Desai ceased to be the director of company due to their completion of second and final term w.e.f. 4[th] August, 2024. So the ratio of remuneration to median remuneration of employees is not comparable and hence not stated.

% Ms. N. S. Mehendale and Mr. Y. S. Mathur ceased to be the director of company due to their completion of second and final term w.e.f. 24[th] March, 2025 and 30[th] March, 2025 respectively. Since they served as director of company for the full financial year so the ratio of remuneration to median remuneration of employees is stated.

@ Ms. S. A. Jhaveri and Mr. R. P. Vahi are appointed as director of company w.e.f. 25[th] March, 2025 and 31[st] March, 2025 respectively. So the ratio of remuneration to median remuneration of employees is not stated.

B. Percentage increase/(decrease) in remuneration of each Director, Chief Financial Officer, & Company Secretary for the Financial Year:

Sr. No.	Name	Designaton	Percentage increase/(decrease) in remuneraton
1	Mr. T. R. Kilachand	Chairman	40.61
2	Mr. P. T. Kilachand	ManagingDirector	14.61
3	Mr. A. H. Mehta	Dy. Managing Director	N.A
4	Mr. N. T. Kilachand	Non-Executve Director	29.27
5	Mr. A. A. Dalal	Independent Director	N.A
6	Mr. V. V. Sahasrabudhe	Independent Director	N.A

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P	OLYCHEM LIMITED	SIXTY-	EIGHTH ANNUAL REPORT
Sr. No.	Name	Designaton	Percentage increase/(decrease) in remuneraton
7	Mr. C. R. Desai	Independent Director	N.A
8	Ms. N. S. Mehendale	Independent Director	29.45
9	Mr. Y. S. Mathur	Independent Director	29.45
10	Ms. S. A. Jhaveri	Independent Director	N.A
11	Mr. R. P. Vahi	Independent Director	N.A
12	Ms. K.V Panchasara	Chief Financial Ofcer	28.80
13	Ms. D.V. Chauhan	CompanySecretary	14.62

The % increase of remuneration is provided only for those directors and KMP, who have drawn remuneration from the Company for full financial year ended 2025 and 2024.

• C. Percentage increase /(decrease)in the median remuneration of employees in the financial year: Decrease of 1.49%

• D. Number of Employees as on 31st March, 2025 on pay rolls of Company: 24

• E. Average percentile increase made in the salaries of employees other than the managerial personnel in last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

During the Financial Year under review, average percentage increase in the salary of the Company’s employees, other than managerial personnel is 8%

• F. Affirmation that the remuneration is as per the remuneration policy of the Company:

It is hereby affirmed that the remuneration paid is as per the Policy for Remuneration of the Directors, Key Managerial Personnel and other Employees.

By Order of Board of Directors

T. R. Kilachand Chairman DIN: 00006659

Mumbai, May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

ANNEXURE IV

Form No. MR-3

SECRETARIAL AUDIT REPORT

[ Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014 ]

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2025

To,

The Members,

Polychem Limited

7 Jamshedji Tata Road, Churchgate Reclamation, Mumbai- 400020.

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by POLYCHEM LIMITED (CIN: L24100MH1955PLC009663) (hereinafter called the “Company”) for the financial year ended March 31, 2025 . Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon;

Based on our Verification of books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering April 01, 2024 to March 31, 2025 complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and Compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter;

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the audit period April 01, 2024 to March 31, 2025 according to the provisions of:

• (i) The Companies Act, 2013 (the Act) and the rules made there under;

• (ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

• (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

• (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings (not applicable to the company during the period under review);

• (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): -

• (a) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015;

• (b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

• (c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

• (d) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (not applicable to the company during the period under review) ;

• (e) The Securities and Exchange Board of India (Share Based Employee Benefits& Sweat Equity) Regulations, 2021 (not applicable to the company during the period under review) ;

• (f) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (not applicable to the company during the period under review) ;

• (g) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client (not applicable to the company during the period under review) ;

• (h) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 (not applicable to the company during the period under review) ;

• (i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (not applicable to the company during the period under review) ;

• (j) Securities and Exchange Board of India (Depositories & Participants) Regulation,2018 (to the extent applicable) .

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (vi) We have relied on the representation made by the Company and its officers for systems and mechanism formed by the Company for compliances under other applicable Acts, Laws and Regulations to the Company.

We have also examined compliance with the applicable provisions and clauses of the following:

• Secretarial Standards issued by The Institute of Company Secretaries of India.

• Securities and Exchange Board of India (Listing Obligation & Disclosure Requirement) Regulation, 2015 “SEBI (LODR)”. During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.

We further report that

• The Board of Directors of the Company is duly constituted and the changes in the composition of the Board of Directors that took place during the period under review were carried out in the compliance with the provision of the Act.

• Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

• As per the minutes of the Board duly recorded and signed by Chairman, the decisions of the Board were with requisite majority.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations

of the Company to monitor and ensure compliance with applicable laws, rules, regulations, and guidelines.

The Compliance by the company of applicable Financial Laws like Direct & Indirect Tax Laws, Goods and Service Tax has not been reviewed in the audit since the same has been subject to the review by the statutory financial audit and other designated professionals.

We further report that during the audit period, the company had below mentioned specific event or action which might have a bearing on the company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.

1. Declaration of Dividend of Rs 30/- (Rupees Thirty only) per equity share of Rs 10/- each i.e. 300% for the year ended March 31, 2024.

2. Cessation of Mr. Atul H. Mehta, Dy. Managing Director of the company due to demise on June 19, 2024 .

3. Appointment of Mr. Anand Dalal as a Non Executive – Independent Director for the term of 5 years w.e.f August 01, 2024.

4. Cessation of Mr. V. V. Sahasrabudhe as a Non Executive – Independent Director w.e.f August 04, 2024 due to completion of term.

5. Cessation of Mr. C. R. Desai as a Non Executive – Independent Director w.e.f August 04, 2024 due to completion of term.

6. Cessation of Ms. Nirmala Mehendale as Non Executive – Independent Director w.e.f March 24, 2025 due to completion of term.

7. Cessation of Mr. Yogesh S. Mathur as Non Executive – Independent Director w.e.f March 30, 2025 due to completion of term.

8. Appointment of Ms. Saloni Jhaveri as a Non Executive – Independent Director for the term of 5 years w.e.f March 25, 2025.

9. Appointment of Mr. Rajan Vahi as a Non Executive – Independent Director for the term of 5 years w.e.f March 31, 2025.

For Ragini Chokshi & Co. (Company Secretaries)

Mumbai, May 14, 2025

Ragini Chokshi (Partner) C. P. No.: 1436 Membership No.: 2390 UDIN: F002390G000337813 P. R. Certificate No.: 4166/2023

This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

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ANNEXURE A Form No. MR-3

To,

The Members, Polychem Limited

7 Jamshedji Tata Road, Churchgate Reclamation, Mumbai- 400020.

Our report of even date is to be read along with the letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4. Where ever required we have obtained the Management representation about the compliance of laws, rules and regulations and happenings of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

For Ragini Chokshi & Co. (Company Secretaries)

Ragini Chokshi

(Partner)

Mumbai, May 14, 2025

C. P. No.: 1436 Membership No.: 2390 UDIN: F002390G000337813 P. R. Certificate No.: 4166/2023

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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Overview:

Company is operating in the manufacturing of Specialty Chemicals and development of property / land.

Opportunities:

Our customers for the specialty polymers are in investment casting Industry. The major end user segment for investment cast products is automotive, aerospace industry, valves & instruments. Export market is growing fast particularly for one of our newly developed grades of Cross Linked Polystyrene.

The second specialty product is used as filler in cement for structural repair of columns & beam in the old buildings. The demand for this product is stable.

Threats:

The basic raw material for the majority of our products is Styrene Monomer & Di-vinyl Benzene. The styrene price is highly volatile. Availability of Di-vinyl benzene is worrisome as China is the major supplier.

We have direct threat from two competitors for Cross Linked Polystyrene in India.

Risks & concerns:

Due to price fluctuation in the main raw material i.e. styrene monomer and no corresponding increase in the price of our finished products the margin on our finished products in the domestic market as well as exports is a major area of concern.

Outlook:

Substantial part of Company’s sales consists of Exports. Our product has been accepted by all major overseas Filled wax manufacturers. Currently the export market is growing, but the competition from two other exporters’ forces us to lower our price, thereby realization.

Financial Performance:

1) Share Capital:

The issued and paid-up share capital of the Company is Rs. 40.40 lakhs consisting of 4,04,045 equity shares of Rs.10/- each as on 31[st] March, 2025.

2) Reserves and Surplus:

As on 31[st] March, 2025, the reserves and surplus are Rs 3,356.78 lakhs.

3) Secured Loans:

There are no secured loans outstanding as on 31[st] March, 2025.

4) Results of Operaton:

Revenue for the current year including other income amounts to Rs.2,693.19 lakhs compared to Rs. 3,818.68 lakhs in the previous year. Profit before tax is Rs.394.16 Lakhs compared to Profit before tax of Rs. 770.80 Lakhs during the previous year. Provisions for tax including deferred tax during the year is Rs. 57.40 Lakhs compared to Rs. 167.10 Lakhs during the previous year. Profit after tax amounts to Rs. 336.76 Lakhs during the year compared to profit of Rs. 603.70 Lakhs during the previous year.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Industry Structure & Development:

Our Company is manufacturing and selling Specialty Chemicals.

Segment wise Performance:

There are two income generating segments. Segment-wise revenue for the year ended 31[st] March, 2025 is as follows. viz. (1) Property / Land Rs. NIL (2) Specialty Chemicals Rs. 2,381.43 Lakhs.

Internal Control System:

Company has adequate internal control procedures commensurate with the size of the Company and nature of its business for the purchase of raw materials and fixed assets and for the sale of goods.

Human Resources:

The Company has good relation with its employees. There are 24 permanent employees in the Company.

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

The Company has identified the following ratios as key financial ratios:

The Company has identfed the following ratos as key fnancial ratos:
Partculars	2024-25	2023-24	% Change
Current Rato	4.44	5.25	(15)
Debt to EquityRato	-	-	-
Debt Service Coverage Rato	-	-	-
Return on EquityRato	0.10	0.21	(50)
InventoryTurnover Rato	4.87	7.93	(39)
Debtor Turnover Rato	7.18	9.90	(27)
Creditors Turnover Rato	34.64	31.27	11
Net Capital Turnover Rato	2.62	3.48	(25)
OperatngProft Margin
Net Proft Rato	0.15	0.17	(14)
Return on Investment	0.01	0.01	-

Return on Networth

The details of return on net worth are given below:

Net Proft Rato Return on Investment Return on Networth The details of return on net worth are given below:	0.15 0.01	0.17 0.01	(14) -
Partculars	2024-25	2023-24	% Change
Return on networth(%)	0.12	0.25	(51)

Detailed Reason for change of 25% or more in Key Financial Ratios is given in point no. 4.17 on page no. 92.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

CORPORATE GOVERNANCE REPORT (2024-2025)

I. Statement on Company’s philosophy on code of governance

The Company’s philosophy on corporate governance is to attain high level of transparency and accountability in the functioning of the Company and in its relationship with employees, shareholders, creditors and ensuring high degree of regulatory compliances.

The Company also believes that its systems and procedures will enhance corporate performance and maximize shareholder value in the long term.

II. Board of Directors

The Board of Directors comprises of six members, 1 Managing Director, 2 Non-Executive Directors and 3 Independent Directors out of them one is a woman director as on 31[st] March, 2025. They are responsible for management of the Company’s business. The Board’s role, functions, responsibility and accountability are clearly defined.

The Composition of the Board of Directors, Attendance of each Director at the Board Meeting, last AGM, sitting fees paid and Number of other Directorship and Chairmanship/Membership of Committee held by them in other public limited companies and Directorships held by them in other listed entities as on March 31, 2025 are as given below. Other directorships do not include alternate directorships, directorships of private limited companies, Section 8 companies and of companies incorporated outside India. Chairmanship/ Membership of Board Committees includes only audit and Stakeholders Relationship Committees.

1. Financial year April 24 to March 25:

	Atendance Partculars	Atendance Partculars	Atendance Partculars	Atendance Partculars	Atendance Partculars	No. of other Directorships and Commitee Membership/ Chairmanship	No. of other Directorships and Commitee Membership/ Chairmanship	Name of listed enttes where a person is a director and the Category of director
Name of the Director	Category	No. of Board Meetngs held	No. of Board Meetngs Atended	Last AGM held on 29/08/2024	Sitng Fees paid (Rs.)	Other Directorship in Public Limited Companies	Other Commitee Membership/ Chairmanship in Public Limited Companies
Mr. T. R. Kilachand	NEC(P)	5	5	Yes	60,000	2	2 Commitee Membership	Gujarat Poly Electronics Limited – Executve Chairman
Mr. P. T. Kilachand	MD(P)	5	5	Yes	--	7	1 Commitee Membership & 2 Chairmanship	Gujarat Poly Electronics Limited – Non – Executve Director
Mr. A. H. Mehta*	Dy.MD	5	1	N.A	--	--	--	--
Mr. N. T. Kilachand	NED(P)	5	4	Yes	48,000	2	--	--
Mr. V. V. Sahasrabudhe**	NED(I)	5	2	N.A	24,000	--	--	--
Mr. C. R. Desai**	NED(I)	5	2	N.A	24,000	--	--	Gujarat Poly Electronics Limited – Non – Executve Independent Director
Ms. N. S. Mehendale@	NED(I)	5	5	Yes	60,000	--	--	Gujarat Poly Electronics Limited – Non – Executve Independent Director
Mr. Y. S. Mathur#	NED(I)	5	5	Yes	60,000	--	--	--

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SIXTY - EIGHTH ANNUAL REPORT

POLYCHEM LIMITED

POLYCHEM	LIMITE	D				SIXTY-	EIGHTH A	NNUAL REPORT
Mr. A. A. Dalal$	NED(I)	5	3	Yes	36,000	2	1 Commitee Chairmanship and 2 Commitee Membership	Avadh Sugar & Energy Limited – Independent Director Jamshri Realty Ltd – Independent Director
Ms. S. A. Jhaveri%	NED(I)	5	-	N.A	--	--	-	-
Mr. R. P. Vahi&	NED(I)	5	-	N.A	--	1	1 Commitee Chairmanship and 1 Commitee Membership	Gujarat Poly Electronics Limited – Independent Director

Notes:

1. NEC(P) – Non - Executive Chairman and Promoter.

2. NED(I) – Non-Executive Director - Independent

3. NED(P) – Non-Executive Director & Promoter

4. Dy. MD – Deputy Managing Director

5. MD(P) – Managing Director and Promoter

*Ceased to be a director due to demise on 19[th] June, 2024.

• **Ceased to be a director due to completion of second and final term on 4[th] August, 2024

• @Ceased to be a director due to completion of second and final term on 24[th] March, 2025

• Ceased to be a director due to completion of second and final term on 30[th] March, 2025

• $Appointed as Independent Director for initial five years w.e.f 1[st] August, 2024

• % Appointed as Independent Director for initial five years w.e.f 25[th] March, 2025

• &Appointed as Independent Director for initial five years w.e.f 31[st] March, 2025

2. Number of Board Meetings held and dates on which held:

During the financial year 2024-25, five Board meetings were held on the following dates:

• (a) 14[th] May, 2024 (b) 16[th] July, 2024

• (c) 8[th] August, 2024 (d) 13[th] November, 2024

• (e) 11[th] February, 2025

3. Disclosure of Relationships between directors inter-se:

• Mr. P. T. Kilachand, Managing Director and Mr. N. T. Kilachand, Director are sons of Mr. T. R. Kilachand, Chairman of the Company.

4. Separate Meeting of Independent Directors:

As stipulated by the code of Independent Directors under the Companies Act, 2013 and under regulation 25(3) of SEBI (LODR) Regulations, 2015, a separate meeting of the Independent directors of the company was held on 11[th] February, 2025 to review the performance of Non - Independent Directors and the Board as a whole, review of the performance of the Chairperson of the Company, assessment of the quality, quantity and timeliness of the flow of information between the Company’s Management and the Board and its committees.

the Company’s Management and the Board and its commitees.
Name of the Director	Member	No. of Meetng/s
		held	atended
Mr. A. A. Dalal	Chairman	1	1
Ms. N. S. Mehendale	Member	1	1
Mr. Y. S. Mathur	Member	1	1

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

5. Evaluation of Independent Directors and Boards Performance:

In compliance with the companies Act, 2013 and SEBI (LODR) Regulations 2015, the performance evaluation of the Independent Directors and Board as a whole was carried out during the year, the details of the same has been already given under directors’ report.

6. Familiarization Program:

The Company has taken up the initiative to familiarize the Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the company operates, business model of the Company, etc. The details of such familiarization program has been disclosed on the company’s website htp://www.polychemltd.com/Download/Polychem-%20Familiarisaton%20Programme.pdf

7. Details of Director appointed and re-appointed during the year:

• The details of Director being re-appointed in the ensuing Annual General Meeting has been given in the ‘Notice’ calling the Sixty – Eighth Annual General Meeting of the Company.

8. Details of Number of shares and Convertible Instruments held by Non-Executive directors: Except Mr T. R. Kilachand, Mr. N. T. Kilachand and Mr. R. P. Vahi who holds 1,938, 33,335 and 1 Equity Shares of Rs 10/each of the Company respectively, no other Non-Executive Director holds any shares or Convertible Instruments of the Company.

9. Code of Conduct

The Company has framed and adopted a Code of Conduct, which is applicable to all the directors and members of the senior management in terms of Regulation 17(5)(a) of SEBI (LODR) Regulations, 2015. The said code, lays the general principles designed to guide all directors and members of the senior management in making ethical decisions.

All Directors and members of the senior management have confirmed their adherence to the provisions of the said code.

Declaration

As provided under Regulation 26 (3) of SEBI (LODR) Regulations, 2015, we confirm that the Board Members and Senior Management of the Company have confirmed compliance with the Code for the year ended 31.03.2025.

For Polychem Limited

Parthiv T. Kilachand

Managing Director DIN 00005516

Mumbai, May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

III. Audit Committee

As on 31[st] March, 2025, there are four members in Audit Committee out of them three members are independent and one member is Managing Director.

(A) Terms of reference of the Audit Commitee are:

• (i) the recommendation for appointment, remuneration and terms of appointment of auditors of the company;

• (ii) review and monitor the auditor’s independence and performance, and effectiveness of audit process;

• (iii) examination of the financial statements and the auditors’ report thereon;

• (iv) approval or any subsequent modification of transactions of the company with related parties;

• (v) scrutiny of inter-corporate loans and investments;

• (vi) valuation of undertakings or assets of the company, wherever it is necessary;

• (vii) evaluation of internal financial controls and risk management systems;

• (viii) monitoring the end use of funds raised through public offers and related matters.

• (ix) other role as defined under Part C of regulation 18(3) of SEBI (LODR)Regulations, 2015.

(B) Compositon of Audit Commitee and Meetng held during the year:

The composition of the Audit Committee meets with the requirements of Section 177 of the Companies Act 2013 and Regulation 18 of SEBI (LODR) Regulations, 2015.

During the year 2024-25, four meetings of the Audit Committee were held on the following dates:

• (a) 14[th] May, 2024 (b) 8[th] August, 2024 (c) 13[th] November, 2024 (d) 11[th] February, 2025

(a) 14thMay, 2024 (b	) 8thAugust, 2	024 (c) 13thNo	024 (c) 13thNo	vember, 2024	(d) 11thFebruary, 2025
Name of the Director	Category	No. of Meetng/s		Sitng Fees Paid (Rs.)	Remark/s
		Held	Atended
Mr. V. V. Sahasrabudhe	Chairman	4	1	10,000/-	Chairman upto 4thAugust,2024
Mr. P. T Kilachand	Member	4	4	-	-
Mr. C. R. Desai	Member	4	1	10,000/-	Member upto 4thAugust,2024
Mr. Y. S. Mathur	Member / Chairman	4	4	40,000/-	Chairman from 5thAugust, 2025 to 30th March,2025
Ms. N.S. Mehendale	Member	4	4	40,000/-	Member upto 24thMarch,2025
Mr. A. A. Dalal	Chairman / Member	4	3	30,000/-	(Member w.e.f 5thAugust, 2025, Chairman w.e.f 31stMarch,2025)
Ms. S. A. Jhaveri	Member	4	N.A	-	(Member w.e.f. 25thMarch,2025)
Mr. R. P. Vahi	Member	4	N.A	-	(Member w.e.f. 31stMarch,2025)

All members of the Audit committee have knowledge of finance, accounts and company law. The quorum for audit committee is minimum of two members.

The Company Secretary acts as the Secretary to the Committee.

(C) Review of informaton by Audit Commitee

The Audit Committee shall mandatorily review the following information:

1. Management discussion and analysis of financial condition and results of operations;

2. Verify with regard to related party transactions, whether Committee laid down parameters for determining a particular transaction as significant and reviewed the necessity of such transactions;

3. Management letters / letters of internal control weaknesses issued by the statutory auditor;

4. Internal audit reports relating to internal control weaknesses; and

5. The appointment, removal and terms of remuneration of the Chief internal auditor shall be subject to review by the Audit Committee.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

IV. Nomination and Remuneration Committee:

It comprises of three Directors, all of them are Non-Executive Independent Directors.

(A) Terms of Reference of Nominaton and Remuneraton Commitee:

The Committee is empowered –

1. Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration of the directors, key managerial personnel and other employees.

2. Formulation of criteria for evaluation of Independent Directors and the Board.

3. Devising a policy on Board diversity.

4. Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the Board their appointment and removal. The company shall disclose the remuneration policy and the evaluation criteria in its Annual Report.

5. To extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors.

6. Recommend to the board, all remuneration, in whatever form, payable to senior management.

(B) Compositon of Nominaton and Remuneraton Commitee and Meetng held during the year:

The Committee comprises of three Directors, all of them are Non-Executive Independent Directors. During the year 2024-25, three meeting of the Nomination and Remuneration Committee was held as under

(a) 14[th] May, 2024 (b) 16[th] July, 2024 (c) 11[th] February, 2025

(a) 14thMay, 2024	(b) 16thJuly, 2024	(c) 11thFebruary,	(c) 11thFebruary,	2025
Name of the Director	Category	No. of Meetng/s		Remark/s
		Held	Atended
Mr. V. V. Sahasrabudhe	Chairman	3	1	Chairman upto 4thAugust,2024
Mr. C. R. Desai	Member	3	1	Member upto 4thAugust,2024
Mr. Y. S. Mathur	Member / Chairman	3	3	Chairman from 5thAugust, 2025 to 30th March,2025
Ms. N. S. Mehendale	Member	3	3	Member upto 24thMarch,2025
Mr. A. A. Dalal	Chairman/ Member	3	2	(Member w.e.f 5thAugust, 2025, Chairman w.e.f 31stMarch,2025)
Ms. S. A. Jhaveri	Member	3	N.A	(Member w.e.f. 25thMarch,2025)
Mr. R. P. Vahi	Member	3	N.A	(Member w.e.f. 31stMarch,2025)

(C) Remuneraton Policy and Details of Remuneraton:

The Board has adopted the remuneration policy which is available on the website of the company.

http://www.polychemltd.com/download/Criteria%20for%20Appointment%20&%20Evaluation%20of%20Board%20 of%20Directors_14.pdf

None of the Non-Executive Director receives salary, benefits, bonuses, stock options, pension etc. except sitting fees and Commission. The Company pays sitting fees to all Directors excluding the Managing Director of the Company for attendance during the meeting. The Company has also paid commission not exceeding 1% of its net profit to all the Non-Executive Directors of the Company for the F.Y. 2023-24. The Company did not have any pecuniary relationship or transactions with the Non-Executive Directors. htp://www.polychemltd.com/Criteria%20of%20making%20payments%20to%20Non-Executve%20Director.aspx

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Details of Remuneration to all the directors:

POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT	POLYCHEM LIMITED SIXTY-EIGHTH ANNUAL REPORT
Details of Remuneraton to all the directors: (in Rupees)
Sr. No.	Name of Director	Salary	Perquisites & allowances	Commission	Bonus/ Incentves	Stock optons granted	Sitng Fees	Total
1	Mr. T. R. Kilachand	NIL	NIL	1,11,000	NIL	NIL	60,000	1,71,000
2	Mr. P. T. Kilachand	39,42,209	18,13,250	NIL	NIL	NIL	NIL	57,55,459
3	Mr. A. H. Mehta	14,33,532	30,937	NIL	NIL	NIL	NIL	14,64,469
4	Mr. N. T. Kilachand	NIL	NIL	1,11,000	NIL	NIL	48,000	159,000
5	Mr. V. V. Sahasrabudhe	NIL	NIL	1,11,000	NIL	NIL	34,000	145,000
6	Mr. C. R. Desai	NIL	NIL	1,11,000	NIL	NIL	34,000	145,000
7	Ms. N.S. Mehendale	NIL	NIL	1,11,000	NIL	NIL	1,00,000	2,11,000
8	Mr. Y. S. Mathur	NIL	NIL	1,11,000	NIL	NIL	1,00,000	2,11,000
9	Mr. A. A. Dalal	NIL	NIL	NIL	NIL	NIL	66,000	66,000
10	Ms. S. A. Jhaveri	NIL	NIL	NIL	NIL	NIL	NIL	NIL
11	Mr. R. P. Vahi	NIL	NIL	NIL	NIL	NIL	NIL	NIL

Note: The remuneration to the Directors does not include provident fund, gratuity and superannuation.

V. Stakeholders Relationship Committee:

The Constitution of Stakeholders Relationship Committee is as per requirement of Section 178(5) of the Companies Act, 2013. The Committee has been delegated the power of attending to share related query. Mr. T. R. Kilachand, Non – Executive Director heads the committee.

During the year 2024-25, four meeting of the Stakeholders Relationship Committee were held on the following dates:

• (a) 19[th] July, 2024 (b) 25[th] October, 2024

• (c) 31[st] January, 2025 (d) 31[st] March, 2025

(a) 19thJuly, 2024 (c) 31stJanuary, 2025	(b) (d)	25thOctober, 2024 31stMarch, 2025	25thOctober, 2024 31stMarch, 2025
Name of the Director	Category	No. of Meetng/s		Remark/s
		Held	Atended
Mr. V. V. Sahasrabudhe	Chairman	4	1	Chairman up to 4thAugust, 2024
Mr. T. R. Kilachand	Chairman / Member	4	4	Chairman w.e.f 5thAugust, 2024
Mr. P. T. Kilachand	Member	4	4	-
Mr. Y. S. Mathur	Member	4	2	Member from 5thAugust, 2024 to 30thMarch, 2025
Mr. A. A. Dalal	Member	4	1	Member w.e.f 31stMarch, 2025

The Committee would look into the redressal of the shareholders’ complaints in respect of all matters including transmission of shares, deletion of names, duplicate share certificate, non-receipt of Share Certificates and investors complaints etc. Ms. D. V. Chauhan, Company Secretary & Compliance Officer provided secretarial support to the Committee and was also the designated Compliance Officer of the Company.

9 complaints were received during the year, the same was disposed within time frame and therefore, no complaints were pending as on 31[st] March, 2025.

VI. General Body Meetings:

A Annual General Meeting (AGM)

The particulars of Annual General Meetings / Extraordinary General Meetings of the Company held during the last 3 years are as under.

Year	Day, Date and Time	Venue	Whether Special Resoluton passed, if yes then menton
2023-2024	67thAGM held on Thursday,29thAugust,2024 at 11.00 a.m	Through Video Conference	1
2022-2023	66thAGM held on Tuesday,29thAugust,2023 at 11.00 a.m	Through Video Conference	2
2021-2022	65thAGM held on Monday,29thAugust,2022 at 11.00 a.m	Through Video Conference	-

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Extraordinary General Meeting

No extraordinary general meeting of the members was held during last 3 years.

B Postal ballot

During the financial year, the following Special resolutions were passed by the shareholders by the requisite majority by way of postal ballot through e-voting.

Date of postal ballot notce	Resoluton passed	Votng results	Approval date	Scrutnizer
16thJuly, 2024	1. Appointment of Mr. Anand A. Dalal (DIN 00353555) as Non-Executve Independent Director of the Company	Votng in favour: 99.99% Votng against: 0.01%	21stAugust, 2024	M/s Ragini Choksi & Co., (CP No. 1436) Practcing Company Secretaries.
	2. Contnuaton of Directorship of Mr. Yogesh S. Mathur (DIN 01059977) as Non – Executve Independent Director of the Company	Votng in favour: 99.99% Votng against: 0.01%
11thFebruary, 2025	1. Appointment of Ms. Saloni A. Jhaveri (DIN 00029474) as Non- Executve Independent Director of the Company	Votng in favour: 100.00% Votng against: 0.00%	22ndMarch, 2025	M/s Ragini Choksi & Co., (CP No. 1436) Practcing Company Secretaries.
	1. Appointment of Mr. Rajan P. Vahi (DIN 00033940) as Non- Executve Independent Director of the Company	Votng in favour: 99.99% Votng against: 0.01%

The voting results are made available on our website at htp://www.polychemltd.com/Postal%20Ballot.aspx

Procedure for postal ballot

The postal ballot was carried out as per the provisions of Sections 108 and 110 and other applicable provisions of the Act, read with the Rules framed thereunder and applicable circulars issued by the Ministry of Corporate Affairs from time to time.

VII. Skills/Expertise/ Competence of the Board of Directors of the Company

The following is the list of core skills/expertise/competencies possessed by the Board of Directors of the Company, which are essential for the functioning of the Company in an effective manner.

a) Market Exploration & Potential Marketing:-

Experience in developing promotional strategies to increase the sales in the existing and explore potential market for the Company.

b) Service on the Board’s of Various Companies:-

Experience of serving on the Board’s of different companies in order to develop insights about Corporate Governance, Management Responsibility, Protecting Stakeholders interest.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

c) Financial Expertise:-

Expertise in accounting and financial control functions. Possessing analytical skills. Expertise in preparation of financial strategies for the long term growth of the business of the Company.

d) Law & policies:-

Awareness of the existing law and economical policies applicable to the Company thereby ensuring proper legal and statutory compliances and appropriate application of policies to the advantage of the Company.

e) Expansion, Modification & Updation:

A significant background about the technology applicable to the company resulting in how to implement technological updates into the Business of the Company

In the table below, the specific areas of focus or expertise of individual Board members have been highlighted. However, the absence of a mark against a member’s name does not necessarily mean the member does not possess the corresponding skills/expertise/competencies.

Name	Market Exploraton & Potental Marketng	Service on the Board’s of Various Companies	Financial Expertse	Law & Policies	Expansion Modifcaton & Updaton
Mr. T. R. Kilachand					
Mr. P. T. Kilachand					
Mr. N. T. Kilachand					
Mr. A. A. Dalal					
Ms. S. A. Jhaveri					
Mr. R. P. Vahi					

VIII . Disclosure:

Senior Management:

Mr. P. T. Kilachand, Managing Director, Ms. K. V. Panchasara, Chief Financial Officer, and Ms. D. V. Chauhan, Company Secretary constitutes ‘Senior Management’. Changes in Senior Management since the close of fnancial year is as below:

Mr. A. H. Mehta, Dy. Managing Director of the Company ceased to be a director of the Company w.e.f 19th June, 2024 due to demise.

1. Disclosures on materially significant related party transactions that may have a potential conflict with the interest of company at large:

The Board noted that certificate has been received from the management that there have not been any material financial or commercial transactions during the year where management has personal interest that may have a potential conflict with the interest of company at large.

The details of transactions of the company with the related parties have been disclosed as Note No. 4.09 of the Notes on Accounts.

2. Details of Non-Compliance by the company, penalties, strictures:

There are no strictures or Material penalties imposed on the Company either by SEBI, Stock Exchange or any statutory authorities on any matter related to capital markets during the last three years.

3. Whistle Blower Mechanism:

The Company has adopted the whistle blower policy and has established a vigil mechanism under Regulation 22 of SEBI (LODR) Regulations 2015, the details of mechanism and policy have been disclosed on the website. It is hereby affirmed that no person has been denied access to the audit committee.

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POLYCHEM LIMITED

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4. Material Subsidiary:

The Company has one listed Material Subsidiary under regulation 16(1)(c) of SEBI (LODR) Regulations, 2015 i.e. Gujarat Poly Electronics Limited (GPEL) incorporated on 14[th] September, 1989 at Ahmedabad, Gujarat.

The Statutory Auditor of GPEL are M/s Mahendra Shah & Co., Chartered Accountants appointed at 31[st] AGM held on 31[st] August, 2020 for the second term of 5 years.

The Company has adopted the Policy for determining Material Subsidiaries. Link of the same is htp://www.polychemltd. com/Download/Policy%20for%20Determining%20Material%20Subsidiaries.pdf

5. Details of Compliance with Mandatory Requirements:

The company has complied with all the mandatory requirements as mentioned in SEBI (LODR) Regulations, 2015.

6. Web Link of Policies :

• a) The Company has framed a Policy on Material Subsidiary, the web link for the same is htp://www.polychemltd.com/ Download/Policy%20for%20Determining%20Material%20Subsidiaries.pdf.

• b) The Company has framed a Policy on Related Party transaction, the web link for the same is htp://www.polychemltd.com/download/Related%20Party%20Transacton%20Policy_14.pdf.

7. The Company is not dealing in commodity and hence disclosure relating to commodity price risks and commodity hedging activities are not required.

8. Certificate of Non – Disqualification of Directors:

The Certificate as required under 10(i) of Part C of Schedule V of the SEBI (LODR) Regulations, 2015 issued by M/s. Ragini Choksi & Co., Practicing Company Secretary is enclosed and marked as Annexure A .

9. Annual Secretarial Compliance Report:

The Company has under taken an audit for the financial year 2024-25 for all applicable compliances as per SEBI Regulations and Circulars/Guidelines issued thereunder. The Annual Secretarial Compliance Report pursuant to Regulation 24A of Listing Regulations will be submitted to the Stock Exchange within 60 days of the end of the financial year.

10. There is no Non-Compliance of any requirement of Corporate Governance Report of sub-para (2) to (10) of the Part C of Schedule V of the Listing Regulations.

11. Details of total fees paid to statutory auditors:

The details of total fees for all services paid by the Company, on a consolidated basis, to the statutory auditor are as follows:

follows:
Sr. No.	Partculars	Amount
1	Limited Review	1,85,000
2	Statutory
	a. Standalone 2,25,000
	b. Consolidated 65,000	2,90,000
3	Tax Audit Fees	85,000
	Total	5,60,000

12. Disclosure in relation to Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013:

No. of Complaints fled during FY 2024-25	No. of Complaints disposed of during FY 2024-25	No. of Complaints pending as on end of FY 2024-25
0	0	0

13. During the year no loans/advances in the nature of loans to firms/companies in which directors are interested is given by the Company.

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14. Disclosures with respect to demat suspense account/ unclaimed suspense account:

• (a) aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year: NIL

• (b) number of shareholders who approached listed entity for transfer of shares from suspense account during the year: 1

• (c) number of shareholders to whom shares were transferred from suspense account during the year: NIL

• (d) aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year: 1 Shareholder comprising of 88 shares.

• (e) that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

IX. CEO/CFO Certification:

Mr. P. T. Kilachand, Managing Director and Ms. K. V. Panchasara, CFO, of the Company have certified to the Board that:

• (a) They have reviewed financial statements and the cash flow statement for the year and that to the best of their knowledge and belief: -

• These statements do not contain any materially untrue statements or omit any material fact or contain statements that might be misleading.

• These statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

• (b) There are, to the best of their knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violate the Company’s code of conduct.

• (c) They accept responsibility for establishing and maintaining internal controls for financial reporting and that they have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and they have disclosed to the auditors and the Audit Committee those deficiencies of which they are aware, in the design or operation of such internal control and that they have taken the required steps to rectify these deficiencies.

• (d) They further certify that they have indicated to the Auditors and Audit Committee -

• (i) there have been no significant changes in internal control over financial reporting during the year.

• (ii) there have been no changes in accounting policies during the year.

• (iii) there have been no instances of significant fraud of which they have become aware and the involvement therein, of management or an employee having significant role in the Company’s internal control system over financial reporting.

X. Discretionary Requirements under regulation 27(1) of SEBI (LODR) Regulations, 2015:

The company has complied with all the Mandatory requirements, apart from it the company has also adopted some nonmandatory requirements as follows

1. Audit Qualifications:

2. (a) The Company’s financial statement for the year ended 31[st] March, 2025 does not contain any qualification.

3. (b) Secretarial Audit Report for the year ended 31[st] March, 2025 does not contain any qualifications.

4. Reporting of Internal Auditor: The Internal Auditor reports to the Audit Committee.

XI. Means of Communications:

The quarterly results are communicated to Bombay Stock Exchange Ltd., Mumbai. These results are also published in one English Newspaper i.e The Free press Journal and in one Regional language newspaper i.e Navshakti times. Results of 4[th] quarter i.e Quarter ended 31[st] March, 2025 has been uploaded on the website of the company i.e www.polychemltd.com

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XII . General Shareholder Information:

General Shareholder Informaton:
AGM: Date Time Venue	12thAugust, 2025. 11 a.m. Through Video Conference
Financial Year	April 2024 to March 2025
Dividend	Dividend of Rs 20/- per equity share of Rs 10/- each (200%) will be paid on or afer 12thAugust,2025,subject to approval byshareholders.
Record Date	Tuesday,1stJuly,2025
Unclaimed Dividend	No Dividend is due to be transferred thisyear
Dividend transferred to IEPF	Dividend for the F.Y. 16-17 is transferred to IEPF on 14thOctober,2024
e-votng period	From 9.00 a.m.,8thAugust,2025 to 5p.m.,11thAugust,2025.
Cut-of date for e-votng	Tuesday,5thAugust,2025.
Dates of Book Closure	Wednesday 6thAugust, 2025 to Tuesday 12thAugust 2025 (both days inclusive)
Listng on Stock Exchange	BombayStock Exchange Ltd. Mumbai
Demat ISIN Numbers in NSDL & CDSL for Equity Shares	INE 752B01024
Stock Code	Mumbai 506605
Registrar and Share Transfer Agents	M/s. MUFG Intme India Pvt Ltd. C 101, 247 Park, Lal Bahadur Shastri Marg, Vikhroli West, Mumbai 400 083.Telephone:+91 022 49186000	Fax:+91 022 49186060 Email: rnt.helpdesk@in.mpms.mufg.com Website: htps://in.mpms.mufg.com/
Share Transfer System	Shares ar	e transferred onlyin demat mode.
Distributon of shareholding & Category-wise distributon	See table No. 1 & 2
De-materializaton of shares and liquidity	See table No. 3
Plant Locaton	SPECIALTY CHEMICALS W91,MIDC Phase II,Sonarpada,Dombivali(E)421 203.
Address for correspondence	Registered Ofce: 7, J. Tata Road, Churchgate Reclamaton, Mumbai 400 020.Telephone:022 22820048 Email:polychemltd@kilachand.com	Website:www.polychemltd.com CIN:L24100MH1955PLC009663

Table 1 - Distribution of shareholding as on 31-03-2025

Shares Range	Total Shares held	% of total shares	No. of Shareholders	% of total Shareholders
1 to 500	80,930	20.03	5,902	99.23
501 to 1000	10,562	2.61	15	0.25
1001 to 2000	13,977	3.46	11	0.18
2001 to 3000	10,685	2.65	4	0.07
3001 to 4000	14,268	3.53	4	0.07
4001 to 5000	13,988	3.46	3	0.05
5001 to 10000	20,700	5.12	3	0.05
10001 and above	2,38,935	59.14	6	0.10
Total	4,04,045	100.00	5,948	100.00

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Table 2 - Category wise distribution of shareholding as on 31-03-2025

Table	2 - Category wise distributon of shareholding as on 31-03-2025
Sr. No.	Category	No. of shareholders	No. of shares held	% of total shares
1.	Promoters	9	2,10,469	52.09
2.	Insttutons
	a. Banks/FI	11	790	0.20
	b. Insurance Companies	1	11,257	2.79
3.	Non- Insttutons
	a. Bodies Corporate	47	6,159	1.52
	b. NRI	65	1,109	0.27
	c. HUF	57	8,869	2.19
	d. ClearingMembers	1	6	0.00
	e. Trusts	3	92	0.02
	f. Bodies Corp– Ltd LiabilityPartnership	2	351	0.08
	g. IEPF	1	26,618	6.59
	h. Escrow Account	1	88	0.02
4.	Directors other thanpromoters and their relatves	1	23	0.02
5.	KeyManagerial Personnel	1	1	-
6.	Resident Individuals	5,748	1,38,213	34.21
	Total	5,948	4,04,045	100.00

Table 3 - Break-up of shares in physical & demat mode as on 31-03-2025

Mode	No of shareholders	% of total shareholders	No. of shares	% of total shares
Physical	2,604	43.78	18,123	4.49
Demat	3,344	56.22	3,85,922	95.51
Total	5,948	100.00	4,04,045	100.00

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ANNEXURE A

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS (pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members of Polychem Limited 7 Jamshedji Tata Road, Churchgate Reclamation, Mumbai - 400020.

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of POLYCHEM LIMITED having CIN: L24100MH1955PLC009663 and having registered office at 7 Jamshedji Tata Road, Churchgate Reclamation, Mumbai 400020 (hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my/our opinion and to the best of my/our information and according to the verifications (including Directors Identification Number (DIN) status at the portal (www.mca.gov.in) as considered necessary and explanations furnished to me / us by the Company & its officers.

I/We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on March 31, 2025 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. No.	Name of Director	DIN	Date of appointment in Company
1.	Parthiv Tanil Kilachand	00005516	03/12/1996
2.	Nandish Tanil Kilachand	00005530	27/07/2012
3.	Tanil Ramdas Kilachand	00006659	19/08/1986
4.	Anand Ashvin Dalal	00353555	01/08/2024
5.	Saloni Anand Jhaveri	00029474	25/03/2025
6.	Rajan Pyarelall Vahi	00033940	31/03/2025

Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification.

This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Ragini Chokshi & Co. (Company Secretaries)

Mumbai, May 14, 2025

Ragini Chokshi (Partner) C. P. No.: 1436 FCS No.: 2390 UDIN: F002390G000338187 P. R. Certificate No.: 4166/2023

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CERTIFICATE ON CORPORATE GOVERNANCE

To

The Members POLYCHEM LIMITED

7 Jamshedji Tata Road, Churchgate Reclamation, Mumbai- 400020

We have examined the compliance of the conditions of Corporate Governance by POLYCHEM LIMITED (‘theCompany’) for the financial year ended March 31, 2025, as stipulated in Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “the SEBI ListingRegulations”).

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination, as carried out in accordance with the Guidance Note on Certification of Corporate Governance issued by the Institute of the Company Secretaries of India (the “ICSI”), was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and Paragraphs C and D of Schedule V to the SEBI Listing Regulations for the year ended March 31, 2025.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Ragini Chokshi & Co. (Company Secretaries)

Ragini Chokshi (Partner)

Mumbai, May 14, 2025

C. P. No.: 1436 FCS No.: 2390 UDIN: F002390G000340167 P. R. Certificate No.: 4166/2023

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF POLYCHEM LIMITED

Report on Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Polychem Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and statement of Cash Flow for the year then ended and notes to the standalone financial statements including a summary of material accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and its profit, total comprehensive income, its changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics issued by ICAI. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in Annual report but does not include the consolidated financial statements, standalone financial statements and our auditor’s report thereon.Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other

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irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, Management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls systems in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the “Annexure A”, a statement on the matters specified in the paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act, based on our audit we report that:

3. i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

4. ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

5. iii. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

6. iv. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with relevant rules issued thereunder and relevant provisions of the Act;

7. v. On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164(2) of the Act;

8. vi. The observation relating to the maintenance of accounts and other matters connected therewith, are as stated in paragraph (ii) above;

9. vii. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls with reference to standalone financial statements;

10. viii. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended: In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act;

11. ix. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

    • a) The Company has disclosed the impact of pending litigations as at March 31, 2025 on its financial position in its standalone financial statements - Refer Note no. 4.02 to the standalone financial statements;

    • b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses. The Company did not have any long-term derivative contracts;

    • c) There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund;

    • d) (i) The Management has represented that, to the best of its knowledge and belief, as stated in the Note no. 4.18 (d) to the accounts no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate beneficiaries;

      • (ii) The Management has represented, that, to the best of its knowledge and belief, as stated in the Note no. 4.18 (e) to the accounts no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding,

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SIXTY - EIGHTH ANNUAL REPORT

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;

• (iii) Based on the audit procedures performed by us that has been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11 (e), as provided under (i) and (ii) above, contain any material mis-statement;

• e) The final dividend proposed with respect to previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable to the extent it applies to payment of dividend.

As stated in Note no. 4.10 to the standalone financial statements the Board of director’s of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act as applicable to the extent it applies to declaration of dividend.

• f) As stated in Note no. 4.20 of the accompanying standalone financial statements and based on our examination which included test checks, the company has used an accounting software for maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.The Company has also ensured preservation of audit trail as per the statutory requirements for record retention.

For Nayan Parikh & Co. Chartered Accountants 107023W Firm Registration No.:

Place: Mumbai Dated: May 14, 2025

Deepali Shrigadi Partner Membership No.: 133304 UDIN: 25133304BMGYCB3159

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ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph 1 under “Report on Other Legal and Regulatory Requirements” of our report on even date to the members of the Company on standalone financial statements for the year ended March 31, 2025:

• (i) a) (A) The Company is maintaing proper records showing full particulars, including quantitative details and situation of property, plant and equipments;

  • (B) The Company has maintained proper records showing full particulars of Intangible Assets;

• b) All Property, Plant and Equipment, have been physically verified by the management during the year according to a phased programme as designed by the management. This, in our opinion, is reasonable having regard to the size of the Company and nature of its assets. We have been further informed that there are no material discrepancies between the book records and the physical verification have been noticed;

• c) The Company does not hold any immovable properties which are freehold. In respect of immovable properties of land and building that have been taken on lease and classified as Right of Use Asset in the standalone financial statements, the lease agreements are in the name of the Company;

• d) The Company has not revalued any of its Property, Plant and Equipment (including Right of Use assets) and intangible assets during the year;

• e) As per the information provided to us, there are no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly, reporting under clause 3(i)(e) of the Order is not applicable to the Company;

• (ii) a) Inventories have been physically verified during the year by the management. In our opinion, the coverage and procedure of verification is appropriate and the frequency of verification is reasonable. There were no discrepancies of 10% or more in aggregate for each class of inventory noticed on physical verification as compared to the book of accounts;

• b) According to the information and explanations given to us, at any point of time of the year, the Company has not been sanctioned any working capital facility from banks or financial institutions on the basis of security of current assets and hence reporting under paragraph 3(ii)(b) of the Order is not applicable

• (iii) The Company has not provided any guarantee or security to companies, firms, Limited Liability Partnerships or any other parties during the year. The Company has made investments and granted loans or advances in the nature of loans to other parties, in respect of which :

• a) The Company has provided interest-free unsecured loans or advances in the nature of loans during the year and details of which are given below:

of which are given below:
Partculars	Aggregate Amount during the year (Rs. In ‘Lakhs)	Balance outstanding at the balance sheet date (Rs. In ‘Lakhs)
Others (Employees)	19.11	31.06

The Company has not given guarantee or provided security to any other entity during the year.

• b) ln relation to investments made, loans and advances granted, we are of the opinion that the terms and conditions of the loans and advances provided are not prejudicial to the interest of the Company.

• (c) ln respect of loans granted or advances in the nature of loans provided by the Company,the schedule of repayment of principal has been stipulated and the repayments of principal amounts are regular as per stipulation in such cases.

• (d) According to information and explanations given to us and based on the audit procedures performed in respect of loans granted and advances in the nature of loans provided by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.

• (e) No loan or advance in the nature of loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (f) The Company has not granted Loans or advances in the nature of loans which are repayable on demand or without specifying any terms or period of repayment. Hence, the requirements under paragraph 3(iii)(f) of the Order are not applicable to the company

• (iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made;

• (v) In our opinion and according to the information and explanation given to us, the Company has not accepted deposits from the public and therefore, the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable to the Company. We have been informed by the management that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal in this regard;

• (vi) Having regard to the nature of the Company’s business / activities, reporting under clause (vi) of the Order is not applicable

• (vii) a) The Company has generally been regular in depositing with appropriate authorities undisputed statutory dues such as goods and services tax, provident fund, employees’ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and other applicable statutory dues. According to information and explanations given to us, no undisputed statutory dues payable were in arrears as at March 31, 2025, for a period of more than six months from the date they became payable;

• b) According to the information and explanation given to us, there are no outstanding disputed dues payable by the Company in case of income tax, goods and service tax or cess and any other statutory dues as on March 31, 2025.

• (viii) According to the information and explaination provided to us, there are no transactions that are not recorded in the books of accounts which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, reporting under clause 3(viii) of the Order is not applicable to the Company;

• (ix) a) The Company has not taken any loans or other borrowings from any lender. Hence reporting under paragraph 3(ix)(a) of the Order is not applicable to the Company;

• b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority;

• c) The Company has not taken any terms loan. Accordingly, reporting under paragraph 3(ix)(c) of the Order is not applicable to the Company;

• d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements, the Company has not raised any funds on short-term basis. Accordingly, the reporting under paragraph 3(ix)(d) of the Order is not applicable to the Company;

• e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary;

• f) The Company has not raised loans during the year on the pledge of securities held in its subsidiary and hence reporting on paragraph 3(ix)(f) of the Order is not applicable;

• (x) a) The Company has not raised any money by way of intital public offer or further public offer (including debt instrument) during the year. Acordingly, paragraph 3(x) of the Order is not applicable.

• b) According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the current financial year. Accordingly, reporting under paragraph 3(x)(b) of the Order is not applicable to the Company;

• (xi) a) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud by the Company or on the Company has been noticed or reported during the year;

• b) To the best of our knowledge, no report under section 143(12) of the Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report;

• c) No whistle-blower complaints were received during the year by the Company;

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (xii) In our opinion and according to information and explanations given to us, the Company is not a Nidhi Company and hence reporting under paragraph 3(xii) of the Order is not applicable;

• (xiii) To the best of our knowledge and belief and according to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Act where applicable and the details have been disclosed in the financial statements, etc., as required by the applicable accounting standards.

• (xiv) a) In our opinion and based on our examination, the Company has an internal audit system commensurate with the size and nature of its business;

• b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

• (xv) According to information and explanations given to us, in our opinion during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them and hence provisions of section 192 of the Act are not applicable to the Company;

• (xvi) a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under paragraph 3(xvi)(a),(b) and (c) of the Order is not applicable to the Company;

• b) The Group does not have any Core Investment Company (CIC) as part of the Group as per the definition of Group contained in the Core Investment Companies (Reserve Bank) Directions, 2016 and hence the reporting under paragraph (xvi)(b) of the Order is not applicable;

• (xvii) The Company has not incurred any cash losses in the financial year covered by our audit and in the immediately preceding financial year;

• (xviii) There has been no resignation of the statutory auditors during the year. Accordingly, reporting under paragraph 3(xviii) of the Order is not applicable to the Company;

• (xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due; and

• (xx) The Company has fully spent the required amount towards Corporate Social Responsibility (“CSR”) and there are no unspent CSR amount for the year requiring a transfer to a Fund specified in schedule VII to the Act or special account in compliance with the provision of section 135(6) of the said Act. Accordingly, reporting under paragraph 3(xx) of the Order is not applicable for the year.

For Nayan Parikh & Co. Chartered Accountants 107023W Firm Registration No.:

Place: Mumbai Dated: May 14, 2025

Deepali Shrigadi Partner Membership No.: 133304 UDIN: 25133304BMGYCB3159

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph 2(vii) under “Report on Other Legal and Regulatory Requirements” of our report on even date to the members of the Company on standalone financial statements for the year ended March 31, 2025

We have audited the internal financial controls with reference to financial statements of the Company as of March 31, 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (‘Guidance Note’) issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility for Internal Financial Controls

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

A company’s internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the standalone financial statements.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2025 based on the internal controls with reference to standalone financial statements criteria established by the Company considering the essential components of internal controls stated in the Guidance Note.

For Nayan Parikh & Co. Chartered Accountants 107023W Firm Registration No.:

Place: Mumbai Dated: May 14, 2025

Deepali Shrigadi Partner Membership No.: 133304 UDIN: 25133304BMGYCB3159

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

STANDALONE BALANCE SHEET AS AT MARCH 31, 2025

STANDALONE BALANCE SHEET AS AT MARCH 31, 2025	STANDALONE BALANCE SHEET AS AT MARCH 31, 2025	STANDALONE BALANCE SHEET AS AT MARCH 31, 2025	STANDALONE BALANCE SHEET AS AT MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
Partculars Note No.		As at March 31,
		2025	2024
ASSETS Non-current Assets Property, plant and equipment 2.01 Right - to - use asset 2.01 Other Intangible assets 2.02 Financial assets Investments 2.03 Loans 2.04 Other fnancial assets 2.05 Deferred tax assets (Net) 2.06 Other non-current assets 2.07 Total non-current assets Current Assets Inventories 2.08 Financial Assets Trade receivables 2.09 Cash and cash equivalents 2.10 Bank balances other than cash and cash equivalents 2.11 Loans 2.04 Other fnancial assets 2.05 Current tax assets (Net) 2.12 Other current assets 2.07 Total current assets Total Assets EQUITY AND LIABILITIES Equity Equity Share capital 2.13 Other Equity 2.14 Total equity Liabilites Non-current liabilites Financial Liabilites Lease Liability Total non-current liabilites Current Liabilites Financial Liabilites Lease Liability Trade payables 2.16 Total oustanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Other fnancial liabilites 2.15 Other current liabilites 2.17 Provisions 2.18 Total current liabilites Total Equity and Liabilites Summary of Material Accountng Policies 1 Refer accompanying notes. These notes are an integral part of the fnancial statements.		101.52 94.28 3.83 2,294.36 21.20 31.61 46.25 7.60 2,600.65 491.69 243.87 194.55 76.80 9.87 2.65 25.23 90.73 1,135.39 3,736.04 40.40 3,356.78 3,397.18 83.11 83.11 21.17 8.62 40.25 74.99 110.19 0.53 255.75 3,736.04	123.10 119.50 5.71 1,809.40 15.63 153.04 35.57 3.32
			2265.27
			454.30 397.66 183.01 112.51 9.05 2.57 0.10 109.83
			1,269.03
			3534.30
			40.40 3148.09
			3188.49
			104.08
			104.08
			17.90 5.49 53.03 67.72 97.03 0.56
			241.73
			3534.30

As per our report of even date For and on behalf of the Board of Directors For Nayan Parikh & Co. Chartered Accountants Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Firm Registration No.: 107023W Nandish T. Kilachand Director (DIN No.:00005530) Deepali N Shrigadi Kanan V. Panchasara Chief Financial Officer Partner Deepali V. Chauhan Company Secretary & Compliance Officer Membership No.: 133304 Place: Mumbai Date: May 14, 2025 Place: Mumbai Date: May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

STANDALONE STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Partculars Note No.	For the Year Ended March 31	For the Year Ended March 31	For the Year Ended March 31
		2025	2024
INCOME Revenue from operatons 3.01 Other Income 3.02 Total Income EXPENSES Cost of materials consumed 3.03 Changes in inventories 3.04 Processing charges Employee benefts expense 3.05 Finance Cost 3.06 Depreciaton and amortzaton expense 3.07 Other expenses 3.08 Total Expenses Proft before tax Tax expenses 3.09 Current tax (for the year) Current tax (relatng to prior years) Deferred tax Total tax expense Proft for the period Other comprehensive income/(loss) Items that will not be reclassifed to proft or loss Remeasurements of post employment beneft obligaton Income tax relatng to these items 3.09 Total other comprehensive income Total comprehensive income for the period Earnings per equity share Basic (in Rs.) Diluted (in Rs.) Summary of material accountng policies 1 Refer accompanying notes. These notes are an integral part of the fnancial statements.		2,381.43 311.76 2,693.19 1,211.40 (39.22) 312.93 386.99 10.25 80.88 335.80 2,299.03 394.16 63.25 2.51 (8.36) 57.40 336.76 (9.21) 2.32 (6.89) 329.87 83.35 83.35	3,686.79 131.89
			3,818.68
			1,830.71 (1.55) 429.75 389.18 10.43 82.40 306.96
			3,047.88
			770.80 170.00 1.67 (4.57)
			167.10
			603.70
			(7.72) 1.94
			(5.78)
			597.92
			149.41 149.41

As per our report of even date

For and on behalf of the Board of Directors

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Equity share capital	Amount
Balance as at April 1, 2023 Changes in equity share capital during the year Balance as at March 31, 2024 Changes in equity share capital during the year Balance as at March 31, 2025	40.40 -
	40.40
	-
	40.40

Changes in equity share capital during the year Balance as at March 31, 2025	- 40.40
Other Equity
Partculars	Securites Premium Account General Reserve Capital Redempton Reserve Retained earnings Total
Balance as at April 1, 2023 Proft for the year Other comprehensive income/(loss) Total comprehensive income for the year Dividend Paid Balance as at March 31, 2024 Proft for the year Other comprehensive income/(loss) Total comprehensive income for the year Dividend Paid Balance as at March 31, 2025	1,424.37 278.22 50.00 878.40 2,630.99 - - - 603.70 603.70 - - - (5.78) (5.78)
	1,424.37 278.22 50.00 1,476.32 3,228.91 - - - (80.81) (80.81)
	1,424.37 278.22 50.00 1,395.51 3148.09 - - - 336.76 336.76 - - - (6.89) (6.89)
	1,424.37 278.22 50.00 1,725.40 3,477.99 - - - (121.21) (121.21)
	1,424.37 278.22 50.00 1,604.19 3,356.78

A dividend of Rs. 20/- per equity share i.e. 200% of the face Value of Rs.10/- each (Previous Year - Rs. 30/- per equity share i.e. 300 % of the face value of Rs.10/- each) has been recommended by the Board of Directors which is subject to the approval of the shareholders.

As per our report of even date

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

For and on behalf of the Board of Directors

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025

AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025	AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025	AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025	AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
Partculars		For the Year Ended March 31
		2025	2024
Cash fow from operatng actvites Net Proft before tax from Contnuing Operatons Non-cash Adjustment to Proft Before Tax: Depreciaton and amortzaton expense Dividend Income Gratuity & Compensated absences Interest Income Amount writen of Amount no longer payable writen back Loss of property, plant and equipment MTM (Gain)/loss on forward contracts MTM Gain (Including fair value changes in fnancial instruments) Gain on sale of Invesments Bad Debts Loss/(Proft) on sale of Property, plant and equipment Finance Cost on lease Unrealised gain and loss on foreign exchange Working Capital Adjustments: Decrease/(Increase) in trade receivables Increase in inventories Decrease in trade payables (Increase)/Decrease in other fnancial assets (Increase)/Decrease in other non-current assets Decrease/(Increase) in other current assets Decrease in other current liabilites Increase/(Decrease) in other fnancial liabilites Cash generated from operatons Direct taxes paid (net of refunds) Net cash fow from operatng actvites (A) Cash fow from investng actvites: Payments for acquisiton of property, plant and equipment Payments for acquisiton of intangible assets Loans & advance payments to employees Proceeds from sale of property, plant and equipment Redempton/(Investment) in Fixed deposits (Net) Investment in mutual funds & shares Proceeds from sale of investments Interest received Dividend received Net cash fow used in investng actvites (B)		394.16 80.88 (1.59) 9.67 (25.06) 0.51 (0.11) 0.56 (0.46) (108.53) (167.44) 0.29 (0.06) 10.25 (9.84) 183.23 163.29 (37.39) (9.53) (1.18) (4.28) 14.39 (5.75) 7.26 310.04 90.88 219.16 (29.83) (2.95) (6.39) 0.08 162.57 (534.98) 326.03 25.44 1.59 (58.44)	770.80 82.40 (1.32) 5.15 (12.23) 0.00 (0.01) - 2.36 (110.74) - - 0.08 10.43 (7.38)
			739.54 (69.30) (8.15) (72.09) 2.84 1.68 (13.64) (14.54) (20.40)
			545.95 149.10
			396.85
			(27.78) (4.49) (11.57) 0.07 (160.00) (49.91) 0.57 10.35 1.32
			(241.44)

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

AUDITED STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Partculars		For the Year Ended March 31	For the Year Ended March 31
		2025	2024
Cash fows from fnancing actvites Finance lease payments Dividends Paid Net cash fow used in fnancing actvites (C) Net Increase in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Reconciliaton of Cash and cash equivalents as per cashfow statement Cash and cash equivalents Balances with banks: On current accounts Deposits with original maturity of less than 3 months Balance as per the cash fow statement		(27.97) (121.21) (149.18) 11.54 183.01 194.55 35.55 159.00 194.55	(26.38) (83.03)
			(109.41)
			46.00 137.01
			183.01
			159.01 24.00
			183.01

Note:

1. Above statement has been prepared by using Indirect method as per Ind AS - 7 on Statement of Cash flows.

2. Changes in liabilities arising from financing activities:

Pariculars As at March 31, 2024 Net cash fows	Non cash changes As at March 31, 2025 Fair value changes
Lease Liabilites 121.98 (27.97)	10.25 104.28
Total liabilites from fnancingactvites 121.98 (27.97)	10.25 104.28

1. The Company incurred an amount of Rs 7.00 Lakhs (March 31, 2024 : Rs. Nil), towards CSR expenditure for purposes other than construction / acquisition of any asset

As per our report of even date

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi

Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

For and on behalf of the Board of Directors

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

MATERIAL ACCOUNTING POLICIES AND NOTES ON ACCOUNTS ON STANDALONE FINANCIAL STATEMENTS

Background

Polychem Limited is engaged in the manufacturing of specialty chemicals and property development. The Company has manufacturing plant in India and sells it in Domestic as well as International market. The Company is Public Limited Company domiciled in India and is listed on the Bombay Stock Exchange (BSE).

1.00 Material Accountng Policies

This note provides a list of the material accounting policies adopted in the presentation of these standalone financial statements.

1.01 BASIS OF PREPARATION

Compliance with Ind AS :

The standalone financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (“the Act”), and relevant rules issued there under. In accordance with proviso to the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial statements are in accordance with the definitions and other requirements specified in the applicable Accounting standards.

Authorizaton of standalone fnancial statements

The standalone financial statements were approved for issue by Board Of Directors on May 14, 2025.

Historical cost conventon:

The financial statements have been prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date:

• certain financial assets and liabilities are measured at fair value; and

• defined benefit plans – fair value of plan assets less the present value of the defined benefit obligations.

1.02 FUNCTIONAL AND PRESENTATION CURRENCY

These standalone financial statements are presented in India Rupees (INR), which is also the company’s functional currency. All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest Lakhs, except where otherwise indicated.

1.03 CURRENT VERSUS NON-CURRENT CLASSIFICATION

All assets and liabilities have been classified as current or non-current as per Company’s normal operating cycle. Based on the nature of operations, the Company has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and liabilities.

1.04 MEASUREMENT OF FAIR VALUES

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and

non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

1.05 USE OF JUDGEMENTS, ESTIMATES & ASSUMPTIONS

While preparing standalone financial statements in conformity with Ind AS, the management makes certain estimates and

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on our estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecast and the best estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions. The management continually evaluate these estimates and assumptions based on the most recently available information.

Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the standalone financial statements are as below:

Key sources of estimation uncertainty

• i) Financial instruments; (Refer note 4.07)

• ii) Useful lives of property, plant and equipment and intangible assets; (Refer note 1.07)

• iii) Valuation of inventories; (Refer note 1.11)

• iv) Measurement of defined benefit obligations, key actuarial assumptions; (Refer note 4.03)

• v) Evaluation of recoverability of deferred tax assets; (Refer note 2.06) and

• vi) Contingencies. (Refer note 4.02)

1.06 FOREIGN CURRENCY TRANSACTIONS

Functonal and presentaton currency

The Company’s standalone financial statements are prepared in INR, which is also the Company’s functional and presentation currency.

Transactons and balances

Monetary items

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in Statement of Profit and Loss.

Non – Monetary items

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

1.07 PROPERTY, PLANT AND EQUIPMENT

Recogniton and Measurement

Property, Plant and Equipment (including capital work-in-progress) is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price, non-refundable taxes, any costs directly attributable to bringing the asset into the location and conditions necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, finance cost. The purchase price is the aggregate amount paid and the fair value of any other consideration given to acquire the asset.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred.

The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end, and changes, if any, are accounted prospectively.

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Depreciaton on Property, plant and equipment

Depreciation on Property, Plant & Equipment is provided on written down value method. In accordance with requirements prescribed under Schedule II of Companies Act, 2013, the Company has assessed the estimated useful lives of its Property, Plant & Equipment and has adopted the useful lives and residual value as prescribed in Schedule II.

In case of additions/deletions during the year, the depreciation is computed from the month in which such assets are put to use and upto the previous month of sale or disposal as the case may be. In case of impairment, depreciation is provided on the revised carrying amount over its remaining useful life.

All assets costing up to Rs. 5,000 (in ₹ ) are fully depreciated in the year of capitalization.

Derecogniton of Property, Plant and Equipment

An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of an item of Property, Plant and Equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

1.08 INTANGIBLE ASSETS

Recogniton and measurement

Intangible assets with finite useful lives that are acquired are recognised only if they are separately identifiable and the Company expects to receive future economic benefits arising out of them. Such assets are stated at cost less accumulated amortization and impairment losses. Intangible Assets with indefinite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses.

Amortsaton of intangible assets

Intangible assets with finite useful lives are amortised on a straight line basis over their useful economic lives and assessed for impairment whenever there is indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each year end. The amortisation expense on Intangible assets with finite lives and impairment loss is recognised in the Statement of Profit and Loss.

Derecogniton of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.

1.09 IMPAIRMENT OF ASSETS (Other than Financial Assets)

Carrying amount of tangible assets, intangible assets and investments in subsidiary (which is carried at cost) is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Company’s assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.10 LEASES

As a Lessee

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified

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asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term ending within 12 months and the Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

1.11 INVENTORIES

Inventories are valued as follows:

Raw materials, packing materials, work-in-process and finished goods are valued at cost or net realizable value, whichever is lower. Cost of raw materials and packing materials is determined on FIFO basis. Cost of work-in-process and finished goods is determined on the basis of absorption costing method.

Property under development

Property under development represents free hold land converted into stock-in-trade on the basis of valuation made by approved valuer and development expenses incurred thereon.

1.12 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 insignificant risk of change in value.

For the purpose of statement of cash flows, cash and cash equivalents consist of cash, short-term deposits as defined above, bank overdrafts and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value as they are considered as an integral part of the Company’s management. Bank overdrafts are shown within borrowings under current liabilities in the balance sheet.

1.13 INVESTMENT IN SUBSIDIARY

A subsidiary is an entity that is controlled by another entity. An investor controls an investee if and only if the investor has the following; (i) Power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee and (iii) the ability to use its power over the investee to affect the amount of the investor’s returns.

The Company’s investments in its subsidiary is accounted at cost and reviewed for impairment at each reporting date.

1.14 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognized when a Company becomes a party to the contractual provisions of the instruments.

Inital Recogniton and Measurement – Financial Assets and Financial Liabilites

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.

However, trade receivables that do not contain a significant financing component are measured at transaction price.

Classifcaton and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) on the basis of following:

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• the entity’s business model for managing the financial assets and

• the contractual cash flow characteristics of the financial asset.

Amortzed Cost:

A financial asset is classified and measured at amortized cost if both of the following conditions are met:

• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FVTOCI:

A financial asset is classified and measured at FVTOCI if both of the following conditions are met:

• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses and interest revenue which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

FVTPL:

A financial asset is classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

Impairment of Financial Assets :

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected Credit Losses are measured through a loss allowance at an amount equal to:

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

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

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Classifcaton and Subsequent measurement: Financial Liabilites

The Company’s financial liabilities include trade payables and other financial liabilities.

Financial Liabilites at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.

Gains or losses on financial liabilities held for trading are recognized in the Statement of Profit and Loss.

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Other Financial Liabilites:

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecogniton of Financial Assets and Financial Liabilites:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Financial liability is also derecognised, when its terms are modified and the cash flows of the modified liability substantially different, in which case a new financial liability based on modified terms is recognised at fair value.

Write-of:

The gross carrying amount of a financial asset is written off when there are no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

Ofsetng Financial Instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

1.15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a current pre-tax rate. The increase in the provision due to the passage of time is recognised as interest expense.

Contngent Liability

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the consolidated financial statements.

Contngent Asset

Contingent asset is not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

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1.16 REVENUE RECOGNITION

The Company derives revenue primarily from manufacture of Polymers & Co-Polymers business comprising of Styrene, Divinyl Benzene, Acrylic Acid and Acrylates.

Revenue is recognised upon transfer of control of promised products or services to customers at the amount of transaction price (net of variable consideration) that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is measured based on the fair value of consideration specified in the contract with customer and excludes amounts collected on behalf of third parties.

Goods and Service Tax (GST) collected on behalf of the government is excluded from Revenue, as it is not an economic benefit to the Company.

Other Operatng Revenue

Other Operating Income consists of revenue generated from export incentives, duty drawbacks, and realized exchange gains. This income is recognized when performance obligations, as specified are fulfilled, and there is no significant uncertainty regarding the amount of consideration to be received

1.17 RECOGNITION OF INTEREST AND DIVIDEND INCOME

Interest

Interest income is recognized using the effective interest rate method.

Dividend

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

1.18 TAXES ON INCOME

Current Tax

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments/appeals. Current income tax relating to items recognized directly in equity is recognized in equity and not in the Statement of Profit and Loss.

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 tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable 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 is realized or the 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 the Statement of Profit and Loss is recognized outside the Statement of Profit and Loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets against liabilities.

1.19 EMPLOYEE BENEFITS

Short-term obligatons

Short-term employee benefits are measured on an undiscounted basis and expensed as the related service is provided. A

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liability is recognised for the amount expected to be paid under short-term cash bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Post-employment obligatons

The Company operates the following post-employment schemes:

• defined benefit plans such as gratuity; and

• defined contribution plans such as provident fund.

Defned Beneft Plans

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in Statement of Profit and Loss as past service cost.

Defned contributon plans

The Company makes specified monthly contributions towards government administered provident fund scheme. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments are available.

Other long-term employee beneft obligatons

The liabilities for leave are not expected to be settled wholly within twelve months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

1.20 EARNINGS PER SHARE (EPS)

Basic earnings per share

Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.

1.21 RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards which are applicable to the Company.

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NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.01	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment	Property, Plant and Equipment
	Partculars	Gross Carrying Amount				Accumulated Depreciaton/Impairment				Net Carrying Amount
		As at April 1, 2024	**Additon **	Disposal	As at March 31, 2025	As at April 1, 2024	For the Year	Eliminaton on disposal	As at March 31, 2025	As at March 31, 2025	As at March 31, 2024
	Own Assets: Plant and Machinery Laboratory equipments Furniture & Fixtures Computers Ofce Equipments Motor Vehicles Leasehold Improvements	57.37 6.60 10.18 43.89 25.35 188.70 2.67	20.49 - 0.13 6.31 2.90 - -	2.02 - - 0.08 0.22 - -	75.84 6.60 10.31 50.12 28.03 188.70 2.67	28.22 5.04 7.58 35.54 19.37 113.85 2.06	16.76 0.36 0.44 6.88 2.76 23.37 0.26	1.46 - - 0.07 0.21 - -	43.52 5.40 8.02 42.35 21.92 137.22 2.32	32.32 1.20 2.29 7.77 6.11 51.48 0.35	29.15 1.56 2.61 8.35 5.98 74.85 0.61
	Total (A)	334.76	29.83	2.32	362.27	211.66	50.83	1.74	260.75	101.52	123.10
	Right of use assets	221.68	-	-	221.68	102.18	25.22	-	127.40	94.28	119.50
	Total (B)	221.68	-	-	221.68	102.18	25.22	-	127.40	94.28	119.50
	Total (A+B)	556.44	29.83	2.32	583.95	313.84	76.05	1.74	388.15	195.80	242.60
	Partculars	Gross Carrying Amount				Accumulated Depreciaton/Impairment				Net Carrying Amount
		As at April 1, 2023	Additon	Disposal	As at March 31, 2024	As at April 1, 2023	For the Year	Eliminaton on disposal	As at March 31, 2024	As at March 31, 2024	As at March 31, 2023
	Own Assets: Plant and Machinery Laboratory equipments Furniture & Fixtures Computers Ofce Equipments Motor Vehicles Leasehold Improvements	40.91 6.60 8.83 38.25 22.86 188.70 2.67	16.51 - 1.36 7.23 2.69 - -	0.05 - - 1.59 0.19 - -	57.37 6.60 10.18 43.89 25.35 188.70 2.67	20.81 4.50 7.34 31.77 16.05 79.73 1.35	7.45 0.54 0.24 5.27 3.48 34.12 0.71	0.04 - - 1.50 0.15 - -	28.22 5.04 7.58 35.54 19.37 113.85 2.06	29.15 1.56 2.61 8.35 5.98 74.85 0.61	20.11 2.10 1.49 6.48 6.81 108.97 1.32
	Total (A)	308.82	27.78	1.84	334.76	161.54	51.82	1.69	211.66	123.10	147.29
	Right of use assets	120.72	100.96	-	221.68	78.99	23.19	-	102.18	119.50	41.73
	Total (B)	120.72	100.96	-	221.68	78.99	23.19	-	102.18	119.50	41.73
	Total (A+B)	429.54	128.74	1.84	556.44	240.53	75.00	1.69	313.84	242.60	189.01

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NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
2.02	Other Intangible Assets
	Partculars	Gross Carrying Amount				Accumulated Amortsaton/Impairment					Net Carrying Amount
		As at April 1, 2024	**Additon **	Disposal	As at March 31, 2025	As at April 1, 2024	For the Year	Eliminaton on disposal		As at March 31, 2025	As at March 31, 2025	As at March 31, 2024
	Sofware	22.66	2.95	-	25.61	16.95	4.83	-		21.78	3.83	5.71
	Total	22.66	2.95	-	25.61	16.95	4.83	-		21.78	3.83	5.71
	Partculars	Gross Carrying Amount				Accumulated/Impairment					Net Carrying Amount
		As at April 1, 2023	**Additon **	Disposal	As at March 31, 2024	As at April 1, 2023	For the Year	Eliminaton on disposal		As at March 31, 2024	As at March 31, 2024	As at March 31, 2023
	Sofware	18.17	4.49	-	22.66	9.56	7.39	-		16.95	5.71	8.61
	Total	18.17	4.49	-	22.66	9.56	7.39	-		16.95	5.71	8.61
	Notes:Range of remaining period of amortsaton as at March 31, 2025 of Intangible Assets is as below: Partculars With in One year 2 to 5 years Residual Value Total WDV Sofwares 1.97 0.42 1.44 3.83 Total 1.97 0.42 1.44 3.83
	Partculars	With in One year		2 to 5 years		Residual Value			Total WDV
	Sofwares	1.97		0.42		1.44			3.83
	Total	1.97		0.42		1.44			3.83

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NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.03 Non-current Investments

2.04 2.05 **2.06 **	Partculars			As at March 31,	As at March 31,	As at March 31,	As at March 31,	As at March 31,	As at March 31,
				2025				2024
				Qty		Amount		Qty	Amount
	Investments in Equity Instruments (fully paid-up) Quoted Investment in subsidiary (Measured at Cost) Gujarat Poly Electronics Ltd Investment in other companies (Measured at fair value through proft and loss) Investments in Preference Shares (fully paid-up) Subsidiary (Measured at Cost) Gujarat Poly Electronics Ltd Investments in Mutual Fund (Measured at fair value through proft and loss) Unquoted Total (A + B + C + D)	(A) (B) (C) (D)		44,53,745 28,724 9,81,500 61,44,528		397.68 163.74 128.80 1,604.14		46,16,152 27,922 9,81,500 33,35,394	421.44 160.04 128.80 1,099.12
						2,294.36			1,809.40
	Aggregate amount of quoted investments Aggregate market value of quoted investments Aggregate amount of unquoted investments					561.42 3,941.78 1,732.94			581.48 2,884.98 1,227.92
	Loans			Non- Current Current As at March 31, As at March 31, 2025 2024 2025 2024
	Considered good - unsecured Loans to employees Total			21.20 15.63 9.87 9.05 21.20 15.63 9.87 9.05
	Other Financial Assets			Non- Current Current
				As at March 31, As at March 31,
				2025 2024 2025 2024
	Security deposits Forward Contract - Asset Bank deposits with more than 12 months maturity Accrued Interest On Deposits with Bank Total			8.76 8.04 - - - - 0.46 - 22.85 145.00 - - - - 2.19 2.57
				31.61 153.04 2.65 2.57
	Deferred Tax Assets (net)						As at March 31,
							2025 2024
	Deductble temporary diferences Property, Plant and Equipment Other deductble temporary diferences Total						24.27 20.28 21.98 15.29
							46.25 35.57
					As at March 31, 2024		Recognized in Proft/ (loss) account As at March 31, 2025
	Deferred Tax Assets in relaton to: Property,Plant and Equipment Others				20.28 3.99 24.27 15.29 6.69 21.98
					35.57 10.68 46.25

~~71~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated) 2.07 Other Assets Non- Current Current As at March 31, As at March 31, 2025 2024 2025 2024 Unsecured, considered good unless stated otherwise Prepaid expenses 6.87 2.74 16.72 21.00 Staf Advances - - - 0.32 Insurance Claim Receivable - - 0.42 - Advance to suppliers - - 0.58 - Balance with Statutory Authorites Income Tax (net of provisions) - - - 1.66 GST Receivable - - 43.87 83.07 Other Advances 0.73 0.58 29.14 3.78 Total 7.60 3.32 90.73 109.83 2.08 Inventories As at March 31, 2025 2024 Raw Materials 33.16 35.16 Property Development 176.50 172.95 Finished Goods (in transit) 219.66 154.76 Work in progress 56.48 85.71 Stores and spares 5.89 5.72 Total 491.69 454.30 2.09 Trade receivables As at March 31, 2025 2024 Trade receivables Considered good - Secured - - Trade receivables Considered good - Unsecured 243.87 397.66 Trade Receivable-Credit Impaired - - Total 243.87 397.66 Less : Loss allowance for doubtul receivables - - Total 243.87 397.66 2.09.1 Partculars Outstanding for following periods from due date of payment as on March 31,2025 Less than 6 months including not due 6 months-1 Years 1-2 Years 2-3 Years More than 3 Years Total Undisputed Trade Receivable-Considered good 243.87 - - - - 243.87 Undisputed trade receivable-Signifcant increase in credit risk - - - - - - Undisputed Trade Receivable-Credit Impaired - - - - - - Disputed Trade Receivable-Considered good - - - - - - Disputed trade receivable-Signifcant increase in credit risk - - - - - - Disputed Trade Receivable-Credit Impaired - - - - - - Total 243.87 - - - - 243.87				(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
				Non- Current	Current
				As at March 31,	As at March 31,
				2025 2024	2025 2024
				6.87 2.74 - - - - - - - - - - 0.73 0.58	16.72 21.00 - 0.32 0.42 - 0.58 - - 1.66 43.87 83.07 29.14 3.78
				7.60 3.32	90.73 109.83
		Inventories			As at March 31,
					2025 2024
		Raw Materials Property Development Finished Goods (in transit) Work in progress Stores and spares Total			33.16 35.16 176.50 172.95 219.66 154.76 56.48 85.71 5.89 5.72
					491.69 454.30
		Trade receivables			As at March 31,
					2025 2024
		Trade receivables Considered good - Secured Trade receivables Considered good - Unsecured Trade Receivable-Credit Impaired Total Less : Loss allowance for doubtul receivables Total			- - 243.87 397.66 - -
					243.87 397.66
					- -
					243.87 397.66
			Outstanding for following periods from due date of payment as on March 31,2025
			Less than 6 months including not due 6 months-1 Years 1-2 Years 2-3 Years More than 3 Years Total
		Undisputed Trade Receivable-Considered good Undisputed trade receivable-Signifcant increase in credit risk Undisputed Trade Receivable-Credit Impaired Disputed Trade Receivable-Considered good Disputed trade receivable-Signifcant increase in credit risk Disputed Trade Receivable-Credit Impaired Total	243.87 - - - - 243.87 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
			243.87 - - - - 243.87

~~72~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

**2.09.2 **	Partculars	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from	(Rs. in Lakhs unless otherwise stated) Outstanding for following periods from
		due date of payment as on			March	31, 2024
		Less than 6 months	6 months-1	1-2	2-3	More than	Total
		including not due	Years	Years	Years	3 Years
	Undisputed Trade Receivable-Considered good Undisputed trade receivable-Signifcant increase	397.66 -	- -	- -	- -	- -	397.66 -
	in credit risk
	Undisputed Trade Receivable-Credit Impaired	-	-	-	-	-	-
	Disputed Trade Receivable-Considered good Disputed trade receivable-Signifcant increase in	- -	- -	- -	- -	- -	- -
	credit risk
	Disputed Trade Receivable-Credit Impaired	-	-	-	-	-	-
	Total	397.66	-	-	-	-	397.66
2.10	Cash and Cash Equivalent					As at March 31,
						2025	2024
	Balances with banks:
	On current accounts					35.55	159.01
	Deposits with original maturity of less than 3 months*					159.00	24.00
	Total					194.55	183.01
2.11	Bank balances other than cash and cash equivalents					As at March 31,
						2025	2024
	Deposits with original maturity for more than 3 months but less than 12 months*					61.58	102.00
	Unclaimed dividend accounts					15.22	10.51
	Total					76.80	112.51
	*Marked under lien in favour of banks

	Total *Marked under lien in favour of banks	76.80 112.51
	Lien marked on Fixed Deposit of Rs.57 Lakhs for obtaining forward contract exposure in respect Rs. 1 Lakh for Bank Gurantee issued to Maharashtra Polluton Control Board & Rs.4 Lakhs for issuance	of trade receivables, of Corporate expense
	card.
2.12	Current Tax Assets (Net)	As at March 31,
		2025 2024
	Advance income tax (Net of Provisions)	25.23 0.10
	Total	25.23 0.10
2.13	Share capital	As at March 31,
		2025 2024
	Authorized share capital :
	4,00,00,000 (March 31, 2024 : 4,00,00,000) Equity shares of Rs.10/- each 6,00,000 (March 31, 2024 : 6,00,000) 13.50% Redeemable cumulatve preference shares of	4,000.00 4,000.00 600.00 600.00
	Rs.100/- each 5,00,000 (March 31, 2024 : 5,00,000) Cumulatve convertble preference shares of Rs.100/- each	500.00 500.00
	Total authorised share capital	5,100.00 5,100.00
	Issued, Subscribed & Paid up Capital
	4,04,045 (March 31, 2024 : 4,04,045) Equity shares of Rs. 10/- each (fully paid up)	40.40 40.40
	Total issued, subscribed and fully paid-up share capital	40.40 40.40

~~73~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

a. Reconciliaton of shares outstanding as at the beginning and at the end of the reportng period:

Equity Shares	As at March 31,
	2025 2024
	No. of Shares Amount No. of Shares Amount
At the beginning of the period Movement during the year Outstanding at the end of the period	4,04,045 40.40 4,04,045 40.40 - - - -
	4,04,045 40.40 4,04,045 40.40

b. Rights, preference and restrictons atached to shares:

Equity Shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

c. Details of share holders holding more than 5% shares in the company

c. Details of share holders holding more than 5% shares in the company
Partculars	As at March 31,
	2025 2024
	No. of Shares % of holding No. of Shares % of holding
Equity shares of Rs. 10/- each fully paid Name of the Shareholder Virsun Investments Private Limited Highclass Trading Private Limited Masuma Tradecorp Private Limited Parthiv T. Kilachand Nandish T. Kilachand	77,069 19.07% 42,802 10.59% - 0.00% 24,842 6.15% 59,991 14.85% 59,991 14.85% 34,127 8.45% 34,127 8.45% 33,335 8.25% 33,335 8.25%

d. Details of promoters shareholding in the Company:

d. Details of promoters shareholding in the Company:
Equity shares of Rs. 10/- each	As at March 31,
	2025 2024
Name of the Shareholder	No. of Shares % of holding No. of Shares % of holding % change during the year
Parthiv T. Kilachand Nandish T. Kilachand Tanil R. Kilachand Nilima T. Kilachand Virsun Investments Private Limited Masuma Tradecorp Private Limited Highclass Trading Private Limited Ginners & Pressers Limited Delmar Trading Co. Private Limited	34,127 8.45 34,127 8.45 - 33,335 8.25 33,335 8.25 - 1,938 0.47 1,938 0.47 - 1,013 0.25 1,013 0.25 - 77,069 19.07 42,802 10.59 8.48 59,991 14.85 59,991 14.85 - - - 24,842 6.15 (6.15) 2,996 0.74 2,996 0.74 - - - 9,425 2.33 (2.33)

~~74~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

	(Rs. in Lakhs unless otherwise stated)
Equity shares of Rs. 10/- each	As at March 31,
	2024 2023
Name of the Shareholder	No. of Shares % of holding No. of Shares % of holding % change during the year
Parthiv T. Kilachand Nandish T. Kilachand Tanil R. Kilachand Nilima T. Kilachand Virsun Investments Private Limited Masuma Tradecorp Private Limited Highclass Trading Private Limited Ginners & Pressers Limited Delmar Trading Co. Private Limited	34,127 8.45 33,127 8.20 0.25 33,335 8.25 32,335 8.00 0.25 1,938 0.47 1,938 0.47 - 1,013 0.25 1,013 0.25 - 42,802 10.59 42,802 10.59 - 59,991 14.85 59,991 14.85 - 24,842 6.15 24,842 6.15 - 2,996 0.74 4,996 1.23 (0.50) 9,425 2.33 9,425 2.33 -

2.14 Other Equity General Reserve Retained earnings Securites Premium Account Capital Redempton Reserve Total Descripton of the nature and purpose of each reserve within equity is as follows:	2.14 Other Equity General Reserve Retained earnings Securites Premium Account Capital Redempton Reserve Total Descripton of the nature and purpose of each reserve within equity is as follows:	As at March 31,
		2025 2024
	General Reserve Retained earnings Securites Premium Account Capital Redempton Reserve Total Descripton of the nature and purpose of each reserve within equity is as follows:	278.22 278.22 1,604.19 1,395.51 1,424.37 1,424.37 50.00 50.00
		3356.78 3,148.09

General Reserve:

• a. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

Retained Earnings:

• b. Retained earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividend and adjustments on account of transition to Ind AS.

Securities Premium:

• c. Securities premium reserve is credited when shares are issued at premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

Capital Redemption Reserve:

• d. The Capital Redemption Reserve is created on redemption of 13.5% 50,000 Redeemable Cumulative Preference Shares of Rs.100/- in the Financial Year 2007-2008 pursuant to Section 80 of the Companies Act, 1956.

2.15 Other Current Financial Liabilites Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	2.15 Other Current Financial Liabilites Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	As at Mar 31,
		2025 2024
	Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	- 2.36 43.71 26.91 16.06 27.94 15.22 10.51
		74.99 67.72

~~75~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

2.16 Trade Payables As at Mar 31, 2025 2024 Trade Payables Total outstanding dues of Micro & Small Enterprises 8.62 5.49 Other than Micro & Small Enterprises 40.25 53.03 Total 48.87 58.52 As at March 31, 2025 2.16.1 Partculars Outstanding for following periods from due date of payment Not Due Less than 1 year 1-2 years 2-3 years More than 3 years Total MSME 8.62 - - - - 8.62 Others 40.25 - - - - 40.25 Disputed dues - MSME - - - - - - Disputed dues - others - - - - - - Total 48.87 - - - - 48.87 As at March 31, 2024 2.16.2 Partculars Outstanding for following periods from due date of payment Not Due Less than 1 year 1-2 years 2-3 years More than 3 years Total MSME 5.49 - - - - 5.49 Others 53.03 - - - - 53.03 Disputed dues - MSME - - - - - - Disputed dues - others - - - - - - Total 58.52 - - - - 58.52 2.17 Other Current Liabilites As at March 31, 2025 2024 Gratuity (Funded) 66.29 51.01 Leave travel allowance payable 6.32 11.09 Compensated absences (Funded) 11.06 7.45 Statutory Payables 24.16 9.55 Bonus Payable - 15.50 Duty drawback 2.36 2.43 Total 110.19 97.03 2.18 Provisions As at March 31, 2025 2024 Employee benefts Provision for Bonus 0.53 0.56 Total 0.53 0.56 (Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
			As at Mar 31,
			2025 2024
	Trade Payables Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Total		8.62 5.49 40.25 53.03
			48.87 58.52
			As at March 31, 2025
		Outstanding for following periods from due date of payment
		Not Due Less than 1 year 1-2 years 2-3 years More than 3 years Total
	MSME Others Disputed dues - MSME Disputed dues - others Total	8.62 - - - - 8.62 40.25 - - - - 40.25 - - - - - - - - - - - -
		48.87 - - - - 48.87
		As at March 31, 2024
		Outstanding for following periods from due date of payment
		Not Due Less than 1 year 1-2 years 2-3 years	More than 3 years Total
	MSME Others Disputed dues - MSME Disputed dues - others Total	5.49 - - 53.03 - - - - - - - -	- - 5.49 - - 53.03 - - - - - -
		58.52 - -	- - 58.52
			As at March 31,
			2025 2024
	Gratuity (Funded) Leave travel allowance payable Compensated absences (Funded) Statutory Payables Bonus Payable Duty drawback Total		66.29 51.01 6.32 11.09 11.06 7.45 24.16 9.55 - 15.50 2.36 2.43
			110.19 97.03
			As at March 31,
			2025 2024
	Employee benefts Provision for Bonus Total		0.53 0.56
			0.53 0.56

~~76~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

3.01 3.02 3.03 **3.04 **		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
	Revenue From Operatons		For The Year Ended March 31,
			2025	2024
	Revenue from operatons Sale of products (Net sales) Other operatng revenue Exchange gain on foreign currency Duty drawback received Export Incentves Total		2,304.06 30.58 22.25 24.54 2,381.43	3,570.00 41.64 33.20 41.95
				3,686.79
	Other Income		For The Year Ended March 31,
			2025	2024
	Interest Income Interest on Fixed Deposit Others Fair value measurement of Investments measured at FVTPL Rent Income for commercial space Dividend Income Gain on sale of Investments(net) Gain on sale of Property, Plant and Equipment (net) Other non- operatng income Amount not payable writen back Other sundry Income Total		25.03 3.14 108.53 5.78 1.59 167.44 0.08 0.11 0.06 311.76	11.13 2.85 110.74 5.78 1.32 - 0.01 0.01 0.05
				131.89
	Cost of Materials Consumed		For The Year Ended March 31,
			2025	2024
	Opening Stock Purchases Less: Loss by fre Less: Closing stock Total		35.16 1,209.82 (0.42) (33.16) 1,211.40	29.15 1,836.72 - (35.16)
				1,830.71
	Changes in inventories		For The Year Ended March 31,
			2025	2024
	Work in process Opening Stock Less: Closing Stock Finished Goods Opening Stock Less: Closing Stock (Goods in transit) Property Development Opening Stock Less: Closing Stock Total		85.71 (56.48) 29.23 154.76 (219.66) (64.90) 172.95 (176.50) (3.55) (39.22)	71.69 (85.71)
				(14.02)
				171.30 (154.76)
				16.54
				168.86 (172.95)
				(4.09)
				(1.55)

~~77~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

3.05 Employee Benefts Expense Salaries, wages & incentves Contributon to provident and other funds Expenditure related to compensated absences Staf welfare expenses Total 3.06 Finance Costs Interest expense on Lease Liability Total 3.07 Depreciaton and Amortzaton Expense Depreciaton of property, plant and equipment Depreciaton on Right of use Assets Amortzaton of Intangible assets Total 3.08 Other Expenses(cond..) Selling & distributons expenses Legal and professional fees Motor car expenses Membership & subscripton Rent Conveyance & travelling expenses Telephone & Internet expenses Printng & statonery expenses General charges Electric Power, oil fuel and water charges Rates & taxes Research and Development expenses Land development expenses Postage & courier expenses Director sitng fees Commission to directors Selling & distributon expenses on sale of investments Insurance charges Advertsement expenses ISO & certfcaton expenses Sundry Balance writen of Polluton Control Permission Expenses Donaton Bad debts Loss by Fire		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
			For The Year Ended March 31,
			2025	2024
	Salaries, wages & incentves Contributon to provident and other funds Expenditure related to compensated absences Staf welfare expenses Total		318.44 53.94 5.68 8.93 386.99	328.41 50.73 1.00 9.04
				389.18
			Year ended March 31,
			2025	2024
	Interest expense on Lease Liability Total		10.25 10.25	10.43
				10.43
			Year ended March 31,
			2025	2024
	Depreciaton of property, plant and equipment Depreciaton on Right of use Assets Amortzaton of Intangible assets Total		50.83 25.22 4.83 80.88	51.82 23.19 7.39
				82.40
			For The Year Ended March 31,
			2025 2024
	Selling & distributons expenses Legal and professional fees Motor car expenses Membership & subscripton Rent Conveyance & travelling expenses Telephone & Internet expenses Printng & statonery expenses General charges Electric Power, oil fuel and water charges Rates & taxes Research and Development expenses Land development expenses Postage & courier expenses Director sitng fees Commission to directors Selling & distributon expenses on sale of investments Insurance charges Advertsement expenses ISO & certfcaton expenses Sundry Balance writen of Polluton Control Permission Expenses Donaton Bad debts Loss by Fire		103.91 116.16 35.29 34.71 18.37 18.65 17.06 13.57 11.90 12.26 3.91 3.43 5.32 4.12 4.95 4.49 2.65 3.41 4.99 5.16 4.12 4.23 0.07 0.85 3.55 4.09 0.54 1.04 4.42 4.48 6.66 - 0.98 - 2.58 2.82 2.56 1.44 1.19 1.73 0.51 - 1.20 0.62 0.11 - 0.29 - 0.56 -

~~78~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

3.08 Other Expenses(cond..) For The Year Ended March 31, 2025 2024 Interest to MSME vendors - 0.12 Loss on sale of Property, plant and equipment 0.02 0.09 Miscellaneous expenses 5.11 5.44 CSR Expenses 7.00 - Efuent Treatment and disposal charges 24.11 - Repair & Maintenance Computer 1.95 0.15 Others 29.49 16.29 Packing Material, Stores & spares Opening Stock 5.72 Add : Purchase during the year 25.85 Less : Closing Stock (5.89) 25.68 42.86 Auditor's Remuneraton Statutory Audit 2.25 2.25 Limited Review 1.85 1.85 Consolidaton Audit 0.65 0.65 Total 335.80 306.96 3.09 Tax expenses For The Year Ended March 31, 2025 2024 (a)Income tax expenses Current tax In respect of the current year 63.25 170.00 In respect of prior years 2.51 1.67 65.76 171.67 Deferred tax In respect of the current year (8.36) (4.57) (8.36) (4.57) (b)Income tax recognised in Other Comprehensive Income Remeasurements of the defned beneft plans 2.32 1.94 2.32 1.94 Total (a+b) 55.08 165.16 (c) Reconciliaton between the Statutory income tax rate applicable to the company and the efectve income tax rate is as follows: Net proft/(loss) before tax 394.16 770.80 Efectve Tax rate applicable to the company 25.17% 25.17% Tax amount at the enacted income tax rate 99.20 193.99 Add : Expenses disallowed 28.77 25.56 Less : Expenses allowed (97.56) (48.08) Tax relatng to long term capital gains 23.68 - Tax relatng to dividend and other income 7.27 0.33 Other Items (6.28) (6.64) Income tax expense 55.08 165.16 (Rs. in Lakhs unless otherwise stated)				(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
					For The Year Ended March 31,
					2025	2024
	Interest to MSME vendors Loss on sale of Property, plant and equipment Miscellaneous expenses CSR Expenses Efuent Treatment and disposal charges Repair & Maintenance Computer Others Packing Material, Stores & spares Opening Stock Add : Purchase during the year Less : Closing Stock Auditor's Remuneraton Statutory Audit Limited Review Consolidaton Audit Total		5.72 25.85 (5.89)		- 0.02 5.11 7.00 24.11 1.95 29.49 25.68 2.25 1.85 0.65 335.80	0.12 0.09 5.44 - - 0.15 16.29 42.86 2.25 1.85 0.65 306.96
					For The Year Ended March 31,
					2025	2024
	(a) (b) (c)	Income tax expenses Current tax In respect of the current year 63.25 170.00 In respect of prior years 2.51 1.67 65.76 171.67 Deferred tax In respect of the current year (8.36) (4.57) (8.36) (4.57) Income tax recognised in Other Comprehensive Income Remeasurements of the defned beneft plans 2.32 1.94 2.32 1.94 Total (a+b) 55.08 165.16 Reconciliaton between the Statutory income tax rate applicable to the company and the efectve income tax rate is as follows: Net proft/(loss) before tax 394.16 770.80 Efectve Tax rate applicable to the company 25.17% 25.17% Tax amount at the enacted income tax rate 99.20 193.99 Add : Expenses disallowed 28.77 25.56 Less : Expenses allowed (97.56) (48.08) Tax relatng to long term capital gains 23.68 - Tax relatng to dividend and other income 7.27 0.33 Other Items (6.28) (6.64) Income tax expense 55.08 165.16				170.00 1.67
						171.67
						(4.57)
						(4.57)
						1.94
						1.94
						165.16
						165.16

~~79~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

4.01		(Rs. in Lakhs unless otherwise stated)
	Earnings Per Share (EPS)	Year ended March 31,
		2025 2024
	Basic earnings per share (Amount in Rs): Atributable to equity holders of the Company 83.35 149.41 Diluted earnings per share (Amount in Rs): Atributable to equity holders of the Company 83.35 149.41 Reconciliaton of earnings used in calculatng earnings per share: Basic earnings per share Proft atributable to equity holders of the Company used in calculatng basic earnings per share : 336.76 603.70 Diluted earnings per share Proft atributable to equity holders of the Company used in calculatng diluted earnings per share 336.76 603.70 Weighted average number of Equity shares used as the denominator in calculatng basic & diluted earnings per share 4,04,045 4,04,045 There are no instruments, including contngently issuable shares, that could potentally dilute basic earnings per share; hence, diluted earnings per share equals basic earnings per share.

	There are no instruments, including contngently issuable shares, that could potentally d hence, diluted earnings per share equals basic earnings per share.	There are no instruments, including contngently issuable shares, that could potentally d hence, diluted earnings per share equals basic earnings per share.	ilute basi	c earnings per share	;
4.02	Contngent Liabilites		Year	ended March 31,
			2025	2024
	i)	Claims against the Company not acknowledged as debts:		27.08	27.08
		Relates to supplier of materials, employees and other claims etc. (No provision is made, as the Company is hopeful of successfully contestng the claims and as such does not expect any signifcant liability to crystallize).

ii) The Company has taken certain premises on sub-lease. The landlord, a Government Company issued a notice under the Public Premises (Eviction of Unauthorized Occupants) Act,1971 against the Company for eviction and has demanded damages and other charges, which are disputed by the Company. The proceedings in this connection are pending before the Estate ofcer. The Contngent liability in respect of damages, interest claimed by the Insurance Company cannot be quantfed.

4.03 Employee benefts

1) Defned Contributon Plans:

The amounts of contribution to provident fund and ESIC recognized as expenses during the year is Rs. 25.06 Lakhs (March 31, 2024 : Rs.21.13 Lakhs) for the year ended March 31, 2025.

2) Defned Beneft Plans:

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees, as governed by the Payment of Gratuity Act, 1972 (Gratuity Act). The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs upon completion of Five (5) continuous years of service as governed by the Gratuity Act. The Present value of the defined benefit obligations and related current service cost were measured using the Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date. The Gratuity Plan is administered by “Polychem Limited Employees Group Gratuity Scheme” & “Life Insurance Corporation of India” that is legally seperated from the Company.

The company expects to pay Rs. 40,28,120/- in contributions to defined benefit plans in financial year 2025-26.

Investment Risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit. Currently the plan has investment with LIC of India.

~~80~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Interest Risk A decrease in the interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan’s debt investments. Longevity Risk The present value of the defined benefit plan 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 plan liability is calculated by reference to the future salaries of plan partcipants. As such, an increase in the salary of the plan partcipants will increase the plan’s liability. 3) Principal assumptons used for the purpose of actuarial valuaton:

Partculars	Gratuity	Gratuity	Gratuity	Gratuity
	As At March, 31
	2025 2024
Discount rate Expected rate of salary increase Mortality Rate	6.79% 7.23% 6.00% 6.00% Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)
4. (i) Amounts recognized in Statement of Proft and Loss in respect of defned	beneft plans
Partculars			Gratuity
			Year ended March 31,
			2025	2024
Service cost Current service cost 4.60 Net Interest Cost 3.69 Components of defned benefts cost recognized in Statement of Proft and Loss 8.29 4. (ii) Amounts recognized in Other Comprehensive Income in respect of defned beneft plans				4.28 3.39
				7.67
Partculars			Gratuity
			Year ended March 31,
			2025	2024
Return on plan assets (excluding amount included in net interest expense) Net Actuarial Loss Components of defned benefts cost recognized in Other Comprehensive Income 4. (iii) Amounts recognized in Balance Sheet in respect of defned beneft plans			1.86 7.35 9.21	(0.26) 7.98
				7.72
Partculars			Gratuity
			As At March, 31
			2025	2024
Present Value of the Defned Beneft Obligatons Fair Value of Plan Assets Liability Recognized in the Balance Sheet			111.06 (44.77) 66.29	134.35 (83.34)
				51.01

~~81~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

5. (i) Movements in present value of defned beneft obligaton

(Rs. in Lakhs unless otherwise stated)

5. (i) Movements in present value of defned beneft obligaton
Partculars		Gratuity
		Year ended March 31,
		2025	2024
Opening defned beneft obligatons Current service cost Interest cost Benefts paid from the fund Actuarial (gains) / losses on Defned Beneft Obligaton - Due to change in fnancial assumptons Actuarial (gains) / losses on Defned Beneft Obligaton - Due to experience Closing defned beneft obligaton 5. (ii) Reconciliaton		134.36 4.60 9.71 (44.96) 2.37 4.98 111.07	114.40 4.28 8.58 (0.88) 1.16 6.82
			134.36
Partculars		Gratuity
		As At March, 31
		2025	2024
Opening Net Liability Add: Employer Expenses (Expenses recognized in the statement of P/L account) Add: Transfer to OCI Less: Employers contributon Closing Net Liability 6. The category of plan assets as a percentage of total plan are as follows:		51.01 8.29 9.21 (2.23) 66.29	45.17 7.66 7.72 (9.54)
			51.01
Partculars		Gratuity
		As At March, 31
		2025 2024
Deposits with LIC of India		100% 100%

7. Sensitvity Analysis

Below is the sensitivity analysis determined for significant actuarial assumption for determination of defined benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period.

Key assumptions for determination of Defined Benefit Obligation are Discount Rate (i.e. Interest Rate) Salary Growth Rate and Employee Turnover Rate.

Rate and Employee Turnover Rate.
Partculars	Gratuity
	As At March, 31
	2025 2024
Delta Efect of +1% Change in Rate of Discountng Delta Efect of -1% Change in Rate of Discountng Delta Efect of +1% Change in Rate of Salary Increase Delta Efect of -1% Change in Rate of Salary Increase Delta Efect of +1% Change in Rate of Employee Turnover Delta Efect of -1% Change in Rate of Employee Turnover	(5.17) (4.06) 6.05 4.75 6.04 4.76 (5.25) (4.14) 0.36 0.46 (0.40) (0.51)

4.04 Segment Informaton

In accordance with Ind AS 108 on Operating Segments information has been given in the Consolidated Financial Statement of the Company and therefore no separate disclosure on segment information is given in the standalone financial statements.

~~82~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

4.05 Dues to Micro and Small Enterprises

The details of amounts outstanding to Micro and Small Enterprises based on available information with the Company is as under:

Dues to Micro and Small Enterprises The details of amounts outstanding to Micro and Small Enterprises based on available as under: (Rs	informaton with the Company is . in Lakhs unless otherwise stated)
Partculars	As At March, 31
	2025 2024
Principal amount remaining unpaid to any supplier as at the end of the accountng year 52.33 32.40 Interest due thereon remaining unpaid to any supplier as at the end of the accountng year - - The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day - 0.12 The amount of interest due and payable for the year - - The amount of interest accrued and remaining unpaid at the end of the accountng year - - The amount of further interest due and payable even in the succeeding year, untl such date when the interest dues as above are actually paid - -

4.06 Capital Management Risk management

The Company’s primary objectives in managing capital are to safeguard its ability to continue as a going concern while maximising shareholder value through an optimal capital structure. Capital is actively monitored and comprises total equity, including share capital, reserves and non-controlling interests. The Company maintains a conservative capital structure with minimal debt exposure, currently limited only to lease liabilities under Ind AS 116.

For the purpose of the Company’s capital management, capital includes capital and all other equity reserves. In order to maintain or achieve a capital structure that maximizes the shareholder value, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans. As at March 31, 2025, the Company has only one class of equity shares and has no borrowings other than lease liabilities. Hence, there are no externally imposed capital requirements.

The table below presents the key components of the Company’s capital structure:

capital requirements. The table below presents the key components of the Company’s capital structure:
Component	As at March 31,
	2025 2024
Total Equity Lease Liabilites Net Debt/Equity Rato	3,397.18 3,188.49 104.28 121.98 0.03 0.04

The Company maintains a strong equity base with a negligible debt component, reflected in the low net debt-to-equity ratio of 0.03 as at March 31, 2025 (as at March 31, 2024: 0.04).

Dividend Distribution:

The Company’s dividend policy balances shareholder returns with the need to retain earnings for business growth. The following dividends were declared during the reporting periods:

following dividends were declared during the reportng periods:
Partculars	As at March 31,
	2025 2024
Dividends Paid Proposed Dividend*	121.21 80.81 80.81 121.21
*Pending shareholder approval at the forthcoming Annual General Meetng.

The Board has recommended a dividend of Rs. 20 per share (200% of face value of Rs. 10/- each) for FY 2024-25 (2023-24: Rs. 30 per share or 300% of face value of Rs. 10/- each). Dividend declarations consider factors including profitability, retained earnings, liquidity position and future capital requirements.

The Company’s capital management approach ensures compliance with statutory requirements while maintaining sufficient resources to support ongoing operations and strategic initiatives. Regular reviews are conducted to assess the adequacy and efficiency of the capital structure in light of changing business needs and market conditions.

~~83~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

4.07 Financial Instruments

• i) Methods & assumptons used to estmate the fair values The fair values of the financial assets and liabilities are 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.

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

• (a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, other financial liabilities and cash and cash equivalents are considered to be the same as their fair values.

• (b) The fair values for long term security deposits given and remaining non current financial assets were calculated based on cash flows discounted using a current rate at 9%. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

• (c) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

ii) Categories of fnancial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and Level 3: inputs which are not based on observable market data

Partculars	**As at March 31, 2025 **	**As at March 31, 2025 **	As at March 31, 2024	As at March 31, 2024
	Carrying values	Fair value	Carrying values	Fair value
Financial assets Measured at amortzed cost Trade receivables Loans Cash and Bank balances Other fnancial assets Total (A) Measured at fair value through proft or loss Investment in equity instruments of other companies Investment in mutual funds Forward contract asset Total (B) Total Financial assets (A+B)	243.87 31.06 271.35 33.80	243.87 31.06 271.35 33.80	397.66 24.68 295.52 155.60	397.66 24.68 295.52 155.60
	580.08	580.08	873.46	873.46
	163.74 1,604.14 0.46	163.74 1,604.14 0.46	160.04 1,099.12 -	160.04 1,099.12 -
	1768.34	1768.34	1,259.16	1,259.16
	2348.42	2348.42	2,132.62	2,132.62
Financial liabilites Measured at amortzed cost Trade payables Other fnancial liabilites Lease Liability Total (A) Measured at fair value through proft or loss Forward contract liability Total (B) Total Financial liabilites (A+B)	48.87 74.99 104.28	48.87 74.99 104.28	58.51 65.36 121.98	58.51 65.36 121.98
	228.14	228.14	245.86	245.86
	-	-	2.36	2.36
	-	-	2.36	2.36
	228.14	228.14	248.22	248.22

~~84~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
Level wise disclosure of fnancial instruments
Partculars	As at March 31,		Level	Valuaton techniques and key inputs
	2025	2024
Investment in Mutual Funds Forward contracts - Assets Forward contracts-Liability	1,604.14 0.46 -	1,099.12 - 2.36	2 2 2	Net Asset Value Quotes from banks or dealers Quotes from banks or dealers

4.08 Financial Risk Management

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Board of Directors. The details of different types of risk and management policy to address these risks are listed below:

The Company’s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimize any adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the Board of Directors / Management.

i) Credit Risk

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge

its obligation as agreed.

Credit risks from balances with banks are managed in accordance with the Company policy. For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks having high creditratings assigned by credit-rating agencies.

Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.

its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.	its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.	its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.	its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.	its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.	its obligaton as agreed. Credit risks from balances with banks are managed in accordance with the Company policy. For derivatve and fnancial instruments, the Company atempts to limit the credit risk by only dealing with reputable banks having high credit- ratngs assigned by credit-ratng agencies. Based on the industry practces and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.
Table showing age of gross trade receivables and movement in expected credit loss allowance:
As at March 31, 2025	0-90 Days	**91-180 Days **	181-270 Days	> 270 days	Total
Gross Carrying amount Expected Credit Rate Expected credit loss Carrying Amount of Trade Receivable (Net)	231.06 0.00% - 231.06	12.81 0.00% - 12.81	- 0.00% - -	- 0.00% - -	243.87 0.00% - 243.87
As at March 31, 2024	0-90 Days	**91-180 Days **	181-270 Days	> 270 days	Total
Gross Carrying amount Expected Credit Rate Expected credit loss Carrying Amount of Trade Receivable (Net)	397.66 0.00% - 397.66	- 0.00% - -	- 0.00% - -	- 0.00% - -	397.66 0.00% - 397.66
Movement in the expected credit allowance					Amount
As at April 1, 2023 Provided during the year As at March 31, 2024 Provided during the year As at March 31, 2025					- -
					-
					-
					-

ii) Liquidity Risk

Liquidity risk is risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company’s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company has consistently generated sufficient cash flows from its operations and believes that these cash flows along with its current cash and cash equivalents and funding arrangements are sufficient to meet its financial obligations as and when they fall due. Accordingly, liquidity risk is perceived to be low.

~~85~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Maturites of fnancial liabilites

The table below provides details regarding the remaining contractual maturities of financial liabilities as at the reporting date:

As at March 31, 2025	Not due and less than 1 year	1 to 5 year	Total
Non-Derivatves Trade payables Other Financial Liabilites Lease Liability	48.87 74.99 21.17	- - 83.11	48.87 74.99 104.28
As at March 31, 2024	Not due and less than 1 year	1 to 5 year	Total
Non-Derivatves Trade payables Other Financial Liabilites Lease Liability	58.51 65.36 17.90	- - 104.08	58.51 65.36 121.98

iii) 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. The Company is exposed in the ordinary course of business to risks related to changes in foreign currency exchange rate and interest rate.

Market Risk – Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales in various foreign currencies. The Company hedges the receivables by forming view after discussion with Forex Consultant and as per polices set by Management.

The carrying amount of the Company’s foreign currency denominated monetary assets and liabilities as at the end of the reporting period is as follows:

Foreign currency exposure

Currencies	Liabilites	Liabilites	Assets	Assets
	As at March 31,		As at March 31,
	2025	2024	2025	2024
Euro USD	- -	- -	2.41 1.48	0.24 5.48
Foreign currency exposure as at March 31, 2025		GBP	Euro	USD
Assets Trade receivables Forward contracts - Assets Liabilites Forward contracts-Liability	- - -	- - -	2.41 - -	1.47 0.01 -
Foreign currency exposure as at March 31, 2024		GBP	Euro	USD
Assets Trade receivables Forward contracts - Assets Liabilites Forward contracts-Liability	- - -	- - -	0.23 0.01 -	5.41 0.07 -

~~86~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
Details of Unhedged Foreign Currency Exposure is as under:-
Currency	Nature	As at March 31, 2025		As at March 31, 2024
		Amount in Foreign Currency	Amount in INR	Amount in Foreign Currency	Amount in INR
EURO USD	Asset- Export Receivables Asset-Export Receivables	0.93 1.22	85.86 104.14	- 0.69	0.07 57.29

Foreign currency sensitivity

1 % increase or decrease in foreign exchange rates will have the following impact on loss before tax and on other components of equity.

Partculars	Impact on proft (loss) before tax and equity: Increase/(Decrease)	Impact on proft (loss) before tax and equity: Increase/(Decrease)	Impact on proft (loss) before tax and equity: Increase/(Decrease)	Impact on proft (loss) before tax and equity: Increase/(Decrease)
	As at March 31, 2025	As at March 31, 2024	As at March 31, 2025	As at March 31, 2024
	1 % Increase	1 % Increase	1 % Decrease	1 % Decrease
EURO	0.86	0.00	(0.86)	(0.00)
USD	1.04	0.57	(1.04)	(0.57)

Market Risk - Price Risk

The Company is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the future market values of these investments. At March 31, 2025, the investments in mutual funds is Rs.1604.14 Lakhs (March 31, 2024 : Rs.1099.12 Lakhs).These are exposed to price risk. In order to minimise price risk arising from investments in mutual funds, the Company predominately invests in those mutual funds which have higher exposure to high quality debt instruments with adequate liquidity & no demonstrated track record of price volatility.

Price risk sensitvity:

0.10% increase or decrease in prices will have the following impact on profit/loss before tax and on other components of equity

of equity
	Impact on Proft: Increase/(Decrease)		Impact on equity: Increase/(Decrease)
	**As at March 31, 2025 **	**As at March 31, 2024 **	**As at March 31, 2025 **	As at March 31, 2024
Price-increase by 0.10%	1.60	1.10	1.60	1.10
Price-decrease by 0.10%	(1.60)	(1.10)	(1.60)	(1.10)

4.09 Related Party Transactons

Related Party Transactons	Related Party Transactons	Related Party Transactons
(a) Names of related partes and descripton of relatonship
	Nature of Relatonship	Name of Related Partes
i)	Key managerial personnel	T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi -Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D. V. Chauhan - CompanySecretaryand Compliance Ofcer

~~87~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

ii)	Enttes where the key managerial personnel have signifcant infuence/ control	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited
iii)	Subsidiary	Gujarat Poly Electronics Limited
(b)	Details of Transactons :
	Partculars		Key Managerial personnel		Enttes where the key managerial personnel have signifcant infuence/control		Subsidiary		Total Amount
			**2024-25 **	**2023-24 **	**2024-25 **	**2023-24 **	**2024-25 **	**2023-24 **	**2024-25 **	2023-24
	Expenses Rent Ginners & Pressers Limited Tulsi Global Logistcs Private Limited Electricity charges Ginners & Pressers Limited Remuneraton P. T. Kilachand A. H. Mehta K. V. Panchasara D. V. Chauhan Directors sitng fees T. R. Kilachand N. T. Kilachand C. R. Desai N. S. Mehendale V. V. Sahasrabudhe A. A. Dalal Y. S. Mathur Commission to Directors T. R. Kilachand N. T. Kilachand C. R. Desai N. S. Mehendale V. V. Sahasrabudhe Y. S. Mathur Total expenses payable Reimbursement/(Recovery) of expenses Ginners & Pressers Limited Tulsi Global Logistcs Private Limited Total reimbursement*		- - - 57.55 14.64 33.42 11.92 0.60 0.48 0.34 1.00 0.34 0.66 1.00 1.11 1.11 1.11 1.11 1.11 1.11	- - - 50.22 41.88 25.95 10.40 0.48 0.48 0.88 0.88 0.88 - 0.88 - - - - - -	9.67 (5.78) 2.20 - - - - - - - - - - - - - - - -	9.67 (5.78) 2.14 - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - -	9.67 (5.78) 2.20 57.55 14.64 33.42 11.92 0.60 0.48 0.34 1.00 0.34 0.66 1.00 1.11 1.11 1.11 1.11 1.11 1.11	9.67 (5.78) 2.14 50.22 41.88 25.95 10.40 0.48 0.48 0.88 0.88 0.88 - 0.88 - - - - - -
			128.61	132.93	6.09	6.03	-	**- **	134.70	138.96
			- -	- -	- -	- (1.93)	- -	- -	- -	- (1.93)
			-	-	-	(1.93)	-	-	-	(1.93)

*The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole and also excludes contribution to provident fund and superannuation fund.

~~88~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

4.10 Proposed Dividend

A dividend of Rs.20/- i.e 200% of the face value of Rs.10/- each per equity share (Previous Year - Rs.30/- 300% of the face value of Rs.10/- each) has been recommended by the Board of Directors which is subject to the approval of the shareholders.

4.11 Unpaid Dividend

Unpaid Dividend
Partculars	Year	AGM Date	Amount
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	23-24	29-Aug-24	5.77
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	22-23	29-Aug-23	3.10
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	21-22	29-Aug-22	1.14
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on:	19-20	11-Sep-20	4.34
Unpaid dividend amount in the unpaid dividend account with Yes Bank Ltd.as on :	18-19	02-Aug-19	0.87

There are no amounts due for payment to the Investor Education and Protection fund under Section 125 as on March 31, 2025.

4.12 Revenue from contracts with customers

Disaggregaton of Revenue

Management conclude that disaggregation of revenue disclosed in Ind AS 108 meets the disclosure criteria of Ind AS 115 and segment revenue is measured on the same basis as required by Ind AS 115, hence separate disclosures as per Ind AS 115 is not required.

Contract Balances

Trade receivable is presented net of impairment in the Balance Sheet.

The following table provides information about receivables, contract assets and contract liabilities for the contracts with the customers.

Partculars	Year ended March 31	Year ended March 31
	2025	2024
Trade receivables	243.87	397.66

There is no significant changes in the contract assets and the contract liabilities balances during the period.

Performance Obligatons and remaining Performance Obligatons

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performances as the performance obligations relates to contracts where the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date.

4.13 Export Benefts

RoDTEP Scheme

The company is also entitled to Remission of Duties and Taxes on Exported Products (RoDTEP) scheme w.e.f 1.1.2021 vide Public Notice No.19/2015-20 notified on 17.08.2021. Accordingly, the company has recognized benefits of Rs.24.54 lakhs in the year ended March 31, 2025 (March 31, 2024 - Rs. 41.95 Lakhs).

4.14 Leases

As Lessee

The Company’s lease asset primarily consist of leases for Office Space.

(i) The Amount recognised in the Standalone statement of profit and loss in respect of right of use asset and lease obligation are as under :

are as under :
Partcualrs	Year ended March 31
	2025	2024
Depreciaton Interest expense on Lease Liability	25.22 10.25	23.19 10.43

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

(Rs. in Lakhs unless otherwise stated) TES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	(Rs. in Lakhs unless otherwise stated) TES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
(ii) Following are the changes in the carrying value of Lease liability for the year ended March 31, 2025:
Partcualrs	Category of ROU
	Ofce Place	Total
Balance as on April 01, 2024 Finance cost accrued during the year Payment of lease liabilites Balance as at March 31, 2025 Current porton of Lease liability Non Current porton of Lease liability	121.98 10.25 27.97	121.98 10.25 27.97
	104.28	104.28
	21.17 83.11
	104.28

104.28	104.28	104.28	104.28
Following are the changes in the carrying value of Lease liability for the year ended March 31, 2024:
Partcualrs		Category of ROU
		Ofce Place	Total
Balance as on April 01, 2023 Additons during the year Finance cost accrued during the year Payment of lease liabilites Balance as at March 31, 2024 Current porton of Lease liability Non Current porton of Lease liability		40.59 97.46 10.43 26.50	40.59 97.46 10.43 26.50
		121.98	121.98
		17.90 104.08
		121.98
(iii)	Amounts recognised in the statement of cash fows
	Partculars	Year ended March 31
		2025	2024
	Total cash outlow for leases	27.97	26.50

(iv) Rental expense recorded for short-term leases was Rs.11.90 Lakhs for the year ended March 31,2025 (March 2024Rs.12.26 Lakhs).

(v) The maturity analysis of lease liabilities are disclosed in Note no. 4.08 (ii). The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(vi) Certain lease agreements are subject to escalation clause and with extension of lease term options.

(vii) Future lease payments which will start from April 1, 2025 is Rs. NIL . (March 31, 2024: Rs. Nil)

As a Lessor

Rental Income on assets given on operating lease is Rs.5.78 Lakhs for the year ended March, 2025 (March 31, 2024: Rs.5.78 Lakhs)

~~90~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

**4.15 **	Details of CSR Expense	Details of CSR Expense	Details of CSR Expense
	Partculars			For The Year Ended March 31,
				2025		2024
	(i) Amount required to be spent by the Company during the year (ii) Amount spent towards CSR Actvites (iii) Shortall at the end of the year (iv) Reasons for Short fall			6.86 7.00 - N. A.		N. A. N. A. N. A. N. A.
	Partculars	Amount Spent through Agency	In Cash		Yet to be paid in Cash		Total
	Constructon/Acquisiton of asset Other than (i) above, for the following actvites 1. Promotng educaton 2. Solar Power installaton on LNK Balvatka wing 3. Promotng educaton	- Kindness Unlimited North Educaton Society (NGES) North Educaton Society (NGES)	- 2.00 4.00 1.00		- - - -		- 2.00 4.00 1.00
			7.00				7.00

7.00 7.00	7.00 7.00	7.00 7.00	7.00 7.00	7.00 7.00	7.00 7.00
4.16 Transactons with companies struck of under secton 248 of the Companies Act, 2013 or Secton 560 of the Companies Act,1956: Name of struck of Company Nature of transactons with struck-of Company As at March 31, 2025 As at March 31, 2024 Relatonship with the Struck of company, if any, to be disclosed Ushakant Investment & Consultant Pvt Ltd. Shares held by struck of company 100 100 Shareholder Company Reserved Investor Pvt Ltd. Shares held by struck of company 70 70 Shareholder Company Fort Propertes Ltd. Shares held by struck of company 2,010 2,010 Shareholder Company Cyril Investment Consultant (P) Ltd. Shares held by struck of company 60 60 Shareholder Company Alfachem agents Pvt Ltd. Shares held by struck of company 20 20 Shareholder Company CMS Securites Ltd. Shares held by struck of company 20 20 Shareholder Company Creatve Commercial Private Limited. Shares held by struck of company 20 20 Shareholder Company Advance share trading Pvt.Ltd. Shares held by struck of company 10 10 Shareholder Company Heta Investment Service Pvt Ltd. Shares held by struck of company 10 10 Shareholder Company V.M. Fiscal Services Pvt. Ltd. Shares held by struck of company 10 10 Shareholder Company
	Name of struck of Company	Nature of transactons with struck-of Company	As at March 31, 2025	As at March 31, 2024	Relatonship with the Struck of company, if any, to be disclosed
	Ushakant Investment & Consultant Pvt Ltd. Reserved Investor Pvt Ltd. Fort Propertes Ltd. Cyril Investment Consultant (P) Ltd. Alfachem agents Pvt Ltd. CMS Securites Ltd. Creatve Commercial Private Limited. Advance share trading Pvt.Ltd. Heta Investment Service Pvt Ltd. V.M. Fiscal Services Pvt. Ltd.	Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company Shares held by struck of company	100 70 2,010 60 20 20 20 10 10 10	100 70 2,010 60 20 20 20 10 10 10	Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -	4.17 Key Financial Ratos Ratos Formula As at 31st March, 2025 As at 31st March, 2024 % Variance Remarks (a) Current Rato, Current Asset/Current Liability 4.44 5.25 (15) - (b) Debt-Equity Rato, Total Debt/ Shareholders Equity NA NA NA - (c) Debt Service Coverage Rato, Earnings available for Debt service/Debt Service NA NA NA - (d) Return on Equity Rato, Net Proft afer Tax - Preference dividend /Average shareholders equity 0.10 0.21 (50) Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed (e) Inventory turnover rato, Cost of goods sold or sales/ average Inventory 4.87 7.93 (39) - (f) Trade Receivables turnover rato, Net Credit Sales/Average Accounts receivables 7.18 9.90 (27) Due to decrease in revenue & trade receivables (g) Trade payables turnover rato, (Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable 34.64 31.27 11 Due to decrease in purchases and decrease in trade payables (h) Net capital turnover rato, Net Sales/Working Capital 2.62 3.48 (25) - (i) Net proft rato, Net Proft/Net sales 0.15 0.17 (14) - (j) Return on Capital employed, Earnings before interest and taxes/captal employed 0.12 0.25 (51) Due to decrease in revenue from operatons (k) Return on investment. Other Income/Average Cash, Cash Equivalents & Other Marketable Securites 0.01 0.01 - -
	Ratos	Formula	As at 31st March, 2025	As at 31st March, 2024	% Variance	Remarks
	(a) Current Rato,	Current Asset/Current Liability	4.44	5.25	(15)	-
	(b) Debt-Equity Rato,	Total Debt/ Shareholders Equity	NA	NA	NA	-
	(c) Debt Service Coverage Rato,	Earnings available for Debt service/Debt Service	NA	NA	NA	-
	(d) Return on Equity Rato,	Net Proft afer Tax - Preference dividend /Average shareholders equity	0.10	0.21	(50)	Due to decrease in profts with decrease in turonver and reducton in cost of materials consumed
	(e) Inventory turnover rato,	Cost of goods sold or sales/ average Inventory	4.87	7.93	(39)	-
	(f) Trade Receivables turnover rato,	Net Credit Sales/Average Accounts receivables	7.18	9.90	(27)	Due to decrease in revenue & trade receivables
	(g) Trade payables turnover rato,	(Cost of Raw Material consumed +Purchase of Stock in trade+ Other Expenses)/ Average Trade Payable	34.64	31.27	11	Due to decrease in purchases and decrease in trade payables
	(h) Net capital turnover rato,	Net Sales/Working Capital	2.62	3.48	(25)	-
	(i) Net proft rato,	Net Proft/Net sales	0.15	0.17	(14)	-
	(j) Return on Capital employed,	Earnings before interest and taxes/captal employed	0.12	0.25	(51)	Due to decrease in revenue from operatons
	(k) Return on investment.	Other Income/Average Cash, Cash Equivalents & Other Marketable Securites	0.01	0.01	-	-

4.18 Additional Regulatory Information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

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

• (b) 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.

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

• (d) 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:

• i. 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

• ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

• (e) 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:

• i. 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

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

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

• (f) The Company has not entered 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.

• (g) The Company has no borrowings from banks and financial institutions on the basis of security of current assets.

• (h) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any government authority.

• (i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

• (j) The Company has not entered into any scheme of arragment which has an accounting impact on current or previous financial year.

• 4.19 Supplementary statutory information required to be given pursuant to schedule V of Regulation 34(3) and 53(f) of the SEBI (Listing Obligation & Disclosure Requirement) Regulations, 2015:

The company has complied with the requirements to the extent applicable, which forms part of annual report.

• 4.20 The provisions of the Companies Act, 2013 and rules made thereunder requires that the Company uses only such accounting software for maintaining its books of account which has a feature of recording audit trail for each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled or tampered with effect from April 1, 2023.

Further the audit trail has been preserved by the company as per statutory requirements for record retention.

The Company has taken all necessary steps to be compliant with the above requirement of audit trail functionality since it’s effective date.

4.21 Recent Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards which are applicable to the Company.

As per our report of even date For and on behalf of the Board of Directors

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025 Place: Mumbai Date: May 14, 2025

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF POLYCHEM LIMITED

Report on the audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Polychem Limited (hereinafter referred to as “the Holding Company”) and its subsidiary (the Holding Company and its subsidiary together referred to as “the Group”) comprising of the Consolidated Balance Sheet as at March 31, 2025, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement for the year then ended, and a summary of material accounting policies and other explanatory information (hereinafter referred to as ‘the consolidated financial statements’).

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditor on standalone financial statements and on the other financial information of the subsidiary, the aforesaid consolidated financial statements, give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2025, its consolidated profit, their consolidated total comprehensive income , their consolidated changes in equity and their consolidated cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by Institute of Chartered Accountants of India (ICAI), together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and Code of Ethics issued by ICAI. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters section below is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment and based on the consideration of the reports of the other auditors on standalone financial statements and on the other financial information of the subsidiary, were of most significance in our audit of the Consolidated financial statements of the current period. These matters were addressed in the context of our audit of the Consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon

The Holding Company’s Board of Directors is responsible for the preparation of other information.The other information comprises the information included in Annual Report but does not include the consolidated financial statement, standalone financial statement and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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POLYCHEM LIMITED

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Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance (including other comprehensive income), consolidated statement of changes in equity and consolidated cash flows of the Group, in accordance with Ind AS and other accounting principles generally accepted in India. The respective Governing Bodies of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless respective Board of Directors and management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the standalone financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entity included in the consolidated financial statements, which have been audited by other auditor, such other auditor remain responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in “Other Matters” paragraph below.

We believe that the audit evidence obtained by us along with the consideration of the audit report of the other auditors referred to in “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

We communicate with those charged with governance of the Holding Company and such other entity included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the financial year ended March 31, 2025 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the audited standalone financial statements of subsidiary, whose standalone financial statements reflect total assets of ₹ 2,255.49 lakhs as at March 31, 2025, total revenue of ₹ 1,864.17 lakhs,total net profit after tax of ₹ 214.48 lakhs, total comprehensive income ₹ 201.65 lakhs and cash outflows (net) ₹ (11.89) lakhs for the year ended March 31, 2025, as considered in the statement.This financial statements and other financial information have been audited by other auditor whose report have been furnished to us by the Management of the Company and our opinion on the consolidated financial statements, to the extent they have been derived from such financial statements is based solely on the report of such other auditor.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditor.

Report on Other Legal and Regulatory Requirements

• 1) As required by section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on the standalone financial statements / financial information of the subsidiary, and referred to in Other Matters section above, we report, to the extent applicable that;

• i. We and the other auditors, whose report we have relied upon have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements;

• ii. In our opinion, proper books of account as required by law maintained by the Group, including relevant records relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books, except in relation to compliance with the requirement of audit trail, refer paragraph ix(f) below;

• iii. The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements;

• iv. In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under section 133 of the Act, read with relevant rules issued thereunder and relevant provisions of the Act;

• v. On the basis of the written representations received from the directors of the Holding Company as on March 31, 2025 taken on record by the Board of Directors of the Holding Company and the report of the statutory auditor of its subsidiary company incorporated in India, none of the directors of the Group, is disqualified as on March 31, 2025 from being appointed as a director in terms of section 164 (2) of the Act;

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• vi. The modification relation to the maintainence of accounts and other matters connected therewith, are as stated in paragraph (ii) above;

• vii. With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company, its subsidiary incorporated in India and the operating effectiveness of such controls, refer to our separate report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of internal financial controls with reference to consolidated financial statements of those companies.

• viii. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Holding Company to its directors during the year is in accordance with the provisions of section 197 of the Act; and

• ix. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of other auditor of subsidiary, as noted in the Other matters paragraph:

• a) The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group, Refer Note 4.02 to the consolidated financial statements;

• b) The Group, have made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts and;

• c) There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Group.

• d) (i) The respective Managements of the Holding Company and its subsidiary company which are companies incorporated in india whose financial statements have been audited under the Act, have represented to us and other auditor of subsidiary company respectively as stated in Note No. 4.17(d), to best of their knowledge and belief, 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 holding Company and its subsidiary company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company and its subsidiary company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

  • (ii) The respective Managements of the Holding Company and its subsidiaries which are companies incorporated in india whose financial statements have been audited under the Act, have represented to us and other auditor of subsidiary respectively as stated in Note No. 4.17(e), to the best of our knowledge and belief, no funds (which are material either individually or in aggregate) have been received by the Holding Company and its subsidiary from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or Subsidiary company shall, 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;

  • (iii) Based on the audit procedures performed by us that has been considered reasonable and appropriate in the circumstances,and those performed by the auditors of the subsidiaries, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11 (e), as provided under (i) and (ii) above, contain any material mis-statement.

• e) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act as applicable to the extent it applies to payment of dividend.

As stated in Note no. 4.10 to the Consolidated financial statements, the Board of Directors of the Holding Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

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• f) As stated in Note no. 4.19 of the accompanying consolidated financial statements and based on our examination which included test checks, and that performed by the respective auditor of the subsidiary which is company incorporated in India whose financial statements have been audited under the Act, the company and its subsidiary have used an accounting software for maintaining their books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. However, in case of subsidiary Company incorporated in India, audit trail feature was not enabled to direct changes at database level. Further, during the course of our audit we and the respective auditor of subsidiary did not come across any instance of audit trail feature being tampered with in respect of the accounting software. Except for the periods of previous financial year where the audit trail feature was not enabled for subsidiary company at databases level, the Group has preserved the audit trail in accordance with statutory record retention requirements.

• 2) With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order” / “CARO”) issued by the Central Government in terms of section 143(11) of the Act, to be included in the Auditor’s report, according to the information and explanations given to us, and based on the CARO reports issued by the auditors of the subsidiary, included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, provided to us by the Management of the Company and based on the identification of matters of qualifications or adverse remarks in their CARO reports by the respective component auditors and provided to us, we report that the auditors of such company have not reported any qualifications or adverse remarks in their CARO reports.

For Nayan Parikh & Co. Chartered Accountants 107023W Firm Registration No.: Deepali Shrigadi Partner Place: Mumbai Membership No.: 133304 Dated: May 14, 2025 UDIN: 25133304BMGYCC9073

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph 1(vii) under “Report on Other Legal and Regulatory Requirements” of our Independent Auditor’s Report on even date to the members of Polychem Limited (“the Holding Company) on the consolidated financial statements for the year ended March 31, 2025:

In conjunction with our audit of the consolidated financial statements of the Holding Company as of and for the year ended March 31, 2025, we have audited the internal financial controls with reference to financial statements of Polychem Limited (hereinafter referred to as ‘the Holding Company’) and its subsidiary, which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding company, its subsidiary, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal controls with reference to financial statements criteria established by the Holding Company, considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (“Guidance Note”) issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to Consolidated financial statement of the Holding Company, its subsidiary, which are companies incorporated in India, based on our audit. We conducted our audit

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in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Consolidated financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to Consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to Consolidated financial statements included obtaining an understanding of internal financial controls with reference to Consolidated financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor in terms of their report referred to in the “Other Matters” paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Holding Company’s internal financial control system with reference to financial statements.

Meaning of Internal Financial Controls with reference to Consolidated Financial Statements

A company’s internal financial controls with reference to Consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to Consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Consolidated Financial Statements

Because of the inherent limitations of internal financial controls with reference to Consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to Consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Holding Company, its subsidiary, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls system with reference to Consolidated financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2025 based on the internal controls with reference to Consolidated financial statements criteria established by the Holding Company, considering the essential components of internal controls stated in the Guidance Note issued by the ICAI.

Other Matters

Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to Consolidated financial statements, in so far as it relates standalone financial statements of subsidiary, which are company incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.

For Nayan Parikh & Co. Chartered Accountants 107023W Firm Registration No.:

Place: Mumbai Dated: May 14, 2025

Deepali Shrigadi Partner Membership No.: 133304 UDIN: 25133304BMGYCC9073

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CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025	CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025	CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025	CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
Partculars Note No.		As at March 31,
		2025	2024
ASSETS Non-current Assets Property, plant and equipment 2.01 Right - of - use asset 2.01 Other Intangible assets 2.02 Financial assets Investments 2.03 Loans 2.04 Other fnancial assets 2.05 Deferred tax assets (Net) 2.06 Other non-current assets 2.07 Total non-current assets Current Assets Inventories 2.08 Financial Assets Trade receivables 2.09 Cash and cash equivalents 2.10 Bank balances other than cash and cash equivalents 2.11 Loans 2.04 Other fnancial assets 2.05 Current tax assets (Net) 2.12 Other current assets 2.07 Total current assets Assets held for sale 2.13 Total Assets EQUITY AND LIABILITIES Equity Equity Share capital 2.14 Other Equity 2.15 Amount atributable to Owners of Polychem Limited Non controlling Interest Total equity Liabilites Non-Current Liabilites Financial Liabilites Lease Liability Provisions 2.17 Total non-current liabilites Current Liabilites Financial Liabilites Lease Liability Trade payables 2.18 Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Other fnancial liabilites 2.16 Provisions 2.17 Other current liabilites 2.19 Total current liabilites Total Equity abd Liabilites Summary of Material Accountng Policies 1 Refer accompanying notes. These notes are an integral part of the fnancial statements.		214.91 128.73 14.94 2834.89 21.20 35.69 54.32 7.88 3312.56 791.32 716.46 377.39 81.80 15.49 3.09 39.04 100.91 2,125.50 6.39 5444.45 40.40 4,400.02 4,440.42 519.34 4,959.76 116.97 42.44 159.41 25.24 8.88 40.27 74.99 35.65 140.25 325.28 5,444.45	232.18 159.81 20.17 2,251.15 15.63 161.78 68.52 3.57
			2,912.81
			739.92 808.69 377.75 127.51 12.85 3.23 0.10 131.46
			2,201.51
			6.39
			5,120.71
			40.40 4,080.17
			4,120.57 405.13
			4,525.70
			142.00 27.38
			169.38
			21.48 16.49 125.49 80.73 24.31 157.13
			425.63
			5,120.71
As per our report of even date For and on behalf of the Board of Directors For Nayan Parikh & Co. Chartered Accountants Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Firm Registraton No.: 107023W Nandish T. Kilachand Director (DIN No.:00005530) Deepali N Shrigadi Kanan V. Panchasara Chief Financial Ofcer Partner Deepali V. Chauhan Company Secretary & Compliance Ofcer Membership No.:133304 Place:Mumbai Date:May 14, 2025 Place:Mumbai Date:May 14, 2025

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CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Partculars Note No.		Year Ended March 31,	Year Ended March 31,
		2025	2024
INCOME Revenue from operatons 3.01 Other Income 3.02 Total Income EXPENSES Cost of materials consumed 3.03 Purchases of Stock-in-trade 3.04 Changes in inventories of stock-in-trade 3.05 Processing charges Employee beneft expenses 3.06 Finance Cost 3.07 Depreciaton and amortzaton expense 3.08 Other expenses 3.09 Total Expenses Proft before tax Tax expenses 3.10 Current tax (for the year) Current tax (relatng to prior years) Deferred tax Total tax expense Proft for the period Other Comprehensive income/(loss) Items that will not be reclassifed to proft or loss Remeasurements of post employment beneft Income tax relatng to these items 3.10 Total other comprehensive income/(loss) Total comprehensive income for the period Proft atributable to: Owners of the parent Non - Controlling Interest Other comprehensive income/(loss) atributable to: Owners of the parent Non - Controlling Interest Total comprehensive income atributable to: Owners of the parent Non - Controlling Interest Earnings per equity share Basic (in Rs.) Diluted (in Rs.) Summary of Material Accountng Policies 1		4,165.42 224.88 4,390.30 1,212.05 1,129.32 (53.83) 312.93 707.68 13.84 101.69 487.40 3,911.08 479.22 71.69 2.51 20.83 95.03 384.19 (26.36) 6.63 (19.73) 364.46 283.09 101.10 (13.61) (6.12) 269.48 94.98 70.06 70.06	5,386.68 196.19
			5,582.87
			1,832.28 1,049.76 17.83 429.75 699.38 13.81 101.67 483.25
			4,627.73
			955.14 170.00 1.67 (36.17)
			135.50
			819.63
			(13.02) 3.28
			(9.76)
			809.88
			720.29 99.35 (7.93) (1.83) 712.36 97.52 178.27 178.27

As per our report of even date For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

For and on behalf of the Board of Directors

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Equity share capital	Amount
Balance as at April 1, 2023 Changes in equity share capital during the year Balance as at March 31, 2024 Changes in equity share capital during the year Balance as at March 31, 2025	40.40 -
	40.40
	-
	40.40

Other Equity

Balance as at March 31, 2025 Other Equity	40.40
Partculars	Atributable to owners of the Company
	Securites Premium Account General Reserve Capital Redempton Reserve Capital Reserve Retained earnings Amount atributable to Owners of the Holding Company NCI Total
Balance as at April 1, 2023 1,424.37 278.22 50.00 539.37 1,156.67 3,448.62 307.61 3,756.24 Proft for the year - - - - 720.29 720.29 99.35 819.63 Other comprehensive income/(loss) - - - - (7.93) (7.93) (1.83) (9.76) Total comprehensive income for the year - - - - 712.36 712.36 97.52 809.87 Dividends - - - - (80.81) (80.81) -(80.81) Balance as at March 31, 2024 1,424.37 278.22 50.00 539.37 1,788.22 4,080.17 405.13 4,485.30 Proft for the year - - - - 283.09 283.09 101.10 384.19 Additons 171.58 171.58 19.23 190.81 Other comprehensive income/(loss) - - - - (13.61) (13.61) (6.12) (19.73) Total comprehensive income for the year - - - - 441.06 441.06 114.21 555.27 Dividend Paid - - - -(121.21) (121.21) -(121.21) Balance as at March 31, 2025 1,424.37 278.22 50.00 539.37 2,108.07 4,400.02519.34 4,919.36	1,424.37 278.22 50.00 539.37 1,156.67 3,448.62 307.61 3,756.24 - - - - 720.29 720.29 99.35 819.63 - - - - (7.93) (7.93) (1.83) (9.76)
	1,424.37 278.22 50.00 539.37 2,108.07 4,400.02519.34 4,919.36

A dividend of Rs. 20/- per equity share i.e. 200% of the face Value of Rs.10/- each (Previous Year - Rs. 30/- per equity share i.e. 300 % of the face value of Rs.10/- each) has been recommended by the Board of Directors which is subject to the approval of the shareholders.

As per our report of even date

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

For and on behalf of the Board of Directors

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025

AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025	AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025	AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025	AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
Partculars		Year Ended March 31
		2025	2024
Cash fow from operatng actvites Proft before tax Non-cash Adjustment to Proft Before Tax: Depreciaton and amortzaton expense Dividend Income Gratuity & Leave Encashment Provision Interest Income Amount no longer payable writen back (Net) Amount writen of Loss of property, plant and equipment MTM (Gain)/loss on forward contracts Gain/Loss on disposal of property,plant and equipment MTM Gain (Including fair value changes in fnancial instruments) Gain on sale of Invesments Bad Debts Loss on sale of assets Finance Cost on Lease Unrealised gain and loss on foreign exchange Working Capital Adjustments: Decrease/(Increase) in trade receivables (Increase)/Decrease in inventories Decrease in trade payables (Increase)/Decrease in other fnancial assets (Increase)/Decrease in other non-current assets Decrease/(Increase) in other current assets Increase in provisions (Increase)/Decrease in Loans (Decrease) in other current liabilites Increase/(Decrease)in other fnancial liabilites Cash generated from operatons Direct taxes paid (net of refunds) Net cash fow from/(used in) operatng actvites (A) Cash fow from investng actvites Payments for acquisiton of property, plant and equipment Payments for acquisiton of other intangible assets Loans & advance repayments to employees Proceeds from sale of property, plant and equipment Redempton/(Investment) in Fixed deposits Investment in mutual funds & shares Proceeds from sale of investments Interest received Dividend received Net cash fow from/(used in) investng actvites (B)		479.22 101.69 (1.59) (7.47) (28.20) 0.85 0.51 0.56 (0.46) (1.35) (183.72) (0.39) 1.11 (0.06) 13.84 (9.84) 364.70 100.18 (51.40) (92.83) (0.09) (4.32) 25.94 (13.95) (1.82) (8.57) 7.26 325.10 113.13 211.97 (46.04) (2.95) (6.39) 1.73 172.57 (534.98) 326.20 28.71 1.59 (59.56)	955.14 101.67 (1.32) 10.46 (16.73) (0.44) - - 2.36 0.16 (169.68) - 1.10 - 13.81 (14.98)
			881.55 (23.19) 10.66 (7.79) 5.10 1.66 (18.33) (7.07) 1.96 (37.76) (20.40)
			786.39 149.10
			637.29
			(40.76) (4.49) (11.57) 0.13 (90.00) (179.76) 0.57 14.77 1.32
			(309.79)

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AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Cash fows from fnancing actvites Finance lease payments Dividends Paid Net cash fow from/(used in) in fnancing actvites (C) Net (Decrease)/Increase in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Reconciliaton of cash and cash equivalents as per the cash fow statement: Cash and cash equivalents Balances with banks: In current accounts Deposits with original maturity of less than 3 months Balance as per the cash fow statement:	(31.56) (121.21) (152.77) (0.36) 377.75 377.39 218.39 159.00 377.39	(28.71) (83.03)
		(111.74)
		215.76 161.99
		377.75
		353.75 24.00
		377.75

Note:

1. Above statement has been prepared by using Indirect method as per Ind AS - 7 on Statement of Cash flows.

2. Changes in liabilities arising from financing activities:

Pariculars As at March 31, 2024 Net cash fows	Non cash changes As at March 31, 2025 Fair value changes
Lease Liabilites 163.48 (31.56)	10.29 142.21
Total liabilites from fnancingactvites 163.48 (31.56)	10.29 142.21

1. The Group incurred an amount of Rs. 7 Lakhs (March 31, 2024 : Rs. 2.38 Lakhs), towards CSR expenditure for purposes other than construction / acquisition of any asset

As per our report of even date

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

For and on behalf of the Board of Directors

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

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MATERIAL ACCOUNTING POLICIES AND NOTES ON CONSOLIDATED FINANCIAL STATEMENTS

These material accounting policies and notes to accounts form part of the Consolidated financial statements for the year ended March 31, 2025. The Consolidated financial statements comprises of Polychem Limited (the “Company”) and its subsidiary (Gujarat Poly Electronics Limited (collectively the “Group”).

Background

Polychem Limited (“the Company”) is engaged in the manufacturing of specialty chemicals and property development. The Company has manufacturing plant in India and sells it in Domestic as well as International market. The Company is Public Limited Company domiciled in India and is listed on the Bombay Stock Exchange (BSE).

1.00 MATERIAL ACCOUNTING POLICIES

This note provides a list of the material accounting policies adopted in the presentation of these consolidated financial statements.

1.01 BASIS OF PREPARATION

(i) Compliance with Ind AS

The consolidated financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (“the Act”), and relevant rules issued there under. In accordance with proviso to the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial statements are in accordance with the definitions and other requirements specified in the applicable Accounting Standards.

Authorizaton of Consolidated fnancial statements

The consolidated financial statements were approved for issue by Board Of Directors on May 14, 2025.

(ii) Historical cost conventon

The consolidated financial statements have been prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date:

• certain financial assets and liabilities are measured at fair value; and

• defined benefit plans – fair value of plan assets less the present value of the defined benefit obligations.

1.02 FUNCTIONAL AND PRESENTATION CURRENCY

These consolidated financial statements are presented in India Rupees (INR), which is also the company’s functional currency. All amounts disclosed in the Consolidated financial statements and notes have been rounded off to the nearest Lakhs, except where otherwise indicated.

1.03 CURRENT VERSUS NON-CURRENT CLASSIFICATION

All assets and liabilities have been classified as current or non-current as per Company’s normal operating cycle. Based on the nature of operations, the Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

1.04 MEASUREMENT OF FAIR VALUES

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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SIXTY - EIGHTH ANNUAL REPORT

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

1.05 USE OF JUDGEMENTS, ESTIMATES & ASSUMPTIONS

While preparing consolidated financial statements in conformity with Ind AS, the management makes certain estimates and assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on our estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecast and the best estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions. The management continually evaluate these estimates and assumptions based on the most recently available information.

Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are as below:

Key sources of estmaton uncertainty

a) Financial instruments; (Refer note 4.07)

b) Useful lives of property, plant and equipment and intangible assets; (Refer note 1.07)

c) Valuation of inventories; (Refer note 1.11)

d) Measurement of defined benefit obligations, key actuarial assumptions; (Refer note 4.03)

e) Evaluation of recoverability of deferred tax assets; (Refer note 2.06) and

f) Contingencies. (Refer note 4.02)

Critcal accountng judgments

The Company has equity stake in its subsidiary for strategic reasons concerning its operation. The relationship with this entity have been determined based on principles laid down in Ind AS 110 – Consolidated Financial Statements.

1.06 FOREIGN CURRENCY TRANSACTIONS

(i) Functonal and presentaton currency

The group’s consolidated financial statements are prepared in INR, which is also the group’s functional and presentation currency.

(ii) Transactons and balances

Monetary items

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Statement of Profit and Loss.

Non – Monetary items

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

1.07 PROPERTY, PLANT AND EQUIPMENT

Recogniton and Measurement

Property, Plant and Equipment (including capital work-in-progress) is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price, non-refundable taxes, any costs directly attributable to bringing the asset into the location and conditions necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, finance cost. The purchase price is the aggregate amount paid and the fair value of any other consideration given to acquire the asset.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred.

The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end, and changes, if any, are accounted prospectively.

Depreciaton on Property, plant and equipment

Depreciation on Property, Plant & Equipment is provided on written down value method. In accordance with requirements prescribed under Schedule II of Companies Act, 2013, the Company has assessed the estimated useful lives of its Property, Plant & Equipment and has adopted the useful lives and residual value as prescribed in Schedule II.

All assets costing up to Rs. 5,000 (in ₹ ) are fully depreciated in the year of capitalization.

The estimated useful lives and residual values are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

In case of additions or deletions during the year, depreciation is computed from the month in which such assets are put to use and up to previous month of sale, disposal or held for sale as the case may be. In case of impairment, depreciation is provided on the revised carrying amount over its remaining useful life.

Derecogniton of Property, Plant and Equipment

An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of an item of Property, Plant and Equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.

1.08 INTANGIBLE ASSETS

Recogniton and Measurement

Intangible assets with finite useful lives that are acquired are recognised only if they are separately identifiable and the Company expects to receive future economic benefits arising out of them. Such assets are stated at cost less accumulated amortization and impairment losses. Intangible Assets with indefinite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses.

Amortsaton of intangible assets

Intangible assets with finite useful lives are amortised on a straight line basis over their useful economic lives and assessed for impairment whenever there is indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each year end. The amortisation expense on Intangible assets with finite lives and impairment loss is recognised in the Statement of Profit and Loss

Derecogniton of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in statement of profit and loss when the asset is derecognised.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

1.09 IMPAIRMENT OF ASSETS (Other than Financial Assets)

Carrying amount of tangible assets, intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group’s assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.10 LEASES

As a Lessee

The Group, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Group has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Group measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses incremental borrowing rate.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term ending within 12 months and the Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

1.11 INVENTORIES

Inventories are valued as follows:

Raw materials, packing materials, work-in-process and finished goods are valued at cost or net realizable value, whichever is lower. Cost of raw materials and packing materials is determined on FIFO basis. Cost of work-in-process and finished goods is determined on the basis of absorption costing method.

Property under development

Property under development represents free hold land converted into stock-in-trade on the basis of valuation made by approved valuer and development expenses incurred thereon.

1.12 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 insignificant risk of change in value.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

For the purpose of statement of cash flows, cash and cash equivalents consist of cash, short-term deposits as defined above, bank overdrafts and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value as they are considered as an integral part of the Company’s management. Bank overdrafts are shown within borrowings under current liabilities in the balance sheet.

1.13 PRINCIPLES OF CONSOLIDATION

Subsidiary

Subsidiary is an entity over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiary is fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group combines the financial statements of the parent and its subsidiary line by line adding together like items of assets, liabilities, equity, income and expenses. Intergroup transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.

Non-controlling interests in the results and equity of subsidiary are shown separately in the consolidated statement of profit and loss, consolidated statement of changes in equity and balance sheet respectively. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the noncontrolling interests even if this results in the noncontrolling interests having a deficit balance.

1.14 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised when a group becomes a party to the contractual provisions of the instruments.

Inital Recogniton and Measurement – Financial Assets and Financial Liabilites

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.

However, trade receivables that do not contain a significant financing component are measured at transaction price.

Classifcaton and Subsequent Measurement: Financial Assets

The group classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”) on the basis of following:

• the entity’s business model for managing the financial assets and

• the contractual cash flow characteristics of the financial asset.

Amortsed Cost:

A financial asset is classified and measured at amortised cost if both of the following conditions are met:

• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual

• cash flows and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

FVTOCI:

A financial asset is classified and measured at FVTOCI if both of the following conditions are met:

• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses and interest revenue which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

FVTPL:

A financial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Impairment of Financial Assets

The group assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected Credit Losses are measured through a loss allowance at an amount equal to:

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

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

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Classifcaton and Subsequent measurement: Financial Liabilites

The group’s financial liabilities include trade payables and other financial liabilities.

Financial Liabilites at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.

Gains or losses on financial liabilities held for trading are recognised in the Statement of Profit and Loss.

Other Financial Liabilites:

Other financial liabilities (Including borrowings, trade and other payables) are subsequently measured at amortised cost using the effective interest method.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecogniton of Financial Assets and Financial Liabilites:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Financial liability is also derecognised, when its terms are modified and the cash flows of the modified liability substantially different, in which case a new financial liability based on modified terms is recognised at fair value.

Write-of:

The gross carrying amount of a financial asset is written off when there no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

Ofsetng Financial Instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

1.15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

PROVISION

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a current pretax rate. The increase in the provision due to the passage of time is recognised as interest expense.

CONTINGENT LIABILITY

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the consolidated financial statements.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

CONTINGENT ASSET

Contingent asset is not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.16 REVENUE RECOGNITION

The Group derives revenue primarily from manufacture of Polymers & Co-Polymers business comprising of Divinyl Benzene, Acrylic Acid and Acrylates & deals in Active and Passive electronic components, specializing in Ceramic Capacitors both Single Layer (Disc) and Multilayer (MLCC) in Radial, Axial and SMD configurations.

Revenue is recognised upon transfer of control of promised products or services to customers at the amount of transaction price (net of variable consideration) that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is measured based on the fair value of consideration specified in the contract with customer and excludes amounts collected on behalf of third parties.

Goods and Service Tax (GST) collected on behalf of the government is excluded from Revenue, as it is not an economic benefit to the Company.

Other Operatng Revenue

Other Operating Income consists of revenue generated from export incentives, duty drawbacks, and realized exchange gains. This income is recognized when performance obligations, as specified are fulfilled, and there is no significant uncertainty regarding the amount of consideration to be received.

1.17 RECOGNITION OF INTEREST AND DIVIDEND INCOME

Interest

Interest income is recognized using the effective interest rate method.

Dividend

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Group, and the amount of the dividend can be measured reliably.

1.18 TAXES ON INCOME

Current Tax

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

Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Profit and Loss.

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 tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the 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 recognised outside the statement of profit and loss is recognised outside the Statement of Profit and Loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities where the group have a legally enforceable right to set-off assets against liabilities.

1.19 EMPLOYEE BENEFITS

a) Short-term obligatons

Short-term employee benefits are measured on an undiscounted basis and expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b) Post-employment obligatons

The group operates the following post-employment schemes:

• defined benefit plans such as gratuity; and

• defined contribution plans such as provident fund.

Defned Beneft Plans

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in statement of profit and loss as past service cost.

Defned contributon plans

The Group makes specified monthly contributions towards government administered provident fund scheme. The group has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

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SIXTY - EIGHTH ANNUAL REPORT

c) Other long-term employee beneft obligatons

The liabilities for leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in statement of profit and loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

1.20 EARNINGS PER SHARE (EPS)

BASIC EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

DILUTED EARNINGS PER SHARE

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.

1.21 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the group. Further , inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the group as a whole and are not allocable to segments on a reasonable basis, have been included under “ Unallocated expenses”.

Deemed cost for Property, Plant and Equipment and intangible assets

The group has elected to continue with the carrying value of all of its Property, Plant and Equipment and intangible assets recognised as of the transition date measured as per the previous GAAP and use that carrying value as it’s deemed cost as of the transition date.

1.22 RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards which are applicable to the Company.

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POLYCHEM LIMITED

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

2.01 2.02	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)	Property, Plant and Equipment (Rs. in Lakhs unless otherwise stated)
	Partculars	Gross Carrying Amount							Accumulated Depreciaton/Impairment						Net Carrying Amount
		As at April 1, 2024		**Additon **		**Disposal **		As at March 31, 2025	As at April 1, 2024	For the Year		Eliminaton on disposal	As at March 31, 2025		As at March 31, 2025	As at March 31, 2024
	Own Assets: Plant and Machinery Laboratory equipments Furniture & Fixtures Electrical Installatons Computers Ofce Equipments Building- Factory Motor Vehicles Leasehold Improvements	88.01 6.60 10.69 2.53 56.38 35.86 65.12 255.23 18.95		20.49 - 2.77 - 8.11 2.90 - 11.30 -		2.02 - - - 0.08 0.22 - 3.41 -		106.48 6.60 13.46 2.53 64.41 38.54 65.12 263.12 18.95	28.90 5.03 7.99 0.50 44.21 28.18 40.91 147.88 3.59	16.81 0.36 0.80 0.19 8.57 3.15 0.58 31.05 0.43		1.46 - - - 0.07 0.21 - 3.11 -	44.25 5.39 8.79 0.69 52.71 31.12 41.49 175.82 4.02		62.23 1.21 4.66 1.84 11.69 7.42 23.63 87.30 14.93	59.11 1.57 2.70 2.03 12.18 7.68 24.21 107.35 15.35
	Total(A)	539.38		45.57		5.74		579.21	307.20	61.95		4.85	364.28		214.91	232.18
	Right of use Asset	290.76		-		-		290.76	130.95	31.10		-	162.05		128.73	159.81
	Total(B)	290.76		-		-		290.76	130.95	31.10		-	162.05		128.73	159.81
	Total	830.14		45.57		5.74		869.97	438.16	93.05		4.85	526.33		343.64	391.99
	Partculars	Gross Carrying Amount							Accumulated Depreciaton/Impairment						Net Carrying Amount
		As at April 1, 2023		Additon		Disposal		As at March 31, 2024	As at April 1, 2023	For the Year		Eliminaton on disposal	As at March 31, 2024		As at March 31, 2024	As at March 31, 2023
	Own Assets: Plant and Machinery Laboratory equipments Furniture & Fixtures Electrical Installatons Computers Ofce Equipments Building- Factory Motor Vehicles Leasehold Improvements	71.56 6.60 9.34 2.53 50.47 33.24 65.12 243.64 18.95		16.51 - 1.36 - 8.10 2.82 - 11.59 -		0.05 - - - 2.19 0.19 - - -		88.01 6.60 10.69 2.53 56.38 35.86 65.12 255.23 18.95	21.45 4.49 7.74 0.31 39.37 24.30 39.66 107.67 2.71	7.50 0.54 0.25 0.19 6.79 4.04 1.25 40.21 0.88		0.04 - - - 1.96 0.15 - - -	28.90 5.03 7.99 0.50 44.21 28.18 40.91 147.88 3.59		59.11 1.57 2.70 2.03 12.18 7.68 24.21 107.35 15.35	50.11 2.11 1.59 2.22 11.10 8.94 25.46 135.97 16.24
	Total(A)	501.45		40.37		2.44		539.38	247.71	61.65		2.16	307.20		232.18	253.73
	Right of use Asset	185.01		106.76		1.01		290.76	102.19	28.76		-	130.95		159.81	82.81
	Total(B)	185.01		106.76		1.01		290.76	102.19	28.76		-	130.95		159.81	82.81
	Total	686.45		147.13		3.45		830.14	349.90	90.41		2.16	438.16		391.99	336.55
	Other Intangible Assets	(Rs. in Lakhs unless otherwise stated)
	Partculars	Gross Carrying Amount							Accumulated Amortsaton/Impairment						Net Carrying Amount
		As at April 1, 2024	**Additon **		Disposal		As at March 31, 2025		As at April 1, 2024	For the Year		Eliminaton on disposal	As at March 31, 2025		As at March 31, 2025	As at March 31, 2024
	Sofware	51.18	3.41		-		54.59		31.01	8.64			- 39.65		14.94	20.17
	Total	51.18	3.41		-		54.59		31.01	8.64			- 39.65		14.94	20.17
	Partculars	Gross Carrying Amount							Accumulated Amortsaton/Impairment						Net Carrying Amount
		As at April 1, 2023	**Additon **		Disposal		As at March 31, 2024		As at April 1, 2023	For the Year		Eliminaton on disposal	As at March 31, 2024		As at March 31, 2024	As at March 31, 2023
	Sofware	46.30	4.88		-		51.18		19.76	11.25			- 31.01		20.17	26.55
	Total	46.30	4.88		-		51.18		19.76	11.25			- 31.01		20.17	26.55
	Notes: Range of remaining period of amortsaton of Intangible Assets is as below:
	Partculars	With in One year					2 to 5 years				Residual Value			Total WDV
	Sofware	2.42					9.84				2.68			14.94
	Total	2.42					9.84				2.68			14.94

~~115~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

2.03 Non-current Investments Partculars Investments in Equity Instruments (fully paid-up) Quoted Investment in other companies (Measured at fair value through proft and loss) (A) Investments in Mutual Fund (Measured at fair value through proft and loss) Unquoted (B) Total (A + B) Aggregate amount of quoted investments Aggregate market value of quoted investments Aggregate amount of unquoted investments 2.04 Loans Considered good - Unsecured Loans to employees Total 2.05 Other Financial Assets Security deposits Forward Contract - Asset Bank deposits with more than 12 months maturity Accrued Interest On Deposits with Bank Deposits with HDFC (As a Security,refer Note No. 4.02) Total 2.06 Deferred Tax Assets (net) Deductble temporary diferences Property,plant and equipment Carry forward Business Losses Other deductble temporary diferences Total Deferred Tax Assets in relaton to: Property,Plant and Equipment Others	2.03 Non-current Investments Partculars Investments in Equity Instruments (fully paid-up) Quoted Investment in other companies (Measured at fair value through proft and loss) (A) Investments in Mutual Fund (Measured at fair value through proft and loss) Unquoted (B) Total (A + B) Aggregate amount of quoted investments Aggregate market value of quoted investments Aggregate amount of unquoted investments 2.04 Loans Considered good - Unsecured Loans to employees Total 2.05 Other Financial Assets Security deposits Forward Contract - Asset Bank deposits with more than 12 months maturity Accrued Interest On Deposits with Bank Deposits with HDFC (As a Security,refer Note No. 4.02) Total 2.06 Deferred Tax Assets (net) Deductble temporary diferences Property,plant and equipment Carry forward Business Losses Other deductble temporary diferences Total Deferred Tax Assets in relaton to: Property,Plant and Equipment Others	2.03 Non-current Investments Partculars Investments in Equity Instruments (fully paid-up) Quoted Investment in other companies (Measured at fair value through proft and loss) (A) Investments in Mutual Fund (Measured at fair value through proft and loss) Unquoted (B) Total (A + B) Aggregate amount of quoted investments Aggregate market value of quoted investments Aggregate amount of unquoted investments 2.04 Loans Considered good - Unsecured Loans to employees Total 2.05 Other Financial Assets Security deposits Forward Contract - Asset Bank deposits with more than 12 months maturity Accrued Interest On Deposits with Bank Deposits with HDFC (As a Security,refer Note No. 4.02) Total 2.06 Deferred Tax Assets (net) Deductble temporary diferences Property,plant and equipment Carry forward Business Losses Other deductble temporary diferences Total Deferred Tax Assets in relaton to: Property,Plant and Equipment Others	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
	Partculars		As at March 31,
			2025			2024
			Qty		Amount	Qty	Amount
	Investments in Equity Instruments (fully paid-up) Quoted Investment in other companies (Measured at fair value through proft and loss) Investments in Mutual Fund (Measured at fair value through proft and loss) Unquoted Total (A + B)	(A) (B)	43,224 1,16,10,768		184.18 2,650.71	42,422 **88,01,633 **	179.29 2,071.85
					2,834.89		2,251.15
	Aggregate amount of quoted investments Aggregate market value of quoted investments Aggregate amount of unquoted investments			184.11 179.29 184.11 179.29 2,650.71 2,071.85
				Non- Current Current
				As at March 31, As at March 31,
				2025 2024 2025 2024
	Considered good - Unsecured Loans to employees Total			21.20 15.63 15.49 12.85
				21.20 15.63 15.49 12.85
	Other Financial Assets			Non- Current Current
				As at March 31, As at March 31,
				2025 2024 2025 2024
	Security deposits Forward Contract - Asset Bank deposits with more than 12 months maturity Accrued Interest On Deposits with Bank Deposits with HDFC (As a Security,refer Note No. 4.02) Total			12.32 11.26 - - - - 0.46 - 22.85 150.52 - - - - 2.63 3.23 0.52 - - -
				35.69 161.78 3.09 3.23
	Deferred Tax Assets (net)				As at March 31, 2025 2024
	Deductble temporary diferences Property,plant and equipment Carry forward Business Losses Other deductble temporary diferences Total Deferred Tax Assets in relaton to: Property,Plant and Equipment Others				57.21 4.28 - 25.91 (2.89) 38.33 54.32 68.52
			As at March 31, 2024		Recognized in Proft/(loss) account As at March 31, 2025
			4.28 52.93 57.21 64.24 (67.14) (2.89)
			68.52 (14.21) 54.32

~~116~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.07 Other Assets Prepaid expenses Insurance Claim Receivable Staf Advances Advance to suppliers Balances with Statutory Authorites: Income Tax (net of provisions) GST Receivable Others Other Receivables Employee Super Annuaton Scheme A/c - HDFC Employees GGCA trust a/c Other Advances Total 2.08 Inventories Raw Materials Property Development Finished Goods Stock in trade Work in progress Packing Material Stores and spares Total 2.09 Trade Receivables Trade receivables Considered good - Secured Trade receivables Considered good - Unsecured Trade receivables which have signifcant increase in Credit Risk Trade Receivable-Credit Impaired Total Less: Loss allowance for doubtul receivables Total	Other Assets	Non- Current Current	Non- Current Current
		As at March 31, As at March 31,
		2025 2024 2025 2024
	Prepaid expenses Insurance Claim Receivable Staf Advances Advance to suppliers Balances with Statutory Authorites: Income Tax (net of provisions) GST Receivable Others Other Receivables Employee Super Annuaton Scheme A/c - HDFC Employees GGCA trust a/c Other Advances Total	6.87 2.74 23.95 27.20 - - 0.42 - - - - 0.32 - - 0.58 - - - - 1.66 - - 43.87 83.07 - - 2.15 14.58 0.18 0.14 - - 0.10 0.11 - - 0.73 0.58 29.94 4.63
		7.88 3.57 100.91 131.46
			As at March 31,
			2025 2024
	Raw Materials Property Development Finished Goods Stock in trade Work in progress Packing Material Stores and spares Total		59.42 61.92 176.50 172.95 221.77 156.60 270.53 253.80 56.85 88.45 0.31 6.13 5.95 0.06
			791.32 739.92
			As at March 31,
			2025 2024
	Trade receivables Considered good - Secured Trade receivables Considered good - Unsecured Trade receivables which have signifcant increase in Credit Risk Trade Receivable-Credit Impaired Total Less: Loss allowance for doubtul receivables Total		- - 716.45 808.69 - - 2.69 1.87
			719.15 810.56 2.69 1.87
			716.46 808.69

~~117~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated) 2.09.1 Partculars Outstanding for following periods from due date of payment as on 31st March 2025 Less than 6 months including not due 6 Months 1 Years 1-2 Years 2-3 Years More than 3 Years Total Undisputed Trade Receivable-Considered good 712.24 4.21 - - - 716.45 Undisputed trade receivable-Signifcant increase in credit risk - - - - - - Undisputed Trade Receivable-Credit Impaired 0.11 0.12 - 2.46 - 2.69 Disputed Trade Receivable-Considered good - - - - - - Disputed trade receivable-Signifcant increase in credit risk - - - - - - Disputed Trade Receivable-Credit Impaired - - - - - - Total 712.35 4.33 - 2.46 - 719.15 Less : Allowance for doubtul debts - - - - - 2.69 Total 712.35 4.33 - 2.46 - 716.46 2.09.2 Partculars Outstanding for following periods from due date of payment as on 31st March 2024 Less than 6 months including not due 6 Months 1 Years 1-2 Years 2-3 Years More than 3 Years Total Undisputed Trade Receivable-Considered good 805.06 2.25 1.38 - - 808.69 Undisputed trade receivable-Signifcant increase in credit risk - - - - - - Undisputed Trade Receivable-Credit Impaired 0.71 0.04 1.12 - - 1.87 Disputed Trade Receivable-Considered good - - - - - - Disputed trade receivable-Signifcant increase in credit risk - - - - - - Disputed Trade Receivable-Credit Impaired - - - - - - Total 805.78 2.30 2.49 - - 810.56 Less : Allowance for doubtul debts 0.71 0.04 1.12 - - 1.87 Total 805.06 2.25 1.38 - - 808.69 2.10 Cash and Cash Equivalent As at March 31, 2025 2024 Balances with banks: On current accounts 218.39 353.75 Deposits with original maturity of less than 3 months 159.00 24.00 Total 377.39 377.75 2.11 Bank balances other than cash and cash equivalents As at March 31, 2025 2024 Deposits with original maturity for more than 3 months but less than 12 months 66.58 117.00 Unclaimed dividend accounts 15.22 10.51 Total 81.80 127.51 *Marked under lien in favour of banks		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
		Outstanding for following periods from due date of payment as on 31st March 2025
		Less than 6 months including not due 6 Months 1 Years 1-2 Years 2-3 Years More than 3 Years Total
	Undisputed Trade Receivable-Considered good Undisputed trade receivable-Signifcant increase in credit risk Undisputed Trade Receivable-Credit Impaired Disputed Trade Receivable-Considered good Disputed trade receivable-Signifcant increase in credit risk Disputed Trade Receivable-Credit Impaired Total Less : Allowance for doubtul debts Total	712.24 4.21 - - - 716.45 - - - - - - 0.11 0.12 - 2.46 - 2.69 - - - - - - - - - - - - - - - - - -
		712.35 4.33 - 2.46 - 719.15
		- - - - - 2.69
		712.35 4.33 - 2.46 - 716.46
		Outstanding for following periods from due date of payment as on 31st March 2024
		Less than 6 months including not due 6 Months 1 Years 1-2 Years 2-3 Years	More than 3 Years Total
	Undisputed Trade Receivable-Considered good Undisputed trade receivable-Signifcant increase in credit risk Undisputed Trade Receivable-Credit Impaired Disputed Trade Receivable-Considered good Disputed trade receivable-Signifcant increase in credit risk Disputed Trade Receivable-Credit Impaired Total Less : Allowance for doubtul debts Total	805.06 2.25 1.38 - - - - - 0.71 0.04 1.12 - - - - - - - - - - - - -	- 808.69 - - - 1.87 - - - - - -
		805.78 2.30 2.49 -	- 810.56
		0.71 0.04 1.12 -	- 1.87
		805.06 2.25 1.38 -	- 808.69
			As at March 31,
			2025 2024
	Balances with banks: On current accounts Deposits with original maturity of less than 3 months Total*		218.39 353.75 159.00 24.00
			377.39 377.75
			As at March 31,
			2025 2024
	Deposits with original maturity for more than 3 months but less than 12 months Unclaimed dividend accounts Total Marked under lien in favour of banks		66.58 117.00 15.22 10.51
			81.80 127.51

Lien marked on Fixed Deposit of Rs.57 Lakhs for obtaining forward contract exposure in respect of trade receivables, Rs. 1 Lakh for Bank Gurantee issued to Maharashtra Pollution Control Board & Rs.4 Lakhs for issuance of Corporate expense card.

~~118~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.12 Current Tax Assets (Net) Advance income tax (Net of Provisions) Total 2.13 Assets held for sale Plot of land at cost Less: cost of land sold Total	2.12 Current Tax Assets (Net) Advance income tax (Net of Provisions) Total 2.13 Assets held for sale Plot of land at cost Less: cost of land sold Total	As at March 31,
		2025 2024
	Advance income tax (Net of Provisions) Total	39.04 0.10
		39.04 0.10
		As at March 31,
		2025 2024
	Plot of land at cost Less: cost of land sold Total	6.39 6.39 - -
		6.39 6.39

The company has one plot of lease hold Land for which it has initiated action for disposal.Accordingly this asset is disclosed in “Asset Held for Sale “ and is valued at lower of carrying amount or fair value less costs to sell.

2.14 Share Capital Authorized share capital : 4,00,00,000 (March 31, 2024 : 4,00,00,000) Equity shares of Rs.10/- each 6,00,000 (March 31, 2024 : 6,00,000) 13.50% Redeemable cumulatve preference shares of Rs.100/- each 5,00,000 (March 31, 2024 : 5,00,000) Cumulatve convertble preference shares of Rs.100/- each Total authorised share capital Issued, Subscribed & Paid up Capital 4,04,045 (March 31, 2024 : 4,04,045) Equity shares of Rs.10/- each (fully paid up) Total issued, subscribed and fully paid-up share capital	2.14 Share Capital Authorized share capital : 4,00,00,000 (March 31, 2024 : 4,00,00,000) Equity shares of Rs.10/- each 6,00,000 (March 31, 2024 : 6,00,000) 13.50% Redeemable cumulatve preference shares of Rs.100/- each 5,00,000 (March 31, 2024 : 5,00,000) Cumulatve convertble preference shares of Rs.100/- each Total authorised share capital Issued, Subscribed & Paid up Capital 4,04,045 (March 31, 2024 : 4,04,045) Equity shares of Rs.10/- each (fully paid up) Total issued, subscribed and fully paid-up share capital	As at March 31,
		2025 2024
	Authorized share capital : 4,00,00,000 (March 31, 2024 : 4,00,00,000) Equity shares of Rs.10/- each 6,00,000 (March 31, 2024 : 6,00,000) 13.50% Redeemable cumulatve preference shares of Rs.100/- each 5,00,000 (March 31, 2024 : 5,00,000) Cumulatve convertble preference shares of Rs.100/- each Total authorised share capital Issued, Subscribed & Paid up Capital 4,04,045 (March 31, 2024 : 4,04,045) Equity shares of Rs.10/- each (fully paid up) Total issued, subscribed and fully paid-up share capital	4,000.00 4,000.00 600.00 600.00 500.00 500.00
		5,100.00 5,100.00
		40.40 40.40
		40.40 40.40

a. Reconciliation of shares outstanding as at the beginning and at the end of the reporting period:

Equity Shares	As at March 31,
	2025 2024
	No. of Shares Amount No. of Shares Amount
At the beginning of the period Movement during the year Outstanding at the end of the period	4,04,045 40.40 4,04,045 40.40 - - - -
	4,04,045 40.40 4,04,045 40.40

b. Rights, preference and restrictions attached to shares:

Equity Shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

~~119~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

c. Details of share holders holding more than 5% shares in the company	c. Details of share holders holding more than 5% shares in the company
Partculars		As at March 31,
		2025 2024
		No. of Shares % of holding No. of Shares % of holding
Equity shares of Rs. 10 each fully paid Name of the Shareholder Virsun Investments Private Limited Highclass Trading Private Limited Masuma Tradecorp Private Limited Parthiv T. Kilachand Nandish T. Kilachand d. Details of promoters shareholding in the Company:		77,069 19.07% 42,802 10.59% - 0.00% 24,842 6.15% 59,991 14.85% 59,991 14.85% 34,127 8.45% 34,127 8.45% 33,335 8.25% 33,335 8.25%
Name of the Shareholder
Equity shares of Rs. 10 each Parthiv T. Kilachand Nandish T. Kilachand Tanil R. Kilachand Nilima T. Kilachand Virsun Investments Pvt. Ltd Masuma Tradecorp Pvt. Ltd Highclass Trading Pvt. Ltd Ginners & Pressers Limited Delmar Trading Co. Pvt. Ltd	34,127 8.45 34,127 8.45 - 33,335 8.25 33,335 8.25 - 1,938 0.47 1,938 0.47 - 1,013 0.25 1,013 0.25 - 77,069 19.07 42,802 10.59 8.48 59,991 14.85 59,991 14.85 - - - 24,842 6.15 (6.15) 2,996 0.74 2,996 0.74 - - - 9,425 2.33 (2.33)

Name of the Shareholder	As at March 31, % change during the year 2024 2023 No. of Shares % of holding No. of Shares % of holding
Equity shares of Rs. 10 each Parthiv T. Kilachand Nandish T. Kilachand Tanil R. Kilachand Nilima T. Kilachand Virsun Investments Pvt. Ltd Masuma Tradecorp Pvt. Ltd Highclass Trading Pvt. Ltd Ginners & Pressers Limited Delmar Trading Co. Pvt. Ltd	34,127 8.45 33,127 8.20 0.25 33,335 8.25 32,335 8.00 0.25 1,938 0.47 1,938 0.47 - 1,013 0.25 1,013 0.25 - 42,802 10.59 42,802 10.59 - 59,991 14.85 59,991 14.85 - 24,842 6.15 24,842 6.15 - 2,996 0.74 4,996 1.23 (0.50) 9,425 2.33 9,425 2.33 -

~~120~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.15 Other Equity General reserve Retained earnings Capital reserve Securites Premium Capital Redempton reserve Total	2.15 Other Equity General reserve Retained earnings Capital reserve Securites Premium Capital Redempton reserve Total	As at March 31,
		2025 2024
	General reserve Retained earnings Capital reserve Securites Premium Capital Redempton reserve Total	278.22 278.22 2,108.07 1,788.22 539.37 539.37 1,424.37 1,424.37 50.00 50.00
		4,400.02 4,080.17

Description of the nature and purpose of each reserve within equity is as follows:

(a) General Reserve:

Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013.

(b) Retained Earnings :

• Retained earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividend and adjustments on account of transition to Ind AS.

(c) Securities Premium :

Securities premium reserve is credited when shares are issued at premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

(d) Capital Redemption Reserve :

The Capital Redemption Reserve is created on redemption of 13.5% 50,000 Redeemable Cumulative Preference Shares of Rs.100/- in the Financial Year 2007-2008 pursuant to Section 80 of the Companies Act, 1956.

2.16 Other current fnancial liabilites Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	2.16 Other current fnancial liabilites Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	Current
		As at March 31,
		2025 2024
	Forward contract - Liability Payables for expenses Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Unpaid dividend Total	- 2.36 43.71 26.91 16.06 40.95 15.22 10.51
		74.99 80.73

2.17 Provisions Employee benefts Compensated Absences Provision for Bonus Gratuity payable (Funded) Total	2.17 Provisions Employee benefts Compensated Absences Provision for Bonus Gratuity payable (Funded) Total	Non-Current Current
		As at March 31, As at March 31,
		2025 2024 2025 2024
	Employee benefts Compensated Absences Provision for Bonus Gratuity payable (Funded) Total	30.40 27.38 18.84 19.10 - - 6.20 5.21 12.04 - 10.61 -
		42.44 27.38 35.65 24.31

~~121~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

2.18 2.18.1 2.18.2 2.19 **3.01 **	Trade Payables	Trade Payables	As at March 31,	As at March 31,	As at March 31,	As at March 31,
			2025 2024
	Trade Payables Total outstanding dues of Micro & Small Enterprises Other than Micro & Small Enterprises Total		8.88 16.49 40.27 125.49
			49.15 141.98
	Partculars	As at March 31, 2025
		Outstanding for following periods from due date of payment
		Not Due Less than 1 year 1-2 years 2-3 years More than 3 years Total
	MSME Others Disputed dues - MSME Disputed dues - others Total Partculars	8.88 - - - - 8.88 40.27 - - - - 40.27 - - - - - - - - - - - -
		49.15 - - - - 49.15
		As at March 31, 2024
		Outstanding for following periods from due date of payment
		Not Due Less than 1 year 1-2 years 2-3 years			More than 3 years Total
	MSME Others Disputed dues - MSME Disputed dues - others Total	16.49 - - 108.51 16.98 - - - - - - -		- - - -	- 16.49 - 125.49 - - - -
		125.00 16.98 -		-	- 141.98
	Other Current Liabilites				Current
					As at March 31,
					2025 2024
	Gratuity (Funded) Leave travel allowance payable Other Payables Provision for expense Compensated absences (Funded) Statutory Payables Bonus Payable Duty drawback Total				66.29 91.44 13.80 17.46 0.50 - 12.87 - 11.06 7.45 33.37 22.85 - 15.50 2.36 2.43
					140.25 157.13
	Revenue From Operatons			For The Year Ended March 31,
				2025		2024
	Revenue from operatons Sale of products (Net sales) Other operatng revenue Exchange gain on foreign currency Duty drawback received Others Export Incentves Total			4,083.00 35.33 22.25 0.30 24.54 4,165.42		5,261.39 49.25 33.20 0.89 41.95
						5,386.68

~~122~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

3.02 3.03 3.04 **3.05 **		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
	Other Income		For The Year Ended March 31,
			2025	2024
	Interest Income Interest on Fixed Deposit Others Fair value measurement of Investments measured at FVTPL Rent Income for commercial space Dividend Income Gain on sale of Investments(net) Gain on sale of Property, Plant and Equipment (net) Other non- operatng income Amount not payable writen back (net) Other sundry Income Other non - operatng income Total		28.17 3.14 183.72 5.78 1.59 0.38 1.43 0.11 0.07 0.49 224.88	15.63 2.85 169.68 5.78 1.32 - 0.01 0.01 0.05 0.86
				196.19
	Cost of raw materials consumed		For The Year Ended March 31,
			2025	2024
	Opening Stock Purchases Less: Loss by fre Less: Closing stock Total		61.91 1,209.98 (0.42) (59.42) 1,212.05	55.08 1,839.11 - (61.91)
				1,832.28
	Purchases of Stock-in-trade		For The Year Ended March 31,
			2025	2024
	Trading Goods Total		1,129.32 1,129.32	1,049.76
				1,049.76
	Changes in inventories of Finished goods, WIP and stock-in-trade		For The Year Ended March 31,
			2025	2024
	Finished Goods Opening Stock Less: Closing Work in process Opening Stock Less: Closing Stock Trading Goods Opening Stock Less: Closing Stock Property Development Opening Stock Less: Closing Stock Total		156.63 (221.76) (65.14) 88.44 (56.85) 31.59 253.80 (270.53) (16.73) 172.95 (176.50) (3.55) (53.83)	175.45 (156.63)
				18.82
				74.39 (88.44)
				(14.05)
				270.95 (253.80)
				17.15
				168.86 (172.95)
				(4.09)
				17.83

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

3.06 Employee Benefts Expense Salaries, wages & incentves Contributon to provident and other funds Expenditure related to compensated absences Staf welfare expenses Total 3.07 Finance Costs Interest expense on Lease Liability Total 3.08 Depreciaton and Amortzaton Expense Depreciaton of property, plant and equipment Depreciaton on Right of use Assets Amortzaton of Intangible assets Total 3.09 Other Expenses Selling & distributons expenses Legal and professional fees Rent Factory Expense Security service charges Motor car expenses Membership & subscripton Rates & taxes Property tax Telephone expenses General charges Printng & statonery expenses Conveyance & travelling expenses CSR Expense Electric Power, oil fuel and water charges Research and Development expenses Polluton Control Permission Expenses Postage & courier expenses Insurance charges Advertsement expenses Sundry Balance writen of Stores and Spares Write of Land development expenses ISO & certfcaton expenses Director sitng fees Commission to directors Selling & distributon expenses on sale of investments Director meetng expense		(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
			For The Year Ended March 31,
			2025	2024
	Salaries, wages & incentves Contributon to provident and other funds Expenditure related to compensated absences Staf welfare expenses Total		588.96 73.60 18.25 26.87 707.68	587.58 70.01 12.51 29.27
				699.38
			For The Year ended March 31,
			2025	2024
	Interest expense on Lease Liability Total		13.84 13.84	13.81
				13.81
			For The Year Ended March 31,
			2025	2024
	Depreciaton of property, plant and equipment Depreciaton on Right of use Assets Amortzaton of Intangible assets Total		61.95 31.10 8.64 101.69	62.97 28.76 9.94
				101.67
			For The Year Ended March 31,
			2025 2024
	Selling & distributons expenses Legal and professional fees Rent Factory Expense Security service charges Motor car expenses Membership & subscripton Rates & taxes Property tax Telephone expenses General charges Printng & statonery expenses Conveyance & travelling expenses CSR Expense Electric Power, oil fuel and water charges Research and Development expenses Polluton Control Permission Expenses Postage & courier expenses Insurance charges Advertsement expenses Sundry Balance writen of Stores and Spares Write of Land development expenses ISO & certfcaton expenses Director sitng fees Commission to directors Selling & distributon expenses on sale of investments Director meetng expense		119.26 130.95 63.55 87.71 11.90 12.26 5.07 6.36 11.88 10.67 33.37 31.84 17.94 14.57 5.02 5.08 3.77 4.10 7.88 6.36 3.38 4.76 7.63 7.24 15.79 14.13 7.00 2.38 10.85 11.28 0.07 0.85 1.20 0.62 0.72 1.22 12.64 12.18 3.02 1.76 0.51 - - 0.39 3.55 4.09 1.19 1.73 7.54 7.98 7.97 0.68 0.98 - - 0.05

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

ECL (Other) Expense 0.82 1.10 Donaton 0.11 - Bad debts 0.29 - Loss by Fire 0.56 - Interest to MSME vendors - 0.12 Loss on sale of Property, plant and equipment 0.02 0.17 Loss of goods in transit - 0.09 Miscellaneous expenses 21.84 23.20 Efuent Treatment and disposal charges 24.11 - Repair & Maintenance Computer 1.95 0.15 Machinery 0.09 0.14 Others 42.30 28.72 Packing Material, Stores & spares Opening Stock 6.13 Add : Purchase during the year 26.95 Less : Closing Stock (6.20) 26.88 43.57 Auditor's Remuneraton 4.75 4.75 Total 487.40 483.25 3.10 Tax expenses For The Year Ended March 31, 2025 2024 (a)Income tax expenses Current tax In respect of the current year 71.69 170.00 In respect of prior years 2.51 1.67 74.20 171.67 Deferred tax In respect of the current year 20.83 (36.17) 20.83 (36.17) (b)Income tax recognised in Other Comprehensive Income Remeasurements of the defned beneft plans 6.63 3.28 6.63 3.28 Total (a+b) 88.40 132.22 (c) Reconciliaton between the Statutory income tax rate applicable to the company and the efectve income tax rate is as follows: For The Year Ended March 31, 2025 2024 Net proft/(loss) before tax 479.22 955.14 Efectve Tax rate applicable to the company 25.17% 25.17% Tax amount at the enacted income tax rate 120.61 240.39 Add : Expenses disallowed 42.00 25.56 Less : Expenses allowed (133.51) (48.08) Tax relatng to long term capital gains 23.68 - Tax relatng to dividend income and other income 7.27 0.33 Deferred tax not created on current year loss - (79.33) Expenses allowed on carryforward business losses 27.97 - Other Items 0.38 (6.65) Income tax expense 88.40 132.22 (Rs. in Lakhs unless otherwise stated)	ECL (Other) Expense Donaton Bad debts Loss by Fire Interest to MSME vendors Loss on sale of Property, plant and equipment Loss of goods in transit Miscellaneous expenses Efuent Treatment and disposal charges Repair & Maintenance Computer Machinery Others Packing Material, Stores & spares Opening Stock Add : Purchase during the year Less : Closing Stock Auditor's Remuneraton Total	ECL (Other) Expense Donaton Bad debts Loss by Fire Interest to MSME vendors Loss on sale of Property, plant and equipment Loss of goods in transit Miscellaneous expenses Efuent Treatment and disposal charges Repair & Maintenance Computer Machinery Others Packing Material, Stores & spares Opening Stock Add : Purchase during the year Less : Closing Stock Auditor's Remuneraton Total	0.82 1.10 0.11 - 0.29 - 0.56 - - 0.12 0.02 0.17 - 0.09 21.84 23.20 24.11 - 1.95 0.15 0.09 0.14 42.30 28.72 6.13 26.95 (6.20) 26.88 43.57 4.75 4.75 487.40 483.25 (Rs. in Lakhs unless otherwise stated)	0.82 1.10 0.11 - 0.29 - 0.56 - - 0.12 0.02 0.17 - 0.09 21.84 23.20 24.11 - 1.95 0.15 0.09 0.14 42.30 28.72 6.13 26.95 (6.20) 26.88 43.57 4.75 4.75 487.40 483.25 (Rs. in Lakhs unless otherwise stated)	0.82 1.10 0.11 - 0.29 - 0.56 - - 0.12 0.02 0.17 - 0.09 21.84 23.20 24.11 - 1.95 0.15 0.09 0.14 42.30 28.72 6.13 26.95 (6.20) 26.88 43.57 4.75 4.75 487.40 483.25 (Rs. in Lakhs unless otherwise stated)	0.82 1.10 0.11 - 0.29 - 0.56 - - 0.12 0.02 0.17 - 0.09 21.84 23.20 24.11 - 1.95 0.15 0.09 0.14 42.30 28.72 6.13 26.95 (6.20) 26.88 43.57 4.75 4.75 487.40 483.25 (Rs. in Lakhs unless otherwise stated)
						483.25
					For The Year Ended March 31,
					2025	2024
	(a) (b)	Income tax expenses Current tax In respect of the current year In respect of prior years Deferred tax In respect of the current year Income tax recognised in Other Comprehensive Income Remeasurements of the defned beneft plans Total (a+b)			71.69 2.51 74.20 20.83 20.83 6.63 6.63 88.40	170.00 1.67
						171.67
						(36.17)
						(36.17)
						3.28
						3.28
						132.22
	(c)	Reconciliaton between the Statutory income tax rate applicable to the company and the efectve income tax rate is as follows:			For The Year Ended March 31,
					2025	2024
		Net proft/(loss) before tax Efectve Tax rate applicable to the company Tax amount at the enacted income tax rate Add : Expenses disallowed Less : Expenses allowed Tax relatng to long term capital gains Tax relatng to dividend income and other income Deferred tax not created on current year loss Expenses allowed on carryforward business losses Other Items Income tax expense			479.22 25.17% 120.61 42.00 (133.51) 23.68 7.27 - 27.97 0.38 88.40	955.14 25.17% 240.39 25.56 (48.08) - 0.33 (79.33) - (6.65)
						132.22

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

4.01	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
	Earnings Per Share (EPS)	As at March 31,
		2025 2024
	Basic earnings per share (Amount in Rs) : Atributable to equity holders of the Company 70.06 178.27 Diluted earnings per share (Amount in Rs) : Atributable to equity holders of the Company 70.06 178.27 Reconciliaton of earnings used in calculatng earnings per share : Basic earnings per share Proft atributable to equity holders of the Company used in calculatng basic earnings per share : 283.09 720.29 Diluted earnings per share Proft atributable to equity holders of the Company used in calculatng diluted earnings per share 283.09 720.29 Weighted average number of Equity shares used as the denominator in calculatng basic & diluted earnings per share 4,04,045 4,04,045 There are no instruments, including contngently issuable shares, that could potentally dilute basic earnings per share; hence, diluted earnings per share equals basic earnings per share.

	hence, diluted earnings per share equals basic earnings per share.
4.02	Contngent Liabilites	As at March	31,
		2025	2024
	1) Claims against the Group not acknowledged as debts:	27.08	27.08
	Relates to supplier of materials, employees and other claims. (No provision is made, as the Group is hopeful of successfully contestng the claims and as such does not expect any signifcant liability to Crystallise).

• 2) The Group has taken certain premises on sub-lease. The landlord, a Government Company issued a notice under the Public Premises (Eviction of Unauthorized Occupants) Act,1971 against the Group for eviction and has demanded damages and other charges, which are disputed by the Group. The proceedings in this connection are pending before the Estate officer. The Contingent liability in respect of damages, interest claimed by the Insurance Company cannot be quantified.

4.03 Employee benefts

1) Defned Contributon Plans:

The amounts of contribution to provident fund and ESIC recognized as expenses during the year is Rs. 44.71 Lakhs (March 31, 2024 : Rs.40.41 Lakhs) for the year ended March 31, 2025.

2) Defned Beneft Plans:

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees, as governed by the Payment of Gratuity Act, 1972 (Gratuity Act). The gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days’ salary for each completed year of service. Vesting occurs upon completion of Five (5) continuous years of service as governed by the Gratuity Act. The Present value of the defined benefit obligations and related current service cost were measured using the Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date. The Gratuity Plan is administered by “Polychem Limited Employees Group Gratuity Scheme” & “Life Insurance Corporation of India” that is legally seperated from the Company.

The company expect to pay Rs. 40,28,120 in contributions to defined benefit plans in financial year 2025-26.

~~126~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

The Group sponsors funded defined benefit plans for qualifying employee. The defined benefit plans are administered by separate fund that are legally separate fund from the entity. The board of the fund is responsible for the investment policy with regard to assets of the fund.

These plans typically expose the Group to Actuarial risks such as : investment risk, interest rate risk, longetivity risk and salary risk. No other post-retirement benefit are provided to the employees.

Investment Risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit. Currently the plan has investment with LIC of India.

Interest Risk A decrease in the interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan’s debt investments. Longevity Risk The present value of the defined benefit plan 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 plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

3) Principal assumptons used for the purpose of actuarial valuaton:

3) Principal assumptons used for the purpose of actuarial valuaton:
Partculars	Gratuity
	As at March 31,
	2025 2024
Discount rate Expected rate of salary increase Mortality Rate	6.79% 7.23% 6.00% 6.00% Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)

Discount rate 6.79% 7.23% Expected rate of salary increase 6.00% 6.00% Mortality Rate Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)	Discount rate 6.79% 7.23% Expected rate of salary increase 6.00% 6.00% Mortality Rate Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)	Discount rate 6.79% 7.23% Expected rate of salary increase 6.00% 6.00% Mortality Rate Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)	Discount rate 6.79% 7.23% Expected rate of salary increase 6.00% 6.00% Mortality Rate Indian Assured Lives Mortality (2012-14) Indian Assured Lives Mortality (2012-14)
4. (i) Amounts recognized in Statement of Proft and Loss in respect of defned beneft plans
Partculars		Gratuity
		For the year ended March, 31
		2025	2024
Service cost: Current service cost 8.34 Net Interest Cost 6.60 Components of defned benefts cost recognized in Statement of Proft and Loss 14.94 4. (ii) Amounts recognized in Other Comprehensive Income in respect of defned beneft plans			6.22 7.40
			13.62
Partculars		Gratuity
		For the year ended March, 31
		2025	2024
Remeasurement of net defned beneft liability Return on plan assets (excluding amount included in net interest expense) Net Actuarial (Gain)/Loss Components of defned benefts cost recognized in Other Comprehensive Income		0.15 26.21 26.36	(1.93) 14.95
			13.02

~~127~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
4. (iii) Amounts recognized in Balance Sheet in respect of defned beneft plans
Partculars		Gratuity
		As at March 31,
		2025	2024
Present Value of the Defned Beneft Obligatons Fair Value of Plan Assets Liability Recognized in the Balance Sheet 5. (i) Movements in present value of defned beneft obligaton		(5.95) 49.58 43.63	12.77 (2.19)
			10.58
Partculars		Gratuity
		As at March 31,
		2025	2024
Opening defned beneft obligatons Current service cost Interest cost Past Service cost Beneft paid from the fund Actuarial (gains) / losses on Defned Beneft Obligaton - Due to change in fnancial assumptons Actuarial (gains) / losses on Defned Beneft Obligaton - Due to experience Closing defned beneft obligaton 5. (ii) Reconciliaton		255.93 8.34 18.48 - (80.90) 4.21 22.00 228.08	219.63 6.22 16.47 - (1.34) 2.31 12.64
			255.93
Partculars		Gratuity
		As at March 31,
		2025	2024
Opening Net Liability Add: Employer Expenses (Expenses recognized in the statement of P/L account) Add: Transfer to OCI Less: Employers contributon Closing Net Liability 6. The category of plan assets as a percentage of total plan are as follows:		91.44 14.94 26.36 (43.80) 88.94	98.63 13.62 13.02 (33.84)
			91.44
Partculars		Gratuity
		As at March 31,
		2025 2024
Deposits with LIC of India		100% 100%

~~128~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

7. Sensitvity Analysis Below is the sensitivity analysis determined for significant actuarial assumption for determination of defined benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period. Key assumptions for determination of Defined Benefit Obligation are Discount Rate (i.e. Interest Rate) Salary Growth Rate and Employee Turnover Rate.

and Employee Turnover Rate.
Partculars	Gratuity
	As at March 31,
	2025 2024
Delta Efect of +1% Change in Rate of Discountng Delta Efect of -1% Change in Rate of Discountng Delta Efect of +1% Change in Rate of Salary Increase Delta Efect of -1% Change in Rate of Salary Increase Delta Efect of +1% Change in Rate of Employee Turnover Delta Efect of -1% Change in Rate of Employee Turnover	(9.44) (7.91) 10.76 8.99 10.73 9.01 (9.59) (8.07) 0.47 0.68 (0.54) (0.26)

4.04 Segment Informaton

Segment information for primary segment reporting (by business segments).

The Group has three business segments:

(i) Property Development (ii) Specialty Chemicals (iii) Manufacturing and trading in Capacitors
Sr. No. Partculars		As at March 31,
		2025	2024
1 Segment Revenue (net sale/income from each segment) (a) Property Development (b) Specialty Chemicals (c) Manufacturing and trading in Capacitors (d) Unallocated Total Less: Inter Segment Revenue Revenue from operatons 2 Segment Results Proft/Loss before tax and interest from each segment (a) Property Development (b) Specialty Chemicals (c) Manufacturing and trading in Capacitors (d) Unallocated Total Less: Other Un-allocable Expenditure (net of) Total Proft Before Tax		- 2,304.06 1,778.94 307.30 4,390.30 - 4,390.30 - 471.97 252.11 -	- 3,570.00 1,691.39 321.48
			5,582.87 -
			5,582.87
			- 1,040.66 184.33 -
		724.08 244.86 479.22	1,224.99 269.85
			955.14

~~129~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
(Rs. in Lakhs unless otherwise stated)
Sr. No. Partculars		As at March 31,
		2025	2024
3 Segment Asset (Segment assets - Segment liabilites) (a) Property Development (b) Specialty Chemicals (c) Manufacturing and trading in Capacitors (d) Unallocated Total 4 Segment Liabilites (a) Property Development (b) Specialty Chemicals (c) Manufacturing and trading in Capacitors (d) Unallocated Total		176.50 799.93 2,168.34 2,299.67 5444.45 - 179.55 145.92 678.56 1,004.03	172.95 1,079.44 2,070.10 1,798.22
			5,120.71
			- 201.49 249.33 549.32
			1,000.14

4.05 Dues to Micro and Small Enterprises

(d) Unallocated 678.56 549.32 Total 1,004.03 1,000.14 Dues to Micro and Small Enterprises	(d) Unallocated 678.56 549.32 Total 1,004.03 1,000.14 Dues to Micro and Small Enterprises
The details of amounts outstanding to Micro and Small Enterprises based on available informaton with the Company is as under:
Partculars	As at March 31,
	2025 2024
Principal amount remaining unpaid to any supplier as at the end of the accountng year 52.59 43.40 Interest due thereon remaining unpaid to any supplier as at the end of the accountng year - - The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day - 0.12 The amount of interest due and payable for the year - - The amount of interest accrued and remaining unpaid at the end of the accountng year - - The amount of further interest due and payable even in the succeeding year, untl such date when the interest dues as above are actually paid - -

4.06 Capital Management Risk management

The Group’s primary objectives in managing capital are to safeguard its ability to continue as a going concern while maximising shareholder value through an optimal capital structure. Capital is actively monitored and comprises total equity, including share capital, reserves and non-controlling interests. The Group maintains a conservative capital structure with minimal debt exposure, currently limited only to lease liabilities under Ind AS 116.

For the purpose of the Group’s capital management, capital includes capital and all other equity reserves. In order to maintain or achieve a capital structure that maximizes the shareholder value, the Group allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans. As at March 31, 2025, the Group has only one class of equity shares and has no borrowings other than lease liabilities. Hence, there are no externally imposed capital requirements.

The table below presents the key components of the Group’s capital structure:

Component	As at March 31,
	2025 2024
Total Equity Lease Liabilites Net Debt/Equity Rato	4,959.76 4,525.70 142.21 163.48 0.03 0.04

The Group maintains a strong equity base with a negligible debt component, reflected in the low net debt-to-equity ratio of 0.03 as on March 31, 2025 (as on March 31, 2024: 0.04).

~~130~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Dividend Distribution:

Dividend Distributon:
The Group’s dividend policy balances shareholder returns with the need to retain earnings dividends were declared during the reportng periods:	for business growth. The following
Partculars	As at March 31,
	2025 2024
Dividends Paid Proposed Dividend*	121.21 80.81 80.81 121.21

*Pending shareholder approval at the forthcoming Annual General Meeting

The Board has recommended a dividend of ₹20 per share (200% of face value of Rs. 10/- each) for FY 2024-25 (2023-24: ₹30 per share or 300% of face value of Rs. 10/- each). Dividend declarations consider factors including profitability, retained earnings, liquidity position and future capital requirements.

The Group’s capital management approach ensures compliance with statutory requirements while maintaining sufficient resources to support ongoing operations and strategic initiatives. Regular reviews are conducted to assess the adequacy and efficiency of the capital structure in light of changing business needs and market conditions.

4.07 Financial Instruments

(i) Methods & assumptons used to estmate the fair values

• The fair values of the financial assets and liabilities are 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.

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

• (a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other bank balances, deposits, loans to employees, trade payables, other financial liabilities and cash and cash equivalents are considered to be the same as their fair values.

• (b) The fair values for long term security deposits given and remaining non current financial assets were calculated based on cash flows discounted using a current rate at 9%. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

• (c) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of fnancial instruments

• The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and Level 3: inputs which are not based on observable market data

Level 3: inputs which are not based on observable market data
Partculars	**As at March 31, 2025 **		As at March 31, 2024
	Carrying values	Fair value	Carrying values	Fair value
Financial assets Measured at amortzed cost Trade receivables Loans Cash and Bank balances Other fnancial assets Total (A)	716.46 36.68 459.19 38.33	716.46 36.68 459.19 38.33	808.69 28.48 505.26 165.01	808.69 28.48 505.26 165.01
	1,250.66	1,250.66	1,507.44	1,507.44

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POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

			(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
Measured at fair value through proft or loss Investment in equity instruments of other companies Investment in mutual funds Forward contract asset Total (B) Total Financial assets (A+B)			184.18 2,650.71 0.46		184.18 2,650.71 0.46		179.29 2,071.85 -	179.29 2,071.85 -
			2835.35		2835.35		2,251.14	2,251.14
			4086.01		4086.01		3,758.58	3,758.58
Financial liabilites Measured at amortzed cost Trade payables Other fnancial liabilites Lease Liability Total (A) Measurement at fair value through proft or loss Forward contract liability Total (B)			49.15 74.99 142.21		49.15 74.99 142.21		141.98 78.37 163.48	141.98 78.37 163.48
			266.35		266.35		383.83	383.83
			-		-		2.36	2.36
			-		-		2.36	2.36
Total Financial liabilites (A+B)			266.35		266.35		386.19	386.19
Level wise disclosure of fnancial instruments
Partculars	As at March 31,					Valuaton techniques and key inputs
Investment in mutual funds Forward contracts - Assets Forward contracts-Liability	2,650.71 0.46 -	2,071.85 - 2.36		2 2 2		Net Asset Value Quotes from banks or dealers Quotes from banks or dealers

4.08 Financial Risk Management

The Group’s financial risk management is an integral part of how to plan and execute its business strategies. The Group’s financial risk management policy is set by the Board of Directors. The details of different types of risk and management policy to address these risks are listed below:

The Group’s activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimize any adverse effects on the financial performance of the Group, it uses various instruments and follows policies set up by the Board of Directors / Management.

(i) Credit Risk

Credit risk arises from the possibility that counter party will cause financial loss to the Group by failing to discharge its obligation as agreed.

Credit risks from balances with banks are managed in accordance with the Group policy. For derivative and financial instruments, the Group attempts to limit the credit risk by only dealing with reputable banks having high credit-ratings assigned by credit-rating agencies.

Based on the industry practices and business environment in which the Group operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.

Table showing age of gross trade receivables and movement in expected credit loss allowance:

As at March 31, 2025	0-90 Days	**91-180 Days **	181-270 Days	> 270 days	Total
Gross Carrying amount	699.55	17.14	-	2.46	719.15
Expected Credit Rate	0.01%	0.35%	-	100.00%	0.00%
Expected Credit Loss	0.05	0.06	0.12	2.46	2.69
Carrying Amount of Trade Receivable (Net)	699.50	17.08	(0.12)	-	716.46

~~132~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

TES	TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025	TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
	(Rs. in Lakhs unless otherwise stated)
	As at March 31, 2024 0-90 Days 91-180 Days 181-270 Days > 270 days Total
	Gross Carrying amount 805.76 2.24 0.06 2.50 810.56 Expected Credit Rate 0.09% 0.00% 66.67% 44.80% 0.23% Expected Credit Loss 0.71 - 0.04 1.12 1.87 Carrying Amount of Trade Receivable (Net) 805.05 2.24 0.02 1.38 808.69
	Movement in the expected credit allowance	Amount
	As at April 1, 2023 Provided during the year As at March 31, 2024 Provided during the year As at March 31, 2025	0.77 1.10
		1.87
		0.82
		2.69

(ii) Liquidity Risk

Liquidity risk is risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Group’s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Group has consistently generated sufficient cash flows from its operations and believes that these cash flows along with its current cash and cash equivalents and funding arrangements are sufficient to meet its financial obligations as and when they fall due. Accordingly, liquidity risk is perceived to be low.

Maturites of fnancial liabilites

The table below provides details regarding the remaining contractual maturities of financial liabilities as at the reporting date:

Maturites of fnancial liabilites The table below provides details regarding the remaining contractual maturites of fnancial liabilites as at the reportng date:	Maturites of fnancial liabilites The table below provides details regarding the remaining contractual maturites of fnancial liabilites as at the reportng date:	Maturites of fnancial liabilites The table below provides details regarding the remaining contractual maturites of fnancial liabilites as at the reportng date:	Maturites of fnancial liabilites The table below provides details regarding the remaining contractual maturites of fnancial liabilites as at the reportng date:
(Rs. in Lakhs unless otherwise stated)
As at March 31, 2025	Not due and less than 1 year	1 to 5 year	Total
Non-Derivatves Trade payables Other Financial Liabilites Lease Liability	49.15 74.99 25.24	- - 116.97	49.15 74.99 142.21
As at March 31, 2024	Not due and less than 1 year	1 to 5 year	Total
Non-Derivatves Trade payables Other Financial Liabilites Lease Liability	141.98 80.73 21.48	- - 142.00	141.98 80.73 163.48

(iii) 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. The Group is exposed in the ordinary course of business to risks related to changes in foreign currency exchange rate and interest rate.

Market Risk – Foreign Exchange

Foreign currency risk is that risk in which the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group operates internationally and a portion of its business is transacted in several currencies and therefore the Group is exposed to foreign exchange risk through its overseas sales in various foreign currencies. The Group hedges the receivables by forming view after discussion with Forex Consultant and as per polices set by Management.

The carrying amount of the Group’s foreign currency denominated monetary assets and liabilities as at the end of the reporting period is as follows:

~~133~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

	Foreign currency exposure
	Currencies	Liabilites		Assets
		As at March 31, 2025	As at March 31, 2024	As at March 31, 2025	As at March 31, 2024
	EURO USD	- -	- -	2.41 1.45	0.24 5.48
	Foreign currency exposure as at March 31, 2025		GBP	Euro	USD
	Assets Trade receivables Forward contracts - Assets		- -	2.41 -	1.47 (0.02)
	Foreign currency exposure as at March 31, 2024		GBP	Euro	USD
	Assets Trade receivables Forward contracts - Assets		- -	0.23 0.01	5.41 0.07

Details of Unhedged Foreign Currency Exposure is as under:-	Details of Unhedged Foreign Currency Exposure is as under:-
Currency	Nature	**As at March 31, 2025 **		As at March 31, 2024
		Amount in Foreign Currency	Amount in INR	Amount in Foreign Currency	Amount in INR
EURO USD	Asset - Export Receivables Asset-Export Receivables	0.93 1.22	85.86 104.14	0.00 0.69	0.07 57.29

Foreign currency sensitivity

1 % increase or decrease in foreign exchange rates will have the following impact on loss before tax and on other components of equity.

1 % increase or decrease components of equity.	in foreign exchange rates will have the following impact on loss before tax and on other	in foreign exchange rates will have the following impact on loss before tax and on other	in foreign exchange rates will have the following impact on loss before tax and on other	in foreign exchange rates will have the following impact on loss before tax and on other
Partculars	Impact on proft/(loss) before tax and equity: Increase/(Decrease)
	**As at March 31, 2025 **	**As at March 31, 2024 **	**As at March 31, 2025 **	As at March 31, 2024
	1 % Increase	1 % Increase	1 % Decrease	1 % Decrease
EURO USD	0.86 1.04	0.00 0.57	(0.86) (1.04)	(0.00) (0.57)

Market risk - price risk:

The Group is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the future market values of these investments. At March 31, 2025, the investments in mutual funds is Rs. 2650.71 Lakhs ( March 31, 2024 : Rs.2071.85 Lakhs).These are exposed to price risk. In order to minimise price risk arising from investments in mutual funds, the Group predominately invests in those mutual funds which have higher exposure to high quality debt instruments with adequate liquidity & no demonstrated track record of price volatility.

0.10% increase or decrease in prices will have the following impact on profit/loss before tax and on other components of equity.

	Impact on Proft: Increase/(Decrease)	Impact on Proft: Increase/(Decrease)	Impact on equity: Increase/(Decrease)	Impact on equity: Increase/(Decrease)
	**As at March 31, 2025 **	**As at March 31, 2024 **	**As at March 31, 2025 **	As at March 31, 2024
Price - increase by 0.10% Price-decrease by 0.10%	1.60	1.10	1.60	1.10
	(1.60)	(1.10)	(1.60)	(1.10)

~~134~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

4.09	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40	Related Party Transactons (a) Names of related partes and descripton of relatonship Nature of Relatonship Name of Related Partes i) Key managerial personnel T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer ii) Enttes where the key managerial personnel have signifcant infuence/control Ginners & Pressers Limited Tulsi Global Logistcs Private Limited (b) Details of Transactons: Partculars Key Managerial personnel Enttes where the key managerial personnel have signifcant infuence/control Total Amount 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Expenses Rent Ginners & Pressers Limited - - 9.67 9.67 9.67 9.67 Tulsi Global Logistcs Private Limited - - (5.78) (5.78) (5.78) (5.78) Electricity charges Ginners & Pressers Limited - - 2.57 2.50 2.57 2.50 Remuneraton* T. R. Kilachand 28.41 20.62 - - 28.41 20.62 P. T. Kilachand 57.55 50.22 - - 57.55 50.22 A. H. Mehta 28.33 77.39 - - 28.33 77.39 K. V. Panchasara 33.42 25.95 - - 33.42 25.95 D. V. Chauhan 11.92 10.40 - - 11.92 10.40
	(a) **(b) **
		Nature of Relatonship	Name of Related Partes
		i) Key managerial personnel	T. R. Kilachand - Non Executve Chairman P. T. Kilachand - Managing Director A. H. Mehta - Dy. Managing Director (up to 19th June, 2024) N. T. Kilachand - Non Executve Director V. V. Sahasrabudhe - Independent Non Executve Director (up to 4th August, 2024) C. R. Desai - Independent Non Executve Director (up to 4th August, 2024) N. S. Mehendale - Independent Non Executve Director (up to 24th March, 2025) Y. S. Mathur - Independent Non Executve Director (up to 30th March, 2025) A. A. Dalal - Independent Non Executve Director -w.e.f 1st August, 2024 S. A. Jhaveri - Independent Non Executve Director w.e.f. 25th March ,2025 R. P. Vahi - Independent Non Executve Director w.e.f. 31st March, 2025 K. V. Panchasara - Chief Financial Ofcer D.V. Chauhan - CompanySecretaryand Compliance Ofcer
		ii) Enttes where the key managerial personnel have signifcant infuence/control	Ginners & Pressers Limited Tulsi Global Logistcs Private Limited
		Details of Transactons:
		Partculars		Key Managerial personnel		Enttes where the key managerial personnel have signifcant infuence/control		Total Amount
				2024-2025	2023-2024	2024-2025	2023-2024	2024-2025	2023-2024
		Expenses Rent Ginners & Pressers Limited Tulsi Global Logistcs Private Limited Electricity charges Ginners & Pressers Limited Remuneraton* T. R. Kilachand P. T. Kilachand A. H. Mehta K. V. Panchasara D. V. Chauhan		- - - 28.41 57.55 28.33 33.42 11.92	- - - 20.62 50.22 77.39 25.95 10.40	9.67 (5.78) 2.57 - - - - -	9.67 (5.78) 2.50 - - - - -	9.67 (5.78) 2.57 28.41 57.55 28.33 33.42 11.92	9.67 (5.78) 2.50 20.62 50.22 77.39 25.95 10.40

~~135~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

**(b) **	Details of Transactons:
	Partculars	Key Managerial personnel		Enttes where the key managerial personnel have signifcant infuence/control		Total Amount
		2024-2025	2023-2024	2024-2025	2023-2024	2024-2025	2023-2024
	Directors sitng fees P. T. Kilachand T. R. Kilachand N. T. Kilachand C. R.Desai N. S. Mehendale V. V. Sahasrabudhe A. A. Dalal Y. S. Mathur Directors commission P. T. Kilachand T. R. Kilachand N. T. Kilachand C. R.Desai N. S. Mehendale V. V. Sahasrabudhe Y. S. Mathur Total expenses payable	0.48 0.60 0.48 0.34 1.00 0.34 0.66 1.00 0.33 1.11 1.11 1.11 1.11 1.11 1.11	0.60 0.48 0.48 0.88 0.88 0.88 - 0.88 0.17 - - - - - -	- - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	0.48 0.60 0.48 0.34 1.00 0.34 0.66 1.00 0.33 1.11 1.11 1.11 1.11 1.11 1.11	0.60 0.48 0.48 0.88 0.88 0.88 - 0.88 0.17 - - - - - -
		171.52	189.83	6.46	6.39	177.98	196.21
	Reimbursement/(Recovery) of expenses Tulsi Global Logistcs Private Limited Total reimbursement	-	-	-	(1.93)	-	(1.93)
		-	-	-	(1.93)	-	(1.93)

*The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Group as a whole and also excludes contribution to provident fund and superannuation fund.

4.10 Proposed Dividend

A dividend of Rs.20/- i.e 200% of the face value of Rs.10/- each per equity share (Previous Year - Rs.30/- 300% of the face value of Rs.10/- each) has been recommended by the Board of Directors of holding company, which is subject to the approval of the shareholders.

4.11 Unpaid Dividend

Unpaid Dividend
Partculars	Year	AGM Date	Amount
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	23-24	29-Aug-24	5.77
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	22-23	29-Aug-23	3.10
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	21-22	29-Aug-22	1.14
Unpaid dividend amount in the unpaid dividend account with HDFC Bank Ltd.as on :	19-20	11-Sep-20	4.34
Unpaid dividend amount in the unpaid dividend account with Yes Bank Ltd.as on :	18-19	02-Aug-19	0.87

There are no amounts due for payment to the Investor Education and Protection fund under Section 125 as on March 31, 2025.

4.12 Revenue from contracts with customers

Disaggregaton of Revenue

Management conclude that disaggregation of revenue disclosed in Ind AS 108 meets the disclosure criteria of Ind AS 115 and segment revenue is measured on the same basis as required by Ind AS 115, hence separate disclosures as per Ind AS 115 is not required.

~~136~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

Contract Balances Trade receivable is presented net of impairment in the Balance Sheet.

Contract Balances Trade receivable is presented net of impairment in the Balance Sheet.	Contract Balances Trade receivable is presented net of impairment in the Balance Sheet.	Contract Balances Trade receivable is presented net of impairment in the Balance Sheet.
The following table provides informaton about receivables, contract assets and contract liabilites for the contracts with the customers.
Partculars	As at March 31, 2025	As at March 31, 2024
Trade receivables	716.46	808.69

There is no significant changes in the contract assets and the contract liabilities balances during the period. Performance Obligatons and remaining Performance Obligatons

Applying the practical expedient as given in Ind AS 115, the Group has not disclosed the remaining performances as the performance obligations relates to contracts where the Group has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Group’s performance completed to date.

4.13 Export Benefts

RoDTEP Scheme

The company is also entitled to Remission of Duties and Taxes on Exported Products (RoDTEP) scheme w.e.f 1.1.2021 vide Public Notice No.19/2015-20 notified on 17.08.2021. Accordingly, the company has recognized benefits of Rs.24.54 lakhs in the year ended March 31, 2025 (March 31, 2024 - Rs. 41.95 Lakhs).

4.14 Leases

As Lessee

The Group’s lease asset primarily consist of leases for Office Space.

(i) The Amount recognised in the consolidated statement of profit and loss in respect of right of use asset and lease obligaton are as under:

Partculars	As at March 31, 2025	As at March 31, 2024
Depreciaton Interest expense on Lease Liability	31.10 13.84	28.76 13.81
(ii) Following are the changes in the carrying value of Lease Liability for the year ended March 31, 2025:
Partculars	Category of ROU
	Ofce Place	Total
Balance as on April 01, 2024 Finance cost accrued during the year Payment of lease liabilites Balance as at March 31, 2025 Current porton of Lease liability Non Current porton of Lease liability	163.48 13.84 35.13	163.48 13.84 35.13
	142.21	142.21
	25.24 116.97
	142.21

~~137~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)	(Rs. in Lakhs unless otherwise stated)
Following are the changes in the carrying value of Lease liability for the year ended March 31, 2024
Partculars	Category of ROU
	Ofce Place	Total
Balance as on April 01, 2023 Additons during the year Finance cost accrued during the year Payment of lease liabilites Balance as at March 31, 2024 Current porton of Lease liability Non Current porton of Lease liability	80.74 97.64 13.81 28.71	80.74 97.64 13.81 28.71
	163.48	163.48
	21.48 142.00
	163.48
(iii) Amounts recognised in the statement of cash fows
Partculars	Year ended March 31,
	2025	2024
Total cash outlow for leases	(31.56)	(28.71)

• (iv) Rental expense recorded for short-term leases was Rs.11.90 Lakhs for the year ended March 31,2025 (March 2024 - Rs.12.26 Lakhs).

• (v) The maturity analysis of lease liabilities are disclosed in Note no. 4.14 (ii). The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(vi) Certain lease agreements are subject to escalation clause and with extension of lease term options.

(vii) Future lease payments which will start from April 1, 2025 is Rs. NIL. (March, 2024: Rs. Nil)

As a Lessor

Rental Income on assets given on operating lease is Rs.5.78 Lakhs for the year ended March 2025 (March, 2024: Rs. 5.78 Lakhs).

4.15 Transactions with companies struck off under section 248 of the Companies Act,2013 or Section 560 of the Companies Act,1956:

Act,1956:
Name of struck of Company	Nature of transactons with struck-of Company	As at 31st March, 2025	As at 31st March, 2024	Relatonship with the Struck of company, if any, to be disclosed
Ushakant Investment & Consultant Pvt Ltd. Reserved Investor Pvt Ltd. Fort Propertes Ltd. Cyril Investment Consultant (P) Ltd. Alfachem agents Pvt Ltd. CMS Securites Ltd. Creatve Commercial Private Limited. Advance share trading Pvt.Ltd. Heta Investment Service Pvt Ltd. V.M. Fiscal Services Pvt. Ltd.	Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck of company Shares held by Struck ofcompany	100 70 2,010 60 20 20 20 10 10 10	100 70 2,010 60 20 20 20 10 10 10	Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company Shareholder Company

~~138~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	4.16 Disclosure in terms of Schedule III to the Companies Act, 2013 March 31, 2025: Name of the entty Net Assets i.e. Total Assets minus Total Liabilites Share in Proft or loss Share in other comprehensive income Share in total comprehensive income As % of consolidated net assets Amount (Rs.) As % of consolidated proft or (loss) Amount (Rs.) As % of consolidated other comprehensive income Amount (Rs.) As % of consolidated total comprehensive income Amount (Rs.) Parent Polychem Limited 57.88% 2,870.70 44.17% 169.70 34.89% (6.89) 44.67% 162.82 Subsidiary Gujarat Poly Electronics Limited 31.65% 1,569.72 29.51% 113.39 34.09% (6.73) 29.27% 106.66 Non Controlling Interest 10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 Total 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46
	March 31, 2025:
	Name of the entty	Net Assets i.e. Total Assets minus Total Liabilites		Share in Proft or loss		Share in other comprehensive income		Share in total comprehensive income
		As % of consolidated net assets	Amount (Rs.)	As % of consolidated proft or (loss)	Amount (Rs.)	As % of consolidated other comprehensive income	Amount (Rs.)	As % of consolidated total comprehensive income	Amount (Rs.)
	Parent Polychem Limited Subsidiary Gujarat Poly Electronics Limited Non Controlling Interest	57.88% 31.65% 10.47%	2,870.70 1,569.72 519.34	44.17% 29.51% 26.31%	169.70 113.39 101.10	34.89% 34.09% 31.02%	(6.89) (6.73) (6.12)	44.67% 29.27% 26.06%	162.82 106.66 94.97
	Total	**100% **	4,959.76	**100% **	384.19	**100% **	(19.73)	**100% **	364.46

Non Controlling Interest Total	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46	10.47% 519.34 26.31% 101.10 31.02% (6.12) 26.06% 94.97 100% 4,959.76 100% 384.19 100% (19.73) 100% 364.46
March 31, 2024:
Name of the entty	Net Assets i.e. Total Assets minus Total Liabilites		Share in Proft or loss		Share in other comprehensive income		Share in total comprehensive income
	As % of consolidated net assets	Amount (Rs.)	As % of consolidated proft or (loss)	Amount (Rs.)	As % of consolidated other comprehensive income	Amount (Rs.)	As % of consolidated total comprehensive income	Amount (Rs.)
Parent Polychem Limited Subsidiary Gujarat Poly Electronics Limited Non Controlling Interest	58.29% 32.75% 8.95%	2,638.25 1,482.32 405.13	73.65% 14.22% 12.12%	603.70 116.59 99.35	59.28% 22.00% 18.72%	(5.78) (2.15) (1.83)	73.83% 14.13% 12.04%	597.91 114.44 97.52
Total	**100% **	4,525.70	**100% **	819.63	100%	(9.76)	**100% **	809.88

• 4.17 Additional Regulatory Information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

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

• (b) 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.

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

• (d) 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:

• i. 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

• ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

• (e) 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:

• i. 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

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

~~139~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

(Rs. in Lakhs unless otherwise stated)

• (f) The Company has not entered 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.

• (g) The Company has no borrowings from banks and financial institutions on the basis of security of current assets.

• (h) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any government authority.

• (i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

• (j) The Company has not entered into any scheme of arragment which has an accounting impact on current or previous financial year.

• 4.18 Supplementary statutory information required to be given pursuant to schedule V of Regulation 34(3) and 53(f) of the SEBI (Listing Obligation & Disclosure Requirement) Regulations, 2015.

The company has complied with the requirements to the extent applicable, which forms part of annual report.

• 4.19 The provisions of the Companies Act, 2013 and rules made thereunder requires that the Company uses only such accounting software for maintaining its books of account which has a feature of recording audit trail for each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled or tampered with effect from April 1, 2023. Except for the Instance mentioned below, the Group has taken all necessary steps to comply with the audit trail functionality requirements since their effective date. In the case of Subsidiary company incorporated in India, the audit trail feature was not enabled to track direct changes at the database level.

Except for the periods of previous financial year where the audit trail feature was not enabled for subsidiary company at databases level, the Group has preserved the audit trail in accordance with statutory record retention requirements.

4.20 Recent Pronouncements

‘Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards which are applicable to the Company.

As per our report of even date

For and on behalf of the Board of Directors

For Nayan Parikh & Co. Chartered Accountants Firm Registration No.: 107023W Deepali N Shrigadi Partner Membership No.: 133304

Place: Mumbai Date: May 14, 2025

Parthiv T. Kilachand Managing Director (DIN No.: 00005516) Nandish T. Kilachand Director (DIN No.:00005530) Kanan V. Panchasara Chief Financial Officer Deepali V. Chauhan Company Secretary & Compliance Officer

Place: Mumbai Date: May 14, 2025

~~140~~

POLYCHEM LIMITED

SIXTY - EIGHTH ANNUAL REPORT

Form AOC -1

(Pursuant to first proviso to sub-section (3) Section 129 of the Companies Act 2013) Statement containing salient features of the financial statements of subsidiary:

	(Pursuant to frst proviso to sub-secton (3) Secton 129 of the Companies Act 2013) Statement containing salient features of the fnancial statements of subsidiary:	(Pursuant to frst proviso to sub-secton (3) Secton 129 of the Companies Act 2013) Statement containing salient features of the fnancial statements of subsidiary:
Part A :	Subsidiary (Rs. in Lakhs unless otherwise stated)
**Sr. No. **	Name of the Subisidiary
I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17	Gujarat Poly Electronics Limited Latest audited Balance Sheet date The date since subsidiary was acquired Shares of Subsidiary - Number of shares - Amount of Investment (Rs. in Lakhs) - Extent of Holding % Reportng period for the subsidiary concerned, if diferent from the holding company’s reportng period Reportng currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries Equity Share Capital Other Equity Total Assets Total Liabilites Investments Revenue from Operatons Proft before taxaton Provision for taxaton (Including Deferred Tax) Proft afer taxaton Other Comprehensive Income Total Comprehensive Income Proposed Dividend	March 31, 2025 March 31, 2017 44,53,745 397.68 52.09% N.A. N.A. 855.00 273.07 2,255.49 1,127.42 1,067.01 1,779.24 252.11 37.63 214.48 (12.83) 201.65 NIL

For and on behalf of the Board of Directors

Parthiv T. Kilachand Nandish T. Kilachand Kanan V. Panchasara Deepali V. Chauhan

Managing Director (DIN No.: 00005516) Director (DIN No.: 00005530) Chief Financial Officer Company Secretary & Compliance Officer

Place: Mumbai

Date: May 14, 2025

~~141~~

NOTES

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