Standalone Financial Statements of PCBL Chemical Limited for the FY 24-25

S.R. IlATLIBOi a Co. LLP

Chartered Accountants

To the Members of PCBL Chemical Limited (Formerly PCBL Limited) Report on the Audit of the Standalone Financial Statements Opinion

12th Floor, The Puby

29 Senapati Bapat Marq

Dadai ( West)

Mumbai - 400 028, India

Tel : +91 22 68 19 8000

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

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, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. 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 are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2025. 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. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.

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

Information Other than the 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 the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder's Information, but does not include the 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.

MUIU BAI

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

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, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 is 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.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

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.

  MUMBAI

  
  
  
  
  
  
  
  
  

  • 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 with reference to financial statements 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 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 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.

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 sub-section (11) of section 143 of the Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report, to the extent applicable, that:

   1. 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;

   2. 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;

      
      
      

      S.R &ATLIBOia Co. LLP

      Chartered Accountants

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

   4. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

   5. 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 is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164 (2) of the Act;

   6. With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;

   7. In our opinion, the managerial remuneration for the year ended March 31, 2025 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;

   8. 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:

      The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 11.1 and Note 23 to the standalone financial statements;
      
      

      1. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

      2. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

1. a) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 31 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("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 mariner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

   MUMBAI

   
   
   

   1. The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 31 to the standalone financial statements, no funds have been received by the Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,

      
      
      

      Chartered Accountants

      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; and

   2. Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

2. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Act.

vi. Based on our examination which included test checks, the Company has used accounting software for maintaining its 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 (refer Note 31 to the standalone financial statements). Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with in respect of accounting software. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention.

For S.R. Batliboi & Co. LLP Chartered Accountants

MU MBAI

ICAI Firm Registration Number: 301003E/E300005

per Jai Prakash Yadav Partner

Membership Number: 066943 UDIN: 25066943BMMJTH4407

Place of Signature: Mumbai Date: April 29, 2025

(i)(a)(A)

(i)(a)(B)

(i)(b)

(i)(d)

(i)(e)

(ii)(a)

(ii)(b)

The Company has maintained. proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

The Company has maintained proper records showing full particulars of intangible assets.

All the Property, Plant and Equipment have not been physically verified by the management during the year but there is a regular programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended March 31, 2025.

As represented to us by the management, there are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification by the management is reasonable and the coverage and procedure for such verification is appropriate. Discrepancies of 10% or more in aggregate for each class of inventory were not noticed.

As disclosed in note 10(a) to the financial statements, the Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during the year on the basis of security of current assets of the Company. Based on the records examined by us in the normal course of audit of the financial statements, the quarterly returns/statements filed by the Company with such banks are in agreement with the unaudited books of accounts of the Company. The Company do not have sanctioned working capital limits in excess of Rs. five crores in aggregate from financial institutions (other than Banks) during the year on the basis of security of current assets of the Company.

(iii)(a)

(iii)(b)

(iii)(d)

(iii)(e)

During the year the Company has provided loans or advances in the nature of loans, to Company or other parties as follows:

During the year the Company has not provided loans, advance in the nature of loans, stood guarantees or provided security to companies, firms, Limited Liability Partnerships or any other parties other than as mentioned above.

During the year the investments made, loans or advances in the nature of loans provided and the terms and conditions of the investments, loans and advances in the nature of loans to Companies are not prejudicial to the Companies interest. The Company has not provided security and given guarantee to companies, firms, Limited Liabillty Partnerships or any other parties during the year.

The Company has granted advances in the nature of loans during the year to companies where the schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular. The Company has not granted loans and advances in the nature of loans to firms, Limited Liability Partnerships or any other parties.

There are no amounts of loans and advances in the nature of loans granted to companies, firms, Limited Liability Partnerships or any other parties which are overdue for more than ninety days.

There were no loans or advances in the nature of loan granted to companies, firms, Limited Liability Partnerships or any other parties which was fallen due during the year, that have been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties. Accordingly, the requirement to report on clause 3(iii)(e) of the Order is not applicable to the Company.

The Company has not granted any advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other parties. As disclosed in note 4 (e) to the financial statements, the Company has granted loans repayable on demand to a Company. Of these following are the details of the aggregate amount of loans granted to promoters or related parties as defined in clause (76) of Section 2 of the Companies Act, 2013, as amended ("the Act"):

(iv) There are no loans, investments, guarantees, and security in respect of which provisions of sections 185 and 186 of the Act are applicable and accordingly, the requirement to report on clause 3(iv) of the Order is not applicable to the Company.

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The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits within the meaning of Sections 73 to 76 of the Act and the rules made

thereunder, to the extent applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.

(Vi)

(vii)(a)

(vii)(b)

We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act, related to the manufacture and sale of carbon black and sale of power, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

The Company is regular in depositing with appropriate authorities undisputed statutory dues including goods and services tax, provident fund, employees' state insurance, income-tax, duty of customs, duty of excise, value added tax, cess and other statutory dues applicable to it. According to the information and explanations given to us and based on audit procedures performed by us, no undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

The dues of goods and services tax, provident fund, employees' state insurance, income-tax, sales-tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues have not been deposited on account of any dispute, are as follows:

MUFJBAI

Chartered Accountants

(Vi ii)

(ix)(a)

(ix)(b)

((X)(C)

(ix)(d)

(ix)(e)

(x)(a)

(x)(b)

(xi)(a)

As represented to us by the management, the Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company.

The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

As represented to us by the management, the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Term loans were applied for the purpose for which the loans were obtained.

On an overall examination of the financial statements of the Company, no funds raised on short-term basis have been used for long-term purposes by the Company.

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 subsidiaries, associates or jolnt ventures.

The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the Company.

The Company has not raised any money during the year by way of initial public offer / further public offer (including debt instruments) and hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.

The Company has complied with provisions of sections 42 and 62 of the Act in respect of the preferential issue of warrants, which is convertible into equity shares. The funds raised by way of allotment money of warrants have been used for the purposes for which the funds were raised. The Company has not made any preferential allotment of shares/ fully or partially or optionally convertible debentures respectively during the year.

As represented to us by the management, no fraud/material fraud by the Company or no fraud/materla1 fraud on the Company has been noticed or reported during the year.

S.& I3ATLIBOI & ISO. LLP

Chartered Accountants

(xi)(b)

(XI)(C)

During the year, no report under sub-section (12) of section 143 of the Act has been filed by cost auditor/ secretarial auditor or by us in Form ADT - 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 201 4 with the Central Government.

As represented to us by the management, there are no whistle blower complaints received by the Company during the year.

(xii) The Company is not a nidhi Company as per the provisions of the Act. Therefore, the requirement to report on clause 3(xii)(a), (b) & (c) of the Order is not applicable to the Company.

Transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv)(a)

(xiv)(b)

(XV)

(xvi)(a)

(xvi)(b)

(XVI)(C)

(xvi)(d)

(xViii)

(XIX)

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The Company has an internal audit system commensurate with the size and nature of its business.

The internal audit reports of the Company issued till the date of the audit report, for the period under audit have been considered by us.

The Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company.

The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.

The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly, the requirement to report on clause (xvi)(b) of the Order is not applicable to the Company.

The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company.

As represented to us by the management, the Group has 4 Core Investment Companies as a part of the Group.

The Company has not incurred cash losses in the current financial year and immediate preceding financial year.

There has been no resignation of the statutory auditors during the year and accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the Company.

On the basis of the financial ratios disclosed in note 34 to the standalone financial statements, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the standalone 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.

S.it. BATLIBOI & Ca LLP

Chartered Accountants

(xx)(a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Act, in compliance with second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in note 20(a) to the standalone financial statements.

(xx)(b) All the amounts that are unspent under section (5) of section 135 of the Act, pursuant to any ongoing project, has been transferred to special account in compliance of with provisions of sub section (6) of section 135 of the said Act. This matter has been disclosed in note 20(a) to the standalone financial statements.

For S.R. Batliboi & Co. LLP Chartered Accountants

ICAI Firm Registration Number: 30I003E/E300005

per Jai Prakash Yadav Partner

Membership Number: 066943 UDIN: 25066943BMMJTH4407

Place of Signature: Mumbai Date: April 29, 2025

MUldBAl

S.R &ATLIBOi a Co. LLP

Chartered Accountants

We have audited the internal financial controls with reference to standalone financial statements of PCBL Chemical Limited (Formerly PCBL Limited) ("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.

The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting 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 issued by the Institute of Chartered Accountants of India ("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 the 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.

Our responsibility is to express an opinion on the Company's internal financial controls with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, as specified 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 these 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 with reference to these 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 these 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 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 is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls with reference to these standalone financial statements.

S.& âATLIBOI & CO. LLP

Chartered Accountants

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 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 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.

Because of the inherent limitations of internal financial controls with reference to standalone 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 control 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.

In our opinion, the Company has, in all material respects, adequate internal financial controls 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 control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For S.R. Batliboi & Co. LLP Chartered Accountants

" MUMBA

ICAI Firm Registration Number: 30I003E/E300005

per Jai Prakash Yadav Partner

Membership Number: 066943 UDIN: 25066943BMMJTH4407

Place of Signature: Mumbai Date: April 29, 2025

PCBL Chemical Limited (Formerly PCBL Limited)

Standalone Balance Sheet as at 31 March, 2025

(All amounts in T Crores, unless otherwise stated)

For S. R Batliboi & Co. LLP

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066943 A

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MUMBAI

ICAI Firm Registration Number 301003E/E300005 Chartered Accountants

Pra ash Yadav

Partner

Membership Number:

For and behalf Baafd or CIN : 109 OP 4

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KOLKAT4

4ñ g Director

( : 13489)

of PCBL Chemical Limited

Rusha Mitra Director

(DIN: 08402204)

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Place :Mumbai Date: 29 April, 2025

Ka ahik Mukherjee @ Raj Kumar Gupta

Company Secretary Chief Financial Officer

PCBL Chemical Limited (Fomerly PCBL Limited)

Standalone Statement of Profit and Loss for the year ended 31 March, 2025

(All amounts in T Crores, unless otherwise stated)

The accompanying notes form an integral oart of the Standalone financial statements. As per our report of even date attached

For S. R Batliboi & Co LLP

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MUMBAI

ICAI Firm Registration Number 301003E/E300005 Chartered Accountants

For and on behalf of Board of Directors of PCBL Chemical Limited CIN : L23109WB1960PLC024602

per Jai Prakash Yadav Partner

Membership Number: 066943

Kaush" Roy Mana ing Director (DIN: 651 489)

Rusha Mitra Director

(DIN: 08402204)

Place :Mumbai

Kaushik Mukherjee

"c/ dr L " "

Raj Kumar Gupta

Date: 29 April, 2025 Company Secretary Chief Financial Officer

1. Equity share capital

   Particulars	Notes	As at 31 March, 2025		As at 31 March, 2024
   		Number of Shares	Amount	Number of Shares	Amount
   Equity shares of Re 1/- (31 March, 2024 Re. 1/-) each issued, subscribed and paid up Opening balance Closing balance		37,74,62,604	37.75	37,74,62,604	37.75
   		37.74.62.604	37.75	37.74.62.604	37.75

   
   
   

2. Other aquity

The accompanying notes form an integral part of the Standalone financial statements. As per our report of even date attached

For S. R Batliboi & Co. LLP

ICAI Firm Registration Number 301003E/E300005 Chartered Accountants

For and on behalf of Board of Directors of PCBL Chemical Limited CIN : L23109WB1960PLC024602

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per Jai Prakash Yadav Partner

Membership Number: 066943

Place :Mumbai Date: 29 April, 2025

Kaushik Roy

" KOLKATA

Ma agin Oirecto (D : 0 13489

Kaushi Mukherj Company Secrela

Rusha Mitra Director

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DIN: 08402204)

Raj Kumar Gupta Chief Financial Officer

PCBL Chemical Limited tFormerly PCBL Limited)

Statement of Standalone Cash Flows for the year ended 31 March, 2025

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"The 'Other' column includes the impact of foreign exchange reinstatement on foreign currency borrowings and changes in fair value of borrowings measured at amortised cost using the effective interest rate method and effect of addition. renewal and accretion of interest of lease liabilities.

For fhe purpose of presenfafion in the Statement of Cash Flows, cash and cash equivalents compñse cash at bank, cash on hand and short-tern deposits with an original maturiy of three months or less, which are subject to an insignificant ñsk of changes in value.

The accompanying notes fom an integral part of the Standalone financial statements.

As per our report of even dale attached

For S. R Batliboi & Co. LLP

ICAI Fim Registration Number 301003E/E300005 Chartered Accountants

For and .behalf pf Board of Bd ¥ gdf PCBL Chemical Limited CIN €{§iWB1

per Jai Prakash Yadav

Partner

Membership Number. 066943

Place :Mumbai Dale: 29 April, 2025

MUMBAI

Rusha Milra

'

'

'

Director

IM; 08402204)

Rd} Kumar Gupta Chief Financial Officer

Corporate information

PCBL Chemical Limited (Formerly PCBL Limited) (the "Company") (CIN: L23109WB1960PLC024602) is a public company limited by shares domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company is primarily engaged in the business of manufacturing & sale of carbon black and sale of power. Equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.

The registered office of the Company is located at Duncan House, 31, Netaji Subhas Road, Kolkata 700001, West Bengal, India.

These standalone financials statements were approved and authorised for issue in accordance with resolution of the Board of Directors on 29 April, 2025.

I. Basis of Preparation and Material Accounting Policy Information

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is classified as current when it is:

1. expected to be realised or intended to be sold or consumed in the normal operating cycle,

2. held primarily for the purpose of trading,

3. expected to be realised within twelve months after the reporting period, or

4. cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

1. it is expected to be settled in the normal operating cycle,

2. it is held primarily for the purpose of trading,

3. it is due to be settled within twelve months after the reporting period, or

4. there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

The Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Rules, 2024 to amend the following Ind AS which are effective for annual periods beginning on or after April 1, 2024. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

1. Ind AS 117 Insurance Contracts

   The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated 12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024.

2. Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.

The above amendments do not have any impact on the Company's standalone financial statements.

NOTE 2: SIGIFICANT ACCOUNTING JUDGEMETS, ESTIMATES AND ASSUMPTIONS

KOLEATA

The preparation of standalone financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and reported amounts of assets, liabilities, income, expense and disclosure of contingent assets and liabilities at the date of these standalone financial statements and the reported amount of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each Balance Sheet date Revision to accounting estimates is recognised in the period in which the estimates are revised and futur ds are impacted.

MUMBAI

€6teo/ 4

The areas involving critical estimates and judgments are:

Contingent Liabilities and Provisions for claims and litigations

Legal proceedings covering a range of matters are pending against the Company. Due to the uncertainty inherent in such matters, it is often difñcult to predict the final outcomes. The cases and claims against the Company often raise difficult and complex factual and legal issues that are subject to many uncertainties and complexities, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law, in the normal course of business. The Company consults with legal counsel and certain other experts on matters related to litigations. The Company accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated. In the event an adverse outcome is possible or an estimate is not determinable, the matter is disclosed.

Employee Benefits (Estimation of defined benefit obligation)

Post-employment benefits represents obligation that will be settled in future and require assumptions to project benefit obligations. Post-employment benefits accounting is intended to reflect the recognition of future benefits cost over the employee's approximate service period, based on the terms of plans and the investment and funding decisions made. The accounting requires the company to make assumptions regarding variables such as discount rate, rate of compensation increase and future mortality rates. Changes in these key assumptions can have a significant impact on the defined benefit obligations, funding requirements and benefit costs incurred.

Estimation of expected useful lives and residual values of property, plants and equipment

Property, plant and equipment are depreciated at historical cost using straight-line method based on the estimated useful life, taking into account any residual value. The asset's residual value and useful life are based on the Company's best estimates and reviewed, and adjusted if required, at each Balance Sheet date.

Fair Value Measurements

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques which involve various judgements and assumptions. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility. Changes in the assumption about these factors could affect the reported fair value of financial instruments. Refer Note 28 and 29 for further disclosures.

KOLKATA

MUMBAI

PCBL Chemical Limited (Formerly PCBL Limited)

Notes to Standalone Financial Statements as at and for the year ended 31 March, 2025

Note 3(a) Property, plant and equipment

AccountinpPolicy

All items of property, plant and equipment are stated either at historical cost i.e. cost of acquisition / construction or at deemed cost as on the date of transition to Ind AS less accumulated depreciation, impairment loss, if any. Capital work in progress is stated at cost, net of accumulated impairment loss, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the assets.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Company and the cost of the asset can be measured reliably. The carrying amount of the replaced component is derecognised when replaced. All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.

Depreciation

In case of certain property, plant and equipment, depreciation is provided on a pro-rata basis on the straight line method over the estimated useful lives of the assets which are different than the rates prescribed under the Schedule II to the Companies Act, 2013.

The Company, based on technical assessment made by technical expert and management estimate, depreciates certain items of Plant & Equipment and Electrical Installations over estimated useful life of 18 to 23 years which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used along with consideration of the climate related matters.

Depreciation on historical cost/deemed cost of other property, plant and equipment (except land) is provided on pro rata basis on straight line method based on useful lives specified in Schedule II to the Companies Act, 2013.

The useful lives, residual values and method of depreciation of property, plant and equipment are reviewed and adjusted, if appropriate at the end of each reporting year.

An item of property, plant and equipment or its components recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

X0LKATA

The cost of properly, plant and equipment not ready to use are disclosed under capital work -in- progress.

PCBL Chemical Limited (Formerly PCBL Limited)

Notes to Standalone Financial Statements as at and for the year ended 31 March, 2025

(All amounts in T Crores. unless otherwise stated)

Note 3 (a): Property, Plant and Equipment

6 Refer Note 27 for transactions with Related Parties

* Amount is below the rounding off norm adopted by the Company.

1. Gross Carrying amount and accumulated depreciation includes Rs. 57.20 Crores (31 March, 2024 - Rs. 56.82 Crores) and Rs. 20.51 Crores (31 March, 2024 - Rs. 18.02 Crores),respectively in respect of Buildings on Leasehold Land.

2. The Company has borrowings from banks, which carry security charge over certain of the above property, plant and machinery (Refer note 10(a) for details).

   OLKATA

   
   
   

3. Gross carrying amount on leasehold land is against certain lease agreements where the Company has an option to renew the properties on expiry of the lease period. The Company based on terms and conditions of lease agreements has assessed these lease arrangements to be perpetual in nature, accordingly leasehold land is not amortised.

4. Aggregate amount of depreciation has been included under depreciation and amortization expense in the Statement of Profit and Loss (Refer note 19).

5. Refer note 24 for disclosure of contractual commitments for purchase of Property,PIant and Equipment.

(vii) Title deed of the above immovable properties are held in the name of the Company.

(vii) There are no restrictions over the title of the Company's Property,Plant and Equipment.

(viii Company has not revalued its Property,PIant and Equipment during the year ended 31 March, 2025 and 31 March, 2024.

MUMBA!

'

(All amounts in 7 Crores, unless otherwise stated)

Note 3(b): Capital Work-in-Progress (CWIP)

" Includes Rs. 4.97 Crores (31 March, 2024: Rs. Nil) on account of duty saved on assets imported under the Export Promotion Capital Goods (EPCG) scheme. During the year, the Company has capitalised the following expenses to cost of Property,plant and equipment / capital work-in-progress:

There has been no project that has been temporarily suspended during the year ended 31 March, 2025 and 31 March, 2024.

There are no projects whose completion is overdue or has exceeded its cost compared to its original plan during the year ended 31 March, 2025 and 31 March, 2024

MUMBAI

KOLKATA

(All amounts in Z Crores, unless otherwise stated/

Note 3(c): Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction cost s. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from use and no future economic bene£n is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit or loss in the period of derecognition,

" No movement lg Ia¥Ntz'tTent property during the year ended 31 March, 2025 and 31 March, 2024.

There is no income and expenditure arising from the above investment property during the year 31 March, 2025 and 31 March, 2024.

Estimation of fair value

The Company's investment property consists of freehold land in Angul, Odisha, India.

The fair value of the investment property is based on current prices for similar property. The main inputs used are quantum, area, location, demand, and trend of fair market value in the area.

The fair value is based on independent valuation done by registered valuer [as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017]. Fair valuation is based on market approach method and categorised as Level 2 fair value hierarchy. The fair value of the propeny is Rs. 9.00 Crores and Rs. 8.51 Crores as at 31 March, 2025 and 31 March, 2024 respectively,

The Company has no restrictions on the realisability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements,

Note 3(d): Intangible assets

Intangible assets have a finite useful life and are stated at cost less accumulated amortisation, impairment loss, if any.

Computer Software for internal use, which is primarily acquired from third party vendors, is capitalised, Subsequent costs associated with maintaining such software are recognised as expense as incurred. Cost of software includes license fees and cost of implementation / system integration services, where applicable.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

Computer software is amortized on a straight line basis over estimated useful life of three years from the date of capitalisation. Amortisation method and useful lives are reviewed periodically at each financial year end.

1. Amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss (Refer Note 19).

2. The Company has not revalued its intangible assets during the year ended 31 March. 2025 and 31 March, 2024.

   
   
   

3. There are no restrictions over the title of the Company's intangible assets, nor are any intangible assets pledged as security for liabilities.

45

(All amounts in 7 Crores, unless otherwise stated

Note 3(e): Right of use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured af cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date. Right-of use assets are depreciated on a straight-line basis over the shorter of the lease tern and the estimated useful lives of the assets.

1. Aggregate wfl0unt of depredaflon has been included under deptaca!i0Ti and amonization expense in the Statement of Profit and Loss (Refer Note 19).

2. The Company has not revalued its Right of use assets during the year ended 31 March, 2025 and 31 March, 2024

   Particulars	As at 31 March, 2025		As at 31 March, 2024
   Buildings Plant and Equipment Vehicles Total	Closing Gross carrying amount	Net carrying amount	Closing Gross carrying amount	Net carrying amount
   	75.48 115.46 2738	32.24 50.94 1264	75.24 66.86 18.46	39.43 12.12 815
   	218.82	95.82	160.56	59.70

   Note 3(f): Intangible Assets under Development (IAUD)

   Particulars	IAUD
   Year ended 31 March, 2025 Opening balance as at 1 April, 2024 Additions during the year Capitalization during the year	2.05
   CfoeTng carrying amount as at 31 March, 2025	Z.05

   Particulars	Amount In IALID for a perfod Of				Total
   	Less than 1 year	1-2 years	2-3 years	More than 3
   As at 31 March. 3026
   PrO}e0tS lit programs	2.05				2.05
   is at 31 Mersh. 2024

   Ageing of lfitenqlbio Assets under De¥eloPrnmt ttAuD} :

   
   
   

   ]

   ,KO r TA

   
   
   

   The Company has signed a technology transfer agreement with Ningxia Jinhua Chemical Co., Ltd ("Jinhua") on 14 February, 2025, to acquire technology for making conductive carbon black on an exclusive basis from Jinhua,

   no project that has been temporarily suspended during the year ended 31 March, 2025.

   
   
   
   
   
   

   There is no p " wh0se completion is overdue or has exceeded its cost compared to its original plan during the year ended 31 March, 2025. @ @' 6

   PCBL Chemical Limited (Formerly PCBL Limited)

   Notes to Standalone Financial Statements as at and for the year ended 31 March, 2025

   (All amounts in 7 Crores, unless otherwise stated) As at As at

   31 March, 2025 31 March, 2024

   Note 4{a) : INVESTMENTS

   Accounyng Pali«y

   1. Investment in subsidiaries

      Investments in shares and debentures of subsidiaries are stated at cost less provision for impairment losses, if any. Investments are tested for impairment whenever an event or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by whlCh the carrying amoum of investments exceeds its recoverable amount- If, in a subsequent period, recoverable amount equals or exceeds the carrying amount, the impaiment loss recognised is reversed accordingly.

      1. Investment (other than investment in shares and debentures of subsidiaries)

         1. Classification

            The Company classifies its investments as those la be measured subsequently at fair value (either through other comprehensive income or through profit and loss).

            The classification depends on the Company's business model for managing the investments and the contractual terms of cash flows.

            For investments measured at fair value, gains and losses are either recorded in the statement of profit and loss or other comprehensive income. For investments in debt instrumenls, this depends on the business model in which the investment is held. For investments in equity instruments, this depends on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVTOCI). The Company reclassifies the debt investments when and only when the business model for managing those investment changes.

         2. Measurement

At initial recognition, the Company measures an investment at its fair value plus, in the case of investment not at fair value through profit and loss, transaction costs thai are directly attributable to the acquisition of the investment. Transaction costs of investments carried at fair value through profit and loss are expensed in the statement of profit and loss.

1. Debt Instrument

   Subsequent measurement of debt instruments depends on the Company's business model for managing the investment and the cash flow characteristics of the investment. The Company classTies its debt instruments as:

   Fair Value Through Profit and Loss (FVTPL) : Investments that do not meet the criteria for amonised cost or FVTOCI are measured at fair value through profit and loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit and loss is recognised in statement of profit and loss and presented on net basis in the statement of profit and loss within other income/ other expense in the year in which it arises.

2. Equity Instrument

The Company subsequently measures all equity investments at fair value through Other Comprehensive Income and there is no subsequent reclassification of fair value gains and losses to the statement of profit and loss. At the time of derecognition of such investments, the gain or loss is transferred to retained earnings.

Non-Current

Phillips Carbon Black Cyprus Holdings Limited

18,118 (31 March, 2024: 18,118) equity shares of Euro 1/- each

PCBL (TN) Limited

3,00,00,000 (31 March, 2024: 3,00,00,000) equity shares of Rs 10/- each

PCBL Europe SRL

8,00,000 (31 March, 2024: 8,00,000) equity shares of Euro 1/- each

Aquapharm Chemical Limited (Fomerly Advaya Chemical Industries Lim ited)" 228,00.00,000 (31 March, 2024: 8,00,00,000) equity shares of Rs 10/- each

Nanovace Technologies Limited

25,50,000 (31 March, 2024: Nil) equity shares of Rs 10/- each

Total (A)

In Prafacen4e Sharea fMIv Dald ty} PCBL (TN) Limited

9,40,00,000 (31 March, 2024: 9,40,00,000) 9°/e Cumulative Non Convertible Redeemable Preference shares of Rs. 100 each

21.65

30.00

7.15

2,280.00

2.55

2,341.35

940.00

21,65

30.00

7.15

80.00

138 80

940.00

Total (B)

Aquapharm Chemical Limited (Formerly Advaya Chemical Industries Limited)

Nil (31 March, 2024: 220,00,00.000 ) Optionally and Fully Convertible Debentures of Rs 10/- each

Nanovace Technologies Limited

19,48,02.440 (31 March, 2024: Nil ) Optiona|ly Convenible Debentures of Rs 10/- each

Total (C)

940 00

194.80

194 80

940.00

2,200.00

2,200.00

MUMBAI

KOLKATA