M Provisions and contingent liabilities

A provision is created when there is a present obligation as a result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation at the reporting date. A disclosure for a contingent liability is
made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.
When there is a possible obligation ora present obligation in respect of which the likelihood of outflow of resources is remote.no
provision or disclosure is made.

The Company does not recognize assets which are of contingent nature until there is virtual certainty of realizability of such assets.
However, if it has become virtually certain that an inflow of economic benefits will arise, asset and related income is recognized in
the financial statements of the period in which the change occurs

N Impairment of assets

The Company on an annual basis makes an assessment of any indication that may lead to impairment of assets. If any such indication
exists, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount,
then the carrying amount is reduced to its recoverable amount by treating the difference as impairment loss and is charged to the
statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss is no longer
valid, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.

O Cash and bank balances

Cash and bank balances comprise cash, Current accounts and deposit with banks.The Company has a policy of classifying highly
liquid investments which have a tenure of less than three months and are readily convertible into fixed amounts of cash and cash
equivalents.

P Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are normally recorded on the initial recognition in the reported currency
using the exchange rates prevailing on the date of transaction.

(b) Monetary assets & liabilities denominated in foreign currencies are restated at the appropriate rates of exchange prevailing on
the date of Balance Sheet. Resultant gain or loss is accounted in the period in which they arise.

© Any income or expense on account of exchange difference either on settlement or on translation of monetary items are
recognized in the Statement of Profit and Loss for the period in which they arise

Q Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are capitalized. A qualifying asset is an asset that necessarily
requires a substantial period of time (generally over 12 months) to get ready for its intended use or sale. Other interest and
borrowing costs are charged to statement of Profit & Loss.

1 The Company has one class of equity shares having a par value of ? 10 per share. Each shareholder is eligible for one vote per share
held. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their share holding. However, no such preferential amounts exist currently.

2 The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the
approval of the share holders in the ensuingAnnual General Meeting.

3 The Company does not have any Holding Company/ Ultimate Holding Company.

4 No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestments
as at the Balance Sheet date

5 No Calls are unpaid by any Director or Officer of the Company during the year.

6 Pursuant to the special resolution passed in the extra ordinary general meeting held on 6thJanuary,2025.The Company has issued
and allotted 15,85,000 equity shares of Rs 10 each, on Preferential allotment basis at an issue price of Rs 127 per share (Including
Premium of Rsl 17),to the Non-Promoter Group of the Company and on the receipt of Rs.2012.95 lakhs, the company made the
allotment of such shares on Nth February,2025.

a. Details of security of short-term borrowings

Cash credit facilities and working capital demand loan taken from Kotak Mahindra Bank are secured by first and exclusive charge on
all present and future current assets and fixed assets of the borrower, extension of equitable mortgage of the following properties -
Residential property number 273 situated at Master Mota Singh Nagar, Jalandhar owned by Iqbal Singh Chatha and Manjit Singh
Chatha s/o Sh. Hari Singh; Residential property number 271 situated at Master Mota Singh Nagar,Jalandhar owned by Paramjit Singh
Chatha;Commercial property SCF number 305, Motor Market, Manimajra, Chandigarh owned by Gurcharan Singh Gosal; Industrial
property khata number 35/124 village Chaudheri.tehsil derabassi owned by the Company, property owned in Kartarpur and
Shadipurby Mr.Paramjit Singh Chatha. The cash credit is also secured by personal guarantee oflqbal Singh Chatha, Paramjit Singh
Chatha, Gurcharan Singh Gosal, Gurpreet Chatha and Manjit Singh Chatha.

b. Terms of repayment and interest rates

Cash credit from Kotak Mahindra bank amoting to ?0 lakhs (previous year ?270 lacs) carrying interest rate 3.00% over the Repo
rate (previous year 8%) repayable in three months.

The quarterly returns/statements, in respect of the working capital limits have been filed by the Company with such banks and
statements are in agreement with the books of account of the Company for the respective periods, which were not subject to
audit.

Note:

a. Dues to micro and small enterprises pursuant to section 22 of the Micro, Small and Medium Enterprises
Development Act (MSMED), 2006unting to ?7,00.45 lacs (previous year ?363.51 lacs) carrying interest rate 3.00% over
the Repo rate (previous year 4.25% over the Repo rate).

Secured loan from Kotak Mahindra Bank amoun

28 Earnings/(Loss) per share

The calculation of Earning Per Share (EPS) as disclosed in the statement of profit and loss has been made in accordance with
Accounting Standard (AS-20) on "Earning Per Share" as specified under section 133 of the Act, read with the Companies
(Accounting Standards) Rules, 2021 and other accounting principles generally accepted in India. Earnings per Share ('EPS') is
determined based on the net profit attributable to the shareholders'. Basic earnings per share is computed using the weighted
average number of shares outstanding during the year. Diluted earnings per share is computed using the weighted average number
of common and dilutive common equivalent shares outstanding during the year including share options, except where the result
would be anti-dilutive.

The company have approved the issuance of 41,33,720 bonus Equity Shares in the ratio of one Equity Share for every three existing
fully paid up Equity Share on 13-09-2023. New Bonus Equity Shares have been considered for the computation of both Basic &
Diluted EPS in accordance with para 20 of AS 20: Earning Per share issued by ICAI for full year.

Pursuant to the special resolution passed in the extra ordinary general meeting held on 6th January,2025.The Company has issued
and allotted 15,85,000 equity shares of Rs 10 each, on Preferential allotment basis at an issue price of Rs 127 per share (Including
Premium of Rs 117), to the Non-Promoter Group of the Company and on the receipt of Rs. 2012.95 lakhs, the company made the
allotment of such shares on 14th February,2025.

35 The Company's main business is the manufacturing of ready to eat meat products, Vegetarian and vegan foods which as per
Accounting Standard - 17 on “Segment Reporting” as prescribed under Section 133 of the Act, read with the Companies
(Accounting Standards) Rules, 2021 and other accounting principles generally accepted in India is considered to be the only
reportable segment.The Company is primarily operating in India which is considered as a single geographical segment.

The Company has contributed an amount of? 8.94 Lacs to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations
Fund (PM CARES Fund) as part of its CSR obligations.This contribution is in line with the provisions of ScheduleVII of the Companies
Act, 2013 and is aimed at supporting efforts towards disaster management, including relief, rehabilitation and reconstruction
activities.The Company does not have any contingent liability at end of the year as indentified by the management except for table
below:

Note 36.1 Good and Service Related, Excise AndTaxation Department, Punjab, issued a penalty of Rs 6.95 lakh in the year 2022-23 for the
period of year 2017-2018.The Company have made the payment of such demand on 26/09/2023.But such demand is still shown as
outstanding on the Goods And ServiceTax portal.

Note 36.2The company received aTDS demand of Rs 1.87 lakh in preceeding Financial Years, out of which Rs.0.51 lakh have been paid by
the company in the recent years.But the whole amount is shown as outstanding onTraces portal.

37 a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) 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.

(b) The Company has not received any funds from any persons or entities, 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.

(c) The title deeds of all the immovable properties held by the Company (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.

(d) There are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made.

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

(f) The company has not incurred any transactions with the companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956 for the year ended as at 31 March 2024 &3I March 2025.

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

(h) The Company has no such layers as prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules,2017. Hence,the said clause is not applicable to the Company.

(i) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

(j) Money raised by way of term loans were applied for the purposes for which these were obtained.

(k) The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the IncomeTaxAct, 1961 as at year ended 31 March 2025&3I March 2024.

(l) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(m) The Company does not have any advances in the nature of loans during the year.

38 Previous year figures have been regrouped/recasted, wherever considered necessary to make them comparable with those of the

current year.

40 The Company raised money 2164.08 lakhs by way of preferential issue and share warrants in FT 24-25 and , moneys raised by
way of preferential issue and share warrants , have been, prima facie, applied by the Company for the purposes for which they
were raised. However, some portion of the amount raised i.e. Rs 180 Lakhs is utilised for the purpose of the prefential issue,
which remain unutilised amount of Rs. 1984.08 lakhs at the year end, have been invested in bank deposits/lying in Bank Account,
as on March 31,2025.

For A Bafna & Co, For and on behalf of the Board of Directors of

Chartered Accountants Chatha Foods Limited (Formerly Known as Chatha Foods Private Limited)

Firm's Registration No.:003660C

Sd/- Sd/- Sd/-

Vivek Gupta Paramjit Singh Chatha Gurpreet Chatha

Partner Managing Director Wholetime Director

Membership No. 400543 (DIN No: 01154225) (DIN No: 01389143)

(UDIN No: 25400543BMLIGG4738)

Sd/- Sd/-

Priyanka Oberoi Vishal Singh Sirmauria

Place: Mohali Company Secretary Chief Financial Officer

Date: 16/05/2025 (Membership No: A32400)