R) Provisions, Contingent Liabilities and Contingent Assets :
A Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If the effect of the time value
of money is material, provisions are discounted. The discount rate used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.
Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company,
or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or
the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of
resources embodying economic benefits is remote.
A contingent asset is a possible asset arising from past events, the existence of which will be confirmed only by the occurrence
or nonoccurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not
recognised till the realisation of the income is virtually certain. However, the same are disclosed in the financial statements where
an inflow of economic benefit is possible.
S) Government Grants:
Government grants including any non-monetary grants are recognised where there is reasonable assurance that the grant will be
received, and all attached conditions will be complied with. Government grants are recognised in the Statement of Profit and Loss
on a systematic basis over the periods in which the related costs, for which the grants are intended to compensate, are recognised
as expenses. Government grants related to property, plant and equipment are presented at fair value and grants are recognised as
deferred income.
T) Research & Development Expenditure:
Revenue expenditure pertaining to research is charged to statement of profit and loss. Development costs of products are charged
to the statement of Profit and loss unless a product's technological and commercial feasibility has been established, in which case
such expenditure is capitalized.
6.1 Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of
Companies, Maharashtra, Mumbai. to carry on the business of manufacturing, repair, etc. of all types of rural and farm equipments,
machinery, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.
6.2 Mirabelle Agro Manufacturing Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 26th December, 2019 with the Registrar
of Companies, Maharashtra, Mumbai. to carry on the business of manufacturing, Producing and Dealing in Mineral Feed Supplements.
The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.
6.3 Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry
on the activities of manufacturing Chemical Fertilizer and exporting all the necessary, material and acts related to its natural work or
needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited which increased
to 88.14% upon conversion of Current Account Balance / Share Application Money to Capital Account.The Registered Office of the
Company is located at “ SAIF Zone ( Emirates of Sharjah ) “UAE”. The licence has since been converted into a trading licence effective
from 7th December, 2016.
6.4 Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 with the Registrar of Companies, Maharashtra, Mumbai. to
carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in
farming and agricultural produce. The registered office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E),
Mumbai - 400 043”. The said Company passed special resolution to get its name struck off. The form STK-2 for Strike Off the Company
was refiled in April, 2026 and the same has been accepted by MCA and the process for issue of public notice has been initiated. Upon
completion of the above process and the cooling period if no objection is received by MCA the Company will be Struck Off.
As per the records of the Company including register of Shareholders / Members, the above shareholding represents both legal as well
as beneficial ownership of shares.
* During the previous year the Company mourned the passing of one of the Shareholder cum Director Dr, Jimmy Mirchandani. As of
the date of this Financial Statements, the shares remain registered in the name of deceased shareholder.
The process of transmission of these shares to the rightful legal heir(s) or nominee(s) is currently underway in accordance with the
applicable legal and regulatory requirements. The Register of Members will be updated upon completion of formalities.
16 Other Equity
16.1 Securities Premium Reserve : represents the amount received in excess of par value of securities i.e equity shares. Premium on
redemption of securities is accounted in security premium available. Where security premium is not available, premium on redemption
of securities is accounted in statement of profit and loss. Section 52 of Companies Act, 2013 specify restriction and utilisation of security
premium.
16.2 General Reserve : represents the statutory reserve, this is in accordance with Indian Corporate law wherein a portion of profit is
apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare
dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.
16.3 Retained Earnings : represent the undistributed profits of the Company
16.4 Other Comprehensive Income Reserve : represent the balance in equity for items to be accounted in Other Comprehensive Income.
Other Comprehensive Income is classified into i) items that will not be reclassified to profit and loss, ii) items that will be reclassified to
profit and loss.
* During the previous year the Company mourned the passing of one of the Shareholder cum Director Dr, Jimmy Mirchandani. As
of the date of this Financial Statements, the shares remain registered in the name of deceased shareholder.
The process of transmission of these shares to the rightful legal heir(s) or nominee(s) is currently underway in accordance with
the applicable legal and regulatory requirements. The Register of Members will be updated upon completion of formalities.
** During the period under review, the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines,
Standards, etc., mentioned above. It was observed that Related Party Transactions with the Overseas Subsidiary, Golden
Harvest Middle East, FZC, UAE exceeded the Audit Committee approved limit by Rs. 1.79 Crore during the Quarter ended
December 31, 2025. The Audit Committee took note of the fact that the excess amount was due to unforeseen business
exigencies and approved the same at its meeting held on February 13, 2026.
42. Contingent Liability not provided for in the accounts:
a) Letters of credit / guarantees given / Bills discounting Rs. 841.44 Lakhs..
b) Claims against company not acknowledged as debts Rs. 5,833.86 Lakhs which includes tax dues disputed as Rs. 23.55 Lakhs towards
sales Tax, Rs. 1,159.73 Lakhs towards Income Tax , Rs. 528.42 Lakhs towards Goods & Service Tax and Rs. 4,122.17 Lakhs towards
central excise & customs.
c) 1) The Commissioner of Central Excise, Navi Mumbai, had passed an order for the period June, 2005 to June, 2017 confirming demand
of Rs. 4.79 Crores and interest on the said amount towards Central Excise duty on the classification of micronutrient fertilizers relating to
the Mumbai Factory against which the Company has preferred an appeal before the Central Excise and Service Tax Appellate Tribunal
(CESTAT), Mumbai and the same is pending before CESTAT Mumbai.
2 (a). The Commissioner of Central Excise, Ahmedabad - II, had passed an order for the period March, 2011 to October, 2012 confirming
demand of Rs. 3.81 Crores on account of Central Excise duty, interest on the said amount and penalty of like amount i.e. Rs.3.81 Crores
on the classification of micronutrient fertilizers relating to the Sanand facility against which the Company has filed an appeal before the
Central Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad and the same is pending before CESTAT, Ahmedabad.
2 (b). The Commissioner of Central Excise, Ahmedabad, had passed an order for the period October, 2012 to June, 2017 confirming demand of
Rs. 13.84 Crores on account of Central Excise duty, penalty on the said amount of Rs. 13.84 Crores on the classification of micronutrient
fertilizers products relating to the Chhatral factory against which the Company has filed an appeal before the Central Excise and Service
Tax Appellate Tribunal (CESTAT), Ahmedabad.
The Central Board of Excise and Customs vide their Circular No. 1022/10/2016/CX dated 06/04/2016 have clarified that Micronutrients
are not classifiable as Plant Growth Regulators and hence are not classifiable under Chapter Heading No. 38.08 of the Central Excise
Act.
In view of legal pronouncement and the above referred Circular, the Show Cause-Cum-Demand Notices are liable to be dropped.
3 (a). The Company has been classifying Sulphur Bentonite under Chapter Heading No. 25030090 as other forms of Sulphur. However, the
Customs authorities classified Sulphur Bentonite imported under Chapter Heading No. 25030010 “as recovered by product in refining
of crude oil”. The Additional Commissioner of Customs, Nhava Sheva confirmed the classification for the period 2011-12 and 2012-13
under Chapter Heading No. 25030010 and demanded an amount of Rs. 29.91 Lakhs. In addition, penalty of like amount i.e. Rs. 29.91
Lakhs along with fine and penalty of Rs. 7.00 Lakhs each on the Chairman & Managing Director and Purchase Manager of the Company
The Company preferred an appeal before the Commissioner (Appeals) who vide order dated 19/02/2016 while upholding the Department's
contention on classifying the product under Chapter Heading No. 25030010 set aside the fine and penalty imposed upon the Company,
the Chairman & Managing Director and the Purchase Manager. The Commissioner Appeals also directed to grant benefit vide Sr. No. 60
under Notification No. 21/2002/CUS. The Company has preferred an appeal against the said order to the Customs, Central Excise and
Service Tax Tribunal (CESTAT), Mumbai on 19/05/2016 contesting the classification of Sulphur Bentotonite under Chapter Heading No.
25030010. The appeal was heard on 6th May, 2026, and we expect a favorable decision.
3 (b). The Company has been classifying Zn-EDTA & Fe-EDTA under Chapter Heading No. 31059090 as other Fertiliser for Mumbai
Factory. However, the Customs authorities classified the imports under Chapter Heading No. 29224990 “as Organic Chemicals”. The
Commissioner of Customs, Nhava Sheva confirmed the classification under Chapter Heading No. 29224990 and passed an order for the
period February, 2012 to December, 2012 and demanded an amount of Rs. 81.84 Lakhs, on account of Custom Duty with Interest against
which the Company has filed an appeal before the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai.
4 (a) Assistant Commissioner of State Tax (GST), Mazgaon (Mumbai), issued a show cause notice FORM GST DRC - 01 No. INV-A/AC-D-
032/ Aries Agro /u/s 73/DRC-01/B- 18 (Ref. No. ZD2705230325161) Mumbai Dated 19th May 2023. being the availment of ITC on inward
supply of inputs from vendors whose GST Registration were cancelled retrospectively during the financial year 2018-2019 amounting to
Rs. 167.28 Lakhs. The Company has submitted reply on 25th Jul 2023. Assistant Commissioner of State Tax (GST), Mazgaon (Mumbai),
confirmed the demand of Rs. 167.28 Lakhs vide his order FORM GST DRC - 07 bearing no. INV-A/AC-D-032/ Aries Agro /u/s 73/DRC-
07/B- 196 Mumbai (Ref. No. ZD271123049090U) and also demanded interest of Rs. 212.44 Lakhs & proposed penalty of Rs. 16.73
Lakhs totaling to Rs. 396.45 Lakhs. The Company has preferred an Appeal against the said order before the Commissioner of (Appeals)
Mumbai.
4 (b). The Superintendent CGST Lucknow issued a Demand-cum-show cause Notice no. 25 dated 31st May 2024 being the difference
between GSTR-1 & GSTR-3B towards outward supply for the financial year 2019-2020 amounting to Rs. 2.53 Lakhs. The Company has
submitted reply on 18th Jul 2024. The Superintendent CGST Lucknow however confirmed the demand vide Order bearing no. DRC-07
Ref. No. ZD090924075986G dated 10th Sep 2024 for Rs. 2.53 Lakhs and also proposed a penalty of Rs. 0.45 Lakhs totaling to Rs.
2.98 Lakhs. The Commissioner Appeals has decided the matter against the Company and the Company is preferring an Appeal before
GSTAT, Lucknow.
4 (c). The Assistant Commissioner of GST, Vijayawada (Guntur), issued show cause notice FORM GST DRC - 01 vide Ref. No.
ZD371124028872E dated 26th Nov 2024 for Rs. 60.43 Lakhs being the mismatch between GSTR-1 & GSTR-3B towards outward supply
and Rs. 56.83 Lakhs toward mismatch between E-Way Bill & GSTR-1 thus totaling to Rs. 117.26 Lakhs for the financial year 2020-2021.
The Company has submitted reply on 24th Dec 2024. The Assistant Commissioner of GST, Vijayawada (Guntur), has confirmed the
demand of Rs. 117.26 Lakhs.vide his order bearing no. DRC-07 dated 25th Feb 2025 and also proposed a penalty of Rs. 11.73 Lakhs
totaling to Rs. 128.99 Lakhs. The Company has preferred an Appeal against the said order on 21st May 2025 before the Commissioner
of (Appeals) Vijayawada (Guntur).
43. Segment Reporting as per Ind AS - 108
The Company has only One business Segment “ Agri Inputs “as its primary segment and hence disclosure of segment-wise information
is not required under Ind AS 108 ‘Operating Segments' notified pursuant to the Companies (Indian Accounting Standard) Rules, 2016
(as amended).
47. Previous Years figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current
year.
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