(j) Provision, contingent liabilities and contingent assets (IND AS 37)

Provision is recognised in the accountswhen there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

(k) Taxes (IND AS 12)

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(l) Financial instruments (IND AS 109)

i) Financial Assets

A. Initial recognition and measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

B. Subsequent measurement

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

a) Financial assets carried at amortised cost (AC)

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (‘FVTOCI’). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in Statement of 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 as gains/ (losses) within other income or other expense. Interest income from these financial assets is included in other income using the effective interest rate method.

c) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in profit or loss and presented net in the Statement of Profit and Loss as gains/(losses) within other income or other expense in the period in which it arises. Interest income from these financial assets is included in other income.

C. Investment in equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as Other Income when the Company’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised as gains/(losses) within other income or other expense in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value.

ii) Financial liabilities

A. Initial recognition and measurement

The Company’s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs.

B. Subsequent measurement

Subsequently measured at amortised cost using the effective interest method. 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 through the expected life of the financial liability, or, where appropriate, a shorter period.

(m) Cash Dividend to Equity Holders of the Company:

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date.

Fair value is the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’sability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant thatwould use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(o) Events occurring after the balance sheet date (IND AS 10)

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared after the reporting period but before the issue of financial statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements.

(p) Intangible Assets

Intangible Assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation. Amortisation is recognised on straight line basis over their estimated useful lives of 5 years, which reflects the pattern in which the asset's economic benefits are consumed. The estimated useful life, amortisation method and the amortisation period are reviewed at the end of each reporting period, with effect of any change in estimate being accounted for on a prospective basis.

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

(q) Earning Per Share (EPS)

The Company reports basic and diluted earning per share in accordance with Ind AS 33 on Earning per share. Basic earning per share is computed by dividing the net profit or loss for the period by the weighted average number of equity share outstanding during the period. Diluted earning per share is computed by dividing the net profit or loss by the weighted average number of equity shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti- dilutive.

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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. For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Notes:

1) Vehicle Loan is secured by Hire Purchase of vehicle where the vendors has a lien on and right of repossession of specific vehicle. The loan is

repayable in 36 monthly instalments and carries interest rate of 7.50% p.a.

2) Vehicle Loan is secured by Hire Purchase of vehicle where the vendors has a lien on and right of repossession of specific vehicle. The loan is

repayable in 36 monthly instalments and carries interest rate of 7.63% p.a (approx.).

3) Machinery Loan is primarily Secured against first & exclusive charge by way of hypothecation of entire plant and machinery, equipments of the company. The term loan is repayable in 36 Monthly Instalment and carrying interest rate of 9.15% p.a..

4) The Kalupur Commercial Co-Op Bank Limited has sanctioned in agreegate of Rs. 39.33 Crores of various credit facilities including Cash Credit, Machinery loan I and II, Secured loan, working capital term loan and forward contract limit. The said facilities are secured by the Stock and book debts, machineries and properties of the Company by way of exclusive charge of equitable mortgage and composite deed of hypothecation of stock, book debts and existing machineries. Further, Personal Guarantees of Mr. Piyushbhai N Patel and Mr. Shrinal Patel are also provided. The machinery loan II and working capital term loan are repayable in 60 monthly equal instalment and carrying interest rate of 9.15% p.a.

5) Term Loan is from Kotak Mahindra Bank Limited. The same is secured by way of first pari pasu of hypothecation charge on all existing and future current assets and moveable fixed assets of the Company share with Kalupur Commercial Co Op Bank Limited (except moveable fixed assets exclusively financed by Kotak Mahindra Bank Limited) and also secured by first and exclusive registered mortgage charge on immovable properties being land and building situated at primarily Secured against first & exclusive charge by way of mortgage of immovable properties being land and building situated at Plot No 24,25 and 26, Phase 2, GIDC Vatva, Ahmedabad owned by the Company. The said term loan is further secured by way of second charge by way of registered mortgage of immovable properties being land and building situated at plot no 18, GIDC Estate, Phase 1, Vatva, Ahmedabad belonging to the Company. Further, Personal Guarantees of Mr. Piyushbhai N Patel and

Mr. Shrinal Patel are also provided. The term loan is repayable in 84 Monthly Instalment (including moratorium of 12 months) and carrying interest rate of 9.00% p.a.(Repo rate 2.5% p.a.).

Gratuity: The Company makes annual contributions to Employees' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation.

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service.

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

Terms and Conditions of transactions with related parties

1. The Company's transactions with related parties are at arm's length. Management believes that the company's transactions with related parties post March 31, 2023 continue to be at arm's length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the period end. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

2. For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amount sowed by related parties (31 March 2023: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

3. The future liability for Gratuity is provided on aggregated basis for all the employees of the Company taken as a whole, the amount pertaining to KMPs is not ascertainable separately and therefore not included above.

Commitments with Related Parties

The Company has not provided any commitment to the related party as at March 31, 2024 (March 31, 2023: Rs. NIL).

In order to achieve this overall objective, the Companies capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31,2024, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024.

Note - 44 Dividend

No dividend declared or paid during the Financial Year 2023-24.

Note - 45 Financial Risk Management - Objectives and Policies

The Company’s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company’s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company’s risk management framework.

The Company’s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

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

Note - 45.1 : Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

(a) Trade receivables and loans

The company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 90 days for customers.

(b) Cash and cash equivalents

The company holds cash and cash equivalents of Rs. 16.02 Lakhs at March 31,2024 (March 31,2023: Rs. 27.32 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

Note - 45.2 : Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation. The information included in the tables have been drawn up based on the undiscounted cashflows of financial liabilities based on the earliest date on which the Company may be required to pay. The company believes that the working capital and terms loans are sufficient to meet its current requirements. Details of such loan are given as below:

(c) Commodity Price Risk

Looking at the varying product mix each year, it is not practical to calculate the impact on Profit after tax of the Company due to changes in material prices.

Note - 46 FINANCIAL INSTRUMENTS - FAIR VALUES & RISK MANAGEMENT Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured 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.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measure date quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique.

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 : Inputs other than the quoted prices included within Level1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Inputs based on unobservable market data

Note - 47 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 48 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

Note - 49 SEGMENT REPORTING

The Company’s Whole Time Director (WTD) and Chief Financial Officer (CFO) examines the Company’s performance from business and geographic perspective. In accordance with Ind AS-108 - Operating Segments, evaluation by the WTD and CFO and based on the nature of activities performed by the Company, which primarily relate to Manufacturing of Chemicals, the Company does not operate in more than one business segment.

Note - 50 Net Exchange Gain included in the profit and loss account is Rs. 69.67 Lakhs (Gain in PY Rs. 57.88 Lakhs).

Note - 51 Events occurred after the Balance Sheet date

The Company evaluates events and transactionsthat occur subsequent to the balance sheet date but prior to approval of financial statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 30th May 2024 there were no material subsequent events to be recognized or reported that are not already disclosed.

Note - 52 No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami PropertyTransactions

Act, 1988 (asamended in 2016) (formerly the BenamiTransactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunderduring theyear ended March 31, 2024 and March 31, 2023.

Note - 53 The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended

March 31,2024 and March 31,2023.

Note - 54 The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act,

1956 during the year ended March 31,2024 and March 31, 2023.

Note - 55 There are no charges or satisfactions which were to be registered with the Registrar of Companies beyond the statutory period during the year ended March 31,

2024 and March 31,2023.

Note - 56 The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2024 and March 31, 2023.

^{Note - 57} The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act,

2013 during the year ended March 31, 2024 and March 31, 2023.

^{Note - 58} During the year ended March 31, 2024 and March 31, 2023, the Company has not surrendered or disclosed as income any transactions not recorded in the

books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

Note - 59 As at year end March 31,2024 and March 31,2023, the Company has used the borrowings from banks and Financials Institutions for the specific purpose for

which it was taken

Note - 60 During the year ended March 31, 2024 and March 31, 2023, the Company has granted loans or advances to Promoters, Directors, KMPs and Related parties (as

defined under the Companies Act, 2013) as given below.

Note - 61 During the year ended March 31, 2024 and March 31, 2023, the Company has not advanced or loaned or invested funds (either borrowed funds or share

premium or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(a) 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

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

Note - 62 During the year ended March 31, 2024 and March 31, 2023, the Company has not received any fund from any person or entity, including foreign entities

(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company sha

(a) directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

Note - 63 The Company is in compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction

on number of Layers) Rules, 2017 during the year ended March 31,2024 and March 31,2023.

Note - 64 Previous year's figures have been regrouped, reclassified wherever necessary to correspond with the current year's classification or disclosure.

Note - 65 Figures have been rounded off to the nearest rupee.