Notes to Accounts of Daikaffil Chemicals India Ltd.

Mar 31, 2025

f) Provisions, contingent liabilities and contingent
assets

A provision is recognized when the Company has a present
obligation (legal or constructive) as a result of past event,
and it is probable that an outflow of resources embodying
economic benefits will be required to settle a reliably
assessable obligation. Provisions are determined based on
best estimate required to settle each obligation at each
balance sheet date. If the effect of the time value of money
is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific
to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a
finance cost.

Contingent liabilities are disclosed in respect of possible
obligations that arise from past events, whose existence
would be confirmed by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company. Contingent liabilities are also
present obligations where it is not probable that an outflow
of resources will be required, or the amount of the obligation
cannot be measured with sufficient reliability. Contingent
Liabilities are not recognized in the financial statements but
are disclosed separately.

Contingent assets are not recognised unless it becomes
virtually certain that an inflow of economic benefits will arise

g) Financial Assets

Recognition and initial measurement

Trade Receivables are initially recognised when they are
originated. All other financial assets are initially recognised
when the Company becomes party to the contractual
provisions of the instrument. All financial assets other than
trade receivables and those measured subsequently at fair
value through profit and loss, are recognised initially at fair
value plus transaction costs that are attributable to the
acquisition of the financial asset.

Classification and Subsequent measurement

For purposes of subsequent measurement, financial assets
are classified in following categories:

i. Financial Assets at Amortised Cost

A financial asset is measured at amortised cost if it is held
within a business model whose objective is to hold the asset
in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest
on the principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
Effective Interest rate method (EIR). Amortized cost is
calculated by taking into account any discount or premium
and fees or cost that are an integral part of the EIR.

The EIR amortization is included in finance income in the
statement of profit & loss. The losses arising from impairment
are recognized in the statement of profit and loss.

ii. Financial Assets Measured at Fair Value through Other
Comprehensive Income (FVOCI)

Financial assets are measured at fair value through Other
Comprehensive Income (OCI) if these financial assets are
held within a business model with an objective to hold these
assets in order to collect contractual cash flows or to sell
these financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal
amount outstanding.

After initial recognition, these assets are subsequently
measured at Fair Value. Interest Income under Effective
Interest method, foreign exchange gains and losses and

impairment losses are recognized in the statement of profit
and Loss. Other net gains and losses are recognized in OCI.

iii. Financial asset not measured at amortised cost or at fair
value through OCI is carried at Fair Value through Profit and
Loss

iv. Equity Investments

All Equity investments within the scope of Ind AS 109 are
measured at Fair Value. Such equity instruments which
are held for trading are classified as FVTPL. For all other
such equity instruments, the Company decides to classify
the same either as FVOCI or FVTPL. The Company makes
such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.

For Equity instruments classified as FVOCI, all fair value
changes in the instrument excluding dividends are
recognized in OCI. Dividends on such equity instruments are
recognized in the statement of Profit or loss.

De-recognition of Financial Assets:

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognised when:

The rights to receive cash flows from the asset have expired, or

The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a
third party under a ''pass-through'' arrangement; and either
(a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither
transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments
(other than debt instruments measured at FVOCI) and
equity instruments (measured at FVTPL) are recognised
in the statement of Profit and Loss. Gains and losses in
respect of debt instrument measured at FVOCI and that are
accumulated in OCI are reclassified to Profit and Loss on de¬
recognition. Gains or losses on equity instruments measured
at FVOCI that are recognised and accumulated in OCI are
not reclassified to Profit or Loss on derecognition.

h) Financial Liabilities

Financial liabilities and equity instruments issued by the
Company are classified according to the substance of the
contractual arrangements entered into and the definitions of
a financial liability and an equity instrument.

i) Recognition and Initial Measurement

Financial liabilities are initially recognized when the Company
becomes a party to the contractual provisions of the
instrument.

Financial Liability is initially measured at fair value plus,
for an item not at fair value through profit and loss, net
of transaction costs that are directly attributable to its
acquisition or issue.

ii) Classification and Subsequent Measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through Profit or Loss
(FVTPL)

Financial liabilities at FVTPL include financial liabilities held
for trading and financial liabilities designated upon initial
recognition as at FVTPL. Financial Liabilities at FVTPL are
measured at fair value and changes therein, including any
interest expense, are recognised in Statement of Profit
and Loss.

Financial liabilities at amortised cost

After initial recognition, financial liabilities other than those
which are classified as FVTPL are subsequently measured
at amortised cost using the EIR method. Amortised cost is
calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in
the Statement of Profit and Loss.

iii) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation
specified in the contract is discharged, cancelled or expired.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such
an exchange or modification is treated as de-recognition
of the original liability and recognition of a new liability. The
difference in the respective carrying amounts is recognised
in the Statement of Profit and Loss.

i) Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

j) Offsetting Financial Instruments

Financial assets and liabilities are offset, and the net amount
is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or realise the
asset and settle the liability simultaneously.

The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course
of business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

k) Impairment

a. financial assets

In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on the financial asset
measured at amortized cost.

Loss allowances on trade receivables are measured following
the ''Simplified Approach'' at an amount equal to the Lifetime
ECL at each reporting date. The Company uses a provision
matrix to determine impairment loss allowance on the

portfolio of trade receivables. The provision matrix is based
on its historically observed default rates over the expected
life of the trade receivable and is adjusted for forward looking
estimates. At every reporting date, the historical observed
default rates are updated and changes in the forward¬
looking estimates are analysed.

In respect of other financial asset, the loss allowance is
measured at 12-month ECL only, if there is no significant
deterioration in the credit risk since initial recognition of an
asset or asset is determined to have a low credit risk at the
reporting date.

b. Impairment of Non-financial assets

The Company assesses at each reporting date, whether there
is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is
required, the Company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the higher of an
asset''s fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of
assets. When the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the
time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions
can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples,
quoted share prices for publicly traded companies or other
available fair value indicators.

c. Provisions

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 resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. The expense relating to a provision is presented
in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

l) Revenue Recognition

The Company recognizes revenue when control over the
promised goods or services is transferred to the customer
at an amount that reflects the consideration to which the
Company expects to be entitled in exchange for those
goods or services.

The specific recognition criteria described below must also
be met before revenue is recognised.

Sale of goods

The Company recognises revenue generally at the point in
time when the products are delivered to customer or when
it is delivered to a carrier for export sale, which is when
the control over product is transferred to the customer. In
contracts where freight is arranged by the Company and
recovered from the customers, the same is treated as a
separate performance obligation and revenue is recognized
when such freight services are rendered.

Revenue is adjusted for variable consideration such as
discounts, rebates, refunds, credits, price concessions,
incentives, or other similar items in a contract when they
are highly probable to be provided. The amount of revenue
excludes any amount collected on behalf of third parties.

Interest

Interest income including income arising on other
instruments are recognised on time proportion basis using
the effective interest rate method.

m) Employee benefits

a) Defined Contribution Plan

The Company pays provident fund contributions to publicly
administered provident funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid. The contributions
are accounted for as define contribution plan and the
contributions are recognised as employee benefit expense
when they are due.

b) Defined Benefit Plan

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

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

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

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the year in which they occur, directly in other
comprehensive income.

Changes in present value of the defined benefit obligation
resulting from plan amendments or curtailments are
recognised immediately in the statement of profit and loss
as past service cost.

c) Leave Entitlement

Leave entitlement are provided based on an actuarial
valuation, similar to that of gratuity benefit. Re-measurement,
comprising of actuarial gains and losses, in respect of leave
entitlement are recognised in the Statement of Profit and
Loss in the period in which they occur.

d) Short-term Benefits

Short-term employee benefits such as salaries, performance
incentives etc. are recognised as expenses at the
undiscounted amounts in the Statement of Profit and Loss
of the period in which the related service is rendered.

n) Taxation

i. Current Tax

The tax currently payable is based on taxable profit for the
year. Taxable profit differs from ''profit before tax'' as reported
in the statement of profit and loss because of items of
income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. The
Company''s current tax is calculated using rates that have
been enacted or substantively enacted by the end of the
reporting period.

ii. Deferred Tax

Deferred tax is recognized 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 are generally recognized for all taxable temporary
differences. Deferred tax assets are generally recognized for
all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which
those deductible temporary differences can be utilized.

The carrying amount of deferred tax asset is reviewed at the
end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

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 realized, based on tax rates
(and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount of
its assets and liabilities.

o) Earnings per Share

Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average number
of equity shares outstanding during the year is adjusted for
events of bonus issue, if any.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.

The number of equity shares are adjusted retrospectively for
all periods presented for any bonus shares issues.

p) Cash Flow Statement

Cash flows are reported using the indirect method, whereby
profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and item of
income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

q) Trade Payables & Trade Receivables

A payable is classified as a ''trade payable'' if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. These amounts
represent liabilities for goods and services provided to the
Company prior to the end of the financial year which are
unpaid. These amounts are unsecured and are usually settled

as per the payment terms stated in the contract. Trade and
other payables are presented as current liabilities unless
payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value and
subsequently measured at amortised cost using the EIR
method.

r) A receivable is classified as a ''trade receivable'' if it is in
respect of the amount due on account of goods sold or
services rendered in the normal course of business. Trade
receivables are recognised initially at transaction values and
subsequently measured at amortised cost using the EIR
method (if there is a financing element), less provision for
expected or lifetime credit loss.

s) Segment Reporting

Based on ” Management Approach ”as defined in Ind AS 108
-Operating Segments the chief operating decision maker
regularly monitors and reviews the operating results of the
whole Company as one segment of "Agro Chemicals". Thus,
as defined in Ind AS 108, the Company''s entire business
falls under this one operational segment and hence the
necessary information has already been disclosed in the
Balance Sheet and the Statement of Profit and Loss. The
analysis of geographical segments is based on the areas in
which customers of the Company are located.

a) The securities premium is used to record the premium on issue of equity shares. The reserve is utilised in accordance
with the provision of the Companies Act, 2013.

b) The General Reserve is used from time to time to transfer profits from related earnings for appropriation purpose.
As the General Reserve is created by a transfer from one component of equity to another and not an item of other
comprehensive income, items included in the general reserve is not reclassified subsequently to the statement of Profit
and Loss.

c) The retained earnings comprise of surplus which is used from time to time to transfer profits by approprations. Retained
earnings is free reserve of the Company and is used for the purpose like issuing bonus shares, buy back of shares and other
purposes (like declaring dividend etc.) as per the approval of the Board of Directors. It includes the remeasurements of
defined benifit plan as per acturial valuations which will not be re-classfied to statement of profit and loss in subsequent
periods.

Gratuity is a defined benefit plan and Company is exposed

to the Following Risks:

1. Salary Risk: The present value of the defined benefit
plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary
of the members more than assumed level will increase
the plan''s liability.

2. Interest rate risk: A fall in the discount rate which is
linked to the G.Sec. Rate will increase the present value
of the liability requiring higher provision. A fall in the
discount rate generally increases the mark to market
value of the assets depending on the duration of asset.

3. Investment Risk: The present value of the defined
benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at
the end of the reporting period on government bonds.

If the return on plan asset is below this rate, it will create
a plan deficit. Currently, for the plan in India, it has a
relatively balanced mix of investments in government
securities, and other debt instruments.

4. Asset Liability Matching Risk: The plan faces the ALM
risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962,
this generally reduces ALM risk.

5. Mortality risk: Since the benefits under the plan is not
payable for life time and payable till retirement age only,
plan does not have any longevity risk.

6. Concentration Risk: Plan is having a concentration
risk as all the assets are invested with the insurance
Company and a default will wipe out all the assets.
Although probability of this is very less as insurance
companies have to follow regulatory guidelines.

32. i n the opinion of the Board of Directors, all assets other than Property, Plant & Equipment and non-current investments
have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the
Balance Sheet.

33. DISCLOSURE IN ACCORDANCE WITH IND AS - 108 “OPERATING SEGMENTS", OF
THE COMPANIES (INDIAN ACCOUNTING STANDARDS) RULES, 2015.

Ind AS 108 establishes standards for the way that business enterprises report information about operating segments and
related disclosures about products and services, geographic areas, and major customers. As the Company is engaged in
providing similar nature of products, production process, customer types etc., the Company has a single operating segment
of ”Agro chemicals”, there are no differing risks and returns attributable to the Company''s services to its customers.

The Company has sold 95% of its total sales to a single customer.

34. RELATED PARTY TRANSACTIONS

Disclosure in accordance with Ind AS - 24 "Related Party Disclosures”, of the Companies ( Indian Accounting Standards)
Rules, 2015.

The management assessed that fair value of cash and short¬
term deposits, trade receivables, trade payables, and other
current financial assets and liabilities at amortised cost
approximate their carrying amounts largely due to the short¬
term maturities of these instruments.

36. FAIR VALUE HIERARCHY

This section explains the judgments and estimates made
in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b)
measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication
about the reliability of the inputs used in determining fair
value, the Company has classified its financial instruments
into the three levels prescribed under the accounting

standard. An explanation of each level follows underneath
the table.

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

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

Level 3: Inputs for the assets or liabilities that are not based
on observable market data (unobservable inputs).

The following table presents the fair value measurement
hierarchy of financial assets and liabilities measured at fair
value on recurring basis as at March 31, 2025 and March
31, 2024.

37. FINANCIAL RISK MANAGEMENT

Risk management framework:

The Company''s activities expose it to a variety of financial
risks: market risk, credit risk and liquidity risk. The Company''s
senior management oversees management of these risks.
The Company''s focus is to foresee the unpredictability of
financial markets and seek to minimize potential adverse
effects on its financial performance.

i) Market Risk

a. Foreign currency risk

Currency risk is the risk that the value of a financial instrument
will fluctuate due to changes in foreign exchange rates. The
Company is not exposed to currency risk as at March 31,
2025.

b. Interest rate risk

The Company is not exposed to Interest risk as at March 31,
2025.

ii) 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. Credit risk
is managed through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the
normal course of business.

Trade and Other Receivables:

The Company measures the expected credit loss of trade
receivables based on historical trend, industry practices
and the business environment in which the entity operates.
Based on the historical data of defaults and financial position
of parties, chances of credit losses are minimal.

iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter
difficulty in raising funds to meet commitments associated
with financial instruments. Liquidity risk management implies
maintaining sufficient cash and marketable securities and
the availability of funding through committed credit facilities
to meet the obligations when due.

Management monitors rolling forecasts of the Company''s
liquidity position and cash and cash equivalents on the basis
of expected cash flows. The Company manages its liquidity
risk by preparing month on month cash flow projections to
monitor liquidity requirements.

38. CAPITAL MANAGEMENT

Capital includes equity attributable to the equity holders
to ensure that it maintains an efficient capital structure
and healthy capital ratios in order to support its business
and maximize shareholder value. The Company manages
its capital structure and makes adjustments to it, in
light of changes in economic conditions or its business
requirements. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares.

Since there are no Borrowings as at March 31,2025, the Net
Debt to Capital (Gearing Ratio) is NIL.

39. RELATIONSHIP WITH STRUCK OFF
COMPANIES

The information about transaction with struck off Companies
(defined under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956) has been determined
to the extent such parties have been identified on the basis
of the information available with the Company and the same
is relied upon by the auditors.

40. ANALYTICAL RATIOS

Analytical Ratios as per requirements of Schedule III are
given in Statement 2.

41. AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) by the Companies
(Accounts) Amendment Rules 2021 and vide notification
dated 24 March 2021 has issued the "Companies (Audit and
Auditors) Amendment Rules, 2021 has prescribed a new
requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted requiring
companies, which uses accounting software for maintaining
its books of account, shall use only such accounting
software which has a feature of recording audit trail of each
and every transaction, creating an edit log of each change
made in the books of account along with the date when
such changes were made and ensuring that the audit trail
cannot be disabled.

As required under above rules, the Company uses, Tally
Prime which has an audit Trail feature w.e.f July 23, 2024.
The previous version of the accounting software did not
have the feature of audit trail. Further, for the periods that
the audit trail was enabled (with effect from July 23, 2024)
and operated as aforesaid, the same has been maintained
without any tampering and preserved by the Company in
compliance with the applicable statutory requirements for
record retention.

42. The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement of
material accounting policy information and the other explanatory notes forms an integral part of the financial statements of
the Company for the year ended March 31, 2025.

43. Previous year''s figures have been regrouped, wherever necessary, to confirm to current year''s classification.

As per our report of even date attached

For Natvarlal Vepari & Co LLP For & on behalf of the Board of Directors

(Formerly known as Natvarlal Vepari & Co.) Daikaffil Chemicals India Limited

Chartered Accountants
Firm Registration No. 106971W/W101085

N Jayendran R.K Shetty S. K. Shetty

Partner Managing Director Chairman

Membership No. 040441 DIN: 00038703 DIN: 00038681

Place: Mumbai Raunak R Shetty Jay C Patel

Date: May 21, 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

xvii) Provisions, Contingent Liabilities and Contingent Assets

Provisions

Provisions are recognised when, based on Company''s present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised 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. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent Liabilities and Assets

Show-cause notices issued by various Government Authorities are generally not considered as obligations. When the demand notices are raised against such show cause notices and are disputed by the Company, these are classified as disputed obligations.

The treatment in respect of disputed obligations are as under:

a) a provision is recognized in respect of present obligations where the outflow of resources is probable;

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow of resources is remote.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts and reviewed at each balance sheet date to reflect the current management estimate.

Estimated amount of contracts remaining to be executed on capital account are considered for disclosure.

A contingent asset is disclosed where an inflow of economic benefits is probable.

3. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the acCompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management''s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Key estimates, assumptions and judgements

In particular, the Company has identified the following areas where significant judgements, estimates and assumptions are required. Further information on each of these areas and how they impact the various accounting policies are described below and also in the relevant notes to the financial statements. Changes in estimates are accounted for prospectively.

(i) Income taxes

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions as also to determine the amount of deferred tax that can be recognised, based upon the likely timing and the level of future taxable profits.

(ii) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/Intangible Assets are depreciated/ amortised over their estimated useful lives, after taking into account estimated residual value. The useful lives and residual values are based on the Company''s historical experience with similar assets and taking into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/ amortisaion for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortised/depreciable amount is charged over the remaining useful life of the assets.

(iii) Contingent Liabilities

In the normal course of business, Contingent Liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the Notes but are not recognised. Potential liabilities that are remote are neither recognised nor disclosed as contingent liability. The management decides whether the matters need to be classified as ''remote'', ''possible'' or ''probable'' based on expert advice, past judgements, experiences etc.

(iv) Allowance for impairment of trade receivables

The expected credit loss is mainly based on the ageing of the receivable balances and historical experience. The receivables are assessed on an individual basis assessed for impairment or collectively, depending on their significance. Moreover, trade receivables are written off on a case-to-case basis if deemed not collectible on the assessment of the underlying facts and circumstances.

(v) Provisions

Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

15.3 Rights,preferences and restrictions attached to Shares

The Company has only one class of equity shares having par value of ''10 each and the holder of the equity share is entitled to one vote per share.

The Company has only one class of equity shares having a par value of ''10/- per share. Each holder of equity shares is entitled to one vote per share. Any dividend declared by the Company shall be paid to each holder of Equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

16.2 Securities Premium is used to record the premium on issue of equity shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

16.3 The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve is not reclassified subsequently to the Statement of Profit and Loss.

16.4 The retained earnings comprises of surplus which is used from time to time to transfer profits by appropriations. Retained earnings is free reserve of the Company and is used for the purposes like issuing bonus shares, buy back of shares and other purposes (like declaring Dividend etc.) as per the approval of Board of Directors. It includes the re-measurement of defined benefit plan as per actuarial valuations which will not be re-classified to statement of profit and loss in subsequent periods.

16.5 The Revaluation Reserve represents cumulative increase or decrease in the carrying value of a Company''s property plant and equipments to account for any major changes in their fair market value.

NOTE 37: COMMITMENTS

Estimated amount of contract remaining to be executed on capital Account and not provided for ''NIL (P.Y. ''NIL)

NOTE 38: EMPLOYEE BENEFITS

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

The Company makes Contribution to Provident fund and employees pension scheme to Defined Contribution plan for qualifying employees. Under the schemes the Company is required to contribute a speciified percentage of the payroll costs to fund the benefits.

The Provident Fund is operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll costs to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

B. Defined Benefit Plans

a) The Company offers the following employee benefit scheme to its employees

i) Gratuity

The Company operates a gratuity plan covering qualifying employees. Under the gratuity plan, the eligible employees are entitled to post retirement benefit at the rate of 15 days salary for each year of service until the retirement age of 60, subject to a payment ceiling of ''20 lakhs. The benefit vests upon completion of five years of continuous service as per "The Payment of Gratuity Act” and once vested it is payable to the employee on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

ii) Other Defined Benefit plans (Compensated Absences)

The obligations under the compensated absences plan have been determined by Independent Actuary using Projected Unit Credit (PUC) method. Compensated absences is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

Gratuity is defined benefit plan and Company is exposed to following Risks:

Interest Risk:

A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Mortality Risk:

Since the benefits under the plan is not payable for the life time and payable till retirement age only, plan does not have any longevity risk.

C. The Company offers the following employee benefits scheme to its employees

a. Gratuity (Partly funded through annual payment to Life insurance corporation of India and balance provided in books).

The Company has recognised full unfunded gratuity obligation at balance sheet date due to temporary shutdown and the retrenchment of factory workers. With the withdrawal of closure and reinstatement of workers, the Company has decided not to conduct an actuarial valuation at this stage. The Company will retain the excess liability on its balance sheet until normal factory operations regularise.

b. Compensated absences encashment (Partly funded through annual payment to Life insurance corporation of India and balance provided in books).

NOTE 39: DISCLOSURES ON FINANCIAL INSTRUMENTS

This Section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.

(a) Financial assets and liabilities:

The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at March 31, 2024 and March 31,2023.

(b) Capital management

For the purpose of the Company''s Capital Management, Capital includes issued Equity Capital, share premium and all Other Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Company''s Capital Management is to maximise the shareholders'' value. The Company''s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximise shareholder''s value. The capital structure of the Company as at 31^st March, 2022 consists of no debt, equity comprising issues capital and reserves.

(c) Financial risk management:

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Company''s Board. The Company''s principal financial liabilities comprise of trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations in selective instances. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk, liquidity risk etc. The objectives of the Company''s financing policy are to secure solvency, limit financial risks and optimise the cost of capital.

(a) Market risk:

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices-will affect the Company''s income or the value of its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The major components of market risk are foreign currency risk, interest rate risk and price risk.

(I) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.

Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD and Euro. The Company enters in to contracts with terms up to 90 days.

Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

(II) Interest rate risk:

Interest rate risk is the risk that the fair value of future cashflows of a financial instrument will fluctuate because of change in market interest rate. The Company does not have significant floating interest rate borrowings during the year ended March 31,2022 and March 31,2021. Hence the Company is not exposed to significant interest rate risk as at the resepctive floating dates.

(b) Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing

with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company. Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments in equity instruments and trade receivables.

None of the financial instruments of the Company result in material concentrations of credit risks, which may result into financial loss for the Company.

(c) Liquidity risk:

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

NOTE 41:

Due to manufacturing orders drying up and as a result, the costs becoming higher than the revenue, the Company has incurred losses. To restrict any further erosion of capital due to the losses, the management has undertaken certain cost saving measures and discontinued certain services. The management decided to undertake a planned shutdown of the factory in 202122 so that the fixed cost of plant is saved. The manufacturing operations has been shut down from end of November, 2021 and certain workers/labourers were retrenched. During the previous quarter, the Management had filed an application with labour court withdrawing of closure of plant operations and reinstating workers along with payment of their back wages and additional claims if any. The Management of the Company have entered in Memorandum of Settlment on 22^nd February 2024 with Workmen employed represented by Shramik Utkarsh Sabha towards full & final settlment of their dues during closure of factory. The Compnay has paid settlment amount as agreed and adequate provisions are made for outstanding liabilities in terms of said agreement. The plant operations will resume shortly in consultation with the Acquirer. The Company''s liquidity

position is very healthy and its liquid assets are far higher than its liabilities. In light of above, the Company does not envisage any threat to going concern status of the Company and hence, the financial results have been prepared on going concern basis.

NOTE 42:

The Company has sought balance confirmations from trade receivables and trade payables, wherever such balance confirmations are received by the Company, the same are reconciled and appropriate adjustments if required, are made in the books of account.

NOTE 43:

Previous year''s figures have been regrouped, wherever necessary, to confirm to current year''s classification.

NOTE 44: APPROVAL OF FINANCIALS STATEMENTS

The Financial Statements were approved for issue by the Board of Directors on May 25, 2024.

As per our report of even date attached For and on behalf of the Board of Directors

For NGST & Associates Sadashiv K. Shetty Sunil Shedge

Chartered Accountants Chairman Chief Financial Officer

Firm''s Registration No.:135159W DIN: 00038681 PAN No.: AEGPS7390B

Bhupendra Gandhi Raghuram Shetty Alesha Hakim Khan

Partner Managing Director Company Secretary

Membership No.:122296 DIN: 00038703 Membership No.: A55659

Place: Mumbai Place: Mumbai

Date: May 25, 2024 Date: May 25, 2024

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Mar 31, 2017

1. Terms/ Rights attached to the Shares :

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

In the event of Liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferred amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2: Related party Disclosure

3. Name of the Related party and nature of relationship

4. Associate Enterprises

- M/s Caffil Private Limited

- M/s Amichem

- M/s Erca Specialty Chemicals Pvt. Ltd

5. Key Management Personnel

- Mr. Amit Patel (Managing Director)

- Mr. Aditya Patel (Joint Managing Director)

6. Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs.1.25 Cr. (P.Y.Rs. 1.50 Cr.)

7. The records of the ROC shows an open charges on the assets of the company of Rs.40.00 lakhs of Dena Bank. The said charge has been closed by the Company but the same has get not been cancelled by Dena Bank. The Company has been vigoverosuly following up with the said Bank to complete the cancellation.

8 : Consolidated financial statement

The Company has one Associate concern,M/s. Erca Specialty Chemicals Private Ltd., The Accounts of the said Associate have been consolidated with standalone financial and part and parcel of this statement.

Note : The above information has been compiled by the company on the basis of information made available by vendors during the year 2012

9: The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

10: Sundry Debtors and Loans and Advances are subject to confirmation.

11: Segment Information has not been given as the Company does not have any segment.

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Mar 31, 2016

Note 1 : Related party Disclosure

2. Name of the Related party and nature of relationship

3. Associate Enterprises

4- M/s Caffil Private Limited

4- M/s Amichem

6- M/s Erca Specialty Chemicals Pvt. Ltd

7. Key Management Personnel

8- Mr. Amit Patel (Managing Director)

9- Mr. Aditya Patel (Joint Managing Director)

Note 10 : Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs.1.50 CR. (P.Y.Rs. 25 Lakhs)

Note 11 :

The records of the ROC shows an open charges on the assets of the Company of Rs. 40.00 lakhs of Dena Bank. The said charge has been closed by the Company but the same has get not been cancelled by Dena Bank. The Company has been vigoverosuly following up with the said Bank to complete the cancellation.

Note 12 : Consolidated financial statement

The Company has one Associate concern,M/s. Erca Speciality Chemicals Private Ltd., The Accounts of the said Associate have been consolidated with standalone financial and part and parcel of this statement.

Note 13: The above information has been compiled by the Company on the basis of information made available by vendors during the year 2012

Note 14 : The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

Note 15 : Sundry Debtors and Loans and Advances are subject to confirmation.

Note 16: Segment Information has not been given as the Company does not have any segment.

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Mar 31, 2015

Note 1: As per requirement of Companies Act, 2013, the Company has re-assessed the remaining useful life of the fixed assets taking into consideration the useful life prescribed in Schedule II of the Act. This has resulted in lower charge of depreciation of Rs. 23.60 lacs for the year. Further the written down value of the Assets of Rs. 18.72 Lacs as on 1st April, 2014, whose residual life is exhausted, has been adjusted against Reserves and Surplus.

Note 2: Related party Disclosure

I) Name of the Related party and nature of relationship

A. Associate Enterprises

- M/s Caffil Private Limited

- M/s Amichem

- M/s Erca Speciality Chemicals Pvt. Ltd ( Joint Venture Company)

B. Key Management Personnel

- Mr. Amit Patel (Managing Director)

- Mr. Aditya Patel (Joint Managing Director)

* Excluding Provision for Gratuity & Leave encashment as the acturial valuation is done on the overall Company basis

Note 3: Contingent Liabilities

PARTICULARS As at As at 31/03/2015 31/03/2014

1 Outstanding Letters of Credit 1,159,152 8,494,584

2 Outstanding Bank Guarantee 1,850,000 1,700,000

3,009,152 10,194,584

Note 4 : Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs.25 Lakhs (P.Y. Rs. 100 Lakhs)

Note 5 : Disclosure of Interest in Joint Venture / Associate.

Details of Company's interest in its Joint Venture, having joint control, as per the requirement of Accounting Standard (AS) - 27 on "Financial Reporting of Interest in Joint Ventures" notified under the Companies (Accounting Standard) Rules, 2006, are as under:

Note 6 : Consolidated finanacial statement

The Company has one Joint Venture / Associate concern..M/s. Erca Speciality Chemicals Private Ltd., The Company is exempted from preperation of consolidated financial statement under rule 6 of the companies (Accounts) Rules 2014 as amended by Notication dated 14th October 2014.

Note : The above information has been compiled by the Company on the basis of information made available by vendors during the year 2012

Note : 7 The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

Note : 8 Sundry Debtors and Loans and Advances are subject to confirmation.

Note : 9 Segment Information has not been given as the Company does not have any segment.

Note : 10 Earnings per Share as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 23rd Annual General Meeting of the Company, to be held on Friday, the 21st day of August, 2015 at 10.00 A.M. at Plot No.E-4, M.I.D.C. Tarapur, Boisar, Dist: Palghar - 401 506 and at any adjournment thereof in respect of such resolutions as are indicated below:

Note : This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

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Mar 31, 2014

Note 1:

Related party Disclosure

I) Name of the Related party and nature of relationship

A. Associate Enterprises

- M/s Caffil Private Limited

- M/s Amichem

- M/s Erca Speciality Chemicals Pvt. Ltd (Joint Venture Company)

B. Key Management Personnel

- Mr. Sishir Amin (Managing Director)

- Mr. Amit Patel (Executive Chairman)

- Mr. Aditya Patel (Joint Managing Director)

Note 2:

Contingent Liabilities

PARTICULARS As at As at 31/03/2014 31/03/2013

1 Esti mated amount of Arrears on account of revision of Wages for Factory workers pending settlement with the Union - -

2 Outstanding Letters of Credit 8,494,584 5,276,688

3 Outstanding Bank Guarantee 1,700,000 25,000

10,194,584 5,301,688

Note 3: Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs. 100 Lakhs (P.Y. Rs. 100 Lakhs)

Note 4:

The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

Note 5:

Sundry Debtors and Loans and Advances are subject to confirmation.

Note 6:

Segment Information has not been given as the Company does not have any segment.

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Mar 31, 2013

Note 1:

Related party Disclosure

I) Name of the Related party and nature of relationship

A. Associate Enterprises

- M/s Caffil Private Limited

- M/s Amichem

- M/s Erca Speciality Chemicals Pvt. Ltd (Joint Venture Company)

B. Key Management Personnel

- Mr. Sishir Amin (Managing Director)

- Mr. Amit Patel (Executive Chairman)

- Mr. Jayant Patel (Expired on 1-6-2012)

- Mr. Aditya Patel (Appointed on 14-08-2012)

Note 2: Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs. 100 Lakhs (P.Y.Rs. 100 Lakhs)

Note 3:

Disclosure of Interest in Joint Venture

Details of Company''s interest in its Joint Venture, having joint control, as per the requirement of Accounting Standard (AS) - 27 on "Financial Reporting of Interest in Joint Ventures" notified under the Companies (Accounting Standard) Rules, 2006, are as under:

Note 4 :

The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

Note 5 :

Sundry Debtors and Loans and Advances are subject to confirmation.

Note 6 :

Segment Information has not been given as the Company does not have any segment.

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Mar 31, 2012

A) Terms/ Rights attached to the Shares :

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

In the event of Liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferred amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* Based on the information available with the Company in respect of Micro, Small & Medium Enterprises (as defined in The Micro, Small & Medium Enterprises, Development Act, 2006'). The Company is generally regular in making payments of dues to such enterprises. Hence the question of payment of interest or provision therefore towards belated payments does not arise.

# As at the year end there is no amount due for payment to the Investor Education & Protection Fund under Section 205C of the Companies Act, 1956.

* As required by Accounting Standard 15 Employees Benefits (AS-15), the disclosures are as under:

A) Defined Contribution Plans

a) The company makes Contribution to Provident fund and employees pension scheme to Defined Contribution plan for qualifying employees. Under the schemes the company is required to contribute a specified percentage of the payroll costs to fund the benefits

The principle plan assets consists of a scheme of insurance taken by the trust, which is a qualifying policy. Breakdown of individual investments that comprise the total plan assets is not supplied by the insurer '

Note 1:

Related party Disclosure

I) Name of the Related party and nature of relationship

A. Associate Enterprises

- M/s Caffil Private Limited

- M/sAmichem

- M/s Erca Specialty Chemicals Pvt. Ltd (Joint Venture Company)

B. Key Management Personnel

- Mr. Sishir Amin (Managing Director)

- Mr. Amit Patel (Executive Chairman)

- Mr. Jayant Patel (Expired on 1-6-2012)

- Mr. Aditya Patel (Appointed on 14-08-2012)

Note 2:

Commitments

Estimated amount of contract remaining to be executed on capital Account and not provided for Rs. 100 Lakhs (P.Y.Rs. 100 Lakhs) Note 30:

Disclosure of Interest in Joint Venture

Details of Company's interest in its Joint Venture, having joint control, as per the requirement of Accounting Standard (AS) -27 on "Financial Reporting of Interest in Joint Ventures" notified under the Companies (Accounting Standard) Rules, 2006, are as under:

Note 3 :

The Company has not made provision for impairment, if any, in the carrying amount of assets as the same is not ascertained.

Note 4 :

The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

Note 5:

Sundry Debtors and Loans and Advances are subject to confirmation.

Note 6:

Segment Information has not been given as the Company does not have any segment.

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Mar 31, 2010

1) The Company has not made provision for impairment, if any, in the carrying amount of assets as the same is not ascertained.

2) Estimated amount of contract remaining to be executed on capital Account and not provided for Rs.100 Lakhs (P.Y.Rs. 100 Lakhs)

3) The stock in trade at the year end is as per inventories taken, valued and certified by the management.

4) Depreciation provided in the accounts is calculated on the straight line method basis as per the provisions of section 205(2)(e) of the Companies Act 1956 at the rates specified in schedule XIV of the said Act.

5) The excise duty payable if any on finished goods held in the factory is neither included in expenditure nor valued in such stock but is accounted for on clearance of goods from factory. This accounting treatment has no impact on profits.

6) Sundry Debtors and Loans and Advances are subject to confirmation.

7) Contingent Liabilities not provided for : Rs. Nil (P.Y. Rs. Nil)

8) The Company has not received any information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given.

9) Segment Information has not been given as the Company does not have any Segment.

10) Basic and diluted earning per share has been calculated by dividing net profit after taxation for the year by 60,00,000 (60,00,000) equity shares of nominal value of Rs.10/- each outstanding as on March 31, 2010