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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Dynamic Industries Ltd.

Mar 31, 2025

2.2.7 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. If the effect of the time value of money is material, provisions are discounted using a current pre tax rates
that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

A provision for onerous contract is recognized when the expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is
measured at the present value of the lower of the expected cost of terminating the contract and the expected net
cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss
on the assets associated with the contract.

Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor
disclosed in the financial statements.

2.2.8 Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are 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. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.

The Company has generally concluded that it is the principal in its revenue arrangements, because it typically
controls the goods or services before transferring them to the customer.

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

Sale of Goods

(i) Revenue is recognised when control of goods is transferred to a customer in accordance with the terms of the
contract. The control of the goods is transferred upon delivery to the customers either at factory gate of the
Company or specific location of the customer or when the goods are handed over to the freight carrier, as per
the terms of the contract. A receivable is recognised by the Company when the goods are delivered to the
customer as this represents the point in time at which the right to consideration becomes unconditional, as
only the passage of time is required before payment is due.

(ii) The Company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax/
GST in the year of admission of such claims by the concerned authorities.

(iii) Export benefits are classified as other operating income and recognized on accrual basis in the year of export
based on eligibility and when there is no uncertainty on receiving the same.

Interest Income

Interest income is recognised using the effective interest method as set out in Ind AS 109 - Financial Instruments:
Recognition and Measurement, when it is probable that the economic benefits associated with the transaction will
flow to the Company and the amount of the revenue can be measured reliably. The effective interest method is a
method of calculating the amortised cost of a financial asset or a financial liability and of allocating the interest
income or interest expense over the relevant period.

2.2.9 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.

(i) Right-of-use assets

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

If ownership of the leased asset transfers to the company at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-
of-use assets are also subject to impairment. Refer to the accounting policies in 4.6(b) Impairment of nonÂ¬
financial assets.

(ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company and payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are
recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset. Lease liabilities has been presented under the
head âOther Financial Liabilitiesâ.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption that are considered to be low
value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.

2.2.10 Foreign Currency Translation

The functional currency of the Company is the Indian Rupee (''). In preparing the financial statements of the
Company, transactions in currencies other than the entity''s functional currency are recognised at the rate of
exchange prevailing at the date of the transactions. At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the Statement of profit and loss in the period in which
they arise except for:

(i) exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets when they are regarded as an adjustment to
interest costs on those foreign currency borrowings;

(ii) exchange differences arising from translation of long-term foreign currency monetary items recognised in the
financial statements of the Company for the period immediately before the beginning of the first Ind AS
financial reporting period (prior to 1^st April, 2016), as per the previous GAAP, pursuant to the Company''s choice
of availing the exemption as permitted by Ind AS 101.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not
retranslated.

Income and expense items in foreign currency are translated at the average exchange rates for the period, unless
exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the
transactions are used.

2.2.11 Borrowing Costs

Borrowing costs include

(i) interest expense calculated using the effective interest rate method,

(ii) finance charges in respect of finance leases, and

(iii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are a
ssets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

2.2.12 Employee benefits

(a) Short-term obligations

Liabilities for salaries, including other monetary and non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees'' services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee
benefit obligations in the balance sheet.

(b) Post-employment obligations

The Company operates the following post-employment schemes: a) defined contribution plans - provident
fund b) defined benefit plans - gratuity plans

(i) Defined contribution plans

The Company has defined contribution plan for the post-employment benefits namely Provident Fund
and Employees Death Linked Insurance, the contributions towards such funds and schemes are
recognised as employee benefits expense and charged to the Statement of Profit and Loss when they
are due. The Company does not carry any further obligations with respect to this, apart from
contributions made on a monthly basis.

(ii) Defined benefit plans

The Company has defined benefit plan, namely gratuity for eligible employees in accordance with the
Payment of Gratuity Act, 1972 the liability for which is determined on the basis of an actuarial valuation
(using the Projected Unit Credit method) at the end of each year.

The present value of the defined benefit obligation 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 tenor of the related obligation. The liability or asset recognized in the
balance sheet in respect of gratuity is the present value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets.

The service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements) is recognised in the Statement of profit and loss in the line item
âEmployee benefits expense''.

Remeasurements of the net defined liability, comprising of actuarial gains and losses, return on plan assets
(excluding amounts included in net interest on the net defined benefit liability) and any change in the effect of asset
ceiling (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in
the balance sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income
(OCI) in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

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

2.2.13 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from âprofit 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 tax rates that have been enacted or substantively enacted by the end of the reporting period.

(ii) Deferred Tax

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 are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised 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 utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition of assets and
liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets 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 realised, 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.

(iii) Current and deferred tax for the year

Current and deferred tax are recognised in the Statement of profit and loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where
current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is
included in the accounting for the business combination.

2.2.14 Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to the ordinary shareholders of the company by the weighted
average number of ordinary shares outstanding during the period. Where ordinary shares are issued but not fully
paid, they are treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent
that they were entitled to participate in dividends during the period relative to a fully paid ordinary share. Diluted
earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

2.2.15 Fair Value Measurement

A number of Company''s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair value is the price that would be received on sell of an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair
value measurement assumes 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 market or the most advantageous market must be accessible to the Company.

The fair value of an asset or 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''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would 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 based on the lowest level input that is significant to the fair value measurement as a
whole. The fair value hierarchy is described as below:

(a) Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities.

(b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly or indirectly.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period.

2.2.16 Current / non- current classification

An asset is classified as current if:

(a) it is expected to be realized or sold or consumed in the Company''s normal operating cycle;

(b) it is held primarily for the purpose of trading;

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current if:

(a) it is expected to be settled in normal operating cycle;

(b) it is held primarily for the purpose of trading;

(d) it has no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

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

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

3 : Significant accounting judgments, estimates and assumptions

The preparation of financial statements in conformity with Ind AS requires the management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income
and expense during the period. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. However, uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in
future periods.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognized in the periods in which the estimates are revised and in future periods which are affected.

Critical Accounting Estimates and Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have
the most significant effect on the amounts recognised in the financial statements.

(i) Contingences and Commitments

In the normal course of business, contingent liabilities may arise from litigations and other claims against the
Company. Where the potential liabilities have a low probability of crystallising or are very difficult to quantify reliably,
such liabilities treated are as contingent liabilities. Such liabilities are disclosed in the notes but are not provided for
in the financial statements. Although there can be no assurance regarding the final outcome of the legal
proceedings, the management do not expect them to have a materially adverse impact on our financial position or
profitability.

(ii) Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgment is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

(iii) Employee Benefits

Discount rate used to determine the carrying amount of the Company''s defined benefit obligation.

The cost of defined benefit plan is determined using actuarial valuations. The actuarial valuation involves making
assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and
future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant
uncertainty.

In determining the appropriate discount rate for plans operated in India, the management considers the interest
rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

(iv) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to
these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. Estimated irrecoverable amounts are based on the ageing of the
receivable balance and historical experience. Individual trade receivables are written off when management deems
it not to be collectible.

(v) Allowance for uncollectible trade receivables

Provision matrix takes into accounts historical credit loss experience and adjusted for forward looking information.
The expected credit loss allowance is based on the ageing of the day of the receivables are due and the rates as
given in the provision matrix.

(vi) Impairment of Property, Plant & Equipment

The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cashÂ¬
generating unit and a suitable discount rate in order to calculate present value. Where the actual future cash flows
are less than expected, an impairment loss which is material in nature is accounted for.

(vii) Litigations

The provision is recognized based on the best estimate of the amount desirable to settle the present obligation
arising at the reporting period and of the income is recognized in the cases involving high degree of certainty as to
realization.

(viii) Useful Life of Property, Plant and Equipment

As described in Note 4.3, the Company reviews the estimated useful lives and residual values of property, plant and
equipment at the end of each reporting period. During the current financial year, the management determined that
there were no changes to the useful lives and residual values of the property, plant and equipment.

17.2 : Note

During the period of five financial years immediately preceding the Balance Sheet date,

(i) The Company has not allotted any fully paidup equity shares by way of bonus shares;

(ii) The Company has not allotted any equity shares pursuant to any contract without payment being received in cash;

(iii) The company has not bought back any equity shares.

17.3 : Rights, Preferences and Restrictions

The Company has only class of equity shares having a par value of '' 10/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders
in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if
any, in proportion to their shareholding.

Notes :

1. General Reserve

General Reserve is a free reserve created by the Company by transfer from Retained earnings for appropriation
purposes. It Includes Revaluation reserve amounting to '' 1522.04/- Lacs Which is not available for distribution of
Profit.

2. Securities Premium

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance
with the provisions of the Companies, Act, 2013.

3. Retained Earnings (Includes Other Comprehensive Income)

The retained earnings reflect the profit of the Company earned till date net of appropriations. The amount that can be
distributed by the Company as dividends to its equity shareholders is determined based on the balance in this
reserve, after considering the requirements of the Companies Act, 2013.

4. Dividend

The company has paid dividend amounting to '' 15.14 Lacs during the year which pertains to the dividend declared in
previous year.

5. Equity Instruments through Other Comprehensive Income

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other comprehensive income, under an irrevocable option.

Note:

(i) In the Financial year 2008-2009 the Department of Excise and Customs had inspected certain records related to materials
imported under license removed for jobwork to various parties whose name did not appear in the license as job-worker or as
supporting manufacturer. The department had objected such removal and also observed that aforesaid materials have not been
returned back under job work challan from the above parties but under sales invoices. The department also seized certain records
related to job work for the Financial Year 2006-07 and 2007-08. The company had deposited a sum of '' 5.08 Lakhs under protest.
However based on legal opinion obtained from the excise consultant, the company has transferred the aforesaid deposit to PLA
under intimation to department concerned. After that the company has received an order on 28^th March, 2012 confirming the
demand of custom duty amounting to '' 85.57 Lakhs and penalty of '' 85.57 Lakhs under section 114A of the Custom Act
aggregating to '' 171.14 Lakhs and interest at applicable rates on the amount of duty evaded.

The company has filed an appeals and Honâble Tribunal has granted stay against aforesaid demand. The Custom Authority
against such stay has referred the matter to Honâble High court, Gujarat which is yet to be heard. Pending final outcome, the
company does not expect any liability and accordingly no provision in respect thereof has been made but disclosed the same as
contingent liability.

(ii) During the financial year 2023-24, the company had received demand order bearing no. 30/AC/Dynamic/DIV-II/AâBAD-
SOUTH/MU/2023-24 dated 9^th November, 2023, from Assistant Commissioner, Division II, CGST, Ahmedabad South to recover
the Input Tax Credit amounting to '' 144.04/- Lakhs utilized by the company and consequently claimed as refund of IGST paid on
the goods exported by the company and impose a penalty of '' 144.04/- Lakhs aggregating to total demand of '' 288.08/- Lakhs
under Section 74(1) of the Central Goods and Services Tax Act, 2017 and State Goods & Service Tax, 2017 read with the Section
20 of the IGST Act, 2017.

In the opinion of the Management and in accordance with professional advice received by the company from the consultant, the
said demand is not tenable and therefore the company was to file writ petition before the appropriate authority. Since, the Gujarat
Dyestuff Manufacturers Association (herein after referred to as âAssociationâ), of which the company is also a member, had filled
writ petition in connection with the similar demands raised on its members, the company did not opt to file a separate writ petition.
In response to associationâs writ petition the Honâble High Court of Gujarat had stayed recovery and coercive actions vide its order
dated 9th August, 2023. Subsequently, the company vide its letter dated 16th August, 2023, requested the appropriate authority to
drop the proceedings in the light of Honâble Hight Court of Gujaratâs stay order. Pending final outcome of such request and the
matter being sub-judice, the company has not recognised any liability for the demand raised and is in the process of obtaining
legal advice for the further course of actions. Accordingly, the company has considered the said demand as contingent in nature
and accordingly disclosed in the financial statements.

36 Employee benefits plan

36.1 Defined contribution plan

The Company has defined contribution plan in form of Provident Fund & Pension Scheme and Employee State Insurance
Scheme for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The total expense recognised in the Statement of profit and loss under employee benefit
expenses in respect of such schemes are given below :

e) Risk Exposure

Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed
below :

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform
this yield, this will create a deficit.

The gratuity fund is administered through Life Insurance Corporation of India (insurer) under its group gratuity
scheme. Accordingly, almost the entire plan asset investment is maintained by the insurer. These are subject to
interest rate risk which is managed by the insurer.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of
the plans'' assets maintained by the insurer.

The gratuity fund is administered through Life Insurance Corporation (LIC) of India under its Group Gratuity Scheme.

39 : Leases

The Company has entered into various Lease Arrangements for âLandâ for the purpose of factory building, which are âNonÂ¬
cancellableâ and thus, creates enforceable rights. The Company applied the standard on such Lease Arrangements and
recognised the âRight of Useâ.

Further, the Company, having already paid the upfront Lease rentals / premium at the time of execution of Lease Deed
which accounted for almost all the lease payments, does not owe any lease obligations under such lease arrangement and
accordingly âLease obligationsâ corresponding to âRight of Useâ asset are not recognised.

B. Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial
instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the
reliability of the inputs used in determining fair value, the Company has classified its financial investments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical
assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the
respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar
assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Companyâs policy is to recognize transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.

c) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

(i) The use of quoted market prices or mutual fund houses quotes (NAV) for such instruments. This is included in Level
1

d) Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank
balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term
nature. Difference between carrying amount of Bank deposits, other financial assets , borrowings and other financial
liabilities subsequently measured at amortised cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

42 Financial Risk Management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The board has established the Audit Committee, which is responsible for developing and
monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on
its activities.

The Company''s risk management policies are established to identify and analyses 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 reuect changes in market conditions and the Company''s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.

The 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.

(a) 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. The company is exposed to the credit risk from its trade receivables, unbilled
revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum
exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing
counterparty credit risk is to prevent losses in financial assets.

Cash and Cash Equivalents

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits
with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the
related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.

(b) 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 Companyâs 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
Companyâs reputation.

The Companyâs treasury maintains flexibility in funding by maintaining liquidity through investments in liquid funds
and other committed credit lines. Management monitors rolling forecasts of the groupâs liquidity position
(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash
flows.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will
affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.
The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the
market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities
and revenue generating and operating activities in foreign currency.

(i) Currency Risk

The Company is exposed to currency risk on account of foreign currency transactions including recognized
assets and liabilities denominated in a currency that is not the Company''s functional currency (¹ ), primarily in
respect of US$, and Euro. The Company ensures that the net exposure is kept to an acceptable level and is
remain a net foreign exchange earner.

Sensitivity Analysis

Any change with respect to strengthening (weakening) of the Indian Rupee against various currencies as at 31st
March, 2024 and 31st March, 2025 would have affected the measurement of financial instruments denominated in
respective currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that
all other variables, in particular interest rates.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates
relates primarily to the Company''s debt obligations with floating interest rates and investments

Most of the Company''s borrowings are on a floating rate of interest. The Company has exposure to interest rate
risk, arising principally on changes in Marginal Cost of Funds based Lending Rate (MCLR). The Company uses
a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to
day operations like short term credit lines besides internal accruals.

(iii) Price Risk
Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in
the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the
Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily
on account of interest rate risk. Net Asset Value of these investments are available from the mutual fund houses.
Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair
value through profit or loss.

The Company''s exposure to securities price risk arises from investments held in equity instruments and
classified in the balance sheet at fair value through other comprehensive income. To manage its price risk
arising from such investments, the Company diversifies its portfolio. Fair Value of these investments are
available from their respective stock exchanges. Other Comprehensive Income for the year would increase /
decrease as a result of gains / losses on these securities classified as at fair value through other comprehensive
income.

43 Other regulatory information

(a) Title deeds of immovable property

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

(b) Revaluation of property, plant and equipment (including right-of-use assets) and intangible assets

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible
assets during the year

The company has not granted any loans or advances to promoters, directors, KMP''s and the related parties.

(d) Fair Value of Investment Property

The Company does not own any immovable property which is classified as Investment property as at the end of the
year.

(e) Capital- work- in progress (CWIP)

Refer note 5 for detailed disclosure.

(f) Details of Benami Property held

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
there under.

(g) Borrowings obtained on the basis of security of current assets

The Company has been sanctioned working capital limits from banks on the basis of security of current assets. The
quarterly returns / statements filed by the Company with such banks are materially in agreement with the books of
accounts.

(h) Wilful Defaulter

The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.

(i) Relationship with Struck off Companies

The company does not have transactions with companies struck off under section 248 of the companies act, 2013 or
section 560 of the companies act, 1956.

(j) Registration of charges or satisfaction with registrar of companies (ROC)

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory
period.

(k) Compliance with number of layers of companies

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.

(l) Approved scheme of arrangements

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.

(m) Utilization of Borrowed funds and share premium :

(a) During the year, no funds have been advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) by the company to any other persons or entities, including
foreign entities with the understanding whether recorded in writing or otherwise that the Intermediary shall
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 provide any guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries.

(b) During the year, the company has not received any fund from any persons or entities, including foreign entities
(Funding Parties) with the understanding whether recorded in writing or otherwise that the company shall
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(n) Undisclosed Income

The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(o) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

44 Code on social security, 2020

The Code on Social Security, 2020 (âCode'') relating to employee benefits during employment and post- employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The company will assess the impact
of the Code when it comes into effect and will record any related impact after the Code becomes effective.

The company has received confirmation from suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The above-mentioned information has been compiled to
the extent of responses received by the company from its suppliers with regard to their registration under Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

Note 46 : Un-hedged Foreign Currency Exposure

The company does not enter into forward exchange contracts to hedge against its foreign currency exposures relating to
the underlying transactions and firm commitments. The company does not enter into any derivative instruments for
trading or speculative purposes.

47 Statement of Management

(a) The non current financial assets, current financial assets and other current assets are good and recoverable
and are approximately of the values, if realized in the ordinary courses of business unless and to the extent
stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount
reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with
Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies
Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year
and financial performance of the Company for the year under review.

48 The figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable

with the figures for the current year. Figures are rounded off to nearest Lakhs.

As per our report of even date.

For, G. K. CHOKSI & CO. FOR AND ON BEHALF OF THE BOARD

[Firm Registration No. 101895W]

Chartered Accountants Sd/_- Sd/_-

APURVA KAMLESHBHAI MODI NEERAJ SHAH

^Sd/- Whole Time Director Managing Director & Executive Director

ROHIT K. CHOKSI ^{(DIN : 07046796) (DIN : 0005112261)}

Partner

^Membership MÂ°. ³¹¹⁰³ Sd/- _RITU AGA_RWAL

f!"^pmmer ^Comp^any ^Secretary

Place : Ahmedabad Place : Ahmedabad

Date : 21st May, 2025 Date : 21st May, 2025

Mar 31, 2024

2.2.7 Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognisednor
disclosed in the financial statements.

2.2.8 Revenue Recognition

The Company has generally concluded that it is the principal in its revenue arrangements, because it typically
controls the goods or services before transferring them to the customer.

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

Sale of Goods

(ii) The Company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax/
GST in the year of admission of such claims by the concerned authorities.

(iii) Export benefits are classified as other operating income and recognized on accrual basis in the year of export
based on eligibility and when there is no uncertainty on receiving the same.

Interest Income

Dividend Income :

Dividend income is recognised when right to receive payment is established and it is probable that the economic
benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured
reliably.

2.2.9 Leases

Company as a lessee

(i) Right-of-use assets

(ii) Lease liabilities

(iii) Short-term leases and leases of low-value assets

2.2.10 Foreign Currency Translation

The functional currency of the Company is the Indian Rupee ('').In preparing the financial statements of the
Company, transactions in currencies other than the entity''s functional currency are recognised at the rate of
exchange prevailing at the date of the transactions. At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the Statement of profit and loss in the period in which
they arise except for:

(ii) exchange differences arising from translation of long-term foreign currency monetary items recognised in the
financial statements of the Company for the period immediately before the beginning of the first Ind AS
financial reporting period (prior to TApril, 2016), as per the previous GAAP, pursuant to the Company''s choice
of availing the exemption as permitted by Ind AS 101.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not
retranslated.

2.2.11 Borrowing Costs

Borrowing costs include

(i) interest expense calculated using the effective interest rate method,

(ii) finance charges in respect of finance leases, and

(iii) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

2.2.12 Employee benefits

(a) Short-term obligations

(b) Post-employment obligations

The Company operates the following post-employment schemes: a) defined contribution plans - provident
fund b) defined benefit plans - gratuity plans

(i) Defined contribution plans

(ii) Defined benefit plans

Remeasurements of the net defined liability, comprising of actuarial gains and losses, return on plan
assets (excluding amounts included in net interest on the net defined benefit liability) and any change in
the effect of asset ceiling (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through Other Comprehensive Income (OCI) in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.

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

2.2.13 Income Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax
(i) Current tax

(ii) Deferred Tax

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.
Deferredtax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised 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 utilised. Such deferred
tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of
assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

(iii) Current and deferred tax for the year

2.2.14 Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to the ordinary shareholders of the company by the weighted
average number of ordinary shares outstanding during the period. Where ordinary shares are issued but not fully
paid, they are treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent
that they were entitled to participate in dividends during the period relative to a fully paid ordinary share.Diluted
earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares
considered for deriving basic EPS and also weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.

2.2.15 Fair Value Measurement

A number of Company''s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair value is the price that would be received on sell of an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair
value measurement assumes 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 market or the most advantageous market must be accessible to the Company.

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.

(a) Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities.

(b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly or indirectly.

2.2.16 Current / non- current classification

An asset is classified as current if:

(a) it is expected to be realized or sold or consumed in the Company''s normal operating cycle;

(b) it is held primarily for the purpose of trading;

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current if:

(a) it is expected to be settled in normal operating cycle;

(b) it is held primarily for the purpose of trading;

(d) it has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

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

Note 3 : Significant accounting judgments, estimates and assumptions

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the
disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expense during
the period. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. However, uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of the asset or liability affected in future periods.

CriticalAccounting Estimates and Judgments

(i) Contingences and Commitments

(ii) Taxes

(iii) Employee Benefits

Discount rate used to determine the carrying amount of the Company''s defined benefit obligation.

(iv) Fair value measurement of financial instruments

(v) Allowance for uncollectible trade receivables

(vi) Impairment of Property, Plant & Equipment

The value in use calculation requires the directors to estimate the future cash flows expected to arise from the
cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual future cash
flows are less than expected, an impairment loss which is material in nature is accounted for.

(vii) Litigations

The provisionis recognized based on the best estimate of the amount desirable to settle the present obligation
arising at the reporting period andof the income is recognized in the cases involving high degree of certainty as to
realization.

(viii) Useful Life of Property, Plant and Equipment

As described in Note 4.3, the Company reviews the estimated useful lives and residual values of property, plant
and equipment at the end of each reporting period. During the current financial year, the management determined
that there were no changes to the useful lives and residual values of the property, plant and equipment.

The description of the nature and purpose of each reserve within equity is as follows :

1. General Reserve

2. Securities Premium

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance
with the provisions of the Companies, Act, 2013.

3. Retained Earnings (Includes Other Comprehensive Income)

4. Dividend

The company has paid dividend amounting to '' 30.29 Lacs during the year which pertains to the dividend declared in
previous year.

5. Equity Instruments through Other Comprehensive Income

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other comprehensive income, under an irrevocable option.

i) In the Financial year 2008-2009 the Department of Excise and Customs had inspected certain records related to
materials imported under license removed for jobwork to various parties whose name did not appear in the license as
job-worker or as supporting manufacturer. The department had objected such removal and also observed that
aforesaid materials have not been returned back under job work challan from the above parties but under sales
invoices. The department also seized certain records related to job work for the Financial Year 2006-07 and 2007-08.
The company had deposited a sum of '' 5.08 Lakhs under protest. However based on legal opinion obtained from the
excise consultant, the company has transferred the aforesaid deposit to PLA under intimation to department
concerned. After that the company has received an order on 28^h March, 2012 confirming the demand of custom duty
amounting to '' 85.57 Lakhs and penalty of '' 85.57 Lakhs under section 114A of the Custom Act aggregating to '' 171.14
Lakhs and interest at applicable rates on the amount of duty evaded.

ii) The company has filed an appeals and Hon''ble Tribunal has granted stay against aforesaid demand. The Custom
Authority against such stay has referred the matter to Hon''ble High court, Gujarat which is yet to be heard. Pending final
outcome, the company does not expect any liability and accordingly no provision in respect thereof has been made but
disclosed the same as contingent liability.

iii) The Company has not recognized and acknowledged the GST demand (including penalty) as liability in its books of
accounts aggregating to '' 288.08 Lakhs (P.Y. NIL) in respect of earlier years since the company has disputed the
demand and is under process of filing writ petition to Hon''ble Gujarat High Court.

37 Employee benefits plan
37.1 Defined contribution plan

The Company has defined contribution plan in form of Provident Fund & Pension Scheme and Employee State
Insurance Scheme for qualifying employees. Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The total expense recognised in the Statement of profit and loss under
employee benefit expenses in respect of such schemes are given below :

e) Risk Exposure

Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed
below :

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform
this yield, this will create a deficit.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of
the plans'' assets maintained by the insurer.

The gratuity fund is administered through Life Insurance Corporation (LIC) of India under its Group Gratuity Scheme.

Note 40 : Leases

Note 41 : Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the
Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

B. Fair value hierarchy

Notes:

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar
assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted compound instruments.

c) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

(i) The use of quoted market prices or mutual fund houses quotes (NAV) for such instruments. This is included in Level
1

d) Fair value of financial assets and liabilities measured at amortized cost

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

43 Financial Risk Management

(a) Credit Risk

Cash and Cash Equivalents

(b) Liquidity risk

Liquidity Table

The Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Company can be required to pay. The tables include both interest and
principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required
to pay.

(c) Market Risk

(i) Currency Risk

(ii) Interest rate risk

(iii) Price Risk
Exposure

44 Other regulatory information

(a) Title deeds of immovable property

(b) Revaluation of property, plant and equipment (including right-of-use assets) and intangible assets

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible
assets during the year

The company has not granted any loans or advances to promoters, directors, KMP''s and the related parties.

(d) Fair Value of Investment Property

The Company does not own any immovable property which is classified as Investment property as at the end of the
year.

(e) Capital- work- in progress (CWIP)

Refer note 6 for detailed disclosure.

(f) Details of Benami Property held

(g) Borrowings obtained on the basis of security of current assets

(h) Wilful Defaulter

The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.

(i) Relationship with Struck off Companies

The company does not have transactions with companies struck off under section 248 of the companies act, 2013 or
section 560 of the companies act, 1956.

(j) Registration of charges or satisfaction with registrar of companies (ROC)

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory
period.

(k) Compliance with number of layers of companies

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.

(l) Approved scheme of arrangements

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.

(m) Utilization of Borrowed funds and share premium :

(n) Undisclosed Income

(o) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

45 Code on social security, 2020

Note 47 : Un-hedged Foreign Currency Exposure

48 Statement of Management

49 The figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable

with the figures for the current year. Figures are rounded off to nearest Lakhs.

As per our report of even date.

For, G. K. CHOKSI & CO. FOR AND ON BEHALF OF THE BOARD

[Firm Registration No. 101895W]

Chartered Accountants Sd/_- Sd/_-

APURVA KAMLESHBHAI MODI NEERAJ SHAH

^Sd/- Whole Time Director Managing Director & Executive Director

ROHIT K. CHOKSI ^{(DIN : 07046796) (DIN : 0005112261)}

Partner

^Membership MÂ°. ³¹¹⁰³ Sd/- _RITU AGA_RWAL

f!"^pmmer ^Comp^any ^Secretary

Place : Ahmedabad Place : Ahmedabad

Date : 28th May, 2024 Date : 28th May, 2024

Mar 31, 2018

Rights, Preferences and Restrictions

The Company has only class of equity shares having a par value of Rs,10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

Nature of Security

1 The above term loans HDFC Bank Ltd are primarily secured against Hypothecation of present and future stocks and book debts and Plant & Machineries. It is further secured by Equitable Mortgage on Leasehold land bearing Plot / Shed No 125, in aggregate admeasuring 1330 Sq mts in phase I, Vatva Industrial Estate, lying at Mouje: Vatva, in Taluka Dascroi, and building constructed thereon and Equitable Mortgage on Non Agricultural Constructed Leasehold Property bearing plot / Shed No. 5501/2, in aggregate admeasuring 7363 Sq. Mtrs. in Phase III, in Vatva Industrial Estate and building constructed thereon.

2 The above loans are secured against hypothecation of vehicles.

Terms of Repayment of Loans

Term loans

1 HDFC Bank Ltd.The company has availed term loan for acquition of plant and machinery and It is repayable in 60 numbers of monthly installments of Rs,1.91 lacs each (including interest), commencing from July 2014. The last installment falls due in June, 2019.

The company has availed term loan for working capital and It is repayable in 60 numbers of monthly installments of Rs,4.24 lacs each (including interest), commencing from November 2017. The last installment falls due in September 2022.

The company has availed term loan for acquition of working capital and It is repayable in 60 numbers of monthly installments of Rs,1.39 lacs each (including interest), commencing from April 2018. The last installment falls due in March 2023.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined obligation calculated with the projected unit credit method at the end of reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior year.

(e) Risk exposure

Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit.

The gratuity fund is administered through Life Insurance Corporation of India (insurer) under its group gratuity scheme. Accordingly almost the entire plan asset investment is maintained by the insurer. These are subject to interest rate risk which is managed by the insurer.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plansâ assets maintained by the insurer.

The gratuity fund is administered through Life Insurance Corporation(LIC) of India under its Group Gratuity Scheme.

(f) Defined benefit liability and employer contribution

The Company generally eliminates the deficit in the defined benefit gratuity plan with in next one year.

Expected contribution to the post -employment benefit plan (Gratuity) for the next year is Rs 6.13 Lakhs.

The weighted average duration of the defined benefit obligation is 3.38 years (2017 - 4.25 years, 2016- 3.64 years).

Note 3: Segment Information

The Company operates within a solitary business segment i.e. manufacturing of dyes, chemicals and pigments which constitute a single business segment. These activities are mainly conducted only in one geographical segment viz, India. Therefore, the disclosure requirements under the Ind AS 108 âOperating Segmentsâ are not applicable.

Note 4:

1. Related Party Disclosures for the year ended March 31, 2018

(a) Details of Related Parties Sr.

^ Description of Relationship Names of Related Parties

1 Wholly Owned Subsidiary Companies Neo Farbe Pvt. Ltd.

2 Key Management Personnel (KMP) Harin D. Mamlatdarna

Dipakkumar N. Choksi Dinesh Jain

3 Relatives of KMP Ronak D. Choksi

Bimal D. Choksi Mansi Talati Asita Mamlatdarna

4 Enterprise over which KMP/Relatives of KMP exercise Ornet Intermediate Pvt. Ltd. significant influence through controlling interest

(Other Related Party)

2. Related Party Disclosures for the year ended March 31, 2017

(a) Details of Related Parties

Description of Relationship Names of Related Parties

1 Wholly Owned Subsidiary Companies Neo Farbe Pvt. Ltd.

2 Key Management Personnel (KMP) Harin D. Mamlatdarna

Dipakkumar N. Choksi Dinesh Jain

3 Relatives of KMP Ronak D. Choksi

Bimal D. Choksi Mansi Talati Asita Mamlatdarna

4 Enterprise over which KMP/Relatives of KMP exercise Ornet Intermediate Pvt. Ltd. significant influence through controlling interest

(Other Related Party)

(b) Details of transaction with related parties for the year ended March 31, 2017 in the ordinary course of business

Note 5 : Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

* Excluding investments in subsidiaries, joint control entities and associates measured at cost in accordance with Ind AS-27

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Companyâs policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

(i) The use of quoted market prices or mutual fund houses quotes (NAV) for such instruments. This is included in Level 1

D. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-term nature. Difference between carrying amount of Bank deposits, other financial assets , borrowings and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 6: Financial risk management

The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The board has established the Audit Committee, which is responsible for developing and monitoring the Companyâs risk management policies. The Committee holds regular meetings and report to board on its activities.

The Companyâs risk management policies are established to identify and analyses 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 Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Companyâs 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.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(a) 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. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Trade and other receivables

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors

For trade receivables, provision is provided by the company as per the below mentioned policy :

Cash and Cash Equivalents

Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly the Company considers that the related credit risk is low. Impairment on these items is measured on the 12-month expected credit loss basis.

(b) 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 Companyâs 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 Companyâs reputation.

The Companyâs treasury maintains flexibility in funding by maintaining liquidity through investments in liquid funds and other committed credit lines. Management monitors rolling forecasts of the groupâs liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Liquidity Table

The Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Companyâs income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.

(i) Currency Risk

The Company is exposed to currency risk on account of foreign currency transactions including recognized assets and liabilities denominated in a currency that is not the Companyâs functional currency (''), primarily in respect of US$, and Euro. The Company ensures that the net exposure is kept to an acceptable level and is remain a net foreign exchange earner.

Sensitivity Analysis

Any change with respect to strengthening (weakening) of the Indian Rupee against various currencies as at March 31, 2018 and March 31, 2017 would have affected the measurement of financial instruments denominated in respective currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates. .

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates and investments

Most of the Companyâs borrowings are on a floating rate of interest. The Company has exposure to interest rate risk, arising principally on changes in Marginal Cost of Funds based Lending Rate (MCLR). The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term credit lines besides internal accruals.

Interest rate risk sensitivity:

The below mentioned sensitivity analysis is based on the exposure to interest rates for floating rate borrowings. For this it is assumed that the amount of the floating rate liability outstanding at the end of the reporting period was outstanding for the whole year. If interest rate had been 50 basis points higher or lower, other variables being held constant, following is the impact on profit. .

(iii) Price Risk Exposure

The Companyâs exposure to securities price risk arises from investments held in mutual funds and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses.

Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

Note 7 : Reconciliation between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Notes to reconciliation between Indian GAAP and Ind AS

(i) Revenue Recognition

Under Indian GAAP revenue is disclosed net of excise duty. However under Ind AS revenue is disclosed including excise duty.

(ii) Actuarial gain or loss

Under Indian GAAP any actuarial gain or loss on valuation of defined benefit plan is recognized in statement of profit or loss. Under Ind AS such actuarial gain or loss is recognized under Other comprehensive income ( OCI).

(iii) Amortization of processing charges

Under Indian GAAP ancillary cost of borrowing is recognized as expense or capitalized ( in case of qualifying asset) in the year in which it is incured. Under Ind AS the ancillary cost of borrowing is expensed or capitalized at effective interest rate over the period of loan.

(iv) The Company has measured its investments in Real Estate fund at Fair Value through profit and loss.

The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The above mentioned information has been compiled to the extent of responses received by the company from its suppliers with regard to their registration under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

(b) The company has circulated letters of Balance Confirmation to Sundry Debtors, Sundry Creditors and the parties to whom loans and advances have been granted. Confirmations were received in some cases.

Note 8 : Corporate Social Responsibility

Note 9 : Un-hedged Foreign Currency Exposure

The copany does not enter into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The company does not enter into any derivative instruments for trading or speculative purposes.

Note 10 : Statement of Management

(a) The non current financial assets, current financial assets and other current assets are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and financial performance of the Company for the year under review.

Mar 31, 2015

During the period of five financial years immediately preceding the Balance Sheet date, the company has not;

(i) allotted any fully paidup equity shares by way of bonus shares;

(ii) allotted any equity shares pursuant to any contract without payment being received in cash;

(iii) brought back any equity shares

1 Reserves and Surplus

Earmarked for Eco-development measure including community welfare measures in a manner mentioned in a circular bearing no. J-21011/8/98-IA, II(I) of Ministry of Environment Forests, Government of India.

Nature of Security

1 The above term loans from Central Bank of India (up to 26.06.2014) and HDFC Bank Ltd are secured against Hypothecation of Plant & Machineries purchased and personal guarantees of Directors. It is further secured by Equitable Mortgage on Leasehold land bearing Plot / Shed No 125, in aggregate admeasuring 1330 Sq mts in phase I, Vatva Industrial Estate, Survey no. 494 Paiki, lying at Mouje: Vatva, in Taluka Dascroi, and building constructed thereon AND Equitable Mortgage on Non Agricultural Constructed Leasehold Property bering plot / Shed No. 5501/2, in aggregare admeasuring 7383 Sq. Mtrs. in Phase III, in Vatva Industrial Estate and building constructed thereon.

2. The above loans are secured against hypothecation of vehicles Terms of Repayment of Loans

HDFC Bank Ltd. It is repayable in 60 numbers of quarterly installments.

Toyota Financial Services It is repayable in 36 numbers of equal monthly installments of Rs. 0.94 lacs each (including India Limited interest) commencing from January, 2014. The last installment falls due in November, 2016.

Secured Loans

The above loans are secured by hypothecation of inventories, book debt, bills, claims, monies receivables, outstandings, invoice documents, contracts, guarantees, movable plant and machinery & other fixed assets and personal guarantees of Directors

3. Trade Payables

The company is yet to initiate the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be complied and disclosed.

4 Employee Benefits

(a) Defined contribution to Provident Fund and Employee state insurance

The company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 8.32 lacs (P Y Rs. 7.16 lacs) as expense towards contributions to these plans.

(b) Defined Contribution Plans

The following table sets out the status of the gratuity scheme plans as at 31st March, 2015.

5 Segment Reporting

The Company operates within a solitary business segment i.e., manufacturing of chemicals and pigments, the disclosure requirements of Accounting Standard - 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India is not applicable.

6 Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below :

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr. Name of related party Relationship No.

1 Harin D. Mamlatdarna

2 Deepak N. Chokshi Key Management Personnel

3 Dinesh Jain

4 Ronak D. Chokshi

5 Bimal D. Chokshi Relatives of Key Management Personnel

6 Mansi Talati

7 Asita Mamlatdarna

8 Ornet Intermediates Ltd. Enterprise over which director of the company exercises significant influence / control.

35. Pursuant to Accounting Standard - 29. "Provisions, Contingent, Liabilities and Contingent Assets", the disclosure relating to contingent liabilities and provisions made in the accounts for the year ended 31st March, 2014 is as follows :

(a) Contingent Liabilities

As at As at Particulars 31st March 31st March 2015 2014

(a) Claims not acknowledge by the company in respect of :

* Income Tax (See Note - (i) below) 11.23 78.29

* Custom Duty (See Note - (ii) below) 171.14 171.14

* Custom Duty (See Note - (ii) below) 5.51 5.51

* Service Tax (See Note - (iii) below) 31.65 40.89

(b) Custom Duty (Import under Advance Licenses Export 103.98 296.34 Obligation Pending)

(i) The Company has not recognised and acknowledged the Income Tax demands as liability in its books of accounts aggregating to Rs. 11.23 lacs in respect of Assessment Year 2008-09 & 2014-15 since the company has disputed the demands and has filed appeals before appropriate authorities. The same are pending for final adjudication.

(ii) In the Financial year 2008-2009 the Department of Excise and Customs had inspected certain records related to materials imported under license removed for jobwork to various parties whose name did not appear in the license as job-worker or as supporting manufacturer. The department had objected such removal and also observed that aforesaid materials have not been returned back under job work challan from the above parties but under sales invoices. The department also seized certain records related to job work for the Financial Year 2006-07 and 2007-08. The company had deposited a sum of Rs. 5.08 lacs under protest. However based on legal opinion obtained from the excise consultant, the company has transferred the aforesaid deposit to PLA under intimation to department concerned. After that the company has received an order on 28th March, 2012 confirming the demand of custom duty amounting to Rs. 85.57 lacs and penalty of Rs. 85.57 lacs under section 114A of the Custom Act aggregating to Rs. 171.14 lacs and interest at applicable rates on the amount of duty evaded. Further, the department has also raised demand of Rs. 5.51 lacs being custom duty on imported goods for financial year 2007-08.

The company has filed an appeals and Hon'ble Tribunal has granted stay against aforesaid demand. The Custom Authority against such stay has referred the matter to Hon'ble High court, Gujarat which is yet to be heard. Pending final outcome, the company does not expect any liability and accordingly no provision in respect thereof has been made but disclosed the same as contingent liability.

The Custom Authorities Mumbai, in another case, has raised the demand of Rs. 5.51 lacs against which the Hon'ble Tribunal Mumbai has granted stay. The matter is pending for final disposal.

(iii) The company has been served with show cause notices in respect of service tax credit aggregating amounting to Rs.28.45 lacs availed by the company in the current financial year as well as in earlier financial years. The Company has already filed its reply against the aforesaid show cause notices before appropriate authorities & such authorities are yet to react on such replies.

The Company has not recognised and acknowledged the service tax demand as liability in its books of accounts amounting to Rs. 3.2 lacs, since the company has disputed such demand and filed appeals before appropriate authorities. The same are pending for final adjudication.

(b) Provisions [Rs. in Lacs]

Provision for Provision for Particulars Leave Encashment Bonus Payable

Opening Balance 10.71 10.66

Additions (1.66) 6.22

Utilization / Reversals NIL 10.66

Closing Balance 9.05 6.23

Provision for Excise Duty Provision for Particulars on Closing Stock of Gratuity Finished Goods

Opening Balance 117.41 38.51

Additions 84.89 9.58

Utilization / Reversals 117.41 26.02

Closing Balance 84.89 22.07

7. Hitherto, in pursuance of Guidance Note on Treatment of Reserve Created on Revaluation of Fixed Assets issued by the Institute of Chartered Accountants of India, the company transferred an amount equivalent to the additional depreciation on account of the upward revaluation of fixed assets from revaluation reserve to the Statement of Profit and Loss. However pursuant to Schedule II to the Companies Act, 2013, the depreciation is required to be provided for on historical cost or the amount substituted for historical cost. Therefore, in respect of revalued asset, the company has charged depreciation / amortization based on the revalued amount for the current financial year and transferred the additional depreciation amounting to Rs. 17.10 lacs on account of upward revaluation directly to General Reserve without routing it through Statement of Profit and Loss.

8. In accordance with provisions contained in Section 203 of the the Companies Act, 2013 read with Rule 8 of The Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 and section 149(1) of the the Companies Act, 2013 read with Rule 3 of The Companies (Appointment and qualification of Directors) Rules, 2014 the appointment of Key Managerial Personnel and Woman Director has becoming mandatory. The Company, at year end date, is yet in the process of appointing Company Secretary, Chief Financial Officer and Woman Director so as to comply with the aforesaid provisions.

9. Balances of trade payables, trade receivables and loans and advances are subject to confirmations and reconciliations by the parties concerned.

10. Additional information as required under para 5(viii)(c) of general instructions of profit and loss as per Schedule III to the Companies Act, 2013

11. Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated other wise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Profit & Loss Account and Cash Flow Statement read together with the schedules to the accounts and notes thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

12. Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.

Mar 31, 2013

1 Employee Benefits

(a) Defined contribution to Provident Fund and Employee state insurance

The company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 4.40 lacs (P. Y. Rs. 4.71 lacs) as expense towards contributions to these plans.

(b) Defined Contribution Plans

The following table sets out the status of the gratuity scheme plans as at 31 st March, 2013.

2 Segment Reporting

The Company operates within a solitary business segment i.e., manufacturing of chemicals and pigments, the disclosure requirements of Accounting Standard -17 "Segment Reporting", issued by the Institute of Chartered Accountants of India is not applicable.

3 Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

(a) List of related parties with whom transactions have taken place during the year and relationship:

4. Pursuant to Accounting Standard - 29. "Provisions, Contingent, Liabilities and Contingent Assets", the disclosure relating to contingent liabilities and provisions made in the accounts for the year ended 31st March, 2013 is as follows:

(a) Contingent Liabilities As at As at Particulars 31" March 2013 31" March 2012

(a) Claims not acknowledge by the company in respect of:

- Income Tax (See Note-(i) below) 78.29 12.30

- Custom Duty (See Note -(ii) below) 171.14 171.14

(b) Custom Duty (Import under Advance Licenses Export 141.22 144.97 Obligation Pending)

(c) Customs Duty 5.51

(d) Service Tax 28.67

(i) In respect of demand of Rs. 78.29 lacs pertaining td the A. Y. 2003-04, the company had received order of Hon''ble ITAT Ahmedabad. In the order Hon''ble ITAT Ahmedabad had set aside the matter and restored it back to the Assessing officer for the fresh assessment. Aggrieved upon the fresh amendment order, the company has preferred an appeal before appropriate authority. Pending final outcome the company has not provided for and considered the same as contingent in nature.

(ii) In the Financial year 2008-2009 the Department of Excise and Customs had inspected certain records related to materials imported under license removed for jobwork to various parties whose name did not appear in the license as job-worker or as supporting manufacturer. The department had objected such removal and also observed that aforesaid materials have not been returned back under job work challan from the above parties but under sales invoices. The department also seized certain records related to job work for the Financial Year 2006-07 and 2007-08. The company had deposited a sum of Rs. 5.08 lacs under protest. However based on legal opinion obtained from the excise consultant, the company has transferred the aforesaid deposit to PLA under intimation to department concerned. After that the company has received an order on 28th March, 2012 confirming the demand of custom duty amounting to Rs. 85.57 lacs and penalty of Rs. 85.57 lacs under section 114A of the Custom Act aggregating to Rs. 171.14 lacs and interest at applicable rates on the amount of duty evaded. The Company is in process of filling an appeal against the order with the appropriate authority. The company has filed an appeal and appropriate authority has granted stay against aforesaid demand. Pending final outcome, the company does not expect any liability and accordingly no provision in respect thereof has been made but disclosed the same as contingent liability.

5. In the opinion of the Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet.

6. Balance of sundry debtors, creditors, loans and advances are subject to confirmation.

7. The company has been advised that the computation of net profits for the purpose of Directors'' Remuneration under section 349 of the Companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Directors as per Schedule XIII to the Companies Act, 1956. The Directors were paid total remuneration of Rs. 42.39 (R Y. Rs. 32.61) during the period under review.

8. Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated other wise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Profit & Loss Account and Cash Flow Statement read together with the schedules to the accounts and notes thereon, are drawn up so as to disclose the information required under the Companies Act, 1956 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company forthe year under review.

9. Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.

Mar 31, 2012

Explanatory Notes to Cash Flow Statement

1 The Cash Flow Statement is prepared in accordance with the format prescribed by Securites and Exchange Board of India & Accounting Standard 3 as prescribed by The Institute of Chartered Accountants of India.

2 In Part A of the Cash Flow Statements, figures in brackets indicates deductions made from the net profit for deriving the cash flow from operating activities. In part B & part C, figures in brackets indicates cash outflows.

3 Figures of the previous year have been regrouped wherever necessary, to confirm to current years presentation.

Note:

During the period of five financial years immediately preceeding the Balance Sheet date, the company has not:

(i) allotted any fully paid up equity shares by way of bonus shares;

(ii) allotted any equity shares pursuant to any contract without payment being received in cash;

(iii) brought back any equity shares

(d) Rights, Preferences and Restrictions attached to shares

Equity Shares : The Company has only class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

Secured Loan

1) The above loans are secured against Equitable Mortgage on land & Building and Hypothecation of Plant & Machineries purchased and personal guarantees of Directors. It is further secured by Equitable Mortgage on Leasehold bearing Plot/Shed No 125, admeasuring 1330 Sq mts in phase I, Vatva Industrial Estate and others, situtate, lying at Mouje: VINZOL, in Taluka Dascroi, and building constructed thereon AND Equitable Mortgage on Non Agricultural Constructed Leasehold Property bering plot / Shed No. 5501/2, admeasuring 7383 Sq. Mtrs. in Phase III, in Vatva Industrial Estate and building constructed constructed thereon.

2) The above loans are secured against hypothecation of vehicles Terms of Repayment of Loans

Central Bank of India

It is repayable in 16 numbers of quarterly installments ofRs. 10.31 lacs commencing from 1st January, 2011. The last installment falls due on 1st October, 2014 and rate of interest is 14.75%.

Sundram Finance Ltd.

It is repayable in 36 numbers of monthly installments of Rs. 0.62 lacs commencing from 7th January, 2011. The last installment falls due on 22nd December, 2013

Tata Capital Ltd.

It is repayable in 48 numbers of monthly installments of Rs. 0.83 lacs commencing from 29th September, 2010. The last installment falls due on 9th August, 2014.

1.1 Deferred tax liabilities (Net)

The Company estimates deferred tax/(charge) using the applicable rate of taxation based on the impact of timing difference between financial statements and estimated taxable income for the current year.

1.2 Tangible Assets

Note : Pursuant to Board Resolution passed by Board of Director in its meeting held on 31st March, 2012 with regard to Revaluation of Lease Hold Land, the company has based on Valuation Report dated 31st March, 2012 by approved valuer, revalued the Lease Hold Land and accordingly stated at revalued amount with corresponding credit to revaluation Reserve Account.

1.3 Trade Receivable

Due by company in which director is a director or member is Rs. 55.15 Lacs (previous year Rs 55.15 Lacs)

1.4 Cash and Cash Equivalents

The amount of fixed deposits with banks includes deposits placed as Margin Money amountingRs. 65.17 lacs (P.Y. Rs. 6.00 lacs) for leter of credits and Rs. 8.38 lacs (P.Y. Rs. 1.82 Lacs) for bank Guarantees.

Amount receivable from related parties, directors and officers Rs. NIL. (P.Y. Rs. NIL)

1.5 Employee Benefits '

(a) Defined contribution to Provident Fund and Employee State Insurance

The company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 4.71. (P.Y. Rs. 5.14) as expense towards contributions to these plans.

1.6 Segment Reporting

The company operates within a solitary business segment i.e. manufacturing of chemicals and pigments, the disclosure requirements of Accounting Standard -17 "Segment Reporting", issued by the Institute of Chartered Accountants of India is not applicable.

1.7 Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

1.8 Pursuant to Accounting Standard-29, "Provisions, Contingent Liabilities and Contingent Assets", the disclosure relating to contingent liabilities and provisions made in the accounts for the year ended 31st March, 2012 is as follows :

(a) Contingent Liabilities (Rs. in Lacs) Particulars As at As at

31st March 2012 31st March 2011

(a) Claims not acknowledge by the company in respect of:

- Income Tax (See Note - (i and ii) below) 12.30 12.30

- Custom Duty (See Note - (iii) below) 171.14 Indeterminable

(b) Custom Duty (Import under Advance Licenses Export Obligation Pending) 144.97 93.74

(i) The income tax department has raised the demand of Rs. 5.06 lacs and Rs. 7.24 lacs pertaining to A.Y. 2001-2002 & A.Y. 2008-2009 (P.Y. Rs 1.13 lacs for A.Y. 2007-2008) for which the company has filed appeal with CIT Appeal.

(ii) In respect of demand of Rs. 78.29 lacs pertaining to the A.Y. 2003-2004, the company had received order of Hon'ble ITAT Ahmedabad. In the order Hon'ble IT AT Ahmedabad had set aside the matter and restored it back to the Assessing officer for the fresh assessment. Pending fresh assessment, the company has not considered the aforesaid demand of Rs. 78.29 lacs as contingent in nature and accordingly not disclosed.

(iii) In the Financial Year 2008-2009 the Department of Excise and Customs had inspected certain records related to materials imported under license removed for job work to various parties whose name did not appear in the license as job-worker or as supporting manufacturer. The department had objected such removal and also observed that aforesaid materials have not been returned back under job work challan from the above parties but under sales invoices. The department also seized certain records related to job work for the Financial Year 2006-2007 and 2007-2008. The company had deposited a sum ofRs. 5.08 lacs under protest. However based on legal opinion obtained from the excise consultant, the company has transferred the aforesaid deposit to PLA under intimation to department concerned. After that the company has received an order on 28th March, 2012 confirming the demand of custom duty amounting to Rs. 85.57 lacs and penalty ofRs. 85.57 lacs under section 114A of the Custom Act aggregating to Rs. 171.14 lacs and interest at applicable rates on the amount of duty evaded. The Company is in process of filing an appeal against the order with the appropriate authority. The company does not expect any liability and accordingly no provision in respect thereof has been made.

1.9 In the opinion of the Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet.

1.10 Balance of sundry debtors, creditors, loans and advances are subject to confirmation.

1.11 The company has been advised that the computation of net profits for the purpose of Directors' Remuneation under section 349 of the Companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Directors as per Schedule XIII to the Companies Act, 1956. The Directors were paid total remuneration ofRs. 32.61 lacs (P. Y. Rs. 32.68 lacs) during the period under review.

1.12 The company is yet to intiate the process of obtaining the confirmation from suppliers who have registered them- selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.

1.13 Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated other wise in the Accounts. Subject to the notes regarding depreciation, other notes and the method of accounting followed by the Company, provision for all known liabilities is adequate and not in excess of amount reasonably necessary. There are no contingent liabilities except those stated in the notes.

(b) Balance Sheet, Profit & Loss Account and Cash Flow statement read together with the schedules to the accounts and notes thereon, are drawn up so as to disclose the information required under the Companies Act, 1956 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

1.14 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, prerevised Schedule VI to the companies Act, 1956. Consequent to the notification to the Revised Schedule-VI under the companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per the Revised Schedule VI. According to previous year figures have also been reclassified to confirm this year's classification.

Mar 31, 2011

1. Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 5,13,934/- (P.Y. Rs. 4,58,988/-) as expense towards contributions to these plans.

2. Segment Reporting

The Company operates within a solitary business segment i.e. manufacturing of chemicals and pigments, the disclosure requirements of Accounting Standard -17 "Segment Reporting", issued by the Institute of Chartered Accountants of India is not applicable.

3. Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions 'with the related parties as defined in the Accounting Standard are given below:

Sr. Name of Related Party Relationship No. 1 Harin M. Mamlatdarna Key Management Personnel

2 Deepak N. Choksi

3 Dinesh Jain

4 Ronak D. Choksi Relatives of Key Management Personnel

5 Bimal D. Choksi

6 Mansi Talati

7 Asita Modi

8 Ornet Intermediate Ltd. Enterprise over which director of the company exercises significant influence/control.

4. Pursuant to Accounting Standard-29, Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in the accounts for the year ended 31 st March, 2011 is as follows :

(a) Contingent Liabilities [Rs. In lacs]

Particulars 2010-2011 2009-2010

(a) Claims not acknowledge by the company in respect of:

Income Tax (See Note-(i) below) 12.30 1.13

Custom Duty (See Note - (ii) below) Indetermin Indetermin able able

(b) Custom Duty (Import under Advance Licenses Export Obligation Pending) 93.74 67.26

(i) The Income tax department had raised the demand of Rs.5.06 lacs and 7.24 Lacs pertaining to Assessment year 2001 -2002 and A.Y. 2008-2009 (P.Y. Rs. 1.13 Lacs for A.Y. 2007-2008) for which the company has filed appeal with CIT Appeal.

(ii) In respect of demand of Rs. 78.29 lacs pertaining to the A. Y. 2003-04, the company has received order of Hon'ble ITAT Ahmedabad. In the order Hon'ble ITAT Ahmedabad has set aside the matter and restored it back to the Assessing officer for the fresh assessment. Considering the same no contingent liability towards demand of Rs. 78.29 lacs has been recognised during the year under consideration.

(iii) In the Financial year 2008-2009 the Department of Excise and Customs had inspected certain records related to materials imported under license removed for jobwork to various parties whose name did not appear in the license as job-worker ro as supporting manufacturer. The department had objected such removal and also observed that aforesaid materials have not been returned back under job work challan from the above parties but under sales invoices. The department also sized certain records related to job work for the Financial Year 2006-07 and 2007-08. The Company had deposited a sum of Rs. 5,08,273/- under protest. However based on legal opinion obtained from the excise consultant, the company has transferred the aforesaid deposit to PLA under intimation to department concerned. As the matter has not been disposed of yet and the company does not expect any liability, no provision in respect thereof has been made.

5. In the opinion of the Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet.

6. Balance of sundry debtors, creditors, loans and advances are subject to confirmation.

7. The company has been advised that the computation of net profits for the purpose of Directors' Remuneration under section 349 of the Companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Directors as per Schedule XIII to the Companies Act, 1956. The Directors were paid total remuneration of Rs. 32,68,001/- (P. Y. Rs. 32,85,324/-) during the period under review.

8. The company is yet to initiate the process of obtaining the confirmation from suppliers who have registered them selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Devel- opment) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.

9. Additional information pursuant to provision of para 3,4C and 4D of Part-ll of Schedule-VI of the Companies Act, 1956:

10. The previous year's figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.

Mar 31, 2010

1. Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees provident fund and employees state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 4,58,988/- (P.Y. Rs. 4,59 719/-) as expense towards contributions to these plans.

2. Segment Reporting

The Company operates within a solitary business segment i.e. manufacturing of chemicals and pigments, the disclosure requirements of Accounting Standard - 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India is not applicable.

3. Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of trans- actions with the related parties as defined in the Accounting Standard are given below:

4. The Company estimates deferred tax/(charge) using the applicable rate of taxation based on the impact of timing difference between financial statements and estimated taxable income for the current year.

5. Pursuant to Accounting Standard-29, Provisions, Contingent Liabilities and Contingent Assets, the disclosure relat- ing to provisions made in the accounts for the year ended 31st March, 2010 is as follows :

(a) Contingent Liabilities [Rs. In lacs]

Particulars 2009-2010 2008-2009

(a) Claims not acknowledge by the company in respect of:

Income Tax (See Note - (i) below) 1.13 76.39

Custom Duty (See Note - (ii) below) Indeterminable Indeterminable

(b) Custom Duty (Import under Advance Licenses Export Obligation Pending) 67.26 61.78

(i) The Income tax department had raised the demand of Rs.1.13 lacs pertaining to Assessment year 2007- 2008, for which the company has filed appeal with CIT Appeal.

(ii) In respect of demand of Rs. 76.39 lacs pertaining to the A. Y. 2002-03 and 2003-04, the company has received order of Honble ITAT Ahmedabad. In the order Honble ITAT Ahmedabad has set aside the matter and restored it back to the Assessing officer for the fresh assessment. Considering the same no contingent liability towards demand of Rs. 76.39 lacs has been recognised during the year under consid- eration.

6. In the opinion of the Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet.

7. Balance of sundry debtors, creditors, loans and advances are subject to confirmation.

8. The company has been advised that the computation of net profits for the purpose of Directors Remuneration under section 349 of the Companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Directors as per Schedule XIII to the Companies Act, 1956. The Directors were paid total remuneration of Rs. 32,62,247/- (P. Y. Rs. 32, 91,619/-) during the period under review.

9. The company is yet to initiate the process of obtaining the confirmation from suppliers who have registered them selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enteiprises (Devel- opment) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.

10. The previous years figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.

Mar 31, 2009

1 The Cash Flow Statement is prepared in accordance with the format prescribed by Securites and Exchange Board of India & Accounting Standard 3 as prescribed by The Institute of Chartered Accountants of India.

2 In Part A of the Cash Flow Statements, figures in brackets indicates deductions made from the net profit for deriving the cash flow from operating activities. In part B & part C, figures in brackets indicates cash outflows.

3 Figures of the previous year have been regrouped wherever necessary, to confirm to current years presentation.

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