Notes to Accounts of Mahickra Chemicals Ltd.

Mar 31, 2025

l Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions (excluding retirement benefits and compensated
absences) are not discounted to its present value and are determined based on best estimate
required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised
in the financial statements. A contingent asset is neither recognised nor disclosed in the financial
statements.

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

For Piyush J. Shah & Co. Mahickra Chemicals Limited

Chartered Accountants

Firm''s Registration No. 121172W

Jainam K. Shah Mitesh C Gandhi Ashish C Gandhi

Partner Managing Director Whole-Time Director

Membership No. 166122 DIN No. : 02142361 DIN No. : 02142344

Sona Bachani
Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date : 23 May, 2025 Date : 23 May, 2025

(ii) Rights, preferences and restrictions attached to shares
Equity Shares:

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors 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, in proportion to their shareholding.

The following person has provided personal guarantees : Mr.Ashishkumar C Gandhi, Mr Miteshkumar
C Gandhi, Mrs.Komal M Gandhi

The company has also provided the following land and building as the collateral security:

1) Immovable Property situated at bearing Plot no. 1209, Revenue survey no.150( part) and 151 (part),
situated at village -Godhasar, Taluka -Vatva, Ahmedabad

2) Immovable Property situated at Flat no. SF 04, Sun Castle Complex Part 3 of land bearing survey no. 95/1
& 100,TPS No.1 of FP No. 237,238, city survey no:4777, Ghatlodia,Ahmedabad

3) Immovable Property situated at Plot no. 1201 & 1202,vatva industrial area,Revenue survey no. 135 at
Ghodasar, Taluka, Vatva, Ahmedabad

Note : It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above,
pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending
with various forums/ authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial results.

At officer level the decision was not in favour of the company, therefore, the company has appealed in Commisioner of
appeal. Therefore, the company has recognised it as contingent liabilities.

37 Other Statutory Disclosures as per the Companies Act, 2013

38 Benami Transactions

There is no proceedings has been initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

39 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other
lender

40 Title deeds of Immovable Property

The title deeds of immovable properties are in the name of the company, except the lease hold premises, if any.

41 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has
outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of
Companies act 1956.

42 Intangible Assets under Development

The company do not have any intangible assets under development , therefore disclosure related to ageing, is
not applicable.

43 Satisfaction of Charge/Creation of Charge

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

44 Undisclosed Transactions

As stated & confirmed by the Board of Directors, 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 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.

45 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds
to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

46 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s)
or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

47 Number of layer of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restrcition on number of layers) Rules, 2017.

48 Crypto Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

49 Undisclosed Income

There is no undisclosed income, which was not disclosed by the company in earlier Financial year..

50 Security of current assets against borrowings

The company has sanctioned working capital limits in excess of Rs. 5.00 crores, in aggregate, during the year,
from banks financial institutions on the basis of security of current assets. The quarterly returns and statement
filed by the company with such banks or financial institutions are in agreement with the books of accounts of
the company.

51 Audit Trail

The company has used an accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software.

52 Commitments and contingencies

a) Capital commitments: NIL

b) Contingencies: NIL

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

For Piyush J. Shah & Co. Mahickra Chemicals Limited

Chartered Accountants
Firm''s Registration No. 121172W

Jainam K. Shah Mitesh C Gandhi Ashish C Gandhi

Partner Managing Director Whole-Time Director

Membership No. 166122 DIN No. : 02142361 DIN No. : 02142344

Sona Bachani
Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date : 23 May, 2025 Date : 23 May, 2025

---

Mar 31, 2024

(ii) Rights, preferences and restrictions attached to shares Equity Shares:

The Company has one class of equity shares. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors 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, in proportion to their shareholding.

The following person has provided personal guarantees : MrAshishkumar C Gandhi, Mr Miteshkumar C Gandhi, Mrs.Komal M Gandhi

The company has also provided the following land and building as the collateral security:

1) Immovable Property situated at bearing Plot no. 1209, Revenue survey no.150( part) and 151 (part), situated at village -Godhasar,Taluka -Vatva, Ahmedabad

2) Immovable Property situated at Flat no. SF 04,Sun Castle Complex Part 3 of land bearing survey no. 95/1 &100,TPS No.1 of FP No. 237,238, city survey no:4777, Ghatlodia, Ahmedabad

3) Immovable Property situated at Plot no. 1201 & 1202,vatva industrial area,Revenue survey no. 135 at Ghodasar, Taluka, Vatva, Ahmedabad

('' in Lac, except for share data and if otherwise stated) 28 Contingent Liabilities and Commitments
Particulars	31 March 2024	31 March 2023
Claims against the Company not acknowledged as debt - Income tax demands - Indirect tax demands	439.24
Total	439.24	-

35 Benami Transactions

There is no proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

36 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other lender

37 Title deeds of Immovable Property

The title deeds of immovable properties are in the name of the company, except the lease hold premises, if any.

38 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

39 Intangible Assets under Development

The company do not have any intangible assets under development , therefore disclosure related to ageing, is not applicable.

40 Satisfaction of Charge/Creation of Charge

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

41 Undisclosed Transactions

As stated & confirmed by the Board of Directors, 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

42 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

43 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

44 Number of layer of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restrcition on number of layers) Rules, 2017.

45 Crypto Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

46 Undisclosed Income

There is no undisclosed income, which was not disclosed by the company in earlier Financial year.

47 Security of current assets against borrowings

The company has sanctioned working capital limits in excess of Rs. 5.00 crores, in aggregate, during the year, from banks financial institutions on the basis of security of current assets. The quarterly returns and statement filed by the company with such banks or financial institutions are in agreement with the books of accounts of the company.

48 Audit Trail

The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

49 Commitments and contingencies

a) Capital commitments: NIL

b) Contingencies: NIL

---

Mar 31, 2023

17. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

18. OPERATING SEGMENT: -

The Company operates in a single segment i.e. manufacturing and trading of Reactive Dyes, Therefore, separate segment report is not prepared.

19. FOREIGN CURRENCY TRANSACTION:-

Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction. Differences arising out of foreign currency transactions settled during the year are recognized in the Statement of Profit and Loss.

Monetary items outstanding at the balance sheet date and denominated in foreign currencies are recorded at the exchange rate prevailing at the end of the year. Differences arising there from are recognized in the Statement of Profit and Loss.

B- NOTES TO ACCOUNTS:-

1. The Schedules referred to in the Balance Sheet and Profit and Loss Account forms an integral part of the accounts.

2. Balances of “Trade Receivables”, “Trade Payables”, “Secured Loans”, “Unsecured Loans”and “Loans and Advances” are subject to confirmations and reconciliations.

3. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

2. SECURED LOANS:

a) Following are the secured loans;

1. Cash Credit Account from State Bank of India, Interest as applicable to Credit CUE -2 rated units i.e. 1.50% p.a. above EBLR, which is presently 9.15% p.a. Present Effective rate 10.65% p.a. calculated on daily products at monthly rests.

2. EPC/FBD Account with State Bank of India, Interest at the rate of 1.15% above 91 days T- Bill rate which is presently 6.73%. Present Card Rate 7.88% p.a. calculated on daily products at monthly rests.

3.00% interest subvention is extended to the borrower under RBI’s interest subvention scheme for eligible exporters. The said subvention is available till GOI approves the Interest Equalization scheme.

3. Term Loan include Working Capital Term Loan (Guaranteed Emergency Credit Line) obtained from StateBank of India at bank at 9.25% interest per annum, repayable in 28 installments starting from 1^st April 2022 and last installment on 1^st July 2024

4. Term loan includes WCTL under GECL 1.0 Extension from State Bank of India at 9.25% interest per annum, Moratorium of 12 month, repayable in 36 installments starting from 5^th January 2024 and last installment on 5^th December 2026.

The above facilities are secured against;

1. Cash Credit (Including EPC/PCFC/FBD/EBR & Forward Contract/Derivative),Working Capital Term Loan (Guaranteed

Emergency Credit Line) & WCTL under GECL 1.0 Extension from State Bank of India are secured by

> Primary Security:-

• Exclusive charge by way of hypothecation of Stock, Receivables, and other current assets (present & future) in the name of the Company.

> Collateral Security:-

• All that piece or parcel of the immovable property on Non Agriculture leasehold property bearing Plot No 1209, admeasuring about 703 SqMtrs, with superstructure thereon, industrial construction standing thereon in Vatva Industrial area/estate in Phase III, of Gujarat Industrial Development Corporation (GIDC), Revenue Survey No. 150 (part) and 151 (part), situated at village- Ghodasar, Taluka-Vatva, in the Registration District Ahmedabad and sub District -Ahmedabad -5 (Narol) in the name of Company.

• All that piece or parcel of the immovable properties of Flat No. SF-4, Sun Castle Complex, admeasuring 140.07Sq Mtrs of Mukti Park Co-operative Housing Society Ltd, Part-3 of Land bearing Survey No 95/1 & 100, TPS. No. 1 of F.P No. 237 & 238, City Survey No. 4777, Situated at Village :- Ghatlodia, Taluka -Ghatlodia, in the Registration District-Ahmedabad and Sub District of Ahmedabad-2 (Vadaj) in the name of Shri Ashish Champaklal Gandhi & Shri Mitesh Champaklal Gandhi.

• All that piece or parcel on the immovable property of non agriculture leasehold property bearing Plot No. 1201 and Plot No. 1202, admeasuring about 1617 Sq. Mtrs and conveyance of construction admeasuring 825 Sq. Mtrs, with superstructures thereon, industrial construction standing thereon in Vatva Industrial Estate in Phase III of Gujarat Industrial Corporation (GIDC). Revenue Survey No. 135 situated at village- Ghodasar, Taluka - Vatva, in the Registration District Ahmedabad and sub District-Ahmedabad 5 (Narol) in the name of Company.

For, SINGHI & CO For and on behalf of the Board of Director’s

Chartered Accountants MAHICKRA CHEMICALS LIMITED

FRN:-302049E

SUNIL C BOHARA ASHISH GANDHI MITESH GANDHI

Partner Wholetime Director Managing Director

Membership No: - 103395 DIN: 02142344 DIN: 02142361

UDIN: 23103395BGXTNH6875

CS SONA BACHANI KALUSINH CHAUHAN

Company Secretary Chief Financial Officer

Ahmedabad, 15^th May 2023 Ahmedabad, 15^th May 2023

---

Mar 31, 2018

1. The schedules referred to in the Balance Sheet and Profit and Loss Account forms an integral part of the accounts.

2. As the Company Mahickra Chemicals Limited is incorporated on 13-11-2017 by conversion from partnership firm Mahak Dye Chem hence the financial statements for the company are prepared and presented for the period from 13-11-2017 to 31-03-2018 and hence all the balances of assets and liabilities of partnership firm Mahak Dye Chem as on 12-11-2017 are carried forward as the opening balances in the company.

3. Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmations and reconciliations.

4. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated. If realized in the ordinary course of business.

5. The Company has not given Loan and has complied with the provisions of Section 186 of the Companies Act, 2013 and the Rules made there under.

6. Previous year Figures have been regrouped/rearranged wherever it founds necessary.

7. Employees whose remuneration in aggregate was not less than Rs. 1,02,00,000/- per annum and part of the whose remuneration was not less than Rs. 8,50,000/- per month is Nil.

8. The Details of payment to Statutory auditors are as under.

9. Disclosures under section 22 of Micro Small and Medium Enterprises development Act, 2006 can be considered on receiving relevant information, the amount and interest due is not ascertainable. There is no claim for payment of interest under the aforesaid law.

10. Related party Disclosure:-

As per Accounting Standard-18 (AS 18)- “ Related Party Disclosure”, Disclosures of Transactions with the related parties as Defined in the accounting standard are given below.

11. Secured Loans:

a) Following are the secured loans:

1. Cash Credit from Axis Bank

2. Export Limit from Axis Bank as a sublimit of Cash Credit

3. Letter of Credit as a sublimit of Cash Credit

4. LER as a Sublimit of Cash Credit

The above facilities are secured against:

Primary Security:-

Hypothecation of entire current assets including book debts and receivables of company both present and future.

Collateral Security:-

- Equitable mortgage of property situated at Plot No.1209, Vatva Industrial area, Phase-III, GIDC Vatva, Ahmedabad belonging to M/s. Mahak Dye Chem Industries (Partnership Firm) now converted to Mahickra Chemicals Limited (Public Limited Company).

- Equitable mortgage of self occupied residential property situated at Flat No.4.4^th Floor. The Sun Castel complex of Muktipark Co-operative housing society Limited Vibhag 3, Gulab Tower Road, Ghatlodia, Ahmedabad belonging to Mr. Ashishbhai Gandhi and Mr. Miteshbhai Gandhi.

Personal Guarantee of:-

- Mr. Ashishkumar Champaklal Gandhi

- Mrs. Komal Miteshbahi Gandhi

- Mr. Miteshkumar Champaklal Gandhi