Notes to Accounts of Nutricircle Ltd.

Mar 31, 2025

1.21 Provisions, contingent liabilities and contingent assets
Provisions

A provision is recognised 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. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised under finance costs. Expected future operating losses are
not provided for. Provision in respect of loss contingencies relating to claims, litigations,
assessments, fines and penalties are recognised when it is probable that a liability has been
incurred and the amount can be estimated reliably.

Contingent liabilities

A provision is recognised 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. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised under finance costs. Expected future operating losses are
not provided for. Provision in respect of loss contingencies relating to claims, litigations,
assessments, fines and penalties are recognised when it is probable that a liability has been
incurred and the amount can be estimated reliably.

Contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present
obligation that may, but probably will not, require an outflow of resources, or a present
obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant
provisions, but are disclosed unless the possibility of outflow of resources is remote.

Contingent assets has to be recognised in the financial statements in the period in which if it is
virtually certain that an inflow of economic benefits will arise. Contingent assets are assessed
continually and no such benefits were found for the current financial year.

1.22 Earnings Per Share

The Company presents basic and diluted earnings per share ("EPS"] data for its ordinary shares.

Basic earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period. Diluted earnings per share is computed
by dividing the profit after tax by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares.

1.23 Cash flow Statements

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

1.24 Trade receivables

Trade receivables are recognised initially at the amount of consideration that is unconditional
unless they contain significant financing components, in which case they are recognised at fair
value. The Company’s trade receivables do not contain any significant financing component and
hence are measured at the transaction price measured under Ind AS 115 "Revenue from
Contracts with Customers".

1.25 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to
the end of the financial year which are unpaid. The amounts are unsecured and are
presented as current liabilities unless payment is not due within twelve months after the
reporting period. They are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method.

1.26 Determination of fair values

The Company''s accounting policies and disclosures require the determination of fair value, for

certain financial and non-financial assets and liabilities. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable,
further information about the assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability. 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.

a. Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of
non-monetary assets, is measured at fair value on the acquisition date. For this purpose, fair
value is based on appraised market values and replacement cost.

b. Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired in
a business combination is based on the discounted estimated royalty payments that have been
avoided as a result of these brands, technology related intangibles, patents or trademarks being
owned (the "relief of royalty method"]. The fair value of customer related, product related and
other intangibles acquired in a business combination has been determined using the multi-period
excess earnings method after deduction of a fair return on other assets that are part of

creating the related cash flows.

c. Inventories

The fair value of inventories acquired in a business combination is determined based on its
estimated selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on the effort required to complete and sell the
inventories.

d. Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value
of future principal and interest cash flows, discounted at the market rate of interest at the
reporting date. For finance leases the market rate of interest is determined by reference to
similar lease agreements. In respect of the Company''s borrowings that have floating rates of
interest, their fair value approximates carrying value.

Recent pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31, 2025, MCA has not notified any new standards or amendments to
the existing standards applicable to the Company.

24. Earnings per Share

Basic EPS amounts are computed by dividing the profit for the year attributable to equity holders by
the weighted average number of Equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) attributable to equity holders by
the weighted average number of equity shares outstanding during the period/year plus the weighted
average number of equity shares that would be issued on conversion of all the dilutive potential equity
shares into equity shares.

Fair value hierarchy

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

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

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

30. Financial risk management objectives and policies

The Company''s financial liabilities comprise mainly of Borrowings, Trade Payable and other
payables. The Company''s financial assets comprise mainly of cash and cash equivalents.

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

The Board of Directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework. In performing its operating, investing, and financing
activities, the Company is exposed to the Credit risk and Liquidity risk.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may result
from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other
market changes. The Company''s exposure to market risk is primarily on account of Foreign Currency
Exchange rates. Financial instruments affected by market risk include Trade Receivables.

a. 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.

b. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company exposure to the risk of changes in
foreign exchange rates relates primarily to the Company''s operating activities (when revenue or
expense is denominated in a foreign currency). Considering the countries and economic
environment in which the Company operates, its operations are subject to risks arising from
fluctuations in exchange rates in those countries.

ii) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss.

The Company is exposed to credit risk from its operating activities and from its financing activities,
including deposits with banks and financial institutions, foreign exchange transactions and other
financial instruments.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The Company manages its liquidity risk by ensuring as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due under both normal and stressed
conditions without incurring unacceptable losses or risk to the Company''s reputation.

The table below analyses derivative and non-derivative financial liabilities of the Company into
relevant maturity groupings based on the remaining period from the reporting date to the
contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows.

32. Other statutory information:

a. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

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

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

e. 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:

(i) 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

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

f. 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:

(i) 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

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

(g) The Company has not entered into any 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).

(h) The Company has not been declared as wilful defaulter by any bank or financial
institution or other lender.

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

(j) No Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013, during the year.

(k) The company has not obtained borrowings from banks and financial institutions.

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Mar 31, 2015

1. The Financials of the company are prepared and present for a period of 12 months from 1st April 2014 to 31st March 2015 and previous period figure are for a period of 12 Months ended 31st March 2014.

2. Details of Auditors' Remuneration As Audit Fee :Rs.50,000/-(Previous year Rs.50000/-)

3. Related Party Disclosures

Related party disclosures, as required by AS-18, "Related Party Disclosures", of the Institute of Chartered Accountants of India are given below:

A) Name of the Related Parties and Nature of relationship based on Control.

Name of the Party Nature of Relationship

Hitesh M. Patel Managing Director

Bhavna H. Patel Relative of Director

i.The related parties are as under:

Hitesh M. Patel—Managing Director Key Management Personnel (KMP) namely:

S.No. Name of the KMP Holding Position as on year ending 31-03-2015.

1 Hitesh M. Patel— Managing Director

ii. Transactions with related party

During the period the company has made the following transactions with related parties :

Name of the Related Nature of Opening Transactions Party Transaction Balance during Period the Company Amount Amount in Rs. in Rs.

Hitesh M.Patel Unsecured loan 2158915 5572000

Relatives of Director Unsecured loan 2072429 2072429

Mr. Hitesh M. Patel and other directors.

Name of the Related Balance Party Outstanding as at 31st March 2015 Amount in Rs.

Hitesh M.Patel 7730915

Relatives of Director -

Mr. Hitesh M. Patel and other directors.

4. Sundry Debtors are subject to confirmations and the balances have not been confirmed by the individual debtors. Sundry Debtors balances are confirmed by the management.

5. Contingent Liabilities as on the date of Balance Sheet NIL

6. Schedules referred to in the financial statement form an integral part of accounts.

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Mar 31, 2014

1. The Financials of the company are prepared and present for a period of 12 months from 1st April 2013 to 31" March 2014 and previous period figures are for a period of 12 Months ended 31" March 2013.

2. Details of Auditors'' Remuneration As Audit Fee :Rs.50,000/-(Previous year Rs.30000/-)

3. Related Party Disclosures

Related party disclosures, as required by AS-18, "Related Party Disclosures", of the Institute of Chartered Accountants of India are given below:

1. Sundry Debtors are subject to confirmations and the balances have not been confirmed by the individual debtors. Sundry Debtors balances are confirmed by the management.

2. Purchases and sales were made in the state of Maharashtra, and there is no inventory as on year ending 31st March 2014.

3. Contingent Liabilities as on the date of Balance Sheet NIL

4. Schedules referred to in the financial statement form an integral part of accounts.

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Mar 31, 2013

1. FIXED ASSETS:

To state Fixed Assets at cost of acquisition inclusive of inward freight duties, taxes and incidental expenses related to acquisition.

2. VALUATION OF INVENTORY:

Cost or Market value whichever is lower and certified by the management.

3. DEPRECIATION:

The Depreciation is calculated on Written down method under Schedule xiv of the Companies Act, 1956.

4. RECOGNITION OF INCOME & EXPENDITURE:

Revenues/Incomes and Costs/Expenditures are generally accounted on the basis of as they are earned or incurred.

5. REVENUE RECOGNITION:

All the Expenses and income is recognized on accrual basis and provision is made for all known losses and liabilities. Revenue is recognized as per billings made to customers.

6. Previous Figures are regrouped/ rearranged wherever necessary when compared to the current year figures.

7. Particulars of Employees in accordance with Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) - NIL

8. Retirement benefits have not been provided in the books of accounts.

9. The Company has reviewed certain old debit balances carrying forward for long and based on the review, the Company has written off the following, as there is no chance of recovery. Hence written off

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Mar 31, 2012

1. During the year No operations/ Production in the company.

2. Previous Figures are regrouped/ rearranged wherever necessary when compared to the current year figures.

3. Particulars of Employees in accordance with Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) - NIL

4. Retirement benefits have not been provided in the books of accounts.

5. The Company has reviewed certain old debit balances carrying forward for long and based on the review, the Company has written off the following, as there is no chance of recovery. Hence written off

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Mar 31, 2010

1. RECOGNITION OF INCOME & EXPENDITURE:

Revenues/Incomes and Costs/Expenditures are generally accounted on the basis of as they arc earned or incurred.

2. REVENUE RECOGNITION:

The Company follows Mercantile system of accounting and in consonance.

3. During the year No operations/ Production in the company.

4. Previous Figures are regrouped/ rearranged wherever necessary when compared to the current year figures.

5. Particulars of Employees in accordance with Section 217(2A)ofthe Companies Act, 1956 read with Companies (Particulars Of Employees) — NIL