Notes to Accounts of Shri Ahimsa Naturals Ltd.

Mar 31, 2025

(n) Provisions, Contingent Liabilities and Contingent
Assets

Provision is recognized in the accounts when there
is a present obligation as a result of past event(s)
and it is probable that an outflow of resource will
be required to settle the obligation and a reliable
estimate can be made. Provisions are not discounted
to their present value and are determined based on
the best estimate required to settle the obligation at
the reporting date. These estimates are reviewed at
each reporting date and adjust to reflect the current
best estimates. Contingent liabilities are disclosed
unless the possibility of outflow of resources is remote.
Contingent assets are neither recognized nor disclosed
in the financial statements.

Note: Smt. Prerna Jain and Shri Sumit Jain has become promoters during current financial year, therefore, their
shareholding prior to 01.04.2024 have also been mentioned in note no. 2.3 and 2.4 hereinabove

2.5 During the year the Company has issued 4203600 Equity Shares of face value of '' 10 each at an issue price of '' 119/-
per equity share (including premium of '' 109/- per equity share) through Initial Public Offering (IPO). The allotment of
these shares was made on 29.03.2025 and shares got listed on NSE Emerge Platform on 02.04.2025.

2.6 The Company has also issued 804000 Equity Shares of face value of '' 10 each at an issue price of '' 75/- per equity
share (including premium of '' 65/- per equity share) through Private Placement. The allotment of these shares was made
in two trenches i.e on 1.08.2024 and 14.08.2024.

2.7 Persuant to the appproval of shareholders in the Extra-Ordinary General Meeting, the Company has allotted 1,30,87,500
equity shares of face value of '' 10 each as bonus shares on 23^rd March, 2024 in the proportion of five bonus equity share
of face value of '' 10 for every two equity share of face value of '' 10 held as on the record date, by capitalising an amount
of '' 481.18 Lacs from securities premium account and balance amount '' 827.57 Lacs from surplus in the statement of
profit and loss account.

2.8 Terms/Rights attached to Equity Shares:

(i) In respect of every Equity Share (whether fully paid or partly paid), voting right and dividend shall be in the
same proportion as the capital paid-up on such Equity Share bears to the total paid-up Equity Share Capital
of the Company.

(ii) 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.

(iii) In the event of liquidation, the shareholders of Equity Shares are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholding.

Explanations regarding variation in Ratios of more than 25% as compared to preceding year are as under:-

(i) Variation in Debt-Equity Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due to increase
in equity and decrease in net debt.

(ii) Variation in Debt-Service Coverage Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due
to increase in profitability.

(iii) Variation in Return on Equity Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due to
increase in Equity.

(iv) Variation in Trade Receivable Turnover Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily
due to increase in Trade Receivables.

(v) Variation in Trade Payable Turnover Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due
to decrease in Trade Payables.

(vi) Variation in Net Capital Turnover Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due to
increase in Net Working Capital.

(vii) Variation in Return on Capital Employed Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily
due to increase in Capital Employed.

(viii) Variation in Return on Investment Ratio as at 31^st March, 2025 as compared to 31^st March, 2024 is primarily due to
decrease in return on Investment.

38 The Company has paid advance of '' 21 Lakhs (Previous Year same amount) on 24^th January, 2023 to Shri Ajay Kumar
Chauhan for purchase of 3.51 Bigha (Approx.) agriculture land at village Chirota Tehsil Sanganer, District Jaipur, but
agreement for purchase of this land has not yet been executed. This amount has been shown under the head "Capital
Advances” in note no. 11 hereinabove.

39 A claim has been lodged with the United India Insurance Company Limited for damage of some part of Plant and
Machinery and Finished Goods due to fire occured in the plant of the Company during financial year 2023-24 and the
said claim has not yet been approved by the the insurance company. But, since in the opinion of the management of
the Company approval of insurance claim is reasonably certain therefore, Insurance claim of '' 58.49 Lakhs (Previous
Year same amount) has been accounted for and has been shown as "Insurance claim Receivable” in Schedule
18 hereinabove.

46 OTHER ADDITIONAL REGULATORY INFROMATIONS:

(i) Title deeds of Immovable Property not held in the name of the Company - None

(ii) The Company has not revalued any of its Property, Plant and Equipment and intangible assets during the year

(iii) Intangible assets under development -None

(iv) The Company does not have any Benami property, where any proceedings has been initiated or pending against
the Company for holding any Benami property.

(v) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.

(vii) The Company has complied with respect to number of layers prescribed under Section 2(87) of the Act.

(viii) No any Scheme of Arrangements was approved by the Competent Authority in terms of Section 230 to 237 of the
Companies Act, 2013.

(ix) The Company has not received any fund from any person or entity including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall (a) directly or indirectly lend or
invest in other persons or entities identifed in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or (b) provide any guarantee, secutrity or the like on behalf of Ultimate Beneficiaries.

(x) The Company has not advanced or loaned or invested funds to any person or entity, including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall
(a) directly or indirectly lend or invest in other persons or entities identifed 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
Ultimate Beneficiaries.

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

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

47 Previous year’s figures have been regrouped/rearranged wherever found necessary to confirm to the classification of the

current period.

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

For Ummed Jain & Co.

Chartered Accountants Sd/- Sd/-

(Firm Registration No.119250W) (Nemi Chand Jain) (Aayushi Jain)

Chairman and Managing Director Company Secretary

(DIN 00434383)

Sd/- Sd/-

(Akhil Jain) (Amit Kumar Jain)

Partner Whole Time Director and Chief Finacial Officer

(Membership No. 137970) (DIN 00434515)

Place : Bagru, Jaipur

Date : 27^th May, 2025

---

Mar 31, 2024

(n) Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized in the accounts when there is a present obligation as a result of past event(s)
and it is probable that an outflow of resource will be required to settle the obligation and a reliable
£¦ estimate can be made. Provisions are not discounted to their present value and are determined based on
7; the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at
T5 tj each reporting date and adjust to reflect the current best estimates. Contingent liabilities are disclosed

(O unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor

^ ^ g¹ disclosed in the financial statements.

(iii) Variations in Debt Service Coverage Ratio. Return on Equity Ratio and Return on Capital Employed
Ratio as at 31st March, 2024 as compared to 31st March, 2023 are primarily due to decrease in
profitabilty.

(iv) Variation in Inventory Turnover Ratio as at 31st March, 2024 as compared to 31st March, 2023 is
primarily due to increase in Inventories.

(v) Variation in Trade Receivable Ratio as at 31st March, 2024 as compared to 31st March, 2023 is
primarily due to increase in Trade Receivables.

(vi) Variation in Trade Payable Ratio as at 31st March, 2024 as compared to 31st March, 2023 is
primarily due to increase in Trade Payables.

(vii) Variation in Net Capital Turnover Ratio as at 31st March, 2024 as compared to 31st March, 2023 is
primarily due to increase in Working Capital and decrease in Turnover,

(viii) Variation in Return on Investment Ratio as at 31st March, 2024 as compared to 31st March, 2023 is
primarily due to increase in profit on sale of Investment.

37 The Company has paid advance of Rs. 21.00 Lacs on 24th January, 2023 to Shri Ajay Kumar Chauhan for
purchase of 3.51 Bigha {Approx ) agriculture land at village Chirota Tehsil Sanganer, District Jaipur, but
agreement for purchase of this land has not yet been executed. This amount has been shown under the
head "Capital Advances" in note no 12 hereinabove

38 A claim has been lodged with the United India Insurance Company Limited for damage of some part of
Plant and Machinery and Finished Goods due to fire occured in the plant of the Company during current
financial year and the said claim has not yet been approved by the the insurance company. But, since in

'' the opinion of the management of the Company approval of insurance claim is reasonably certain
therefore, Insurance claim of Rs, 58.49 Lacs has been accounted for and has been shown as "Insurance
claim Receivable" in Schedule 17 hereinabove.

39 The Company has filed quarterly statements with bank in lieu of working capital facilities and variation
between stock and book debts reported to bank with books of account have been qiven below:-

45 OTHER ADDITIONAL REGULATORY INFROMATIONS:

(i) Title deeds of Immovable Property not held in the name of the Company - None

(ii) The Company has not revalued any of its Property, Plant and Equipment and intangible assets during
the year

(iii) Intangible assets under development -None

(iv) The Company does not have any Benami property, where any proceedings has been initiated or
pending against the Company for holding any Benami property.

(v) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under
the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on
wilful defaulters issued by the Reserve Bank of India.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar
of Companies beyond the statutory period.

(vii) The Company has complied with respect to number of layers prescribed under Section 2(87) of the
Act.

(viii) No any Scheme of Arrangements was approved by the Competent Authority in terms of Section 230
to 237 of the Companies Act, 2013.

(ix) 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 identifed in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any
guarantee, secutrity or the like on behalf of Ultimate Beneficiaries.

(x) The Company has not advanced or loaned or invested funds to any person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that
the intermediary shall (a) directly or indirectly lend or invest in other persons or entities identifed 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 Ultimate Beneficiaries.

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

(xii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial
year

46 Previous year''s figures have been regrouped/restated wherever found necessary to confirm to the
classification of the current year.

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

For Jain Vinod and Company l*——x *

Chartered Accountants pinn

(Firm Registration No. 005420C) (Nemi Chand Jain) CtototWHw

/~\ . (pf Managing Director (DIN 00434383)

, c

(Vinod Gangwal) / Jf j

Partner I''Wf?

(Membership No. 073827) (Amit Kumar Jain)

Whole Time Director (DIN 00434515)

Place: Jaipur ftttGFO

Date 1 oth June, 2024 For shrl AhJmsa Naturals Limited

fW^V\T ocuV,¦

Aayushi Jain
Company Secretary