Notes to Accounts of Tyche Industries Ltd.

Mar 31, 2024

O. Provisions

A provision is recognized 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 a reliable estimate can be made. Provisions 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.

P. Contingencies

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.

Q. Dividend distribution to equity holders

The Company recognises a liability to make dividend distribution to equity holders when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the Corporate laws in India, a final dividend distribution is authorised when it is approved by the shareholders whereas for interim dividend when authorised by board. A corresponding amount is recognised directly in other equity.

General Reserve

The Company has transferred a protion of the net profit before declaring dividend to general reserve pursuant to the earlier provisions of the companies Act 1956.

Transfer to general reserve is not mandatorily required under the Companies Act. 2013 Retained earnings

Retined earnings are the profits that the company has earned till date, less any transfers to general reserve, dividends or other distribution paid to shareholders.

Dividend

The Board of Directors in its meeting held on 28th May, 2024 have recommended for approval of members a final dividend of Rs. 2.50 per equity share of Rs. 10/- each (25%) for the financial year 2023-24.

31. Contingent liabilities

A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(ii) Bank Guarantees issued by Bank of India on behalf of the company for Rs. 5 Lakhs to Andhra Pradesh Pollution Control Board (APPCB).

32. Employee Benefits:

As far as leave encashment, the eligible employees draw the same as per their personal needs. During the year, none of the employees have claimed any amount in this regard and consequently, the company has not provided for the same under accrual basis as in accordance of the management, the expenses in this regard is not material.

The Company''s activates expose it to variety of financial risks, foreign currency risk, interest rate risk, credit risk, commodity price risk and liquidity risk. Within the boundaries of approved Risk Management Policy framework, the Company manages the volatility and minimize the adverse impact on its financial performance.

i) Credit Risk:

Credit Risk is the risk that a customer fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from dealing in derivatives, receivables from customers and other financial instruments. The company maintains that, Credit Risk is actively managed through continuous follow up with the parities and Credit information is regularly shared between business and financial function, with a framework in place to quickly identify respond and recognize cases of credit deterioration.

ii) Liquidity risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on the due date. The company''s liquidity is managed centrally with all the departments forecasting their cash and liquidity requirements. Management monitors rolling forecasts of the company''s cash flow position to ensures that the company is able to meet its obligation.

iii) Market Risk

a. Foreign Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the Company. The Company is subject to foreign exchange risk primarily due to its foreign currency revenues, expenses and borrowings. 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. The risks primarily relate to fluctuations in US Dollar, Euro and GBP against the functional currency of the Company.

b. 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 change in market interest rates. The Company is not exposed to any interest rate risk as currently there are no borrowings made by the company and also the interest-bearing assets held by the company are short term (maturity within 12 months) and are substantially independent of change in market interest rates.

c. Commodity Price Risk:

Commodity price risk arises due to fluctuation in prices of the major imported raw materials and other products. The company has a risk management framework headed by the managing director, aimed at prudently managing the risk arising arising from the volatility in commodity prices and freight costs.

34. Segment Reporting:

i. Company''s operations are predominantly related to the manufacture and processing of bulk drugs & intermediates, as such there is only one primary reportable segment. Secondary reportable segments are identified taking into account the geographical markets available to the products, the differing risks, returns and internal reporting system. Hence the segmental reporting is based on Domestic and Export sales.

ii. As a part of secondary reporting, revenues are attributed to geographical areas based on the location of customers as detailed below:

35. Forfeiture of shares:

The company has issued reminders to the shareholders for payment of calls in arrears on various dates, after the issue of said notices the company is left with unpaid capital of Rs 46,600/- (unpaid on 9,320 equity shares @ Rs 5/- share). The company after taking necessary approvals from stock exchange, the said amount will be written off in books.

36. Proposed Dividend:

The Board of Directors have proposed a dividend of 25% which amounts Rs. 2.50 per equity share held & fully paid-up. The Same shall be adjusted from other equity upon the necessary approvals and payment.

40. Additional regulatory information required under Schedule III of Companies Act 2013:

i. Note on Benami Property held:

There are no such cases in this regard and no proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

ii. Relationship with struck off companies:

The company is in the continuous process of ascertaining the details as to whether any of the parties with whom the company is dealing, are appearing in the list of companies struck off under section 248 of the Companies Act,2013 or section 560 of the Companies Act, 1956. There are no transactions with struck off companies.

iii. Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013

iv. Compliance with approved scheme(s) of arrangements:

The company has not entered into any scheme of arrangements which has an accounting impact on current and previous financial year.

v. Details of Crypto Currency or Virtual Currency:

The company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

vi. Undisclosed Income:

There is no income surrendered/disclosed as income during Current/previous year in the tax assessment under the IT Act, 1961, that has not been recorded in the books of accounts.

vii. Utilisation of borrowed funds and share premium:

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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provides any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provides any guarantee, security or the like on behalf of the ultimate beneficiaries

41. 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, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

*

42. Confirmation of Balances:

The balances outstanding on account of sundry debtors/sundry creditors/advances are subject to confirmation in respect of some parties.

43. The Figures of the previous years have been re-grouped/re-arranged wherever necessary.

44. Rounding of Amounts: All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013, unless otherwise stated.

As per our Report of even date attached For and on behalf of the Board of Directors of For M/s. P.S.N. Ravishanker & Associates TYCHE INDUSTRIES LIMITED

Chartered Accountants Sd/- Sd/-

FRN No : 003288S (G.GANESH KUMAR) (SAI SUDHAKAR P)

Sd/- Managing Director Director

(P. RAVI SHANKER) DIN: 01009765 DIN: 08379760

Partner Sd/- Sd/-

ICAI M.No: 025288 (Y. SRINIVASA RAO) (PRADOSH RANJAN JENA)

Place : Hyderabad CFO Company Secretary & Compliance Officer

Date : 28-05.2024 ICSI M.No.69364

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Mar 31, 2018

a. Terms / rights attached to equity shares

“The Company has only one class of equity shares having a par value of Rs. 10 per share.

Each holder of equity shares is entitled to one vote per share.The Company declare and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2018 amount of Dividend per share recognised as distributions to equity shareholders is Rs. 0.50 (March 31,2017: Rs.0.50)”

1. Deferred Tax Liablities (Net)

In compliance with Accounting Standard (AS-22) relating to ''Accounting for taxes on income'' issued by the Institute of Chartered Accountants of India, the Company has provided the deferred tax liability accruing during the year aggregating to Rs 309,600/- in the Profit & Loss Account. Deferred Tax Liability (Net) of ` Rs. 1,96,47,455/- shown in the Balance Sheet as on 31.03.2018 comprises of the following:

**The Information relating to Micro & Small enterprises as envisaged under the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of prinicipal and interest not forthcoming from the respective parties.

1. Other Current Liabilities

Note: 1 Disclosure pursuant to Note no 6 (G) of Part I of Schedule III to the Companies Act 2013.

A. Related Party Transactions: Related party Disclosures, as required by Accounting Standard 18 – “Related Parties Disclosures” by the Institute of Chartered Accountants of India are as given below.

All related party transactions during the year, in the ordinary course of business, were on arm’s length basis.

B. Cash and cash equivalents:

Cash and cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. For this purpose, “short-term” means investments having maturity of twelve months or less from the date of investment. Bank overdrafts that are repayable on demand and form an integral part of our cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

C. Forfeiture of shares: The company has issued notices to the shareholders for payment of calls in arrears on various dates, after the issue of said notices the company is left with unpaid capital of Rs 46,600/- unpaid on 9,320 equity shares @ Rs 5/- share. The company after taking approvals from stock exchange, the said share capital is written off accordingly in books.

D. Managerial Remuneration:

E. The Figures of the previous years have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2016

b. Terms / rights attached to equity shares

"The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declare and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2016 amount of Dividend per share recognized as distributions to equity shareholders is Rs. 0.50 (March 31,2015: Rs.0.50)"

C. Disclosure pursuant to Note no. 6(A)(g) of Part I of Schedule III to the Companies Act, 2013

The Information relating to Micro & Small enterprises as envisaged under the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal and interest not forthcoming from the respective parties.

(h) Previous year figures have been re-grouped wherever necessary to conform to the classification adopted for the current year.

(i) Figures are rounded off to the nearest rupee.

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Mar 31, 2015

A. Terms / rights attached to equity shares

"The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.The Company declare and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.During the year ended March 31, 2015 amount of Dividend per share recognised as distributions to equity shareholders is Rs. 0.50 (March 31,2014: Rs.0.50)

(B) Previous year figures have been re-grouped wherever necessary to conform to the classification adoptedforthe currentyear.

(C) Figures are rounded off to the nearest rupee.

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Mar 31, 2014

1. Deferred Tax Liablities (Net)

In compliance with Accounting Standard (AS-22) relating to ''Accounting for taxes on income'' issued by the Institute of Chartered Accountants of India, the Company has provided the deferred tax liability accruing during the year aggregating to Rs.46,85,911/- in the Profit & Loss Account. Deferred Tax Liability (Net) of Rs. 2,55,69,726/- shown in the Balance Sheet as on 31.03.2014 comprises of the following: :

(a) Previous year figures have been re-grouped wherever necessary to conform to the classification adopted for the current year.

(b) Figures are rounded off to the nearest rupee.

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Mar 31, 2013

A. Related Party Transactions:

Related party Disclosures, as required by Accounting Standard 18 "Related Parties Disclosures” by the Institute of Chartered Accountants of India are as given below.

(B) Previous year figures have been re-grouped wherever necessary to conform to the classification adopted for the current year.

(C) Figures are rounded off to the nearest rupee.

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Mar 31, 2012

1. Share Capital

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, amount of dividend per share recognised as distributions to equity shareholders is Rs.0.50 (March 31,2011: Rs.0.50)

(b) Previous year figures have been re-grouped wherever necessary to conform to the classification adopted for the current year.

(c) Figures are rounded off to the nearest rupee.

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Mar 31, 2010

1. VALUATION OF INVENTORY:

The company has adopted the Policy to value the Raw materials, stores and spares and finished goods at cost, Work- in- process is valued at cost of Raw materials plus proportionate overheads as per AS 2 issued by ICAI. Cost includes all charges incurred for bringing the goods to the location of the manufacturing facilities.

2. SECURED LOANS:

The company has availed fund based limits in the form of Rs 10.00 crores (interchangeable cash credit limit of Rs 6.00 crores, EPC limit of Rs 6.00 crores, FBP limit of Rs 6.00 crores) and non fund based limit of Rs 1.00 crores in the form of Letters of credit (Inland/ foreign) against hypothecation of stocks of raw materials, work in process, finished goods, & book debts from Bank of India & Secured by other assets & also secured by personal guarantee of Managing director and collateral securities of assets with negative lien on net block other then assets mentioned below:

1) 3.00 acres of individual land with godown situated at S.Y 94/1, Sarpavaram Village, Kakinada.

2) Plot No 31 & 32 in S.Y 92 admeasuring 520 sq yards and 487 sq yards respectively belonging to company.

3. CONFIRMATION OF BALANCES:

The balances outstanding on account of sundry debtors/sundry creditors/advances are subject to confirmation from the respective parties.

4. MICRO, SMALL AND MEDIUM UNITS DUES:

As per the information and explanations available with the company there are no dues to Micro, small and medium enterprises, as defined in the Micro, small and medium enterprises Development Act, 2006, to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made

5. PREVIOUS YEAR FIGURES:

Previous year figures are regrouped wherever necessary to make them comparable with that of current year classification.

6. ROUNDING OFF:

Paise have been rounded off to the nearest rupee.

7. OTHER PROVISIONS OF SCHEDULE-VI:

Other provisions of Schedule-VI of the Companies Act, 1956 are not applicable to the company.