3.10 Provisions, Contingent Liabilities and
Contingent Assets:

The Company creates a provision when there is present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the
amount of the obligation. A disclosure for a contingent liability is
made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources.
When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote,
no provision or disclosu re is made. A con ting ent asset is a
possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the
control of the entity. Contingent assets are neither recognised
nor disclosed in standalone financial statements.

3.11 Leases:

Lease, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased asset during the
lease term, are classified as operating leases. Lease payments
under operating lease are recognised as an expense in the
profit and loss account on a straight-line basis over the lease
term, considering the renewal terms, if appropriate.

3.12 Earnings Per Share (EPS):

Basic EPS is computed using the weighted average number
of equity shares outstanding during the year. Diluted EPS is
computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year-
end, except where the results would be anti-dilutive.

3.13 Cash and Cash Equivalents:

Cash and Cash Equivalents comprises Cash-in-Hand, Short term
Deposits and Balance in Current Accounts with Banks. Cash
equivalents are short -term balances (with an original maturity
of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in
value.

3.14 Goods and Service Tax:

Goods and service tax is accounted for in the books of accounts
in accordance with the provisions of the goods and service tax
law for the time being in force, and the liability or the credits are
accordingly disclosed in the financial information.

3.15 Events occurring after the Reporting Date:

Adjusting events (that provides evidence of condition that existed
at the balance sheet date) occurring after the balance sheet date
are recognized in the standalone financial statements. Material
non adjusting events (that are inductive of conditions that arose
subsequent to the balance sheet date) occurring after the
balance sheet date are disclosed in the Board’s Report.

3.16 General:

Any other accounting policy not specifically referred to are
consistent with generally accepted accounting principles.

4.5 Aggregate number of Shares allotted as fully paid up by way of bonus shares during the period of 5 years
immediately preceding year:

During the year ended on 31^st March, 2022, the Company has allotted 40,44,600 bonus shares of ' 10 each fully paid-up.
Consequently, the Company has capitalised a sum of ' 404.46 Lakhs from "Retained earnings” and "Securities Premium” pursuant to
the approval of the shareholders through circular resolution dated July 24, 2021.

4.6 Aggregate number of Shares allotted as fully paid up pursuant to scheme of amalgamation without
payment being received in cash during the period of 5 years immediately preceding year:

During the year ended on 31^st March, 2023, the Company has allotted 9,09,216 equity shares of ' 10 each fully paid-up (Refer note
48).

4.7

(i) The Board of Directors of the Company, at its meeting held on October 29, 2024, has declared and paid an interim dividend of
' 7.50 per equity share i.e. 75% on face value of ' 10.00 per equity share.

(ii) Board of Directors of the Company have approved the Final Dividend of ' 1.00 per equity share i.e. 10% on face value of ' 10
per equity share for the Financial Year 2024-25. This payment is subject to approval by shareholders in the ensuing Annual
General Meeting.

4.8 The Company has issued equity shares of ' 10 each through preferential allotment route to Promotors/Non-promoters/Public
with an object of Re-payment of Borrowings, Future Funding Requirements, Working Capital and General Corporate Purpose. The
details of the same are as under:

(i) The term loan is secured by hypothecation of entire
Movable and Immovable Machineries, Equipment, Electrical
Installations, Furniture & Fixtures, Office Equipment and
other Movable Fixed Assets of Company.

(ii) The Home Loan is Secured by mortgage of entire building
and structures, furniture and fixture and all plant and
machinery both present and future of the property situated
at Flat No. Flat No. A/403, C/103, C/104, C/203, C/204
and C/304, Shilpi Dreams, Bharuch. The said loan was
availed by Yamuna Bio Energy Private Limited (YBPL) (Since
amalgamated with the Company w.e.f. 1^st April, 2022). The
said loan is still continuing in the name of YBPL (Shilpi
Dreams).

(iii) The Tanker Loans are secured against by hypothecation of
Tankers purchased out of Bank loan and the same is also
Secured by Personal Guarantee of Director of Company i.e.
Mr. Gaurang Shah.

(iv) The Tanker Loans are secured against hypothecation of
tankers purchased out of Bank Loan.

(v) The Vehicle Loans are Secured by hypothecation of vehicle.
The said loan was availed by Yamuna Bio Energy Private
Limited (YBPL) (Since amalgamated with the Company w.e.f.
1^st April, 2022). The loan was availed in the name of Mr. Brij

Shah, relative of Directors of the Company. The said loan is
still continuing in the aforesaid names.

(vi) The Loan from Hinduja Leyland Finance Limited is in the
nature of "Loan against Property (LAP)”, which is secured
against security of immovable properties situated at Flat
No. A/403, C/103, C/104, C/203, C/204 and C/304, Shilpi
Dreams, Bharuch owned by erstwhile YBPL.

(Vii) The Term Loan under BGCEL facility is secured by
hypothecation of machinery, equipment and other movable
fixed assets of the firm situated at Survey No 69, Padgol,
Petlad, Dist. Anand. The said loan was availed by Yamuna
Bio Energy Private Limited (YBPL) (Since amalgamated with
the Company w.e.f. 1^st April, 2022). The said loan is still
continuing in the name of YBPL.

(Viii) The unsecured loans from directors are non-interest
bearing and not repayable within twelve months from
the end of financial year. The unsecured loan from the
subsidiary i.e. Kotyark Bio Specialities Limited, carries an
interest @ 7 % p.a and is repayable on demand.

6.2 The Company has used the borrowings from banks and
financial institutions for the specific purpose for which it was
taken at the balance sheet date.

6.4 The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

6.5 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.

6.6 The Company has not received any fund from any person or entity, including Foreign entities (Funding Party), with the
understanding that the Company shall (i) directly or indirectly lend or invest in other person or entities (Ultimate Beneficiary) by or on
behalf of Funding Party or (ii) provides any guarantee or security on behalf of the Ultimate Beneficiary.

9.1 Cash Credit Facility availed from Bank of Baroda is repayable on demand and is secured by way of hypothecation of stocks book
debts upto 90 days.

9.2 Bill discounting Facilities is secured against letter of bills purchase undertaking(LDOC - 30), letter of pledge of govt. securities
(LDOC - 11) and demand/usance documentary bills having tenure no exceeding -45 days, accompanied by all dispatch documents
evidencing genuine sale of good via. invoice, bill of exchange, transport operator/railway receipt or accepted delivery challans/e-bills.

34.2 Reasons for Variance more than 25%:

1) The Debt Service Coverage Ratio (DSCR) has changed due to a decrease in the repayment obligations for the year.

2) The Return on Equity has changed during the year due to a reduction in profit as compared to the previous year.

3) The change in inventory turnover ratio during the year is due to an increase in inventory held as at the year-end.

4) In the financial year 2023-24, there were no outstanding trade payables, whereas in the current year, trade payables were
outstanding. This has resulted in a change in the ratio.

5) There is increase in average working capital during the year and as a result there is a change in Net capital turnover ratio.

6) The change in net profit ratio is primarily due to a change in depreciation. In the previous year, depreciation was charged on a

proportionate basis, whereas in the current year, it has been charged for the full year.

7) The Return on Capital Employed has decreased during the year due to a reduction in profit as compared to the previous year.

8) There is decrease in interest income during the year and as a result there is decrease in Return on Investment ratio.

Notes

(i) Discount Rate used for valuing liabilities is based on yields (as on valuation date) of Government Bonds with tenure similar to the
expected working lifetime of the employee.

(ii) Estimates of future salary increase are based on inflation, seniority, promotion and other relevant factors such as demand and
supply in the employment market. This assumption has been determined in consultation with the Company.

42. The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMP's and related parties
which are repayable on demand or given without specifying terms or period of repayment.

43. The Company does not hold any Benami Property under the Benami Transactions (Prohibition) Act, 1988.

44. The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of Companies Act, 1956.

As per our report of even date attached

For Manubhai & Shah LLP For and on behalf of Board

Chartered Accountants Kotyark Industries Limited

Firm Regn. No.106041W/W100136

(J. D. Shah) Gaurang Shah Dhruti Shah

Partner Chairman cum Whole Time Director &

Membership No. 100116 Managing Director Chief Financial Officer

DIN:03502841 DIN:07664924

Bhavesh Nagar

Company Secretary

Place: Ahmedabad Place: Vadodara

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