17. Provisions and Contingent Liability: -

A Provision is recognized, if as a result of past event the company has a present obligation
that is reasonably estimable and it is probable that an outflow of economic benefits will
be required to settle the Obligation. 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 adjusted to
reflect the current best estimates.

A contingent liability is a 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 the 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. The Company does not
recognize a contingent liability but discloses its existence in the financial statements.

18. Research and Development: -

Research Costs are charged as an expense in the year in which they are incurred and
reflected under the appropriate heads of account. Development expenditure is carried
forward when its future recoverability can reasonably be regarded as assured and is
amortized over the period of expected future benefit.

1. The company has only one class of shares viz. equity shares having a par value of '10/- each
as above. All equity shares, in present and in future, rank pari passu with the existing equity
shares of the company and each shareholder is entitled to one vote per share.

2. The company is neither a subsidiary nor a holding company of any other body corporate.
Disclosures as regards the Shareholdings in or by such body-corporate, accordingly, are not
applicable on the company.

3. In the Event of Liquidation of the company, the shareholders of equity shares will be entitled
to receive remaining assets of the company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by shareholders.

*#1.The Term loans from Union Bank is secured by hypothecation of entire plant &
machinery, electrical installations of the Company situated at Plot no. 160, Devraj Industrial
Park, Piplaj - Pirana Road, Village Piplaj, Ahmedabad 382405.

# 2. The above Term Loan from Union Bank is also secured by way collateral security of
EMG/First charge on factory land admeasuring 4724 Sq. Yds. and building thereon at Plot
No. 160, Devraj Industrial Estate, Prana Piplaj Road, Village - Piplaj, Ahmedabad owned by
company.

# 3. The above Term Loan from Union Bank is also secured by way collateral security of
EMG/First charge on entire P&M and other movable assets of the company except vehicle
financed by other banks/FIs both existing & Proposed.

# 4. The above Term Loan from Union Bank is also secured by way of personal guarantee of
Mr. Ashutosh D Gandhi (MD) & Mrs. Sneha A Gandhi. (Whole-Time Director) upto Rs. 100
Lacs as per Bank Agreement.

# 5. The above Term Loan from Union Bank is Secured by way of hypothecation of Roof Top
Solar Power Plant and Other.

Note: Company is not declared wilful defaulter by any bank or financial institutions or other
lender

**The company has begun the supplier identification process in accordance with the
MSMED Act 2006. However, the categorization breakdown between entities falling under
the MSME classification and others has not been furnished. Given the absence of any
correspondence from creditors we have presumed it to be non MSME.

***Balances of Trade Payable are subject to Confirmations.

****Trade payable Ageing Schedule provided by Management is believed to be accurate
and reliable.

*The difference of greater than 10% is due to postdated entries and typing error in
statement.

3.26 Retirement Benefits:-

Disclosure Requirement as per AS-15 (revised 2005) "Employee Benefits" notified
under section 133 of the Companies Act, 2013

a) Defined Contribution plan (Provident Fund) included in Employee Benefit
Expenses during Current year is ^ 4,75,394 (Previous year i.e., F.Y. 2022-23
^4,92,347)

b) Defined benefit Plan-

Ahimsa Industries Limited has defined benefit gratuity plan.

The company has created a gratuity fund which is managed by the Life
Insurance Corporation of India. The premium paid for the gratuity is treated
as deductible expense for the company and is not treated as perks in the
hands of the employees. The amount paid by the Company for the Gratuity
Fund to LIC is mentioned in the below mentioned table:

3.27 Management Remuneration-

Disclosures with respect to the remuneration of Directors and employees as required
under section 197 of Companies Act, 2013 and Rule5(1) Companies (Appointment and
Remuneration of Managerial Personnel Rules, 2014) has been provided in the below
mentioned table: -

3.31 Realizations:-

In the opinion of the Board and to the best of its knowledge and belief, the value on
realization of current assets, loans and advances will, in the ordinary course of business is
not less than the amounts at which they are stated in the Balance sheet.

3.32 Impairment of Assets:-

The management of the company has carried out an exercise to ascertain impairment of
Fixed Assets, if any, In the opinion of the management of the company there are no
indication of impairment of assets as at 31/03/2024 and therefore no effect of
impairment is required to be given in the books of account.

3.33 Micro Small and Medium Enterprise (MSME) Creditors: -

The Micro Small and Medium Enterprise registered under The Micro small and Medium
Enterprise Development Act 2006 have been taken based on the list of MSME creditors
provided by the management. The Company has initiated the process of identification of
suppliers registered under Micro and Small Enterprise Development Act, 2006, by
obtaining confirmations from all suppliers. Information has been collated to the extent
of information received. However, as the Company has not received any claims in respect
of such interest and as such, no provision has been made in the books of accounts

3.34 General Notes: -

• Previous Year's figures have been regrouped/reclassified wherever necessary to
correspond with current year's classification/disclosure.

• Balances shown under Long-term borrowings, long term provisions, short term
provisions, Trade payables, Other current liabilities, long term loans and advances,
inventories, Trade Receivables, Short term loans and advances and other current
assets, etc. are subject to confirmation/reconciliation, if any. The management
does not expect any material difference affecting the current year's financial
statements.

• Cash Balance is taken as valued & certified by management.

• Confirmations/certificates in respect of unsecured loans, advances from
customers, advances recoverable in cash or in kind, investments and various other
parties are awaited.

3.35 Pending Litigations and Civil Proceedings: -

• There are no outstanding litigations, suits, criminal or civil prosecutions,
proceedings or tax liabilities against/by our Company, our Directors, our Promoters
and our Group Entities and there are no defaults, non-payment of statutory dues,
over-dues to banks/financial institutions, defaults against banks/financial
institutions by our Company, default in creation of full security as per terms of
issue/other liabilities, no proceedings initiated for economic/civil/any other
offences (including past cases where penalties may or may not have been awarded

and irrespective of whether they are specified under paragraph (I) of Part 1 of
Schedule V to the Companies Act) other than unclaimed liabilities of our Company
and no disciplinary action has been taken by SEBI or any stock exchange against our
Company, our Promoters, our Directors and Group Entities.

• Further, there are no past cases in which penalties have been imposed on our
Company, our Promoters, our Directors or our Promoter Group Entities, and there
is no outstanding litigation against any other Company whose outcome could have
a material adverse effect on the position of our Company. Further, there are no
cases of litigation, defaults etc. in respect of companies/firms/ventures with which
the Promoters were associated in the past but are no longer associated, in respect
of which the name(s) of the Promoters continues to be associated.

• Further, there are no show-cause notices / claims served on our Company, our
Promoters, our Directors or our Group Entities from any statutory authority /
revenue authority that would have a material adverse effect on our business.

3.36 Contingent Liabilities:-

The below mentioned contingent Liabilities are standing as on the Balance Sheet Date:

i. The State of Gujarat through Commissioner of Commercial Tax, C -2, Rajya Kar
Bhavan, Ashram Road, Ahmedabad has filed an appeal against the order of
Gujarat Valued Added Tax Tribunal, Ahmedabad has ordered to consider PET
Preform is being Packing Material falling under Entry 55 of Schedule ll of the
Gujarat Value Added Tax, 2003 whereas The Department of Commercial Tax-
Gujarat filled an Appeal into a High Court of Gujarat against the order of tribunal
to consider the Entry treated as Residuary Entry 87 of 2nd Schedule of The
Gujarat Value Added Tax, 2003 and levy the Tax @ 12.5% plus 2.5% as
Additional lax instead of 4% plus 1% as Additional Tax as ordered by Gujarat
Value Added Tax Tribunal, Ahmedabad. Amount of the Liability cannot be
quantified. Lf Honourable High Court of Gujarat set aside the order of the
Tribunal, the Liability may arise on the sales made at Local Rate.

ii. The company has following outstanding disputed demand under the Income
Tax Act, 1961:

3.37 Indirect Tax Proceedings Involve by Company (VAT Matters)

i. M/s Ahimsa Industries Pvt Ltd has sold PET Preform on 23.08.2012 vide Tax
Invoice No.106. Company file an application inquiring about the applicable rate
of tax on the sale of this product to be used as packing material. The appellant
has contended that the PET Preform is a packing material and it falls under Entry
55 of Schedule II to the Gujarat Value Added Tax Act, 2003 on 30.08.2012.
However, the learned Joint Commissioner of Commercial Tax (Legal) Vide Order
No. VAT/Sec. 80/2012/D/237/J.504/507 had determined dated on 20/11/2012
held that PET preform is not a Packing Material and it's included as Residuary
Goods. He held that it is covered under Entry 87 of Schedule II to the Act and it
is accordingly taxable at the rate of 12.5% plus 2.5% additional tax. Instead of
4% 1% as charged by company.

ii. In against the order No. VAT/K-80/2012/D/237/J.504/507, dated 20.11.2012 of
the learned Joint Commissioner of Commercial Tax, Company filed appeal, dated
28.11.2012 in the Gujarat Value Added Tax Tribunal, Ahmedabad. The Hon'ble
Bench vide in its Order No. B-1718/2013/First Appeal No.9/12 dated 24.04.2013
of Tribunal held that a PET Preform is convenient form of packing and strictly
used as end product for packing purposes only. Therefore, it is held to be
declared as polythene packing material falling under Entry 55 of Schedule II to
the GVAT Act and liable to be taxed accordingly and the same cannot be treated
under residuary Entry 87 of Schedule II to the Act. The order of the determining

authority is therefore, not just and proper and the appellant is not liable to be
taxed @ 12.5% plus 2.5% by way of additional tax.

iii. Being aggrieved and dissatisfied by the Judgment and order dated 24/04/2013,
passed in First appeal no. 9 of 2012 by Hon'ble Gujarat Value Added Tax tribunal
at Ahmedabad the State of Gujarat through the Commissioner of Commercial
tax (Applicant) filed appeal against M/S Ahimsa Industries Pvt. Ltd. (Respondent)
under the Tax Appeal No.1354 of 2014 dated on 13/05/2014 before the Hon'ble
High Court of Gujarat at Ahmedabad. Now the proceeding of this case is pending
in the Hon'ble High Court of Gujarat.

For Mistry & Shah LLP For and on behalf of the Board of Directors,

Chartered Accountants

FRN:122702W/W-100683 Sd/- Sd/-

Ashutosh D. Gandhi Sneha A. Gandhi

Managing Director Whole Time Director

DIN:00654563 DIN:00654675

Sd/- Sd/- Sd/-

Partner Monali Maheswari Darshan Mistri

Krunal Shah Company Secretary CFO

M. No. 144596 M.No. A53530

UDIN:24144596BKFRJJ1529

Place : Ahmedabad Place : Ahmedabad

Date : May 18, 2024 Date : May 18, 2024