12) Provision, Contingent Liabilities and contingent Assets

Provisions involving substantia) degree of estimation in measurement are recognized when
there is a present obligation as a result of past events and it is probable that there will be an
out flow of resources. Contingent liabilities of the company as on March 31. 2025 are as
follows:

13) Accounting for Leases

A lease is classified at the inception dale as finance lease or an operating lease A lease that
transfers substantially all the risk and rewards incidental to the ownership to the Company
is classified as a finance lease.

The Company as a lessee;

i. Operating Lease: Rental payable under the operating lease is charged to the
Statement of Profit and Loss on a Straight-line basis over the term of the relevant
lease.

ii. Finance Lease Finance lease is capitalized at the commencement of the lease, at the lower of the fair value of the property or the present value of the minimum lease
payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance
charges and the reduction of the lease obligation so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged
directly against the income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance
lease to others,

14) Cashflow

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted
for the effects of transactions of a non-cash nature and any deferrals of past or future cash
receipts and payments The cash flows from regular operating, investing and financing
activities of the company are segregated.

15) Earnings Per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with
Accounting Standard 20. “Earnings per Share" Basic EPS is computed by dividing the Net
Profit or Loss attributable to the Equity Shareholders for the year by the weighted average
number of equity shares outstanding during the year. Diluted EPS is computed by dividing
the Net Profit or Loss attributable to the Equity Shareholders for the year by the weigh led
average number of Equity Shares outs landing during the year as adjusted for the effects of
all potential Equity Shares, except where the results are Anti - Dilutive.

the weighted average number of Equity shares outstanding during the period is adjusted
for events such a Bonus Issue, Bonus elements in right issue, share splits, and reverse share
split (consolidation of shares) that have changed the number of Equity Shares outstanding,
without a corresponding change in resources.

1 6) Discontinuing Operations

During the year the company has not discontinued any of its operations,

17) Event after Reporting Date

On May 7, 2025, the Company issued 58,60,000 equity shares of face value 10 each at a
premium of 48 per share and successfully got listed on the National Stock Exchange
(NSE) SME platform. This event occurred after the balance sheet date but prior to the date
of approval of the financial statements by the Board of Directors and is considered a
material subsequent event in accordance with applicable accounting standards.

18) The previous year's figures have been reworked, regrouped, and reclassified wherever
necessary' Amounts and other disclosures for the preceding year are included as an integral
part of the current annual financial statements and are to be read in relation to the amounts
and other disclosures relating to the current financial year.

19) Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and
Advances are subject to confirmation and therefore the effect of the same on profit could
not be ascertained.

20) Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to
confirmations and reconciliation if any, by the respective parties,

21) The account balances existing at the beginning of the period have been relied upon the
audited financial statements.

22) Amounts are in lakhs except units are in actual numbers wherever required considered
accordingly for respective computations.

23) segment Reporting

Company is primarily engaged in manufacturing of Dyes Intermediates and Acid dyes used
in industries like Textiles, Paints, Plastics, Mining.

ii. Balance sheet, Statement of Profit and Loss and Cash Flow Statement read together

with Notes to the accounts thereon, are drawn up so as to disclose the information
required under the Companies Act, 2013 as well as give a true and fair view of the
Statement of affairs of the Company as at the end of the year and results of the
Company for the year under review.

26) Tittle deeds of immovable property

According to the information and explanations given to us, the records examined by us the
title deed / lease deed of immovable properties included in Property Plant and Equipment
are held in the name of company.

27) Revaluation of property, plants and equipment’s

The Company has not revalued its Property, Plant and Equipment for the current year.

28) Loans or Advances in the nature of loans

Loans or Advances in loans are granted to promoters, directors, KMPs and the related
parties except one of subsidiaries (as defined under Companies Act, 2013,) either severally
or jointly with any other person.

29) Notes forming part of accounts in relation to Micro and small enterprise

Based on information available with the company, on the status of the suppliers being
Micro or small enterprises, on which the auditors have relied, the disclosure requirements
of Schedule 111 to the Companies Act, 2013 with regard to the payments made/due to Micro
and small Enterprises are given below:

The company has initiated the process of obtaining the confirmation from suppliers who
have registered themselves under the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above
information is compiled bused on the extent of responses received by the company from its
suppliers.

30) Intangible assets under development

There are no Intangible assets under development in the current year-

31) Details of Benami property held

The company does not hold any benami property under the Benami Transaction
(prohibition) act. 1988 and the rules there made under. Hence any proceeding has not been
initiated or pending against the company tor holding any benarni property under the Benami
Transaction (prohibition) act, 1988 and rules made there under.

32) Deferred tax

The major components of the deferred tax assets and liabilities as on March 31st 2023 are as below;

33) Borrowings from bank or financial institution on the basis of current assets

The Company has borrowings from bank's on the basis of security of current assets, the
value of inventory filed by the company with banks are in agreement with the books of
accounts as at March .31. 2025.

m

34} Willful Defaulter

The company has not been declared as willful defaulter by any bank or financial Institution
or government or government authority during the year reporting period.

35)Relationship with struck off companies

The company does not have transaction with the struck off under section 248 of companies
act. 2013 or section 560 of companies act, 1956,

,36) Registration of charge or satisfaction with Registrar of companies

The company dues not have any charges or satisfaction, which is yet to be registered with
ROC beyond the statutory period.

37) Compliance with number of layers of companies

The company is in compliance with the number of layers prescribed under clause (87) of
section 2 of company’s act read with companies (restriction on number of layers) Rules,
2017.

38) Compliance with approved scheme of Arrangements

Company does not have made any arrangements in terms of section 230 to 237 of the
Companies act 2013, and hence there is no deviation to be disclosed,

39) Utrilization of borrowed funds and share premium

During the year ended on March 31, 2023, the Company has not advanced or loaned or
invested funds (either borrowed funds or share premium or kind of funds) to any other
person(s) or entity (ies), Including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) 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

During the year ended on March 31, 2025, 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

40) Corporate social responsibility (CSR)

As per Section 133 of the Companies Act, 2013, a company, meeting the applicability
threshold, needs to spend at least 2% of its average net profit for the immediately preceding
three financial years on corporate social responsibility (CSR) activities. The areas for CSR
activities are promoting education, promoting gender equality by empowering women,
Healthcare, environment sustainability, art and culture, destitute care and rehabilitation,
disaster relief, COVID-19 relief and rural development projects, A CSR committee has
been formed by the Company as per the Act The funds were primarily utilized through the
year on these activities which are specified in Schedule VII of the Companies Act, 2013

41) Details of crypto currency and virtual currency

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

42) Undisclosed income

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The company has no such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the years 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), unless there is immunity for disclosure under any scheme.