^iv> provisions, contingent LIABILITIES AND ASSETS : -

A provision is recognized when there exists a present obligation as a result of past events and it
is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions
are not discounted to present value and are determined based on best estimates 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 only 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.

^v) TANGIBLE ASSETS AND CAPITAL WORK-IN-PROCRESS : -

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct
costs are capitalized until such assets if any, are ready for use. Capital work-in-progress if any,

. comprises direct cost, related incidental expenses and attributable interest, if any.

vi) INTANGIBLE ASSETS

Intangible assets if any, are recorded at the consideration paid for acquisition of such assets and
are carried at cost less accumulated amortization and impairment. Research costs are expensed
as incurred. Product development costs are expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic benefits are probable, and
the Company has an intention and ability to complete and use or sell the product and the costs
can be measured reliably.

vii) DEPRECIATION AND AMORTIZATION : -

Depreciation on tangible assets is provided on the straight-line method over the useful lives of
assets as prescribed under Part - C of Schedule II of the Companies Act, 2013. Depreciation for
assets purchased / sold during a period is proportionately charged.

Intangible assets if any, are amortized over their respective individual useful lives as prescribed
under Part - C of Schedule II of the Companies Act, 2013 on straight-line basis, commencing
from the date the asset is available to the Company for its use.

Depreciation and Amortization methods, useful lives and residual values are reviewed
periodically at each financial year end.

viii) IMPAIRMENT : -

The management periodically assesses using, external and internal sources, whether there is an
indication that an asset may be impaired. An impairment loss is recognized wherever the
carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of
the assets not selling price and value in use, which means the present value of future cash flows
expected to arise from the continuing use of the asset and its eventual disposal. An impairment
loss for an asset is reversed if, and only if, the reversal can be related objectively to an event
occurring after the impairment loss was recognized. The carrying amount of an asset is increased
to its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortization or depreciation)

had no impairment loss been recognized for the asset in prior years.

ix) FOREIGN CURRENCY TRANSACTION : -

Foreign currency denominated monetary assets and liabilities if any, are translated at exchange
rate in effect at the Balance Sheet date. The gains or losses resulting from such translations are
included in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair value are translated at the exchange rate
prevalent at the date when the fair value was determined. Non-monetary assets and non¬
monetary liabilities denominated in a foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date of transaction. Revenue, expense and cash¬
flow items denominated in foreign currencies are translated using the exchange rate in effect on
the date of the transaction. Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit for the period in which the

transaction is settled.

x) RESERCH AND DEVELOPMENT EXPENDITURE : -

Revenue expenditure pertaining to research if any, is charged to Statement of Profit and Loss.
Development costs of products are also charged to the statement of Profit and Loss / Reserve for
Business restructure unless a product’s. technological feasibility and commercial viability has
been established, in which case such expenditure is capitalized. The amount capitalized
comprises expenditure that can be directly attributed, or allocated on a reasonable and consistent
basis, to creating, producing and making the asset ready for its intended use. Fixed assets utilized
for research and development are capitalized and depreciated in accordance with the policies
stated for tangible fixed assets and intangible fixed assets.

xi) INCOME TAXES : -

Income taxes are accrued in the same period that the related revenue and expenses arise. A
provision is made for income tax, based on the tax liability computed, after considering tax
allowances and exemptions. Provisions are recorded when it is estimated that a liability due to
disallowances or other matters is probable. Minimum alternate Tax (MAT) paid in accordance
with the tax laws, which gives rise to future economic benefits in the form of tax credit against
future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing
evidence that the company will pay normal tax in future and the resultant asset can be measured
reliably. The company offsets, on a year basis, the current tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

The differences that result between the profit considered for income taxes and the profit as per
the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability
is recorded for timing differences, namely the differences that originate in one accounting period
and reverse in another, based on the tax effect of the aggregate amount of timing difference. The
tax effect is calculated on the accumulated timing difference at the end of an accounting period
based on enacted or substantively enacted regulations. Deferred tax assets in situation where
unabsorbed depreciation and carry forward business loss exists, are recognized only if there is a
virtual certainty supported by convincing evidence that sufficient future taxable income will be
available against which such deferred tax asset can be realized. Deferred tax asset, other than in
situation of unabsorbed depreciation and carry forward business loss, are recognized only if
there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carry ing values at each reporting date. Deferred tax assets and
deferred tax liabilities have been offset wherever the company has legally enforceable right to set
off current tax assets against current tax liabilities and where the deferred tax assets and deferred
tax liabilities relate to income taxes levied by same taxation authority. The income tax provision
for the interim period is made based on the best estimate of annual average tax rate expected to
be applicable for full financial year.

The Company has made provision for Income Tax of Rs. 12087412/= (Rupees one crore twenty
lac eighty seven thousand four hundred twelve only).

xii) EARNING PER SHARE : -

Basic earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity share outstanding during the period. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares. The diluted
potential equity shares are adjusted for proceeds receivable had the shares been actually issued at
fair value which is the average market value* of the outstanding shares. Dilutive potential equity
shares are deemed converted as of beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented. The number of
shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for changes effected prior period for
approval of financial statements by the Board of Directors.

xiii) INVESTMENTS : -

Trade investments are the investments made to enhance the company’s business interests.
Investments are either classified as current or long term based on management’s intention.
Current investments are carried at the lower of cost and fair value of each investment
individually. Cost for overseas investments comprises the Indian Rupee value of the
consideration paid for the investment translated at the exchange rate prevalent at the date of
investment. Long term investments are carried at the cost less provisions recorded to recognize
any decline, other than temporary, in the carrying value of each investment.

xiv) CASH AND CASH EQUIVALENTS : -

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The
company considers all highly liquid investments with a remaining maturity at the date of
purchase of three months or less and that are readily convertible to known amounts of cash to be
cash equivalents.

xv) CASH FLOW STATEMENT : -

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipt or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the company are
segregated based on the available information.

xvii) LIQUIDITY RISK : -

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Company's approach is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when due.

The Company relies on a mix of borrowings, and excess operating cash flows to meet its needs
for funds. The current committed lines of credit are sufficient to meet its short to medium term
expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure
it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowings facilities at all times so that the Company does not breach
borrowing limits or covenants (where applicable) on any of its borrowing facilities.

xxi) The company has used the borrowings from bank and financial institution for the specific
purpose for which it was taken at the balance sheet date.

xxii) In the opinion of the board assets (other than property, plant & equipment, intmgible assets and
not current investments) do have a value on realisation in the ordinery course of business at least
equil to the amount at which are they are stated as at 31/03/2025.

xxiii) The company has not revalued its Property, Plant and Equipment (including Right of Use assets)
or intangible assets or both during the year.

xxiv) The title deeds of all the immovable properties disclosed in the financial statements are held in
the name of the company.

xxv) The company does not have any C WIP.

xxvi) The company does not have any intangible assets.

xxvii) No proceedings have been initiated or are pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988.

xxviii) The company has borrowings on the basis of security of current assets and quarterely returns or
statement filed with the bank are in agreement with the books.

xxix) The company is not declared wilful defaulter by any bank or financial institution or other lender.

xxx) The company has not made any transaction with any company which is struck off by the
Registrar of Companies.

xxxi) No Charges/Satisfactions are pending to be registered with Registrar of Companies beyond the
statutory period.

xxxii) The company has not proposed any scheme of arrangements in terms of Sections 230 to 237 of
the Companies Act, 2013.

xxxiii) The company does not have layers of subsidiary or subsidiaries as provided u/s 2(87) of the Act
read with Companies (Restriction on number of layers) Rules, 2017.

xxxiv) The company has not entered into any intermediary⁷ transaction with any entity on behalf of
ultimate beneficiaries.

xxxv) The company has no transactions which are not recorded in the books of accounts, have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.

xxxvi) The company is not covered u/s. 135 of the Companies Act, 2013 as regard to CSR activities.

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

(2) NOTES ON ACCOUNTS : -

1 Balances of debtors and creditors are subject to confirmation.

2 Prior year amounts have been regrouped / reclassified wherever necessary, to conform to the
presentation in the current year.

3 Amounts in the Balance Sheet and Profit & Loss Account are rounded off to the nearest rupees.

Signature to Notes 1 to 24.

For M. R. BOMBAYWALA & CO. For ANAND RAYONS LIMITED

^Char‘^cr^X^ntants p ^

_____ ' ' Anand Gokul Bakshi Shilpa Anand Baits hi

CA Mukesh R. Bombaywala Chairman - 01942639 Director - 07986896

Partner: Mem. No. 041562 , _y ^ va hv/

PAN No. : ABIPB5899D __

ICAI Firm Reg. No.: 123117W Varsha Maheshwari Chetan G. Desai

UDIN: 25041562BMIBXT8022 Company Secretary Chief Financial Officer

SURAT : - 26th May, 2025 SURAT : - 26th May, 2025