Ishan Dyes and Chemicals Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

(j) Provision, contingent liabilities and contingent assets (IND AS 37)

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate can be made. 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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

(k) Taxes (IND AS 12)

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in
equity. In which case, the tax is also recognised in other comprehensive income or equity.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the
Balance sheet date.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities and assets are measured atthe tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) thathave
been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(l) Financial instruments (IND AS 109)

i) Financial Assets

A. Initial recognition and measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

B. Subsequent measurement

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the Company classifies its debt instruments:

a) Financial assets carried at amortised cost (AC)

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt
investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in finance income using the effective interest rate method.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at
fair value through other comprehensive income (‘FVTOCI’). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue
and foreign exchange gains or losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised as gains/ (losses) within other income or other expense. Interest income from these financial assets is included in other income using the
effective interest rate method.

c) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL and is
not part of a hedging relationship is recognised in profit or loss and presented net in the Statement of Profit and Loss as gains/(losses) within other income or other expense in the period in which it
arises. Interest income from these financial assets is included in other income.

C. Investment in equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in OCI,
there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as Other
Income when the Company’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised as gains/(losses) within other income or other expense
in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value.

ii) Financial liabilities

A. Initial recognition and measurement

The Company’s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs.

B. Subsequent measurement

Subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where
appropriate, a shorter period.

(m) Cash Dividend to Equity Holders of the Company:

The Company recognises a liability to make cash distributions to equity holders of the Company 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 distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

(n) Fair Value Measurement (IND AS 113)

The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date.

Fair value is the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between market participantsat the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(o) Events occurring after the balance sheet date (IND AS 10)

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting
period.

Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared alter the reporting period but before the issue of financial
statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements.

(p) Intangible Assets

Intangible Assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation. Amortisation is recognised on straight line basis over their estimated useful lives of 5
years, which reflects the pattern in which the asset''s economic benefits are consumed. The estimated useful life, amortisation method and the amortisation period are reviewed at the end of each reporting
period, with effect of any change in estimate being accounted for on a prospective basis.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the
difference between the net disposal proceeds and the carrying amount of the assets, and are recognised in the profit and loss account when the asset is derecognised.

(q) Earning Per Share (EPS)

The Company reports basic and diluted earning per share in accordance with Ind AS 33 on Earning per share. Basic earning per share is computed by dividing the net profit or loss for the period by the
weighted average number of equity share outstanding during the period. Diluted earning per share is computed by dividing the net profit or loss by the weighted average number of equity shares
during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti- dilutive.

(r) Standards Issued but not Effective

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 31,2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1,2024. The
Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its Standalone Financial Statements.

Notes:

1) HDFC Term Loan is primarily Secured against of the stock, book debts and Plant and machineries of the Company. The term loan was repayable
in 70 Monthly Instalment and carrying interest rate of 9.50% p.a..

2) HDFC Term Loan is primarily Secured against of the stock, book debts and Plant and machineries of the Company. The term loan was repayable
in 84 Monthly Instalment and carrying interest rate of 9.50% p.a..

3) The Kalupur Commercial Co-Op Bank Limited has sanctioned in agreegate of Rs. 36.67 Crores of various credit facilities including Cash Credit,
Machinery loan I and II, Secured loan, working capital term loan and forward contract limit. The said facilities are secured by the Stock and
book debts, machineries and properties of the Company by way of exclusive charge of equitable mortgage and composite deed of
hypothecation of stock, book debts and existing machineries. Further, Personal Guarantees of Mr. Piyushbhai N Patel and Mr. Shrinal Patel are
also provided. The machinery loan II and working capital term loan are repayable in 60 monthly equal instalment and carrying interest rate of
9.5% p.a.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

In assessing the realisability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will not
be realised. The ultimate realisation of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which
the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future
taxable income, and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable
income over the periods in which the deferred income tax assets are deductible, management believes that the Company will realise the benefits of
those deductible differences. The amount of the deferred income tax assets considered realisable, however, could be reduced in the near term if
estimates of future taxable income during the carry forward period are reduced.

Note - 19.1- Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises
should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated alter filing of the Memorandum in accordance with the
‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act'').

The disclosure in respect of the amounts payable to such Enterprises as at March 31,2025 has been made in the Financials Statements based on information available
with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provision of the Act is not expected to
be material. The Company has not received any claim for interest from any Supplier as at Balance-Sheet Date.

As per Indian Accounting Standard 19 "Employee benefits", the disclosures as defined are given below :

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees ''Pension Scheme (EPS) with the
government, and certain state plans such as Employees'' State Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI
covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined
contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are
normally based on a certain proportion of the employee''s salary. During the year, the Company has recognised the following amounts in the
Account towards company''s contribution:

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit
plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation.

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service.

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan
provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said
plan. The death benefit plan is non funded.

Terms and Conditions of transactions with related parties

1. The Company''s transactions with related parties are at arm''s length. Management believes that the company''s transactions with related
parties post March 31, 2024 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial
statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the period end.
Outstanding balances at the year-end are unsecured and settlement occurs in cash.

2. For the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amount sowed by related
parties (31 March 2024: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party
and the market in which the related party operates.

3. The future liability for Gratuity is provided on aggregated basis for all the employees of the Company taken as a whole, the amount
pertaining to KMPs is not ascertainable separately and therefore not included above.

Commitments with Related Parties

The Company has not provided any commitment to the related party as at March 31,2025 (March 31,2024: Rs. NIL).

Note - 44 Capital Management

For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to
the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.
To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest
bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Companies capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would
permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and
borrowing in the current period.

As at March 31,2025, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing
capital during the years ended March 31,2025.

Note - 45 Dividend

No dividend declared or paid during the Financial Year 2024-25.

Note - 46 Financial Risk Management - Objectives and Policies

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of
these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets, other than derivatives, include trade and
other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company''s risk management framework.

The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the company''s activities.

The Company''s audit committee oversees how management monitors compliance with the company''s risk management policies and procedures,
and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its
oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures,
the results of which are reported to the audit committee.

Note - 46.1 : Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum
credit risk exposure.

(a) Trade receivables and loans

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers
the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is
analyzed individually for creditworthiness before the company''s standard payment and delivery terms and conditions are offered. Sale limits are
established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 90 days for customers.

(b) Cash and cash equivalents

The company holds cash and cash equivalents of Rs. 14.26 Lakhs at March 31,2025 (March 31,2024: Rs. 16.02 Lakhs). The cash and cash equivalents
are held with bank and cash on hand.

Note - 46.2 : 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 to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation.
The information included in the tables have been drawn up based on the undiscounted cashflows of financial liabilities based on the earliest date on which the
Company may be required to pay. The company believes that the working capital and terms loans are sufficient to meet its current requirements. Details of such
loan are given as below:

(c) Commodity Price Risk

Looking at the varying product mix each year, it is not practical to calculate the impact on Profit after tax of the Company due to changes in material prices.

Note - 47 FINANCIAL INSTRUMENTS - FAIR VALUES & RISK MANAGEMENT
Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measure date quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from
banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual
credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance
sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique.

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 : Inputs other than the quoted prices included within Level1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Inputs based on unobservable market data

Note - 48 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 49 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary
course of business.

Note - 50 SEGMENT REPORTING

The Company''s Whole Time Director (WTD) and Chief Financial Officer (CFO) examines the Company''s performance from business and
geographic perspective. In accordance with Ind AS-108 - Operating Segments, evaluation by the WTD and CFO and based on the nature
of activities performed by the Company, which primarily relate to Manufacturing of Chemicals, the Company does not operate in more
than one business segment.

Note - 51 Net Exchange Gain included in the profit and loss account is Rs. 94.91 Lakhs (Gain in PY Rs. 69.67 Lakhs).

Note - 52 Events occurred after the Balance Sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of financial
statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements.
As of 28th May 2025 there were no material subsequent events to be recognized or reported that are not already disclosed.

Note - 53 No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules
made thereunder during the year ended March 31, 2025 and March 31, 2024.

^{Note - 54} The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority
during the year ended March 31, 2025 and March 31, 2024.

Note - 55 The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560
of the Companies Act, 1956 during the year ended March 31, 2025 and March 31, 2024.

Note - 56 There are no charges or satisfactions which were to be registered with the Registrar of Companies beyond the statutory period during the
year ended March 31, 2025 and March 31, 2024.

Note - 57 The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31,2025 and March 31,

2024.

^{Note - 58} The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013 during the year ended March 31,2025 and March 31, 2024.

Note - 59 During the year ended March 31,2025 and March 31, 2024, the Company has not surrendered or disclosed as income any transactions not
recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961)

^{Note - 60} As at year end March 31, 2025 and March 31, 2024, the Company has used the borrowings from banks and Financials Institutions for the
specific purpose for which it was taken.

^{Note - 61} During the year ended March 31, 2025 and March 31, 2024, the Company has granted loans or advances to Promoters, Directors, KMPs
and Related parties (as defined under the Companies Act, 2013) as given below.

Note - 62 During the year ended March 31, 2025 and March 31, 2024, the Company has not advanced or loaned or invested funds (either borrowed
funds or share premium or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

^{Note -} 63 During the year ended March 31, 2025 and March 31, 2024, the Company has not received any fund from any person or entity, including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

^{Note - 64} The Company is in compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017 during the year ended March 31,2025 and March 31,2024.

Note - 65 Previous year''s figures have been regrouped, reclassified wherever necessary to correspond with the current year''s classification or
disclosure.

^{Note - 66} Figures have been rounded off to the nearest rupee.

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Mar 31, 2024

(j) Provision, contingent liabilities and contingent assets (IND AS 37)

Provision is recognised in the accountswhen there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. 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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

(k) Taxes (IND AS 12)

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(l) Financial instruments (IND AS 109)

i) Financial Assets

A. Initial recognition and measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

B. Subsequent measurement

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

a) Financial assets carried at amortised cost (AC)

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (‘FVTOCI’). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised as gains/ (losses) within other income or other expense. Interest income from these financial assets is included in other income using the effective interest rate method.

c) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in profit or loss and presented net in the Statement of Profit and Loss as gains/(losses) within other income or other expense in the period in which it arises. Interest income from these financial assets is included in other income.

C. Investment in equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as Other Income when the Company’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised as gains/(losses) within other income or other expense in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value.

ii) Financial liabilities

A. Initial recognition and measurement

The Company’s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs.

B. Subsequent measurement

Subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

(m) Cash Dividend to Equity Holders of the Company:

The Company recognises a liability to make cash distributions to equity holders of the Company 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 distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date.

Fair value is the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’sability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant thatwould use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(o) Events occurring after the balance sheet date (IND AS 10)

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared after the reporting period but before the issue of financial statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements.

(p) Intangible Assets

Intangible Assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation. Amortisation is recognised on straight line basis over their estimated useful lives of 5 years, which reflects the pattern in which the asset''s economic benefits are consumed. The estimated useful life, amortisation method and the amortisation period are reviewed at the end of each reporting period, with effect of any change in estimate being accounted for on a prospective basis.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the assets, and are recognised in the profit and loss account when the asset is derecognised.

(q) Earning Per Share (EPS)

The Company reports basic and diluted earning per share in accordance with Ind AS 33 on Earning per share. Basic earning per share is computed by dividing the net profit or loss for the period by the weighted average number of equity share outstanding during the period. Diluted earning per share is computed by dividing the net profit or loss by the weighted average number of equity shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti- dilutive.

irj OTanaarab ibbuea dut noT cnecnve

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.

Notes:

1) Vehicle Loan is secured by Hire Purchase of vehicle where the vendors has a lien on and right of repossession of specific vehicle. The loan is

repayable in 36 monthly instalments and carries interest rate of 7.50% p.a.

2) Vehicle Loan is secured by Hire Purchase of vehicle where the vendors has a lien on and right of repossession of specific vehicle. The loan is

repayable in 36 monthly instalments and carries interest rate of 7.63% p.a (approx.).

3) Machinery Loan is primarily Secured against first & exclusive charge by way of hypothecation of entire plant and machinery, equipments of the company. The term loan is repayable in 36 Monthly Instalment and carrying interest rate of 9.15% p.a..

4) The Kalupur Commercial Co-Op Bank Limited has sanctioned in agreegate of Rs. 39.33 Crores of various credit facilities including Cash Credit, Machinery loan I and II, Secured loan, working capital term loan and forward contract limit. The said facilities are secured by the Stock and book debts, machineries and properties of the Company by way of exclusive charge of equitable mortgage and composite deed of hypothecation of stock, book debts and existing machineries. Further, Personal Guarantees of Mr. Piyushbhai N Patel and Mr. Shrinal Patel are also provided. The machinery loan II and working capital term loan are repayable in 60 monthly equal instalment and carrying interest rate of 9.15% p.a.

5) Term Loan is from Kotak Mahindra Bank Limited. The same is secured by way of first pari pasu of hypothecation charge on all existing and future current assets and moveable fixed assets of the Company share with Kalupur Commercial Co Op Bank Limited (except moveable fixed assets exclusively financed by Kotak Mahindra Bank Limited) and also secured by first and exclusive registered mortgage charge on immovable properties being land and building situated at primarily Secured against first & exclusive charge by way of mortgage of immovable properties being land and building situated at Plot No 24,25 and 26, Phase 2, GIDC Vatva, Ahmedabad owned by the Company. The said term loan is further secured by way of second charge by way of registered mortgage of immovable properties being land and building situated at plot no 18, GIDC Estate, Phase 1, Vatva, Ahmedabad belonging to the Company. Further, Personal Guarantees of Mr. Piyushbhai N Patel and

Mr. Shrinal Patel are also provided. The term loan is repayable in 84 Monthly Instalment (including moratorium of 12 months) and carrying interest rate of 9.00% p.a.(Repo rate 2.5% p.a.).

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation.

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service.

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

Terms and Conditions of transactions with related parties

1. The Company''s transactions with related parties are at arm''s length. Management believes that the company''s transactions with related parties post March 31, 2023 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the period end. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

2. For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amount sowed by related parties (31 March 2023: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

3. The future liability for Gratuity is provided on aggregated basis for all the employees of the Company taken as a whole, the amount pertaining to KMPs is not ascertainable separately and therefore not included above.

Commitments with Related Parties

The Company has not provided any commitment to the related party as at March 31, 2024 (March 31, 2023: Rs. NIL).

In order to achieve this overall objective, the Companies capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31,2024, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024.

Note - 44 Dividend

No dividend declared or paid during the Financial Year 2023-24.

Note - 45 Financial Risk Management - Objectives and Policies

The Company’s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company’s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company’s risk management framework.

The Company’s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

The Company’s audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee

Note - 45.1 : Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

(a) Trade receivables and loans

The company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 90 days for customers.

(b) Cash and cash equivalents

The company holds cash and cash equivalents of Rs. 16.02 Lakhs at March 31,2024 (March 31,2023: Rs. 27.32 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

Note - 45.2 : 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 to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation. The information included in the tables have been drawn up based on the undiscounted cashflows of financial liabilities based on the earliest date on which the Company may be required to pay. The company believes that the working capital and terms loans are sufficient to meet its current requirements. Details of such loan are given as below:

(c) Commodity Price Risk

Looking at the varying product mix each year, it is not practical to calculate the impact on Profit after tax of the Company due to changes in material prices.

Note - 46 FINANCIAL INSTRUMENTS - FAIR VALUES & RISK MANAGEMENT Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measure date quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique.

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 : Inputs other than the quoted prices included within Level1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Inputs based on unobservable market data

Note - 47 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 48 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

Note - 49 SEGMENT REPORTING

The Company’s Whole Time Director (WTD) and Chief Financial Officer (CFO) examines the Company’s performance from business and geographic perspective. In accordance with Ind AS-108 - Operating Segments, evaluation by the WTD and CFO and based on the nature of activities performed by the Company, which primarily relate to Manufacturing of Chemicals, the Company does not operate in more than one business segment.

Note - 50 Net Exchange Gain included in the profit and loss account is Rs. 69.67 Lakhs (Gain in PY Rs. 57.88 Lakhs).

Note - 51 Events occurred after the Balance Sheet date

The Company evaluates events and transactionsthat occur subsequent to the balance sheet date but prior to approval of financial statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 30th May 2024 there were no material subsequent events to be recognized or reported that are not already disclosed.

Note - 52 No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami PropertyTransactions

Act, 1988 (asamended in 2016) (formerly the BenamiTransactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunderduring theyear ended March 31, 2024 and March 31, 2023.

Note - 53 The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended

March 31,2024 and March 31,2023.

Note - 54 The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act,

1956 during the year ended March 31,2024 and March 31, 2023.

Note - 55 There are no charges or satisfactions which were to be registered with the Registrar of Companies beyond the statutory period during the year ended March 31,

2024 and March 31,2023.

Note - 56 The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2024 and March 31, 2023.

^{Note - 57} The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act,

2013 during the year ended March 31, 2024 and March 31, 2023.

^{Note - 58} During the year ended March 31, 2024 and March 31, 2023, the Company has not surrendered or disclosed as income any transactions not recorded in the

books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

Note - 59 As at year end March 31,2024 and March 31,2023, the Company has used the borrowings from banks and Financials Institutions for the specific purpose for

which it was taken

Note - 60 During the year ended March 31, 2024 and March 31, 2023, the Company has granted loans or advances to Promoters, Directors, KMPs and Related parties (as

defined under the Companies Act, 2013) as given below.

Note - 61 During the year ended March 31, 2024 and 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 or entity, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Note - 62 During the year ended March 31, 2024 and March 31, 2023, the Company has not received any fund from any person or entity, including foreign entities

(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company sha

(a) directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

Note - 63 The Company is in compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction

on number of Layers) Rules, 2017 during the year ended March 31,2024 and March 31,2023.

Note - 64 Previous year''s figures have been regrouped, reclassified wherever necessary to correspond with the current year''s classification or disclosure.

Note - 65 Figures have been rounded off to the nearest rupee.

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Mar 31, 2023

(j) Provision, contingent liabilities and contingent assets (IND AS 37)

"Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. 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.""Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.""Contingent assets are neither recognised nor disclosed in the financial statements."

(k) Taxes (IND AS 12)

"The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.""Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.""Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period."

(l) Financial instruments (IND AS 109)

i) Financial Assets

A. Initial recognition and measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

B. Subsequent measurement

"Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement"categories into which the Company classifies its debt instruments:"

a) Financial assets carried at amortised cost (AC)

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (''FVTOCI''). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised as gains/ (losses) within other income or other expense. Interest income from these financial assets is included in other income using the effective interest rate method.

c) Financial assets at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in profit or loss and presented net in the Statement of Profit and Loss as gains/(losses) within other income or other expense in the period in which it arises. Interest income from these financial assets is included in other income.

C. Investment in equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company''s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss. Dividends from such investments are recognised in the Statement of Profit and Loss as Other Income when the Company''s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised as gains/(losses) within other income or other expense in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value.

ii) Financial liabilities

A. Initial recognition and measurement

The Company''s financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs.

B. Subsequent measurement

Subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

(m) Cash Dividend to Equity Holders of the Company:

The Company recognises a liability to make cash distributions to equity holders of the Company 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 distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

(n) Fair Value Measurement (IND AS 113)

"The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date."Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:""In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.""A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.""The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.""All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:""Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities."Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable."Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable""For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period."

(o) Events occurring after the balance sheet date (IND AS 10)

"Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.""Dividends declared by the Company after the reporting period are not recognized as liability at the end of the reporting period. Dividends declared after the reporting period but before the issue of financial statements are not recognized as liability since no obligation exists at that time. Such dividends are disclosed in the notes to the financial statements."

(p) Intangible Assets

Intangible Assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation. Amortisation is recognised on straight line basis over their estimated useful lives of 5 years, which reflects the pattern in which the asset''s economic benefits are consumed. The estimated useful life, amortisation method and the amortisation period are reviewed at the end of each reporting period, with effect of any change in estimate being accounted for on a prospective basis.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the assets, and are recognised in the profit and loss account when the asset is derecognised.

(q) Earning Per Share (EPS)

The Company reports basic and diluted earning per share in accordance with Ind AS 33 on Earning per share. Basic earning per share is computed by dividing the net profit or loss for the period by the weighted average number of equity share outstanding during the period. Diluted earning per share is computed by dividing the net profit or loss by the weighted average number of equity shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti- dilutive.

(r) Standards Issued but not Effective

"On March 31, 2023, the Ministry of Corporate Affairs (MCA) through notification, notified the amendments to existing standards which are effective for annual periods beginning after 1st April 2023. Key amendments relating to the same where financial statements are required to comply are: - Amendments to Ind AS 12 Income Taxes— Deferred Tax related to Assets and Liabilities arising from a Single Transaction:

Under the amendments, an entity does not apply the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. Equal taxable and deductible temporary differences may arise on initial recognition of an asset and liability in a transaction that is not a business combination and affects neither accounting nor taxable profit. For example, this may arise upon recognition of a lease liability and the corresponding right-of-use asset applying Ind AS 116 Leases at the commencement date of a lease. The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations.

-Amendments to Ind AS 1 Presentation of Financial Statements - Disclosure of Accounting Policies:

The amendments replace all instances of the term ''significant accounting policies'' with ''material accounting policy information’. Accounting policy information is material if, when considered together with other information included in an entity''s financial statements, it can reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements. The supporting paragraph in Ind AS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

-Amendments to Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors— Definition of Accounting Estimates:

The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty”. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates.

These amendments are not expected to have a significant impact on the Company''s Standalone Financial Statements. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the company when it will adopt the respective standards."

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation:

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service:

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

Terms and Conditions of transactions with related parties

1. The Company''s transactions with related parties are at arm’s length. Management believes that the company''s transactions with related parties post March 31, 2022 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the period end. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

2. For the year ended 31 March 2023, the Company has not recorded any impairment of receivables relating to amount sowed by related parties (31 March 2022: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

3. The future liability for Gratuity is provided on aggregated basis for all the employees of the Company taken as a whole, the amount pertaining to KMPs is not ascertainable separately and therefore not included above.

Note - 41 Capital Management

For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Companies capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.

As at March 31, 2023, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2023.

Note - 42 Dividend

No dividend declared or paid during the Financial Year 2022-23.

Note - 43 Financial Risk Management - Objectives and Policies

The Company''s financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company''s principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.

The Company''s activities are exposed to Credit risk, Market risk and Liquidity risk.

The Board of directors of the Company are overall responsible for the establishment and oversight of the company''s risk management framework. The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

The Company''s audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee

Note - 43.1 : Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

(a) Trade receivables and loans

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.

The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 90 days for customers.

(b) Cash and cash equivalents

The company holds cash and cash equivalents of Rs. 27.32 Lakhs at March 31, 2022 (March 31, 2021: Rs. 27.01 Lakhs). The cash and cash equivalents are held with bank and cash on hand.

Note - 43.2 : 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 to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation.

The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company may be required to pay. The company believes that the working capital and terms loans are sufficient to meet its current requirements. Details of such loan are given as below:

Note - 43.3 : Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(a) Foreign Currency Risk

The Company also operates internationally and major portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risks though operating activities in foreign currency. The functional currency of the Company is INR.

Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The Company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.

(c) Commodity Price Risk

Looking at the varying product mix each year, it is not practical to calculate the impact on Profit after tax of the Company due to changes in material prices.

Note - 44 FINANCIAL INSTRUMENTS - FAIR VALUES & RISK MANAGEMENT

Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

1. The fair value of investment in quoted equity shares and mutual funds is measure date quoted price or NAV.

2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique. Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 : Inputs other than the quoted prices included within Level1 that are observable for the asset or liability, either directly or indirectly. Level 3 : Inputs based on unobservable market data

Note - 45 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 46 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the

ordinary course of business.

Note - 47 SEGMENT REPORTING

The Company''s Whole Time Director (WTD) and Chief Financial Officer (CFO) examines the Company’s performance from business and geographic perspective. In accordance with Ind AS-108 - Operating Segments, evaluation by the WTD and CFO and based on the nature of activities performed by the Company, which primarily relate to Manufacturing of Chemicals, the Company does not operate in more than one business segment.

Note - 48 Net Exchange Gain included in the profit and loss account is Rs. 57,87,725/- (Gain in PY Rs. 1,23,44,550/-).

Note - 49 Events occurred after the Balance Sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of financial statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements.As of 29th May 2023 there were no material subsequent events to be recognized or reported that are not already disclosed.

Note - 50 No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31, 2023 and March 31, 2022.

Note - 51 The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government

authority during the year ended March 31, 2023 and March 31, 2022.

Note - 52 The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2023 and March 31, 2022.

Note - 53 There are no charges or satisfactions which were to be registered with the Registrar of Companies beyond the statutory period during the year ended March 31, 2023 and March 31, 2022.

Note - 54 The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2023 and March 31, 2022.

Note - 55 The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year ended March 31, 2023 and March 31, 2022.

Note -56 During the year ended March 31, 2023 and March 31, 2022, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

Note - 57 As at year end March 31, 2023 and March 31, 2022, the Company has used the borrowings from banks and Financials Institutions for the specific purpose for which it was taken.

Note - 58 During the year ended March 31, 2023 and March 31, 2022, the Company has granted loans or advances to Promoters, Directors, KMPs and Related parties (as defined under the Companies Act, 2013) as given below.

Note - 59 During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Note - 60 During the year ended March 31, 2023 and March 31, 2022, the Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

Note - 61 The Company is in compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the year ended March 31, 2023 and March 31, 2022.

Note - 62 Previous year''s figures have been regrouped, reclassified wherever necessary to correspond with the current year’s

classification or disclosure.

Note - 63 Figures have been rounded off to the nearest rupee.

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Mar 31, 2018

1] Vehicle Loan is Secured by Hire Purchase of vehicle where the vendors have a lien on and right of repossession of specific vehicle. The loan is repayable in remaining 6 monthly installments by September'' 18 and carries interest rate of 9.38% p.a.

2] Machinery Loan is primarily Secured against first & exclusive charge on all movable machinery of the company including all stores, spare parts, both present and future being and lying at company''s premises or go-down or rented place by the company. Further, secured against equitable mortgage by deposit of title deeds with the bank as security in respect of loan faculties/limits viz cash credit, ILC/FLC open cum bank guarantee and machinery loan, The term loan is repayable in 24 monthly installments and carries interest rate of 11.25% p.a.

3] Machinery Term Loan is for the purpose of purchase of machineries, equipment’s and other movable fixed assets and such term loan is primarily Secured against first & exclusive charge by way of equitable mortgage of factory land. Further, secured by way of hypothecation of entire machineries, electrode installations, furniture & fixtures, office equipment’s and other movable fixed assets of the company, situated at the factories, present and future. The term loan is repayable in 60 monthly installments and carries interest rate of 9.50% p.a.

4] Other Term loan is for the purpose of construction of industrial land and such term loan is primarily Secured against first & exclusive charge by way of equitable mortgage of factory land. Further, secured by way of hypothecation of entire machineries, electrode installations, furniture & fixtures, office equipment’s and other movable fixed assets of the company, situated at the factories, present and future. The term loan is repayable in 60 monthly installments and carries interest rate of 9.50% p.a.

5] Repayable on demand.

As per Indian Accounting Standard 19 "Employee benefits", the disclosures as defined are given below:

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees ''Pension Scheme (EPS) with the government, and certain state plans such as Employees'' State Insurance (ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions Into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. During the year, the Company has recognized the following amounts in the Account towards company''s contribution:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation:

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service:

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non-funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market The above information has been certified by the actuary and relied upon by the auditors.

(*) marked details are not filled up for FY 2017-18 because it is not applicable as per Acturial Valuation Report due to adoption of IND AS from 01/04/2017 by the company. Employee benefits are accounted and shown as per Acturial Valuation Report as on 31st March 2018.

Note 1- The Company has received a Intimation u/s 154 of the Income Tax Act 1961 for AY 2015-16, 2016-17, AY 2017-18 and Prior Years.

Note 2- The Company has filed an appeal against CST Penalty order for FY 2011-12 Note 3- The Company has filed an appeal against VAT Penalty order for FY 2011-12

__1 i,7u,uuii|_i i,7Q,u»yy j

Figures in brackets ( ) are pertaining to previous year Note - 37 DIRECTORS RE MMUNE RATION

Salary of Rs. 42,00,000/- & Bonus - Rs. 4,62,000/Note - 38 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 6 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

Note - 7 The company has only one segment of activity i.e. Chemicals

Note - 8 Net Exchange Gain Included in the profit and loss account is Rs. 88,93,201/- (Loss in PY Rs. 3,63,387/-].

Note - 9 Previous year’s figures have been regrouped or reclassified wherever necessary to correspond with the current year’s classification or disclosure. Please refer to note no. 44 for recondlliation between financials prepared under Revised Schedule VI vis a vis IND AS.

Note - 10 Figures have been rounded off to the nearest rupee.

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Mar 31, 2016

Shares issued for other than cash, Bonus issue and Shares bought back

1. No shares had been allotted as fully paid up pursuant to without payment being received in rash during the period of five years immediately preceding the balance sheet date

2. shams had been allotted as fully paid up by way of bonus shares during the period five years immediately preceding the balance-sheet date-

3 Mo shares had been bought back during the period of five years immediately preceding the balance sheet date.

Circuit the Company makes annual - Assurance (flash Accumulating Scheme of LIC, a funded defined benefit plan for (fuelling employees. The scheme provides for payment in vested employees as under:

-Defined Benefit plans

The company makes annual contributions to employees group gratuity –cum life assurance (cash accumulation) scheme of LIC a funded defined benefit plan for gratuity Act, 1972 with vesting employees as under

A)ON normal retirement /early retirement/ withdrawal /resignation

B)as per the provisions of payments of gratuity ACT,1972 Without any vesting period`

C)On the death in service.

d) As per the provisions of Payment of gratuity Act,1972 without any vesting period.

Death Benefit: The (Company provides fur death benefit, a defined benefit. plan (death benefit plan) to certain categories of employees .the death benefit plan provides a lump sum payment to vested employees on being compensation received from the insurance company and restricted to limited set forth in the sand plan the death benefit plan is funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market, The above information has been certified by the'' actuary and relied upon by the auditors.

4 DIRECTORS REMUNERATION;

Salary of Rs. 42,00,000/- Bonus - Rs. 3,30,000/

5 Balance due t o / form third parties are subject to confirmation, reconciliation and / or adjustments, I f any.

6 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

7 The company has only one segment of activity i.e Chemicals

8 Disclosure Under Micro, Small & Medium Enterprises Development Act, 2006

The company has not received the required information foam suppliers regarding their stains under Micro, Small & Medium Enterprises Development Act. 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the yearend together with the interest paid/payable as required under The said Act have not been made.

9 N et Exchange Gain included in the profit and loss account is R.s. 27.12,570/- (Py7.80,874/ -)

10 Previous Year Comparatives

Previous year''s figures have been regrouped or reclassified wherever necessary to correspond with the current year''s classification or disclosure.

11. figures have been rounded off to the nearest rupee

A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AM) A PROXY NEED NOT BE A MEMBER OF THE COMPANY. The Proxy, in order to be effective, must be received by the Company not less than hours before the commencement of the meeting.

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Mar 31, 2015

1 BACKGROUND:

Ishan Dyes and Chemicals Ltd. was incorporated on 26th July 1993 under the Companies Act,1956.The company is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue (CPC Blue) and Pigment Blues.The products of the company are also exported and well established in the domestic market.

2 Share Capital

2.a The Number and amount of shares Authorised, issued, subscribed & fully paid up and subscribed but not fully paid up:-

2.d Shares issued for other than cash, Bonus issue and Shares bought back

1 No shares had been allotted as fully paid up pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the balance sheet date.

2 No shares had been allotted as fully paid up by way of bonus shares during the period of five years immediately preceding the balance-sheet date.

3 No shares had been bought back during the period of five years immediately preceding the balance sheet date.

3 Employee Benefits

As required by Accounting Standard-15 'Employee Benefits' the disclosures are as under :

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees 'Pension Scheme (EPS) with the government, and certain state plans such as Employees' State Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government's funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. During the year, the Company has recognised the following amounts in the Account towards company's contribution:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation:

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service:

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The above information has been certified by the actuary and relied upon by the auditors.

4 Contingent Liabilities

Particulars "As at 31st March "As at 31st March 2015 2014"

Notice for short deduction/payment of TDS and 492583 NIL interest thereon

The Company has received a penalty notice u/s 271(1)(b) of the Income Tax Act, 1961 for AY 2011-12 for which the Company has prefred appeal.

Figures in brackets pertain to the figures of previous year.

5 DIRECTORS REMMUNERATION: Salary of Rs. 42,00,000/- & Bonus - Rs. 3,30,000/-

6 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

7 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of buisness.

8 The company has only one segment of activity i.e. Chemicals

9 Disclosure Under Micro, Small & Medium Enterprises Development Act, 2006 The company has not received the required information from suppliers regarding their status under Micro, Small & Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been made.

10 Net Exchange Gain included in the profit and loss account is Rs. 7,80,874/- (PY 16,58,790/-).

11 Previous Year Comparatives

Previous year's figures have been regrouped or reclassified wherever necessary to correspond with the current year's classification or disclosure.

12 Figures have been rounded off to the nearest rupee.

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Mar 31, 2014

1 BACKGROUND:

Ishan Dyes and Chemicals Ltd. was Incorporated on 26th July 1993 under the Companies Act, 1956.The company Is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue [CPC Blue] and Pigment Blues The products of the company are also exported and well established in the domestic market

2) PROVIDENT FUND

Liability is determined an the basis of contribution as required under the statute /rules.

i. CENVAT CREDIT

CENVAT Credit is accounted on accrual basis on purchase of materials.

j. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year is recognised as Income or expense, as the case may be Any premium or discount arising at the Inception of the forward exchange contract is recognized as income or expense over the life of the contract

k. REVENUE RECOGNITION

Revenue / Income is recognised when no significant uncertainty as to determination or realisation exists.

I. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed In notes, If any. Contingent Assets are neither recognised nor disclosed In the financial statement

m. BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the costof such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

ii. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to/ recovered from the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income forthe period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient: future income will be available except that deferred tax assets, in case there are urabsorbed depreciation and losses, are recognised If there is virtual certainty that sufficient future taxable income will be available to realise the same.

o, DOUBTFUL DEBTS/ADVANCES

Provision Is made In the accounts In respect of debts/advances which In the opinion of the management are considered doubtful of recovery.

p. IMPAIRMENT LOSS

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts, Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use Is the present value of estimated future cash Hows expected to arise from die continuing use of die asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties,, less the costs of disposal 3
2 No shares had been allotted as fully paid up by way of bonus shares during the period of fiW years Immediately preceding the balance- sheet date.

3 No shares had been tmught back during the period of live year; immediately preceding the balance sheet date.

3. Contingent Liabilities

As at 31st March As at 31st March 2014 2013

Income Tax - 1,95,000

ESIC - 11,98,094

Total - 13,93,094

4 Details of contingent Liability Not Provided

Particulars As at 31st March As at 31st March 2014 2013

(i) Contingent Liabilities

(a] Claims against the company not acknowledged as debt - -

(b) Guarantees

Bank Gurantee for GPCB (with Bank of India) - 50,000

[c} Other money for which the company is contingently liable

Income Tax Act

CITfA] Penalty matter for AY Z006 - 1,95,000

ESIC - 11,98,094

Total - 14,43,094



The company has received a penalty notice u/s. 271(1][c ] of the Income Tax Act, 1961 for the AY. 2Oll-12.

5 Employee Benefits

A required hy Accounting Standard-1S ''Employee Benefits'' the disclosures are as under:

Defined Contribution Plans

The Company offers Its employees defined contribution plans In the form of Provident Fund [PF] and Employees ''Pension Scheme [EPS] with the government, and certain state plans such as Employees'' State InsnrancefESl). f7 ar|d EPS cover substantially all reguLar employees and the ESI covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. During the year, the Company has recognised the folio wine amounts in the Account to wards company''s contribution:

Defined Benefit Plans

Gratuity; The Company makes annual contributions to Employees'' Group Gratulty-cum Life Assurance [Cash Accumulation] Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a] On normal retirement / early retirement /withdrawal / resignation;

b] As per the provisions of Payments of Gratuity Act 1972 with vesting period of 5 years of service.

c] On the death in service:

d] As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan [death benefit plan] to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit pLan is nan funded.

The Estimate of future increase in compensation Levels, considered in the actuarial valuation, have beer, taken on account Df inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market The above information has been certified hy the actuary and relied upon hy the auditors.

Since the Company has formed Gratuity Trust during the year which Inturn has taken policy with LIC of India during the year, hence change in fair value of assets has not been provided

6 DIRECTORS REMMUNERATION:

Salary of Rs. 42,00,000/- & Bonus - Rs. 3,30,000/-

7 Balance due Id / from third parties arwe subject bn confirmation, reconciliation, and / or adjustments, if any.

8 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated), if realized In the ordinary course of holiness.

9 The company has only one segment of activity Chemicals

10 Disclosure Under Micro; Small & Medium Enterprises Development Act, 2006

The company has not received rJhe required information from suppliers regarding their status onder Micro, Email & Medium Enterprises Development Act 2006. Hence, disclosures, if any, relating Co the amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been made.

11 Net Exchange Gain included In the profit and loss account Is Ets. 17,14,465/-.

12 Previous year''s figures have been regrouped or reclassified wherever necessary to correspond with the current year''s classification or disclosure

13 Figures have been rounded off to the nearest rupee.

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Mar 31, 2013

1.1.1 Estimated amount of contracts remaining to be executed on Capital commitment net of advances: Rs. 7.11 lacs (P.Y. Rs.45.00 Lacs)

1.1.2 Previous years figure have been regrouped and / or rearranged wherever consider necessary to confirm to the present year''s grouping.

1.1.3 Contingent liability

a. The Company has received a show cause notice for FY 2009-10 & 2010-11 vide reference no. 37000202640000304/Ins V dated 30/04/2013 from Employee State Insurance Corporation, Regional Office. Recovery of liability is determined of Rs.11.98 Lacs.

b. The disputed statutory dues aggregating Rs.1.95 Lacs that have been deposited on account of disputed matters pending before appropriate authorities as under :

1.2 PAYMENTS TO AUDITORS

Audit fees: Rs. 90,000/- (excluding taxes)

1.3 DIRECTORS REMUNERATION: Salary of Rs. 30,00,000/- & Bonus - Rs. 3,30,000/- 1.20 Balances due to / from third parties are subject to confirmation, reconciliation, and/or adjustments, if any.

1.4 In the opinion of the Board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

1.5 Undisputed Statutory Liability outstanding for more than six months is Nil.

1.6 Net Exchange Gain included in the profit and loss account is Rs. 7,38,989/-.

1.7 The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of companies Act, 1956 could not be provided.

1.8 Earning in Foreign Exchange

FOB Value of Direct Export: Rs. 549.38 lacs (P.Y.: Rs. 487.95 lacs)

1.9 Extra ordinary item :

During the year under review, the Company has outstanding liability of Rs.143.62 Lacs as on 01/04/2012 of Term Loan of M/s Charotar Nagrik Sahakari Bank. The Company applied for one time settlement of its liabilities and obtained settlement order dated 16/07/12 determining total repayment of Rs.495.41 Lacs. The Company was supposed to discharge aforesaid liability by July''13. But the Company repaid the entire term loan liability during the year under review and received No Due Certificate from the Bank dated 05/04/2013. Additional liability of Rs.351.79 Lacs (Rs.495.41 less Rs.143.62 Lacs) has been reduced by Investment in shares & share linking deposit of Rs.6.44 Lacs. Net figures of Rs.345.35 Lacs charged to Profit & Loss A/c as Extraordinary item.

1.10 Related Party Disclosures as required by AS-18 Piyushbhai N. Patel, Anilaben P. Patel, Shrinal Piyush Patel

Nature of transactions Amount (in lacs)

Payment for Remunerat i on 33.30

1.11 Key Management Personnel:

Piyushbhai N. Patel, Managing Director Shrinal Piyush Patel, Director

1.12 The company has only one segment of activity i.e. production of Phthalocyanine Blue.

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Mar 31, 2012

Note 1 Contingent Liabilities

For the year ended For the year ended 31 March 2012 31 March 2011

Particulars

Income tax liabilities for matter pending in appeal 195,000 195,000

Total 195,000 195,000

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Mar 31, 2011

1. OTHER NOTES

(A) Estimated amount of contracts remaining to be executed on Capital account net of advances: Rs.3.00 lacs (P.Y. Rs.9.00 Lacs)

(B) Previous years figure have been regrouped and/or rearranged wherever consider necessary to confirm to the year's grouping.

(C) Contingent liability on account of bill discounted that remained unpaid as on 31st March 2011 is Rs.40.56 Lacs.

2. DIRECTORS REMUNERATION: Salary of Rs.31,98,720

3. Balances due to/from third parties are subject to confirmation, reconciliation, and/or adjustments, if any.

4. In the opinion of the Board, Loans and Advances and Current Assets are approximately of the value sated, if realized in the ordinary course of business.

5. Undisputed Statutory liability outstanding for more than six month is Nil.

6. Net exchange Gain included in the profit and loss account is 8.55 lacs.

7. The company has not received any intimation from suppliers regarding their status under the J Micro. Small and Medium Enterprise Development Act, 2006 and hence disclosure requirement in this regard as per Schedule VI of companies Act, 1956 could not be provided.

8.Government of Gujarat has announced scheme for One Time Settlement for Co-op Banks under liquidation. As per the scheme, for one time payment, no interest is payable from date MFA In case of borrowings from C.X.S. Bank Ltd, the company is eligible for benefits are the said scheme. Based on the scheme, the Board is of the opinion that there is no naturity interest payment or Year under audit.

9.Quantity information regarding opening and closing stock of finished goods and sales is produced by way of annexure to these notes.

10. Key Management Personnel:

Piyush bhai N. Patel, Managing Director Shrinal Piyush Patel, Director

11. The company has only one segment of activity i.e. production of Phthalocyanine Blue.

12. The company has been advised that in view of carry forwarded losses, Company does not envisage any liability on account of Income Tax and hence no provision is made for Income tax benefits.