Notes to Accounts of Dhanlaxmi Crop Science Ltd.

Mar 31, 2025

Note 1 Overdraft Facility

1. Collateral Security:-

i) Exclusive Charge by way of Hypothecation on Current Assets for both present and future.

ii) Equitable / Registered Mortgage on Immovable Property situated at:

a) 2, Hirabagh Society, Rev Sur No. 51/2/37 City, Survey No. 3135, Plot-2, Mouje Himatnagar, Sabarkantha of Jayantibhai Patel.

b) Plot No 1 paiky sr no.24, Sahkari jin road, National highway no. 8, Himatnagar, Sabarkantha of Bhartiben Patel & Ronakben Patel.

c) Plot No 11, Survey no 793, Paiky at Kanknol, Dwarkadish Society, Himatnagar, Sabarkantha of Alpeshbhai Patel.

2. Personal Guarantee of

i) Meet Patel

ii) Alpeshbhai Patel

iii) Pankaj Patel

iv) Bhartiben Patel

v) Kamleshkumar Patel

vi) Ronakben Patel

vii) Jayantibhai Patel

viii) Tejalben Patel

ix) Ashokkumar Kateshia

x) Pankajkumar Patel

3. Rate of Interest:

The rate of interest of the Facility stipulated by the Bank shall be sum of the Repo Rate plus ''Spread'' per annum. As on date the Repo Rate is 6.50% and Spread is 3.30%.

NOTE NO - 27 Other Disclosures as per Schedule-III of the Companies Act, 2013 1. Earning Per Shares

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

3. Regrouping

These financial statements have been prepared in the format prescribed by the Revised Schedule III to the Companies Act 2013. Previous year figures have been regrouped / re-classified to confirm to the classification of the current period.

4. Additional Regulatory Information ( as per the Schedule III requirements)

i) Title deeds of Immovable Properties not held in name of the Company

No such assets held by the company as on year end March 31, 2025, and March 31, 2024.

ii) Compliance with approved Scheme(s) of Arrangements

There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

iii) Wilful Defaulter

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

iv) Relationship with Struck off Companies

The company does not have any transactions with struck off companies.

v) Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties

There is no Loans or advances granted to the Promoters, directors, KMP and the relative of their during the period ended March 2025, and March 2024.

vi) Details of Benami Property held

No such assets held by the company as on period end March 31, 2025 and March 31, 2024.

vii) Registration of charges with Registrar of Companies

Company has register all it''s charges within time or extended time period given in the companies act, 2013.

viii) Utilisation of Borrowed funds and share premium

A) The company have not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(1) 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

(2) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B) The company have not received any fund from any person(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(1) 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

(2) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

x) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

xi) The Company has availed loans from banks on the basis of security of current assets. However as per the terms and condition, company has no requirement of submission of quarterly returns or statements to respective bank.

5. Corporate Social Responsibility (CSR )Disclosure

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas forCSR activities are Schedule VII(ii) promoting education, including special education and employment enhancing vocation skills. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

6. Issue of Shares

i) Issue of Equity shares through IPO:

In the financial year 2024-25, the Company has completed Initial Public Offer (IPO) of 43,28,000 Equity Shares of the face value of Rs.10 each at an issue price of Rs.55 per Equity Share, comprising fresh issue of 43,28,000 shares aggregating to Rs. 2380.40 Lakhs. Pursuant to the IPO, the equity shares of the Company were listed on SME Platform of National Stock Exchange of India limited (NSE) on 16th December, 2024.

ii) IPO Expenses:

The total IPO Expenses incurred Rs.264.92 Lakhs has been adjusted against securities premium account.

ii) Defined Benefit Plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees lastdrawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service calculated on actuarial basis. The gratuity plan is a unfunded plan. The retirement age for the employees is 60 years.

9. Segment Reporting

The company operates in a single segment i.e. "manufacturing as well as processing of agriculture seeds" and hence does not have any additional disclosures to be made under AS - 17 Segment Reporting.

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Mar 31, 2024

I. Provisions, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provision are recognised at the best estimates of the expenditure required
to settle the present obligation at the balance sheet date. If the effect of the time value of money is material,
provisions are discounted using a pre-tax rate that reflects, when appropriate, the risks specific to the
liabilities.

A present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent
liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain
future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.

Contingent assets are not recognised in financial statements since this may result in the recognition of
income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and is recognised.

J. Revenue

i. Sale of goods

Revenue is measured at the fair value of consideration received or receivable net off trade discounts,
volume rebates, outgoing taxes on sales. Any amounts receivable from the customer are recognised as
revenue after the control over the goods sold are transferred to the customer. Revenue is recognised on the
basis of approved contracts regarding the transfer of goods or services to a customer for an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

ii. Rendering of services

Revenue for job work services is recognised as and when services are rendered, in accordance with the
terms of the contract. The amount recognised as revenue is exclusive of goods and service tax (GST) and
its net of returns and trade discounts.

iii. Rental income

Rental income is recognised as part of other income on a straight-line basis over the term of the lease except
where the rentals are structured to increase in line with expected general inflation.

iv. Dividend

Dividend from investment is recognised as revenue when right to receive the payments is established.

v. Interest income

Interest income is recognized using the effective interest rate method. The effective interest rate is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
gross carrying amount of a financial asset. While calculating the effective interest rate, the company
estimates the expected cash flows by considering all the contractual terms of the financial instruments but
does not consider the expected credit losses

K Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it
relates to a business combination or to an item recognised directly in equity or in other comprehensive
income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used. Deferred tax assets - unrecognised or recognised, are reviewed at each
reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively
that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting
date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets and they relate to income taxes levied by the same tax authority on the same taxable entity or on
different taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax
assets and liabilities will be realised simultaneously.

Minimum alternate tax Credit Entitlement

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The
Company recognizes a deferred tax asset on the MAT credit available only to the extent that there is
convincing evidence that the Company will pay normal income tax during the specified period, i.e., the
period for which MAT credit is allowed to be carried forward. The Company reviews the deferred tax asset
created on MAT credit entitlement asset at each reporting date and writes down the asset to the extent the
Company does not have convincing evidence that it will pay normal tax during the specified period.

L Borrowing costs

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest cost) incurred in connection with
the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of asset which
necessarily take a substantial period of time to get ready for their intended use are capitalised as part of cost
of asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

M Earnings per share

The basic earnings per share (‘EPS'') is computed by dividing the net profit / (loss) after tax for the year
attributable to the equity shareholders by the weighted average number of equity shares outstanding during
the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to
the equity shareholders and the weighted average number of equity shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

N Foreign currency transactions

In preparing the financial statements of the Company, transactions in currencies other than the Company''s
functional currency (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies
are translated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate as at the date of initial transactions.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in
which they arise.

O Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits
with banks that are readily convertible into cash which are subject to insignificant risk of changes in value
and are held for the purpose of meeting short-term cash commitments.

P Cash flow statement

Cash flow statement Cash Flows are reported using the indirect method, whereby net Profit before tax is
adjusted forthe effects of transactions of a non-cash nature, such as deferrals or accruals of past or future
operating cash receipts or payments and items of income or expenses associated with investing or
financing cash flows. In the statements of cash flows, cash and cash equivalents consist of cash and short
term deposits, as defined above net of outstanding bank overdrafts as they are considered as integral part of
the Company cash management.

Notes: The credit period on sales of goods varies with seasons and business segments/ markets and generally
ranges between 30 to 180 days. No interest is recovered on trade receivables for payments received after the
due date.

Before accepting any new customer, the Company has a credit evaluation system to assess the potential
customer''s credit quality and define credit limits for the customer. Credit limits attributed to customers are
reviewed on an annual basis.

Trade receivables are hypothecated as Security for Borrowings

Ageing of Trade receivable is disclosed in Note 39 B for schedule III disclosure.

12.3 The Company has one class of equity shares having a face value of Rs10 each .Each shareholder is
eligible for one vote per share held.

12.4 In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets
of the Company after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity share held by the shareholders.

12.5 There were no equity shares allotted as fully paid up pursuant to contracts without payment received in
cash, bonus shares were issued and allotted in the ratio 1:1 i.e, 39,00,300 shares of Rs. 10/- each. There
were no equity shares bought back, during the period of 5 years immediately preceding the Balance
Sheet date

14.4 Working capital limits sanctioned by Tamilnad Mercantile Bank Ltd, are repayble on demand from bank
and are secured against hypothecation of inventories, book debts/receivables,bills negotiation drawn
under ILC/FLC, against collateral security of premises in the name of the company and in the name of
Directors & relatives personal gurantee of directors and the sanction limits are Rs. 0.01 crores for CC, Rs.
6.50 Crores for IBN, Rs. 20.00 crores for FLC/ILC, Rs.20.00 crores for forward Sales contract.

14.5 Working Capital limits sanctioned by Kotak Mahindra Bank Ltd, are repayable on demand from bank and
are secured against hypothecation of inventories, book debts/receivables, bills negotiation drawn under
ILC/FLC, against collateral security of premises in the name of the Directors & relatives. Personal
Guarantee of Directors and Company fixed Deposits to the tune of Rs 5.28 crores and the sanction limits
are Rs. 0.10 crores for OD, Rs. 15.00 crores fOr LCBD, Rs 25.00 crores for FLC/ILC.

14.6 There is no breach of loan agreement. The Company has not defaulted on repayment of interest and
loans as at the balance sheet date.

34.1 Decrease in EPS is primarily due to the increase in authorised capital and subsequent issuance of bonus
shares , which has led to a higher total number of shares, thereby diluting the EPS

35 Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on 27th May, 2025

36 Corporate Social Responsibility expenditure :

As per Section 135 of the Act, a Company meeting the applicability threshold, needs to spend atleast 2% of
its average net profit for the immediately preceding three financial years on CSR activities. The Company
was required to spend the gross amount of Rs 24.97/- Lakhs during the year on corporate social
responsibility activities.

38 Capital Management :

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Management monitors the return on capital
as well as the level of dividends to ordinary shareholders.

The Company monitors capital using a ratio of ‘adjusted net debt'' to ‘total equity''. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations
under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of
equity.

D Other Statutory Information

(i) The Company did not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(ii) No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder

(c) Registration of charges or satisfaction with Registrar of Companies

(d) Approved scheme(s) of Arrangements

(e) Number of layers of companies

(f) Undisclosed income

(g) Revaluation of PPE and intangible assets

(h) Title Deeds of immovable properties not held in name of the company

(i) Wilful defualter

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries)with the understanding that the Intermediary shall:

(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

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(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

(v) The Company has borrowings from bank on the basis of security of current assets. The quarterly returns or
statement of current assets filed by the Company with banks are in agreement with the books of accounts.

40. The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post¬
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in
the period the Code becomes effective.

41 Events after the reporting period :

No significant adjusting event occurred between the balance sheet date and date of the approval of these
financial statements by the Board of Directors of the Company requiring adjustment or disclosure.

42 Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the
Company for the year.

43 The figures for the previous periods have been regrouped / rearranged wherever necessary to confirm to
the current periods classification in order to comply with the requirements of the amended Schedule III to the
Companies Act, 2013 effective 1st April, 2021.

As per our Report of even date attached

for G.D. Upadhyay & Co., For and on Behalf of Board of Directors

Chartered Accountants

Firm Regn No.005834S gd/_ Sd/-

Narayan Inani Anirudh Inani

^Sd/ Managing Director cum CFO Whole-time Director

^(G-^D-^Up^adhy^ay⁾ DIN: 00525403 DIN: 02253588

Partner

Membership No.027187

UDIN: 25027187BMOWLF1169 .. . , . ^Sd^/-

Keshav Inani Pooja Gadhia

Whole-time Director cum CEO Company Secretary

p^lace^:My^deraDaa DIN: 09296529 M.No A61818

Date: 27/05/2025