Notes to Accounts of Ducol Organics & Colours Ltd.

Mar 31, 2025

1.12 Provisions and contingent liabilities

The company recognizes a provision when there is
a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable
estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is
a present obligation that cannot be estimated reliably or
a possible or present obligation that may, but probably
will not, require and outflow of resources. Where there
is a possible obligation or a present obligation that the
likelihood of outflow of resources is remote, no provision
or disclosure is made.

1.13 Earning Per Share

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

1.14 Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.

1. During the year, company has made preferential allotment of equity shares of ''10 each at premium of '' 116

2 Previous year ended March 31,2023, the Company has issued 40,40,000 shares of '' 10 each at a premium of '' 68 Each

(c) The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is
entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General

Vehicle loans

Loans against vehicles are secured against hypothecation of vehicles against which loans are taken.

Loans are guaranteed by the Managing Director and Wholetime Director
Rate of Interest: 9%

(Previous years include Term Loan from Apna Sahakari Co - Operative Bank ltd

Primary :- First charge by way of mortgage & hypothecation of following immovable fixed assets:

a) Land & buildlng situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.)

Term Loan with NKGSB Bank - Company has been sanctioned Term loan of '' 25.8 crore during the year for acuqisition of new businesses, which
has been availed in April 2025 against the following security:

Primary :- Extension of first charge on Land & building situated at Plot no.K-7 Additional MIDC Mahad, Dist Raigad & hypothecation of movable
fixed asset at K7, Mahad

Collateral :- First charge by way of hypothecation on fixed assets of the company includes:

a) Land & building situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

Rate of Interest: 9%

Loan is guaranteed by the Managing Director and Wholetime Director

Notes

a. Secondary segments identified are as per the requirements of Accounting Standard AS-17 ''Segment Reporting'' issued by
The Institute of Chartered Accountancy of India, taking into account the organization structure as well as the differing risks
and returns

b. The segment revenue, results and total assets include the revenue and assets respectively, which are identifiable with each
segment and amounts allocated to the segments on a reasonable basis

42. First time adoption of Ind AS:

As stated in note 2, these are the Company''s first standalone financial statements prepared in accordance with Ind AS. For the
year ended 31^st March, 2024, the Company had prepared its Standalone Financial Statements in accordance with Companies
(Accounting Standard) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the then Act (''previous
GAAP'').

The accounting policies set out in note 2 have been applied in preparing the Standalone Financial Statements for the year ended
31^st March, 2015, the comparative information presented in these financial statements for the year ended 31^st March, 2014 and
the opening Ind AS Balance Sheet as at 1^st April, 2023 (the Company''s date of transition)

In preparing its opening Standalone Ind AS Balance Sheet as at 1^st April, 2013 and in presenting the comparative information for
the year ended 31^st March, 2024, the Company has adjusted amounts reported previously in Standalone. Financial Statements
prepared in accordance with previous GAAP This note explains the principal adjustments made by the Company in restating its
Standalone Financial Statements prepared in accordance with previous GAAP and how the transition from previous GAAP to Ind
AS has affected the Company''s financial position, financial performance and cash flows

43. Reconciliations between previous GAAP and Ind AS

a. The reconciliation of Other Equity reported in accordance with the previous GAAP to other equity as per Ind AS, as at 31^st
March, 2024 and 31^st March, 2025 is as follows:

c. Impact of Ind AS adoption on the statements of cash flows for the year ended 31^st March 2025: There were no material
differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP

44. Immovable Property Not Held In Company''s Name

The company does not hold any immovable property(other than properties where the company is the lessee and the lease
agreement are duly executed in favour of the lessee) whose title deeds are not held in the name of the company and where
such immovable property is jointly held with others.

45. Details Of Benami Property

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property

46. Registration Of Charges or Satisfaction with Registrar of Companies

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

47. Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).

48. Details of Crypto / Virtual Currency

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

49. Transactions with companies struck off

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

50. Previous year figures have been regrouped / reclassified as considered necessary to conform with current
period presentation wherever applicable.

As per our report of even date attached

For Choudhary Choudhary & Co For and on Behalf of the Board of Directors of

Chartered Accountants Ducol Organics and Colours Limited

Firm Regn No. 002910C

Alok Kumar Mishra Aamer Ahmed Farid Hani Ahmed Farid

Partner Managing Director Whole-time Director

M. No. 124184 DIN : 00711705 DIN : 00711968

UDIN No: 25124184BMIADZ2702

Rehmat Shaikh Sabina Qureshi

Chief Financial Officer Company Secretary

M. No. 65859

Place: Mumbai Place: Mumbai

Dated: 21.05.2025 Dated: 21.05.2025

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Mar 31, 2024

1.11 Provisions and contingent liabilities

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a present obligation that cannot be estimated reliably or a possible or present obligation that may, but probably will not, require and outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.12 Earning Per Share

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

1.13 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Vehicle loans

Loans against vehicles are secured against hypothecation of vehicles against which loans are taken. Term Loan: Apna Sahakari Co-Operative Bank ltd

Primary:- First charge by way of mortgage & hypothecation of following immovable fixed assets:

a) Land & buildlng situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad. Loans are guranteed by the Managing Director and the Wholetime Director

Rate of Interest: 9%

Note 38

Corporate Social Responsibility Expenses

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 preceeding three financial years on corporate social respnsibilty ( CSR) activities. The CSR comittee has been formed by the company as per the act. The funds were allocated and utilised through the year on CSR activities specified in schedule 7 of the companies act 2013.

Note: 40: Details Of Benami Property

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

Note : 41: Registration Of Charges or Satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. Note: 42: Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Note : 43: Details of Crypto / Virtual Currency

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

Note : 44: Transactions with companies struck off

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

As per our report of even date

For Choudhary Choudhary & Co. For and on behalf of the Board of Directors of

Chartered Accountants Ducol Organics and Colours Limited

Firm''s Registration Number - 002910C

Alok Kumar Mishra Aamer Ahmed Farid Hani Ahmed Farid

Partner Managing Director Whole-time Director

M. No. 124184 DIN : 00711705 DIN : 00711968

UDIN No: 24124184BKCXWA2778

Manisha Agrawal Sabina Qureshi

Chief Financial Officer Company Secretary

M. No. 65859

Place : Mumbai Place : Mumbai

Dated : 21st May, 2024 Dated : 21st May, 2024

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Mar 31, 2023

Note: During the year ended March 31, 2023, the Company has issued 40,40,000 shares of 3 10 each at a premium of 3 68 Each

(c) The Company has only one class of equity shares having a par value of 3 10/- per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Primary First charge by way of mortgage & hypothecation of following immovable fixed assets:

a) Land & buildlng situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

3 Term Loan with NKGSB Bank

Primary :- Extension of first charge on Land & building situated at Plot no.K-7 Additional MIDC Mahad, Dist Raigad & hypothecation of movable fixed asset at K7, Mahad

Collateral :- First charge by way of hypothecation on fixed assets of the company includes:

a) Land & building situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist - Raigad.

Rate of Interest: 9%

#Working Capital Security:

Company has sanction of 15 Cr from NKGSB Co opreative Bank Ltd as working capital limits

Primary :- First charge by way of hypothecation of entire current assets of the company, present and future,including entire stocks (including goods in transit) & receivables

Collateral: Extension of first charge on entire immovable Property, plant & Equipments of the company The immovable fixed assets of the company include:

a) Land & building situated at Plot No.22/2 MIDC Ind. Area, Taloja, Taluka Panvel, Dist Raigad.

b) Land & building situated on Plot No. T-5/1 MIDC Ind. Area, Taloja, Taluka Panvel, Dist Raigad.

c) Land & building situated at Plot No.K-7 Additional MIDC Mahad, Dist Raigad.

Note 36

In compliance with AS 15 (Revised), Employee Benefits, Upto current year ended 31 March 2023 company has made provision for Gratuity at Rs 88,583.49 including that of earlier years Rs 72,401.60 (Rs. In hundred).

The company has only one business segment viz. Manufacture of other chemical products, which is being considered as the primary segment.

The information regarding the secondary segment, i.e. ''geographical segments'' is given below:

a. Secondary segments identified are as per the requirements of Accounting Standard AS-17 ''Segment Reporting'' issued by The Institute of Chartered Accountancy of India, taking into account the organization structure as well as the differing risks and returns

b. The segment revenue, results and total assets include the revenue and assets respectively, which are identifiable with each segment and amounts allocated to the segments on a reasonable basis

c. Figures in the bracket represents figures of previous year

Note 40 - Related party disclosures (As per Ind AS 24 - Related Party Disclosures)

Company does not fall under the provision of section 135 Of the Companies Act, 2013 i.e. CSR Provision.

NOTE: 43 : Immovable Property Not Held In Company''s Name

The company shall provide the details of all the immovable property(other than properties where the company is the lessee and the lease agreement are duly executed in favour of the lessee) whose title deeds are not held in the name of the company in format given below and where such immovable property is jointly held with others , details are required to be given to the extent of the company''s share

Note: 44: Details Of Benami Property

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

Note : 45: Registration Of Charges or Satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. Note : 46: Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Note : 47: Details of Crypto / Virtual Currency

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