Notes to Accounts of Foce India Ltd.

Mar 31, 2025

19. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company creates a provision when there is 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 possible obligation or
a present obligation that may, but probably will not, require an outflow of resources. When there
is a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of resources would be required to settle the obligation,
the provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the
asset and related income are recognized in the period in which the change occurs.

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded
when it is probable that a liability has been incurred and the amount can be reasonably estimated.

1. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
ACT, 2006)

In accordance with the Notification No GST 719 dated 16th November 2007, issued by the Ministry
of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small &
Medium Enterprises as defined under the said Act. Based on the information/ documents
available with the Company, disclosures required are as under:

9. Charge: During the year no charge has been created by the company & as per MCA site No Charges
Exists for Company.

10. Balance of trade receivables, payables and loans and advances are subject to reconciliation and
confirmation from the parties. These balances are therefore, subject to adjustments, if any, as may
be required on settlement of these balances with the parties.

11. During the financial year the Company has not traded or invested in Crypto Currency or Virtual
Currency.

12. The Company is a not a declared willful defaulter by any bank or financial Institution or other
lender.

13. No Benami Property is held by the Company and that no proceedings have been initiated or
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

14. The company has not entered into any transactions with the companies struck off under section
248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

15. No Scheme of Arrangement has been undertaken by the Company during the financial year in
terms of sections 230 to 237 of the Companies Act, 2013.

16. There are no transactions 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.

17. The company has complied with the provisions for number of layers prescribed under clause (87)
of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

19.Previous year''s figures have been rearranged and regrouped wherever considered necessary.

The accompanying notes are an integral part of the financial statements
As per our report of even date

For SDG & CO For and on behalf of the Board

Chartered Accountants

Firm Registration No.: 137864W

Sd/- Sd/-

(Manoj Agarwal) (Utkarsh Agarwal)

Managing Director Director & CFO

DIN: 00159601 DIN: 08021945

Sd/-

Varish Sunil Shah
Partner

Membership No.: 611014 Sd/-

UDIN: 25611014BNUIKC7471 (Ankit Devendra Pandit)

Place: Mumbai Company Secretary

Date: 30.05.2025

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Mar 31, 2024

19. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company creates a provision when there is 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 possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

1. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED ACT, 2006)

In accordance with the Notification No GST 719 dated 16th November 2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises as defined under the said Act. Based on the information/ documents available with the Company, disclosures required are as under:

4. The Company operates in one segment and hence no separate disclosure of segment wise information has been made as per Accounting Standards as per (AS-17) Segment Reporting Issued by the Institute of Chartered Accountants of India.

10. Charge: During the year no charge has been created by the company & as per MCA site No Charges Exists for Company.

11. Balance of trade receivables, payables and loans and advances are subject to reconciliation and confirmation from the parties. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

12. During the financial year the Company has not traded or invested in Crypto Currency or Virtual Currency.

13. The Company is a not a declared willful defaulter by any bank or financial Institution or other lender.

14. No Benami Property is held by the Company and that no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

15. The company has not entered into any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

16. No Scheme of Arrangement has been undertaken by the Company during the financial year in terms of sections 230 to 237 of the Companies Act, 2013.

17. There are no transactions 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.

18. The company has complied with the provisions for number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

19. Search by the Goods & Service Tax Department

(a) GST Search: In the month of July, 2022, a search was conducted by the Directorate General of Goods and Services Tax Intelligence (DGGI), Pune at the premises of the company and its directors. As informed by the Management of the Company, that the investigation has not been completed by the department and no demand has been crystalized. During the investigation, the department has seized the goods as lying in the premises of M/ s. F O Industries Private Limited, (Subsidiary Company of Foce India Limited) Bhiwandi which was received for do repair work. The investigation of the seized goods was not completed and it was released by the department after submission of Bank Guarantee and Bond.

(c) The management has informed us that, on 16-01-2023 there was a search carried out in the premises of the company and at the residential premises of the residence of the directors under PMLA Act, 2002. As informed to us, there is no demand has been raised and no show cause notice has been issued to the company till 31^st March, 2024. The matter is still under investigation by the department. During the course of search, the following Bank Accounts has been freeze under section 17(1) (A) of PMLA 2002 by the authorities'' w.e.f. 16/01/2023:

(c ) FO Industries Private Limited (Subsidiary Company of FOCE India Limited) has given a Bond of (Amount in ''Lakhs'') Rs. 1,042.74/- for release of Goods by the GST department.

21. Previous year''s figures have been rearranged and regrouped wherever considered necessary.

The accompanying notes are an integral part of the financial statements As per our report of even date

For SDG & CO For and on behalf of the Board

Chartered Accountants

Firm Registration No.: 137864W

Sd/- Sd/-

(Manoj Agarwal) (Utkarsh Agarwal)

^Maⁿagⁱⁿg ^Directo^r Director & CFO

DIN: 00159601 DIN: 08021945

Sd/-

Tarun Prakash Dhandh Partner

Membership No.: 131057 Sd/-

UDIN: (Ankit Devendra Pandit)

24131057BKFVSM7614 Place: Company Secretary

Mumbai

Date: 30-05-2024

---

Mar 31, 2023

For Calculation of Debt and Equity Ratio and Debt Service Coverage Ratio, the Management has a policy to consider only Long Term Debts. During the year the management does not have any long term debt and having only short term debt.

(i) There were no reservation as to issue of equity shares towards ESOP/share warrants/convertible securities.

(ii) The Company has not allotted any class of shares as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

(iii) All the shares issued are fully paid up.

(iv) There were no shares forfieted during the year.

(v) During the year company has not raised Equity Shares.

1. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED ACT, 2006)

In accordance with the Notification No GST 719 dated 16th November 2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises as defined under the said Act. Based on the information/ documents available with the Company, disclosures required are as under:

2. Balances of trade receivables, payables and loans and advances are subject to reconciliation and confirmation from the parties. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

5. The Company operates in one segment and hence no separate disclosure of segment wise information has been made as per Accounting Standards as per (AS-17) Segment Reporting Issued by the Institute of Chartered Accountants of India.

10. Charge: During the year no charge has been created by the company & as per MCA site No Charges Exists for Company.

11. Balance of trade receivables, payables and loans and advances are subject to reconciliation and confirmation from the parties. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

12. During the financial year the Company has not traded or invested in Crypto Currency or Virtual Currency.

13. The Company is a not a declared willful defaulter by any bank or financial Institution or other lender.

14. No Benami Property is held by the Company and that no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

15. The company has not entered into any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

16. No Scheme of Arrangement has been undertaken by the Company during the financial year in terms of sections 230 to 237 of the Companies Act, 2013.

17. There are no transactions 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.

18. The company has complied with the provisions for number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

19. GST Search & Siege of Goods:

a) GST Search: In the month of July, 2022, a search was conducted by the Directorate General of Goods and Services Tax Intelligence (DGGI), Pune at the premises of the company and its directors. As informed by the Management of the Company, that the investigation has not been completed by the department and no demand has been crystalized. During the investigation, the department has seized the goods as lying in the premises of M/s. F O Industries Private Limited (Subsidiary Company of FOCE India Limited), Bhiwandi which was received for do repair work. The investigation of the seized goods were not completed and it was released by the department after submission of Bank Guarantee and Bond.

c) The management has informed us that, on 16-01-2023 there was a search carried out in the premises of the company and at the residential premises of the residence of the directors under PMLA Act, 2002. As informed to us, there is no demand has been raised and no show cause notice has been issued to the company till 31^st March, 2023. The matter is still under investigation by the department. During the course of search, the following Bank Accounts has been freeze under section 17(1) (A) of PMLA 2002 by the authorities'' w.e.f. 16/01/2023:

c) FO Industries Private Limited Subsidiary Company of FOCE India Limited has given a Bank

Guarantee of (Amount in ''Lakhs'') Rs. 1,042.74/- for release of Goods by the GST department. (Refer Note No. 21(19) for detailed explanation)

21. The provisions of section 135 of the Companies Act is applicable to the company and the company has incurred CSR expenditure of (Amount in ''Lakhs'') Rs. 6.69 i.e. 2 % of Average net profit of the company earned during the preceding 3Years and there is no unspent or shortfall of the CSR amount/expenditure to be spent at the end of the year.

22. Previous year''s figures have been rearranged and regrouped wherever considered necessary.