Notes to Accounts of Harshil Agrotech Ltd.

Mar 31, 2025

x) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past
events and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, in respect of which a reliable estimate can be made of the amount of obligation. Provisions (excluding
gratuity and compensated absences) are determined based on management’s estimate required to settle the
obligation at the Balance Sheet date. In case the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost. These are reviewed at each Balance Sheet date
and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence
would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised
because it cannot be measured reliably.

xi) Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of

transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.

^{( )} Detailed note on the terms of the rights, preferences and restrictions relating to each class of
shares including restrictions on the distribution of dividends and repayment of capital.

i) The Company has two class of equity shares having a par value of Rs 1 per share for Equity class and
Rs. 100 per share for Preference Shares. Each holder of equity shares is entitled to one vote per share.

ii) 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.

Note 36 : Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Managing Director of the Company. The
Company operates only in one Business Segment i.e. “Agri Trading Business”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

Note 37 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments could be exchanged
in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value

a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current
liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments

b) 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 this evaluation, allowances are
taken to account for the expected losses of these receivables.”

B. Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial performance. The risks that
could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company’s
Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by
management to minimise potential adverse effects of such risks on the company’s operational and financial
performance.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of

changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price
risk.

Currency risk

The Company is not much exposed to currency risk.

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 trade and other receivables, cash and
cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability
of customers, taking into account the financial condition, current economic trends and analysis of historical bad
debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments
covered below is restricted to their respective carrying amount.

Note 38 : Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue
as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The
aim to maintain an optimal capital structure and minimise cost of capital.

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 return
capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent
with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by
total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity share capital and
other equity and total debt includes long term borrowings, short term borrowings, long term lease liabilities and
short term lease liabilities.

Note 39 : Corporate Social Responsibility

The Provision for CSR are not applicable as per Section 135 of Companies act 2013.

Note 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE
COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and Rules made thereunder.

2. The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

(i) 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.

(ii) 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.

4. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax
Act, 1961 (such as search or survey), that has not been recorded in the books of account.

5. The Company has not traded or invested in crypto currency or virtual currency during the year.

6. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar
of Companies beyond the statutory.

7. During the year, the company has not announced any dividend during the year.

8. The Company has not been declared wilful defaulter by any banks.

Note 41 : Prior year comparatives

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s presentation wherever
considered necessary.

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Mar 31, 2024

Note 33: Disclosures as required under Section 22 of MSMED Act, 2006

The information regarding Micro Small Enterprises has been determined on the basis of information available with the Company which is as follows:

(Rs. In Lakhs)
Particulars	As at	As at

	31st March, 2024	31st March, 2023
The principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of accounting year
The amount of interest paid by the buyer under MSMED Act, 2006 along with the amounts of the payment made to the supplier beyond the due date during each accounting year;
The amount of interest due and payable for the period (where the principal has been paid but interest under the MSMED Act, 2006 not paid);
The amount of interest accrued and remaining unpaid at the end of accounting year; and	-	-
The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23.
Note 34 : Contingent Liabilities (Rs. In Lakhs)
Particulars	As at 31st March, 2024	As at 31st March, 2023
Disputed Income Tax Liabilities	08.72	-

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. “Agri Trading Business”, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments”.

Note 37 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value

a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the shortterm maturities of these instruments

b) 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 this evaluation, allowances are taken to account for the expected losses of these receivables.”

B. Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company’s operational and financial performance.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Currency risk

The Company is not much exposed to currency risk.

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 trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Note 38 : Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

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 return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity share capital and other equity and total debt includes long term borrowings, short term borrowings, long term lease liabilities and short term lease liabilities.

Note 39 : Corporate Social Responsibility

The Provision for CSR are not applicable as per Section 135 of Companies act 2013.

Note 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

2. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

(i) 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.

(ii) 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.

4. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

5. The Company has not traded or invested in crypto currency or virtual currency during the year.

6. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory.

7. During the year, the company has not announced any dividend during the year.

8. The Company has not been declared wilful defaulter by any banks.

Note 41 : Prior year comparatives

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s presentation wherever considered necessary.

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Mar 31, 2014

Corporate information

Note on the business activity i operations of the Company:- Manufacturing of chemical processing equipments like heat exchangers, air drying plants etc. and its Registered place of business is aurus Chambers, B Wing, Plat No. 701, S.S. Amrutwar Margh, Worli, Mumbai-400013.

Contingent liabilities are disclosed in the Notes.

Provisions and contingencies

Contingent Liabilities not provided in respect of:

a) Claim against the company not acknowledged as debt Rs.3,18,811/- towards Bombay Sales Tax. Central Sales Tax Assessment dues.

b) No Provision has been made for the present liabilities for future payment of gratuity. Valuation of gratuity not done for the current financial year, the same will be accounted as and when paid

c) Arrears of dividend on 9.5% Redeemable Cumulative Preference Shares of Rs. 100/- each. Rs. 15,20,000/- has neither been paid nor provided.

d) Balance due to/ due from various parties are subject to confirmation.

e) interest on unsecured loan has not been provided as Directors are pursuing with unsecured loan creditors to waive the interest

f) The company do not have any information with regard to creditors whether they possesses any S.S.I. units

g) As per the term and conditions, the company was to redeem the Redeemable Preference shares at par after 12 years, that is in the year 1985-86 subject to three month notice, but not later than 15 years from the date of allotment that is 27.09.1973 but the company has not redeemed the same so far. As the maturity period of same shares is over, the company is liable to pay dividend on these shares @9.5% p.a., that is Rs.95,000/-p.a. and aggregating to Rs.23,50,000/- liable to be paid to the shareholders of those shares, however,Rs.23,50,000/- has not been provided in the balance sheet. Hence the debit balance of profit & loss account as appearing in the balance sheet would have been higher to the extent of Rs.23,50,000/-and the loss for the current year would have been higher to the same extent.

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Mar 31, 2013

1 Corporate information

Note on the business activity / operations of the Company:- Manufacturing of chemical processing equipments like heat exchangers, air drying plants etc. and its Registered place of business is aurus Chambers. B Wing, Flat No. 701, S.S. Amrutwar Margh, Worii, Mumbai-400013.

Note 2 Disclosures under Accounting Standards (contd.) Provisions and contingencies

Contingent Liabilities not provided in respect of:

a) Claim against the company not acknowledged as debt Rs.3,18,811/- towards Bombay Sales Tax, Central Sales Tax Assessment dues.

b) No Provision has been made for the present lialibities for future payment of gratuity. Valuation of gratuity not done for the current finanical year, the same will be accounted as and when paid

c) Arrears of dividend on 9.5% Redeemable Cumulative Preference Shares of Rs.100/- each,Rs.15,20,0007- has neither been paid nor provided.

d) Balance due to/ due from various parties are subject to confirmation. rest on unsecured loan has not been provied as Directors are pursuing with unsecured loan creaditors to waive the inie.dst

f) The company do not have any information with regard to creditors whether they possesses any S.S.I, units

g) As per the term and conditions, the company had redeemed the Redeemable Preference shares at par after 12 years, that is in the years, that is in the year 1985-86 subject to three month notice, but not later than 15 years from the date of allotment that is 27.09.1973 but the company has not redeemed the same so far.As the maturity period of same shares is over, the company is liable to pay dividend on these shares @9.5% p.a., that is Rs.95,000/-p.a. and aggregate to Rs.22,80,000/- liable to be paid to the shareholders of those shares, however,Rs.22,80,0007- as not been provided in the balance sheet. Hence the debit balance of profit & loss account as not appearing in the balance sheet would have been higher to the extent of Rs.22,80,000/-and the loss for the current year would have been higher to the same extent.

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Mar 31, 2012

1 Corporate information Note on the business activity / operations of the Company:- Manufacturing of chemical processing equipments like heat exchangers, air drying plants etc, and its Registered place of business is Delstar, N.S.Patkar Marq, Mumbai-400

Contingent Liabilities not provided in respect of:

a) Claim against the company not acknowledged as debt Rs.3,18,811/- towards Bombay Sales Tax, Central Sales

b} No Provision has been made for the present lialibities for future payment of gratuity. Valuation of gratuity noi done for the current finanicai year, the same wiil be accounted as and when paid

c) Arrears of dividend on 9.5% Redeemable Cumulative Preference Shares of Rs.100/- each,Rs.15,20,000/- has neither been paid nor provided

d) Balance due to/ due y'rom various parries are subject to confirmation,

e) Interest on unsecured loan has not been provied as Directors are pursuing with unsecured loan creaditors to waive the interest

f) The company do not have any information with regard to creditors whether they possesses any S.S.I, units

g) As per the term and conditions, the company had redeemed the Redeemable Preference shares at par after 12 years, that is in the years, that is in the year 1985-86 subject to three month notice, but not later than 15 years from the date of allotment that is 27.09.1973 but the company has not redeemed the same so far.As the maturity period of same shares is over, the company is liable to pay dividend on these shares @9.5% p.a., that is Rs.95,000/-p,a. and aggregate to Rs.15,20,000/- liable to be paid to the shareholders of chose shares, however.Rs,15,20,0007- as not been provided in the balance sheet. Hence the debit balance of profit & loss account as not appearing in the balance sheet would have been higher to the extent of Rs.l5,20,000/-and the loss for the current year would have been higher to the same extent.

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Mar 31, 2011

1.Contingent Liabilities not provided In respect of:

(a) Claim against the company not acknowledged as debt Rs.3,1 8,811/- toward Bombay Sales Tax, Central Sales Tax Assessment dues.

2. No Provision has been made for the present liabilities for future payment of gratuity . Valuation of gratuity not done for the current financial year, the same will be accounted as and when paid.

3. Arrears of Dividend on 9.5% Redeemable Cumulative Preference Shares of Rs.100/- each, Rs. 14.25,000/- has neither been paid nor provided.

4. Balance due to / due from various parties are subject to confirmation .

5. Interest on unsecured loan has not been provided as Directors are pursuing with unsecured loan creditors to waive the interest.

6. Depreciation on Fixed Assets has been provided as per schedule XIV of Companies Act 1956 on a W.D.V . basis.

7. The Company has not disclosed separately the expenses aggregating 2,78,439/-(Rs.4,39,957/-) as required by Part II of schedule VI of Companies Act, 1956 . However , this non compliance does not have any effect on either the result already reflected in the Profit and Loss A/c or state of affairs already reflected in the Balance Sheet.

8. The Company do not have any information with regard to creditors whether they possesses any S.S.I Units.

9. As per the terms and conditions , the company had to redeemed the Redeem bale Preference Shares at par after 12 years, that is in the year 1985 - 86 subject to three months notice , but not later than 15 years from the date of allotment that is 27.09.1973 but the company has not redeemed the same so far . As the maturity period of same shares is over, the company is liable to pay dividend on these shares % 9.50% p.a., that is Rs.95,000/- p.a. and aggregate to Rs. 14,25,000/- liable to be paid to the shareholders of those shares , however , Rs. 14,25,000/- as not been provided in the Balance sheet. Hence the debit balance of profit & Loss Account has appearing in the Balance Sheet would have been higher to the extent of Rs. 14,25.000/- and the loss for the current year would have been higher to the same extent.

10. Segment Reporting :

The company has one segment of activity namely "Engineering goods" during the year .

11. Deferred Tax :

The Company has unabsorbed depreciation and carried forward losses available for set - off under the Income Tax Act, 1961 . However in view of present uncertainty regarding generation of sufficient future taxable income , net deferred tax assets at the year end including related credit for the year have not been recognized in these accounts on prudent basis.

12. Previous year figures have been regrouped and re - arranged wherever necessary.

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Mar 31, 2010

1.Contingent Liabilities not provided in respect of:

(a) Claim against the company not acknowledged as debt Rs.3,18,811/- toward Bombay Sales tax, Central Sales Tax Assessment dues.

2. No Provision has been made for the present liabilities for future payment of gratuity Valuation of gratuity not done for the current financial year, the same will be accounted as and when paid.

3. Arrears of Dividend on 9.5% Redemabl Cumulative preference shares of Rs. 100/- each Rs 14,25,000/- has neither been paid nor provided.

4. Balance due to / due from various parties are subject to confirmation .

5. Interest on unsecured loan has not been provided as Directors are pursuing with unsecured loan creditors to waive the interest.

6. Depreciation on Fixed Assets has been provided as per schedule XIV of Companies Act 1956 on a W.D.V . basis.

7. The Company has not disclosed separately the expenses aggregating 4 39 95/-(Rs 4 09 333/-) as required by Part II of schedule VI of Companies Act, 1956 . However . this non compliance does not have any effect on either the result already reflected in the Profit and Loss A/c or state of attars already reflected in the Balance Sheet.