Notes to Accounts of Hi-Green Carbon Ltd.

Mar 31, 2025

(n) Provisions, Contingent Liabilities and Contingent Assets

(i) Provision is recognized 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.

(iii) No provision has been made in the financial statements for the doubtful debt and loan and
advances.

As per our report of even date

For M/s. J C RANPURA & CO For and on behalf of the Board of

Chartered Accountants Hi-Green Carbon Limited

Firm''s Registration No. 108647W

SD/- SD/- SD/- SD/-

Ketan Y Sheth Amitkumar Bhalodi Shaileshkumar Makadia Sagar Siyani

Partner Managing Director & CFO Director Company Secretary

Membership No. 118411 DIN : 0410150 DIN : 0593049 M. No F13202

UDIN: 25118411BMHVGH8293

Place: Rajkot Place: Rajkot

Date: 27 May, 2025 Date: 27 May, 2025

In the Previous Year, ^ 3,893.50 Lakhs proceeds were received as Securities Premium from the
issue of shares and incurred expenses of ^ 394.69 lakhs for issue of shares and the said has been
written off againts share premium received in such issue of shares.

Nature of Res erve and Surplus
Securities Premium

Securities premium is used to record the p remium on iss ue of shares. This re serve shall be utilised
in accordance with the provisions of the Companies Act, 2013.

Accumulated Profit & Loss Account

Accumulated Profit & Loss are the profit/ (Loss) that the Company has earned/incurred till date
less any transfer to general reserve, dividends or other distribution paid to shareholders.

1. Company has invested in 50,00,000 Equity Shares of Rs. 10/- each of its subsidiary Company
Shantol Recycling Private Limited, incorporated on 16 April, 2023 [% of ownership held by the
company as at 31 March 2025 - 100%] having CIN U38300GJ2023PTC140169 having main
objective as waste collection. treatment and disposal activities.

2. On 01.10.2024, Company has invested in 17,00,000 equity shares of Rs. 10/- each in subsidiary
Company Samsara Recycling Private Limited, incorporated on 27 July, 2022 [% of ownership
held by the company as at 31 March 2025 - 100%] CIN U37100GJ2022PTC134287 having main
objective of processing of rubber scrap and manufacturing of crumb rubber.

3. Company has invested in 5,100 Equity Shares of Rs. 10/- each in the Subsidiary Company
Green Valley Hydrocarbon Private Limited, incorporated on 06 August, 2024 [% of ownership
held by the company as at 31 March 2025 - 51%] CIN U39000GJ2024PTC154134 having main
objective of remediation activities and waste management services.

The company is not holding any Benami property as defined under Prohibition of Benami
Property Transactions Act, 1988.

43 Wilful Defaulter

The board of directors of the Company is of the opinion that the Company has, till the date of
signing of this financial statement, not been declared as willful defaulter by its banks or financial
institution

Reasons for Variances

(a) Significant drop in Current Assets as compared to increase in Liabilities result into decline of
current ratio.

(d) Average Shareholders'' Equity has significantly increased this year as a direct result of the
successful public offer and the securities premium generated from the previous year. Meanwhile,
profit after tax has remained steady, demonstrating our financial resilience.

(g) The trade payables experienced a substantial increase during the year.

(h) Due to reduction of Current assets during the year.

48 Disclosure where company has given loan or invested to other person or entity to lend or
invest in another person or entity

No funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person/s or
entity/ies including foreign entity/ies (“Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediaries shall lend or invest in party (“Ultimate
Beneficiaries) identified by or on behalf of the Company.

49 Disclosure where company has received fund from other person or entity to lend or invest
in other person or entity

The Company has not received any fund from any party(s) (“Funding Party/ies"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the
Company (“Ultimate Beneficiary") or provide any guarantee, security, or the like on behalf of the
Ultimate Beneficiary.

50 Undisclosed Income

The Company has not disclosed any transaction not recorded in books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income-tax
Act, 1961 and also not recorded any previously unrecorded income and related assets .

Nature of CSR activities

In the Current Year, the company has incurred expense of corporate social responsibility for the
purpose of promotion of education and general utilities.

In the Previous Year, the company had incurred expense of corporate social responsibility for the
purpose of promotion of education and general public utility in the villages near the factory and
plantation of trees at the nearby areas of the factory.

52 Details of Crypto Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the
financial year ended on 31 March, 2025.

53 Other Statutory Disclosures as per the Companies Act, 2013

a) The company has not entered into any scheme of arrangement appro ved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013.

b) There are no dividends proposed to be distributed to equity and preference share holders.

c) The Board of the Company is of the opinion that the assets other than Property,plant and
equipment, Intangible assets and Non-current investments have a value on realization in the
ordinary course of business at least equal to the amount at which they are stated.

As per our report of even date

For M/s. J C RANPURA & CO For and on behalf of the Board of

Chartered Accountants Hi-Green Carbon Limited

Firm''s Registration No. 108647W

SD/- SD/- SD/- SD/-

Ketan Y Sheth Amitkumar Bhalodi Shaileshkumar Makadia Sagar Siyani

Partner Managing Director & CFO Director Company Secretary

Membership No. 118411 DIN : 0410150 DIN : 0593049 M. No F13202

UDIN: 25118411BMHVGH8293

Place: Rajkot Place: Rajkot

Date: 27 May, 2025 Date: 27 May, 2025

---

Mar 31, 2024

(n) Provisions, contingent liabilities and contingent assets:

i. Provision is recognized 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.

iii. No provision has been made in the financial statements for the doubtful debt and loan and advances.

3. Other notes:

(a) Securities premium on the shares issued to the public:

i. During the financial year, the company has issued 59,90,000 equity shares of ?. 10/-each at a share premium of 65/- each. The Share premium is used by the company to write off the initial public offer expenses of ?. 394.69 lakhs

(b) Utilization of the funds raised through the initial public offer:

i. The Company has raised funds of ?. 4492.50 Lakhs from the Initial public offer for shares to the public. The purpose of this issue was to set up the plant at Dhule, Maharashtra. Along with this issue, the company has also raised funds by availing fresh term loan of 1400.00 Lakhs from Central Bank of India. This loan is availed for acquisition of Plant and machinery for the production in plant based in Dhule, Maharashtra.

ii. As on 31 March 2024, the operations of the company in Dhule plant have not been initiated. Thus, all the expenses incurred for the plant in Dhule are capitalized in Capital Work in Progress.

iii. Advances recoverable in cash or in kind or for value to be received as shown in Note-19 Short-Term Loans & Advances include the following amount due from related parties.

For J C Ranpura & Co., For and on behalf of the board of directors

Chartered Accountants M/s. Hi- Green Carbon Limited

Firm Registration no. 108647W

Ketan Y. Sheth Amit Bhalodi

Partner Managing Director & CEO

Membership no. 118411 DIN:00410150

UDIN: 24118411BJZWQZ4608

Place: Rajkot

Shaileshkumar Makadia

Date: 18 May 2024

Director DIN: 00593049

Sagar Sayani

Company Secretary Membership no. A55224

42. Details of Benami Property held

The company is not holding any Benami property as defined under Prohibition of Benami Property Transactions Act,1988.

43. Wilful Defaulter

The board of directors of the Company is of the opinion that the Company has, till the date of signing of this financial statement, not been declared as willful defaulter by its banks or financial institution

44. Relationship with Struck off Companies

On the basis of confirmation with the parties, the board of directors of the Company is of the opinion that the Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013.

45. Registration of Charge

There are two vehicles purchased on loan for which charges thereof is to be registered with ROC.

46. Compliance with number of layers of companies

There are no number of layers as prescribed under clause 87 of section 2 of the Companies Act, 2013 read with the Companies (Restrictions on number of layers) Rules, 2017.

Reasons for Variances

(a) There is an increase of huge proportion in the current ratio. The reason for such exponential increase is the synergy availed through utilization of funds raised in Initial public offer in working capital of the company.

(b) As the Equity share capital and securities premium are increased due to public issue of shares, the DebtEquity ratio fell despite of the new loan from Central Bank of India amounting to Rs. 14 crores.

(c) Return on equity ratio has decreased as compared to last year because the Shareholders'' Equity has increased as a result of Public issue of shares of the company and this has impacted the Average shareholders'' equity to decrease. Further, the overall profitability of the company in current year has decreased due to decrease in sales of the company.

(d) Due to reduction in sales of the company and simultaneously increase in trade receivables, the Trade Receivables'' turnover has decreased.

(e) As a result of raising of funds and increase in the sanction limit of Bank cash credit, the company has surplus funds available for the purpose of working capital and this has resulted in increase in effectiveness of payments being made to trade payables and overall working capital cycle of the working capital. This has resulted into increase in the ratio.

(f) Due to utilization of funds raised in day to day operations of the company, all the current liabilities are minimized due to improvement of the working capital cycle of the company. This has resulted into increase in working capital of the company. Thus, the Net capital Turnover ratio has decreased.

(g) During the current year, the company has issued shares to public and also raised the term loan amounting to Rs. 14 crores. This has resulted into increase in Capital Employed of the company. Further, during the current year, the profit of the company has decreased. This has effected fall of the Return on Capital Employed.

48. Disclosure where company has given loan or invested to other person or entity to lend or invest in another person or entity

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person/s or entity/ies including foreign entity/ies ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall lend or invest in party ("Ultimate Beneficiaries") identified by or on behalf of the Company.

49. Disclosure where company has received fund from other person or entity to lend or invest in other person or entity

The Company has not received any fund from any party(s) ("Funding Party/ies"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiary") or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiary.

50. Undisclosed Income

The Company has not disclosed any transaction not recorded in books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 and also not recorded any previously unrecorded income and related assets .

Nature of CSR activities

The company has incurred expense of corporate social responsibility for the purpose of

promotion of education and general public utility in the villages near the factory and

plantation of trees at nearby areas of factory.

52. Details of Crypto Currency

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

fiancial year ended on 31 March, 2024

53. Other Statutory Disclosures as per the Companies Act, 2013

(a) 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.

(b) There are no dividends proposed to be distributed to equity and preference share holders.

(c) The company has issued the shares to the public for the specific purpose and there are funds available to the company unutilized upto the date of the Financial Statements and Audit Report. These unutilized amount of funds are invested in Fixed deposits amounting to 10 crores. The said figure of Fixed deposit is shown as a part of Cash and Cash Equivalents in the Financial Statements.

(d) The Board of the Company is of the opinion that the assets other than Property, plant and equipment, Intangible assets and Non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

(e) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

See accompanying notes to the financial statements

For J C Ranpura & Co., For and on behalf of the board of directors

Chartered Accountants M/s. Hi- Green Carbon Limited

Firm Registration no. 108647W

Amit Bhalodi

Managing Director & CEO

DIN:00410150

Ketan Y. Sheth Shaileshkumar Makadia

Partner Director

Membership no. 118411 DIN: 00593049

UDIN: 24118411BJZWQZ4608

Place: Rajkot Sagar Sayani

Date: 18 May 2024 Company Secretary

Membership no. A55224