Notes to Accounts of Kaka Industries Ltd.

Mar 31, 2025

u. Provisions, Contingent liabilities and Contingent
assets

A provision is recognised when the Company has
a present obligation as a result of past event and
it is probable that an outflow of resources will
be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions
(excluding retirement benefits and compensated
absences) are not discounted to its present value
and are determined based on best estimate
required to settle the obligation at the balance
sheet date. These are reviewed at each balance
sheet date and adjusted to reflect the current best
estimates. Contingent liabilities are not recognised
in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial
statements.

v. Contingencies and Events Occurring After the
Balance Sheet Date

Events that occur between balance sheet date and
date on which these are approved, might suggest
the requirement for an adjustment(s) to the assets
and the liabilities as at balance sheet date or might
need disclosure. Adjustments are required to
assets and liabilities for events which occur after
balance sheet date which offer added information
substantially affecting the determination of the
amounts which relates to the conditions that
existed at balance sheet date.

3. Additional Notes

a) In the opinion of the Board and to the best
of its knowledge and belief, the value on
realization of current assets and loans and

advances are approximately of the same
value as stated. The management has
confirmed that adequate provisions have
been made for all the known and determined
liabilities and the same is not in excess of the
amounts reasonably required to be provided
for. All other contractual liabilities connected
with business operations of the Company
have been appropriately provided for.

b) The company does not expect any statutory
liabilities other than those provided in the
books of account.

c) Advance for Capital Goods as on 31.03.2025
of the company includes advance of Total
35 crore given to Trikambhai Panabhai Patel
& Yogeshbhai Trikamlal Patel being owner
of the Unit ((Land & Building) at Survey no.
495, Village Nikoda, District Sabarkantha,
Himmatnagar Location. As per the available
documents, a Banakhat (agreement to sale)
has been executed with the seller party
dated 30/05/2024, and the final registered
sale deed (Dastavej) is yet to be executed.
The company, however, is in possession
of the premises and carrying out business
operations from Survey no. 495, Village
Nikoda, District Sabarkantha, Himmatnagar
based on notorized rent agreement with the
seller.

d) The company has taken land aggregating
about 49068 sq. mtrs on long term lease from
Bhavin R Gondaliya (director) for 30 years
located at Lasundra, Tal: Kathlal, Dis: Kheda

As per our report of even date

FOR,DINESH R THAKKAR & CO. FOR AND ON BEHALF OF THE BOARD OF

CHARTERED ACCOUNTANTS KAKA INDUSTRIES LIMITED

(Formerly known as Kaka Industries Private Limited)

Firm s Registration No. 102612W

KEYUR M THAKKAR RAJESH D. GONDALIYA NISHI D. SHAH

PARTNER Managing Director Company Secretary

Membership No. 190243 DIN:03454540 M.N_o. A60297

BHAVIN R. GONDALIYA CHINTAN J. BODAR

Whole-time Director Chief Financial Officer

DIN:07965097

PLACE : AHMEDABAD PLACE : AHMEDABAD

DATE : 15 May 2025 DATE : 15 May 2025

w.e.f. dated 27.03.2023 till date 26.03.2053.

(d) & (e) Secured Against hypothecation of all the
movable assets of the company including plant,
equipment, machinery, machinery spares,tools,
accessories, furniture, fixtures, computers etc.,
acquired/to be acquired under the project/scheme.
Further, First Charge by way of mortgage in favor
of SIDBI, the Borrower''s leasehold rights over the of
immovable properties bearing Revenue Survey No.
83, admeasuring 6171 Sq. mtrs; Revenue Survey
No.84p1, admeasuring 13962 Sq. Mtrs.; Revenue
Survey No.84p2, admeasuring 1619 Sq. Mtrs.;
Revenue Survey No.85 admeasuring 7,183 Sq. Mtrs.
and Revenue Survey No.2009-4, admeasuring
20133 Sq. Mtrs. Village: Lasundra,Taluka: Kathlal,
District: Kheda, Gujarat, N.A. land total adm. 49068

Sq. Mtrs., including building & structure thereon.
Further, First Charge by way of mortgage in favor
of SIDBI, all the freehold immovable properties of
Shri Bhavin Rajeshbhai Gondaliya, both present
and future situated at Revenue Survey No. 83,
admeasuring 6171 Sq. mtrs,Revenue Survey No.
84p1, admeasuring 13962 Sq. Mtrs. Revenue Survey
No. 84p2, admeasuring 1619 Sq. Mtrs. Revenue
Survey No. 85, admeasuring 7,183 Sq. Mtrs. and
Revenue Survey No. 2OO9-4, admeasuring 20,133
Sq. Mtrs. Village: Lasundra,Taluka: Kathlal, District:
Kheda,Gujarat, N.A. land total admeausring 49,068
Sq. Mtrs, including building and structure thereon.
Additionally Secured by Irrevocable and
unconditional guarantee of Shri Bhavin Rajeshbhai

Gondaliya, Shri Rajesh Dhirubhai Gondaliya, Smt.
Prabhaben Rajeshbhai Gondaliya and Ms. Jinal
Rajeshbhai Gondaliya.

(f) Exclusive first charge by way of hypothecation
in favour of SIDBI of all the Borrower''s movables,
including the movables, plant, machinery,
machinery spares, tools & accessories, office
equipments, computers, furnitures and fixtures,
which have been or proposed to be acquired
under the project scheme i.e. installation of
1300 Kwp Rooftop Solar Power Plant(project).
Further, Lien on Fixed Deposit Receipt(s), in the
name of Kaka Industries Limited, made with SIDBI
having face value of not less than Rs.151 lakh.
Extension of first charge by way of hypothecation
in favour of SIDBI of all the Borrower''s movables,

including the movables, plant, machinery,
machinery spares, tools & accessories, office
equipments, computers, furnitures and fixtures,
which have been or proposed to be acquired under
the earlier project scheme.

g) Secured by way of registered mortgage over
identified commercial Self Occupied Property
Situated at office No.501 & 601, Sahitya Business
Park, B/H Sahajanand Business park, Odhav,
Gujarat. Further, Unconditional and irrevocable
personal guarantee of Rajeshkumar D Gondaliya,
Prabhaben R Gondaliya, Bhavin R Gondaliya, Jinal
R Gondaliya and Bhavesh S Gondaliya.

h) Irrevocable and unconditional Personal guarantee
of Bhavin Rajeshbhai Gondaliya, Prabhaben
Rajeshbhai Patel, Rajeshbhai Dhirubhai Patel.

(i) Demand Loan Int @ 9.50 %. Exclusive Charge by
way of Hypothecation over entire current assets
such as stocks of raw materials, stocks in process,
finished goods, stores and spares, bills/book- debts/
receivables and other chargeable current assets.
Further, Secured by way of EM over all that
immovable property (Factory Land & Building)
being Plot No. 3 Paiki land admeasuring 1399.85
Sq. Mtrs. and undivided share in Common Road
admeasuring 176.04 Sq. Mtrs., total admeasuring
1575.89 Sq. Mtrs. with construction admeasuring
896 Sq. Yards situated upon land bearing Block
No. 338 of Mouje Zak, Ta.Dehgam, Registration
District Gandhingar and Sub District Dehgam
& bounded as under including assignment of
leasehold rights given to Kaka Industries Ltd
by the lessor i.e. Shri Rajesh D. Gondaliya.
Further secured by way of EM over All that
immovable property (Factory Land & Building) being
Plot No. 4 land admeasuring 1556.25 Sq. Mtrs. and
undivided share in Common Road admeasuring
215.15 Sq. Mtrs., total land admeasuring 1771.40
Sq. Mtrs. with construction admeasuring 1120
Sq. Yards situated upon land bearing Block No.
338 of Mouje Zak, Taluka Dehgam, Registration
District Gandhingar and Sub District Dehgam
& bounded as under including assignment of
leasehold rights given to Kaka Industries Ltd

by the lessor i.e. Shri Rajesh D. Gondaliya.
Further secured by way of EM over all that piece
and parcel of immovable property being Flat
No. F-202 on the second Floor in Block No F
having Super Built-up area admeasuring about
122.91 square meters with undivided share of
land 46.22 sq meters in the scheme known
as Sahaj Residency constructed on NA land
amalgamated revenue survey no. 283/2 was
merged into T.P.S. No 103 and allotted FP No. 84
admeasuring about 4736 sq meters situated at
Mouje Village- Nikol, Taluka: Asarwa in the District
Ahmedabad and Registration Sub District of
Ahmedabad-12 (Nikol) within the state of Gujarat.
Further secured by way of EM over all that piece
and parcel of Freehold Immovable Property being
Shop No. F/12 on 1st Floor having Super Built
up area admeasuring about 371 square feet in
the scheme Malavdeep Co Operative Housing
Society Limited known as “"Vikram Plaza""
constructed on Non-agricultural land bearing
Survey No. 254/1 included in T.P.S. No. 45 allotted
Final Plot No. 67 admeasuring about 2726 square
meters of Mouje, Village: Chandlodiya, Taluka:
Sabarmati, District: Ahmedabad and sub district
Ahmedabad-08 (Sola).

(j) Working Capital Demand Loan Interest @ 9.40%.

39 Details of Benami Property held

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 the rules made thereunder.

40 Relationship with Struck off Companies

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

41 Registration of Charge

The company had complied with requirement of registration of charges with Registrar of Companies in respect
of borrowings from the bank for company''s assets.

42 Compliance with number of layers of comapanies

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

Reasons for Variances

b) The ratio increased due to increase in debt in curent year as compared to previous year.

d) The ratio decreased mainly due to average shareholder equity is larger than previous year.

e) The ratio decreased as more average inventory in current year as compared to previous year.

g) The ratio decreased as the average trade payable increased in current year as compared to previous year.
(k) The ratio decreased due to sell of investment in previous year.

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 persons or entities, including foreign entities
(“Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
(Ultimate beneficiaries) by or on behalf of the company or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

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

No funds have been received by the Company from any persons or entities, including foreign entities (“Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly

or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate
Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like from or on
behalf of the Ultimate Beneficiaries.

46 Undisclosed Income

There are no transactions that are not recorded in the books of account to be surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

Nature of CSR Activities

a) Amount Donated for providing education to children and essential vocational skill training that enhance
employment or special education among women, elderly and the differently abled for the year ended March
31,2025.

b) Amount Donated for Improvement life standard of women and helping poor children''s developing as well
as Providing grains and pules to poor peoples for their daily food requirements for the year ended March
31,2024.

Details of related party transactions Nil

48 Details of Crypto Currency

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

49 Other Statutory Disclosures as per the Companies Act, 2013

There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of companies
Act, 2013.

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

The title deeds of all the immovable properties are held in the name of the company.

The borrowings obtained by the company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

50 Subsequent Events

There is no adjusting event occurred between reporting date and date of signing the financial statements.

51 Regrouping

Previous year''s figures have been regrouped and re-arranged whenever necessary to suit the current year''s
figures.

As per our report of even date

FOR,DINESH R THAKKAR & CO. FOR AND ON BEHALF OF THE BOARD OF

CHARTERED ACCOUNTANTS KAKA INDUSTRIES LIMITED

(Formerly known as Kaka Industries Private Limited)

Firm''s Registration No. 102612W

KEYUR M THAKKAR RAJESH D. GONDALIYA NISHI D. SHAH

PARTNER Managing Director Company Secretary

Membership No. 190243 DIN:03454540 M.No. A60297

BHAVIN R. GONDALIYA CHINTAN J. BODAR

Whole-time Director Chief Financial Officer

DIN:07965097

PLACE : AHMEDABAD PLACE : AHMEDABAD

DATE : 15 May 2025 DATE : 15 May 2025

---

Mar 31, 2024

13. Provisions, Contingent liabilities and Contingent assets

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the likely future outflow of economic benefits required to settle the obligation at the reporting date.

Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where 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.

Contingent assets are neither recognized nor disclosed in the financial statements.

However, Contingent assets are assessed continually and when it becomes reasonably certain that inflow of economic benefit will arise.

14. Contingencies and Events Occurring After the Balance Sheet Date:-

Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for an adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are required to assets and liabilities for events which occur after balance sheet date which offer added information substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet date.

15. Impairment Of Assets :-

An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows. An impairment loss is charged off to profit and loss account as and when asset is identified for impairment. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

16. Foreign Currency Transaction :-

a) Initial Recognition: Foreign currency transaction, are recorded in the reporting Currency, by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion: Foreign currency monetary items are reported using the closing rate.

c) Exchange Difference: Exchange differences arising on the settlement of monetary items at rates different from those at which they are initially recorded during the year or reported in previous financial statement are recognized as income or as expenses at the end of year by applying closing rate.

17. Earning Per Share :-

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed

by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

In case of bonus issue the weighted average number of equity shares outstanding during the period and for all periods presented should be adjusted for events, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

18. Government Grants :-

Government Grants are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants will be received.

Government grants whose primary conditions that company should purchase, construct or otherwise acquired capital assets are presented by deducting them from carrying value of assets.

Grants related to the revenue are adjusted against expenses to the extent there is certainty to receive.

C. Notes Forming Part Of The Accounts

1. In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated. The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for. All other contractual liabilities connected with business operations of the Company have been appropriately provided for.

2. The company does not expect any statutory liabilities other than those provided in the books of account.

3. The company is operating only one business segment viz different types of PVC and plastic products. Further, the company primarily

operates in India. Therefore, no further information required to disclose as per "Accounting Standard 17- Segment Reporting”.

4. The company had preferred appeal against penalty order for amounting Rs. 3.44 Lakhs issued by GST Department during the FY 2023-24. The company has already paid said penalty amount of Rs 3.44 Lakhs to GST department.

5. Previous year figures have been regrouped and rearranged wherever considered necessary.

6. Related Parties Transaction within the meaning elaborated under the Companies Act, 2013 & Accounting Standard-18 are showing as per attach Annexure - A.

D. Additional Regulatory Information

1. 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 persons or entities, including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate beneficiaries) by or on behalf of the company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2. No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing

or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

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

4. The company had complied with requirement of registration of charges with Registrar of Companies in respect of borrowings from the bank for company''s assets except borrowing against vehicle from HDFC bank Ltd amounting Rs.12,00,000/-.

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

6. There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of companies Act, 2013.

7 There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

8. In compliance with the section 135 of Companies Act 2013, the company has already spent amount of Rs.14.00 lakhs towards CSR expenditure.

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

10. 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 the rules

made thereunder.

11. The Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

FOR,DINESH R THAKKAR & CO. FOR AND ON BEHALF OF THE BOARD

C^HARTERE^{D A}CCO^UNTANTS kAKA INDUSTRIES LIMITED

^FRN : 1°²⁶12W Rajesh Dhirubhai Gondaliya Bhavin Rajeshbhai Gondaliya

(Chairman & Managing Director) Whole-Time Director)

^{DINESH R}.^THAKKAR din 03454540 DIN 07965097

(PARTNER)

Vandana Arun Baldi Chintan Jayantibhai Bodar ^M.^N°.°³⁸²¹⁶ (Company Secretary) (Chief Financial Officer)

M NO. 37081

^{PLACE :} AHMEDABAD place : AHMEDABAD

^{DATE :} 24/05/2024 DATE : 24/05/2024