Notes to Accounts of Prospect Consumer Products Ltd.

Mar 31, 2025

x. Provisions And Contingent Liabilities:

A provision is recognized when the company has a present obligation as a result of past events
and it is probable that the outflow of resources embodying economic benefits will occur to settle that
obligation. The company recognizes the provision on the basis of best available estimates. These
estimates are reviewed at each reporting date to reflect the current situation. Contingent Liabilities
and Contingent Assets are neither recognized nor disclosed in the financial statements but are
shown by way of a note to the Financial Statements.

xi. Business Purchase:

Business Purchase transactions are accounted for using the purchase (acquisition) method. The
assets and liabilities acquired are incorporated in the financial statements at their existing
carrying amount and the consideration has been paid by issue of fully paid equity shares at face value.
Transaction costs incurred in connection with a business acquisition are expensed as incurred. Any
excess of the amount of consideration over the value of the net assets of the firm acquired by us is
recognized in our company''s financial statements as goodwill arising on Business Purchase.
Goodwill shall be amortized to income on a systematic basis over its useful life of five years.

xii. Borrowing Cost:

Borrowing cost directly attributable to the acquisition, construction of qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use are capitalised as
part of cost of asset. The borrowing costs includes interest and transaction cost

that the company incurs in connection with the borrowing of the funds. Other interest and borrowing
costs are charged to the Statement of Profit and Loss.

xiii. Employee Benefit Expenses:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the
Statement of Profit and Loss for the year in which the related services are rendered. Provision for
long-term employee benefits such as Gratuity has been made in the books of account in accordance
with AS-15.

xiv. Cash flow Statement:

The Cash flow statement is prepared by Indirect method as per AS 3.

xv. Impairment of Assets:

At each balance sheet date, the company reviews the carrying of its fixed assets to determine whether
there is any indication that those assets suffered an impairment loss. If any such indication exists,
the recoverable amount of the assets is estimated in order to determine the extent of impairment
loss. An impairment loss is charged to Profit and loss account in the year which an asset is
identified as impaired.

xvi. Prior period comparatives:

Previous year''s figures have been regrouped/reclassified where necessary, to confirm to
current year''s classification.

xvii. Foreign Currency Transactions:

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate
prevailing on the date of the transaction or that approximates the actual rate at the date of the
transaction.

(ii) Monetary items denominated in foreign currencies at the period/year-end are restated at
period/year-end rates.

(iii) Any income or expenses on account of exchange difference either on settlement or on translation is
recognized in the Statement of Profit and Loss.

(iv) Premiums or discounts on forward contracts for hedging foreign currency transactions are
amortized and recognized in the statement of profit and loss over the period of the contract.

xviii. Government Grants:

Grants and subsidies from the government are recognized when there is reasonable assurance that
the grant/subsidy will be received, and all attaching conditions will be complied with. When the
grant or subsidy relates to an expense item, it is netted off from the respective expenses necessary
to match them on a systematic basis to the costs, which it is intended to compensate. Where the
grants or subsidy relates to an asset, its value is deducted in arriving at the carrying amount of the
related asset.

---

Mar 31, 2024

2.1 Terms/Rights attached to Equity Shares :

The company has single class of equity shares having par value of Rs 10 per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend declared from time to time.

In the event of liquidation of the company, The equity shareholder will be entitled to receive remaining assets of the company after settling the dues of preferencial creditors as per priority the distribution will be in proportion to the number equity.

26.2 : The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

26.3 : The amounts of previous year have been regrouped and reclassified wherever necessary.

26.4 : There are no significant events, which have taken place post 31st March 2024 up to the date of adoption of financial statement by the board of Director that requires to be adjusted.

28.2 : Expenditure in foreign currency during the financial year on account of Royalty, professional consultation fees, interest, and other matter NIL

28.3 : Remittance in foreign exchange on account of dividend with specific mentioned of number of non resident share holders and number of share held by them.

NIL

a) As per the Gratuity Act, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans:

NOTE 31 : Additional Regulatory Information as required by Schedule III of the Companies Act, 2013

a) All Title deeds of Immovable Property held in the name of the Company.

b) Whether the Company has revalued its Property, Plant and Equipment - Company has not revalued its Property, Plant and Equipment.

c) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties, either severally or jointly with any other person.

d) During the year there is no capital work-in-progress hence ageing schedule is not applicable.

e) During the year there is no intangible assets under development hence ageing schedule is not applicable.

f) There is no proceedings that 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.

g) The company have sanctioned borrowings from Banks or Financial Institutions on the basis of security of stock and quarterly return or statements of stock filled by the company with banks or financial institutions are in agreement with the books of accounts.

h) The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

i) As the company is not a willful defaulter it is not having any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,

1956.

k) Provisions of clause (87) of section 2 of the act read with Companies (Restriction on number of Layers) Rules, 2017 regarding compliance with number of layers of companies is not applicable to the company.

l) Details of ratios provided in NOTE 30.

m) During the year the company has not proposed any Scheme of Arrangements in terms of Section 2 30 to 237 of the Companies Act,2013

n) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

o) 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

p) During the year the company is not having any unrecorded transactions that are surrendered or disclosed as income during tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) and there is no previously unrecorded income and related assets that have been properly recorded in the books of accounts during the year.

q) Provisions of section 135 of the Companies Act, 2013 in respect of Corporate Social Responsibility is not applicable to the company.

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

---

Mar 31, 2023

x. Provisions And Contingent Liabilities:

A provision is recognized when the company has a present obligation as a result of past events and it is probable that the outflow of resources embodying economic benefits will occur to settle that obligation. The company recognizes the provision on the basis of best available estimates. These estimates are reviewed at each reporting date to reflect the current situation. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements but are shown by way of a note to the Financial Statements.

xi. Business Purchase :

Business Purchase transactions are accounted for using the purchase (acquisition) method. The assets and liabilities acquired are incorporated in the financial statements at their existing carrying amount and the consideration has been paid by issue of fully paid equity shares at face value. Transaction costs incurred in connection with a business acquisition are expensed as incurred. Any excess of the amount of the consideration over the value of the net assets of the firm acquired by us is recognized in our company''s financial statements as goodwill arising on Business Purchase. The goodwill shall be amortized to income on a systematic basis over its useful life of five years.

xii. Borrowing Cost:

Borrowing cost directly attributable to the acquisition, construction of qualifying asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of cost of asset. The borrowing costs includes interest and transaction cost that the company incurs in connection with the borrowing of the funds. Other interest and borrowing costs are charged to Statement of Profit and Loss.

xiii. Employee Benefit Expenses:

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related services are rendered. Company does not make any contributions to any Provident Fund, State Insurance plan or Gratuity plan since those laws are not applicable to the company at present.

xiv. Cash flow Statement:

Cash Flow statement was prepared as per AS 3.

xv. Impairment of Assets :

At each balance sheet date, the company reviews the carrying of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. An impairment loss is charged to Profit and loss account in the year which an asset is identified as impaired.

xvi. Prior period comparatives:

Previous year''s figures have been regrouped / reclassified where necessary, to confirm to current year''s classification .

xvii. Foreign Currency Transactions :

(i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(ii) Monetary items denominated in foreign currencies at the period/year-end are restated at period/year-end rates.

(iii) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(iv) Premium or discount on forward contracts for hedging foreign currency transactions are amortized and recognized in the statement of profit and loss over the period of the contract.

xviii. Utilization of IPO :

The company has raised money by way of initial public offerthroughBSE and it has been ut ilized for the pur posefor which t hose wer e r ais ed.

23.1 : The Company has not received any intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure if any relating to amounts unpaid as at the year end together with interest paid/payable as required under this Act have not been given.

23.2 : The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

23.3: The amounts of previous year have been regrouped and reclassified wherever necessary. The amounts are rounded off to the nearest rupee.

23.4 : There are no significant events, which have taken place post 31st March 2023 up to the date of adoption of financial statement by the board of Director that requires to be adjusted.

As per our report of even date

For, C. R. Sharedalal & Co. For and on behalf of the Board of Directors

Chartered Accountants Prospect Commodities Limited

Firm Registration No. : 109943W

Anuj J. Sharedalal Vimal Sureshbhai Mishra Priyanka Vimal Mishra

Partner Director Director

Membership No. 138022 DIN 06820041 DIN 09459276

UDIN : 23138022BGVVWW6078

Place : Ahmedabad Place : Ahmedabad Place : Ahmedabad

Date : 26-05-2023 Date : 26-05-2023 Date : 26-05-2023