Notes to Accounts of Shivam Chemicals Ltd.

Mar 31, 2025

3.2 Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares shall have one vote for each share of which he is a holder.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.

During the year ended 31st March 2025, the Company completed its Initial Public Offering (IPO) and issued 45,87,000 equity shares of face value ?10 each at an issue price of ?44 per share, including a share premium of ?34[44 - 10] per share. The shares were allotted on 30th April 2024. The equity shares were listed on BSE SME on 30th April 2024. These shares rank pari-passu in all respects with the existing equity shares of the Company.

29.3 Segment Information

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

The Company has only one business segment, hence, the disclosure of segment wise information as required by AS-17 ‘Segment Reporting’, is not applicable. Similarly, there are no geographical segments which require disclosure during the year.

29.4 Capital and Other Commitments

i. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. Nil. (Previous year Rs. Nil).

ii. For commitments related to lease arrangements, refer Note 29.5.

iii. Contingent Liability:

The Company has provided a corporate guarantee in favour of IndusInd Bank on behalf of its wholly owned subsidiary, M/s Shivam Chemicals and Minerals Private Limited, for securing credit facilities availed by the subsidiary.

As at 31st March, 2025, the outstanding amount of such facilities against which the guarantee has been issued is ? 507.98 Lakhs. The corporate guarantee represents a contingent liability for the Company and will be enforceable only in the event of default by the subsidiary.

The management does not expect any liability to arise on account of this guarantee, based on the financial position and repayment capacity of the subsidiary as at the reporting date.

29.5 Leases

The Company’s significant leasing arrangements are in respect of operating leases for office. The aggregate lease rentals payable is charged as Rent under Note 27 in Statement of Profit and Loss.

29.8 The closing balances of current & non-current assets and current & non- current liabilities are subject to verification, confirmation and reconciliation.

29.9 The company do not have any immovable properties as at 31st March, 2025.

29.10 The Company has not revalued its Property, Plant and Equipment.

29.12 There are neither any projects under Capital work-in-progress nor any intangible asset under development for FY 2024-25.

29.13 The Company does not hold any Benami Property.

29.14 The Company has borrowings from banks or financial institutions on the basis of security of current assets. Statements of the current assets including stock statement filed by the Company are in agreement with the books of accounts.

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

29.16 The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

29.17 There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

29.18 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.

29.20 The provisions of section 230 to 237 of the Companies Act, 2013 are not applicable to the Company.

29.21 (A) The Company has neither advanced or loaned or invested funds (either borrowed funds or share

premium or any other sources or kind of funds) to any other persons (s) or entity(ies), including foreign entities (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.

(B) The Company has not received any fund from any persons (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 Company (Ultimate Beneficiaries) or

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

29.22 No instance of any transactions not being 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 have been found. The Company does not have any previously unrecorded income and related assets which have not been properly recorded in the books of accounts.

29.23 The Company has maintained its books of account using accounting software that is capable of recording an audit trail (edit log), in accordance with the requirements of Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended). However, the audit trail feature was not enabled throughout the financial year, and the edit log capturing changes to accounting entries was not preserved as part of the books of account.

29.24 IPO Expenses

During the year, the Company incurred ?190.53 lakhs as expenses related to its Initial Public Offering (IPO). These expenses have been adjusted against securities premium in accordance with the requirements of Section 52 of the Companies Act, 2013 and applicable accounting standards.

29.25 Corporate Social Responsibility:

The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the Company for the financial year 2024-25 as the Company does not meet the criteria specified under sub-section (1) of the said section.

Accordingly, the Company has not constituted a CSR Committee and has not incurred any expenditure towards CSR activities during the year.

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

29.27 Previous year’s figures have been regrouped, recast and rearranged wherever necessary, to make them comparable with those of the current year’s presentation.

29.28 The figures in the financial statements have been rounded off to the nearest lakh of rupees, unless otherwise stated.

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Mar 31, 2024

2.16Provisions, Contingent liabilities and Contingent assets

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

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

2.17 Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank and in Hand and short-term bank deposits with original maturity of twelve months or less.

2.18 Government Grants

Government grants / subsidies received towards specific fixed assets have been deducted from the gross value of the concerned fixed assets and grant / subsidies received during the year towards revenue expenses have been reduced from respective expenses.

2.19 General

Accounting policies not specifically referred to, are consistent with the Indian Generally Accepted Accounting Principles and are followed consistently.

29.3 Segment Information

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

The Company has only one business segment, hence, the disclosure of segment wise information as required by AS-17 ''Segment Reporting'', is not applicable. Similarly, there are no geographical segments which require disclosure during the year.

29.4 Capital and Other Commitments

i. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. Nil. (Previous year Rs. Nil)

ii. For commitments related to lease arrangements, refer Note 28.5

iii. There are no contingent liabilities such as claims against the Company, guarantees and other money for which the Company is contingently liable for the year ended 31^st March, 2024.

29.5 Leases

The Company''s significant leasing arrangements are in respect of operating leases for office. The aggregate lease rentals payable is charged as Rent under Note 27 in Statement of Profit and Loss.

29.6 Earnings in Foreign Currency

The company has no earnings in foreign currency.

29.12 There are neither any projects under Capital work-in-progress nor any intangible asset under development for FY 2023-24.

29.13 The Company does not hold any Benami Property.

29.14 The Company has borrowings from banks or financial institutions on the basis of security of current assets. Statements of the current assets including stock statement filed by the Company are in agreement with the books of accounts.

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

29.16 The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

29.17 There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

29.18 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.

29.19 Ratios:

Following are analytical ratios for the year ended 31^st March, 2024 and 31^st March, 2023:

29.20 The provisions of section 230 to 237 of the Companies Act, 2013 are not applicable to the Company.

29.21 (A) The Company has neither advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons (s) or entity(ies), including foreign entities (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.

(B) The Company has not received any fund from any persons (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 Company (Ultimate Beneficiaries) or

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

29.22 No instance of any transactions not being 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 have been found. The Company does not have any previously unrecorded income and related assets which have not been properly recorded in the books of accounts.

29.23 The Company has used an accounting software TEZERP which is operated by a third-party software service provider, for maintaining its books of account. Further, during the year the Company has migrated to Tally ERP from TEZERP and is in process of establishing necessary controls and documentations regarding audit trail.

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

29.26 Previous year''s figures have been regrouped, recast and rearranged wherever necessary, to make them comparable with those of the current year''s presentation.

29.27 Figures have been rounded off to nearest rupee.

29.28 Pursuant to resolution passed at the meeting of members dated 30^th September,2023 the Company has issued 1,20,00,000 (One Crore Twenty Lacs) equity shares of Rs 10/- each of an aggregate value of Rs 1200 lakhs (Rupees Twelve Crores Only) as an bonus shares to the Shareholder of existing fully paid Equity Shares of the Company out of the free reserves of the Company in the proportion of 30 (Thirty) new shares for every 1 (One) Equity Shares held by the existing shareholders, whose name appear in the Register of Members as on record date i.e. 30^th September, 2023.

For PSRD & Co For and on behalf of the Board

Chartered Accountants

Firm Registration No.126390W

Pravin Oza Sanjiv Vasant Soham Vasant

Partner Managing Director Chief Financial Officer

Membership No. 119427 DIN: 03036854 DIN: 03036861

Date: 29-05-2024 Date: 29-05-2024 Date: 29-05-2024

Place: Mumbai Place: Mumbai Place: Mumbai

Shivam Vasant Rishita Taparia

Whole-time Director Company Secretary

DIN: 08512942 Mem No: A70523

Date: 29-05-2024 Date: 29-05-2024

Place: Mumbai Place: Mumbai