Notes to Accounts of Shubhshree Biofuels Energy Ltd.

Mar 31, 2025

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to
settle the present obligation at the Balance Sheet date.

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 or a reliable estimate of the amount cannot
be made.

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

xvii) Extraordinary, Exceptional, Prior Period Items and Changes in Accounting Policies

a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the
Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial
statements. Similarly, any external event beyond the control of the Company, significantly impacting income or ex¬
pense, is also treated as extraordinary item and disclosed as such.

(b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activ¬
ities of the Company, is such that its disclosure Improves an understanding of the performance of the Company. Such
income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

29 ACCOUNTING STANDARD DISCLOSURES

The Company is a Small and Medium Sized Company (SMC) as defined in the Companies (Accounting Standards)
Rules, 2021, notified under the Companies Act, 2013. Accordingly, the Company has complied with the accounting
standards as applicable to a SMC.

30 CONTINGENT LIABILITIES

There are no contingent liabilities exist in the company except the following:

33 The Company has made an Initial Public Offering (IPO) of 13,92,000 Equity shares of face Value of Rs. 10/- each at
a price of Rs. 119/- per Equity Share (including a share premium of Rs. 109/- per Equity Share) aggregating to Rs.
1656.48 Lakhs on 12th September, 2024. The Issue was opened on September 9, 2024 and closed on September 11,
2024. The aforesaid Equity shares of the Company got listed on NSE Emerge Platform on September 16, 2024.

34 Normal Operating cycle and classification of Assets and Liabilities into Current and Non-Current

a) In accordance with the requirement of Schedule III, normal operating cycle of the company''s business is deter¬
mined and duly approved by the Board of Directors.

b) Assets and Liabilities of the above business have been classified into Current and Non Current using the above Nor¬
mal operating cycle and applying other criteria prescribed in Schedule III.

b) In the opinion of the Board, all the assets other than PPE, 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 and
provision for all liabilities have been made.

Additional Information:

a) Undisclosed Income: During the year, the Company has not surrendered or disclosed any undisclosed income in
the tax assessment under the applicable provisions of the Income Tax Act, 1961 and rules made thereunder.

b) Details of Crypto Currency or Virtual Currency: During the year, the Company has neither traded nor invested in
crypto currency or virtual currency.

c) Corporate Social Responsibility (CSR): During the year the Company is not covered under the provisions of Section
135 of the Act.

d) During the year, the company has not obtained any loans for specific purposes, except for a vehicle loan, the
details of which are provided in Annexure 5A.

e) There are no reportable business segments identified by the company.

f) The Company evalutes events and transactions that occur subsequent to the balance sheet date but prior to the
approval of financial satements to determine the necessity for recognition and/or reporting of subsequent events and
transactions in the financial statements. There are no such events.

g) The other additional disclosures and information''s (not specifically disclosed) as required by Schedule III are either
nil or not applicable.

a) Title deeds of the immovable properties: The title deeds of the immovable properties are held in the name of the
Company.

b) Revaluation of Property, Plant and Equipment (PPE:) The Company has not revalued its PPE, accordingly the
disclosure of information related to this point is not applicable.

c) Loans and advances granted to promoters, directors, KMPs and the related parties: The Company has not granted
loans and advances in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the
Act) either severally or jointly with any other person, that are repayable on demand or without specifying any terms
or period of repayment. Company has granted business advance to subsidiaries for incorporation and business pur¬
poses which will be repaid in next financial year.

d) Capital-Work-in Progress (CWIP): The Company dose not have any CWIP.

e) Intangible assets under development: The Company dose not have any Intangible assets under development.

f) Details of Benami Property Held: In opinion of the management, neither the Company hold any benami property
nor any proceedings have been initiated or pending against the Company for holding any benami property under the
"Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

g) Willful Defaulter: On the basis of information available with the management, the Company is not a willful de¬
faulter.

h) Relationship with Struck off Companies : In opinion of the management, the Company has not undertaken any
transactions with companies struck off under Section 248 of the Act or Section 560 of Companies Act,1956.

i) Registration of Charges or Satisfaction with Registrar of Companies: During the year, the Company was not re¬
quired for registration/ modification or satisfaction of charges.

j) Compliance with Number of Layers of Companies: The Company has 3 subsidiaries which are incorporated during
the year and all the related compliances has been complied.

k) Compliance with approved Scheme(s) of Arrangements: The Company has not undertaken any such transaction,
accordingly the disclosure of information related to this point is not applicable.

l) Utilization of Borrowed Funds and Share Premium:

i) The Company has not advanced or loan or invested funds (either borrowed funds or share premium or any other
source or kind of funds) to any other persons or entity, including foreign entity (intermediaries) with the understand¬
ing that the intermediary shall directly or indirectly lend or invest in other persons or entitles identified in any manner
whatsoever by or on behalf of the Company (ultimate Beneficiaries) or provided 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 or entity, including foreign entity (Funding Party) with
the understanding that the Company shall directly or indirectly lend or invest in other person or entity identified in
any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provided any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

As per our report of even date

For Khandelwal Badaya & Co. For and on behalf of

Chartered Accountants SHUBHSHREE BIOFUELS ENERGY LIMITED

Firm Registration No. - 016506C

Sd/- Sd/-

Mr. Sagar agrawal Mrs. Aastha Agarwal

Sd/- (Chairman & Managing Director) (Director)

CA Deepak Khandelwal (DIN: 03209247) (DIN: 07172285)

(Partner)

Membership Number : 414157 Sd/- Sd/-

UDIN: 25414157BMLBFV8891 Mr. Jitendra Kumar Kumawat Nidhi Khandelwal

DATE: 27-05-2025 (CFO) (Company Secretary)

Place : Jaipur (PAN: DPDPK0520J) (M. No: A31808)

---

Mar 31, 2024

1. Terms/rlghts attached to equity shares:

i. The company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share

6. The company did not have outstanding calls unpaid by the directors and officers of the Company (P.Y. Nil).

7. The company has issued Right Issue of 100000 shares on November 21,2023 and has further is«flec^4l)WSQ shares as Bonus

Allotment on January 12,2024. .... /\Ov-

1. Amount due to entities covered under Micro, Small and Medium Enterprises as defined in the Micro, Small, Medium Enterprises Development Act, 2006, have been identified on the basis of information available with the Company.

2. The information required to be disclosed under MSMED Act, 2006 has been determined to the extent such parties have been identified on the basis of the information available with the company. The details of amount outstanding to Micro and Small Enterprises are as under:

25 ACCOUNTING STANDARD DISCLOSURES

The Company is a Small and Medium Sized Company (SMC) as defined in the Companies (Accounting Standards) Rules, 2021, notified under the Companies Act, 2013 Accordingly, the Company has complied with the accounting standards as applicable to a SMC

26 EMPLOYEE BENEFITS

The Company has adopted the Accounting Standard 15 (revised 2005) on Employee Benefits as per an actuarial valuation carried out by an independent actuary The disclosures as envisaged under the standard are as under-:

27 CONTINGENT LIABILITIES

There are no contingent liabilities exist in the company.

Note:

The company has issued Right Issue of 100000 shares on November 21,2023 and has further issued 3740000 shares as Bonus Allotment on January 12, 2024 We have considered Right issue and Bonus issue for calculation of EPS.

30 The company filed Draft red herring prospectus (DRHP) on Nse Emerge (i.e. NSE Sme stock exchange platform) Company has incurred Rs. 13 78 Lacs for the process of filing DRHP and other related activities

31 Company has also remeasured their Property, Plant & Equipment and provision for gratuity and such remeasurement amount of Rs.O 02 Lacs booked under prior period income.

32 Normal Operating cycle and classification of Assets and Liabilities into Current and Non-Current

a) In accordance with the requirement of Schedule III, normal operating cycle of the company''s business is determined and duly approved by the Board of Directors

b) Assets and Liabilities of the above business have been classified into Current and Non Current using the above Normal operating cycle and applying other criteria prescribed in Schedule III

34 OTHER NOTES

a) Previous year figures have been re-classified and regrouped in accordance with the requirements applicable in the current year

b) In the opinion of the Board, all the assets other than PPE, 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 and provision for all liabilities have

Additional Information:

a) Undisclosed Income: During the year, the Company has not surrendered or disclosed any undisclosed income in the tax assessment under the applicable provisions of the Income Tax Act, 1961 and rules made thereunder.

b) Details of Crypto Currency or Virtual Currency: During the year, the Company has neither traded nor invested in crypto currency or virtual currency.

c) Corporate Social Responsibility (CSR): During the year the Company is not covered under the provisions of Section 135 of the Act.

d) During the year, the Company has not taken any loan from banks and financial institutions for any specific purpose

e) There are no reportable business segments identified by the company

f) The Company evalutes events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial satements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. There are no such events

e) The other additional disclosures and information''s (not specifically disclosed) as required by Schedule III are either nil or not applicable.

36 ADDITIONAL REGULATORY INFORMATIONS

a) Title deeds of the immovable properties: The title deeds of the immovable properties are held in the name of the Company

b) Revaluation of Property, Plant and Equipment (PPE:) The Company has not revalued its PPE, accordingly the disclosure of information related to this point is not applicable

c) Loans and advances granted to promoters, directors, KMPs and the related parties: The Company has not granted loans and advances in the nature of loan to promoters, directors, KMPs and the related parties (as defined under the Act) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment

d) Capital-Work-in Progress (CWIP): The Company dose not have any CWIP.

e) Intangible assets under development: The Company dose not have any Intangible assets under development

f) Details of Benami Property Held: In opinion of the management, neither the Company hold any benami property nor any proceedings have been initiated or pending against the Company for holding any benami property under the “Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder

g) Willful Defaulter: On the basis of information available with the management, the Company is not a willful defaulter.

h) Relationship with Struck off Companies : In opinion of the management, the Company has not undertaken any transactions with companies struck off under Section 248 of the Act or Section 560 of Companies Act, 1956.

i) Registration of Charges or Satisfaction with Registrar of Companies During the year, the Company was not required for registration/ modification or satisfaction of charges.

j) Compliance with Number of Layers of Companies: The Company does not have any subsidiary, accordingly this point is not applicable

k) Compliance with approved Scheme(s) of Arrangements: The Company has not undertaken any such transaction, accordingly the disclosure of information related to this point is not applicable.

l) Utilization of Borrowed Funds and Share Premium:

i) The Company has not advanced or loan or invested funds (either borrowed funds or share premium or any other source or kind of funds) to any other persons or entity, including foreign entity (intermediaries) with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or entitles identified in any manner whatsoever by or on behalf of the Company (ultimate Beneficiaries) or provided 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 or entity, including foreign entity (Funding Party) with the understanding that the Company shall directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.