Notes to Accounts of Silkflex Polymers (India) Ltd.

Mar 31, 2025

Others

i) Previous year figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year

ii) Creditors, Advances and Liabilities have been taken as per books, are subject to reconcilation/confirmation and consequential adjustments,if any.

iii) In the opinion of Board of Directors, Current Asset, Loans and Advances are Approximately of the same value at which these are stated in the Balance Sheet, if

33 Title deeds of Immovable Property not held in name of the Company

The company does not have any immovable property (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the company) for which title deeds are not held in the name of the company. Accordingly, the requirement to disclose details relating to title deeds of immovable properties not held in the name of the company is not applicable.

34 Revaluation of Property, Plant and Equipment

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

37 Details of Benami Property held

The Company affirms that no proceedings have been initiated or are pending against it under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder. The Company does not hold any benami property, nor has it been involved in any transaction that qualifies as a benami transaction as defined under the said Act.

38 The company has taken Borrowings from Bank on the basis of Security of Current Asset i.e Inventory.

The monthly statements of current asset i.e Inventory filed by the Company with banks are in agreement with the books of accounts.

39 Contingent liabilities.

Currently, there are no contingent liabilities that should be reported in the financial statements of the company.

40 Wilful Defaulter

Date of declaration as wilful defaulter

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

41 Registration of Charge

There are no charges or satisfaction yet to be registered with Registrar of companies (ROC)

42 Arrangements and Amalgamations

There are no Scheme of Arrangements placed before the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 for approval.

43 Compliance with number of layers of companies

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.

44 Utilisation of Borrowed funds and share premium

The Company has not received any fund (which are material either individually or in the aggregate) from any party(ies) (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 in any manner by or on behalf of the Funding Party (Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

45 Utilisation of Money raised through Initial Public Offer (SME IPO)

The Company has raised funds by way of initial public offer dated 15/05/2024 of 34,82,000/- equity shares of face value of Rs 10/- each for cash at a price of ? 52/- per equity share including a share premium of ? 42/- per equity share (the "issue price") aggregating to ? 18.10 Cr ("the issue") and fund has been used for the purpose for which it has been raised.

47 Segment reporting

The Company has single reportable business segment. Hence, no separate information for segment-wise disclosure is given in accordance with the requirements of AS 17 - Operation Segments.

48 Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

49 Virtual Currency Transaction

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year._

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Mar 31, 2024

2.1 During the FY 2023-24, the Company has issued 56,25,000 Equity Shares as under:

56,25,000 Equity shares at Rs. 10 each (being Rs. 10 of Face Value) vide Bonus issue dt. 04.10.2023

2 2 The company has not declared any dividend to equity shareholders during the year ended 31st March, 2024 (P.Y.

. NIL). The Total dividend appropriation for the year ended 31st March 2024 is NIL (P.Y. NIL)

2 3 The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/-. Each Holder of . Equity Share is entitled to 1 vote per share.

In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the 2.4 remaining assets of the Company, after distribution of all preferential amounts.The distribution will be in proportion to the number of Equity shares held by the shareholder.

Term loan for purchase of Motor car from Punjab National Bank is secured against the hypothecation of vehicle in

Note favour of the Bank. The sanctioned amount is Rs. 14,73,000.00 dt. 17/03/2021 and is repayable in 84 Equal 4 1

monthly installments of Rs. 22630.00 each

Term loan for purchase of Motor car from Punjab National Bank is secured against the hypothecation of vehicle in

^Note favour of the Bank. The sanctioned amount is Rs. 16,83,000.00 dt. 08/02/2023 and is repayable in 84 Equal 4 2

monthly installments of Rs. 26658.00 each

Note Borrowing from Punjab National Bank:

5.1

1 Tenor: One year from the date of Sanction i.e. upto 27.07.2024.

Primary Security: Hypothecation of entire Current Assets of the company, both present and future on exclusive

² basis.

3 Collateral Security: Extension of EM of the following properties on exclusive basis:

Residential Property located at 9-A/2, Manav Purusharth Society, Maninagar, Ahmedabad, Gujarat, owned by ^{( )} Director Mr. Tushar Lalit kumar Sanghavi

Commercial Property located at Daga Complex, Sulati Jaladhulagori, Sankrail, Howrah, West Bengal, owned by the

(b)

company

(c) Liquid Collateral in form of Fixed Deposits receipt in the name of company

Liquid Collateral in form of Assignment of Metlife Policy (Policy No. 22154203) in the name of Director Mr. Tushar

^(d) Lalit kumar Sanghavi

(e) Personal Guarantee of Mr. Tushar Lalit kumar Sanghavi and Mrs. Urmi Raj Mehta

The Company has filed monthly returns or statements with the banks where applicable, which are in agreement with the books of account

26. The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

27. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

28. Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to confirmations and reconciliation if any, by the respective parties.

29. The account balances existing at the beginning of the period have been relied upon the audited financial statements audited by the previous auditor.

30. Statement of Management

a. The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

b. Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

1. Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are given below:

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

Additional Regulatory Information of the Company:

34. Tittle deeds of immovable property.

The Company do not have any Immovable property which is not held in the name of Company.

35. Revaluation of property, plants and equipment.

The Company has not revalued its Property, Plant and Equipment for the current year.

36. Loans or Advances in the nature of loans.

No loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

37. Capital Work In Progress (CWIP)

There has been Capital work in progress for the current year of the company for construction of building at the land located in Tirupur in the name of the company and for Installation of CCTV cameras in the Kolkata Head office of the company as follows:

38. Intangible assets under development:

There is one Intangible assets under development in the current year amounting to Rs. 4,15,07,500/-which is advance given as Technology transfer fees by the company and valid technology transfer agreement for the same is held in the company''s record.

39. Details of Benami property held.

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the rules there made under. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.

40. Borrowings from bank or financial institution on the basis of current assets.

For the same comments is given in clause (ii)(b) Companies (Audit and Auditor) Rules, 2014.

41. Wilful Defaulter.

The company has not been declared as wilful defaulter by any bank or financial institution or government or government authority during the year reporting period.

42. Relationship with struck off companies.

The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of companies act 1956.

43. Registration of charges or satisfaction with Registrar of companies.

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

44. Compliance with number of layers of companies.

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of

company''s act read with companies (restriction on number of layers) Rules, 2017.

45. Compliance with approved scheme of Arrangements.

The Company has not have made any arrangements in terms of section 230 to 237 of companies act 2013, and hence there is no deviation to be disclosed.

46. Utilization of borrowed funds and share premium.

As on March 31, 2024, there is no unutilized amount in respect of any issue of securities and long term borrowing from banks and financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

47. Corporate social responsibility (CSR).

Section 135 (Corporate social responsibility) of the Companies Act, 2013 is not applicable to the company.

48. Details of crypto currency and virtual currency.

The company has not traded or invested in crypto currency or virtual currency during the financial year.

49. A. 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.

B. 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 on behalf of the Ultimate Beneficiaries.