Notes to Accounts of Srivari Spices and Foods Ltd.

Mar 31, 2025

10. Provisions And Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result
of a past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Such provisions are determined based on management estimate of the amount required to settle
the obligation at the balance sheet date.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but
their existence will be confirmed by the occurrence or non- occurrence of one or more uncertain
future events not wholly within control of the Company. These are reviewed at each balance sheet
date and are adjusted to reflect the current management estimate.

Contingent assets are not recognized or disclosed in the financial statements.

11. Cash & Cash Equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all
highly liquid investments with a

remaining maturity at the date of purchase of three months or less and that are readily convertible to
known amounts of cash to be cash equivalents.

12. Segment Reporting

Company is operating under a single segment

14. Employee Benefits
Short Term Employee Benefits

The short term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.

Post-Employment Benefits
Defined Contribution Plans

The company has no policy of encashment and accumulation of leave. Therefore, no provision of leave
Encashment is made.

Company''s contribution to Provident Fund and other Funds for the year is accounted on accrual basis
and charged to the Statement of Profit & Loss for the year.

Defined Benefits Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of
such obligation are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, mortality rates and future pension
increases. Due to the complexities involved in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

The company has recognized the gratuity payable to the employees as defined benefit plans. The
liability in respect of these benefits is calculated using the Projected Unit Credit Method and spread
over the period during which the benefit is expected to be derived from employees'' services.

During the financial year 2024-25, the Company allotted 14,28,400 equity shares pursuant to a rights
issue in the ratio of 1 equity share for every 5 equity shares held by existing shareholders, as per the
record date of September 04, 2024.

The issue price was ^175 per share, comprising face value of ^10 and securities premium of ^165 per
share. The terms and conditions of the rights issue were duly incorporated in the offer letter
circulated to eligible shareholders.

The rights issue was approved by the Board of Directors on 17.04.2024 and subsequently sanctioned
by the shareholders through Postal ballot held on 31 May 2024, in compliance applicable SEBI
Regulations along with the Companies Act and rules made there.

(iv) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of ^10 per share. Each holder of
equity share is entitled to one vote per share. The Company declares and pays dividend in Indian
Rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event
of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

(v) Aggregate number of bonus shares issued, shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the reporting date:

The Company has not issued any bonus shares, shares for consideration other than cash or bought
back any shares during five years immediately preceding the reporting date.

29. Additional disclosure with respect to amendments to Schedule III

a) The Company do not have any Benami property, where any proceeding has been initiated or pending
against them for holding any Benami property.

b) The Company do not have any such transaction which is not 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 (such as, search or survey or any other relevant provisions of the Income Tax
Act, 1961).

c) The Company has not been declared a wilful defaulter by any bank or financial institution or other
lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.

d) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

e) The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial
year.

f) 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 :

g) 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

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

i) The Company have not entered into any scheme of arrangement which has an accounting impact on
the current or previous financial year

j) The Compliance with the number of layers prescribed under the Companies Act, 2013 is not
applicable .

k) There are no transaction entered with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956 as of and for the year ended 31 March 2025

l) The Company has not advanced or loaned funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

m) directly or indirectly lend in other persons or entities identified in any manner whatsoever by or on
behalf of the group (Ultimate Beneficiaries) or

n) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

Terms and conditions of transactions with related parties:

All related party transactions entered during the year were in ordinary course of the business and on arms
length basis. Outstanding balances at the year end are unsecured and settlement occurs in cash.

30. Earnings Per Share (EPS)

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders
and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential
equity shares which includes all stock options granted to employees. The number of equity shares is the
aggregate of the weighted average number of equity shares and the weighted average number of equity
shares which are to be issued in the conversion of all dilutive potential equity shares into equity shares.

31. Figures have been rearranged and regrouped wherever practicable and considered necessary.

32. 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.

33. The balances of trade payables, trade receivables, loans and advances are unsecured and considered
as good are subject to confirmations of respective parties concerned.

ix. The estimates of rate of salary increase considered in the actuarial valuation takes into account
inflation, seniority, promotion and all other relevant factors including supply and demand in the
employment market

"35. Realizations

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."

"36. Amounts in the financial statements

Amounts in the financial statements are rounded off to nearest lacs. Figures in brackets indicate negative
values."

"37. Exceptional and Extra-ordinary items

There are no exceptional and extra-ordinary items which is required to be disclosed in the attached
financial statements"

38. Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts)
Amendment Rules 2021. Companies using accounting software for maintaining their books of
account shall use only such software that includes:

- A feature for recording an audit trail of each and every transaction

- Creation of an edit log for each change made in the books of account, along with the date
of such changes

- Assurance that the audit trail cannot be disabled Company''s Implementation

- The Company uses accounting software for maintaining its books of account.

- For the year ended March 31, 2025:

- The feature of recording audit trail (edit log) was enabled at the database level to log direct
data changes.

- However, logs were maintained only for weekly basis instead of daily basis, due to concerns
over database performance.

- Consequently, audit trail logs are not available for the period April 1, 2024 to March 31,
2025.

For Rao & Shyam For and on behalf of the Board of Directors

Chartered Accountants Srivari Spices and Foods Limited

Firm Registration No: 006186S

Kandarp Kumar Dudhoria Narayan Das Rathi Neihaa Das Rathi

Partner Whole Time Director Chairman & Whole Time Director

Membership No. 228416 DIN: 09065949 DIN: 05274847

UDIN: 25228416BMONUA6463

Sushma Barla

Place: Hyderabad Naveena Chepur Company Secretary &Compliance Officer

Date: 30.05.2025 Chief Financial M. No. A51275

Officer

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Mar 31, 2024

(iv) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of ^10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

(v) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

The Company has not issued any bonus shares, shares for consideration other than cash or bought back any shares during five years immediately preceding the reporting date.

Terms and conditions of borrowings

Term loans from bank includes secured loan taken from HDFC Bank (''Term Loan 1'') carrying floating interest Reference rate spread currently @ 12%. The bank has sanctioned ^1.50 Crores and the loans were disbursed in Sep 2021 and July 2022 amounting to ^1.18 crores and ^0.27 Crores Respectively. The loan is repayable in 60 equal monthly instalments starting from October 2021. The loan is secured by exclusive charge on the stock-in-trade, book debts and receivables, plant and machinery and fixed deposits of the Company. The Loan is personally guaranteed by the director of the Company.

Term loans from bank includes secured loan from HDFC Bank (''Term Loan 2'') carrying floating interest Reference rate spread currently @ 12%. The bank has sanctioned ^1.85 Crores was disbursed in July

2022. The loan is repayable in 60 equal monthly instalments starting from August 2022. The loan is secured by exclusive charge on the land, stock-in-trade, book debts and receivables, plant and machinery and fixed deposits of the Company. The Loan is personally guaranteed by the director of the Company.

Term Loans from others incudes unsecured loan taken from Aditya Birla Finance Limited amounting to ^30 Lacs carrying interest @18%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Term Loans from others incudes unsecured loan taken from Aditya Birla Finance Limited amounting to ^50 Lacs carrying interest @16.50%. The loan is repayable in 36 equal monthly instalments starting from May 2024.

Term Loans from others incudes unsecured loan taken from Ambit Finvest Private Limited amounting to ^15 Lacs carrying interest @24%. The loan is repayable in 36 equal monthly instalments starting from June

2023.

Term Loans from Bank incudes unsecured loan taken from Andhra Pradesh Mahesh Co-operative Urban Bank Limited amounting to ^10 Lacs carrying interest @9%. The loan is repayable in 36 equal monthly instalments starting from April 2023.

Term Loan from others incudes unsecured loan taken from Ashv Finance Limited amounting to ^25.00 Lacs carrying interest @19.00%. The loan is repayable in 36 equal monthly instalments starting from January 2023.

Term Loan from others incudes unsecured loan taken from Bajaj Finance Limited amounting to ^31.45 Lacs carrying interest @18.00%. The loan is repayable in 36 equal monthly instalments starting from November 2022.

Term Loan from others incudes unsecured loan taken from Cholamandlam Investment and Finance Company Limited amounting to ^25.17 Lacs carrying interest @18.00%. The loan is repayable in 36 equal monthly instalments starting from April 2024.

Term Loan from others incudes unsecured loan taken from Fedbank Financial Services Limited amounting to ^30.35 Lacs carrying interest @18.00%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Loan from bank incudes secured loan taken from Cholamandlam Investment and Finance Company Limited amounting to ^8.15 Lacs for Vehicle carries interest rate @12.09%. The loan is repayable in 48 equal monthly instalments starting April 2024. The loan is secured by exclusive charge on the Vehicles purchased by the Company.

Loan from others incudes secured loan taken from Cholamandlam Investment and Finance Company Limited amounting to ^34 Lacs for Commerical Vehicle carries interest rate @18%. The loan is repayable in 36 equal monthly instalments starting April 2024. The loan is secured by exclusive charge on the Vehicles purchased by the Company.

Term Loan from others incudes unsecured loan taken from Fedbank Financial Services Limited amounting to ^30.35 Lacs carrying interest @18.00%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Term Loan from others incudes unsecured loan taken from Hero Fincorp Limited amounting to ^25.50 Lacs carrying interest @18.50%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Loan from bank incudes secured loan taken from IDFC FIRST Bank Limited amounting to ^34.00 Lacs for Vehicle carries interest rate @16%. The loan is repayable in 48 equal monthly instalments starting May

2024. The loan is secured by exclusive charge on the Vehicles purchased by the Company.

Term Loan from others incudes unsecured loan taken from Kisetsu Saison Finance (India) Private Limited amounting to ^15.30 Lacs carrying interest @19.50%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Term Loan from others incudes unsecured loan taken from Kisetsu Saison Finance (India) Private Limited amounting to ^50.00 Lacs carrying interest @18%. The loan is repayable in 36 equal monthly instalments starting from May 2024.

Loan from others incudes unsecured loan taken from NeoGrowth Credit Private Limited amounting to ^20.00 Lacs carrying interest @24.75%. The loan is repayable in 24 equal monthly instalments starting from May 2023.

Term Loan from others incudes unsecured loan taken from Poonawalla Fincorp Limited amounting to ^25.44 Lacs carrying interest @17.00%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Term Loan from others incudes unsecured loan taken from UGRO Capital Limited amounting to ^15.27 Lacs carrying interest @19.50%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Loan from others incudes secured loan taken from UGRO Capital Limited amounting to ^40 Lacs for Vehicle carries interest rate @20.15%. The loan is repayable in 36 equal monthly instalments starting December 2023. The loan is secured by exclusive charge on the Vehicles purchased by the Company.

Loan from bank incudes unsecured loan taken from HDFC Bank Limited amounting to ^14 Lacs carrying interest @16.00%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Loan from bank incudes unsecured loan taken from Yes bank amounting to ^25 Lacs carrying interest @17.75%. The loan is repayable in 36 equal monthly instalments starting from December 2022.

Loan from bank incudes unsecured loan taken from Axis Bank Limited amounting to ^30 Lacs carrying interest @17.00%. The loan is repayable in 36 equal monthly instalments starting from November 2022.

Loan from others incudes unsecured loan taken from Clix Capital Services Private Limited amounting to ^30.13 Lacs carrying interest @19.50%. The loan is repayable in 24 equal monthly instalments starting from December 2022.

Cash credit with bank carrying floating interest Reference rate spread currently @ 12%. The bank has sanctioned ^2.00 Crores limit and the loans were disbursed in September 2021. The loan is secured by exclusive charge on the stock-in-trade, book debts and receivables, plant and machinery and fixed deposits of the Company. The Loan is personally guaranteed by the director of the Company. The Limit was revised in May 2022 to ^2.5 Crores and further revised to to ^5.00 Crores effective 11 November 2022 and due for renewal on 15 August 2023.

Note: The Company has not accounted for interest provisions as per MSMED Act, 2006 as the company has made payments to MSME Vendors within contractual period which is exceeding the contractual timelimit as per MSMED Act, 2006 and the amount payable to them are agreed between the company and the vendors considering the contractual credit period and hence, no interest is payable.

27. Contingent liabilities, commitments and other litigations (to the extent not provided for)

There are no contingent liabilities, commitments and other litigations not provided for by the Company as at 31 March 2024 and 31 March 2023.

Terms and conditions of transactions with related parties:

All related party transactions entered during the year were in ordinary course of the business and on arms length basis. Outstanding balances at the year end are unsecured and settlement occurs in cash.

29. Additional disclosure with respect to amendments to Schedule III

a) The Company do not have any Benami property, where any proceeding has been initiated or pending against them for holding any Benami property.

b) The Company do not have any such transaction which is not 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

c) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the

guidelin Trade investments (unquoted, valued at cost)es on wilful defaulters issued by the Reserve Bank of India.

d) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

e) The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.

f) 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 :

(a) 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

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

g) The Company have not entered into any scheme of arrangement which has an accounting impact on the current or previous financial year

h) The Compliance with the number of layers prescribed under the Companies Act, 2013 is not applicable .

i) There are no transaction entered with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 as of and for the year ended 31 March 2024

j) The Company has not advanced or loaned funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

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

k) Disclosure for details in relation to loans taken by the Company from banks or financial institutions on the basis of security of current assets

1. Net Profit after taxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments etc.

2. Interest and lease payments Principal repayments

3. Tangible Net Worth Total Debt Deferred Tax Liability

4. Ratios cannot be compared due to comparative period is full financial year and hence disclosure is only made for ratios which can be disclosed

30. Earnings Per Share (EPS)

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares which includes all stock options granted to employees. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which are to be issued in the conversion of all dilutive potential equity shares into equity shares.

31. Figures have been rearranged and regrouped wherever practicable and considered necessary.

32. 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.

33. The balances of trade payables, trade receivables, loans and advances are unsecured and considered as good are subject to confirmations of respective parties concerned.

34. Disclosure for Gratuity

ix. The estimates of rate of salary increase considered in the actuarial valuation takes into account inflation, seniority, promotion and all other relevant factors including supply and demand in the employment market

"35. Realizations

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."

"36. Amounts in the financial statements

Amounts in the financial statements are rounded off to nearest lacs. Figures in brackets indicate negative values."

"37. Exceptional and Extra-ordinary items

There are no exceptional and extra-ordinary items which is required to be disclosed in the attached financial statements"