Notes to Accounts of Supha Pharmachem Ltd.

Mar 31, 2025

xv) Foreign Exchange: (Amount in Lakhs)

FOB Value of Exports during the year - Rs. 6,863.11/-CIF Value of Imports during the year - Rs. 6,272.46/-

xvi) There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2025. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company

xvii) As on 31.03.2025 the company had Advance received of Rs. 1,09,645.58 Lakh from debtors outstanding for more than 365 days. The same has been considered as deemed deposit and disclosed under the head âshort term borrowingâ as per Sub rule (xii) Rule-2 of the Acceptance of Deposits by Companies Rules, 2014

xviii) The Company has paid Remuneration to its director as per Section 197 of Companies Act 2013. Following are the details of Remuneration paid to director (Other than Directors Sitting Fees).

xx) Major amount of Foreign Exchange Loss/Profit pertains to advances given to Foreign suppliers and advances received from Foreign customers in previous year. Since, in previous year the Foreign Exchange Loss cannot be adjusted with its relevant purchase/sales the said amount has been transferred to âOther Incomeâ.

xxii) Financial Assets and Liabilities: Short-term borrowings, current assets, and current liabilities, including trade receivables, trade payables, and loans and advances, are subject to individual confirmations/third party confirmation and consequent adjustments, if any. The management has already requested confirmation of these balances, and while the process is still ongoing, it believes that no material adjustments will be required in the books of account upon receipt of such confirmations.

xxiii) During the year under review, the following contingent liabilities exist:

a) Outstanding income tax demand of ?27.55 lakh has been raised for Assessment Year 2016-17. The demand pertains to a period prior to the change in management pursuant to the Share Purchase Agreement (âSPAâ) executed between the Acquirer and the Seller on 09th August 2018. As per the SPA, any liability not disclosed in the Audited Balance Sheet of the Company as on 31st March 2018 shall be borne and settled by the Seller.

b) The company has received summons from the GST department seeking details of certain transactions for FY 2020-21 and FY 2021-22 involving Input Tax Credit (ITC) amounting to ?2,600.72 lakh. The company has already furnished an adequate and comprehensive reply to the relevant authority and based on the merits of its case, expects the verdict to be in its favor.

xxiv) During the year under review, the following litigations/notices/cases are pending against the Company:

a) The Company is currently subject to an investigation involving multiple entities and individuals in connection with alleged financial misconduct, primarily relating to money laundering and fraudulent activities. Key individuals and entities under scrutiny include Mr. Gulam Abbas, M/s. Fairplay, and M/s. Flawless Pharma, which have been accused of engaging in illicit financial transactions and using shell companies for fund laundering. The Company submitted its final reply on 22nd August 2024. Since then, no further queries have been raised by the Department, nor has the Company received any subsequent communication from the authorities.

b) A legal notice has been issued by advocates Abhay Garg and Anshul Garg on behalf of their client, Neoloba Specialty Private Limited, to the Company and its directors, dated September 26, 2024. The notice concerns a breach of contract due to the non-payment for goods supplied. The amount involved in said notice is ?497.02 Lakh. The company has initiated legal action under the negotiable instruments act for criminal breach of trust and other related offenses. The Case is pending with the court.

c) During the year under review, one of the creditors, Boston Ivy Healthcare Solutions Pvt. Ltd., appointed Adv. Siddhima Kotak to serve a notice of demand under Section 8 of the Insolvency and Bankruptcy Code, 2016. As on the date of the Balance Sheet, the case has not been admitted by the National Company Law Tribunal (NCLT)

xxv) Financial risk management:

The Companyâs activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Companyâs primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Companyâs risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Board of Directors are responsible for overseeing the Companyâs risk assessment and management policies and processes.

a) Credit Risk: Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Companyâs credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to Rs.59,092.77 Lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

b) Liquidity risk: Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Companyâs liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.â

c) Market risk- foreign exchange: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, trade receivables and other financial instruments.

d) Interest rate risk: The Companyâs policy is to minimize interest rate cash flow risk exposures on long-term financing. As at 31 March 2025, the Company is not exposed to any risk pertaining to the changes in market interest rates.

e) Price Risk: The Company does not deal in trading in shares/commodity market. Therefore, The Company is not exposed to fluctuations in share price arising on purchase/ sale of shares.

xxvi) Additional Regulatory Information

(i) Details of Benami Property Held: According to the information and explanations available with us, the Company does not have any Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.

(ii) Willful Defaulter: According to the information and explanations available with us, the Company has not been declared a willful defaulter by any bank or financial institution or other lender.

(iii) Relationship with Struck off companies: According to the information and explanations available with us, the Company does not have any transactions with struck off companies.

(iv) Registration of Charges/Satisfaction with ROC: According to the information and explanations available with us, the Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) Details of Crypto currency or virtual currency: According to the information and explanations available with us, the Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(vi) Utilisation of borrowed funds and share premium:

1) According to the information and explanations available with us, the Company have not advanced or loaned or invested 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 or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

(c) The Company has not entered any transaction for which declaration have to be given for relevant provision of the Foreign Exchange Management Act,1999 (42 of 1999) and Companies Act as well as there is no violation of the Prevention of Money -Laundering Act,2002.

2) According to the information and explanations available with us, the Company have 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.

(vii) Undisclosed Income: According to the information and explanations available with us, the Company does not have any 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).

(xxvii) The company has not made a provision for gratuity as required under the Payment of Gratuity Act, 1972. (XXViii) Previous yearâs figures have been regrouped, recast wherever necessary.

Mar 31, 2024

xii) Contingent liabilities:

xiii) Related Party Transactions

A related party transaction is a two-party contract which is accompanied by a pre-existing business relationship or mutual interestt:

xiv) Provision for Tax & Deferred Tax Liability: Provision for deferred tax has been accounted in accordance with Ind AS 12 âIncome Taxesâ

xv) Foreign Exchange: (Amount in Lakhs)

FOB Value of Exports during the year - Rs. 13013.92/-CIF Value of Imports during the year - Rs. 389490.67/-

xvi) xvi) There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2024. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company

xvii) As on 31.03.2024 the company had Advance received of Rs. 32963.86 Lakh from debtors outstanding for more than 365 days. The same has been considered as deposit as per Sub rule (xii) Rule-2 of the Acceptance of Deposits by Companies Rules, 2014

xviii) During the year under consideration the company has considered Net Sales of Rs. 577415.05 Lakh which are in GST portal in the month of April of FY 2024-25. Since the gross inflow of economic benefits receivable by the company for the said transaction is in FY 2023-24, therefore the same has been recorded in current reporting period

xix) The Company has paid Remuneration to its director as per Section 197 of Companies Act 2013. Following are the details of Remuneration paid to director (Other than Directors Sitting Fees).

xxiii) During the year under review there is a contingent liability of Rs.21.70 Lakh of income tax assessment year 201617. As per the Share Purchase Agreement between the Acquirer and the Seller dated 09th August 2018, any liability other than those disclosed in the Audited Balance Sheet of the Company as on 31.03.2018, shall paid by the Seller.

xxiv) In the opinion of the Board and to the best of their knowledge and belief, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of the business, and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

xxv) Financial risk management:

a) Credit Risk: Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Companyâs credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to Rs.92,060.18 Lakhs which pertains to the amount receivable from a non related party.

d) Interest rate risk: The Companyâs policy is to minimize interest rate cash flow risk exposures on long-term financing. As at 31 March 2024, the Company is not exposed to any risk pertaining to the changes in market interest rates.

e) Price Risk: The Company does not deal in trading in shares/commodity market. Therefore, The Company is not exposed to fluctuations in share price arising on purchase/ sale of shares.

(i) Details of Benami Property Held: According to the information and explanations given to us, the Company does not have any Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.

(ii) Willful Defaulter: According to the information and explanations given to us, the Company has not been declared a willful defaulter by any bank or financial institution or other lender.

(iii) Relationship with Struck off companies: According to the information and explanations given to us, the Company does not have any transactions with struck off companies.

(iv) Registration of Charges/Satisfaction with ROC: According to the information and explanations given to us, the Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) Details of Crypto currency or virtual currency: According to the information and explanations given to us, the Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(vi) Utilisation of borrowed funds and share premium:

1) According to the information and explanations given to us, the Company have not advanced or loaned or invested 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 or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

(c) The Company have not entered any transaction for which declaration have to be given for relevant provision of the Foreign Exchange Management Act,1999 (42 of 1999) and Companies Act as well as there is no violation of the Prevention of Money -Laundering Act,2002.

2) According to the information and explanations given to us,the Company have 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.

(vii) Undisclosed Income: According to the information and explanations given to us, the Company does not have any 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).

(xxvii) Previous yearâs figures have been regrouped, recast wherever necessary

As per our report of even date attached For and on Behalf of the Board

For M/s Taori Sandeep & Associates.

Chartered Accountants

F.R. No. 007414C

Atul Jain Adarsh Munjal Hanosh Santok

Partner Whole Time Director Director

M.No. 048920 DIN : 07304004 DIN : 08554687

Place : Mumbai Dhwani Desai Ashish Parkar

Dated : 27.05.2024 Company Secretary (ACS - A63688 ) Chief Financial Officer

Mar 31, 2023

xii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. During the year under review there is a contingent liability of Rs.39.71 Lakhs of income tax assessment year 2016-17. As per Share Purchase Agreement between the Acquirer and the Seller dated 09th August 2018, any liability other that those disclosed in the Audited Balance Sheet of the Company as on 31.03.2018, shall paid by the Seller.

xiii) Related Party Transactions

There was no transaction with related parties (as per IND AS 24) during the financial year:

xiv) Provision for Tax & Deferred Tax Liability: Provision for deferred tax has been accounted in accordance with Ind AS 12 âIncome Taxesâ

xvi) The Company has not received intimation from any of the inward suppliers to ascertain whether any such suppliers are falling within the definition of Micro/Small Enterprises, and hence it is not possible to provide details of amount outstanding to any such units.

xvii) The Company has paid Remuneration to its director as per Section 197 of Companies Act 2013. Following are the details of Remuneration paid to director (Other than Directors Sitting Fees)

xx) During the year under consideration it was mutually decided by the sundry debtors and the company that bill discounting charges would be borne by the customers. Therefore, expenses of Rs.10.70 lakh charged in FY 2021-22 has been written back resulting in negative amount in Finance cost in current period.

xxi) One of our debtors has been declared insolvent by the National Company Law Tribunal. Rs. 151.05 Lakhs receivable from them has been written off in current period. The said amount has been shown under the head âOther Expensesâ.

xxii) Major amount of Foreign exchange loss/profit pertains to advances given to Foreign suppliers and advance received from Foreign customers. Therefore, foreign exchange loss/profit has been transferred to the head âOther Expensesâ as purchase/sale related to the said advance were outstanding till the closure of books of accounts.

xxiii) In the opinion of the Board and to the best of their knowledge and belief, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of the business, and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

xxiv) Previous yearâs figures have been regrouped, recast wherever necessary.

As per our report of even date attached For and on Behalf of the Board

For M/s Taori Sandeep & Associates.

Chartered Accountants

atul Jain Vilas Lokhande Hanosh Santok

Partner Whole Time Director Director

M.No.048920 DIN :01228041 DIN :08554687

Place : Mumbai ashvini Dhuri ashish parkar

Dated : 30.05.2023 Company Secretary Chief Financial Officer

Mar 31, 2015

1. Corporate Information

Roxy Exports limited ('the Company') is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of manufacturing/ trading of bicycles part.

2. Basis of Preparation

The financial statements have been prepared to comply in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements lo comply in alI material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on a going concern basis under the historical cost convention on un accrual basis. Theaccounting policies have been consistently applied by the Company and are consistent with those used in the previous year The significant accounting policiesare as follows:

3. use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent Libilities, at the end of the reporting period. Although these estimates are based on the management's bast knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

4. Fixed Assets

Fixed assets arc stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use,

5. Depreciation

Depreciation is provided as per schedule II of New companies act 2013. Depreciation has been provided its per useful lives of various assets us specified in annexure A of schedule II of companies Act after retaining residual value of 5% of gross value of asset An amount of Its. 93003/- has been transferred lo reserves on account of excess depreciation charged ,as per the new provisions of Companies Act 2013.

6. Inventories

Raw materials, components;, stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on FIFO basis. Work-in-progress ,md finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

7. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sales of products- Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer and is stated net of trade discounts, returns and Sales Tax / Value Added Tax (VAT) but includes Excise Duty. The Company collects sales taxes and value added taxes on behalf of the government and. therefore, these arc not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not thee nitre amount of liability arising during the year.

Other Income: Other income includes amount of Rs. 81.09 lacs on account of write back of trading liabilities of previous years. Details of trading liability along with reasons for write buck are as under:

On account of defective goods- 64,06 lacs

On account of forfeiture of advance money lor non fulfillment of obligation Â Rs. 17,06 lacs

Interest income - Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

8. Borrowing Costs

There is no borrowing from any Bank /F.I's.

9. Foreign Currency Transactions

There is no foreign exchange transaction during the year.

10. Retirement and other Employee benefits

Gratuity: 'I he company has not made any provision for gratuity due to nil liability on a/c of gratuity..

Provident Fund: Retirement benefit in the- form of Provident Fund is a defined contribution scheme and the contributions arc charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the provident funds.

Employees State Itmtrautv. Contribution to FSI Fund is made in accordance with the provisions of the FSI Act and is charged to Protit & Loss account.

11. Income taxes

Provision for current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates.

12. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Current investments arc carried in the financial statements at lower of cost and fair value determined on an individual in vestment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

13. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss fur the period

attributable to equity shareholders (after deducting preference dividends andattrihutahle taxes) by the weighted avenue number of equity shares out standing during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares), if any.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of Shares outstanding during the period are adjusted for the effects of alldilulive potential equity shares,

14. Administrative Expenses:

Admin. Expenses include fees paid to Ahmadabad stock exchange Limited for Rs. 1,29 lacs as annual lees pertaining from years tram 1997-98 to 2014-15 and to Bombay Stock exchange I imited of Rs. 5.62 lacs for initiaI listing fees,

15. Cash & cash equlvalent

Cash and cash equivalents in the cash flow statement comprise cash at bank and on hand and shon-term in vestments with an original maturity of three months or less.

16. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or rum-occurrencc of one or more uncertainfiiturc events beyond the control of the Company ora present obligation that i.i not recognized because it is not probable thatan outflow of resources will be required to .settle the obligation.

A contingent liability also arises in extremely rare cases where there is a liability that cannot he recognized because it cannotbe measured reliably The Company does not recognize acontingent liability but discloses its existence in the financial statements.

The company has estimated its contingent liabilities in respect of show cause notices/demand received from government authorities and other in respect of the following:

Income tax demand contested by Company:

There was a search by Income Tax department on the company premises on 07 08.1992. The income tax cases are pending before Settlement Commission for A-Y 1990-91 to 1993-94.

17. Related Party Details

ASSOCIATES

a. Mishm International

b. Roxy Industrial Corporation

c. Mittal Tech

Key Manageulent Personnel (KMP)

a, Sh, Subhash Chander Mittal

b, Sh, Am it Mittal

c, Smt. Shukla Mittal

Relatives of KMP

a. Mohit Mittal

b. Rohil Mtitnl

18. Others

Contingent Liabilities not provided for 2014-15 2013-14

i)Income lax A/y 1994-95 Nil Nil

ii) Income Tax A/y 1995-96 47000/- 47000/-

iii) Income Tax ,Ay 1990-97 150000/- 150000/-

*cases for these years have been decided during 2013-14 for which appeal effect is yet not fiven by department. However we have taken the estimated amount based on these orders, However the company has again gone into aooeals with HAT against these orders..

The company is only in one line of business activity i.e. Bicycle parts, hence the disclosure requirements of the AS-17 on "Segment Reporting" issued by the ICAl are nut applicable.

None of suppliers have come forward with their registration under the MSME Development Act 2006 to the Company, so disclosure requirement can't be given

The company is a listed company from Ahmedabad Stock exchange.

Company acquired the factory land on lease basis from PSIEC, Chd for 99 years.

Material events occurring after the balance sheet date are taken into cognizance.

Prior period and extra-ordinary chances in accounting policies, having material effect on the financial affairs of the company (if any) are disclosed.

Previous year figures have been re-arranged or regrouped wherever necessary to conform to current year figures.

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