Notes to Accounts of Unilex Colours & Chemicals Ltd.

Mar 31, 2025

11. PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is
reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by the best estimate of the likely future outflow of economic benefits
required to settle the obligation at the reporting date.

Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is
made.

12. 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

13. SEGMENT REPORTING

Company is operating under a single segment.

14. LEASE:

As a lessee

Leases where the Lessor effectively retains substantially all the risks and benefits of ownership of the
Leased Asset, are classified as ''Operating Leases". Lease rentals with respect to assets taken on ''Operating
Lease'' are charged to Statement of Profit and Loss on a straight line basis over the lease term. Leases
which effectively transfer to the Company substantially all the risks and benefits incidental to the ownership
of the leased item are classified as ''Finance Lease''. Assets acquired on Finance Lease which substantially
transfer all the risks and rewards of ownership to the Company are capitalized as assets by the Company at
the lower of the fair value and the present value of the minimum lease payment and a liability is created for
an equivalent amount. Lease rentals payable is apportioned between the liability and finance charge so as
to obtain a constant periodic rate of interest on the outstanding liability for each year. Lease rentals in
respect of assets acquired under operating lease are charged to the Profit and Loss Account as incurred.

For Mittal & Associates For and on behalf of Board of Directors

Chartered Accountants UNILEX COLOURS AND CEMICALS LIMITED

Firm Registration no: 106456W

Aditya Sharma PurushottamBrijlal Sharma

Managing Director WholetimeDirector&Chairman

DIN: 00583133 DIN: 01416956

Sourabh Bagaria

P_art_ner Shankarlal Kedarmal Agarwal Gourav Mundra

Membership No. 183850 CFO ^Comp^any ^Secretary

UDIN: 25183850BMKZAW5702 ^M.^N°. ⁵⁷²⁹⁴

Place: Mumbai Place: Mumbai

Date: 29th May, 2025 Date: 29th May, 2025