Notes to Accounts of Valencia Nutrition Ltd.

Mar 31, 2025

k) Provisions and Contingent Liabilities

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 the control of the Company or where any present obligation cannot be measured in terms of future
outflow of resources or where a reliable estimate of the obligation cannot be made.

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying
economic benefits will be required to settle an obligation and in respect of which a reliable estimate can be made.
Provision is not discounted and is determined based on best estimate required to settle the obligation at the
year-end date contingent Assets are not recognized or disclosed in the financial statements.

l) Segment Reporting

The Company is engaged in the business of non-alcoholic nutrition based beverages. The risks and returns of
the Company are predominantly determined by its principal product and the Company''s activities fall within a
single business segment. The company does not have any geographical segment.

m) Earnings Per Share

Basic Earnings per Share (EPS) is computed by dividing the net profit or loss for the year attributable to Equity
Shareholders by the weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares that have changed the number
of equity shares outstanding, without a corresponding change in resources.

Diluted EPS is computed by dividing the net profit or loss for the year attributable to Equity Shareholders by the
weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the result are anti-dilutive.

3. a) Business segment

The Company operates two reportable business segments: non-alcoholic nutrition-based beverages and
perfumes. Accordingly, separate disclosures for each segment have been presented in the Statement of Profit
and Loss.

b) Geographical segments

The company does not have any reportable geographical segments.

4. Deferred tax assets/liabilities (net):

The company has recognized net deferred tax liability arising on account of timing difference of expenses allowed
as per books and income tax and on accumulated losses on prudence, as there are virtual certainty supported
by convincing evidence that sufficient future taxable income will be available against which such deferred tax
liability can be realized.

5. Information on revenue and purchases:

a. The Company gets its products processed through bottling units under two models:

i) Job work model Where the Company sends goods to the bottling unit under the cover of challan, and the Unit
dispatches finished products. Units charge for the ''job work'' in such instances.

ii) Sale & purchase model Under this model, the Company sells raw materials & packing materials to bottling
units, and such units sell finished goods to the Company.

b. Lease

i. The company has not entered into any non-cancellable lease during the year.

ii. Company has taken premises on lease which is an operating lease.

c. All amounts are in Indian Rupees unless otherwise specified therein. Previous year''s figures have been
reclassified, regrouped wherever necessary, to be consistent with the current year''s classification.

1. The Company has only one class of equity shares. Each holder of equity shares
is entitled to one vote per share.

2. The no. of shares have been changed due to right issue & preferential allotment
of equity shares and share warrants

3. There is change in the pattern of shareholding during the year due to right issue
& preferential allotment of equity shares.

4. There are no shares reserved for issue under options.

(v) Other statutory information:

a Title deeds of Immovable Property not held in name of the Company NIL
b The company has not revalued its Property, Plant and Equipment.

c The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

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

e The Company has no relationship with struck off companies

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

g The Company was not a part of any Scheme of Arrangements to be approved by the Competent Authority in
terms of sections 230 to 237 of the Companies Act, 2013.

h The Company has not received any funds 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,

i The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
j The Company does 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)

3. Disclosure of Accounting Treatment:

Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting
Standard has been followed, the fact shall be disclosed in the financial statements, together with the
management''s explanation as to why it believes such alternative treatment is more representative of the true
and fair view of the underlying business transaction.

Notes :

1. Current Ratio has Increased from 1.24 to 72.52 due Increase in current asset like
stock, advances to supplier, fixed deposits and debtors in FY 24-25.

2. In previous year the Debt Equity Ratio was NA. However in current year both debt
and shareholders fund have increased because of fund raising and profit in current
year. The increase in shareholders fund is more than the increase in debt.

3. Debt Service Coverage ratio has increased because of increase in net operating
income.

4. Due to relaunch of products, company has resulted profit in the current financial
year 2024-25, resulting into variations in ratios as reported above.

5. Inventory turnover ratio has increased due to increase in revenue from operations

6. Trade receivable Turnover ratio has increased due to improved revenue from
operations.

7. Trade Payable Turnover ratio has increased due to increase in operations.

8. Net capital Turnover Ratio has decreased due to increase in net working capital in
FY 24-25.

9. Net profit ratio is positive as company has reported profit in FY 2024-25 due to
increase in sales.

10. Since company resulted Profit in FY 24-25 the return on capital employed is Positive
as compared to previous year

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Mar 31, 2024

c. All amounts are in Indian Rupees unless otherwise specified therein. Previous year’s figures have been reclassified, regrouped wherever necessary, to be consistent with the current year’s classification.

1. The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share.

2. There is no fresh issue or buyback of shares during the year.

3. The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share.

4. There is no change in the number of shares outstanding at the beginning and at the end of the year.

5. There is no change in the pattern of shareholding during the year. It is same as the last year.

Note 24 Figures of previous years have been regrouped, rearranged and reclassified wherever necessary to conform the current period''s classification.

Note 25 Contingent liabilities and commitments (to the extent not provided for) Contingent Liabilities

As at 31st March 2024,claims against company not acknowledged as debts in respect of Income tax matter pertaining to AY 2018-19 amounting to Rs.83.07 lakhs. The 1 matter is pending before Commissioner of Income Tax Appeals and the Management expect that its position will not have material adverse effect on Company''s Financial position and result of operations.

There are no Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related

(i) parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are either repayable on demand or without specifying any terms or period of repayment.

(ii) Capital-Work-in Progress (CWIP) / Intangible assets under development (ITAUD) - NIL

(_iii) During the year, the Company has not raised any borrowings from banks or financial institutions on the basis of ^{( )} security of current assets.

(v) Other statutory information :

a Title deeds of Immovable Property not held in name of the Company - NIL

b The company has not revalued its Property, Plant and Equipment.

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

e The Company has no relationship with struck off companies

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

The Company was not a part of any Scheme of Arrangements to be approved by the Competent Authority in ^g terms of sections 230 to 237 of the Companies Act, 2013.

h The Company has not received any funds 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,

i The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company does not have any such transaction which is not recorded in the books of accounts that has been j 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)

Notes :

1 Current Ratio has reduced from 2.01 to 1.16 due decrease in current asset as well as increase in current liabilities in FY 23-24

2 Debt-Equity Ratio has deteriorated as the company has taken Loan from related party and one unrelated party - Abans Finance Private Limited In FY 23-24

3 As there is finance cost or repayment obligation in the current financial year 2023-24 due to long term borrwings

4 Since company is in losses return on equity is NIL

5 Inventory Turnover ratio is the ratio for how much company keep as inventory in proportion to the credit sales . As inventory T/O ratio is decreases it indicates that sales has been reduced keeping the same inventory

6 Trade Receivable T/O ratio means ratio of credit sales to trade receivable, As Trade receivable T/O ratio drastically reduced it is due to change in sales and creditors

⁶ ratio in FY 23-24

_ Trade Payable T/O ratio means ratio of credit purchases to trade payables As T/O ratio drastically reduced it is due to change in credit purchase and creditors ratio

⁷ in FY 23-24

8 Net capital T/o Ratio decreased due to reduction in sales and higher debtors as compared to sales in FY 23-24

9 Net profit ratio is negative as company incurred loss in FY 23-24 due decrease in sales as compared to last year also company incurred more exoenses for expan

sion purpose.

10 Since company incurred loss in FY 23-24 the return on capital employed is negative

1. The above standalone financial results for the year and half year ended 31st March 2024 have been reviewed by the Audit Committee in their meeting held on 30th May 2024 and have been audited by the Statutory Auditors of the company.

2. The Company is operating as a single segment company, engaged in manufacturing of non-alcoholic beverages, and hence there is no separate reportable business segment.

3. The Audited Financial Statements are prepared in accordance with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the rules made thereunder and in the format as prescribed under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial information presented above is extracted from and is harmonized to conform with the Unaudited financial statements.

4. The aforesaid Financial results will be uploaded on the company’s website www.valencianutrition.com and will also be available on the website of BSE Limited i.e. www.bseindia.com for benefit of Shareholders and Investors.

5. The Figures for six months ended 31-March-2024 has been arrived at after deducting figures for the half year ended 30-September-2023 from the figures of Year ended 31-March-2024.

6. Figures for the previous period have been regrouped or rearranged wherever necessary to confirm to current periods financial results.