Notes to Accounts of Vikram Aroma Ltd.

Mar 31, 2025

(a) Assets pledged as Security

Brorowrings are Primarily secured by mortgaged of Current assets, Industrial Unit and and personal guarantee of the directors.

1. Indusrial Unit Situated at Block No.l22/C & 122/D, Survey No. 322 Paiki 4 and 322 Paiki 5, Village Indrad, Chhatral Kadi Road, Dist. Mehsana.

(b) Capitalised Borrowing Cost

Borrowing Cost Capitalised on Property, Plant and Equipment during the period ended March 31, 2025 Rs.Nil Lakhs (PY. 2023-24 Rs.Nil Lakhs )

(c) Contractual Obligations

Refer Note.34 for disclosure of Contractual Commitments for the acquisition of Property, Plant & Equipment.

(d) During the year there has been no change of 10% or more in the aggregate of the net carrying value of assets on account of revaluation of assets in respect of Property, Plant & Equipments.

(e) Title deeds of immovable property other than property taken on lease by duly executed lease agreement are held in the name of the company.

(a) Inventory of Raw Material includes material in transit- as on 31-03-2025 of Rs. 31.71 Lakhs (as on 31-03-2024 Rs. Nil Lakhs & as on 01-04-2023 Rs. Nil Lakhs)

(b) Inventory of Finished Goods Includes Goods in Transit- as on 31-03-2025 Rs. Nil Lakhs (as on 31-03-2024 Rs. 55.71 Lakhs & as on 01-04-2023 Rs. 34.53 Lakhs)

(c) Inventories pledged as Security with bank for borrowing as on 31-03-2025 of Rs. 535.44 Lakhs (as on 31-03-2024 of Rs. 560.32 Lakhs & as on 01-04-2023 Rs. 375.99 Lakhs) (Refer Note 41)

(i) The general credit period in respective on Domestic sale ranges between 30-90 days and for Export it ranges between 30-90 days, by and large company is not charging any interest on late payment.

(ii) Credit risk is managed at the operational segmental level. The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.

(iii) Concentration risk considers significant exposures relating to industry, counterparty, geography, currency etc. The concentration of credit risk is not significant as the customer base is large and diversified.

*Note: Refer Note No.39(I) for details of movement in Expected Credit Loss.

(a) 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 one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholder.

The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.

No Shares has been reserved for issue under options or contracts/commitments for the shares/disinvestment.

1. Pursuant to the Scheme of Arrangement in nature of Demerger approved by NCLT via order dated April 26, 2024, the company (Vikram Aroma Limited) has allotted equity shares to the shareholders of Vikram Thermo (India) Limited in the ratio of 1:10 i.e 1 Equity share for every 10 Equity shares held based on the effective date of May 04, 2024. The said equity shares were alloted on May 23, 2024. (Refer note 2(i) & 38).

(e) In the Period of five years immediately preceding 31st March,2025

Pursuant to the scheme of Arrangement in nature of Demerger between Vikram Thermo Ltd. & Vikram Aroma Ltd as approved by the NCLT via order dated 26/04/2024, a total of 31,35,785 equity shares of Vikram Aroma Limited has been alloted to the Shareholders of Vikram Thermo Limited without cash consideration (Refer note 2 & 38).

1. Capital reserve is created on receipt of excess of net assets against issuance of Share having face value of Rs.10 each on account of scheme of Arrangement in nature of Demerger between Vikram Thermo Ltd. & Vikram Aroma Ltd. as approved by the Hon''ble NCLT via order dated 26/04/2024 (Refer note No. 2 & 38).

2. The equity share capital of Rs.700/- has Canceled and the same has been been transferred to capital reserve pursuant to the scheme of Arrangement in nature of Demerger between Vikram Thermo Ltd. & Vikram Aroma Ltd. as approved by the hon''ble NCLT via order dated 26/04/2024 (Refer note No. 2 & 38).

35 Segment Reporting

The Company''s management, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and accordingly, based on the principles for determination of segments given in Indian Accounting Standard 108 "Operating Segments " and in the opinion of management, the Company is primarily engaged in the business of manufacturing of "Chemicals". All other activities of the Company revolve around the main business and as such there is no separate reportable business segment.

The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either directly (i.e. as prices ) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)

There were no transfers between the levels during the year Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted pricies in the open market and rates available in secondary market respectively. The valuation method applied for various financial assets and liabilties are as follows -

1. Quoted price in the primary market (NAV) considered for the fair valuation of the current investment i.e Mutual fund. Gain / (loss) on fair valauation is recognised in profit and loss.

2. The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their short-term nature.

38 Transition to Ind-AS

These financial statements, for the year ended March 31, 2025, are the first financials of the Company being prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2024, the Company has prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013 read together with relevant rules of the Companies (Accounts) Rules, 2020 (Indian GAAP). Therefore, comparative information is reclassified / remeasured so as to comply with Ind AS.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on March 31, 2025, together with the comparative year data as at and for the year ended March 31, 2024, as described in the summary of significant accounting policies. The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2023 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s Balance sheet, Statement of Profit and Loss, is set out here-in-after.

However, this principle is subject to the certain mandatory exceptions and optional exemptions availed by the Company in line with principles of Ind AS 101 as detailed below:

38.1 Exemptions and exceptions availed I Mandatory Exceptions

1 Estimates

The estimates as at April 1, 2023 is consistent with those made for the same dates in accordance with the Indian GAAP (after adjustments to reflect any differences in accounting policies).

2 Classification and measurement of financial assets

Ind AS 101 provides exemptions to certain classification and measurement requirements of financial assets under Ind AS 109, where these are impracticable to implement. Classification and measurement is done on the basis of facts and circumstances existing as on the transition date. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the transition date.

3 De-recognition of financial assets and liabilities:

The Company has applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

1 Effects on account of Scheme of arrangement in nature of demerger:

The scheme of Arrangement in nature of Demerger between Vikram Thermo Ltd. (Demerged company) & Vikram Aroma Ltd(Resulting company) has been approved by the NCLT via order dated 26/04/2024, whereby the whole of Aromatic chemical-Diphenyl oxide business of the Demerged company is transferred to the resulting company. The appointed date of the scheme is July 01, 2022. As, per the scheme, all the Assets & Liabilities of the above mentioned business are transferred to the resulting company in lieu of which the Shareholders of the demerged company are directly alloted the shares of the resulting company.

Therefore, the effect of restatement has been given in the books of accounts on account of demerger from appointed date. Equity share capital pending allotment Rs. 313.58 Lakhs, Capital reserve of Rs. 2202.51 lakhs, cumulative effect of Profit before tax of Rs. 122.00 lakhs & 189.88 Lakhs till 31/03/2023 & 31/33/2024 respectively, Other comprehensive income Rs. 0.89 lakhs & all the respective Assets & Liabilities of the demerged business has been recognised.

2 Deferred Tax Adjustments:

Tax adjustments include deferrred tax impact on account of differences between previous GAAP and Ind AS which mainly includes Deferred tax liability on difference in respect of depriciation on as per Income Tax Act & Companies Act on PPE and Intangible Assets 39 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

I Credit Risk

II Liquidity Risk

III Market Risk

Risk Management Framework

The Company''s risk management is governed by policies and approved by the board of directors. Company identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

I Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company maintain its cash and cash equivalents and bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the company''s experience for customers.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if collection is doubtful. The Company also calculates the expected credit loss (ECL) for non-collection of receivables.The company has assessed that credit risk on Other Financial Assets, Cash & Cash Equivalents, Other bank balance and other Financial Assets, which are insignificant based on the empirical data.

The provision for doubtful debts including ECL allowances for non-collection of receivables and delay in collection, on a combined basis, was Rs. 22.77 Lakhs as at March 31, 2025, Rs. 25.48 Lakhs as at March 31, 2024 & Rs. 29.13 Lakhs as at April 01, 2023. The movement in allowances for doubtful accounts comprising provision for both non-collection of receivables and delay in collection is as follows:

II Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assesment of maturity profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity ratios are considered while reviewing the liquidity position. The company has undrawn borrowing facilities to the extent of Rs.99.76 Lakhs as at 31/03/2025 (as at 31/03/2024 Rs Nil Lakhs & as at 01/04/2023 Rs. Nil Lakhs). i) Exposure to Liquid Risk:

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at 31 March 2025. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks: a) Currency Risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of payables and receivables in foreign currency. Company is exposed to currency risk on account of payables and receivables in foreign currency.

Company does not use derivative financial instruments for trading or speculative purposes.

b) Interest Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

The company does not have any exposure to price risk arises from investments in equity shares of other companies as of 31st March 2025, Company has Rs.Nil Lakhs (PY. Rs.Nil Lakhs) exposure on security price risks.

40 Capital management

The Company''s capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance.

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

44 Additional Regulatory Information (Non Ind AS)

The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the extent applicable:

(a) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(b) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(c) No proceedings have been initiated or pending against the company for holding any benami property under the Benami transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.

(d) During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation in respect of Property, Plant & Equipment and intangible assets.

(e) There are no intangible assets under development in the Company during the current reporting period.

(f) The company has not entered in to any transaction with companies struck off under section 248 of the Companies Act,2013.

(g) The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at the balance sheet date.

(h) The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

45 During the current year ended 31 March 2025, the Hob''ble National Company Law Tribunal, Ahmedabad Bench vide its order dated 04 May 2024 (''NCLT order'') has approved the Scheme of Arrangement (''the Scheme'') Involving transfer by way of demerger of business of Aromatic Chemical unit of M/s Vikram Themo (India) Limited (''Demerged company'') to the Company (''Resulting company''), pursuant to section 230-232 and other relevant provisions of the Companies Act, 2013 read with Rules made thereunder, with the appointed date as 01 July 2022. Pursuant to such scheme, the total assets and liabilities pertaining to the Aromatic Chemical undertaking as provided in Note 38, have been transferred to the resulting company, from appointed date as 01 July 2022 and share holders of demerged company has been alloted 1 equity share of Rs.10 each of M/s Vikram Aroma Ltd against every 10 shares of Rs.10 each held by the share holders of Demerged company.

Considering the demerged company and the resulting company are controlled by the same set of shareholders on appointed date, the above transaction has been accounted for in accordance with "Pooling of Interest method" laid down under Appendix C (Business Combinations of entities under Common Control), of India Accounting Standard (IND AS 103)- Business combination. As per the "pooling of Interest method referred above, the assets and liabilities of the Aromatic Chemical undertaking have been recorded in the books of the Company at their carrying amount, as at the appointed date and no adjustments have been made to reflect fair values (of tangible / intangible assets). Also, as required by the Appendix C to Ind AS 103, there is no recognition of any new asset (tangible/intangible) or liability arising from this business combination irrespective of their market / fair value as on the appointed date. The retained earnings of the Aromatic Chemical undertaking have been combined with the retained earnings of the Company. The difference between the consideration paid and the net assets acquired as adjusted by the retained earnings amount, has been adjusted in the "Capital Reserve" as required by Appendix C to Ind AS 103 irrespective of the fair value of the net assets / liabilities acquired.

46 The financial statement are approved by the Audit Committee as at its meeting on 26th May,2025 and by the Board of Directors on 26th May,2025.

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Mar 31, 2024

^m* Eroyjsion, Contingent Liabilities and Contingent Assets :

A provision is recognized when there is a present obligation as a result of past event and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can
be made.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but
probably will not require an outflow of resources.

Contingent Assets are neither recognized nor disclosed in the financial statements.
ⁿ'' Goods and Service Tax (GST1

GST credit on materials purchased for production / service availed for production / input service are taken
into account at the time of purchase and GST credit on purchase of capital items wherever applicable are
taken into account as and when the assets are acquired.

GST credits so taken are utilized for payment of GST on goods sold. The GST credits so taken are utilized for
payment of GST on goods sold. The unutilized GST credit is carried forward in the books.

o. accounting policies not specifically referred to otherwise are consistent with generally accepted accounting
principles.

14. The Company has not received information from vendors regarding their status under the Micro Small &
Medium Enterprise Development Act. 2006 and hence disclosure relating to amount unpaid as at year end
together with interest paid/payable under this act has been not given.

15, Additional Regulation disclosures (other than Accounting Standards)

The disclosures required by amendment to Division I of Schedule til of the Companies Act, 2013, are given
only to the extent applicable:

a. The company has been not declared as willful defaulter by Reserve Bank of India till 31/03/2024.

b. The company does not have any transactions with companies struck off under section 248 of the
Companies Act, 2013.

c. There is not charge which is pending for satisfaction with registrar of companies beyond the statutory
period.

d. There were no transactions that were not recorded in books of accounts and have been surrendered or
disclosed as income during the year in the tax assessments under the income Tax Act, 1961.

e. During the year under Consideration the company has not traded or invested in crypto currency or
virtual currency.

f. No proceedings have been initiated or pending against the company for holding any benami property
under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.''

16. Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable
with those of current year.

(*( AHMEl&BAD