Notes to Accounts of Vital Chemtech Ltd.

Mar 31, 2025

12) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result
of past events and it is probable that there will be an outflow of resources. There are no contingent liabilities as on March 31,2025.

13) Related Party Disclosure

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are
given in notes of accounts.

14) Accounting for Leases

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers substantially all the risk and
rewards incidental to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

i. Operating Lease: - Rental payables under the operating lease are charged to the Standalone Statement of Profit and Loss on a
Straight-line basis over the term of the relevant lease.

ii. Finance Lease: - Finance lease are capitalized at the commencement of the lease, at the lower of the fair value of the property
or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a
finance lease obligation. Lease payments are apportioned between finance charges and the reduction of the lease obligation so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against the
income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to others.

15) Cashflow

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non¬
cash nature and any deferrals of past or future cash receipts and payments. The cash flows from regular operating, investing and
financing activities ofthe company are segregated.

16) Earnings Per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard 20, “Earnings per
Share”. Basic EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by the
weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the Net Profit or
Loss attributable to the Equity Shareholders for the year by the weighted average number of Equity Shares outstanding during the
year as adjusted for the effects of all potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events such a Bonus Issue, Bonus
elements in right issue, share splits, and reverse share split (consolidation of shares) that have changed the number of Equity
Shares outstanding, without a corresponding change in resources.

17) Discontinuing Operations

During the year the company has not discontinued any of its operations.

18) Event after Reporting Date

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of reporting period, the
impact of such events is adjusted within the standalone financial statements. Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.

On May 16, 2025, a pipeline gasket burst occurred at the Company’s P2S5 plant located at Plot No. D/3/151 & 158, GIDC, Dahej
III, Dist. Bharuch, Gujarat. The incident resulted no damage to inventories and there is no significant disruption to operations but
the worker sustained injuries and are were received proper medical care and support. The financial impact is not material to the
financial statements, and the event does not affect the Company’s ability to continue as a going concern.

All the events occurring after the Balance Sheet date up to the date of the approval of the standalone financial statement of the
Company by the board of directors on May 30, 2025 have been considered, disclosed and adjusted, wherever applicable, as per
the requirement of Accounting Standards.

19) The previous year’s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in
relation to the amounts and other disclosures relating to the current financial year.

20) Balances of Trade Payables, Trade Receivable, Unsecured Loans and Loans and Advances are subject to confirmations and
reconciliation if any, by the respective parties.

21) The account balances existing at the beginning of the period have been relied upon the audited financial statements.

22) Amounts are in lakhs except units are in actual numbers wherever required considered accordingly for respective
computations.

23) Segment Reporting

The company is dealing in primary segment i.e. manufacturing of all kinds of chemicals and secondary segment of trading.
Company does not have distinguishable component of an enterprise that is engaged in providing an individual product or service
and that is subject to risks and returns that are different from those of other business segment.

24) Statement of Management

i. The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary
courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and
not in excess of amount reasonably necessary.

ii. Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the accounts thereon, are
drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the
statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

28) Notes forming part of accounts in relation to Micro and small enterprise

Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the
auditors have relied, the disclosure requirements of Schedule III to the Companies Act, 2013 with regard to the payments
made/due to Micro and small Enterprises are given below:

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The
above information is compiled based on the extent of responses received by the company from its suppliers.

29) Defined Contribution Plan: -

As per Accounting Standard 15 “Employee Benefits”, the disclosures as defined in the Accounting Standard are given below:
Contribution to Defined Contribution Plans, recognized as expenses for the year is as under:

30) Tittle deeds of immovable property: -

Tittle deeds of immovable property have not been held in the name of promoter, director, or relative of promoter/ director or
employee of promoters / director of the company, hence same are held in the name of the company.

31) Revaluation of property, plants and equipment’s: -

The Company has not revalued its Property, Plant and Equipment for the current year.

32) Loans or Advances in the nature of loans: -

No Loans or Advances in loans are granted to promoters, directors, KMPs and the related parties except subsidiaries (as defined
under Companies Act, 2013,) either severally or j ointly with any other person.

33) Intangible assets under development: -

There are no Intangible assets under development in the current year.

34) Details of Benami property held: -

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the rules there made
under. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the
Benami Transaction (prohibition) act, 1988 and rules made there under.

35) Borrowings from bank or financial institution on the basis of current assets :-

The Company has borrowings from banks on the basis of security of current assets. The Quaterly returns or statements of current
assets filed by the Company with banks are not fully aligned with the corresponding figures as per the books of accounts of the
Company.

36) Willful Defaulter: -

The company has not been declared as willful defaulter by any bank or financial institution or government or government
authority during the year reporting period.

37) Relationship with struck off companies: -

The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of companies
act, 1956.

38) Registration of charges or satisfaction with Registrar of companies: -

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

39) Compliance with number of layers of companies: -

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company’s act read with
companies (restriction on number of layers) Rules, 2017.

40) Compliance with approved scheme of Arrangements: -

Company does not have made any arrangements in terms of section 230 to 237 of company’s act 2013, and hence there is no
deviation to be disclosed.

41) Utilization of borrowed funds and share premium: -

As on March 31, 2025, there is no unutilized amount in respect of any issue of securities and long-term borrowing from banks and
financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised

42) Corporate social responsibility (CSR).

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment
sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development projects. A
CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these
activities which are specified in Schedule VII of the Companies Act, 2013:

43) Details of crypto currency and virtual currency.

The company has not traded or invested in crypto currency or virtual currency during the financial year.

44)

i. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), except subsidiaries,
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries .

ii. No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Parties or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

As per our Report of Even Date attached

For, Abhishek Kumar & Associates For & on behalf of Board of Directors

Chartered Accountants Vital Chemtech Limited

FRN: 130052W

Sd/- Sd/-

Sd/-

VIPUL BHATT JAY BHATT

CA ABHISHEK AGARWAL Chairman & Managing Director Whole Time Director

Proprietor DIN: 06716658 DIN: 09363173

Membership No. 132305

Sd/-

KETKIAJAY OZA
Chief Financial Officer

ATULABEN

Place : Ahmedabad Place : Ahmedabad JAGDISHBHAI PATEL

Date : May 30,2025 Date : May 30,2025 Company Secretary

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Mar 31, 2024

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

30) Defined Contribution Plan :-

As per Accounting Standard 15"Employee Benefits” the disclosures as defined in the Accounting Standard are given below:

31) Tittle deeds of immovable property: -

Tittle deeds of immovable property have not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

32) Revaluation of property, plants and equipment''s: -

The Company has not revalued its Property, Plant and Equipment for the current year.

33) Intangible assets under development: -

There are no Intangible assets under development in the current year.

34) Details of Benami property held: -

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the rules there made under. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.

35) Borrowings from bank or financial institution on the basis of current assets:-

The Company has borrowings from banks on the basis of security of current assets.The quarterly returns or statements of current

assets filed by the Company with banks are in agreement with the books of accounts. -

36) Wilful Defaulter: -

The company has not been declared as wilful defaulter by any bank or financial institution or government or government authority during the year reporting period.

37) Relationship with struck off companies: -

The company does not have transactions with the struck off under section 248 of companies act, 2013 or section 560 of companies act, 1956.

38) Registration of charges or satisfaction with Registrar of companies: -

The company does not have any charges or satisfaction, which is yet to be reg istered with ROC beyond the statutory period.

39) Compliance with number of layers of companies: -

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

40) Compliance with approved scheme of Arrangements: -

Company does not have made any arrangements in terms of section 230 to 237 of company''s act 2013, and hence there is no deviation to be disclosed.

41) Utilization of borrowed funds and share premium: -

As on March 31,2024, there is no unutilized amount in respect of any issue of securities and long-term borrowing from banks and financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

42) Corporate social responsibility (CSR).

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

43) Details of crypto currency and virtual currency.

The company has not traded or invested in crypto currency or virtual currency during the financial year.

44)

i. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries”), except one of subsidiaries, with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries .

ii. No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

---

Mar 31, 2023

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

Defined Contribution Plan :-

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Contribution to Defined Contribution Plans, recognized as expenses	for the year
is as under:	(Rs in Lakhs)
Particulars 2022-23	2021-22
Employer''s Contribution to Provident Fund 6.82	6.89

Tittle deeds of immovable property :-

Tittle deeds of immovable property have not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

Revaluation of property, plants and equipment''s :-

The Company has not revalued its Property, Plant and Equipment for the current year.

33) Loans or Advances in the nature of loans :-

No Loans or Advances in loans are granted to promoters, directors, KMPs and the related parties except one of subsidiaries (as defined under Companies Act, 2013,) either severally or jointly with any other person.

34) Intangible assets under development :-

There are no Intangible assets under development in the current year.

35) Details of Benami property held :-

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the rules there made under. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.

36) Borrowings from bank or financial institution on the basis of current assets :-

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts. -

37) Wilful Defaulter :-

The company has not been declared as wilful defaulter by any bank or financial insfitufion or government or government authority during the year reporting period.

38) Relationship with struck off companies :-

The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of companies act, 1956.

39) Registration of charges or satisfaction with Registrar of companies :-

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

40) Compliance with number of layers of companies :-

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

41) Compliance with approved scheme of Arrangements :-

Company does not have made any arrangements in terms of section 230 to 237 of company''s act 2013, and hence there is no deviation to be disclosed.

42) Utilization of borrowed funds and share premium :-

As on March 31, 2023, there is no unutilized amount in respect of any issue of securities and long-term borrowing from banks and financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

43) Corporate social responsibility (CSR).

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

Particulars	2022-23	2021-22
Contribution for Corporate Social Responsibility	21.25	Nil

44) Details of crypto currency and virtual currency.

The company has not traded or invested in crypto currency or virtual currency during the financial year.

45)

i. No funds have been advanced or loaned or invested (either from

borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), except one of subsidiaries, with the

understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries .

ii. No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46) Company had proposed the public issue of 6399600 equity shares of face value of Rs.10 each of Vital Chemtech Limited ("Vital" or the "company" or the "issuer") for cash at a price of Rs.101 per equity share including a share premium of Rs.91 per equity share (the "issue price") aggregating to 6463.60 Lakhs.

47) The company received a legal notice from Advocate Vijay P Kadam through Registered AD, concerning a Rate Difference Claim dated 06/10/2021 on behalf of Adifab Industries Private Limited. The material was supplied by us on 31/07/2021. The company did not receive payment on time, so it raised a debit note for interest on the delay in payment as on 01/04/2021. The company has already filed a claim at MSME Gandhinagar for our outstanding dues.

50) Accounting for Preliminary Expenses (AS 26)

Preliminary Expenses in view of Accounting Standard - 26 to be write off wholly as at the end of the year/period, the Company has only written-off 20% of total preliminary expesnes, during the year as reported. -