Notes to Accounts of ZR2 Bioenergy Ltd.

Mar 31, 2025

Rights, Preferences and Restrictions

- The Company has only one class of equity shares having a face value of K1 per share. Each holder of Equity Share is entitled to one vote per share.

- No class of shares have been issued as bonus shares or for consideration other than cash by the Company during the period of five years immediately preceding the Current Period / Year end.

- No class of shares have been bought back by the Company during the period of five years immediately preceding the Current Year end.

The description of the nature and purpose of each reserve within equity is as follows:

Securities Premium

Securities Premium Reserve is created due to premium on issue of shares. This reserve is utilised in accordance with the provisions of the Companies Act.

Capital Reserve

There has been no movement in the capital reserve during the year. Opening balance from previous year has been brought forward based on activity done from the previous management.

Disclosure relating to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED'') is based on the information available with the Company: This has been relied upon by the auditors. Under the Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED'') which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises (''MSME''). On the basis or the information and records available with the management, there are no outstanding dues to the Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 except as set out in the following disclosures.

25 Assets and Liabilities Relating to Employee Benefits See accounting policy in Note 1.(h)

The management of the Company is of the view that none of the employees were eligible in respect of which the Company was required to make contribution as per the provisions relating to the Payment of Gratuity and accordingly provision for gratuity was not required to be made. However, if the Company is required to make payment of gratuity on happening of any event / incident due to which the provisions relating to payment of gratuity becomes applicable to the Company, the same will be accounted as and when incurred.

26 Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity Shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity Shares Preference Shares CCDs Warrants outstanding during the year.

Terms and Conditions of Transactions with Related Parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. There have been no guarantees provided or received for any related party receivables or payables. No balances in respect of the related parties has been provided for written off / written back, except what is stated above.

Related party relationship is as identified by the management and relied upon by the auditors.

29 Fair Value Measurement Financial Instruments

The details of significant accounting policies, including crieteria for recognition, the basis of measurement and the basis on which income and expenditure are recognised, in respect of each class of Financial Asset, Financial Liability and Equity Instrument are disclosed in Note 1.

Calculation of Fair Values

The Fair Values of the Financial Assets and Liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the Fair Values of Financial Instruments:

a Financial Assets: Cash and Cash Equivalents, Trade Receivables, Other Financial Assets have Fair Values that approximate to their carrying amounts due to their short-term nature

b Financial Liabilities: The Fair Value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans)

Fair Value Hierarchy

The Company uses the following hirerarchy for determining and / or disclosing the Fair Value of Financial Instruments by Valuation Techniques:

The categories used are as follows:

Level 1: It includes Financial Instruments measured using quoted prices and the Mutual Funds are measured using the closing Net Asset Value (NAV)

Level 2: The Fair Value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to Fair Value an instrument are observable, the instrument is included in level 2

Level 3: Inputs for the Asset or Liability that are not based on observable market data (unobservable inputs)

30 Financial Risk Management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

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

a. Credit Risk

b. Liquidity Risk

c. Market Risk

a Credit Risk

Credit Risk arises from the possibility that the value of receivables or other financial assets of the Company may be impaired because counterparties cannot meet their payment or other performance obligations. To manage Credit Risks from Trade Receivables other than Related Party, the credit managers from Order to Cash department of the Company regularly analyse customer''s receivables, overdue and payment behaviors. Some of these receivables are collateralised and the same is used according to conditions. These could include advance payments, security deposits, post-dated cheques etc. Credit limits for this trade receivables are evaluated and set in line with Company''s internal guidelines. There is no significant concentration of default risk."

Credit Risks from financial transactions are managed independently by Finance department. For banks and financial institutions, the Company has policies and operating guidelines in place to ensure that Financial Instrument transactions are only entered into with high quality banks and financial institutions. The Company had no other Financial Instrument that represents a significant concentration of Credit Risk.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in Credit Risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in Credit Risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in statement of Profit & Loss.

Credit Risk is Managed at Company Level

For other Financial Assets, the Company assesses and manages Credit Risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of Financial Instruments with different characteristics.

The Company considers whether there has been a significant increase in Cedit Risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system.

A default on a Financial Asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, no additional provision has been considered necessary in respect of trade receivables more than 90 days for the 31^st March 2025, since the management has taken suitable measures to recover the said dues and is hopeful of recovery in due course of time.

The Company maintains exposure in Cash and Cash Equivalents, Deposits with Banks, Investments, and Other Financial Assets. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company. The maximum exposure to Credit Risk at the reporting date is the carrying value of each class of Financial Assets. The Company believes that the current value of trade receivables reflects the Fair Value / Recoverable Values.

b Liquidity Risk

Liquidity Risk is the riskthatthe Companywill 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. Due to the dynamic nature of underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecast of Company''s liquidity position (comprising the undrawn borrowing facilities below) and Cash and Cash Equivalents on the basis of expected cash flows. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies 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.

Maturities of Financial Liabilities

The tables below analyse the company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities for:

All non-derivative Financial Liabilities, and the amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

c Market Risk

Market Risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of Financial Instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and market value of its investments. Thus the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Capital Management & Risk Management

The Company''s objectives when managing capital are to: 1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and 2. Maintain an optimal capital structure to reduce the cost of capital.

Notes:

1. Current Ratio = Current Assets / Current Liabilities

2. Debt Equity Ratio = Total Debt / Total Equity

3. Debt Service Coverage Ratio = Earnings before Interest and Tax / Interest Expense Principal Repayments made during the year for long term loans

4. Return on Equity = Profit After Tax / Net Worth

5. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventories

6. Trade Receivables Turnover Ratio = Revenue from Operations / Trade Receivables

7. Trade Payables Turnover Ratio = Credit Purchases / Trade Payables

8. Net Capital Turnover Ratio = Revenue from Operations / Net Working Capital

9. Profit Ratio = Net Working Capital / Revenue from Operations

10. Return on Capital Employed = Net Profit After Tax Deferred Tax Expense / (Income) Finance Cost (-) Other Income from Cash & Other Marketable Securities / Capital Employed

11. Return on Investment = Net Profit After Tax / Total Investment

32 Additional Regulatory Disclosures As Per Schedule III Of Companies Act, 2013

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

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

b. The Company does not have any transactions with companies which are struck off

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

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

e. The Company has 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)

i. 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

ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries"

f. The Company has 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:

i. 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

ii. Provide any guarantee, security or the like on behalf of the ultimate beneficiaries."

g. 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.

h. The Company is not declared willful defaulter by any bank or financial institution or lender during the year.

i. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at Balance Sheet date.

33 Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

The Company, in respect of financial year commencing on or after the 1^st April, 2024, has used such accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year except for during 1^st April, 2024 to 25^th September, 2024 for all transactions recorded in the software. Further, during the course of our audit, the Company did not come across any instance of the audit trail feature being tampered with, and the audit trail has been preserved by the Company as per the statutory requirements for record retention, in respect of such accounting software''s for which the audit trail feature was enabled and operating.

34 Events Occurring After the Reporting Period

The Company evaluates events and transactions that occur subsequent to the Balance Sheet date but prior to the approval of Financial Statements to determine the necessity for recognition and / or reporting of subsequent events and transactions in the financial statements.

35 Certain Financial Assets and Financial Liabilities are subject to formal confirmations and reconciliations, if any. The management, however, is confident that the impact whereof for the year on the Financial Statements will not be material.

36 Previous year figures have been re-grouped / re-classified wherever necessary to conform current years'' classification.

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Mar 31, 2024

k) Provisions, Contingent Liabilities and Contingent Assets

The Company recognises a provision when it has a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits at the time of settlement and a reliable estimate can be made of the amount of the obligation. The provisions are measured at the best estimate of the amounts required to settle the present obligation as at the balance sheet date and are not discounted to their present values.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more future uncertain events which are not wholly or substantially within the control of the Company or a present obligation that arises from the past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

When demand notices are issued by the Government Authorities and demand is disputed by the company and it is probable that the company will not be required to settle/pay such demands then these are classified as disputed obligations.

Contingent Assets, if any, are not recognised in the financial statements. If it becomes certain that inflow of economic benefit will arise then such asset and the relative income are recognised in financial statements.

l) Current/Non-Current Classifications:

The Company presents assets and liabilities in the balance sheet on the basis of their classifications into current and non-current.

Assets:

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Liabilities:

A liability is treated as current when it is:

• Expected to be settled in normal operating cycle

• Held primarily for the purpose of trading

• Due to be settled within twelve months after the reporting period

• No unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Financial Instruments, Financial Assets, Financial Liabilities, Investments and Equity Instruments

The financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities.

A. Financial Assets:

Initial Recognition:

Financial Assets include Investments, Security Deposits, Cash and Cash Equivalents and eligible current and noncurrent assets. The financial assets are initially recognized at the transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being value at fair value through the Statement of Profit and Loss.

Subsequent Measurement:

The subsequent measurement of financial assets depends upon the initial classification of financial assets. For the purpose of subsequent measurement, financial assets are classified as under:

i. Financial Assets at Amortized Cost where the financial assets are held solely for collection of cash

flows and contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

ii. Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise.

Security Deposits, Loans and Advances, Cash and Cash Equivalents where reliable data for fair value is not available then such eligible current and non-current assets are classified for measurement at amortized cost..

Impairment:

If the recoverable amount of an asset (or cash-generating unit/Fixed Assets) is estimated to be less than its carrying amount, the carrying amount of the asset (or cashgenerating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a re-valued amount if any, in which case the impairment loss is treated as a revaluation decrease.

Financial assets, other than those at Fair Value through Profit and Loss (FVTPL), are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

B. Financial Liabilities:

Financial liabilities include short-term loans and borrowings, trade payables, eligible current liabilities. The borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled and on expiry of the terms.

n) Fair Value Measurement:

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• I n the principal market for the asset or liability, or in the

absence of a principal market, in the most advantageous market for the asset or liability

• The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a nonfinancial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

o) Cash and Cash Equivalents - For the Purpose of Cash Flow Statements:

Cash and cash equivalent in the balance sheet comprise cash at banks and in hand and short-term deposits, which are subject to an insignificant risk of changes in value.

p) Operating Cycle:

Based on the activities of the company and normal time between incurring of liabilities and their settlement in cash or cash equivalents and acquisition/right to assets and their realization in cash or cash equivalents, the company has considered its operating cycle as 12 months for the purpose of classification of its liabilities and assets as current and non-current.

c) Financial Instruments and Related Disclosures:

Financial Risk Management:

The company activities are exposed various financial risks: credit risk, liquidity risk and other price risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

I. Credit Risk:

Loans & Advances:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss to the Company. The maximum exposure to the credit risk as at the reporting date is primarily from inter corporate deposits. Inter corporate deposits are unsecured and are subject to counterparty default regarding repayment of deposits. Financial assets are written off when there are no reasonable expectations of recovery. The Company categorizes a loan or receivable for write off when a debtor fails to make contractual payments greater than one year past due Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

Other Financial Assets:

Credit risk relating to cash and cash equivalents and interest accrued on bank deposits, is considered negligible since the counterparties are banks which are majorly owned by Government of India and are have oversight of Reserve Bank of India.

The Company considers the credit quality of term deposits with banks to be good and the company reviews these banking relationships on an ongoing basis.

The Company considers all other financial assets as at the balance sheet dates to be of good credit quality.

II. Liquidity Risk:

The company''s principal sources of liquidity are from, Cash and Cash Equivalents. The Short-term liquidity requirements consist mainly of Expense Payables, Employee Dues, Servicing of Interest on Short Term Borrowings and other payments arising during the normal course of business.

III. Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments. The Company is mainly exposed to the price risk due to its investments in equity instruments recognised at FVTPL. As at 31st March, 2024, the carrying value of such equity instruments amounts to Rs.850/-. The Details of such investments in equity instruments are given in Note 4. The price risk arises due to uncertainties about the future market values of these investments.

The Company is mainly exposed to change in market rates of its investments in equity instruments recognised at FVTPL.

d) In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, claims receivable against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated in the financial statements at the value which is most probably expected to be realized.

e) All other balances of creditors and loans and advances are subject to confirmation and subsequent reconciliation, if any.

f) Going Concern:

The financial statements of the company are prepared on a going concern basis in spite of its main business operation has been suspended and not resumed thenafter. The company has incurred losses in past years. The management had decided to conduct a detailed study to explore various avenues for reviving its business operations. The Management is of the opinion that company will able to revive the business. However, from last financial year, company has started business operation via trading of goods.

g) The outbreak of COVID-19 pandemic across the globe and in India led to nation-wide lockdown and subsequent restrictions impacting the business operations of the company for some time in the last two years. The management of the company has assessed the impact of COVID-19 pandemic and subsequent lockdown/restrictions on its business activities including effect of fluctuations in foreign exchange rates based on internal and external information, general economic trend in the county and the probable impact of government measures to revive the economy and busines activities. As per management''s current assessment, the outbreak of COVID-19 pandemic and subsequent lockdown/restrictions had no significant impact on the carrying values of current and non-current assets and liabilities as at the reporting date of the financial statements and company has been able to resume business operations at normal levels and hence the reported amounts of assets and liabilities required no adjustments in the carrying value. Based on the continuous assessment of the impact of COVID-19 pandemic on the business of the company, the company expects to realise the value of assets at which they have been stated in the financial statements and settle liabilities at values at which they have been stated in the financial statement. The management of the company will continue to assess the impact of health pandemic and its recurring waves as and when they arise on its business activities and will reassess the carrying values of its current and non-current assets and liabilities whenever there is possibility of significant impact on the carrying value. The impact of health pandemic and its subsequent waves, on the overall economic environment being uncertain, may affect the underlying assumptions and estimates used to prepare Company''s financial statements, which may differ from that considered as at the date of approval of these financial statements..

h) The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise registered under the applicable category as per the provisions of the Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the confirmations received by the company upto the date of the financial statements and accordingly other suppliers are classified as Non-MSME Suppliers irrespective of their status as per the provisions of the Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006)..

(b) During the year, 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, whether, 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 provide any guarantee, any security or the like on behalf of the Ultimate Beneficiaries.

k) Relationship with Struck off companies:

The company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the current year and in the previous year.

l) The Financial Statements were authorized for issue by the Board of Directors on 24th May, 2024.

m) The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year. The Paises are rounded up to the nearest of rupee. The figures wherever shown in bracket represent deductions.

SIGNATURES TO NOTES ''1'' TO ''25'' GUJCHEM DISTILLERS INDIA LIMITED

FOR, S.N. SHAH & ASSOCIATES, SAGAR SAMIR SHAH VIRAJ SAMIRBHAI SHAH

CHARTERED ACCOUNTANTS, CHAIRMAN AND DIRECTOR DIRECTOR

FRN: 109782W DIN: 03082957 DIN: 07889459

PRIYAM SHAH SAMIR ROHITBHAI SHAH SANGEETA AMIT KHYANI

PARTNER CHIEF FINANCIAL OFFICER COMPANY SECRETARY

M. NO. : 144892 MEM. NO. ACS 53351

PLACE: AHMEDABAD DATE: 24TH MAY, 2024 UDIN: 24144892BKAVNX6291

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Mar 31, 2014

1. CORPORATE INFORMATION

Gujchem Distillers India Limited is a public limited company and is deemed to have been incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the stock exchange. The Company is engaged in the manufacturing and selling of Industrial Alchohol, Acetaldehyde, Acetic Acid and Auxilaries & Chemicals and also provides services as Commission Agent.

2. Terms / Rights attached to Equity Shares

The company has only one class of Equity Shares having a par value of Rs. 10 each. Each shareholder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares would be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Contingent liability not provided for on account of:

i) Excise Duty disputed by the Company pending disposal 16,62,494 16,62,494

ii) Back wages and reinstatement demand made by certain dismissed workers at Ankleshwar factory, pending Amount not Amount not adjudication. Ascertainable Ascertainable

4. Remuneration to Managing Directors charged to accounts including perquisites as per Income Tax Rules where applicable 24,16,272 19,14,454

(Remuneration has been paid as minimum remuneration in accordance with the provisions of schedule XIII of the Companies Act, 1956.)

5. As at 31st March, 2014 , there are no amounts outstanding in respect of suppliers registered as Micro, Small and Medium Enterprises.

6. The Company is primarily engaged in business of manufacturing and selling of Industrial Alcohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals. Since the inherent nature of activities as a whole are governed by the same set of risk and returns these have been grouped as a single segment, the results of which are reflected in the financial statements. The said treatment is in accordance with the Accounting Standard (AS) 17 Segment Reporting .

7. Net deferred tax assets, mainly representing past losses and unabsorbed depreciation, have not been recognized following the principles of prudence due to uncertainty of the quantum of future profits in terms of Accounting Standard (AS) 22 Accounting for taxes on income.

8. Figures for the previous year are re-grouped wherever necessary.

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Mar 31, 2013

1. CORPORATE INFORMATION

Gujchem Distillers India Limited is a public limited company and is deemed to have been incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the stock exchange. The Company is engaged in the manufacturing and selling of Industrial Alchohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals and also provides services as Commission Agent.

2. As at 31st March, 2013, there are no amounts outstanding in respect of suppliers registered as Micro, Small and Medium Enterprises.

3. The Company is primarily engaged in business of manufacturing and selling of Industrial Alcohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals. Since the inherent nature of activities as a whole are governed by the same set of risk and returns these have been grouped as a single segment, the results of which are reflected in the financial statements. The said treatment is in accordance with the Accounting Standard (AS) 17 Segment Reporting .

4. Related Party Disclosures (a) Relationship :

i. Key Management Personnel :

Manish Navnitlal Patel - Managing Director (Also controls majority of voting powers of the Company)

ii. Relatives of Key Management Personnel :

Devika Navnitlal Patel (Mother), Hem Manish Patel (Wife), Bela Sandip Jhaveri (Sister), Chaula Navnitlal Patel (Sister) and Hemangini Sameer Sinha (Sister)

iii. Enterprises over which key management personnel alongwith relatives is able to exercise significant influence :

Gujarat Alcohol and Allied Chemicals Pvt. Ltd. / Mahalaxmi Trading Agency.

5. Net deferred tax assets, mainly representing past losses and unabsorbed depreciation, have not been recognized following the principles of prudence due to uncertainty of the quantum of future profits in terms of Accounting Standard (AS) 22 Accounting for taxes on income.

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Mar 31, 2012

1. CORPORATE INFORMATION

Gujchem Distillers India Limited is a public limited company and is deemed to have been incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the stock exchange. The Company is engaged in the manufacturing and selling of Industrial Alchohol, Acetaldehyde, Acetic Acid and Auxilaries & Chemicals and also provides services as Commission Agent.

2. Share Capital

Terms/Rights attached to Equity Shares

The company has only one class of Equity Shares having a par value of Rs. 10 each. Each shareholder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares would be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. During the financial year 2003-04, pursuant to the BIFR order the partly paid up equity shares have been converted in to fully paid up equity shares based on the value of shares already paid and thereafter, all the fully paid up equity shares have been converted in to fresh fully paid up equity shares of Rs.10 each after reducing the total number of shares by 90%. During the year the company has complied with the procedures prescribed in the listing agreements with the stock exchanges including issue of fresh equity share certificates in lieu of old equity share certificates.

4. Contingent liability not provided for on account of:

31-03-2012 31-03-2011 Rupees Rupees

i) Excise Duty disputed by the Company pending disposal 16,62,494 16,62,494

ii) Drainage charges disputed by the Company pending disposal 8,80,975 8,80,975

iii) Back wages and reinstatement demand made by certain Amount not Amount not dismissed workers at Ascertainable Ascertainable Ankleshwar factory, pending adjudication.

5. As at 31st March, 2012 there are no amounts outstanding in respect of suppliers registered as Micro Small and Medium Enterprises.

6. The Company is primarily engaged in business of manufacturing and selling of Industrial Alcohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals. Since the inherent nature of activities as a whole are governed by the same set of risk and returns these have been grouped as a single segment, the results of which are reflected in the financial statements. The said treatment is in accordance with the Accounting Standard - 17 on 'Segment Reporting' issued by the Institute of Chartered Accountants of India.

7. Related Party Disclosures

(a) Relationship :

i. Key Management Personnel :

Manish Navnitlal Patel - Managing Director (Also controls majority of voting powers of the Company)

ii. Relatives of Key Management Personnel :

Devika Navnitlal Patel (Mother), Hem Manish Patel (Wife), Bela Sandip Jhaveri (Sister), Chaula Navnitlal Patel (Sister) and Hemangini Sameer Sinha (Sister)

iii. Enterprises over which key management personnel alongwith relatives is able to exercise significant influence :

Gujarat Alcohol and Allied Chemicals Pvt. Ltd. and Mahalaxmi Trading Agency.

8. Net Deferred Tax Assets, mainly representing past losses and unabsorbed depreciation, have not been recognized following the principles of prudence due to uncertainty of the quantum of future profits in terms of Accounting Standard - 22 for 'Taxes on Income' issued by The Institute of Chartered Accountants of India.

9. Previous Years Figures :

Till the year ended 31st March, 2011, the company was using Pre-Revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the Revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified the previous year figures to confirm to this year's classification.

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Mar 31, 2011

1. During the year as per the order dated 1/12/2010 issued by the Board for Industrial and Financial Reconstruction (BIFR) the Company has been ceased to be a sick industrial company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) as in opinion of the Board the net worth of the company turned positive and its revival is sustainable and therefore discharged from the purview of SICA / BIFR.

2. Loans and Advances : -

Advances recoverable in cash or in kind, include the following :

a) the Company uses industrial alcohol as a raw material and has been paying sales-tax and vend fees on the same. During the year 1989-90, on 25th October, 1989 in the matter of Synthetics & Chemicals Limited V/s. state of UP. and others industrial alcohol consumer, the Supremo Court held that payment of vend fee and sales tax on industrial alcohol, unfit for human consumption, is illegal and should not bo levied, prospectively. the company has accordingly, filed separate writ petition in the High Court of Gujarat, for stay of future recovery. the High Court granted an interim stay for the recovery, against which Government of Gujarat filed a special leave petition with respect to the sales tax matter but was unable to obtain a stay from the Supreme Court against the interim stay order granted by the High Court.

In the year 1991-92 based on the judgement of Supreme Court in the matter of Synthetics & Chemicals Limited V/s. state of U.P. on sales-tax, Gujarat High Court vacated the interim stay obtained by the company on 22nd October 1991. Accordingly sales tax is being charged from 23rd October, 1991 by the suppliers of industrial alcohol in the state and the company paying the same. However, the company's petition both in the matter of salos-tax and vend fees remains pending for disposal.

Ponding disposal as aforementioned of the Company's cases the Company had set-up as recoverable the amount of vend fees and sales-tax of Rs. 15.91 lacs and 7.24 lacs respectively for the year 1989-90 and 1990-91. the Company has received refund of the entire amount against the vend fees before 31st March, 2003 leaving a balance of Rs. 7.24 lacs yet to bo received towards sales-tax. the company has considered the said amount under Loans & Advances as " Advances recoverable in cash or in kind".

b) During the year 1991-92, a levy of 0.20 paise per bulk litre of industrial alcohol had been made by the proscribed authorities on purchase of alcohol as administration fees.

the Company has paid a sum of Rs. 2.54 lacs up to 27th April, 1991 under protest, which has been set up as recoverable as Loans and Advances, and filed a Special Civil Application for stay which was granted on 23rd April 1991, by the High Court. Accordingly no further sum up to 31st March 1992 was paid.

During the year 1991-92, the said High Court, without prejudice to the rights and contentions of the parties, has ordered a reduced levy of 5 paise per bulk litre.

the company has also received a demand notice for Rs. 4.40 lacs for the period up to 10th June, 1992 towards administrative fees from the prescribed authorities.

Adjustment, if any, to the cost of purchase of Alcohol will be made on the final disposal of the application.

c) the company has paid Rs.1.52 lacs under protest towards excise duty for the period from January, 1992 to March, 1993 on the sale of waste acid which has been set up as recoverable as Loans and Advances since the company has disputed the classification and levy of Excise Duty. Adjustments, if any, will be made on the final disposal of the matter.

3. During the financial year 2003-2004, pursuant to the BIFR order the partly paid up equity shares have been converted in to fully paid up equity shares based on the value of shares already paid and thereafter, all the fully paid up equity shares have been converted in to fresh fully paid up equity shares of Rs. 10 each after reducing the total number of shares by 90%. During the year the company has complied with the procedures prescribed in the listing agreements with the stock exchanges including issue of fresh equity share certificates in lieu of old equity share certificates.

4. Contingent liability not provided for on account of:

31-03-2011 31-03-2010

i) Excise Duty disputed by the Company pending disposal 16,62,494 16,62,494

ii) Drainage charges disputed by the Company pending disposal 8,80,975 8,80,975

iii) Back wages and reinstatement demand made by certain dismissed at Ankleshwar Amount not Amount not factory, pending adjudication. Ascertainable Ascertainable

5. the Company is primarily engaged in business of manufacturing of Industrial Alcohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals. Since the inherent nature of activities as a whole are governed by the same set of risk and returns these have been grouped as a single segment, the results of which are reflected in the financial statements. the said treatment is in accordance with the Accounting standard - 17 on 'Segment Reporting'issued by the Institute of Chartered Accountants of India.

6. Related Party Disclosures (a) Relationship:

i. Key Management Personnel:

Manish Navnitlal Patel - Managing Director (Also controls majority of voting powers of the Company)

ii. Relatives of Key Management Personnel :

Devika Navnitlal Patel (Mother), Hem Manish Patel (Wife), Bela Sandip Jhaveri (Sister), Chaula Navnitlal Patel (Sister) and Hemangini Sameer Sinha (Sister)

iii. Enterprises over which key management personnel alongwith relatives is able to exercise significant influence:

Gujarat Alcohol and Allied Chemicals Pvt. Ltd., Shree Maulikarjun Trade Invest Pvt. Ltd., Shree Bhuvanakaram Trade Invest Pvt. Ltd., Shree Vishvamurte Trade Invest Pvt. Ltd., Shree Suprinit Trade Invest Pvt. Ltd., Mahalaxmi Trading Agency, Chandramani Chemicals and Prakruti Enterprise.

7. Net Deferred Tax Assets, mainly representing past losses and unabsorbed depreciation, have not been recognized following the principles of prudence due to uncertainty of the quantum of future profits in terms of Accounting standard - 22 for 'Taxes on Income' issued by the Institute of Chartered Accountants of India.

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Mar 31, 2010

1. The Company has been declared as a sick industrial company vide an order dated 8/12/2000 issued by the Board for Industrial and Financial Reconstruction (BIFR) under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The company had submitted a proposal for rehabilitation. The same has been sanctioned by BIFR vide their order dated 16.09.2003. Pursuant to the said order, necessary changes in the carrying amounts of various assets and liabilities have been appropriately dealt with in the accounts for the financial year 2003-2004. Presently, the net worth of the company stands negative. The Directors are of the opinion that after implementation of rehabilitation scheme the companys operations can be run on a viable basis. In view of the same, the accounts have been prepared on a going concern basis.

2. Loans and Advances : - Advances recoverable in cash or in kind, include the following :

a) The Company uses industrial alcohol as a raw material and has been paying sales-tax and vend fees on the same. During the year 1989-90, on 25th October, 1989 in the matter of Synthetics & Chemicals Limited V/s. State of U.P. and others industrial alcohol consumer, the Supreme Court held that payment of vend fee and sales tax on industrial alcohol, unfit for human consumption, is illegal and should not be levied, prospectively. The company has accordingly, filed separate writ petition in the High Court of Gujarat, for stay of future recovery. The High Court granted an interim stay for the recovery, against which Government of Gujarat filed a special leave petition with respect to the sales tax matter but was unable to obtain a stay from the Supreme Court against the interim stay order granted by the High Court.

In the year 1991-92 based on the judgement of Supreme Court in the matter of Synthetics & Chemicals Limited V/s. State of U.P. on sales-tax, Gujarat High Court vacated the interim stay obtained by the company on 22nd October 1991. Accordingly sales tax is being charged from 23rd October, 1991 by the suppliers of industrial alcohol in the state and the company paying the same. However, the companys petition both in the matter of sales-tax and vend fees remains pending for disposal.

Pending disposal as aforementioned of the Companys cases the Company had set-up as recoverable the amount of vend fees and sales-tax of Rs. 15.91 lacs and 7.24 lacs respectively for the year 1989-90 and 1990-91. The Company has received refund of the entire amount against the vend fees before 31st March, 2003 leaving a balance of Rs. 7.24 lacs yet to be received towards sales-tax. The company has considered both the said amount under Loans & Advances as " Advances recoverable in cash or in kind".

b) During the year 1991-92, a levy of 0.20 paise per bulk litre of industrial alcohol had been made by the prescribed authorities on purchase of alcohol as administration fees.

The Company has paid a sum of Rs. 2.54 lacs up to 27th April, 1991 under protest, which has been set up as recoverable as Loans and Advances, and filed a Special Civil Application for stay which was granted on 23rd April 1991, by the High Court. Accordingly no further sum up to 31st March 1992 was paid.

During the year 1991-92, the said High Court, without prejudice to the rights and contentions of the parties, has ordered a reduced levy of 5 paise per bulk litre.

The company has also received a demand notice for Rs. 4.40 lacs for the period up to 10th June, 1992 towards administrative fees from the prescribed authorities.

Adjustment, if any, to the cost of purchase of Alcohol will be made on the final disposal of the application.

c) The company has paid Rs.1.52 lacs under protest towards excise duty for the period from January, 1992 to March, 1993 on the sale of waste acid which has been set up as recoverable as Loans and Advances since the company has disputed the classification and levy of Excise Duty. Adjustments, if any, will be made on the final disposal of the matter.

3. During the financial year 2003-2004, pursuant to the BIFR order the partly paid up equity shares have been converted in to fully paid up equity shares based on the value of shares already paid and thereafter, all the fully paid up equity shares have been converted in to fresh fully paid up equity shares of Rs.10 each after reducing the total number of shares by 90%. The company is in process of complying the procedures prescribed in the listing agreements with the stock exchanges including issue of fresh equity share certificates in lieu of old equity share certificates.

4. Contingent liability not provided for on account of:

31-03-2010 31-03-2009

Rupees Rupees

i) Excise Duty disputed by the Company pending disposal 16,62,494 16,62,494

ii) Drainage charges disputed by the

Company pending disposal 8,80,975 15,68,634

iii) Back wages and reinstatement demand made by Amount not Amount not certain dismissed workers at Ankleshwar factory, Ascertainable Ascertainable pending adjudication.

5. In absence of any information received from any of the supplier regarding their status as a Micro Small and Medium Enterprises or otherwise, amount due to said units has not been disclosed separately.

6. The Company is primarily engaged in business of manufacturing of Industrial Alcohol, Acetaldehyde, Acetic Acid and Auxiliaries & Chemicals. Since the inherent nature of activities as a whole are governed by the same set of risk and returns these have been grouped as a single segment, the results of which are reflected in the financial statements. The said treatment is in accordance with the Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

7. Related Party Disclosures

(a) Relationship:

i. Key Management Personnel :

Manish Navnitlal Patel - Managing Director (Also controls majority of voting powers of the Company)

ii. Relatives of Key Management Personnel :

Devika Navnitlal Patel (Mother), Bela Sandip Jhaveri (Sister) and Chaula Navnitlal Patel (Sister)

iii. Enterprises over which key management personnel alongwith relatives is able to exercise significant influence :

Gujarat Alcohol and Allied Chemicals Pvt. Ltd., Gujarat Ceratech Pvt. Ltd., Shree Maulikarjun Trade Invest Pvt. Ltd., Shree Bhuvanakaram Trade Invest Pvt. Ltd., Shree Vishvamurte Trade Invest Pvt. Ltd., Shree Suprinit Trade Invest Pvt. Ltd., Mahalaxmi Trading Agency, Chandramani Chemicals and Prakruti Enterprise.

8. Net Deferred Tax Assets, mainly representing past losses and unabsorbed depreciation, have not been recognized following the principles of prudence due to uncertainty of the quantum of future profits in terms of Accounting Standard - 22 for Taxes on Income issued by The Institute of Chartered Accountants of India.