n) Provisions Contingent liabilities and contingent assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as Contingent Liability.

A disclosure for a Contingent Liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but disclosed its existence in the standalone financial statements.

o) 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.

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 03, 2024 have been considered, disclosed and adjusted, wherever applicable, as per the requirement of Accounting Standards.

Note 4.1 (1) Term Loans from Bank of Baroda referred above to the extent of -

1. Creation of Registered equitable mortgage of factory land and building including proposed Pe8 structure of Cold Storage at NA industrial land having sub plot no. 1/8, R. S. No. 1509/2, adm 5384.14 Sq. Mtrs. and built up adm. 2294.38 Sq. Mtrs. situated Nr. Marketing Yard, Hapa road, Jamnagar, Gujarat

2. Creation of Registered equitable mortgage of Residential cum Commerical building comprised of eight shops, two stalls, six offices and twelve flats at city survey no. 1-G-4 Paiki, Sheet No. 86, C. S. No. 3837 Paiki & 3838, Plot no. 3/A1, 3/A2 and 3/8, Saru Section road, Jamnagar

3. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 51, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

4. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 52, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R.

S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

Guarantee

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

(2) Term Loan from SIDBI is secured by-

1. First Charge by way of Hypothecation of all the movable assets of the company whether acuired /to be acquired at its factory premises.

2. Lien on Fixed Deposit of Rs. 150 Lakh in the name of the company

(3) Term Loan from Kotan Mahinda Prime Ltd is secured against the vehicle Jeep.

^N°te ⁵-¹ (i) Working Capital Loan from Bank of Baroda referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

1. Creation of Registered equitable mortgage of factory land and building including proposed PE8 structure of Cold Storage at NA industrial land having sub plot no. 1/8, R. S. No. 1509/2, adm 5384.14 Sq. Mtrs. and built up adm. 2294.38 Sq. Mtrs. situated Nr. Marketing Yard, Hapa road, Jamnagar, Gujarat

2. Creation of Registered equitable mortgage of Residential cum Commerical building comprised of eight shops, two stalls, six offices and twelve flats at city survey no. 1-G-4 Paiki, Sheet No. 86, C. S. No. 3837 Paiki & 3838, Plot no. 3/A1, 3/A2 and 3/8, Saru Section road, Jamnagar

3. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 51, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

4. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 52, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

Guarantee:

1 Mr. Viiaykumar Vanravan Kotecha

2 Mr. Dayalji Vanravan Kotecha

3 Mr. Hiren Viiaykumar Kotecha

4 Mr. Rishit Dayalji Kotecha(2) Working Capital Loan from HDFC referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

1. Creation of Registered equitable mortgage of factory land and building including proposed PE8 structure of Cold Storage at NA industrial land having sub plot no. 1/8, R. S. No. 1509/2, adm 5384.14 Sq. Mtrs. and built up adm. 2294.38 Sq. Mtrs. situated Nr. Marketing Yard, Hapa road, Jamnagar, Gujarat

2. Creation of Registered equitable mortgage of Residential cum Commerical building comprised of eight shops, two stalls, six offices and twelve flats at city survey no. 1-G-4 Paiki, Sheet No. 86, C. S. No. 3837 Paiki & 3838, Plot no. 3/A1, 3/A2 and 3/8, Saru Section road, Jamnagar

3. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 51, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

4. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 52, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

Guarantee

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

(2) Working Capital Loan from HDFC referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

1.Industrial Open Land RS No 400p1, TPS No. 3A, FP No 16, Plot No 6& 7 off Hapa Road , Nr. Shreenath Spediators Pvt Ltd. 361002 Hapa

2. Personal Gaurentee of All Directors : Guarantor:

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

3. FD For bank Gaurantee with 10% Margin.

24. 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.

25. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are

subject to confirmation and therefore the effect of the same on profit could not be ascertained.

26. Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to confirmations and

reconciliation if any, by the respective parties.

27. 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 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.

33. Tittle deeds of immovable property.

Tittle deeds of immovable property has 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.

34. Revaluation of property, plants and equipment's.

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

35. Loans or Advances in the nature of loans.

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

36. Capital Work In Progress (CWIP)

There has been no Capital work in progress for the current year of the company.

37. Intangible assets under development:

There are no Intangible assets under development in the current year

38. 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.

39. Borrowings from bank or financial institution on the basis of current assets.

The company have borrowings from bank or financial institution on the basis of current assets as per Note No. 4 and 5.

40. Willful Defaulter.

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

41. 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.

42. 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.

43. 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.

44. 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 institutions. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

45. Corporate social responsibility (CSR).

As per section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The funds are utilized on the activities which are specified in Schedule VII of the Companies Act, 2013. The utilization is done by way of contribution towards various activities.

Average net profit of the Company for last three financial years:

Rs. 40,628,364.60

Prescribed CSR Expenditure (two percent of the amount as in above):

Rs. 8,12,568

Two percent of average net profit of the company as per section 135(5):

Rs. 8,12,568

Surplus arising out of CSR projects/ programs/ activities of the previous financial years:

NIL

Amount required to be set off for the financial year: NIL Amount unspent, if any: NIL

Total CSR obligation for the financial year: Rs. 8,12,568/-

CSR amount spent or unspent for the financial year:

a) Total Amount Spent for the Financial Year (in Rs): Rs. 8,16,000/-

b) Amount Unspent (in Rs) : NIL

46. Details of crypto currency and virtual currency.

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

47. Contingent Liability

i) Contingent liabilities shall be classified as:

(a) Claims by the company not acknowledged as debt: 10,05,71,521.35/-

(b) Guarantees.

(c) Other money for which the company is contingently liable.

Note: Contingent liability arisen on account of pending legal proceeding by company against receivable, which has been occurred after balance sheet date but before date of submission of Audit Report

48. The Company is subject to legal proceedings and claims (amounting to 10,05,71,521.35/-) after balance sheet date, which have arisen on account of non-payment of outstanding dues by trade receivables to company on account of submission of forged documents, bank receipts and bank statement. The company's management reasonably expects that such extraordinary legal actions, when ultimately concluded and determined, will have a material and adverse effect on the company's results of operations or financial condition.

49. A. 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”), 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.

B. 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.