C. Provisions. Contingent liabilities and Contingent assets:

A provision is recognized when the Company has a present obligation as a result of past events
and it is probable that an outflow of resources will be required to settle the obligation in respect of
which a reliable estimate can be made. Provisions are not discounted to its present value and are
determined based on best estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Where no reliable estimates can be made, a disclosure is made as a contingent liability. A
disclosure for contingent liability is also made when there may be a possible obligation or a
present obligation but probably will not require an outflow of resources.

Contingent assets are not recognized in financial statements. A contingent asset is disclosed
where an inflow of economic benefits is probable. If it is virtually certain that an inflow of economic
benefits will arise, the assets and related income are recognized in the period in which the change
occurs.

D. Property. Plant and Equipment:

Items of property, plant and equipment are carried at the historical cost of acquisition or
construction or at the consideration paid less accumulated depreciation arrived at taking into
Schedule II of the Companies Act, 2013. The cost of an item of property, plant and equipment
comprises its purchase price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates and any costs directly attributable to bringing the asset to
the location and condition necessary for it to be capable of operating in the manner intended by
management.

Borrowing costs directly attributable to acquisition or construction of items of property, plant and
equipment which necessarily take a substantial period of time to get ready for their intended use
are capitalized. Borrowing costs are interest and other costs incurred by the Company in
connection with the borrowing of funds.

Subsequent expenditure related to an item of property, plant and equipment is capitalized only if it
enhances the future economic benefits arising from the existing assets beyond its previously
assessed standards of performance.

Advances paid towards acquisition of property, plant and equipment outstanding at each balance
sheet date are shown under short-term loans and advances. Cost of assets not ready for intended
use, as on the balance sheet date, is shown as capital work-in-progress. Gains or losses from
disposal of an item of property, plant and equipment are recognized in the statement of profit and
loss.

E. Depreciation:

Depreciation on property, plant and equipment is provided as per useful lives specified in the
Schedule II of the Companies Act, 2013 for the actual period of the usage of the assets on prorate
basis, with Plant & Machinery considered to be coming under the category of “manufacture of
pharmaceuticals and chemicals” in accordance with clauses 1 & 2 of Section 123 of the
Companies Act, 2013.

F. Research & Development Expenditure:

It is the policy of the company to transfer the Research & Development Expenditure on capital
items to assets and depreciation is charged thereon accordingly at the applicable rates and
Revenue expenditure on Research and development is charged off to Profit & Loss in the year in
which it is incurred. The expenditure to be capitalised include the cost of materials and other costs
directly attributable to preparing the asset for its intended use.

Intangible Assets having indefinite life (or) Intangible Assets under development (or) Goodwill
arisen by way of acquisition are tested for impairment annually, or more frequently when there is
an indication that the assets may be impaired. All other intangible assets are tested for impairment
when there are indications that the carrying value may not be recoverable.

G. Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value
(or) An asset that requires compulsory test for impairment every year. An impairment loss is
charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in the prior accounting period is reversed if there has been a
change in the estimate of the recoverable amount. In the opinion of the Management, during the
year there is no impairment loss.

H. Inventories:

Raw materials, packing materials, stores, spares, consumables are valued at cost, after providing
for obsolescence. Work-in-process is valued at cost of raw materials and proportionate
overheads. Finished goods are valued at lower of the cost or market value/net realizable value.
Cost includes all charges incurred in relation to the goods. The goods received on account of sales
returns are valued at cost.

Net Realizable Value (NRV) is the estimated selling price in the ordinary course of the business,
less the estimated costs of completion and the estimated costs necessary to make the sale. Cost
of inventories comprises all cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition. The cost of all categories of
inventory is determined using the weighted average cost method.

I. Cash and cash equivalents, Statement of Cash Flow:

Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting
short-term cash commitments rather than for investment or other purposes and are readily
convertible to known amount of cash.

Statement of Cash Flow

Cash flows are inflows and outflows of cash and cash equivalents. Operating activities are the
principal revenue-producing activities of the entity and other activities that are not investing or
financing activities. Investing activities are the acquisition and disposal of long-term assets and
other investments not included in cash equivalents. Financing activities are activities that result in
changes in the size and composition of the contributed equity and borrowings of the entity.

Statement of Cash Flows are reported using indirect method, whereby profit before tax is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities of the
company are segregated.

J. Foreign Currency Transactions:

Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions.

Transactions of monetary assets and liabilities denominated in foreign currency are translated at
exchange rates in effect on the Balance Sheet date. The gains or losses resulting from such
translations are included in the statement of profit and loss account. Non-monetary assets and
non-monetary liabilities to be denominated in foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair value was determined. Non¬
monetary assets and non-monetary liabilities to be denominated in foreign currency are measured
at historical cost and are translated at the exchange rate prevalent at the date of transaction.

Revenue, expense, and cash flow items denominated in foreign currencies are translated using
exchange rates in effect on the date of transaction. Transaction gain or loss realized upon
settlements of foreign currency transactions are included in determining net profit for the period in
which the transaction is settled.

K. Employee Benefits:

Short-term employee benefits:

Short-term employee benefits are expensed as the related service is provided. A liability is
recognized for the amount expected to be paid if the Company has a present legal or constructive
obligation to pay this amount because of past service provided by the employee and the obligation
can be estimated reliably.

Defined Contribution Plans:

Contributions to defined contribution retirement benefit schemes are generally recognized as an
expense in the statement of profit & loss account as and when employees have rendered services
entitling them to contributions.

Defined Benefit Plans:

The Company pays gratuity to the employees who have completed five years of service with the
Company at the time of resignation/superannuation. The gratuity is paid @15 days basic salary for
every completed year of service as per the Payment of Gratuity Act, 1972. The gratuity liability
amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the

employees managed by Life Insurance Corporation of India (LIC).

The liability in respect of gratuity and other post-employment benefits are calculated and the said
amount is spread over the period during which the benefit is expected to be derived from
employees’ services. The current service cost of the defined benefit plan, recognized in the
statement of profit and loss under employee benefit expense, reflects the increase in the defined
benefit obligation resulting from employee service in the current year, benefit changes,
curtailments, and settlements. Past service costs are recognized immediately in the statement of
profit and loss. Remeasurement gains and losses arising from adjustments and changes are
recognized in Other Comprehensive Income in the period in which they occur.

Compensated Absences:

The Company’s current policies permit its employees to accumulate and carry forward their
unutilized compensated leaves and utilize them in future periods or receive cash in lieu thereof.
The balance of such earned leaves in excess of 30 days can be encashed by such individual
employee at the year end. The compensation against such encashment is arrived and disbursed
based on the gross salary drawn by such individual employee as at the year end.

Provident Fund:

Contribution to Provident fund (a defined contribution plan) administered through Regional
Provident Fund Commissioner are recognized is charged to profit and loss account in the same
period, as expense.

L. Earnings per Share:

Basic earnings per share are computed by dividing the net profit after tax available to Equity
Shareholders by the weighted average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the
weighted average number of equity shares outstanding for the effects of all dilutive potential
ordinary shares.

M. Income Tax Expense:

Income tax expense comprises of current tax and Deferred Tax. Tax is recognized in the Statement
of Profit and Loss, except to the extent that it relates to items recognized in the Other
Comprehensive Income. In this case, the tax is also recognized in Other Comprehensive Income.

(a) Current Tax:

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date in the country where the
Company operates and generates taxable income.

(b) Deferred Tax:

Deferred tax expense or benefit is recognized on temporary timing differences being the
difference between the carrying amounts of assets and liabilities in the financial statements
and corresponding tax bases used in the computation of taxable profit, that originate in one
period and is likely to reverse in one or more subsequent periods. Accordingly, the company
provided for Deferred Tax on 31-03-2025.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will
be available against which the temporary timing difference can be utilized. Deferred tax
liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period. The carrying value
of deferred tax assets and liabilities are reviewed at each reporting date.

Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.

(c) Indirect taxes:

In the opinion of the Board and to the best of their knowledge and belief, the Company has
properly complied with the provisions of Goods and Service Tax Act, 2017, The Customs Acts,
1962 and any other indirect taxes, to the extent applicable to the Company. The difference, if
any, between the figures as per books of account and the respective returns, have been
reconciled and would be corrected in next periodic returns and in annual returns. The said
differences, if any, do not have any material impact on standalone financial statements.

N. Segment Accounting Policy:

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker of the Company is responsible
for allocating resources and assessing the performance of the operating segments. The Company
prepares its segment information in conformity with accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

O. FINANCIAL INSTRUMENTS:

I. FINANCIAL ASSETS:

1. Initial Recognition and Measurement:

All Financial Assets are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of Financial Assets, which are not at Fair Value through
Profit or Loss, are adjusted to the fair value on initial recognition. Purchase and sale of
Financial Assets are recognized using trade date accounting i.e. the date that the Company
commits to purchase or sell the asset.

After initial measurement, such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included in Other Income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss.

2. Subsequent Measurement:

- Financial Assets measured at Amortized Cost (AC):

A Financial Asset is measured at Amortized Cost if

• it is held within a business model whose objective is to hold the asset in order to collect
contractual cash flows and

• the contractual terms of the Financial Asset give rise on specified dates to cash flows that
represent solely payments of principal and interest (SPPI) on the principal amount
outstanding.

- Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI):

A Financial Asset is measured at FVTOCI if

• it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling Financial Assets and

• the contractual terms of the Financial Asset give rise on specified dates to cash flows that
represents solely payments of principal and interest (SPPI) on the principal amount
outstanding.

- Financial Assets measured at Fair Value Through Profit or Loss (FVTPL):

A Financial Asset which is not classified in any of the above categories are measured at
FVTPL. Financial assets are reclassified subsequent to their recognition, if the Company
changes its business model for managing those financial assets. Changes in business model
are made and applied prospectively from the reclassification date which is the first day of
immediately next reporting period following the changes in business model in accordance with
principles laid down under Ind AS 109.

- Investment in Subsidiaries, Associates and Joint Ventures:

The Company accounts for its investments in Subsidiaries, associates, and joint venture at
cost less impairment loss (if any). Investments in preference shares with the right of surplus
assets which are in nature equity in accordance with Ind AS 32 would treated as separate
category of investment and measured as at FVTOCI.

- Other Equity Investments:

All other equity investments are measured at fair value, with value changes recognized in the
Statement of Profit and Loss, except for those equity investments for which the Company has
elected to present the value changes in ‘Other Comprehensive Income’. However, dividend on
such equity investments are recognized in Statement of Profit and loss when the Company’s
right to receive payment is established.

- Impairment of Financial Assets:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for
evaluating impairment of Financial Assets other than those measured at Fair Value Through
Profit and Loss (FVTPL). Expected Credit Losses are measured through a loss allowance at
an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting date);
or

• Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument).

For Trade Receivables the Company applies ‘simplified approach’ which requires expected
lifetime losses to be recognized from initial recognition of the receivables.

The Company uses historical default rates to determine impairment loss on the portfolio of
trade receivables. At every reporting date, these historical default rates are reviewed and
changes in the forward-looking estimates are analyzed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where
there is no significant increase in credit risk. If there is a significant increase in credit risk full
lifetime ECL is used.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet)
when:

• the rights to receive cash flows from the asset have expired or

• Both (1) the Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a third
party under a “pass-through” arrangement and (2) either (a) the Company has transferred
substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of
the asset.

II. FINANCIAL LIABILITIES:

1. Initial Recognition and Measurement:

All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit
and Loss as finance cost.

2. Subsequent Measurement:

Financial Liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
or other lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying
amounts is to be recognized in the statement of profit or loss.

III. FINANCIAL RISK MANAGEMENT:

The Company’s activities expose it to variety of financial risks: foreign currency risk, interest rate
risk, credit risk, Commodity price risk and liquidity risk. Within the boundaries of approved Risk
Management Policy framework, the Company manages volatility and minimize the adverse impact
on its financial performance.

a) Foreign Currency Risk:

Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will
fluctuate because of changes in foreign currency rates. Exposures can arise on account of the
various assets and liabilities which are denominated in currencies other than Indian Rupee.
The fluctuation in foreign currency exchange rates may have potential impact on the
statement of profit or loss, where any transaction references more than one currency or where
assets / liabilities are denominated in a currency other than the functional currency of the
Company. The Company is subject to foreign exchange risk primarily due to its foreign
currency revenues, expenses and borrowings.

b) Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of change in market interest rates. The Company is not exposed to any
interest rate risk as the interest rates implicit in all the borrowings are fixed in nature.

c) Credit Risk:

Credit risk is the risk that a customer fails to perform or pay the amounts due causing financial
loss to the Company. Credit risk arises from dealing in derivatives receivable from customers
and other financial instruments. The Company maintains that Credit risk is actively managed
through continuous follow-up with the parties and Credit information is regularly shared
between businesses and finance function, with a framework in place to quickly identify,
respond and recognize cases of credit deterioration.

d) Commodity Price Risk:

Commodity price risk arises due to fluctuation in prices of the major imported raw materials
and other products. The company has a risk management framework headed by the
managing director, aimed at prudently managing the risk arising from the volatility in
commodity prices and freight costs.

e) Liquidity Risk:

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the
due date. The company’s liquidity is managed centrally with all the departments forecasting
their cash and liquidity requirements. Management monitors rolling forecasts of the
Company’s cash flow position to ensure that the Company is able to meet its financial
obligation.

P. The company has been accounting for Sales Commission payable to the sales agents only after
the realization against the credit sales made against sales agency references. Payments against
the same are made after receiving the invoices thereto.

Q. There were occasional delays in making of payments to certain Micro and Small Enterprises, and
as per the provisions of Section 15 of the MSMED Act, 2006. Liability on account of interest under
section 16 of MSMED Act,2006 on such delayed payments amount to Rs.12.47 Lakhs as on
31-03-2025, and this interest has not been provided in the books of account, andconsequently, the
profit for the year is overstated to that extent.

iii). INVESTMENT:

Out of the total investments of Rs.8.45 lakhs, part of the same is represented by the fully paid
Equity Shares of M/s. Pattancheru Envirotech Limited made as contribution for utilizing their
services of common Effluent Treatment Plant set up by the M/s. Pattancheru Envirotech Ltd. to
the tune of Rs.8.15 lakhs (Unquoted 81540 No. of equity shares of Rs.10/- each fully paid up).
Part of the investment is represented by shares of State Bank of India amounting to Rs.0.30
lakhs.

These investments are intended to be held for more than one year and are accordingly classified
as non-current investments. These investments recorded are measured at cost of investment but
not on fair value. Management is in the process of arriving at the fair value and impairment if
any in this regard. The impact of such impairment shall be dealt with upon completion of such
assessment by the management.

vii) . CONTINGENT LIABILITIES NOT PROVIDED FOR:

1) Letters of Credit established by the HDFC Bank Limited on behalf of the Company-
Rs.549.47 lakhs (Previous year - Rs. 495.03 lakhs).

2) Bank Guarantees issued by the HDFC Bank Limited on behalf of the company-Rs.5.00
lakhs. (Previous year- Rs.5.00 lakhs).

viii) . LITIGATIONS:

a) Closure - Revocation Orders of TSPCB:

A closure order was issued by TSPCB to the Company on 22-12-2020, for stoppage of plant
operations. The company has submitted a total compliance report on 30-04-2021 for the
deviations pointed by TSPCB, consequently, the Company has received the final revocation
order on 04-02-2022.

b) Application for Enhancement of Production Capacities:

TSPCB claims that as per its “operating guidelines” the factory of the company situated at
Aroor(V), Sadashivpet (M), Sangareddy(D), comes under the “Pattancheru-Bollaram
Area(P.B.A)” (Stated to be appearing in the list of polluting industries) and the issue is
pending at various forums from Supreme Court(1989), High Court (2013), National Green
Tribunal(2015) on various issues which are agitated by the Bulk Drugs Manufacturing
Association of India (BDMAI) as well as by the company, which is presently in the stage of
constituting the Fact - Finding Committee. Also, the company further challenged its location
status in the P.B.A. Depending on the outcome of order, a liability may arise in future
towards contribution for the “Pattancheru-Bollaram Environment Relief Fund (PBERF)”
(@0.5% of the Annual Turnover from FY 2016-17), which is contingent in nature. As per the
TSPCB guidelines, enhancement of capacities from the existing 147.50 MT P.A to the
current level of operations can be considered only after the deposit of fees of 1% of the
previous year's Turnover.

The management is of the view that, suitable decision can be made on payment to PBERF,
based on the decisions of the honorable courts.

c) Note on pending Legal Cases :

a) An application has been filed against the Company under Section 9 of the Insolvency
and Bankruptcy Code, 2016 by a Raw Material Supplier before the Hon'ble National
Company Law Tribunal (NCLT), Hyderabad in May 2024, alleging a default of ?239.79
Lakhs including Interest @20% thereon amounting to Rs.9.17 lakhs for the delay in
payment. The Company already repaid Rs.190 Lakhs and is willing to pay only the

balance outstanding towards the supplies, but without interest thereon as demanded.
Management is of the opinion that the company is not required to pay any interest as
there is no agreement to pay interest and accordingly no provision is made for the
interest in the Financial Statements during the FY 2024-25.

b) Two Legal proceedings have been initiated against the Company under Section 138 of
the Negotiable Instruments Act, 1881 by two suppliers for the amounts of Rs.24.10
lakhs and Rs.41.30 lakhs and the matter is pending before the Hon'ble Judicial
Magistrate Court(s). In the opinion of the management no contingent liability is arising
on these matters and these liabilities are already provided in the books of account.
Against these debts the Company had already substantially paid subsequently and the
outstanding balances reduced substantially and will be cleared soon.

The R &D expenditure reduced as compared to previous year, the Company has been incurring
expenditure on development of various new products which take a time period of 3 to 5 year
gestation for realizing commercial benefit there from. The future economic returns of this product
development activity at large is expected to outweigh the expenditure for such development. To
match the future revenues with corresponding development cost the present expenditure for the
product development is capitalized under the category of “Intangible Asset- Product under
Development Expenses” in Balance Sheet.

The expenditure in R&D being intangible in nature, is being amortized on a Straight Line Method,
considering the 5 years Life Cycle Period for the R&D Expenditure, with the FY 2023-25 being
the Third year of such amortization.

days as the credit period negotiated itself fell beyond 45 days and the price agreed also
accommodates the time value of money for the agreed credit period.

The auditors have relied upon the same.

xi). SEGMENT INFORMATION:

a) Primary Segment:

The company operates in only one reportable primary business segment, i.e. Active
Pharmaceutical Ingredients (API) and their intermediaries. This Segment has been identified and
reported considering the nature of products, risk and returns and the internal financial reporting
system of the Company.

b) Secondary Segment:

Based on the revenue attributable to the individual customers located in various parts of the
world, the company's business is organized into two key geographical segments Viz., Domestic
and Exports.

Segment Revenue and Results, Assets are as under:

(a) Post-employment obligations - Gratuity:(Defined benefit):

i. The Company provides gratuity for employees as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity benefit.
The amount of gratuity payable on retirement/termination is the employees' last drawn basic
salary per month computed proportionately for 15 days' salary multiplied for the number of
completed years of service. The gratuity plan is a funded plan, and the Company makes
contributions, to recognize funds administered by Life Insurance Corporation of India (Insurer), as
per IRDA guidelines. Category-wise composition of the plan assets, actuarial assumptions and
sensitivity analysis thereto is not available with the company as the same are not shared by the
insurer.

The Company has planned to establish a trust to administer its obligation for payment of Gratuity
to employees. However, at present the company contributes to the scheme administered by the
Life Insurance Corporation of India (Insurer). Every year, the insurer carries out a funding
valuation based on the latest employee data provided by the Company. Any deficit in the assets
arising as a result of such a valuation is to be funded by the Company. The company considers
that the contribution rate set at the last valuation date is sufficient to eliminate the deficit over the
agreed period and that regular contributions, which are based on service costs, will not increase
significantly. The company has not changed the process used to manage the risks from previous
years.

(b) Compensated Absences obligations: (Defined benefit):

During the year 2024-25, the Company has provided compensated absences / leave encashment
benefit of Rs.12.33 Lakhs (Previous year of Rs.13.13 Lakhs) total outstanding amounting to
Rs.66.77 lakhs (Previous year Rs.70.88 lakhs) in which the employee rendered the service that
increases entitlement as per the policy. The liability for leave encashment benefit is calculated
based on the 50% basic salary for leaves earned exceeding 30 days.

(c) Employer Contribution to Provident Fund (Defined Contribution Plan):

All the eligible employees of the Company receive benefits from a provident fund, a defined
contribution plan. Both the employee and employer each make monthly contributions to a
government administered fund equal to 12% of the covered employee’s qualifying salary. The
Company as an employer contributed Rs.64.14 Lakhs to the provident fund during the year 2024¬
25 (previous year of Rs.68.04 lakhs). The Company has no further obligations under the plan
beyond its monthly contributions.

(d) Social Security:

The Code of Social Security, 2020 (‘Code’) relating to employee benefits during employment and
post-employment received Presidential assent in September, 2020. The Code has been published
in the Gazette of India. However, the date on which the Code will come into effect has not been fully
notified and the final rules or interpretation have not yet been issued. The Company will assess the
impact of the Code when it comes into effect and will record any related impact in the period in
which the Code becomes effective.

xiii). CORPORATE SOCIAL RESPONSIBILITY (CSR):

Section 135 of the Companies Act, 2013 relating to CSR Activity is not applicable to the Company
for the Financial Year 2024-25 keeping in view of not meeting the criteria of specified level of profits
of the Company.

xv) . TRADE RECEIVABLES:

Judgments are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Factors considered include
the credit rating of the counterparty, the amount and timing of anticipated future payments and any
possible actions that can be taken to mitigate the risk of non-payment. The management is making
an effort to recover the receivables including the time value for any delays thereof.

The company has not dealt in any financial instruments other than trade receivables and payables
during the period under report.

xvi) . UNPAID DIVIDENDS:

The balance in the Unpaid Dividend Payable account relating to the financial years 2018-19, 2019¬
20, 2020-21 and 2021-22 as on 31/03/2024 is Rs. 6.34 Lakhs (Includes Interim Dividend), Rs. 6.04
Lakhs, Rs. 9.39 Lakhs (Includes Interim Dividend) and Rs. 3.01 respectively.

xvii) . TAX ASSESSMENTS:

We hereby confirm that during the financial year ended 31-03-2025, the company has not received
any notice of demand from any statutory authority, including the Income Tax Department, Goods
and Services Tax authorities, or any other regulatory body.

xviii) . APPROVAL OF FINANCIAL STATEMENTS:

The financial statements were approved for issue by the Board of Directors on May 28th, 2025.

xix). OTHER STATUTORY INFORMATION:

• Note on Benami properties:

The Company does not have any Benami Property, where any proceedings has been initiated
or pending against for holding any Benami Property under the Benami transactions
(Prohibition) Act, 1988(45 of 1988) and the rules made thereunder.

• Compliance with approved scheme(s) of arrangements:

The company has not entered into any scheme of arrangements which has an accounting
impact on current and previous financial year.

• Details of Crypto Currency or Virtual Currency:

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

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

• Undisclosed Income:

There is no income surrendered/disclosed as income during Current/previous year in the tax
assessment under the IT Act, 1961, that has not been recorded in the books of accounts.

• Utilization of borrowed funds and share premium:

The company has not advanced or loaned or invested funds to/with any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries:

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:

a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

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

The company borrowed Term Loan exclusively for the purpose of construction of the Factory
buildings and for acquisition of Plant & Machinery. The process of such development and
acquisition of the assets is still going on as on 31-03-2025. The company has capitalized the
entire interest of Rs.112.88 lakhs of such Term Loan to Civil Works in the nature of Factory
Buildings under Construction and Plant and Machinery.

No general loans were used for the development/acquisition of the Capital assets during the
year 2024-25. Hence the disclosure requirement in respect of application of weighted average
rate of interest on the Loan does not apply.

xxii) . Figures have been re-grouped/re-arranged /re-cast wherever necessary, to confirm the current

year classifications.

xxiii) . The balances outstanding on account of sundry debtors/sundry creditors/advances are subject

to confirmation and reconciliation from the respective parties.

As per our Report of even date For and on behalf of the Board of Directors of

for P.S.N RAVISHANKER & ASSOCIATES EVEREST ORGANICS LIMITED

Chartered Accountants
FRN - 003228S

Sd/- Sd/- Sd/-

YADAVILLI SAI KARUNAKAR P.RAMA KRISHNA Dr. S.K. SIRISHA

Partner Chief Financial Officer Managing Director

ICAI M. No.207033 DIN:06921012

Place: Hyderabad, (Sd/_-

Date: 28-05-2025 VENKATA SATYANARAYANA MURTHY VADALI

Director

DIN:01568277