O. Provisions

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

P. Contingencies

Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

Q. Dividend distribution to equity holders

The Company recognises a liability to make dividend distribution to equity holders when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the Corporate laws in India, a final dividend distribution is authorised when it is approved by the shareholders whereas for interim dividend when authorised by board. A corresponding amount is recognised directly in other equity.

General Reserve

The Company has transferred a protion of the net profit before declaring dividend to general reserve pursuant to the earlier provisions of the companies Act 1956.

Transfer to general reserve is not mandatorily required under the Companies Act. 2013 Retained earnings

Retined earnings are the profits that the company has earned till date, less any transfers to general reserve, dividends or other distribution paid to shareholders.

Dividend

The Board of Directors in its meeting held on 28th May, 2024 have recommended for approval of members a final dividend of Rs. 2.50 per equity share of Rs. 10/- each (25%) for the financial year 2023-24.

31. Contingent liabilities

A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of 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. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(ii) Bank Guarantees issued by Bank of India on behalf of the company for Rs. 5 Lakhs to Andhra Pradesh Pollution Control Board (APPCB).

32. Employee Benefits:

As far as leave encashment, the eligible employees draw the same as per their personal needs. During the year, none of the employees have claimed any amount in this regard and consequently, the company has not provided for the same under accrual basis as in accordance of the management, the expenses in this regard is not material.

The Company's activates 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 the volatility and minimize the adverse impact on its financial performance.

i) 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, receivables from customers and other financial instruments. The company maintains that, Credit Risk is actively managed through continuous follow up with the parities and Credit information is regularly shared between business and financial function, with a framework in place to quickly identify respond and recognize cases of credit deterioration.

ii) 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 ensures that the company is able to meet its obligation.

iii) Market Risk

a. Foreign Currency Risk

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. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, Euro and GBP against the functional currency of the Company.

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 currently there are no borrowings made by the company and also the interest-bearing assets held by the company are short term (maturity within 12 months) and are substantially independent of change in market interest rates.

c. 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 arising from the volatility in commodity prices and freight costs.

34. Segment Reporting:

i. Company's operations are predominantly related to the manufacture and processing of bulk drugs & intermediates, as such there is only one primary reportable segment. Secondary reportable segments are identified taking into account the geographical markets available to the products, the differing risks, returns and internal reporting system. Hence the segmental reporting is based on Domestic and Export sales.

ii. As a part of secondary reporting, revenues are attributed to geographical areas based on the location of customers as detailed below:

35. Forfeiture of shares:

The company has issued reminders to the shareholders for payment of calls in arrears on various dates, after the issue of said notices the company is left with unpaid capital of Rs 46,600/- (unpaid on 9,320 equity shares @ Rs 5/- share). The company after taking necessary approvals from stock exchange, the said amount will be written off in books.

36. Proposed Dividend:

The Board of Directors have proposed a dividend of 25% which amounts Rs. 2.50 per equity share held & fully paid-up. The Same shall be adjusted from other equity upon the necessary approvals and payment.

40. Additional regulatory information required under Schedule III of Companies Act 2013:

i. Note on Benami Property held:

There are no such cases in this regard and no proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

ii. Relationship with struck off companies:

The company is in the continuous process of ascertaining the details as to whether any of the parties with whom the company is dealing, are appearing in the list of companies struck off under section 248 of the Companies Act,2013 or section 560 of the Companies Act, 1956. There are no transactions with struck off companies.

iii. Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013

iv. 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.

v. 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.

vi. 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.

vii. Utilisation of borrowed funds and share premium:

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:

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

b. provides 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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

41. Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

*

42. Confirmation of Balances:

The balances outstanding on account of sundry debtors/sundry creditors/advances are subject to confirmation in respect of some parties.

43. The Figures of the previous years have been re-grouped/re-arranged wherever necessary.

44. Rounding of Amounts: All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013, unless otherwise stated.

As per our Report of even date attached For and on behalf of the Board of Directors of For M/s. P.S.N. Ravishanker & Associates TYCHE INDUSTRIES LIMITED

Chartered Accountants Sd/- Sd/-

FRN No : 003288S (G.GANESH KUMAR) (SAI SUDHAKAR P)

Sd/- Managing Director Director

(P. RAVI SHANKER) DIN: 01009765 DIN: 08379760

Partner Sd/- Sd/-

ICAI M.No: 025288 (Y. SRINIVASA RAO) (PRADOSH RANJAN JENA)

Place : Hyderabad CFO Company Secretary & Compliance Officer

Date : 28-05.2024 ICSI M.No.69364