9. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the Company has a present legal
or constructive obligation that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the obligation. If the effect
of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognized as a finance
cost.

The amount recognized as a provision is the best estimate of the consideration required
to settle the present obligation at reporting date, taking into account the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected
to be recovered from a third party, the receivable is recognized as an asset

if rt is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities are possible obligations that arise from past events and whose
existence will only be confirmed by the occurrence or non-occurrence of one or
more future events not wholly within the control of the Company. Where it is not
probable that an outflow of economic benefits will be required, or the amount cannot
be estimated reliably, the obligation Is disclosed as a Contingent Liability, unless the
probability of outflow of economic benefits is remote. Contingent Liabilities are
disclosed on the basis of judgment of the management/independent experts. These
are reviewed at each balance sheet date and are adjusted to reflect the current
management estimate.

Contingent Assets are possible assets that arise from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company. Contingent
Assets are disclosed in the financial statements when inflow of economic benefits is
probable on the basis of judgment of management. These are assessed continually to
ensure that developments are appropriately reflected in the financial statements.

10. Foreign Currency Transactions and Translation

Transactions in foreign currencies are initially recorded at the functional currency rates
at the date the transaction first qualifies for recognition.

Monetary Assets and Liabilities denominated in foreign currencies are translated at the
functional currency spot rates of exchange at the reporting date. Exchange differences
arising on settlement or translation of monetary items are recognized in Statement of
Profit and Loss in the year in which it arises.

Non-monetary items are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction.

11. Revenue Recognition

The Company derives revenues primarily from business of Dyes and Chemicals.

Revenue is recognized upon transfer of control of promised products or services to
customers in an amount that reflects the consideration we expect to receive in exchange
for those products or services. Revenue from contracts with customer is recognized when
the Company satisfies a performance obligation by transferring the promised goods or
services to a customer at a transaction price. The transaction price is the amount of
consideration to which the company expects to be entitled in exchange for transferring
promised goods or services to a customer as per contract, excluding amount of taxes
collected on behalf of the government. The transaction price is adjusted of trade discount,
cash discount, volume rebate and other variable considerations as perthe terms of contract.
Revenues in excess of invoicing are classified as contract assets (which may also refer as
unbilled revenue) while invoicing in excess of revenues are classified as contract liabilitie s
(which may also refer to as unearned revenues). The Company presents revenues net of
indirect taxes in its Statement of Profit and loss.

11.1 Sale of Goods

Revenue from the sale of goods is recognised upon transfer of control of the goods
have passed to the buyer, which generally coincides with dispatch. Revenue from
export sales are recognised on shipment basis. Revenue from the sale of goods is
measured at an amount that reflects the consideration we expect to receive in
exchange for those products(i.e. the transaction price). The Company presents
revenues net of indirect taxes, returns and allowances, trade discounts and volume
rebates in its Statement of Profit and Loss.

11.2 Other Export Benefit

Export benefits are accounted for in the year of export at net market realizable
value.

11.3 Other Income

Revenue from transactions or events that do not arise from a contract with a customer
not in the scope of Ind AS 115 are continue to be recognized in accordance with
the other standards. Such Income includes Interest and Dividend income which are
dealt with in Ind AS 109.

12. Employee Benefits

12.1. Short Term Benefit

Short-term employee benefit obligations are measured on an undiscounted basis and
are booked as an expense as the related service is provided.

A liability is recognized for the amount expected to be paid under performance
related pay if the Company has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.

12.2. Post-Employment and Long-Term Employee Benefits

In respect of post-employment and other long-term employee benefits (such as
gratuity and leave encashment), the Company has followed an internal assessment
method for estimating the liability, and an actuarial valuation will be undertaken in
subsequent periods, in line with the Company’s policy to align with the full
requirements of Ind AS 19 in a phased manner.

Management is continuously reviewing the methodology for employee benefit
measurement and is committed to enhancing disclosures and valuation practices in
upcoming reporting periods.

13. Income Taxes

Income Tax Expense comprises Current and Deferred Tax. Current Tax Expense is
recognized in Statement of Profit and Loss A/c except to the extent that it relates
to items recognized directly in other comprehensive income or equity, in which it
is recognized in OCI or Equity.

Current Tax is the expected tax payable on the taxable income for the year, using tax
rates enacted or substantively enacted and as applicable at the reporting date, and
any adjustmentto tax payable in respect of previous years. Current Income Taxes are
recognized under 'Income Tax payable' net of payments on account, or under 'Tax
receivables' where there is a debit balance.

Deferred Tax is recognized using the Balance Sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred Tax is
measured at the tax rates that are expected to be applied to temporary differences
when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred Tax Assets and Liabilities are offset if there
is a legally enforceable right to offset current tax liabilities and assets, and they relate
to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle Current Tax Liabilities and Assets on
a net basis or their tax assets and liabilities will be realized simultaneously.

Deferred Tax is recognized in Statement of Profit and Loss except to the extent
that it relates to items recognized directly in OCI or Equity, in which case it is
recognized in OCI or Equity.

A Deferred Tax Asset is recognized to the extentthat it is probable that future taxable
profits will be available against which the temporary difference can be utilized.
Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax benefit will be realized.
Minimum Alternate Tax credit is recognized as deferred tax asset only when and to
the extentthere is convincing evidence that the Company will pay normal income tax
during the specified period. Such asset is reviewed at each Balance Sheet date and
the carrying amount of the MAT credit asset is written down to the extentthere is
no longer a convincing evidence to the effect that the Company will pay normal
Income Tax during the specified period.

Additional Income Taxes that arise from the distribution of dividends are recognized
at the same time that the liability to pay the related dividend is recognized.

14. Leases:

14.1 Recognition:

The Company as a Lessee

The Company's Lease Asset classes primarily consist of Leasesfor Land and Buildings.
The Company assesses whether a contract contains a lease, at inception of a contract.
A contract is, or contains, a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified
asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the
asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use
asset ("ROU") and a corresponding lease liability for all lease arrangements in which
it is a lessee, except for leases with a term of twelve months or less (short- term
leases) and low value leases. For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over
the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease
before the end of the lease term. ROU assets and lease liabilities includes these
options when it is reasonably certain that they will be exercised. The right-of-use
assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date
of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment
losses.

Right-of-use assets are depreciated from the commencement date on a straight- line
basis over the shorter of the lease term and useful life of the underlying asset. Right
of use assets are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the
future lease payments. The lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, usingthe incremental borrowing
rates in the country of domicile of these leases. Lease liabilities are remeasured with
a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination
option.

Lease liability and ROU asset have been separately presented in the Balance Sheet
and lease payments have been classified as financing cash flows.

14.2 Accounting for

14.2.1 Operating Leases

Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating lease. Payments
made under operating leases are recognized as an expense over the lease term.

14.2.2 Finance Lease

Leases of Property, Plant and Equipment where the Company, as lessee has
substantially all risks and rewards of ownership are classified as finance lease. On
initial recognition, assets held under finance leases are recorded as Property, Plant
and Equipment and the related liability is recognized under borrowings. At inception
of the lease, finance leases are recorded at amounts equal to the fair value of the
leased asset or, if lower, the presentvalue of the minimum lease payments. Minimum
lease payments made under finance leases are apportioned between the finance
expense and the reduction of the outstanding liability.

15. Impairment of Non-Financial Assets

The carrying amounts of the Company's non-financial assets are reviewed at each
reporting date to determine whether there is any indication of impairment
considering the provisions of Ind AS 36 'Impairment of Assets'. If any such indication
exists, then the asset's recoverable amount (higher of its fair value less costs to
disposal or its value in use) is estimated.

An impairment loss is recognized if the carrying amount of an asset or its Cash
Generating Unit (CGU) exceeds its estimated recoverable amount. Impairment losses
are recognized in profit or loss.

Impairment losses recognized in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the
recoverable amount which is only to the extent that the asset's carrying amount does
not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.

16. Dividends

Dividends and Interim dividends payable to a Company's shareholders are recognized
as changes in equity in the period in which they are approved by the shareholders'
meeting and the Board of Directors respectively.

17. Material Prior Period Errors

Material prior period errors are corrected retrospectively by restating the
comparative amounts for the prior periods presented in which the error occurred. If
the error occurred before the earliest prior period presented, the opening balances
of assets, liabilities and equity for the earliest prior period presented, are restated.

18. Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit or loss
attributable to equity shareholders of the Company by the weighted average number
of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss
attributable to equity shareholders of the Company by the weighted average number
of equity shares considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

19. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity.

a. Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus or minus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs that
are attributable to the acquisition or issue of the financial asset.

Impairment of Financial Assets

In accordance with lnd-AS109, the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss on the financial assets and
credit risk exposure.

For recognition of impairment loss on financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased significantly, 12- month ECL is used
to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If, in a subsequent period, the credit quality of the instrument
improves then the entity reverts to recognizing impairment loss allowance based on
12-month ECL

In respect of Trade receivables or any financial asset that result from transactions that
are within the scope of Ind AS 115, company follows 'simplified approach' for
recognition of impairment loss allowance within the scope of Ind AS 115, if they do
not contain a significant financing component. It recognizes impairment loss
allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

b. Financial Liabilities

Initial recognition and measurement

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

Subsequent Measurement

Financial Liabilities are carried at amortized cost using the effective interest method.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and any material transaction that are any integral part of the EIR. For trade
and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate the fair value of the instrument.

Derecognition

A Financial Liability is derecognized when the obligation under the liability is
discharged or cancelled or expired. When an existing financial liability is replaced
by anotherfrom the same lender on substantially different terms, or the termsof 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 recognized in the
Statement of Profit and Loss.

c. Derivative Financial Instruments

The Company uses forwards to mitigate the risk of changes in interest rates, exchange
rates and commodity prices. Such derivative financial instruments are initially
recognized at fair value on the date on which a derivative contract is entered into
and are also subsequently measured at fair value on the reporting date. Derivatives
are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes
in the fair value of derivatives are taken to cash flow hedge reserve through Statement
of Other Comprehensive Income.

These are accounted for as follows:

a)Cash flow hedge

When derivative is designated as a cash flow hedging instrument, the effective
portion of changes in the fair value of the derivative is recognized in the cash flow

hedging reserve being part of other comprehensive income. Any ineffective
portion of changes in the fair value of the derivative is recognized immediately
in the Statement of Profit and Loss. If the hedging instrument expires oris
sold, terminated or exercised, the cumulative gain or loss previously recognized
in the cash flow hedging reserve is transferred to the Statement of Profit and
Loss upon the occurrence of the underlying transaction. If the forecasted
transaction is no longer expected to occur, then the amount accumulated in
cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

b)Fair Value Hedge

Changes in the fair value of hedging instruments and hedged items that are
designated and qualify as fair value hedges are recorded in the Statement of
Profit and Loss. If the hedging relationship no longer meets the criteria for
hedge accounting, the adjustmentto the carrying amount of a hedged item for
which the effective interest method is used is amortized to Statement of Profit
and Loss over the period of maturity.

20. CSR Expenditure

Amount spent on CSR activities during the year is charged to Statement of
Profit & Loss, if the same is of revenue nature. If the expenditure is of such
nature, which may give rise to a capital asset, the same is recognized in
the Balance Sheet as "CSR Assets" under respective head of Property, Plant
& Equipment.

D. Major Estimates made in preparing Financial Statements:

L Useful life of Property, Plant and Equipment and Intangible Assets

The estimated useful life of Property, Plant and Equipment is based on a
numberof factors including the effects of obsolescence, demand, competition
and other economic factors (such as the stability of the industry and known
technological advances) and the level of maintenance expenditures required
to obtain the expected future cash flows from the asset.

Useful life of the assets other than Plant and machinery (except Laboratory
Equipments, Fire Fighting Equipments and Tools &Equipments) are in
accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of
property, plant and equipment, and are adjusted prospectively, if appropriate.

Intangible assets are being amortized on straight line basis over the period of
five years.

Employee benefit obligations are measured on the basis of actuarial
assumptions which include mortality and withdrawal rates as well as
assumptions concerning future developments in discount rates, the rate of
salary increases and the inflation rate. The Company considers that the
assumptions used to measure its obligations are appropriate and
documented. However, any changes in these assumptions may have a
material impact on the resulting calculations.

3. Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies
have been made in accordance with Ind AS 37, ‘Provisions, Contingent
Liabilities and Contingent Assets'. The evaluation of the likelihood of the
contingent events requires best judgment by management regarding the
probability of exposure to potential loss. In case of change in
thecircumstancesthe following unforeseeable developments, the likelihood
could alter.

L Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support
its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns
to shareholders. The capital structure of theCompanyis based on management'sjudgementofitsstrategicand day-
to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The
management and the Board of Directors monitors the return on capital as well as the level of dividends to
shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The
Company includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits
(including other bankbalance) and under Equity, the Equity Share Capital plus other Equity (excluding Preference
Share Capital) is considered.

L Financial Risk Management

The Company's Financial Risk Management is an integral part of how to plan and execute its business strategies.
The Company's financial risk management is set by the Managing Board.

Company is exposed to following risk from the use of its financial instrument:

-Credit Risk
-Liquidity Risk
-Market Risk

(a) Credit Risk

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to
engage in a repayment plan with the Company. The Company categories a loan or receivable for write off when a
debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been
written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due.
Where recoveries are made, these are recognized in profit or loss.

Provision for Expected Credit or Loss

(a) Financial assets for which loss allowance is measured using 12 month expected
credit losses:

The Company has assets where the counter-parties have sufficientcapadty to meetthe obligations and where the
risk of default is very low. Accordingly, no loss allowance for impairment has been recognized.

(b) Financial assets for which loss allowance is measured using life time expected credit
losses:

The Company provides loss allowance on trade receivables using life time expected credit loss and as per
simplified approach._

(c) Market Risk

Considering the Company’s existing foothold/experience in the Dyes and Chemical sector, established & diversified
client base, association with various agents, it's competent sales team and an established marketing setup, it does not
foresee any problem in marketing its production.

Market Risk is the risk of loss of future earnings, fair values of future cash flows that may result from a change in die
price ofa financial instrument. The value of'a financial instrument may change as a result of changes in the interest rates,
foreign currency exchanges rates, equity prices and other market changes that effect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, and
other market changes.

The Company manages market risk through a finance department, which evaluates and exercises independent control
over the entire process of market risk management. The finance department recommends risk management objectives
and policies, which are approved by Senior Management and the Audit Committee. The activities of this department
include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing
strategies, and ensuring compliance with market risk limits and policies._

i) Interest Rate Risk

It is the risk where changes in market interest rates might adversely affect the company's financial condition. The short
term/immediate impact of changes in interest rates are on the Company's net interest income/expenses. On a longer
term, change in interest rate impact the cash flows on the assets, liabilities and off-balance sheet items, giving rise to a
risk to the net worth of the Company arising out of all reprising mismatches and other interest rate sensitive positions.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rate. In order to optimize the Company's position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
At the reporting date the interest rate profile of the Company’s interest-bearing financial Instruments Is as follows:

Trade receivables and Contract Balances

The Company classifies the right to consideration in exchange for deliverables either as a receivable or as unbilled
revenue. A receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of
billings is recorded as unbilled revenue and is classified as a financial asset for these cases as right to consideration is
unconditional upon passage of time. This would result in the timing of revenue recognition being different from the
timing of billing the customers.

Company classifies amount received as advance from customers against sales as contract liability.

Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.

Performance obligations and remaining performance
obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize
these amounts in revenue. Applying the practical expedient as given in para 121 of Ind AS 115, the Company has not
disclosed the remaining performance obligation related disclosures for contracts as the performance obligation is part
of a contract that has an original expected duration of less than 1 year.

The impact on account of applying the erstwhile IndAS 18 Revenue instead oflndAS 115 Revenue from contract with
customers on the financials results of the Company for the year ended as at March 31,2025 is insignificant.

There is no list available on MCA portal about companies struck off under The Companies Act So
it is not feasible to determine the transaction with struck off companies.

Note 38 : Disclosure of Benami Property

The company does not hold any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and rules made thereunder.

Note 39: Disclosure of Undisclosed Income

There are no transaction which is not recorded in the books of accounts and 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.

Note 40: Disclosure of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the
financial year.

Note 41 : Disclosure of Wilful Defaulter

The company has not declared as a wilful defaulter by any bank or financial institution or any
other lender during the financial year.

Note 42: Disclosure of Registration of Charge with ROC

The Company has filed all type of applicable charges or satisfaction with Registrar of Companies
(ROC) in time, So there no charges of satisfaction is pending for registration with ROC as on
balance sheet date.

The company is neither a holding company of any subsidiaries companies not a subsidiary
company of any holding company, hence The company is not covered under clause (87) of
section 2 of the Companies Act along with the Companies (Restriction on number of Layers)
Rules, 2017.

Note 44: Disclosure of Scheme of Arrangement

The Company has not entered in any Scheme of Arrangements which has been approved by the
Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

Note 45: Disclosure of Title Deeds of Immovable Property

The title deeds of all immovable properties are in the name of Company.

In terms of our report of even date For and on behalf of the Board

FOR LAXMAN KUMAR & ASSOCIATES SHANKARLAL RAMPAL DYE CHEM LIMITED

Chartered Accountants

FRN - 019866C, Peer Review Cert No. 016006

(RAMPAL INANI) (V1N0D KUMAR INANI)

(MANAGING DIRECTOR) (DIRECTOR)

(LAXMAN KUMAR SINDHI) (DIN-00480021) (DIN-02928272)

Partner
M. NO. 407532
DATE: 19-05-2025
PLACE: BHILWARA
UDIN: 25407532BMMJH18960

(SUS1IEEL KUMAR INANI) (ADITI BABEL)

(CFO/D1RECTOR) (COMPANY SECRETARY &

(DIN-02928254) COMPLIANCE OFFICER)

_(PAN-AACP15846C)_(PAN-CQMPB1S13K)