Notes to Accounts of Varyaa Creations Ltd.

Mar 31, 2025

15. CONTINGENT LIABILITIES AND PROVISIONS

The Company creates a provision when there is present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. When 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.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

If it is no longer probable that an outflow of resources would be required to settle the obligation, the
provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset
and related income are recognized in the period in which the change occurs.

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when
it is probable that a liability has been incurred and the amount can be reasonably estimated.

16. EARNINGS PER SHARE:

Basic earnings per share are computed by dividing the net profit for the year attributable to the equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted
earnings per share is computed by dividing the net profit attributable to the equity shareholders for the
year by the weighted average number of equity and dilutive equity equivalent shares outstanding during
the year, except where the results would be anti-dilutive.

17. CASH FLOW:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects
of transactions of 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. Cash
flows from operating, investing and financing activities of the Company are segregated, accordingly.

2.2) Terms/Rights attached to equity shares:

The company has only one class of equity shares having par value of '' 10/- per share. Each
holder of equity shares is entitled to one vote per share. In the event of liquidation of the company,
the holders of equity shares will be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held.

Note 27:

During the year ended 31st March 2025, the company had issued 13.40 Lakhs equity shares by way of
public issue at a price of Rs 150 per equity share, the total amount of public issue was Rs 2010 Lakhs,
Sebi has passed an interim order dated 14th May 2025 (order no. WTM/AB/CFD/SEC- 4/31401/2025-26)
raising certain prima facie observation on utilisation of issue proceeds however, The Company has denied
the allegation made in interim order wide letter dated 03/06/2025 to Securities and Exchange Board of India
(SEBI). The Company seeking further legal recourse for the same.

Note 28:

The Company has not paid Undisputed income tax for the Financial Year ended on 31st March, 2024
amounting to Rs 114.19 Lakhs.

Note 29:

The figures of earlier year are regrouped arranged wherever necessary to make them comparable with that
of current Year.

Note 30:

Notes referred to above form part of the accounts as per our report of even date attached.

For and on behalf of the Board of Directors of
For Hiren Buch Associates For Varyaa Creations Limited

Chartered Accountants
FRN. 116131W

Hiren Buch Pooja Naheta Sarika Naheta

Partner Managing Director Director and CFO

Membership No. : 045767 DIN: 03548285 DIN: 03515120

UDIN: 25045767BMKNYQ7213

Place: Mumbai Akshita Agarwal

Date: 28/06/2025 Company Secretary

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Mar 31, 2024

Note : - Authorised share capital increased from 20 Lakhs to 600 Lakhs with effective from 25/08/2023 and the company has also issued 3300000 Bonus Shares to the shareholders on 08/09/2023

2.2) Terms/Rights attached to equity shares:

The company has only one class of equity shares having par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held.

During the period starting from May 2023, the company has shift in a range of business activities, transitioning from trading to grading, manufacturing, and upgrading of its existing stock. The company maintains an inventory of items for trading purposes, including gold old ornaments, gold bars, raw diamonds, precious stones, and precious metals. These materials are consumed in the production process to upgraded finished goods stock.

The company previously conducted its operations within the same line of stock in trading. However, it has since made a strategic decision to convert the respective stock for internal consumption.

26) i) Contingent liability in respect of capital contracts remaining to be executed Nil (PY Nil)

ii) Other Contingent liabilities- '' Nil (PY Nil)

iii) Company did not have provided any corporate guarantee.

27) Debit and Credit balances are subject to confirmation.

28) In the opinion of the Board of Directors, the current assets have value on realization in ordinary course of business at least equal to the amount at which they are stated except as otherwise stated.

30) Micro, Small and Medium Enterprises Development Act, 2006:-

The Company is in the process of compiling information from its suppliers regarding their status under the above act and hence disclosure, if any, of the amount unpaid as at the period end together with the interest paid/payable as required has been to the extent of information available:-

31) Disclosure regarding loans given, investments made and guarantee given pursuant to section 186(4) of the Companies Act, 2013:

a) Loan Given: Nil

b) Investment Made: Nil

c) Guarantee Given: Nil

32) Segment Reporting

The Company does not have more than one business segment and hence segment reporting is not applicable.

35) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classification.

36) The company has not incurred any Financial Lease obligation during the current financial year.

37) Additional regulatory information required by Schedule III of Companies Act, 2013:

a) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

b) 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 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

c) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

d) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

e) The Company has not been declared as a willful defaulter by any bank or financial institution or government or any government authority.

f) Struck off Companies: Details of relationship with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of the Companies Act, 1956

g) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

h) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

i) The figures have been rounded off to the nearest lacs of rupees upto two decimal places. The figure 0.00 wherever stated represents value less than '' 1000/-.