Notes to Accounts of Veronica Production Ltd.

Mar 31, 2024

x) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive)
as a result of past events and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can be
made of the amount of obligation. Provisions (excluding gratuity and compensated absences)
are determined based on management’s estimate required to settle the obligation at the
Balance Sheet date. In case the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
These are reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past
events, whose existence would be confirmed by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company. A contingent liability
also arises, in rare cases, where a liability cannot be recognised because it cannot be
measured reliably.

xi) Cash Flows

Cash flows are reported using the indirect method, where by net 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 are
segregated.

Note 14: Property, Plant and Equipment

The Company has no Tangible and Intangible Assets during the year.

Note 36 : Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is
responsible for allocating resources and assessing performance of the operating segments,
has been identified as the Managing Director of the Company. The Company operates only in
one Business Segment i.e. “Agri Trading Business”, hence does not have any reportable
Segments as per Ind AS 108 “Operating Segments”.

Note 37 : Financial instruments - Fair values and risk management

The fair value of the financial assets are included at amounts at which the instruments
could be exchanged in a current transaction between willing parties other than in a
forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value

a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade
payables, other current liabilities, approximate their carrying amounts largely due to the short¬
term maturities of these instruments

b) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on this evaluation, allowances are taken to account for the expected
losses of these receivables.”

A. Accounting classification and fair values

The carrying value and fair value of financial instruments by categories as at 31st March 2024
were as follows:

B. Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial
performance. The risks that could have significant influence on the Company are market risk,
credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise
potential adverse effects of such risks on the company’s operational and financial
performance.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.

Currency risk

The Company is not much exposed to currency risk.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Company’s trade and other receivables, cash and cash equivalents and other bank balances.
To manage this, the Company periodically assesses financial reliability of customers, taking
into account the financial condition, current economic trends and analysis of historical bad
debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all
the financial instruments covered below is restricted to their respective carrying amount.

Note 38 : 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 Company
strives to safeguard its ability to continue as a going concern so that they can maximise returns
for the shareholders and benefits for other stake holders. The aim to maintain an optimal
capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust
the capital structure, the Company may return capital to shareholders, issue new shares or
adjust the dividend payment to shareholders (if permitted). Consistent with others in the
industry, the Company monitors its capital using the gearing ratio which is total debt divided
by total capital plus total debts.

Note : For the purpose of computing total debt to total equity ratio, total equity includes equity
share capital and other equity and total debt includes long term borrowings, short term
borrowings, long term lease liabilities and short term lease liabilities.

Note 39 : Corporate Social Responsibility

The Provision for CSR are not applicable as per Section 135 of Companies act 2013.

Note 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO
THE COMPANIES ACT, 2013

1. The Company does not have any benami property held in its name. 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.

2. The Company has complied with the requirement with respect to number of layers as
prescribed under section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules, 2017.

3. Utilisation of borrowed funds and share premium

(i) 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.

(ii) 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.

4. There is no income surrendered or disclosed as income during the year in tax assessments
under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the
books of account.

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

6. The Company does not have any charges or satisfaction of charges which is yet to be
registered with Registrar of Companies beyond the statutory period except following charge
created but not satisfied as on date of report:

7. During the year, the company has not announced any dividend during the year.

8. The Company has not declared wilful defaulter by the some of the banks.

Note 41 : Prior year comparatives

Previous year’s figures have been regrouped or reclassified, to conform to the current year’s
presentation wherever considered necessary.

For, S K Bhavsar & Co. For & on behalf of the Board of Directors of

Chartered Accountants Veronica Production Limited

Firm Registration No. 145880W

Shivam Bhavsar Vijaybhai R Patni Rajeshbhai Rupareliya

Proprietor (Managing Director/CFO) (Director)

Membership No. 180566 (DIN: 09675100) (DIN: 06546212)

UDIN: 24180566BKEZJM5627

Place: Ahmedabad Place: Ahmedabad

Date: May 28, 2024 Date: May 28, 2024

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Mar 31, 2015

1) Figures have been re grouped and classified wherever they were necessary, some of the figures are shown at their nearest rupee. Totaling, casting and balancing in books of accounts have been done by assessee and we have relied on it during course of audit. Test checks on scientific basis are applied in course of audit wherever necessary.

2) Receipts are neither issued for payment received from debtors nor obtained for payment made to creditors.

3) Wherever bills are not available vouchers are prepared and certified by the assessee.

4) There are no direct personal expenses debited to profit & loss account, however personal expenditure if any included in expenses like telephone expenses, vehicle expenses etc., are not identifiable / separable.

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Mar 31, 2013

1. Deferred Tax

Deferred Tax is calculated at the tax rate and laws that have been enacted or subsequently enacted as of the Balance Sheet date and is recognized on timing difference that originate in one period and are capable of reversing in one period and are capable of reversing in one or more subsequent period. Deferred Tax, subject to consideration of prudence are recognized and carried forward only to the extent that they can be realized

2. None of the employees of the Company has crossed the Limits Prescribed u/s. 217 (2A) of the Companies ( Particulars of Employees ) Amendment Rules, 1988 during the year.

3. In the opinion of the Board, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business and are subject to confirmation.

4. Additional Information under Schedule VI of the Companies Act, 1956 : Nil

5. Previous Year''s figure have been re-grouped / rearranged wherever essential.

6. Cash on hand at the yearend certified by the management. Moreover we are not physically Verified the Cash Balance as on 31-03-2013.

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Mar 31, 2012

1. Deferred Tax

Deferred Tax is calculated at the tax rate and laws that have been enacted or subsequently enacted as of the Balance Sheet date and is recognised on timing difference that originate in one period and are capable of reversing in one period and are capable of reversing in one or more subsequent period. Deferred Tax, subject to consideration, of prudence, are recognised and carried forward only to the extent that they can be realized.

2. In the opinion of the Board, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business and are subject to confirmation.

3. Additional Information under Schedule VI of the Companies Act, 1956 : Nil

4. Previous Year''s figure have been re-grouped / rearranged wherever essential.

5. Cash on hand at the yearend certified by the management. Moreover we are not physically Verified the Cash Balance as on 31-03-2012.

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Mar 31, 2011

1. In the opinion of the Board, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business and are subject to confirmation.

2. Additional Information under Schedule VI of the Companies Act, 1956 : Nil

3. Previous Year's figure have been re-grouped / rearranged wherever essential.

4. Cash on hand at the year end certified by the management. Moreover we are not physically Verified the Cash Balance as on 31-03-2011.