Notes to Accounts of Vinayak Vanijya Ltd.

Mar 31, 2025

23 Contingent Liabilities Not provided For NIL

24 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

25 Confirmation of balances, whether in debit or credit from parties are subject to confirmation as provided by board of directors.However no proof regarding the same has been obtained at th yesar end. Company do have a system of periodic balance confirmations from parties..

30 Segment Reporting:

The company operates only in one business segment and hence no separate information for segment wise disclosure is required.

31 The Micro, Small and Medium Enterprises Development Act, 2006 has come into force with effect from October 2, 2006. As per the act, the company is required to identify the Micro and Small Vendors/Service providers and pay interest to them on overdue beyond the specified period irrespective of the terms agree upon. The company has not received any confirmations from its Vendors/Service Providers regarding their status of registration under the said Act, which has been relied upon by the auditors, hence prescribed disclosures under Section 22 of the said act has been provided.

33 The COVID -19 pandemic is rapidly spreading throughout the world. The operations of the Company were impacted, due to shutdown of all plants and offices following nationwide lockdown by the Government of India. The Company has resumed operations in a phased manner as per directives from the Government of India. The Company has evaluated impact of this pandemic on its business operations and financial position and based on its review of current indicators of future economic conditions, there is no significant impact on its financial results as at 31st March 2025. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration and accordingly the impact may be different from that estimated as at the date of approval of these financial results. The Company will continue to monitor any material changes to future economic conditions.

Resons for Variance in Financial Ratios

There is variation of more than 25% in following Ratios, and the explanations for the same are as under:

i) Return on Equity Ratio shows positive improvement due to higher turnover and accordingly higher Profitability.

ii) Inventory Turnover Ratio shows positive improvement due to higher turnover.

iii) Net Capital Turnover Ratio shows positive improvement due to higher turnover.

iv) Net profit Ratio shows positive improvement due to higher turnover and control over expenses and increase operating margins.

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Mar 31, 2024

K. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present
obligation as a result so past event and it is probable that there will be outflow of resources. Contingent
liability, which are considered significant and material by the company, are disclosed in the Notes to Accounts.
Contingent Assets are neither recognised nor disclosed in financial statements.

L. Investments

1 Long term investments are considered "at Cost" on individual investment basis, unless there is a decline
other than temporary in value thereof, in which case adequate provision is made against such diminution in
the value of investments.

2 Current investments are valued at lower of cost or market value.

M. Borrowing Cost

Borrwoing cost that are directly attributable to acquisition or construction of qualifying assets or treated as part
of cost of capital assets. Other borrowing cost or treated as expenses for the period in which they are incurred.

N. Earning Per Share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Earning
considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting
preferences dividends and any attributable tax thereto for the period.

O. Cash and Cash Equivalent

In the cash flow statement, cash and cash equivalent includes cash in hand, demand deposits with banks,
other short-term highly liquid investments with original maturities of three or less.

P. Lease

Lease under which the company assumes substantially all the risks and rewards of ownership are classified
as finane lease. Such assets acquired are capitalized at fair value of the asset or present value of the minimum
lease payments at the inception of the lease, which is lower. Lease payment under operating leases are
recognised as an expense on a straight line basis in the statement of profit and loss account over the lease
term.

Q. Intangible Assets

Intangible assets are stated at acquisition cost, net accumulated amortization and accumulated impairment
losses, if any. Intangible assets are amortized on a straight line basis over their estimated useful lives. A
rebuttable presumption that the useful life of an intangible assets will not exceed ten years from the date when
the asset is available for use is considered by the management. The amortization period and the amortization
method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly
different from previous estimates, the amortisation period is changed accordingly.

R. Use of Estimates

The preparation of financial statements requires the managaement to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at
the date of the financial statements and reported amounts of income and expenses during the year. Example
of such estimates include provision for doubtful debts, employee benefits, provision for income tax, the useful
lives of depreciable fixed assets and provision for impairment.

23 Contingent Liabilities Not provided For NIL

24 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation in
the ordinary course of business at least equal to the amount at which they are stated except as expressly stated
otherwise.

25 Confirmation of balances, whether in debit or credit from parties are subject to confirmation as provided by
board of directors.However no proof regarding the same has been obtained at th yesar end. Company do have
a system of periodic balance confirmations from parties..

30 Segment Reporting:

The company operates only in one business segment and hence no separate information for segment wise
disclosure is required.

31 The Micro, Small and Medium Enterprises Development Act, 2006 has come into force with effect from October
2, 2006. As per the act, the company is required to identify the Micro and Small Vendors/Service providers and
pay interest to them on overdue beyond the specified period irrespective of the terms agree upon. The company
has not received any confirmations from its Vendors/Service Providers regarding their status of registration
under the said Act, which has been relied upon by the auditors, hence prescribed disclosures under Section 22
of the said act has been provided.

33 The COVID -19 pandemic is rapidly spreading throughout the world. The operations of the Company were
impacted, due to shutdown of all plants and offices following nationwide lockdown by the Government of India.
The Company has resumed operations in a phased manner as per directives from the Government of India. The
Company has evaluated impact of this pandemic on its business operations and financial position and based on
its review of current indicators of future economic conditions, there is no significant impact on its financial results
as at 31st March 2024. However, the impact assessment of COVID-19 is a continuing process given the
uncertainties associated with its nature and duration and accordingly the impact may be different from that
estimated as at the date of approval of these financial results. The Company will continue to monitor any
material changes to future economic conditions.

Resons for Variance in Financial Ratios

There is variation of more than 25% in following Ratios, and the explanations for the same are as under:

i) Return on Equity Ratio shows positive improvement due to higher turnover and accordingly higher Profitability.

ii) Inventory Turnover Ratio shows positive improvement due to higher turnover.

iii) Net Capital Turnover Ratio shows positive improvement due to higher turnover.

iv) Net profit Ratio shows positive improvement due to higher turnover and control over expenses and increase
operating margins.