Shree Refrigerations Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

s. Provisions and contingent liabilities

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

Provision for warranty related costs are recognized
when the product is sold. Provision is based on
historical experience.

Contingent liability is disclosed in case of:

• a present obligation arising from past events, when
it is not probable that an outflow of resources will be
required to settle the obligation.

• present obligation arising from past events, when
no reliable estimate is possible.

• a possible obligation arising from past events where
the probability of outflow of resources is not remote.

Contingent assets are neither recognized, nor
disclosed.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

t. Employee Stock Options Scheme

The Employee Stock Option Scheme (the Scheme)
provides for the grant of options to acquire equity
shares of the Company to its employees. Stock options
granted are accounted for under the fair value method,
recognised as employee compensation expense
over the vesting period, with a corresponding credit
to Employee Stock Options Outstanding Account,
in accordance with the applicable provisions of the
Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations,
2021 and the Guidance Note on Employee Share-
based Payments issued by the Institute of Chartered
Accountants of India.

The Company has granted 7,00,750 stock options
to eligible employees under the ESOP Scheme
approved by shareholders. The vesting of the options
commences from April 2026 and accordingly, no
employee compensation cost has been recognised in
the Statement of Profit and Loss for the year ended
31^st March 2026.

Note :

(1) State Bank of India - Cash Credit :

Terms of Loans : The loans carry interest @ 8.75% p.a.

Nature of Security : Hypothecation of Stock, Book Debts, Factory Building and Immovable Properties of Directors.

(2) Yes Bank - Cash Credit :

Terms of Loans : The loans carry interest @ 8.50% p.a.

Nature of Security : Hypothecation of Stock, book debts and Investment properties situated at Kolkata.

(3) State Bank of India GECL :

Terms of Loans : The loans carry interest @ 8.65% p.a.

Nature of Security : Hypothecation of Stock, Book Debts, Factory Building and Immovable Properties of Directors.

1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

2. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

3. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.

4. The Company does not have any transactions with Crypto Currency or Virtual Currency where the Company has traded
or invested in Crypto Currency or Virtual Currency during the year.

5. The Company has not advanced or loaned or invested funds to any other persons or entities, 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.

6. The Company has not received any fund from any persons or entities, 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.

7. The Company complies with the number of layers of companies by clause 87 of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017 for the year ended on March 31^st, 2026.

8. During the year, the Company is not declared a wilful defaulter by any bank or financial Institution or other lender.

The risk-free interest rates are determined based on the zero-coupon yield curve for Government Securities or Government
bonds with maturity equal to the expected term of the option. Volatility calculation is based on annualised standard deviation
of the continuously compounded rate of return of the stock over a period from 01-08-2025 to 31-03-2026. Considering the
company''s future growth plans and capital requirements, the company does not intend to declare dividends in the near term
and plans to reinvest its profits back into the business.

Notes:

1. The company raised additional equity capital through an IPO, contributing to an overall increase in shareholders’ equity. Additionally, the
repayment of high-cost debt resulted in a reduction in borrowings.

2. Although the company’s profits grew by approximately 32% during the financial year and liquidity improved, the company reduced its
high-cost debt by prepaying borrowings.

3. The company’s turnover grew by approximately 56% during the financial year, leading to enhanced operating performance reflected
across various financial parameters, including higher sales, purchases, and profits. This growth, along with the corresponding increase in
working capital, also resulted in improved inventory turnover.

4. Although the company’s profits grew considerably, an increase in share capital led to a reduction in ROCE.

5. Although interest income increased significantly, investments for short periods led to a reduction in ROI.

Disclosure pursuant to Note no. 6(A)(e) of Part I of Schedule VI to the Companies Act, 2013 Terms/ rights attached to shares :

Ordinery Equity Shares :

Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company

Equity Shares be sub-divided from 1 Equity Share of Rs.100 each to 50 Equity Share of Rs. 2 each and revised Authorised Share Capital shall be Rs.25,10,00,000 (Twenty Five Crore Ten Lakh Only) For FY 2022-23 Equity Share is Rs. 100/- each, in FY 2023-24 1 shares of Rs 100/- each split into 50 Shares of Rs. 2/- each.

1. During the current accounting period, an advance payment was made to suppliers for the procurement of raw materials; however, the materials have not yet been received also increase in the Trade Receivable and Inventory balance with compare to previous year. As a result, there is an increase in current assets, leading to a variance exceeding 25% in the Current Ratio compared to the previous period.

2. In the current accounting period, the company completed a private placement of equity shares at a premium. Consequently, the equity balance increased significantly, resulting in a variance of more than 25% in the Debt-Equity Ratio.

3. There has been an increase in long-term borrowings during the current accounting period compared to the previous period. This has led to a decline in the Debt-Service Coverage Ratio, with a variance exceeding 25%.

4. During the current year, the company issued shares under private placement at a premium, which led to an increase in shareholders'' equity. As a result, the Return on Equity (ROE) decreased, causing a variance of over 25% in the ROE ratio.

6. During the current accounting period, the balance of accounts receivable increased significantly due to higher sales volume. This has led to a variance exceeding 25% in the Trade Receivable Turnover Ratio.

8. The debtors balance increased in the current accounting period compared to the previous year. This led to an increase in average working capital, resulting in a variance of more than 25% in the Net Capital Turnover Ratio.

10.During the current year, the company issued shares under private placement at a premium, resulting in an increase in capital employed. Consequently, the Return on Capital Employed (ROCE) decreased, with the variance exceeding 25%.

Prior Period Expenses of Rs.4,53,238 represent to contribution towards cash accumulation plan of Life Insurance Corporation pertaining to FY 2022-23. As this contribution of Rs.4,53,239 pertained to FY 2022-23, it is disclosed as prior period expenditure in profit and loss account. In view of the aforesaid, the profit and reserves for the year are lower by Rs.4,53,238.

NOTE 42 : DISCLOSURE FOR GRATUITY :

Liability for employee benefit has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (revised) :

The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), promulgated by Government of India came into force with effect from October 2, 2006. The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated August 26, 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. As per the MSMED Act, the Company is required to identify the micro and small suppliers and pay them interest on overdue payables beyond the specified period irrespective of the terms agreed with the suppliers. The disclosures pursuant to the said MSMED Act are as follows:

The above information regarding small and micro enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company