Description of nature and purpose of each reserve

a. Security Premium

The security premium is the amount paid by shareholder over and above the face value of equity share. Security premium can be utilized as per the provisions of the Companies Act, 2013.

b. General Reserve

The general reserve is created on transfer of profits from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income.

c. Retained Earnings

Retained earnings represents surplus in Statement of Profit and Loss.

* There is no default in repayment of principal or payment of interest thereon.

** Term Loan from HDFC Bank and ICICI Bank is secured by way of hypothecation of the Company's immovable

properties and term loans from SIDBI are secured by the guarantees/security extended by promoter-directors of the

Company. Total repayment period of the term loans are :

(i) SIDBI Term Loan of ' 1000 Lakhs availed in the October 2015 is repayable in 90 monthly instalments commencing from April 2016 and last instalment due in September 2023.

(ii) SIDBI Term Loan of ' 100 Lakhs availed in the Month of February 2019 is repayable in 54 monthly instalments commencing from August, 2019 and last instalment due in January, 2024.

(iii) SIDBI Term Loan of ' 100 Lakhs availed in the Month of September 2019 is repayable in 54 monthly instalments commencing from March, 2020 and last instalment due in August, 2024.

(iv) SIDBI Term Loan of total ' 519.44 Lakhs availed up-to this year for the Solar Plant and Bangalore Project, out of total sanctioned loan of ' 650 Lakhs, same is repayable in 51 monthly instalments which started from the month of November 2021.

(v) GECL-TLs of ' 149 Lakhs, ' 212.18 Lakhs and ' 142 Lakhs taken from HDFC Bank, ICICI Bank and SIDBI respectively during the year are repayable in 36 monthly instalments after availing 12-month moratorium as per the ECLGS of Central Government.

(vi) GECL-TLs of ' 74.38 Lakhs, ' 106.00 and ' 150.00 Lakhs from HDFC Bank, ICICI Bank and SIDBI respectively during the year are repayable in 36 monthly instalments after availing 24-month moratorium as per the ECLGS of Central Government.

(vii) SIDBI Term Loan of ' 170 Lakhs availed in the Month of December 2021 is repayable in 54 monthly instalments commencing from Jun, 2022 and last instalment due in Nov, 2026.

(viii) SIDBI Term Loan of ' 600 Lakhs availed in the Month of November 2022 is repayable in 72 monthly instalments commencing from Nov, 2023 and last instalment due in Oct, 2029.

(ix) SIDBI Term Loan of ' 280 Lakhs availed in the Month of March 2023 is repayable in 54 monthly instalments commencing from Sep, 2023 and last instalment due in Feb, 2028.

(x) SIDBI Term Loan of ' 220 Lakhs availed in the Month of March 2023 is repayable in 72 monthly instalments commencing from Apr, 2024 and last instalment due in Mar, 2030.

** Car Loans Taken from banks/financial institutions are secured by way of individual hypothecation of the Vehicle

purchased from the amount of loan.

39. FINANCIAL INSTRUMENTS (a) Capital Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents.

(c) Financial Risk Management objects and policies

In its ordinary operations, the company’s activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks.

Market Risk

Market Risk is the risk that the rair value of future cash flows of a financial instrument will fluctuate because of the change in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. The Company is exposed to interest rate risk arising mainly from long-term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms.

At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments is as follows:

Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD related to the imports of its raw material and capital assets. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). Foreign currency exposures that are not hedged by derivative instruments outstanding as on the balance sheet date are as under:

Derivative outstanding as at the reporting date - Nil

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Company's credit risk arise principally from the trade receivables and advances. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to the customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentrations of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Expected contractual maturity for financial liabilities :

41. OTHER NOTES

a. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company do not have any transactions with companies struck off.

c. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

d. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

e. The Company have 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:

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

f. The Company have 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:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

g. The Company have not any such transaction which is not recorded in the books of accounts that 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.

h. Company does not have any long-term contract including derivative contract for which there are any material foreseeable losses.

i. There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

j. Previous year figures have been reworked, regrouped, re-arranged and reclassified, wherever necessary.

k. All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting

Standards) Rules, 2015 (as amended) till the standalone financial statements are authorised, have been

considered in preparing these standalone financial statements.

42. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of ' 0.50 per fully paid-up equity share of ' 10/- each for the financial year 2022-23.

43. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 25, 2023.