Right, Preferences and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of ^ 10/- per share. Each holder of equity shares is entitled to one vote per share. Any dividend declared by the company shall be paid to each holder of Equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liquidation of the Company, the holders of the 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 by the shareholders.

16.2 The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve is not reclassified subsequently to the Statement of Profit and Loss.

16.3 The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company. Thus, the amount reported in General Reserve is not entirely distributable.

On September 16, 2022, a final dividend of ^ 0.80 per share for 2021-22 was paid to holders of fully paid equity shares.

17.2 Nature of security

(A) borrowings other than car loans referred to in a), b), c), d) and k) above are secured by the following:

i) Industrial Property at Plot No. B-65 & 66 at Udhana, Surat owned by associate concerns and at Block No. 251, Mangrol, Kosamba owned by company.

ii) Plant & Machinery @25%, New Plant & Machinery, FDR for LC, Other CA for LC, Debtors and Stock.

iii) Personal guarantee of promoter directors, associate firms and their partners and their relatives.

The company has been sanctioned a CC limit of ^ 7.50 crores from HDFC bank and is secured by

i) Industrial Property at Plot No. B-65 & 66 at Udhana, Surat owned by associate concerns and at Block No. 251, Mangrol, Kosamba owned by company.

ii) Plant & Machinery @25%, New Plant & Machinery, FDR for LC, Other CA for LC, Debtors and Stock.

iii) Personal guarantee of promoter directors, associate firms and their partners and their relatives.

20.1 Payment towards trade payables is made as per the terms and conditions of the contract/purchase orders.

20.2 The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises are as below:

20.3 No interest during the year has been actually paid to Micro and Small Enterprise on delayed payments.

20.4 As per management's opinion, no interest is provided in books of accounts as there is no delay in payment to Micro and Small Enterprises.

35. Disclosures on financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2.1 to the financial statements.

(a) Financial assets and liabilities: Category wise Classification

The following table presents the carrying amounts and fair value of each category of financial assets and liabilities.

The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, short term loans, floating rate loans, trade payables, short term debts and borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and hence their carrying value are deemed to be fair value.

b) Following table provides Fair value measurement hierarchy of financial instruments not measured at fair value as at March 31, 2023 on a recurring basis, other than those with carrying amounts that are reasonable approximations of its fair value.

The fair value of borrowings which have a quoted market price in an active market is based on its market price and for other borrowings the fair value is estimated by discounting expected future cash flows, using a discount rate equivalent to the risk-free rate of return, adjusted for the credit spread considered by the lenders for instruments of similar maturity.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

Offsetting:

Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized amounts and the Company intends to either settle on a net basis, or to realize the asset and settle the liability, simultaneously.

(c) Financial risk management:

The Company's principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The senior management ensures that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

(A) Market risk:

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company's income or the value of its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The major components of market risk are foreign currency risk, interest rate risk and price risk.

(I) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.

The Company has not entered in to any forward contracts to hedge its foreign exposures and therefore, there are no outstanding forward contract at the year-end (as at March 31, 2023 and as at March 31, 2022)

Foreign Currency Sensitivity:

The Company is principally exposed to foreign currency risk against USD and EURO Sensitivity of profit or loss arises mainly from USD/ EURO denominated receivables and payables.

As per management's assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:

(II) Interest rate risk:

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company's cash flows as well as costs.

The Company is subject to variable interest rates on some of its interest-bearing liabilities. The Company's interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like short-Term Bank Borrowing.

The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets and liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in market interest rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market interest rates, while interest rates on other types of assets may change with a lag.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(Note: The impact is indicated on the profit/(loss) before tax basis).

(III) Other Price risk:

Other Price Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial instruments such as investments in equity instruments, mutual funds and bonds. The company has no such investments hence is not exposed to price risks from such investments.

The company is not exposed to price risk arising from investment in fixed deposits with banks.

(B) Credit Risk:

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company's exposure are continuously monitored.

Credit risks arising from other balances with banks is limited and there is no collateral held against these because the counter parties are recognized banks. Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of default in repayment as at the year end.

Credit risk arising from trade receivables is managed in accordance with the company's established policy, procedures and control relating to customer credit risk management. Credit quality of customer is assessed based on study of credit worthiness of customer. The concentration of credit risk is limited due to the fact that the customer base is large. The company' has three customers representing more than 5 % of total balance of trade receivables Aggregate outstanding from three parties constitute 40.33 % of the total outstanding. To that extent the company has a concentration of credit risk. The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company.

(C) Liquidity risk:

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The following table details the Company's expected maturity for its non-derivative financial assets. The information included in the table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company's liquidity risk management as the liquidity is managed on a net asset and liability basis.

The Company has access to committed credit facilities as described below, of which the amount mentioned below were unused as at March 31, 2023 and at March 31, 2022. The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.

36-36.1 Defined Contribution Plan

The Company makes contribution towards Employee Provident Fund and Super Annuation Fund. The Company is required to contribute specified percentage of payroll cost.

36.2 Defined Benefits Plan Gratuity

15 days salary for each completed year of service. Vesting period is 5 years and the payment is at actual on superannuation, resignation, termination, disablement or on death. The liability for gratuity as above is recognized on the basis of actuarial valuation.

The Company makes contribution to Life Insurance Corporation (LIC) for gratuity benefits according to the Payment of Gratuity Act, 1972.

The Company recognizes the liability towards the gratuity at each Balance Sheet date.

The most recent actuarial valuation of the defined benefit obligation for gratuity was carried out at March 31, 2023 by an actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Scheme is funded through LIC.

These plans typically expose the Company to risks such as: Actuarial risk, Investment risk, Liquidity risk, Market risk and Legislative risk.

No other post-retirement benefits are provided to these employees.

36.3 The following tables summaries the components of defined benefit expenses recognized in the Statement of Profit and Loss / Other Comprehensive Income and amount recognized in the Balance Sheet for the respective plans:

The estimate of rate of escalation in Salary considered in Actuarial Valuation, taken into the account in action, seniority, promotions and other relevant factors including supply and demand in the employment market. The above information is certified by the Actuary.

xv) Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

37.5 Terms and conditions of transactions with related parties

1) Transaction entered into with related party are made on terms equivalent to those that prevail in arm's length transactions except payment of rent to sister concern, for which the company has passed Board Resolution dated May 12, 2022. Outstanding balances other than loan given & taken and fair value of financial guarantee contract, at the year-end are unsecured and interest free and settlement occurs in cash.

2) Loans in INR taken from the related party carries interest rate 10 % (10 % for year ended 3103-2023 and 31-03-2022).

3) There is no allowance account for impaired receivables in relation to any outstanding balances and no expense has been recognized in respect of impaired receivables due from related parties.

4) All Outstanding balances are unsecured and are repayable in cash.

38. SEGMENT REPORTINGBasis of Segmentation: MULTIPLE SEGMENT Factors used to identify the reportable segments:

The Company has following business segments, which are its reportable segments. These segments offer different products and services, and are managed separately because they require different technology and production processes. Operating segment disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.

39. Disclosures as IND AS 115- Revenue from Contracts with Customers:

39.1 Company derives revenue from sale of goods and rendering of services from its contracts with customers. The Revenues have been disclosed in Note No 25 "Revenue from Operations".

39.2 Disaggregation of revenue is covered in Note no 39F "Segment Reporting" including revenue from Domestic sales and Export Sales.

The revenue of ^ 54.73 lakhs (P.Y. ^ 42.25 lakhs) have been recognised from carried forward contract liabilities balance as the beginning of the year.

39.4 The revenue from contracts with customers for the year includes variable consideration (volume discounts) of ^ 44.80 lakhs, which has been deducted from the transaction price. The company uses expected value method in measuring the variable consideration. There were no constraints in estimating variable consideration.

39.5 The Company has applied practical expedient referred to in paragraph 121 of Ind AS 115 and accordingly has not disclosed information relating to remaining performance obligations. No consideration from contracts with customers is excluded from the remaining performance obligations.

40.1 The company has not made any investments during the year. Hence, ratios of return on investments have not been presented.

40.2 The interest cost taken in the above ratios, is after netting of the interest subsidy received ^ 5.63 lakhs (P.Y. ^ 51.39 lakhs).

41.1 The Company's pending litigations comprise of claims against the Company and Proceedings pending with Tax/ Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. Future Cash Outflows in respect of the above are determined only on receipt of judgements/ decisions pending with various forums/ authorities.

43. Impairment of Assets

In accordance with the Indian Accounting Standard (Ind AS-36) on "Impairment of Assets" the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31, 2023.

44. Leases Company is a lessor

(i) The company has not given any property on lease. Hence disclosure required under IND-AS 17 for company as a lessor is not given.

Company is a lessee

(ii) The Company has applied Ind AS 17 'Leases' to rent contracts of Land/Building to evaluate whether these contracts contain a lease or not. Based on evaluation of the terms and conditions of the arrangements, the Company has evaluated such arrangements not be a lease. Hence disclosure requirement as per Ind-As 17 for operating/ finance lease is not given.

45. Further, some balances of Trade and other receivables, Trade and other payables and Loans are subject to confirmation/reconciliation. Adjustments, if any, will be accounted for on confirmation/reconciliation of the same, which will not have a material impact.

46. Other Statutory information

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

(ii) The Company do not have any transactions with companies struck off.

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

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

(v) 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:

a. directly or indirectly lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provides any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) 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:

a. directly or indirectly lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provides any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) 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).

(viii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

(ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

(x) The Board of Directors of the Company have proposed final dividend of Rs.1/- per equity share for the year, which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.

(xi) The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company, hence details regarding CSR activities are not provided.

(xii) Section 2(87) of the Companies Act, 2013 regarding number of layers of Companies is not applicable to the Company.

47. Previous year's figures have been regrouped, wherever necessary, to confirm to current year's classification.

48. Approval of financial statements

The financial statements are approved for issue by the Audit Committee at its meeting held on May 15, 2023 and by the Board of Directors on May 15, 2023.