Income tax expense recognized in statement of profit end loss comprised the sum of deferred tax and current tax except the ones recognized in other comprehensive income or directly in equity Ý Ý , ' Ý ‘ ' <;

Current tax is the amount of tax payable or) the taxable income for the year as determined in accordance with the applicable income tax laws of the country in which the Company is incorporated. Taxable profit differs from 'profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it’ is probable that a taxation authority will accept an uncertain tax treatment. The Company shall reflect the effect of uncertainty for each uncertain tax treatment by using either most likely me'hod or expected value method, depending on which method predicts better resolution of the treatment

Cash and cash equivalents includes Term Deposits with original maturity period up to three months. Term Deposits with original maturity period beyond three months up to twelve months have been included in Bank balances (other than bank cash & cash equivalent) and Term Deposits with original maturity period beyond twelve months have been included in Other financial assets (non current assets).

Note 36 : Risk 1.Foreign currency risk :

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate Company transacts business in its functional currency (INR) and in other foreign currencies. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities, where revenue or expense is denominated in a foreign currency.

Note 37 : Additional note to financial statements

1. Earning per shares (EPS)

Basic EPS amounts are calculated by dividing the profit / loss for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

i. Board of directors at its meeting held on October 12, 2023 pursuant to section 63 and other applicable provisions, if any, of the companies Act,2013 and rule made thereunder, proposed that a sum of Rs.SO million shares be capitafecd as bonus equity shares out of free reserves and surplus, and distributed amongst the equity shareholders by issue of 0.8 million equity shares of Rs. 100/- each credited as fully paid to the Equity Shareholders in the proportion of 1.6 Equity share for every 1 share held.

ii. The Board of Directors of the Company in the Board meeting dated October 12, 2023 and Shareholders of the company in the Extra Ordinary General Meeting dated October 13, 2023 have approved the sub-division of each of the Equity Share of the Company having a face value of Rs.100./- each in the equity share of the compan - be sub-divided into 20 equity shares having a face value of Rs. 5/- each ("Sub-division").

The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, every employee who has completed five years or more of service gets gratuity on departure at 15 days salary(!ast drawn salary) for each completed year of service. The level of benefits provided depends on the member's length of service and salary at retirement age. Gratuity plan is unfunded.

Risk Exposure -

Plan Characteristics and Associated Risks

The Gratuity scheme is a Defined Benefit Plan that provides for a lump sum payment made on exit either by way of retirement, death or disability. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The Plan design means the risks commonly affecting the liabilities and the financial results are expected to be :

Discount rate risk :

The discount rate is generally based upon the market yields available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities.

Salary Growth risk :

Salary growth rate is enterprises best estimate of employee turnover in future determined considering factors such as nature of business & industry retention policy, demand & supply in the employment market, standing of the enterprises, business plan,HR policy.

The company's capital management is intended to maximise the return to shareholders for meeting the long term & short term goals of the company through the optimization of the debt & equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

All financial assets and liabilities for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows: -Level 1 -Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 - Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either .directly or indirectly Level 3 - Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observablemarket data.

There are no Assets or Liabilities which are required to be measured at FVTPL/FVTOCI. Accordingly no disclosure required for Fair value hierarchy.

There are no transfers between level 1, level 2 and level 3 during the year/period.

1 .The Company's non-current borrowings have been contracted at market rates of interest. Accordingly, the carrying value of such non-current borrowings approximates fair value.

2. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate their respective carrying amount due to the short term maturities of these instruments.

3. Fair value of other non-current other financial assets has disclosed as there is no significant differences between carrying value and fair value.

4.Since there is no financial assets / financial liability which measured at fair value through statement of profit & loss or fair value through other comprehensive income, no separate disclosure has been made for the same in the above table.

6. Financial risk management objectives and policies

The company’s activities are exposed to a variety of financial risk from its operations. The key financial risks include market risk(including foreign currency risk and interest rate risk),credit risk and liquidity risk.

The company’s senior management overseas the management of these risks. The management is responsible for formulating an appropriate financial risk governance framework for the company and for periodically reviewing the same. The senior management ensures that financial risk are identified, measured and managed in accordance with the company's policies and risk objectives. The board of directors reviews and agree policies for managing each of these risks, which are summarised below:

(a) Market risk :

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows. The market risk may arise out of changes in interest rates, foreign currency exchange rates, credit risk, liquidity and commodity risk.

i.Interest rate risk :

Interest rate risk is the risk that fair value or future cashflow of financial instrument will fluctuate because of changes in market interest rates. The company’s exposure to the risk of changes in market interest rates relates primary to the company's debt obligation with floating interest rates.

The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates and changes in interest rates. The Company enters into a variety of derivative financial instrument to manage its exposure to foreign currency and interest rates

iii. Credit risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company had adopted a policy of only dealing with creditworthy customers. In all cases, credit limit is granted to customer after assessing the credit worthiness based on the information supplied available to the management or its own past trading records and trends. For the periods reported, the Company did not consider there to be any significant concentration of credit risk which had not been adequately provided for. _

iv. Liquidity risk

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associaj«k^S4tST!nanW»tWM^tes that are settled by^SipTjn|FS§sh or another financial asset. The company's approach is to ensure, as far as possible, that it will have sufficient liquidity toymasMs liabilities wherogeVThe Company'sj^^flv&teio, 2f^jl times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monifcfiijts liquidity position anrfSsaoys a robusyq^h/fianag5h&^y|Btem. It maintains adequate sources of financing including loans from banks at an optimized cost. IM CHARTERED p-U ([$/*ai Arw\CtV

ACCOUNTANTS/^// ° S

v. Commodity risk W V^-V btSi S/4 / O W

The Company has risk of price volatility and supply against its major raw materials and managementeqmjgating this risk h/etJsflring that the^are rajrtractgat'arrapBements to pass on the additional costs incurred in this respect to the buyers/customers

8. Code on social security

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

9..Regroup

The Previous year Figures have been regrouped, wherever necessary to confirm the respective period/ year for fair and better Presentation of financial statements.

Note 40 : First time adoption of Ind AS

Up to the Financial year ended 31st March 2023, the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the companies (accounts) Rule,2014 (" Indian GAAP” or "Previous GAAP").

The financial statement for the year ended 31 st March 2024 is the first set of Financial Statements prepared in accordance with the requirements of Ind AS 101 First time adoption of Indian Accounting Standards. Accordingly, the transition date to Ind AS is 01st April 2022.

The Financial Statements as at and for the year ended 31st March 2024, 31st March 2023 and 01st Aprii 2022 have been prepared after making suitable adjustments to the accounting heads from their Indian GAAP values following accounting policies and accounting policy choices (both mandatory exceptions and optional exemptions availed as per Ind AS 101) consistent with that used at the date of transition to ind AS (01 April 2022) and as per the presentation, accounting policies and grouping/classlfications including revised Schedule III disclosures followed as at and for the year ended 31st March 2024.

In addition to the adjustments carried herein, the Company has also made material restatement adjustments, if any, in accordance with SEBI Circular and Guidance Note Together these constitute the restated financial statements.

The impact of above to the equity as at 31st March 2024, 31st March 2023 and 1st April 2022 (Opening balance sheet date for financial statements) and on total comprehensive income for the years ended 31st March 2024, 31st March 2023, 31st March 2022 has been explained as under.

A. Optional exemptions on first-time adoption of Ind AS

Ind AS 101, First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the following exemptions.

i. Deemed cost for property, plant and equipment

Since there is no change in the functional currency, the Company has elected to continue with carrying value for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as its deemed cost at the date of transition after making adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets and investment properties. Accordingly the management has elected to measure all of its property, plant and equipment and intangible assets at their Indian GAAP carrying value.

ii. Leases

Accounting of lease liabilities would not arise since underlying assets are low value.

Hi.Designation of previously recognized financial instruments

Financial assets and financial liabilities are classified at fair value based on facts and circumstances as at the date of transition to Ind AS.

B. Mandatory Exemption on first-time adoption of Ind AS

i. Estimates

An entity's estimates in accordance with Ind AS as at date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (After adjustments to reflect any difference in accounting policies),unless there is objective evidence that those estimates were errors.

Ind AS estimates that, are consistent with the estimate as at the same date made in conformity with previous GAAP.

ii. Classification and measurement of financial assets :

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as at the date of transition Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

C. Explanation of transition to Ind AS :

An explanation of how the transition from Indian GAAP to Ind AS has affected the Company's financial position, financial performance and cash flow is set out in the following tables and notes that accompany the tables :

The reconciliations include-

i) Reconciliation of equity as at 31 st March 2023 and 01 st April 2022 ;

ii) Reconciliation of total comprehensive income for the year ended 31 st March 2023 and 01 st April 2022 ;

iii) Reconciliation of Cashflow for the year ended 31 st March 2023 and 01 st April 2022 ;

The company has been following Ind AS from 01 October 2023, therefore IGAAP numbers as at 31st Mach 2024 is not required. The interim financials as at 30th September 2023 has correctly factored necessary reconciliations.

Notes to the reconciliations •

A. income tax

Under Indian GAAP, deferred taxes are recognized using income statement approach i.e. reflecting the tax effects of timing differences between accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognized using balance sheet approach i.e. reflecting the tax effects of temporary differences between the carn/ing amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes using the income tax rates enacted or substantively enacted at reporting date. Further under Ind AS, income tax is recognized in the same statement in which underlying item is recorded. Such deferred tax has been restated, if any, on account of error.

B. Employee benefit expenses - actuarial gains anu losses and return on plan assets

Under Indian GAAP, actuarial gains and losses and return on plan assets on post-employment defined benefit plans are not recognized immediately in statement of profit and loss. Under Ind AS, remeasurements which comprise of actuarial gams and losses, return on plan assets and changes In the effect of asset ceiling, if any, with respect to postemployment defined benefit plans are recognized immediately in other comprehensive income (OCI). Further, remeasurements recognized in OCI are never reclassified to

C. Prior period adjustments

Under Indian GAAP, prior period items are included in determination of profit cr loss of ths period in which the item is discovered and are separately disclosed in the statement of profit and loss. Under Ind AS, 'material prior period items are corrected retrospectively by restating the comparative amounts for prior period presented in which the error occurred or if the error occurred before the earliest period presented by restating the opening balance sheet.