31. Additional disclosure in relation to borrowings (Non-current and current financial liabilities) -

a. Terms of secured cash credit facilities availed from banks and nature of security -

Cash credit limits availed from Union Bank of India is carrying floating rate of interest at 9.55% p.a. as on March 31, 2025 and 9.55 % p.a. as on March 31, 2024. Facility is secured by hypothecation of inventories and trade receivables. Property, plant and equipment situated at Durga Dairy unit, Nunna is given as collateral security. Cash credit facility is also guaranteed by managing director in his personal capacity.

b. Terms of repayment of secured term loan from banks and nature of security

Term loan taken from Union Bank of India is repayable in 80 equal monthly instalments (excluding interest) of Rs. 11.75 lakhs each. Term loan carries floating rate of 9.55 % p. a. as on March 31, 2025 and 9.55% p.a. as on March 31, 2024. Repayment of term loan commences from April 2024 and ends on November 2031. The term loan is secured by exclusive charge on Durga Dairy Units, Nunna and the proposed assets to be acquired with the term loan availed. Additionally, term loan is guaranteed by managing director in his personal capacity. (As per the request letter for extension of the moratorium period as submitted to the bank).

c. Terms of repayment of secured vehicle loan from banks and nature of security

Vehicle loan taken from Union Bank of India is repayable in 36 equal monthly instalments (including interest) of Rs.0.94 lakhs each. Vehicle loan carries floating rate of 9.70% p. a. as on March 31, 2025 and as on March 31, 2024. Repayment of vehicle loan commences from September 2022 and ends on August 2025. The vehicle loan is secured by vehicle purchased with their finance.

32. Additional disclosure in relation to revenue from operations -

a. Disaggregated revenue information: The table below presents disaggregated revenue from contact with customers for the year ended March 31, 2025 and March 31, 2024. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other

Note 1: The amounts receivable from customers become due after expiry of credit period which on an average is from 03 days to 30 days (Previous year: from 03 days to 30 days). There is no significant financing component in any transaction with the customers.

Note 2: The Company does not have any remaining performance obligation as contracts entered for sale of products are for a shorter duration. There are no contracts for sale of services wherein, performance obligation is unsatisfied to which transaction price has been allocated.

Foot note: The Company does not expect any reimbursements in respect of the above contingent liabilities. It is not practicable to estimate the timing of the cash outflows, if any, in respect of matters pending appellate proceedings. The Management believes that the

ultimate outcome of appellate proceedings will not have a material adverse effect on the Company's financial position and result of operations.

36. During the year earlier years, the Company has given Guarantee of Rs. 1,000.00 lakhs to IDBI Bank for various credit facilities availed by Virat Crane Bottling Limited. During the financial year 2023-24, the Company honoured Rs. 1,339.73 lakhs under this Corporate Guarantee. Durga Dairy Limited before merger and Virat Crane Industries before merger have pledged their investments in the Equity shares totalling to 35,81,300 equity shares (Durga Dairy Limited - 16,62,900 & Virat Crane Industries Limited - 19,18,400) of Virat Crane Agri tech Limited to IDBI for the loan granted by IDBI to Virat Crane Agri Tech Limited vide their agreement for pledge of shares dated 19-04-2001 for Rs. 177.30 Lakhs term loan sanctioned to Virat Crane Agri Tech Limited. The same is receivable from Virat Crane Bottling Limited. The amount honoured and receivable from Virat Crane Bottling Limited is disclosed in Note 12 as “Receivable against Corporate Guarantee honoured”.

37. During the financial year 2023-24, the company took legal action against the proprietor of the cold storage and the in-charge of Sree Lakshmi Swamy Frozen Foods for not releasing goods needed for the production of finished goods as per the agreement with them for storing the goods. As of the balance sheet date, the inventory valuation of Rs. 475.41 Lakhs is held in this godown. Management is taking necessary stringent actions, and the process of releasing the goods from this godown is under way as of the balance sheet date. Due to the ongoing release of goods, no provision for impairment has been made for the year.

40. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (as amended) to whom the Company has dues on account of Principal amount together with interest and accordingly no additional disclosures have been made. The ministry of micro, small and medium enterprise 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. This has been relied upon by the auditors.

41. Balances in personnel accounts of various parties are subject to confirmation by and reconciliation with the said parties. In the opinion of the management, current assets, loans and advances have a value on realization in the ordinary course of business equal to the value at which they are stated.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, trade payables and short-term borrowings at

carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short-term nature.

Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are disclosed in Note 2.

43. Financial risk management framework -

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established a Risk Management Framework which is reviewed and monitored by the Risk Management Committee. The Committee reports regularly to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate limits and controls and to monitor risks and adherence to limits. The Company, through its training and established procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’ s activities expose it to Credit risk and Liquidity risk.

A. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Based on the overall credit worthiness of Receivables coupled with their past track record, Company expects No/Minimum risk with regard to its outstanding receivables. Also, there is a mechanism in place to periodically track the outstanding amount and assess the same with regard to its realisation. Company expects that all the debtors will be realised in full, and accordingly, no provision has been made in the books of account for doubt receivables.

B. Liquidity Risk

The Company’s principal sources of liquidity are cash and cash equivalents, working capital facility with banks and the cash flows that are generated from operations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring, forecasting and actual cash flow and by matching the maturity profiles of financial assets and liabilities.

44. Capital management -

Company’s Capital Management objectives are to:

• Ensure the company’s ability to continue as a going concern

• Provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

For the purpose of the Company’ s Capital Management, capital includes issued capital and all other equity reserves. Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of financial covenants.

In order to achieve this overall objective, the Companies 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. Breaches in meeting the financial covenants, in certain cases, may permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year and previous year. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024.

Dividend to shareholders - The management has not recommended any dividend during the current financial year and previous financial year.

45. Disclosure in respect of Corporate Social Responsibility under Section 135 of Act and Rules made thereon -

During the year, the Company has spent Rs. 18.65 lakhs (March 31, 2024: Rs. 16.50 lakhs) towards various schemes of corporate social responsibility as prescribed under section 135 of the Act. The details are:

As per Section 135 of the Act, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are promoting education, adoption of schools, medical and other social projects. All these activities are covered under Schedule VII Act. The Company has spent an amount of Rs. 18.65 Lakhs (March 31, 2024: Rs. 16.50 Lakhs) towards CSR activities based on the recommendations of CSR Committee constituted by the Board. Expenses incurred on CSR activities are charged to the Statement of Profit and Loss under ‘Other Expenses’.

48. Disclosure of additional regulatory information in accordance with Paragraph 6(L) of General instructions for preparation of Balance Sheet of Division II of Schedule III of the Act -

i. Title deeds of all immovable properties disclosed in Property, plant and equipment are held in the name of the Company.

ii. The company does not have investment properties. Hence fair value of investment properties as per report issued by registered valuer is not applicable to the Company for the year.

iii. The Company has not revalued its Property, Plant and Equipment.

iv. The Company has not revalued its intangible assets (goodwill).

a. There is no capital expenditure whose completion is overdue when compared to its original plan either as on March 31, 2025 and March 31, 2024.

vii. The Company has not made any expenditure towards intangible assets under development.

viii. The Company does not hold any benami properties. No proceeding initiated under The Benami Transactions (Prohibition) Act, 1988 (as amended) and rules made thereunder against the Company.

ix. The Company has borrowings from bank on the basis of security of current assets and the periodical revised statement of quarterly returns and statements of current assets filed with bank are in agreement with the books of account for the year ended on March 31, 2025 and March 31, 2024.

x. The Company has not been declared as wilful defaulter by any banks, financial institutions or other lenders.

xi. The Company has not entered any transaction with struck of companies either in the current year or in the previous year.

xii. During the current year and previous year, there are no delays in filing of charge and satisfaction of charges.

xiii. The Company has not made any investment in associates, subsidiaries or joint ventures either in current year or in the previous year.

Reason for variance in financial ratios -

a. Debt service coverage ratio, return on equity ratio, return on capital employed and net profit ratio are decreased mainly due to increase of cost of raw materials and other non-operating expenses for the year.

b. Inventory turnover ratio is increased mainly due to increase in sales and decrease of inventory for the year.

c. Trade payables ratio is increased mainly due to increase of average trade payables for the year.

xv. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

xvi. Utilisation of borrowed funds and share premium

The Company has 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 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.

The Company has not received any funds 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 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

49. The Company does not have 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 (as amended) (‘the IT Act”) (such as, search or survey or any other relevant provisions of the IT Act. Hence specific disclosure is not given for the year ended on March 31, 2025 and March 31, 2024.

50. The Company has not traded or invested in crypto currency or virtual currency during the current or previous financial year.

51. Previous year numbers have been regrouped or reclassified where necessary.