1.3.11 Provisions, Contingent Liabilities and Capital Commitments

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured with sufficient reliability. Information on contingent liability is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognized but disclosed when the inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

1.3.12 Fair Value measurement

Fair value is 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market which can be accessed by the Company for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

1.3.13 Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, the Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits and loans given are measured at the amortized cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A 'debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

• The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Debt instruments at Fair value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments excluding investments in subsidiary and associate companies. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses, impairment losses and other net gains and losses are recognized in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments TDSL decides to classify the same either as at FVTOCI or FVTPL. TDSL makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Company's Balance Sheet) when

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:

• The Company has transferred substantially all the risks and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and equity instruments (measured at FVTPL) are recognized in the Statement of Profit and Loss. Gains and losses in respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de-recognition. Gains or losses on equity instruments measured at FVOCI that are recognized and accumulated in OCI are not reclassified to profit or loss on derecognition.

1.3.14 Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Financial assets measured at fair value through other comprehensive income.

In case of other assets (listed as a) above, the company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

1.3.15 Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk is recognized in OCI. These gains/ losses are not subsequently transferred to profit or loss. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss.

Financial Liabilities at amortized cost

Financial liabilities classified and measured at amortized cost such as loans and borrowings are initially recognized at fair value, net of transaction cost incurred. After initial recognition, financial liabilities are subsequently measured at amortized cost using the Effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Derivative financial instruments

The Company uses derivative financial instruments to manage the commodity price risk and exposure on account of fluctuation in interest rate and foreign exchange rates. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value with changes being recognized in Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken through profit and loss.

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any differences between the proceeds (net of transaction costs) and the redemption amount is recognized in Profit or loss over the period of the borrowing using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration paid including any noncash asset transferred or liabilities assumed, is recognized in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability of at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statement for issue, not to demand payment as a consequence of the breach.

1.3.16 Borrowing Cost

Borrowing costs directly attributable to the construction or production of a qualifying asset are capitalized during the period of time that is required for the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

1.3.17 Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company, or the counterparty.

1.3.18 Taxes on Income Current and Deferred Tax

Current tax is the amount of tax payable determined in accordance with the applicable tax rates and provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net.

Current and deferred taxes relating to items directly recognized in reserves are recognized in reserves and not in the Statement of Profit and Loss.

Minimum Alternative Tax

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as deferred tax asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.3.19 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.3.20 Cash and Cash equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash on hand, deposit held at call with financial institution, other short term, highly liquid investments with

original maturities of 3 months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

1.3.21 Cash Flows

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

For the purpose of presentation in the statement of Cash Flow, cash and cash equivalent include cash on hand, deposits held at call with banks and financial institutions, other short term highly liquid investment with original maturity of 3 months or less that are readily convertible to the known amount of cash in which are subject to insignificant risk of change in value.

1.3.22 Segment Reporting

Operating segments are reported in consistent manner with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the Company.

Restructuring of credit facilities

Credit facilities from PNB were classified as sub-standard asset w.e.f. 29.12.2021. The company submitted proposal for restructuring of credit facilities. The restructuring proposal has been accepted by the lender during the F.Y. 2023-24. cut off date being 31.10.2021. Therefore, the classification of loans between current liabilities and non-current liabilities are based on repayment schedule as per restructuring package sanctioned by the tender.

Cash Credit

The outstanding amount as on cut off Date 31.10.2021 Rs 5081 Lacs at Rate of Interest(ROl) @ 9.05% is restructured and converted into Cash Credit limit of Rs 1950 Lacs @ 8.10%, Working capital term loan (WCTL.) of Rs 1910 Lacs @ 8.10% with repayment period of 10 years (including moratorium period of 12 months) and optionally convertible preference shares of Rs 1221 Lacs Further moratorium period of 12 Months allowed for repayment of Installment of WCTL.

OCPS

Optionally convertible preference shares of Rs 1221 Lacs are issued at a coupon rate ranging from 0.05% to 5% in different years with exit premium of Rs. 527 Lacs with redemption of preference shares over the period of 9 years.

Term Loan (Project Expansion)

Company has availed term loan from the lender for setting up of plant for manufacturing of value added dair products with outstanding amount of Rs. 546 Lacs as on cut off date. The outstanding amount is restructured into term loan of Rs 546 Lacs with moratorium period of 12 months repayable in 10 years with ROI @ of 8.10% p.a.

GECL 2

Company availed GECL loan from the lender with outstanding amount as on cutoff date of Rs 842 Lacs which is restrutured with moratorium of 12 months and repayable in 29 monthly installments with ROI @ MCLR 1 %.

COVID LOAN (CECF)

The Company had availed Covid-19 Emergency credit facility which was partially repaid.Outstanding Balance on cut off date was Rs 232 Lacs same is restrutured with moratorium period of 12 months with ROI @ 8.10% p.a.

Funded Interest Term loan (FITL 1 & 2)

FITL (TL) by way of funding of interest on WCTL of Rs 143 Lacs, CECF of Rs 17 Lacs, existing term loan of Rs 43 Lacs, GECL Rs 70 Lacs totaling Rs 274 Lacs being interest due from 01.11.2021 i.e. cut off date to implementation of restructuring plan.

FITL(CC) by way of funding of interest amount on interest in CC A/C and OCPS for Rs 153 Lacs for period from 01.11.2021 i.e. cut off date to date of implementation of restructuring plan. Interest on FITL Term loans is changeable @ 8.10% FITL is repayable in 10 years with a moratorium period of 12 months.

Loan from promoters

i) As per terms of restructuring approved by lenders, the promoters were required to bring promoter contribution amounting to Rs.208 Lacs in phased manner till 31.03.2023 in the form of unsecured loan. An amount of Rs. 208 Lacs has been brought by promoters as unsecured loan within stipulated period. As per Ind AS 32, contribution amount received is classified as compound instrument bifurcated into as debt of Rs.97.70 Lacs and Rs. 110.30 Lacs as other equity by discounting the amount @14% p.a. for a tenure of 10 years.

ii) The company was sanctioned term loan of Rs. 634 lacs for setting up of Dairy Whitener & Whole Milk Powder Plant. An amount of Rs. 569 Lacs was disbursed and further Rs. 60 lacs was stipulated in the restructuring proposal to be brought by the promoters which has been bought. As per Ind AS 32, contribution amount received is classified as compound instrument bifurcated into as debt of Rs. 17.76 Lacs and Rs. 42.24 Lacs as other equity by discounting the amount @14% p.a. for a tenure of 10 years.

15(b) Nature of security in respect of long term borrowings:

1) Term Loan from Banks:

(i) Term Loan from Bank for expansion project is term loan taken from Punjab National Bank. The loan is secured by way of Hypothecation of Plant & Machinery /Equipments and other fixed assets purchased/ proposed to be purchased/installed out of Bank loan of the Company.

(ii) Oustanding balance of CECF loan as on cut off date is restructured as term loan. The loan is secured by hypothecation of assets created out of loan and charge on entire cument assets of the company & personal guarantee of directors and others.

(iii) Working capital term loan is secured by way of Equitable Mortgage of Factory Land & Building & Hypothecation of Plant & Machinery.

(iv) The credit under GECL will rank second charge with the existing credit facilities in terms of cash flows (including repayments) and Primary & Secondary securities with charge on the assets financed under the Scheme.

(v) FITL-1 & FITL-2 are secured by way of Equitable Mortgage of Factory Land & Building & Hypothecation of Plant & Machinery.

2) Term Loans from

(i) Term Loan trom others includes Vehicle loan from BMW India Financial Services Private Limited and is secured by hypothecation of Vehicles.

3) Optionally convertible Preference shares(OCPS)

OCPS along with exit premium are secured by way of Equitable Mortgage of Factory Land & Building & Hypothecation of Plant & Machinery.

4) Restructured credit facilities from banks aggregating to 7188 Lacs are secured by personal guarantee of Mr. Atul Mehra (Director), Mrs. Sonia Mehra (Promoter) and corporate guarantee by M/s Cima Foods Private Ltd. (a promoter group company). During the year banks has invoked its right against 61,29,000 shares earlier held by Mrs. Sonia Mehra (promoter of the company) which were pledged with bank as security.

Contingencies

(i) Long term Loans and Advance include payment made to Uttar Pradesh State Industrial Development Corp. (UPSIDC) of Rs. 49,26,748 towards instalment of Premuims, intereset and other charges on four lease hold plots of land alloted. UPSIDC has made demand against dues towards instalment of premuim, interest and other charges against these plots. The Company has contested these demand and matter will be settled with UPSIDC on final execution of lease deed and possession of plots. As per the latest notices received from the UPSIDC , there is a total demand of Rs. 1,29,92,799/- against these plots. UPSIDC has further given notice for cancellatioin of lease of these plots. Necessary action has been taken for the restoration of the allotment of the plots by the company. Liability if any will be paid on final settlement with UPSIDC.

(ii) Long term loans and advances include payments made to UPSIDA of Rs. 203.57 Lakhs towards instalment of premium and other charges for five lese hold plots of land alloted to the company. UPSIDA has arbirarily cancelle allotment ofplots. The company has taken appropriate steps for revocation of such cancellation and restoration of such allotments. Liability, if any, will be paid to UPSIDA on final settlement.

(iii) Long term Loans and Advance include payment made to Uttar Pradesh State Industrial Development Corporation. (UPSIDC)of Rs. 1,54,29,790/- towards instalment of premuim, interest and other charges against Plot D-5, UPSIDC Industrial Area, Jainpur, Kanpur Dehat UP allotted by UPSIDC. UPSIDC has given notice for cancellation of the plot due to delay in implementation of the Project for which the plot was allotted. UPSIDC has further made demand of Rs. 42,68,853/- for restoration levy. Necessary action has been taken by the Company for restoration of the allotment of the plot. Company has taken effective steps towards implementation of the Project for this allotment was made.Liability if any shall be paid on final settlement with UPSIDC.

(iv) Additionally, the company is facing investigations with Income tax authorities and CGST Preventive, for which amount cannot be quantified as on the date of financials.

(v) Commitments:

1. Estimated of Contracts to be executed on Capital Account and not provided for: Rs. NIL (Prev Year NIL)

2. Corporate Guarantee given by the Company : Rs. NIL (Prev Year NIL)

33 Impact of COVID- 19 pandemic & subsequent restructuring of credit facilities by lenders

(i) The company is engaged in the business of procurement and processing of milk and manufacturing and sale of Ghee, Butter, Milk Powder, packaged milk and other milk products. These are edible items for human consumption and have limited shelf life and are perishable in nature. In earlier years due to Covid-19 and other factors beyond the control of the management there was material adverse impact on the operations & financials of the Company. The Lender had restructured their dues and effect thereof was incorporated in the accounts. Due to Continuous losses in the previous year, previous quarter and this quarter, the amounts payable to the lenders as per restructuring plan have also become overdue for payment. The lenders have initiated recovery proceedings against the company under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) by moving to the National Company Law Tribunal (NCLT) and the Debt Recovery Tribunal (DRT). The Company has been unable to finalize renegotiations or secure alternative funding. The management of the company is actively engaged with the lenders to develop a revival/ settlement plan.

(ii) All the company’s bank accounts have been frozen by the banks since November 2023. This action has severely restricted the company’s ability to carry out normal banking transactions, impacting its liquidity position and day-to-day operations. The company is routing all its banking transactions through third parties (including Related parties).

(iii) Due to accumulation of stocks with dealers and distributors and other economic condition the recovery in trade receivables against outstanding trade receivable is slow. Debtors more than 1 year are of Rs. 3767.79 Lakhs.

Based on various factors such as past operations follow up with customers and confirmations obtained from customers a provision of Rs. 2582.26 Lacs (compared to Rs 3.25 Lacs in previous quarter and the cumulative provision of 3839.83 Lacs as of quarter-end) has been recognized for expected credit loss and doubtful receivables from customer.

(iv) During the third quarter, the bank appointed ASM Auditor, whose report dated October 26, 2023, concluded that the old stock in inventory is deemed unfit for human consumption and should be disposed of. Following submission of samples for quality retesting to a third-party laboratory and based on their findings, management has decided to write off inventory amounting to Rs. 2781.05 Lakhs in the books of accounts. Additionally, a deferred tax asset of Rs. 773.69 Lakhs has been recognized in accordance with Ind AS 12 - Income Taxes, reflecting the loss incurred from the inventory write-off.

34 Appropriateness of Going Concern basis

The net-worth of the company has become negative (due to significant write off inventory & provisioning ECL), however, the management has planned to implement various cost saving measures to improve the operational efficiency of the plant and is in the process of mobilizing resources to continue the efficient manufacturing operations of the company. Furthermore, there has been a significant decline in the spread of pandemic. Considering the improved situation, the steps initiated by the management, the support provided by the lender, expected conclusion of ongoing negotiations with the lenders for revival/ settlement plan, and the infusion of funds by the promoters, the management is of the view that the operations of the company shall continue in near foreseeable future with improved operational efficiency. Therefore, these financial statements are continued to be presented on going concern basis.

35 Capital management

The company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the company.

The company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other longterm/ short-term borrowings. The compan's policy is aimed at combination of short-term and long-term borrowings.

The company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the company.

Total borrowings includes all long and short-term borrowings as disclosed in notes to the financial statements.

37 Financial instruments

Calculation of Fair Values

a) The fair values of investment in Unquoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

b) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.

d) Cash and cash equivalents, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

38 Financial Risk Management objectives

Company' s principal financial liabilites sempose of loan from banks and financial insututions, and trade payables. The main purpose of the financial Liabilities is to raise finance for the Company's operations. The Company fras vanouft finaneial assets such as trade receivables, cash term depesits. which anse dircetly from its operations

Man tisks ansing from Compam's tinancial instrements are foreign currency nsk, credit risk, market risk. interest rate risk and liquidity ri lowa of Daceters rese and agree polieres for managung cuch of these risks

(a) Credit Risk

Credit risk is the risk of financial loss to the Company. If a customer or counterparty to financial instrumest fails to meet its contractual obligation and uses principaly from the Company' s trade and other receivables, cash and cash equivalents and other bank balances. The instruments exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

The company consult the probability of default upon financial recognition of assort and whether there has been a significant increases in credit risk.

The agening of trade receivables is given below-

Other financial assets

The Compans maintains exposure in cash and cash equivalents, term deposits with banks.

The Company held cash and cash equivalents of Rs. 13.12 Lakhs as at March 31, 2024 (March 31, 2023: Rs. 25.45 Lakhs), Cash and cash equivalents are held with reputable and credit-worthy banks.

Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(b) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk: Currency risk, interest rate risk and price risk.

(c) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a 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 primarily to the Company's borrowings obligation with floating interest rates.

(di Liquidity risk:

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or ata reasonable price. In addition, processes and policies related to such risks are overseen by senior management. Management monitoRs.the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.

39 Expenditure on Corporate Social Responsibility

The company is not required to spend any amount towards Corporate Social Responsibility as per Section 135 of the Act since there is no average profit in the preceding three financial years calculated as per the provisions of the Act.

40 Segment information Business Segment

The Company has only one reportable segment i.e. Manufacturing and sale of Dairy Products, therefore the requirement of segment report is not applicable.

Revenue from major customers

The Company is not reliant on revenues from transactions with any single customer.

41 The following additional information (other than what is already disclosed elsewhere) is disclosed in terms of amendments dated March 24, 2021 in Schedule III to the Companies Act 2013 with effect from 01 April 2021:-

a) The title deeds of Immovable properties of the Company are held in the name of the Company.

b) There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

c) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

d) There is no scheme of arrangement which has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

e) There were no transaction that had not been recorded in the books of accounts and surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

f) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

g) The Company does not have borrowings from banks or financial institutions on the basis of security of current assets.

h) The Company has not receivedany funds from any other person(s) or entity(ies), including foreign entities(Intermediaries)with the understanding (whether recorded in writing or otherwise)thatthe Company shall directly or indirectly lend or investin other persons or entities identifiedin any mannerwhatsoeverbyor on behalfof the Funding Party(Ultimate Beneficiaries)or provideany guarantee, securityorthe liketo or on behalfof the Ultimate Beneficiaries.

i) The Company has no charges or satisfaction to be registered which is yet to be registered with the Register of Companies beyond the statutory period.

j) The Company has not entered into any transactions with the companies struck off under section 248 of the Act or section 560 of the Companies Act, 1956.

k) The fairvalueofinvestmentproperty(as measuredfor disclosurepurposes in the financialstatements)isbased on the valuationbya registeredvalueras definedunder rule2 ofCompanies (RegisteredValuersandValuation) Rules, 2017.

l) The Company has complied with the number of layers prescribed under section 2(87) of the Act.

m) The Company has not revalued any of its property, plant and equipment (including right of use assets) and intangible assets.

n) Financial Ratios:

42 Figures of Previous year have been regrouped wherever found necessary to make them comparable with that of current year and to comply with Schedule III of the Companies Act,2013

For AKGSR & Co. For and on behalf of the Board

Chartered Accountants FRN:027579N

Akhil Mittal Atul Mehra Mahendra Kumar Singh

Partner Chairman & Whole time director Director

M. No. 518556 DIN: 00811607 DIN: 02727150

UDIN:

Rakesh Kumar Yadav Shamshad Alam

Place: Delhi Chief Financial Officer Company Secretary

Date: 06-07-2024 M. No. 66754

Place: Kanpur Date: 06-07-2024