12) Provision and Contingent Liabilities

Provisions for Contingencies / Contingent liabilities are recognized / disclosed after
evaluation of facts and legal aspects of the matter involved, in line with IND AS 37 on
Provisions, Contingent Liabilities and Contingent Assets. Provisions are recognized
when the Company has a present obligation (legal/constructive) and on management
judgment as a result of a past event, for which it is probable that a cash outflow will be
required, and a reliable estimate can be made of the amount of the obligation. As the
timing of outflow of resources is uncertain, being dependent upon the outcome of the
future proceedings, these provisions are not discounted to their present value.

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not require an outflow of resources ,
When there is a possible obligation or a present obligation in respect of which
likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in financial statements since this may result in the
recognition of income that may never be accrued / realized.

13) Impairment

(I) Financial Assets (Other than at fair value)

The Company assesses on each date of the Balance sheet whether a financial asset or a
group of financial assets is impaired. IND AS 109 requires expected credit losses to be
measured through a loss allowance. The Company recognizes lifetime expected losses
for all contract assets and / or all trade receivables that do not constitute a financing
transaction. For all other financial assets, expected credit losses are measured at an
amount equal to the 12 month expected credit losses or at an amount equal to the
lifetime expected credit losses if the credit risk on the financial asset has increased
significantly since initial recognition.

(II) Non-Financial Assets
Tangible and Intangible Assets

Property, plant and equipment and intangible assets with finite life are evaluated for
recoverability whenever there is any indication that their carrying amounts may not be
recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair
value less cost to sell and value-in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the cash
generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or CGU) is reduced to its recoverable
amount. An impairment loss is recognized in the statement of profit and loss.

14) Earning Per Share

Basic earnings per share is computed by dividing the net profit for the period
attributable to the equity shareholders by the weighted average number of equities
shares outstanding during the period. For the purpose of calculation diluted earnings
per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, if any.

Note:-

In past the company used to manufacture and sell 'Bidis'

The Bidi's manufactured by the company were sold to Traders / Exporters, who used to export them to various countries.
Bidi's sold to some such Traders / Exporters were exported by them to USA.

As per the prevailing law in USA, the responsibility of depositing the amount in Escrow Deposit Fund (On account of sales
of tobacco products in that country) was of the manufacturer of tobacco products.

Accordingly, on the basis of demand raised against the company for non-fulfillment of this requirement - a sum of
Rs.289.04Lacs is provided for in the books of the company upto 31st March 2025. (31st March 2024 - Rs 281.59 Lacs)
(Refer Note No. 14)

During the current year no any fresh demand was made against the company. The current year figure appearing in Statement
of Profit and Loss Rs.7.46 Lacs represents foreign exchange loss on restatement of outstanding liability of escrow fund
demand provision already made in earlier years (Previous year : Rs.3.43 Lacs)

Note : 38 As per Information given,the company does not have relationship with any company which have been
struck-off from the register of Registar of Companies (ROC).

Note : 39 The company has not traded or Invested in Crypto Currency or Virtual Currency during the financial
year.

Note : 40 The company has complied with requirements of number of layers prescribed under clauses (87) of
section 2 of the Act read with Companies(Resctrictions on No of layers) Rule,2017.

Note: 41 The balances of Creditors and Debtors appearing in the balance sheet are subject to balance
confirmation/reconciliation at the year end.The management is in the process of obtaining the respective
confirmations in due course.However,It is informed that the reconciliation is not expected to result in any
material adjustment in stated balances.

Note: 42 Figures of the previous year have been regrouped/rearrenged wherever necessary to conform to the
current year's presentations.