(Q) Provisions, Contingent Liabilities and Contingent
Assets:

Provisions involving a substantial degree of estimation
in measurement are recognised when there is a present
obligation as a result of past events and it is probable
that there will be an outflow of resources. Contingent
Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor
disclosed in the financial statements.

Security and Salient Terms:

(a) Rupee loans of INR 3868.02 Lakhs (Previous Year INR 2687.74 Lakhs) exclusive charge by way of hypothecation on
entire stock of Finished goods, Raw material, Stock in trade and Book debts of the Company, present and future. Exclusive
charge by way of Hypothecation of Plant & Machinery of the Company. Corporate Guarantee of Asian Distributors Private
Limited to the extent of market value of collateral proposed to mortgage.

(b) Rupee loans of INR 637.50 Lakhs (Previous Year INR 675.00 Lakhs) fresh additional working capital term loan under
BGECL 1.0 extension scheme 100% guaranteed by NCGTC. Principal to be repaid in 36 monthly installment of INR18.75
Lakhs each plus interest commencing after 24 months from the date of first disbursement.

(c) Rupee loans of INR 314.00 Lakhs (Previous Year INR 700.00 Lakhs) fresh additional packing credit loan

(d) The rates of interest for rupee loan ranges from 9.70% p.a. to 12% p.a.

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the
year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for
Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the
employees in the year of retirement / cessation of employment.

Details under Ind AS-19, to the extent applicable is furnished below:

36 fair VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES:

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term
borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial
instruments.

The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits
are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits
and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not
significant and therefore the impact of fair value is not considered for above disclosure.

37 fair VALUE HIERARCHY:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
*Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to
approximate their fair values due to their short term nature. They are classified as level 3 fair values in the fair value hierarchy
due to the inclusion of unobservable inputs including own and counterparty credit risk.

~| FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The
Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash
flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial
instruments.

(i) 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 exposure to the risk of changes in market interest rates relates
primarily to the Company’s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import
of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward
contracts.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and
also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the
carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial
assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past
experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions
and retaining sufficient balances in bank accounts required to meet a month’s operational costs. The Management
reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash
in bank accounts. The Company does not foresee any credit risks on deposits with regulatory authorities.

(C') Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due.

39 CAPITAL MANAGEMENT:

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise
the shareholder value and to ensure the Company’s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total
debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the
capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.

~| ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE
COMPANIES ACT 2013

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

(ii) The Comapny does not have any transactions with Companies struck off.

(iii) The Company has not revalued its property, plant and equipmet (including right-of-use assets) or intangible assets or
both during the current or previous year.

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

(v) 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 Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has 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 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.

(vii) The Company has 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 has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts.

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

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

43 the financial statements are standalone financial statements hence disclosure requirement for

CHARGES NOT YET REGISTERED AND RATIO ANALYSIS IS NOT REQUIRED.

~| PREVIOUS YEAR FIGURES HAVE BEEN REGROUPED/ RECLASSIFIED TO CONFIRM PRESENTATION AS PER IND AS AS
REQUIRED BY SCHEDULE III OF THE ACT.

As per our attached report of even date For and on behalf of Board of Directors

For M/s. Valawat & Associates

Chartered Accountants

Firm Registration No. 003623C

Ravinder Chander Prem

Jinendra Jain Managing Director

Partner DIN: 07771465

Membership No. 072995

Pankaj Kumar Santhosh Kumar

Place: Mumbai Chief Financial Officer Executive Director

Date : May 23, 2025 DIN:08686131