4.1 Method of Valuation of inventory for all above categories of inventory is lower of cost or net realizable value

4.2 Refer note 12.1 for the purpose of Inventories offered as security.

4.3. Note on Inventory lying at third party and amount receivable thereof

The Company lias outstanding receivables from Naaptol amounting to Rs. 113.12 (113.12) Lacs. In addition, inventory of Utensils, lying at their warehouse amounts to Rs. 105*85 (105.85) Lacs. Naaptol has appointed arbitrator to resolve the dispute between the company and Naaptol. Against this the company has approached the Hon'ble High Court at Mumbai, to rescind the appointment of arbitrator appointed by Naaptol and to seek appointment of independent arbitrator by the court. Since the matter is subject to litigation, the management does not expect to realise the amount within twelve months from balance sheet date. Amount receivable from Naaptol of Rs. 113.12 (113.12) Lacs is classified as Non-Current Trade Receivables. Likewise non-moving inventory amounting to Rs. 105.85 (105.85) Lacs lying at their warehouse is classified as Other Non-Current Asset. The company is confident of full recovery but as a matter of prudence thexowftany has made a provision of 40% (30%) on above.

Trade receivables are valued considering provision for allowance using expected credit Joss method-In addition to the historical pattern or credit losses, the Company has considered the likelihood of increased credit risks, subsequent recoveries, Insurance and consequential default. This assessment is considering the nature of industries, impact immediately seen In the demand outlook of these Industries and the financial strength of the customers in respect of whom amounts are receivable. Allowance for doubtful debts In the Standalone Statement of Profit and Loss for the year ended as on 31,03,2024 is Rs. 26-65 (akhs and Rs. 86.0t takhs for the year ended as on 31.03,2023

Note 11 : Other equity

Refer to the statement of changes in equity for movement in Other equity.

Nature and purpose of reserves General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Security premium

The amount received In excess of face value of the equity shares, in relation to issuance of equity, is recognised in Securities Premium Reserve.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to the shareholders.

Equity instruments through OCI

This represents the cumulative gains and losses arising on the Fair valuation of equity Instruments measured at fair value through other comprehensive income that have been recognized in other comprehensive income.

Capital Reserve

This represents gain on money forfeited due non - payment of balance call amount after following due procedures.

12.1 Loans referred above are to the extent of:

(a) Loans from various Banks, NBFC and Financial Institution are as in shown in anncxure.

(b) Loan from Directors is repayable after 31-03-2025 bearing interest at 8% (8%) p.a.

(c) Loan from Bodies Corporate is repayable after 31-03-2025 bearing interest at 8% (8%) p.a.

. Note 13.1: The disclosure under Micro, small and medium Enterprise Development Act, 2006 in respect of the amounts payable to such enterprises as at 31st March, 2024 has been made in Lite financial statements based on information received and on the basis of such information the amount due to small and medium enterprises is NIL as on 31st March, 2024, No interest is paid or payable to such enterpises due to disputes. Auditors have relied on the same.

B. Defined benefit plans:

The Company has following post employment benefits which are In the nature of denned benefit plans:

(a) Gratuity

The Company operates gratuity plan wherein every employee Is entitled to the benefit as per scheme of the Company, for each completed year of service. The benefit vests only after five years of continuous service, except in case of death/disability of employee during service. The vested benefit is payable on separation from the Company, on retirement, death or termination.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may he correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at tire end of the reporting period) lias been applied while calculating the defined benefit liability recognised In the Standalone Balance Sheet.

The methods and types of assumptions used In preparing the sensitivity analysis did not change as compared to the prior year.

Note 29 : Segment information

The Company has presented segment information in the consolidated financial statements which are presented in this same annual report. Accordingly, in terms of Ind AS 108 'Operating segments', no disclosures relating to segments are presented In these standalone financial

statements.

Note 31 : 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:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, In the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

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.

A fair value measurement of a non-financial asset Lakes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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:

a) Level 1 -- This includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period.

b) Level 2 — The fair value of financial Instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

c) Level 3 — If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3

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

External valuers are involved, wherever required, for valuation of significant assets, such as properties, unquoted financial assets and significant liabilities. Involvement of external valuers is decided upon by the Company after discussion with and approval by the Company's management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The Company, after discussions with its external valuers, determines which valuation techniques and inputs to use for each case.

At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company's accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable,

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. This note summarises accounting policy for fair value measurement. Other fair value related disclosures are given in the relevant notes.

The management assessed that cash and cash equivalents, trade receivables, other financial assets, trade payables, working capital loan and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

There were no transfers between any levels during the year.

Movements in Level 3 financial instruments measured at fail value

The following tables show a reconciliation of the opening and dosing amounts of Level 3 financial assets and liabilities which are recorded at fair value. Transfers from Level 3 to Level 2 occur when the market for some securities became more liquid, which eliminates the need for the previously required significant unobservable valuation inputs. Since the transfer, these instruments have been valued using valuation models incorporating observable market inputs. Transfers into Level 3 reflect changes in market conditions as a result of which instruments become less liquid. Therefore, the Company requires significant unobservable inputs to calculate their fair value.

The following tables show the reconciliation of the opening and closing amounts nf Level 3 financial assets and liabilities measured at fair value:

Note 32 : Financial risk management

The Company's principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities. The loans and borrowings are primarily taken to finance and support the Company's operations. The Company's principal financial assets include Investments, loans, cash and cash equivalents, trade receivables and

other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies arid risk objectives. The risk management system is relevant to business reality, pragmatic and simple and involves the following:

Risk identification and definition: Focuses on Identifying relevant risks, creating / updating dear definitions to pnsureundlsputed understanding along with details of the underlying root causes / conlrihutrng factors.

Risk classification: Focuses on understanding the various Impacts of risks and the level of influence on its root causes. This Involves Identifying various processes generating the root causes and clear understanding of risk interrelationships.

Risk assessment and prioritisation: Focuses on determining risk priority and risk ownership for critical risks. This Involves assessment of the various Impacts taking into consideration risk appetite and existing mitigation controls.

Risk mitigation: Focuses on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a dear definition of actions, responsibilities and milestones.

Risk reporting and monitoring: Focuses on providing to the Board periodic Information on risk profile evolution and mitigation plans,

1. 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 nsk: interest rate risk, currency risk and other price nsk, such as equity price risk or Net assset value ("MAV”) risk in case of Investment in mutual funds. Financial instruments affected by market risk include Investments, trade receivables, trade payables, loans and borrowings and deposes.

The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023.

The sensitivity of the relevant profit and loss Item is the effect of the assumed changes In respective market risks. This Is based on the financial assets and financial liabilities held at March 3i, 2024 and March 31, 2D23,

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 long-term debt obligations with floating interest rates.

The assumed movement In basis points for the Interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher

volatility than In prior years.

Foreign currency risk

The Company has International operations and Is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and recognised financial assets and liabilities denominated In a currency that Is not its functional currency (Rs). The risk also Includes highly probable foreign currency cash (lows

Foreign currency sensitivlty

The following tables demonstrate the sensitivity to a reasonably possible change USD exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company's exposure to foreign currency changes for all other currencies Is not material.

2 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial Instrument or customer contract, loading to a financial loss. The Company Is exposed to credit risk from its operating activities (primarily trade receivables) and from Its financing activities. Including deposits with banks and financial Institutions and foreign exchange transactions.

Trade receivables

Customer credit risk is managed by the Company's internal policies, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an credit racing scorecard and credit limits are defined In accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by tetters of credit. As at March 31, 2024, there were 8 customers with balances greater than Rs.100 lakhs accounting for more than 89.64% of the total amounts receivables. As at March 31, 2023 there were 7 customers with balances greater than Rs.tOO lakhs accounting for more than 88.14% of the total amounts receivables.

The Company evaluates the concentration of risk with respect to trade receivables as low, as Its customers are located in several jurisdictions and industries and operate in largely independent markets.

Trade receivables are non-interest bearing and are generally on 14 days to 180 days credit term. Credit limits are established for all customers based on internal rating criteria. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

3 Liquidity Risk

The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that Is generated from operations. It believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations Is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low

The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Standalone

Balance Sheet date

Note 33 : Capital Management

The primary objective of capital management is to maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value, safeguard business continuity and support the growth of the Company. It determines the capital requirement based on annual operating plans and long-term and other strategic investment plans.

The Company manages its capital structure and makes ad just mien ts to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the.capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or Issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings less cash and cash equivalents.

In order to achieve this overall objective, the Company's 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 would permit the bank to Immediately call loans and borrowings. There have been no broaches In the financial covenants of any Interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31, 2023

Note 1: Change in current ratio is due to addition in fixed asset which is funded by net owned fund.

Note 2: During the financial year under consideration there was high volatility in raw material prices in the industry which was not converted m equal margins in the revenue because of uneven demands. Due to the same the net profit margins and returns have decreased which has affected the company's profitability.

Note 3: Company's working capital management Is more efficient and aim to increase the number of "turns".

(Average Trade Payables/Expenses in days)

[Expenses: Total Expenses - Finance Cost - Depreciation and Amortisation Expense - Employee Benefit Expenses in respect of Retirement Benefits - Other expenses with respect to Royalty, Rates & Taxes, Prior Period Exps, Bad-Debts, Provision for Doubtful Debts & Advances, Provision for Impairment and Foreign Exchange Gain/Loss, Sitting Fees of Directors and Interest on Statutory Dues)

0 ’

working capital/Tumover in days

(Working capital: Current assets - Current liabilities)

(Turnover: Revenue from operations]

(Net profit after tax/Turnover)

[Turnover: Revenue from operations]

([.'.1511/Average capital employed)

(Capital Employed: Equity share capital Other equity r Non current borrowings r Current borrowings]

(EBIT: Profit before taxes /[-} Exceptional items Net finance charges

((Net gain/(loss) on sale fair value changes of mutual funds)/Average investmerjiiuudjin current investments)

[0/ /At

/ O / \ ry* 1