4.15 Provisions. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation (legal or constructive)
as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but disclosed in
the notes. Contigent assets is neither recongnised nor disclosed in the financial statement.

Provisions and contingencies

a) Provisions

• Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and 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.

If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate.

Unwinding of the discount is recognised in the Statement ofProfit and Loss as a finance cost. Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

b) Contingencies

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the
amount cannot be made. Information on contingent liabilities is disclosed in the Notes to the Financial Statements.

• Contingent assets are not recognised in the books of the accounts and are not disclosed in the notes. However, when the realisation of income is
virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset and the corresponding income is booked
in the Statement of Profit and Loss.

4.16 Income taxes

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax
rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and
liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related defferred income tax assets is
realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally
forceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT
credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax
during the specified period.

4.17 Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank, deposits held at call with banks.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term deposits, having maturity less than 3
months.

Other bank balances include FDRs with government department which are not readily available.

4.18 Financial instruments - initial recognition, subsequent measurement and impairment

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.

a. Financial Assets

Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair value through Profit or Loss,
depending on the judgment of the management for managing those financial assets and the assets' contractual cash flow characteristics.

• Subsequent measurements of financial assets are dependent on initial categorisation. For impairment purposes, financial assets are assessed
individually.

De-recognition of financial Asset

A financial asset is primarily derecognised (i.e. removed from the 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 (a) the Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.

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

Trade receivables:

• A receivable is classified as a 'trade receivable' if it is in respect to the amount due from customers on account of goods sold or services
rendered in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost , less expected credit loss if any.

• Impairment is made for the expected credit losses. The estimated impairment losses are presented as a deduction from the value of trade
receivables and the impairment losses are recognised in the Statement of Profit and Loss under "Other expenses".

• Subsequent changes in assessment of impairment are recognised in ECL and the change in impairment losses are recognised in the Statement of
Profit and Loss under "Other Expenses".

• Individual receivables which are known to be uncollectible are written offby reducing the carrying amount of trade receivables and the amount
of the loss is recognised in the Statement of Profit and Loss under "Other Expenses".

• Subsequent recoveries of amounts previously written off are credited to "Other Income".

Investments in Mutual Funds

Investments in Mutual Funds have been valued at their fair values through Profit and Loss account, as on the closing date. The fair value has
been taken from the market.

Financial liabilities

At initial recognition, all financial liabilities other than those valued at fair value through profit and loss are recognised at fair value less
transaction costs that are directly related to the issue of financial liability. Transaction costs of financial liability carried at fair value through
profit or loss are expensed in profit or loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The Company has not designated any financial
liabilities upon initial measurement recognition at fair value through profit or loss.

Trade and other payables

A payable is classified as 'trade payable' if it is in respect of the amount due on account of goods purchased or services received in the normal
course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which
are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the
carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid is recognised
inprofit or loss as "Other Income" or "Finance Expense".

4.19 Foreign Currency Transaction

Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of transaction.

Monetary items denominated in foreign currency at the year end and not covered by forward exchange contracts are translated at the year end
rates and those covered by forward contracts are restated at each reporting date by using spot rate and exchange rate difference was booked.
Corresponding Forward Contract Receivable & Payable is also booked in books of account taken on such forward contracts. The Exchange rate
difference on Forward Contract was charged to Statement of Profit & Loss. Premium paid on such Forward Contract is charged to Statement of
Profit & Loss on periodic basis.

4.20 Assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than
through continuing use. Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less cost to
sell. Any resulting impairment loss is recognized in the Statement of Profit and Loss. On classification as held for sale the assets are no longer
depreciated.

4.21 Segment reporting

The Company identifies primary segments based on nature of products and returns and the internal organisation and management structure.
The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are
evaluated regularly by the managing board in deciding how to allocate resources and in assessing performance.

4.22 Government Grants

Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and the
Company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are
credited to Statement of Profit and Loss on a straight - line basis over the expected lives of related assets and presented within other income.

5 CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on
historical experience and various other assumptions and factors (including expectation of future events) that the Company believes to be
reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results
are known/materialised.

The said estimates are based on the facts and events that existed as at the reporting date, or that which occured after the date but provide
additional evidence about the conditions existing at the reporting date.

a Property, plant and equipment

• Management assesses the remaining useful lives and residual value of property, plant and equipment. Management believes that the assigned
useful lives and residual value are reasonable.

b Income taxes

• Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities.

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from
actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.

c Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against
the Company as it is not possible to predict the outcome of pending matters with accuracy.

d Impairment of accounts receivable and advances

^• Trade receivables carry interest and are stated at their fair value as reduced by appropriate allowances for expected credit losses. Individual
trade receivables are written off when management deems them not to be collectible. Impairment is recognised for the expected credit losses.

e Discounting of Security deposit, and other long term liabilities

For majority of the security deposits received, the timing of outflow, as mentioned in the underlying contracts, is not substantially long enough
to discount. The treatment would not provide any meaningful information and would have no material impact on the financial statements.

*Company has taken car loan for purchase of car. After declaring company as NPA in the month of Feb. 2023, hypothecated
car was sold for Rs. 4.03 lacs against the loan amount of Rs. 3.78 Lacs. Difference amount was treated by bank as Interest on
Loan.

** Company was declared NPA by the Canara Bank during the month of Feb. 2023 for non payment of bank borrowings. After
declaration of NPA by the bank, bank decided to sale the collateral security of company and same was done as below dates:

a) In the Month of November, 2023 the canara bank had Auctioned Land situated at G-1-29 at Manpura RIICO Industrial
Area Measuring 1222 Sq Mtr at Rs 35 Lacs which is having Present Market Value of Rs 95 Lacs approx. The Bank had
Auctioned this property when there was no bench in DRT and without Considering the IA filed with DRT by Company. We
had filed IA to cancel the Auction done at undervalued price by the Bank.

b) In the Month of February, 2024 the bank had Auctioned Landwith Shed situated at H-1-24 at Manpura RIICO Industrial
Area Measuring 1980 Sq Mtr at Rs 119.31 Lacs which is having Present Market Value of Approx Rs. 200 Lacs. The Bank had
Auctioned this property without Considering the IA filed with DRT by Company. Company had filed IA to cancel the Auction
done at undervalued price by the Bank.

c) In the Month of June, 2024 the bank had Auctioned Main Land & Building belonging to subsidiary company- M/s Mayur
Global Private Limited situated at Manpura RIICO Industrial Area at Rs 237.00 Lacs which is having Present Market Value of
Approx Rs 350.00 Lacs. The Bank had Auctioned this property without Considering the IA filed with DRT by Company.
Company had filed IA to cancel the Auction done at undervalued price by the Bank. This is Auctioned in FY 2024-25 Company
has filed an appeal against the auction of land by Canara Bank. So amount received against auction from the Bank is treated
as Payables.

36.1 Financial risk management objectives and policies

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial
risk management policy is set by the Managing Board.

36.2 Financial risk factors

• The Company’s principal financial liabilities comprise of trade payables, borrowings and other liabilities. The main purpose of these
financial liabilities is to manage finances for the Company’s operations and also for purchase of capital assets and for safeguarding its
interests under contracts.

• The Company has given loans to other parties, trade and other receivables, investments in equity shares and cash and cash
equivalents that arise directly from its operations as a part of its financial assets.

The Company’s activities expose it to a variety of financial risks:

a. 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.

b. Interest Rate Risk

• Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all
market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and
borrowings.

c. Credit risk

• Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss.

• The Company makes major of its sales, either on an advance basis or against credit, and hence the credit risk is minimal. Financial
Instruments like trade receivables are subject to slight credit risk against which the Company has booked Expected Credit Losses.

Market Risk

Commodity price risk and sensitivity:

Being a manufacturing Company, the commodity risk of the Company is there. In case of some commodities sold by the Company, there
is a price risk for which no specific arrangements have been made by the Company.

Expected Credit Losses

100% Expected Credit losses are recognised for all financial assets which have become due for more than 36 months.

Financial instruments and cash deposits

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks
with which balances and deposits are maintained. The Company does not maintain significant cash and deposit balances other than
those required for its day to day operations. The rest amount is deposited in the PD account, with the government, which can be
withdrawn as and when required and on which interest, as fixed by government, is being received. This PD account is a risk free deposit.

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair
values:

1 Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short
term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of
these instruments.

2 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected
losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

3 IND AS 101 allows Company to fair value its property, plant and machinery on transition to IND AS, the Company has fair valued
property, plant and equipment, and the fair valuation is based on deemed cost approach where the existing carrying amounts are
treated as fair values.

4 The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate. In
case of security deposits, Company has used the fixed deposit rate of the year of making advance.

They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter
party credit risk.

5 The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified
as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For other financial assets and liabilities that are measured at amortised cost, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: Quoted prices / published NVA (unadjusted) in active markets for identical assets or liabilities. It includes fair value of
financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial
instruments like mutual funds for which net assets value (NAV) is published mutual fund operators at the balance sheet date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an
active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates.

If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more
of the significant inputs is not based on observable market data, the instrument is included in level 3.

38 FAIR VALUE HEIRARCHY

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to
Level 3 as described below:

a Quoted prices/published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of
financial instruments traded in active markets and are based on quoted market prices at the balance sheet date.

b Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded
in an active market (for example, interest free security deposits) is determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is available and rely as little as possible on the company
specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in
level 2.

c Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or
more of the significant inputs is not based on observable market data, the instrument is included in level 3.

39 CAPITAL RISK MANAGEMENT
Objective

The primary objective of the Company’s capital management is to maximize the shareholder value. i.e. to provide maximum returns to the
Policy

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the rules and regulations
Process

The Company manage its capital by maintaining sound/optimal capital structure financial ratios, such as net debt-to-equity ratio on a monthly

Note:

• The Company was declared NPA by the Canara bank during the month of Feb. 2023 for non-payment of
bank borrowings. After declaration of NPA by the bank, bank decided to sale the collateral security of the
company.

• The Bank had auctioned company’s properties without considering the IA filed with DRT by the
company. Company had filed IA to cancel the auction done at undervalued price by the Bank.

• The Company has filed an appeal challenging the auction process initiated by Canara Bank and is
pursuing appropriate legal remedies.

44 The management has considered all the possible effects, if any, that may result from the pandemic relating

to COVID-19 on the results of operations, liquidity, capital resources and carrying amounts of trade receivables and
inventories (including biological assets). In developing the assumptions and estimates relating to the uncertainties
as on the balance sheet date in relation to the recoverable amounts of the assets, the management has considered
the global economic conditions prevailing as at the date of approval of these financial results and has used the
internal and external sources of information to the extent determined by it. The actual outcome of these
assumptions and estimates may vary in future due to the impact of the pandemic. The managements will continue
to monitor and assess the ongoing developments and respond accordingly.

45 Gratuity Liability has been calculated on estimated basis and not as per Actuarial Valuation which is required
as per Ind AS 19 "Employee Benefits"

46 The Company has given Loans and Advances which are subject to Confirmation and Reconciliation.