Terms/Rights attached to equity shares

The Company has one class of equity shares having a par value of ? 10 per share. Each equity shareholder is eligible for one vote per share held. Each equity shareholder is entitled to dividend as and when declared by the Company. Interim dividend is paid as and when declared by the Board. Final dividend is paid after obtaining shareholders' approval. Dividends are paid in Indian Rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

Term loan from banks/Other Financial Institutions*

* the above maturity profile is based on total principal outstanding gross of issue expense

# It consist of loan from Directors/Relatives and are interest free. Further, The Directors have certified that the loans are provided by the director from their own funds and not from borrowed funds

Union Bank of India had an opening outstanding secured loan balance of ?28,24,39,077.80 as at the beginning of the year. During the financial year ended 31st March 2025, the Bank exercised its rights under the security agreements and auctioned certain Company assets with a total book value of ?6,71,67,189 against its loan exposure. Following adjustment for these auctioned assets, the closing loan balance as at 31st March 2025 stands at ^21,61,61,716.84. The Company possesses supporting documentation related to the asset auction; however, no repayments were made to Union Bank during the year. Additionally, no confirmation or reconciliation of the loan balance was received from the Bank. Consequently, the closing balance is based solely on the Company’s internal records and remains unverified from external sources.

As of 31st March 2025, the Company has an outstanding balance of ?3.02 Crores payable to Capital Trade Links (CTL), compared to an opening balance of ?1.24 Crores. During the year, CTL filed an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, before the NCLT, which was admitted on 4th March 2025. Subsequently, on 5th March 2025, the Company and CTL executed a settlement agreement under which an initial payment of ?30 lakhs was made, and the creditor filed an application to withdraw the Corporate Insolvency Resolution Process (CIRP). The NCLAT, by order dated 8th April 2025, acknowledged the settlement and directed withdrawal of the proceedings.

Following the settlement, the Company recognized interest of ?2.31 Crores and TDS of ?23.14 lakhs related to the dues, which remain unpaid as of the reporting date. No external confirmations or supporting documents have been received, and the balance is recorded based on internal records.

Considering the resolution steps taken, management believes the financial statements for the year ended 31st March 2025 prepared on a going concern basis remain appropriate.

ii Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

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. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. 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 loans and borrowings, other financial liabilities and deposits.

Interest rate risk i Liabilities

Interest rate risk exposure

The company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates

ii Assets

The company’s fixed deposits are carried at fixed rate. Therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

B Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Being interest on overdue installments has not been provided and calculated and the same will be recognised at the final settlement of loans

The undisputed amount of Income tax Rs. 123.02 Lakhs is payable for the assessment year 2017-2018 and the interest , penalty if any in respect of the same has remained unascertained and unaccounted for. The company has defaulted in filing of GSTR forms and defaulted in payments of liability, the liability, interest, penalty if any in the respect of the same has remained unascertained and unaccounted for.

The company has a disputed demand of HVAT for the Assessment year 2015-2016 and 2016-2017 of Rs. 37.57 Lakhs and Rs. 15.48 Laks respectively. The disputed amount has not been taken in books of accounts.

Certain charge entries are appearing on the Ministry of Corporate Affairs (MCA) portal in respect of assets charged to various banks and financial institutions. The Company does not presently have access to the underlying documentation for verification. These may be created or satisfied in due course based on future developments.