(xiv) Provision and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation in respect of which a reliable estimate can be made.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates,

Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed In the
financial statements.

<xv) Leases

As a Lessee:

The Company assesses whether a contract contains a lease, at inception of a contract. A contract Is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time In exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract Involves the use of an Identified asset;

(il) the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and
(ill) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset CROU”) and a corresponding lease liability
for all lease arrangements in which It is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value
leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease Incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Certain lease arrangements Includes the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities Includes these options when it is reasonably certain that they will be exercised,

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes In circumstances
Indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (l.e. the
higher of the fair value less cost to sell and the 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.

The lease liability Is initially measured at amortized cost at the present value of the future lease payments, The lease payments are
discounted using the interest rate Implicit In the lease or, If not readily determinable, using the incremental borrowing rates In the
country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if
the Company changes its assessment if whether It will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented In the Balance Sheet and lease payments have been classified as
financing cash flows.

As a Lessor:

Lease income from operating leases where the Company Is a lessor Is recognised In Income on a straight-line basis over the lease term
unless the receipts are structured to increase In line with expected general inflation to compensate for the expected inflationary cost
Increases. The respective leased assets are included in the balance sheet based on their nature.

Based on Company's assessment, the contracts entered into by the Company do not contain a lease as specified above or they are
either short term or low value leases. Therefore, those have been accounted as per other applicable accounting standards,

(xvi) Segment Reporting

Operating segments are reported In a manner consistent with the Internal reporting provided to Chief Operating Decision Maker
(CODM),

The Company has identified its Managing Director as CODM who is responsible for allocating resources and assessing performance
of the operating segments and makes strategic decisions,

(xvii) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity share holders (after
deducting preference dividends. If any. and attributable taxes) by the weighted average number of equity shares outstanding
during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive
potential equity shares.

(xviii) Cash and cash equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks and other short-term
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of

changes In value where original maturity Is three months or less,

Cash flows are reported using the indirect method whereby the profit before tax Is adjusted for the effect of the transactions of a non¬
cash nature, any deferrals or accruals of past and future operating cash receipts or payments and Items of income or expenses
associated with Investing or financing cash flows. The cash flows from operating, investing and financing activities of the company
are segregated,

(xix) Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets
are capitalized as a part of cost of that asset, during the period till all the activities necessary to prepare the qualifying assets for its
Intended use or sale are complete. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
Intended use or sale,

Other borrowing costs are recognized as an expense in the period In which they are Incurred,

(xx) Exceptional Items

When an item of Income or expense within profit or loss from ordinary activity is of such size, nature or Incidence that their disclosure is
relevant to explain the performance of the Company for the year, the nature and amount of such Items Is disclosed as exceptional
items,

ii) Compensated Absences: The Company permits encashment of compensated absence accumulated by their employees on
retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at
the balance sheet date Is determined and provided on the basis of actuarial valuation performed by an independent actuary .The
disclosure in respect of the defined Compensated Absences are given below:'

42 FINANCIAL INSTRUMENTS

"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: (I) 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, (ii) 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 counter-party. 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. The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly
or indirectly,

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data,"

43 RISK MANAGEMENT

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
activity expose it to market risk, liquidity risk, commodity risk and credit risk. The Company's financial risk management policy Is set by
the Risk Management Committee and governed by overall direction of Board of Directors of the Company.

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."

I CREDIT RISK

'Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the
company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of account receivables. Individual credit limits are set accordingly, The
Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in
credit risk on an ongoing basis throughout each reporting period. To assess whether there Is a significant increase in credit risk the
company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of Initial
recognition. The company considers reasonable and supportive forward-looking Information. Financial assets are written off when
there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the company, The
company provides for overdue outstanding as per the policy approved by the Board of Directors, which are evaluated on a case to
case basis.The Company's concentration of risk with respect to trade receivables is low. as its customer's base is widely spread across
the length and breadth of the country and majority of the customers are with sound financial health.’

III MARKET RISK- 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. In order to balance the Company's position with regards to interest Income and Interest expense and to manage the
Interest rate risk, finance department performs a comprehensive Interest rate risk management. The Company is not exposed to
significant interest rate risk as at the respective reporting dates.

IV MARKET RISK- FOREIGN CURRENCY RISK

The Company Is exposed to foreign exchange risk towards honouring of export/ import commitments. Management evaluates
exchange rate exposure in this connection In terms of its established risk management policies which Includes the use of derivatives
like foreign exchange forward contracts to hedge risk of exposure In foreign currency. The company Is not exposed to foreign
currency risk at the respective reporting dates.

V COMMODITY RISK

"Principal Raw Material for Company 's products is Crushed bone. HCL, Lime and Coal as a fuel. The Company sources its major raw
material requirement from domestic suppliers located in various part of India,

The Company effectively manages with availability of material as well as price volatility based on the following:

• Raw materials are procured from different sources at competitive prices.

• Alternative sources are developed for uninterrupfed supply of raw materials.

• Demand and supply are external factors on which company has no control; however the Company plans its production and
sales from the experience gained In the past and on-going study and appraisal of the market dynamics, competition, economic
policies and growth patterns of different segments of users of company's products.

• Specific steps to reduce the gap between demand and supply by expanding its customer base, delivery mechanisms, etc.

• Proper inventory control systems have been put In place. The Risk committee of the Company comprising members from Board
of Directors and the operations has developed and enacted a risk management strategy regarding commodity Price risk and its
mitigation,”

44 FINANCIAL RISK FACTORS

(a) Capital risk management

The Company manages its capital structure and makes necessary adjustments in light of changes in economic conditions and
the requirement of financial covenants, To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders, issue new shares or raise / retire debt. The primary objective of the
Company's capital management is to maximise the shareholders value.

‘For the purpose of the Company 's capital management, equity includes Issued capital, securities premium and other reserves.
Net debt includes loans less cash and bank balances. The Company manages capital by monitoring gearing ratio which Is net
debt divided by equity plus net debt,

45 The Company is engaged in the manufacture and sdle of Ossein and Gelatine. Since all these segments meet the aggregation
criteria as per the requirements of Ind AS 108 on 'Operating segments', the management considers these as a single reportable
segment. Accordingly, no further disclosure is required to be furnished.

46 Certain financial assets and financial liabilities are subject to formal confirmation and reconciliations. The Management, however, is
confident that the impact whereof. If any, for the year on the financial statements will not be material.

47 With effect from 21 November 2025, the Government of India has notified the substantive provisions of the new Labour Codes
comprising the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational
Safety, Health and Working Conditions Code, 2020. Pursuant thereto, the Company has evaluated the Impact on employee benefit
obligations based on the revised wage structure and accounted for the resultant impact In the financial results in accordance with
Ind AS 19- Employee Benefits, The Company continues to monitor the finalisation of the related Central and State Rules and will dssess
and account for the Impact. If any. arising from such developments as and when they become applicable.

Notes:

Networth = Equity other Equity

49 Other statutory information:

I) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company

for holding any benami property.

li) The Company does not have any transactions with companies struck off.

lii) The Company does not have any charges or satisfaction which Is yet to be registered with ROC beyond the statutory period.

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
entitles identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or (b) provide any
guarantee, security or the like to or on behalf of the ultimate beneficiaries.

vl) The Company has not received any fund from any person(s) or entity(ies), including foreign entitles (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 entitles 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.

vli) The Company does not have 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.

vlll) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
lx) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year,
x) The quarterly returns or statements of current assets filed by the Company with banks or financial Institutions are in agreement
with the books of accounts

xl) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at
Balance sheet date.

50 Previous year's figures have been re-grouped / re-classified wherever required to conform to current years' classification.