m) Provisions, contingent liabilities and contingent assets

i) Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be

required to settle the obligation and the amount can be reliably estimated. Provisions
are not recognised for future operating losses. Provisions are measured at the present
value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period.

Provisions (excluding retirement benefits) are discounted using pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as
interest expense.

ii) A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company. The Company does not
recognize a contingent liability but discloses its existence in the financial statements.

iii) Contingent assets are not recognized, but disclosed in the financial statements where
an inflow of economic benefit is probable.

A) Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements in conformity with Ind AS
requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Estimates and judgements are
continuously evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. Revisions to accounting
estimates are recognised in the period in which the estimate is revised.

A) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance
sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using appropriate valuation techniques. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect
the reported fair value of financial instruments.

B) Taxes

The Company periodically assesses its liabilities and contingencies related to income
taxes for all years open to scrutiny based on latest information available. For matters where
it is probable that an adjustment will be made, the Company records its best estimates of the
tax liability in the current tax provision. The Management believes that they have adequately
provided for the probable outcome of these matters.

Deferred tax assets are recognised for unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be utilised.
Significant management judgement is required to determine the amount of deferred tax

iv) Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard
to dividends and share in the Company's residual assets on winding up. The equity shareholders are
entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder
on a poll (not on show of hands) are in proportion to his/ its share of the paid-up equity share capital
of the Company. On winding up of the Company, the holders of equity shares will be entitled to receive
the residual assets of the Company, remaining after distribution of all preferential amounts, in
proportion to the number of equity shares held.

The average credit period on purchases is 45 to 90 days. No interest is charged by the trade payables.

Sundry Creditors- Dues to Micro and Small Enterprises Pursuant to disclosure of amount due to
Micro, Small and Medium Enterprises as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" (MSMED ACT) included under the head "Trade Payable", the Company has
initiated process of seeking necessary information from its suppliers based on the information
available with the company regarding the total amount due to supplier as covered under MSMED Act

is given below. The company is generally regular in making payment of dues to such enterprise. There
are no overdues beyond the credit period extended to the company which is less than 45 days hence
liability for payment of interest or premium thereof and related disclosure under the said Act does not
arise. This has been relied upon by the auditors.

47. Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance and support Company's operations. The Company's principal
financial assets include trade and other receivables, cash and cash equivalents, other bank balances and
refundable deposits that derive directly from its operations.

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 the
Company's 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 and risk objectives. The Board
of Directors reviews and agrees policies for managing each of these risks.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

i) Market risk

ii) Credit risk and

iii) Liquidity risk

i) Market risk

Market risk arises from the Company's use of interest bearing financial instruments. It is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates
(interest rate risk) or other market factors. Financial instruments affected by market risk include borrowings,
fixed deposits and refundable deposits.

a. 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 is not exposed to the risk of changes in market
interest rates as the funds borrowed by the Company is at fixed interest rate.

b. Foreign currency risk

Currency risk is not material, as the Company's primary business activities are within India and does not
have significant exposure in foreign currency.

ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities including security deposits, loans to employees and
other financial instruments.

a) Trade receivables

The Company extends credit to customers in the normal course of business. The Company considers
factors such as financial conditions / market practices, credit track record in the market, analysis of historical
bad debts and past dealings for extension of credit to customers. Individual credit limits are set accordingly. The
Company monitors the payment track record of the customers and ageing of receivables. Outstanding customer
receivables are regularly monitored. The Company considers 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.

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances,
cash, other receivables and deposits, the Company's exposure to credit risk arises from default of the
counterparty, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks is managed by Company's treasury in accordance with the Company's
policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile
of its bankers, management does not expect any counterparty to fail in meeting its obligations.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the
maturity of both its financial investments and financial assets (e.g. trade receivables, other financial assets) and
projected cash flows from operations.

The cash flows, funding requirements and liquidity of Company is monitored under the control of Treasury team.
The objective is to optimize the efficiency and effectiveness of the management of the Company's capital
resources. The Company's objective is to maintain a balance between continuity of funding and borrowings. The
Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously
monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Notes forming part of the Financial Statements
50 Fair value measurement

The fair value of the financial assets are included at amounts at which the instruments 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 value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables,
other current liabilities, approximate their carrying amounts largely due to the short-term maturities of
these instruments.

(b) 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 the expected losses of these receivables.

b) Fair value hierarchy

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)

a) The carrying amounts of trade receivables, cash and cash equivalents, bank balances other than cash and
cash equivalents, current loans, other current financial assets, current borrowings, trade payables and Other
financial liabilities.

Note - 51

Information on segment reporting pursuant to Ind AS 108 - Operating Segments
Operating segments
Identification of segments

The chief operational decision maker monitors the operating results of its business segments separately for
the purpose of making decisions about resource allocation and performance assessment. Segment
performance is evaluated based on profit and loss of the segment and is measured consistently with profit
or loss in these financial statements. Operating segments have been identified on the basis of the nature of
products.

Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as
unallowable expenditure (net of unallowable income).

Segment assets and liabilities

Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables,
cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities.
Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of
unallowable assets/liabilities.

53 Corporate Social Responsibility
(CSR)

Provision of Section 135 "Corporate Social Responsibility" is not applicable to the Company.

54 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

There are no loans granted, guarantees given and investments made by the Company under Section 186 of the
Companies Act, 2013 read with rules framed thereunder except as stated under note 8 to the financial
statement.

55 The outbreak of COVID-19 pandemic has severely impacted businesses and economies. There has been
disruption to regular business operations due to the measures taken to curb the impact of the pandemic. The
Company's operations and office were shut post announcement of nationwide lockdown. With easing of some
restrictions, the operations and office have resumed partially as per the guidelines specified by the Government.

In preparation of these financial statements, the Company has taken into account internal and external sources
of information to assess possible impacts of the pandemic, including but not limited to assessment of liquidity
and going concern, recoverable values of its financial and non-financial assets and impact on revenues. Based
on current indicators of future economic conditions, the Company has sufficient liquidity and expects to fully
recover the carrying amount of its assets. Considering the evolving nature of the pandemic, its actual impact in
future could be different from that estimated as at the date of approval of these financial statements. The
Company will continue to monitor any material changes to future economic conditions.

56 In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated
as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

57 Debit and Credit balances are subject to confirmation and reconciliation if any.

58 Previous year figures have been regrouped / reclassified, wherever necessary, to correspond with current
year classification.

For Vijay Panchappa & Co. For and Behalf of the Board

Chartered Accountants UR SUGAR INDUSTRIES LIMITED

Firm Reg No. 004693S (Formerly Known as HKG Limited)

Sd/- Sd/- Sd/- Sd/- Sd/-

(CA. M.R.Mudigoudar) Lava Ramesh Katti KUSH KATTI Amita Singh Nitin Karekar

Partner M.No. 224288 Managing Director Director Company secretary CFO

Place: Belgaum DIN: 02777164 DIN: 02777189 M No. 48613

Date : 26.05.2025

UDIN : 25224288BMJKFT9499