2.14 Provisions, contingent liabilities and contingent
assets:

Provisions are recognised in the balance sheet
when the company has a present obligation (legal
or constructive) as a result of a past event, which
is expected to result in an outflow of resources
embodying economic benefits which can be reliably
estimated. Each provision is based on the best
estimate of the expenditure required to settle the
present obligation at the reporting date taking into
account the risks and uncertainties surrounding
the obligation.

2.15 Impairment of assets:

Property, plant and equipment 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 (i.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.

If assets are considered to be impaired, the impairment
to be recognised in the Statement of profit and loss is
measured by the amount by which the carrying value
of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed
in the Statement of Profit and Loss if there has been
a change in the estimates used to determine the
recoverable amount. The carrying amount of the
asset is increased to its revised recoverable amount,
provided that this amount does not exceed the
carrying amount that would have been determined
(net of any depreciation) had no impairment been
recognized for the asset in prior years.

2.16 Derivatives and hedge accounting:

Derivatives are initially recognised at fair value and
are subsequently remeasured to their fair value at
the end of each reporting period. The resulting gains /
losses are recognised in Statement of Profit and Loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event
the timing of recognition in profit or loss /inclusion in
the initial cost of non-financial asset depends on the
nature of the hedging relationship and the nature of
the hedged item.

2.17 Government Grants:

The Company may receive government grants that
require compliance with certain conditions related to
the Company’s operating activities or are provided to
the Company by way of financial assistance on the
basis of certain qualifying criteria. Government grants
are recognised when there is reasonable assurance
that the grant will be received upon the Company
complying with the conditions attached to the grant.
Accordingly, government grants:

(a) related to or used for assets, are deducted from
the carrying amount of the asset.

(b) related to incurring specific expenditures are
taken to the Statement of Profit and Loss on
the same basis and in the same periods as the
expenditures incurred.

(c) by way of financial assistance on the basis of
certain qualifying criteria are recognised as they
become receivable.

In the unlikely event that a grant previously
recognised is ultimately not received, it is
treated as a change in estimate and the amount
cumulatively recognised is expensed in the
Statement of Profit and Loss.

Note 10:- Equity Share capital (Contd..)

(D) Ordinary Shares allotted as fully paid pursuant to contract(s) without payment being received in cash
during the period of five years immediately preceding 31st March, 2025: NIL

(E) Ordinary Shares allotted as fully paid up Bonus Shares for the period of five years immediately preceding
31st March, 2025: NIL

(F) Rights, preferences and restrictions attached to the Ordinary Shares:

The Ordinary Shares of the Company, having par value of Rs. 10/- per share, rank pari passu in all respects including
voting rights and entitlement to dividend.

(G) Ordinary Shares bought back for the period of five years immediately preceding 31st March, 2025: NIL

(H) Shareholding of promoters

(I) During the financial year ended 31st March 2025, the Company successfully completed a preferential allotment of
13,60,00,000/- share warrants pursuant to the provisions of Chapter V of the SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2018, as amended from time to time. The share warrants were allotted to members
of the promoter group and other identified non-promoter entities, in accordance with the shareholders’ approval
obtained through a special resolution.

Each warrant entitled the holder to apply for and be allotted one equity share of the Company. As per the terms and
conditions of the issue, the warrant holders were required to pay 25% of the issue price at the time of allotment as an
upfront payment. The remaining 75% of the issue price was payable upon exercise of the right to convert the warrants
into equity shares, which was required to be exercised within a period of 18 months from the date of allotment.
All the share warrants were fully paid for and duly converted into equity shares on or before 31st March 2025.
Consequently, the Company allotted 13,60,00,000/- equity shares of Rs. 10 per share, resulting in an increase in the
paid-up equity share capital and strengthening of the Company’s equity base. The proceeds from the preferential
issue have been utilized in line with the objectives stated in the offer documents.

(J) During the financial year ended 31st March 2025, the Company successfully completed a preferential allotment of
2,26,40,000 equity shares of face value Rs. 10 each, in accordance with the provisions of Chapter V of the SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2018 as amended from time to time. The equity shares were
allotted to members of the promoter group and other identified non-promoter entities, pursuant to the shareholders’
approval obtained through a special resolution passed in a general meeting.

The issue price for the preferential allotment was fixed at Rs. 10 per share, in compliance with the pricing guidelines
prescribed under the applicable SEBI regulations. The entire consideration amount aggregating to Rs. 22.64 crore
was received in full at the time of allotment.

Pursuant to the successful completion of the issue, the paid-up equity share capital of the Company increased
accordingly. The proceeds from the preferential allotment have been deployed in accordance with the objectives
specified in the offer document.

Note 25: (Contd..)

** On 19th October 2022, the Central Intelligence Unit, Mumbai Zone- II, Department of Customs ("the Department") have seized the goods
attempted to be exported by the company vide S/B No. 4205537 and S/B No. 4208748 Dated 15.09.22 by exercising their powers conferred
to section 110 of the customs Act 1962. The FOB value of such goods to be exported were Rs. 500.37 Lakhs. The Company had filed a Writ
Petition No. 13250 of 2022 against the seizure order with Hon'ble Bombay High Court. The Company had also filed an Interim Application
1284 of 2023 for provisional release of goods whereby on 19th January 2023, the Department has agreed for provisional release of goods upon
furnishing of bond of 100% value of siezed goods backed by a Bank Guarantee of Rs. 80.00 Lakhs. The investigation is pending for adjudication
with the Department whereas the concerned writ petition is under subjudice with Hon'ble Court.

*** The Company has received four Show Cause Notices dated January 13, 2025, relating to refunds under the CGST Act 2017 sanctioned
for November 2021 to January 2022 of Rs. 22.23 crores. These refunds order were earlier set aside by the Commissioner (Appeals) Lucknow,
following an appeal by CGST Firozabad UP. The Company has conveyed its intention to file appeal before the GST Tribunal under the CGST Act
2017. CGST Firozabad UP has issued protective SCNs, which remain under adjudication.

****The Directorate General of GST Intelligence (DGGI), Nashik Regional Unit has issued a Show Cause Notice (SCN) dated May 9, 2025, was
issued by the DGGI Nagpur Zonal Unit, amounting to Rs. 387.43 crores for the period from October 2020 to October 2024.

The SCN is currently pending adjudication before the jurisdictional authority at CGST Nashik Commissionerate.
The Company is in the process of preparing its reply, which will be submitted within the prescribed timeline
under the Central Goods and Services Tax Act, 2017. The Company remains committed to full compliance with
all applicable legal and regulatory requirements.

Basis used to determine the Expected Rate of Return on Plan Assets

Discount Rate: The rate used to discount other long term employee benefit obligation (both funded and unfunded)
have been determined by the reference to market yield at the Balance Sheet Date on government bonds. The currency
and term of the government bond shall be consistent with currency and estimated term of the post employment
benefit obligation.

Rate of Return on Plan Assets: Interest income on plan assets is calculated using the expected rate of return and
the assets at the beginning of the period.

Withdrawal Rates: withdrawal rates takes into account the board economic outlook, type of sector the company
operates in and measures taken by the management to retain/ relive the employees.

Sensitivity Analysis

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may
vary if two or more variables are changed simultaneously. The method used does not indicate anything about the
likelihood of change in any parameter and the extent of the change if any.

5) Fair Value Measurement
Fair Value Hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price 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). If
one or more of the significant inputs is not based on observable market data, the fair value is determined using
generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being
the discount rate that reflects the credit risk of counterparty.

The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to
be equal to the carrying amounts of these items due to their short - term nature.

The fair value of RoU asset and lease liabilities has been determined on the basis of valuation carried out at the
reporting date by registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017 and the same has been categorized as Level-3 based on the valuation techniques used and inputs applied.
The lease liability has been determined at the present value of the remaining lease payments, discounted using the
lessee's incremental borrowing rate at the date of initial application.

Note 25: (Contd..)

6) Financial risk management objectives

The Company aims at ensuring early identification, evaluation and management of key financial risks (such as market
risk, credit risk and liquidity risk) that may arise as a consequence of its business operations by having a system-based
approach to risk management, anchored to policies and procedures of the Company. Accordingly, the Company’s
risk management framework has the objective of ensuring that such risks are managed within acceptable and
approved risk parameters in a disciplined and consistent manner and in compliance with the applicable regulations.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss. The
Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to
the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits
and creditworthiness of customers on a continuous basis to whom the credit has been granted.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

10) Segment Information:

The Company has identified two reportable segments viz., Tobacco products, Agro Commodities, after taking into account the
nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for
segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

(i) Revenue and expenses have been identified to a segment on the basis of relation to operating activities of the
segment. Revenue and expenses that relates to enterprise as a whole and are not allocable to a segment on a
reasonable basis have been disclosed as “Un-allocable”.

(ii) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and
liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

14) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with the
understanding (whether recorded in writing or otherwise) that the intermediary shall directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

15) The Company has not received any advance from any person(s) or entity(ies), including foreign entities (funding
party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of funding party (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

16) Some of the trade payables, Loans and Other Current Assets are subject to balance confirmation/ reconciliation
at the year end. The management is in process of getting balance confirmation from the respective parties.
However, reconciliation/ confirmation of these balances is not expected to result in any material adjustments in the
stated balances.

17) The Company has moved an application for voluntary delisting of its securities from CSE on April 09, 2022. However,
the trading in securities has been suspended by the Calcutta Stock Exchange Limited (CSE) w.e.f April 26, 2022 on
account of non-payment of Annual Listing Fees.

18) 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.

Note 25: (Contd..)

19) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

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

21) The Company did not have any long- term contracts including derivative contracts for which there were any material
foreseeable losses.

22) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.

23) The Company has not 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).

24) On the basis of the total income of the Company, the figures appearing in the financial statements have been rounded
off to nearest lakhs. The previous year figures have been regrouped, rearranged and reclassified wherever necessary.

As per our report of even date attached For and on behalf of the Board of Directors of

For V.N. PUROHIT & CO. Elitecon International Limited

Chartered Accountants

FRN:304040E

O.P. Pareek Vipin Sharma Dayanand Ray

Partner Managing Director Director

M. No.: 014238 DIN: 01739519 DIN: 07478810

UDIN: 25014238BMJMBW5986 152, Shivani 2/4, Pocket- 7,

Appartments, Plot No. 63, Sector -82, Noida-201304

I.P. Extension, Patparganj,

Delhi-110092

Date: 27th May, 2025 Anmol Verma Rajlaxmi Saini

Place: New Delhi Chief Financial Officer Company Secretary

PAN: AISPV7748J M. No.: 51110