8. Provisions, contingentliabilities and contingent assets

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required
to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in
the statement of profit and loss net of any reimbursement.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the
Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot
be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/
independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current
management estimate.

No contingent asset is recognized but disclosed by way of notes to accounts only when its recognition is virtually
certain.

9. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot rates at the date the
transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot
rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary
items are recognized in Statement of Profit and Loss in the year in which it arises.

Non-monetary items are measured in terms of historical cost in foreign currency are translated using the exchange
rate at the date of the transaction.^ situations, when the non-monetary assets/ liabilities are acquired by paying/
receiving foreign currency in advance then the same should be translated at a rate which exists on the date
when such advance payment/receipt was made.

10. Revenue

a) Revenue Recognition

The company derives revenue primarily from sale of manufactured goods and related services.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products
or services to customers of an amount that reflects the consideration the company expects to receive in
exchange for products or services.

The company recognizes provision for sales return, based on historical results, measured on net basis of
the margin of the sale. Therefore, a refund liability, included in other current liabilities, are recognized for the
products expected to be refunded.

The company does not expect to have any contracts where the period between the transfer of the promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, it
does not adjust any of the transaction prices for the time value of money.

Revenue in excess of invoicing are classified as contract assets while invoicing in excess of revenues are
classified as contract liabilities.

b) Other Income:

i) Interest Income

For all financial instruments measured at amortized cost and interest-bearing financial assets classified
asfair value through other comprehensive income, interest income is recorded using the effective
interestrate (EIR). The EIR isthe rate that exactly discounts the estimated future cash receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the net carrying
amount of the financial asset. When calculating the effective interest rate, the Company estimates the
expected cash flows by considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) but does not consider the expected credit losses.
Interest income isincluded in otherincome in the statement of profit orloss.

ii) Dividend

Dividend Income isrecognizedwhen the Company'srightto receive is established which generally occurs
when the shareholders approve the dividend.

iii) Miscellaneous Income

Other income is recognized in the Statement of Profit and Loss when increase in future economic
benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured
reliably.

11. Employee Benefits

11.1. Short Term Benefit

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as
the related service is provided.

A liability is recognized for the amount expected to be paid under performance related pay if the Company
has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.

11.2. Post-Employment benefits

Employee benefit that are payable after the completion of employment are Post-Employment Benefit
(other than termination benefit). These are of two types:

11.2.1. Defined contribution plans

Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities
and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee
State Insurance are Defined Contribution Plans in which company pays a fixed contribution and will
have no further obligation.

11.2.2. Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

Company pays Gratuity as per provisions of the Gratuity Act, 1972.Leave Encashment payable at the
end of the employment is also a post employment defined benefit plan.The Company's net obligation in
respect of defined benefit plans is calculated separately for each plan by estimating the amount of
future benefit that employees have earned in return for their service in the current and prior periods; that
benefit is discounted to determine its present value. Any past service costs and the fair value of any
plan assets are deducted. The discount rate is based on the prevailing market yields of Indian government

securities as at the reporting date that have maturity dates approximating the terms of the Company's
obligations and that are denominated in the same currency in which the benefits are expected to be
paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method.
When the calculation results in a liability to the company, the present value of liability is recognized as
provision for employee benefit. Any actuarial gains or losses are recognized in OCI in the period in
which they arise.

12. Income Tax

Income tax expense comprises current and deferred tax. Current tax expense is recognized in profit or loss
except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which
case it is recognized in OCI or equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years.
Current income taxes are recognized under ‘Income tax payable' net of payments on account, or under ‘Tax
receivables' where there is a debit balance.

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously.

Deferred tax is recognized in profit or loss except to the extent that it relates to items recognized directly in OCI
or equity, in which case it is recognized in OCI or equity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternative Tax credit (MAT Credit) is recognised as an asset only when and to the extent there is
convincing evidence that the company will pay normal 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.

Additional income taxes that arise from the distribution of dividends are recognized at the same time when the
liability to pay the related dividend is recognized.

13. Leases

The Company's lease asset classes primarily consist of leases for land and buildings. 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 (ii) the Company has substantially all of the
economic benefits from use of the asset through the period of the lease and (iii) 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 (“ROU”) 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.

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. 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.

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.

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 re-measured with
a corresponding adjustment to the related right of use asset if the Company changes its assessment of 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.

14. Impairment of Non-financial Assets

The carrying amounts of the Company's non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets'. If
any such indication exists, then the asset's recoverable amount (higher of its fair value less costs to disposal
and its value in use) is estimated.

An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount.
Impairment losses are recognized in Statement of Profit andLoss. Impairment losses recognized in respect of
CGUs are reduced from the carrying amounts of goodwill of that CGU, if any and then the assets of the CGU.

Impairment losses recognized in previous years are assessed at each reporting date. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

15. Operating Segments

In accordance with Ind AS 108 - ‘Operating Segments', the operating segments used to present segment
information are identified on the basis of internal reports used by the Company's Management to allocate resources
to the segments and assess their performance. The Board of Directors is collectively the Company's ‘Chief
Operating Decision Maker' or ‘CODM' within the meaning of Ind AS 108. For management purpose company is
organized into major operating activity of A.C. Pressure Pipes and Sheetsmanufactured in India.

16. Dividends

Dividends and interim dividends payable to a Company's shareholders are recognized as changes in equity in
the period in which they are approved by the shareholders' meeting and the Board of Directors respectively.

17. Material Prior Period Errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior
periods presented in which the error occurred. If the error occurred before the earliest prior period presented,
the opening balances of assets, liabilities and equity for the earliest prior period presented, are restated.

18. Earnings Per Share

Basic Earnings per Equity Shareis computed by dividing the net profit or loss attributable to equity shareholders
of the Company by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders
of the Company by the weighted average number of equity shares considered for deriving basic earnings per
equity share and also the weighted average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares.

19. Statement of Cash Flows

Statement of cash flows is prepared in accordance with the indirect method prescribed in Ind AS-7 ‘Statement
of cash flows.

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.

20.1. Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus or minus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition or
issue of the financial asset.

Subsequent measurement
Debt instruments at amortized cost

A ‘debt instrument' is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included in financial
income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This
category generally applies to trade and other receivables.

Debt instrument at FVTOCI (Fair Value through OCI)

A ‘debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial assets, and

(b) The asset's contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes
interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss.
On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from
the equity to profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as
interest income using the EIR method.

Debt instrument at FVTPL (Fair value through profit or loss)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized cost
or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates
a measurement or recognition inconsistency (referred to as ‘accounting mismatch'). Debt instruments
included within the FVTPL category are measured at fair value with all changes recognized in the profit
and loss.

Equity investments

All equity investments in entities other than subsidiaries and joint ventures are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments,
the Company decides to classify the same either as at FVTOCI or FVTPL. The Company makes such
election on an instrument by instrument basis. The classification is made on initial recognition and is
irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instruments, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However the company may transfer cumulative gain or loss
within the equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the profit and loss.

Equity investments in subsidiaries and joint ventures are measured at cost.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognized (i.e. removed from the Company's 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.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expectedcredit loss (ECL) model for measurement
and recognition ofimpairmentlossonthe followingfinancial assets andcreditriskexposure:

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

• Trade receivablesor any contractualrighttoreceive cashor another financial asset that result from
transactionsthat are within the scope of Ind AS 11 and Ind AS 18

The Company follows ‘simplified approach' forrecognition ofimpairment loss allowance on:

• Trade receivables or contract assets resulting fromtransactions within the scope of Ind AS 11 and
Ind AS 18, ifthey do not contain a significant financing component

• Trade receivables or contract assets resulting fromtransactions within the scope of Ind AS 11 and
Ind AS 18that contain a significant financing component, if theCompany applies practical expedient
to ignoreseparation of time value of money, and

The application of simplified approach does not require theCompany to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at eachreporting date, right
from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

20.2. Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost.
Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.
Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and any material transaction
that are an integral part of the EIR. For trade and other payables maturing within one year from the
balance sheet date, the carrying amounts approximate fair value due to the short maturity of these
instruments.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit or loss.

The Company uses forwards to mitigate the risk of changes in interest rates, exchange rates and
commodity prices. Such derivative financial instruments are initially recognised at fair value on the date
on which a derivative contract is entered into and are also subsequently measured at fair value on the
reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of
derivatives are taken directly to Statement of Profit and Loss.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes
in the fair value of the derivative is recognized in the cash flow hedge reserve being part of other
comprehensive income. Any ineffective portion of changes in the fair value of the derivative is
recognized immediately in the Statement of Profit and Loss. If the hedging instrument expires or is
sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in
cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging
reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized
in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence
of the underlying transaction.

b) Fair Value Hedge

Changes in the fair value of hedging instruments and hedged items that are designated and qualify
as fair value hedges are recorded in the Statement of Profit and Loss.

D. Recent Pronouncements in Indian Accounting Standard:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2025,
MCA has notified Ind AS 101 -First-time Adoption of Ind AS, Ind AS 103- Business Combinations, Ind AS 104-
Insurance Contracts, Ind AS 105-Non-Current Assets Held for Sale and Discontinued Operations, Ind AS 107-
Financial Instruments: Disclosures, Ind AS 109- Financial Instruments, Ind AS - 117 Insurance Contracts (replaced
Ind AS- 104) and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1,2024. The Company has reviewed the new pronouncements to the extent applicable to it
and based on its evaluation has determined that it does not have any significant impact in its financial statements.

E. Major Estimates made in preparing Financial Statements

1. Useful life of property, plant and equipment

The estimated useful life of property, plant and equipment is based on a number of factors including the effects
of obsolescence, demand, competition and other economic factors (such as the stability of the industry and
known technological advances) and the level of maintenance expenditures required to obtain the expected
future cash flows from the asset.

Useful life of the assets other than Plant and machinery are in accordance with Schedule II of the Companies
Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and is
adjusted prospectively, if appropriate.

2. Post-employment benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and
withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary
increases and the inflation rate. The Company considers that the assumptions used to measure its obligations
are appropriate and documented. However, any changes in these assumptions may have a material impact on
the resulting calculations.

3. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with
Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood of the
contingent events has required best judgment by management regarding the probability of exposure to potential
loss. Should circumstances change following unforeseeable developments, this likelihood could alter.

16.2 Preference Share Capital issued by the company are treated as Compound Financial Instruments in terms of Ind
AS 32- Financial Instrument: Presentation. Accordingly same is classified as other equity and borrowings. Necessary
disclosures are given in note no. 17 & 18

16.3 The Company has only one class of equity shares having a par value of Rs. 5 per share. Each Shareholder is
eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of
shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their
shareholding.

24.1 Working capital loans from banks:

Primary Security:

I. First charge by way of hypothecation of raw material, stock-in-progress, finished goods, semi-finished goods,
stores, spares and book-debts and other current assets of the company on Pari-Passu basis among consortium
banks and the personal guarantees of two Director's of the Company & Corporate Guarantee of Two Group
Companies M/s Ganga Projects Private Limited and M/s B.S. Traders Private Limited (i.e. With SBI/BOB/
BOM).

Collateral Security:

I. First charge by way of equitable mortgage of lease hold factory Land and Building admeasuring 82 Bigha 4
Biswa situated at Village- Ojhada,Hamirgarh, Bhilwara on pari-passu basis among consortium member bank
(i.e. With SBI/BOB/BOM)

II. First charge on the entire assets of the company except two flats purchased by the company bearing no. A-
5901 and A-5902 in Trump Tower, Mumbai by availing term loan from Kotak Mahindra bank. However,
consortium will get the original property documents after repayment of the said Loan.

The amount recognized as expenses for this defined contribution plan in the financial statement is Rs. 223.51
lakhs (P.Y.-Rs. 231.04 Lakhs) which includes Rs.8.04 Lakhs (P.Y.- Rs.7.83 Lakhs ) towards contribution for key
managerial personnel.

J) Defined Benefits Plan

Gratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of 5
years or more is entitled to gratuity at 15 days salary (15/26 * last drawn basis salary plus dearness allowances)
for each completed year of five years or more (service of 6 Months and above is rounded off as 1 completed year)
subject to maximum of Rs. 20 lakhs as per rules/policy of the Company.

Leave Encashment

The company is offering an Other Long term benefits to all its permanent employees through a scheme of
compensated absence plan. Under this plan, an employee can accumulate and carry forward his leaves balance
in future periods which he can either avail in future or encash the same as per rules/policy of the Company.

III) Risk exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company

is exposed to various risks as follow -

A) Salary Increases - Actual salary increases will increase the Plan's liability. Increase in salary increase rate
assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets
lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan's liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation
can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan's liability.

Note No. 48 - Disclosure as per Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’

(i) Contingent liabilities :

Claims against the company not acknowledged as debts :

Excise duty, Sales tax and Income Tax demand (Net of amount charged to Statement of Profit & Loss- Rs. Nil)
(Previous Year- Rs. Nil) under appeal Rs. 1335.89 Lakhs (31st March, 2023- Rs. 1236.95 Lakhs)

(ii) Commitments

Estimated amount of contract remaining to be executed on capital account and not provided for amounting to
Rs.2.60 Lakhs (31st March, 2024 - Rs. 24.16 Lakhs )

Note No.49 - Disclosure as per Ind AS 107 ‘Financial Instrument Disclosures’

A) Capital management

The capital structure of the Company is based on management's judgement of its strategic and day-to-day needs
with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the
Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company
manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure. The primary objective of Company's capital management is to maximize shareholder's value and to
maintain an appropriate level of debt and equity. The company manages its capital structure and makes adjustments
in the light of changes in economic environment and the requirements of financial covenants.The company manages
its capital using the Capital Gearing Ratio which is Net debt divided by total equity. For the purpose of Company's
Capital Management , capital includes issued equity share capital and other equity (excluding preference share
capital) and net debt comprises of long term and short term borrowings less cash and cash equivalent.

B) Financial risk management

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 is set by the Managing Board. The Company's principal financial
liabilities comprise loans and borrowings, trade payables and other payables. The main purpose of these financial
liabilities is to finance the company's operations. The company's principal financial assets include trade & other
receivables and cash and short term deposits.

i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect
the Company's income. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the
Company. All such transactions are carried out within the guidelines set by the risk management committee.

a) Foreign Currency Risk

Majorly, the company is operating their business in its functional currency, therefore the company is not
exposed to any significant risk with regards to fluctuation in foreign currency rates.

b) 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 rate. In order to optimize the Company's position with regards to
interest income and interest expenses and to manage the interest rate risk, treasury performs a
comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio.

At the reporting date the interest rate profile of the Company's interest-bearing financial instruments is as
follows:

ii) Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed.
It encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration risks. To manage this, the Company periodically assesses the financial reliability of customers,
taking into account financial conditions, current economic trends, analysis of historical bad debts and ageing
of accounts receivable and based upon that categories the same for write off. Where loans or receivables
have been written off, the Company continues to engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognized in Statement of Profit and Loss.

A. Provision for Expected Credit or Loss

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses:

The Company has assets where the counter-parties have sufficient capacity to meet the obligations
and where the risk of default is very low. Accordingly, no loss allowance for impairment has been
recognized.

(b) Financial assets for which loss allowance is measured using life time expected credit losses:

The Company provides loss allowance on trade receivables using life time expected credit loss and
as per simplified approach.

B. Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk was Rs.5694.09 Lakhs as at 31st March, 2025 and Rs. 5386.92 Lakhs as at 31st March, 2024
being the total of the carrying amount of balances with banks, short term deposits with banks, trade
receivables, margin money, loans & advances and other financial assets excluding equity investments.

Note No. 50 - Disclosure as per Ind AS 108 ‘Operating Segments’

The Company's engaged in the business of manufacturing and laying the jointing of Asbestos Cement Products, which
as per Indian Accounting Standard - 108 ‘Operating Segments' and in the opinion of the management, is considered to
be the only reportable operating segment.

Note No. 51 - Disclosure as per Ind AS 113 ‘Fair Value Measurement’

Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that
are:-

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication
about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments
into three levels prescribed under the accounting standard.

Fair value are categorised into different level in a fair value hierarchy which are as follows:

Level 1 Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2 The fair value of financial instruments that are not traded in an active market is determined using

valuation techniques which maximise the use of observable market

Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3.

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*The Company has initiated the process of identification of suppliers registered under Micro and Small Enterprise
Development Act, 2006, by obtaining confirmations from all suppliers. Information has been collated only to the extent of
information received.

Note No. 56 - Licensing agreement with Gujarat Composite Ltd.

The Company has entered into License Agreement with Gujarat Composite Limited (GCL-Licensor) on 07.04.2005 for
running their unit for manufacturing of AC Sheet and Cement manufacturing units at Digvijay Nagar, Ranip, Ahmedabad
for a period of 84 month on license basis, extendable to further period of 84 months on mutual consent. As per the
License Agreement upon expiry of license period, the GCL would be under obligation to take over all the current assets
of Kanoria Energy & Infrastructure Ltd. (Licensee) pertaining to or in connection with the operation of AC Sheet and
Cement manufacturing units at their book value and make the payment if any due to be received for this to the Licensee
forthwith.

Further, after expiry of the license period or the extended period, the Licensee shall vacate and handover the possession
of AC Sheet and Cement manufacturing units to the Licensor upon receipt of payment if any due to be received from the
Licensor under this agreement. The company served notice in March, 2012 to GCL to pay all dues including book value
of current assets pertaining to or in connection with the operation of AC sheet and Cement manufacturing unit as per the
license agreement. However, the Licensor has failed to take over the possession of Unit by making payment of dues on
expiry of the license period.

Subsequently an application dated 23.05.12 was filed by Labour Union viz Gujarat Mazdoor Panchayat, before the
Hon'ble Industrial Tribunal Ahmedabad, wherein Industrial Tribunal vide its order dated 07.06.2012 directed to Kanoria
Energy & Infrastructure Ltd. to run the Production activities & continue to pay wages, in the same manner to all those
workers who are employed and utilized by Kanoria Energy & Infrastructure Ltd for the production activities at the factory
situated at Digvijay Nagar, Ranip, Ahmedabad provided that no hindrance, obstructions and the like is caused by GCL
and/or other authorities. GCL is party in the said proceeding and had given an undertaking to the Industrial Tribunal to
this effect. In spite of notices being served to Licensor from time to time, possession of the unit has not been taken back
by GCL. Based on the above facts, circumstances and uncertainty of time regarding taking back of the possession of the
Unit by making payment of dues in terms of licence agreement, the company has decided not to charge interest on
balance recoverable from GCL from Financial Year 2014-15 onwards. Further Bonus in addition to leave and license
fees recoverable from GCL has also not been provided in the books since Financial Year 2014-15 onwards. Year wise
amount not provided in the books since financial year 2014-15 are as under: -

Note 60 : Disclosure of Borrowings on Security of Current Assets

The Company has borrowed funds from banks on the basis of security of current assets. The quarterly returns filed by
the company to bank or financial institution are in line with books of accounts.

Note 61 : Disclosure of Benami Property

The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder.

Note 62 : Disclosure of Undisclosed Income

There are no transaction which is not recorded in the books of accounts and 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.

Note 63 : Disclosure of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Note 64 : Disclosure of Wilful Defaulter

The company has not declared as a wilful defaulter by any bank or financial institution or any other lender during the
financial year.

Note 65 : Disclosure of Registration of Charge with ROC

The Company has filed all type of applicable charges or satisfaction with Registrar of Companies (ROC) in time, So
there no charges of satisfaction is pending for registration with ROC as on balance sheet date.

Note 66 : Disclosure of Compliance with Number of Layer Companies

The company is neither a holding company of any subsidiaries companies not a subsidiary company of any holding
company, hence The company is not covered under clause (87) of section 2 of the Companies Act along with the
Companies (Restriction on number of Layers) Rules, 2017.

Note 67 : Disclosure of Scheme of Arrangement

The Company has not entered in any Scheme of Arrangements which has been approved by the Competent Authority
in terms of sections 230 to 237 of the Companies Act, 2013.

Note 68 : Disclosure of Title Deeds of Immovable Property

The title deeds of all immovable properties are in the name of Company.

Note 69 :

During the year, the Company has not granted any loans or advances in the nature of loans which are either repayable
on demand or without specifying any terms or period of repayment to promoters, directors, KMPs and the related parties
( as defined under Companies Act,2013) either severally or jointly with any other person.

Note 70 :

During the year Company has not advances 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:

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries
Note 71 :

During the year Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
party) with the understanding ( whether recorded in writing or otherwise) that the intermediary shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries
Note 72 :

The Company has not revalued its property, Plant and Equipment accordingly disclosure as whether the revaluation is
based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered valuers and Valuation)
Rules, 2017 is not applicable to the Company

Note 73:

The Board of the company opined that Assets other than Property, Plant and Equipment, Intangible Assets and non
current investments have a value on realisation in the ordinary course of business at least equal to the amount at which
they are stated.

Note 74:

The Company has not revalued its Property, Plant and Equipment during the Financial Year.

Note 75 :

Comparative Financial Information ( i.e. amounts and other disclosures of preceding year ) presented above, is included
as an integral part of the current year's financial statements and is to be read in relation to the amounts and other
disclosures relating to current year. Figures of Previous Year are regrouped/ reclassified wherever necessary to correspond
to figures of current year.

As per our Report of even date attached
For K.N.GUTGUTIA & CO.

Firm Registration No. 304153E
Chartered Accountants

Sd/- Sd/- Sd/-

Kailash Chandra Sharma Sanjay Kumar Kanoria Rajiv Lall Adya

Partner Managing Director Director

M.No.050819 DIN : 00067203 DIN : 06915169

UDIN: 25050819BMLCMH6318

Sd/- Sd/-

New Delhi, Shyam Behari Vijay Lokesh Mundra

23rd May,2025 Chief Financial Officer Company Secretary