M. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, for which it is
probable that a cash outflow may be required
and a reliable estimate can be made of the
amount of the obligation. The amount
recognized as a provision is the best estimate of

the consideration required to settle the present
obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to
settle the present obligation, its carrying amount
is the present value of those cash flows (when
the effect of the time value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to be
recovered from a third party, a receivable is
recognized as an asset if it is virtually certain that
reimbursements will be received and the
amount of the receivable can be measured
reliably.

Contingent liabilities are disclosed after
evaluation of the facts and legal aspects of the
matter involved, in line with the provisions of Ind
AS 37. The Company records a liability for any
claims where a potential loss probable and
capable of being estimated and discloses such
matters in its financial statements, if material.
For potential losses that are considered possible,
but not probable, the Company provides
disclosures in the financial statements but does
not record a liability in its financial statements
unless the loss becomes probable.

N. REVENUE RECOGNITION

Sale of Goods Revenue is recognized to the
extent that it is probable that the economic
benefits will flow to the Company and the
revenue can be reliably measured, regardless of
when the payment is being made. Revenue is
measured at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment, net of
returns and allowances, trade discounts and
volume rebates. Sales of products is net of
Goods and Service Tax.

Revenue is recognized when the significant risks
and rewards of ownership have been transferred
to the customer, recovery of the consideration is
probable, the associated costs can be estimated
reliably, there is no continuing management
involvement with the goods nor it exercises
effective control over the goods and the amount

Defined Benefit Plans

The Company provides for gratuity, a defined
benefit retirement plan to the employees
whoever has completed five years of service with
the Company at the time of retirement, death
while in employment or on termination of
employment or otherwise as per the provisions
of The Payment of Gratuity Act, 1972. Company
accounts for liability of future gratuity benefits
bases on an external actuarial valuation on
projected unit credit method carried out
annually for assessing liability as at the balance
sheet date.

P. FOREIGN CURRENCY TRANSACTIONS

The functional currency of the Company is
Indian rupee. Transactions denominated in
foreign currencies are normally recorded on
initial recognition at the exchange rate
prevailing at the time of transaction. Monetary
items (i.e. liabilities and assets etc.) denominated
in foreign currency at the year-end are
translated at the functional currency closing rate
of exchange at the reporting date.

Any income or expenses on account of
exchange difference either on settlement of
monetary items or on reporting these items at
rates different from rates at which these were
initially recorded / reported in previous financial
statements are recognized as income / expense
in the statement of profit and loss except in
cases where they relate to acquisition of fixed
assets in which case they are adjusted to the
carrying cost of such assets.

Q. INCOME TAXES

Current Income Tax assets and liabilities are
measured at the amount expected to be
recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date.
Current income tax relating to items recognized
outside profit or loss is recognized outside profit
or loss i.e. in other comprehensive income or
equity.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to

interpretation and establishes provisions where
appropriate.

Deferred tax is provided on temporary
differences between the tax bases of assets and
liabilities and their carrying amounts at the
reporting date. Deferred tax is measured using
the tax rates and the tax laws enacted or
substantively enacted as at the reporting date.
Deferred tax assets and liabilities are offset if
such items relate to taxes on income levied by
the same governing tax laws and the Company
has a legally enforceable right for such set off.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to
the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are reassessed
at each reporting date and are recognized to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset
to be recovered. Deferred tax relating to items
recognized outside profit or loss is recognized
outside profit or loss i.e. in other comprehensive
income.

R. FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are

recognized when the Company becomes a party
to the contractual provisions of the instruments.
Financial assets and financial liabilities are

initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or
issue of financial assets and financial liabilities
(other than financial assets and financial
liabilities at fair value through profit or loss
("FVTPL")) are added to or deducted from the
fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial
liabilities at fair value through profit or loss are
recognized immediately in statement of profit
and loss.

FINANCIAL ASSETS

Initial recognition and measurement:

On initial recognition, a financial asset is
recognized at fair value. All recognized financial

assets are subsequently measured in their
entirety at either amortized cost or fair value
through profit or loss (FVTPL) or fair value
through other comprehensive income (FVOCI)
depending on the classification of the financial
assets. Financial assets are not reclassified
subsequent to their recognition, except if and in
the period the Company changes its business
model for managing financial assets.

Derecognition

The Company derecognizes a financial asset
when the contractual rights to the cash flows
from the financial asset expire or it transfers the
contractual rights to receive the cash flows from
the asset.

Investment in Subsidiaries:

The Company's investment in equity
instruments of Subsidiaries are accounted for at
cost as per Ind AS 27, including adjustment for
fair value of obligations, if any, in relation to such
subsidiaries.

Impairment of financial assets

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through
a loss allowance. The Company recognizes
lifetime expected losses for all contract assets
and / or all trade receivables that do not
constitute a financing transaction. For all other
financial assets, expected credit losses are
measured at an amount equal to the 12-month
expected credit losses or at an amount equal to
the lifetime expected credit losses, if the credit
risk on the financial asset has increased
significantly since initial recognition.

FINANCIAL LIABILITIES AND EQUITY

INSTRUMENTS

Classification as equity

Equity instruments issued by the Company are
classified as either financial liabilities or as equity
in accordance with the substance of the
contractual arrangements and the definitions of
a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity
instruments issued by the Company are
recognized at the proceeds received, net of
direct issue costs. Repurchase of the Company's
own equity instruments is recognized and
deducted directly in equity. No gain or loss is
recognized in statement of profit and loss on the
purchase, sale, issue or cancellation of the
Company's own equity instruments.

Financial liabilities

Financial liabilities are recognized when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities
are initially measured at the amortized cost
unless at initial recognition, they are classified as
fair value through profit or loss. In case of trade
payables, they are initially recognized at fair
value and subsequently, these liabilities are held
at amortized cost, using the effective interest
method.

All financial liabilities are subsequently
measured at amortized cost using the effective
interest method. Financial liabilities carried at
fair value through profit or loss are measured at
fair value with all changes in fair value
recognized in the Statement of Profit and Loss.
Interest expense are included in the 'Finance
costs' line item. The effective interest method is
a method of calculating the amortized cost of a
financial liability and of allocating interest
expense over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments (including all
fees and points paid or received that form an
integral part of the effective interest rate,
transaction costs and other premiums or
discounts) through the expected life of the
financial liability, or (where appropriate) a
shorter period, to the net carrying amount on
initial recognition.

Derecognition of financial liabilities

A financial liability is de-recognized 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.

Offsetting

Financial assets and financial liabilities are offset,
and the net amount is reported in the balance
sheet if there is a currently enforceable legal
right to offset the recognized amounts and there
is an intention to settle on a net basis, to realize
the assets and settle the liabilities
simultaneously.

S. EARNING PER SHARE

Basic earnings per share is calculated by dividing
the net profit for the current year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. The number of shares used in computing
diluted earnings per share comprises the
weighted average share considered for
calculating basic earnings per share, and also the
weighted average number of shares, which
would have been issued on the conversion of all
dilutive potential equity shares. Potential dilutive
equity shares are deemed to be converted as at
the beginning of the period, unless they have
been issued at a later date. The number of equity
shares and potentially dilutive equity shares are
adjusted for bonus shares as appropriate.

T. DIVIDEND PAYMENT

A final dividend, including tax thereon if
applicable, on equity shares is recorded as a
liability on the date of approval by the
shareholders. An interim dividend, including tax
thereon if applicable, is recorded as a liability on
the date of declaration by the Board of directors.

U. OPERATING CYCLE

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realization in cash
or cash equivalents, the Company has

determined its operating cycle as twelve months
for the purpose of classification of its assets and
liabilities as current and non-current.

V. RECENT ACCOUNTING PRONOUNCEMENTS:

a. Application of new and revised Indian
Accounting Standards (Ind AS)

All the Ind AS issued and notified by the
Ministry of Corporate Affairs under the
Companies (Indian Accounting Standards)
Rules, 2015 (as amended) till the standalone
financial statements are authorised, have
been considered in preparing these
standalone financial statements.

Recent Accounting pronouncements

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 - 117 Insurance Contracts 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 and based on its
evaluation has determined that it does not
have any impact in its financial statements.

3. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in
conformity with recognition and measurement
principles of Ind AS requires the Management to
make estimates and assumptions considered in the
reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and
expenses during the year. The estimates and
underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are
recognized in the period in which estimates are
revised if the revision affects only that period or in the
period of the revision and future periods if the revision
affects both current and future periods.

The following are the key judgements and estimations
concerning the future and other sources of estimation
uncertainty at the end of the reporting period that
may have a significant risk of causing a material

outcome of any open tax assessments /
litigations, if any. Any difference is
recognized on closure of assessment or in
the period in which they are agreed.

Deferred income tax assets are recognized
to the extent that it is probable that future
taxable income will be available against
which the deductible temporary
differences, unused tax losses, unabsorbed
depreciation and unused tax credits could
be utilized.

(iii) Impairment of investments:

The Company reviews it's carrying value of
long-term investments in equity shares of
subsidiaries and other companies carried at
cost at the end of each reporting period. If
the recoverable amount is less than its
carrying amount, the impairment loss is
accounted for.

39. FINANCIAL INSTRUMENTS
(a) Capital Risk Management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders of the Company. The Company's objective
when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide
returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new
shares.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. The Company has complied with these covenants and there have been no breaches in the financial
covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or
processes for managing capital during the year ended March 31, 2025 and March 31, 2024.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes,
interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash
equivalents.

(c) Financial Risk Management objects and policies

In its ordinary operations, the company's activities expose it to the various types of risks, which are associated with
the financial instruments and markets in which it operates. The Company has a risk management policy which
covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest
rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the
summary of the main risks.

Market Risk

Market Risk is the risk that the rair value of future cash flows of a financial instrument will fluctuate because of the
change in the market prices. The Company is exposed in the ordinary course of its business to risks related to
changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest.
The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates.
The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will

Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to the USD related to the imports of its raw material and capital assets. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company's
functional currency (INR). Foreign currency exposures that are not hedged by derivative instruments outstanding
as on the balance sheet date are as under:

Derivative outstanding as at the reporting date - Nil

Particulars of unhedged foreign currency exposure as at the reporting date:

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss
to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit
worthiness as well as concentration risks.

Company's credit risk arise principally from the trade receivables and advances. Customer credit risk is managed
centrally by the Company and subject to established policy, procedures and control relating to the customer credit
risk management. Credit quality of a customer is assessed based on financial position, past performance,
business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms
are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number
of customers spread across diverse industries and geographical areas with no significant concentrations of credit
risk. The outstanding trade receivables are regularly monitored, and appropriate action is taken for collection of
overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. Expected contractual maturity for financial liabilities:

41. OTHER NOTES

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

b. The Company do not have any transactions with companies struck off.

c. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

period,

d. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

e. The Company have 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:

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

f. The Company have 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 Company 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 on behalf of the Ultimate Beneficiaries,

g. The Company have 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.

h. Company does not have any long-term contract including derivative contract for which there are any material
foreseeable losses.

i. There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

j. Previous year figures have been reworked, regrouped, re-arranged and reclassified, wherever necessary.

k. All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) till the standalone financial statements are authorised, have been considered
in preparing these standalone financial statements.

42. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of ' 0.70 per fully paid-up equity share of ' 10/- each for the
financial year 2024-25.

43. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 23, 2025.

As per our Report of even date

For NARENDRA SHARMA & CO. For DHABRIYA POLYWOOD LIMITED

Chartered Accountants

Firm Regn. No. 004983C DIGVIJAY DHABRIYA MAHENDRA KARNAWAT

Managing Director Whole-Time Director

(CA YOGESH GAUTAM) (DIN: 00519946) (DIN: 00519876)

Partner

M. No. 072676

HITESH AGRAWAL SPARSH JAIN

Jaipur, May 23, 2025 Chief Financial Officer Company Secretary