27. Fair Value Measurement

The management assessed that the fair values of short term financial assets and liabilities
significantly approximate their carrying amounts largely due to the short term maturities of these
instruments. The fair value of financial assets and liabilities is included at the amount at which
the instrument could be exchanged in a current transaction among willing parties, other than in
a forced or liquidation sale.

The Company determines fair values of long term financial assets and financial liabilities by
discounting contractual cash inflows/ outflows using prevailing interest rates of financial
instruments with similar terms. The fair value of investment is determined using quoted net
assets value from the fund. Further, the subsequent measurement of all finance assets and
liabilities (other than investment in mutual funds) is at amortized cost, using the effective interest
method.

Discount rates used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on
the incremental borrowing rate of the borrower which in case of financial liabilities is the
weighted average cost of borrowing of the Company and in case of financial assets is the
average market rate of similar credits rated instrument.

The Company maintains policies and procedures to value financial assets or financial liabilities
using the best and most relevant data available. In addition, the Company internally reviews
valuation, including independent price validation for certain instruments.

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within
the fair value hierarchy described as follows, based on the lowest level input that is significant to
the fair value measurement as a whole.

Level -1

Quoted (unadjusted) price is active market for identical assets or liabilities
Level 2:

Valuation technique for which the lowest level input that has a significant effect on the fair value
measurement are observed, either directly or indirectly.

Level 3

Valuation technique for which the lowest level input has a significant effect on the fair value
measurement is not based on observation market data.

28. Financial Instruments and Risk Review

i)Capital Management

The Company's capital management objectives are:-

The Board policy is to maintain a strong capital base so as to maintain inventor, creditors and
market confidence and to future development of the business. The Board of Directors monitors
return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through
monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a
monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net
debt divided by total equity. Net debt and total equity are based on the amounts stated in the
financial statements.

Debt-to-equity ratio is as follows

ii)Credit Risk

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

Financial instruments that are subject to concentration of credit risk principally consists of trade
receivable investments, derivative financial instruments and other financial assets. None of the
financial instruments of the Company results in material concentration of credit risk.

Exposure to credit risk:-The carrying amount of financial assets represents the maximum credit
exposure. The maximum exposure to credit risk is as under, being the total of the carrying
amount of balances with trade receivables

Trade receivables:-Ind AS requires expected credit losses to be measured through a loss
allowance. The Company assesses at each date of financial statement whether a financial asset
or group of financial assets is impaired. 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 12
months expected credit losses or at an amount equal to the life time expected credit losses, if
the credit risk on the financial asset has increased significantly since initial recognition.

Before accenting any new customer, the Company uses an external/internal credit scoring
system to asses potential customer's credit quality and defines credit limits by customer. Limits
and scoring attributed to customer are reviewed on periodic basis.

iii)Liquidity Risk:-a)Liquidity risk management:-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. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.

b)Maturities of financial liabilities:-The following table details the remaining contractual
maturities for its financial liabilities with agreed repayment period. The amount disclosed in the
table has been drawn up based on the undiscounted cash flow of financial liabilities based on
the earliest date on which the Company can be required to pay. The table includes both interest
and principal cash flows.

c)Maturities of financial assets:- The expected maturity for financial assets of the Company are
all current.

iv)Market Risk:-Market risk is risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in the market prices. Such changes in the value of
financial instruments may result from changes in the foreign currency exchange rate, interest
rate, credit, liquidity and other market changes.

29. Contingent liabilities not provided for in respect of followings:

(a) Value of Bonds executed by the company in favour of Commissioner, Central Excise and
Customs, Government of India under the Export Promotion Capital Goods Scheme of the
Government of India for import of capital goods Rs. 95.66 Lakhs inclusive interest (Previous
Year: Rs. 660.33 Lakhs) for which export obligations are met and discharge certificate are
awaited.

(b) The Hon'ble Civil Court Sub- Division, Aurangabad has passed an order on 13.09.2018 in
favour of Priti Engineering (Prop. Bharat Bansi Bhalerao) for recovery of Rs. 1.83 Lakhs along
with interest @6% p.a. which is appealed against by the Company before the Additional District
and Session court, Paithan district, Sambhajinagar.

(c) The CIT(Appeal) has disposed off the case pertaining to the assessment year 2018-19
(Financial year 2017-18) allowing partial relief to the assesee and partially it is remanded back
to the assessing officer for re-verification and disposal. The consequential liability, if any, is not
ascertainable.

(d) Appeal filed by Income Tax Department before the Hon'ble High Court of Bombay, bench at
Aurangabad against an order of the Income Tax Appealate Tribunal, Pune for the assessment
year 2010-11 in which addition of Rs. 111.43 Lakhs are deleted resulting into relief of Income
tax Rs. 37.87 Lakhs

(e) The TDS demands raised by the income tax department for the Financial year 2020-21 to
2024-25 amounting to Rs. 5.49 Lakhs for Aurangabad branch which are under reconciliation.

(f) In respect of Fiscal liabilities that may arise on account of non-observance of provisions of
various fiscal statues, Companies Act, Value Added Tax and other related laws and interest /
other charges chargeable on demands raised and not paid if any, amount is not ascertainable.

(g) A demand notice for Rs. 20.70 Lakhs issued by Goods and Service Tax Department in
respect of Excess outward tax in GSTR1 compared to GSTR3B; Excess ITC claimed in
GSTR3B for FY 2019-20 for Aurangabad branch. The appeal against this order has been filed
towards appellate authority with a pre-deposit of Rs. 1 Lakhs.

30. Estimated amount of contracts remaining to be executed on capital account and not provided
for - NIL

31. The net worth of the company has been fully eroded; however, the accounts of the Company
for the year ended 31st March, 2025 have been prepared on a going concern basis in veiw
subsequent allotment of preferential equity shares of Rs. 1960.00 Lakhs inclusive of security
premium resulting in a positive net worth.

32.In the opinion of the Board, Current and Non-current Assets, Loans and Advances are
approximately of the value stated, if realized in the ordinary course of the business.

33. Certain accounts of Trade Receivable, Trade Payable, Unsecured Loans, Employees, Loans
and Advances are subject to confirmations and reconciliations, if any. The difference as may be
noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the
management, the ultimate difference will not be material.

34. Due to carried forward business losses and unabsorbed depreciation, the company is not
recognizing any deferred tax assets, as there is no virtual certainty regarding their recoverability.

35. Managerial Remuneration:

37.The Company is exclusively engaged in the business of manufacturing of Co-extruded Tubes and
related activities. This in the context of Ind AS 108 “Operating Segments”, constitutes one single primary
segment. Geographical Segment is identified as the secondary segment, the details of the same is
givnebelow:-
38.In the opinion of the Board, property, plant and equipments have been stated at cost, which
is at least equal to or less than the realizable value if sold in the ordinary course of business.
Consequently, the management is of the opinion that there is no impairment of assets.

42. Difference in Foreign Exchange Gain (Loss) included in other income

43. The company has not made any loans and advances in the nature of loan, provided any
security or guarantee and granted securies during the year. The investments made has been
disclosed in note no 4 to the financial statements which within the limit prescribed under section
186 of the Act.

44. The net profit (loss) for the purpose of measurement of basic and diluted earnings per share
in terms of Ind AS - 33 on Earnings Per Share has been calculated as under:

The foreign currency outstanding has been translated at the rates of exchange prevailing on the
Balance Sheet date in accordance with Ind AS 21 - "The Effects of Changes in Foreign
Exchange Rates”.

46. No proceeding has been initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder.

47. The company has used the borrowings from banks and financial institutions for the purpose
for which it was taken at the balance sheet date. The monthly returns or statements of current
assets filed by the Company with banks or financial institutions are in agreement with the books
of accounts.

48. The company is not declared wilful defaulter by any bank or financial Institution or other
lender during the year.

49. During the year, the company has not carried out any transactions with companies struck off
under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

50. During the year, the company has registered and satisfied charges with Registrar of
Companies, wherever required.

51. The Company does not have any investment property, hence related disclosure is not
required.

52. 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 (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.

53. There is no case of search or survey of any other cases related to income surrendered or
disclosed in any tax assessments under the Income Tax Act, 1961.

56.The Company has made borrowings from banks on the basis of security of current assets
and statements of current assets filed by the Company with banks are largly in agreement with
the books of accounts. There have been some differeences of insignificant nature between bank
statement and the unaudited books of account maintained by the company. Discrepancies are
mentioned below.

57. The company has not met with the applicability criteria of provisions of section 135 of the Act
with respect to corporate social responsibility, hence the related information has not been
provided.

58. Previous year's figures have been re-groupped/ re-arranged wherever necessary.

As per our report of even date attached

For Gautam N Associates For and on behalf of the Board of Director

Chartered Accountants
FRN103117W

Arvind Machhar Sandeep Machhar

Managing Director Director

Gautam Nandawat DIN: 00251843 DIN: 00251892

Partner
M No 32742

UDIN :25032742BMJJLA4489

Shrikant Wani Jyoti Bajpai

Chief Financial Officer Company Secretary

Place : Chhatrapati Sambhajinagar
Date: 28th May 2025