(C) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the shareholders' approval in the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(A) Capital Reserve

It represents the gain of capital nature.

(B) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends paid, or other distributions out of reserve to shareholders.

(i) Vehicle Loan is secured by the first charge on the Car financed and is repayable in Equated Monthly Instalments (EMIs). It carries interest of 9.65% p.a.

(ii) SBI (GECL) loan is secured against factory land and building situated at mauza Deokahi, Tappa Keotali, Pargana Haveli, Tehsil Chauri Chaura, Distt Gorakhpur. Loan carries interest @ (EBLR) 75 bps at present 7.40% p.a. subject to maximum 9.25% p.a. loan is repayable in 36 instalments starting from October 2021.

(iii.) SBI TL A/c 41586436329 is secured against factory land & building situated at mauza Deokahi, Tappa Keotali, Pargana Haveli, Tahsil Chauri Chaura, Distt Gorakhpur. Loan carries interest @ (EBLR) 1 bps at present 9.90% p.a. Loan repayable in 84 instalments starting from October 2023.

Security

(a) Working capital facilities are secured by the first charge on all the current assets of the company and certain assets of the director. Loan is further secured by the personal guarantee of promoter directors. It carries interest of 7.40% to 8.65% p.a. as at the end of the year.

35. Disclosure pursuant to Ind AS 19 “Employee Benefits”:

(a) Defined Contribution Plan

The employees of the Company are members of a state-manged retirement benefit plan namely Provident fund and Pension and Employee State Insurance (ESI) operated by the Government of India. The company must contribute a specified percentage of payroll costs to the retirement benefit and ESI schemes.

The company's only obligation with respect to such retirement and other benefit plans is to make the specified contributions. The Company has recognized the following amounts in the Income Statement during the year under 'Contribution to staff provident and other funds' (refer note 28)

(b) Defined Benefit Plan

The employees' Gratuity Fund Scheme, which is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to an additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(H) Risk Exposure-Asset Volatility

There is no such risk given the liability is unfunded as of the balance sheet date.

ii) Mortality rates considered are as per the published rates in the India Assured Lives Mortality (2012-14) Ultimate.

iii) Leave Policy: Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to31st December 2024 is available for encashment on separation from the Company up to a maximum of 30 days.

iv) The discount rate should be based on the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

v) The assumption of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.

38. Disclosure pursuant to Ind AS 17 "Leases":

(a) Where the company is Lessor

i. Operating Lease: The Company has not entered into any such operating lease.

ii. Finance Lease: The Company has not entered into any finance lease.

(b) Where the company is Lessee

i. Finance Lease: The Company has not entered into any finance lease.

ii. Operating Lease: The Company has not entered into any non-cancellable operating leases.

39. Financial Instruments

(i) Capital Management

The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long term product and other strategic investment plans. The funding requirements are met through equity and other long term/short term borrowings. The Company's policy is aimed at combination of short term and long term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The capital structure of the company consists of debt, which includes the borrowings including temporary overdrawn balance, cash and cash equivalents including short term bank deposits, equity comprising issued capital, reserves and non-controlling interests. The gearing ratio for the year is as under:

(ii) Categories of financial instruments Calculation of fair values

The fair values of financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments.

a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as of the Balance Sheet date. However, there is no such investment as of the balance sheet date.

b) The fair value of bank borrowings carrying floating rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

c) Cash and Cash equivalents, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

Fair value measurements recognized in the balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(iii) Financial risk management objectives:

The Company's principal financial liabilities comprise loans from banks, financial institutions, and trade payables. The main purpose of these financial liabilities is to raise finance for the Company's operations. The Company has various financial assets such as trade receivables, cash and short-term deposits, which arise directly from its operations.

The main risk arising from the Company's financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of Directors reviews and policies for managing each of these risks.

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in the case of all the financial instruments covered below is restricted to their respective carrying amount.

Trade and other receivables

Customer credit is managed by each business unit subject to the Company's established policies, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 90 90-day credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trends, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

Other Financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks.

The Company held cash and cash equivalents of Rs. 39.48 Lacs on March 31, 2025 (March 31, 2024: Rs. 23.85 Lacs). Cash and cash equivalents are held with reputable and credit-worthy banks.

Individual risk limits are set for each counter-party based on the financial position, credit rating and past experience. Credit limits and concentration or exposures are actively monitored by the management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(b) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

(I) Foreign Currency Risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The company's exposure is mainly denominated in USD on account of imports. The exchange rates have changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has put in place a Financial Risk Management Policy to identify the most effective and efficient ways of managing currency risks. The Company uses derivative instruments (mainly foreign exchange forward contracts) to mitigate the risk of changes in foreign currency exchange rates.

The Company does not use derivative financial instruments for trading or speculative purposes.

(II) Interest rate risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company's cash flows as well as costs. The Company also uses a mix of interest rate-sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like short-term loans.

Interest rate sensitivity analysis

As at March 31, 2025, interest-bearing financial liability (secured loan from banks) stood at Rs. 1312.63 Lacs, and was subject to variable interest rates. An increase/decrease of 50 basis points in interest rates at the balance sheet date would result in a decrease/increase in profit before tax of Rs. 6.56 lacs.

The risk estimates provided assume a parallel shift of 50 basis points in interest rate. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as of that date. The period-end balances are not necessarily representative of the average debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

The fair value of financial instruments:

All financial assets are initially recognized at the fair value of consideration paid. Subsequently, financial assets are carried at fair value or amortized cost less impairment. Where non-derivative financial assets are carried at fair value, gains and losses on re-measurement are recognized directly in equity unless the financial assets have been designated as being held at fair value through profit or loss, in which case the gains and losses are recognized directly in the statement of profit and loss. Financial assets are designated as being held at the fair value through profit or loss when it is necessary to reduce measurement inconsistency for related assets and liabilities. All financial liabilities other than derivatives are initially recognized at fair value of consideration received net of transaction costs as appropriate (initial cost) and subsequently carried at amortized cost.

(III) Liquidity risk

The Company follows a Conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has an overdraft facility with banks to support any temporary funding requirements.

The Company believes that current cash and cash equivalents, tied-up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

Liquidity table:

Liquidity tables are drawn up based on the cash flows of financial liabilities based on the earliest date on which the Company can be required to pay is disclosed in Note no. 47.

(IV) Other price risk

The Company is not exposed to any significant equity price risk arising from equity investments, as on 31st March 2024. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

(V) Equity price sensitivity analysis

There is no exposure to equity price risks as at the reporting date or as at the previous reporting date.

40. There is no amount due and outstanding to be credited to the Investor Education & Protection Fund as at March 31, 2025.

49. Additional Regulatory Information

Additional Regulatory Information pursuant to Clause 6L of general instructions for preparation of Balance Sheet as given in Part I of division II of Schedule III of the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

(a) Title deeds of Immovable Property not held in the name of the Company All immovable properties are held in the name of the company.

(b) Fair Value of Investment Property

The Company does not have any investment property.

(c) Revaluation of Property, Plant & Equipment and Intangible Assets

The Company has not revalued any of its Property, Plant & Equipment, and Intangible Assets, during the year.

(d) Details of Benami Property held

The Company does not have any Benami Property, where any 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.

(e) Borrowings from banks or financial institutions on the basis of security of current assets

The Company has a Working Capital limit of Rs. 2620 Lacs from SBI, comprising of Fund-based limits of Rs. 1070 Lacs and nonfund-based limits of Rs. 1550 Lacs. For the said facility, the Company has submitted Stock and debtors statements to the bank ona monthly basis as also the Quarterly Information Statements. The difference between value as per books of accounts and as perquarterly statements submitted with lenders are as under:

(f) Wilful Defaulter

The Company has not been declared as a wilful defaulter by any lender who has the power to declare a company as a wilful defaulter at any time during the financial year or after the end of the reporting period but before the date when the financial statements are approved.

(g) Relationship with struck-off Companies

The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(h) Registration of charges or satisfaction thereof with Registrar of Companies

There are no charges or satisfaction thereof yet to be registered with the Registrar of Companies beyond the statutory period as on the date of the Balance Sheet.

(i) Compliance with a number of layers of companies

There is no non-compliance of provisions regarding the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on Number of Layers) Rules, 2017.

(j) The Company has not advanced or loaned or invested funds to any other person(s) or entity (is), 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.

(k) The Company has not received any funds 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 to or on behalf of the Ultimate Beneficiaries.

(l) Undisclosed Income

The Company does not have any transactions which is not recorded in the books of accounts but have 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.)

(m) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Cryptocurrency or virtual currency during the year.

(n) Compliance with approved Scheme(s) of Arrangements

During the year, no scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

01 Decrease in long-term borrowing has resulted into variance in ratio

02 Increase in profit has resulted into increase in ratio

03 Increase in sales has resulted into increase in ratio

04 Increase in creditors has resulted into variance in ratio

05 Increase in sales has resulted into increase in ratio

51. Figures of the previous year have been regrouped/rearranged wherever required to make them comparable with those of the current year. Figures have been rounded off to the nearest rupee in lacs.