1.18 Provisions and contingent liabilities

A provision is recognised 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. 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. The unwinding of the
discount is recognised as finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but will probably not, require an outflow of resources. When there is a possible
obligation of a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision disclosure is made.

1.19 Earnings per share

Basic earnings per equity share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted average
number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per equity share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares.

1.20 Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short¬
term investments with an original maturity of three months or less.

1.21 Leases

Where the company is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership
of the asset are classified as operating leases. Assets given on operating lease by the company are
included in property, plant and equipment. Lease income is recognised in the statement of profit
and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as
an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage
costs, etc. are recognised immediately in the statement of profit and loss.

Where the company is the lessee

Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is
accounted at the lease commencement date.

Initially the right-of-use asset is measured at cost which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any
initial direct costs incurred.

The lease liability is initially measured at the present value of the lease payments, discounted using
the Company's incremental borrowing rate. It is remeasured when there is a change in future lease
payments arising from a change in an index or a rate, or a change in the estimate of the guaranteed
residual value, or a change in the assessment of purchase, extension or termination option. When
the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in the statement of profit and loss if the carrying
amount of the right-of-use asset has been reduced to zero.

The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less
accumulated amortisation and cumulative impairment, if any. The right-of-use asset is amortised,
using the straight-line method over the period of lease, from the commencement date to the end of
the lease term or useful life of the underlying asset whichever is earlier. Carrying amount of lease
liability is increased by interest on lease liability and reduced by lease payments made.

Lease payments associated with following leases are recognised as expense on straight-line basis:

(i) Low value leases; and

(ii) Leases which are short-term.

1.22 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the cost of the respective asset till such time that it is required to complete and prepare
the assets to get ready for its intended use. All other borrowing costs are expensed in the period
they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
with the borrowing of funds.

1.23 Dividend payable

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and
interim dividend are recorded as a liability on the date of declaration by the company's board of
directors. A corresponding amount is recognised directly in equity.

The company pays / distributes dividend after deducting applicable taxes.

34. Pursuant to the special resolution passed by the shareholders at the Extra Ordinary General
Meeting held on 13^th November, 2024 vide video conferencing, the Company has
allotted 2,02,00,000 (Two Crore Two Lakh) share warrants on a preferential basis, in accordance
with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and
other applicable provisions. Each warrant confers a right upon the holder to subscribe to one equity
share of the Company of face value Rs. 1/- each at an exercise price of Rs. 18.80 per warrant. The
Company has received 25% of the consideration amounting to Rs. 949.40 Lakhs against these
warrants. The balance amount of Rs. 2,848.20 Lakhs is receivable upon exercise of these warrants.
The warrants are exercisable within 18 months from the date of allotment. The proceeds from the
issue are earmarked to be utilized for meeting the working capital requirements of the Company.

36. Other Statutory Information

(i) The company do not have any benami property, where any proceeding has been initiated or pending
against the group for holding any benami property.

(ii) The company do not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

(iii) The company have not traded or invested in Crypto currency or Virtual Currency during the financial
year.

(iv) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(v) 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 group
shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vi) 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

37. Subsequent events

No significant adjusting event occurred between the balance sheet date and date of the approval of
these financial statements by the board of directors of the company requiring adjustment or
disclosure.

38. Previous period figures have been regrouped/ reclassified, wherever necessary, to conform to current
periods classification.

39. Information with regard to other matters, as required by Schedule III to the Act is either nil or not
applicable to the company for the year.

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

For A Sachdev & Co For Kesar Petroproducts Limited

Chartered Accountants

CA B.K. Agarwal Ramjan Shaikh Dinesh S. Sharma

Partner Whole Time Director Chairman & Director

Membership No. :090771
Firm Regn. No. :001307C
Place : Mumbai

Date : 28th May, 2025 Jignesh Desai Nisha Jain

Chief Financial Officer Company Secretary