O. Provisions, Contingent Liabilities and Contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Company will be required to settle such obligation
and a reliable estimate can be made of the amount of such obligation.

The amount recognised 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 uncer¬
tainties surrounding the obligation. When a provision is measured using the cash flows esti¬
mated to settle the present obligation, its carrying amount is the present value of those cash
flows (where 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 recognised as an asset if it is virtually certain that
reimbursement will be recovered and the amount of the receivable can be measured reliably.

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources embodying economic
benefits or the amount of such obligation cannot be measured reliably. When there is a possible
obligation or a present obligation in respect of which likelihood of outflow of resources embody¬
ing economic benefits is remote, no provision or disclosure is made

P. Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year. Diluted earnings
per share is determined by adjusting the profit or loss attributable to equity shareholders and the
weighted average number of equity shares outstanding for the effects of all dilutive potential
equity shares.

Q. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include
cash on hand, deposits held at call with financial institutions/banks, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet...

R. Borrowings

Borrowing cost incurred in connection with the funds borrowed for acquisition/erection of assets
that necessarily take substantial period of time to get ready for intended use, are capitalized as
part of such assets. Interest income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for
capitalization. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs. All other borrowing costs are charged to revenue.

S. Inventories

Inventories are stated at the lower of cost and net realizable value. Net realizable value repre¬
sents the estimated selling price for inventories less all estimated costs of completion and cost
necessary to make the sale.

i) Cost of raw materials, components, stores, spares are valued at cost, determined on a first-
in-first-out basis.

ii) Materials and supplies held for use in production of inventories are not written down if the
finished products in which they will be used are expected to be sold at or above cost. Slow
and non-moving material, obsolesces, defective inventories are duly provided for.

iii) By-products and scrap are valued at net realizable value and it is reduced from cost of the
main product.

iv) Excess/ shortages, if any, arising on physical verification are absorbed in the respective
consumption accounts.

v) The net realisable value of work-in-progress is determined with reference to the selling
prices of related finished products.

T. Cash flow statement:

Cash flows are reported using the indirect method, whereby the profit for the period is adjusted
for the effects of transactions of non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities of the
company are segregated.

Note:

a) The average credit period of trade receivables varies from 15-45 days

b) The above does not include any amount due from related parties

c) The Company has used practical expedient by computing the expected credit loss for doubtful
trade receivables based on ageing of receivables, history of recoverability from the customers,
credit worthiness of the customers etc.

d) During the year, the company has recognised loss allowance of Rs. Nil under 12 months expected
credit loss model.

e) Of the trade receivables balance, Rs.310.88 Lakhs (as at March 31, 2024: Rs. 102.20 Lakhs) is
due from one of the Company's large customer (March 31, 2024: two of the Company's large
customers). There are no other customers who represent more than 10% of the total balance of
trade receivables.

f) There are no debts due by directors or other officers of the Company or any of them either
severally or jointly with any other person or debts due by firms or private companies respectively
in which any director is a partner or Director or a member.

Note:

a) The loan is primarily secured by hypothecation of stock and receivables and further collaterally
secured by way of specific properties belonging to two directors and further guaranteed by three
directors in their individual capacities.

b) The loan is repayable on demand. The facility is available for the 12 months period from the date
of sanction subject to review every 12 months.

c) The Company is regular in payment of interest on above loan as on reporting date.

d) The company has not declared as wilful defaulter by any of the bank or any other institution

e) The company availed working capital loans against security of current assets. The statement of
current assets as filed with the banks in the returns submitted were in agreement with the books
of accounts.

31. Capital Management

Equity share capital and other equity are considered for the purpose of Company's capital
management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and
to optimise returns to shareholders. 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 monitor the return on capital as well as the level of
dividend to shareholders. The Company may take appropriate steps in order to maintain, or if
necessary adjust, its capital structure

Refer note 45 for information on ratios.

46. Additional regulatory information required by Schedule III

i) No proceeding has been initiated or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

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

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

iv) There were no transactions relating to previously unrecorded income that have been surrendered
and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

47. Relationship With Struck Off Companies

The Company does not have any relationship or any transaction with struck off companies

48. Utilization of borrowed funds and share premium:

The Company has 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 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 provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries

The 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 company
shall 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 provide any guarantee, security or the
like on behalf of the ultimate beneficiaries

49. The exchange value for restatement of export receivables and EEFC account is taken at ' 85.44 per
dollar.

50. The previous period's figures have been regrouped/reclassified wherever necessary to conform to
the current period presentation.

51. The financial statements are approved for issue by the Audit Committee and Board of Directors at
their meetings held on May 22, 2025.

As per our report of even date

For BRAHMAYYA & Co., For RADIX INDUSTRIES (INDIA) LIMITED

Chartered Accountants
FRN: 000513S

Sd/- Sd/-

CA SRINIVASA RAO CHERUKURI GOKARAJU RAGHU RAMA RAJU

Partner Managing Director

ICAI M.No.209237 DIN:00453895

UDIN: 25209237BMGXIC2548

Sd/- Sd/- Sd/-

G. GANAPATHI RAMA PRABHAKARA RAJU GOKARAJU PARVATHI P. LENIN BAB.U

Director & CFO Director Company Secretary

DIN: 00454614 DIN: 00453965

Place: Tanuku
Date : 22-05-2025