x. Provisions

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

If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as
a finance cost.

xi. Retirement and other employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity fund
and compensated absences.

Defined contribution plans

Post-employment benefit plans under which an entity pays fixed contributions into a separate
entity (a fund) and the company does not have any legal or constructive obligation to pay
further contributions if the fund does not hold sufficient assets to pay all employee benefits
relating to employee service in the current and prior periods. i.e. risk is transferred to the
insurance company.

xii. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or convention in the market place
(regular way trades) are recognised on the trade date, i.e., the date that the company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

(i) Debt instruments at amortised cost

(ii) Debt instruments at fair value through other comprehensive income (FVTOCI)

(iii) Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL)

(iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ‘debt instrument' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the company. After initial measurement, such financial assets
are subsequently measured at amortised cost using the effective interest rate (EIR) method.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading and contingent consideration recognised by an acquirer in a business
combination to which Ind AS103 applies are classified as at FVTPL. For all other equity
instruments, the company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The company makes such election on an instrument
by- instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the
amounts from OCI to P&L, even on sale of investment. However, the company may transfer the
cumulative gain or loss within equity.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Group's consolidated balance
sheet) when:

(i) The rights to receive cash flows from the asset have expired, or

(ii) The company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through' arrangement; and either

(a) the company has transferred substantially all the risks and rewards of the asset, or

(b) the company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.

Derecognition

A financial liability is derecognised 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 derecognition of the original liability
and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the statement of profit or loss.

xiii. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash.

Net of outstanding bank overdrafts as they are considered an integral part of the Company's
cash management.

xiv. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post
tax effect of extraordinary items, if any) by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number
of equity shares which could have been issued on the conversion of all dilutive potential
equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares
would decrease the net profit per share from continuing ordinary operations. 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 dilutive potential equity shares are adjusted for the
proceeds receivable had the shares been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential equity shares are determined
independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as
appropriate.

xv. Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are
reviewed for impairment. If any indication of impairment exists, the recoverable amount of
such assets is estimated and impairment is recognised, if the carrying amount of these
assets exceeds their recoverable amount. The recoverable amount is the greater of the net
selling price and their value in use. Value in use is arrived at by discounting the future cash
flows to their present value based on an appropriate discount factor. When there is indication
that an impairment loss recognised for an asset in earlier accounting periods no longer exists
or may have decreased, such reversal of impairment loss is recognised in the Statement of
Profit and Loss, except in case of revalued assets.

Note 2.13 : Other Disclosures

i) There are no proceedings initiated or are pending against the Company for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules
made thereunder.

ii) The Company has not been declared as wilful defaulter by any bank or financial institution

iii) The Company does not have any transactions with struck off companies.

iv) 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: (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 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)
subject to the matters discribed below that the Company 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.

As per provisional attachment order No.6 of 2022 issued under section 5(I) of the Prevention
of Money Laundering Act, 2022 made by Enforcement Directorate on 8th March 2022
(ECIR/14/HYZO/2021), Enforcement Directorate has alleged that the investment in the
Company by Karvy Stock Broking Limited (KSBL), is out of the proceeds of crime. KSBL and
the Company have appealed to relevant authorities and the matter is pending for disposal.
Given the ongoing proceedings, we are unable to ascertain the financial impact, if any on
account of these proceedings, on the company's financial statements at this stage.

vi) The Company has not entered in to any 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).

vii) The title deeds of all the immovable properties, (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the
Company) disclosed in the financial statements included in property, plant and equipment
and capital work-in-progress are held in the name of the Company as at the balance sheet
date.

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

ix) The Company has not revalued its property, plant and equipment during the financial year
2024-25

x) No additional loans were taken in the current or previous financial year, and no charges or
satisfactions remain unregistered with the ROC beyond the statutory period.

xi) There is no non-compliance with the number of layers prescribed under section 2(87) of the
Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

xii) No dues from directors or officers are outstanding and included in trade receivables under
Note No. 5

xiii) The company uses an accounting software which have the feature of audit trail in accordance
with the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

xiv) Company has not created any provision for interest on overdue amounts payable to MSME's
in compliance to notification dated 22.01.2019 issued by the Ministry of Corporate affairs
(MCA), and therefore the same was not included in closing balance of outstanding dues to
MSME's as on 31st March, 2025

xv) Certain comparative figures for the previous year have been reclassified to confirm to the
current year's presentation, in accordance with the requirements of Ind AS 1 - Presentation
of Financial Statements and in accordance with Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors, the financial statements have been retrospectively
restated. The nature, amount, and reason for such reclassifications.

A) During the financial year 2024-25, the Company has reassessed the classification of certain
equity investments previously presented under Non-Current Investments and measured at
Fair Value Through Other Comprehensive Income (FVTOCI). Based on the revised
assessment, it was determined that these investments are held for trading and, therefore,
should be classified as Current Investments and measured at Fair Value Through Profit or
Loss (FVTPL), in accordance with the principles of Ind AS 109 - Financial Instruments.

As a result, an amount of ?280.00 lakhs has been reclassified from Non-Current Assets to
Current Assets in the financial statements for the year ended 31 March 2025. This
reclassification is consistent with the requirements of Ind AS 1, which mandates the separate
presentation of items of dissimilar nature or function, and Ind AS 8, which requires changes in
classification to be accounted for retrospectively where relevant.

The impact of this reclassification on the current year's financial statement presentation is as
follows:

Non-Current Assets as previously presented: ?563.78 lakhs
Less: Reclassified Non-Current Investments: ?280.00 lakhs
Revised Non-Current Assets: ?283.78 lakhs
Current Assets as previously presented: ?437.33 lakhs
Add: Reclassified Current Investments: ?280.00 lakhs
Revised Current Assets: ?717.33 lakhs

These investments were previously classified under the Fair Value Through Other
Comprehensive Income (FVOCI) category as per Ind AS 109 - Financial Instruments. Upon
reclassification, the cumulative gain/(loss) of Rs. (10.22) lakhs, previously recognized under
Other Comprehensive Income (OCI), has been transferred to the Statement of Profit and
Loss, in line with the derecognition and reclassification requirements of Ind AS 109.

B) During the year, the Company has reclassified specific items previously presented under
"Other Financial Liabilities" to "Other Current Liabilities", considering the nature of these
items and the classification principles under Ind AS.

In the previous year, "Other Financial Liabilities" included Statutory Dues payable amounting
to ?1.68 lakhs and Income Tax payable amounting to ?71.49 lakhs. These items have been
reclassified to "Other Current Liabilities" as they are statutory liabilities.

Accordingly, the balance of "Other Financial Liabilities" for the previous year has been
reduced from ?74.14 lakhs to ?0.98lakhs after reclassification.

These reclassifications have no impact on the profit, total assets, or equity of the Company
for the comparative period and are intended solely to align the presentation with the current
year's classification for better comparability.

C) During the current financial year, certain Fixed Deposits (FDs) with original maturity of more
than 3 months but less than 12 months, previously classified under “Bank Balances other
than Cash and Cash Equivalents,” have been reclassified to “Current Investments.” This
reclassification has been carried out to align the presentation with the intended purpose and
nature of these deposits, i.e., being held primarily for investment purposes.

This change in classification does not impact the total assets or net profit of the entity for the
year. The comparative figures have been regrouped/reclassified wherever necessary to
conform to current year's presentation.

Note. 23: Financial risk management:

The Company's activities expose it to a variety of financial risks, including market risk, credit risk
and liquidity risk. The Company's primary risk management focus is to minimise potential adverse
effects of market risk on its financial performance. The Company's risk management assessment
and policies and processes are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor such risks and compliance with
the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company's activities. The Board of Directors are
responsible for overseeing the Company's risk assessment and management policies and
processes.

a.) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company's credit risk arises from accounts
receivable balances. Accounts receivable balances outstanding as on reporting date amount to
16.54 lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit
rating system. Internal credit rating is performed for each class of financial instruments with
different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is
considered when the counterparty fails to make payments within the agreed time period as per
contract. Loss rates reflecting defaults are based on actual credit loss experience, past
experiences where it believes there is high probability of default and considering differences
between current and historical economic conditions. In general all the trade receivables greater
than 365 days are reviewed and provided for by analysing individual receivable.

b.) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due. Due to the nature of the business, the Company maintains flexibility in
funding by maintaining availability under committed facilities.Management monitors rolling
forecasts of the Company's liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the
entity operates. In addition, the Company's liquidity management policy involves projecting cash
flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.

Contractual maturities of financial liabilities

The table below analyses the Company's financial liabilities into relevant maturity groupings
based on their contractual maturities for all non-derivative financial liabilities. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
equal their carrying amounts as the impact of discounting is not significant.

c. Market risk- foreign exchange

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: interest rate risk and
currency risk. Financial instruments affected by market risk include borrowings, deposits, trade
receivables and other financial instruments. The sensitivity analyses in the following sections
relate to the position as at 31st March 2025 and 31st March 2024. The analyses exclude the
impact of movements in market variables on the carrying values of gratuity and other post
retirement obligations, provisions and non-financial assets and liabilities.

e. Price Risk

The Company is exposed to fluctuations in share price arising on purchase/ sale of shares. The
Company has a risk management framework aimed at prudently managing the risk arising from
the volatility in commodity prices. The Company's commodity risk is managed centrally through
well-established trading operations and control processes.

Capital Management

The Company's objective for capital management is to maximise shareholder value, safeguard
their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders and maintain an optimal capital structure to
reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.

For and on behalf of the Board of

For Laxminiwas & Co. BNR Udyog Limited

Chartered Accountants CIN: L67120TG1994PLC018841

Firm Registration No. 011168S Sd/_- Sd/-

J. Vikram Dev Rao Kamal Narayan Rathi

Sd/- Chairman Managing Director

Neelesh Jain DIN:00173556 DIN: 00011549

Partner '

Membership No.: 208324 Sd/- Sd/-

Sandeep Rathi Sonal Agarwal

Place : Hyderabad Executive Director/CFO Company Secretary

Date : 28-05-2025 DIN: 05261139 M.No: 29790