13. Provisions, Contingent Liabilities and Contingent Assets:

I. 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.

II. Contingent liabilities

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

III. Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent
assets are assessed continually and if it is virtually certain that an inflow of economic
benefits will arise, the asset and related income are recognised in the period in which the
change occurs.

14. Revenue Recognition:

I. Sale of Goods:

Effective 1st Apr, 2018 the Company has applied Ind AS 115. This comprehensive new
standard will supersede existing revenue recognition guidance, and requires an entity to
recognize revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services.

Revenue from sale of goods is recognised when the significant risks and rewards of
ownership have been transferred to the buyer, recovery of the consideration is probable,
the associated costs can be estimated reliably, there is no continuing effective control or
management involvement with the goods, and the amount of revenue can be measured
reliably. Revenue from sale of goods is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms and excluding taxes
or duties collected on behalf of the government.

II. Interest Income:

Interest income is accrued on a time proportion basis, by reference to the principal
outstanding and effective interest rate applicable.

15. Taxation:

Provision for taxation is made for both current and deferred taxes.
a) Current Tax:

The tax currently payable is based on taxable profit for the year. Taxable profit differs from
'profit before tax' as reported in the statement of profit and loss because of items of income
or expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Entity's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

b) Deferred Tax:

Deferred tax assets and liabilities arising on account of timing difference and which are
capable of reversal in subsequent periods, are recognized using the tax rates and tax laws
that have been enacted or substantively enacted as on the Balance Sheet date.

Deferred Tax Assets are recognized and carried forward only if there is a virtual certainty
that they will be realized and are reviewed for the appropriateness of their respective
carrying values at each Balance Sheet date.

16. Employee Benefits:

A) Short Term Employee Benefits:

The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during
the period when the employees render the services.

B) Post-Employment Benefits:

I. Defined Contribution Plan:

A defined contribution plan is a post-employment benefit plan under which the Company
pays specified contributions to a separate entity. The Company's contributions to defined
contribution plans are recognised as an expense in the Statement of Profit and Loss during
the period in which the employee renders the related service.

II. Defined Benefit Plans :

The liability in respect of gratuity benefit is determined using the Projected Unit Credit
Method based on actuarial valuation, performed by an independent qualified actuary.

Re-measurement of defined benefit plans in respect of post-employment are charged to
the Other Comprehensive Income.

17. Earnings per Share

a. Basic Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year
attributable to equity share holders by the weighted average number of equity shares
outstanding during the year.

b. Diluted Earnings per share:

The diluted earnings per share has been computed by dividing the Net profit after tax
available for Equity shareholders by the weighted average number of equity shares, after
giving the effect of the dilutive potential ordinary shares for the respective year.

18. Segment reporting

The Company operates in one reportable segment, hence segment reporting as per Ind AS-
108 is not applicable.

19. Financial Risk Management

In course of its business, the company is exposed to certain financial risk such as market risk
(Including currency risk and other price risks), credit risk and liquidity risk that could have
significant influence on the company's business and operational/financial performance. The
Board of directors reviews and approves risk management framework and policies for
managing these risks and monitor suitable mitigating actions taken by the management to
minimize potential adverse effects and achieve greater predictability to earnings.

Credit Risk :

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting
in financial loss to the company. The company has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral, where appropriate, a means of
mitigating the risk of financial loss from defaults. The Company's exposure and the credit
ratings of its counterparties are continuously monitored and the aggregated value of
transactions concluded is spread amongst approved counterparties.

Liquidity Risk :

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 pre requirements. The Company's exposure to liquidity risk is minimal.

8. 1. The Company does not possess information as to which of its suppliers are ancillary
industrial undertaking / SSI undertaking holding permanent registration certificate issued
by the directorate of industries of a state or union territory. Consequently, the liability if
any, of interest which would be payable under the Micro, Small and Medium Enterprises
Development Act, 2006 could not be ascertained. However, the company has not
received claims in respect of interest.

Reasons for variances %:

1. An Decrease in ratio is due to increase in Debt & Decrease in Profit after Tax.

2. An abnormal Increase in Ratio is due to decrease in Profit After Tax & Negative Equity.

3. An abnormal Increase in Ratio is due to increase in Closing Inventory.

4. A decrease in ratio is due to decrease in Trade Receivable & decrease in Sales.

5. An abnormal decrease in ratio is due to increase in trade payables and advances from customers.

6. An increase in ratio is due to Increase in working capital.

7. A Decrease in ratio is due to decrease in sales & Loss during the Financial year.

8. An increase in Ratio is due to Loss during the Financial year & Negative Equity.

9. An increase in Ratio is due to due Loss during the Financial year & Negative Equity.

10. Additional Regulatory Information

10.1 All the title deeds of the Immovable property are in the name of the Company and there are no such
title deeds which are not held in the name of the Company.

10.2 The Company has not revalued any of the property plant and equipment.

10.3 The Company does not have any Intangible Assets under development.

10.4 There are no proceedings initiated or pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there
under.

10.5 The Company has filed quarterly returns /statement of current assets with bank and these are
materially in agreement with books of accounts for the year ended 31 March, 2025 and 31 March,
2024.

10.6 The Company has not been declared as willful defaulter by any bank or financial institution or other
lender.

10.7 During the year the Company does not have any transactions with companies struck off under
section 248 of Companies Act,2013 or section 560 of the Companies Act,1956.

10.8 There are no pending registration or satisfaction of charges with the Registrar of companies
beyond the statutory period.

10.9 The Company has no subsidiaries, hence violation of provisions of clause (87) of Section 2 of the
Act read with Companies (Restriction on number of layers) Rules,2017 does not arise.

10.10 The Company has not applied for any approved scheme or arrangements in terms of sections 230
to 237 of the Companies Act, 2013.

10.11 The Company has neither advanced or loaned or invested (either borrowed funds or any sources
or kind of funds) to any other person(s), entities including foreign entities nor received any fund
from any person including foreign entities 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

10.12 The Company does not have any income which is not recorded in the books of accounts that
has been surrendered or disclosed as income in any of the tax assessments under the Income
Tax Act,1961.

10.13 Previous year's figures have been regrouped / reclassified, wherever necessary, to correspond
with the current year's classification/disclosure.

The notes form an integral part of these financial statements
This is the Balance Sheet referred to our report of even date.

As per our report of even date

For Narasimha Rao & Assocaites ^{for and on behalf of the Board}

Chartered Accountants ^{For Raasi} Refractories Limited

Firm Regn No. 2336S

J. Vikram Simha Konda Venkanna Suresh Silumula

Partner Managing Director Director

Membership No. 228354 DIN = 05119181 DIN: 07957786

Place: Hyderabad Sistla Subrhmanya Sastry Nitin Kumar Pugalia

Date: 30.05.2025 Chief Financial Officer Company Secretary

UDIN: 25228354BMIMZA5406 Membership No. ACS: 48915