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.

II. 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.

Reasons for variances over 25%:

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 Recievable & 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 Net profit & Sales.

8. An increase in Ratio is due to decrease in Profit & Negative Equity.

9. An increase in Ratio is due to due to decrease in Profit & 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.

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

10.5 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.

10.6 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, 2024 and 31 March,
2023.

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

10.8 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.

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

10.10 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.

10.11 The Company has not applied for any approved scheme or arrangements in terms of sections 230 to

237 of the Companies Act, 2013.

10.12 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

10.13 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.

10.14 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

Narasimha Rao & Associates for Raasi Refractories Limited

Chartered Accountants

Firm Regn No. 02336S

J.Vikram Simha

Partner

Membership No.228354

Place: Hyderabad,

Date: 31^st May, 2024
UDIN: 24228354BKALTP5733