1.16 Provisions and Contingent Liabilities

The assessments undertaken in recognising provisions and contingencies have been made in accordance with
the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are
recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it
is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date
and are adjusted to reflect the current best estimate.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the
Company. Guarantees are also provided in the normal course of business. There are certain obligations which
management has concluded, based on all available facts and circumstances, are not probable of payment or are
very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the
notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding
the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies
will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic
benefits is probable.

a) 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 statement of profit and 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.

b) Subsequent measurement

Subsequent measurement of financial assets is described below -

(i) 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.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance
income in the statement of profit and loss. The losses arising from impairment are recognised in the statement
of profit and loss. This category generally applies to trade and other receivables.

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

A debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and

b) The asset's contractual cash flows represent solely payments of principal and interest (SPPI). Debt
instruments included within the FVTOCI category are measured initially as well as at each reporting date at
fair value. Fair value movements are recognized in the other comprehensive income (OCI).

However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain
or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is
reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest
income using the Effective Interest Rate (EIR) method.

(iii) Debt instrument at Fair Value Through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect
to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as 'accounting mismatch'). The Company has designated its investments in debt instruments as
FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L

c) Financial Assets - 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 Company's balance sheet) when:

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

2) 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When
it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise the transferred asset to the extent of the Company's
continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that reflects the rights and obligations that the Company
has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Company could be
required to repay.

(d) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets.

The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising
impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from
all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the
lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original EIR.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the statement of profit and loss. This amount is reflected under the head 'other expenses' in the statement of
profit and loss. The balance sheet presentation for various financial instruments is described below:

1) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until
the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

2) Debt instruments measured at FVTPL: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. The change in fair value is taken to the statement of Profit and
Loss.

3) Debt instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairment

allowance is not further reduced from its value. Rather, ECL amount is presented as accumulated impairment
amount' in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial
assets which are credit impaired on purchase/ origination.

B) Financial liabilities -

a) Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of
profit and 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. The Company's financial liabilities include trade and other payables,
loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

The measurement of financial liabilities depends on their classification, as described below:

1) Financial liabilities at fair value through statement of profit and loss - Financial liabilities at fair value
through statement of profit and loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through statement of profit and loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by the Company that are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments.

2) Gains or losses on liabilities held for trading are recognised in the statement of profit and loss -

Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.

3) Liabilities designated as FVTPL- Fair value gains/ losses attributable to changes in own credit risk are
recognized in OCI. These gains/ losses are not subsequently transferred to statement of profit and loss. However,
the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognised in the statement of profit and loss. The Company has not designated any financial liability
as at fair value through statement of profit and loss.

b) Financial liabilities - 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 and loss.

C) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is
a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

a) Initial recognition and subsequent measurement

In order to hedge its exposure to foreign exchange, interest rate, and commodity price risks, the Company
enters into forward, futures and other derivative financial instruments. The Company does not hold derivative
financial instruments for speculative purposes.

Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or
losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss,
except for the effective portion of cash flow hedges, which is recognised in other comprehensive income and
later reclassified to statement of profit and loss when the hedge item affects profit and loss or treated as basis
adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial asset or
non-financial liability.

For the purpose of hedge accounting, hedges are classified as:

1) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or
an unrecognised firm commitment

2) Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular
risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency
risk in an unrecognised firm commitment.

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship
to which the Company wishes to apply hedge accounting and the risk management objective and strategy for
undertaking the hedge. The documentation includes the Company's risk management objective and strategy for
undertaking hedge, the hedging/ economic relationship, the hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will assess the effectiveness of changes in the hedging instrument's
fair value in offsetting the exposure to changes in the hedged item's fair value or cash flows attributable to the
hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or
cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective
throughout the financial reporting periods for which they were designated.

D) Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the effective interest rate (hereinafter referred as EIR) method. Gains and losses are recognized in statement
of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and
loss.

1.18 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

Fair value of the financial instruments is classified in various fair value heirarchies based on the following three
levels

a) Level 1- Quoted prices (unadjusted) is the active market price for identical assets or liabilities

b) Level 2 -Inputs other than quoted price included within level 1 that are observable for the assets or liablity,
either directly

c) Level 3- Inputs for the assets or liablities that are not based on observable market data (unobservable inputs).

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

1.19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the cash flow statement, cash and cash equivalents consist of cash and short-term deposits,
as defined above.

1.20 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker. The Company is engaged in the business of manufacture and sale of tread rubber (pre-cured
tread rubber, conventional tread), Rubber compounds, cushion/ bonding gum and black vulcanizing cement,
which form broadly part of one product group and hence constitute a single business segment.

1.21 Earnings/ (Loss) per equity share (EPS)

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS 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.

1.22 Investments in subsidiaries

An offer of rights issue was made to the Company by Shipnext Solutions Private Limited (“Subsidiary”) on 4
September 2021 which was renounced by the Company in it's board of directors meeting held on 13 September

2021. Subsequently, the capital base of the Subsidiary was increased by way of private placement of equity
shares to other investors on 30 November 2021. Consequently, the shareholding of the Company has reduced
to 14.53% resulting in loss of control in Subsidiary and Shipnext Solutions Private Limited became an associate
as per Ind AS 28 “Investments in Associates and Joint Ventures” with effect from 1 December 2021. Further, due
to various actions taken by the management of the Company including amendment in shareholders' agreement,
Shipnext Solutions Private Limited ceased to be an associate of the Company with effect from 15 February

2022.

Notes:

a) Capitalised borrowing cost

There is no borrowing costs capitalised during the year ended 31 March 2024 (31 March 2023: Nil).

b) Useful life and method of depreciation

Refer note 1.12

c) Capital Work in progress Ageing

Ageing for the year ended 31 March 2024 is not prepared since it has no balance. There are no capital work
in progress which are overdue or has exceeded the costs compared to its orginal costs.

d) Capital asset turned to current

During the year, tyres leased out to KRS were initially shown as leased assets and then subsequently reclassified
as a part of current assets

Nature and purpose of each reserve

Capital Redemption Reserve:

The Company had redeemed 100,000 numbers of Zero coupon cumulative Redeemable Preference Shares of
' 100 each amounting to ' 1 crore during the FY 2016-17 and the amount equal to the face value of such number of
shares has been transferred to Capital Redemption Reserve.

Other Equity :

The balance in the Other equity represents the owners equity component of the Preference shares reclassified in
accordance with Ind AS 32.

General Reserve :

General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation
purposes.

Retained Earnings :

Retained earnings are the profits or losses that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders.

Notes:

(i) Term loans
Union Bank Term Loan

The term loans from Union Bank of India are to be repaid in equal monthly installments over a period of 36 to 54
months, with installment amounts ranging from INR 7.22 to 7.23 lakhs. The annual interest rate for these loans varies
between 7.50% and 9.25% .The term loan from Union Bank of India is secured by a first charge on the company's
inventory, moveable plant, and machinery, with additional guarantees from the Promoter Directors. The loan is further
secured by collateral, including the deposit of title deeds for the company's land and building.

Deferred payment liabilities are related to Term loam from Union bank and the same have been recoganized in
accordance with amortised cost principles

Federal Bank Term Loan

Term loan from The Federal Bank Ltd had been secured by way of first charge on the movable fixed assets and are
further guaranteed by the Promoter Directors of the Company. The above loans are further secured by Collateral security
by deposit of title deeds of the land and building of the Company.

The term loans from the Federal Bank Ltd have been transffered to Union Bank of India effective from February 26,
2024 , following a resolution passed by the Board of directors.

(ii) Loan from Related Party

The Company has obtained unsecured loan from its director which is repayable within in 3 years with an interest of
7.95% . However, the Company is required to repay 1 loan in the next financial year within 12 months

(iii) Working Capital Loan

The WCTL - GECL loan from Union Bank will be repaid in 8 equal monthly installments of Rs 14.13 lakhs each
,including an annual interest of 7.50 % . IND AS 109 requires, the borrowings from the banks to be carried in the books
at amortised cost model. By using this model all the financial liabilities are recorded using effective rate of interest and
the interest income needs to be segregated when the amounts are expected to be settled for more than 12 months. All
the transaction cost including the upfront processing fees paid are to be amortised over the tenure of the loan/borrowings
using effective interest method.

(iii) Liability component of Cumulative Redeemable Preference Shares

The Company had issued 10 lakhs Zero Coupon Cumulative redeemable preference shares of ' 100 each to the
promoters, which are redeemable after 5 years from the date of allotment subject to achieving net worth of ' 100 lakhs
(without considering the said Preference Shares).

The Board Meeting held on 22 July 2016 had approved the redemption plan of the Preference Shares. Ten Lakhs
Redeemable Preference Shares of ' 100 each shall be redeemed out of the profits of the Company in not more than 10
annual installments of a minimum of 100,000 Preference Shares of ' 100 each aggregating to ' 1 crore per year. During
the FY 16-17, the Company had redeemed 100,000 numbers of Zero coupon cumulative Redeemable Preference Shares
of ' 100 each valued at ' 1 crore.In accordance with Ind AS 32, these preference shares are classified as amortised cost
liability as the preference shares provides for redemption on specific date or at the option of the holder.

(iv) Cash Credit

The Cash Credit from the Federal Bank is secured by way of first charge on the floating assets and second charge
on the fixed assets of the Company and are further guaranteed by the Promoter Directors of the Company. The above
loans are further secured by collateral security by deposit of title deeds of the land and building of the Company.

The Cash Credit from the Union Bank of India is secured by way of first charge on the floating assets and second
charge on the fixed assets of the Company and are further guaranteed by the Promoter Directors of the Company. The
above loans are further secured by collateral security by deposit of title deeds of the land and building of the Company.

2.30 Financial risk managament

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on
its financial performance. The Company's exposure to credit risk is influenced mainly by the individual characteristic of
each customer.

The Company's risk management activity focuses on actively securing the Company's short to medium-term cash
flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate
lasting returns.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write
options. The most significant financial risks to which the Company is exposed are described below:

A. Credit risk analysis

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
the Company. The Company is exposed to credit risk for receivables, cash and cash equivalents, short term investments
and financial guarantee.

Cash and cash equivalents and short term investments

The Company considers factors such as track record, size of institution, market reputation and service standard to
select the banks with which deposits are maintained. Generally the balances are maintained with the institutions with
which the Company has also availed borrowings. The Company does not maintain significant deposit balances other
than those required for its day to day operations.

Trade receivables

The Company is exposed to credit risk from its operating activities primarily from trade receivables amounting to
' 1493.94 Lakhs and ' 1,686.96 Lakhs as of 31 March 2024 and 31 March 2023 respectively. The Company has
standard operating procedure for obtaining sufficient security like bank guarantees where appropriate, as a means of
mitigating the risk of financial loss from defaults.

The credit quality of the Company's customers is monitored on an ongoing basis and assessed for impairment
where indicators of such impairment exist. The history of trade receivables shows a negligible provision for bad and
doubtful debts. The solvency of customers and their ability to repay the receivable is considered in assessing receivables
for impairment. Therefore, the Company does not expect any material risk on account of non-performance by any of the
Company's counterparties. Where receivables are impaired, the Company actively seeks to recover the amounts in
question and enforce the compliance with credit terms.

B. Liquidity Risk

The Company requires funds both for short-term operational needs as well as for long-term growth projects. The
Company generates sufficient cash flows from the current operations which together with the available cash and cash
equivalents provide liquidity both in the short-term as well as in the long-term. In addtition company has also availed
short term / long term finance from banks as and when required. The Company has been rated by CRISIL Limited
(CRISIL) for its banking facilities in line with Basel II norms with a rating of Long term - CRISIL B/ Stable and short term
A4.

The Company remains committed to maintaining a healthy liquidity, gearing ratio and strengthening the balance
sheet. The maturity profile of the Company's financial liabilities based on the remaining period from the date of balance
sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash
obligation of the Company.

C. Market Risk

The company is exposed to market risk of financial instruments and specifically to currency risk and interest rate
risk, which result from both its operating and investing activities.The company operates internationally and a significant
portion of the business is transacted in USD currencies and consequently the Company is exposed to foreign exchange
risk through us sales and purchases in foreign currencies.The exchange rate between rupee and foreign currency has
changed substantially in recent years and may fluctuate substantially in future.

C. Interest rate risk

The Company is exposed to interest rate risk on short-term (cash credit) and long-term (term loans). The borrowings
of the Company are principally denominated in Indian Rupees. These exposures are reviewed by appropriate levels of
management on a regular basis. There are no foreign currency borrowings made by the company during the reporting
periods. The impact on the companies profit or loss before tax due to change in interest rate is given below:

2.31 Capital Management

The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and
healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing
growth and maximise the shareholders value. The Company's overall strategy remains unchanged from previous year.
The Company sets the amount of capital required on the basis of annual business and long-term operating plans. The
Company's policy is to use short term and long-term borrowings to meet anticipated funding requirements. For the
purpose of calculating gearing ratio, debt is defined as non-current and current borrowings (excluding derivatives).
Equity includes all capital and reserves of the Company attributable to equity holders of the Company.

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial
assets, trade payables, working capital loans and other financial liabilities approximate the carrying amount largely due
to short-term maturity of this instruments.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The management assessed that for amortised cost instruments, fair value approximate largely to the carrying amount.

(iii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:

a) Level 1- Quoted prices (unadjusted) is the active market price for identical assets or liabilities

b) Level 2 -Inputs other than quoted price included within level 1 that are observable for the assets or liablity,
either directly

c) Level 3- Inputs for the assets or liablities that are not based on observable market data (unobservable
inputs).

The fair value of trade receivables, trade payables and other current financial assets and liablities is considered
to be equal to the carrying amounts of these items due to their short- term nature.

2.35 Segment Information

The Company is engaged in the manufacture and sale of products which form part of one product group which represents
one operating segment, as the Chief Operating Decision Maker (CODM), reviews business performance at an overall
company level. Entity-wide disclosure as required by Ind AS 108 “Operating Segment” are as follows:

2.36 An offer of rights issue was made to the Company by Shipnext Solutions Private Limited (“Subsidiary”) on 4
September 2021 which was renounced by the Company in it's board of directors meeting held on 13 September 2021.
Subsequently, the capital base of the Subsidiary was increased by way of private placement of equity shares to other
investors on 30 November 2021. Consequently, the shareholding of the Company has reduced to 14.53% resulting in
loss of control in Subsidiary and Shipnext Solutions Private Limited became an associate as per Ind AS 28 “Investments
in Associates and Joint Ventures” with effect from 1 December 2021. Further, due to various actions taken by the
management of the Company including amendment in shareholders' agreement which resulted to reduce in share holdings
to 9.69%, Shipnext Solutions Private Limited ceased to be an associate of the Company with effect from 15 February
2022.

2.39 a) No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

b) The Company has not been declared as a willful defaulter by any bank or financial institution or government
or any government authority.

c) As per the information available with the Company, the Company has no transactions with the companies
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

d) There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period.

e) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds to any other persons or entities, including foreign entities (Intermediaries) with
the understanding (whether recorded in writing or otherwise) that the intermediary shall

1) 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).2) provide any guarantee, security or the like on behalf of the
ultimate beneficiaries. Company has not received any fund from any persons or entities, including foreign
entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall
i) 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 ii) provided any guarantee, security or the like on behalf
of the ultimate beneficiaries.

f) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year
ended March 31, 2024.

g) The Company does not have any surrendered or undisclosed income during the year in the tax assessments
under the Income Tax Act, 1961.

h) The title deeds of all the immovable properties held by the Company disclosed in the financial statements are
held in the name of the Company.

i) The borrowings obtained by the company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

j) The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies
Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

2.40 Events after the balance sheet date

There were no material subsequent events after the reporting date which requires any adjustments or disclo
sures relating to reported assets and liabilities at the end of the reporting period.

2.41 Prior year comparatives have been regrouped/reclassified where necessary to conform with the current year
classification.

This is the summary of significant accounting policies and other explanatory information as referred to in our report of
even date.

For G. Joseph & Associates For and on behalf of the Board of Directors of

Chartered Accountants Eastern Treads Limited

(Reg No: 006310S)

Allen Joseph Devarajan Krishnan Abil Anil

Partner Chief Financial Officer Company Secretary

M No 228498

M. E. Mohamed ^{Naiju Joseph}

^Kochi Managing Director ^Direc^tor

Date: 29-05-2024 DIN: 00129005 DIN: 00419362