3.16 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 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. When the Company expects some or
all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss
net of any reimbursement.

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.

Contingent Liabilities and Assets

Contingent Liabilities are not recognised but are disclosed in the notes. A disclosure for a contingent liability is made
where there is a possible obligation arising out of past event, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company
or a present obligation arising out of past event where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made. Contingent Assets are not recognised but
disclosed in the financial statements when economic inflow is probable.

3.17 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period after deducting any attributable
tax thereto for the period by the weighted average number of equity shares outstanding during the period. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of
all dilutive potential equity shares.

3.18 Current and Non-current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non current classification.

An asset is current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is expected to be realised within twelve months after the reporting period,

- It is cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period,

Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

3.19 Business Combination

Business combinations, if any, are accounted for using the acquisition accounting method as at the date of the
acquisition, which is the date at which control is transferred to the Company. The consideration transferred in the
acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their
acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net
identifiable assets acquired and liabilities assumed. If the Goodwill computed as per IND AS 103 is negative, the
acquirer needs to reassess the identification and measurement of the acquiree's identifiable assets, liabilities and
contingent liabilities and the measurement of the cost of combination. If negative goodwill remains, this is
recognised immediately in OCI and accumulated in equity as Capital Reserve. The Company recognises any
non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities
assumed. The Company recognises any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the
acquired entity's net identifiable assets. Consideration transferred does not include amounts related to settlement of
pre-existing relationships. Such amounts are recognised in the Statement of Profit and Loss.

Transaction costs are expensed as incurred, other than those incurred in relation to the issue of debt or equity
securities. Any contingent consideration payable is measured at fair value at the acquisition date. Subsequent
changes in the fair value of contingent consideration are recognised in the statement of Profit and Loss.

If there is an acquisition of an asset or a group of assets that does not constitute a business.In such cases the Company
shall identify and recognise the individual identifiable assets acquired (including those assets that meet the definition
of, and recognition criteria for, intangible assets in Ind AS 38, Intangible Assets) and liabilities assumed. The cost of the
group shall be allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at
the date of purchase. Such a transaction or event does not give rise to goodwill.

(b) Defined benefit plan:

Gratuity

The Employee's Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance
Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit
method on the balance sheet date, based upon which the Company contributes to the Group Gratuity Scheme. The difference, if
any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with Life Insurance
Corporation of India, is provided for as assets/ (liability) in the books. Actuarial gains/ (losses) for defined benefit plans are
recognised in full and are immediately taken to the statement of profit and loss and Other Comprehensive Income accordingly
as per Actuarial Valuation Report. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount equivalent to 15 to 30 days' salary for each completed year of
service. Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is
separately administered by a Gratuity Fund Trust.

43 FAIR VALUE MEASUREMENT

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a

current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

(1) Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables , other current liabilities,
short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term
maturities of these instruments.

(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the
expected losses of these receivables.

44 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables and
advances from customers. The main purpose of these financial liabilities is to finance the Company's operations, projects under
implementation and to provide guarantees to support its operations. The Company's principal financial assets include Investment,
loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's financial risk management is an integral part of
how to plan and execute its business strategies. The Company's financial risk management policy is set by the Managing Board.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
and supervision. It is the Company's policy that no trading in derivatives for speculative purposes to be undertaken. The Board of
Directors reviews and finalises policies for managing each of these risks, which are summarised below.

A. Market Risk

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 three types of risk: Interest rate risk, Currency risk and Commodity price risk. Financial instruments
affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and
derivative financial instruments.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the
entire process of market risk management. The treasury department recommends risk management objectives and policies, which
are approved by Senior Management and the Audit Committee. The activities of this department include management of cash
resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with
market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. In order to optimize the Company's position with regard to interest income and interest expenses to manage
the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of
fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The Company is not exposed to interest rate risk as at the respective reporting date.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's
operating and financing activities. The Company manages its foreign currency risk by hedging transactions that are expected to
realise in future.

3. Well planned procurement & inventory strategy and

4. Prudent hedging policy on foreign currency exposure

Risk committee of the Company comprising members from Board of Directors and operations has developed and enacted a risk
management strategy regarding commodity Price risk and its mitigation."

B. Credit Risk

Credit risk is the risk that a counterpart will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to
suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating
to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is
performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several
jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the due date of payment.(Refer Note no. 13)

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance
with the Company's policy. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks
and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.

C. Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company's objective is to maintain a
balance between continuity of funding and flexibility through the use of cash credit, letter of credit, factoring,bill discounting and
working capital limits.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual payments.

45 CAPITAL MANAGEMENT

A. For the purpose of the Company's capital management, equity includes issued equity capital, securities premium and all other
equity reserves attributable to the equity share holders, including capital reserve and net debt includes interest bearing loans and
borrowings and finance lease liability except cash and cash equivalents. The primary objective of the Company's capital
management 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.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The funding requirement is met through a mixture of equity, internal accruals, long term
borrowings and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total
capital plus net debt divided by total shareholders fund.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

52 LEASES

"The Company's lease asset classes primarily consist of leases for buildings, machinery and warehouses.

• The company didn't recognized Right to Use and Lease liabilities for lease for which the lease terms pertaining to the
noncancellable period ends within 12 months on the date of initial transition and low value assets.

• The Company excluded initial direct cost from measurement of the Right to Use assets at the date of initial application.

• The Company uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease.
Hence, the Company has recognised the lease payments associated with those leases as an expense on a straight line basis over the
lease term. Lease liabilities were measured at the present value of remaining lease payments, discounted at the Company's actuarial
discounting rate. Right to Use is measured at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued
lease payments."

Definations

(a) Earning available for debt service = Net Profit before taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of Fixed assets etc.

(b) Debt service = Interest & Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2 (f) Net credit purchases
= Net credit purchases consist of gross credit purchases minus purchase return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Average Working capital = Current assets - Current liabilities.

(i) Earning before interest and taxes = Profit before exeptional items and tax Finance costs - Other Income

(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

b) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for
holding any Benami Property.

c) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

d) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the
balance sheet date.

e) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the person or entity 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 Benificiary); or

ii) provide any guarantee, security or the like on behalf of the Company.

f) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) 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
Company (Ultimate Benificiaries); or

b) provide any guarantee, security or the like on behalf of the Company.

g) The Company has not been declared a willful defaulter by any bank or financial institution or other lender (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank
of India.

h) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

i) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

54 AUDIT TRAIL

Kkalpana Industries (India) Ltd. (KIIL) uses SAP-S4 HANA as the accounting software. SAP ensures an audit trail, providing standard
functionality and logging in all changed data in the system. This functionality and audit trail feature in SAP has been operational
throughout the year for all relevant transactions recorded through the application at KIIL.

At KIIL, accounting documents are used to record all business transactions - posted documents are stored in SAP for every
transaction and a financial document once posted cannot be deleted or changed for data points impacting financials. The SAP
environment at KIIL is appropriately governed and only authorised users can make postings in SAP, while interacting with the
system through the application layer. Normal/regular users are not granted nor have direct SAP-DB (database) or super user level
access which would allow them to make any changes to financial documents directly which have already been posted through the
application.

To operate the SAP-application and the SAP-DB, the system necessarily requires a set of super-users to have DB-level accesses. These
super-users are obligated to perform system related tasks. They are not allowed to carry out any direct changes/edits to financial

transactions in the SAP-DB, which if carried out is ill-legal. In the event of an unauthorised change by a super user specifically, these
can be detected through an investigative approach and/or using services provided by SAP as part of their financial data quality
check service, which validates the consistency of financials based on the request of the client. Therefore, while the SAP-DB at the
moment does not have the concurrent real time audit trail feature in view of its infeasibility, the tracking of changes can be done
through a focused enquiry process.

55 CHANGES IN ACCOUNTING STANDARDS AND RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

56 Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

For and on behalf of Board of Directors

For B. Chakrabarti & Associates

Chartered Accountants

Firm Registration No:305048E ^{Narrindra Suranna Pranab Ranjan Mukherjee}

(DIN: 00060127) (DIN: 00240758)

Chairman and Managing Director Whole Time Director

Dipankar Chakravarti

Partner

M_emb_ership N_o.053402 Swati Bhansali Indar Chand Dakalia

D_at_e : 16^th M_ay, 2025 (Membership No. ACS 52755) Chief Financial Officer

Place : Kolkata Company Secretary