1.10 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated. Provisions
are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period.
The discount rate used to determine the present value is a pre tax rate that reflects
current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as
interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from
past events but their existence will be confirmed by the occurrence or non occurrence of
one or more uncertain future events not wholly within the control of the Group or where
any present obligation cannot be measured in terms of future outflow of resources or
where a reliable estimate of the obligation cannot be made.

A contingent asset is disclosed, where an inflow of economic benefits is probable. An
entity shall not recognize contingent asset unless the recovery is virtually certain.

1.13 Borrowing costs

General and specific borrowing costs directly attributable to the acquisition/ construction
of qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use, are added to the cost of those assets, until such time
the assets are substantially ready for their intended use. All other borrowing costs are
recognised as an expense in Statement of Profit and Loss in the period in which they
are incurred.

1.14 Recognition of income

Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.

Dividends are recognised in the Statement of Profit and Loss only when the right to
receive payment is established.

1.15 Employee benefits

a) Short term employee benefits

Short term employee benefits are recognised as expenditure at the undiscounted
value in the statement of profit and loss of the year in which the related service is
rendered.

b) Post employment benefits

i) Defined contribution plan

The Company’s contribution to Provident Fund and Employees State
Insurance Scheme is determined based on a fixed percentage of the eligible
employees’ salary and charged to the Statement of Profit and Loss on accrual
basis. The Company has categorised its Provident Fund, labour welfare fund
and the Employees State Insurance Scheme as a defined contribution plan
since it has no further obligations beyond these contributions.

ii) Defined benefits plan

The Company’s liability towards gratuity, being a defined benefit plan are
accounted for on the basis of an independent ‘actuarial valuation based on
Projected Unit Credit Method.

Service cost and the net interest cost is included in employee benefit expense
in the Statement of Profit and Loss. Actuarial gains and losses comprise
experience adjustments and the effects of changes in actuarial assumptions
and are recognised immediately in ‘other comprehensive income’ as income
or expense.

iii) Compensated absences

Accumulated compensated absences, which are expected to be availed or
encashed within 12 months from the end of the year are treated as short
term employee benefits. The obligation towards the same is measured at
the expected cost of accumulating compensated absences as the additional
amount expected to be paid as a result of the unused entitlement as at
the year end. The Company’s liability is actuarially determined (using the
Projected Unit Credit method)

1.16 Income Tax

Income tax expense comprises current tax, deferred tax charge or credit. The deferred
tax charge or credit and the corresponding deferred tax liability and assets are
recognized using the tax rates that have been enacted or substantially enacted on the
Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses
are recognized only if there is virtual certainty of realization of such amounts. Other
deferred tax assets are recognized only to the extent there is reasonable certainty of
realization in future. Deferred tax assets are reviewed at each Balance Sheet date to
reassess their reliability.

1.17 Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits with any qualifying
financial institution repayable on demand or maturing within three months from the date
of acquisition and which are subject to an insignificant risk of change in value.

1.18 Earnings per share

Basic earnings per share (EPS) is calcualted by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. Diluted EPS is computed using the weighted average
number of equity and dilutive equity equivatent shares outstanding during the year.

1.19 Significant management judgements in applying accounting policies and
estimation uncertainty

When preparing the financial statements, management makes a number of
judgements, estimates and assumptions about the recognition and measurement of
assets, liabilities, income and expenses. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

1.20 Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset
or cash-generating unit based on expected future cash flows and uses an interest rate
to discount them. Estimation uncertainty relates to assumptions about future operating
results and the determination of a suitable discount rate.

1.21 Depreciation and useful lives of property, plant and equipment

Property, plant and equipment are depreciated over the estimated useful lives of the
assets, after taking into account their estimated residual value. Management reviews the
estimated useful lives and residual values of the assets annually in order to determine
the amount of depreciation to be recorded during any reporting period. The useful lives
and residual values are based on the Company’s historical experience with similar
assets and take into account anticipated technological changes. The depreciation for
future periods is adjusted if there are significant changes from previous estimates.

1.22 Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables
and determining whether a provision against those receivables is required. Factors
considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate the
risk of non-payment.

1.23 Provisions

Provisions and liabilities are recognized in the period when it becomes probable that
there will be a future outflow of funds resulting from past operations or events and
the amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability require the application of judgement to existing facts and
circumstances, which can be subject to change. Since the cash outflows can take place
many years in the future, the carrying amounts of provisions and liabilities are reviewed
regularly and adjusted to take account of changing facts and circumstances.

1.24 Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, mortality, discount rate and anticipation
of future salary increases. Variation in these assumptions may significantly impact the
DBO amount and the annual defined benefit expenses.

1.25 Fair value measurement of financial instruments

Management uses valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with how
market participants would price the instrument. Management bases its assumptions
on observable data as far as possible but this is not always available. In that case
management uses the best information available. Estimated fair values may vary from
the actual prices that would be achieved in an arm’s length transaction at the reporting
date.

1.26 Material uncertainty about going concern:

In preparing financial statements, management has made an assessment of Company’s
ability to continue as a going concern. Financial statements are prepared on a going
concern basis. The Management is aware, in making its assessment, of material
uncertainties related to events or conditions that may cast significant doubt upon the
Company’s ability to continue as a going concern.

Valuation process

The Company evaluates the fair value of financial assets and financial liabilities on periodic
basis using the best and most relevant data available.

18. Financial risk management objectives and policies

The Company’s principal financial liabilities, comprise borrowings, trade and other
payables. The main purpose of the significant portion of these financial liabilities is to
finance the dues towards arrears of electricity charges, demurrage charges and other
routine expenditure of the Company. The Company’s principal financial assets include
security deposits, cash and cash equivalents and other financial assets.

The Company is exposed to market risk and liquidity risk. Company’s senior
management oversees the management of these risks. It is Company’s policy that
no trading in derivatives for speculative purposes may be undertaken. The Board
of Directors review and agree policies for managing each of these risks, which are
summarised below.

a) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair value or
in future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of change
in the interest rates, liquidity and other market changes. Future specific market
movements cannot be normally predicted with reasonable accuracy.

Interest rate sensitivity

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. Company
does not have significant exposure to the risk of changes in market interest rates
as Company’s long-term debt obligations is at fixed interest rates.

b) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or
meet its obligations on time or at a reasonable price. For the Company, liquidity
risk arises from obligations on account of financial liabilities - borrowings, trade
payables and other financial liabilities.

Liquidity risk management

Company’s treasury department is responsible for liquidity and funding as well as
settlement management. In addition, processes and policies related to such risks
are overseen by senior management. Management monitors the Company’s net
liquidity position through rolling forecasts on the basis of expected cash flows.

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

c) Credit risk

Credit risk arises from cash and bank balances, current and non-current financial
assets, trade receivables and other financial assets carried at amortised cost.

Credit risk management

To manage credit risk, the Company periodically assesses the financial reliability
of other counterparties, taking into account the financial condition and current
economic trends. Individual risk limits are set accordingly.

Bank balances are held with only high rated banks. However, the balances held
with banks are not material.

Capital management

Risk management

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, and

- maintain an optimal capital structure to reduce the cost of capital.

#Borrowings for the above purpose includes non-current borrowings, current
borrowings, current maturities of non current borrowings and Interest accrued but
not due on borrowings.

20 Earnings per share (EPS)

The amount considered in ascertaining the Company’s earnings per share constitutes
the net profit after tax and includes post tax effect of any exceptional items. The number
of shares used in computing basic earnings per share is the weighted average number
of shares outstanding during the year. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares considered for
deriving basic earnings per share and also the weighted average number of shares
which could have been issued on conversion of all dilutive potential shares.

24 The figures of the previous year have been reworked, regrouped, rearranged and
reclassified, wherever necessary to conform to the current year presentation.

As per our report of even date attached

For VERMA S & ASSOCIATES For and on behalf of the Board of Directors

(FRN: 328962E)

Chartered Accountants

Sd/- Sd/- Sd/-

SUMIT KUMAR VERMA Laxman A. Savalkar Priya Gupta

Proprietor Managing Director Director

M N. 302320 DIN : 07987670 DIN : 09821279

UDIN : 24302320BKEEIX3554

Sd/-

Girish K. Sarda Sarita Kumari

Place: Nashik Chief Financial Officer Company Secretary

Date: May 29, 2024 PAN : BDGPS8199J PAN : EUJPK8746N