3.10 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.
If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of
the discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 that arises
from past events 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. Information on contingent liability is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset,
but it is recognised as an asset.

3.11 Dividend Distribution:

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the shareholders.
Dividend payable and corresponding tax on dividend distribution is recognised directly in other equity.

3.12 Revenue from Contract with Customer :

Revenue Recognition

Sale of Goods and Services:

The Company derives revenues primarily from sale of Polyester Chips, Polyester Yarn and Processed Yarn.

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects
the consideration entitled in exchange for those goods or services. Generally, control is transfer upon shipment of goods to the customer or when the
goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of
ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognised over the time by measuring the progress towards complete satisfaction of performance obligations
at the reporting period.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods or
services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on
behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognized when it becomes
unconditional.

The Company does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by
the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, performance bonuses, price
concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

Contract Balances:

Trade Receivables:

A receivable represents the Company's right to an amount of consideration that is unconditional.

Contract Liabilities:

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of
consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract
liability is recognised when the payment is made. Contract liabilities are recognised as revenue when the Company performs under the contract.

Other Income:

Incentives on exports and other Government incentives related to operations are recognised in the statement of profit and loss after due consideration
of certainty of utilization/receipt of such incentives.

Interest 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.

Dividend Income:

Dividend Income is recognised when the right to receive the payment is established.

Rental Income:

Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms and is included as other income in the
statement of profit or loss.

3.13 Foreign Currency Reinstatement and Translation:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated
in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in statement of profit and loss except to the extent
of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the
acquisition or construction of qualifying assets, are capitalized as cost of assets. Additionally, exchange gains or losses on foreign currency borrowings
taken prior to 1st April, 2016 which are related to the acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the
transaction. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the exchange rates prevailing at the
date when the fair value was determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the

recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in
OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance costs. All
other finance gains / losses are presented in the statement of profit and loss on a net basis.

In case of an asset, expense or income where a non-monetary advance is paid/received, the date of transaction is the date on which the advance was
initially recognized. If there were multiple payments or receipts in advance, multiple dates of transactions are determined for each payment or receipt
of advance consideration.

3.14 Employee Benefits:

Short term employee benefits are recognised as an expense in the statement of profit and loss of the year in which the related services are rendered.
Leave encashmentis accounted as Short-term employee benefits and is determined based on projected unit credit method, on the basis of actuarial
valuations carried out by third party actuaries at each Balance Sheet date.

Contribution to Provident Fund, a defined contribution plan, is made in accordance with the statute, and is recognised as an expense in the year in which
employees have rendered services.

The cost of providing gratuity, a defined benefit plans, is determined using the projected unit credit method, on the basis of actuarial valuations carried
out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to other comprehensive income in the period in which they arise. Other costs are accounted in the statement of
profit and loss.

Remeasurements of defined benefit plan in respect of post employment and other long term benefits are charged to the other comprehensive income
in the year in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent periods.

3.15 Taxes on Income:

Income tax expense represents the sum of current tax (including MAT and income tax for earlier years) and deferred tax . Tax is recognised in the
statement of profit and loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income, in such cases the
tax is also recognised directly in equity or in other comprehensive income. Any subsequent change in direct tax on items initially recognised in equity
or other comprehensive income is also recognised in equity or other comprehensive income.

Current tax provision is computed for income calculated after considering allowances and exemptions under the provisions of the applicable Income
Tax Laws. Current tax assets and current tax liabilities are off set, and presented as net.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases
used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets
are generally recognised for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future
taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilised. Deferred
tax assets and liabilities are measured at the applicable tax rates. The carrying amount of deferred tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be
utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the
asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Minimum Alternative Tax (MAT) is applicable to the Company. Credit of MAT is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward.
In the year in which the MAT credit becomes eligible to be recognised as an asset, the said asset is created by way of a credit to the statement of profit
and loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT
credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified
period.

GST paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the amount of GST paid, except:

- When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognized as
part of the cost of acquisition of the asset or as part of the expense item, as applicable

- When receivables and payables are stated with the amount of tax included

The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

3.16 Borrowing Cost

Borrowing costs specifically relating to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready
for its intended use are capitalised (net of income on temporarily deployment of funds) as part of the cost of such assets. Borrowing costs consist of
interest and other costs that the Company incurs in connection with the borrowing of funds. For general borrowing used for the purpose of obtaining
a qualifying asset, the amount of borrowing costs eligible for capitalisation is determined by applying a capitalisation rate to the expenditures on that
asset. The capitalisation rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during
the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalised during
a period does not exceed the amount of borrowing cost incurred during that period. All other borrowing costs are expensed in the period in which they
occur.

3.17 Earnings Per Share:

Basic earnings per share is computed using the net profit or Loss for the year attributable to the shareholders and weighted average number of equity
shares outstanding during the year.

Diluted earnings per share is computed using the net profit or Loss for the year attributable to the shareholder and weighted average number of equity
and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result
would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the
beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

3.18 Current and Non-current Classification:

The Company presents assets and liabilities in statement of financial position based on current/non-current classification.

The Company has presented non-current assets and current assets before equity, non-current liabilities and current liabilities in accordance with
Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading & manufacturing.

c) Expected to be realised within twelve months after the reporting period, or

d) Cash or cash equivalent 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 classified as current when it is:

a) Expected to be settled in normal operating cycle,

b) Held primarily for the purpose of trading, & manufacturing.

c) Due to be settled within twelve months after the reporting period, or

d) 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.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Deferred tax assets
and liabilities are classified as non-current assets and liabilities. The Company has identified twelve months as its normal operating cycle.

3.19 Fair Value Measurement:

The Company measures financial instruments at fair value at each balance sheet date.

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:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability.

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.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy.

3.20 Off-setting Financial Instrument:

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable rights to offset the
recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable
rights must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Company or counterparty.

Note 4 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. 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. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company
based on its assumptions and estimates on parameters available when the financial statements were prepared. However, existing circumstances and
assumptions about future developments may change due to market changes or circumstances arising that are beyond the control of the Company. Such
changes are reflected in the assumptions when they occur.

4.1 Property, Plant and Equipment, Investment Properties and Intangible Assets:

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 as per Schedule II of the Companies Act, 2013 or are based on the Company's
historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

4.2 Income Tax:

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual
outcome which could lead to an adjustment to the amounts reported in the standalone financial statements.

4.3 Contingencies:

Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any, in respect of contingencies/
claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

4.4 Impairment of Financial Assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The Company uses judgement
in making these assumptions and selecting the inputs to the impairment calculation, based on Company's past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.

4.5 Impairment of Non-Financial Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Company estimates the assets recoverable amount. An assets recoverable amount is the higher of an
assets or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent to those from other assets or groups of assets. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In determining fair value less cost of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation
multiples or other available fair value indicators.

4.6 Defined Benefits Plans:

The Cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

4.7 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.

4.8 Provisions:

Provisions and liabilities are recognised 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.

4.9 Fair Value Measurement of Financial Instruments :

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active
markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments.

4.10 Classification of Leases :

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant
judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The
Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an options to extend the lease
if the Company is reasonably certain to exercise that options; and periods covered by an option to terminate the lease if the Company is reasonably
certain not to exercise that options. In assessing whether the company is reasonably certain to exercise an option to extend a lease, or not to exercise
an option to terminate a lease, it considers all relevant facts and circumstances that crate an economic incentive for the Company to exercise the option
to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable
period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases
with similar characteristics.

28.3 Risk exposures
Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Interest Risk

The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits
& vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to
fluctuations in the yields as at the valuation date.

Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and
after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary Risk

The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of
the plan participants will increase the plan's liability.

Variability in withdrawal rates:

If actual withdrawal rates are higher than assumed withdrawal rate than the Gratuity benefits will be paid earlier than expected. The impact of this will
depend on whether the benefits are vested as at the resignation date.

31.2 Fair Valuation Techniques used to determine Fair Value

The Company maintains procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the
financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values:

i) Fair value of trade receivable, cash and cash equivalents, other bank balances, current borrowings, trade payables, other current financial assets and
other current financial liabilities are approximate at their carrying amounts largely due to the short-term maturities of these instruments.

ii) The fair values of non-current borrowings and security deposits are calculated based on cash flows discounted using a current lending rate. They are
classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including credit risk. The fair values of non-current
borrowings are approximate at their carrying amount due to interest bearing features of these instruments.

iii) 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.

iv) Fair values of quoted financial instruments are derived from quoted market prices in active markets.

v) Equity Investments in subsidiaries are stated at cost.

31.3 Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:-

i) Level 1 :- Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities. It includes fair value of financial instruments
traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net
assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is
available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable then
instrument is included in level 2.

31.4 Description of the valuation processes used by the Company for fair value measurement categorised within level 3:-

At each reporting date, the Company analyses the movements in the values of financial assets and liabilities which are required to be remeasured or
re-assessed as per the accounting policies.

The Company also compares the change in the fair value of each financial asset and liability with relevant external sources to determine whether the
change is reasonable. The Company also discusses of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the Company has determined classes of financial 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.

Note 32 :- Financial Risk Management Objective and Policies

The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the company under policies approved by
the board of directors. The Company's documented risk management policies are effective tool in mitigating the various financial risk to which the
business is exposed to in the course of daily operations This Risk management plan defines how risks associated with the Company will be identified,
analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective
of risk management plan is to implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and
effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the organization to provide a clear
understanding of risk/benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing
and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage/optimize
key risks. Activities are developed to provide feedback to management and other interested parties (e.g. Audit committee, Board etc.). The results of
these activities ensure that risk management plan is effective in the long term.

32.1 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices
comprise three types of risk: foreign currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk.

The sensitivity analyses is given relate to the position as at 31st March 2024 and 31st March 2023.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions
and on the non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in the
respective market risks. The Company's activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange
rates and interest rates. This is based on the financial assets and financial liabilities held as at 31st March, 2024 and 31st March, 2023.

(a) Foreign Exchange Risk and Sensitivity

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument 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 activities. The Company
transacts business primarily in USD and Euro. The Company has obtained foreign currency loans and has foreign currency trade payables, derivative
instruments and receivables and is therefore, exposed to foreign exchange risk. The Company is regularly reviews and evaluates exchange rate exposure
arising from foreign currency transactions.

The following table demonstrates the sensitivity in the USD, JPY and Euro to the Indian Rupee with all other variables held constant. The impact on the
Company's profit before tax due to changes in the fair values of monetary assets and liabilities is given below:

The Company's raw materials i.e.Purified Terephthalic Acid (PTA) & Monoethylene Glycol (MEG) and finished goods i.e. Polyster Chips, Partially Oriented
Yarn (POY) and Texrising Yarn (TEX) are petrochemical products. Commodity price risk arises due to fluctuation in prices of petrochemical products. The
Company mitigate the risk by natural hedge as any increase/decrease in raw materials price directly reflect the finished goods price.

32.2 Credit Risk

Credit risk is the risk that a counter party 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 from its financing activities, including deposits with
banks, foreign exchange transactions and other financial instruments.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an
ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default
occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding¬
looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the
Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the
receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss. The Company measures the expected
credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are
based on actual credit loss experience and past trends.(refer Note 47)

a) Trade Receivables:-

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and
past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding
customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and industries and operate in largely independent markets. The Company has also taken security deposits in certain
cases from its customers, which mitigate the credit risk to some extent. No single customer accounted for 10% or more of revenue in any of the years
presented except mentioned in Note No. 34.3. Therefore, the Company does not expect any material risk on account of non-performance by Company's
counterparties.(refer Note 37)

The Company has used practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The
provision matrix taken into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is
based on ageing of the days the receivables are due.

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality
products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

Note 33 - Capital Management

For the purpose of Company's capital management, capital includes issued capital, all other equity reserves and debts. The primary objective of the
Company's capital management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of
changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using gearing ratio, which is net debt divided by total capital (equity plus net debts). Net debt are non-current and current
debts as reduced by cash and cash equivalents, other bank balances ,current investments and fixed deposit more than 12 months. Equity comprises all
components including other comprehensive income.

Note 36- Going Concern

The consortium of bankers led by Bank of Baroda had filed an application with the National Company Law Tribunal (NCLT), Ahmedabad for recovery of
their dues in September 2018 under the Insolvency and Bankruptcy Code, 2016. The said application has been dismissed and disposed off by the Court
in April 2021. Subsequently, the lenders had filed an appeal before the NCLAT in May 2021. The appeal before NCLAT was consequently withdrawn by
Bank of Baroda in November 2021.

On 13th August, 2021, all the lenders (except Tamilnad Mercantile Bank Ltd) had assigned the debts along with all the rights and interests on the secured
assets to CFM Asset Reconstruction Private Limited (CFM) under the Securitization and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI) by executing two Assignment Agreements both dated 13th August, 2021. A total of 14 fourteen lenders aggregating
approximately 99 % of the total debt of the Company had assigned their debt to an Asset Reconstruction Company called CFM as on 13th August, 2021.
The Board of Directors' are no longer in the helm of affairs of the Company w.e.f - 13th August, 2021. CFM was closely monitoring and managing the
day to day plant and corporate office operations through Deloitte Touche Tohmatsu India LLP Mumbai who had been appointed as the nodal agency
by CFM. Further, to the intimation of the said assignment, CFM had also issued a demand notice under Section 13(2) of the SARFAESI Act, 2002 and
the rules framed there under to recover the entire dues including principal and interest. In response to the said notice, the Company had given an "In
principle consent" to handover the secured assets which includes land, building, movable assets, inventory, sundry debtors, investments in subsidiaries
& step-down subsidiary, intangible assets (including the SAP accounting software) and other current and non-current assets of the Company to CFM. On
11th November 2021, CFM took physical possession of the secured assets of JBF Further the Company was in receipt of Intimation for sale of secured

assets by way of private treaty under the SARFAESI Act, 2002 on 11th May, 2022 and thereafter, proceeded to sell the same by way of private treaty
under the SaRfAESI Act to Madelin Enterprises Private Limited (MEPL).

Further to the above, the part secured assets including land, building, sundry debtors, investments, cash and bank balances, deposits, intangible assets
(including the SAP software) and other movable assets have been sold to the MEPL by CFM on 6th June 2022 and balance assets were sold by CFM to
MEPL on 20th December, 2022. In addition, MEPL has also taken over the affairs and operations of all the three plants and the corporate office and the
current Board of Directors have no control over the same.With effect from 1st December,2022 manufacturing operations from all locations have been
discontinued.

In addition, the Company has received demand notice from Tamilnad Mercantile Bank Ltd, (TMBL) under Section 13(2) of the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("Sarfaesi Act") and the Rules framed thereunder for recovery of their
dues vide letter dated 23rd November, 2021. amounting to ? 32.94 Crores plus future interest as applicable thereon in terms of loan agreement. TMBL
has denied to release the charge on assets of the company. However, the remaining 14 lenders have assigned their debts to Asset Reconstruction
Company CFM on dated 13.08.2021 and on 11th November 2021. CFM took physical possession of the secured assets of JBF.

CFM has sent intimation for sale of all the secured assets of the company to Madelin Enterprises Private Limited (MEPL) for total consideration of
? 881 Crores on dated 11.05.2022.

However, TMBL has not agreed to the decision of remaining 14 lenders, therefore, it has in principal charge over the secured assets of the company on
pro-rata basis, which have been subsequently transferred to CFM and finally to MEPL. Thereafter TMBL approached NCLT Ahmedabad for recovery of
their dues from the Company and CFM. The matter is now pending before the NCLT Ahmedabad and it is subjudice.

In light of the above facts, it is evident that the Company's secured assets including the manufacturing plants situated in Sarigam, Athola and Saily are
no longer in the possession of the Company. Further, the management is also of the view that under the above mentioned circumstances, the operations
of the Company without the manufacturing plants will be severely affected. The Company's ability to sustain itself and generate revenues has been
critically dented. Further, there could be a significant and material impact on the "going concern" status of the Company and its future operations. The
company has also transferred MAT credit entitlement of ? 6,409 Lakhs to Statement of Audited Financial Results under the head Tax Expenses "Short/
(Excess) Provision of Tax of Earlier Years (Net)"in the earlier year. The Company will find it difficult to meets its financial commitments.The same has
been referred by the auditors in their report on results and was also referred by the auditors in their reports on the financial statements & results for the
earlier years/ quarters.

Note 39 Deed of assignment with JBF Petrochemicals Limited

During the financial year 2021-22, the Company had entered deed of assignment with JBF Petrochemicals Limited (JPL), a subsidiary of the Company
and transferred their borrowings of ? 52.84 Crore from JPL. The same borrowings had been shown as reduction in Current Assets to standalone
financial statements. The above had resulted into an increase in Inter Corporate Deposits to related parties by ? 52.84 Crore under the head Current
Assets loan in the note no. 14 to the standalone financial statements.

Note 40 NCLT Admission

An application was filed before the National Company Law Tribunal (NCLT), Ahmedabad, by one of the Operational Creditor against the Company under
section 9 of Insolvency and Bankruptcy Code, 2016. The matter was admitted by the Hon'ble NCLT vide its order dated 25th January 2024.

The Hon'ble NCLT appointed IRP Mr. Dhaval C Khamar and subsequently NCLT appointed Mr. Mukesh Verma as RP with directions to perform all
functions contemplated under the IBC.

In pursuit to his appointment, the IRP made public announcement in Financial Express (English) and Financial Express (Gujarati) on 8th February 2024
intimating the creditor and other stakeholder about the commencement of CIR process inviting their claims as provided in section 15 of IBC 2016.
Further RP Invites Express of Interest (EOI) under IBC, from prospective Resolutions applicants. The last date for the submission of EOI is further
extended to 3rd June 2024.

Note 41- Consolidation

Due to financial restructuring / negotiation with lenders and/or investors, Company did not receive the audited financial statements of its subsidiaries,
hence the Company could not prepare the consolidated financial statements of the Company and accordingly no consolidated financial results have
been published. The same has been referred by the auditors in their report on results and was also referred by the auditors in their report on the financial
statements & results for the earlier years/ quarters. As on 31st March 2023, M/s. Madelin Enterprises Pvt.Ltd., has acquired the holding of our Company
in the Subsidiary Company JBF Global Pte Limited situated at Singapore under the Sarfaesi Act but pending transfer in the name of Madelin Enterprises
Pvt. Ltd., the shares are still in the company as on date.

Note 42- Share Based Payments

As approved by the shareholders at its meeting held on 4th October, 2018, the Company has reserved issuance of 40,00,000 equity shares of face value
of ? 10 each and 24,00,000 equity shares of face value of ? 10 each under the Employees Stock Option Plan 2018 ( ESOP) & Employees Stock Purchase
Scheme 2018 ( ESPS) respectively.

Note 43

The Company has sent emails to various parties for confirmations of balances under trade receivables, to which major amount of parties have
responded. Balances of those parties for which confirmations have not been received are subject to confirmation and the management does not expect
any significant impact on account of it.

Note 44

Chief Executive Officer (CEO) of the Company had tendered his resignation from the post of CEO with effect from 1st May, 2019. Chief Financial Officer
(CFO) has tendered his resignation on 1st July 2023, Management of the Company is actively looking out for suitable candidates to fill in the above
vacancies. The same has been referred by the auditors in their report on results and was also referred by the auditors in their report on the financial
statements & results for the earlier years/ quarters.

Note 45

The Company does not hold any benami property hence no proceeding has been initiated or pending against the Company under the Benami
Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

Note 46

The Company was declared as wilful defaulter by the State Bank of India vide letter SAMB I: TEAM 11:2018-19: 3308 dated 12.03.2019 in their review
meeting held on 12.02.2019

*During the year, company has not served its lenders, therefore this ratio has not shown.

Note 48 - Previous year's figures have been regrouped and rearranged, wherever necessary to make them comparable.

As per our report of even date For and on behalf of Suspended Board of Director

For S.C. Ajmera & Co. SEETHARAM N SHETTY UJJWALA APTE

Chartered Accountants Director Director & Company Secretary

(Firm Registration no. 002908C) DIN-07962778 DIN-00403378

Membership No A3330

S.C AJMERA MUKESH VERMA

Partner Resolution Professional Of

Membership no. 081398 JBF INDUSTRIES LIMITED (UNDER CIRP)

Place : Udaipur
Date : 30th May, 2024