IX. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal
or constructive obligation as a result of past events and it is probable that there will be an outflow of resources
and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future
operating losses. The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that
may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of
outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial
statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of
economic benefits will arise, the asset and related income are recognized in the period in which the change
occurs.

X. Foreign Currency Transactions & Translations

The functional currency of the Company is Indian Rupee. These Financial Statements are presented in
Indian Rupee (rounded off to the nearest Lacs).

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing
on the date of the transaction. Gains & losses arising on account of realization are accounted for in the
Statement of Profit & Loss. Monetary Assets & Liabilities in foreign currency that are outstanding at the year
end are translated at the year end exchange rates and the resultant gain/loss is accounted for in the Statement
of Profit & Loss.

XI. Cash and cash equivalents

Cash and cash equivalents include cash and cash-on deposit with banks. The Company considers all highly
liquid investments with a remaining maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.

XII. Employee Benefits
Defined Contribution Plan

The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution
retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the
employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee's salary.

Defined Benefit Plan

Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The
Company's liability is actuarially determined using the Projected Unit Credit method at the end of the year in
accordance with the provision of Ind AS 19 - Employee Benefits.

The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or
liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized
in other comprehensive income and are not reclassified to profit or loss in subsequent periods.

The Company recognises the changes in the net defined benefit obligation like service costs comprising
current service costs, past-service costs, gains and losses on curtailments and non-routine settlements and
net interest expense or income, as an expense in the Statement of Profit and Loss.

Short term employee benefits are charged off at the undiscounted amount in the year in which the related
services are rendered.

XIII. Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset
which necessarily take a substantial period of time to get ready for their intended use are capitalized as part
of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are
incurred.

XIV. Leases

Leases under which the company assumes substantially all the risks and rewards of ownership are classified
as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum
lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases
are recognized as an expense on a straight-line basis in net profit in the Statement of Profit & Loss over the
lease term.

XV. Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions
attached to them shall be complied with and the grants will be received. Grants related to assets are treated
as deferred income and are recognized as other income in the Statement of profit & loss on a systematic and
rational basis over the useful life of the asset. Grants related to income are recognized on a systematic basis
over the periods necessary to match them with the related costs which they are intended to compensate and
are deducted from the expense in the statement of profit & loss.

XVI. Income Taxes

Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in other comprehensive income. Provision
for current tax is made at the current tax rates based on assessable income.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the Financial Statements except when the
deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that
is not a business combination and affects neither accounting nor taxable profit or loss at the time of the
transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect of changes in tax
rates on deferred income tax assets and liabilities is recognized as income or expense in the period that
includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the
extent that it is probable that future taxable profit will be available against which the deductible temporary
differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed
earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will
not be distributed in the foreseeable future. The company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously.

XVII. Earnings per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
period. The weighted average number of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of
shares) that have changed the number of equity shares outstanding, without a corresponding change in
resources.

For the purpose of calculating diluted earnings per share, the net profit 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.

XVIII. Current and non-current classification

All assets and liabilities are classified as current or non-current as per the Company's normal operating
cycle and other criteria set out in the Schedule III to the Act.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating
cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realized within 12 months after the reporting date; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting date. Current assets include current portion of non-current financial
assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the Company's normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within 12 months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its classification. Current liabilities include
current portion of non-current financial liabilities. All other liabilities are classified as non-current. Deferred
tax assets and liabilities are classified as noncurrent assets and liabilities.

XIX. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.

XX. Derecognition of Tangible and Intangible Assets

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise
from its use or disposal. Gain or loss arising on the disposal or retirement of an item of PPE is determined as
the difference between the sale proceeds and the carrying amount of the asset and is recognized in the
Statement of Profit and Loss.

XXI. Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting
all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in
excess of par value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of
any tax effects.

XXII. Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

XXIII. Rounding of Amounts

All amounts disclosed in the Ind AS Financial Statements and notes have been rounded off to the nearest
Lacs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.

40 Segment Reporting (' _{in Lacs})

I) Business Segment

As the Company's business activity falls within a single primary business segment, viz. “Metal”, the disclosure
requirements of Indian Accounting Standard-108 “Operating Reporting”, notified under Section 133 of the
Companies Act, 2013 read with Rule 7 of Companies ( Accounts ) Amendment Rules, 2014 are not applicable.

II) Geographical Segment

The Company primarily operates out of India and therefore the analysis of geographical segments is
demarcated into its Indian and Overseas Operations.

41 Capital Management

The Company's capital management is intended to create value for shareholders by facilitating the meeting of
long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long
term and short term strategic investment and expansion plans. The funding needs are met through cash generated
from operations and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other
bank balances and current investments.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

II) Fair Value Hierarchy

All Financial Assets & Financial Liabilites are carried at amortised cost except Current Investments, which have
been fair valued using Level 1 Hierarchy.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement

is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

The following table represents the fair value heierarchy of Financial Assets and Financial Liabilites measured

III) Financial Risk Management

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency
exchange rates, interest rates, equity prices, liquidity, comomodity and credit risk, which may adversely
impact the fair value of its financial instruments. The Company's focus is on foreseeing the unpredictability
of financial markets and seek to minimize potential adverse effects on its financial performance.
a) Market Risk -

Market Risk Comprises of Foreign Currency Exchange Rate Risk, Comomodity Price Risk, Interest
Rate Risk & Equity Price Risk

i) Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the
Statement of Profit and Loss and Equity, where any transactions are denominated in a
currency other than the functional currency of the Company.

The Company's Exchange Rate Risk exposure is primarily due to Trade Payables, Trade
Receivables and Borrowings in the form of Letter of Credit denominated in foreign
currencies. The Company uses foreign exchange and forward contracts primarily to hedge
_ foreign exchange exposure.

An appreciation/depreciation of the foreign currencies with respect to functional currency of
the Company would result in an decrease/increase in the Company's Net Profit before Tax
by approximately Rs. 40.47 lacs for the year ended March 31, 2024 (March 31, 2023 : - Rs.
46.85 lacs)

ii) 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. The Company constantly monitors
the credit markets and rebalances its financing strategies to achieve an optimal maturity
profile and financing cost.

iii) Commodity Price Risk

Manaksia's operations consists of Aluminium Business. The timing mis-match risk between
the input and output price, which is linked to the same international pricing benchmark,
such as London Metal Exchange, is eliminated through use of derivatives. This off-set
hedge model (through use of derivatives) is used to manage the timing mis-match risk for
the commodity and currency risk (primarily USD/INR). A variety of factors, including the risk
appetite of the business and price view, are considered while taking hedging decisions.

iv) Equity Price Risk

Equity price risk is related to change in market reference price of investments in equity
securities held by the Company. The Company has no investments, hence the Company is
not primarily exposed to equity price risk.
b) Liquidity Risk -

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective
of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available
for use as per requirements.

The Company has obtained fund and non-fund based working capital facilities from various banks.
The Company invests its surplus funds in bank fixed deposit and in mutual funds, which carry no
or low market risk.

The following table shows a maturity analysis of the Company's Financial Liabilities on the basis
of undiscounted contractual payments :

Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans
Receivables, Investments, Cash and Cash Equivalents and Financial Guarantees provided by the
Company. None of the financial instruments of the Company result in material concentration of
credit risk.

The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating
the risk of financial loss from defaults. The Company manages risks through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which
the company grants credit terms in the normal course of business.

44 Other Disclosures

(i) Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are
subject to reconciliation/ confirmations from the respective parties. The management does not expect any
material differences affecting the financial statement for the year.

(ii) These financial statements have been approved by the Board of Directors of the Company on 18th May,
2024 for issue to the shareholders for their adoption.

(iii) Relationship with Struck off Companies- The Company doesnot have any transactions or relationships with
any companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act,
1956.

(iv) There are no transactions that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(v) The company does not have any benami property, where any proceeding has been initiated or pending
against the company for holding any benami property.

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

(vii) The company is not declared wilfull defaulter by any bank or financials institution or lender during the year.

(viii) Company ahs filed necessary forms with ROC for creation and sarisfaction of Charges within stipulated
time period during the financial year 2024-25.

(ix) Quarterly returns or statements of current assets filed by the company with banks or financial institutions
are in agreement with the books of accounts.

(x) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was obtained.

45 The Company has received a demand order towards erroneous Goods and Services Tax (“GST”) amounting to
Rs.12.48 Crore and penalty amounting to Rs1.25 crores plus applicable interest with respect to Recovery of
Erroneous Refund/Excess refund under Section 73(9) of the CGST Act, 2017 for the period Oct-18 to March,21 as
notified by Rule 96(10) of the CGST Rules. The Hon'ble Kerala High Court has declared Rule 96(10) of the CGST
Rules,2017 as ultra vires of Section 16 of the IGST Act,2017 and unenforceable on account of manifestly arbitrary.
Further, Rule 96(10) of the CGST Rules, 2017, which restricted refund of IGST on exports in certain circumstances,
has been omitted vide Notification No. 20/2024-Central Tax dated 08.10.2024, considering the genuine difficulties
being faced by exporters. The Hon'ble Uttarakhand High Court in decided on 30.04.2025] squarely held that no
order can be passed under Rule 96(10) after its omission on 08.10.2024. It is respectfully submitted that in the
absence of a contrary ruling from the Hon'ble Calcutta High Court or the Hon'ble Supreme Court, the rulings of the
Hon'ble High Courts of Uttarakhand, Kerala are binding precedents under Article 141/226 on GST authorities
nationwide.

46 The Company has incorporated a new wholly owned subsidiary i.e Manaksia Aluminium Inc. at 8 The Green STE
R, DOVER D 19901, State of Delaware, USA on 30th August 2024. However, the subsidiary Company is yet to
commence its operation. The Share application money will be deposited into subsidiary bank account shortly and
hence the consolidated financials are not being prepared for the quarter and year ended 31st March 2025.

47 The previous year figures are reclassified where considered necessary to confirm to this year's classification in
order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April,
2021.

As per our Report attached of even date For and on behalf of the Board of Directors

For DANGI JAIN & Co

Chartered Accountants Sunil Kumar Agrawal Anirudha Agrawal

Firm Regn. No. 308108E (Managing Director) (Whole-time Director &

DIN: 00091784 Chief Executive Officer)

Honey Agarwal DIN: 06537905

(Partner)

Membership No. 304486 Ashok Agarwal Vivek Jain

UDIN : 25304486BMUJQE9067 (Chief Financial Officer) (Company Secretary)

Place : Kolkata
Dated : 20th May, 2025