2.15 Provision, Contingent Liabilities & Contingent Assets

Provisions are recognised when the Company has a present obligation as result of past events
and it is probable that the outflow of resources will be required to settle the obligation and in
respect of which reliable estimates can be made. A disclosure for contingent liability is made
when there is a possible obligation that may, but probably will not require an outflow of
resources. When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision/ disclosure is made. Provisions and
contingencies are reviewed at each balance sheet date and adjusted to reflect the correct
management estimates. Contingent assets are neither recognised nor disclosed in financial
statements. However, when the realization of income is virtually certain, then the related asset is
not a contingent assets and its recognition is appropriate.

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.

2.16 Discontinued Operations

Discontinued operation is a component of the Company that has been disposed of or classified as
held for sale and represents a major line of business.

Non-current assets and disposal groups are classified as held for sale if their carrying amount is
intended to be recovered principally through a sale (rather than through continuing use) when
the asset (or disposal group) is available for immediate sale in its present condition subject only
to terms that are usual and customary for sale of such asset (or disposal group) and the sale is
highly probable and is expected to qualify for recognition as a completed sale within one year
from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their
carrying amount and fair value less costs to sell.

The company has closed its manufacturing operations due to unsatisfactory performance of the
company and continued operational losses. The company has disposed off its Plant & Machinery
in one or more tranches. These events or conditions, indicate that a material uncertainty exists
that may cast significant doubt on the Company's ability to continue as a going concern.
However, consent of Board of Directors is accorded to appoint a consultant for setting up a new
business and the company is in process of appointment of a consultant for setting a new project,
hence, the financial statements have been prepared on going concern basis.

2.17 Segment Reporting

An operating segment is a component of the Company that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate to
transactions with any of the Company's other components, and for which discrete financial
information is available.

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief decision maker being MD of the company. The MD assesses the financial performance
and the position of the company as a whole, and strategic decisions.

The Company has discontinued its operations hence there is no separate reportable business of
geographical segments as per IAS 108 "Operating Segments"

2.18 Earnings Per Share
Basic earnings per Share

Basic earnings per share is computed by dividing the profit/(loss) after tax by the weighted
average number of equity shares outstanding during the year.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.

2.19 Cash Flow Statement

Cash flows are reported using the indirect method, as set out in Ind AS 7 'Statement of Cash
Flows', whereby profit/(loss) before tax 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.

2.20 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash on hand, cheque on hand, balance with bank on current account and other short¬
term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.

2.21 Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grant will be received.

Government grants related to revenue are recognised on a systematic basis in the statement of
profit and loss over the periods necessary to match them with the related costs which they are
intended to compensate. Such grants are deducted in reporting the related expense. When the
grant relates to an asset, it is recognized as income over the expected useful life of the asset.

2.22 Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised during the period of time that is
required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or
sale. Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

The borrowing costs other than attributable to qualifying assets are recognised in the profit or
loss in the period in which they incurred.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:

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.

14.2 Nature and purpose of each reserve within equity is as follows:

1. Revaluation Reserve

Property, Plant and Equipments (except vehicle) and ROU of the company have been revalued as at
31st March, 2002 by an independent external approved valuer on the basis of estimated market value. It had
resulted in an increase of Rs. 679.42 Lakhs in the gross block which had been credited to revaluation reserve
account.

Cumulative Depreciation/ Adjustment /Sale of revalued assets Rs. 509.11 Lakhs has been adjusted from
revaluation reserves.

2. Retained Earnings

Retained earnings represents undistributed earnings after taxes of the company which can be distributed to its
equity shareholders in accordance with the requirement of the Companies Act, 2013.

3. Other Comprehensive Income

This reserve represents the cumulative gains and losses on the revaluation of equity instruments measured at
fair value through comprehensive income which will be reclassified to retained earnings when those assets are
disposed off.

Note ‘35'

The Balances of Trade Payable, Loans given, Interest receivable on loans and Unsecured Loan Taken are subject to
confirmation and consequential adjustment if any.

Note ‘36': MATERIAL UNCERTAINTY

The company has closed its manufacturing operations due to unsatisfactory performance of the company and
continued operational losses. The company has disposed off substantial Plant & Machinery in one or more tranches.
These events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the
Company's ability to continue as a going concern. However, consent of Board of Directors is accorded to appoint a
consultant for setting a new project, hence, the financial statements have been prepared on going concern basis.

Note ‘37': LEASES

Effective April 1, 2019, the Company adopted Ind AS 116 "Leases” and applied the standard to all lease contracts
existing on April 1, 2019 using the modified retrospective method. Consequently, the Company recorded the lease
liability at the present value of the lease payments discounted at the incremental borrowing rate and the right of use
asset at an amount equal to the lease liability recognized.

Ind AS 116 will result in an increase in cash inflows from operating activities and an increase in cash outflows from

financing activities on account of lease payments.

The following is the summary of practical expedients elected on initial application:

1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a
similar end date.

2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months
of lease term on the date of initial application.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial
application.

4. Applied the practical expedient to grandfather the assessment of which transactions are leases.

Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The weighted average incremental borrowing rate applied to lease liabilities is 9.25 % p.a.

Changes in the carrying value of right to use assets are stated in Note No. 3(ii)

Note ‘38': EMPLOYEES BENEFIT
A. Defined Contribution Plans

The Company operates defined contribution retirement benefit plans for all qualifying employees.
Contributions are made to registered provident fund administered by the government. The obligation of the
Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

B. Defined Benefit Plan
I) Gratuity

In accordance with the provisions of Payment of Gratuity Act, 1972, the company has defined benefit plan which
provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees at
retirement or termination of their employment. The amounts are based on the respective employee's 15 days
last drawn salary and the year of employment with the company. The gratuity plan is a unfunded plan.

Liabilities in respect of gratuity plan are determined by an actuarial valuation. Based on the actuarial valuation
obtained in this respect, the following table sets out the details of the employees benefits obligation as at
balance sheet date.

Note 43: FINANCIAL INSTRUMENTS
i. Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that
are whether observable or unobservable and consists of the following three levels:

Le_vel 1: Inputs are quoted prices (unadjusted) in active markets for identical assets

and liabilities.

L_evel 2_: Inputs are other than quoted prices included within level 1 that are

observable for the asset or liability either directly or indirectly

L_evel 3: Inputs which are not based on observable market data.

The investment included in Level 3 of fair value hierarchy has been valued using the cost approach to arrive at
their fair value. The cost of unquoted investment approximate the fair value because there is a wide range of
possible fair value measurements and the cost represents estimate of fair value within that range.

Note ‘44': CAPITAL AND FINANCIAL RISK MANAGEMENT
A CAPITAL RISK MANAGEMENT

The Company's objective for capital management is to manage its capital to safeguard its ability to continue as a going
concern, to provide returns to its shareholders, benefits to its other stakeholders and to support the growth of the
Company. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders.

The Company monitors capital using a ratio of net debt to equity. For this purpose, net debt is defined as total debt,
comprising interest-bearing loans and borrowings less cash and cash equivalents.

B FINANCIAL RISK MANAGEMENT

The Company's activities are exposed to a variety of financial risks from its operations. The key financial risks include
market risk (including foreign currency risk, interest rate risk and commodity price risk), credit risk and liquidity
risk.

i. Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The
Company is exposed to credit risk mainly from security deposits and loans. Security deposits are mostly
with PSUs or Government Departments, hence the company does not expect any credit risk with respect to
these financial assets. Loans are given for business purposes and the company reassess the recoverability of
loans periodically and interest recoveries from these loans are regular and there is no event of default.
Trade receivables includes significant portion of dues from state government corporations, hence,
probability of default is remote. Credit risk on trade receivables is managed baesd on company's
established policy, procedure and control. The ageing of trade receivables at the reporting date are as
follows:

iii. Market risk

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will
fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rate relates primarily to the Company's borrowings with floating interest rates.

Interest rate risk exposure-The exposure of the company's borrowing to interest rate changes at the end of the
reporting period are as follows:

b) Commodity Risk

Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw
Material/Finished Goods and change in demand of the product and market in which the company operates. The
company do not have operations during the year, therefore the company is not exposed to commodity risk.

c) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rate. The company do not have any foreign currency assets/liabilities at the year end,
therefore it is not exposed to foreign exchange risk.

Note ‘45':

The previous year's figures have been regrouped, rearranged and reclassified to conform to current year
Ind-AS presentation requirements.

As per our report of even date attached

For Chopra Vimal & Co. For and on behalf of the Board of Directors of

Chartered Accountants Rajasthan Cylinders and Containers Limited

ICAI Firm's Registration No.: 006456C

(Lokesh Sharma) (Avinash Bajoria) ( P reetanjali Bajoria)

Partner Chairman cum Managing Director Whole Time Director

Membership No.: 420735 DIN: 01402573 DIN: 01102192

Place: Jaipur Place: Jaipur Place: Jaipur

Date: 29/05/2024 Date: 29/05/2024 Date: 29/05/2024

(Neha Dusad) (Ram Awtar Sharma)

Company Secretary CFO

ICSI Membership No.: A55093 Place: Jaipur

Place: Jaipur Date: 29/05/2024

Date: 29/05/2024