Sudarshan Pharma Industries Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

(k) Provisions (other than for employee benefits), Contingent liabilities
Provisions:

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation.Provisions are not discounted to its present value and are determined based on best estimate
required to settle the obligation at the balance sheet date.

Contingent liabilities:

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity or a present obligation that arises from past events but is not recognized because it is not probable that
an outflow of resources embodying economic benefits will be required to settle the obligation or the amount
of the obligation cannot be measured with sufficient reliability. The Company does not recognize a contingent
liability but discloses its existence in the financial statements.

(l) Revenue recognition

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 to which the Company expects to be entitled in
exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue
arrangements because it typically controls the goods or services before transferring them to the customer
Amounts disclosed as revenue are net of goods and service tax (GST).

Sale of products:

Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed
to the buyer (i.e. Control is passed). Sales are disclosed net of GST, trade discounts and returns, as applicable.
Revenue from sale of Products is recognised at the point of sale.

Income from Services:

Revenue from services is recognized when services have been rendered and there should be no uncertainty
regarding consideration and its ultimate collection, , net of discounts to customers excluding taxes or duties
collected on behalf of the government.

(m) Interest income or expense

Interest income or expense is recognised using the effective interest method. The ''effective interest rate'' is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of financial
instrument to: the gross carrying amount of the financial asset; or the amortised cost of the financial liability.

(n) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Company as a Lessee

The Company applies a single recognition and measurement approach for all leases above 12 months, except
for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-
of-use assets are also subject to impairment.

Lease Liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments less any lease
incentives receivable.

I n calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments or a change in the assessment of an
option to purchase the underlying asset.

Company as a Lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an
operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially
all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is
a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain
indicators such as whether the lease is for the major part of the economic life of the asset.

I f an arrangement contains lease and non-lease components, then the Company applies Ind AS 115 to allocate
the consideration in the contract.

The Company recognises lease payments received under operating leases as income on a straight-line basis
over the lease term as part of ''other income''.

(o) Income tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and
Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which
case, the tax is also recognised in other comprehensive income or equity.

(i) Current tax

Current tax comprises of the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount of
current tax reflects the best estimate of the tax amount expected to be paid or received after considering
the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off
the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

(ii) Deferred tax

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities
used in the computation of taxable profit and their carrying amount in the financial statement. Deferred
tax assets and liabilities are measured using tax rates (and laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are
reviewed at the end of each reporting period.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are off set where the Company has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

(p) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, that
necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised as part
of the cost of assets, until such time as the assets are substantially 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 capitalization. All other borrowing costs are recognized
in profit or loss in the period in which they are incurred. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the borrowing costs.

(q) Earnings per share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 - Earnings per Share.
Basic earnings per share is computed by dividing the net profit or loss after tax for the period by the weighted
average number of equity shares outstanding during the period.The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity shares that have changed the number of equity shares outstanding,
without a corresponding change in resources. Diluted earnings per share is computed by dividing the net profit
or loss for the period by the weighted average number of equity shares outstanding during the period as
adjusted for the effects of all dilutive potential equity shares except where the results are anti-dilutive.

(r) Government Grant

Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to purchase of property plant and equipment are included in current and noncurrent
liabilities as deferred income and are credited to profit or loss on straight-line basis over the expected lives of
the related assets and presented within other income.

(s) Borrowings

Borrowing are initially recognized at net of transaction costs incurred and measured at amortised cost using
effective interest method. Borrowings are classified as current liabilities unless the Company has an unconditional
right to defer the settlement of the liability for at least 12 months after the reporting period.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payment (including all fees and points paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to the gross carrying amount on initial recognition.

3A Recent accounting pronouncements

i) The Ministry of corporate Affairs ("MCA") has notified amendments on May 7, 2025 and August 13, 2025
under the Companies (Indian Accounting Standards) Amendment Rules, 2025 and the Companies
(IndianAccounting Standards) Second Amendment Rules, 2025, respectively,which is effective from annual
reporting periods beginning on or after April 01, 2025.

The Company has applied the following amendments to Ind AS for the first time for their annual reporting
period commencing 1 April 2025:

i) Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement:

ii) Amendment to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current liabilities
with covenants:

iii) Amendments to Ind AS 12 - Pillar Two Model Rules

iv) Amendment to Ind AS 21-Lack of exchangeability

The amendments listed above did not have any impact on the amounts recognised in prior periods and are
not expected to significantly affect the current or future periods.

ii) New standards and amendments issued but not effective

Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants
- Amendments to Ind AS 1 - This amendment also includes specific provisions that will take effect for
reporting periods beginning on or after 1 April 2026, as outlined below.

Under the existing Ind AS 1, where there is a breach of a material provision of a long-term loan arrangement
on or before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the
reporting period and before the approval of the financial statements for issue, not to demand payment
as a consequence of the breach. However, the amended requirements stipulate that entities will no longer
be permitted to consider lender waivers that are granted after the reporting date but before the financial
statements are approved for the purpose of classification of loans. This amendment is required to be applied
retrospectively in accordance with Ind AS 8.

The Company does not expect this amendment to have an impact on its operations or financial statements.

4(c) Leases

On transition to Ind AS, in respect of leases previously classified as operating leases, lease liability is measured
at the present value of remaining lease payments discounted using the incremental borrowing rate at the
date of initial application and the right-of-use assets have been measured at the amount equal to lease
liability adjusted for any prepaid or accrued lease payments recognised in the balance sheet immediately
before the date of initial application. The Company has availed the transitional exemption of not applying
Ind AS 116 for the leases for which the remaining lease term is less than 12 months or are of low value items
as on the date of initial application..

The Company has entered into lease agreements for various premises with contract terms of 7 to 12 months.
These leases are short-term and/or leases of low-value items. The Company has elected not to recognise
right-of-use assets and lease liabilities for these leases.

Leases - Company as lessee

The Company leases office premises across locations. These leases of office premises were entered into in
earlier years across locations and some of the facilities are undertaken during the year. Information about
leases for which the Company is a lessee is presented below:

The Company has adopted Ind AS 116, effective annual reporting period beginning April 01, 2024 and applied
the standard to its leases, using the modified retrospective approach.

>) Terms / Rights Attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 1/- per share (March 31, 2025: Rs.
1/- per share;April 01, 2024: Rs. 10/- per share). Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

i) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance
with the provision of the Companies Act, 2013

ii) Money Received Towards Share Warrant

The Money recevied against Warrants is on account of following transaction:

The Board at their meeting held on Thursday, July 4, 2024 have, approved by Members of the Company on
September 30, 2024, approved to issue and allot up to 9,00,000 (Nine Lakhs) warrants, every one warrant
convertible into, or exchangeable for 10 (ten) fully paid-up equity shares of the Company having a face
value Rs.1 (Rupees One only) ("Warrants”) at price of Rs.169.83 (Rupees One Hundred Sixty Nine and Eighty
Three Paisa only) each (including the warrant subscription price and the warrant exercise price) payable
in cash ("Warrant Issue Price”) aggregating up to Rs.15,28,47,000/- (Rupees Fifteen Crores Twenty Eight
Lakhs And Forty Seven Thousand only) ("Total Issue Size”) to persons ("Warrant Holders”) ("Proposed
Allottees”) who are Promoters of the Company on a preferential basis ("Preferential Issue”). Upon receipt of
Rs.3,82,11,750/- (Rupees Three Crores Eighty Two Lakhs Eleven Thousand Seven Hundred And Fifty only),
which is equivalent to 25% (twenty five per cent) of the Warrants Issue Price as upfront payment ("Warrant
Subscription Price”) entitling the Proposed Allottees to apply for and get allotted 10 (Ten) equity shares of
the Company against every Warrant held, on or before 17th June 2026 i.e. within 18 months from the date
of allotment after receipt of a written notice from the Company, from the date of allotment of Warrants, on
payment of Rs.11,46,35,250/- (Rupees Eleven Crores Forty Six Thousand Thirty Five Thousand Two Hundred
and Fifty only) which is equivalent to remaining 75% (Seventy Five per cent) of the Warrants Issue Price
("Warrant Exercise Price”). Number of warrants issued 9,00,000 @ Rs.169.83 of 25% on December 18, 2024.
Money received against issue is Rs.3,82,11,750/- (Rupees Three Crores Eighty Two Lakhs Eleven Thousand
Seven Hundred And Fifty only).

33 Segment Information
A Primary Segment

As required by Ind AS 108 , Segment Reporting, the Company has determined its business segment as
manufacturing of API, Jobwork manufacturing in Pharmaceuticals items and traders in chemicals and
solvents in India. The Company is engaged in the business of speciality chemicals only and therefore, there
is only one reportable segment.

B Geographical Information

The geographical information analyses the Company''s revenues by the Company''s country of domicile
(i.e., India) and other countries. In presenting the geographical information, segment revenue has been
determined based on the geographical location of customers. The Company has only one geographical
location based on location of assets and hence the additional information relating to carrying amount of
segment assets and cost to acquire property, plant and equipment and intangible assets based on location
of assets has not been disclosed.

B Measurement of fair values

i Fair Value Hierarchy and Method of Valuation

Except as detailed in the above table, the Company considers that the carrying amounts of financial
instruments recognised in the financial statements approximate their fair values.

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.

ii Transfers between Level 1, Level 2 and Level 3

There were no transfers between Level 1, Level 2 or Level 3 during the year ended March 31, 2026, year ended
March 31, 2025 and April 1, 2024.

C Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk (see (c)(ii))

- Liquidity risk and (see (c)(iii))

- Market risk (see (c)(iv))

i Risk management framework

The Company''s Board of Directors have overall responsibility for the establishment and oversight of the
Company''s risk management framework. The risk management policies are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes
in market conditions and the Company''s activities. The Company, through its training and management
standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

ii Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, leading to a financial loss. Credit risk primarily arises from the
Company''s trade receivables, balance with banks, bank balances other than cash and cash equivalents and
other financial assets.

The carrying amounts of financial assets represent the maximum credit risk exposure.

The maximum exposure to credit risk for trade and other receivables are as follows:

Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer
Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated
to individual customers. Credit risk is managed 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.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in
respect of trade and other receivables. The main components of this allowance are a specific loss component
that relates to individually significant exposures, and a collective loss component established for groups of
similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance
is determined based on historical data of payment statistics for similar financial assets adjusted for forward¬
looking information.

The Company uses an allowance matrix to measure the ECLs of trade receivables from customers, which
comprise a very large number of small balances. Based on the industry practices and the business environment
in which the entity operates, management considers that the trade receivables are in default if the payments
are more than a year past due.

Cash and bank balances and other financial assets

The Company held cash and cash equivalents and margin money deposits with credit worthy banks and
financial institutions as at the reporting dates. The credit worthiness of the banks and financial institutions
are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.
Other financial assets primarily consists of security deposits and interest accrued on bank deposits.
iii Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company''s reputation.

As at March 31, 2026, the Company has a working capital of INR 3469.72 lakhs including cash and cash
equivalents of INR 10.90 lakhs.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to
be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12
months can be rolled over with lenders and capitalcontribution from the holding Company. Management
believes that based on the existing liquidity position, projected cash flows and available lines, the Company
can honor all its commitments falling due within a period of 12 months. Accordingly no significant liquidity
risk is perceived.

The Company resorts mainly on long-term debt obligations to fund their operations.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of
netting agreements.

iv Market risk

Market risk is the risk of loss of future earnings or fair values or 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 changes in the interest rates, foreign exchange rates and other market changes that affect market risk
sensitive instruments. The Company is exposed tomarket risk primarily related to interest rate risk due to
borrowings. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising returns.
a) Foreign currency risk:

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the functional currency (INR) of the
Company. The Company is exposed to currency risk to the extent that there is a mismatch between the
currencies in which sales and purchases are denominated and the functional currency of Company (INR).
The currencies in which these transactions are primarily denominated are USD, EUR, RMB and GBP.

Sensitivity Analysis:-

A reasonably possible strengthening (weakening) of the INR against USD, AED, and PLN as at the respective
reporting period would have affected the measurement of financial instruments denominated in a foreign
currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and
purchases.

b) Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company''s exposure to the risk of changes in market
interest rates relates primarily to the Company''s long term debt obligation with floating interest rates. The
Company also monitors the changes in interest rates and actively re-finances its debt obligations to achieve
an optimal interest rate exposure.

Exposure to interest rate risk

The Company adopts a policy of ensuring that 100% of its interest rate risk exposure is at fixed rate. The
interest rate profile of the Company''s interest-bearing financial instruments is as follows:

36 Employee benefits
A Defined contribution plan

An amount of INR 4.85 lakhs (March 31, 2025: 2.22 lakhs) has been recognised as an expense in respect
of Company''s contribution to the Employees'' Provident Fund and other fund deposited with the relevant
authorities and has been charged to the Statement of Profit and Loss.

B Defined benefit plan

The Company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. The Plan
entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of
fifteen days wages for every completed year of service or part thereof in excess of six months, based on the
rate of wages last drawn by the employee at the time of retirement, death or termination of employment.
Liabilities for the same are determined through an actuarial valuation as at the reporting dates using the
"projected unit cost method" and the defined benefit gratuity plan is unfunded.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk,
interest rate risk and market (investment) risk.

A. Funding

The gratuity scheme is unfunded. Retirement benefit in the form of gratuity liability is a defined benefit
obligation and is provided on the basis of an actuarial valuation made at the end of each financial year

B. Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net
defined benefit (asset) liability and its components:

G. Leave obligation

The leave obligations cover the Company''s liability for earned leave.

The amount of the provision of INR 2.22 Lakhs (March 31, 2025: INR 2.21 Lakhs; April 01, 2024 1.32 Lakhs) is
presented as current, since the Company does not have an unconditional right to defer settlement for any
of these obligations.

H. The Code on Social Security, 2020

During the year ended 31 March 2026, the Central Government of India has notified the Code on Wages,
2019, the Industrial Relations Code, 2020, the Code on Social Security 2020 and the Occupational Safety
Health and Working Conditions Code, 2020, collectively referred to as the New Labour Codes'', effective
from 21 November 2025 primarily impacting the wage definition to be considered for the purpose of defined
benefit obligation relating to gratuity

Include the following where material past service cost arises:

The new Labour Codes introduced by the Government of India, inter alia, requires gratuity to be calculated
based on wages constituting at least 50% of total remuneration. This has resulted in an increase in gratuity
benefits in respect of services rendered in prior periods, and accordingly, the Group has recognised past
service cost amounting to INR 3.00 Lakhs during the year In accordance with Ind AS 19, the past service
cost has been recognised in the statement of profit and loss in the current year in which the plan amendment
became effective.

37 Capital management

For the purpose of the capital management, capital includes issued equity capital ,securities premium,
money received towards share warrant and all other equity reserves attributable to the equity holders of the
Company. The primary objective of the Group''s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. ''Amongst
other things, the Company''s objective for capital management is to ensure that it maintains stable capital
management by monitoring the financial covenants attached to the interest-bearing loans and borrowings
and upholds investor confidence. The Company monitors capital using a gearing ratio which is net debt
divided by adjusted equity. Net debt is calculated as total liabilities less cash and cash equivalents and other
bank balances. Adjusted equity comprises all components of equity other than amounts accumulated in the
hedging and cost of hedging. The Company''s net debt to adjusted equity ratio i.e. capital gearing ratio at
March 31, 2026 was as follows:

43 Explanation of transition to Ind AS
Transition to Ind AS

As stated in Note 2, these are the Company''s first financial statements prepared in accordance with Ind AS.
For the year ended March 31, 2026, the Company had prepared its financial statements in accordance with
Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant
provisions of the Act (''previous GAAP''). The material accounting policies set out in Note 3 have been applied in
preparing these financial statements for the year ended March 31, 2026, the comparative information presented
in these financial statements for the year ended March 31, 2025 and in the preparation of an opening Ind AS
balance sheet on the date of transition i.e. April 1, 2024.

In preparing its Ind AS balance sheet as at April 1, 2024 and in presenting the comparative information for the
year ended March 31, 2025, the Company has adjusted amounts reported previously in financial statements
prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company
in restating its financial statements prepared in accordance with previous GAAP, and how the transition from
previous GAAP to Ind AS has affected the Company''s financial position and financial performance. In preparing
these financial statements, the Company has applied the below mentioned optional exemptions and mandatory
exceptions.

A Optional exemptions availed

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements
under Ind AS. The Company has applied the following exemption:

(i) Property plant and equipment, intangible assets and investment properties.

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair
value as its deemed cost at that date.

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of
transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the
revaluation, broadly comparable to fair value or cost or depreciated cost under Ind AS adjusted to reflect,
for example, changes in a general or specific price index.

The elections under (i) and (ii) above are also available for intangible assets that meets the recognition
criteria in Ind AS 38, Intangible Assets, (including reliable measurement of original cost); and criteria in Ind
AS 38 for revaluation (including the existence of an active market).

(iii) use carrying values of property, plant and equipment and intangible assets as on the date of transition to
Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating
to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional
currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous
GAAP for all the items of property, plant and equipment. The same election has been made in respect of
intangible assets also.

(iv) The Company has elected to measure its investment properties at the carrying values recognised under
previous GAAP as at the date of transition to Ind AS and use such carrying values as deemed cost in
accordance with Ind AS 101

(v) The company has elected to fair value the ROU assets (leasehold land) as permited by IND AS 101.

(ii) Employee benefits

The Company being a first time adopter has decided to apply the exemption of recognizing all cumulative
actuarial gains / losses as at the date of transition to Ind AS as an adjustment to opening retained earnings and
thereafter recognise as part of retained earnings with separate disclosure of such items, basis the presentation
option given under Schedule III.

(iii) Determining whether an arrangement contains a lease

I nd AS 101 includes optional exemption that permits an entity to apply the relevant requirements of Appendix
C of Ind AS 116 for determining whether an arrangement existing at the date of transition contains a lease by
considering the facts and circumstances existing at the date of transition (rather than at the inception of the
arrangement). The Company has elected to avail the above exemption.

(iv) Designation of previously recognised financial instruments

Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments in
other than equity investment in subsidiaries, associates and joint venture at FVTOCI on the basis of the facts
and circumstances at the date of transition to Ind AS. The company has opted to fair value of other equity
instruments, quoted and unquoted investment through OCI.

B Mandatory exceptions availed

Ind AS 101 specifies mandatory exceptions from retrospective application of certain requirements under IND AS
for first-time adopters. Following exceptions are applicable to the Company :

(i) Estimates

An entity''s estimates in accordance with Ind AS atthe date of transition to Ind AS shall be consistent with
estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any
difference in accounting policies), unless there is objective evidence that those estimates were in error. However,
the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not
required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of
transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting
comparative information as per Ind AS).

I nd AS estimates as at April 1, 2024 are consistent with the estimates as at the same date made in conformity
with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of
transition as these were not required under previous GAAP:

- Impairment of financial assets based on the expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortised cost.

- Investment in equity instruments carried at FVTPL or FVTOCI

(ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances
existing as on the date of transition. Further, the standard permits measurement of financial assets accounted
at amortised cost based on facts and circumstances existing at the date of transition if retrospective application
is impracticable. Accordingly the Company has determined the classification of financial assets based on
facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at
amortised cost has been done retrospectively except where the same is impracticable.

(iii) Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the
transition from previous GAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at 1st April, 2024 (Transition Date) .

II. A. Reconciliation of Balance sheet as at 31st March, 2025

B. Reconciliation of Total Comprehensive Income for the year ended 31st March, 2025

III. Reconciliation of Equity as at 1st April, 2024 and as at 31st March, 2025

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP
information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP
information is derived from the Financial Statements of the Company prepared in accordance with Previous
GAAP.

F Notes to the effect of transition to Ind AS
1 Adjustments arising from lease accounting

Under the previous GAAP, the Company recognised lease expenses as and when it is incurred in its statement
of profit and loss. Upon transition, the Company has measured the right-of-use asset as at the date of
transition to Ind AS at an amount equal to the lease liability, adjusted by the amount of any prepaid or
accrued lease payments relating to such leases recognised in the balance sheet immediately before the date
of transition to Ind AS. Accordingly, there is no impact on adoption of Ind AS 116 in the retained earnings as
at April 1, 2024. The Company depreciates the right-of-use assets over the lease term with lease liabilities
accrued for periodic finance costs incurred and subsequently adjusted for rental payments. Further under
the previous GAAP, interest free security deposits (that are refundable in cash on the completion of the
lease term) are recorded at their transaction value. Under Ind AS, all the financial assets are required to be
initially recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind
AS. Difference between fair value and transaction value of security deposits has been recognized as "Right
of use of assets" (ROU). Unwinding of security deposits is recognised under other income.

Under the previous GAAP, the actuarial gains and losses on re-measurement of defined benefit liability and
plan assets were recognised in the statement of profit and loss, under Ind AS, the same are recognised in
other comprehensive income. However this has no impact on the total other comprehensive income and
equity as on April 1, 2024 and March 31, 2025.

3 Adjustments arising from depreciation on investment property

Under GAAP, Investment property was shown as investment and hence no depreciation
was charged to profit or loss for the period.

Under Ind AS, the depreciation is charged in the initial recognition and charged to profit
or loss using the SLM method.

Under GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged
to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount
of financial liability and charged to profit or loss using the effective interest method.

5 Adjustments arising from deferred tax recognition

Under previous GAAP, deferred taxes assets were recognised to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable profits will be available against which such
deferred tax assets can be realised. Under Ind AS 12, deferred taxes assets are recognised to the extent that it
is probable that future taxable profits will be available against which such deferred tax assets can be realised.
The application of Ind AS 12 has resulted in recognition of deferred tax assets on the temporary differences
which was not required under previous GAAP. Further, the above transitional adjustments (decreased) /
increased the deferred tax asset as follows based on the tax rate of 25.17 percent.

Under the previous GAAP, loss provision for trade receivables was created based on credit risk assessment
made by the Company as of each reporting date. Under Ind AS, the Company recognises impairment loss on
financial assets using an expected credit loss model as required by Ind AS 109, which is based on a forward
looking expected credit loss framework.

8 Revenue

As per Ind AS, the amount of revenue arising on a transaction is measured at the fair value of the consideration
received or receivable taking into account the amount of any trade discounts and volume rebates and
factoring charges allowed by the entity. Accordingly, the Company has netted off commission expense with
revenue. The amount netted out with revenue for the year ended March 31, 2025 is 1.32 lacs.

45 Exceptional Item:

Due to a natural calamity specifically heavy rainfall which resulted in waterlogging in the area of Bhiwandi -
Maharashtra. The Company''s warehouse facility is situated at Arihant Warehouse, Bhiwandi, were disrupted due
to heavy rainfall and waterlogging for continuous three days. However, Partial operations were resumed sooner.
The Company then took appropriate steps to restore normalcy and ensure continued operations. An insurance
claim of ''281.73 lakhs was filed for the resultant loss and damage. The claim was rejected by the insurance
company on technical grounds. The Company is in correspondence with the insurer to resolve the matter. Due
to financial year end book closure, the losses have been recognized in the previous year and disclosed under
exceptional items.

46 Vide letter dated 31st July, 2024 to BSE Limited on the progress of the litigation against Regans International
DMCC, the Company had won an award in its favour announced by the Dubai Court in lawsuit against (i)
Regans International DMCC and (ii) Nand Biharilal Chhabaria Biharilal Chunilal in Dubai, United Arab Emirates.
According to the award announced, (i) Regans International DMCC and (i) Nand Biharilal Chhabaria Biharilal
Chunilal have been ordered to pay to the Company an amount of UAE Dirham 40,30,934.00 (equivalent to
approx. Rs.9,18,82,890/- (i.e. Rupees Nine Crores Eighteen Lakhs Eighty-Two Thousand Eight Hundred And
Ninety only) along with interest at 5% annually on the adjudged amount until the full payment is made.

Till 31st March, 2026, the Company had received an amount of Rs.4,68,00,535/- (including interest) out of the
total outstanding amount and the balance would be received by the Company in future.

47 Additional regulatory information required by Schedule III

(a) No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(b) The Company has no transactions with the companies struck off under Companies Act, 2013.

(c) No material discrepancies are noticed in the quarterly returns or statements filed by the Company with such
bank and the books of account of the Company.

(d) The Company has not traded or invested in crypto currency or virtual currency during the financial year

(e) The Company has not received any fund from any persons or entities, including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(f) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income duringthe year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(g) The Company has not been declared wilful defaulter by any bank or financial institution or Government or
any Government authority

(h) The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

(i) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of
companies beyond the statutory period.

Note No. 1(b) Right, Preferences and Restriction attached to Shares Equity Shares

The Company has only one class of equity shares having a par value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounrs. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company declares and pays dividends in Indian Rupees. The Directors have recommended, subject to approval of the shareholders at the ensuing Annual General Meeting.

(•) Issuance of Warrants Convertible into Equity Shares to the proposed allottees on Preferential basis :

The Board at their meeting held on Thursday, July 4,2024 have, approved by Members of the Company on September 30. 2024, approved to issue and allot upto 9.00.000 (Nine Lakhs) warrants, every one warrant convertible into, or exchangeable for 10 (ten) fully paid-up equity shares of the Company having a face value Rs. 1 (Rupees One only) ("Warrants") at price of Rs. 169.83 (Rupees One Hundred Sixty Nine and Eighty Three Paisa only) each (including the warrant subscription price and the warrant exercise price) payable in cash ("Warrant Issue Price") aggregating upto Rs. 15,28,47.000/- (Rupees Fifteen Crores Twenty Eight Lakhs And Forty Seven Thousand only) ("Total Issue Size") to persons ("Warrant Holders") ("Proposed Allottees") who are Promoters of the Company on a preferential basis ("Preferential Issue"). Upon receipt of Rs. 3.82,11,750/- (Rupees Three Crores Eighty Two Lakhs Eleven Thousand Seven Hundred And Fifty only), which is equivalent to 25% (twenty five per cent) of the Warrants Issue Price as upfront payment ("Warrant Subscription Price") entitling the Proposed Allottees to apply for and get allotted 10 (Ten) equity shares of the Company against every Warrant held, on or before 17th June 2026 Le. within 18 months from the date of allotment after receipt of a written notice from the Company. f rom the date of allotment of Warrants, on payment of Rs. 11.46,35,250/- (Rupees Eleven Crores Forty Six Thousand Thirty Five Thousand Two Hundred and Fifty only) which is equivalent to remaining 75% (Seventy Five per cent) of the Warrants Issue Price ("Warrant Exercise Price"). Number of warrants issued 9.00,000 @ Rs. 169.83 of 25% on December 18. 2024. Money received against issue is Rs. 3,82,11.750/- (Rupees Three Crores Eighty Two Lakhs Eleven Thousand Seven Hundred And Fifty only).

Note 3.1: From Bank 1

Long Term loans Outstanding balance as at balance sheet date carry interest @750% to @ 12.00% p.a. is repayable over a period of 20 to 24 months in varying monthly installments, is secured by primary charges of factory land and praposed building at Mahad, secondary charge by way of hypothecation of movable fixed assets,Stocks. Fixed Deposits & Trade Receivables of the company and charge created on third party''s immovable properties on pair passu basis with banks along with personal guarantee given by the Promoter Directors of the company.

Note 3.2 : From Bank 2

Long Term loans Outstanding balance as at balance sheet date carry interest @10.60% to @10.75% p.a. is repayable over a period of 30 to 38 months in varying monthly installments is secured by primary charges of factory building along with land at Talasari. exclusive charges on plant & machinery of Rs. 355 lakhs and promoter director''s immovable property at Raghuleela mall and secured by second charge on fixed deposits and entire current assets of the Company, both present and future on pair passu basis with banks along with personal guarantee given by Promoter Directors of the company.

Note 3.3 : From Bank 3

Long Term loans Outstanding balance as at balance sheet date carry interest @8.60% p.a. is repayable over a period of 66 months in varying monthly installments, is secured by exclusive charge on immovable property situated at Ghatkopar Mumbai owned by the company along with fixed deposits and second charge on entire current assets and Movable Fixed Assets of the Company, both present and future on pair passu basis with banks along with personal guarantee given by Promoter Directors of the company.

Long Term loans Outstanding balance as at balance sheet date carry interest @8.00% to 9.60% p.a. is repayable over a period of 40 to 55 months in varying monthly installments, is secured by hypothecation of vehicles of the Company.

Note 5.5 : Terms Loan from NBFC

Long Term loans Outstanding balance as at balance sheet date carry interest @ 13.50% p.a. is repayable over a period of 59 months in varying monthly installments, is secured by hypothication of Plant & Machineries of the Company.

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Unsecured Business loans from various Financial Institutions Outstanding balance as at balance sheet date carry interest ranging from 10.50% to 11 % p.a. is repayable over a period of 17 to 33 months.

Working Capital Facility (Cash- Credit) having sanctioned limit of Rs. 2400.00 Lacs from Bank is repayable on demand having rate of interest of 11.00% p.a. For the details regarding nature / description of collateral security (refer note no. 3.1 of long term borrowings).

Rq1£-6-2^.WqiMq^ . Bank.2

Working Capita! Facility having sanctioned limit of Rs. 3300.00 Lacs from bank is repayable on demand having rate of interest of 8.60 % p.a on cash credit facility & cash margin of 10 % on letter credit facility. For the details regarding nature / description of collateral security (refer note no. 3.3 of long term borrowings).

Note 6.3 : Working Capital Facilities from Bank 3

Working Capital Facility having sanctioned limit of Rs. 2150.00 Lacs from bank is repayable on demand having rate of interest of 1075% p.a on cash credit facility & cash margin of 20 % on letter credit facility. For the details regarding nature / description of collateral security (refer note no. 3.2 of long term borrowings).

Unsecured temporary overdraft facility taken from bank of Rs. 200.00 Lacs is repayble withing 30 days having rate of interest of 11.75 % p.a.

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Working Capital Facility having sanctioned limit of Rs 5100.00 Lacs from bank is repayable on demand having rate of interest of 9.50% p.a or cash credit facility & cash margin of 10 % on letter credit facility are secured by way of hypothecation of immovable properties situated at Vileparle . Mumbai owned by company along with current assets and Fixed Deposit.

Note 6.5 : Working Capital Facilities from NBFC’s

Working Capital Facility (Purchase Finance) having sanctioned limit of Rs. 5450.00 Lacs from various Banks/ Financial Institutions is repayable on demand having rate of interest of 12.20 % to 18.00% p.a is partially secured by way of Fixed Deposits and current investment.

29 The title deeds of all the immovable properties held by the Company (other than properties where the

Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the

name of the Company.

30 The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

31 The Company do not have any transactions with the Struck Off Companies during the year.

Reasons for more than 25% variance :

1. Debt Equity Ratio : During the financial year 2024-25. Company''s borrowings has been increased substantially due to increase in working capital requirements as compared to previous year due to which its Debt Service Coverage Ratio has been increased.

2. Inventory Turnover Ratio: During the financial year 2024-25. Company''s inventories increased substantially as compare with previous year due to which inventory turnover ratio decreased as compared to previous year.

3. Net Profit Ratio : During the Financial Year 2024-25. the Company has increased operating profit margin resulting into better net profit ratio as compared to previous year.

4. Return on Capital Employed : During the financial year 2024-25, Company''s Capital has increased substantially as compared to previous year as a consequence of this decrease in Return on Capital Employed ratio.

33 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

34 The Company has not made any wilful default from any of its lenders during the year. Hence, the Company is not classified as Wilful Defaulter.

Other Terms:

Lease Rentals are charges on the basis of agreed terms. Additional amount of applicable taxes will be paid on these rentals as per the applicable rates existing at the time of payments.

39 Vide letter dated 31st July, 2024 to BSE Limited on the progress of the litigation against Regans International DMCC. the Company had won an award in its favour announced by the Dubai Court in lawsuit against (i) Regans International DMCC and (ii) Nand Biharilal Chhabaria Biharilal Chunilal in Dubai. United Arab Emirates. According to the award announced. (0 Regans International DMCC and (i) Nand Biharilal Chhabaria Biharilal Chunilal have been ordered to pay to the Company an amount of UAE Dirham 40.30,934.00 (equivalent to approx. Rs.9,18,82,890/- i.e. Rupees Ninety Crores Eighteen Lakhs Eighty Two Thousand Eight Hundred And Ninety only) along with interest at 5% annually on the adjudged amount until the full payment is made.

40 Exceptional Item:

Due to a natural calamity specifically heavy rainfall which resulted in waterlogging in the area of Bhiwandi -Maharashtra. The Company’s warehouse facility is situated at Arihant Warehouse. Bhiwandi. were disrupted due to heavy rainfall and waterlogging for continuous three days However. Partial operations were resumed sooner. The Company then took appropriate steps to restore normalcy and ensure continued operations. An insurance claim of T281.73 lakhs was filed for the resultant loss and damage. The claim was rejected by the insurance company on technical grounds. The Company is in correspondence with the insurer to resolve the matter. Due to financial year end book closure, the losses have been recognized in the reporting period and disclosed under exceptional items

41 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

42 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies). including foreign entities ("Intermediaries⁰) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43 The Company doesn’t have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as. search or survey or any other relevant provisions of the Income Tax Act. 1961.

44 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

45 In the opinion of the board of directors the current assets, loan & advances are realisable in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

46 Net Profit after tax for the year has been used as the numerator and number of shares has been used as denominator for calculating the basic and diluted earnings per shares

48 i here are no indications of impairment on any individual cash generating assets or on cash generating units in the opinion of management and therefore no test of impairment is carried out.

49 All the known income and expenditure and assets and liabilities have been taken into account and that all the expenditure debited to the profit and loss account have been exclusively incurred for the purpose of the company''s business.

50 Balance in the accounts of debtors, creditors and advances are subject to confirmation/ reconciliation/ adjustment from the respective parties.

51 The loans and advances made by company are unsecured and treated as current assets and not prejudicial to the interest of the company.

Note No. 1(b) Right, Preferences and Restriction attached to Shares Equity Shares

The company has only one class of Equity having a par value Rs. 10 per share.Each shareholders is eligible for one vote per share held. The dividend is proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in the case of the interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in portion to their shareholding.

Note No. 1 (e) : During the previous year, the Company has issue 13,70,000 shares through private placement on 30th September, 2022.

Note No. 1 (f) : During the previous year, the Company has issue 3,50,000 shares through private placement by way of conversion of loan into Equity shares on 07th October, 2022.

Note No. 1 (g) : During the previous year, the company has issued 57,34,489 Equity Shares as Bonus Shares in the ratio 2 : 1 to the existing shareholders of the company by capitilisation of Reserves of the Company.

Note No. 1 (h) : During the previous year, on 22nd March, 2023, the company has issued 68,62,400 Equity Shares under SME IPO, which got listed on the BSE on 22nd March, 2023 having BSE Scrip Code 543828. The transaction costs pertaining to the issue have been debited to the share premium account.

Long Term loans Outstanding balance as at balance sheet date carry interest @7.50% to @12.90% p.a. is repayable over a period of 5 to 31 months in varying monthly installments, is secured by primary charges of factory land and praposed building at Mahad, secondary charge by way of hypothecation of movable fixed assets and Stocks & Trade Receivables of the company and charge created on third party''s immovable properties on pari passu basis with banks along with personal guarantee given by the Promoter Directors of the company Note 3.2 : From Bank 2

Long Term loans Outstanding balance as at balance sheet date carry interest @10.50% to @10.75% p.a. is repayable over a period of 33 to 42 months in varying monthly installments is secured by primary charges of factory building along with land at Talasari, exclusive charges on plant & machinery of Rs. 355 lakhs and promoter director''s immovable property at Raghuleela mall and secured by second charge on entire current assets of the Company, both present and future on pari passu basis with banks along with personal guarantee given by Promoter Directors of the company.

Note 3.3 : From Bank 3

Long Term loans Outstanding balance as at balance sheet date carry interest @8.50% p.a. is repayable over a period of 79 months in varying monthly installments, is secured by exclusive charge on immovable property owned by the company along with second charge on entire current assets and Movable Fixed Assets of the Company, both present and future on pari passu basis with banks along with personal guarantee given by Promoter Directors of the company.

Note 3.4 : Terms Loans from Banks & NBFC''s

Long Term loans Outstanding balance as at balance sheet date carry interest @8.50% p.a. is repayable over a period of 69 months in varying monthly installments, is secured by hypothication of vehicle of the Company.

Note 3.5 : Terms Loans from Banks & NBFC''s

Unsecured Business loans from various Banks / Financial Instituttions Outstanding balance as at balance sheet date carry interest ranging from 10.50% to 11.00% p.a. is repayable over a period of 27 to 45 months.

Working Capital Facility (Cash- Credit) having sanctioned limit of Rs. 2400.00 Lacs from Bank is repayable on demand having rate of interest of 11.55% p.a. For the details regarding nature / description of collateral security (refer note no. 3.1 of long term borrowings).

Note 6.2 : Working Capital Facilities from Bank 2

Working Capital Facility (Cash-Credit) having sanctioned limit of Rs. 1200.00 Lacs from bank is repayable on demand having rate of interest of 9.10 % p.a For the details regarding nature / description of collateral security refer (note no. 3.3 of long term borrowings).

Note 6.3 : Working Capital Facilities from Bank 3

Working Capital Facility (Cash-Credit) having sanctioned limit of Rs. 1250.00 Lacs from bank is repayable on demand having rate of interest of 10.60% p.a For the details regarding nature / description of collateral security (refer note no. 3.2 of long term borrowings).

Note 6.4 : Working Capital Facilities from Bank 4

Working Capital Facility (Cash-Credit) having sanctioned limit of Rs. 2750.00 Lacs from bank is repayable on demand having rate of interest of 10.95% p.a is secured by way of hypothecation of factory land and building, exlusive charge of immovable properties situated at Raghleela Mall of promoter directors of the company and first pari passu charge on entire currents assets of the company along with personal guarantee given by Promoter Directors of the company.

Note 6.5 : Working Capital Facilities from NBFC

Working Capital Facility (Purchase Finance) having sanctioned limit of Rs. 3940.00 Lacs from various Banks/ Financial Instituttions is repayable on demand having rate of interest of 8.50 % to 18.00% p.a is partially secured by way of Fixed Deposit and current investment.

28 The title deeds of all the immovable properties held by the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

29 The Company has not revalued its Property Plant and Equipment (and Right of Use assets) or intangible assets during the year.

30 The Company do not have any transactions with the Struck Off Companies during the year.

Reasons for more than 25% variance :

1. Debt Equity Ratio : During the financial year 2023-24, Company''s borrowings has been increased substantially due to increase in working capital requirements as compared to previous year due to which its Debt Service Coverage Ratio has been increased.

2. Net Capital Turnover Ratio : During the financial year 2023-24, Company''s average working capital increased substantially as compared to previous year as a consequence of this decrease in net capital turnover ratio.

3. Net Profit Ratio : During the Financial Year 2023-24, the Company has increased operating profit margin resulting into better net profit ratio as compared to previous year

32 '' The Company do not have any Benami property where any proceeding has been initiated or pending against the Company for holding any Benami property.

33 The Company has not made any wilful default from any of its lenders during the year. Hence, the Company is not classified as Willful Defaulter.

37 In the matter of legal dispute with Regans International DMCC ("Disputed Party”), we would like to inform that, the Company purchased raw materials from Disputed Party and payment was done as advance of Rs. 846.86 Lakhs however, material was not supplied. Further the Company had settlement with Disputed Party, however, the settlement was also not honoured by the Disputed Party. Subsequently the Company had filed cases against the Disputed Party before the Dubai Court of First Instance ("Dubai Court”). After reviewing the apparent documents and articles of the law, the Dubai Court passed an order imposing a precautionary seizure on the Disputed Party''s seized goods and assets at its quarters after verifying their ownership in accordance with the procedures and within the limits of the claim amount. The Dubai Court also declared that the commercial licenses belonging to the seized ones shall be placed with the economic development departments in all the Emirates and the applicant must file a lawsuit to prove the right within eight days from the date of issuance of this decision.

38 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

39 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of theCompany (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

40 The Company doesn''t have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

41 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

42 In the opinion of the board of directors the current assets, loan & advances are realisable in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

43 Net Profit after tax for the year has been used as the numerator and number of shares has been used as denominator for calculating the basic and diluted earnings per shares.

45 The Board of Directors have recommended, subject to the approval of the equity shareholders at the ensuring Annual General Meeting, a dividend on equity shares of Rs. Nil (Previous Year : Rs. 0.30) per Equity Share.

46 There are no indications of impairment on any individual cash generating assets or on cash generating units in the opinion of management and therefore no test of impairment is carried out.

47 All the known income and expenditure and assets and liabilities have been taken into account and that all the expenditure debited to the profit and loss account have been exclusively incurred for the purpose of the company''s business.

48 Balance in the accounts of debtors, creditors and advances are subject to confirmation/ reconciliation/ adjustment from the respective parties.

49 The loans and advances made by company are unsecured and treated as current assets and not prejudicial to the interest of the company.

50 Previous''s Year Figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.