1 (iii). There are no capital work in progress whose completion is overdue or has exceeded its cost compared to its original plan.

2 (iv). The title deeds of the properties are in the name of the company except for the title deed of the factory land at Panasa-padu, East Godavari, Andhra Pradesh continued to be in the name of the erstwhile Partnership Firm M/s. Apex Exports which is converted as company under Part IX of the Companies act, 1956 in March,2012.

3 (v). No proceedings have been initiated or pending against the company, for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) and the rules made thereunder.

3(vi). The company has not revalued its Property, plant & equipment (including Right of Use assets) and intangible assets during the year under report

4(vii). There are no intangible assets under development as at 31st March 2023. (Previous year - Nil)

(b) Terms/ rights attached to equity shares

The Company has issued one class of ordinary shares at par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts if any, in proportion to their shareholding.

13(1). The loan from Bank is guaranteed/secured by :-

(i) The loans from banks comprises of vehicle loans which are primarily secured by the respective vehicles financed.

(ii) Loans from LIC were secured by Employer-employee LIC policies and was without stipulation for the date of repayment.

13(2). Term of repayment of loans

From banks:

(ii) Maturity profile - Vehicle loan from banks

16(i)The Borrowing from bank is secured by :

Primary Security

Exclusive charge on Current assets of the Company by way of hypothecation of stocks of raw material, work in process, finished goods.

Collateral Securities:

Equitable mortgage of 17762.80 sq. yds and 56047.2 sq. yds unit land and building at G. Ragampeta at R S No 209/2 and R

S no 210/4 G at the factory location in the name of the company.

Factory land and building and plant and machinery situated vide Survey No.214, 271/5, 271/4 at Panasapadu village, Acham-peta Panchayat, Samalkota Mandal and at Tallarevu vide Survey No.389/1 that are taken as principal security for the earlier term loans which were closed but continued as collateral security for the working capital limit.

Personally guaranteed by two directors.

16(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

16(iii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

16(iv) The Company has obtained borrowings from bank on basis of security of current assets wherein the quarterly returns/ statements of current assets as filed with bank are in agreement with the books.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

ii. Post-employment benefit obligation - Gratuity

The company provides gratuity, as per defined benefit retirement plan (“the Gratuity plan”) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the company. Contributions are invested in a scheme with the Life Insurance Corporation of India as permitted by Indian law.

The plan provides for lumpsum payment after retirement/ super annuation as set out in rules of each fund and includes death and disability benefits.

Liabilities with regard to these defined benefit plans are determined by actuarial valuation, performed by an external actuary, at each balance sheet date using the projected unit credit method. These defined benefit plan expose the company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk.

The following tables set out the funded status and the amounts recognized in the company's financial statements as at March 31, 2023 and March 31, 2022:

The Present value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed assumption is given below:

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

Note:

1. Reduction in loans and higher efficiency on working capital has resulted in improvement of the ratio.

2. Revenue growth along with higher efficiency on working capital management has resulted in an improvement in the ratio.

33 (b). Note on Ultimate Beneficiaries

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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

33 (c). The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

33 (d). The Company does not have any transactions with companies struck off.

33 (e). The company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

Note 33(f): The Company, with a view to avoid protracted tax litigation and for expeditious resolution preferred an settlement application on 26.12.2019 under Section 245C of the Income Tax Act for the earlier 7 financial years (2011-12 to 201718) on 26.12.2019. During the previous year ended March 31, 2023, the Interim Board for Settlement (Formerly Income Tax Settlement Commission passed an order determining the additional income of Rs.1308.78 Lakhs, comprising disallowance of expenditure of Rs.1182.89 Lakhs and unrecorded income of Rs.125.89 Lakhs. The corresponding tax liabilities have been provided/remitted in the current and the earlier years. The Company has not recorded the transactions of the said income in the books of account during the year.

35. Previous year figures have been regrouped / reclassified wherever necessary to conform to this year's classification.

36. Capital Management

The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The company sets the amount of capital required on the basis of annual business and long term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and borrowed funds. The company tries to maintain an optimal capital structure to reduce cost of capital and monitors capital on the basis of debt-equity ratio.

38. Disclosure relating to leases As a lessor:

The Company has leased out its property under operating lease for period of 6 years. There are no variable lease payments. The details of income from such leases are disclosed under and Note 23. The Company does not have any risk relating to recovery of residual value of property at the end of leases considering the business requirements and other alternatives.

The undiscounted minimum lease payments to be received over the remaining non-cancellable term on an annual basis are as follows:

39. Dislcosure on Government Grants A. Revenue Grants

1. EPCG Grant

Grant recognised in respect of duty waiver on procurement of capital goods under EPCG scheme of Central Government which allows procurement of capital goods including spares for pre production and post production at zero duty subject to an export obligations of 6 times of the duty saved on capital goods procured. The unamortized capital grant amount as on March 31, 2023 is Rs.236.34 lakhs (PY: NIL ). As the entire export obligation is wholly unperformed as at the year end, the amount recognised in the current year in the statement of profit & loss account as amortisation of revenue grant is Nil(PY: NIL). The company expects to meet the export obligations in line with the scheme.

2. Export incentives received

Company is entitled for Duty Draw Back on the FOB value of Exports made. The amount received under duty drawback is recognized as income under other operating revenue.

Company is entitled for Remission of Duties and Taxes on Exported Products scheme (RoDTEP) which is introduced from January, 2021. The incentive is in the form of grant of Duty Credit Scrip from D.G.F.T. The said Scripts are in turn, encashed by way of sale to importers. The entitlement of scrips for the exports made during the year is recognised as income under other operating revenue.

41. Financial Risk Management

The company's activities expose it to variety of financial risks: market risk, credit risk, interest rate risk and liquidity risk. Within the boundaries of approved Risk Management Policy framework. The Company uses derivative instruments to manage the volatility of financial markets and minimize the adverse impact on its financial performance.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.

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 currency rates. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee

ii) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company's activities of dealing in derivatives and receivables from customers. The Company ensure that sales of products are made to customers with appropriate creditworthiness. Credit information is regularly monitored by finance function, with a framework in place to quickly identify and respond to cases of credit deterioration. Credit is extended in business interest in accordance with guidelines and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities, after due consideration of the counterparty's credentials and financial capacity, trade practices and prevailing business and economic conditions.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Credit risk is actively managed through Letters of Credit, Bank Guarantees and advance payments to the company to avoid concentration of risk.

The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognized, where considered appropriate by responsible management.

Exposure to credit risk

The allowance for impairment in respect of trade receivables during the year was Rs Nil (31 March 2022: Rs Nil) The gross carrying amount of financial assets for which 12 months expected credit loss recognised.

iii) Liquidity risk

Liquidity risk arises from the Company's inability to meet its cash flow commitments on the due date. The company maintains sufficient stock of cash and committed credit facilities. Treasury monitors rolling forecasts of the company's cash flow position and ensures that the company is able to meet its financial obligation at all times including contingencies.

The company's liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in a range of short-dated, secure and liquid instruments.

*The Agriculture and Cooperation (MKTG-II) Department of Govt of Andhra Pradesh of G.O.Ms.No.27 dated 22.04.2022 has notified an increase in the market fee to 1% with effect from the date of Notification which was 22-04-2022 and Gazette

on 26.04.2022. This notification was challenged before the High Court of AP at Amaravati vide Wp No:15437 of 2022. The Honourable high court of Andhra Pradesh vide interim order dated suspended the operation of the above GO.

The company is contingently liable depending on the final order of the high court in the writ.

43. Adjustment of prior period errors

The company has provided lower deferred tax liability to an extent of Rs.699.68 Lakhs as on 31st March 2021 and Rs. 0.62 Lakhs for the year ended 31st March 2022 totalling to Rs 700.30 Lakhs up to 31st March 2022. This is an error relating to the prior period discovered during the year.

As required under Ind As 8 “Accounting policies, Changes in accounting estimates and errors”, the company has restated:

a) the retained earnings as at 1st April 2021 by reducing it by Rs. 699.68 Lakhs and

b) the provision of deferred tax liability in the statement of profit and loss for the year ended 31st March 2022 from Rs. 98.22 Lakhs to Rs. 98.84 Lakhs , by increasing the said liability / provision by Rs.0.62 Lakhs.

The consequential cumulative impact of the restatement in the balance sheet is that the Deferred tax asset as at 1st April 2021 and 31st March 2022 is restated from Rs. 231.04 Lakhs and Rs.132.82 Lakhs to Deferred tax liability of Rs. 468.64 Lakhs and 567.48 Lakhs and respectively.

The restatement of the provision for deferred tax liability for the year ended 31st March 2022 has the impact of reducing the reported figures of the profit for the year, Total comprehensive income by 0.62 lakhs (from Rs.4108.07 lakhs and 4777.09 lakhs to Rs.4107.45 lakhs and Rs. 4776.47 lakhs respectively) and reduction in the basic and diluted EPS of Rs 10/- per equity shares from Rs.13.15 to Rs. 13.14.

The adjustment of the deferred tax liability and the consequential restatement at the beginning of the 1st April 2021 and for the year ended 31st March 2022 does not have any current tax implications nor has any impact on the reported figures of any other assets or liabilities except as indicated above.

44. Distributions proposed

Final dividend on equity shares( FV of Rs. 10 each) of Rs.2.5 (PY Rs.2.5 ) Per share amounting to Rs.781.25 Lakhs (PY Rs. 781.25 Lakhs) has been proposed by the board of directors.

Proposed dividend on equity shares is subject to approval at the ensuing Annual General Meeting and are not recognised as a liability as at 31 March 2023.

45. The financial statements were approved for issue in accordance with a resolution of the board of directors on 30th May 2023.