15. PROVISIONS AND CONTINGENCIES

Provisions are recognized when :

1) The Company has a present legal or constructive obligation as a result of past event

2) it is probable that outflow or economic benefits will be required to settle the obligation, and

3) A reliable estimate can be made of the amount of the obligation.

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the
occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a

present obligation that is not recognized because it is not probable than an outflow of resources will be required to
settle the obligation. It also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its
existence in the financial statements.

Contingent Assets are possible asset that arises 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
Company. The contingent assets are not recognized in the financial statements since this may result in the
recognition of income that may never be realized.

As and when additional information becomes available to the company, estimates are revised and adjusted
periodically to reflect the current best estimate.

16. Foreign Exchange Transaction:

The company's financial statements is presented in INR, which is also its functional currency. Transactions in
foreign currency are initially recorded by the company at its functional currency spot rate prevailing on the date of
the transaction. Year end receivables and payables are translated at year end rate of exchange. With effect from
April 2011 gain/ loss on account of fluctuations in exchange rates pertaining to long term foreign currency
borrowings to the extent they are related to acquisition of depreciable property, plant & equipments is adjusted to
the cost of asset and in case of other long term foreign currency borrowings, the same is amortized over the life of
such long term borrowings.

In all other cases, the difference on account of fluctuation in the rate of exchange is recognized in the statement of
profit and loss.

17. Financial instruments
I . Financial Assets

(a) Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through statement of
profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are
recognised using trade date accounting.

(b) Subsequent measurement

(i) Financial assets carried at amortised cost (AC)

financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the
asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

(iii) Financial assets at fair value through statement of profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

(c) Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and

Loss, except for those equity investments for which the Company has elected to present the value changes in
‘Other Comprehensive Income'.

(d) Impairment of financial assets

(i) In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss' (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through Statement of profit and loss
(FVTPL).

(ii) Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected
credit losses (expected credit losses that result from all possible default events over the life of the financial
instrument) "

(iii) For trade receivables Company applies ‘simplified approach' which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.

(iv) For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

17. II. Financial liabilities

(a) Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

(b) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.

III Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires.

18. Segment Reporting Policies:

Identification of Segments: The Company's operating business are organized and managed separately
according to the nature of product with each segment representing a strategic business unit that offer different
products and serves different markets.

Assets, liabilities, revenue and expenditure identified to each segment are taken as segment related transaction.
Common assets, liabilities and expenses are not allocated to segments.

Information about each identifiable operating segment is required to be disclosed separately and aggregated
operating segments if it exceeds the quantitative thresholds.

Operating Segment:

a) Processing of oil ( soya) seeds and refining of soya crude oil for edible use. The Company also produces oil
meal, food products from soya and value added products from downstream and upstream processing is

principal business activity of the company. Other revenue which are traded goods and selling of agriculture
equipments does not form part of a reportable segment as per Ind AS 108 on “ Operating Segment”.

b) The company has a single geographical segment as factory of the company is situated within the country.

c) The company is domiciled in India.

19. Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of shares outstanding during the period.

For the purpose of calculated diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

21. OTHER NOTES:

1. Trade Receivables, Trade and other payables are subject to confirmation and reconciliation adjustments
there of if any and the same are under progress.

2. The figures of previous year have been reclassified and /or regrouped wherever necessary to confirm to
current year classification or group.

3. The reconciliation of GST paid and receivable during the financial year 2024-25 is under progress

The Company contributes to the following post-employment defined benefit plans in India.

A Defined Contribution Plans:

The Company has certain defined contribution plans. Contributions are made to provident fund in India for
employees at the specified rate as per regulations. The contributions are made to registered provident fund
administered by the Government of India. The obligation of the Company is limited to the amount contributed and
Company has no further contractual or any constructive obligation. The Company has recognized Rs. 1.52 Lakhs
towards contribution to Provident Fund during the year (FY 2023-2024- Rs.2.10 Lakhs).

B. Defined Benefit Plan:

a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/ termination/resignation is paid as per the provisions of the Payment of Gratuity Act, 1972. The gratuity
plan is a funded plan and Company makes annual contributions to the Group Gratuity cum Life Assurance
Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. The most
recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at March 31, 2025 The present value of the defined benefit obligations and the related current
service cost and past service cost, were measured using the Projected Unit Credit Method.

11. Details of Benami Property held:

As per the requirement of Schedule - III, where any proceeding has been initiated or pending against the company
for holding any benami property under the Benami Transactions ( Prohibition) Act, 1988 ( 45 of 1988) and rules
made there under, the company shall disclose certain information about the property.

Company is not holding any Benami Property as on date 31/03/2025.

12. Willful Defaulter:

As per requirement of Schedule-III, where a company is declared willful defaulter by any bank or financial institution
or other lender, certain disclosure regarding date of declaration as willful defaulter and details of defaults (amount
and nature of defaults) has to be disclosed in the financial statement.

Company has never been declared willful defaulter by any Bank or Financial Institutions.

13. Utilization of borrowed funds and share premium

The company has not advanced ( other than advances given or received in the ordinary course of business ie
advance to employees, advance to customers or suppliers against provision of goods or services etc) or loaned or
invested funds( either borrowed funds or share premium or any other sources or kind of funds) to any other
person(s) or entity (ies), including foreign entities ( intermediaries ) with the understanding ( Whether recorded in

writing or otherwise) that the intermediary shall

I. Directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by on
behalf of the company ultimate beneficiaries or

II. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
Hence disclosure is not required under this head.

14. The company has complied the number of layers prescribed under Clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

15. No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the current as well as the previous year.

16. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year as well as
in the previous financial year.

17. The company has not made any contribution in the current financial year as well as in the previous year.

Note:

(I) Total Debt includes non-current and current borrowings

(ii) Equity attributable to owner of Natraj Proteins Limited.

(iii) Long term borrowings (excluding current portion of long term borrowings)

(iv) Working capital equal to current assets minus current liabilities (including current maturities of long term debt and
interest accrued on borrowings)

(v) Raw material consumed includes cost of material consumed , purchase of products for sale and changes in
inventories of finished goods, work in progress and product for sale.

(vi) Inventory includes raw materials and components work in progress , finished goods, stores and spare parts ,
consumable tools and good in transit- raw materials and componets.

(vii) ROCE includes adjusted earnings before interest and tax (EBIT)/average capital employed (Total assets- Current
liabilities - Non trade investment)

(viii) Return on investment = Total assets- Current liabilities - Non trade investment

As per our report of even date FOR AND BEHALF OF BOARD OF DIRECTORS

For Bhutoria Ganesan & Co. Kailash Chand Sharma Sharad Kumar Jain

Chartered Accountants (Managing Director) (Whole Time Director)

Firm Registration No. 004465C DIN 00012900 DIN 02757935

CA R.Gokulakrishnan Aditi Randhar Abhinandan Prajapati

Partner (Company Secretary) Chief Financial Officer

Membership No : 402792 Place: Itarsi

Place: Itarsi Date: 21/05/2025

Date: 21/05/2025
UDIN: 25402792BMKZWF6854