j) Provisions and contingent liabilities

Provisions

Provisions are recognized when there is a present legal or constructive obligation as a result of a past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities

Contingent liabilities are disclosed in the Notes to the standalone financial statements. They are disclosed when there is a possible obligation arising from past events, the existence of which 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, or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made.

k) Earning per shares

Basic earnings per share is calculated by dividing the net profit after tax for the period attributable to equity shareholders 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 and sub-division of share, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

l) Foreign currency translation Functional and presentation currency

Items included in the standalone financial statements are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’). The standalone financial statements are presented in Indian Rupees (INR), which is Company’s functional and presentation currency. Transaction and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, as well as from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates, are generally recognized in the Statement of Profit and Loss. Non-monetary items that are measured at historical cost in foreign currency are not retranslated. All nonmonetary items denominated in foreign currency are carried at historical cost or a similar valuation and are reported using the exchange rate that existed when the values were determined.

m) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating decision-maker. The Chief Operating decision-maker is responsible for allocating resources and assessing performance of the operating segments and makes strategic decisions. Refer Note 33 for segment information presented.

n) Exceptional items

When items of income or expense are of such nature, size and incidence that their disclosure is necessary to explain the performance of the Company for the year, the company makes a disclosure of the nature and amount of such items separately under the head “exceptional items.”

o) Statement of Cash Flow

Cash flows are reported using the Indirect Method, as set out in Ind AS 7 ‘Statement of Cash Flow’, whereby profit for the year is adjusted for the effects of transaction of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

[32] EMPLOYEE DEFINED BENEFIT AND CONTRIBUTION PLANS

a) Defined Benefit Plans

Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) for eligible employees. The Gratuity Plan provides a lump sum payment to vested employees upon retirement (subject to completion of five or more years of continuous employment), death, incapacitation or termination of employment. The payment amount is based on employee’s last drawn salary and tenure of service. Previously, the company calculated accruing gratuity liability based on the assumption that such benefits would be payable to all employees at the end of the accounting year, subject to annual review. However, the company now recognizes liabilities related to the Gratuity Plan on an actuarial valuation on the reporting date. Currently, the company’s Gratuity Plan is not funded by any qualified assets. The disclosure in respect of the defined Gratuity Plan is given below:

[37] FINANCIAL RISK MANAGEMENT

The company’s activity exposes itself to variety of financial risk which includes market risk, credit risk, liquidity risk and interest rate risk. The Company has various financial assets such as deposits, trade receivables and cash and cash equivalent directly related to its business operations. The principal financial liabilities of the company consist of borrowings and trade payables. The senior management of the company focuses on anticipating unpredictability and minimizing potential adverse effects on the company’s financial performance. The Company’s overall risk management procedures to mitigate the potential adverse effects of financial market on the Company’s performance are as follows:

a) 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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. The Company’s exposure to market risk is primarily on account of interest risk, foreign currency risk and Commodiy price risk.

i) Interest rate risk management:

The Company is exposed to interest rate risk due to borrowings funds at both fixed and floating interest rates. This risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below is based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for entire year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel, representing management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s Profit for the year ended March 31, 2024 would decrease/increase by Rs.954530.00 (for the year ended March 31, 2023: decrease/increase by Rs.2226174.00). This change is mainly attributable to the Company’s exposure to interest rates on its variable rate borrowings.

ii) Foreign currency exchange rate risk

Fluctuation in foreign currency exchange rates may potentially impact the statement ofprofit and loss, other comprehensive income and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency ofthe respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in other currency against the functional currencies of the Company.

The Company is exposed to foreign exchange risk solely through the import ofmaterial from overseas suppliers in foreign currencies. The total exposure in foreign currency during the year ended March 31, 2024 was Rs.67652436.78 (compared to Rs. 251780370.00 for previous year ended March 31, 2023) which represents approximately 3% and 8% of total purchases for the respective period. There were no outstanding import payables at the end of the reporting period. Due to negligible volume of import transactions in foreign currency, the company primarily meets its liabilities by procuring foreign currency in the open market at the time of paying its import liabilities. The Company also evaluates the impact offoreign exchange rate fluctuations by assessing its exposure to exchange rate risks to the extent required. The Company does not enter into any derivative financial instruments to hedge its risk exposures.

iii) Commodity Price Risk

The Company is exposed to the risk of changes in commodity prices, particularly related to its purchase of raw materials, especially crude edible oil and chemicals.

The Company develops periodic financial forecasts based on commodity price forecasts by its procurement group and appropriate actions including changes in selling price and cost saving measures are considered as part of the financial modeling to mitigate the impact of commodity price changes.

A 1% increase in commodity prices would have led to approximately Rs.22456274.00 additional loss in the Statement of Profit and Loss (2022-23: Rs.30690279.00 loss). Conversely, a 1% decrease in commodity prices would have had an equal but opposite effect.

b) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities (particularly trade receivables). To manage this risk, the Company consistently monitors the financial health of its customers, ensuring that sales proceeds are realized according to milestone payment terms to minimize losses from defaults or customer insolvency. Progressive liquidity management practices are employed to mitigate the risk of non-fulfillment of liabilities to various creditors, statutory obligations and stakeholders.

Trade Receivables

The Company’s exposure to trade receivables is mitigated by a diversified customer base. The Credit quality of customers is assessed using an extensive credit rating scorecard, and individual credit limits are defined on this assessment. Additionally, a significant portion ofCompany sales involve advance payment or collection on delivery terms, further reducing credit risk. The Company consistently monitors contract progress with customers and ensures sales proceeds align with milestone payment terms to minimize potential losses from defaults or customer insolvency. An impairment analysis is conducted at each reporting date on a per-client basis for major clients. Management continuously monitors credit exposure to customers and provision against balances deemed doubtful of recovery.

In determining the allowance for doubtful trade receivables the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as per the provision matrix.

Allowance for expected credit loss is based on lifetime expected credit loss method as specified under simplified approach as per Ind AS 109.

[41] NOTE ON TRANSITION TO IND AS

For reporting purposes as outlined in Note 2, we have transitioned our basis of accounting from Indian Generally Accepted Accounting Principles ("GAAP") to Ind AS. The accounting policies detailed in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2024. The comparative information presented in theses financial statements for the year ended March 31, 2023, and in the preparation of an opening Ind AS balance sheet as of April 1, 2022 (the "transition date"). In preparing our opening Ind AS balance sheet, we have made certain adjustment to amounts reported in financial statements prepared in accordance with GAAP. As explanation of how the transition from GAAP to Ind AS has affected our financial position and performance is provided in the following tables. Upon transition, we did not revise estimates previously made under GAAP except where required by Ind AS.

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 followings exemptions:

-Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and Equipments and other assets as recognised in its GAAP financials as deemed cost at the transition date.

-As per Ind AS 116 Leases, the Company has adopted the standard for all lease contracts existing on 1st April 2022 using the full retrospective approach. These leases were classified as "Operating Leases" under previous GAAP. On transition to Ind AS 116 "Leases", the Company has recorded the ROU assets and lease liability (Including provision for estimated dismantling costs) as of April 1, 2022, using discounting values as of April 1, 2021 (date of lease comencement). The difference between the ROU asset and Lease liability will impact retained earnings as of April 1, 2022.

-The Company has applied the requirements for de-recognition of financial instruments, as required in Ind AS 109 financial instruments prospectively for financial transactions occurring on or after April 1, 2022, the date of transition to Ind AS.

-The Company has applied classification and measurement of financial assets on the basis of facts and circumstances that existed on the date of transition to Ind AS. Estimates

The Company estimates in accordance with Ind AS at the date oftransition to Ind AS are consitent with estimates made for the same date in accordance with previous

GAAP.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2022, the date oftransition to Ind AS and as of March 31, 2023.

iii) Reconcilation to Statement of Cash Flow

There are no material adjustments to the Statement of Cash Flows as reported under the Previous GAAP

Notes to reconcilations between Previous GAAP and Ind AS

a) Transition to Ind AS 116 Leases:

As per Ind AS 116 Leases, the Company has adopted the standard for all lease contracts existing on 1st April 2022 using the fully retrospective approach. These leases were classified as "Operating Leases" under previous GAAP. On transition to Ind AS 116 "Leases", for these leases, lease liabilities (Including provision for estimated dismantling costs) are measured at the present value of the lease payments using the full retrospective approach (i.e. from the date of commencement of the lease, April 1, 2021), discounted at the Company's incremental borrowing rate as of April 1, 2021. The carrying amount of the Right of use (ROU) assets is calculated as if Ind AS 116 had been applied since the commencement date, using the incremental borrowing rate as of that date.

The Company has recorded the ROU assets Rs.10001195.00 and lease liability (Including provision for estimated dismantling costs) Rs.10788897.00 as ofApril 1,2022, using discounting values as of April 1, 2021. The difference between the ROU asset and Lease liability Rs.787702.00 will impact retained earnings as of April 1, 2022. Due to transition, the nature of expenses related to operating leases has changed from "Lease Rent" to "depreciation cost" and "finance cost" for the right-of-use assets and for interest accrued on lease liability respectively. Therefore, these expenses for the current year and previous year have been reclassified accordingly. The net effect of this change is a decrease in total equity as at March 31, 2023 ofRs.601607.00 [Net of Tax Effect Rs.202358.00] and decrease in total profit forthe year ended March 31, 2023 of Rs.601607.00

b) Under the previous GAAP, provision for doubtful debts on trade receivables were carried on the basis ofan incurred loss model. As per Ind AS, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a results there is an increase in the amount of allowance for doubtful debts and corresponding deferred tax has also been recognised. The net effect of this change is a increase in total equity as at March 31,2023 ofRs.3545638.00 [Net of Tax Effect Rs.1192619.00] (Decrease in total equity Rs.6173447.00 as at April 1, 2022 [Net ofTax Effect Rs.2076515.00]) and increase in total profit forthe year ended March 31, 2023 of Rs.3545638.00.

c) In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) for eligible employees. The Gratuity Plan provides a lump sum payment to vested employees upon retirement (subject to completion offive or more years ofcontinuous employment), death, incapacitation or termination of employment. The payment amount is based on employee’s last drawn salary and tenure of service. Previously, the company calculated accruing gratuity liability based on the assumption that such benefits would be payable to all employees at the end of the accounting year, subject to annual review. However, the company now recognizes liabilities related to the Gratuity Plan on an actuarial valuation on the reporting date. Currently, the company’s Gratuity Plan is not funded by any qualified assets.

The net effect of this change is a decrease in total equity as at April 1, 2022 of Rs.232114.00 [Net ofTax Effect Rs.78075.00]. Actuarial losses as at April 1, 2022 were Rs.275899.00 and the tax effect thereon is Rs.69444.00. The effect of this change is an increase in retained earnings of Rs.206455.00 and recognized loss in Other Comprehensive income in Equity Rs.206455.00. In the year ended March 31, 2023, the net effect of the change is an increase in total equity Rs.1370.00 [Net ofTax Effect Rs.462.00], a decrease in total profit of Rs.57923.00, and an increase in Other Comprehensive income of Rs.59293.00.

d) In relation to refund of Rs. 168700.00 for April 1, 2022, and Rs.4000.00 for March 31, 2023, adjusted by the department against outstanding demands under litigation, the company mistakenly debited these amounts to retained earnings instead of debiting them to income tax deposit against demands. This error and omission have now been rectified by applying the necessary corrections.

e) Deferred Tax on Ind AS Adjustment (Net): Tax adjustments include deferred tax impact on account of differences between Previous GAAP and Ind AS.

(1) Total Debts = Long term Loans Current maturities of Long term debts Lease Liabilities

(2) Shareholder's Fund = Equity Share Capital Other Equity (i.e. Reserve and Surplus etc.)

(3) Earning for Debt Service = Net Profit befor taxes Depreciation and other amortization Long term debt interest Lease Finance Cost

(4) Debt Service = Long term debt interest Lease Payment Principal Repayment of Long term debt

(5) Average Inventory = (Opening Closing Balance)/2

(6) Average Trade Receivables = (Opening Closing Balance)/2

(7) Average Trade Payable = (Opening Closing Balance)/2

(8) Working Capital = Current Assets - Current Liabilities

(9) Capital Employed = Tangible Net Worth - Total Long Term Debts Lease Liabilities

43] RELATIONSHIP WITH STRUCK OFF COMPANIES:

The Company does not have any transaction with companies struck offunder Section 248 ofthe Companies Act, 2013 or Section 560 ofthe Companies Act, 1956, during the current year and in the previous year.

44] OTHER STATUTORY INFORMATION:

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

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

iii) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

iv) The Company has not advanced or loaned or invested funds to any other persons(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

v) The Company has not received any fund from any person(s) or entity(ies), 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.

vi) The Lender of the company has not declared company as willful defaulter and also company has not defaulted in repayment of loan to the lender.

vii) The Company has no subsidiary, associates and joint venture down word.

viii) The Company has not entered into any transaction which is not recorded in the books ofaccounts 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).

[45] Pursuant to Sections 61 and 63 of the Companies Act, 2013, pertaining to the increase in authorized share capital and the issuance of bonus share, the Company has not able to comply with the statutory obligation to file requisite Form SH-7 for the increase in Authorized Equity Share Capital from Rs.1500.00 Lacs to Rs.4000.00 Lacs, and Form PAS - 3 for the issuance of Bonus Shares (250248000 No.) to Equity Shareholder, as approved by Shareholders in their Extraordinary General Meeting held on March 4, 2024, and allotted to the eligible shareholders on March 15, 2024, with the Registrar of Companies within due date. This delay is due to pending approval of the old form SH-7 dated October 25, 2023, regarding the sub-division ofEquity shares from Rs.10/- each to Rs.1/- each, which was pending with Registrar of Companies until March 31, 2024. Consequently, the above-mentioned forms were not filed within due date. However, the company has filed the pending documents in May 2024 and same have been duly approved by the Registrar of Companies on May 14, 2024 (SH-7) and May 16, 2024 (PAS-3) respectively.

[46] The Union Ministry ofLabour issued draft rules under section 67 of the Code on Wages Act on July 7, 2020, in the Gazette. The Act is yet to come into effect. The three labour codes i.e. the Occupational Health, Safety and Working Conditions Code 2020, the Industrial Relations Code 2020, and the Code on Social Security 2020, have been passed by the parliament and have also received the assent of the President of India on September 28, 2020. However, the date on which these Codes will come into effect has not been notified. The Company will assess the impact of these Codes and will record any related impact in the period these Codes become effective.

[47] Previous years’ figures have been restated to comply with IND AS to make them comparable with the current period. Further, previous years’ figures have been regrouped / reclassified, wherever necessary, to conform with the current period presentation.

As per our report on even dated attached For and on behalf of the Board of Directors

For M/s KRA & Co.,

Chartered Accountants Parmod Kumar Neha Aggarwal

Firm Registration No.: 020266N (Managing Director) (Company Secretary)

DIN: 00126965

(Rajat Goyal)

Partner Vinod Kumar

Membership No.: 503150 (Wholetime Director)

I'DLN' : 24503150BKAH'W8606 DIN: 00150507

Place: Ambala Dated: 29th May 2024