2.15. Provisions, contingent liabilities and assets

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of 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 recognised as a
finance cost.

Contingent Assets are not recognised in the financial statements.

2.16. Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as
a part of the cost of such asset till such time the asset is ready for its intended use or sale.

Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs
also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. A qualifying asset is an asset
that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing cost are
recognized as expense in the period in which they are incurred.

2.17. Inventories

• Raw materials, Work in progress, manufactured goods and Stores & Spares are valued at lower of Cost (FIFO) or estimated
net realisable value after providing for obsolescence and other losses, where considered necessary.

• By-products, self-generated scrap and non-reusable waste are valued at estimated net realisable value.

• Cost includes all charges in bringing the goods to their present location and condition, including other levies, transit insurance
and receiving charges.

• Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

• Estimated net realisable value is the estimated selling price in the ordinary course of business, reduced by estimated costs of
completion and estimated costs necessary to make the sale.

2.18. Revenue Recognition
Sale of Goods

Revenue from sales are recognized, when risks and rewards of ownership of products are passed on to the customers, which is
generally on dispatch/delivery of goods and there is no significant uncertainty regarding amount of consideration that will be
derived. Revenue from sale of goods are recognized at the fair value of the consideration received or receivable, net of returns
including estimated returns where applicable, and trade discounts, rebates, sales tax and value added tax/GST. Revenue is
recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured, and
it is reasonable to expect ultimate collection.

The Company has adopted Ind AS 115 Revenue from contracts with customers, with effect from April 1,2018. Ind AS 115 establishes
principles for reporting information about the nature, amount, timing and uncertainty of revenues and cash flows arising from the
contracts with its customers and replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts.

The Company has adopted Ind AS 115 using the cumulative effect method whereby the effect of applying this standard is
recognised at the date of initial application (i.e. April 1, 2018). Accordingly, the comparative information in the statement of profit
and loss is not restated.

Other Income

Interest Income

Interest income is recognized using effective interest rate method and on time proportion basis taking into account the amount
outstanding and the interest rate applicable.

Dividend

Dividend income is recognised when the Company's right to receive the payment is established, which is generally when
shareholders approve the dividend.

2.19. Employee Benefits

Defined benefit plans

The liability in respect of defined benefit plans is calculated using the projected unit credit method with actuarial valuations being
carried out at the end of each annual reporting period. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government
bonds. The currency and term of the government bonds shall be consistent with the currency and estimated term of the post¬
employment benefit obligations. The current service cost of the defined benefit plan, recognised in the profit or loss as employee
benefits expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit
changes, curtailments and settlements. Past service costs are recognised in profit or loss in the period of a plan amendment. The
net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. This cost is included in employee benefit expense in profit or loss. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to OCI in the period in which they arise and is reflected
immediately in retained earnings and is not reclassified to profit or loss.

Short-term and Other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, and casual leave in the period the
related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

The Company's net obligation in respect of other long-term employee benefits is the amount of future benefit that employees
have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present
value.

Defined contribution plans

The Company's contributions to defined contribution plans are recognised as an expense as and when the services are received
from the employees entitling them to the contributions.

2.20. Income Tax

Current Income Tax

Income tax expense consists of current and deferred tax. Income tax expense is recognised in profit or loss except to the extent
that it relates to items recognised in OCI or directly in equity, in which case it is recognised in OCI or directly in equity respectively.
Current tax is the expected tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the
end of the reporting period, and any adjustment to tax payable in respect of previous years. Current tax assets and tax liabilities
are offset 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.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities
are offset if there is a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it
is no longer probable that the related tax benefit will be realised. Withholding tax arising out of payment of dividends to
shareholders under the Indian Income tax regulations is not considered as tax expense for the Company and all such taxes are
recognised in the statement of changes in equity as part of the associated dividend payment.

Minimum Alternate Tax ('MAT') credit is recognised as deferred tax asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against
the normal tax liability. MAT credit recognised as an asset is reviewed at each Balance Sheet date and written down to the extent
the aforesaid convincing evidence no longer exists.

2.21. Earnings per share

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is calculated by dividing
the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding
during the period. Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted
average number of equity shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock options
granted to employees.

2.22. Foreign Currency

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of entities within the Company at exchange
rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are
translated into the functional currency at the exchange rate at that date. Exchange differences arising on the settlement of
monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition
during the period or in previous financial statements are recognized in the income statement in the period in which they arise.

When several exchange rates are available, the rate used is that at which the future cash flows represented by the transaction or
balance could have been settled if those cash flows had occurred at the measurement date.

2.23. Research and development

Expenditures on research activities undertaken with the prospect of gaining new scientific or technical knowledge and
understanding are recognized in the income statement when incurred. Development activities involve a plan or design for the
production of new or substantially improved products and processes. Development expenditures are capitalized only if:

• development costs can be measured reliably;

• the product or process is technically and commercially feasible;

• future economic benefits are probable; and

• the Company intends to and has sufficient resources to complete development and to use or sell the asset.

The expenditures to be capitalized include the cost of materials and other costs directly attributable to preparing the asset for its
intended use. Other development expenditures are recognized in the income statement as incurred.

3. RECENT ACCOUNTING PRONOUNCEMENTS

The Ministry of Corporate Affairs (MCA) on 23rd March, 2022 through companies (Indian Accounting Standards) Amendment Rules,
2022 has notified the following amendments to IND AS which are applicable on 1st April 2022:

3.1. Ind AS 16 - Property, Plant and equipment -

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised
in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant and
equipment. The amendment prohibits an entity from deducting from the cost of property, plant and equipment amounts received
from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such
sales proceeds and related cost in the profit or loss The Company does not expect the amendments to have any impact in its
recognition of its property, plant and equipment in its financial statements.

3.2. Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets

The amendment specifies that the cost of fulfilling a contract comprises the costs that relate directly to the contract. Costs that
relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials)
or an allocation of other costs that relate directly to fulfilling contracts (examples depreciation charge). The amendment is
essentially a clarification, and the Company does not expect the amendment to have any significant impact in its financial
statements.

3.3. Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired
and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting
under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the
acquisition date. These changes do not significantly change the requirements of Ind AS 103.

3.4. Ind AS 106 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any
potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described
in that illustration. The Company is in the process of assessing the impact of the amendment in its financial statements.

3.5. Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the '10 %' test of Ind AS 109 in assessing whether to
derecognise a financial liability. The Company is in the process of assessing the impact of the amendment in its financial statements.

Footnote:

1) -Rupee Term Loan from banks comprises of Loan taken for expansion project and Car loans.

-Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save
and except stock and book debts), situated at one of the Company's location.

-Car loan from bank is secured against hypothecation of Car.

-Rate of Interest are in the range of Base Rate plus 0.00% to 2.65% p.a. and repayable on quarterly basis with last in March 2027[Refer
Note 30.1]

2) -Rupee Term Loan from Other comprises of Loan taken for expansion of project and Long-term augmentation of working capital and
is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts),
situated at separate locations of the Company.

-Rate of Interest for FIs are in the range of Base Rate plus 0.00% to 2.65% p.a. and repayable on quarterly basis with instalments
payable until March 2027[Refer Note 30.1]

-Borrowings from Others are repayable as per agreed terms in single tranche along-with accrued Interest at the end of 10 years ie.
Mar-2030. In accordance with contractual terms, interest has commenced from FY20-21.

30. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

30.1. Contingent liabilities and Capital commitments (to the extent not provided): NIL
Footnote:

During the prior period certain Lenders had initiated formal legal communication, with a view to protect their interest. The Company
has contested and continues to defend such action by the Lenders. Meanwhile the Company also continued to engage with lenders
with a view to arrive at a resolution to ongoing matters. Due to ongoing dispute with the lenders in relation to their failure to comply
with committed lending obligations, the Company has, basis of legal advice, not provided for interest costs on certain loans outstanding,
amounting to INR 2,632.70 Lacs in respect of Operating Assets and INR 11,628.07 Lacs in respect of Project Assets. The Company
continues to believe in the merits of the litigation, however, there continues to remain material uncertainties in relation to the outcome
of the said litigations. Further, the Company has not provided for interest cost on such borrowings, in the event, the Company would
have provided the interest as per contractual terms on such borrowings, the total liability in respect of such borrowings would be INR
159,972.84 Lacs as on 31 st Mar 2025.

1. The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments

(B) Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. An explanation of each level are follows

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There are no Financial Assets which are required to be carried at Fair value using Fair value hierarchy

30.16. Financial Risk Management Objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk
(including interest rate risk and other price risk), credit risk and liquidity risk.

(A) Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a
financial instrument, as a result of interest rates, and other price risks. Financial instruments affected by market risks,
primarily include loans, borrowings and Trade receivables.

(i) Interest Rate Risk

The Company borrows funds in Indian Rupees, to meet both the long term and short-term funding requirements.
Interest on term borrowings is subject to Base rate / MCLR and is fixed for at least one year. The sensitivity analysis
detailed below have been determined based on the exposure to variable interest rates on the average outstanding
amounts due to bankers over a year. [Refer Note 30.1]

(ii) Price Risk

100% of Company's revenues are generated from Local Markets and the raw materials are procured through local
purchases where local purchases track import parity price. The Company is affected by the price stability of certain
commodities. Due to the significantly increased volatility of certain commodities, the Company enters into contract
with the customers that has provision to pass on the change in the raw material prices. The Company has a risk
management framework aimed at prudently managing the risk arising from the volatility in commodity prices and
freight costs.

(iii) Foreign Currency Risks

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company is exposed to foreign exchange risk arising from foreign currency transactions.
Foreign exchange risk arises from future commercial transactions and is recognised as financial assets and liabilities,
denominated in a currency that is not its functional currency. The exposure to foreign currency risk of the Company
at the end of the reporting period was NIL.

(B) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer.

Though the Customer credit risk is managed by the Company's established policy, procedures and control relating to the
customer credit risk management, the impact arising from above on its trade receivables needs to be closely monitored
on case to case basis and allowance if any should be appropriately considered. The Company uses financial information
and past experience to evaluate Outstanding receivable in terms of credit worthiness, credit quality, individual credit limits
of majority of its customers which are periodically monitored. The historical experience of collecting receivables of the
Company is supported by low level of past default, however the impact of the on-going situation needs continuous
evaluation by the management. The credit risk as at balance sheet date is perceived to be moderate, however expected to
improve going forward.

1. The construction of the Mega Greenfield Expansion project undertaken by the Company has been temporarily kept on hold predominantly
due to failure of Lenders in fulfilling their committed lending obligations. Also, the Management has taken several actions like (i) reduction
in unit operating costs (ii) increasing liquidity by making its operations more efficient and nimbler (iii) putting on hold discretionary expenses
and (iv) deferring certain capital expenditures, etc.

30.17. Investor Education and Protection Fund

In view of the moratorium u/s 14 of the Insolvency & Bankruptcy Code, 2016 being in force against the Company, the action of
transferring funds lying in the Unpaid Dividend Account of the Company to Investor Education and Protection Fund, as per the
provisions of sub-section (5) of Section 124 of the Companies Act, 2013, has been kept in abeyance and shall be subject to
orders of the Hon'ble NCLT.

30.18. Corporate Social Responsibility:

During FY 2024-25, the CSR provisions were not applicable, since the Company did not meet the criteria as stipulated u/s. 135(1)
of the Companies Act, 2013.

30.19. In the opinion of the Board of Directors / Interim Resolution Professional, except as otherwise stated, the Current Assets, Loans
and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated
in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

30.20. The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity, Statement of Significant
Accounting Policies and the Other Explanatory Notes for the year ended March 31, 2025, forms an integral part of the financial
statements of the Company.

30.21. The Operations of the Company were severely impacted materially due to Covid-19 pandemic and its resurgence during
previous years. However, the Company continued to incur committed expenditure with respect to its Employees, Plant & Other
related expenditures. This has significantly impacted Company's profitability. The IRP is evaluating all the possible effects
resulting from such situation in relation to the carrying amounts of Trade receivables, Inventories, its assets comprising Property,
Plant and Equipment, Intangible assets, Financial assets but has not yet concluded on adjustments required to be made to the
carrying values of such assets as at March 31, 2025, accordingly, no accounting for any Impairment/Write-off on account of Loss
of certain receivables of the company and certain Non-current liabilities, has been done. The same however is not affecting
continuing operations. The impact assessment is a continuing process given the uncertainties associated with its nature and
duration. In developing such assumptions and estimates relating to the uncertainties in relation to the recoverable amounts of
these assets, the management is using internal and external sources of information to the extent available. The Impact of the
same may be evident at a future date, however the same may not affect continuing operations.

Several actions have been taken to mitigate the effects of Covid-19, Russia-Ukraine conflict & Challenging economic Landscape
on Company's business by reducing unit costs and increasing liquidity by making operations more efficient and nimbler, putting
on hold discretionary expenses, deferring certain capital expenditures, etc. In order to sustain operations, actions to cut employee
costs through pay cuts, leave without pay and reduction in workforce have also been taken during the period under review.

30.22. Previous Year's figures

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification

/ disclosure and to conform to Ind AS presentation requirements.

30.23. Other Statutory Information

(i) There are no proceedings which have been initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) The Company has not been declared a wilful defaulter by any bank or financial institution.

(iii) The Company has not identified any transaction with Companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 and has no balances outstanding from struck of Companies.

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

(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company have not advanced or loaned or invested funds to any other person(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.

(vii) The Company have 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

(viii) The Company does not have any 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).

(ix) Title deeds of all the Immovable Property are held in name of the Company.

(x) The Code on Social Security, 2020 and Code of wages, 2019 relating to employee benefits during employment and post¬

employment benefits received Presidential assent in September 2020. The Codes have been published in the Gazette of India.
However, the date on which the Codes will come into effect has not been notified. The Company will assess the impact of
the Codes when it comes into effect and will record any related impact in the period the Codes become effective.

(xi) The National Company Law Tribunal ("NCLT"), Mumbai Bench, vide order dated 2nd November 2023 passed in CP (IB) 446

MB 2023 has initiated corporate insolvency resolution process ("GRP") against the company. Mr. Bhavesh Rathod, IP

Registration No. IBBI/IPA-001/IP-P01200/2018-2019/11910 has been appointed as Interim Resolution Professional ("IRP") to
manage affairs of the Company in accordance with the provisions of the insolvency and bankruptcy Code 2016 ("Code). In
line with the provisions of the Code, the powers of the Board of Directors stand suspended and the same are being exercised
by IRP.

As per our report attached

For THACKER BUTALA DESAI For Seya Industries Ltd. (Under CIRP)

Chartered Accountants

Firm Registration No.: 110864W

Ashok G Rajani ^{Bhavesh Rathod}

Managing Director (Suspended) ^Interim Resolution Profession^

_{KUNJAN GANDHI} DIN: 01839535 Reg. No. IBBI/IPA-001/IP-PO1200/2018-2019/11910

Partner

^Membership ^{Na 39195} Amrit Rajani Manisha Solanki

^{Mumbai, May 30, 2025} Chief Financial Officer Company Secretary