c) Provisions

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 the obligation.

d) Inventories

Items of inventories are measured at lower cost and net realisable value after providing
for obsolescence, if any, except in case of by products which are valued at net
realisable value. Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads net of recoverable taxes incurred
in bringing them to their respective present location and condition.

Cost of raw materials, chemicals, stores and spares, packing materials, trading and
other products are determined on weighted average basis.

e) Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised
in the 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.

f) Revenue Recognition

Revenue from sale of goods is recognised when the significant risk and reward of
ownership have been transferred to buyer, recovery of the consideration is probable,
the associated cost can be estimated reliably, there is no continuing effective control
or managerial involvement with the goods, and the amount of revenue can be
measured reliably.

Revenue from rendering of service is recognised when the performance of agreed
contractual task has been completed.

Revenue from sale of goods is measured at the fair value of the consideration received
or receivable, taking into account contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.

Revenue from operations includes sale of goods, services, service tax, excise duty,
GST and adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Interest income from financial assets is recognised using the effective interest rate
method.

Dividend is recognised when the Company’s right to receive the payment has been
established.

Financial Assets

A. Initial recognition and measurement

All financial assets and liablities are initially recognised at fair value. Transaction
cost that are directly attributable to the acquisition or issue of financial assets and
financial liablities, which are not fair value through 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 asset carried at ammortised cost

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

ii. Financial asset 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 cashflows and selling
financial assets and the contractual terms of the financial assets give rise on a
specified date to cash flows that are solely payment of principal and interest on
the principal amount outstanding.

iii. Financial asset at fair value through profit or loss (FVTPL)

A financial asset which is not classified in an y of the above category are measured
at FVTPL.

C. Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries at cost.

D. 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”.

A. Initial recognition and measurement

All financial liablities 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 liablities are carried at ammortized cost using the effective interest
method. For trade and other payable maturing within one year from the balance
sheet date, the carrying amount approximate fair value due to the short maturity
of these instruments.

Derivative financial instrument and Hedge Accounting

Derivate financial instrument are initially recognised at fair value on the date on
which derivative contract is entered into and are also susequently measured at
fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liablities when the value is negative.

Any gain or losses arising from changes in the fair value of derivatives are taken
directly to the Statement of Profit and Loss, except for the effective portion of
cash flow hedge which is recognised in Other Comprehensive Income and later
to Statement of Profit and Loss when the hedged items affects profit or loss or
treated as basis adjustments if a hedged forecast transactions subsequently
results in the recognition of non-financial assets or non financial liablity.

Derecognition of financial instrument

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

h) New and amendments standrds

The Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting
Standards) Amend Rules, 2024 to amend the following Ind AS which are effective
for annual periods beginning on or after 1, 2024. The Company has not early
adopted any standard, interpretation or amendment that has been but is not yet
effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts,
vide notification date August 2024, under the Companies (Indian Accounting
Standards) Amendment Rules, 2024. The amendments had no impact on the
Company’s standalone financial statements.

(ii) Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback. The amendments had no impact on the
Company’s standalone financial statements.

i) Standards notified but not yet effective

The new and amended standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the Company’s financial statements are
disclosed below. The Company will adopt this new and amended standard, when
it becomes effective.

Lack of exchangeability - Amendments to Ind AS 21

The Ministry of Corporate Affairs notified amendments to Ind AS 21 The Effects of
Changes in Foreign Exchange Rates to specify how an entity should assess
whether a currency is exchangeable and how it should determine a spot exchange
rate when exchangeability is lacking. The amendments also require disclosure of
information that enables users of its financial statements to understand how the
currency not being exchangeable into the other currency affects, or is expected
to affect, the entity’s financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after
1 April 2025. When applying the amendments, an entity cannot restate comparative
information. The amendments are not expected to have a material impact on the
Group’s financial statements.

NOTE 11.5

The Company has not issued any securities convertible into equity / preference shares.

NOTE 11.6

During any of the last five years from year ended 31st March, 2025

a) No shares were allotted as fully paid up pursuant to contract(s) without payment being received in cash.

b) No shares were allotted as fully paid up by way of bonus shares.

c) No shares were bought back.

NOTE 11.7

Each holder of equity shares is entitled to one vote per share.

The Company’s principal financial liabilities, other than derivatives, comprises of borrowings,
trade and other payables. The main purpose of these financial liabilities is to finance the
company’s operations. The company’s principal financial assets, other than derivatives include
trade and other receivables, investments and cash and cash equivalentas that derive directly
from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk. Company’s
overall risk management focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance of the company. The company
uses derivative financial instruments, such as foregin exchange forward contracts, to hedge
foreign currency risk exposure. Derivatives are used exclusively for hedging purposes and
not as trading or speculative instruments.

The Company has standard operating procedures and investment policy for deployment of
surplus liquidity, which allows investment in debt securities and mutual fund schemes of
debt categories only and restricts the exposure in equity markets.

Compliances of these policies and principles are reviewed by internal auditors on periodicals basis.

The Corporate Treasury team updates the Audit Committee on a quaterly basis about the
implemention of the above policies. It also updates to the Internal Risk Management Committee
of Company on periodcal basis about the various risk to the business and status of various
activities planned to mitigate the risk.

A. Market Risk Management:

Market risk is the risk of loss of future earnings, 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 currency exchange rates,
commodity prices, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk senstive financial instruments including
investments and deposits, foreign currency receivables, payables and borrowings.

1) Foreign Currency Risk:

Foreign currency risk is the risk of impact related to fair value or future cash flows of an
exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The
Company’s exposure to risk of changes in foreign exchange rates relates primarily to import
of raw materials, spare parts, capital expenditure & Exports of finished goods.

When a derivative is entered for the purpose of being a hedge, the Company negotiates the
terms of those derivatives to match the terms of the hedge exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions.
The Company follows established risk management policies and standard operating
procedures. It uses derivative instruments like foreign currency forwards to hedge exposure
to foreign currency risk.

2) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial istrument will
fluctuate because of changes in market interest rates. The Company’s exposure to risk of
changes in market interest rates primarily to the Company’s short-term borrowing. The
Company constantly monitors the credit markets and rebalances its financing strategies to
achive an optimal maturity profile and financing cost. since all the borrowings are on floating
rate, no significant risk of change in interest rate.

3) Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials
prices linked to various external factors,which can affect the production cost of the Company
actively manages inventory and in many cases sale prices are liked to major raw material
prices. Energy costs is also one of the primary costs drivers, any fluctuation in fuel prices
can lead to drop in operating margin. To manage this risk, the Company enters into long¬
term supply agreement for power, identifying new sources of supply etc. Additionally,
processes and policies related to such risks are reviewed and managed by senior
management on continuous basis.

B. Credit Risk Management :

Credit risk arises when a customer or counter party does not meet its obligations under a
financial instrument or customer contract, leading to a financial loss. The Company is exposed
to credit risk from its operating activities (primarily trade receivebles) and from its financing/
investing activities, including deposits with banks, mutual fund investments, and investments
in debt securities, foreign exchange transactions and financial guarantees. The Company
has three major clients which represents 80% receivables as on 31st March, 2023 and
company is receiving payments from these parties within due dates. Hence, the company
has no significant credit risk related to these parties.

Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit
evaluation policy for each customer and based on the evaluation credit limit of each customer
is defined. Wherever the company assesses the credit risk as high the exposure is backed
by either letter of credit or security deposits.

As per simplified approach, the Company makes provision of expected credit losses on
trade receivables using a provision matrix to mitigate the risk of default payments and makes
appropriate provision at each reporting date wherever outstanding is for longer period and
involves higher risk.

Investments, Derivative Instruments, Cash and Cash Equivalent and Bank Deposit

Credit Risk on cash and cash equivalent, deposits with the banks/ financial institutions is
generally low as the said deposits have been made with the banks/ financial institutions who

have been assigned high credit rating by international and domestic rating agencies.

Credit Risk on Derivative Instruments are generally low as Company enters into the Derivative
Contracts with the reputed banks and Financial Institutions.

Investments of surplus funds are made only with approved Financial Institutions/Counterparty.
Investments primarily include investment in units of mutual funds. These Mutual Funds and
Counterparties have low credit risk

Total current investments as on 31st March, 2024 is Rs.100 Lacs (31st March, 2023- Nil.)

C. Liquidity Risk Management :

Liquidity risk is defined as the risk that the Company will not able to settle or meet its
obligations on time or at reasonable price. Prudent liquidity risk management implies
maintaining sufficent cash and marketable securities and the availability of fund through
an adequate amount of credit facilities to meet obligations when due. The company’s
treasury team is responsible for liquidity, funding as well as settlement management. In
addition, processes and policies related to such risks are overseen by senior
management. Management monitors the Company’s liquidity position through rolling
forecasts based on expected cash flows.

The fair values of financial assets and liabilities are included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in
a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorizes the values
into 3 levels. The inputs to valuation techniques used to measure fair value of financial
instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets
or liabilities. The fair value of all bonds which are trade in the stock exchanges is valued
using the closing price or dealer quotation as at reporting date.

Level 2: The fair value of financial instruments that are not traded in as active market ( For
example trade bonds, over the counter derivatives) is determined using valuation techniques
which maximize the use of observable market data and rely as little as posible on company
specific estimates. The mutual fund units are valued using the closing Net Asset Value. If all
significant inputs required to fair value an instrument are observable, the instrument is included
in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in Level 3.

The management assessed that fair value of cash and bank balances, trade receivables,
trade paybles, cash credits, commercial papers and other financial assets and liabilities
approximate their carrying amounts largely due to the short- term maturities of these
instruments.

The following methods and assumptions were used to estimate the fair values.

(a) The fair values of the quoated investments/units of mutual fund schemes are based
on market price/ net asset value at the reporting date.

(b) The fair values of forward foreign exchange contracts is calculated as the present
value determined using forward exchange rates and interest rate curve of the respective
currencies.

(c) The fair value of the remaining financial instruments is determined using discounted
cash flow analysis or based on the contractual terms. The discount rates used is
based on management estimates.

Proposed dividendes on equity shares are subject to approval at the annual general meeting
and are not recognized as a liability as at 31st March 2025.

(B) - CAPITAL MANAGEMENT (IND As 1) :

The Company’s objectives when managing capital are to (a) maximise shareholder value
and provide benefits to other stakeholders and (b) maintain an optimal capital structure to
reduce the cost of capital.

For the pupose of the Company’s capital management, capital includes issued capital, share
premium and all other equity reserves attributable to the equity holders.

In addition the Company has financial convenants relating to the borrowing facilities that it
has taken from the lenders like interest coverange service ratio, Debt to EBITDA, etc. which
is maintained by the Company.

36 GOVERNMENT GRANT (IND AS 20) :

Government grant received during the year - Rs. Nil (Previous Year Nil)

(A) Gratuity

The Gratuity scheme is a defined benefit plan that provides for a lump sum payment on exit either
by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of
last drawn salary and the period of service and paid as lump sum at exit. Gratuity payable is not
restricted to the maximum limit prescribed under the Payment of Gratuity Act, 1972. The liability in
respect thereof is determined by actuarial valuation at the year end based on the Projected Unit Credit
Method and is recognized as a charge on accrual basis. Trustees administer the contributions made to
the Gratuity fund.

The following table sets forth the particulars in respect of the defined benefit plans of the Group for
the year ended 31 st March, 2025 :

# The estimate of future salary increase considered in actuarial valuation takes into account
factors like inflation, seniority, promotion and other relevant factors, such as demand and supply in the
employment market.

In case of funded plan, the Group ensures that the investment positions are managed within
an asset - liability matching (ALM) framework that has been developed to achieve investment that are
in line with the obligation under the gratuity scheme. Within this framework the Group’s ALM objective
is to match asset with gratuity obligation. The Group actively monitors how the duration and the expected
yield of instruments are matching the expected cash outflows arising from the gratuity obligations. The
Group has not changed the process used to manage its risk from previous periods. The Group does not
use derivatives to manage its risk. The gratuity scheme is funded with LIC which has good track record
of managing fund.

The sensitivity results above determine their individual impact on the plan’s end of year Defined
Benefit Obligation. In reality, the plan is subject to multiple external experience items which may move
the Defined Benefit Obligation in similar opposite directions, while the plan’s sensitivity to such changes
can vary over time.

(vi) Risk Exposure

Through its defined benefit plans, the Group is exposed to some risks, the most significant of
which are detailed below:

1 Interest rate risk : The defined benefit obligation calculated uses a discount rate based on
government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

2 Salary Inflation risk : Higher than expected increases in salary will increase the defined
benefit obligation.

3 Demographic risk : This is the risk of variability of results due to unsystematic nature of
decrements that include mortality, withdrawal, disability and retirement. The effect of these
decrements on the defined benefit obligation is not straight forward and depends upon the
combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee
typically costs less per year as compared to a long service employee.

41 The Company’s significant leasing arrangements are in respect of operating lease for premises
(Residential for Directors & Employees, Guest House, Offices etc). The leasing arrangements,
which are not non-cancelable, range between 11 months and 3 years generally or longer and
are usually renewable by mutual consent between the parties. The amount of lease rent paid is
debited to Rent Account.

42 No 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 thereunder.

43 The company have not been decleared wilful defaulter by any bank or financial institution or other
lender.

44 The management of the company does not have any knowledge of transaction with any companies
struck of u/s. 248 of companies act, 2013.

45 The company has not made any investments in equity shares of the any company hence question
of number of layers priscribed under clause (87) of section 2 of the Act read with the companies
(Restriction on number of Layers) Rules, 2017 does not arise.

A. The company has neither advanced or nor 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 indrectly lend or invest the other persons or entities identifed in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries)

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

B. 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

(i) 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

(ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

50 The Company has not received the required information from suppliers regarding their status
under the Micro, Small and Medium Enterprise Development Act, 2006. Hence, disclosures if
any, relating to amounts unpaid as at the year-end together with interest paid/payable as required
under the said Act have not been made.

51 Corporate Social Responsibility

The Company is covered under section 135 of the Companies Act.

i) amount required to be spent by the Company during the year : Rs. 12.28 lakhs

ii) amount of expenditue incurred : 12.28 lakhs

iii) shortfall at the end of the year : NIL

v) Total of previous year shortfall : NIL
v Reason for shortfall : Not Applicable
v) nature of CSR activities : Charitable

vii) details of related party transactions : NIL

52 Previous Year’s figures have been regrouped/ reclassified wherever necessary to correspond
with current year’s classification / disclosure.

Signature to Schedule 1 to 52

FOR MAMTA JAIN & ASSOCIATES For and on Behalf of Board

Chartered Accountants
Firm Reg. No.: 328746E

1. Rajesh Pokerna 2. Sunil Kumar Jain

(Managing Director) (Director)

Mamta Jain Din. No. 00117365 Din. No. 00117331

(Partner)

Membership No. : 304549 3. Santosh Kumar Jha

UDIN : 25304549BMLGNA7246 (Company Secretary)

12 Waterloo Street, Kolkata-700069
Dated this 28th day of May 2025