O. Provisions, Contingent Liabilities and Contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle such obligation and a reliable estimate can be made of the amount of such obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be recovered and the amount of the receivable can be measured reliably.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

P. Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share 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 equity shares.

Q. Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions/banks, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet..

R. Borrowings

Borrowing cost incurred in connection with the funds borrowed for acquisition/erection of assets that necessarily take substantial period of time to get ready for intended use, are capitalized as

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part of such assets. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. All other borrowing costs are charged to revenue.

S. Inventories

Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and cost necessary to make the sale.

i) Cost of raw materials, components, stores, spares are valued at cost, determined on a first-in-first-out basis.

ii) Materials and supplies held for use in production of inventories are not written down if the finished products in which they will be used are expected to be sold at or above cost. Slow and non-moving material, obsolesces, defective inventories are duly provided for.

iii) By-products and scrap are valued at net realizable value and it is reduced from cost of the main product.

iv) Excess/ shortages, if any, arising on physical verification are absorbed in the respective consumption accounts.

v) The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products.

T. Cash flow statement:

Cash flows are reported using the indirect method, whereby the profit for the period is adjusted for the effects of transactions 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.

31. Capital Management

Equity share capital and other equity are considered for the purpose of Company's capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The management and the Board of Directors monitor the return on capital as well as the level of dividend to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure

Refer note 45 for information on ratios.

34. As per Indian Accounting Standard 24 "Related Parties Disclosure" the disclosure of related parties as defined in the standard are given hereunder:

A. List of Related parties:

Key Management Personnel

a) Sri. G. Raghu Rama Raju, Managing Director

b) Sri. G.G.R. Prabhakara Raju, Director & CFO

c) Smt. G Parvathi, Director

d) Sri. P. Lenin Babu Company Secretary Companies controlled by Key Management Personnel:

a) M/s. Diamond Drop Property Holdings (India) Private Limited (Smt. G. Parvathi, Director interested as Director in the Company)

b) M/s. Arqube Industries (India) Limited

(Sri.G. Raghu Rama Raju, Managing Director &

Smt. G. Parvathi, Director interested as Directors in the Company)

44. Impairment of Assets

According to an internal technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of Indian Accounting Standard 36 'Impairment of Assets.

# Earnings for Debt Service = Net Profit before taxes Non-cash operating expenses like depreciation and other amortizations Interest other adjustments like loss on sale of Fixed assets etc.

Note:

1) Due to improvement in operating cycle and repayment of borrowed of funds during the year the current ratio, Debt to equity ratio and Trade receivables Turnover ratio has been improved when compared to previous year.

2) Increase in margins lead to profitability thereby Return on equity and Return on Capital employed ratios has been improved.

3) Since there were no trade payables and no investments the trade payables turnover ratio and return on investment ration are not applicable.

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46. Additional regulatory information required by Schedule III

i) No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

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) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

47. Relationship With Struck Off Companies

The Company does not have any relationship or any transaction with struck off companies.

48. Utilization of borrowed funds and share premium:

The Company has 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

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

49. The exchange value for restatement of export receivables and EEFC account is taken at Rs. 83.38 per dollar.

50. The previous period's figures have been regrouped/reclassified wherever necessary to conform to the current period presentation.

51. The financial statements are approved for issue by the Audit Committee and Board of Directors at their meetings held on May 20, 2024.

As per our report of even date

For M/s.K.S.RAO & Co., For RADIX INDUSTRIES (INDIA) LIMITED

Chartered Accountants

FRN: 003109S Sd/-

GOKARAJU RAGHU RAMA RAJU

Sd/- Chairman & Managing Director

K.VAMSI KRISHNA DIN: 00453895

Partner

ICAI M.No.238809

UDIN: 24238809BKGZTF3628 Sd/-

GOKARAJU PARVATHI

Place: Tanuku Director

Date : 20-05-2024 DIN: 00453965

Sd/- Sd/-

G. GANAPATHI RAMA PRABHAKARA RAJU P. LENIN BAB.U

Director & CFO Company Secretary

DIN: 00454614 M.No - A26816