i) Provisions, Contingent liabilities, Contingent assets an(
Commitments:

General

Provisions are recognised when the Company has a presen
obligation (legal or constructive) as a result of a past event, i
is probable that the outflow of resources embodying economi<
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Contingent liability is disclosed in the case of:

• 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 event
not wholly within the control of the Company.

• A present obligation arising from past event, when it is no
probable that as outflow of resources will be required t<
settle the obligation

• A present obligation arises from the past event, when no
reliable estimate is possible

• A present obligation arises from the past event, unless th
probability of outflow is remote.

Commitments include the amount of purchase order (net o
advances) issued to parties for completion of assets.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date.

Contingent assets

Contingent assets are not recognised. However, when th
realisation of income is virtually certain, then the related asset i
no longer a contingent asset, but it is recognised as an asset.

j) Income Taxes

Income tax expense comprises of current and deferred tax
Current income tax is measured at the amount expected to b
paid to the tax authorities in accordance with the Income-ta
Act, 1961 enacted in India. The tax rates and tax laws used t<
compute the amount are those that are enacted or substantivel
enacted, at the reporting date.

Current tax assets and current tax liabilities are off set, and
presented as net.

Deferred Tax

Deferred tax is provided using the balance sheet approach or
temporary differences at the reporting date between the ta
bases of assets and liabilities and their carrying amounts fo
financial reporting purpose at reporting date. Deferred income
tax assets and liabilities are measured using tax rates and ta

limited 60

laws that have been enacted or substantively enacted by the
balance sheet date and are expected to apply to taxable income
in the years in which those temporary differences are expected
to be recovered or settled. The effect of changes in tax rates
on deferred income tax assets and liabilities is recognized as
income or expense in the period that includes the enactment or
the substantive enactment date. A deferred income tax asset is
recognized to the extent that it is probable that future taxable
profit will be available against which the deductible temporary
differences and tax losses can be utilized.

The carrying amount of deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred tax assets to be utilised. Unrecognised
deferred tax assets are reassessed at each reporting date and are
recognised to the extent that it has become probable that future
taxable profits will allow deferred tax assets to be recovered.

The Company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis, or
to realize the asset and settle the liability simultaneously.

k) Non-current assets held for sale

Non-current assets and disposal groups are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
Non-current assets and disposal groups classified as held for sale
are measured at the lower of their carrying amount and fair value
less costs to sell. This condition is regarded as met only when the
sale is highly probable and the asset or disposal group is available
for immediate sale in its present condition. Management must
be committed to the sale, which should be expected to qualify
for recognition as a completed sale within one year from the
date of classification.

l) Revenue Recognition

Effective April 1, 2018, the Company has applied Ind AS 115,
Revenue from Contracts with Customers, which establishes a
comprehensive framework for determining whether, how much
and when revenue is to be recognised. Ind AS 115 replaces Ind AS
18 Revenue and Ind AS 11 Construction Contracts. The Company
has adopted Ind AS 115 using the cumulative effect method. The
effect of initially applying this standard is recognised at the date
of initial application (i.e. April 1, 2018). The standard is applied
retrospectively only to contracts that are not completed as at the
date of initial application and the comparative information in the
statement of profit and loss is not restated - i.e. the comparative
information continues to be reported under Ind AS 18 and Ind
AS 11. Refer note 2(K) - Significant accounting policies - Revenue
recognition in the Annual report of the Company for the year
ended March 31, 2018, for the revenue recognition policy as
per Ind AS 18 and Ind AS 11. The impact of the adoption of
the standard on the financial statements of the Company was
insignificant.

i) Revenue in respect of sale of scrap is recognized when the
significant risks and rewards of ownership of the goods have
passed to the buyer.

ii) Indirect costs are treated as "period costs" and are charged
to the Statement of profit & loss in the year in which they
are incurred.

iii) Interest income on fixed deposit with banks is recognized
on time proportion basis taking into account the amount
outstanding and the rates applicable.

iv) Dividend income is recognized when right to receive the
payment is established.

m) Borrowing costs

Borrowing costs are interest and other costs incurred in
connection with borrowings of funds. Borrowing costs directly
attributable to the acquisition, construction or production of a
qualifying asset are capitalized during the period of time that
is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or

sale. All other borrowing costs not eligible for capitalization are
expensed in the period in which they are incurred.

n) Employee Benefits

Expenses and liabilities in respect of employee benefits are
recorded in accordance with Indian Accounting Standard (Ind
AS)-19 - 'Employee Benefits'.

o) Financial Instruments

i. Initial Recognition

The Company recognizes financial assets and financial
liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and
liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured
at transaction price. 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 added to the fair value on
initial recognition.

Subsequent Measurement

Non-derivative financial instruments

> Financial assets carried at amortised cost-debt

A financial asset is subsequently 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.

> Financial assets at fair value through other comprehensive
income-debt

A financial asset is subsequently measured at fair value
through other comprehensive income 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.

> Financial assets at fair value through profit or loss-debt

A financial asset which is not classified in any of the
above categories are subsequently fair valued through
statement of profit or loss.

> Financial assets at fair value through other comprehensive
income -equity (FVOCI)

The Company has made an irrevocable election for its
investments which are classified as equity instruments
to present the subsequent changes in fair value in other
comprehensive income based on its business model.
Further, in cases where the Company has made an
irrevocable election based on its business model, for its
investments which are classified as equity instruments,
the subsequent changes in fair value are recognized in
other comprehensive income.

> Financial assets at fair value through profit or loss-equity

A financial asset i.e. equity which is not classified as
FVOCI, are subsequently fair valued through profit or
loss.

> Financial guarantee contracts

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the

higher of the amount of loss allowance determined
as per impairment requirements of Ind-AS 109 and the
amount recognised less cumulative amortisation.

> Impairment of Financial assets

The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial assets
which are not fair valued through statement of profit
and loss. For impairment purposes significant financial
assets are tested on an individual basis, other financial
assets are assessed collectively in groups that share
similar credit risk characteristics.

The Company recognizes lifetime expected losses for
all contract assets and / or all trade receivables that
do not constitute a financing transaction. For all other
financial assets, expected credit losses are measured
at an amount equal to the 12 month expected credit
losses or at an amount equal to the life time expected
credit losses if the credit risk on the financial asset has
increased significantly since initial recognition. The
amount of expected credit losses (or reversal) that is
required to adjust the loss allowance at the reporting
date to the amount that is required to be recognized is
recognized as an impairment gain or loss in statement
of profit and loss.

> Investment in subsidiaries/associates/joint ventures

Investment in subsidiaries/associates/joint venture is
carried at cost in the financial statements.

> Cash and cash Equivalents

Cash and cash equivalents for the purpose of cash flow
statement comprise cash at bank and in hand and short¬
term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value, net of outstanding bank overdrafts as
they are considered an integral part of the Company's
cash management.

> Financial liabilities

Financial liabilities are subsequently 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.

ii. Derecognition

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.

iii. Reclassification of financial assets

The Company determines classification of financial assets
and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which are
equity instruments and financial liabilities. For financial
assets which are debt instruments, a reclassification is made
only if there is a change in the business model for managing
those assets. Changes to the business model are expected
to be infrequent. The Company's senior management
determines change in the business model as a result of
external or internal changes which are significant to the
Company's operations. Such changes are evident to external
parties. A change in the business model occurs when the
Company either begins or ceases to perform an activity that
is significant to its operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively
from the reclassification date which is the first day of the
immediately next reporting period following the change
in business model. The Company does not restate any
previously recognised gains, losses (including impairment
gains or losses) or interest.

iv. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise
the assets and settle the liabilities simultaneously.

v. Current and Non-current Classification

The Management classifies assets and liabilities into current
and non-current categories on its operating cycle.

p) Critical accounting estimates, assumptions and judgements

In the process of applying the Company's accounting policies,
management has made the following estimates, assumptions
and judgements, which have significant effect on the amounts
recognised in the financial statement:

i) Property, plant and equipment

On transition to IND AS, the Company has adopted optional

umitea

exemption under IND AS 101 for considering carrying cost
as deemed cost on the date of transition for property, plant
and equipment.

ii) Income taxes

Management judgment is required for the calculation of
provision for income taxes and deferred tax assets and
liabilities. The Company reviews at each balance sheet date
the carrying amount of deferred tax assets. The factors used
in estimates may differ from actual outcome which could
lead to significant adjustment to the amounts reported in
the standalone financial statements.

iii) Contingencies

Management judgement is required for estimating
the possible outflow of resources, if any, in respect of
Contingencies/claim/litigations against the Company as it is
not possible to predict the outcome of pending matters with
accuracy.

Notes:-

1. Aggregate Market Value is exclusive of these investments in view of non-availability of Current Market rates.

2. In view of Rehabilitation Scheme of Modi Spinning & Weaving Mills & Co. Ltd. (MSWM), the Company was alloted free of cost 15,126 equity shares

of R 10 each of Haryana Distliery Limited (HDL) and Rajputana Fertilizers Limited (RFL) on account of demerger of units of MSWM to HdL & RFL.

Consequently the orignal cost of R 1 has been allocated on notional basis among MSWM, HDL, RFL shares of HDL are yet to be received by the

Company.

3. The cost of the above shares have been taken as Nil since these shares have been received by the Company in pursuance of slump sale agreement
dated October 28, 2006 executed for transfer of Indofil Chemicals division to Indofil Industries Limited.

4. During the FY 2024-25, 100 shares of JK Cement sold @ of R 4,76,000.

1) Cash Credit/WCDL from banks and loan from Ashoka Mercantile Limited

and Modi Intercontinental Private Limited are secured by charge by
way of pari passu charge on block assets of the Company.

2) (a) Cash Credit/Working Capital Demand Loans (including interest

Accrued and Due) taken from Punjab National Bank was out of order
and classified by Bank as Non-Performing Assets since calender year
2007. Also Company has defaulted into the loan repayment amount
of R 65 Lakhs excluding interest. (Refer note 40)

(b) The Punjab National Bank issued notice to the Company under section
13(2) of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (SARFAESI) for the recovery
of its dues and has also issued notice under section 13(4) of the
SARFAESI to the Company for taking possession of the secured assets
of the Company.

(c ) Borrowings from related parties includes loan from Ashoka Merchantile
Limited, Status Mark Finvest Limited and Modi Intercontinental Private
Limited.

The Company has taken waiver for interest till March 31, 2026 on
the loan amount from Ashoka Merchantile Limited and Status Mark
Finvest Limited. However, the terms of repayment are yet to be
entered into with the said parties.

(b) (ii) There is a balance sales tax liability of R 183.90 Lakhs (plus interest/
penalty, if any) imposed by Commercial Tax Authorities, Modinagar on
Punjab National Bank on account of tax payable on auction held by
the bank for old plant & machinery of the Company. The Company has
undertaken to reimburse the same to Punjab National Bank, in case
the bank is required to pay the same to the sales tax authorities. In the
meantime, the Company shall continue to keep mortgage/charge over
the administrative block (with land) of the Company, as security, in
favour of the bank till final disposal of the above tax case. No provision
of interest has been made on the sales tax liability of R 183.90 Lakhs.

(c) Suppliers Interest on outstanding dues (Gujarat State Fertilizers and
Chemical Company Limited-GSFC) amounting to R 1000.54 Lakhs upto
March 31, 2008, has not been provided in the Books of Account as the
same are being disputed by the Company. The amount of interest for
the 144 month period ended March 31, 2025 is not ascertainable.

(d) Singhal Transport filed a suite for recovery of R 95.08 Lakhs
(comprising of the principal amount of Rs. 70 Lakhs and interest due
till 19.05.2009) along with claim for pendente- lite and future interest
and costs against Modipon Limited. The total sum due as on March
31, 2019 amounts to R 178.17 Lakhs (R 171 Lakhs as on March 31,
2018) including interest for which the Company has not made any
provision.

(e) The Punjab National Bank (PNB) had approved one time settlement of
its outstanding dues vide its approval letters dated April 02, 2014 and
April 12, 2014 respectively. In terms of the settlement, OTS amount
of R 1710 Lakhs (Net of upfront payment of R 190 Lakhs) was to be
paid by the Company in four quarterly installments with interest
during financial year 2014-15. However, the Company was able to
manage the payment of R 630 Lakhs up to March 31, 2015 and at the
request of the Company, PNB had condoned the delay and revived
the OTS vide its letter dated July 02, 2015 requiring the Company
to make payment of residual OTS amount of R 1270 Lakhs by March
31, 2016 and total interest on OTS payment @ 10.25% (simple) by
June 30, 2016. The Company has paid R 1270 lakhs upto December
31, 2018 along with interest of R 2,59,62,100/-. The Company has
already made provision of interest on account of delayed payment
of OTS of R 94,43,358/- in their books upto September 30, 2018 and
booked balance amount of interest in the quarter ending December
31, 2018. (Refer Note 40(b) and (c))

Note No. 34: Balance confirmation certificates were not obtained by the
Company from creditors, house/shop security depositors, in-operative
current accounts with banks and loan account with Punjab National Bank
(PNB) and consequently adjustments required, if any, has not been carried
out in the financial results.

Note No. 35: The Accounts of the Company have not been prepared on
a going concern basis in view of closure of manufacturing operations of
the Company during the year ended September 30, 2007 and sale of all
moveable assets including Plant & machinery during the year 2009-10.
However, once the liabilities of the Company towards secured creditors are
cleared, the Company will start business operations. The Manufacturing
Operations of the Company have been closed with effect from May 19,
2007. In terms of the provisions of the Uttar Pradesh Industrial Disputes Act,
1947, the closure has become operative from the date of expiration of the
period of 90 days from the date of application i.e. on September 8, 2007.

Note No. 36: The Company has elected to exercise the options permitted
under section 115BAA of the Income Tax Act, 1961 as introduced by the
Taxation Laws (Amendment) Ordinance 2019. No Provision for Income Tax
under the Income Tax Act, 1961 is considered necessary for current financial
year on account of unabsorbed depreciation, unabsorbed business losses
and capital loss. The recognition of Deferred Tax Assets (Net) has been
postponed on consideration of prudence.

Note No. 37: Under the Micro, Small and Medium Enterprises Development
Act, 2006, which came into force on October 2, 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises. The
Company has not collected the relevant information. Since the information
is not readily available, no disclosures/provision for interest has been made
in the Books of Account.

Note No. 38: Exceptional Items in Statement of Profit and Loss includes :

“During the year Company has taken waiver for payment of interest on the
loan amount from Ashoka Merchantile Limited and on the loan amount from
Status Mark Finvest Limited which is shown as exceptional item.

Note No. 39: (a) Since the Net Book value of Land, Residential buildings at
Modinagar, Office premises outside Modinagar and factory/ administrative
building in Modinagar amounting to R 230.88 Lakhs, is lower than the
Net Realisable Value as per Valuer's Report / Management's estimate, no
provision for diminution is required to be made as at March 31, 2025.

(b) The Company has sold 65,743 sq. yds. of its vacant land at Modinagar
for R 1021.15 Lakhs (original cost R 1.95 lakhs) which resulted in Profit
on Sale of Land amounting to R 1019.20 Lakhs during the year ended
March 31, 2009. Approval of banks to whom immovable properties of the
Company, including the above Land, are charged is pending.

Note No. 40: (a) Cash credit/Working Capital Demand Loans (including
interest accrued and due) taken from Punjab National Bank was out of
order and has been classified by Bank as Non-Performing Assets. The Bank
issued notice to the Company under section 13(2) of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (SARFAESI) for the recovery of its dues and has also issued notice
under section 13(4) of the SARFAESI to the Company for taking possession
of the secured assets of the Company.

(b) The Punjab National Bank (PNB) had approved one time settlement of
its outstanding dues vide its approval letters dated April 02, 2014 and
April 12, 2014 respectively. In terms of the settlement, OTS amount of
R 1710 Lakhs (Net of upfront payment of R 190 lakhs) was to be paid
by the Company in four quarterly installments with interest during
financial year 2014-15. However, the Company was able to manage
the payment of R 630 Lakhs up to March 31, 2015 and at the request
of the Company, PNB condoned the delay and revived the OTS vide its
letter dated July 02, 2015 requiring the Company to make payment
of residual OTS amount of R 1270 Lakhs by March 31, 2016 and total
interest on OTS payment @ 10.25% (simple) by June 30, 2016.The
Company has paid R 1270 Lakhs upto December 31, 2018 along with
interest of R 2,59,62,100/-. The Company has already made provision
of interest on account of delayed payment of OTS of R 94,43,358/- in
their books upto September 30, 2018 and booked balance amount of
interest in the quarter ending December 31, 2018.

The Punjab National Bank has initiated the proceeding against the
Company under section 7 of the Insolvency and Bankruptcy Code, 2016
before the NCLT, Allahabad Bench and other Proceeding before DRT-II
and recovery Officer, DRT- II, New Delhi due to non-fulfillment of OTS
Terms/conditions vide OTS letter dated July 02, 2015 issued by PNB.

The Debts Recovery Tribunal-II, Delhi passed its order dated July 30,
2018, in favor of the Company and directed PNB to accept payment of
R 65 Lakhs towards outstanding principal of OTS plus R 2,59,62,100/- as
interest @10.25% as per revived OTS vide its letter dated July 02, 2015
on delayed payment upto March 15, 2018. which was later on accepted
and paid by the Company in terms of DRAT order.

“During the pendency of the appeal, PNB has encashed the said
amount of R 65 Lakhs towards principal OTS and R 2,59,62,100/-
towards interest in term of the order of Debts Recovery Appellate
Tribunal (DRAT), New Delhi. Further, the DRAT has reserved the order
on December 27, 2018 in the said matter and not pronounced till the
date of our reporting, as a result the Company has not considered any
liability in its books in addition to the dues already settled as per DRT
order dated July 30, 2018.

During the pendency of order before DRAT, the PNB has revived OTS
vide letter dated March 25, 2019 against payment of R 459.62 Lakhs
on the following terms & conditions:

1) The proceeds of FDRs amounting to R 65 Lakhs and R 259.62
Lakhs kept with us will be appropriated simultaneously on
conveying approval of revival of OTS.

2) R 135 lakhs will be deposited within one week of receipt of this
sanction letter.

3) The party to undertake to pay commercial tax liability as
demanded by the Commercial Tax Authority.

4) No Dues Certificate will be issued, Bank's charge on the security/
tittle deeds will be released only after receipt of OTS amount in
full and on clearance of commercial tax liability as stated above.
(Satisfactory proof/letter from the competent authority in this
regard to be submitted).

The Company has already deposited balance of OTS amount of R 65
Lakhs plus delayed period interest of R 259.62 Lakhs with the bank in
terms of DRT & DRAt orders and further R 135 Lakhs over and above
original OTS amount has been deposited by the Company in terms
of revived OTS vide letter dated March 25, 2019 within one week of
receipt of letter.

(c) In respect of commercial tax liability, the Company has filed an appeal
against the order of Commissioner of Commercial Tax before Hon'ble
High Court of Allahabad through Punjab National Bank and the Court
has directed vide order dated November 26, 2018 that the operation
and effect of the impugned order dated August 08, 2018 passed
by the Commercial Tax Tribunal, Ghaziabad in Appeal no. 1353 of
2013, shall remain stayed subject to the applicant depositing 50%
of the commercial tax liability imposed on it and furnish security
for the balance amount other than cash or bank guarantee to the
satisfaction of the tribunal within a period of three weeks from the
date of direction.

The Company deposited Commercial Tax of R 54.94 Lakhs out of
Commercial Tax liability of R 183.90 Lakhs along with interest of
R 3.07 Lakhs for the period starting from December 18, 2018 to
May 02, 2019 as on May 03, 2019 in compliance with order dated
November 26, 2018 of the Hon'ble High Court of Allahabad and
communicated the same to PNB vide letter dared May 03, 2019.

(d) Further, PNB vide letter dated May 04, 2019 requested the Company
to submit No Dues Certificate from tax authorities after paying the
commercial tax liability to bank for compliance of OTS Sanction within
3 days else OTS will be declared as failed. PNB vide letter dated July 04,
2019 informed the Company and declared OTS revival as failed and
PNB is resuming all recoveries as usual. Further, DRAT allowed appeal
of PNB on August 20, 2019. The Company filed Writ Petition in the
Delhi High Court against order of the DRAT. The Hon'ble Delhi High
Court vide its order dated October 24, 2019, stayed the DRAT and
NCLT proceedings filed by the PNB till the next date of hearing which
is listed on February 19, 2020. On February 19, 2020 interim order
dated October 24, 2019 was made absolute during the pendency
of the writ petition. The next date of hearing is August 20, 2025.
Further, NCLT matter has been dismissed on the last date of hearing
(September 22, 2023) due to non-appearance on behalf of financial
creditor (PNB), the matter has been dismissed for non -prosecution.

The outstanding liability in the books of the Company is higher
than the OTS amount by R 183.90 Lakhs and in the absence of any
documentary evidences from the management as well as PNB, we
are unable to quantify the amount of interest on the amount of R
183.90 Lakhs; the amount of R 183.90 Lakhs is over and above the
loan amount on account of the sales tax liability on PNB on account
of the auction held by the bank for old plant and machinery of the
Company.

The above matter is subjudice before Hon'ble High Court of Allahabad
for further hearing.

(e) (i) Loan liability of R 749.20 Lakhs to Karnatka Bank has been discharged
by the Company under OTS (one time settlement), in arrangement
with Ashoka Mercantile Limited paying the settled sum of R 410 Lakhs
to the said bank. The settlement resulted into remission of liability by
R 339.20 Lakhs. As per the terms approved by the Board of Directors
of the Company on August 16, 2012 with Ashoka Mercantile Limited,
they shall be entitled to so much of the waived-off amount under OTS
as agreeable, but to the extent such sum does not exceed the sum as
worked out by applying the ratio of waiver agreed by the company for
settlement under OTS with Punjab National Bank (PNB). Pending the
successful implementation of OTS with PNB as stated in note 40(b)
above, the amount of R 339.20 Lakhs being the subject matter of OTS
arrangement with Ashoka Mercantile Limited and liable to be dealt
with later has been kept aside and shown in Balance Sheet under the
head “Non Current borrowings (Unsecured)".

Ashoka Mercantile Limited has waived interest from the FY 2021-22
till date on loan repaid by Ashoka Mercantile Limited under the OTS
deal.

(ii) Loan liability of R 832.04 Lakhs to Bank of Baroda has been discharged
by the Company under OTS (one time settlement), in arrangement
with Ashoka Mercantile Limited who has paid the settled sum of
R 600 Lakhs to the said bank. The settlement resulted into remission
of liability by R 232.04 Lakhs. As per the terms approved by the Board
of Directors of the Company on February 11, 2013 with Ashoka
Mercantile Limited., they shall be entitled to so much of the waived-
off amount under OTS as agreeable, but to the extent such sum does
not exceed the sum as worked out by applying the ratio of waiver
agreed by the Company for settlement under OTS with Punjab
National Bank (PNB). Pending the successful implementation of OTS
with PNB as stated in note 40(b) above, the amount of R 232.04 Lakhs
being the subject matter of OTS arrangement with Ashoka Mercantile
Limited and liable to be dealt with later has been kept aside and
shown in Balance Sheet under the head “Non current borrowings
(Unsecured)".

Ashoka Mercantile Limited has waived interest from the FY 2021-22
till date on loan repaid by Ashoka Mercantile Limited under the OTS
deal.

(iii) Pending finalisation of terms of loan agreements with Ashoka
Mercantile Limited (AML) which has outstanding amount of secured
and unsecured loans of R 882.29 Lakhs and R 1125.57 Lakhs
respectively for payment of OTS dues of banks. No provision of
Interest on loan have been provided till the March 31, 2014. However,
from April 01, 2014, interest has been provided on unsecured loan
on reducing balance method @ 10.25% per annum equivalent to the
rate of interest agreed with PNB in OTS.

(f) (i) The Abu Dhabi Commercial Bank Limited has settled its dues of
R 351.05 Lakhs under One Time Settlement (OTS) as conveyed vide
its letter dated September 23, 2008. Since the Company did not have
funds to pay the settled dues, it had approached Ashoka Mercantile
Limited (AML) for making payment of settled dues to the Banks.
Further, it has also been agreed with AML that it shall not be entitled
to settlement of its claim better than what is agreed by the Company
with PNB.

(ii) (ii) Since successful implementation of settlement of dues of PNB is
still pending, the amount paid towards OTS by AML of R 157.13 Lakhs
(net of R 40 lakhs paid to AML upto March 31, 2011) is shown as
secured loan in Note 18 and the balance amount of R 153.92 Lakhs (R
351.05 Lakhs - R 197.13 Lakhs) outstanding in the books of accounts
has also been shown as unsecured loan in Note 14, to be written back
or credited to AML at the time of OTS with PNB as stated in (i) above.

Ashoka Mercantile Limited has waived interest from the FY 2021-22
till date on loan repaid by Ashoka Mercantile Limited under the OTS
deal.

Level 1 — Quoted (unadjusted) market prices in active markets for identical
assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly observable

Level 3 — Level 3 - Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or
financial liabilities using the best and most relevant data available. The fair
values of the financial assets and liabilities are included at the amount that
would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.The
following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and
other current financial assets and liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables / borrowings are
evaluated by the Company based on parameters such as interest rates,
specific country risk factors, credit risk and other risk characteristics. Fair
value of variable interest rate borrowings approximates their carrying
values. For fixed interest rate borrowing fair value is determined by
using the discounted cash flow (DCF) method using discount rate
that reflects the issuer's borrowings rate. Risk of non-performance
for the company is considered to be insignificant in valuation.

3) The fair values of derivatives are estimated by using pricing models,
where the inputs to those models are based on readily observable
market parameters basis contractual terms, period to maturity, and
market parameters such as interest rates, foreign exchange rates, and
volatility. These models do not contain a high level of subjectivity as
the valuation techniques used do not require significant judgement,
and inputs thereto are readily observable from actively quoted market
prices. Management has evaluated the credit and non-performance
risks associated with its derivative counterparties and believe
them to be insignificant and not warranting a credit adjustment.

4) IND AS 101 allow Company to fair value property, plant and machinery
on transition to IND AS, the Company has fair valued property, plant and
equipment, and the fair valuation is based on replacement cost approach.
*5) Fair value of investments in equity shares of entities other than
investment in subsidiary, associates & joint ventures is taken at cost as
sufficient recent information is not available to measure the fair value and
cost represents the best estimate of fair value within that range.

Note No. 47: FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The purpose of financial risk management is to ensure that the Company
has adequate and effective utilized financing as regards the nature and
scope of the business. The objective is to minimize the impact of such risks
on the performance of the Company. The Company's senior management
oversees the management of these risks.

The Company's principal financial liabilities comprise bank loans, trade
payables and other liabilities. The main purpose of these financial
instruments is to raise finance for operations. It has various financial assets
such as loans, advances, cash which arise directly from its operation.

The main risk arising from the Company's financial instruments are market
risk, credit risk, liquidity risk, and interest rate risk.

Market risk:

Market risk is the risk that the fair values of financial instruments will
fluctuate because of change in market price. Market risk comprises three
types of risk: currency risk, interest rate risk and other price risk. The
risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices (other than those arising
from interest rate risk or currency risk), whether those changes are caused
by factors specific to the individual financial instrument or its issuer, or
factors affecting all similar financial instruments traded in the market.
Financial Instruments affected by market risk include loans and borrowings,
investments and deposits. There is no currency risk since all operations
are in INR. The Company managed interest rate risk by converting existing
loans and borrowings with cheaper means of finance.

Credit risk:

It is the risk that one party to a financial instrument or customer contract
will cause a financial loss due to non fulfillment of its obligations under a
financial instrument or customer contract for the other party, leading to a
finance loss.

Liquidity risk:

The risk that an entity will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or
another financial asset.

Note No. 48: Disclosure of trade receivable

The Company does not have any trade receivables outstanding as at March
31, 2025 and March 31, 2024.

Note No. 49: Capital Management

For the purposes of the Company's capital management, capital includes
issued capital and all other equity reserves. The primary objective of the
Company's Capital Management is to maximize the shareholder value.
The company manages its capital structure and makes adjustment in the
light of changes in economic environment and the requirement of financial
covenants.

The company monitors capital using gearing ratio, which is total debt
divided by total capital plus debt.

Note No. 52: Impairment review

Assets are tested for impairment whenever there are any internal or
external indicators of impairment.

Impairment test is performed at the level of each Cash Generating Unit
('CGU') or groups of CGUs within the Company at which the goodwill or
other assets are monitored for internal management purposes, within an
operating segment.

The impairment assessment is based on higher of value in use and value
from sale calculations.

During the year, the testing did not result in any impairment in the carrying
amount of goodwill and other assets.

The measurement of the cash generating units' value in use is determined
based on financial plans that have been used by management for internal
purposes. The planning horizon reflects the assumptions for short to- mid
term market conditions.

Key assumptions used in value-in-use calculations:

- Operating margins (Earnings before interest and taxes)

- Discount RATE

- Growth Rates

- Capital expenditures

Operating margins: Operating margins have been estimated based on
past experience after considering incremental revenue arising out of
adoption of valued added and data services from the existing and new
customers, though these benefits are partially offset by decline in tariffs
in a hyper competitive scenario. Margins will be positively impacted from
the efficiencies and initiatives driven by the Company; at the same time,
factors like higher churn, increased cost of operations may impact the
margins negatively.

Discount rate: Discount rate reflects the current market assessment of the
risks specific to a CGU or group of CGUs. The discount rate is estimated based
on the weighted average cost of capital for respective CGU or group of CGUs.
Growth rates: The growth rates used are in line with the long term average
growth rates of the respective industry and country in which the Company
operates and are consistent with the forecasts included in the industry
reports.

Capital expenditures: The cash flow forecasts of capital expenditure are
based on past experience coupled with additional capital expenditure
required.

Note No. 53: Post Reporting Events:

No adjusting or significant non-adjusting events have occurred between
the reporting date and the date of authorization.

For B.M. Chatrath & Co. LLP For & on behalf of Board of Directors

Chartered Accountants
FRN: E300025

CA Sunil Kumar Jha (Manish Modi) (Aditee Modi)

Partner Chairman & Managing Director Director

Membership No. : 543805 DIN 00030036 DIN 00030120

Place : New Delhi (Vineet Kumar Thareja)

Dated : May 30, 2025 CFO & Company Secretary

UDIN: 25543805BMJRGE6341