1.14. Provisions and Contingent Liabilities

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

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.

1.15. Employee Benefits

Employee benefits include gratuity, compensated absences, contribution to provident fund and employees’ state insurance.

ShortTerm Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits and recognized in the period in which the employee renders the related service. These are recognised at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Post-Employment Benefits:

(i) Defined Contribution plans:

Retirement benefits in the form of provident fund are defined contribution schemes. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to these funds as an expense, when an employee renders the related service.

(ii) Defined Benefit Gratuity plans:

Recognition and measurement of Defined Benefit plans:

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any. and net interest on the defined benefit liability / (asset) are recognized in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

The Company presents the above liability/(asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary; however, the entire liability towards gratuity is considered as current as the Company will contribute this amount to the LIC within the next twelve months.

1.16. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments net of bank overdrafts which are repayable on demand as this form an integral part of the Company’s cash management.

1.17. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

1.18. Recent Pronouncements

The Company applied for the first time these amendments of Ind AS 8, Ind AS 1 and Ind AS 12 and there is no material impact on financials.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024. MCA has not notified any new standards or amendments to the existing standards applicable to the Company

1.19. Key accounting estimates and judgments

The preparation of the Company's financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:

Income taxes

The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax. determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions (Refer Note 36).

Property. Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

Defined Benefit Obligation

The costs of providing gratuity and other post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits' over the period during which benefit is derived from the employees' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in Note 42, ‘Employee benefits’.

Notes:

16.1 Term Loan from banks balance outstanding amounting to Rs 340.60 Lakhs (31st March 2023 Rs 502.18 Lakhs) is secured by pari passu charge over equitable mortgage of industrial property situated at plot No.5 in Ecotech-1 extension, .Greater Noida, Repayable in 72 Monthly installments commencing from November,2019. Last installment due in October, 2025. Rate of interest 8.75 % p.a. as at year end. (31st March 2023 8.75% ).

16.2 Term Loan from banks balance outstanding amounting to Rs 43.15 Lakhs (31st March 2023 Rs 71.15 Lakhs) is secured by pari passu charge over equitable mortgage of industrial property situated at plot No.5 in Ecotech-1 extension, .Greater Noida, Repayable in 55 Monthly installments commencing from January,2021. Last installment due in July, 2025. Rate of interest 8.75 % p.a. as at year end. (31st March 2023 8.75% ).

16.3 Working Capital Term Loan from banks balance outstanding amounting to Rs 184.20 Lakhs (31st March 2023 Rs 215.00 Lakhs) is secured by extension of pari passu charge over equitable mortgage on industrial property situated at khatraj andPlot No.4 & plot No.5 in Ecotech-1 extension, .Greater Noida.Repayable in 36 Monthly installments commencing from October,2021. Last installment due in September, 2024. Rate of interest 7.50 % p.a. as at year end. (31st March 2023 7.50%).

16.4 Working Capital Term Loan from banks balance outstanding amounting to Rs 60.26 Lakhs (31st March 2023 Rs 210.15 Lakhs) is secured by extension of pari passu charge over equitable mortgage on industrial property situated at khatraj andPlot No.4 & plot No.5 in Ecotech-1 extension, .Greater Noida. Repayable in 36 Monthly installments commencing from August,2021. Last installment due in July, 2024. Rate of interest 7.50 % p.a. as at year end. (31st March 2023 7.50%).

16.5 Term Loans mentioned above and cash credit limits (Refer Note 22) are further collaterally secured by pari passu charge on factory Land & Building situated at Khatraj and Industrial property situated at Plot No.4, Plot No.-5 of Greater Noida and pari passu charge on extension of hypothecation of entire current assets of the company(both present & future), It is further secured by personal guarantees of promoter directors .

16.6 Vehicle Loan, balance outstanding amounting to Rs. Nil (31st March 2023 Rs 5.05 Lakhs) is secured by Hire Purchase agreement for vehicles and repayable in 60 monthly installments.Last installment due in August,2023

16.7 Vehicle Loan, balance outstanding amounting to Rs.4.78 Lakhs (31st March 2023 Rs 9.05 Lakhs) is secured by Hire Purchase agreement for vehicles and repayable in 60 monthly installments.Last installment due in February,2025.

16.8 Vehicle Loan, balance outstanding amounting to Rs. 1.28 Lakhs (31st March 2023 Rs 6.13 Lakhs) is secured by Hire Purchase agreement for vehicles and repayable in 60 monthly installments.Last installment due in July,2024.

16.9 Vehicle Loan, balance outstanding amounting to Rs. 4.70 Lakhs (31st March 2023 Rs 9.01 Lakhs) is secured by Hire Purchase agreement for vehicles and repayable in 60 monthly installments.Last installment due in March,2025.

16.10 Vehicle Loan, balance outstanding amounting to Rs. 12.93 Lakhs (31st March 2023 Rs 15.54) is secured by Hire Purchase agreement for vehicles and repayable in 60 monthly installments.Last installment due in February,2028.

16.11 Installments falling due in respect of all the above Loans up to 31/03/2025 have been grouped under "Current maturities of long-term debt" in Note 22 "Current Borrowings".

16.12 The Company has not defaulted in the repayment of loans & interest in current and previous year.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significant^ different from the values that would eventually be received or settled.

Types of inputs for determining fair value are as under:

level 1: This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, arid mutual fund invcstments.The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities included in level 3.

i) Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods

ii) Transfer out of level 3

There were no movement in level 3 in either directions during the financial year ending on 31 March 2024 and 31 March 2023.

B. Financial risk management

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company"s financial assets comprise mainly of cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables,

The Company is exposed to Market risk. Credit risk and Liquidity risk. The Board of Directors ('Board') oversee the management of these financial risks through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Board, states the Company's approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company's management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s financial performance.

The following disclosures summarize the Company's exposure to financial risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company

1) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk Financial instruments affected by market risk includes borrowings, trade payables, trade receivables, loans and derivative financial instruments.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Company is exposed to interest rate risk on long term floating rate borrowngs.The borrowings of the Company are principally denominated in Indian Rupees with floating rate of interest.

For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk represents management's assessment of the reasonably possible change in interest rates.

C) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price.Other price risk arises from financial assets such as investments in equity instruments.The Company's investments in bonds recognised at amortised cost and get recouped through fixed coupon accruals. As at 31st March, 2024, the carrying value of the Investments In bonds amounts to 0.87 lakhs {0.87 lakhs as at 31st March, 2023). The details of such Investments in bonds are given in Note 6.lnvestments in bonds is not considered to be significant and hence the risk is negligible.

2) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.The Company considers Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, and loans.

Credit risk arising from other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the credit rating agencies.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company Where receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates.loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no provision considered.

Financial Assets arc considered to be of good quality and there is no significant increase in credit risk.

3) Liquidity Risk

Liquidity risk is the risk that the company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Ihe approach of the company to manage liquidity is to ensure, as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation. The company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.

The table below summarises the maturity profile of the company's financial liabilities based on contractual undiscounted payments.

NOTE 38 : CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The capital structure of the group is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes In economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. 1 he Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

NOTE 40: CONTINGENT LIABILITIES AND COMMITMENTS

(a) In the matter of dispute with authorities Rs.NIL

(b) Letter of Credit issued by bankers & outstanding as on 31st March, 2024 is Rs 23.37 Lakhs (31st March, 2023 Rs. 104.00 Lakhs)

(c) Others

Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above.

The Company's management does not believe, based on currently available information, that the outcomes of the disputed matters will have a material adverse effect on the Company's financial statements, though the outcomes could be material to the Company's operating results for any particular period, depending, in part, upon the operating results for such period. It is not practicable for the Company to estimate the timings of cash flows, if any, in respect of disputed matters.

(d) Commitments

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for. Net off Advances as on 31st March, 2024 is Rs.Nil (31st March, 2023 is Rs. Nil).

NOTE: 48 SEGMENT REPORTING

The company is Primarily engaged in the business of manufacturing of Polyurethane Foam and their articles in India, hence there are no separate reportable primary or secondary segments as per Indian Accounting Standard 108 Operating Segments.

Information about Major Customers

Revenue contributed by any single customer does not exceed 10% of the Company's total revenue, for the year ended 31 March 2024 and 31 March 2023.

NOTE: 49 CORPORATE SOCIAL RESPONSIBILITY

Provisions of Section 135 of the Companies Act, 2013, requires every Company having a net worth of Rupees 500 crore or more, or turnover of Rupees 1000 crore or more or a net profit of rupees 5 crore or more during the immediately preceding financial year shall spend at least 2% of the average net profits of the Company made during the three immediately preceding financial years on Corporate Social Responsibility (CSR).

The Company doesn't fall in any of the above criteria, hence provisions of Section 135 of the Companies Act, 2013, is not applicable to the Company.

NOTE: 50 ADDITIONAL REGULATORY REQUIEMENT

i) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

ii) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act. 1988 (45 of 1988) and Rules made thereunder.

iii) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

iv) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

v) The Company has not been declared wilful defaulter by any bank or financials institution or other lender.

vi) The Company does not have any charges which is yet to be registered with Registrar of Companies beyond the statutory period. Some outstanding charges are created in duplicate and company is in the process of satisfaction of these charges.

vii) 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

viii) 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 company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

ix) The Company does not have any such 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.

x) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year. Material Accounting Policies and key accounting estimates and judgements (Refer Note 1)

See accompanying notes to the financial statements

For F P & ASSOCIATES FOR AND ON BEHALF OF THE BOARD OF

Chartered Accountants DIRECTORS OF TIRUPATI FOAM LIMITED

(Firm Registration No. 143262W)

(F.S.SHAH) Roshan P. Sanghavi Deepak T. Mehta Satish A. Mehta

PARTNER Managing Director Executive Director Executive Director

Membership No. 133589 (DIN: 01006989) (DIN: 00156096) (DIN: 01007020)

Ahmedabad Gopalsinh R. Zala Aksha Memon

May 29,2024 Chief Financial Officer Company Secretary