o) Provisions, Contingent liabilities and Contingent
assets

Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event and 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.

Provisions are discounted, if the effect of the time
value of money is material, using pre-tax rates
that reflects the risks specific to the liability When
discounting is used, an increase in the provisions
due to the passage of time is recognised as finance
cost. These provisions are reviewed at each balance
sheet date and adjusted to reflect the current best
estimates.

Necessary provision for doubtful debts, claims, etc.,
are made, if realisation of money is doubtful in the
judgement of the management.

Contingent liability

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the company or a present obligation that is not
recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized
because it cannot be measured reliably. Contingent
liabilities are disclosed separately.

Show cause notices issued by various Government
authorities are considered for evaluation of contingent
liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the
Company discloses a brief description of the nature
of the contingent assets at the end of the reporting
period, and, where practicable, an estimate of their
financial effect.

Contingent assets are disclosed but not recognised in
the financial statements.

p) Cash and cash equivalents

Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term balances
with original maturity of less than 3 months, highly
liquid investments that are readily convertible into
cash, which are subject to insignificant risk of changes
in value.

q) Cash Flow Statement

Cash flows are presented using indirect method,
whereby profit / (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments.

Bank borrowings are generally considered to be
financing activities. However, where bank overdrafts
which are repayable on demand form an integral part
of an entity's cash management, bank overdrafts are
included as a component of cash and cash equivalents
for the purpose of Cash flow statement.

r) Earnings per share

The basic earnings per share are computed by
dividing the net profit for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit
after tax by the weighted average number of equity
shares considered for deriving basic EPS and also
weighted average number of equity shares that could
have been issued upon conversion of all dilutive
potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning
of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently
for each period presented. The number of equity
shares and potentially dilutive equity shares are
adjusted for bonus shares, as appropriate.

d. Rights, preferences and restrictions in respect of equity shares issued by the Company

The company has only one class of equity share having a par value of Rs.2/- each (March 31, 2024 : Rs.10/- each).
The equity shares of the company rank pari-passu in all respects including voting rights and entitlement to
dividend. The dividend proposed if any, by the Board of Directors, is subject to the approval of the shareholders
in the ensuing Annual General Meeting. During the year, the Company proposed a dividend of Re. 0.70/- (Rs.
2.50/-) per equity share held. In the event of liquidation, the equity shareholders are eligible to receive the
remain ingassetsofthe Company after distribution of all preferential amounts, in proport ion totheir shareholding.

e. No class of shares have been issued as bonus shares or for consideration other than cash by the Company
during the period of five years immediately preceding the current year end.

f. No class of shares have been bought back by the Company during the period of five years immediately
preceding the current year end.

g. There are no shares reserved for issue under options and contracts/commitments for the sale of shares/
disinvestment.

Nature and description of reserve

General Reserve - General reserve are free reserves of the company which are kept aside out of company's profits
to meet the future requirements as and when they arise. The Company had transferred a portion of the profit after
tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general
reserve is not required under the Companies Act, 2013.

Securities Premium Account - Securities Premium Account was transferred to the Company pursuant to the
Scheme of Demerger. The reserve can be utilised in accordance with Section 52 of Companies Act, 2013.

Demerger Reserve - Demerger Reserve was created due to the cancellation of share capital of the Company standing
prior to the Demerger The reserve is capital in nature.

Retained Earnings - Retained earnings are the accumulated profits earned by the Company till date, less transfer
to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.

e. Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

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

f. Borrowings from banks

Cash Credit facilities are secured by hypothecation of inventories of the Company. The quarterly returns/
statements filed by the Company with the Banks in respect of such facilities are in agreement with the books
of accounts.

The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

g. Relationship with Struck off Companies

The Company did not have any transactions with Companies struck off under Section 248 of Companies Act,
2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

h. Compliance with number of layers of companies

The Company do not have any parent company and accordingly, compliance with the number of layers prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is
not applicable for the year under consideration.

Reasons for Variation if more than 25%

i. The improvement in debt-equity ratio is due to significant movement in total equity which is due to
improvement in net profit earned by the Company during the year without any significant movement in
total debt.

ii. The improvement in return on equity ratio is due to increased profits earned by the company which is result
of increase in profit margins of the Company.

iii. The improvment in ratio is due significant amount of trading sales undertaken by the Company during the
year as compared to the previous year, sales of which are with lesser/almost at nil credit basis. Further, the
improvement in ratio is also due to faster turnaround of collections and discounting of bills during the year
as compared to the previous year.

iv. The variation in trade payable by ratio is 33.33% but in absolute terms the ratio has declined from 3 days to
2 days only. Accordingly, there is no major reason for the change in Ratio.

v. The improvement in ratio's is due to higher profits earned by the company which is due to better margin
retained on sales.

j. Scheme of arrangements

There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013 during the year.

k. Advance or loan or investment to intermediaries and receipt of funds from intermediaries

The company has not advanced or 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
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

The company has also 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 (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.

l. Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the
years.

m. Details of Crypto Currency or Virtual Currency

The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

Terms and conditions of short term loans

i. Working capital loans are secured by hypothecation of present and future stock of raw materials, stock in
progress, finished goods, stores & spares, book debts, materials in transit etc. Further land, buildings and plant
& machinery are also provided as collateral security. The working capital loans are guaranteed by the Managing
Directors of the Company.

ii. Loans from Directors are repayable on demand.

46 Financial Instruments

Capital management

The Company manages its capital to ensure it will be able to continue as going concern, while maximising the return to
stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product
and other strategic investment plans. The funding requirements are met through equity, long term and short-term
borrowings.

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

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international financial
markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk
and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using natural hedging financial instruments to hedge risk
exposures. The use of financial derivatives is governed by the Company's policies approved by the Board of Directors,
which provide written principles on foreign exchange risk, the use of financial derivatives, and the investment of excess
liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from
a change in the price of a financial instrument. The Company's activities expose it primarily to the financial risks of
changes in foreign currency exchange rates and interest rates. The Company actively manages its currency and interest
rate exposure through its finance division and uses derivative instruments such as forward contracts wherever required,
to mitigate the risks from such exposure. The use of derivative instruments is subject to limits and regular monitoring by
appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. The Company actively manages its currency rate exposures through a centralised treasury division
and uses natural hedging principles to mitigate the risks from such exposures. The use of derivative instruments, if any,
is subject to limits and regular monitoring by appropriate levels of management.

Forward foreign exchange contracts

It is the policy of the company to enter into forward foreign exchange contracts to cover (a) repayments of specific
foreign currency borrowings; (b) the risk associated with anticipated sales and purchase transactions out of 6 months
within 50% to 60% of the exposure generated.

Disclosure of hedged and unhedged foreign currency exposure

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows:

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company against major foreign currencies
may impact the Company's revenues from its operations. Any weakening of the functional currency may impact the
Company's cost of imports and cost of borrowings and consequently may increase the cost of financing the Company's
capital expenditures. The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net
foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign
exchange rates of each currency by 2%, which represents management's assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a 2% change in foreign currency rates which is expected to be
approximately Rs. Nil (previous year Rs. 5 lakhs).

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the year.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates. The
risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most
cost-effective hedging strategies are applied. Further, in appropriate cases, the Company also effects changes in the
borrowing arrangements to convert floating interest rates to fixed interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. 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 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel
and represents management's assessment of the reasonably possible change in interest rates.

The 25 basis point interest rate changes will impact the profitability by Rs. 30.16 Lakhs for the year (Previous Rs. 24.61
Lakhs)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial
instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade
receivables and from its financing/ investing activities, including deposits with banks and foreign exchange transactions.
The Company has no significant concentration of credit risk with any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total
of the carrying amount of balances with banks, short term deposits with banks, trade receivables, margin money and
other financial assets excluding equity investments.

(a) 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 bank, guarantee/letter of credit or security deposits.

The Company does not have higher concentration of credit risks to a single customer. 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 in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period
and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank Deposits

Credit Risk on cash and cash equivalents, 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 is generally low as the Company enters into the
Derivative Contracts with the reputed Banks.

Investments of surplus funds are made only with approved financial institutions/ counterparty. Investments primarily
include bank deposits, investment in units of quoted mutual funds issued by high investment grade funds etc. These
bank deposits, mutual funds and counterparties have low credit risk. The Company has standard operating procedures
and investment policy for deployment of surplus liquidity, which allows investment in bank deposits, debt securities and
mutual fund schemes of debt and arbitrage categories and restricts the exposure in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the loan agreement is available only to the bank in the
event of a default. Company does not have the right to offset in case of the counter party's bankruptcy, therefore, these
disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company invests its surplus funds in bank fixed deposits, which carry minimal mark to market risks. The Company
also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial
flexibility.

Liquidity tables

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Company can be required to pay.

49 Retirement benefit plans

Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident
fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified
percentage of the covered employees' salary. The contributions, as specified under the law, are made to the Provident
Fund, Employees' State Insurance Fund and Superannuation Fund.

The total expense recognised in profit or loss of Rs. 101.31 lakhs (for the year ended March 31, 2024: Rs. 79.63 lakhs)
represents contribution paid to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans
(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last
drawn salary (basic salary including dearness Allowance, if any) by completed years of continuous service with part
thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5 years for withdrawal and

Sensitivity analysis

The Company for preparing the sensitivity analysis considers the present value of the defined benefit obligation which
has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that
applied in calculating the defined benefit obligation liability recognised in the balance sheet.

(b) Compensated absences

The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an
independent actuary at each balance sheet date using projected unit credit method on the additional amount expected
to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense
recognised during the year is Rs. 8.49 Lakhs (previous year Rs.8.63 Lakhs)

50

The proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment
Rules, 2021 requires companies, which uses accounting software for maintaining its books of accounts, to use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of
each change made in the books of accounts along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account, which have a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software. Further, where the audit trail (edit log) facility was enabled and operated, the audit trail feature has not been
tampered with.

51 Figures for the previous year have been regrouped wherever necessary.

For and on behalf of the Board of Directors As per our report of even date attached

of POCL Enterprises Limited For Darpan & Associates

Chartered Accountants
FRN No: 016156S

Devakar Bansal Sunil Kumar Bansal

Managing Director Managing Director

(DIN: 00232565) (DIN: 00232617) Darpan Kumar

Partner
M.No. 235817

Amber Bansal Aashish Jain

Whole Time Director and Chief Company Secretary and Finance Head
Financial Officer

Place : Chennai
Date : 05/05/2025