m) Provisions

i) General

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

When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as
a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the Statement of Profit and Loss, net of any reimbursement.

If the effect of the 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 (i.e. unwinding of discount) is recognised as a finance cost.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision
is reversed.

ii) Contingent assets/ liabilities

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

Contingent liabilities are disclosed in notes to accounts when 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 events not wholly within the control of the Company or a present obligation that arises from
past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

n) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the period attributable to ordinary equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to ordinary equity shareholders of the Company by the
weighted average number of equity shares outstanding during the year plus the weighted average number of equity
shares that would be issued on conversion of all the dilutive potential equity shares (such as preferential shares,
ESOR share warrants, share application money, etc.) into equity shares.

o) Fair value measurement

The Company measures financial instruments at fair value at each reporting date. Fair value is the price 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 fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

• In the principal market for the asset or liability

• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

I. Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.

II. Level 2- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)

III. Level 3- Inputs for the assets or liabilities that are not based on observable market data(unobservable inputs)
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

This note summarises accounting policy for fair value measurement. Other fair value related disclosures are given
in the relevant notes.

p) Foreign currency

Functional and presentation currency

The Company's financial statements are presented in Indian Rupees (INR), which is also the Company's functional
currency. Functional currency is the currency of the primary economic environment in which an entity operates and
is normally the currency in which the entity primarily generates and expends cash. All the financial information is
presented in INR, except where otherwise stated.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company at the functional currency spot rates at the
date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot
rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are
recognised in Statement of Profit or Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fairvalue is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

Foreign exchange gains/ (losses) arising on translation of foreign currency monetary loans are presented in the
Statement of Profit and Loss on net basis.

q) Corporate social responsibility expenditure

Pursuant to the requirements of section 135 of the Act and rules thereon and guidance notion Accounting for
expenditure on Corporate Social Responsibility activities issued by ICAI, with effect from 1 April 2015, CSR expenditure
is recognised as an expense in the Statement of Profit and Loss in the period in which it is incurred.

4. Segment Reporting

The chief operational decision maker monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is
evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial
statements. Operating segments have been identified on the basis of the nature of products. In accordance with
Ind AS 108, Operating Segments, the Company has identified and disclosed the followoing segment information in
the financial statements.

1.Infra & Energy

2. Chemical, Polymers & Special Additives

3. Real Estate

Disclosures relating to investment property

The above investment property comprises of following mentioned property:

Express Zone B Wing Premises Co- operative Society Limited, Western Express Highway, Malad (East),
Mumbai-400097 having office number 404, 405, 408, 409 & 410.

Fair value

The fair value of investment property has been determined by external independent registered/approved valuer,
having appropriate recognised professional qualification and experience in the valuation feild. The fair value of the
investment property is ? 741.83 Lakhs as on 10 May 2023.

The fair value measurement for all of the investment property has been categorised as a level 3 fair value based
on the inputs to the valuation techniques used.

Premises given on lease

The Company has given investment property ( land and building) on operating lease for 3 years and is renewable
further as per mutually agreeable terms.

*During the year, the Company additionally acquired 2.55 Lakh equity shares of Vikas Organics Pvt Ltd. In the
previous year, the Company had acquired 7.05 lakh equity shares, and with the current acquisition, the total
holding stands at 9.60 lakh equity shares, representing 100% of the share capital of Vikas Organics Pvt Ltd. The
investment has been accounted for at amortised cost in accordance with Ind AS-28. Accordingly, Vikas Organics
Pvt Ltd is reported as wholly owned subsidiary of Vikas Ecotech Limited (VEL).

**In the previous year, the Company had entered into an agreement to acquire equity shares of M/s Roseland
Buildtech Private Limited (RBPL) and had paid an amount of ?2,850.00 lakhs towards the proposed investment.
However, during the current year, the terms of the agreement were modified. As per the revised terms, ?1,300.00
lakhs of the total amount is to be settled through the issuance of 10% Non-Convertible Debentures (NCDs) by M/s
Lotus Green Constructions Pvt. Ltd., which are pending allotment and have been classified under Other Current
Assets. The remaining ?1,550.00 lakhs is refundable to the Company. Out of this, ?300.00 lakhs has been received
during the year, while the balance refundable amount of ?1,250.00 lakhs has been classified under Other Current
Financial Assets.

*** a) The company has collaboarted in the development of real estate project in Sonipat, Haryana on profit sharing
model with the BG Technocrafts Private Limited (BGTL) in the ratio of 70:30, with our company contributing 70%
of the total invesment. Total project cost is ? 18,000 Lakhs. The funds infused by us till year end ? 13,250 Lakhs
(Previous year ? 8,500 lakhs). The profit sharing ratio is 30:70, our company share is 30%.

b) The company has collaboarted in the development of real estate project in Faridabad, Haryana on profit sharing
model with the Innovative Supply Chains Solutions LLP (LLP) in the ratio of 70:30, with our company contributing
70% of the total invesment. The funds infused by us till year end ? 800 Lakhs (Previous year ? 800 lakhs) will
be used by the LLP towards making payments to Huda against the cost of the plot and construction. The profit
sharing ratio is 30:70, our company share is 30%.

c) During the previous year the company had entered into a collaboration agreement with Rudraveerya Developers
Limited (RDL) for a significant real estate project in Delhi, NCR. The project was to be funded by both the partners
i.e our company and our collaborating partner. The said agreement has been cancelled during the year and
Rudraveerya Developers Limited refunded the entire amount during the year and amount outstanding as on year
end is Rs 79.89 lakhs (Previous year Rs. 1500 lakhs). The interest component at the rate of 8% is receivable as
per the terms of the cancellation and has been classified as a financial asset in accordance with Ind AS 109. (Refer
Note. 13)

During the previous year the company had entered into a collaboration agreement with Nice Apartment for a
significant real estate project in Delhi, NCR. The project was to be funded by both the partners i.e our company
and our collaborating partner. The said agreement has been cancelled during the year and amount outstanding
as on year end is Rs. 3531.50 lakhs (Previous Year Rs. 7000 lakhs). The interest component at the rate of 8% is
receivable as per the terms of the cancellation and has been classified as a financial asset in accordance with Ind
AS 109. Refer note-13

During the previous year the company had entered into a collaboration agreement with Arm Estate Projects Private
Limited for a significant real estate project in Delhi, NCR. The project was to be funded by both the partners i.e
our company and our collaborating partner. The said agreement has been cancelled during the year and amount
outstanding as on year end is Rs. 512.15 lakhs (Previous Year Rs. 2150 lakhs). The interest component at the rate
of 8% is receivable as per the terms of the cancellation and has been classified as a financial asset in accordance
with Ind AS 109. Refer note-13

** Rs. 1250.00 lakhs refundable to the Company out of ?2550.00 lakhs advanced by the company for a proposed
share purchase. Pursuant to a modification in the transaction terms, debentures amounting to ?1300.00 lakhs will
be allotted instead, and the balance ?1250.00 lakhs is recoverable. In pursuance to this, the amount of Rs.1300.00
lakhs has been classified as other current asset (refer note-15) and Rs. 1250.00 lakhs has been shown as other
financial assets.

***The Company had advanced a sum of ?4,123.54 lakhs, including accrued interest, under a collaboration
agreement related to a real estate project. Subsequently, the collaboration agreement was cancelled. As per the
terms of the cancellation, the Company retains a contractual right to receive interest on the amount advanced.
Accordingly, the classification of this amount has been changed from Investments to Other Current Financial
Assets and recognised as a financial asset in accordance with the principles of Ind AS 109 - Financial Instruments,
as it represents a contractual right to receive cash flows. The Company has assessed the recoverability of the said
amount based on a credit risk evaluation of the counterparty and other relevant factors, and no impairment has
been considered necessary as at the reporting date. (Refer Note No. 4)

Security Deposit of Rs. 49.44 Lakhs (Previous year Rs 49.44 lakhs) paid to BSE Limited

Terms / rights to Equity Shares

The Company has only one class of shares referred as equity shares having a par value of ? 1/- per share. Each
holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the company after distribution of all preferential amounts , in proportion
to their shareholding.

Rights, Preferences and Restrictions

The Authorised Share Capital of the Company consists of Equity Shares having nominal value of ? 1/- each. The
rights and privileges to equity shareholders are general in nature and allowed under Companies Act, 2013.

The equity shareholders shall have:

(1) a right to vote in shareholders' meeting. On a show of hands, every member present in person shall have one
vote and on a poll, the voting rights shall be in proportion to his share of the paid up capital of the Company

(2) a right to receive dividend in proportion to the amount of capital paid up on the shares held
The shareholders are not entitled to exercise any voting right either in person or through proxy at any meeting of
the Company if calls or other sums payable have not been paid on due date.

In the event of winding up of the Company, the distribution of available assets/losses to the equity shareholders
shall be in proportion to the paid up capital.

The Company has availed a vehicle loan from a bank amounting to ?25.01 lakhs, which is secured by hypothecation
of the specific vehicle purchased. The loan is repayable in equated monthly instalments over a period of 37 Months
and carries an interest rate of 9.00% p.a. As at March 31,2025, the current maturity of the loan amounting to ?7.89
lakhs has been classified under current borrowings, and the balance amount of ?11.62 lakhs has been disclosed
under non-current borrowings.

The Company is availing working capital limits under consortium from Punjab National Bank and State Bank of
India with Punjab National Bank as lead banker in consortium and SBI is member bank.

The Company is availing Fund Based limits in the form of cash credit limit of ? 1,000 Lakhs from Punjab National
Bank against Hypothecation of stock, receivable, advance to suppliers and other current assets on pari-passu
basis with consortium members. DP is allowed against stock and Book debts not exceeding 180 days at Margin @
25% and the current rate of interest is 1year MCLR (8.80%) Spread (6.00%) i.e., 14.80% p.a. Further, the Company
is also availing Non-Fund based limits in the form of LC / DA / DP basis of ? 750 Lacs for procurement of Raw
Material and spares carrying Cash Margins @ 15% in the form of FDR(s) on LC limits. Total exposure from Punjab
National Bank is Rs. 1,750 lakhs as on 31 March 2025.

The Company is also availing Fund based limits in the form of Cash Credit limit of ? 1,350 Lakhs from State Bank
of India secured by way of hypothecation of stock, receivables & other current assets on pari-passu basis with
consortium members. DP is allowed against stock and Book debts not exceeding 180 days at Margin @ 25% and
the current rate of interest is 6 months MCLR (8.90%) Spread 2.75% i.e. 11.65% p.a., along with one way inter
change ability from CC to LC for Rs. 500 Lacs.

Further the Company is also availing Non-Fund Based limits in the form of LC (Import /Inland /DP/ DA/ BG, Buyers
Credit) of ? 400 lakhs for procurement of raw material and spares carrying Cash Margins @ 15% in the form of
FDR'(s) on LC limits. Total exposure from State Bank of India is Rs. 1,750 lakhs as on 31 March 2025.

Further, the fund based & non fund based limits from banks are secured by mortgage of following collateral assets:

a) Industrial property at G-30 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan

b) Industrial property at G-24-29 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar Rajasthan

c) Industrial Property No. - F-7 & 8, Vigyan Nagar RIICO Indl. Area, Shahjahanpur, Tehsil Neemrana Distt. Alwar,
Rajasthan

*As per the provisions of the Companies Act, 2013, the Company is required to transfer unclaimed dividends that
remain unpaid for a period of seven years to the Investor Education and Protection Fund (IEPF) established by
the Central Government. Accordingly, an amount of ?6.43 Lakhs has been identified for transfer to the IEPF in
compliance with the applicable statutory requirements. However, due to a technical issue on the MCA portal, the
Company was temporarily unable to complete the transfer. The Company has initiated the necessary process and
is taking appropriate steps to ensure that the transfer is completed at the earliest and that full compliance with
the statutory provisions is achieved.

**Deferred purchase consideration consist of payment to Vikas Organics Pvt Ltd. which is on hold and shall be
released upon fulfillment of certain conditions in accordance with the share purchase agreement.

* The company received orders under Section 153C of the Income Tax Act, 1961, resulting in a demand. In response,
the company filed an appeal under Section 260A before the Hon'ble Delhi High Court, which was decided in favor
of the assessee company.

However, in some cases, the effect of the High Court's order is yet to be given by the Assessing Officer (AO). In
other instances, while giving effect to the order, the AO has made errors such as non-grant of TDS credit, self¬
assessment tax credit, and other discrepancies.

The company is currently in the process of filing rectification applications under Section 154 of the Income Tax Act
before the Income Tax Department to correct these mistakes. Based on the company's assessment, it is believed
that after giving proper effect to the High Court's order and making the necessary rectifications, there shall be
no demand payable.

** There is no demand as per the Company records, however the demand is being reflected on the portal, the
company has already filed rectification application under section-154 of the Income Tax Act,1961. As on the date,
the department has not dispossed of rectification application.

*** The company has received the Assessment order u/s 143(3) with demand of Rs 105.90 Lakh, the Company
has filed Appeal before the Commissioner of Income Tax (Appeals) add same is pending for disposal as on the
balance sheet date.

During the Financial year 2023-24, the income tax department conducted the search on the Vikas Ecotech Limited
and its group companies including residence of promoter and KMPs under section 153 of the Income Tax Act.
The said search was an additional cover of premises because of transaction with the M/s Best Agrolife Limited
and its promoter. As per panchnama dated 30 September 2023 drawn on the conclusion of search no major
deviation reported in the books of accounts. Further the department has not impounded any valuable article or
things arising out of such proceedings. In pursuance to this, Income Tax Department has issued notice u/s 148
of the income tax act, 1961 for AY 2016-17, AY 2017-18, AY 2021-22 & AY 2022-23. the decision of such cases is
pending as on 31 March 2025.

The Income Tax Department has filed an appeal against the order of honorable ITAT Delhi with respect to total
addition of ? 339 Lakhs pertains to assessment year 2012-13. Such case is pending before the Honorable Delhi
High Court. The total demand of income tax involves the matter of law whether the compensation received against
the compulsory acquisition will be treated as agriculture Income or profit from business as sale of real estate
division of the company.

The company has received adjudication order dated January 28, 2025 passed by Additional Commissioner CGST
& Central Excise Commisionerate wherein demand of Rs. 26.07 Crores (Excluding Interest and Penalty) is raised
under section 74(9) of the CGST Act on account of wrong availment of Input Tax Credit from the suppliers during
the period 2017-18 to 2021-22. The Company has contested the matter and has filed appeal against the said Order
before the Adjudicating Authority. The company has already deposited Rs. 3.00 crores under protest to the credit
of the Government treasury.

During the previous year, the company has filed an appeal on 29.02.2024 against the order passed by Ld. Deputy
Commissioner, Gautam Budh Nagar Noida under section 73 of the CGST act, 2017 pertaining to FY 2017-2018. The
demand of ? 63.78 Lakhs pertains to difference in the Input tax credit availed through the GSTR-3B and populated
in GSTR-2A. The said assessment pertains to the financial year 2017-18 having GSTN 09AAACV0608G2ZK.
Whereas the consequential interest and penalty of ? 91.88 Lakhs and ? 6.37 Lakhs respectively determined by the
Ld. Deputy commissioner of Goods and Service Tax, Noida. Out of total demand raised, the company agreed for
demand of ? 1.54 Lakhs and filed appeal with respect to disputed amount of Rs. 62.24 Lakhs and deposited 10%
of the disputed demand as pre-deposit amounting ? 6.22 Lakhs. The said Appeal is pending as on the Balance
Sheet date.

During the previous year, the company has filed an appeal on 12.04.2024 against the order of the Ld. Sales Tax
Officer Ward-52, Delhi under section 73 of the CGST act, 2017..The demand of ? 207.52 Lakhs pertains to difference
in the Input tax credit availed through the GSTR-3B and populated in GSTR-2A.The said assessment pertains to
the financial year 2017-18 having GSTN 07AAACV0608G1ZP Whereas the consequential interest and penalty of
? 207.52 Lakhs and ? 20.75 Lakhs respectively determined by the Ld. Sales tax officer of Goods and services tax,
Delhi. Further the company has deposited 10% of the demand of Rs. 20.75 Lakhs as a pre deposit for filing appeal
against the order on 12th April 2024. The said Appeal is pending as on the Balance Sheet date.

During the year, the company has filed an appeal against the order of the Joint Commissioner, Circle C, Enforcement
Wing III, Jaipur passed on 23rd January 2025 under section 74, 50 of RGST/CGST Act 2017 & R/w Sec. 4 &
20 of IGST Act, 2017. The demand of ? 18.05 Lakhs pertains to tax which has not been paid or short paid or
erroneously refunded or where Input tax credit has been wrongly availed or utilised by reason of fraud, or any
wilful-misstatement or suppression of facts to evade tax. The said assessment pertains to the financial year
2017-18 having GSTN 08AAACV0608G1ZN. Whereas the consequential interest and penalty of ? 23.83 Lakhs and
? 18.05 Lakhs respectively determined by the Joint Commissioner, Circle C, Enforcement Wing III, Jaipur. Further
the company has deposited 10% of the demand of Rs. 1.81 Lacs as a pre deposit for filing appeal against the order
on 02/04/2025. The said Appeal is pending as on the Balance Sheet date.

The Assistant Commissioner- II, Circle C, Enforcement wing III, Jaipur unit of Goods and services tax has initiated
enquiry under section 70 of RGST Act, 2017 with respect to transaction with one of the suppliers of the company.
The Company has deposited amount of ? 30 Lakhs u/s 73(5) of RGST Act, 2017 under protest. Further, the
company has preferred a civil writ petition number 5022/2024 before Honourable Jaipur High Court against such
proceedings initiated by Ld. Assisstant Commissioner of GST Jaipur, the said petition is pending as on the date
of balance sheet.

The Company has filed civil suit against ADM Agro Industries Kota and Akola Limited supplier of Soya Bean Oil in
Saket Court Delhi (Case No-CS OS No.-198/214) amounting ?99.62 Lakhs due to poor supply of soya bean oil. The
Company has suffered a loss due to such poor quality of material supplied by them and non-recovery of money
from debtors and it also affect goodwill of the Company. ADM Agro Industries Kota and Akola Limited has also
filed winding up petition against the Company in High Court (Case No. CO PET N. 64/2014) due to non-payment
of Rs. 41,15,664 along with interest at the rate of 18% from the due date of payment. ADM Agro Industries Kota
and Akola Limited has also filed a summary suit for recovery of debts in Tis Hazari Court (Summary Suit No. - C
S (OS) 3077/2014)

Mr. Pradip Kumar Banerji (Former director) of Vikas Ecotech Limited has sued company for non-allotment of
4,37,000 equity shares under Employee Stock Option Scheme, 2011 for ? 110 Lakhs. Case is pending till 31 March
2024 in High Court of Delhi for disposal.

The Directorate of Enforcement, Delhi Zonal Office, New Delhi has issued a provisional attachment order (Order)
bearing number 04/2020 and file number ECIR/10/DZ-1/2017 under section 5(1) of The Prevention of Money
Laundering Act, 2002 (PMLA) against our company, its director Mr. Vikas Garg and other third parties. The ED has
recovered the amount of ? 7.16 Lakhs on 29 June 2021 kept in the attached bank account No- 19450210001943
maintained with the UCO bank. After recovery of the said amount, attachment has been released by ED and duly
closed by the company in FY 21-22.

d) Other money for which company is contingently liable- Nil (Nil)

The following methods / assumptions were used to estimate the fair values:

a) The carrying value of cash and cash equivalents, trade receivables and trade payables and liabilities approximate
their fair values mainly due to short-term maturities of these instruments.

b) The fair value of other financial assets and other financial liabilities is estimated by discounting future cash
flows using rates applicable to instruments with similar terms, currency, credit risk and remaining maturities. The
fair values of other financial assets and other financial liabilities are assessed by the management to be same as
their carrying value and is not expected to be significantly different if estimated by discounting future cash flows
using rates currently available for debt on similar terms, credit risk and remaining maturities. These are classified
as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c) The Company's borrowings have been contracted at floating rate of interest, which resets at short intervals.
Accordingly, the carrying value of such borrowings (including interest accrued but not due) approximates fair
value.

There are no significant unobservable inputs used in the fair value measurement.

Fair value hierarchy

All financial instrument for which fair value is recognised or disclosed are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the financial instruments measured at fair value, by level within the fair value
measurement hierarchy:

The Company is exposed to market risk (interest rate risk), credit risk and liquidity risk. The Company's senior
management oversees the management of these risks. The senior professionals working to manage the financial
risks and the appropriate financial risk governance frame work for the Company are accountable to the Board
Audit Committee. This process provides assurance to the Company's senior management that the Company's
financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with Company's policies and Company's risk appetite. All
derivative activities for risk management purposes are carried out by specialist teams that have the appropriate
skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes
shall be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks which
are summarised below:

Market Risk - Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates related primarily
to the Company's borrowings with floating interest rates.

? 44 Status of Insurance Claim

The fire incidence occurred at factory located at RIICO Industrial Area, Shahjahanpur, Rajasthan on 31 March 2017.
The claim was lodged with Insurance Company for ?1,631 Lakhs out of which ?1,065 Lakhs was on account of
stock. The company has filed appeal before the National Consumer Forum for the differential amount and Interest
on delayed payment as well. Protocol insurance surveyors and loss assessors Private Limited has submitted
insurance claim to the Insurance company and the claimed approved ? 614.98 Lakhs against stock and ? 319.33
against Plant & Machinery. The Division officer (DO) of Oriental Insurance Company has approved the report
submitted by surveyor without any modifications. Further, Division Officer has submitted their report to regional
office for further disbursal of claim, in response to the evidence and Documents submitted the Ad hoc deduction
of 10 % of consent amount (? 934.31 Lakhs) was made by the OIC. On 20 September 2019 the OIC had paid ?
837.60 Lakhs as settlement of claim. Aggrieved by the receipt of claim the company has filed appeal before the
National Consumer court. The National Consumer court has approved the claim of ? 1,287.70 Lakhs on 30 April
2024 and same was received by the company. In nutshell the company has received ? 2,125.30 Lakhs including
interest on delay payment from the date of acceptance of claim to the date of payment.

? 45 Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade payables etc. The main purpose of
these financial liabilities is to manage finances for the Company's operations. The Company's principal financial
assets include trade and other receivables, cash and cash equivalents, security deposits, etc. that derive directly
from its operations.

? 50 Ind AS 116 - Leases

Effective April 01, 2019 the Company adopted Ind AS 116 Leases and applied the standard to all lease contracts
existing on April 01, 2019 using the modified retrospective method. ROU are measured at cost comprising the
amount of the initial measurement of lease liability, any lease payments made at or before the commencement
date and any initial direct costs less any lease incentives received. Lease liabilities were recognized based on the
present value oI the remaining lease payments, discounted using the incremental borrowing rate at the date of
initial application.

The following is the summary of practical expedient selected on initial application:

1. Applying a single discount rate to a portfolio of leases with reasonably similar characteristics

2. Applied the exemption not to recognize right-to-use assets and liabilities for leases with less than 12 months of
lease term on the date on initial application.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
The weighted average incremental borrowing rate applied to lease liabilities is 9%

? 51 Other Statutory Informations

a) All the immovable properties held by the company are in the name of the company (where the company is
the lessee and the lease arrangements are duly executed in favour of lessee) as on the balance sheet date
except the following :

There is one property of the company located in Jammu state, which is held in the state of Sigma Plastic
Industries. The Said Firm was the taken over by the company in the earlier years. The title of the said property
could not be transferred in company's name due to some pending procedural conditions and formalities.

b) The Company does not have any Benami Property, where any proceeding has been initiated pending against
the Company for holding any Benami Property.

c) The Company has no loan or advances in the nature of loan to specified persons viz. Promoters, Directors,
KMP and Related Parties which are repayable on demand or where the agreement document not specifies
any terms or period of repayment outstanding as on 31st March 2025

d) The Company has not been declared as a wilful defaulter by any lender who has the power to declare a
Company as a wilful defaulter at any time during the financial year or after the end of the reporting period but
before the date when the financial statements are approved.

e) The Company has utilized funds raised from the issue of securities or borrowings from banks & financial
institutions for the specific purposes, for which they were issued/taken.

f) 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 intermediatory 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 guarantees, securities or the like or on behalf of the ultimate beneficiaries

g) The Company has not received any funds from any person(s) or entity(ies), including foreign entity(ies)
(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 guarantees, securities or the like or on behalf of the ultimate beneficiaries

h) There are no transactions and/or balances outstanding with companies struck off under section 248 of the
Companies Act'2013.

i) The Company does not have any transaction which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

j) The Company has not traded or invested in cryptocurrency or virtual currency during the financial year.

k) The Company does not have any charges or satisfaction of charges which is yet to be registered with the
registrar of companies (ROC) beyond the satisfactory period.

l) The company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act'2013 read with Companies (Restriction on Number of Layers) Rules'2017.

m) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.

n) As per the provisions of the Companies Act, 2013, the Company is required to transfer unclaimed dividends that
remain unpaid for a period of seven years to the Investor Education and Protection Fund (IEPF) established by
the Central Government. Accordingly, an amount of ?6.43Lakhs has been identified for transfer to the IEPF in
compliance with the applicable statutory requirements. However, due to a technical issue on the MCA portal,
the Company was temporarily unable to complete the transfer. The Company has initiated the necessary
process and is taking appropriate steps to ensure that the transfer is completed at the earliest and that full
compliance with the statutory provisions is achieved.

o) The company has borrowings from banks and accordingly company has submitted monthly stock statements
with respective Financial Institutions. Details of security of current assets filed by the Company with banks &
their difference is as per table annexued below:

Note: The company has availed drawing power against working capital of the company as per working capital limit
sanctioned under consortium finance by Punjab National Bank. Further there is no material discrepancies have
been reported while submitting monthly drawing power statement to the lead bank. The company has not availed
any excess DP during the year as the sanctioned limit is lower than company's DP eligibility as per stock statement
submitted to bank and as per books of accounts for every month or quarter so the above discrepancies is irrelevant.

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

For KSMC and Associates Vikas Ecotech Limited

Chartered Accountants
FRN:003565N

CA Mukesh Aggarwal Balwant Kumar Bhushan Rajeev Kumar

Partner Whole-time Director Cum CEO Whole-time Director

Membership No. 089109 DIN: 09840934 DIN: 10271754

UDIN:- 25089109BMMIHS6274

Prashant Sajwani Mahavir Agarwal Dinesh Bhardwaj

Company Secretary Chief Financial Officer Director

DIN: 07719674

Date : 29-05-2025
Place : Delhi