(q) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the
time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related
asset is recognized.

(r) Fair value measurement

In determining the fair value of its financial instruments, the Company uses following hierarchy and assumptions that
are based on market conditions and risks existing at each reporting date. Fair value hierarchy:

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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) 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— Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

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 re-assessing categorization (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

(s) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares
outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for
events of bonus issue. For the purpose of calculating diluted earnings per share, the net profit or loss for the year
attributable to equity shareholders and the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

(t) Cash dividend to equity holders of the Company

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is
authorized and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as
a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors.

Disclosure required under Section 186(4) of the Companies Act 2013:

Disclosure pursuant to Securities Exchange Board of India (Listing Obligation and Disclosure Requirement and
Regulation 2015) and Section 186 of the Companies Act 2013 is disclosed in note no: 30

30. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of current
assets, loans and advances in the ordinary course of business, would not be less than the amount at which the same are
stated in the Balance Sheet.

33. Segment Reporting:

The Company has primary business of trading and manufacturing of knitted products and chemicals, which as per Indian
Accounting Standard - 108 on 'Operating Segments' is considered to be the only reportable business segment. The
Company is operating in India which is considered as a single geographical segment.

34. Financial risk management objectives and policies

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance and support Company's operations. The Company's principal financial assets
include inventory, trade and other receivables, cash and cash equivalents and land advances and refundable deposits
that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.

A. 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 two types of risk: interest rate risk and other price risk, such as
equity price risk and commodity/ real estate risk. Financial instruments affected by market risk include loans and
borrowings and refundable deposits

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's exposure to the risk of changes in market interest
rates relates primarily to the Company's long-term debt obligations with floating interest rates. The Company
manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Company does not enter into any interest rate swaps.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including refundable joint development deposits, security
deposits, loans to employees and other financial instruments.

Trade receivables

i. Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay
advances before transfer of ownership, therefore, substantially eliminating the Company's credit risk in this
respect.

ii. Receivables resulting from other than sale of properties: The firm has established credit limits for customers
and monitors their balances on ongoing basis. Credit Appraisal is performed before leasing agreements are
entered into with customers. The risk is also marginal due to customers placing significant amount of security
deposits for lease and fit out rentals.

Financial Instrument and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's Finance
department in accordance with the Company's policy. Investments of surplus funds are reviewed and
approved by the Company's Board of Directors on an annual basis. The Company's maximum exposure to
credit risk for the components of the statement of financial position at 31 March 2025 and 2024 is the carrying
amounts.

C. Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank deposits and loans.

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

35. Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and
other payables, less cash and cash equivalents.

39. Goods and Services Tax has been reduced from sales in the Statement of Profit & Loss.

40. Outstanding dues to the Micro, Small & Medium Enterprises as defined under the Micro, Small & Medium Enterprises
Development Act, 2006, has been disclosed to the extent information obtained from the vendors.

41. Previous year's figures have been regrouped and rearranged, wherever found necessary.

AS PER OUR REPORT OF EVEN DATE ATTACHED

For S. Bhalotia & Associates For and on behalf of the BOD of CDG PETCHEM LIMITED

Chartered Accountants
FRN:325040E

Sd/ Sd/

Manoj Kumar Dugar Rajesh Kumar Dugar

Sd/ Managing Director & Chairman Director

CA. Binod Kumar Sahoo (DIN:00352733) (DIN: 00730059)

Partner

Membership No: 305406

Place: Hyderabad Sd/ Sd/

Date: 29-04-2025 Alankritha Bommakanti Nikhil Agarwal

UDIN: 25305406BMIIXH8371 Company Secretary Chief Financial Officer