Note:7.1

During the year, the company has issued 2,31,25,625 equity shares of face value Rs. 10 each at Rs. 16 each. Further, the company has also issued 1,75,00,000 share warrants of Rs. 16 each, for which the company has received cash consideration at Rs.4 per warrant.

The Company operates in only one business segment, i.e. ‘Manufacturing ' based on the nature of the services and products, the risks and returns etc. Therefore, business segment reporting in terms of IND AS 108 or segmental reporting is not applicable.

The Company operates only in India. Therefore, geographical segment reporting in terms of IND AS 108 on segmental reporting is not applicable. The conditions prevailing in India being uniform, no separate geographical disclosure within India is considered necessary.

In the Opinion of the management, and in view of the minimal profits for the current year, losses in the earlier year and carried forward losses under the Income Tax Act, there will not be any liability towards Income tax for the current year.

In view of absence of sufficient profits and future taxable income and consideration of prudence, the Deferred Tax Asset is not recognised by the management.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

Ý Liquidity risk

Ý Market risk

Ý Interest rate risk

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

i. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

ii. Market risk

Market risk is the risk of changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is not exposed to market risk primarily related to foreign exchange rate risk.

iii. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments/loans because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The Company have borrowings in financial years 2017-18, 2018-19 without interest, accordingly there is no exposure to interest rate risk.

For the purpose of the Company's capital management, capital includes issued capital and other equity reserves . The primary objective of the Company's Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances.

The Company have borrowings of Rs.8.10 lakh in financial years 2020-21 and Rs.8.10 Lakh in financial years 2019-20. . Hence, balance equity belongs to shareholders.

There are no party which is Micro, Small and Medium Enterprises, to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

The company did not have any transaction with companies struck off under section 248 of the companies act 2013 or section 560 of the companies act, 1956 as such no declaration is required to be furnished.

There is no change or satisfactory changes which is pending for registration beyond the statutory period.

No provision for gratuity is considered necessary since none of the employees has completed the specified period of tenure.

Personal accounts are subject to confirmations.

In the opinion of the management the value of the current assets Loans and Advances will not be less than amount stated against them in the ordinary course of business.

As per para 15 of AS-22 Accounting ForTaxes on Income, deferred tax assets has not been recognised as there is a no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised,

Figures of the previous year have been regrouped/reclassified/rearranged, wherever necessary, to confirm with the current year's presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year's financial statements and to be read in relation to the amounts and other disclosures to the current year.

During the year under review Unsecured Loan from Mr. Avinash Jajodia, Director of the Company has been written Off as decided by the management and verified by the Director.

During the year under review the Company has made allotment of 1,75,000 fully conertible Share Warrants of each at an issue price of Rs.16 per warrant including premium of Rs.6.00 per share warrant. The Money received against share warrants was of Rs.

700 lacs during the year5 under review. The Company fled Form No. PAS-3-REturn of Allotment and has wriiten Authorised Captial as 1250000 Equity Shares of Rs 10.00each of Rs. 12500000 in place of 83000000 Equity Shares Of Rs.10 each of Rs.8300000.