2.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized when there is a present obligation as a result of past events when it is probable that there will
be outflow of resources and reliable estimation can be made of the amount of obligation. Contingent liabilities are disclosed
when the company has a possible obligation or a present obligation and it is probable that a cash outflow will not be
required to settle the obligation. Contingent assets are neither recognized nor disclosed in the financial statements.

2.15 EMPLOYEE BENEFITS

SHORT TERM EMPLOYEE BENEFITS

Employee benefits such as salaries, wages, compensated absence, bonus, ex-gratia, incentives, etc. falling due wholly
within twelve months of rendering the service are classified as short-term employee benefits and are recognised in the
period in which the employee renders the related service and are measured at the amounts expected to be paid when the
liabilities are settled.

COMPENSATED ABSENCES

The company has a policy on compensated absences which are accumulating, but non-vesting. Since the employee has
unconditional right to avail the leave, the benefit is classified as a short term employee benefit. The company records an
obligation for such compensated absences in the period in which the employee renders the services that increase this
entitlement.

Liability in respect of compensated absences becoming due or expected to be availed is recognized on the basis of
estimated amount required to be paid or estimated value of benefit expected to be availed by the employees.

POST EMPLOYMENT EMPLOYEE BENEFITS

i. Defined Contribution Plans

A defined contribution plan is a post-employment benefit under which an entity pays a specific contribution to a
separate entity and has no obligation to pay any further amounts. Retirement benefits in the form of provident fund
and The company's superannuation scheme, state governed provident fund scheme, employee state insurance scheme
and employee pension scheme are defined contribution plans. The contribution paid/payable under the schemes is
recognised during the period in which the employee renders the related service. The company has no further obligations
under these plans beyond its monthly contribution.

ii. Defined Benefit Plans

Gratuity is a post employment benefit and is in nature of defined benefit plan. The liability in respect of gratuity is
, calculated using the estimation of present value of gratuity liability and accordingly provision is made in the accounts.
However, the company has not taken any term policy or created gratuity trust.

2.16 EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax attributable to the shareholders by the weighted
average number of equity shares outstanding during the period.

2.17 CASH FLOW STATEMENT

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transaction of non¬
cash nature, any deferral or accrual of past or future operating cash receipts or payments and item of incomes or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.

Additional Information:

5.1 Repayment terms of loans & in case of secured loans, security details also.

(a) All SBI Term Loans

Security Details: All SBI term loans are primary secured by hypothecation charge over entire plant and machinery of the
company, both present and future. Further, secured by hypothecation charge over entire current assets of the company,
both present and future and equitable mortgage of collateral securities viz, industrial property owned by company and
other properties owned by guarantors. Also, they are secured by personal guarantee of all the directors and guarantors
of the Company.

Repayment Details :

SBI Machinery Loan (Old): 96 monthly Installments (after moratorium period of 12 months) started from February
2017. Last installment will be due in January 2025. First 12 installments of ? 33.00 Lacs, then second 12 installments of
? 36.00 Lacs, then third 12 installments of ? 38.00 Lacs, then 5 installments of ? 40.10 Lacs, then 47 installments of ?
41.15 Lacs and last installment of ? 39.00 Lacs.

SBI Covid Loan (CCECL): 18 monthly installments of Rs. 4.17 Lacs commencing from November 2020 and last
installment of Rs. 4.11 Lacs due in April, 2022.

SBI Covid Loan (GECL Loan): 36 monthly installments of Rs. 14,91,667/- after moratorium period of 12 months
commencing from September, 2021 and last installment due In August, 2024 .

SBI Machinery Loan (Expansion): 72 monthly installments after moratorium period of 12 months commencing from
January, 2022 and last installment will be due in December, 2027. First 37 installments of ? 10.00 Lacs, then 34

(b) SIDBI Solar Loan (Secured)

Security Details: SIDBI Solar loan is primary secured by hypothecation charge over all equipment, plant and machineries
and other assets of borrower which are proposed to be acquired under financing scheme.. Further, secured by fixed
deposit receipts amounting to rs.1.43 Crores.Also, they are secured by personal guarantee of all the directors and
guarantors of the Company.

Repayment Details :

54 monthly Installments (after moratorium period of 6 months) of Rs.l0,50,600/-started from July 2024. and Last
installment will be due in December 2028.

Notes:

1. As per information and explanation given to us by the management, Goods and service tax department confiscated
goods for non-generation of E-way bill, for which order has been paid dtd. 27.08.2019 and demand has been raised of
Rs.15,56,034/-, which has not been provided for in the accounts. The company has preferred an appeal against the
order to High Court (Ahemdabad), however the company has paid Rs.1,35,308/- as on 31.03.2021 under dispute

2. As per information and explanation given to us by the management, Goods and service tax department noticed excess
availment of Input tax credit for Financial Year 2017-18, for which order has been Issued dtd. 23.12.2023 and demand
has been raised of Rs.20,87,473/-(Including Interest of Rs. 10,09,282 and Penalty of Rs. 98,018, which has not been
provided for in the accounts. The company has preferred an appeal against the order to Appellate authority, however
the company has paid Rs.98,018/- as on 14.03.2024 under dispute against the demand.

Note : 33 | Provident Fund

The company makes monthly contribution to Employee Provident Fund Organization (EPFO) equal to a specified percentage of
the covered employee's salary. The monthly contribution made by the company is recognized as a expense. The company has no
further obligation beyond its monthly contribution.

Note : 34 | Provision for gratuity

The company provides for gratuity payable to eligible employees on the basis of number of years completed by eligible
employees and last salary drawn by them. The company has neither created any gratuity fund trust nor taken any policy from
Insurance Company in this respect.