2.3.18 Provisions, Contingent Liabilities and Contingent Assets

(i) Provisions are recognized 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised
when, and only when, it is virtually certain that reimbursement will be received if the Company settles the obligation. The reimbursement is treated as
a separate asset. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement.

(ii) A contingent liability is not recognised in the financial statements, however, is disclosed, unless the possibility of an outflow of resources embodying
economic benefits is remote. If it becomes probable that an outflow of future economic benefits will be required for an item dealt with as a contingent
liability, a provision is recognised in the financial statements of the period (except in the extremely rare circumstances where no reliable estimate can
be made).

(iii) A contingent asset is not recognised in the financial statements, however, is disclosed, where an inflow of economic benefits is probable.

(iv) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.1.19 Segment Reporting

Segments are identified based on the manner in which the Company's Chief Operating Decision Maker (‘CODM') decides about resource allocation and
reviews performance.

(1) Segment Revenue includes sales and other income directly identifiable with/ allocable to the segment including inter- segment revenue.

(2) Income and Expenses that are directly identifiable with/ allocable to the segments are considered for determining the segment result. Income and
Expenses not allocable to segments are included under unallocable expenditure.

(3) Segment results includes margin on inter segment sales.

(4) Segment assets and Liabilities include those directly identifiable with the respective segments. Assets and liabilities not allocable to any segment are
classified under unallocable category.

2.4 Current - Non-Current Classification

All assets and liabilities have been classified as current and non-current on the basis of the following criteria:

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date;
or

d) it is cash or cash equivalent unless it is restricted from being exchanged or use to settle a liability for at least twelve months after the reporting date.
Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting date; or

d) there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the
option of the counterpart, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities

All other liabilities are classified as non-current

Operating Cycle

Operating cycle is the time between the acquisition of assets for processing/servicing and their realisation in cash or cash equivalents. Based on the nature
of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

2.5 Use of Accounting Estimates, Judgements and Assumptions

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) require management to make judgements, estimates and
assumptions in the application of accounting policies that affect the reported amount of income, expenses, assets and liabilities and disclosure of contingent
liabilities.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis and the effect of revision to accounting estimates is
recognized prospectively from the period in which the estimate is revised.

Significant accounting estimates, Judgements, and assumptions

i. Income taxes

Significant judgement is required in determination of provision for current tax and deferred tax e.g. determination of taxability of certain incomes and
deductibility of certain expenses etc. The carrying amount of income tax assets/liabilities is reviewed at each reporting date. The factors used in
estimates may differ from actual outcome which could lead to signification adjustment to the amounts reported in financial statements.

ii Defined Benefit Plans and other post-employment benefits

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future, salary increases, mortality rates and future pension increases. Due to the complexities involved in the
valuation and its long-term nature, the obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.

iii. Inventories

Management has estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date.
The future realization of these inventories may be affected by market driven changes.

iv. Fair value measurement

Some of the Company's assets and liabilities are measured at fair value for financial reporting purposes. When the fair values of financial assets and
financial liabilities cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques specified
in the accounting standard, which involve certain judgements and assumptions.

v. Provisions / Contingencies

Significant judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the
Company which involves judgements around estimating the ultimate outcome of such past events and measurement of the obligation amount etc.
The Company assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever
necessary.

vi. Useful lives of property plant and equipment and Intangible assets

The estimated useful lives of property plant and equipment and intangible assets are based on a number of factors including the effects of obsolescence,
internal assessment of user experience and other economic factors (such as the known technological advancements, commercial obsolescence of
the asset etc.). The useful life of property plant and equipment and intangible assets is reviewed on an ongoing basis.

vii. Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment is based on estimates and assumptions regarding the expected market outlook and
expected future cash flows. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could
result in impairment.

2.6 Applicability of new and revised Ind AS

Ministry of Corporate Affairs (“MCA”) notifies new accounting standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. As at March 31, 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.

* On the recommendation of the Board of Directors of the Company, the Shareholders of Company in the annual general meeting
held on 17.08.2024 approved the sub-division/ split of existing 1 Equity Share of face value of t10/- each fully paid up into 10 Equity
Shares of face value of t1/- each fully paid up by alteration of Capital Clause of the Memorandum of Association of the Company.
Accordingly, on and from the record date i.e.13th September 2024, the equity shares of the Company have been sub- divided, such
that 1 (one) equity share having face value of t 10/- (t ten only) each, fully paid-up, stands sub-divided into 10 (ten) equity shares
having face value of t1/- (t one only) each, fully paid-up, ranking pari-passu in all respects.

On account of sub-division of equity Shares of the Company, the the Authorized Capital of the Company has changed to t35,00,00,000/-
(Rupees Thirty Five Crore only) divided into 15,00,00,000 (Fifteen Crore Only) Equity Shares of t1/- each and 2,00,00,000 (Two
Crores only) Redeemable Preference Shares of t10/- each.

i) Rights,preferences and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of t 1 per share. Each share holder is entitled for one vote
per share. The dividend if any proposed by the Board of Directors will be subject to approval of the share holders in the ensuing
Annual General Meeting except interim dividend which is approved by Board of Director In the event of the liquidation of the
company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion of number of equity shares held by each equity share holder.

* On the recommendation of the Board of Directors of the Company, the Shareholders of Company in the annual general meeting
held on 17.08.2024 approved the sub-division/ split of existing 1 Equity Share of face value of t10/- each fully paid up into 10
Equity Shares of face value of t1/- each fully paid up by alteration of Capital Clause of the Memorandum of Association of the
Company. Accordingly, on and from the record date i.e.13th September 2024, the equity shares of the Company have been
sub- divided, such that 1 (one) equity share having face value of t 10/- (t ten only) each, fully paid-up, stands sub-divided into
10 (ten) equity shares having face value of t1/- (t one only) each, fully paid-up, ranking pari-passu in all respects.

Footnotes:

(i) Nature and Purpose of Reserve

1) Equity Component of Compound Financial Instruments

The fair value of the liability component of non- convertible preference shares issued by the company has been determined using a
effective interest rate for an equivalent non-convertible instrument at the inception and the said amount has been classified as a financial
liability.The remainder of the proceeds is recognised as 'Equity Component of Compound Financial Instruments' in other equity as per
provisions of Ind AS 32.

2) Capital Redemption Reserve

Capital redemption reserve is created out of profits for redemptions of capital.

3) Securities Premium

This represents amount of premium recognised on issue of shares to shareholders at a price more than its face value. The reserve can
be utilised in accordance with the provisions of the Companies Act 2013.

4) General Reserve

This represents retained earnings which are kept aside out of company's profits. It is a free reserve which can be utilized to meet any future
contingencies and to pay dividend to shareholders.

5) Retained Earnings

Retained earnings repersents to net earnings not paid out as dividend. The amount is available for distribution of dividend to its equity
shareholders It also includes balance of remeasurment of net defined benefit obligation (net of taxes)

‘Liability Component of Compound Financial Instruments pertains to 5% redeemable non-cumulative non-convertible preference
shares of face value of ?10/- each fully paid up issued by the Company which have been accounted for as Compound Financial
Instruments in accordance with applicable Ind AS. For other details of such preference shares, refer footnote (ii) of note 13 'Other
Equity'.

Further, liability component of such Compound Financial Instruments includes adjustment on account of modification of terms of
redemption of preference shares.

Refer Note 48 for Classification of Financial liabilities.

Refer note 50 for information about market risk and liquidity risk in respect of financial liabilities.

Notes:

i) Nature of security against loans

A. Term Loans
Primary Security:-

Hypothecation of entire Property, Plant and Equipment of the Company except some part of land at Bathinda (both present
and future) on first pari passu charge basis.

Collateral Security:-

a) Hypothecation of entire Current assets of the company (both present and future) on second pari passu charge basis.
Further loans are also secured by equitable mortagage of industrial plots situated at Village Barmalipur, Ludhiana
owned by Sh. Munish Avasthi, Chairman and Managing Director of the Company.

b) All term loans (other than vehicle loans) are further guaranteed by Sh. Munish Avasthi, Chairman and Managing
Director of the Company.

B. Vehicle Loan

The vehicle loans are secured against hypothecation of respective vehicles.

# In case of discounted trade receivables, where the significant risks and rewards related to discounted trade receivables are not
transferred, the Company continues to recognize the carrying amount of discounted trade receivables in current assets and the
amount received from bank is recognized as unsecured borrowings.

Refer Note 48 for Classification of Financial liabilities.

Refer note 50 for information about market risk and liquidity risk in respect of financial liabilities.

i) Nature of security against Working Capital Loans
Primary Security:-

Hypothecation of stocks of raw material,stock in process and finished goods, receivables/book debts and other current assets
(both present and future) on first pari passu charge basis.

Collateral Security:-

Hypothecation of entire fixed assets except some part of land situated at Bathinda of the company (both present and future) on
second pari passu charge basis. Further loans are also secured by equitable mortagage of industrial plots situated at Village
Barmalipur, Ludhiana owned by Sh. Munish Avasthi, Chairman and Managing Director of the Company. All loans are further
guaranteed by Sh. Munish Avasthi, Chairman and Managing Director of the Company.

*Amount deposited/adjusted against outstanding demand is ?110.90 Lakhs (Previous year ?110.90 Lakhs) shown under refund
receivable in note no. 24 of Income Tax Liabilities/Assets.

**Amount deposited/adjusted against outstanding demand is Nil (Previous year ?0.034 Lakhs) shown under Recoverable from
Govt authorities in note no. 11 of Other Current Assets.

Above figures are exclusive of interest accrued.

Note: Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decision
in the company's favour in respect of all the items listed above and hence no provision is considered necessary against the
same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the
company's financial position and results of operations. Future cash flows in respect of above will be determined only on receipt
of judgments/decisions pending with revenue/ judicial authorities.

NOTE - 39

Impairment of Assets

In accordance with Ind AS-36 on “Impairment of Assets” the Company has assessed as on the balance sheet date, whether there
are any indications with regard to the impairment of any of the assets. Based on such assessment there is no such indication and
therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the
books of account.

Defined Benefit Plan
Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. This defined
benefit plan of gratuity is administered by a separate trust that is a legally separate entity. The Company makes annual
contributions to the trust and trust is responsible for investments with regard to the assets of the trust. The contributions are
invested by the trust in a scheme with Life Insurance Corporation of India. The Company accounts for the liability for gratuity
benefits payable in the future based on actuarial valuation using projected unit credit method.

These plans typically expose the Company to actuarial risks such as investment risk,salary risk, interest rate risk and longevity
risk.

(i) Investment risk

If the actual return on plan assets is below the expected return, it will create plan deficit

(ii) Salary risk

The present value of defined benefit plan is calculated with the assumption of salary increase of participants in future.
Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan's liability.

(iii) Interest risk

The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in value of the liability.

(iv) Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy of the plan participants will increase the plans liability.

The Following table set out the funded status of the gratuity plan and amounts recognised in the balance sheet and other
disclosures as required under Ind AS 19 'Employee benefits':