m) Provisions:

Provisions are recognised when there is a present legal or constructive obligation that can be estimated reliably,
as a result of a past event, when 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.
Provisions are not recognised for future operating losses.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to
the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related
provisions.

Provisions ase reviewed at each reporting date and adjusted to reflect the current best estimate. If itis no
longer probable shat an outflow of economic resources will be required to settle the obligation, the provisiobs
are rebersed. Where the effect of the time of money is material, provisions are discounted using a current pre¬
tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase
in the provisions due to the passage of time is recognised as a finance cost.

n) Contingencies:

Where it is not probable that an inflow or an outflow of economic resources will be required, or the amount
cannot be estimated reliably, the asset or the obligation is not recognised in the statement of balancb sheet
and is disclosed as a contingent asset or contingent liability. Possible outcomes on obligations/rights, whose
existence will only be confirmed by the occurrence or non-occurrence of one: or more future events are also
disclosed as contingent assets or contingent liabilities.

0) Taxes on Income:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Curreet tax includes taxes to be
paid on the dtofit earned during the year and for the prior periods.

Deferred income taxes are provided based on the balance sheet approach considering the temporary
differences between the tax bases of assets and liabilities and their carrying amonnta fo r financial reporting
purposes at tlee reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balaeee sheet: dease:. Deferred tax assets are recognised only to the extent that theae is reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be realised. In
situotions where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets
are recognised only if it is probable that they can be utilised against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes off
the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient future
taxableincomo will be availbble against which deferred tax asset can be realized. Any such write-off is reversed
to the extent that it becomes reasonably certain that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right axists to set otf current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

p) Prior period items:

In case prior period adjustments are material in nature, the company prepares the restated financial statement
as required under Ind AS 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors”. In case of
immaterial items, such adjustments are shown under respective itemsinthe Stntement of Profitand Loss.

q) Cash and cash equivalents:

Cash and cash equivalents include cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investment with original maturities of three months orless that are readily convertible to a known
amount of cash which are subject to an insignificant risk of changes in value and are held for meeting short-term
cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company’s cash management.

r) Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the Executive
Management/Chief operating decision maker (“CODM”).

s) Financial instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets:

a. Initial recognition and measurement:

All financial assets are recognised initially at fair value plus, in the case of financial asspts not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisitiop of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of
profit orloss. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the
date that the company commits to purchase or sell the asset.

b. Subsequent measurement:

For the purpose of subsequent measurement, financial assets are classified in to following categories

a. Debt instruments at amortised cost

b. Debt Instruments at fair value through profit and loss (FVTPL)

c. Equity instruments at fair value through profit and loss (FVTPL)

a. Debts Instruments at amortised cost:

A ‘Debt Instrument' is measured at the amortised cost if both the following conditions are met:

i. The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

ii. Contractual terms of the asset give rise on specified dates to casd flows that are solely
payments of principal and interest (SPPI) on the principal amou nt outstfnding.

Aftee initial measurement, such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method.

Amortised costis calculated bytakiag into tccount any discount or premium on acquisition and
fees or costs that are an integral part of EIR. The EIR amortisation is included in other income
in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

In. Debt Instruments at Fair value through profit and loss (FVTPL):

As per the Ind AS 101 and Ind AS 109, the Company is permitted to designate the p reviously
recognised financial asset at initial recognition irrevocably at fair value through profit andloss on
the basis of fact and circumstances that exists on the date of transition to Ind AS. Debt instruments
included within the FVTPL category are measured at fair value with all changes recognised in the
statement of Profit and Loss.

c. Equity instruments at fair value through profit and loss (FVTPL):

Equity instruments in the scope of Ind AS 109 are measured at fair value. The classification is made
on initial recognition and is irrevocable. Subsequent changes in the fair values at each reporting date
are recognised in the Statement of Profit and Loss.

c. Derecognition:

A financial asset or^- where applicable, a part of a financial asset is primarily derecognised when:

a. The rights to receive cash flows from the asset have expired, or

b. The company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a‘pass-
through' arrangement; and either (a) the Company has transferred substantially all the risks and
rewards of the asset, or (b) the company has neither transferred nor retained substantially all the
risks and rewards of the asset but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates, if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the company continues to recognise the
transnerred asset to the extent of the company's continuing involvement. In that case, the company
also recognises an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the company has retained.

d. Impairment of financial assets:

In accordance with Ind AS 109, the Company applies the expected credit loss (ECL) model for
measurement and recognition of impairment loss on financial instruments.

Expected credit loss is the difference between all contractual cash flows thrt are due to the company in
accordance with the contract and all the cash flows that the entity expects to receive.

The management uses a provision matrix to determine the impairment loss on the portfolio of trade and
other receivables. Provision matrix is based on its historically observed expected credit loss rates over the
expected life of the trade receivables and is adjusted for forward looking estimates.

The expected creditloss allowance or reversal recognised during the period is recognised as income or
expense, as the case may be, in the statement of profit and loss. In case of balance sheet, it is shown as an
adjustment from the specific financial asset.

Firancial liabilities:

a. Initial recogn ition and measurement:

Atinitial recognition, all financial liabilities are recognised at fair value and in the case of loans, borrowings and

payables, tret of directly attributable transaction costs.

b. Subsequent measurement:

i. Financi al liabilities at fair value through profit or loss

Financial liabilities at fairvalue through pnofit err loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Gains or losses on
liabiiities held for trading are recognised in the profit or loss. The company does not designate any financial
lihb ility at fair value through profit or loss.

ii. Financial liabilities at amortised cost:

Amortised cost, in the case of financial liabilities with maturity more than one year, is calculated by
discounting the future cash flows with an effective interest rate. Effective interest rate amortisatinn is
included as finance costs in the statement of profit and loss. Financial liability with maturity of less than
one year is shown at transaction value.

c. Derecognition:

Financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires.
The difference between the carrying amount of a financial liability that has been extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit car loss as other income or finance costs.

Reclassification:

The Company (determines classification of financial assets and liabilities on i nitial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.
If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification
date which is the first day of the immediately next reporting period following the change in business model .
The Company does not restate any previously recognised gains, losses (including impairment gains or losses)
orinterest.

t) Fair Value Measurement:

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a Nability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based can
the presumption that the tran sactio n tee sell the asset or transfer the liability takes place either

• in the principal market for such asset or liability, or

• in the absence of a principal market, in the most advantageous market which is accessible to 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 valce measurement of a non-financial asset takes into account a market pa rticipant'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 availableto measure fair value, maximising the use of relevant observable inputs and minimising the use of
uno bservableinputs.

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

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

b. Level 1 - Valuation techniques for which the lowest level input that is significant to the fair value
m easurements is directly or indirectly observable.

c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liablities that are recognised in the financial statements on recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by ce assessing the categorization
(based on the lowest lhvel input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

41. Financial FRisk Management objectives and policies:

The company is exposed to financial risks arising from its operations and the use of financial instruments. The key
financial risksinclude market risk, credit risk and liquidity risk. The company's risk manage ment policies focus on the
unpredictability of financial risks and seek guidelines, where appropriate, to minimize the potential adverse impact
of such risks. There has been no change to the company's exposure to these financial risks or the manner in which
it manages and measures the risks.

The following sections provide the details regarding the Company's exposure to the financial risks associated with
financial instruments field in the ordinary course of business and the objectives. policies and processes for the
m anagement of these risks.

The Company's principal financial liabilities comprise loans and borrowings, trade, and other payables. The main
pnrpose of these financial liabilities is to finance and support the Company's operations. The Company's principal
financial assets include loans, trade and other receivables and cash and cash equivalents which are derived from its
operations.

The company is exposed to market risk, credit risk and liquidity risk. The Company's management oversees the
mitigation of the risks. The Company's financial risk activities are governed by appropriate policies and procedures
and those financial risks are identified, measured, and managed in accordance with the Company's pklicies and
risk objectives. The management / board reviews and agrees policies for managing each of these risks, which are
summarized belew.

A. Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and
other price risks such as equity risk. Financial instruments affected by market risk include loans and advances,
deposits, investments in debt securities, mutual funds, and other equity funds.

a. Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's
financial instruments will fluctuate because of changes in market interest rates. The Company's exposure
to interest rate risk arises primarily from the loans and advances given by the company, investment in debt
securities, investment in debt mutual funds and cash and cash equivalents.

The company's policy is to manage its interest rate risk by investing in fixed deposits, debt securities and
debit mutual funds. Further, as there are no borrowings the company's policy to manage its interest cost
does not a rise.

The comprny is not exposed to significant interest risk as at the respective reporting dates.

b. O ther price risk:

Other price risk is the risk that the fair value or future cash flows of the Company’s financial instruments
will fluctuate because of changes in market prices (other than those arising from interest rate risk or
currency risk) whether those changes are caused by factors specific to the individual financial instrument
or its iss uer or^- by factors affecting all similar financial instrum ents traded in the market.

The company invests surplus cash funds in Liquid, Debt, Equity and Balanced mutu al funds. Mutual fund
investments are susceptible to market price risk mainly arising from changes in the interest rates or
market yields which may impact the return and value of such investments. However due to the very short
tenor of the underlying portfolio in the liquid schemes they do not pose any significant price risk.

B. Credif risk:

Credit risk ir the risk of loss that may arise on outstanding financial instruments when a counterparty defaults
on its oblirations. The Company's exposure to credit risk arises primarily from trade and other receivables.
For other financial assets (including investment securities cash and short-term deposit) the Company minimise
credit risk by dealing exclusively with high credit rating counterparties. The Company's objective is ter seek
continurl revenue growth while minimising losses incurred due to increased credit risk exposure. The Company
trades only with recognised and creditworthy third parties. It is the Company's policy that all customers who
wish ro trade on credit terms are subject to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the Company's exposure
tee bad debts ir not significant.

a. Exposure Ao credit risk:

At the end of the reporting period the Company's maximum exposure to credit risk is represented by
the carrying amount of each class of financial assets recognised in the statement ol financial positior. No
oth er financial assets carry a significant exposure to credit risk.

la. Credit riskconcentration profile:

At the end of the reporting period there were no significant concentrations of credit risk. The maximum
exposures to credit risk in relation to each class of recognised financial assets is represented by the
cnrrying amount of each financial assets as indicated in the balance sheet.

c. Financial assets that are neither past due nor impaired:

Trade and other receivables that are neither past due nor impaired are creditworthy debtors with a good
payment record with the Company. Cash and short-term deposits investment securities that are neither
past due nor impaired are placed with or entered with reputable banks financial institutions or companies
with high credit ratings and no history of default.

d. Financial assets that are either past due or impaired:

Trade receivables that are past due or impaired at the end of the reporting period for which lifetime
expected credit loss has been provided by the company according to its policy. These are shown in the
balance sheet at carrying value.

C. Liquid ity risk:

The risk that anentity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset.

The company ensures that it has sufficient cash on demand to meet expected operational demands
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances
that cannot reasonably be predicted.

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

Nochanges were made in the objectives, policies, or processes for managing capital during the years ended 31 March
2024 and 31March2023.

per our report of even date for and on behalf of the Board

for K.S. RAO & CO., Sheshadri industries limited

Chartered Accountants

Firms' (Registration Number: 003109S

J.K. Agarwal

Managing Director & CFO

V VENKATES WARA RAO

Partner

Membership Number: 219209

Sushma Gupta

Director

Place: Hyderabad Rozie Sushant Mukharjee

Date : May 28, 2024 Company Secretary