2. Terms / rights attached to equity shares

The Company has a single class of Equity sgares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company decalres and pays dividend in Indian rupees. The Board of Directors have not declared dividend for the year ending 31st March,2025.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

Footnote:

a) The Company has availed Term Loan under GECL Scheme from Central Bank of India at 7.50% with an EMI of Rs. 2.50 Lakhs starting from 30.06.2021 .It secured by primary and collateral securities

b) The Company has also availed Bank Overdraft of Rs. 450 Lakhs with Sub-limit of Export Packing Credit (EPC) Facility of similar amount from Central Bank of India at 9.00% p.a.

c) The company has availed the Car Loan from Central Bank of India at 8.85% with an EMI of Rs.0.49 Lakhs starting from 29.02.2024. It secured by the securities.

1. Primary Security

Hypothecation of Stocks/Inventory & Book Debts/Receivable.

2. Collateral Security

- Land and Building at P No. 11,12,13 & 14, S. No. 329/2, Malegaon Dist. Nashik Owned by Mr. Madhusudan Lakhotiya -Plot No. 158 - 159, S. No. 670/A/2, at Shri Samarth Audyogik Vasahat Ltd., Pimpalgaon, Tal. Niphad, Dist. Nashik owned by Mr. Shamsunder Lakhotiya

-Plot No. 158 - 159, S. No. 670/A/2, at Shri Samarth Audyogik Vasahat Ltd., Pimpalgaon, Tal. Niphad, Dist. Nashik owned by the Company.

a) The average credit period on purchases is 1 to 6 months.

b) The above figures of Trade Payables are shown as net of advances paid to the local/foreign suppliers.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium Enterprises Development Act, 2006 :

c) Trade payables include Rs. Nil as at 31st March, 2025 due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED).

d) No interest was paid / payable to micro and small enterprises during the year.

e) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

(ii) Valuation technique used to determine fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

a) Fair value for financial investments are valued using closing NAV.

b) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities

approximate their carrying amounts largely due to the short-term maturities of these instruments.

c) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values.

d) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(iii) Fair value hierarchy

This section explains the judgements and estimates made in determing the fair values of the financial instruments that

are: (a)recognised and measured at fair value and (b) measured at amortised cost and for which fair values are

disclosed in the financial statements.To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments,traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market(for example, traded bonds,over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity -specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument are included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data,the instrument is included in Level

3. This is the case for unlisted equity securities,contingent consideration and indemnification asset included in Level 3.

The Company's policy is to recognise transfers into and transfer out in fair value hierarchy levels at the end of the reporting period.

Note 23 : Financial Risk Management Financial Risk Factors

The Company's principal financial liabilities comprise borrowings and trade payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company has loan, trade and other receivables, cash and short-term deposits that arise directly from its operations. The Company's activities expose it to a variety of financial risks:

i) Credit Risk

Credit risk arises from cash and cash equivalents and deposits with bank(s) / other company, as well as credit exposure to counter party that will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

ii) Market Risk

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company's activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

(a) Foreign Exchange Risk

The company is engaged in exports business and imports are very minimal for which hedging instruments are not required.

iii) Liquidity Risk

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations subject to the compliance with loan facilities. Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availibility of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. Management monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows.

For the purposes of the Company's capital management, capital includes issued capital and all other equity reserves. The Company's objectives when managing capital are to:

(a) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.

(b) Maintain an optimal capital structure to reduce cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by equity capital. No changes were made in objectives, policies or processess during the year ended March 31, 2025 and March 31, 2024. _{INR (In} ,_akhs)

Reasons for the change in the ratio above 25%:-

1. Current liabilities increased at a higher rate than current assets, indicating tighter short-term liquidity.

2. Increase in borrowings or decrease in equity due to lower retained earnings or higher debt funding

3. Improved profitability or reduced debt servicing burden.

4. Significant rise in profit for the year or a drop in average equity base.

5. Sharp increase in cost of goods sold or efficient inventory management leading to faster turnover.

6. Increase in purchases or faster payments to suppliers, possibly to avail discounts or maintain creditworthiness

7. Substantial improvement in profitability due to cost control, better pricing, or revenue growth.

8. Strong rise in operating profits or better capital utilization with relatively stable capital employed.

Note 33 : Rounding Off

Figures of Current and Previous year are rounded off to nearest thousand, as per the requirements of Schedule III.

Figures of Previous year have been regrouped / reclassified in order to make them comparable with current year figures, wherever necessary.

Note 35 : Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Note 36 : Corporate Social Responsibility (CSR)

As per the provisions of section 135 of the Companies Act 2013, the company is not mandatorily required to constitute a Corporate Social Responsibility Committee and spend funds for the Corporate Social Responsibility (CSR) activities. Accordingly, disclosure requirement is not applicable.

Note 37 : Undisclosed Income

The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, disclosure requirement is not applicable.

b) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

c) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries