i) Contingent Liability:

a) Guarantees by banks on behalf of the company:

- The company has given Bank Guarantee in favor of MSEB against the
electricity consumption is Rs. 235.74 Lacs.

- The company has given Bank Guarantee in favor of Director of Agriculture
Produce Marketing Committee State Pune Rs. 3 Lacs.

- The company has given Bank Guarantee in favour of Dy. Commissioner of
Customs against Imported Spare Clearance of Rs. 5.04 Lacs.

- The company has given Bank guarantee in favour of DGFT for export
obligation is Rs. 9.66 Lacs.

b) Claims against the company not acknowledged as debt:

- In respect of Income Tax appeals filed:

The Income Tax Department have raised a demand of Rs. 89.20 lacs out of
which Rs 67.09 lacs pertains to AY 2022-23 and Rs 22.11 pertains to AY 2020¬
21 against which the company has filed appeals for respective assessment
years i.e. AY 2020-21 and AY 2022-23.

- In respect of TDS returns filed:

There is an outstanding demand of 1.13 lacs reflected on the traces website.

- In respect of Goods and Service Tax dues

There is an outstanding demand by the Goods and Services Tax (GST)
authorities amounting to ^6.73 lakhs. This demand pertains to multiple
financial years, with ?4.33 lakhs relating to the financial year 2017-18, ?2.40
lakhs pertaining to the financial year 2021-22.

ii) Sundry creditors, Sundry debtors and advance are subject to confirmation.
-Further in the opinion of the management the current assets, loans and advances
have the value for realization in the ordinary course of business at least equal to
the amount at which it's stated in the accounts.

iii) The company is in the process of compiling the information about the status of
their suppliers or creditors those falls under small-scale industrial undertaking as
defined The Micro Small and Medium Enterprises Developments Act 2006
(MSMED Act).

The management assessed that the fair value of cash and cash equivalent, 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.

The carrying amount of financial assets and financial liabilities measured at
amortised cost in the financial statements are a reasonable approximation of their
fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received
or settled.

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted
prices.

Level 2 - The fair value of financial instruments that are not traded in an active
market 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 is included in level 2.

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

iii. Valuation technique used to determine fair value

*

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

I

- the fair value of interest rate swaps is calculated as the present value of the
estimated future cash flows based on observable yield curves

- the fair value of forward foreign exchange contracts and principal swap is ’

determined using forward exchange rates at the balance sheet date j

- the fair value of foreign currency option contracts is determined using

discounted cash flow analysis j

- the fair value of the remaining financial instruments is determined using

discounted cash flow analysis |

iv. Valuation processes I

The accounts and finance department of the company includes a team that ;

performs the valuations of financial assets and liabilities required for financial 5

reporting purposes, including level 3 fair values. This team reports directly to the !

chief financial officer (CFO) and the audit committee. Discussions of valuation I

processes and results are held between the CFO, AC and the valuation team 1

regularly in line with the company's reporting requirements. ^

1. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows
that may result from a change in the price of a financial instrument. The value of
a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates and other market changes that affect market risk
sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including loans and borrowings, foreign currency
receivables and payables.

The Company manages market risk through treasury department, which
evaluates and exercises independent control over the entire process of market
risk management. The treasury department recommends risk management
objectives and policies, which are approved by Senior Management and the
Audit Committee. The activities of this department include management of cash
resources, implementing hedging strategies for foreign currency exposures and
borrowing strategies.

2. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The
Company is not exposed to significant interest rate risk as at the respective
reporting dates.

' 3. Foreign Currency Risk

The Company's exposure to exchange fluctuation risk is very limited for its
purchase from overseas suppliers in various foreign currencies. Foreign
Currency Risk is risk that fair value or future cash flows of an exposure will
fluctuate due to changes in foreign exchanges rates. The Company entered into
forward exchanges contract average maturity of 90-180 days to hedge against its
foreign currency exposures relating to underlying liabilities firm commitments.
The Company has not entered into any Derivatives instruments for trading and
(P^NIL)^{1 2 3} ^^Ur^°^SeS ^^{iere is no} to-Pt currency exposure during the year

customers. Credit risk has always been managed by the Company through credit
approvals, establishing credit limits and continuously monitoring the credit
worthiness of customers to which the Company grants credit terms in the normal
course of business. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and
internal credit risk factors and the Company's historical experience for
customers.

5. Liquidity Risk

The Company's principal sources of liquidity are cash and cash equivalents and
the cash flow that is generated from operations. The Company believes that the
working capital is sufficient to meet its current requirements. Accordingly, no
liquidity risk is perceived.

*

6. Maturities of Financial Liabilities

The table below analyse the Company's financial liabilities into relevant maturity
grouping based on their contractual maturities. The amounts disclosed in the
tables are contractual undisclosed cash flow.

7. Capital Management

The Company manages its capital to ensure that Company will be able to
continue as going concern while maximizing the return to shareholders by
striking a balance between debt and equity. The capital structure of the Company
consists of net debts (offset by cash and bank balances) and equity of the
Company (Comprising issued capital, reserves, retained earnings). The
Company is not subject to any externally imposed capital requirements except
financial covenants agreed with lenders.

In order to optimize capital allocation, the review of capital employed is dotie
considering the amount of capital required to fund capacity expansion, increased
working capital commensurate with increase in size of business and also fund
investments in new ventures which will drive future growth. The Chief Financial

3) Additional Regulatory Information

a. Details of benami property held:

No proceedings have been initiated on or are pending against the Company for
holding benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and Rules made thereunder.

b. Willful Defaulter:

The Company has not been declared as willful defaulter by any bank or
financial institution or government or any government authority.

c. Relationship with struck off companies:

During the year, company has made not made any transaction with struck off
companies under section 248 of the Companies act 2013 or section 560 of the
Companies act 1956.

d. Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the
Companies Act, 2013.

e. Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an
accounting impact for the years ended March 31,2025 and March 31,2024.

f. Utilization of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other
_ person(s) or entity(ies), 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 ultimate
beneficiaries.

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

g. Undisclosed income:

There is no income surrendered or disclosed as income during the current year
in the tax assessments under the Income Tax Act, 1961, that has not been
recorded in the books of account.

h. Details of crypto currency or virtual currency :

The Company has not traded or invested in crypto currency or virtual currency
during the years ended March 31,2025.

i. Valuation of PP&E, intangible asset and investment property :

The Company has revalued its property, plant and equipment during the year
March 31,2025 at market valuation.

j. Registration of charges or satisfaction with Registrar of Companies :

There are no charges or satisfactions which are yet to be registered with the
Registrar of Companies beyond the statutory period.

k. Utilisation of borrowings availed from banks:

During the year, the company has availed borrowing facility from existing
banks, (ref note 12 and 14 of the Notes accompanying Financial Statements as at
31st March 2025).

l. Title deeds of immovable properties not held in name of the company

All the title deeds (Lease Deed) of immovable properties are held in the name
of the company excluding the land situated at Gut no 394 which is on the name
of one of the director of the company. However, the company has constructed
the Factory building on said land, the amount of construction is
unascertainable. The said fact came to light after technical verification by Bank
. and their survey team.

^ ms Space is left blank intentional^

m. Details of dues to micro and small enterprises as defined under the MSMED
Act, 2006

The information as required to be disclosed under Micro, Small and Medium
Enterprises Development Act, 2006 ('MSMED Act') has been determined to the
extent such parties have been identified on the basis of information available
with the company. The amount of principal and Interest outstanding during the
year is given below:

n. Utilisation of borrowings availed from banks

The borrowings obtained by the Company from banks have been applied for
the purposes for which such loans were was taken.

o. " Critical estimates and judgements:

The preparation of financial statements requires the use of accounting estimates
which, by definition, will seldom equal the actual results. Management also
needs to exercise judgement in applying the Company's accounting policies.
The areas involving critical estimates or judgements are: *

'The loss allowances for financial assets are based on assumptions about risk of
default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on

the Company's past history and existing market conditions as well as forward¬
looking estimates at the end of each reporting period. Details of the key
assumptions and inputs used are disclosed in note 29.

p. Audit Trail (Edit Log) in Accounting Software

The Company has maintained its books of account using accounting software
which has a feature of recording audit trail (edit log) facility. The audit trail
captures each and every change made in the accounting entries along with the
date of such change and ensures that the audit trail cannot be disabled.

In terms of our report of even For & on behalf of the

* date Board of Directors

For D M K H & Co.

Chartered Accountants___

FRN116886W

F I —dip C$*1 PA va'nA

CA Manish Kankani IJInjayRathi Rainesh Mundada

(Partner) (Managing Director) (Director)

M. No. 158020 DIN 00182739 DIN 00153255

^/V^tUpku mar Gindodiya Sorii Kurwa
Date: 21/05/2025 (Company

'Place: Mumbai (^CFO) Secretary)

M No. A69381

Date:

Place: Jalna

1

Credit Risk

2

Credit risk refers to the risk of default on its obligation by the counter party
resulting in a financial loss. The maximum exposure to the credit risk at the
reporting date is primarily from trade receivables amounting to ' 332.18 lakhs
and ' 383.47 lakhs as of March 31, 2025 and March 31, 2024 respectively. Trade

3

receivables are typically unsecured and are derived from revenue earned from