u AS - 29 Provisions and Contingent Liabilities and Contingent Assets

A Provision should be recognised when an enterprise has a present obligation as a result of a past event or 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.

Contingent Liability is:

A. A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the enterprise.

Or

B. A present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(ii) a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognised nor disclosed in the financial statements.

(a) In the opinion of Management and to the best of our knowledge and belief the value of realisation of Loans, Advances and Current Assets in ordinary course of Business will not be less than the amount for which they are stated in the Balance Sheet.

(b) In the opinion of Management and to the best of our knowledge and belief that provision for all known liabilities have been made in the accounts and there does not exist any other liabilities, contingent or otherwise except whatever have been accounted for or stated in the Balance Sheet.

(c) Balance of Trade Receivables(Dr & Cr balance) , Trade Payables (Dr & Cr balance) , Loans & advances Given/taken and other current assets including in the ordinary course of business is subject to confirmation and reconciliation.

(d) During the Financial Year 2016-17, there was a Loss of Stock by fire amountung to Rs. 6.25 Crore (approx.) and the Insurance claim settlement is pending with the Insurance company till date. However Company has written back stock of Rs. 19,98,833 as per actuarial report dated 14.05.2018 which was previously not taken in account in Books of accounts.

(e) During the month of May 2020 (i.e, FY 2020-21) the company had to face losses in terms of damage in stock, Plant & Machinery and factory shed due to Amphan Cyclone for which claim has been filed with the Insurance Companies amounting to Rs. 4.18 Crores against which the Insurance company has settled the claim at Rs. 1.80 crore.

(f ) Balanc e with Government authorities includes VA T Receivable of Rs.1.72 Crores shown in the financial statement is subject to the realisation fr om relevant: authorities.

(g) Company has made deferred Trade Payables amounting to Rs.2.03 Crores (P.Y. Rs. 3.61 Crore) after mutual consent between the parties which is subject to confirmation.

(h) Focus Incentive Receivable Rs.96.31 Lakh shown under Short Term Loan & Advances is subject to the realisation. I

(i) "Assets other than PPE & Non current Investments are realisable for value at which they are stated in ordinary course of business"

(j) The previous financial year figures have been reworked, regrouped and reclassified to the extent possible, wherever necessary.

(k) The company does not have any property whose title deeds are not held in the name of the company.

(l) Company has not revalued its Investment Property as on 31st March,2024.

(m) Company has not revalued its Property, Plant and Equipment as on 31st March,2024.

(n) Company does not have any intangible asset so there cannot be any revaluation of the same.

(o) The company has no Intangible asset under development as on 31st March,2024.

(p) The company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

No proceedings have been initiated or pending against the company under Benami Transactions (Prohibition) Act, 1988 & rules made thereunder.

(q) The Company has borrowings from banks or financial institutions on the basis of security of current assets.

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts except differences in value of stock as on 31.03.2024.

(r) The company has not been declared as a wilful defaulter by any bank or financial Institution or other lender as on 31st March,2024.

(s) As per the information available with the management, the company has not entered into any transactions with the companies who have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

(t) Company has filed necessary forms with ROC for Creation and satisfaction of Charges within stipulated time period as on 31st March,2024 except Satisfaction of Charge for Rs. 3 Crore with Canara Bank has not been filed by Bank. The form will be filed in the due course of time.

(u) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

(v) Compliance with MSME Return as per the provisions of the MSME Development Act, 2006

As per the provisions of the MSME Development Act, 2006, and the Companies Act, 2013, the Company is required to file certain returns with the Ministry of Corporate Afairs (MCA) concerning transactions with Micro,Small, and Medium Enterprises (MSMEs).For the financial year ended 31st March 2024, the Company has not filed the MSME returns with the MCA. The delay/ omission occurred due to administrative oversight and lack of awareness.The failure to file MSME returns may expose the Company to potential penalties and compliance risks. It couldalso impact the Company's relationships with MSME vendors, who rely on these filings to ensure their dues are appropriately recognized and settled.

The Company is committed to rectifying this issue and has taken steps to ensure compliance with MSME filing requirements in the future.

(w) Compliance with Audit Trail (Edit Log) under rule 11(g) of the companies (Audit and Auditors) Rule 2014.

In accordance with the Companies (Audit and Auditors) Rules, 2014, as amended, it is mandatory for companies to maintain an audit trail in their accounting software for recording financial transactions. This requirement is intended to ensure transparency and accountability in financial reporting by preserving a comprehensive log of all changes made to financial data.

For the financial year ended 31st March 2024, the Company has not activated the audit trail feature in its accounting software due to the following reasons:

1. System Limitations: The existing accounting software does not support the audit trail functionality in full compliance with the requirements. Implementing this feature would require significant upgrades and could disrupt ongoing financial processes.

2. Operational Impact: The activation of the audit trail feature may result in reduced system performance, which could interfere with the efficient processing of financial transactions.

The absence of an audit trail could potentially affect the completeness and accuracy of financial transactions recorded in the Company's books of accounts.

However, the Company has implemented alternative controls, including regular reconciliations, management reviews, and internal audits, to ensure the integrity and accuracy of its financial statements.

The Company is committed to complying with all statutory requirements and will revisit the implementation of the audit trail feature in future financial periods as system capabilities improve.

The management acknowledges the importance of maintaining an audit trail and is taking steps to address this issue in the forthcoming financial year. The Company will work towards aligning its accounting software with the regulatory requirements to ensure full compliance in the future.

CA. Sunil Bhalotia Alok Prakash Amitava Majumder

(Proprietor) (Managing Director) (Director)

Membership No. 061232 DIN No: 00375634 DIN No: 09689719

Firm's Registration No. 324923E

Place: Kolkata Anupama Prakash ^{Karishma Agarwal}

Date: 30.05.2024 (Chief Financial Officer) (company secretary)

Membership No. 54923