Capital Reserve:

This Reserve was created on 31.03.1996 upon revaluation of land & building and plant & machinery by crediting to capital reserve the resultant surplus arising therefrom. The carrying value of these assets, measured as per the previous GAAP, as recognized in the financial statements as at the date of transition to Ind AS are continued to be used as the deemed cost as at the date of transition.

Retained Earnings: This Reserve represents the cumulative profits of the Company. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

The accompanying notes 1 to 30 are an integral part of the Ind AS Financial Statements.

Nature of Security for Secured Borrowings are given below:

Term Loan from Union Bonk of India

x The Term Loan from Union Bank of India of Rs. 158.10 Lakhs (Previous Year of Rs. 222.93 Lakhs) is secured by way of Pari- Passu charge over immovable assets/ current assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munna Nagina Road, Bijnor and property at East Patel Nagar, New Delhi.

X The loan is further secured by way of personal guarantee of promoters/directors of the company.

X Rate of Interest of Term Loan from UBI is EBLR 2.75%, charges on monthly rest.

x Current Maturity of Term Loan amounting to Rs. 61.20 Lakhs, has been shown under the head other current liabilities.

x The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Term Loan from Yes Bank

x The Term Loan from Yes Bank of 2,356.96 Lakhs (Previous Year 2,874.96 Lakhs) is secured by way of Pari-Passu charge over all the current assets/ immovable assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munna, Nagina Road, Bijnor and property at East Patel Nagar, New Delhi.

x The loan is further secured by way of personal guarantee of promoters/directors of the company,

x Rate of Interest of Term Loan from Yes Bank is Repo Rate 3.45 %, charges on monthly rest,

x Current Maturity of Term Loan is Rs. 413.62 Lakhs, has been shown under the head other current liabilities

x The company does not have any continuing defaults in repayment of any of the loans and interest thereon,

as at the reporting date.

Vehicle Loan from Union Bank of India

x The Term Loan from Yes Bank of 6.76 Lakhs is secured by way of hypothecation of Vehicle & personal guarantee of directors.

x Rate of Interest of Vehicle Loan from UBI is (8.05 to 9.80) %, charges on monthly rest, x Current Maturity of Term Loan is 3.48 Lakhs, has been shown under the head other current liabilities

x The company does not have any continuing defaults in repayment of a ny of the loans and interest thereon,

as at the reporting date.

Vehicle Loan from HDFC Bank

x The Term Loan from HDFC Bank of 42.21 Lakhs is secured by way of hypothecation of Vehicle & personal guarantee of directors.

x Rate of Interest of Vehicle Loan fro m HDFC is (7.50 to 8.51) %, charges on monthly rest,

x Current Maturity of Term Loan is 28.01 Lakhs, has been shown under the head other current liabilities

x The company docs not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date

• Union Bank of India has sanctioned a CC Limit of Rs. 3800.00 Lakhs, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from UBI is EBLR 0.65 %, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

• Yes Bank has sanctioned a CC Limit of Rs. 1,000.00 Lakhs, which is secured by way of first pari-passu change (for Term Loan) on hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from Yes Bank is Repo Rate 3.35 %, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon ,

as at the reporting date.

Cash Credit Limit from HDFC Bank

• HDFC Bank has sanctioned a CC Limit of Rs. 1,500.00 Lakhs, which is secured by way of first pari-passu change on hypothecation of Stocks & book debts of the company and collateral security of I and, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from HDFC Bank is 9.15%, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon,

as at the reporting date.

B. Fair value hierarchy

Level 1: Quoted prices (unadjusted) in the active markets for identical assets and liabilities.

Level 2: Input other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: Input for the assets or liability that are not based on observable market data (unobservable input)

Notes:

a. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short-term maturities of these instruments.

b. Fair value of non-current financial assets has not been disclosed as there is no significant differences between carrying value and fair value.

c. The Fair value of borrowings have been disclosed at carrying value which is considered to approximate to fair value.

d. Carrying value of unquoted equity instrument has been considered as an appropriate estimate of fair value because carrying value is considered as approximate to fair value and carrying value represents the best estimate of fair value within that range.

C. Financial risk management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set approp riate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Director s and the Audit Committee is responsible for overseeing the Company's risk assessment and management policies and processes.

Interest rate risk

The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. Any rise in market rate of interest effecting valuation of financial instruments, financial assets and financial liabilities have been regularly analyzed for mitigational measure.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not have any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

i) Risk management framework

The Company's board of directors has overall responsibility for the establish ment and oversight of the company's risk management framework. The Company's risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company's activities.

The Company's audit committee oversees how management monitors compliance with the company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii) Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company's receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure. Hi) Trade receivables

The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company.

The Company based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other expenses.

Concentration of significant credit risk

The ageing of outstanding balance of receivables having more than 10% concentration of credit is within 30 days, and the transactions with them are at arm's length. There is no risk of credit concentration as far as transactions with them are concerned.

iv) Cash and cash equivalents

The company holds cash and cash equivalents of 28.76 lakhs at 31 March 2025 (31 March 2024: ' 13.12 lakhs). The cash and cash equivalents are held with bank and cash on hand, iv) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to manage liquidity is to have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring losses or risking damage to the Company's reputation. Management manages the liquidity risk by monitoring cash flow forecasts on a periodic basis and maturity profiles of financial assets and liabilities. This monitoring takes into account the accessibility of cash and cash equivalents and additional undrawn financing facilities.

vi) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing there turn.

vii) Foreign Currency Risk

The company's policy is to ensure that the time gap between executing the transaction for import / export and the date for making payment / receiving payment is restricted to less than a week so that foreign exchange currency risk is mitigated. The carrying amounts of the company's foreign exchange monetary items as at the end of reporting period is nil and previous year was also nil

b. Defined contribution plan

The Company's provident fund scheme and employee's state insurance (ESI) fund scheme are defined contribution plans. The Company has recorded expenses of ' 24.69 lakhs (31.03.2024: ' 22.47 lakhs) under provident fund scheme and ' 8.56 lakhs (31.03.2024: ' 8.73 lakhs) under ESI scheme. These have been included in note 25 employees' benefits expenses, in the Statement of Profit and Loss.

c. Defined plan Gratuity (funded)

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company made annual contributions to the LIC of India.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increase in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on t he defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. The funds are managed by specialized team of Life Insurance Corporation of India.

Funding

Gratuity is a funded benefit plan for qualifying employees. 35% of the plan assets are managed by LIC and balance managed by the management. The assets managed are highly liquid in nature and the Company does not expect any significant liquidity risks.

The following table sets out the status of the defined benefit plan as required under Ind-AS 19 - Employee Benefits:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same methods (present value of defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

F. Additional disclosure/regulatory Information as required by notification no. GSR 207(E) dated 24.03.2022 which are not covered in any of the notes above:

(i) Loan or advances granted to the promoters, directors and KMPs and the related parties:

No loan or advances in the nature of loans have been granted to the promoters, directors, key managerial persons and the related parties {as defined under the Companies Act, 2013), either severally or jointly with any other person that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

(ii) No proceedings have been initiated or pending against the company for holding any benami property under benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) Willful Defaulter

No bank has declared the company as "willful defaulter".

(iv) Relationship with Struck off Companies:

There are no transaction with the companies whose name is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 IVIarch 2024 and the year ended 31 March 2025.

(v) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done.

No registration or satisfaction is pending at end of finan cial year 2024-2025.

(vi) Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per above said section/ rules.

(vii) Compliance with approved Scheme(s) of Arrangements

No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act. 2013.

(viii) Utilization of Borrowed funds and share premium:

G. Due to worldwide market recession, The Company sales during the year ended March 2025 was slightly low as compare to last financial year. As regards to recoverability of assets, the company expects to fully recover the carrying amount of assets. The Company is closely monitoring any material changes to future economic conditions.

H. The previous year figures are regrouped / reclassified wherever required to make them comparable to current year figures.