2.19 Provisions and Contingencies

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).

Contingent assets are disclosed in the Financial Statements by way of notes to account when an inflow of
economic benefits is probable.

Contingent liability is disclosed in the case of:

• A present obligation arising from past events, when it is not probable that an outflow of
resources will be require to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible; and

• A present obligation arising from past events, unless the probability of outflow of
resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for
completion/purchase of assets.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Warranty provisions

Provisions for warranty-related costs are recognized when the product is sold or service provided to the
customer. Initial recognition is based on historical experience. The initial estimate of warranty-related cost is
revised annually.

Litigation claims:

Provision for litigation related obligation represents liabilities that are expected to materialise in respect of
matters in appeal.

2.20 Non-Current assets held for sale

Non-current assets or disposal company's classified as held for sale are measured at lower of carrying amount
and fair value less costs to sell.

Non-current assets or disposal company are classified as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met only
when the sale is highly probable and the asset or Disposal Company is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such assets. Management must be
committed to sale, which should be expected to qualify for recognition as a completed sale within one year
from the date of classification as held for sale, and actions required to complete the plan of sale should indicate
that is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Property, Plant and Equipment and intangible assets are not depreciated or amortised once classified as held
for sale.

2.21 Segment Reporting

Segment Reporting reflect the Company's management structure and the way the financial information is
regularly reviewed by the Company's Chief Operating Decision Maker (CODM). The CODM considers the
business from both business and product perspective based on the dominant source, nature of risks and returns
and the internal organisation and management structure. The operating segments for which separate financial
information is available and for which operating profit/ (loss) amounts are evaluated regularly by executive
Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments
on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to
segments on reasonable basis have been included under unallocated revenue/expenses/assets/liabilities.

Segment accounting

The Chief Operational Decision Maker monitors the operating results of its business segments separately for the
purpose of making decisions about resources allocation and performance assessment. Segment performance is
evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

The Operating segments have been identified on the basis of the nature of products / services.

Segments revenue includes sales and other income directly identifiable with/allocable to the segment including
inter-segments revenue.

Expenses that are directly identifiable with/allocable to segments are considered for determining the segment
result. Expenses which relate to the company as a whole and not allocable to segments are included under
Unallocable expenditure.

Income which relates to the company as a whole and not allocable to segments is included in Unallocable
income.

Segment result includes margins on inter-segments sales which are reduced in arriving at the profit before tax
of the company.

Segments assets and liabilities include those directly identifiable with the respective segments. Unallocable
assets and liabilities represent the assets and liabilities that relate to the company as whole and not allocable to
any segment.

Inter-Segments transfer pricing:

Segments revenue resulting from transactions with other business segments is accounted on the basis of
transfer price agreed between the segments. Such transfer prices are either determined to yield a desired
margin or agreed on a negotiated basis.

2.22 Operating Cycle

All the assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle and other criteria set out in Notes. Based on the nature of products and services and the time
between the acquisition of assets for processing and their realisation in cash and cash equivalent, the Company
has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of
assets and liabilities.

2.23 Exceptional Items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary
activities of the Company is such that its disclosure improves the understanding of the performance of the
Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes
accompanying to the financial statements.

2.24 Current and Non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realized within twelve months after the reporting period, Or

• Cash or Cash Equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

A liability is current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after the reporting period, Or

• There is no unconditional right to defer the settlement of liability for at least twelve months after the
reporting period.

Deferred tax assets/liabilities are classified as non-current.

All other assets are classified as non-current.

2.25 Recent Accounting Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2025, MCA has notified IND AS - 117 Insurance Contracts and amendments to existing Ind
AS 116 - Leases, relating to sales and leaseback transactions, w.e.f. April 1, 2024. The company has
determined, based on its evaluation, that it does not have any significant impact in its financial statements.
3. Significant Accounting Judgements, Estimates and Critical Accounting Assumptions:

The preparation of financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets and liabilities, disclosures of contingent liabilities at the date of financial statements and the reported
amounts of revenue and expenses for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation, uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognized in the financial statements
pertain to:

3.1 Useful lives of property, plant and equipment and intangible assets:

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated
usage of asset, the operating condition of the asset, past history of replacement, anticipated technological
changes, etc. The Company reviews the carrying amount of property, plant and equipment and intangible assets
at the end of each reporting period. This reassessment may result in change in depreciation expense in future
periods.

Depreciation on Property, Plant and Equipment is provided pro-rata for the periods of use on straight line
method (SLM) on the basis of useful life of the property, plant and equipment mandated by Part C of Schedule II
of the Companies Act, 2013 or the useful life determined by the company based on technical evaluation,
whichever is lower, taking into account the nature of asset, the estimated usage of asset, the operating
conditions of the asset, past history of replacement, maintenance support, as per details given below:

3.2 Impairment of Tangible and Intangible Assets other than Goodwill

Property, Plant and Equipment and Intangible assets are tested for impairment when events occur or changes in
circumstances indicate that the recoverable amount of cash generating unit is less than its carrying value. The
recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The
calculation involves use of significant estimates and assumptions which includes turnover and earnings
multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount
rate, future economic and market conditions.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to asset
for which the estimates for future cash flows have not been adjusted.

At each Balance Sheet date, consideration is given to determine whether there is any indication of impairment
of the carrying amount of the Company's assets. If any indication of impairment of carrying amount of the
Company's assets. If any indication exists, estimation is made for the asset's recoverable amount, which is
greater of the net selling price and the value in use. An impairment loss, if any, is recognized whenever the
carrying amount of an asset exceeds the recoverable amount.

Impairment losses of continuing operations, including impairment on inventories, if any, are recognized in profit
or loss section of the statement of profit or loss.

3.3 Provision against Investments/Loans and Advances

The management talking into account the present operations of the Company proposed restructuring, future
business prospects etc. to make provision towards impairment on carrying value of investments and loans and
advance given.

3.4 Employee Benefits - Defined Benefit Obligation (DBO)

Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, medical cost trends, mortality, discounts rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit
expenses.

The Single Bench of Hon’ble High Court passed an order against the Company. However, the
Company filed an appeal against the said order in the Double Bench of Hon’ble Calcutta High Court.
The said Double Bench heard our grounds of appeal and passed order in our favour.

The Bank filed a Special Leave Petition against the said order of the Double Bench of Hon’ble Calcutta
High Court in Hon’ble Supreme Court. Special Leave Petition order was passed against the Company
by setting aside the Double Bench of Hon’ble Calcutta High Court order. Company had filed
Miscellaneous Application,

The said Miscellaneous application has been heard and Apex Court had passed an order in favour of the
Company for allowing the Civil Court to proceed the Suit on Merit in the Hon’ble Calcutta High Court
and as of date the matter is sub-judice and pending for final hearing.

Various Properties offered as Collateral Securities to UCO Bank and J&K Bank in respect of various
credit facilities enjoyed by Fairdeal Supplies Ltd, an associate concern and these properties have been
symbolically possessed by the UCO Bank.

Fairdeal Supplies Ltd. has made a One Time Settlement with UCO Bank and commenced repayment
thereof, however due to impact of COVID-19 on its business, the repayment has been delayed and
company requested to the bank for further extension of the repayment duration for balance settled
amount. The bank considered the request of the Fairdeal Supplies Ltd and revalidated of their proposal
during the year 2021-22 and the company has started making repayment as per revised terms and
conditions of the bank.

The said Company has started making repayment of the OTS since then and the said Company has
repaid Rs. 75.00 Crores (100.00%) of OTS amount during 2023-2024 and interest on delayed payments
of Rs 11.89 crores was paid in April 2024.

Fairdeal Supplies Ltd has made OTS with J&K Bank for repayment of OTS amount and has paid full
and final settlement amount during the previous financial year. J & K Bank have withdrawn the legal
case in the matter of SA 1316/2014 in DRT consequent upon full & final settlement of credit facilities
by Fairdeal Supplies Limited to J&K Bank Limited.

Fair Value of investment properties which includes commercial and residential premises could not be
identified as management has not carried out valuation of these properties.

Fairdeal Supplies Limited a Company in which Promoter - Directors namely Mr. Ramprasad Agrawal,
Mr. Narayan Prasad Agrawal, Mr. Pawankumar Agarwal and Mr. Saurabh Jhunjhunwala are also the
Directors and Promoters of our Company has been admitted to Corporate Insolvency
Resolution Process (CIRP) by the Hon’ble National Company Law Tribunal, Kolkata Bench vide it
judgement dated 19.03.2024 in the matter of Pegasus Asset Reconstruction Private Ltd against M/s
Fairdeal Supplies Ltd., and an Interim Resolution Professional has been appointed by the Bench.

The suspended management of Fairdeal Supplies Limited filed an appeal before the Hon’ble National
Company Law Appellate Tribunal, New Delhi (NCLAT), against the said Judgment and the same has
been dismissed by NCLAT

Thereafter, the suspended management of the Company has filed an appeal for stay before the Hon’ble
Supreme Court against National Company Law Appellate Tribunal, New Delhi and the same has also
been dismissed, thereby upholding the initiation of CIRP.

As stated in the aforesaid note, the outcome may have implications on the financial position of the
Company, depending on the claims admitted and recoverability. The ultimate outcome and
consequential financial impact, if any, is presently not determinable.

(d) Terms/Rights attached to Equity shares

The company has one class of share capital, i.e., equity share having face value of Rs.10 per share. Each Shareholder is entitled
to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amounts in proportion to their shareholding

The terms of repayment not yet finalised for Unsecured Loan from Body Corporate, Related Parties,
Others and Directors. Rate of Interest is charged @ 9% p.a. previous year @ 9% p.a.

Term loan (secured) from Kotak Mahindra Prime Ltd. In form of motor vehicle finance facility secured
against hypothecation of motor vehicle of the company. The Said loan carries interest rate @ 10% P.A
and the loan is repayable in monthly equated installment of Rs. 25,755/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 7,42,073/- P. Y. Balance Outstanding Rs. 9,66,071/-)

Term loan (secured) from Kotak Mahindra Prime Ltd. In form of motor vehicle finance facility secured
against hypothecation of motor vehicle of the company. The Said loan carries interest rate @ 10.20%
P.A and the loan is repayable in monthly equated installment of Rs. 43,883/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 6,90,861/- P. Y. Balance Outstanding Rs. 11,23,600/-)

Term loan (secured) from Sundaram Finance Limited, in form of commercial vehicle finance facility
secured against hypothecation of commercial vehicles of the company. The financier is also holding
personal guarantee of managing director of the company, The said loan carries interest rate @ 9.63%
p.a. and the loan is repayable in monthly equated installment of Rs. 10,25,800/- each inclusive of

interest. (Current year- Balance Outstanding Rs. 2,88,40,614/- P. Y. Balance Outstanding Rs.

3,78,90,531/-).

Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility
secured against hypothecation of commercial vehicles of the company. The financier is also holding
personal guarantee of managing director of the company, The Said loan carries interest rate @ 9.54%
p.a. and the loan is repayable in monthly equated installment of Rs. 10,05,000/- each inclusive of

interest. (Current year- Balance Outstanding Rs. 3,09,63,531/- P. Y. Balance Outstanding Rs.

3,96,38,297/-).

Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility
secured against hypothecation of commercial vehicles of the company. The financier is also holding
personal guarantee of managing director of the company, The Said loan carries interest rate @ 9.75%
p.a. and the loan is repayable in monthly equated installment of Rs. 25,250/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 8,05,648/- P. Y. Balance Outstanding Rs. 10,00,000/-).

Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility
secured against hypothecation of commercial vehicles of the company. The financier is also holding
personal guarantee of managing director of the company, The Said loan carries interest rate @ 9.75%
p.a. and the loan is repayable in monthly equated installment of Rs. 50,500/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 16,06,396/- P. Y. Balance Outstanding Rs. NIL).

Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility
secured against hypothecation of commercial vehicles of the company. The financier is also holding
personal guarantee of managing director of the company, The Said loan carries interest rate @ 11.30%
p.a. and the loan is repayable in monthly equated installment of Rs. 5,41,405/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 1,86,49,000/- P. Y. Balance Outstanding Rs. NIL).

Term loan (secured) from Mahindra and Mahindra Financial Services Ltd. In form of motor vehicle
finance facility secured against hypothecation of motor vehicles of the company. The Said loan carries
interest rate @ 11.15% P.A and the loan is repayable in monthly equated installment of Rs. 20,730/-
each inclusive of interest. (Current year- Balance Outstanding Rs. 4,09,425/- P. Y. Balance Outstanding
Rs. 5,99,192/-.

Term loan (secured) from Sundaram Finance Limited. In form of motor vehicle finance facility secured
against hypothecation of motor vehicle of the company. The Said loan carries interest rate flat @ 9.50%
P.A and the loan is repayable in monthly equated installment of Rs. 19,215/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 4,79,283/- P. Y. Balance Outstanding Rs. NIL).

Term loan (secured) from Sundaram Finance Limited. In form of motor vehicle finance facility secured
against hypothecation of motor vehicle of the company. The Said loan carries interest rate flat @ 9.90%
P.A and the loan is repayable in monthly equated installment of Rs. 25,780/- each inclusive of interest.
(Current year- Balance Outstanding Rs. 6,41,753/- P. Y. Balance Outstanding Rs. NIL).

Working Capital Loans from bank includes Rs 2816.99 Lac against Cash Credit Limit and Rs. 2000.00
Lac against Export Packing Credit Limit from Punjab and Sind Bank has been slipped to Non¬
Performing Assets with effect from 31-03-2012. The company has also defaulted in interest payable on
said loan amounting to Rs 1,82,92,452/- for the period from 01/04/2013 to 31/03/2014 and Rs.
4,69,38,398/- for the period from 01/04/2014 to 31/03/2015 and Rs. 48102318/- for the period from
01/04/2015 to 31/03/2016 and Rs. 16837421/- for the period from 01/04/2016 to 31/03/2017. The
Interest provision on loan taken from the bank has not been accounted for the financial year 2017-18 to
2024-25 due to legal dispute between the company and the bank as Double Bench of Hon'ble Calcutta
High Court has issued order in favour of the company. The Bank filed a Special Leave Petition against
the said order of the Double Bench of Hon’ble Calcutta High Court in Hon’ble Supreme Court. Special
Leave Petition order was passed against the Company by setting aside the Double Bench of Hon’ble
Calcutta High Court order. Company had filed Miscellaneous Application.

The said Miscellaneous application has been heard and Apex Court had passed an order in favour of the
Company for allowing the Civil Court to proceed the Suit on Merit in the Hon’ble Calcutta High Court
and towards same the Commission for Cross Examination is in process as per order of Hon’ble Calcutta
High Court.

Fair values

Fair value is the price 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 fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

The principal or the most advantageous market must be accessible by 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 value measurement of a non-financial asset takes into account a market
participant'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 available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.

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

a) Level 1 -- This includes financial instruments measured using quoted prices. The
fair value of all equity instruments which are traded on the Stock Exchanges is valued
using the closing price as at the reporting period.

b) Level 2 -- The fair value of financial instruments that are not traded in an active
market (for example 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.

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

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

External valuers are involved, wherever required, for valuation of significant assets,
such as properties, unquoted financial assets and significant liabilities. Involvement of
external valuers is decided upon by the Company after discussion with and approval
by the Company's management. Selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained. The
Company, after discussions with its external valuers, determines which valuation
techniques and inputs to use for each case.

At each reporting date, the Company analyses the movements in the values of assets
and liabilities which are required to be remeasured or re-assessed as per the
Company's accounting policies. For this analysis, the Company verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation
computation to contracts and other relevant documents. The Company also compares
the change in the fair value of each asset and liability with relevant external sources to
determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset or
liability and the level of the fair value hierarchy as explained above.

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due and to close out market positions. Due to the dynamic
nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position and cash and
cash equivalents on the basis of expected cash flows. This is generally carried out at local
level in the operating companies of the Company in accordance with practice and limits set
by the Company. These limits vary by location to take into account the liquidity of the
market in which the entity operates. In addition, the Company’s liquidity management
policy involves projecting cash flows in major currencies and considering the level of
liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and maintaining debt financing plans.

Market Risk Management
Foreign Currency Risk

The Company operates internationally and is exposed to foreign exchange risk arising from
foreign currency transactions, primarily with respect to the US$, EUR. Foreign exchange
risk arises from future commercial transactions and recognized assets and liabilities
denominated in a currency that is not the company’s functional currency (INR). The risk is
measured through a forecast of highly probable foreign currency cash flows.

Cash flow and fair value 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.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not
subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor
the future cash flows will fluctuate because of a change in market interest rates.

I o \ I n t n r cm f D n a D i n 1/ vnAn t t r a /T> n T,-, T ,, 1 -"U \

35.2 Capital Management

The Company’s objectives when managing capital are to

S safeguard their ability to continue as a going concern, so that they can continue to
provide returns for shareholders and benefits for other stakeholders, and

S Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the Company monitors capital on the basis of the

following gearing ratio:

Since no income has been generated from investments during the year ended March 31,
2025 and March 31, 2024, the ratio of Return on Investment has not been disclosed.
Definitions:

(a) Earning available for debt service = Net Profit after taxes Non-cash operating expenses like
depreciation and other amortisations Interest other adjustments like loss on sale of Fixed assets etc.

(b) Debt service = Interest & Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance)
/ 2

(f) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Working capital = Current assets - Current liabilities.

(i) Earnings before interest and taxes = Profit before exceptional items and tax Finance costs - Other
Income

(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

(k) Net Return on Investment = Value of Investment at the end of the period - Value of Investment at the beginning of the period

(l) Cost of Investment = Value of Investment at the end of the period

As a Lessor

Premises given on Operating Lease

The company has given various properties on operating lease. These lease arrangements include both
cancellable and non-cancellable leases. Most of the leases are renewable for further period on
mutually agreeable terms.

Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment
separately for the purpose of making decision about resource allocation and performance assessment.
Segment performance is evaluated based on profit or loss and is measured consistently with profit or
loss in the financial statements, Operating segment have been identified on the basis of nature of

products and other quantitative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as

unallocable expenditure (net of allocable income).

Segment assets and Liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of
property, plant and equipment, trade receivables, Inventory and other operating assets. Segment
liabilities primarily include trade payable and other liabilities. Common assets and liabilities which

cannot be allocated to any of the business segment are shown as unallocable assets / liabilities.

Inter Segment transfer:

Inter Segment revenues are recognised at sales price. The same is based on market price and business
risks. Profit or loss on inter segment transfer are eliminated at the group level.

(f) Corporate Guarantee

The company has provided Corporate Guarantee to UCO Bank and J&K Bank in respect
of Credit Facilities enjoyed by Fairdeal Supplies Ltd. In respect of such guarantee,
company has given some of its Investment Properties as Collateral Securities.

(g) Terms and conditions

The loan availed from associated concerns @9% p.a. while loan from Key managerial
Personnel availed @9% rate of interest. The terms of repayment are not finalized by the
management.

Defined Benefits Plan

Gratuity: The company has defined benefit gratuity plan in India(funded). The
Company’s defined benefit gratuity plan is a final salary plan for employees,
which requires contributions to be made to a separately administered fund. The
fund is managed by a trust which is governed by the Board of Trustees.

The company has provided Corporate Bank Guarantee to UCO Bank and J&K Bank in respect of
Credit Facilities enjoyed by Fairdeal Supplies Ltd. In respect of such guarantee, company has
given some of its Investment Properties as Collateral Securities. Details of such Assets have been
given in Note No 6. UCO Bank has issued demand notice dated 05-08-2012 to the
borrowers/guarantors/mortgagors to repay the amount mentioned in the notice being Rs
235,94,31,422.65, failing on which the bank has taken Symbolic Possession of the properties in
exercise of powers conferred upon them under the SARFAESI Act, 2002.

Fairdeal Supplies Ltd. has made a One Time Settlement with UCO Bank and commenced
repayment thereof, however due to impact of COVID-19 on its business, the repayment has been
delayed and company requested to the bank for further extension of the repayment duration for
balance settled amount. The bank considered the request of the Fairdeal Supplies Ltd and
revalidated of their proposal during the year 2021-22 and the company has started making
repayment as per revised terms and conditions of the bank.

The said Company has started making repayment of the OTS since then and the said Company has
repaid OTS amount with interest on delayed payments.

Fairdeal Supplies Ltd has made OTS with J&K Bank for repayment of OTS amount and has paid
full and final settlement amount during the previous financial year. J & K Bank have withdrawn
the legal case in the matter of SA 1316/2014 in DRT consequent upon full & final settlement of
credit facilities by Fairdeal Supplies Limited to J&K Bank Limited.

36.9 The Company has a process whereby periodically all long-term contracts (including derivative
contracts) are assessed for material foreseeable losses. At the year end, the Company has
reviewed and there are no long-term contracts for which there are any material foreseeable losses.
The Company has ensured that adequate provision as required under any law/accounting
standards for material foreseeable losses on derivative contracts has been made in the books of
accounts.

36.10 There have been no transactions which have not been recorded in the books of accounts, which
have been surrendered or disclosed as income during the financial year ended 31 March 2025 and
31 March 2024, in the tax assessments under the Income Tax Act, 1961. There have been no
previously unrecorded income and related assets which were to be properly recorded in the books
of account during the financial year ended 31 March 2025 and 31 March 2024.

36.11 The Company has borrowings from Punjab & Sind Bank on the basis of security of current assets
and the quarterly returns filed by the Company with the bank has been declared NPA by bank
since May 2012, hence no compliance has been done during the year.

36.12 The Company does not have any charges which is yet to be registered with ROC beyond the
statutory period except two instances mentioned below. As regards satisfaction of some of the
charges of GE Capital Transport Financial Services LTD for which our company has been repaid
the whole financed amount but could not filed the satisfaction of charge due to non-receipt of NO
DUE Certificate for MCA filing. GE Capital Transport Financial Services LTD has amalgamated
and closed its all branch offices, meanwhile we send many reminder mails to the company for
issue of No Due Certificate, but no reply has been received so far. The loan borrowed by Fairdeal
Supplies Limited from UCO Bank Ltd and Jammu and Kashmir bank for which corporate
guarantee has been given by our company has been fully repaid by the said company, however
the satisfaction is pending for non-receipt of No due certificate from the bank.

The company created a charge of Rs 10,00,00,000/- in favour of Punjab & Sind Bank Limited
against grant of various credit facilities vide charge ID 80056888 on dated 07/12/2005. However,
the name of the Bank is wrongly appeared as Punjab National Bank in the index of charge
downloaded from MCA portal. Steps are being taken for rectification of name of the Bank.

36.13 The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority. It has been informed that one of the companies and the
directors (common directors of our company) in which our company has issued Corporate
Guarantee against the facilities granted to the said company, has been declared wilful defaulter by
UCO bank. It has been further informed that the said company made One Time Settlement with
the UCO bank and has repaid around 100.00% of the One Time Settlement amount along with
interest.

The company has also been informed that the said company and the directors in which directors
are common with our company, has been declared wilful defaulter by Indian Overseas Bank. It
has been further informed that the said company made One Time Settlement with the Indian

Overseas Bank and has fully repaid the principal amount of One Time Settlement amount along
with interest, No due Certificate for account settled under OTS has been received by the said
company and the said company has requested to the bank for removal of the name of the Director
from the wilful defaulter list and the request is under process.

Fairdeal Supplies Limited a Company in which Promoter - Directors namely Mr. Ramprasad
Agrawal, Mr. Narayan Prasad Agrawal, Mr. Pawankumar Agarwal and Mr. Saurabh
Jhunjhunwala are also the Directors and Promoters of our

Company) has been admitted to Corporate Insolvency Resolution Process (CIRP) by
the Hon’ble National Company Law Tribunal, Kolkata Bench vide it judgement dated 19.03.2024
in the matter of Pegasus Asset Reconstruction Private Ltd against M/s Fairdeal Supplies Ltd., and
an Interim Resolution Professional has been appointed by the Bench.

The suspended management of Fairdeal Supplies Limited filed an appeal before the Hon’ble
National Company Law Appellate Tribunal, New Delhi (NCLAT), against the said Judgment and
the same has been dismissed by NCLAT

Thereafter, the suspended management of the Company has filed an appeal for stay before the
Hon’ble Supreme Court against National Company Law Appellate Tribunal, New Delhi and the
same has also been dismissed, thereby upholding the initiation of CIRP.

As stated in the aforesaid note, the outcome may have implications on the financial position of
the Company, depending on the claims admitted and recoverability. The ultimate outcome and
consequential financial impact, if any, is presently not determinable.

36.14: There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at
March 31, 2025.

36.15: Contribution to political parties during the year 2024-25 is Rs. NIL

36.16: Other Statutory Information

• No proceedings have been initiated or pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2025
and 31 March 2024.

• The Company did not have any material transactions with companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

• The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31
March 2025 and 31 March 2024.

• No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from
any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign
entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) 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 (li) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

• The Company have 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:

o 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
o provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

36.17: The Company has taken borrowings from banks and financial institutions and utilised them for the specific
purpose for which they were taken as at the Balance sheet date.

36.18: Derivatives: There are no derivative instruments in the Company for the year ended 31 March 2025 and 31
March 2024.

36.19: Compliance with number of Layers of companies: The Company has not violated with the number of layers
prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017 for the financial years ended March 31, 2025 and March 31, 2024.

36.20: There were no instances of fraud reported during the year ended 31 March 2025.

36.21: Code on Social Security, 2020: The Code on Social Security, 2020 ('Code') relating to employee benefits
during employment and post- employment benefits received Presidential assent in September 2020. The Code
has been published in the Gazette of India. However, the date on which the Code will come into effect has not
been notified. The Company will assess the impact of the Code when it comes into effect and will record any
related impact after the Code becomes effective.

36.22: Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use
accounting software for maintaining their books of account, to use such an accounting software which has a
feature of audit trail, with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under
Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 (as amended) is implemented for the current financial
year.

36.23: Figures of previous year have been reworked/regrouped/reclassified wherever necessary.

On Behalf of Board of

As Per our Report of Even Date Frontline Corporation Ltd

For Paresh Thothawala & Co. Ram Prasad Agarwal

Chartered Accountants S.K.Verma Director

FRN: 114777W Company Secretary (DIN NO: 00060359)

Paresh K Thothawala Pawankumar Agarwal

Partner Komal Shah Managing Director

M.No. 048435 C.F.O. (DIN NO: 00060418)

Date: 30-05-2025 Date: 30-05-2025

Place: Ahmedabad Place: Ahmedabad