(m) Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required
to settle the present obligation at the Balance Sheet date.If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects,when appropriate, the risks specific to the

Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 company or a present obligation that arises from past events where it is either not

(n) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits with
an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the
purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short term

(o) Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the year in which the employees render the related service are recognized in respect of
employees’ services up to the end of the year and are measured at the amounts expected to be paid when the_

(ii) Other long-term employee benefit obligations

— Defined contribution plan
Provident Fund:

Contribution towards provident fund is made to the regulatory authorities, where the Company has no further
obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit

— Defined benefit plans
Gratuity:

The Company provides for gratuity, a defined benefit plan (the 'Gratuity Plan") covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee's salary. The company's liability is actuarially valued at the end of each year. Actuartial losses
/ gains are recognised in the " other comprehensive income" in the year in which they arise.

(p) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered
in ascertaining the Company's earning per share is the net profit or loss for the year after deducting preference
dividend and any attributable tax thereto for the year, if any . The weighted average number of equity shares
outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
share holders and the weighted average number of shares outstanding during the year is adjusted for the effects of

(q) Government grants

Grants from the government are recogmised at their fair value where there is a reasonable assurance that the
grant will be received and the company will comply with all the attached conditions.All government grants are
intially recognised by way of setting up as deferred income. Government grants relating to income are recognised
in the profit & loss account . Government grants relating to purchase of property, plant & equipment are
subsequently recognised in profit & loss on a systematic basis over the expected life of the related depreciable

( r) Inter divisional transcations

Inter divisional transcations are eliminated as contra items. Any unrealised profits on unsold stocks on account of
inter divisional transcations is eliminated while valuing the inventory.

3 Significant accounting judgments, estimates and assumptions

The preparation of Financial Statements requires management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below. The Company based its assumptions and estimates on parameters
available when the Financial Statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the control
of the Company. Such changes are reflected in the assumptions when they occur.

(i) Taxes

Significant assumptions and judgements are involved in determining the provision for tax based on tax
enactments, relevant judicial pronuncements including an estimation of the likely outcome of any open tax
assements/ litigations. Deferred income tax assets are recognised to the extent that it is probable that future

(ii) Defined benefit plans (gratuity benefits )

The cost of the defined benefit plans such as gratuity are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each year end.

Summary of significant accounting policies

The accompanying notes are an integral part of the financial statements.

As Per our report of even date.

FOR JAIN CHOWDHARY & CO; For and on behalf of the board of directors of

Chartered Accountants UMA CONVERTER LIMITED

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I (SUMER RAJ LODHA) (NIRMALA LODHA)

¹ Managing Director Director

(DIN: 00033283) (DIN: 00033246)

I * (FRN:m2S7W) * |

H A

(CAHITESHSALECHA)^^-'* ' (' (ASHISH BHANDARI) (HIRAL A. SHAH)

Partner Chief Financial Officer Company Secretary

M. No. 147413 M.No: ACS31512

PLACE : AHMEDABAD PLACE : AHMEDABAD

Date: 29th May,2025 Date: 29th May,2025