ii. ) The company has used a practical expedient by computing the expected loss allowance for trade

receivables based on historical credit loss experience and adjustments for forward looking information. (Refer Note 28(iii)(a) for movement in expected credit loss allowance)

iii. ) No trade receivables are due from directors or other officers of the Company either severally or

jointly with any other person. Also no trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

iv. ) The above trade receivables has been hypothecated as security for fund based and non-fund

based credit facility from the banks.

v. ) Trade receivables are non-interest bearing and are usually on trade terms based on credit

worthiness of customers as per the terms of contract with customers.

vi. ) Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

vii. ) Bonus Shares / Shares issued for consideration other than cash:

Aggregate number of shares issued as bonus and shares issued for consideration other than cash during the period of five years immediately preceding the reporting date are as follows:

viii. ) Shares reserved for issue under Employee stock option plan.

During the year under review, company has not provided any stock option plans to its employees.

ix. ) Dividend paid and proposed

No Dividend was declared for the current financial year taking into consideration the resources needed for future expansion plans. Also, the dividend distribution policy is available on the website of the company www.bansalroofing.com under head "Policies of the Company" under Investor Section Tab.

Retained earnings are the profits that the company has earned / incurred till date, less any transfer to general reserve, dividends or other distributions paid to shareholders. Retained earnings include remeasurement gain / (loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

i) Nature of Security:

a. Secured by mortgage over all the immovable properties (Unit I II) of the company.

b. Secured by a hypothecation of entire current assets as well as movable fixed assets of the company (present and future).

c. Pledge on Deposit with bank of Rs 25 lakhs.

d. Secured by personal guarantee of Managing Director and Whole Time Director of the company.

ii) Interest rate and terms of repayment:

a. Term loan 1 from Axis bank amounting to Rs. 391.40 lakhs (31st March, 2023: Rs. 417.80 lakhs) is repayable in 72 monthly instalments of Rs 8.20 lakhs each (principal only) starting from 30^th June

2021 to 31^st May 2027. Interest is payable on monthly basis at Repo rate (as declared by RBI) plus 200* bps p.a.

b. Term loan 2 from Axis bank amounting to Rs. 90.10 lakhs (31st March, 2023: Rs. 138.10 lakhs) is repayable in 39 monthly instalments of Rs 4 lakhs each (principal only) starting from 31^st December

2022 to 31^st March 2026. Interest is payable on monthly basis at Repo rate (as declared by RBI) plus 200* bps p.a.

c. ECLGS Loan from Axis bank amounting to Rs. NIL lakhs (31st March, 2023: Rs. 60 lakhs) was repayable in 36 monthly instalments of Rs 1.66 lakhs each (principal only) starting from 31^st December 2023 to 31^st December 2026. Interest is payable on monthly basis at Repo rate (as declared by RBI) plus 200* bps p.a. However in the March 2024, company pre-paid the ECLGS loan of Rs 53.37 lakhs since company had positive balance in its cash credit account and were fulfilling the prepayment conditions of the ECLGS loan.

d. Vehicle Loan 1 from Axis bank amounting to Rs. 1.85 lakhs (31st March, 2023: Rs. 8.92 lakhs) is repayable in 36 monthly instalments starting from 5^th July 2021 to 5^th June 2024. Fixed interest is payable on monthly basis at 7.75 % p.a.

e. Vehicle Loan 2 from Axis bank amounting to Rs. 14.87 lakhs (31st March, 2023: Rs. 25.91 lakhs) is repayable in 38 monthly instalments starting from 1^st May 2022 to 1^st June 2025. Fixed interest is payable on monthly basis at 7.10 % p.a.

f. During the year in January 2024, company has increased its Cash credit cum Bank Guarantee facility from Axis bank from 3.5 crores to 8.5 crores sighting increase in business operations. Interest is payable on monthly basis at Repo rate (as declared by RBI) plus 200* bps p.a. Renewal fees of 0.10% is payable annually.

*From April 2023 to August 2023, bank was charging 330 bps for term loan 1, 310 bps for term loan 2, 275 bps for ECLGS loan and 310 bps for cash credit facility. On negotiation with bank, from September 2023 it was decreased to 240 bps for all credit facilities. From January 2024, when we further increased our exposure with bank by enhancing cash credit cum bank guarantee facility by 5 crores, we further negotiated and brought it down to 200 bps for all credit facilities.

iii) Term loan from bank contain certain debt covenants. The company has satisfied all these debt covenants prescribed in the terms of these loans.

iv) The company has not made any default in the repayment of loans to bank and interest thereon.

v) In pursuant to borrowing taken by the company from the banks on security of current assets, the company is required to submit the information periodically which includes the stock statement, book debts and trade payables and no there were no material discrepancy between books of accounts and statements filed with the bank. Following table provides the above details:

NOTE 23: EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

judgment / decision pending at judicial authorities. The company has disclaimed the liability and defending the action. The company has been advised by its legal counsel that its position is likely to be upheld since liability is duly insured. Based on it, the management believes that the company has a good chance of success in above matter and hence no provision for any liability has been made in the financial statements.

The company does not have any contingent assets and capital commitments during the current as well as previous reporting period.

Note 25: RELATED PARTY DISCLOSURES

The related parties as per the terms of Ind As-24,"Related party Disclosures", notified under section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules 2015 (as amended from time to time), is disclosed below:

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at year end are unsecured and interest free. The settlement of these balances occur through payment. The company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended 31^st march 2024. This

assessment is undertake each financial year through examining the financial position of the related party and the market in which the related party operates.

All the liabilities for post-retirement benefits being Gratuity are provided on actuarial basis for the company as a whole, accordingly the amount pertaining to KMP are not included above.

B. Defined Benefit Plan

Gratuity Plan: The Company has a defined gratuity plan. Every Employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The level of benefits provided depends on the member's length of service and salary at retirement age. This gratuity plan is managed by the trust which maintains its investment with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using 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 management has assessed that trade receivables, cash and cash equivalents, other bank balances, other current financial assets, borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair value

i. ) The fair value of unquoted instruments is estimated by discounting future cash flows using rates

currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the table below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

ii. ) The fair values of the company's interest bearing borrowings are determined by using effective

interest rate (EIR) method using discount rate that reflects the issuers borrowing rate as at the end of the reporting period. The own non-performance risk as at 31^st march 2024 was assessed to be insignificant.

iii. ) The fair value of security deposit has been estimated using DCF model which consider certain

assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

iv. ) Fair Value hierarchy

Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period for identical assets or liabilities. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value am instrument are observable, the instrument is included in level 2.

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

This section explains the judgment and estimates made in determining the fair value of financial assets that are:

a. Recognized and measured at fair value

b. Measured at amortized cost and for which fair value is disclosed in financial statements.

Note 28: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's board of directors has overall responsibility for the establishment and oversight of the company's risk management framework. Risk management systems are reviewed regularly to reflect changes in market conditions and the company's activities.

The company's activities expose it to market risk, liquidity risk and credit risk which are measured, monitored and managed to abide by the principles of risk management.

i.) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: currency risk, interest rate risk and commodity risk.

a. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. During the year the company has no exposure to such risk since company has no financial assets or liabilities as on the reporting date in foreign currency.

b. 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's main interest rate risk arises from long-term borrowings with floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the company's cash flows as well as costs.

c. Commodity price risk

Our company is exposed to commodity price risk primarily due to the volatility in steel prices, which constitute a significant portion of the company's raw material costs. Fluctuations in steel prices can materially impact the profitability of the company. To mitigate this risk, the company employs a just-in-time inventory system, minimizing holding costs and reducing the impact of price volatility. Additionally, the company strategically maintains its stock levels up to the risk appetite to ensure that it balances the need for inventory with the potential risks associated with price changes. Furthermore, the company purchases its inventory only against order confirmation

at current prices to avoid price volatility risk. These measures aim to stabilize the company's financial performance and protect against adverse price movements.

ii.) Liquidity Risk

Liquidity risk is the risk that company may not be able to meet its financial obligations as they become due. The company's approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

iii.) 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 obligation towards the company and arises principally from the company's receivables from customers and deposits with banking institutions. The maximum amount of the credit exposure is equal to the carrying amount of these receivables. The company manages its own exposure to credit risk by dealing only with parties which has good credit rating / worthiness given by external rating agencies or based on company's past assessment. a. Trade Receivables

The company has developed guidelines for the management of credit risk from trade receivables. All customers are subject to credit assessments as a precautionary measure, and the adherence of all customers to payment due dates is monitored on an ongoing basis, thereby practically eliminating the risk of default. The company has a policy of dispatching goods only after receipt of consideration except for regular clients. However in case of provision of services, payment is due only on post completion of the service (stage wise). Hence chances of bad debt is more in case of sale of service.

The company uses practical expedient for trade receivables for computing expected credit loss allowance based on a provision matrix. An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on historically observed default rates (average rate of bad debt on revenue for five years) adjusted for forward looking estimates and by applying it on current year's revenue. The company does not hold collateral as security.

b. Financial Instruments and deposits

The company maintains deposits with Axis Bank, not for investment purposes, but as a condition for availing terms loan and as margin money against bank guarantee issued. Consequently, the credit risk management strategy is not focused on assessing deposit investments but rather on ensuring that the bank creditworthiness. Axis Bank's established reputation and strong market presence provide a level of assurance for these deposits. Nonetheless, the company remains vigilant, monitoring the bank's creditworthiness to safeguard its funds.

Note 29: Capital Management

For the purposes of the company's capital management, Capital includes issued capital and all other equity reserves. Net Debt includes all long and short term borrowings as reduced by cash and cash equivalent and deposits with banks. The primary objective of the company's capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The company manages its capital structure and make adjustments in the light of changes in economic environment conditions and the requirement of the financial covenants. The management monitors the return on capital, as well as the level of dividends to equity shareholders.

The above particulars, as applicable, have been given in respect of MSMEs to the extent they could be identified on the basis of information available with the company.

NOTE 31: CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section 135 of the companies Act, 2013, the company has to incur at least 2% of average net profits of the preceding three financial years onwards Corporate Social Responsibility (CSR). Accordingly, a CSR committee has been formed for carrying out activities as per the Schedule VII of the Companies Act, 2013. Details are as below:

NOTE 32: Based on the Company's internal structure and information reviewed by the Chief Operating Decision Maker to assess the company's financial performance, the company is engaged solely in the business of manufacture of Pre-Engineered Building and Roofing Products. Accordingly, the company has only one operating segment.

NOTE 33: The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.

i. ) Borrowings includes long term and short term borrowings.

ii. ) Earnings for Debt Service = Net Profit after taxes Depreciation and Amortisations Finance Costs

iii. ) Debt Service = Interest payments Principal Repayments

iv. ) Average shareholder's Equity = {(Total Opening Equity Total Closing Equity)/2}

v. ) Average Inventory = {(Total Opening Inventory Total Closing Inventory)/2}

vi. ) Average Trade Receivables = {(Total Opening Trade Receivables Total Closing Trade

Receivables)/2}

vii. ) Average Trade Payables = {(Total Opening Trade Payables Total Closing Trade Payables)/2}

viii. ) Average Working Capital = {(Opening Working Capital Closing Working Capital)/2}

ix. ) Working Capital = Current Assets - Current Liability

x. ) Capital Employed = Total Equity Total Borrowings Deferred Tax Liability Explanation for the change in the ratio by more than 25% as compared to previous year:

1. The 26.14% drop in our current ratio is primarily due to an increase in trade payables and a decrease in inventories, reflecting strategic inventory management and increased reliance on supplier credit.

2. The 42.93% drop in the debt-equity ratio is primarily due to a significant reduction in outstanding debt, reflecting improved financial stability and stronger equity base.

3. The 27.69% drop in return on equity is primarily due to increased raw material costs and lower profit margins, which have impacted overall profitability and diluted shareholder returns.

4. The 56.45% increase in our inventory turnover ratio is primarily due to improved inventory management practices and more efficient supply chain processes, leading to faster sales and reduced stock levels.

5. The 99.16% increase in our net capital turnover ratio is attributed to enhanced operational efficiency and effective asset utilization. Streamlined production processes and optimized use of capital have significantly boosted sales relative to our net capital, reflecting improved productivity and financial performance.

6. The decrease in the net profit ratio by 24.91% is primarily due to increased raw material costs and higher operational expenses. Despite efforts to manage costs, these factors have significantly impacted profitability, reducing the overall net profit margin for the period.

NOTE 35: ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

i. ) The Company does not have any Benami Property where any proceedings have been initiated or

are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. ) The Company has not been declared wilful defaulter by any bank or financial institution or

government or any government authority.

iii. ) The Company does not have any transactions with companies struck off under section 248 of

Companies Act, 2013 or section 560 of Companies Act, 1956:

iv. ) The Company has not entered into any scheme of arrangement which has an accounting impact

on current or previous financial year.

v. ) The Company has not advanced or loaned or invested funds to any other person or entity,

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

vi. ) The Company has not received any fund from any person or entity, including foreign entities

(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) 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

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

vii. ) The Company does not have any such transaction which is not recorded in the books of accounts

that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).

viii. ) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

ix. ) The Company has not revalued its property, plant and equipment (including right-of-use assets)

or intangible assets or both during the current or previous year.

x. ) The Company does not have any charges or satisfaction which are yet to be registered with the

Registrar of Companies beyond the statutory period.

xi. ) The borrowings obtained by the Company from banks and financial institutions have been applied

for the purposes for which such loans were was taken.

xii. ) The company has complied 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.

xiii. ) There are no events or transactions after the reporting period which is required to be disclosed under Ind AS 10.

1

The Company has given bank guarantee in favour of various parties against various contracts. The company has assessed that it is only possible, but not probable, that outflow of economic resources will be required and hence no provision has been made in the financial statements.

#A legal case has been filed against the company involving accident of company bus. Future cash outflows in respect of above legal matter against the company is determinable only on receipt of