30 Deferred Taxation

In view of accumulated losses and the absence of the virtual certainty supported by convincing evidence required under Indian Accounting Standard 12 ‘‘Income Taxes”, on unabsorbed depreciation, carried forward losses and other temporary differences (after considering the deferred tax liability on fixed assets) have not been recognised as there are no timing differences, the reversal of which, will result in sufficient taxable income.

As per appraved resolution plan, the contingent liabilities and commitments, claims and obligations stand extinguished and accordingly no outflow of economic benefits is expecled in respect thereof The SmlT

(NCLT) atd^ ITT™:"⁶ “^P°^{n aPPr}°^Va' ^th'^{S Resoluti}°^{n plan} t>V the National Company Law Tribunal he teMiies dim "a "“T ““ ^{Paynnen, ,0}"^ardS *^{he IRP C0S,S a}"^{b by ,he creclitOTS} >" terms of this plan all

e ore the Effective Date (i.e. 2nd May, 2023) and are remaining as on that date shall stand extinguished abated and settled ,n perpetuity without any further act or deed. The Resolution plan further provides that implementahon of ' resolution plan will not affect the rights of the Company to recover any amount due to the Company and there shall be no set off of any such amo^egwerable by the Company against any liability discharged or extinguished

35 SEGMENT REPORTING

The Company is predominantly engaged in Manufacturing. The Company is operating in India hence there is no reportable geographic segment According no disclosure is required under Indian Accounting Standard 108 ^{SsPC Segment}' ^Ac''^0,dlli§'-^V

35 (A) FINANCIAL RISK MANAGEMENT

m~rr::^na,:,^Cia' !^labllltl1 ^{mainly 0fb0rr}°^{WingS> trade} W** ^payables. The Company* financial assets comprise mainly of

crcdft n^ ldqTiditv risk ^ ^W ^ ^l0iU1S=^{,rade leCeivab,eS and 0ther rcceivahle? The} Company is therefore exposed to Market risk,

Tlie following disclosures summarize the Company's exposure to financial risks and information regarding measures to manage exposure lo such risks.

1) Market Risk

Market risk is the risk that the fair value of future casli flows of a financial instrument will fluctuate because of changes in market interest rates. Market risks comprises three types interest rate risk currency and other price risk. Financial instruments affected by market risk includes borrowings investments trade payables, trade receivables, loans.

/V\Ki ANV

a) Interest rate risk

Interest rate is the risk that the fair value or future cash flows ol'a financial instrument will fluctutate because of changes in market interest rates.

b) Other price Risk

Other price risk is the risk that the fair value of a financial instrument will fluclutatc due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments. The company is exposed to price risk arising mainly from investments in equity instruments recognized at FVTOCI. As at 31st March 2024, the carrying value of such investments is Rs3.61 Lacs< Previous year Rs 3.97 Lacs ) The details of such investment in equity instruments are given in Schedule 5.

2) Credit Risk

Credit risk refers to risk that the counterparty will default on its contractual obligations residing in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables investments, cash and cash equivalents, balances with banks, loans and other receivables.

The average credit period on salts of products is 30 days. Credit risk arising from trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management.

3) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The table below analysis financial liabilities ol the Company into relevant maturity groupings based on the remaning period from the reposrting dale to the contractual maturity dale. The amounts disclosed in the table arc contractual undiscounted cash fows .

35 (B) CAPITAL MANAGEMENT

For the purpose of the Company's Capital Management, capital includes issued capital and all other equity reserves attributable to equity'shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

36 Implementation of Resolution Plan

Pursuant to the Resolution Plan submitted by "East India Drums & Barrels Mpnufaejuriiig Pvt. Ltd." (referred to as "Resolution Applicant")

^a*'^{U ib approval b}*^{the Ho),}’^{able Nati0}"al Company Law Tribunal.. Mumbai bench vide their order dated May 02,2023 for the corporate insolvency of the Company, which will be implemented from April 01,2024 otherwise as stated in below notes, the following consequential impacts have been given in accordance with approved resolution plan:

a) The existing directors of the Company as on the dale of order have stand replaced by the new Board of Directors from their office with effect from March 30, 2024. As on date Board Consist of Madhav Jayesh Valia (Whole Time Director), Sunil Mahadeo Patil (Executive Director), Madhu Nitin Kanadia {Independent Director).

b) 1 he authorised share capital ol the East India Drums and Barrels Manufacturing Private Limited as on closing date i.e. April 01,2024 will be merged with the authorised share capital of the Company. As a result, the authorised share capital of the Company will increase from 230 lakh equity shares of Rs. 10 each to 480 lakh equity shares of Rs. 10.

c) After merger, the company name will be changed from "Precision Containcurs Limited" to "East India Drums & Barrels Manufacturing Ltd", as per approved Resolution plan.

d) With effect from March 31,2024, the existing issued, subscribed and paid up equity share capital of the company has been reduced from

2,23.81,200 shares of Rs. 10 each to 7,74,221 shares of Rs. 10 each thereby reducing the value of issued, subscribed and paid up capital of the company by Rs. 2160.70 lacs. As per approved resolution plan, Promoters holding of equity shares 30,25.675 { out.of total 2,23.81,200 nos equity shares) ofRs 10 each stand fully cancelled and extinguished. As prescribed in the Resolution Plan the reduction in the share capital of the company amounting to Rs. 2160.70 lacs along with Security Premium amounting to Rs. 50 lacs is adjusted against the debit balance, as appearing in its profit and loss account (i.e. retained earnings).

e) In respect of dc-recognition of operational and financial creditors, difference amounting to Rs. 1489.43 lacs between the carrying amount of financial liabilities extinguished and consideration paid, is recognised in statement of profit or loss account in accordance with "Ind-As -109" on "Financial Instuments" prescribed under section 133 of the Companies Act, 2013 and accounting policies consistently followed by the Company and disclosed as an "Exceptional Items". Further, these write back includes parties of creditors, advances and lenders.

37 Impact of claims received by the IRP/RP

As per NCLT order dated 02.05.2023 the amount Payable to Financial Creditor & Operational Creditor & Employees is Rs. 509.19 lacs. Out of this Rs. 5.45 lacs is payable to operational creditor & Rs. 8.54 lacs is payable to Employees and also amount payable to Financial Creditor is Rs. 486.00 lacs & balalance of Rs. 9.20 lacs is payable to COC. 1 he amount has been paid & effect of the same is given in the financials.

38 RECLASSIFICATION

Previous year's figures have been r^rpffiffltnjttotsificd wherever necessary to correspond with the current year's classification/ disclosures

Pursuant to commencement of CIRP process and filings of claims by financial creditors as mentioned in point no. 35 above NCLT has crystalised the amount to be nairi to ^{Wr W}"^h°^Ut “ ^S°^{thE Pr}°^{vis,0n 0f lntcrest has not bee}" ™^de- of the NCLT order have given as the payment arc being made as per the Order

40 GOING CONCERN

Pursuant to.thc Resolution Plan submitted by "East India Drums & Barrels Manufacturing Pvt. Ltd Ý (referred to as "Resolution Applicant") and its approval by the Hon'able National Company Law Tribunal. Mumbai bench vide their order dated May 02,2023 for the corporate insolvency of the Company, which will be implemented from April 01,2024, the financial statements have been prepared on “going concern basis”.

41 NOTES ON ACCOUNTS

a) The company do not have any Benami properly, where any proceeding has been initiated or pending against the Company for holding any Benami Property.

b) The company do not have any transactions with companies struck off

c) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

d) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

bite, ^{haVC n}°‘ ^adVal1Ced ^ ^!°^aned °^{r mVeSted} ‘^{UndS t0 Sny 0ther PerS}°"^(S) °^{r C}"^{lity (1CS)}’ ^mClud'^{ns fdre}'$ⁿ ^‘ities (imermcdiarics) with the understanding that the

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 provide any

guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

f) The company have not received any fund from any pcrson(s) or entity(ies ), including foreign entities (Funding Party) with the understanding (whether recorded in writing or Otherwise) that the Company shall

(i) 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)

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

g) The company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income eluting the year in the tax assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,196!)

h) The Company has complied with die number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Lavers)

Rules,2017 ^y '

42 The Hon’ble NCLT, Mumbai Bench has approved the Resolution Plan tor the Company vide Order dated 02/05/2023. In view of the said order, the status of the Resolution Professional has changed to Monitoring Agent & Er^ja^^jution Ifrofessional. Further as per die minutes of the Fourth Meeting of the Monitoring Committee of“Prccision Containeurs Limited” the new directors of the Co^^jiibf&rS^ioldmg the office as per the terms of the Resolution Plan. SASF do not have any objection to the proposed reconstitution ofthe Board of Directors ffs/ V\ V" \\

.....— -to,,., c_d,„_Po_m„

to the Board of Directors of the Company. ^{fe d the Resolul|}on Plan approved by the NCLT vide order dated 02.05.2023

cniire paymem «ndc, ft, ‘S^-’ *' ^l,,ve “™™b to. to

.........................