(xi) Provisions, Contingent Liabilities &
Contingent Assets:

The Company recognizes a provision when
there is a present obligation (legal or
constructive) as a result of a past event and it
is probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation and a reliable estimate
can be made of the amount of the obligation.

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
probable that an outflow of resources will be
required to settle the obligation or a reliable
estimate of the amount cannot be made.
These are reviewed at each balance sheet
date and are adjusted to reflect the current
management estimate

A contingent asset is generally neither
recognized nor disclosed in financial stat¬
ements.

(xii) Fair value measurement

The Company's accounting policies and
disclosures require the measurement of fair
values for financial assets and liabilities.

The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximizing the use of relevant
observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial
statements are categorized 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:

• Level 1- Quoted (unadjusted) market prices in
active markets for identical assets or
liabilities.

• Level 2- Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable.

• Level 3- Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

(xiii) Financial Instruments:

A financial instrument is any contract that
gives rise to a financial asset of one entity and
a financial liability or equity instrument of
another entity. Financial assets and financial
liabilities are recognized when the Company
becomes a party to the contractual provisions
of the instruments.

Financial Assets

Initial recognition and measurement

The Company recognizes financial assets
when it becomes a party to the contractual
provisions of the instrument. All financial
assets are recognized initially at fair value plus
transaction costs that are directly attributable
to the acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement,
the financial assets are classified as under:

i) Financial assets at amortised cost

A financial asset is measured at the amortised
cost, if both the following conditions are met:

• The asset is held within a business
model whose objective is to hold assets
for collecting contractual cash flows,
and

• Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method. Amortised cost is

calculated by taking into account any
discount or premium and fees or costs that
are an integral part of the EIR. Interest income
from these financial assets is included in
other income using the EIR in the Statement
of Profit and Loss. The losses arising from
impairment are recognized in the Statement
of Profit and Loss.

ii) Financial assets at fair value through
other comprehensive income (FVTOCI)

Financial assets are classified as FVTOCI, if
both of the following criteria are met:

• These assets are held within a business model
whose objective is achieved both by collecting
contractual cash flows and selling the
financial assets; and

• Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

Fair value movements are recognised in the
other comprehensive income (OCI), except
for the recognition of impairment gains or
losses, interest income and foreign exchange
gains or losses which are recognised in profit
and loss. When the financial asset is
derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified
from equity to Profit or Loss and recognised in
other income/(loss).

iii) Financial assets at fair value through
profit or loss (FVTPL)

Financial assets that do not meet the criteria
for amortized cost or FVTOCI are measured at
fair value through profit or loss. A gain or loss
on a instrument that is subsequently
measured at fair value through profit or loss
and is recognized in profit or loss and
presented net in the Statement of Profit and
Loss within other income in the period in
which it arises.

iv) Equity instruments

All equity instruments other than investments
in associates are measured at fair value.
Equity instruments which are for trading are
classified as FVTPL. All other equity
instruments are measured at fair value
through other comprehensive income
(FVTOCI). The classification is made on initial
recognition and is irrevocable.

Where the Company's management has
elected to present fair value gains and losses
on equity instruments in other comprehensive
income, there is no subsequent recl¬
assification of fair value gains and losses to
profit or loss. Dividends from such
investments are recognized in profit and loss
when the Company's right to receive
payments is established.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Statement of Profit
and Loss.

Impairment of financial assets

The Company applies 'simplified approach' for
recognition of impairment loss on financial
assets for loans, deposits and trade rece¬
ivables.

The application of simplified approach does
not require the company to track changes in
credit risk. Rather, it recognizes impairment
loss allowance based on lifetime Expected
Credit Loss at each reporting date, right from
its initial recognition.

De-recognition

A financial asset is derecognized when:

• the rights to receive cash flows from the
assets have expired or

• the Company has transferred substantially all
the risk and rewards of the asset, or

• the Company has neither transferred nor
retained substantially all the risk and rewards
of the asset, but has transferred control of the
asset.

Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at
fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction cost.

Subsequent measurement

Financial liabilities are subsequently measured
at amortised cost using the effective interest
rate method. For trade and other payables
maturing within operating cycle, the carrying
amounts approximate the fair value due to
short maturity of these instruments.

Loans and borrowings

After initial recognition, interest bearing loans
and borrowings are subsequently measured
at amortised cost using Effective Interest Rate
(EIR) method. Gain and losses are recognized
in the Statement of Profit and Loss when the
liabilities are derecognized.

Amortised cost is calculated by taking into
account any discount or premium on
acquisition and transaction costs. The EIR
amortization is included as finance costs in
the Statement of Profit and Loss.

De-recognition

The Company derecognizes financial liabilities
when, and only when, the Company's
obligations are discharged, cancelled or have
expired. When an existing financial liability is
replaced by another from the same lender on
substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated
as the derecognition of the original liability
and the recognition of a new liability. The
difference in the respective carrying amounts
is recognized in the Statement of Profit and
Loss.

Offsetting financial instruments

Financial assets and financial liabilities are
offset and the net amount is reflected in the
balance sheet when there is a legally
enforceable right to offset the recognized
amounts and there is an intention to settle on
a net basis, to realize the assets and settle the
liabilities simultaneously.

(xiv) Taxes:

The tax expense comprises current and
deferred tax. Tax is recognized in the
Statement of Profit and Loss except to the
extent that it relates to items recognized
directly in equity or in OCI.

i. Current Tax

Current tax comprises the expected tax
payable or receivable on the taxable income
or loss for the year and any adjustment to the
tax payable or receivable in respect of
previous years. Current tax is determined on
the basis of taxable income and tax credits
computed for Company, in accordance with
the Income tax Act, 1961

Current tax assets and current tax liabilities
are offset when there is a legally enforceable
right to set off the recognized amounts and
there is an intention to settle the asset and
the liability on a net basis.

ii. Deferred Tax

Deferred tax is recognized on temporary
differences between the carrying amounts of
assets and liabilities for financial reporting
purpose and the amount used in the
computation of taxable profit under the IT Act.

Deferred tax liabilities are generally recognized
for all taxable temporary differences. Deferred
tax assets are recognized for unused tax
losses, unused tax credits and deductible
temporary differences to the extent that it is
probable that future taxable profits will be
available against which those deductible
temporary differences can be utilised. The
carrying amount of deferred tax asset is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are
measured at the tax rates that are expected to
apply in the period in which the liability is
settled or the asset realized, based on tax
rates that have been enacted or substantively
enacted by the end of the reporting period.

Deferred tax assets (including unused tax
credits such as MAT credit) are generally
recognized for all deductible temporary
differences to the extent that it is probable
that taxable profits will be available against
which those deductible temporary differences
can be utilized. However, in case of temporary
differences that arise from initial recognition
of assets or liabilities in a transaction (other
than business combination) that affect
neither the taxable profit nor the accounting
profit, deferred tax assets are not recognized.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the asset to be
recovered.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off assets against liabilities

representing current tax and where the
deferred tax assets and the deferred tax
liabilities relate to taxes on income levied by
the same governing taxation laws.

(xv) Earnings per share

The Company reports basic & diluted earnings
per share (EPS) in accordance with Ind AS 33
on earnings per share. Basic EPS is computed
by dividing the net profit or loss for the year by
the weighted average number of equity
shares outstanding during the year. Diluted
EPS is computed by dividing the net profit or
loss for the year by the weighted average
number of equity shares outstanding during
the year as adjusted for the effects of all
dilutive potential equity shares, except where
the results are anti-dilutive.

The Company has restated the Earnings Per
Share (EPS) and Diluted Earnings Per Share
to reflect the stock split of Equity Shares from
a face value of ' 10 each to ' 5 each.

(xvi) Cash and Cash Equivalents:

Cash and cash equivalents in the balance
sheet comprise cash at banks and on hand,
demand deposit and short-term deposits with
an original maturity of three months or less,
which are subject to an insignificant risk of
changes in value. Cash and cash equivalents
consist of balances with banks which are
unrestricted for withdrawal and usage.

(xvii) Current and non-current classification:

Assets and Liabilities in the balance sheet
have been classified as either current or non-
current.An asset has been classified as
current if (a) it is expected to be realized in, or
is intended for sale or consumption in, the
Company's normal operating cycle; or (b) it is
held primarily for the purpose of being traded;
or (c) it is expected to be realized within twelve
months after the reporting date; or (d) it is
cash or cash equivalent unless it is restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting date. All other assets have been
classified as non-current. A liability has been
classified as current when (a) it is expected to
be settled in the Company's normal operating
cycle; or (b) it is held primarily for the purpose
of being traded; or (c) it is due to be settled
within twelve months after the reporting date;

or (d) the Company does not have an
unconditional right to defer settlement of the
liability for at least twelve months after the
reporting date. All other liabilities have been
classified as non-current. Deferred tax assets
and liabilities are classified as non-current
assets and liabilities. An operating cycle is the
time between the acquisition of assets for
processing and their realization in cash or
cash equivalents.

(xviii) Impairment of Non-Financial Assets:

The Company assesses at each Balance
Sheet date whether there is any indication
that an asset may be impaired. If any such
indication exists, the Company estimates the
recoverable amount of the asset. The
recoverable amount is the higher of an asset's
or cash generating units (CGU) fair value less
costs of disposal and its value in use. Value in
use is the present value of estimated future
cash flows expected to arise from the
continuing use of an asset and from its
disposal at the end of its useful life. If such
recoverable amount of the asset or cash
generating unit is less than its carrying
amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated
as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the
Balance Sheet date there is any indication
that any impairment loss recognized for an
asset in prior years may no longer exist or may
have decreased, the recoverable amount is
reassessed and such reversal of impairment
loss is recognized in the Statement of Profit
and Loss, to the extent the amount was
previously charged to the Statement of Profit
and Loss.

(xix) Dividend

Dividend to the equity shareholders is re¬
cognized as a liability in the Company's

financial statements in the period in which the
dividend is approved by the shareholders.

Statement of cash flow

Cash flows are reported using the indirect method
prescribed in Ind AS 7 'Statement of Cash Flows',
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts
or payments and item of income or expenses
associated with investing or financing cash flows.
The cash flows from operating, investing and
financing activities of the Company are segregated.
The Company considers all highly liquid investments
that are readily convertible to known amounts of
cash to be cash equivalents.

Ind AS Optional Exemptions:

Deemed cost for property, plant and equipment

Ind AS 101 permits a first time adopter to elect to
continue with the carrying value for all its property,
plant and equipment as recognized in the financial
statements as at the date of transition to Ind AS,
measured as per the previous GAAP and use that as
its deemed cost as at the date of transition.
Accordingly, the Company has elected to measure
all of its property, plant and equipment at their
previous GAAP carrying value and use that as its
deemed cost as at the date of transition (April 01,
2016).

Designation of previously recognized financial
instruments

Ind AS 101 allows an entity to designate
investments in equity instruments at FVTOCI on the
basis of the facts and circumstances at the date of
transition to Ind AS. The Company has designated
investments in equity shares (other than
investments in equity shares of associates) as held
at FVTOCI on the basis of the facts and
circumstances that existed at the date of transition.

Terms and Conditions of Borrowings

Working Capital facilities from Banks are secured against hypothecation of entire current assets and first pari-passu
charge over movable and immovable properties of the company.

The above working capital facilities are further secured by first pari-passu on Fixed Deposit Receipts of ' 188.11
Lacs (Previous year ' 171.93 Lacs) along with equitable mortgage of the property situated at Mumbai owned by
another Company and guaranteed by personal guarantee of Ex Chairman & Managing Director and Corporate
guarantee by another company.

Amount due on bills discounted will be payable within 6 months.

The quarterly returns / statements of current assets filed with banks are in agreement with the books of accounts.
The Company is not declared wilful defaulter by any bank or financial institution or other lender.

All charges or satisfaction of charges are registered with the ROC within the statutory period.

been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Characteristics of defined benefit plan

The Company has a 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 Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy
Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the Government securities Rate will increase the
present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to
market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on
plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in
lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company
and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to
follow regulatory guidelines.

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of equity instruments which are traded in the stock exchanges is
valued using the closing price as at the reporting period.

Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

c) Risk management framework

The Company's principal financial liabilities include borrowing, trade and other payables. The Company's principal
financial assets include loans, trade receivable, cash and cash equivalents and others. The Company also holds
FVTOCI investments. The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior
management oversees the management of these risks. The Company's senior management provides assurance
that the Company's financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

i) Credit Risk

ii) Liquidity Risk

iii) Market Risk

i) 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, investment
in inter corporate deposit and loans given.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy,
procedures and control for each customer and based on the evaluation credit limit of each customer is defined.
Outstanding customer receivables are regularly monitored.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables as per the
Company's policy to mitigate the risk of default payments and makes appropriate provision at each reporting date
wherever outstanding is for longer period and involves higher risk.

Other financial assets

Credit risk from balances with banks, loans, investments is managed by Company's finance department.
Investments of surplus funds are made only with approved counterparties. No impairment on such investment has
been recognised as on the reporting date.

ii) 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
managing liquidity 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 condition, without incurring unacceptable losses or risking damage to the
Company’s reputation.

The Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of
surplus funds, bank loans and inter-corporate loans.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
commodity prices which 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 exposures within
acceptable parameters, while optimising the return.

Currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign
currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk
of changes in foreign exchange rates relates primarily to import of raw materials. When a derivative is
entered for the purpose of being a hedge, the Company negotiates the terms of those derivatives to
match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The
Company follows established risk management policies and standard operating procedures.

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 exposure to the risk of changes in market
interest rates relates primarily to the Company’s short-term borrowing. The Company constantly
monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile
and financing cost. Since all the borrowings are on floating rate, no significant risk of change in interest
rate.

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

Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations of raw materials prices linked to
various external factors, which can affect the production cost of the Company. Company actively
manages inventory and in many cases sale prices are linked to major raw material prices. To manage this
risk, the Company enters into long-term supply agreement for Raw Material, identifying new sources of
supply etc. Additionally, processes and policies related to such risks are reviewed and managed by senior
management on continuous basis.

2 CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance. The
capital structure of the Company consists of net debt and the total equity of the Company. For this
purpose, net debt is defined as total borrowings less cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. The funding requirements are met through
short-term/long-term borrowings. The Company monitors the capital structure on the basis of total debt
to equity ratio and maturity profile of the overall debt portfolio of the Company.

Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company’s
sensitivity to a ? 1 increase and decrease against the US Dollar. ? 1 is the sensitivity used when reporting
foreign currency risk internally to key management personnel and represents management’s
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis
includes only net outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a ? 1 change in foreign currency rates. A positive number below indicates
an increase in profit or equity where the Rupee strengthens by ? 1 against the US Dollar. For a ? 1
weakening against the US Dollar, there would be a comparable impact on the profit or equity.

Notes to the Financial Statements for the year ended 31.03.2025

45 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

46 The Board of Directors have proposed to recommend a dividend of ? 0.25 per equity share (face value of ? 5/- per
share) for the year, (previous year ? NIL per equity share (face value of ? 10/- per share). The proposed dividend
subject to approval at the Annual General Meeting will result in cash outflow of ? 88.47 lacs.

47 Previous year figures have been regrouped and re-arranged wherever necessary to confirm the current year
presentation.

Material accounting policies information 1

The accompanying notes form an integral part of the Financial Statements 2 to 47

As per our report of even date attached For and on behalf of the Board

For Khandelwal & Mehta LLP H.D. Ramsinghani

Chartered Accountants J. K. Parakh Chairman and Managing Director

Firm's Registration No. W100084 President & Chief Financial Officer DIN : 00035416

S. L. Khandelwal

Partner Bhavna Dave Brij Lal Khanna

Membership No. 101388 Company Secretary Director

UDIN : 25101388BMNVNE1161 DIN : 00841927

Place : Mumbai
Date : May 14, 2025