i. During the financial year ended 31st March, 2024, the Company has issued 20,00,000 Preference shares at

the face value of Rs. 100 per share by way of private placement of shares.

c. Rights, preferences and restrictions attached to the preference shares

- Type : Non-Convertible Non-Cumulative Redeemable Preference Shares (“NCRPS”)

- The NCRPS issued by the company shall be subject to Memorandum and Articles of Association of the Company and the provisions of the Companies Act, 2013 (“the Act”) or any statutory modifications or reenactment thereof. It shall carry a preferential right vis-a-vis equity shares of the Company with respect to payment of dividend, payment along with premium on its redemption and repayment in case of a winding up of the Company;

- The said NCRPS shall not be listed with any Stock Exchange

- It shall be non-participating in the surplus funds

- It shall be non-participating in the surplus assets and profits which remains after the entire capital has been repaid, on winding up of the Company;

- It shall be paid dividend on a non-cumulative basis @ 7% per annum on the Face Value of NCRPS as may be decided by the Company at its discretion.

- The NCRPS shall not be convertible into equity shares of the Company.

- The holder of NCRPS shall have right to vote only on Resolution, which directly affect the right attached to Preference Shares.

- NCRPS shall be redeemable at par, on completion of 9 years from the date of allotment of such NCRPS in accordance with the provisions of the Act.

1. The Company, based on expert opinion, had netted off the balances available under Securities Premium and Capital Reduction Reserve created on reduction of share capital, against the debit balance of Retained Earnings during financial year ended 31st March, 2023.

2. The Company has issued Non Convertible Non Cumulative Redeemable Preference shares (NCRPS) on 11th May, 2023. Considering the accounting principles to be followed in line with Indian Acoounting Standards, the Company has computed the liability portion of NCRPS as the present value of the contractual obligations associated with the instrument. The difference between the issue amount of the NCRPS and the liability so computed has been treated as the ‘Equity component of compound financial instruments’ and grouped under other equity.

Nature and purpose of reservesRevaluation Reserve :

Revaluation Reserve is created on revaluation of Land and Building of the Company. The proportionate amount will be transferred to Retained Earnings on sale of the asset concerned.

General Reserve :

General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.

Retained Earnings :

The balance in the Retained Earnings primarily represents the surplus after payment of dividend and transfer to reserve.

Remeasurement of Actuarial Value of Gratuity:

It includes remeasurement gains and losses on defined benefit plans recognized in other comprehensive income. This is not reclassifiable to statement of profit and loss.

1. The Company had availed the Term Loan of Rs. 780 Lakhs & Rs. 3500 Lakhs and Working Capital Sanction Limits of Rs. 3200 Lakhs (Fund Based & Non Fund Based) from Scheduled Bank at the effective rate of interest ranging from 9.75% to 10.34% p.a. linked to 3 months T-Bill and the said credit facilities are secured against the following securities of the Company

i. Primary Security - Hypothecation of all Stocks and Book Debts and Current Assets and Plant and Machineries, Both Present and Future.

ii. Collateral Security- Mortgage of Factory Land & Building situated at Survey No. 259/10/1,259/10/2, 259/ 10/3 and 259/11, Village Dadra, U.T of Dadra and Nagr Haveli, District Silvassa

iii. Personal Guarantee of one of Promoter Group person"

2. The Term Loan of Rs. 780 Lakhs is repayble in 60 Equal Monthly Installments starting from 15th February, 2023 & the Term Loan of Rs. 3500 Lakhs is also repayble in 60 Equal Monthly Installments starting from 7th February, 2024.

3. The Company had availed Auto Vehicle Loan of Rs. 15 Lakhs & Commercial Vehicle Loan of Rs. 15.50 Lakhs from Scheduled Bank. The effective rate of interest is ranging from 9.1% to 9.32% p.a. and the said Vehicle Loans are secured against hypothecation of the respective Vehicles.

4. The Auto Vehicle Loan of Rs. 15 Lakhs is repayble in 60 Equal Monthly Installments starting from 5th December, 2023 & the Commercial Vehicle Loan of Rs. 15.50 Lakhs is also repayble in 60 Equal Monthly Installments starting from 5th September, 2023.

5. The difference between quarterly returns filed by the Company with banks / financial institutions and books of accounts were on account of explainable items and not material in nature.

6. During the financial year ended 31st March, 2024, the Company has issued Non Convertible Non Cumulative Redeemable Preference shares (NCRPS) on 11th May 2023. Considering the accounting principles to be followed in line with Indian Acoounting Standards, the Company has computed the liability portion of NCRPS as the present value of the contractual obligations associated with the instrument. The difference between the issue amount of the NCRPS and the liability so computed has been treated as the 'Equity component of compound financial instruments' and grouped under other equity.

The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) has been determined to the extent such parties have been identified on the basis of information available with the Company. (Refer to Note no. 29.4)

Unpaid Dividend is transferable to Investor Education and Protection Fund. The earmarked balance is lying in the current account for unpaid dividend. However the Company has not been able to transfer the amount of unpaid dividend from the said account to Investor Education & Protection Fund as the account has been attached by the Sales Tax Authorities in pre CIRP period.

As per approved resolution plan, the contingent liabilities and commitments, claims and obligations of the Company, stand extinguished and accordingly no outflow of economic benefits is expected in respect thereof which pertains to period on or before the effective date (i.e 25th April, 2021) of implementation of Resolution Plan duly approved by the NCLT Order dated 26th March, 2021 read with Order dated 7th June, 2021. Kindly refer to Note 29.11 for Orders received from Income Tax Authorities pertaining to Pre CIRP Period.

29.5 Current Tax & Deferred Tax :

There is no provision for tax for the year ended March 31,2024 on account of carry forward unabsorbed depreciation losses. The Company, has assessed at 31st March, 2024, the net Deferred Tax Asset created in earlier year and accordingly no further provision is required on account of Deferred Tax.

29.6 The Financials of the Company have been prepared on a going concern basis.

29.7 Figures for the previous year have been rearranged / re-grouped / reclassified wherever necessary, to correspond with those of the figures for the current year.

29.8 The Company has only one primary segment i.e. Glass Processing Business and hence no separate primary segment information has been furnished herewith. The Company has disclosed the secondary segment (Geographical) in consolidated financial statements.

29.9 The Company had made an investment by way of subscription in the Equity Share Capital of M/s. Sejal Glass & Glass Manufacturing Products LLC, the Company incorporated under laws of UAE, to the extent of AED 150 Lakhs comprising of 15,000 Equity Shares of AED 1000/- each at par, representing 99.01% stake in the said LLC and thereby the said LLC has become subsidiary of the Company w.e.f. 19th May 2023. The said LLC earlier was subsidiary of Sejal Glass Ventures LLP (associate of the Company) upto 18th May, 2023.

29.10 Exceptional Item:

There are no exceptional items for the year ended 31st March, 2024. Exceptional Loss for the year ended 31st March, 2023 of Rs. 92.57 Lakhs is in respect of loss on sale of non core assets as envisaged in Resolution Plan approved by the Hon’ble National Company Law Tribunal, Mumbai Bench, as the same being non routine item.

29.11 The Company had made all the payments in accordance with the Resolution Plan as approved by the Hon’ble NCLT, Mumbai bench, vide order dated 26th March, 2021 read with order dated 7th June, 2021. Consequent upon the payments, the Resolution Plan stands fully implemented and the role of the Monitoring Committee had come to an end. The Chairman of the Monitoring Committee (Erstwhile Resolution Professional) had filed an Interlocutory Application along with the progress report with the Hon’ble NCLT, Mumbai bench for Orders. The said application has been allowed and disposed of.

During the financial year ended 31st March, 2024, the Company has received orders from Income Tax Authorities raising demand for the period prior to the Hon’ble NCLT Order dated 26th March, 2021 (Pre-CIRP period) approving the Resolution Plan submitted by the Successful Resolution Applicants. The Company is contemplating taking necessary steps with the appropriate authorities against the said orders. There is no material impact on financials, operations or other activities of the Company due to the belowmentioned orders as all the orders and demands are pertaining to the Pre-CIRP period and stands extinguished-

1. Income Tax department has raised a Penalty demand under u/s 271(1)(C) pertaining to AY 2012-13, for an amount of Rs. 3882 Lakhs

2. Income Tax department has raised a demand under u/s 147 rw 144B pertaining to AY 2018-19, for an amount of Rs. 157 Lakhs.

29.12 Relationship with the struck off Companies : There are no transactions with struck off companies for the year ending March 31,2024 and March 31,2023

29.13 Additional Statutory Information :

i The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. However, Charge of Tempo Loan has not been registered by Scheduled Bank of Rs. 15.50 Lakhs.

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

iii The Company has not advanced or loaned or invested funds ( (either from borrowed funds or share premium or any other sources of kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writting or otherwise) 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 Company (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

iv The Company has 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:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of theFunding Party (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

v The Company have no 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 provisions of the Income Tax Act, 1961).

vi The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

vii The Company has not given any loans or advances in the nature of loans to the promoters, directors, KMP and other related parties (as defined under Companies Act 2013) either severely or jointly.

viii The Company is not covered under Section 135 of the Companies Act during the year.

ix During the year, the company has not been declared as willful defaulter by any Bank or Financial Institution or any other lender.

x No material events have occurred between the Balance Sheet date to the date of issue of these standalone financial statements that could affect the values stated in the financial statements as at 31st March, 2024

29.14 Employee benefit plans29.14. a Defined contribution plans

The Company makes Provident Fund and Employee’s State Insurance contributions in respect of all the qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 16.82 Lakhs (Year Ended 31st March, 2023 Rs 13.60 Lakhs) for Provident Fund and Employee’s State Insurance contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

29.14. b Defined benefit plansThe Company offers the following employee benefit schemes to its employees:i. Gratuity

ii. Compensated Leave Absences

The Company has obtained Actuarial Valuation Report of Gratuity and Leave Encashment as at 31st March, 2024. During FY 2023-24 the Company has debited to its Profit and Loss Account Gratuity of Rs 12.60 Lakhs (Year Ended 31st March, 2023 Rs 9.49 Lakhs) and Leave Encashment to the extent of Rs. 5.84 Lakhs (Year Ended 31st March, 2023 Rs 6.01 Lakhs) to correctly show the year end liability as at 31st March, 2024

The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

29.16 Financial Risk Management

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

• Credit risk ;

• Liquidity risk ; and

• Market risk

A. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade receivables and loans) and from its financing activities (deposits with banks and other financial instruments).

Credit Risk Management

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company’s maximum exposure to credit risk as at 31st March, 2024 and 31st March, 2023 is the carrying value of each class of financial assets.

ii Cash and Bank Balances

The Company held cash and bank balance of Rs. 122.32 Lakhs at 31st March, 2024 and Rs. 154.68 Lakhs at 31st March, 2023. The credit risk on bank balances is limited as the Company generally invests in deposits with banks where credit risk is largely perceived to be extremely insignificant.

B. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - trade payables and borrowings.

Liquidity risk management

The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could undermine the Company’s credit rating and impair investor confidence.

C. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments.

i Currency Risk

The Company undertakes transactions denominated in foreign currencies and thus it is exposed to exchange rate fluctuations. The Company actively manages its currency rate exposures, arising from transactions entered and denominated in foreign currencies

ii Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company is exposed to interest rate risk as it has liabilities based on floating interest rates as well. The Company reviews the interest rate risks on period basis and try to mitigate the risk by having balanced portfolio of fixed and variable rate of borrowing.

Interet Rate Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

iii Price Risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in quoted instruments. There are no investments held by the Company which are measured at fair value either through profit and loss or fair value through other comprehensive income, hence the Company is not exposed to price risk.

The carrying amounts of trade receivables, cash and bank balances, loans, borrowings, and trade payables are considered to be approximately equal to the fair value.

I. Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount 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.This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and, (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the Indian accounting standard. An explanation of each level is as follows :

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity instruments that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, 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. If all significant inputs required to fair value an 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 is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

II. Valuation techniques used to determine fair value

Significant valuation techniques used to value financial instruments include:

• Use of quoted market price or dealer quotes for similar instruments

• Using discounted cash flow analysis.

29.18 Capital Management

The company’s objectives when managing capital are to^ 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^ maintain an optimal capital structure to reduce the cost of capital.The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-today needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.The management monitors the return on capital as well as the level of dividends to shareholders. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

* Net Profit Before Tax and Exceptional Items, is considered to eliminate the one time in nature transactions on account of Deferred Tax (Refer Note 29.5) and Exceptional Item (Refer Note 29.10) for financial year ended 31st March, 2023.