Atam Valves Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

ii) Rights, preferences and restrictions attached to equity shares :

The Company has only one class of equity shares having face value of ? 10 per share. Each share holder is entitled to one vote per share. The dividend if any proposed by the Board of Directors will be subject to approval of the share holders in the ensuing Annual General Meeting except interim dividend which is approved by Board of Directors. In the event of the liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion of number of equity shares held by each equity share holder.

Nature and Purposes of Reserves Securities Premium

This represents amount of premium received on issue of shares at a price more than its face value. The reserve is to be utilised in accordance with the provisions of the Companies Act 2013.

Capital Reserve

This represents forfeiture of amount received on issue of convertible share warrants on account of non-exercise of option by the warrant holders within time prescribed as per the terms of allotment of such warrants. The reserve is to be utilised in accordance with the provisions of the Companies Act 2013.

General Reserve

This represents retained earnings which are kept aside out of company’s profit. It is a free reserve which can be utilized for distribution to shareholders.

Retained Earnings

Retained earnings are the profits earned till date after transfers to general reserve, dividends or other distributions paid to the shareholders. It is a free reserve which can be utilized for distribution to shareholders.

Loans repayable on demand from banks are secured by hypothecation of inventories and by charge on book debts and property, plant and equipments of the Company.

Further, there is a collateral security of property situated at H No 95, Near Chawla Hospital, Shaheed Udham Singh Nagar, 144001, property situated at Khasra No. 15953/1, 15952, Industrial Area, GT Road, Bypass, Near Hind Metal Works, Jalandhar and property situated at E-11, Industrial Area, Jalandhar owned by directors of the company.

These loans are also guaranteed by Amit Jain, Vimal Parkash Jain and Pamila Jain (directors of the company).

Disclosures as per Ind AS 19 “Employee Benefits”

(a) Defined Contribution Plan

The employer contribution to Provident Fund is ? 25.27 Lakhs for the year ended March 31,2025 (Previous Year ? 22.19 Lakhs). The contributions during the year have been recognized as expense under the head ‘Contribution to Provident Fund and other funds'' above.

(b ) Defined Benefit Plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees and this is a non-funded plan. The Company accounts for the liability for gratuity benefits payable in the future based on actuarial valuation using projected unit credit method.

The defined benefit plans typically expose the Company to actuarial risks such as interest rate risk, longevity risk and salary risk.

Salary Risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Interest Risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and rate of salary escalation. The sensitivity is computed by varying one actuarial assumption used for valuation of defined benefit obligation by 1% keeping all other actuarial assumptions constant. There is no change from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

Note 35: Segment information

The operating results of the Company are reviewed by the Company''s chief operating decision maker, consisting of Managing Director and Chief Finance Officer, to make decisions about resources to be allocated to the segment and assess its performance based on the different type of goods produced and sold by the Company. Based on such review, the company is a single segment company engaged in the business of manufacturing of valves and fittings, steam traps and strainers._

Note 36 : Capital Management

(a) Risk Management

For the purposes of the Company''s capital management, capital includes equity share capital, securities premium and all other reserves attributable to the equity shareholders. The primary objective of the Company''s Capital Management is to maximize the return to shareholders and also maintain an optimal capital structure to reduce cost of capital.

The Company''s policy is to maintain a strong capital base so as to maintain investors, creditors and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘Net debt'' to ‘Total Equity''. For this purpose, net debt is defined as total interestbearing loans and borrowings less cash and cash equivalents. The Company''s Net debt to equity ratio is as follows.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

The Company is not subject to any externally imposed capital requirements.

(b) Loan Covenants

In order to achieve overall objective of capital management, amongst other things, the management aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. The management carefully negotiates the terms and conditions of the loans and ensures adherence to all the financial covenants. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended March 31,2025 and March 31,2024.

(b) Fair Value Measurement

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured, subsequent to initial recognition, at fair value. The below is the fair value measurement hierarchy used by the Company to determine the fair value of financial instruments, grouped into Level 1 to Level 3. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note 38 : FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company. The Company''s principal financial asset comprise trade and other receivables, cash and bank balances that arise directly from its operations. These financial liabilities and assets are mainly exposed to market risk, credit risk and liquidity risk.

The monitoring and management of such risks is undertaken by the senior management of the Company. There are appropriate policies and procedures in place through which such financial risks are identified, measured and managed by the Company. The policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risk, such as equity price risk and commodity price risk. The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company''s exposure to and management of these risks are explained below:

(a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

(c) Other Price Risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk). The company is not exposed to any such price risk.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company. Financial instruments that are subject to credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets.

The Company''s maximum exposure to credit risk at the reporting date is the carrying amount of each financial asset as detailed in note 5, 8, 9, 10 and 11.

(a) Credit risk management practices

To manage credit risk in case of trade receivables, the company continuously assesses the creditworthiness of the customer to whom goods are sold on credit terms in the normal course of business. In regard to the cash and bank balances, the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies and ratings are monitored periodically. The Company''s credit risk in case of all other financial instruments is negligible and is managed by continuously monitoring the creditworthiness of the counterparty.

III. Liquidity Risk Management

Liquidity risk is the risk that Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages its liquidity risk by ensuring that it will always have sufficient liquidity to meet its liabilities when due. The Management monitors the Company''s liquidity position on the basis of expected cash flows in near future.

(a) Maturity analysis of financial liabilities

i All related party transactions entered during the year are in ordinary course of the business and on arm''s length basis.

ii Outstanding balances at the year-end are unsecured and settlement occurs in cash.

iii There have been no guarantees provided or received for any related party except guarantees provided by directors of the Company . against loans availed from banks as mentioned in note no. 15 and 18.

_iv During the year ended March 31,2025, the Company has not recorded any impairment loss in respect of any bad or doubtful debts ^iv. due from related parties (March 31,2024: Nil).

Note 40 : Impairment of Assets

In accordance with Ind AS 36 “Impairment of assets”, the company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

(i) Company as a lessee

Assets taken under lease include land and building of factory premises and branch office premises for conducting business of the Company. The leases are not non-cancellable and having unexpired period upto 4 years as at March 31,2025 (March 31 2024: 5 years). The leases are renewable by mutual consent and on mutually agreeable terms. In terms of criteria specified in AS 116 Leases, for these leases, present value of all future lease payments has been recognised as Right-of-use assets and lease liabilities with the charge for depreciation on Right-of-use assets and interest on lease liabilities in the statement of profit and loss.

The disclosures as required by Ind AS 116 are as hereunder:

(a) The depreciation expense on ROU assets of ? 4.57 Lakhs (previous year ? 4.57 Lakhs) is included under depreciation and amortization expenses in the statement of Profit and Loss.

(b) Interest expense on the lease liabilities amounting to ? 1.78 Lakhs (previous year ? 2.07 Lakhs) has been included under finance costs in the statement of Profit and Loss.

(c) Payment of lease liabilities amounting to ? 4.22 Lakhs (previous year ? 3.93 Lakhs) and interest thereon amounting ? 1.78 Lakhs (previous year ? 2.07 Lakhs) has been shown under cash flows from financing activities in the Statement of cash flows.

(d) The following is the change in the carrying value of Right of Use asset:

1. The amount of inventories submitted to bank is on lower side as the same has been submitted considering the requirement for drawing power instead of actual inventory.

2. The amount of debtors are taken in books as a total debtors and is on account of the amounts submitted to bank were taken below 90 days period only.

Note 45: Events after the Reporting Period

The Board of directors have recommended the payment of Final dividend of ? 0.75/- per equity share (previous year ? 1.50/- per equity share) which is subject to the approval of Shareholders in the ensuing Annual General Meeting.

Note 46: Issue of Share warrants and equity shares

Pursuant to the resolution passed in the board meeting held on May 10, 2022, the company alloted 23,49,000 warrants at ? 13/- per warrant, convertible into same number of equity shares on preferential basis having face value of Rs. 10/- each at a premium of ? 42/- per share on payment of balance amount of ? 39/- per warrant, at the option of the warrant holders within 18 months from the date of allotment of the warrants. The warrant holders exercised the option against 4,57,500 warrants during the year ended March 31,2024. Accordingly, 4,57,500 equity shares have been allotted during the year ended March 31,2024, resulting into increase in equity share capital amounting to ? 45.75 Lakhs, securities premium amounting ? 192.15 Lakhs during the year.

Further, the amount of ? 96.53 Lakhs received on allotment of 7,42,500 warrants has been forfeited during the year ended March 31,2024 on account of non-exercise of option within time prescribed as per the terms of allotment of such warrants and the said amount has been transferred to Capital reserve.

For the purpose of computing basic earnings per share, weighted average number of equity shares have been adjusted for additional equity shares issued during the year. Further, for the purpose of computing diluted earnings per share, weighted average number of equity shares have been further adjusted for the outstanding convertible warrants as at the end of the year.

Note 47: Issue of Bonus Shares

Pursuant to the approval of shareholders in their Annual General Meeting held on September 30, 2022 and pursuant to in-Principle approval received for issue and allotment of not exceeding 64,74,000 bonus equity shares on 11th October, 2022 vide Letter No. DCS/AMAL/Kk/BN-IP/2694/2022-23 from BSE, the company alloted 4,57,500 equity shares to the eligible members during the year ended March 31,2024, as fully paid-up bonus shares in proportion of 1:1 (i.e. one bonus share for every one equity share held) by utilising securities premium resulting into increase in equity share capital amounting to ? 45.75 Lakhs, utilisation of securities premium amounting to ? 45.75 Lakhs during the year. Further, earnings per share of the current period and comparative period have been computed based on weighted average number of shares adjusted for issuance of said bonus shares as if the event had occurred at the beginning of the comparative period presented.

Note 48: Government Grants

The Company has recognized export incentives amounting to ? 6.22 Lakhs (Previous year: ? 3.02 Lakhs) as ‘Other operating revenue'' under the head ‘Revenue from operations'' in note 23 which are in the nature of government grant. The amount receivable in this regard as at the end of reporting period is ? 4.72 Lakhs (previous year: ? 4.90 Lakhs) shown under the head ‘Other current assets'' in note 12.

(i.) The Company does not have any Benami property, where any proceeding have been initiated against the Company for holding any benami tranactions (Prohibition) Act, 1988 ( 45 of 1988).

(ii.) The Company has not been declared as wilful defaluter by any bank or financial Institution or other lender.

(iii.) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(iv.) The Company does not have any charge or satisfaction thereof which is pending for registration with ROC beyond the statutory period.

(v.) The Company does not have any such transactions 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 not advanced or loaned or invested funds (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:

(a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf o'' the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii.) The Company has not received any fund from any person or entity, including foreign entities (Funding parties) with the understanding (whether recorded in writing or otherwise) that the Company shall

(a.) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding

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

(viii.) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

(ix.) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:

(a.) repayable on demand; or

(b.) without specifying any terms or period of repayment

(x.) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

(xi.) Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

(xii.) The company did not have any long-term contracts including derivative contracts for which for which there were any material foreseeable losses.

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Mar 31, 2024

ii) Rights, preferences and restrictions attached to equity shares :

The Company has only one class of equity shares having face value of C10 per share. Each share holder is entitled to one vote per share. The dividend if any proposed by the Board of Directors will be subject to approval of the share holders in the ensuing Annual General Meeting except interim dividend which is approved by Board of Directors. In the event of the liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion of number of equity shares held by each equity share holder.

Pursuant to the resolution passed in the board meeting held on May 10, 2022, the company allotted 23,49,000 share warrants during the year ended March 31, 2023 at C13/- per warrant, convertible into same number of equity shares on preferential allotment basis having face value of C10/- each at a premium of C42/- per share on payment of balance amount of C39/- per share, at the option of the warrant holders within 18 months from the date of allotment of the warrants. The warrant holders exercised the option against 4,57,500 warrants and 11,49,000 warrants during the year ended March 31, 2024 and March 31,

2023 respectively, Further, the amount received against 7,42,500 warrants has been forfeited during the year ended March 31,

2024 on account of non-exercise of option within time prescribed as per the terms of allotment of warrants. Nil warrants and 12,00,000 warrants are outstanding as at March 31,2024 and March 31,2023 respectively.

Nature and Purposes of Reserves Securities Premium

This represents amount of premium received on issue of shares at a price more than its face value. The reserve is to be utilised in accordance with the provisions of the Companies Act 2013.

Capital Reserve

This represents forfeiture of amount received on issue of convertible share warrants on account of non-exercise of option by the warrant holders within time prescribed as per the terms of allotment of such warrants. The reserve is to be utilised in accordance with the provisions of the Companies Act 2013.

General Reserve

This represents retained earnings which are kept aside out of company''s profit. It is a free reserve which can be utilized for distribution to shareholders.

1. Refer note 37(a) for classification of financial liabilities

2. Refer note 38 for information about liquidity risk and market risk in respect of financial liabilities

3. Nature of securities for the borrowings

(i) Working capital term loans from banks are secured by hypothecation of inventories and by charge on book debts and property plant and equipment of the Company.

Further, there is a collateral security of property situated at H No 95, Near Chawla Hospital, Shaheed Udham Singh Nagar, 144001, property situated at Khasra No. 15953/1, 15952, Industrial Area, GT Road, Bypass, Near Hind Metal Works, Jalandhar and property situated at E-11, Industrial Area, Jalandhar owned by directors of the company.

These loans are also guaranteed by Amit Jain, Vimal Parkash Jain and Pamila Jain (directors of the company).

(ii) Loans from banks for purchase of vehicles are secured against hypothecation of vehicle so purchased.

(iii) Unsecured loan from banks is against collateral security of property situated at H No 95, Near Chawla Hospital, Shaheed Udham Singh Nagar, 144001 owned by directors of the company and also guaranteed by Amit Jain, Vimal Parkash Jain and Pamila Jain (directors of the company).

1. Refer note 37(a) for classification of financial liabilities

2. Refer note 38 for information about liquidity risk and market risk in respect of financial liabilities

3. Nature of securities for the borrowings

Loans repayable on demand from banks are secured by hypothecation of inventories and by charge on book debts and property plant and equipment of the Company.

Further, there is a collateral security of property situated at H No 95, Near Chawla Hospital, Shaheed Udham Singh Nagar, 144001, property situated at Khasra No. 15953/1, 15952, Industrial Area, GT Road, Bypass, Near Hind Metal Works, Jalandhar and property situated at E-11, Industrial Area, Jalandhar owned by directors of the company.

These loans are also guaranteed by Amit Jain, Vimal Parkash Jain and Pamila Jain (directors of the company).

(ii) Contract Balances

(a) The company classifies the right to consideration in exchange for deliverables as receivable. The balances of trade receivables and advance from customers at the beginning and end of the reporting period have been disclosed at note no. 8 and 21 respectively.

(b) The revenue recognised during the year ended 31^st March 2024 includes revenue against advances from customers amounting to C9.74 lakhs (previous year C21.12 Lakh) at the beginning of the year.

(c) The revenue of Nil has been recognised during the year ended 31^st March 2024 (previous year Nil ) against performance obligations satisfied (or partially satisfied) in previous periods.

Disclosures as per Ind AS 19 "Employee Benefits"

(a) Defined Contribution Plan

The employer contribution to Provident Fund is C22.19 Lakhs for the year ended March 31,2023 (Previous Year C 19.75 Lakhs). The contributions during the year have been recognized as expense under the head ''Contribution to Provident Fund and other funds'' above.

(b) Defined Benefit Plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees and this is a non-funded plan. The Company accounts for the liability for gratuity benefits payable in the future based on actuarial valuation using projected unit credit method.

The defined benefit plans typically expose the Company to actuarial risks such as interest rate risk, longevity risk and salary risk.

Salary Risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Interest Risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

III. Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate and rate of salary escalation. The sensitivity is computed by varying one actuarial assumption used for valuation of defined benefit obligation by 1% keeping all other actuarial assumptions constant. There is no change from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

Note 34 : Contingent Liabilities and Commitments
I. Contingent Liabilities not provided for:
Particular	As at March 31, 2024	As at March 31, 2023
Claims against company not acknowledge as debt
-Excise matters	2.71	2.71
-Commercial matters	0.73	0.73
Based on legal advice and discussions with the solicitors, the management believes that there is fair chance of decisions in the company''s favour in respect of above contingent liabilities and hence no provision is considered necessary against the same.
II. Commitments
Particular	As at March 31, 2024	As at March 31, 2023
Estimated amount of contracts remaining to be executed on capital account (including vehicles) not provided for (net of advances)	205.73	480.59

Note 35: Segment information

The operating results of the Company are reviewed by the Company''s chief operating decision maker, consisting of Managing Director and Chief Finance Officer, to make decisions about resources to be allocated to the segment and assess its performance based on the different type of goods produced and sold by the Company. Based on such review, the company is a single segment company engaged in the business of manufacturing of valves and fittings, steam traps and strainers.

Geographical information

The Geographical detail of revenue and assets (property, plant and equipment) based on domicile of customer and location of assets respectively are as follows:

Note 36 : Capital Management

(a) Risk Management

For the purposes of the Company''s capital management, capital includes equity share capital, securities premium and all other reserves attributable to the equity shareholders. The primary objective of the Company''s Capital Management is to maximize the return to shareholders and also maintain an optimal capital structure to reduce cost of capital.

The Company''s policy is to maintain a strong capital base so as to maintain investors, creditors and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ''Net debt'' to ''Total Equity''. For this purpose, net debt is defined as total interest-bearing loans and borrowings less cash and cash equivalents. The Company''s Net debt to equity ratio is as follows.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

The Company is not subject to any externally imposed capital requirements.

(b) Loan Covenants

In order to achieve overall objective of capital management, amongst other things, the management aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. The management carefully negotiates the terms and conditions of the loans and ensures adherence to all the financial covenants. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended March 31,2024 and March 31,2023.

(b) Fair Value Measurement (i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured, subsequent to initial recognition, at fair value. The below is the fair value measurement hierarchy used by the Company to determine the fair value of financial instruments, grouped into Level 1 to Level 3. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note 38 : FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company. The Company''s principal financial asset comprise trade and other receivables, cash and bank balances that arise directly from its operations. These financial liabilities and assets are mainly exposed to market risk, credit risk and liquidity risk.

The monitoring and management of such risks is undertaken by the senior management of the Company. There are appropriate policies and procedures in place through which such financial risks are identified, measured and managed by the Company. The policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risk, such as equity price risk and commodity price risk. The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company''s exposure to and management of these risks are explained below:

(a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

(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 exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

(c) Other Price Risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk). The company is not exposed to any such price risk.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company. Financial instruments that are subject to credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets.

The Company''s maximum exposure to credit risk at the reporting date is the carrying amount of each financial asset as detailed in note 5, 8, 9, 10 and 11.

(a) Credit risk management practices

To manage credit risk in case of trade receivables, the company continuously assesses the creditworthiness of the customer to whom goods are sold on credit terms in the normal course of business. In regard to the cash and bank balances, the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies and ratings are monitored periodically. The Company''s credit risk in case of all other financial instruments is negligible and is managed by continuously monitoring the creditworthiness of the counterparty.

III. Liquidity Risk Management

Liquidity risk is the risk that Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages its liquidity risk by ensuring that it will always have sufficient liquidity to meet its liabilities when due. The Management monitors the Company''s liquidity position on the basis of expected cash flows in near future.

Terms and conditions of transactions with related parties

i All related party transactions entered during the year are in ordinary course of the business and on arm''s length basis.

ii Outstanding balances at the year-end are unsecured and settlement occurs in cash.

iii. There have been no guarantees provided or received for any related party except guarantees provided by directors of the Company against loans availed from banks as mentioned in note no. 15 and 18.

iv. During the year ended March 31,2024, the Company has not recorded any impairment loss in respect of any bad or doubtful debts due from related parties (March 31,2023: Nil).

Note 40 : Impairment of Assets

In accordance with Ind AS 36 "Impairment of assets", the company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

Note 41: Leases (i) Company as a lessee

Assets taken under lease include land and building of factory premises and branch office premises for conducting business of the Company. The leases are not non-cancellable and having unexpired period upto 7 years as at March 31, 2024 (March 31 2023: 6 years). The leases are renewable by mutual consent and on mutually agreeable terms. In terms of criteria specified in AS 116 Leases, for these leases, present value of all future lease payments has been recognised as Right-of-use assets and lease liabilities with the charge for depreciation on Right-of-use assets and interest on lease liabilities in the statement of profit and loss.

The disclosures as required by Ind AS 116 are as hereunder:

(a) The depreciation expense on ROU assets of C4.57 Lakhs (previous year C7.16 Lakhs) is included under depreciation and amortization expenses in the statement of Profit and Loss.

(b) Interest expense on the lease liabilities amounting to C2.07 Lakhs (previous year C3.84 Lakhs) has been included under finance costs in the statement of Profit and Loss.

(c) Payment of lease liabilities amounting to C3.93 Lakhs (previous year C5.76 Lakhs) and interest thereon amounting C2.07 Lakhs (previous year C3.84 Lakhs) has been shown under cash flows from financing activities in the Statement of cash flows.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(h) The commitments for leases not yet commenced is Nil as at March 31,2024 (March 31,2023: Nil)

Note 42: Corporate Social Responsibility (CSR)

The Company meeting the applicable threshold under Section 135 of the Companies Act, 2013 ("Act") read with related rules thereto, is mandatorily required to spent at least 2% of its average net profit for the immediately preceding three financial years on Corporate Social Responsibility (CSR) activities. The disclosures in regard to the same are as below:

1. The amount of inventories submitted to bank is on lower side as the same has been submitted considering the requirement for drawing power instead of actual inventory.

2. The difference is not material and is on account of the amounts submitted to bank were on provisional basis.

Note 45: Events after the Reporting Period

The Board of directors have recommended the payment of Final dividend of C0.75/- per equity share (previous year C 1.50/- per equity share) which is subject to the approval of Shareholders in the ensuing Annual General Meeting.

Note 46: Issue of Share warrants and equity shares

Pursuant to the resolution passed in the board meting held on May 10, 2022, the company alloted 23,49,000 warrants at C13/- per warrant, convertible into same number of equity shares on preferential basis having face value of C10/- each at a premium of C42/- per share on payment of balance amount of C39/- per warrant, at the option of the warrant holders within 18 months from the date of allotment of the warrants. The warrant holders exercised the option against 4,57,500 warrants and 11,49,000 warrants during the year ended March 31,2024 and March 31,2023 respectively. Accordingly, 4,57,500 equity shares and 11,49,000 equity shares have been allotted during the year ended March 31, 2024 and March 31, 2023 respectively, resulting into increase in equity share capital amounting to C45.75 Lakhs and C114.90 Lakhs, securities premium amounting C192.15 Lakhs and C482.58 Lakhs during the respective year.

However, the Company is yet to receive listing approval from Bombay Stock Exchange Limited and National Stock Exchange Limited as on March 31,2024 in respect of such equity shares alloted during the year ended March 31,2024.

Further, the amount of C96.53 Lakhs received on allotment of 7,42,500 warrants has been forfeited during the year ended March 31,2024 on account of non-exercise of option within time prescribed as per the terms of allotment of such warrants and the said amount has been transferred to Capital reserve.

For the purpose of computing basic earnings per share, weighted average number of equity shares have been adjusted for additional equity shares issued during the year. Further, for the purpose of computing diluted earnings per share, weighted average number of equity shares have been further adjusted for the outstanding covertible warrants as at the end of the year.

Note 47: Issue of Bonus Shares

Pursuant to the approval of shareholders in their Annual General Meeting held on September 30, 2022 and pursuant to in-Principle approval received for issue and allotment of not exceeding 64,74,000 bonus equity shares on 11^th October, 2022 vide Letter No. DCS/AMAL/KK/BN-IP/2694/2022-23 from BSE, the company alloted 4,57,500 equity shares and 52,74,000 equity shares to the eligible members during the year ended March 31, 2024 and March 31, 2023 respectively, as fully paid-up bonus shares in proportion of 1:1 (i.e. one bonus share for every one equity share held) by utilising securities premium resulting into increase in equity share capital amounting to C 45.75 Lakhs and C527.40 Lakhs, utilisation of securities premium amounting to C 45.75 Lakhs and C527.40 Lakhs during the respective year. However, the Company is yet to receive listing approval from Bombay Stock Exchange Limited and National Stock Exchange Limited as on March 31,2024 in respect of such equity shares alloted during the year ended March 31,2024.

Further, earnings per share of the current period and comparative period have been computed based on weighted average number of shares adjusted for issuance of said bonus shares as if the event had occurred at the beginning of the comparative period presented.

Note 48: Government Grants

The Company has recognized export incentives amounting to C3.02 Lakhs (Previous year: C2.46 Lakhs) as ''Other operating revenue'' under the head ''Revenue from operations'' in note 23 which are in the nature of government grant. The amount receivable in this regard as at the end of reporting period is C4.90 Lakhs (previous year: C2.41 Lakhs) shown under the head ''Other current assets'' in note 12.

Resaons for variance in ratios

1 The Debt equity ratio has increased due to increase in working capital borrowings during the year.

2 The employee cost and other expenses have increased more in comparison to the increase in revenue as compared to previous year, resulting into lower profits which further lead to fall in following ratios as compared to previous year: (i) Debt Service Coverage ratio (ii) Return on Equity Ratio (iii) Net profit Ratio (iv) Return on capital employed

3 There is increase in revenue as compared to previous year leading to quick movement in inventory and working capital which has resulted into improvement in following ratios as compared to previous year: (i) Inventory turnover Ratio (ii) Net capital turnover Ratio

Note 50: Other disclosures

(i) The Company does not have any Benami property, where any proceeding have been initiated against the Company for holding any benami tranactions (Prohibition) Act, 1988 ( 45 of 1988).

(ii) The Company has not been declared as wilful defaluter by any bank or financial Institution or other lender.

(iii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(iv) The Company does not have any charge or satisfaction thereof which is pending for registration with ROC beyond the statutory period.

(v) The Company does not have any such transactions 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 not advanced or loaned or invested funds (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:

(a) directly or indirectly lend or invest in other person 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

(vii) The Company has not received any fund from any person or entity, including foreign entities (Funding parties) with the understanding (whether recorded in writing or otherwise) that the Company shall

(a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding

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

(viii) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

(ix) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment"

(x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

(xi) Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

(xii) The company did not have any long-term contracts including derivative contracts for which for which there were any material foreseeable losses.

---

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a
present obligation (legal or constructive) 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 a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognized as a finance cost.

A contingent liability is not recognised in the financial
statements, however, is disclosed, unless the possibility
of an outflow of resources embodying economic benefits
is remote. If it becomes probable that an outflow of future
economic benefits will be required for an item dealt with
as a contingent liability, a provision is recognised in the
financial statements of the period (except in the extremely
rare circumstances where no reliable estimate can be
made).

A contingent asset is not recognised in the financial
statements, however, is disclosed, where an inflow of
economic benefits is probable. When the realisation of
income is virtually certain, then the asset is no longer a
contingent asset, and is recognised as an asset.

Provisions, contingent liabilities and contingent assets are
reviewed at each balance sheet date.

P. Dividends

Final dividends on equity shares are recorded as a liability
on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Board of Directors of the Company.

Q. Cash and cash equivalents

The Cash and cash equivalent in the balance sheet
comprise cash at banks, cash on hand, demand deposits
and short-term highly liquid investments that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

R. Statement of Cash flows

The statement of cash flows is prepared in accordance with
the Indian Accounting Standard (Ind AS) - 7 "Statement
of Cash flows" using the indirect method for operating
activities whereby profit for the period is adjusted for the
effects of transaction of a non-cash nature, 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.

II. Current - Non-Current Classification

All assets and liabilities have been classified as current and
non-current on the basis of the following criteria:

Assets

An asset is classified as current when it satisfies any of the
following criteria:

a) it is expected to be realised in, or is intended for
sale or consumption in, the company''s normal
operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after
the reporting date; or

d) it is cash or cash equivalent unless it is restricted from
being exchanged or use to settle a liability for at least
twelve months after the reporting date.

Current assets include the current portion of non¬
current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any
of the following criteria:

a) it is expected to be settled in the company''s normal
operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the
reporting date; or

d) there is no unconditional right to defer settlement
of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the
option of the counterpart, result in its settlement
by the issue of equity instruments do not affect
its classification.

Current liabilities include current portion of non-current
financial liabilities.

All other liabilities are classified as non-current.
Operating cycle

Operating cycle is the time between the acquisition of
assets for processing/servicing and their realisation in cash
or cash equivalents. Based on the nature of products and
the time between acquisition of assets for processing and
their realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as twelve months for
the purpose of current or non-current classification of
assets and liabilities.

III. Significant Accounting Estimates, Judgements
and Assumptions

The preparation of financial statements in conformity with
Indian Accounting Standards (Ind AS) require management
to make judgements, estimates and assumptions in the
application of accounting policies that affect the reported
amount of income, expenses, assets and liabilities and
disclosure of contingent liabilities.

The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from these

estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis and the effect of revision
to accounting estimates is recognized prospectively from
the period in which the estimate is revised.

Critical accounting estimates, Judgements
and assumptions

i. Income taxes

Significant judgement is required in determination of
provision for current tax and deferred tax e.g. determination
of taxability of certain incomes and deductibility of certain
expenses etc. The carrying amount of income tax assets/
liabilities is reviewed at each reporting date. The factors
used in estimates may differ from actual outcome which
could lead to signification adjustment to the amounts
reported in financial statements.

ii. Defined Benefit Plans

The cost of the defined benefit plan and the present
value of such obligation 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, mortality rates etc.
Due to the complexities involved in the valuation and
its long-term nature, the obligation is highly sensitive
to changes in these assumptions. All assumptions are
reviewed at each reporting date.

iii. Inventories

Management has estimated the net realizable values
of inventories, taking into account the most reliable
evidence available at each reporting date. The future
realization of these inventories may be affected by market
driven changes.

iv. Fair value measurement

Some of the company''s assets and liabilities are measured
at fair value for financial reporting process. In estimating
the fair value of an asset or liability, the company uses
market-observable data to the extent is available.

v. Provisions / Contingencies

Significant judgement is required for estimating the
possible outflow of resources, if any, in respect of
contingencies/claims/litigations against the Company
which involves judgements around estimating the
ultimate outcome of such past events and measurement
of the obligation amount etc. The Company assesses such
claims and monitors the legal environment on an ongoing
basis, with the assistance of external legal counsel,
wherever necessary.

vi. Useful lives of property plant and equipment and
Intangible assets

The estimated useful lives of property plant and
equipment and intangible assets are based on a number
of factors including the effects of obsolescence, internal
assessment of user experience and other economic
factors (such as the known technological advancements,
commercial obsolescence of the asset etc.). The useful life
of property plant and equipment and intangible assets is
reviewed on an ongoing basis.

vii. Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment
is based on estimates and assumptions regarding the
expected market outlook and expected future cash flows.
Any changes in these assumptions may have a material
impact on the measurement of the recoverable amount
and could result in impairment.

IV. Applicability of New and Revised Ind AS

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. On March 31, 2023, MCA amended the
Companies (Indian Accounting Standards) Amendment
Rules, 2023, as below:

i. Ind AS 12 - Income Taxes - This amendment has narrowed
the scope of the initial recognition exemption so that
it does not apply to transactions that give rise to equal
and offsetting temporary differences. The effective
date for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Company has
evaluated the amendment and there is no impact on
its financial statements. The Company does not expect
this amendment to have any significant impact on its
financial statements.

ii. Ind AS 1 - Presentation of Financial Statements - This
amendment requires the entities to disclose their
material accounting policies rather than their significant
accounting policies. The effective date for adoption of this
amendment is annual periods beginning on or after April
1, 2023.

iii. Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors - This amendment has introduced
a definition of ''accounting estimates'' and included
amendments to Ind AS 8 to help entities distinguish
changes in accounting policies from changes in
accounting estimates. The effective date for adoption of
this amendment is annual periods beginning on or after
April 1,2023.

Disclosures as per Ind AS 19 Employee Benefits

(a) Defined Contribution Plan

The employer contribution to Provident Fund is ? 19.75 Lakhs for the year ended March 31, 2023 (Previous Year ?18.23 Lakhs).
The contributions during the year have been recognized as expense under the head ''Contribution to Provident Fund and other
funds'' above.

(b) Defined Benefit Plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees and this is a
non-funded plan. The Company accounts for the liability for gratuity benefits payable in the future based on actuarial valuation
using projected unit credit method.

The defined benefit plans typically expose the Company to actuarial risks such as interest rate risk, longevity risk and salary risk.
Salary Risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future.
Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the
present value of obligation will have a bearing on the plan''s liability.

Interest Risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate
cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after employment. An increase in the life expectancy of the plan participants will increase the
plans liability.

Note 38 : FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise borrowings, trade and other payables and the main purpose of these
financial liabilities is to finance the day to day operations of the company. The Company''s principal financial asset comprise
trade and other receivables, cash and bank balances that arise directly from its operations. These financial liabilities and assets
are mainly exposed to market risk, credit risk and liquidity risk.

The monitoring and management of such risks is undertaken by the senior management of the Company. There are appropriate
policies and procedures in place through which such financial risks are identified, measured and managed by the Company.
The policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risk, such as equity price
risk and commodity price risk. The above risks may affect the Company''s income and expenses, or the value of its financial
instruments. The Company''s exposure to and management of these risks are explained below:

(a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates.

In accordance with Ind AS 36 "Impairment of assets", the company has assessed as on the balance sheet date, whether there are
any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no
potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment
loss has been provided in the books of account.

Note 41: Leases

(i) Company as a lessee

Assets taken under lease include land and building of factory premises and branch office premises for conducting business of
the Company. The leases are not non-cancellable and having unexpired period upto 7 years as at March 31, 2023. The leases are
renewable by mutual consent and on mutually agreeable terms. In terms of criteria specified in AS 116 Leases, for these leases,
present value of all future lease payments has been recognised as Right-of-use assets and lease liabilities with the charge for
depreciation on Right-of-use assets and interest on lease liabilities in the statement of profit and loss.

The disclosures as required by Ind AS 116 are as hereunder:

(a) The depreciation expense on ROU assets of ? 7.16 Lakhs (previous year ? 7.16 Lakhs) is included under depreciation and
amortization expenses in the statement of Profit and Loss.

(b) Interest expense on the lease liabilities amounting to ? 3.84 Lakhs (previous year ? 4.23 Lakhs) has been included under
finance costs in the statement of Profit and Loss.

(c) Payment of lease liabilities amounting to ? 5.76 Lakhs (previous year ? 5.37 Lakhs) and interest thereon amounting ? 3.84
Lakhs (previous year ? 4.23 Lakhs) has been shown under cash flows from financing activities in the Statement of cash flows.

Notes:

1. The amount of inventory submitted to bank is on lower side as the same has been submitted considering the requirement
for drawing power instead of actual inventory.

2. The balance of trade receivables submitted to bank includes amount recoverable by head office at Jalandhar from
Ahmedabad branch against supply of goods whereas the same has not been included in the figure as per books of account.
Further, the amount of trade receivables of Ahmedabad branch is not included in the statement submitted to bank whereas
the same has been included in the figure as per books of account.

3. The difference is not material. The difference is on account of the amounts submitted to bank were on provisional basis.
Note 45: Events after the Reporting Period

The Board of directors have recommended the payment of Final dividend of ? 1.50/- per equity share (previous year ? 2/- per
equity share) which is subject to the approval of Shareholders in the ensuing Annual General Meeting.

Note 46: Issue of Share warrants and equity shares

Pursuant to the resolution passed in the board meting held on May 10, 2022, the company alloted 23,49,000 warrants
on the payment of ? 13/- per warrant, convertible into same number of equity shares on preferential basis having face
value of D10/- each at a premium of ? 42/- per share on payment of balance amount of ? 39/- per warrant, at the option
of the warrant holders within 18 months from the date of allotment of the warrants. During the year, the warrant holders
exercised the option against 11,49,000 warrants. Accordingly, 11,49,000 equity shares have been allotted resulting
into increase in equity share capital amounting to ? 114.90 Lakhs and securities premium amounting ? 482.58 Lakhs.
For the purpose of computing basic earnings per share, weighted average number of equity shares have been adjusted for
additional equity shares issued during the year. Further, for the purpose of computing diluted earnings per share, weighted
average number of equity shares have been further adjusted for the outstanding covertible warrants as at the end of the year.

Pursuant to the approval of shareholders in their Annual General Meeting held on September 30, 2022, the company
alloted 52,74,000 fresh equity shares as fully paid-up bonus shares in proportion of 1:1 (i.e. one bonus share for
every one equity share held) by utilising securities premium to the eligible members whose names appeared in
the register of members/list of beneficial owners as on October 24, 2022, i.e. record date resulting into increase in
equity share capital amounting to ? 527.40 Lakhs and utilisation of securities premium amounting to ? 527.40 Lakhs.
Further, earnings per share of the current period and comparative period have been computed based on weighted average
number of shares adjusted for issuance of bonus shares as if the event had occurred at the beginning of the comparative
period presented.

Note 48: Government Grants

The Company has recognized export incentives amounting to ? 2.46 Lakhs (Previous year: ? 2.18 Lakhs) as ''Other operating
revenue'' under the head ''Revenue from operations'' in note 23 which are in the nature of government grant. The amount
receivable in this regard as at the end of reporting period is ? 2.41 Lakhs (previous year: ? 1.23 Lakhs) shown under the head
''Other current assets'' in note 12.

Resaons for variance in ratios

1 There is substantial increase in revenue as compared to previous year whereas indirect and fixed expenses have not
increased in that proportion resulting into higher profits which further resulting in to improvement in following ratios as
compared to previous year: (i) Debt equity ratio (ii) Debt Service Coverage ratio (iii) Return on Equity Ratio (iv) Net profit
Ratio (v) Return on capital employed

2 There is substantial increase in revenue as compared to previous year leading to quick movement in inventory and working
capital which has resulted into improvement in following ratios as compared to previous year: (i) Inventory turnover Ratio

(ii) Trade payables turnover Ratio (iii) Net capital turnover Ratio

Note 50: Other disclosures

(i) The Company does not have any Benami property, where any proceeding have been initiated against the Company for
holding any benami tranactions (Prohibition) Act, 1988 ( 45 of 1988).

(ii) The Company has not been declared as wilful defaluter by any bank or financial Institution or other lender.

(iii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

(iv) The Company does not have any charge or satisfaction thereof which is pending for registration with ROC beyond the
statutory period.

(v) The Company does not have any such transactions 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 not advanced or loaned or invested funds (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:

(a) directly or indirectly lend or invest in other person 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"

(vii) The Company has not received any fund from any person or entity, including foreign entities (Funding parties) with the
understanding (whether recorded in writing or otherwise) that the Company shall

(a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of
the funding

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

(viii) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

(ix) "There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their
related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment"

(x) Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction
on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

NOTE 51: First time adoption of Ind AS

These financial statements are the first financial statements that have been prepared in accordance with Ind AS together with
the comparative period data as at and for the year ended March 31 2022, as described in note 2 of the financial statements. The
transition to Ind AS has been carried out in accordance with Ind AS 101 —''First time adoption of Indian Accounting Standards''
with April 1, 2021 as the transition date.

This note explains the exemptions availed by the company on first time adoption of Ind AS and the principal adjustments made
by the Company in restating its Previous GAAP financial statements as at April 1, 2021 and financial statements as at and for the
year ended March 31, 2022 in accordance with Ind AS 101.

(a) Exemptions as per Ind AS 101

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind
AS. The Company has, accordingly, applied following exemptions:

a) The Company has elected to consider carrying amount of property, plant and equipments and intangible assets measured
as per Previous GAAP as recognized in the financial statements as at the date of transition, as deemed cost at the date
of transition.

b) The Company has availed the exemption of fair value measurement of financial assets or liabilities at initial recognition
and accordingly will apply fair value measurement of financial assets or liabilities at initial recognition prospectively to
transactions entered into on or after April 1, 2021.

c) The estimates at April 1,2021 and at March 31,2022 are consistent with those made for the same dates in accordance with
Previous GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under
Previous GAAP did not require estimation:

- Fair values of Financial Assets & Financial Liabilities

- Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at April 1,
2021 and March 31, 2022.

(b) Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following
tables represent the reconciliations from previous GAAP to Ind AS.