Harish Textile Engineers Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

o. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of
a past event that probably requires an outflow of resources and a reliable estimate
can be made of the amount of the obligation. Provisions are determined by discounting
the expected future cash flows (representing the best estimate of the expenditure
required to settle the present obligation at the balance sheet date) at a pre-tax rate
that reflects current market assessments of the time value of money and the risks
specific to the liability.

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow of resources.
Where there is a possible obligation or a present obligation that the likelihood of
outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed.

p. Cash and Cash equivalent

Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash,
drafts and cheques in hand, bank balances, unencumbered demand deposits with
banks where the original maturity is three months or less and other short term highly
liquid investments. Bank overdrafts that are repayable on demand and form an integral
part of the Company’s cash management are included as a component of cash and
cash equivalent for the purpose of Cash Flow Statement.

q. Employee benefits
Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and
are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid, if the Company has a present legal or constructive obligation to
pay this amount as a result of past service provided by the employee, and the amount
of obligation can be estimated reliably.

Defined contribution plans

The Company recognizes contribution payable to a defined contribution plan as an
expense in the Statement of Profit and Loss when the employees render services to
the Company during the reporting period.

Defined Benefit Plans

The company has not made provision for gratuity liability as per requirement of IndAS
-19 “Employee Benefits".

r. Operating segments

The Company identifies primary segments based on the dominant source, nature of
risks and returns and the internal organisation and management structure. The
operating segments are the segments for which separate financial information is
available and for which operating profit / loss amounts are evaluated regularly by the
Chief Operating Decision Maker (CODM) in deciding howto allocate resources and in
assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting
policies of the Company. Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on the basis of their relationship
to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole
and are not allocable to segments on reasonable basis have been included under
“unallocated revenue / expenses / assets / liabilities”.

s. Leases
Company as Lessee

Right-of-Use (ROU) assets are recognised at inception of a contract or arrangement
for significant lease components at cost less lease incentives, if any. ROU assets are
subsequently measured at cost less accumulated depreciation and impairment
losses, if any. The cost of ROU assets includes the amount of lease liabilities
recognised, initial direct cost incurred and lease payments made at or before the
lease commencement date. ROU assets are generally depreciated over the shorter
of the lease term and estimated useful lives of the underlying assets on a straight line
basis. Lease term is determined based on consideration of facts and circumstances
that create an economic incentive to exercise an extension option, or not to exercise
a termination option. Lease payments associated with short-term leases and low
value leases are charged to the Statement of Profit and Loss on a straight line basis
over the term of the relevant lease.

The Company recognises lease liabilities measured at the present value of lease
payments to be made on the date of recognition of the lease. Such lease liabilities do
not include variable lease payments (that do not depend on an index or a rate), which
are recognised as expense in the periods in which they are incurred. Interest on lease
liability is recognised using the effective interest method. Lease liabilities are
subsequently increased to reflect the accretion of interest and reduced for the lease
payments made. The carrying amount of lease liabilities is also remeasured upon
modification of lease arrangement or upon change in the assessment of the lease
term. The effect of such remeasurements is adjusted to the value of the ROU assets.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards
of ownership of an asset are classified as operating leases. Where the Company is a
lessor under an operating lease, the asset is capitalised within property, plant and
equipment or investment property and depreciated over its useful economic life.
Payments received under operating leases are recognised in the Statement of Profit
and Loss on a straight line basis over the term of the lease.

t. Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the
weighted average number of equity shares outstanding during the year. Diluted
earnings per share is computed by dividing the profit / (loss) after tax as adjusted for
dividend, interest and other charges to expense or income (net of any attributable
taxes) relating to the dilutive potential equity shares, by the weighted average number
of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of
all dilutive potential equity shares. Potential equity shares are deemed to be dilutive
only if their conversion to equity shares would decrease the net profit per share from
continuing ordinary operations. Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless they have been issued at a later
date.

u. Recent accounting pronouncements

Recent accounting pronouncements 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. For the year ended March
31, 2025, MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

(i) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

(ii) 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).

(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

(iii) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk, currency risk and
other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans, borrowings and deposits.

(a) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s foreign currency risk arises out of
various imports of raw materials and trading goods and exports of its finished goods. The Company follows netting principle for managing the foreign exchange exposure. The Carrying Amounts of
the Company’s Foreign Currency Denominated Monetary Assets and Liabilities based on Gross Exposure at the end of the Reporting Period is as under.

Financial instruments risk management objectives and policies

The Company''s principal financial liabilities comprises of trade and other payables. The Company''s financial assets include trade and
other receivables, and cash & cash equivalents that it derives directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management
of these risks. The Company''s senior management is supported by the Board of Directors that advises on financial risks and the
appropriate financial risk governance framework for the Company. This provides assurance to the Company''s senior management
that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified,
measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees
policies for managing each risk, which are summarised as below:

(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, investments, and loans given. The
Company is having majority of the receivables from private sector. The Company does not have significant credit risk exposure to any
single counterparty.

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

Cash and Cash equivalent and Other Bank Balances

The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good past track record
and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of goods sold or services rendered to a
contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is yet to be
received.

The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other
receivables.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for
forward-looking estimates.

Assets are written off when there are no reasonable expectation of recovery such as debtor declaring bankruptcy or failing to engage
in a repayment plan with group. Where receivables have been written off the company continues to engage in enforcement activity to
attempt to recover the receivables. where recoveries are made, these are recognised in profit and loss.

(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 monitors its risk of a shortage of funds by estimating the future cash flows. The Company’s
objective is to maintain a balance between working capital of the company. The Company generates sufficient cashflow from operations to maintain
a healthy working capital balance.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and
include estimated interest payments and exclude the impact of netting agreements.

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 Company determines the amount of capital required on the basis of the annual business plan coupled with long term and short
term strategic investments and expansion plans. The funding needs are met through equity, cash generated from operations, long
terms and short term bank borrowings/other borrowings.

The Company monitors capital using a ratio of ‘adjusted net debt'' to ‘adjusted equity''. For this purpose, adjusted net debt is defined as
total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents. Adjusted equity comprises all
components of equity.

The Company as a Lessee

The Company’s significant leasing/ licensing arrangements are mainly in respect of factory building. Leases typically run in a range from 1 years to 6 years,
with an option to renew the lease after that date. The Company previously used to classify leases as operating or finance leases based on its assessment of
whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company.

In the statement of profit and loss for the current year, operating lease expenses which were recognised as other expenses in previous periods is now
recognised as depreciation expense for the right-of-use asset and finance cost for interest accrued on lease liability. The adoption of this standard did not
have any significant impact on the profit for the year and earnings per share. The Incremental borrowing rate of 8% has been applied to lease liabilities
recognised in the balance sheet at the date of initial application.

The Company used following practical expedients when applying Ind AS 116 :

- did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application;

- did not recognise right-of-use assets and liabilities for leases of low value assets;

- excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application; and

- used hindsight when determining the lease term.

ii Defined Benefit Plans

The Company provides post-employment benefits to its employees in the form of a gratuity plan. The gratuity liability of the Company is determined in
accordance with the provisions of Ind AS 19 - "Employee Benefits", as notified under the Companies (Indian Accounting Standards) Rules, 2015.

The gratuity plan is unfunded, and the liability for the same is recognized in the books of account based on an actuarial valuation carried out by an
independent actuary using the projected unit credit method as at the balance sheet date.

The key assumptions used in the actuarial valuation include estimates of salary escalation, employee attrition rate, and discount rate based on prevailing
market yields of government securities.

Note 46:

The Company has maintained its books of account using accounting software that has the feature of
recording an audit trail (edit log) facility. However, the said feature could not be enabled during the year.

Note 47: Additional disclosures as required under schedule III of the Companies Act 2013.

1. Title deeds of all immovable properties are held in name of the Company as at 31st March 2024
except one land which is in the name of the promoter director. The said land is adjacent to the
existing factory and is acquired for the purpose of expansion projects of the company. The
company has initiated the process of conversion of the said agricultural land into Non¬
Agricultural Land. The said land being an agricultural land cannot be held in the name of the
company. (refer note no. 4.1).

2. The company does not hold any Investment Property in its books of accounts, so fair valuation
of investment property is not applicable.

3. The company has not revalued any of its property, plant and equipment including Rights to use
assets in the current year and previous year.

4. The company has granted loans or advances to KMP''s and the related parties that are
repayable on demand. (refer note no. 12)

5. No proceedings have been initiated or pending against the company under the Benami
Transactions (Prohibition) Act. 1988.

6. Company is not having any transaction with the Companies struck off under the Section 248 of
the Companies Act 2013 or Section 560 of the Companies Act 1956.

7. There are no charges or satisfaction thereof which are to be registered with the Registrar of
Companies beyond statutory period except satisfaction of charge from HDB financials Ltd. due
to non-receipt of no due certificate from the said company.

8. The company has not been declared a wilful defaulter by any bank or financial institution or any
other lender.

9. The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on
number of Layers) Rules, 2017 are not applicable to the company as per Section 2(45) of the
Companies Act,2013.

10. The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

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

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

11. The Company have 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 the funding party (ultimate beneficiary) or;

b) Provide any guarantee, security or the like on behalf of the ultimate beneficiary.

12. The company does not have any transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessment under
the Income Tax Act. 1961.

13. The company has not traded or invested in Cyrpto Currency or Virtual Currency during the
financial year.

14. There were no scheme of Arrangements approved by the competent authority during the year
in terms of section 230 to 237 of the Companies Act, 2013

15. The Company has filed quarterly returns or statements with the banks who have sanctioned
working capital facilities, which are in agreement with the books of accounts, other than those
as set out below:

* Reason for Difference between Stock as per Books and Stock Statement

The difference between inventory as per books of accounts and as reported in the stock statement
submitted to the bank primarily arises due to the treatment of goods in transit.

Under Ind AS, revenue is recognized only when the control of goods is transferred to the customer.
Accordingly, goods for which risk and reward of ownership have not been transferred as of the reporting
date are considered as inventory (stock in transit) in the books of accounts. These include shipments
dispatched but not yet delivered or acknowledged by customers, for which revenue recognition criteria
under Ind AS 115 are not fulfilled.

However, the stock statement furnished to the bank excludes such stock in transit, based on the
operational definition and the format prescribed by the bank, which generally considers only physically
available stock at the entity''s premises.

This accounting treatment, consistent with Ind AS principles, results in a higher closing inventory in the
books compared to the stock reported in the bank statement.

49.1 Previous year figures

Previous year''s figures have been regrouped or reclassified wherever necessary to confirm to the current period''s presentation

49.2 The financial statements are approved for issue by the Audit Committee and the Board of Directors at their respective meetings conducted on 25th June, 2025.

For and on behalf of the Board of Directors of

For K M Swadia & Co. HARISH TEXTILE ENGINEERS LIMITED

Chartered Accountants (CIN:L29119MH2010PLC201521)

FRN - 110740W

Pravin Panchiwala Sandeep Gandhi Sunil Bhirud Narayan

Partner DIN : 00941665 DIN :03469816

Membership No. 127406 Managing Director Executive Director

Priya Gupta Pinkesh Upadhyay

Company Secretary and Chief Financial Officer

Compliance officer

Place : Vadodara Place : Mumbai

Date : 25th June, 2025 Date : 25th June, 2025

---

Mar 31, 2024

o. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past
event that probably requires an outflow of resources and a reliable estimate can be made of the
amount of the obligation. Provisions are determined by discounting the expected future cash
flows (representing the best estimate of the expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability.

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation that the likelihood of outflow of resources is remote,
no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed.

p. Cash and Cash equivalent

Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash, drafts and
cheques in hand, bank balances, unencumbered demand deposits with banks where the original
maturity is three months or less and other short term highly liquid investments. Bank overdrafts
that are repayable on demand and form an integral part of the Company’s cash management
are included as a component of cash and cash equivalent for the purpose of Cash Flow
Statement.

q. Employee benefits
Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided. A liability is recognised for the amount expected
to be paid, if the Company has a present legal or constmctive obligation to pay this amount as
a result of past service provided by the employee, and the amount of obligation can be
estimated reliably.

Defined contribution plans

The Company recognizes contribution payable to a defined contribution plan as an expense in
the Statement of Profit and Loss when the employees render services to the Company during
the reporting period.

Defined Benefit Plans

The company has not made provision for gratuity liability as per requirement of fndAS -19
“Employee Benefits".

r. Operating segments

The Company identifies primary segments based on the dominant source, nature of risks and
returns and the internal organisation and management structure. The operating segments are
the segments for which separate financial information is available and for which operating
profit / loss amounts are evaluated regularly by the Chief Operating Decision Maker (CODM)
in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies
of the Company. Segment revenue, segment expenses, segment assets and segment liabilities
have been identified to segments on the basis of their relationship to the operating activities of
the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not
allocable to segments on reasonable basis have been included under “unallocated revenue /
expenses / assets / liabilities”.

s. Leases
Company as Lessee

Right-of-Use (ROU) assets are recognised at inception of a contract or arrangement for
significant lease components at cost less lease incentives, if any. ROU assets are subsequently
measured at cost less accumulated depreciation and impairment losses, if any. The cost of
ROU assets includes the amount of lease liabilities recognised, initial direct cost incurred and
lease payments made at or before the lease commencement date. ROU assets are generally
depreciated over the shorter of the lease term and estimated useful lives of the underlying
assets on a straight line basis. Lease term is determined based on consideration of facts and
circumstances that create an economic incentive to exercise an extension option, or not to
exercise a termination option. Lease payments associated with short-term leases and low value
leases are charged to the Statement of Profit and Loss on a straight line basis over the term of
the relevant lease.

The Company recognises lease liabilities measured at the present value of lease payments to
be made on the date of recognition of the lease. Such lease liabilities do not include variable
lease payments (that do not depend on an index or a rate), which are recognised as expense in
the periods in which they are incurred. Interest on lease liability is recognised using the
effective interest method. Lease liabilities are subsequently increased to reflect the accretion
of interest and reduced for the lease payments made. The carrying amount of lease liabilities
is also remeasured upon modification of lease arrangement or upon change in the assessment
of the lease term. The effect of such remeasurements is adjusted to the value of the ROU
assets.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of
ownership of an asset are classified as operating leases. Where the Company is a lessor under
an operating lease, the asset is capitalised within property, plant and equipment or investment
property and depreciated over its useful economic life. Payments received under operating
leases are recognised in the Statement of Profit and Loss on a straight line basis over the term
of the lease.

t. Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares. Potential equity shares are
deemed to be dilutive only if their conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential dilutive equity shares are deemed to
be converted as at the beginning of the period, unless they have been issued at a later date.

u. Recent Indian Accounting Standard (Ind AS) issued not yet effective

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.
For the year ended March 31, 2024, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

(i) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

(ii) 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).

(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Financial instruments risk management objectives and policies

The Company''s principal financial liabilities comprises of trade and other payables. The Company’s financial assets include
trade and other receivables, and cash & cash equivalents that it derives directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company''s senior management is supported by the Board of Directors that advises on
financial risks and the appropriate financial risk governance framework for the Company. This provides assurance to the
Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and
procedure and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk
objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(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, investments, and loans
given. The Company is having majority of the receivables from private sector. The Company does not have significant credit
risk exposure to any single counterparty.

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

Cash and Cash equivalent and Other Bank Balances

The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good past
track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of goods sold or services rendered to
a contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is
yet to be received.

The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and
other receivables.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix.
The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and
is adjusted for forward-looking estimates.

Assets are written off when there are no reasonable expectation of recovery such as debtor declaring bankruptcy or failing to
engage in a repayment plan with group. Where receivables have been written off the company continues to engage in
enforcement activity to attempt to recover the receivables, where recoveries are made, these are recognised in profit and
loss.

The following year end trade receivables, though overdue, are expected to be realised in the normal course of business and
hence, are not considered impaired as at March 31, 2024 and March 31, 2023:

(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 monitors its risk of a shortage of funds by estimating the future cash flows. The Company''s
objective is to maintain a balance between working capital of the company. The Company generates sufficient cashflow from operations to maintain
a healthy working capital balance.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and
include estimated interest payments and exclude the impact of netting agreements.

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 Company determines the amount of capital required on the basis of the annual business plan coupled with long term and short
term strategic investments and expansion plans. The funding needs are met through equity, cash generated from operations, long
terms and short term bank borrowings/other borrowings.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as
total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents. Adjusted equity comprises all
components of equity.

The Company as a Lessee

The Company''s significant leasing/ licensing arrangements are mainly in respect of factory building. Leases typically run in a range from 1 years to 6
years, with an option to renew the lease after that date. The Company previously used to classify leases as operating or finance leases based on its
assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company.

In the statement of profit and loss for the current year, operating lease expenses which were recognised as other expenses in previous periods is now
recognised as depreciation expense for the right-of-use asset and finance cost for interest accrued on lease liability. The adoption of this standard did
not have any significant impact on the profit for the year and earnings per share. The Incremental borrowing rate of 8% has been applied to lease
liabilities recognised in the balance sheet at the date of initial application.

The Company used following practical expedients when applying Ind AS 116 :

- did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of initial application;

- did not recognise right-of-use assets and liabilities for leases of low value assets;

- excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application; and

- used hindsinht when determining the lease term.

Note 37:

The Company have used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has not operated throughout the year
for all relevant transactions recorded in the software.

Note 38: Additional disclosures as required under schedule III of the Companies Act 2013.

1. Title deeds of all immovable properties are held in name of the Company as at 31 st March 2024
except one land which is in the name of the promoter director. The said land is adjacent to the
existing factory and is acquired for the purpose of expansion projects of the company. The
company has initiated the process of conversion of the said agricultural land into Non¬
Agricultural Land. The said land being an agricultural land cannot be held in the name of the
company, (refer note no. 4.1).

2. The company does not hold any Investment Property in its books of accounts, so fair valuation
of investment property is not applicable.

3. The company has not revalued any of its property, plant and equipment including Rights to use
assets in the current year and previous year.

4. The company has not granted any loans or advances to promoters, directors, KM P''s and the
related parties that are repayable on demand or without specifying any terms or period of
repayment.

5. No proceedings have been initiated or pending against the company under the Benami
Transactions (Prohibition) Act. 1988.

6. Company is not having any transaction with the Companies struck off under the Section 248 of
the Companies Act 2013 or Section 560 of the Companies Act 1956.

7. There are no charges or satisfaction thereof which are to be registered with the Registrar of
Companies beyond statutory period except satisfaction of charge from HDB financials Ltd. due
to non-receipt of no due certificate from the said company.

8. The company has not been declared a wilful defaulter by any bank or financial institution or any
other lender.

9. The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on
number of Layers) Rules, 2017 are not applicable to the company as per Section 2(45) of the
Companies Act,2013.

10. The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

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

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

11. The Company have 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 the funding party (ultimate beneficiary) or;

b) Provide any guarantee, security or the like on behalf of the ultimate beneficiary.

12. The company does not have any transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessment under
the Income Tax Act. 1961.

13. The company has not traded or invested in Cyrpto Currency or Virtual Currency during the
financial year.

14. There were no scheme of Arrangements approved by the competent authority during the year
in terms of section 230 to 237 of the Companies Act, 2013

15. The Company has filed quarterly returns or statements with the banks who have sanctioned
working capital facilities, which are in agreement with the books of accounts.

42 Previous year figures

Previous year''s figures have been regrouped or reclassified wherever necessary to confirm to the current period''s presentation

For K M Swadia & Co.

Chartered Accountants
FRN - 110740W

Sandeep Gandhi Hitendra Desai

CA. Archit D Antani DIN : 00941665 DIN =00452481

Partner Managing Director Executive Director

M. No. - 149221

Priya Gupta Pinkesh Upadhyay

Company Secretary and Compliance officer Chief Finanical Officer

Place : Vadodara Place : Mumbai

Date : May 30, 2024 Date : May 30, 2024