Madhya Bharat Agro Products Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

12.1 Equity shares movement during five years preceding March 31st, 2025.

a) In Previous FY 2023-24, the company had allotted Bonus Equity Shares to the shareholders of the company in the proportion of

1 new fully paid-up Equity Share of Face Value of Re. 10/- each for every 1 existing fully paid-up Equity Share of Face Value of

Re. 10/- each. Hence the issued, subscribed and paid-up capital of the Company as on 31st March 2024 changes to 8762.69 Lakhs comprising of 876.27 Lakhs shares of 10/- each.

b) In FY 2022-23, the company had allotted Bonus Equity Shares to the shareholders of the company in the proportion of 1 new

fully paid-up Equity Share of Face Value of Re. 10/- each for every 1 existing fully paid-up Equity Share of Face Value of Re. 10/- each. Hence the issued, subscribed and paid-up capital of the Company as on 31st March 2023 changes to 4381.34 Lakhs comprising of 438.13 Lakhs shares of 10/- each.

12.3 Terms and Rights attached to Equity Shares

Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of the shareholders in the Annual General Meeting.

13. Other Equity

Nature and Purpose of Other Reserves / Other Equity

13.1 Securities Premium Reserve

Balance of Security premium reserve consist of premium on issue of share over its face value. The balance will be utilized for issue of fully paid bonus shares, buy-back of its own share as per provisions of the Companies Act, 2013.

14.1 In respect of Secured Term Loan

i) Nature of Security - The term loans from HDFC Bank, Axis Bank SBI Bank & Federal Bank is secured by way of first Pari-passu charge on entire present & future fixed assets of the company including movable fixed assets & second Pari-passu charge by way of Hypothecation of current assets.

i) Nature of Security - The Working Capital loan given by HDFC Bank LTD , Axis Bank Ltd , Yes Bank Ltd & SBI Bank Ltd. shall be secured by first pari-passu charge over Company''s entire present & future current assets and second pari-passu charge on fixed assets of the company.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate for HDFC Bank Axis Bank Yes Bank & SBI Bank @ 8.65% ,8.75% ,8.64% & 9.15% respectively as on 31/03/2025

iii) Guarantors - Secured loans are guaranteed by personal guarantee of Sh. Pankaj Ostwal (Managing Director) and Sh. Mahendra Kumar Ostwal (Director), Sh. Praveen Ostwal (Director) and Corporate guarantee by Ostwal Phoschem India Limited.

iv) for transactions with related party ,refer note no. 35.

Additional Note:-

18.1 The Government of India has promulgated an act namely “The Micro, Small & Medium Enterprises Development Act 2006” which comes into force with effect from October,2 2006. As per The Act, the Company is required to identify the Micro & Small Enterprises & Pay them interest on overdue beyond the specified period irrespective of the terms agreed with the enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

II. Financial risk management

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

- Credit risk;

- Liquidity risk; and

- Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s Audit Committee oversees compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees for dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk.

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

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references.

Based on the credit aging of individual customer, the management considers Expected Credit loss (ECL) provision on such receivables on the reporting date.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

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

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market exposures within acceptable parameters, while optimising the return.

Foreign currency risk

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

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 bank-borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

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

33. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance) and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered:

34. CONTINGENT LIABILITIES: 1. Claims against the company not acknowledged as debt		(Amount in USD)
Particulars	| 2024-25 (in lakhs) |	2023-24 (in lakhs)
a. Demand raised by commercial tax department for Entry tax for the F.Y.2012-13	3.72	3.72
b. Demand raised by Assistant Commissioner, Central GST Department, Sagar	-	34.03
c. TDS Demand by Department	-	1.66
d. Bank Guarantee (NFL - DAP/NPK Security for Tender)	93.75	-
e. Bank Guarantee (NFL - SSP Security for Tender)	33.86	-
f. Bank Guarantee - Maharashtra Pollution Control Board Security	25.00	-

(b) Defined Benefit Plan & Other Long-Term Benefits:

i) Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme. The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

1. The Weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8.91 Years.

2. The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is

exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability

Note: The above information and that given in Note No. 18 '' Trade Payables'' regarding Micro and Small Enterprises has been

determined on the basis of information available with the Company and has been relied upon by the auditors.

40. Additional Regulatory Information:

i. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favor of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

ii. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

iii. Company has not granted any loan to related party which are outstanding at balance sheet date, (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are either repayable on demand or without specifying any terms or period of repayment.

iv. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

v. The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

vi. The Company have not been declared willful defaulter by any bank or financial institution or other lender.

vii. The Company do not have any transactions with companies struck off.

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

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

x. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xi. The Company have 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

xii. 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 Beneficiaries) or

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

xiii. The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

xv. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xvi. Ratios:

The following are analytical ratios for the year ended March 31st, 2025 and March 31st, 2024

1) . Total Debts represents long term debts & short-term debts including current maturities of long-term borrowing, lease

liability & SBLC.

2) . Net Profit after taxes non-cash operating expenses interest other adjustments like loss on sale of fixed assets etc.

3) . Tangible net worth deferred tax liabilities lease liabilities total debts.

Explanation for variances exceeding 25%:

a) . Debt-Service coverage ratio increased because of companies’ profits have increased compare to Previous year, however

repayment obligation is similar to previous year.

b) . Inventory Turnover ratio increased because of better management of inventory.

c) . Trade Receivable turnover ratio increased due to timely realisation of payment.

d) . Trade payables turnover ratio decreased due to purchase were paid through M1 exchange for 90 days credit facility to

get better pricing.

e) . Return on Equity & Net Profit Ratio increase due to higher profit compared to previous year.

43. Approval of Financial Statements

The Financial Statements were approved by the Board of Directors on 9th May, 2025. The Board of Directors have recommended dividend of t 0.50 per fully paid-up equity share of t 10/- each, aggregating t 438.13 Lacs for the financial year 2024-25, which is based on relevant share capital as on 31st March, 2025. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

44. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary course of business which is not significantly differ from the amount at which it is stated.

45. The new Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

46. Previous year’s figures have been reclassified, wherever necessary, to confirm current year’s presentation.

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Mar 31, 2024

12.1 Equity shares movement during five years preceding March 31^st, 2024.

a) During the FY 2023-24, the company has allotted Bonus Equity Shares to the shareholders of the company in the proportion of 1 new fully paid-up Equity Share of Face Value of Re. 10/- each for every 1 existing fully paid-up Equity Share of Face Value of Re. 10/- each. Hence the issued, subscribed and paid-up capital of the Company as on 31^st March 2024 changes to 8762.69 Lakhs comprising of 876.27 Lakhs shares of 10/- each.

b) Previous FY 2022-23, the company has allotted Bonus Equity Shares to the shareholders of the company in the proportion of 1 new fully paid-up Equity Share of Face Value of Re. 10/- each for every 1 existing fully paid-up Equity Share of Face Value of Re. 10/- each. Hence the issued, subscribed and paid-up capital of the Company as on 31^st March 2023 changes to 4381.34 Lakhs comprising of 438.13 Lakhs shares of 10/- each.

During the year ended 31^st March 2024, the authorised share capital was increased by Rs. 6000 lakhs, i.e., 600 lakhs Equity Shares of Rs. 10/- each.

12.3 Terms and Rights attached to Equity Shares

Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of the shareholders in the Annual General Meeting.

12.7 The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and Purpose of Other Reserves / Other Equity

13.1 Securities Premium Reserve

Balance of Security premium reserve consist of premium on issue of share over its face value. The balance will be utilized for issue of fully paid bonus shares, buy-back of its own share as per provisions of the Companies Act, 2013.

17.1 for transactions with related party ,refer note no. 35.

i) Nature of Security - The advance shall be secured by HDFC Bank LTD , Axis Bank Ltd & Yes Bank Ltd. on Company''s movable assets like Inventory''s, Book Debts Etc. of Unit-I & Unit ll including movable plant and machinery, machinery spares, tools and accessories, furnitur, fixture, vehicles, and all other movable assets present and future, intangible, goodwill, uncalled capital, present and future.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate for HDFC Bank Axis Bank & Yes Bank @ 9.26% ,9.00% & 9.15% respectively as on 31/03/2024

iii) Guarantors - Secured loans are guaranteed by personal guarantee of Sh. Pankaj Ostwal (Managing Director) and Sh. Mahendra Kumar Ostwal (Director), Sh. Praveen Ostwal (Director) and Corporate guarantee by Ostwal Phoschem India Limited.

18.1 The Government of India has promulgated an act namely “The Micro, Small & Medium Enterprises Development Act 2006" which comes into force with effect from October,2 2006. As per The Act, the Company is required to identify the Micro & Small Enterprises & Pay them interest on overdue beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

II. Financial risk management

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

- credit risk;

- liquidity risk; and

- Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s Audit Committee oversees compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees for dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk.

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

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references.

Based on the credit aging of individual customer, the management considers that no provision on such receivables has been recognised as on the reporting date.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

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

iv. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market exposures within acceptable parameters, while optimising the return.

Foreign currency risk

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

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Commodity price risk

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

33. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

34. CONTINGENT LIABILITIES: 1. Claims against the company not acknowledged as debt
Particulars	2023-24 (in lakhs)	2022-23 (in lakhs)
a. Demand raised by commercial tax department for Entry tax for the F.Y.2012-13	3.72	3.72
b. Demand raised by Assistant Commissioner, Central GST Department, Sagar	34.03	34.03
c. TDS Demand by Department	1.66	1.66

(b) Defined Benefit Plan & Other Long-Term Benefits:

i) Gratuity

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme. The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

ii) Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

1. The Weighted average duration of the defined benefit plan obligation at the end of the reporting period is 9.06 Years.

2. The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability

Note: The above information and that given in Note No. 18 '' Trade Payables'' regarding Micro and Small Enterprises has been

determined on the basis of information available with the Company and has been relied upon by the auditors.

40. Additional Regulatory Information:

i. The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favor of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

ii. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

iii. Company has granted loan to related party which are outstanding at balance sheet date amount Rs. 2036.14 lacs (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are either repayable on demand or without specifying any terms or period of repayment.

iv. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

v. The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks are in agreement with the books of accounts.

vi. The Company have not been declared willful defaulter by any bank or financial institution or other lender.

vii. The Company do not have any transactions with companies struck off.

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

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

x. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xi. The Company have 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

xii. 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 Beneficiaries) or

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

xiii. The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

xv. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xvi. Ratios:

The following are analytical ratios for the year ended March 31^st, 2024 and March 31^st, 2023

1) . Total Debts represents long term debts & short-term debts including current maturities of long-term borrowing, lease

liability & SBLC.

2) . Net Profit after taxes non-cash operating expenses interest other adjustments like loss on sale of fixed assets etc.

3) . Tangible net worth deferred tax liabilities lease liabilities total debts.

Explanation for variances exceeding 25%:

a) . Debt-Service coverage ratio decreased because company profit is drastically down compared to Previous year, however

repayment obligation is similar to previous year.

b) . Return on equity reduced due to lower profit compared to previous year.

c) . Inventory Turnover ratio decreased due to importing high volume of raw material to take price benefits from international

market & also slugging SSP market so it could not be sold.

d) . Trade Receivable turnover ratio decreased due to slow realisation from Co- operative societies and government subsidy.

e) . Trade payables turnover ratio decreased due to cash purchase were paid through M1 exchange for 90 days credit facility

to get better pricing.

f) . Return on capital employed decreased due to reduce the profits drastically compare to previous year, despite higher sales

in quantity terms.

44. Approval of Financial Statements

The Financial Statements were approved by the Board of Directors on 11^th May, 2024. The Board of Directors have recommended dividend of H 0.50 per fully paid-up equity share of H 10/- each, aggregating H 438.13 Lacs for the financial year 2023-24, which is based on relevant share capital as on 31^st March, 2024. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

45. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary course of business which is not significantly differ from the amount at which it is stated.

46. The new Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

47. Previous year’s figures have been reclassified, wherever necessary, to confirm current year’s presentation.

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Mar 31, 2023

Provision and contingent liabilities

The Company sets up a provision when there is a present legal or constructive obligation as a result of a past event and it will
probably require an outflow of resources to settle the obligation and a reliable estimate can be made. If the effect of the time
value of money is material, provisions are determined by discounting the expected future cash flows at a 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.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties surrounding the obligation.

A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the
control of the Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or where reliable estimate of the obligation cannot be made. Contingent
liabilities are disclosed on the basis of judgment of the management/ independent experts. These are reviewed at each balance
sheet date and are adjusted to reflect the current management estimate.

O. Revenue recognition:

Revenue from contracts with customer is recognized when the Company satisfies a performance obligation by transferring the
promised goods or services to a customer at a transaction price. The transaction price is the amount of consideration to which
the Company expects to be entitled in exchange for transferring promised goods or services to a customer as per contract,
excluding amount of taxes collected on behalf of the government. The transaction price is adjusted of trade discount, cash
discount, volume rebate and other variable considerations as per the terms of contract.

a. Sale of goods

Revenue from sale of products is recognised at a point in time when the control on the goods have been transferred to a
customer i.e. when material is delivered to the customer or as per shipping terms, as may be specified in the contract.

b. Government subsidy

Subsidy has been recognized by the Company on the basis of the notification received from the ministry of Chemicals and
fertilizers from time to time.

c. Other operating revenue

i. Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the applicable
interest rates.

ii. Claim lodged with insurance companies is recognized as income on acceptance by the insurance Companies.

iii. Rental income is recognised in the statement of profit and loss on straight line basis.

P. Segment accounting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker. Chief Operating Decision Maker review the performance of the Company according to the nature of products
manufactured, traded and services provided, with each segment representing a strategic business unit that offers different
products and serves different markets.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting
financial statements of the Company as a whole.

Based on the management approach as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker
(CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators
of business segment/s in which the company operates. The Company is primarily engaged in the business of Fertilizer
manufacturing and other products are backward integration therefore management and CODM recognise Fertilizer segment
as the sole business segment. Hence, disclosure of segment-wise information is not required and accordingly not provided.

Q. Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company
by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Company had restated the earning per share and diluted earning per share as the company has allotted Bonus Equity Shares
to the shareholders of the company in the proportion of 1 new fully paid-up Equity Share of Face Value of Re. 10/- each for
every 1 existing fully paid-up Equity Share of Face Value of Re. 10/- each. Hence the issued, subscribed and paid-up capital of
the Company as on 31^st March 2023 changes to 4,381.34 Lakhs comprising of 438.13 Lakhs shares of 10/- each. therefore, in
Previous financial year 2021-22 in numerator earnings are same but in denominator weighted average number of equity shares
are taken after considering bonus effect, due to that EPS & Diluted EPS both change in previous year.

R. Statement of cash flow

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

S. Government grant & government assistance

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions
attaching to them and that the grants will be received.

Government grant if relates to an expense item are recognised in the statement of profit and loss on a systematic basis over
the periods in which the Company recognise as expenses the related costs for which the grants are intended to compensate.

Post amendment in Ind AS 20, the government grant related to assets, including non-monetary grant shall be presented at
fair value in balance sheet either by setting up the grant as deferred income or by grant by adjusting in the carrying amount
of the asset.

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Mar 31, 2021

17.1 for transactions with related party, Refer Note No. 35

i) Nature of Security - The advance shall be secured by 1st charge on Company''s movable assets of Unit-I & Unit ll including movable plant and machinery, machinery spares, tools and accessories, furnitur, fixture, vehicles, and all other movable assets present and future, intangible, goodwill, uncalled capital, present and future.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 7.75% as on 31/03/2021

iii) The bank loan for working capital is guaranteed by personal guarantee of Sh.Pankaj Ostwal(Managing Director) and Sh.Mahendra Kumar Ostwal,Sh.Praveen Ostwal 18.1 The Government of India has promulgated an act namely "The Micro, Small & Medium Enterprises Development Act 2006" which comes into force with effect from October,2 2006. As per The Act, the Company is required to identify the Micro & Small Enterprises & Pay them interest on overdue beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers.This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Accordingly, there were no interest due on the principal amount, not there was necessity to pay interest for delayed payment in terms of section 16 of the Micro, Small and Medium Enterprises Development Act. Since the Company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

II. Financial risk management

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

- credit risk;

- liquidity risk; and

- Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the processes

to ensure that executive management controls risks through the mechanism of property defined framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s Audit Committee oversees compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

ii. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees for dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk. The credit risk for the financial guarantees issued by the Company to bank for credit facilities availed by Company''s dealers from bank is minimum as those parties have long vintage with the Company and they are also subject to credit risk assessment by bank on periodical basis.

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

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delifery terms and conditions are offered. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references.

Based on the credit aging of individual customer, the management considers that no provision on such receivables has been recognised as on the reporting date.

iii. 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 delifering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

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

iv. Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market exposures within acceptable parameters, while optimising the return.

Foreign Currency risk

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

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

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term borrowing. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Commodity price risk

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

33. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The Company monitors capital using a gearing ratio, which is calculated by dividing Net Debt from the Equity. The Company includes within Net Debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance) and under Equity, the Equity Share Capital plus other Equity (excluding Preference Share Capital) is considered:

(b) Defined Benefit Plan:GRATUITY

The Company makes payment to vested employees as per provisions of Payment of Gratuity Act, 1972. The provision of Gratuity Liability as on the Balance Sheet date is done on actuarial valuation basis for qualifying employees, however the same is not funded to any trust or scheme. The present value of the Defined Benefits obligation and the related current service cost is measured using the Projected Unit Credit Actuarial Method at the end of Balance Sheet date by the Actuary.

Leave Encashment

The Company provides benefit of leave encashment to its employees as per defined rules. The provision for liability for leave encashment as on date of Balance Sheet is recognised on the basis of Actuarial certificate.

1. The Weighted average duration of the defined benefit plan obligation at the end of the reporting period is 10.25 Years.

2. The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

J) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such

Company is exposed to various risks as follows -

• Salary Increases: - Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

• Investment Risk: - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

• Discount Rate: - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

• Mortality & disability: - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

• Withdrawals: - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

40. Impact of COVID-19 :

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets and impact on revenue recognition owing to changes in cost budgets of fixed price contracts. The Company has carried out this assessment based on available internal and external sources of information up to the date of approval of these standalone financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the standalone financial statements may differ from that estimated as at the date of approval of these standalone financial statements owing to the nature and duration of COVID-19.

Note: The above information and that given in Note No. 18 '' Trade Payables'' regarding Micro and Small Enterprises has been determined on the basis of information available with the Company and has been relied upon by the auditors.

42. APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors on May, 2021. The Board of Directors have recommended dividend of ^ 0.50 per fully paid up equity share of ^ 10/-each, aggregating ^ 109.53 Lacs for the financial year 2020-21, which is based on relevant share capital as on 31st March, 2021. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

43. Previous year''s figures have been reclassified, wherever necessary, to conform current year''s presentation.

43. Previous year''s figures have been reclassified, wherever necessary, to conform current year''s presentation.

44. In the opinion of the Board, all assets other than fixed assets and non-current investments, have a realisable value in the ordinary course of business which is not significantly differ from the amount at which it is stated.

45. The new Code on Social Security, 2020 (the Code) has been enacted, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified. The Ministry of Labour and Employment (the Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

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Mar 31, 2018

i) a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period.

ii) Details of shares held by shareholders holding more than 5% shares of the company.

iii) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

v) Disclosure pursuant to Note no. 6(A)(i) of Part-I of schedule VI to the companies Act,2013

a) Term Loan

i) Nature of Security - The term loans 25.00 Cr. takeover by HDFC Bank from SBI is secured by way of 1st charge in the from of mortgage of assets of the company''s immovable properties at Banda Unit Sulphuric and SSP unit (present and future) at village Sorai, Tehsil Banda, Distt Sagar, (MP) owned by the company.

ii) Terms of Repayment- The HDFC Term Loans to be reapid in equated monthly installments of Rs. 34.76 Lacs each. The last installment is in March 2025. The rate of interest charged on the term laon by HDFC Bank @ 8.70% P.A.

1. DEFFERED TAX LIABILITIES

i) The company has recognized a provision for deferred tax Liability of Rs. 66.26 Lacs, P.Y. Rs. 135.52 Lacs Deferred Tax Assets in the Profit and Loss A/c. The balance of Deferred Tax Assets as on 31.03.2018 is Rs. 191.21 Lac (previous year Rs. 257.47 Lac DTA) determined on account of timing differences in accordance with Accounting Standard-22 "Accounting for Taxes on Income" as under :-

ii) Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing taxation laws.

2. SHORT-TERM BORROWING

i) Nature of Security - The advance shall be secured by 1st charge on Company''s movable assets of Unit ll including movable plant and machinery, machinery spares, tools and accessories, furniture, fixture, vehicles, and all other movable assets present and future, intangible, goodwill, uncalled capital, present and future.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 8.70 % as on 31/03/2018

iii) The bank loan for working capital is guaranteed by personal guarantee of Sh.Pankaj Ostwal, Managing Director.

3. TRADE PAYABLES

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2018. This information as required to be disclosed under the Micro-small and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

4. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on useful life of assets on triple shift basis on BRP & SSP & SA plant in accordance with the provisions of Section 123 read with the Part C of Schedule II to the Companies Act, 2013. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Disposal from Gross Block represents sale of fixed assets.

iii) Deduction in depreciation is on account of sale of fixed assets.

iv) The Land stated at revalued as per registered valuers report.

v) No provision is required for impairment of assets according to AS-28 ''Impairment of Assets" as the value in use as estimated by the management, is higher than the carrying amount of the assets as on Balance Sheet date. In order to arrive at the value in use, the company has reviewed the future earnings of the remaining useful life of all its cash generating units as at Balance Sheet date which has been discounted at the average long term lending rate of the Company.

5. FOREIGN CURRENCY EXPOSURE

During the period from 01.04.2017 to 31.03.2018 company import 2500 MT Rock Phosphate in USD 135000.and import machinery in USD 90400.

6. IMPORTED & INDIGENOUS RAW MATERIAL, COMPONENTS AND SPARE PARTS CONSUMED - All raw material are indigenous except partly raw material (rock phosphate) imported through high sea agreement basis, components and spare parts consumed by the company are indigenous.

7. The company has taken a plan from SBI Life & HDFC Life in compliance of terms of sanction of Cash Credit Limit taken from HDFC. The company has paid premium & debited to the profit & Loss account. As per the assignment of the policy the maturity value will be received to Managing Director Mr. Pankaj Ostwal. The Managing Director Mr. Pankaj Ostwal of the company has been duly undertake to derive no benefit out of that & consented to deposit the entire amount into the company as and when received to him. The maturity value will be credited to profit & Loss A/c in the year of receipt.

8. a) Figures of Previous year have been regrouped, rearranged and/or reclassified wherever consider necessary to make these comparable with the current year. comparable with the current year.

b) Figures have been shown in Lacs except otherwise stated.

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Mar 31, 2016

1. DEFERRED TAX LIABILITIES

i) The company has recognized a provision for deferred tax Assets of Rs. 448.72 Lacs, P.Y. Rs. 58 Lac Differed Tax liability in the Profit and Loss A/c. The balance of Differed Tax Assets as on 31.03.2016 is Rs. 121.96 Lac (previous year Rs. 326.76 Lac DTL) determined on account of timing differences in accordance with Accounting Standard-22 “Accounting for Taxes on Income’ as under.

i) Nature of Security - The advance shall be secured by 1st charge on Company’s movable assets of Unit II including movable plant and machinery, machinery spares, tools and accessories, furniture, fixture, vehicles, and all other movable assets present and future, intangible, goodwill, uncalled capital, present and future.

ii) Terms of repayment - The bank loan for working capital is repayable on demand and having interest rate 10 30 % as on 31/03/2016

ill) The bank loan for working capital is guaranteed by personal guarantee of Sh.Pankaj Ostwal, Managing Director.

There are no Micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31*'' March, 2016. This information as required to be disclosed under the Micro-small and medium enterprises development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

2. FIXED ASSETS

i) The Company has provided depreciation on fixed assets on useful life of assets on triple shift basis on BRP & SSP plant in accordance with the provisions of Section 123 read with the Part C of Schedule II to the Companies Act, 2013. Depreciation on the additions to fixed assets during the year has been provided on pro-rata basis from the date when put to use.

ii) Gross block and Net Block of fixed assets includes Rs. 2523.52 Lacs (P.Y. Rs. 2523.52 Lacs) and Rs. 2460.77 Lacs (P.Y. Rs. 2468.40 Lacs) respectively on account of revaluation of fixed assets carried out in past by the company Depreciation of Rs. 7.64 Lacs (P.Y. Rs. 9.17 Lacs) has been charged to P & L.

iii) Disposal from Gross Block represents sale of fixed assets.

iv) Deduction in depreciation is on account of sale of fixed assets.

v) The Land stated at revalue as per registered values report.

35. a) Figures of Previous year have been regrouped, rearranged and/or reclassified wherever consider necessary to make these comparable with the current year,

b) Figures have been shown in Rs. Except otherwise stated. *