Minal Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

Provisions are recognised when the Company has a present obligation (legal or constructive), as a
result of past events, and it is probable that an outflow of resources, that can be reliably
estimated, will be required to settle such an obligation.

If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows to net present value using an appropriate pre-tax discount rate that
reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Unwinding of the discount is recognised in the Standalone Statement of
Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted
to reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle or a liable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non -occurrence of one or more uncertain future events not wholly within the
control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is

Contingent assets are not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is
virtually certain, then the related asset is not a contingent asset and is recognised. However,
major contingent assets (if any) are disclosed in the notes to financial statements.

Onerous contracts

Present obligations arising under onerous contracts are recognised and measured as provisions.
An onerous contract is considered to exist where the Company has a contract under which the
unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received from the contract.

(XIV) Earnings per Equity Share

Basic EPS is computed by dividing the net profit or loss after tax for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the
year.

Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average
number of equity shares outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive

1.2. Key sources of estimation uncertainty and critical accounting judgements

The preparation of Standalone financial statements, in conformity with Ind AS requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. The
management bases its estimates on historical experience and various other assumptions that are
believed to be reasonable under the circumstances. Actual results may differ from those
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected. In particular, information about significant areas of estimation,
uncertainty and critical judgements in applying accounting policies that have the most significant
effect on the amounts recognized in the Standalone Financial Statements is included in the
following notes:

a. Property, plant and equipment

The charge in respect of periodic depreciation is derived after determining an estimate of an
asset''s expected useful lives and the expected residual value at the end of its lives. The useful
lives and residual values of Company''s assets are determined by Management at the time the
asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technology. Such lives are dependent upon an
assessment of both the technical lives of the assets, and also their likely economic lives based on
various internal and external factors including relative efficiency, the operating conditions of the

asset, anticipated technological changes, historical trend of plant load factor, historical planned
and scheduled maintenance. It is possible that the estimates made based on existing experience
are different from the actual outcomes and could cause a material adjustment to the carrying
amount of property, plant and equipment.

b. Impairment of investments in subsidiaries:

Determining whether the investments in subsidiaries are impaired requires an estimate in the
value in use of investments. In considering the value in use, the Directors have anticipated
various factors of the underlying businesses / operations of the investee companies as more fully
described. Any subsequent changes to the cash flows due to changes in the factors could impact
the carrying value of investments.

c. Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value
of such obligation are determined using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, future salary increases, mortality rates and
attrition rate. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.

d. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are possible but not probable of crystalising or are
very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed
in the notes but are not recognized. The cases which have been determined as remote by the
Company are not disclosed.

Contingent assets are neither recognized nor disclosed in the Standalone Financial Statements
unless when an inflow of economic benefits is probable.

e. Provisions

The timing of recognition and quantification of the liability requires the application of judgement
to existing facts and circumstances, which can be subject to change. The carrying amounts of
provisions and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

f. Income taxes

Significant judgements are involved in determining the provision for income taxes, including
amount expected to be paid / recovered for uncertain tax positions. In assessing the realizability
of deferred tax assets arising from unused tax credits, the management considers convincing
evidence about availability of sufficient taxable income against which such unused tax credits can
be utilized. The amount of the deferred income tax assets considered realizable, however, could
change if estimates of future taxable income changes in the future.

1.3. 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 notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the
Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based
on its evaluation has determined that it does not have any significant impact in its financial
statements.

Nature and purpose of reserve

1. Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained
earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free
reserve available to the Company.

2. Capital Reserve

Reserve is primarily created on amalgamation as per statutory requirement. This reserve is utilised in accordance with the specific provisions of the Companies Act 2013.

3. Security Premium

Securities Premium is credited when shares are issued at premium including non-cash transaction. This reserve is utilised in accordance with the specific provisions of the
Companies Act

4. Revaluation Reserve

It is created through the revaluation of assests as per the Companies Act, 2013 and Indian Accounting Standard notified by Ministry of Corporate Affirs (MCA).

5. General reserve

Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified percentage in accordance with
applicable regulations.The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for
that year,then the total dividend distribution is less than the total distributable reserves for that year.

Consequent to introduction of Companies Act 2013, the requirement of mandatory transfer of a specified percentage of the net profit to general reserve has been
withdrawn and the Company can optionally transfer any amount from the surplus of profit and loss to the General reserves. This reserve is utilised in accordance with the
specific provisions of the Companies Act 2013.

NOTE 35:-

NOTE 35.1:- As per IndAS 115 - ''Revenue from Contracts with Customers'', income is defined as a transaction which increases in economic benefits during
the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those
relating to contributions from equity participants.

NOTE 35.2 :- Company''s investments in Subsidiaries viz. Minal Infojewels Limited (''MIJL'') is 49.40% amounting to Rs 1235.00 lakhs which is long term in
nature and Company had made aggregate provision for investments of Rs. 600.00 lakhs in the books. The Company has also given loan aggregating to Rs.
2387.95 lakhs of which aggregate provision was made amounting to Rs. 1200.00 lakhs in the books in previous years. There is no change in the above
provison in the current year.

MIJL has earned a net profit of Rs. 532.93 lakhs during the year ended 31st March,2025. However, It has incurred losses for the past years and has
accumulated negative reserves to the tune of Rs 511.54 lakhs as on 31st March, 2025. As per management projections no further adjustment is necessary
for impairing the carrying cost (net of provisions) of investments of Rs. 635.00 lakhs and loans amounting to Rs. 1187.96 lakhs which is outstanding as an
31st March, 2025.

The interest income for the year ended 31st March 2025, has not been accrued for loan given to the subsidiary Minal Infojewels Limited since uncertainty
exists for interest already accrued and pending realization till 31st March 2025 due to accumulated losses of the Subsidiary and have expressed its inability
to pay interest till its financial condition improves. As explained to us, the management is in the process of identification of growth opportunities for the
Subsidiary which will ultimately allow the Company to realise the aggregate interest and loan amount outstanding as at 31st March 2025

NOTE 35.3 :- The Company wholly-owned overseas subsidiary, Minal International FZE on February 10, 2025 wound up its business and formal winding-up
process has been initiated and its commercial license has expired on that date. Based on the audited financial statements of the subsidiary dated February
10, 2025, which reflect accumulated losses eroding the entire capital, the Company has written off the full amount of its investment of Rs. 18.38 Lakhs and
loan receivable (including interest) of Rs. 390.61 lakhs during the current financial year, total write off amounting to Rs. 408.99 lakhs. Further in the year
ended March 31, 2024, the company had reassessed the recoverability of the loan given to and interest receivable and investment made in wholly owned
overseas subsidiary and recognised an impairment provision of Rs. 408.99 lakhs which had been disclosed as an exceptional item and hence there is no
impact on profit and loss account in the current financial year.

NOTE 35.4 :- The Managing Director of the Company, Shri Shrikant Parikh, has filed a petition before the National Company Law Tribunal (NCLT) under
Section 59 of the Companies Act, 2013 against Mr. Mahendra Shah and Mr. Champaklal Mehta and Share transfer agent M/s MCS Share Transfer Agent
Limited. The petition pertains to a dispute regarding ownership of equity shares of the Company . The matter is currently going on and no final order has
been passed by the NCLT as of the reporting date. Based on the current status of the proceedings and legal advice received, the Company does not expect
any financial implication as on date.

NOTE 36.1.(a):- It is not practicable to estimate the timing of cash outflows, if any, in respect of matters above, pending resolution of the arbitration /
appellate proceedings.

NOTE 36.1.(b):- The company does not expect any reimbursement in respect of the above contingent liabilities.

NOTE 36.2 :- In the opinion of management, the current assets, loans and advances have a value on realisation in the ordinary course of business, at least
equal to the amount at which they are stated in the balance sheet. Provision for all known liabilities is adequate and not in excess of what is required.

NOTE 36.3:- The Company is yet to receive balance confirmation in respect of certain trade payable, other payable, trade receivable, other receivable and
loan and advances. The management does not expect any material difference affecting the current year’s financial statements due to the same.

(a) Gratuity (Non-Funded):

"The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payment to
vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days’ salary for each completed year
of service . Vesting occurs upon completion of five continuous years of service in accordance with Indian law.

The company is typically expose the Group to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Interest Risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt
Longevity risk:

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

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary
of the plan participants will increase the plan''s liability.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at March 31, 2025 by M/S
Kewal Krishan Wadhwa, Consulting Actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost,
were measured using the projected unit credit method.

The following tables summarise the components of net benefit expenses recognised in the statement of profit and loss and the funded status and amounts
recognised in the balance sheet for the respective plans:

Notes:

1. As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is not ascertainable
and therefore not included above.

2. The Company pays sitting fees at the rate of 0.15 Lakhs for meeting of the Board and Audit committees.The amount paid to them by way of sitting fees
during current year is Rs. Nil (Previous year Rs. 0.60 Lakhs), which is not included above.

Terms and conditions
Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm''s length transactions and in the ordinary
Loans to subsidiaries:

The Company had given loans to subsidiary for general corporate purposes. The loan balance as on 31st March 2025 was Rs 1187.95 lakhs (As on 31
March 2024: Rs.1230.57 lakhs ). These loans are unsecured and carry an interest rate of 5.25% repayable within a period of one year.

NOTE 39.1.(c) :- Financial Risk Management

The Company’s activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk and foreign exchange risk. The Company’s focus is
to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.

(i) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the
reporting date is primarily from trade receivables amounting to Rs. 403.62 lakhs and Rs. 409.12 lakhs as of 31st March, 2025 and 31st March, 2024,
respectively. The Company has its entire revenue from group companies. Hence no credit risk is perceived.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

(ii) Interest rate risk

Interest rate risk is the that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The
company is exposed to interest rate risk because funds are borrowed at floating interest rates. interest rate risk is measured by using the cash flow
sensitivity for changes in variable interest rate.

(iii) Liquidity Risk management

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by
delivering cash or another financial assets. 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.

NOTE 42 :- The Company has Loss of Rs. 111.51 lakhs during the year ended March 31, 2025 and Loss of Rs. 347.47 lakhs during year ended March 31, 2024. The
net accumulated losses of the company being Rs. (2147.43 lakhs) as on Year ended March 31, 2025. Management continues to strengthen its strategy to expand its
market in order for the Company to increase its sales and eventually generate profit. In spite of these events or conditions which may cast a doubt on the ability of
the company to continue as a going concern, the management is of the opinion that going concern basis of accounting is appropriate in view of the continued
financial support from its Promoters. Accordingly, the standalone financial statements of the Company have been prepared on a going concern basis.

NOTE 43 :- ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

iii) The Company has not advanced or loaned or invested funds 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.

iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:

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

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

vii) The Company does not have any transactions with companies which are struck off.

viii) The Company had availed working capital facilities from bank of Rs. 15.90 Lakhs against hypothecation of stock and book debts. The charge of the company as
available in records of the Ministry of Corporate Affairs (MCA) is historic in nature and it involves practical challenges in obtaining no-objection certificate (NOC)
from the charge holder of such charges, despite repayment of the underlying loan. The Company is in the process of filing the charge satisfaction e-form with MCA
as and when it receives NOC from the charge holder

ix) The Company is not declared willful defaulter by any bank or financials institution or lender during the year

x) Section 135 of the Companies Act, regarding Corporate Social Responsibility is not applicable to the company.

Note 44 : The company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to
determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of 30th May, 2025 there were no
subsequent events and transactions to be recognized or reported that are not already disclosed.

Note 45 : The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund
and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will
assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which,
the Code becomes effective and the related rules to determine the financial impact are published.

Note 46 : The figures for the previous periods have been regrouped / reclassified / restated wherever necessary in order to make them comparable with figures for
the year ended March 31, 2025.

As per our attached report of even date

For R H MODI & Co. For and on behalf of the Board of Directors

Chartered Accountants Sd/- Sd/-

Firm’s Registration No. 106486W Shrikant Parikh Subham Chand Jain

Sd/- Managing Director Director

R H Modi DIN : 00112642 DIN : 10293473

Proprietor Place : Mumbai Place : Mumbai

Membership No.: 037643 Dated : 30th May, 2025 Dated : 30th May, 2025

Place : Mumbai

Dated : 30th May, 2025 Sd/- Sd/-

Piyush Talyani Harshala Karangutkar

Company Secretary & Compliance Chief Financial Officer
Officer

Membership No : A60447 Place : Mumbai

Place : Mumbai Dated : 30th May, 2025

Dated : 30th May, 2025

---

Mar 31, 2024

13.2:- Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares havng par value of ? 1 per share. Each shareholder is eligible for one vote per share held. The divdend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

13.5:- There are no bonus shares issued during the period of five years immediately preceding the reporting date.

13.6:- There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disin^stment.

13.7:- There are no shares allotted as fully paid up pursuant to contract without payment being received in cash during the period of five years immediately preceding the date of balance

Nature and purpose of reserve

1. Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.

2. Capital Reserve

Reser^ is primarily created on amalgamation as per statutory requirement. This reser^ is utilised in accordance with the specific provsions of the Companies Act 2013.

3. Security Premium

Securities Premium is credited when shares are issued at premium including non-cash transaction. This reserve is utilised in accordance with the specific provisions of the Companies Act

4. Revaluation Reserve

It is created through the re^luation of assests as per the Companies Act, 2013 and Indian Accounting Standard notified by Ministry of Corporate Affirs (MCA) .

5. General reserve

Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a divdend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total divdend distribution is less than the total distributable reserves for that year.

Consequent to introduction of Companies Act 2013, the requirement of mandatory transfer of a specified percentage of the net profit to general reserve has been withdrawn and the Company can optionally transfer any amount from the surplus of profit and loss to the General reserves. This reser^ is utilised in accordance with the specific provsions of the Companies Act 2013.

Note 28:- Current tax

Indian companies are subject to Indian income tax on a standalone basis. For each fiscal year, the entity profit and loss is subject to the higher ofthe regular income tax payable or the Minimum Alternative Tax (“MAT’).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. Statutory income tax is charged at 30% plus a surcharge and education cess.

MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under normal provisions. MAT for the fiscal year 2022-23 is charged at 15% plus a surcharge and education cess. MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which MAT credit arises subject to the

The Company has elected to exercise the option permitted under Section 115BAA ofthe Income Tax Act, 1961 to pay corporate income tax at 22% plus surcharge and cess (aggregating to tax rate of 25.17%) from the financial year 2023-24.

In view of this exercise of the option to transition to the new regime, the Company has recognised provision for current tax and deferred tax for the year ended

Where^r the Company has a present obligation and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made ofthe amount of the obligation, such amounts have been adequately provided for, and the Company does not currently estimate any probable material incremental tax liabilities in respect of these matters (refer note 33).

Note 31:- Segment Reporting

In accordance with the principles given in Ind-AS 108 notified by Companies (Indian Accounting Standards) Rules 2015, the Company has determined its primary business segment as “Manufacturing and Trading of Gems and Jewelery”.

Note 32:32.1:- As per IndAS 115 - ‘Revenue from Contracts with Customers’, income is defined as a transaction which increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

Interest incomefortheyearended March 31, 2024 has not been accruedforloan given to Minal Infojewels Limited (‘Subsidiary’) and Minal International FZE (''Subsidiary'') since uncertainty exists for interest already accrued and pending realisation till March 31, 2024 due to accumulated losses ofthe Subsidiary. However, the management is in the process of identification of growth opportunities for the Subsidiary which will ultimately allow to realise the aggregate interest and loan amount outstanding as at March 31, 2024.

32.2 :-Company’s investments in Subsidiaries vz. Minal Infojewels Limited (‘MIJL’) is 49.40% amounting to Rs 1,235.00 lakhs and Minal International FZE (''MIF'') is 100% amounting to Rs. 18.38

lakhs which is long term in nature and Company has made aggregate provsion for investments of Rs. 600 lakhs for MIJL and Rs. 18.38 lakhs for MIF in the books as on the March 31, 2024. The Company has alsogiven loans to MIJL aggregating to Rs. 2,387.97 lakhs and to MIF(including interest on loan) aggregating to Rs. 390.61 lakhs ofwhich aggregate provsion is made amountingto Rs. 1,200.00 lakhs for MIJL and aggregate provsion is made amounting to Rs. 390.61 lakhs for MIF in the books as on the March 31, 2024.

MIJL has earned a net profit of Rs 187.94 lakhs during the year ended 31st March, 2024. However, It has incurred losses for the past years and has accumulated negative reserves to the tune of Rs

1,037.89 lakhs as on 31st March, 2024 and, as of that date, MIJL current assets exceeded its current liabilities by Rs 4,635.37 lakhs.

These factors raise substantial doubt that the said Subsidiary Company will be able to continue as a going concern. However, as per management projections no further adjustment is necessary for impairing the carrying cost (net of provisions) of investments of Rs. 635 lakhs and loans amounting to Rs. 1187.96 lakhs which is outstanding as an 31st March, 2024.

Note 33A:- Commitments:

Commitments for the F.Y 2023-24 - Rs. Nil (P.Y 2022-23 - Rs. Nil)

Note 34: Disclosures as required by Indian Accounting Standards (Ind AS 24) Employee benefit 34.1:- Defined benefit plans:

The Company provdes for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity shall be payable to an employee on the termination of employment after rendering continuous service for not less than five years, or on their superannuation or resignation. However, in case of death of an employee, the minimum period of five years shall not be required. The amount of gratuity payable on retirement / termination is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number ofyears of servce completed.

These plans typically expose the Company to the following actuarial risks:

Interest Risk:

A fall in the discount rate, which is linked, to the G-Sec rate will increase the present ^lue ofthe liability requiring higher provsion. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Longevity risk:

The present ^lue ofthe defined benefit plan liability is calculated by reference tothe best estimate ofthe mortality ofplan participants both during and aftertheir employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk:

The present ^lue ofthe defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

The most recent actuarial valuation ofthe plan assets and the present value ofthe defined benefit obligation were carried out at 31st March, 2024 by Independent actuarial Agency. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

The following tables summarise the components of net benefit expenses recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans:

The discount rate Is based on the prevaling market yields of Government of India securities as at the Balance sheet date for the estimated term of the obligation.

In assessing the Company''s post retirement liabilities, the Company monitors mortality assumptions and uses up-to-date mortality tables, the base being the Indian assured lives mortality (2012-14) ultimate.

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Sensitivity analysis:

The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate, the salary growth rate and the average life expectancy. The calculation of the net defined benefit liability is sensitive to these assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit liability

Sensitivty due to mortality & withdrawls are not material & hence impact of change due to these not calculated.

The present value of the defined benefit obligation calculated with the same method (projected unit credit) as the defined benefit obligation recognised in the balance sheet. The sensitivity analysis is based on a change in one assumption while not changing all other assumptions. This analysis may not be representative ofthe actual change in the defined benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another since some of the assumptions may be co-related.

Notes:

1. As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above.

2. The Company pays sitting fees at the rate of 15,000 for meeting of the Board and Audit committees . The amount paid to them by way of sitting fees during current year is Rs. 0.60 lakhs (previous year Rs. 0.60 lakhs), which is not included above.

Terms and conditions Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm’s length transactions and in the ordinary Loans to subsidiaries:

The Company had given loans to subsidiaries for general corporate purposes. The loan balance as on 31st March 2024 was Rs. 1,230.58 lakhs

(As on 31 March 2023: Rs.1,465.27 lakhs). These loans are unsecured and carry an interest rate ranging from 5%-5.25% repayable within a period of one year.

Note 36:- FINANCIAL INSTRUMENT 36.1(a) Capital Risk Management

The Company''s objective is to maintain a strong & healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum utilisation of its funds. The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments.

Note 37: FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk and foreign exchange risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.

(i) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ? 409.13 Lakhs and ? 344.79 Lakhs as of 31 st March, 2024 and 31st March, 2023, respectively. The Company has its entire revenue from group companies. Hence no credit risk is perceived. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks.

(ii) 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 is exposed to interest rate risk because fjnds are borrowed at floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

(iii) Liquidity Risk management

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 following table details the Company’s sensitivity to a 1% increase and decrease in the INR against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where INR strengthens 1% against the rele^nt currency. For a 1% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Note 40 The Company has loss of f 347.48 Lakhs during the year ended March 31, 2024 and Profit of f 100.04 Lakhs during year ended March 31, 2023. The net accumulated losses of the company being f 2035.91 Lakhs as on year ended March 31, 2024. Management continues to strengthen its strategy to expand its market in order for the Company to increase its sales and eventually generate profit. In spite of these events or conditions which may cast a doubt on the ability of the company to continue as a going concern, the management is of the opinion that going concern basis of accounting is appropriate in view of the continued financial support from its Promoters. Accordingly, the standalone financial statements of the Company have been prepared on a going concern basis.

Note 41 :- The company did not use accounting software with a feature for recording audit trails (edit logs) for maintaining its books of account.

Note 42 :- Exceptional Items:

During the year ended March 31, 2024, the Company has reassessed the recoverabily of the loans given to and interest receivable and investments ‘made in subsidiaries and recognised an impairment provision of Rs 408.99 lakhs which has been disclosed as an exceptional item,

Note 43: The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment benefits has received Presidential assent in September 2020. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period

Note 44:- Additional Regulatory Information Required by schedule III of the companies act, 2013

i) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property

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

iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the

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

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in

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

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

vi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Lii) Tire Company does not have any transactions with companies which are struck off.

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

ix) The Company is not declared willful defaulter by any bank or financials institution or lender during the year

Note 45 : The company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of 20th July, 2024 there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

Note 46: Previous year’s figures have been regrouped / reclassified wherever necessary, to conform to current period’s classification.

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Mar 31, 2014

Note. 1.

a) There has been a diminution of Rs. 3,53,000/- in the value of long term investments held by the Company as at 31st March, 2014. No provision against the same has been considered necessary since in the opinion of management such diminution is of temporary in nature.

Note 2.

a) Total present liability for future payment of gratuity as on 31st March, 2014 is neither provided nor actuarially determined. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- 'Employee Benefit' issued by the Institute of Chartered Accountants of India.

b) Leave encashment liability, if any, has not been determined, presently, and would be charged when paid. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- 'Employee Benefit' issued by the Institute of Chartered Accountants of India.

Note 3.

During the year the Company has accounted for deferred tax in accordance with the Accounting Standard 22 –"Accounting for Taxes on Income" issued by the Institute of Chartered Accountings of India.

Note 4.

Trade receivables amounting to Rs. 395,61,66,909/- is outstanding for more than three years and the management classifies these debts fully recoverable and Good and accordingly accordingly does not consider it necessary to make any provision.

Note. 5.

LEASE:

The Company has entered into a lease agreement for use of sales counter space along with all the other amenities, which is in the nature of operating lease. As per the terms of the agreement, the period of lease ranges from 11 months to 3 years and the same is further renewable for such period as may be mutually agreed by the lessor and the lessee. The leases can be terminated by either party by giving one month notice as per terms of agreement.

Note. 6.

The management based on their review of assets and operation of the Company has determined that there is no indication of potential impairment and that the recoverable amount of any of its fixed assets is not lower than its carrying amount. Accordingly no provision for impairment is required as at 31 March 2014.

Note 7.

In the absence of the Company Secretary, these financial statements have not been authenticated by a whole time Company Secretary under Section 215 of Companies Act, 1956.

Note 8.

As required by the Notification No. GSR 129(F) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs there are no small scale undertakings to which the Company owes sum which is outstanding for more than 30 days. This information has been determined on the basis of information available with the Company. This has been relied upon by the auditors.

Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act 2006, have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 22 of the said Act is not given.

Note 9.

In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business and provisions for all the known liabilities and depreciation are adequate and not in excess of the amount reasonably necessary.

Note 10.

Previous year's figures have been regrouped or rearranged, wherever considered necessary to conform to current year's presentation. Figures in bracket are in respect of previous year.

Note 11.

Balances of debtors, loans and advances and creditors are subject to Confirmation.

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Mar 31, 2013

Contingent Assets are neither recognized nor disclosed in the financial statements.

Note. 1

Contingent Liabilities and Commitments

Corporate Guarantee given to bank in respect of credit facilities sanctioned to a Associate company Rs. 12,00,00,000/- (P.Y. Rs. 12,00,00,000/-)

Note. 2

a) There has been a diminution of Rs. 3,53,000/- in the value of long term investments held by the Company as at 31st March, 2013, No provision against the same has been considered necessary since in the opinion of management such diminution is of temporary in nature.

Note 3

a) Total present liability for future payment of gratuity as on 31* March, 2013 is neither provided nor actuarially determined. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- ''Employee Benefit* issued by the Institute of Chartered Accountants of India.

b) Leave encashment liability, if any, has not been determined, presently, and would be charged when paid. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- ''Employee Benefit* issued by the Institute of Chartered Accountants of India.

Note 4

During the year the Company has entered into the derivatives transaction in gold commodities and incurred a net derivative loss of Rs.27,IO,100/-(Previous Year Rs.88,53,515/-) which is shown under the head Other Expenses.

Note 5

During the year the Company has accounted for deferred tax in accordance with the Accounting Standard 22 -"Accounting for Taxes on Income" issued by the Institute of Chartered Accountings of India.

ii. The segment revenue and total assets includes the revenue and assets respectively, which are identifiable with each segment and amounts allocated to the segment; on a reasonable basis.

c) The transactions with related parties have been entered at an amount which is not materially different from those on normal commercial terms.

d) No amount has been written back / written off during the year in respect of due to / from related parties.

e) The amount due to / from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

Note.6

LEASE:

The Company has entered into a lease agreement for use of sales counter space along with all the other amenities, which is in the nature of operating lease. As per the terms of the agreement, the period of lease ranges from 11 months to 3 years and the same is further renewable for such period as may be mutually agreed by the lessor and the lessee. The leases can be terminated by either party by giving one month notice as per terms of agreement.

Note.7

The management based on their review of assets and operation of the Company has determined that there is no indication of potential impairment and that the recoverable amount of any of its fixed assets is not lower than its carrying amount. Accordingly no provision for impairment is required as at 31 March 2013.

Note 8

The company secretary appointed as per the provision of Section 3 83 A of the Companies Act. 1956 has been resigned on 30/04/2012. Hence in the absence of the Company Secretary, these financial statements have not been authenticated by a whole time Company Secretary under s^rr5^ Section 215 of Companies Act 1956.

Note 9

As required by the Notification No, GSR 129(F) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice am! Company Affairs there are no small scale undertakings to which the Company owes sum which is outstanding for mote than 30 days. This information has been determined on fee b-.sis of information available with the Company. This has been relied upon by the auditors.

Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act 2006, have not furnished the information regarding Tiling of necessary memorandum with the appropriate authority. In view of this, information required tc be disclosed u/s 11 of the said Act is not given.

Note 10

In the opinion of the Board, current assets, leans and advances are approximately of the value stated, if realised in the ordinary course of business and provisions for all the known liabilities and depreciation are adequate end not in excess of the reasonably necessary,

Note 11

The previous year''s figures have been reworked, regrouped, and re- classified wherever necessary.

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Mar 31, 2011

1) i) In consultation with the Vododara Stock Exchange and after due compliance of legal requirements, the Company had forfeited 22,58,000 Equity Shares of Rs. 10/- each

ii) During the year company has reissued 22,58,000 forfeited shares at a premium of Rs. 77.17 per share. The balance in forefeited share capital account is transferred to reserve.

2) There has been a diminution of Rs.3.53 Lacs in the value of long term investments held by the Company as at 31st March 2011, No provision against the same has been considered necessary since in opinion of management such diminution is of temporary in nature.

3) a) Total present liability for future payment of gratuity as on 31st March, 2011 is neither provided nor actuarially determined. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard(AS) 15- 'Employee Benefit' issued by the Institute of Chartered Accountants of India.

b) Leave encashment liability, if any, has not been determined, presently, and would be charged when paid. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard(AS)15- 'Employee Benefit' issued by the Institute of Chartered Accountants of India.

4) During the year the Company has accounted for deferred tax in accordance with the Accounting Standard 22- "Accounting for Tax on Income" issued by the Institution of Chartered Accountings of India.

11) The management based on their review of assets and operation of the Company has determined that there is no indication of potential impairment and that the recoverable amount of any of its fixed assets is not lower than its carrying amount. Accordingly no provision for impairment is required as at 31 March 2011.

5) Sundry Debtor; include; Rs. 2,23,083/- being amount due from the firm in which Directors are interested (Maximum Outstanding during the year Rs.2,74.0m/-)(Previous Year Rs. 2,74,083/-)

Loans and Advances- includes Rs. 1,43,28,930/- being amount given to Wholly Owned Subsidiary company. (Maximum Outstanding during the year Rs.l,43,28.930/-) (Previous Year Rs. 71,88,500/-)

Loans and Advances includes Rs. NIL being amount lent to concern In which Directors are interested (Maximum Outstanding during the year Rs. 1,06,000/-)(Previous Year Rs. 1,00,000/-)

6) The Company is in process of appointing a full time Company Secretary by the provision of Section 3S3A of the Companies Act. 1956, In the absence of the Company Secretary, these financial statements have not been authenticated by a whole time Company Secretary under Section 215 of Companies Act 1956.

7) As required by the Notification Ho. GSR 129(f) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs there are no small scale undertakings to which the Company owes sum winch is outstanding for more than 30 days. This information has been determined en the basis of information available with the Company. This has been relied upon by the auditors, Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act 2006, have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 21 of the said Act is not given.

8) In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business and provisions for all the It own liabilities and depreciation are adequate and not in excess of the amount reasonably necessary,

9) Balances of debtors, loans and advances and creditors are subject to confirmations.

10) Previous year figures are regrouped, rearranged and recast wherever felt necessary so as to mate them comparable with that of current year.

11) Additional information pursuant to provisions of Paragraph 3 & 4 In Part -IT of Schedule-VI to the Companies Act, 1956.

Information in respect of goods manufactured/purchased for resale, sold and stocks (As Certified by a Director)

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Mar 31, 2010

1) In consultation with the Vadodara Stock Exchange and after due compliance of legal requirements, the Company had forfeited 22,58,000 Equity Shares of Rs. 10/- each and resultant paid-up value of Rs. 75,53,000/- of such shares have been shown alongwith the paid-up capital of the Company.

2) There has been a diminution of Rs. 3.53 Lacs in the value of long term investments held by the Company as at 31st March, 2010. No provision against the same has been considered necessary since in the opinion of management such diminution is of temporary in nature.

3) a) Total present liability for future payment of gratuity as on 31st March, 2010 is neither provided nor actuarially determined. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- Employee Benefit issued by the Institute of Chartered Accountants of India.

b) Leave encashment liability, if any, has not been determined, presently, and would be charged when paid. This liability will be dealt with on cash basis which is not in accordance with Accounting Standard (AS) 15- Employee Benefit issued by the Institute of Chartered Accountants of India.

4) The management based on their review of assets and operation of the Company has determined that there is no indication of potential impairment and that the recoverable amount of any of its fixed assets is not lower than its carrying amount. Accordingly no provision for impairment is required as at 31 March 2010.

5) Sundry Debtors includes Rs. 2,71,323/- being amount due from the firm in which Directors are interested ( Maximum Outstanding during the year Rs.2,74,083 /-)(Previous Year Rs. 2,74,083/-)

Loans and Advances includes Rs. 71,88,500/- being amount given to Wholly Owned Subsidiary company. (Maximum Outstanding during the year Rs.71,88,500/-)(Previous Year Rs. NIL)

Loans and Advances includes Rs. 1,00,000/- being amount given to concern in which Directors are interested ( Maximum Outstanding during the year Rs.l,00,000/-)(Previous Year Rs. NIL)

6) The Company is in process of appointing a full time Company Secretary by the provision of Section 383A of the Companies Act, 1956. In the absence of the Company Secretary, these financial statements have not been authenticated by a whole time Company Secretary under Section 215 of Companies Act, 1956.

7) As required by the Notification No. GSR 129(F) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs there are no small scale undertakings to which the Company owes sum which is outstanding for more than 30 days.

In the absence of necessary information with the company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

8) In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business and provisions for all the known liabilities and depreciation are adequate and not in excess of the amount reasonably necessary.

9) The management based on their review of assets and operation of the Company has determined that there is no indication of potential impairment and that the recoverable amount of any of its fixed assets is not lower than its carrying amount. Accordingly no provision for impairment is required as at 31 March 2010.

10) Balances of debtors, loans and advances and creditors are subject to confirmations.

11) Previous year figures are regrouped, re-arranged and recast wherever felt necessary so as to make them comparable with that of current year.