O. Provisions and contingent liabilities

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.

The expenses relating to a provision is presented in the Statement of Profit and Loss net of
reimbursements, if any. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, 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.

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not
wholly within the control of the Company, or present obligations where it is not probable that an outflow
of resources will be required or the amount of the obligation cannot be measured with sufficient
reliability.

Contingent liabilities are not recognized in the financial statements but are disclosed unless the
possibility of an outflow of economic resources is considered remote.

Contingent liabilities and capital commitments disclosed are in respect of items which in each case are
above the threshold limit.

R. Employee benefits(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees'' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12
months are measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the Government Securities (G-Sec) at the end of
the reporting period that have terms approximating to the terms of the related obligation. Re¬
measurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in the Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have
an unconditional right to defer settlement for at least twelve months after the reporting period,
regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is
the present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by actuaries using the
projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the Statement of Profit and Loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid. The
contributions are accounted for as defined contribution plans and the contributions are recognised as

employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the
extent that a cash refund or a reduction in the future payments is available.

S. Earnings Per Share(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per
share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

3. New and Amended Standards:

The Ministry of Corporate Affairs ("MCA"), vide the Companies (Indian Accounting Standards) Amendment Rules,
2025 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2025, notified certain
amendments to Ind AS which are effective for annual reporting periods beginning on or after 1 April 2025. The
Company has applied these amendments for the first time in the preparation of these financial statements. The
amendments, to the extent relevant to the Company, are set out below:

• Ind AS 21, The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability: introduces
requirements for assessing whether a currency is exchangeable into another currency and, where it is
not, for estimating the spot exchange rate to be used, together with related disclosures.

• Ind AS 1, Presentation of Financial Statements — Classification of Liabilities as Current or Non-current /
Non-current Liabilities with Covenants: clarifies the criteria for classifying liabilities as current or non¬
current, including the effect of covenants on the entity''s right to defer settlement of a liability.

• Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures — Supplier Finance
Arrangements: introduces disclosures enabling users to assess the effect of supplier finance
arrangements on the entity''s liabilities, cash flows and exposure to liquidity risk.

• Ind AS 12, Income Taxes — International Tax Reform: Pillar Two Model Rules: provides a mandatory
temporary exception from recognising and disclosing deferred tax arising from Pillar Two income taxes,
and requires specified disclosures for entities within the scope of such rules.

These amendments do not have a material impact on the financial statements of the Company.

Nature of Reserve & Surplus
Retained Earnings

Retained Earnings are the net profit that the Company has earned/ incurred till date, less any transfer to general reserve, dividends or other distributions paid to
shareholders.

Security Premium

This reserve arises on the issue of share capital at a premium in accordance with sanction 52 of the Companies Act, 2013. It captures the excess of issue price of
equity shares over their nominal value and represents non-distributable equity. This reserve provides a buffer for corporate actions such as bonus issue and
premium on redemption of preference shares.

Other items of OCI

Other Comprehensive income includes re-measurement (loss)/ Gain on defained benefit plans net of taxes.

Money received against share warrants

The Company has received share application money against the issue of share warrants. Such amounts have been presented under Other Equity as they are of

Note 38 Defined Benefit Plans

- The Company operates a Gratuity plan as a defined benefit plan covering eligible employees, to provide a lumpsum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of
employement.

Sensitivity Analysis

- The Sensitivity analysis have been determined based on reasonably possible changes of respective assumptions occurring at the end of the
reporting period. While holding all other assumptions constant. The sensitivity analysis presented above 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
assumptions may be correlated.

- The Present value of the Defined benefit Obligation been calculated using the Projected Unit Credit Method at the end of the reporting period, which is
the method as applied in calculating the Defined Benefit Obligation as recognised in the balance Sheet.

Asset-Liability Matching Strategy

- There are no minimum funding requirements for a Gratuity Benefits plan in India and there is no compulsion on the part of the Company to fully or
partially pre-fund the liabilities under the Plan.

- Since the liabilities are unfunded, there is no Asset-Liability Matching strategy decided for the plan.

Note 43 Segment Reporting
Business Segment

The Company''s operations fall under two operating segment "Milk and Milk Products" & "Namkeen Products". However on the basis of management''s
evaluation of the namkeen products segment, the segment does not meet quantitative thresholds criteria, hence, segment reporting is not applicable
as per Indian Accounting Standard (Ind AS) - 108 - Segment Reporting.

- There are no provisions for doubtful debts or amounts written off or written back in respect of debts due to or due from related parties, Currently
there are no outstanding from any related party.

- Related party relationship is as identified by the Company on the basis of information available with them.

- There are no outstanding from any related party or any outstanding to related party.

Note 45 Financial Instrument

Financial Risk Management - Objectives and Policies

The Company''s business activities are exposed to a variety of financial risks, viz liquidity risk, market risk and credit risk. The Management of the
Company has the overall responsibility for establishing and governing the Company''s risk policy framework. The risk management policies are
formulated after the identification and analysis of the risks and suitable risk limits and controls are set which are monitored & reviewed periodically.
The changes in the market conditions and allied areas are accordingly reflected in the changes of the policy. The key risks and mitigating actions are
placed before the Audit Committee of the Company who then evaluate and take the necessary corrective action.

The Company has exposure to the following risks arising from the financial instruments; as described below:

- The fair value of cash and cash equivalents, other bank balances, trade receivables, loans receivable, investments and other financial assets,
borrowings, trade payable, trade credits, and other financial assets and liabilities approximate their carring amount largely due to the nature of these
instruments. accordingly, the carring value of such loans approximate fair value.

B Market Risk

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• Currency risk; and

• Interest rate risk

The above risks may affect the Company''s income and expenses, or the value of its financial instruments."

(a) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of
fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets /borrowings are measured at fair value
through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of
fluctuations in the interest rates.

(b) Foreign Currency Risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s exports revenue and imports of raw material. The risk
exposure is with respect to various currencies viz. USD. The risk is measured through monitoring the net exposure to various foreign currencies and the
same is minimized to the extent possible.

(i) Exposure to Foreign Currency Risk

The Company had no outstanding derivative instruments. The amount of foreign curency exposure (unhedged) are as under:

C. Credit Risk

Credit risk is the risk of financial loss to the Company if the counterparty fails to meet its contractual obligations. The Company is exposed to credit risk
from its operating activities (primarily trade receivables). However, the credit risk on account of financing activities, i.e., balances with banks is very low,
since the Company holds all the balances with approved bankers only.

(i) Cash and Cash Equivalent and Bank Balance

- Cash holdings and balances with banks are placed with reputable financial institutions having high credit ratings. Accordingly, the credit risk
associated with these balances is considered minimal.

(ii) Loans and Other Financial Assets measured at Amortized Cost

- Loans and other financial assets are primarily extended to employees. The Company evaluates the creditworthiness of such parties before granting
loans and monitors recoverability on an ongoing basis.

(iii) Trade Receivable

- Trade receivables arise from the Company''s operating activities. The Company applies the simplified approach under Ind AS 109 to measure lifetime
ECL on trade receivables. Credit risk is managed by evaluating the financial condition of customers, setting appropriate credit limits, and monitoring
outstanding balances. Historical collection patterns and current market conditions are considered in estimating impairment allowances.

(iv) Expected Credit Losses:

The Expected Credit loss allowance is based on the ageing of the receivables are due and the rates as given in the table below. The provision at the end
of the reporting period is as follows.:

D. Liquidity Risk

Liquidity risk is the risk the Company faces in meeting its obligations associated with its financial liabilities. The Company''s approach in managing
liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, Management
considers both normal and stressed conditions.

Note: - CC Facility is gets renewed every year.

Maturities of Financial Liabilities

The Following table detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment and realisation period. The tables have
been drawn up based on the undiscounted cash flows of the financial liablities based on the earliest date on which the Company can be required to pay and
realise.

The Company does not have any derivative financial liability as at the reporting date.

E. Capital Management

The Company policy is to have robust financial base so as to maintain outsider''s confidence and to sustain future development of the business.
Management monitors the return on capital, as well as level of dividends to equity shareholders.The company monitors capital using a ratio of
"adjusted net debt" to "equity". For this purpose, adjusted net debt is defined as total liability, Comprising interest-bearing loans and borrowing, less
cash and cash equivalents. Total Equity includes the share capital, other equity.

46 Loans and Advances given to Related Parties

- The Company has not provided any loan and advances to any related party.

47 Title deeds of Immovable Property not held in name of the Company

- The Board of Directors of the Company is of the opinion that all assets of the Company are held in the name of the Company.

48 Details of Benami Property held

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

49 Wilful Defaulter

- The Company has not been declared as a wilful defaulter by any bank or financial institution, in accordance with the guidance on wilful defaulters
issued by Reserve Bank of India.

50 Relationship with Struck off Companies

- The Company does not have any transactions with struck-off companies.

51 Registration of Charge

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

52 Compliance with number of layers of comapanies

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

Note:

Earning available for Debt Service = Net Profit before taxes Non-cash operating expenses Interest other exceptional item
Debt service = Interest & Lease Payments Principal Repayments
Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

Cost of Goods Sold = Cost of Material Consumed Purchases Changes in Inventories Other Direct expenses
Reasons for Variances

Note 1 : Improvement due to reduction in short-term borrowings. Current assets remained relatively stable, leading to stronger liquidity.

Note 2 : Significant reduction in debt obligations during the year. Equity base remained stable, resulting in healthier leverage position.

Note 3: Higher profitability increased earnings available for debt service. Lower debt servicing requirements (interest principal repayments) improved coverage.
Note 4: Shorter credit period allowed for quicker collections. Revenue growth combined with reduced receivables balance enhanced efficiency..

54 Disclosure where company has given loan or invested to other person or entity to lend or invest in another person or entity

- No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person/s or entity/ies including foreign entity/ies ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediaries shall lend or invest in party ("Ultimate Beneficiaries") identified by or on behalf of the Company.

55 Disclosure where company has received fund from other person or entity to lend or invest in other person or entity

- The Company has not received any fund from any party(s) ("Funding Party/ies"), with the understanding, whether recorded in writing or otherwise,
that the Company shall, whether directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate
Beneficiary") or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiary.

56 Undisclosed Income

- The Company does not have any such transactions which is not recorded in the books of account 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).

Nature of CSR activities

Promoting healthcare including preventive healthcare, distribution of food and clothes, promotion of education and animal welfare etc.

Details of related party transactions

See Note for related party transaction

58 Details of Crypto Currency

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

59 Contingent Assets

- There are no Contingent Assets as on 31 March, 2026 & 31 March, 2025.

60 Subsequent Events

"- Event after the reporting period are those events, favourable or unfavourable, that occur between the end of the reporting period and the date when
the financial statements are approved by the Board of Directors. The types of events can be identified:

(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and

(b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period)."

- The New Labour Codes became effective 21st November 2025, resulting in increase in a past period employee benefit liability,on that liability related
Deferred tax asset has also been recognised. After the balance sheet date, while the Central Government notified the Rules on May 8, 2026, the State
Rules are yet to be notified. The impact relating to Labour Codes is subject to finalisation of rules and regulatory framework thereunder.

61 Discontinuing Operations

- There are no items related to discontinuing operations requiring separate disclosure in the Statement of Profit and Loss.

62 Other Notes

- The outstanding balance as on year end in respect of trade receivables, trade payables, loans and advances and other payables, and other receivables,
if any, are subject to confirmation from respective parties and consequential reconciliation and/or adjustments arising there from, if any. Management
of the Company, however, does not expect any material variation.

- According to the opinion of the management of the Company, the value of realization of trade and other receivables and loans and advances given in
the ordinary course of the business, if any, would not be less than the amount at which they are stated in the balance sheet.

- All lease of property are either short term lease or low value lease, so there are no Right of Use of assets and its Lease Liablity created.

63 Regrouping

- Figures of the previous year have been regrouped and/or rearranged, wherever necessary, to ensure comparability with the current year''s
presentation. Such regrouping or rearrangement has also been carried out in consonance with the current year''s figures, wherever required.

1. Return on equity

fleHJm on equity has been decreased as company has lower pnt?fHg.Ciili1y during The year where as there is a increase ^;n equity fund as compare to previous
re porting yeaf-

2. Trade receivables turnover ratio

Trade receivable turnover ratio has decreased due lo slower collection from debtors and Increase in debtors receivable cycle during the reporting period

3. Return on capital employed

Mel working eapilai ratio has decreased doe to increase in nut working capilat during the current reporting period also company has lower profitability during 1he
reporting period as compare lo previous year

32.B Undisclosed income

The Company does nol haye any siKtitransaclrons which is not recorded Inihe boons otaocount that has been surrendered or disclosed as income during (he year in
the ta* assessments under the income 1a* act. i 961 (such as search or survey or any obier relevant provisions of the Income Tkx Act 19&i)

32,3 Details of crypto currency ervirtual currency

The Company have not traded or invented in Crypto currency or Virtual Currency during the tinanoal year

(B) FAIR VALUE HEtRARCHV

Fair value islhe amount ter which a.^-. asset con d beex>Ctipnged_; pra liability settled between knowledgeable witling parties in an arm''s length transactinn. The

Company has made oedaln i udgements and estimates In determining the lair values of the financial Instruments mat are (a) recognised and measured at lair
va) us and (b) measured at amortised cost and for which rair values are disclosed n Ihe financial statements.

To provide an Indication about the reliability t>i me inputs used In determining fair value, the Company as classified me (InaruMl instruments Into three levels
prescribed under the accounting standard An explanation oi each (evel Is a* follows:

Level 1 Level 1 of hierarchy includes iinancial assets that ere measured hy reference 1d queued prices (unadjusted) n active markets for identical assets or
liabilities

Level 2: Level 2 hairanchy includes Financial instruments thet are not H aded in en active market is determined using valuation techniques wh ich maximlee the

use of observable market data and rely as lime as posable cnentity-speclfic estimates

Level 3: if one or more of the signdicant inputs is not fcased on tee observable market da1a, the instrument is included in Level 3 heira rchy.

0 VALUATION TEC HNIQUES

Speodio valuation leefingues used tb value tinanclai lnstnjm«Tls Include
ito use bl quoted market prices ter mutual funds

- the Fair value oi the remamirg financial instruments is determined using discounted cash Flow analysis c^r such other acceptable valuation methcdnlogy.

wherever applicable

Thera arena items in the Financial instruments, which required level 3 valuation.

Tl''s Company policy¹³ m havs ranusrf n.a -irii^l hast so as m maintain outsiders confidence anc 1o sustain ^Jn1i.rft development pfltse hi.s ness Management monitors
the return on capital. as welt as level ol dividends to equity sharedolders-The company monitors capital using a ratio of ''adjusted res deot'' to ''equity''. For ihrs purpose,
adjusted net dePt 13 defined as lolai ilaoiiily. Comprising mteresl-Pearing leans and Porrowing less cash and cash equivalents Total Equity includes me snare capital,
older equity.

Thu Company''s business activities are exposed lea variety o'' financial neks. viz liquidity risk, market risk and creel risk. The Management of the Company bias the
overall responsibility lor establishing and governing the Company''s risk policy framework. Ttie risk management policies are formulated atter the irfentilioalioh and
analysts oF the risks and su ilable risk limits and controls are set which are monitored & neweiwed periodically. The chemges in Ihe market conditions and allied areas
are accordingly reflecied in the changes of foe policy.The joey risks and mitigating actions are placed before the Audit Committee of the Company who then evaluate
and lake 1be necessary corrective action. Tha sources of risk, which the Company is exposed 1o and how 1he Company manages these risks with thn r impact on the
FinervciBl Statements is given below:

;[A] Credit risk

Credit risk li the risk or financial loss lofoe Company li ihecounterparlyiaiislomeet ita contractual otiligadons. The Company Is exposed to credit risk tnomng operaimg
activities (primanly Irarie new iuables). However, the credit risk on account Of n ngnqing activities, i. e., balances with hanks is very low, smee the Cpmpa ny holds a II the
balances wifo approved bankers only.

Trade receivables

Credit risk is managed through credit appiovals. establishing credit limits and continuously monitoring me cuslomets outstanding balances to which the Company
giants crodn terms in foe normal oou rse ol business. Concentration of ciedlt risk with respect 10 irade receivables aie limned, as ihe Company''s customer base is lai ge,
reputed end haying good crerie credential as well as Ihel they are long standing customers. All Irade neceivehles ere reviewed and assessed for default nr a n uaherty
be it. it Historical experience of cel.ecting receiveblES ei foe Cempeny ia supported by low leve ol past defauh end hence the credit risk is perceived to be low.

,[B] Liquidity risk

Liquidity risk is the risk the Company faces In mealing ns obligations associated with its financial liabilities The Company''s approach in managing liquidity isfo ensure
foal it wiII have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, Ma nagemenl considers bnth norma I and stressed
conditions.

Mat unless ot financial liabilities

The below table analyses the Company''s financial liabilities into refovanl maturity groupings based on Iheir contractual maturities, the amounts disclosed In the table
are contractual undlscounted cash Hows, balances due within. 12 monfos equal then carry¹ ng balances as the Impact of tkscqunhng Is not significant

[C] Merkel risk

The Company''s size and operations result in it being exposed to 1ha fctlawing market risks that a^rise tram its use ?! linanciai inslruments:

* Currency risk: end

* interest rate ns*

Tits above risks may affeci ihe Company''s income and expenses. or Ihe value or its hnaociaf instruments.

(E) Foreign currency risk

Tne Company is subject [? Lie risk lhal changes in foreign currency values impact the Company''s exports revenue and imports of raw malarial. The risk
exposure is with respect 1c various currencies vti- USD The risk is measured ihreugh monitoring the net exposure to various foreign currencies and the

same i s minimized to the extent passible.

(e) Foreign currency risk exposure

The Company does not have foreign currency exposure at theenc of the reporting period.

(C> Foreign currency sensitivity analysis

The sensitivity oi profit and loss to changes m Ihe exchange rates arises mainlyfrom foreign currency denominated financial instruments. As tha Company''s
exposure to foreign currency is insignificant. 1he pvera ll exposure ol fore-gn currency ns* is not significant to the operations ct tne Com pa.ny.

ill) In teres! rale risk

Interest rate risk can be either ''air value interest rate risk ex cash flaw interest rate risk. Fair value interest rate risk is the risk of changes in tair values of lixed
interest bea ring linanciai assets or borrowings because of fluctuations m ihe i nterest miss, it such assets /borrpuangs are measu red at tair value Hirough
profit or toss. Cash flow i nteresl rate risk is the risk that Ihe future cash ''lows of fludli ng interest bearing borrowings wi II flucuLate because of fluctuations in
1he Interestrales

Interest rat* risk exposure

The exposure oF the Company to change in interest rale at end ct Ihe reporting pa ricds are aa follovnis:

Q. Provisions and contingent liabilities

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a

reliable estimate can be made of the amount of the obligation.

The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, 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.

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.

Contingent liabilities and capital commitments disclosed are in respect of items which in each case are above the threshold limit.

R. Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the Government Securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

S. Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

Note: 32 Additional regulatory information

32.1 Details of benami property(ies) held

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

32.2 Security of current assets against borrowings

The Company is having borrowings from banks or financial institutions against which security of current assets is given. Quarterly returns and statements of current assets filed by the Company with banks and financial institutions are generally in agreement with the books of accounts. There are no material discrepancies found.

32.3 Details of wilful default

The Company has not been declared as a wilful defaulter by any bank or financial institution, in accordance with the guidance on wilful defaulters issued by Reserve Bank of India.

32.4 Relationship with struck-off companies

The Company does not have any transactions with struck-off companies.

32.5 Delay in registration/satisfaction of charges with Registrar of Companies

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

32.6 Compliance with number of layers of companies

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

1. Trade receivable turnover ratio

Trade receivable turnover ratio has decreased on account of giving higher credit period to customer during current year.

32.8 Undisclosed income

The Company does not have any such transactions which is not recorded in the books of account 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).

32.9 Details of crypto currency or virtual currency

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

(A) Name of related party and nature of relationship Name of related party

1. Where significant influence exists

DJBS Foundation Sheetal Seva Trust Sheetal Pan & Coldrinks, Amreli Sheetal Smiley Parlour Sheetal Ice cream Parlour

2. Key Managerial Personnel

Bhupatbhai D. Bhuva Dineshbhai D. Bhuva Sanjaybhai D. Bhuva Kiranben N. Gajera Ajaykumar V. Mandanka Vijaybhai B. Desai Mahesh Labhshankar Purohit ^A Bharat Trivedi ¹

Jinal R. Naria

3. Relatives Of Key Managerial Personnel

Dakubhai D. Bhuva Ashmitaben S. Bhuva Hardik D. Bhuva Keval D. Bhuva Nayanaben B. Bhuva Kajalben D. Bhuva Ektaben H. Bhuva Yash B Bhuva

(B) FAIR VALUE HEIRARCHY

Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. The Company has made certain judgements and estimates in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company as classified the financial instruments into three levels prescribed under the accounting standard. An explanation of each level is as follows:

Level 1: Level 1 of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Level 2 heirarchy includes financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on the observable market data, the instrument is included in Level 3 heirarchy.

(C) VALUATION TECHNIQUES

Specific valuation techniques used to value financial instruments include

- the use of quoted market prices for mutual funds

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis or such other acceptable valuation methodology, wherever applicable

The Company policy is to have robust financial base so as to maintain outsider''s confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity shareholders.The company monitors capital using a ratio of "adjusted net debt" to "equity". For this purpose, adjusted net debt is defined as total liability, Comprising interest-bearing loans and borrowing, less cash and cash equivalents. Total Equity includes the share capital, other equity.

[A] Credit risk

Credit risk is the risk of financial loss to the Company if the counterparty fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables). However, the credit risk on account of financing activities, i.e., balances with banks is very low, since the Company holds all the balances with approved bankers only.

Trade receivables

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the customers outstanding balances to which the Company grants credit terms in the normal course of business. Concentration of credit risk with respect to trade receivables are limited, as the Company’s customer base is large, reputed and having good credit credential as well as that they are long standing customers. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.

[B] Liquidity risk

Liquidity risk is the risk the Company faces in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, Management considers both normal and stressed conditions.

Maturities of financial liabilities

The below table analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are contractual undiscounted cash flows, balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

[C] Market risk

"The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• Currency risk; and

• Interest rate risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments."

(i) Foreign currency risk

The Company is subject to the risk that changes in foreign currency values impact the Company’s exports revenue and imports of raw material. The risk exposure is with respect to various currencies viz. USD. The risk is measured through monitoring the net exposure to various foreign currencies and the same is minimized to the extent possible.

(a) Foreign currency risk exposure

The Company does not have foreign currency exposure at the end of the reporting period.

(b) Foreign currency sensitivity analysis

The sensitivity of profit and loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments. As the Company''s exposure to foreign currency is insignificant, the overall exposure of foreign currency risk is not significant to the operations of the Company.

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets /borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will flucutate because of fluctuations in the

1. Previous year''s figures have been regrouped whereever necessary.

2. The outstanding balance as on year end in respect of trade receivables, trade payables, loans and advances and other payables, and other receivables, if any, are subject to confirmation from respective parties and consequential reconciliation and/or adjustments arising there from, if any. Management of the Company, however, does not expect any material variation.

3. According to the opinion of the management of the Company, the value of realization of trade and other receivables and loans and advances given in the ordinary course of the business, if any, would not be less than the amount at which they are stated in the balance sheet.

As per our Report of even date For and on behalf of the Board of Directors,

For, H. B. Kalaria & Associates Bhupatbhai D. Bhuva Sanjaybhai D. Bhuva

Chartered Accountants Managing Director Whole Time Director

Firm Registration No. 104571W DIN: 06616061 DIN: 06616086

Hasmukh B. Kalaria Bharat Trivedi Jinal R. Naria

Partner Company Secretary Chief Financial Officer

Mem. No. 042002 PAN: ABBPT0278M PAN: BKDPN6078B

^Rajkot’ ^{May 111 2024} Amreli, May 11, 2024

1

Appointed w.e.f. 16th August, 2023 ^A Resigned w.e.f 15th May, 2023

1. The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. 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 of their shareholding.

*Note : Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosure are required to be made for enterprises which are covered under the Act. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

2. Additional regulatory information

3. Details of benami property(ies) held

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

4. Security of current assets against borrowings

The Company is having borrowings from banks or financial institutions against which security of current assets is given. Quarterly returns and statements of current assets filed by the Company with banks and financial institutions are generally in agreement with the books of accounts.There are no material discrepancies found.

5. Details of wilful default

The Company has not been declared as a wilful defaulter by any bank or financial institution, in accordance with the guidance on wilful defaulters issued by Reserve Bank of India.

6. Relationship with struck-off companies

The Company does not have any transactions with struck-off companies.

7. Delay in registration/satisfaction of charges with Registrar of Companies

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

8. Compliance with number of layers of companies

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

Reason for change for more than 25%

1. Debt service coverage ratio

DSCR has decreased on account of decrease in loans payable in the current reporting period

2. Inventory turnover ratio

Inventory turnover ratio has decreased on account of increase in inventories held during the current reporting

3. Net capital turnover ratio

Net working capital ratio has decreased due to increase in net working capital during the current reporting

32.8 Undisclosed income

The Company does not have any such transactions which is not recorded in the books of account 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).

32.9 Details of crypto currency or virtual currency

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

(B) FAIR VALUE HEIRARCHY

Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm''s length transaction. The Company has made certain judgements and estimates in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company as classified the financial instruments into three levels prescribed under the accounting standard. An explanation of each level is as follows:

Level 1: Level 1 of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Level 2 heirarchy includes financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on the observable market data, the instrument is included in Level 3 heirarchy.

(C) VALUATION TECHNIQUES

Specific valuation techniques used to value financial instruments include

- the use of quoted market prices for mutual funds

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis or such other acceptable valuation methodology, wherever applicable

There are no items in the financial instruments, which required level 3 valuation.

Note: 35 Capital Management

The Company policy is to have robust financial base so as to maintain outsider''s confidence and to sustain future development of the business. Management monitors the return on capital, as well as level of dividends to equity shareholders.The company monitors capital using a ratio of "adjusted net debt" to "equity". For this purpose, adjusted net debt is defined as total liability, Comprising interest-bearing loans and borrowing, less cash and cash equivalents. Total Equity includes the share capital, other equity.

The Company''s business activities are exposed to a variety of financial risks, viz liquidity risk, market risk and credit risk. The Management of the Company has the overall responsibility for establishing and governing the Company''s risk policy framework. The risk management policies are formulated after the identification and analysis of the risks and suitable risk limits and controls are set which are monitored & reveiwed periodically. The changes in the market conditions and allied areas are accordingly reflected in the changes of the policy. The key risks and mitigating actions are placed before the Audit Committee of the Company who then evaluate and take the necessary corrective action. The sources of risk, which the Company is exposed to and how the Company manages these risks with their impact on the Financial Statements is given below:

[A] Credit risk

Credit risk is the risk of financial loss to the Company if the counterparty fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables). However, the credit risk on account of financing activities, i.e., balances with banks is very low, since the Company holds all the balances with approved bankers only.

Trade receivables

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the customers outstanding balances to which the Company grants credit terms in the normal course of business. Concentration of credit risk with respect to trade receivables are limited, as the Company''s customer base is large, reputed and having good credit credential as well as that they are long standing customers. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.

[B] Liquidity risk

Liquidity risk is the risk the Company faces in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, Management considers both normal and stressed conditions.

Maturities of financial liabilities

The below table analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are contractual undiscounted cash flows, balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

[C] Market risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• Currency risk; and

• Interest rate risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments.

(i) Foreign currency risk

The Company is subject to the risk that changes in foreign currency values impact the Company''s exports revenue and imports of raw material.

The risk exposure is with respect to various currencies viz. USD. The risk is measured through monitoring the net exposure to various foreign currencies and the same is minimized to the extent possible.

(a) Foreign currency risk exposure

The Company does not have foreign currency exposure at the end of the reporting period.

(b) Foreign currency sensitivity analysis

The sensitivity of profit and loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments. As the Company''s exposure to foreign currency is insignificant, the overall exposure of foreign currency risk is not significant to the operations of the Company.

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets /borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will flucutate because of fluctuations in the interest rates.

(a) Primary segment - Business Segment

The Company''s operations fall under two operating segment "Milk and Milk Products" & "Namkeen Products". However on the basis of management''s evaluation of the namkeen products segment, the segment does not meet quantitative thresholds criteria, hence, segment reporting is not applicable as per Indian Accounting Standard (Ind AS) - 108 - Segment Reporting.

Note: 39

1. Previous year''s figures have been regrouped whereever necessary.

2. The outstanding balance as on year end in respect of trade receivables, trade payables, loans and advances and other payables, and other receivables, if any, are subject to confirmation from respective parties and consequential reconciliation and/or adjustments arising there from, if any. Management of the Company, however, does not expect any material variation.

3. According to the opinion of the management of the Company, the value of realization of trade and other receivables and loans and advances given in the ordinary course of the business, if any, would not be less than the amount at which they are stated in the balance sheet.

1. CORPORATE INFORMATION:

The Company is engaged in the manufacture business of Ice cream and Namkeen products. The company has a manufacturing plant located in Amreli, Gujarat, India.

The Company has been converted into a public limited company, changed its name from Sheetal Cool Product Private Limited to Sheetal Cool Products Limited and obtained a fresh certificate of incorporation dated August 10, 2017.Pursuant to Initial Public Offering (IPO), 30,00,000 equity shares of Rs 10 each were allotted at a price of Rs 80 per equity share. Equity shares of the company got listed on Bombay Stock Exchange on 30th October, 2017.