Nature and purpose of Reserves General Reserve

The general reserve is created from time to time transfer of profits from retained eranings. General reserve is created by transfer from componant of equity to another and is not an item of other comprehnsive income, items included in general reserve will not be reclassified subsequently to statement of profit and loss.

Security Premium

Security Premium is created on receipts of premium on issue of equity shares .The reserve can be utilised in accordance with the provisions of the Companies Act,2013.

Retained Earnings

The same is created out of profit over the years and shall be utilised as per the provision of the ACT, 2013.

Nature of Security and terms of repayment for borrowings :

( A ) Loan from LIC Housing Limited of Rs. 10000 Lakhs (Rupees Ten Thousand Lakhs Only ) under Original Sanction Letter.

The Construction finance loan from LIC Housing Ltd. having outstaning Rs. NIL ( Prev. 2788.03 lakhs ) is secured by Equitable mortgage of Project land admeasuring 147.77 Katha and structur thereon in the project One Rajarhat situated at premises no. 30-1111 in street no. 1111(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P. Personal Guarantee of Mr. Manish Shahra .

As per Resolution Framework for COVID -19 related Stress issued by the Reserve Bank of India vide notification dated August 06, 2020 bearing reference no. Ref No. DOR.No.BP. BC/3/21.04.048/2020- 21 as amended and modified from time to time by Reserve Bank of India , the repayment schedule has been revised by LIC Housing Ltd. Original Term : Term loan repayable in 57 month (including moratorium period of 36 months from the date of first disbursement ) and Rate of Interest is 13% p.a. (Previous

Year 13% )

Revised Term : Term loan repayable in 6 monthly instalment of Rs. 400 Lakhs from July 2022 to Dec 2022 and 4 montly installment of Rs 450 lakhs from Jan 2023 to April 2023 , Last Instalment of Rs. 626 Lakhs on 1st May 2023 . However company has made prepayment of loan and balance as at the year end is NIL .

( B ) Loan from LIC Housing Limited of Rs. 1294 lakhs (Rupees Twelve Crore and Ninety Four Lakhs Only) under Emergency Credit Line Guarantee Scheme 2.0

The Emergency Credit Line Guarantee Scheme 2.0 having outstanding of Rs. 1060.59 lakhs (Prev. year 1277.82 lakhs) is secured by Second Charge of Project land and structure thereon in the project One Rajarhat situated at premises no. 30-1111 in street no. 1111(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P, Assignment/ Hypothecation of receivables from the project “One Rajarhat”.

Term loan repayable in fixed 5 years (First year principal moratorium and rest four year principal & interest repayment), 48 monthly instalment of Rs. 34.71 Lakhs (including interest ) and Rate of Interest is 13% p.a. (Prev. year 13%)

Working Capital Loans from Consortium Banks Rs. 1210.78 lakhs (Pre.Year Rs. 126.22 lakhs ) are secured by :

1. First charge on pari passu basis by way of hypothecation and/or pledge of the Company’s Current Assets, Consumable Stores & Spares, Bills Receivable, Book Debts and tangible movable properties related to non dairy business of Company.

2. Collateral Security by way of first charge on pari passu basis by way of Mortgage of Company’s Plots situated at Kolkata Leather Complex, Mauza-Gangapur, KITP, Dist: 24 Paraganas, (WB).

3. Collateral Security by first charge on pari passu basis by way of equitable mortgage of Residential Diverted Land of Survey No. 263/4, 264/4 & Survey No. 291 part & Survey No. 291 part in Village Nipaniya, tehsil & Dist. Indore (MP) held by Brightstar Housing Pvt. Ltd.

4. Collateral Security by first charge on pari passu basis by way of equitable mortgage of all that pieces and parcels of Land bearing Survey No. 361/5 and 361/4 and all that pieces and parcels of Land bearing Survey No. 361/2, 361/6, 361/7 & 361/8 ofVillage Khajrana, Tehsil & District, Indore (MP) held by Nischal Housing Pvt. Ltd.

5. Personal Guarantee of one directors ofthe Company.

6. Letter of credit with Punjab National Bank devolved during 16th June 2022 to 27th September 2022 amounting to Rs. 2583.29 lakhs out of that principal of Rs. 884.03 lakhs and interest Rs.181.96 lakhs outstanding as on 31st March 2023. Bank is charging interest @ 18 % P.A. on the overdue outstanding of Rs.1065.99 lakhs .

7. With effect from current financial year company has presented bill discounted with other banks under borrowing , which were included under note 18 trade payable in previous year . Accordingly pervious year figures regrouped and Rs 4542.64 lakhs present under borrowing .

Ther company has no amount payable as at the year end (prev.year Nil ) to Micro and Small Enterprises covered under MSMED Act, 2006 and no interest paid / payable , For which disclosure requirement under MS MED Act. 2006.

Note : Trade Payable Ageing schedule refer in note no. 48

NOTE-39 Pursuant to disclosure pertaining to section 186 (4) of Companies Act ,2013 the following are the details thereof :-

Investment made-

The same are classified respective heads .( Refer Note 03 )

NOTE-40 During the year under review the provision is applicable on the Company as per section 135 of the Companies Act, 2013 but the

company has incurred average net Losses calculated in pursuant to section 135 of the companies Act, 2013 read with section 198 and rules made there under and hence the requirement of compulsory CSR expenditure on CSR activities as per section 135 of the Companies Act, 2013 is not applicable.

NOTE-41 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not using any mitigating factor to cover the interest rate risk.

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract to mitigate the risk of changes in exchange rate on foreign currency exposure.

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.

Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Cash & Cash Equivalent

The Company holds cash & cash equivalent with credit worthy banks of Rs. 200.49 lakhs as at March 31,2023 (Rs. 236.67 lakhs as at march 31,2022 ) . The credit orthiness of such banks is evaluated by the management on ongoing basis & is considered to be good.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.

The Company has obtained fund and non-fund based working capital lines from various banks. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company's net liquidity position through rolling forecasts on the basis of expected cash flows.

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.

The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

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

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

NOTE-44

(A) Trade receivable ( Note No.8 ) includes Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) considered doubtful ofrecovery for which provision

is made to the extent of Rs. Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) ,in addition to the expected credit loss allowance made as per accounting policy . Company has also filed legal case agaist the party for recovary of claims .Company had filed 2 civil suits before the Hon'ble District court, Indore M.P.for recovary agaist M/s Clemfield Industries ltd. & M/s Middle East Industries FZE both located out of India towards non-receipt of consideration of exports made to these parties .

( B ) Further Advance to suppliers ( Note No. 12 ) includes Rs. 1525 lakhs (Prev.Year 1525 lakhs ) considered doubtful of recovery for which aggrergate provision Rs. 1525 lakhs (Prev.Year 1525 lakhs ) is made .

Note -

1. Current ratio increase during the year due to decrease in current assets and current liabilities .

2. Debt Equity ratio decreased due to Partial amount of LIC Term loans and PNB short term Loan paid during the year.

3. Return on Equity ratio decreased due turnover and profit after tax remaining decreased during the year.

4. Trade Receivable turnover ratio decreased due to decrease in Revenue from operations.

5. Trade Payable turnover ratio decreased due to decrease in adjusted expenses and trade payable.

6. Net Capital turnover ratio decreased due to decrease in Revenue from operations.

7. Inventory turnover ratio decreased due to decrease in Revenue.

NOTE-46 ADDITIONAL REGULATORY INFORMATION

I. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under

Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

v. The company has complied with investment in subsidiary for two layers of investment prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 .

vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall.

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(B) 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

(i) 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

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

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

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

ix. The Company has borrowings in excess of Rs. 5 crores from banks or financial institutions on the basis of security of current assets.Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.Except disclosed as under :

x. As informed and explained to us , the management has not revalued its property , plant and equipment (including right of use assets ) or intangible assets or both during the year.

xi. No charges or satisfaction are pending to be registered with ROC beyond the statutory period.

NOTE -49 -

Previous year's figures have been regrouped or rearranged whereever considered necessary to make them comparable with current year's figures.