Capital Work in Progres whose costs has exceeded compared to its original budget : None (As at March 31,2022 : None)

Project in progress for more than one year includes overdue projects amounting to ' 62.22 lacs pending for installation at different production facilities due to delay in technical support from Original Equipment Manufacturer. The same are expected to be installed in F.Y.2023-24.

1. The credit period ranges from 0 days to 180 days.

2. Before accepting any new customer, the Company assesses the potential customer's credit quality and defines credit limits by customer. Limits attributed to customers are reviewed annually. There are no customers who represent more than 5% of the total balance of trade receivable except, as at March 31,2023 : ' 3,355.15 lacs (as at March 31,2022 : ' 2,866.74 lacs ).

3. I n determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

Nature and Purpose of Reserve

Capital Reserve : The company has created capital reserve out of investment utilization reserve written back and forfeited shares.

Securities Premium Reserve : The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

Revaluation Reserve : The company has created revaluation reserve out of revaluation of land carried out as at April 1,2016.

General Reserve : The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit and loss.

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.

A Term Loans from Indusind Bank ' 1,166.89 Lacs (As at March 31, 2022'2,573.84 Lacs), Indusind Bank Long Term Loan ' 2,238.75 Lacs (As at March 31,2022 ' NIL), Guaranteed Emergency Credit Line of Indusind Bank ' 677.17 Lacs (As at March 31,2022'916.16 Lacs), Guaranteed Emergency Credit Line of State Bank of India for ' 573.97 Lacs (As at March 31,2022'782.77 Lacs) , Guaranteed Emergency Credit Line Extension of State Bank of India for ' 559.00 Lacs (As at March 31,2022'559.00 Lacs), Guaranteed Emergency Credit Line of Bank of Baroda for ' 303.75 Lacs (As at March 31,2022'405.00 Lacs) and Guaranteed Emergency Credit Line of IDBI Bank for ' 16.29 lacs (As at March 31,2022'22.04 Lacs) are secured by way of Mortgage on immovable properties and hypothecation on movable properties of the Company situated at the following places by way of 1st and 2nd charge on pari-passu basis :-

(i) Land and Building together with all plant and machineries situated on land bearing Final Plot No. 292-3-A of T. P. Scheme No. 14 of Mouje Dariapur- Kazipur of city taluka of Ahmedabad. (Ice-cream Plant) (1st charge to term lenders and 2nd charge to GECL lenders)

(ii) Land and Building together with all plant and machineries situated at Village Dharampur, forming part of New Survey Nos. 3645 i.e. Old Survey Nos. 970/1 (Survey No. 970 (Paiki)) Mouje Dharampur of Dharampur Taluka, Dist. Valsad (Canning Unit) (1st charge to term lenders and 2nd charge to GECL lenders)

(iii) Land and Building together with all plant and machineries situated at New Survey No.1663 i.e. Amalgamated Survey No.637/13/1 (Old Survey No. 637/14, 637/16, 637/13/2, 637/15, 643/2, 643/1,637/13/1) situated Village: Pundhra, Tal.: Kalol, Dist.: Gandhinagar (Ice-cream Plant) (1st charge to term lenders and 2nd charge to GECL lenders)

(iv) Basement and 3rd Floor, Vadilal House, Navrangpura, Ahmedabad (Office Complex) (1st charge to term lenders and 2nd charge to GECL lenders)

(v) Land and Building together with all plant and machineries being Unit - I, situated at Plot No. D-24 & F-12 Parsakhera Industrial Estate, Bareilly, U.P. (Leased property) (Ice-cream Plant) (1st charge to term lenders and 2nd charge to GECL lenders)

(vi) Land and Building together with all plant and machineries situated at Unit - II, being Plot No. D-23 and D-22, F-11/14/15 at Parsakhera Industrial Estate, Bareilly, U.P. (Leased property) (Ice-cream Plant) (1st charge to term lenders and 2nd charge to GECL lenders)

(vii) Land and Building together with all plant and machineries situated at New Survey Nos. 3642, 3643, 3644 and 3646 i.e. Old Survey Nos. 962/1,966, 969 and 970/2 at Mouje Dharampur, Dist.: Valsad (New land). (1st charge to term lenders and 2nd charge to GECL lenders)

(viii) Land and Building together with all plant and machineries situated at New Survey No. 3647 i.e. Old Survey No. 970 (Paiki) Mouje Dharampur, Dist.: Valsad (IQF unit) (2nd charge on term lenders and GECL lenders)

(ix) Ground and 2nd Floor, Vadilal House, Navrangpura, Ahmedabad (Office Complex) (2nd charge on term lenders and GECL lenders)

(x) 4 Flats No. 801 to 804, situated at Maruti Centre, Gurukul, Drive-in-Road, Ahmedabad (Residential Flats) (2nd charge on term lenders and GECL lenders)

B The above Term Loans and GECL loans are also secured by way of Hypothecation on entire current assets of the Company on 2nd pari-

passu charge basis.

C Vehicle loans are secured by hypothecation of vehicles with HDFC Bank Limited.

D The Term Loans are secured by Corporate Guarantee by Vadilal Cold Storage, Padm Complex Ltd. and Volute Constructions Ltd. The

Credit Facilities of IndusInd Bank are additionally secured by Corporate Guarantee of Vadilal Enterprises Ltd.

E Fixed Deposit lien with Indusind Bank ' 500.80 lacs

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

G Company has used the borrowings from banks and financial institutions for the purpose for which it was taken.

H Collateral / Additional Securities

Term loan and GECL loan from Consortium Banks, namely, BOB, SBI, IDBI and IndusInd bank are also secured by way of Mortgage on

immovable properties of :-

(i) Padm Complex Ltd. & Volute Constructions Ltd. by way of 2nd charge on pari-passu basis (Ground Floor, Office No. 2B, "Mahalaya" Opp. President Hotel, Swastik Char Rasta, Ahmedabad. (Owned Property))

(ii) Vadilal Cold Storage by way of 2nd charge on pari-passu basis Gomtipur, Ahmedabad (Leased Property)

A Working Capital facility from Consortium Banks, namely, BOB, SBI, IDBI and IndusInd Bank aggregating to ' 64.25 crores are secured by way of Mortgage on immovable properties and hypothecation on movable properties of the Company situated at the following places by way of 1st and 2nd charge on pari-passu basis:-

(i) Land and Building together with all plant and machineries situated on land bearing Final Plot No. 292-3-A of T. P. Scheme No. 14 of Mouje Dariapur- Kazipur of city taluka of Ahmedabad. (Ice-cream Plant) (2nd charge to Working Capital lenders)

(ii) Land and Building together with all plant and machineries situated at Village Dharampur, forming part of New Survey Nos. 3645 i.e. Old Survey Nos. 970/1 (Survey No. 970 (Paiki)) Mouje Dharampur of Dharampur Taluka, Dist. Valsad (Canning Unit) (2nd charge to Working Capital lenders)

(iii) Land and Building together with all plant and machineries situated at New Survey No.1663 i.e. Amalgamated Survey No.637/13/1 (Old Survey No. 637/14, 637/16, 637/13/2, 637/15, 643/2, 643/1, 637/13/1) situated Village: Pundhra, Tal.: Kalol, Dist.: Gandhinagar (Ice-cream Plant) (2nd charge to Working Capital lenders)

(iv) Basement and 3rd Floor, Vadilal House, Navrangpura, Ahmedabad (Office Complex) (2nd charge to Working Capital lenders)

(v) Land and Building together with all plant and machineries being Unit - I, situated at Plot No. D-24 & F-12 Parsakhera Industrial Estate, Bareilly, U.P. (Leased Property) (Ice-cream Plant) (2nd charge to Working Capital lenders)

(vi) Land and Building together with all plant and machineries situated at Unit - II, being Plot No. D-23 and D-22, F-11/14/15 at Parsakhera Industrial Estate, Bareilly, U.P. (Leased Property) (Ice-cream Plant) (2nd charge to Working Capital lenders)

(vii) Land and Building together with all plant and machineries situated at New Survey Nos. 3642, 3643, 3644 and 3646 i.e. Old Survey Nos. 962/1, 966, 969 and 970/2 at Mouje Dharampur, Dist.: Valsad (New land). (2nd charge to Working Capital lenders)

(viii) Land and Building together with all plant and machineries situated at New Survey No. 3647 i.e. Old Survey No. 970 (Paiki) Mouje Dharampur, Dist.: Valsad (IQF unit) (1st charge to working capital lenders)

(ix) Ground and 2nd Floor, Vadilal House, Navrangpura, Ahmedabad (Office Complex) (1st charge to working capital lenders)

(x) 4 Flats No. 801 to 804, situated at Maruti Centre, Gurukul, Drive-in-Road, Ahmedabad (Residential Flats) (1st charge to working capital lenders)

B The above Working Capital facilities are also secured by way of Hypothecation on entire current assets of the Company

on 1st pari-passu charge basis.

C The above Working Capital facilities are also secured by Personal Guarantee of Mr. Rajesh R. Gandhi, Managing Director

and Mr. Devanshu L. Gandhi, Managing Director of the Company. The Working Capital facilities of the Consortium Bank are also secured by Corporate Guarantee by Vadilal Cold Storage, Padm Complex Ltd. and Volute Constructions Ltd.

D Cash Credit facility from Kalupur Commercial Co-operative Bank of ' 3,500.00 Lacs is secured by pledge stocks and Personal Guarantee of Mr. Rajesh R. Gandhi, Managing Director and Mr. Devanshu L. Gandhi, Managing Director of the Company.

E Secured Borrowing i.e. Working Capital facility & Term Loan Facility availed from Banks / FIs carries interest @ 9.35 % to 11.20 %.

F Secured Borrowing i.e. GECL facility availed from Banks carries interest @ 8.40 % to 9.25 %

G Inter corporate deposits are repayable between 90 days to 365 days and carry Interest @ 10.50 % to 14.50 %

H Fixed deposits are repayable for 12 months to 36 months and carry interest @ 8.00 % to 9.00 %.

I The company does not have any charges or satisfaction which is yet to be registered with ROC beyond statutory

period.

J Company has used the borrowings from banks and financial institutions for the purpose for which it was taken.

K Collateral / Additional Securities :-

Working Capital facility from Consortium Banks, namely, BOB, SBI, IDBI and IndusInd bank are also secured by way of Mortgage on immovable properties of: -

(i) Padm Complex Ltd. & Volute Constructions Ltd. by way of 1st charge on pari-passu basis (Ground Floor, Office No. 2B, "Mahalaya" Opp. President Hotel, Swastik Char Rasta, Ahmedabad. (Owned Property))

(ii) Vadilal Cold Storage by way of 1st charge on pari-passu basis Gomtipur, Ahmedabad (Leased Property)

‘Shareholders of the Company have through e-voting ended on January 14, 2023 approved resolution for purchase of "VADILAL" brand for consideration not exceeding ' 67,600 lacs plus taxes from Vadilal International Private Ltd., a promoter of the Company. However, thereafter no substantial progress has happened in the same and Company has yet to obtain valuation reports, finalise the purchase consideration and enter in to purchase agreement. Hence, same is not included in Capital Commitments as on March 31,2023.

NOTE - 41

In FY 2017-18, a petition was filed against the Company and some of its promoters, before the National Company Law Tribunal, Ahmedabad ("NCLT"), under Sections 241 and 242 of the Companies Act, 2013, pertaining to the prevention of oppression and mismanagement of the Company. The NCLT has fixed next hearing in the matter on June 08, 2023.

NOTE - 42 Segment Information :

The Company is primarily engaged in one business segment namely Food segment as determined by the Chief Operating Decision Maker in accordance with IND AS 108 - "Operating Segment"

NOTE - 44 FINANCIAL INSTRUMENTS

I Capital Management

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

The capital structure of the Company consists of net debt (borrowings as detailed in notes 19 and 24 off set by cash and bank balances) and total equity of the Company.

III Financial risk management objective

The Company's financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other financial assets.

The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risks.

The company's senior management has the overall responsibility for establishing and governing the company's risk management framework.

A. Management of 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:

• Foreign Currency risk

• Equity price risk

• Interest rate risk

The above risks may affect the company's income and expenses, or the value of its financial instruments. The company's exposure to and management of these risks are explained below:

(i) Currency risk management

The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk :

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

The following table details, Company's sensitivity to a 1% increase and decrease in the rupee 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. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1% change in foreign currency rate.

(ii) Price Risk (Equity Price Risk)

The Company's exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity Analysis

The table below summarizes the impact of increases / decreases of the BSE index on the Company's equity and Gain / Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company's equity instruments moved in line with the index.

The above referred sensitivity pertains to quoted equity investments. Profit for the year would increase/decrease as a result of gains / losses on equity securities as at Fair Value through Profit and Loss (FVTPL).

(iii) Interest rate risk

I nterest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest rate risk, treasury or management performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

Interest rate swap contracts

Under interest rate swap contracts, the Company agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed principal amounts. Such contracts enable the Company to mitigate the risk of changing interest rates on the cash flow exposures on the variable rate loan. The following tables detail the principal amounts and remaining terms of interest rate swap contracts outstanding at the end of the reporting period. Interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Company's cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the loan occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on debt affect profit or loss.

The line items in the balance sheet that include the above hedging instruments are other financial liabilities. Debit Balance in cash flow hedge reserve of ' 145.52 Lacs as at March 31,2023 (balance of ' NIL as at March 31,2022) on interest rate swap derivative contracts has been recognised in other comprehensive income.

A change of 100 basis points in interest rate with all other variables held constant would result in increase / (decrease) in equity by ' 39.23 Lacs (P.Y. : ' NIL) (net of tax)

B. Management of Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk, the company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Concentrations of Credit risk form part of Credit risk

Considering that the Company sells majority of its goods to Vadilal Enterprises Ltd. and Vadilal Industries (USA) Inc., the Company is significantly dependent on such customers. Out of total income, the Company earns 93.04 % revenue (previous year 90.00 %) from such customers, and with one of these customers, the Company has long term contracts. As at March 31, 2023, receivables from such customers constitute 89.42 % (previous year 84.01 %) of total trade receivables. A loss of these customers could adversely affect the operating result or cash flow of the Company.

C. Management of Liquidity Risk

Liquidity risk is the risk that the company will face in meeting its obligation 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 they are due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following table shows the maturity analysis of the company's financial liabilities based on the contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

1) Transaction of Sales / Purchases (where input tax credit is not available to the company) and outstanding of Trade Payables / Receivable are inclusive of Taxes.

2) Previous Year figures are shown in bracket.

3) The Company has entered into a "Trade Mark License Agreement with Vadilal International Private Limited ("VIPL") (which is the Proprietor and the beneficial owner of the Trade Mark "Vadilal") for the usage of the Trade Mark "Vadilal" The Company has also entered into an agreement with Vadilal Enterprises Limited, a related party, for sale of its products on a principal to principal basis. The Company has obtained a legal opinion, as per which, the sales / supplies of goods by the Company to VEL, do not fall with the scope of "Trade Mark License Agreement" between the Company and VIPL and accordingly, the Company is not contractually obliged to pay any royalty on sales made by it to VEL. Accordingly, the Company has made provision for royalty only on sales made to parties other than VEL which is consistent with the practice followed in the earlier years.

4) Pursuant to the agreement signed with Vadilal Enterprises Ltd. (VEL) and approved by the shareholders, the pricing of the products to be sold to VEL shall be determined by the Company.

During the financial year 2022-23, the Company has debited to VEL for ' 270.27 lacs in March'23 (During the previous year ' 1,372.15 lacs in March'22) on account of higher material and other costs.

5) Managing directors of the Company are appointed for 5 years w.e.f. March 25, 2020 and their remunerations was approved for 3 years w.e.f. March 24, 2020 in the Annual General Meeting (AGM) of the Company held on September 30, 2020. Provisions for their commission for financial year 2022-23 amounting to ' 860.00 lacs is made in the financial statements, is subject to approval of shareholders in the ensuing AGM.

I Post Employment Benefit Plans as per Indian Accounting Standard 19:

Defined Contribution Plan:

The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under the scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions specified under the law are paid to the government authorities (PF commissioner).

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note 36 ' 204.96 Lacs (Previous Year: ' 190.60 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity analysis, the present value of projected defined benefit obligation has been calculated using Projected Unit Credit Method at the end of the reporting period. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

g) The principal assumptions used for the purpose of actuarial valuation were as follows :

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet date, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

h) Investment details of plan assets:

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

II. Other Long Term Employee Benefits Compensated Absences

The liability towards compensated absences (leave encashment) for the year ended March 31,2023 based on actuarial valuation carried out by using Projected Unit Credit Method is ' 329.66 Lacs . (As at March 31,2022 : ' 255.41 Lacs)

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was ' 419.87 Lacs for the year ended March 31, 2023 and ' 282.69 Lacs for year ended March 31,2022.

NOTE - 50 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

a) CSR amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 is ' 14.95 Lacs for the year 202223. (P.Y.' 37.40 Lacs).

Note :

1) During the previous financial year of 2021-22, the business has been impacted during the financial year on account of second wave of COVID-19 and the Company has witnessed lower revenues in domestic ice-cream business in April and May 2021 being the peak period of the ice-cream business. Due to this unforeseen circumstances, operations of the company was impacted so financial ratios are not comparable for current and previous financial year.

2) Increase in Debt Service coverage ratio is due to increase in EBITDA due to increase in profitbility mainly attributable to growth in sales during the current financial year.

3) Increase in Return on Equity ratio is due to increase in Profit and total equity due to increase in profitbility mainly attributable to growth in sales during the current financial year.

4) Increase in Trade receivables turnover ratio is due to growth in turnover during the current financial year.

5) Increase in Trade payables turnover ratio is due to increase in Cost of goods sold attributable to growth in sales during the current financial year.

6) Decrease in Net Capital Turnover ratio is mainly due to increase in Inventories.

7) Increase in Net profit ratio is due to increase in Profit due to increase in profitbility mainly attributable to growth in sales during the current financial year.

8) Increase in Return on capital employed is due to increase in Profitability mainly attributable to growth in sales during the current financial year.

9) Decrease in Return on investment is due to variations in Market Price.

NOTE - 52 OTHER STATUTORY INFORMATION :

a) 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.

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

(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.

c) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall :

(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.

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

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

f) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

g) 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.

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

i) The company has not entered into any scheme of arrangement which has an accounting impact on current year or previous year.

j) Borrowing based on security of inventory and book debts :

The company has obtained secured short term loan from banks on basis of security of inventories and book debts (Refer Note 24) wherein the quarterly returns as filed with bank is in agreement with the books except below :

NOTE - 53

Shareholders of the Company have through e-voting ended on January 14, 2023 approved resolution for sale of certain non-core assets of the Company to entities of the members of Promoter and Promoter group of the Company. However, as complete plan to sell has not been initiated by the management and it is likely that changes of the plan may be made, the sell is considered not to be highly probable. Hence, these Property, Plant and Equipments having written down value of ' 5,709.17 lacs, Investment Property of ' 18.04 lacs and Non current investments of ' 161.46 lacs as at March 31,2023 are continued to be presented under Property, Plant and Equipment, Investment Property and Non current Investments respectively.

NOTE - 54

Based on the report received from the Independent Law Firm and Chartered Accountant Firm, the board of directors in its meeting held on June 28, 2021 on the recommendation of committee of independent directors have decided to close all matters involving allegations & cross allegations levelled by two promoter directors upon each other except the allegations relating to potential personal expenses claimed as official business expenditure amounting to ' 25.33 lacs (for financial year 2017-18 and financial year 2018-19), and ' 25.00 lacs (for financial year 2014-15 to financial year 2018-19) by two Promoter Directors respectively for which report / findings are yet to be received. The Board of Directors believe that it shall not have any material financial impact on the financial statements of the Company for year ended March 31,2023.

NOTE - 55

The Code on Social Security, 2020 ('Code') has been notified in the Official Gazette of India on September 29, 2020, which could impact the contributions of the Company towards certain employment benefits. The effective date from which changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period of notification of the relevant provisions.

NOTE - 56

Previous years' figures have been regrouped and rearranged wherever necessary to comply with requirement of Ind AS.