The shareholders of the Company have through Postal Ballot on 23rd May, 2022 approved the sub-division of face value of the Equity Shares of the Company from Rs. 10/- (Rupees Ten only) to Rs. 2/- (Rupee Two only), Accordingly, the holder(s) of the Equity Shares of the Company have received “5" Equity Shares of face value of Rs. 2/- each in lieu of "1" Equity Share of face value of Rs. 10/- each and accordingly the number of equity shares in the paid up equity capital of the Company has been changed from the 17^th June, 2022 onwards.

Terms of Rights, preferences and restriction attached to shares

The Company has only one class of equity shares having a par value of Rs. 2 (31st March 2022: Rs. 10) per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors is subject to the approval of shareholders except in case of interim dividend. In event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount in proportion of their shareholding.

The above loans are secured by way of:

i) First pari-passu charge including hypothecation of company's entire current assets both present and future along with Standard chartered bank in consortium.

ii) Further secured by way of personal guarantee of managing director, four other directors & two relatives of directors of the company along with a corporate guarantee of another companies under the same management.

iii) Collaterally secured by way of first pari-passu charge with Standard chartered bank under consortium :-

a) On entire fixed assets of the company, including factory land & building but excluding leasehold one commercial flat at Bigjos Tower, wazirpur, Delhi.

b) On a commercial property belonging to relatives of directors/group company.

c) Lien on fixed deposit of Rs. 5 crore.

iv) The working capital limits are valid for twelve months and are renewable on year to year basis

Note :33 Disclosure for Employee Benefits:

The company has a defined benefit gratuity plan as employee long term benefits. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

38 Credit facilities:

i) The company has borrowings from bank on the basis of security of current assets.

ii) There is no material discrepencies in quarterly returns or statements of current assets filed by the company during the year with bank and books of account, except the following:

39 Fair value measurements:

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial assets, financial liability and equity instrument are disclosed in Note 1(Viii) to the financial statements.

41 Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Ind AS-108 as specified in the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 is not given, as there is only one segment of the company.

42 Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office Premises. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs. 9.78 lacs (P.Y. Rs.6.24 lacs) for the lease which commenced on or after April 01,2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of five/ Six years with a lock in period of two years from the date of conmencement.

43 Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2023 for Rs. 2475.35 lacs (P.Y. Rs. 2011.39 lacs) covered by financial hedge.

44 Contribution towards Corporate Social Responsibility

As per section 135 of the Companies Act 2013, a company, meeting the applicability threshold , needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities as specified in schedule VII of the act. The areas for CSR activities are food for everyone and Child Literacy with Mid-Day Meals, Udaan - An initiative by Be Kind Towards Women Empowerment, Distribution of Books and career counseling to female beneficiaries (Women empowerment), school and hospitals projects.

A CSR committee has been formed by the company as per the act. As informed by the chairman of the CSR committee, during the year the immediate preceding financial year the company's profit is more than Rs. 5 Crore hence CSR activities during the financial year 2022-23 as per Section 135 of the companies act, 2013 is applicable.

45 Financial risk management

In the course of its business, the company is exposed primarily to fluctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which not only covers the foreign exchange risks but also other risk associated with financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company's business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in adance.

(A) Credit risk

The company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Maximum exposure to credit risk of the company has been listed below:

i) Trade receivables

Customer credit risk managed by the company is through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and generally carrying upto 21 days credit terms. The company has a detailed review machanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, trade receivables are backed by security deposits.

(B) Liquidity risk

The company's current assets aggregate Rs. 18,310.25 lacs (2022- Rs. 21,314.28 lacs) including inventories, current investments, cash and cash equivalents and other bank balances of Rs. 14,106.43 lacs (2022- Rs. 18,561.40 lacs) against aggregate current liability of Rs. 10,013.05 lacs (2022 Rs. 13,529.16 lacs). The balance of other non-curret liabilities are Rs. 679.28 lacs (2022- Rs. 606.16 lacs) on the reporting date.

Further, while the company's total equity stands at Rs. 12,580.03 lacs (2022- Rs. 12,319.34 lacs), it has non-current borrowings of Rs. Nil ( 2022- Rs. Nil). In such circumstances, liquidity risk or the risk company may not settle or meet its obligations as they become due does not exist.

(C) Foreign currency risk

The company deals with foreign currency trade payables and is therefore exposed to foreign exchange risk associated with exchange rate movement.

The company is exposed to foreign exchange risk through its purchases from overseas suppliers in foreign currencies.

Foreign currency risk exposure

The company's exposure to foreign currency risk at the end of the reporting period expressed in INR (Foreign currency amount multiplied by closing rate) are as follows:

Company manage risk on account of foreign currency fluctuations through limited hedging of specific transactions with its Bankers. Company's risk management strategy is to identify risks they are exposed to, evaluate and measure those risks, decide on managing those risks, regular monitoring and reporting to management. The objective of company's risk management policy is to minimize risk arising from adverse currency movements by managing the uncertainty and volatility of foreign exchange fluctuations by hedging the risk to achieve greater predictability and stability. Without venturing into the speculative aspects of dealing in currency derivatives, company's aim to cover

foreseeable fluctuations with limited hedge cover so that moderate arbitrage efficiency is achieved against the existing borrowing rates of interest. Company's risk management policies are approved by senior management and include implementing hedging strategies for foreign currency exposures, specification of transaction limits; identification of the personnel involved in executing, monitoring and controlling such transactions.

(D) Commodity Price Risk

The main raw material i.e. crude edible oil, which company procures is global commodity and their prices are to a great extent linked to the movement in global prices directly or indirectly.

The pricing policy of the Company final product is structured in such a way that any change in price of raw materials is passed on to the customers in the final product however, with a time lag which mitigates the raw materials price risk. 46 Disclosure required under Section 186(4) of the Companies Act, 2013

I). Details of Investment made are given in Note - 5 of Financial Statements.

ii) . Details of loans given are given in Note - 6 of Financial Statements.

iii) . Detail of Guarantee provided by the Company are as under:

47 Other statutory information

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

(ii) The Company does not have any transactions with companies struck off.

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

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

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

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

48 Previous year's figures have been regrouped/reclassified, wherever considered necessary, to conform to current year's classification.