* The Company has issued and allotted the 11,47,200 equity Shares to Promoter and Promoter Group of the Company on 02.11.2023 pursuant to Preferential Allotment.

III Rights, Preferences and Restrictions Attached to Shares:

The company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and shares in the company's residual assets. The equity shares are entitled to receive dividend as declared from time to time subject to payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on showoff hands) are in proportion to its share of the paid-up equity capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

* Nature of Security

A Primary Security & Collateral

- Secured by Charge on Plant & Machinery, stocks and book debts.

B Collateral Security

a Secured by Exclusive charge on Industrial Property situated at Block No.553, Rakanpur (Santej), Kalol, Gandhinagar, Gujarat. b Secured by Exclusive charge on Industrial Property situated at Block No.1674/P, Santej Khatraj Main Road, Santej, Kalol, Gandhinagar. c 15% Deposit under lien against Import/Buyer Facility: Import Documentary Credit facility- Import documentary credit Issuance of Rs.7,00,00,000 d 100% Deposit under lien against overdraft facility of Rs. 13,00,00,000

Common Collateral Security for all of the Credit Facilities Including Working Capital Facilities ** Entire Term Loans secured by personal guarantees of the following persons/parties for Rs. 30,00,00,000 each.

- Directors Rameshbhai Patel Ashaben Patel

***

Term Loan from HSBC of Rs. 5,55,94,447 to be repaid by 66 Months (Including 6 months moratorium) Instalment of Rs. 9,26,574.1 and Instalment to Commenc Term Loan from HSBC of Rs. 60,28,523 to be repaid by 66 Months (Including 6 months moratorium) Instalment of Rs. 1,00,475.37 and Instalment to Commence Term Loan from HSBC of Rs. 5,90,41,307 to be repaid by Quarterly Instalment of Rs. 59,04,130.73 and Instalment to Commence from 22/06/2023.

* Nature of Security

A Primary Security & Collateral

- Secured by Charge on Plant & Machinery, stocks and book debts.

B Collateral Security

a Secured by Exclusive charge on Industrial Property situated at Block No.553, Rakanpur (Santej), Kalol, Gandhinagar, Gujarat. b Secured by Exclusive charge on Industrial Property situated at Block No.1674/P, Santej Khatraj Main Road, Santej, Kalol, Gandhinagar. c 15% Deposit under lien against Import/Buyer Facility: Import Documentary Credit facility- Import documentary credit Issuance of Rs.7,00,00,000 d 100% Deposit under lien against overdraft facility of Rs. 13,00,00,000

Common Collateral Security for all of the Credit Facilities Including Working Capital Facilities ** Entire Term Loans secured by personal guarantees of the following persons/parties for Rs. 30,00,00,000 each.

- Directors Rameshbhai Patel Ashaben Patel

***

Term Loan from HSBC of Rs. 5,55,94,447 to be repaid by 66 Months (Including 6 months moratorium) Instalment of Rs. 9,26,574.1 and Instalment to Commenc Term Loan from HSBC of Rs. 60,28,523 to be repaid by 66 Months (Including 6 months moratorium) Instalment of Rs. 1,00,475.37 and Instalment to Commence Term Loan from HSBC of Rs. 5,90,41,307 to be repaid by Quarterly Instalment of Rs. 59,04,130.73 and Instalment to Commence from 22/06/2023.

c) Segment Reporting:

The Group's business segments are identified based on the geographic locations of its units and the internal business reporting system as per Ind AS-108-"Operating Segments", Business segments of the company are primarily categorized as: Rakanpur, Santej and Hajipur. Segment wise Revenue, Results, Assets and Liability are as follows:

d) Income tax demand

In the financial year 2021-22, Deep plast industries a partnership firm was merged with the company vide resolution dated 13th September, 2021 by members of the company with all assets, liability, expense and incomes with effect from "effective date". The merged partnership firm has income tax credit in the form of TDS, TCS, Advance Tax and self-assessment tax for the financial year 2021-22 which the company has claimed its return of income for Assessment year 2022-23. However, CPC, Income tax department Bengaluru while processing the same return has not allowed credit of such

taxes paid and hence raised demand of Rs.3,73,16,880/-. The Company has representation before the income tax department for wrongful non-allowance of tax credit and it is expected as once the department rectifies the mistake. It is expected that, there will be no income tax liability on account of this and hence there is no provision made for such income tax demand in the booked of accounts. And the Same has been disclosed in the contingent liability.

Note: The Company is subject to income tax in India on the basis of its standalone financial statements. The Company can claim tax exemptions/deductions under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable. For the year ended March 31, 2024, the Company has planned to opt out for the new tax regime under Section 115BAA of the Act, which provides a domestic company with an option to pay tax at a rate of 22% (effective rate of 25.168%). The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deduction or exemptions. Up to year ended March 31, 2023, applicable tax rate is 25% (effective rate of 29.12%).

f) Defined Contribution Plans:

Eligible employees of the Company are entitled to receive benefits in respect of provident fund, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions are made to the provident fund as set up by Government.

g) Defined Benefit Plans-Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for payment to vested employees at retirement, death while in employment or on termination of employment in accordance with the scheme of the company. Vesting occurs upon completion of five years of service. The company accounts for liability for gratuity benefits payable in the future based on an actuarial valuation. The position of Defined Benefit Plans in respect of Gratuity as per Ind AS-19 recognised in the Balance Sheet, Statement of Profit & Loss and Other Comprehensive Income is as under: (Rs. In Lacs)

h) Financial Instruments and Related Disclosures: (Refer to Note No. 35,36 & 37)

Financial Risk Management:

The company activities are exposed various financial risks: credit risk, liquidity risk, foreign exchange fluctuation risk, Interest rate risk and Market Risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

I. Credit Risk:

Trade Receivables:

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss to the Company. The maximum exposure to the credit risk as at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers from sale of goods. Trade receivables generally are impaired after three years when recoverability is

considered doubtful based on general trend. The Company considers that trade receivables stated in the financial statements are not impaired and past due for each reporting dates under review are of good credit quality subject to outcome of the litigations where the company has initiated legal proceedings for recovery.

Other Financial Assets:

Credit risk relating to cash and cash equivalents is considered negligible since the counterparties are banks which are majorly owned by Government of India and have oversight of Reserve Bank of India. The Company considers the credit quality of term deposits with banks to be good and the company reviews these banking relationships on an ongoing basis.

The Company considers all other financial assets as at the financial statement dates to be of good credit quality.

II. Liquidity Risk:

The company's principal sources of liquidity are from Short Term Bank Borrowings, Cash and Cash Equivalents and Cash generated from operations.

The Short- term liquidity requirements consist mainly of Trade Payables, Expense Payables, Employee Dues, Servicing of Interest on Short -Term and Long -Term Borrowings and payment of instalments of term loans and vehicle loans and other payments arising during the normal course of business.

III. Foreign Exchange Rate Risk:

The Company undertakes transactions denominated in foreign currency mainly for purchase of raw materials and sale of goods which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency are also subject to reinstatement risks. Hedging is regularly carried out to mitigate the risks of exchange rate fluctuations to the extent considered feasible.

IV. Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

- Interest rate sensitivity:

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows: (Rs. In Lacs)

V. Market Risk:

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair values or future cash flows to the Company. The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.

i) Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize return to stakeholders through the optimization of the debt and equity balance.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

k) In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realization in the ordinary course of business equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, claims receivable against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated in the financial statements at the value which is most probably expected to be realized.

l) The company has obtained balance confirmation from some of the parties for Unsecured Loans, Sundry Creditors, Sundry Debtors and parties to whom loans/advance have been granted. All other balances of debtors and creditors, loans and advances and unsecured loans are subject to confirmation and subsequent reconciliation, if any.

n) Utilization of Borrowed Funds and Share Premium:

(a) During the year, 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, any security or the like on behalf of the Ultimate Beneficiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), 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 in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, any security or the like on behalf of the Ultimate Beneficiaries.

o) Relationship with Struck off Companies:

The company did not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

p) GST balances are subject to GST audit.

q) The Financial Statements were authorised for issue by the Board of Directors on 30^th May, 2024.

r) The previous year's figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.

The Financial Statements have been presented in Indian Rupee (?) in Lakhs rounded off to two decimal points as per amendment to Schedule III to the Companies Act, 2013.

The figures wherever shown in bracket represent deductions.