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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Agarwal Industrial Corporation Ltd.

Mar 31, 2025

23. Provisions, Contingent Liabilities and Contingent
Assets:

A provision is recognised if, as a result of a
past event, the company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation.

Provisions for onerous contracts are recognized
when the expected benefits to be derived by
the Company from a contract are lower than
the unavoidable costs of meeting the future
obligations under the contract.

A disclosure for contingent liabilities is made
where there is a possible obligation or a present
obligation that may probably not require an
outflow of resources or an obligation for which
the future outcome cannot be ascertained with
reasonable certainty. When there is a possible
or a present obligation where the likelihood of
outflow of resources is remote, no provision or
disclosure is made.

Contingent assets are neither recognized nor
disclosed in financial statements.

(ii) Terms/rights attached to Equity Shares

The Company has only one class shares referred to as equity shares having a par value of Rs 10 per share which
rank pari-passu in all respects including voting rights and entitlement to dividend. Each holder of Equity Shares is
entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled
to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

The Board of Directors of Company, at its meeting held on 23rd May, 2025 have recommended payment of dividend
of Rs. 3.30 (Rupees three and thirty paise only) per equity share of the face value of Rs. 10 each for the financial
year ended 31st March, 2025. If approved, the total dividend for the financial year 2024-25 will be Rs. 3.30 (Rupees
three and thirty paise only) per equity share of the face value of Rs. 10 each.

Pursuant to the dividend for the financial year 2023-24 approved by the shareholders at the 30th Annual General
Meeting held on 13th September, 2024, the Company paid the equity dividend of 30% (Rs. 3.00 per equity share of
nominal face value of Rs. 10/- each fully paid up) aggregating to Rs. 4,48,73,367/- (gross) subject to deduction of
tax at source as per the applicable rate(s) to the eligible shareholders. The payment was made on 18th September,
2024.

Nature and purpose of reserves

(a) Securities Premium:

The amount received in excess of face value of the equity shares is recognised in Securities premium. The reserve
can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013.

(b) Retained earnings

Retained earnings or accumulated surplus represents total of all profits retained since Companyâs inception.
Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to
General reserve or any such other appropriations to specific reserves.

Other comprehensive income consist of FVOCI financial assets and financial liabilities and remeasurement of
defined benefit assets and liability.

(d) Share Forfeiture

The reserve represents the part amounts paid on shares which have been forfeited on account of calls remained
unpaid.

(e) Capital Reserve

The Capital Reserve is the amount received against share warrants convertible into equity shares which have
lapsed due to non-compliance and hence, forfeited. The amount paid on such forfieted warrants have been
transferred to Capital Reserve.

iv. Working capital facility from HDFC Bank Ltd is further secured by fixed deposit worth Rs. 500 lakhs held and pledge
with the bank as 10% cash margin towards the additional working capital facility of Rs 5,000 lakhs provided by the
bank.

v. Working capital facility from Axis Bank Ltd is further secured by fixed deposit worth Rs. 700 lakhs held and pledge
with the bank as 10% cash margin towards the working capital facility of Rs 7,000 lakhs provided by the bank.

vi. Working capital facility from Kotak Bank Ltd is further secured by fixed deposit worth Rs. 500 lakhs held and
pledge with the bank as 10% cash margin towards the working capital facility of Rs 4,950 lakhs provided by the
bank.

vii. Working capital facility from IDFC Bank Ltd is further secured by fixed deposit worth Rs. 250 lakhs held and pledge
with the bank as 10% cash margin towards the working capital facility of Rs 2,500 lakhs provided by the bank.

viii. Overdraft facility availed from banks are repayable on demand. Same is secured against the fixed deposits of Rs.
641.41 Lakhs held with respective banks.

ix. Reconciliation of quarterly returns submitted to the working capital lender being Kotak Mahindra Bank, HDFC
Bank, IDFC Bank, Axis Bank and Citi Bank from whom working capital facility and working capital term loan have
been availed based on security of current assets:

Note : 1 On account of inclusion of advance to suppliers in quarterly statements, valuation of inventory including custom
and other duties / taxes paid thereon and non-adjustments of exchange rate differences.

Note : 2 No material discrepancies.

Note : 3 Amount reported in quarterly statements pertains to trade payable in respect of goods and other trade payable
were not included therein.

Note : 4 On account of non-inclusion of stock in transit and corresponding trade payable in quarterly statement and
valuation of inventory

Note : 5 Amount of trade payable excessive reported in the statement submitted to bank.

Note : 6 Advances given and outstanding was adjusted while reporting the trade payable in the statement submitted
to bank.

40 Corporate Social Responsibility (CSR) expenditure

a) The CSR activities of the Company shall include, but not limited to any or all of the sectors/activities as may be
prescribed by Schedule VII of the Companies Act, 2013 amended from time to time.

b) During the year ended 31 March 2025, the Company has incurred an expenditure of Rs. 218.00 lakhs (31st March
2024 : Rs. 62.50 lakhs) towards CSR activities which includes contribution / donations made to the trusts which are
engaged in activities prescribed under section 135 of the Companies Act, 2013 read with Schedule VII to the said
Act.

d) Nature of CSR activities undertaken by the Company -

i) Eradicating hunger, poverty and malnutrition

ii) Promoting health care including preventive health care and sanitation

iii) Promoting education, including special education and employment enhancing vocation skills

41 Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely
due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances
are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not
materially different from their carrying amounts.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

Fair value estimation

For financial instruments measured at fair value in the Balance Sheet, a three level fair value hierarchy is used that reflects
the significance of inputs used in the measurements. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs
(Level 3 measurements).

The categories used are as follows:

â¢ Level 1: quoted prices for identical instruments

â¢ Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

â¢ Level 3: inputs which are not based on observable market data.

For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is
summarised below:

There were no significant changes in classification and no significant movements between the fair value hierarchy
classifications of financial assets and financial liabilities during the year.

42 Financial risk factors

The Companyâs principal financial liabilities comprise loans and borrowings, advances and trade and other payables.
The purpose of these financial liabilities is to finance the Companyâs operations and to provide to support its operations.
The Companyâs principal financial assets include loans, trade and other receivables and cash and cash equivalents that
derive directly from its operations.

The Companyâs activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews and
agrees policies for managing each of these risks, which are summarised as below.

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash
including availability of funding through an adequate amount of committed credit facilities to meet the obligations
as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its
short term and long term liabilities as and when due. Anticipated future cash flows are expected to be sufficient to
meet the liquidity requirements of the Company.

(i) Financing arrangements

The Company has access to the following undrawn borrowing facilities as at the end of the reporting period:

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment,
deposits, foreign currency receivables and payables. The Companyâs treasury team manages the Market risk, which
evaluates and exercises independent control over the entire process of market risk management.

(i) Foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company has foreign currency loan and trade payables and is
therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and
may continue to be volatile in the future. Hence the operating results and financials of the Company may be
impacted due to volatility of the rupee against foreign currencies.

(ii) Interest rate risk

Interest 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. According to the Company, interest rate risk exposure is only
for floating rate borrowings. The Company is not significantly exposed to the interest rate risk, since the
borrowings of the Company are on Fixed interest rate basis.

(iii) Commodity risk Commodity price risk arises due to fluctuation in prices of crude oil. Volatility in Crude Oil
prices, Currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply
scenario in the world market affect the effective price and availability. The Company manages this risk by
widening its source base, appropriate contracts and commitments and well planned procurement.

Credit risk is managed by the Company through credit approvals, establishing credit limits and continuously
monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of
business.

43 (a) Capital management

The Companyâs objectives when managing capital are to :

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of
dividends paid to shareholders etc. The Company''s policy is to maintain a stable and strong capital structure with a
focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development
and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its
capital structure.

44 Segment Reporting

The Company''s Board of Directors consisting of Managing Director together with the Chief Financial Officer has been
identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating Segments". The
CODM evaluates the Company''s performance and allocated the resources based on an analysis of various performance
indicators. The Company is principally engaged in the business activities of Ancillary Infra i.e. manufacturing and trading
of Bitumen and Allied Products, Logistics of Bitumen and Liquefied Petroleum Gas (LPG) and energy generation through
Wind Mills. The Company has accordingly identified these 3 activities as Operating segments in accordance with
requirements of Ind AS 108 on âOperating segmentsâ.

49 Recent accounting pronouncements

New Standards issued or amendments to the existing standard but not yet effective :

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.

During the year ended March 31, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to
Ind As 116 - Leases, relating to sale and lease back transactions, applicable from April 1, 2024. The Company has
assessed that there is no impact on its financial statements.â

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange
rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning
on or after April 1, 2025. The Company has assessed that there is no impact on its financial statements.

50 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE
COMPANIES ACT, 2013

i) Event after reporting date

There have been no events after the reporting date.

ii) Details of Benami Property Held

No proceedings have been initiated during the financial year or pending as at the end of the financial year
against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and rules made thereunder.

iii) Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender
in the current or preceeding financial year.

iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended 31st March
2025 and 31st March 2024.

v) Utilisation of borrowed funds and share premium

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 persons or entities, including foreign entities
(âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company
has also not received any fund from any parties (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of
the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

vi) Compliance with approved Scheme(s) of Arrangements

There is no any scheme of Arrangement or Amalgamation initiated or approved by the Board of Directors and
Shareholders of the Company during the year ended 31st March 2025 and 31st March 2024.

vii) Undisclosed income

There is no income surrendered or disclosed as income during the year in tax assessments under the Income
Tax Act,1961 (such as search or survey), that has not been recorded in the books of account.

viii) Title deeds of Immovable Properties not held in name of the Company

The title deeds of the immovable properties possess by the Company are held in the name of the Company
(other than properties where the Company is the lessee and the lease agreements are duly executed in favour
of the lessee).

ix) Details of Crypto Currency or Virtual Currency

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

x) Registration of charges or satisfaction with Registrar of Companies (ROC)

âAll charges or satisfaction are registered with ROC and the Company does not have any charges
or satisfaction of charges which is yet to be registered with Registrar of Companies within the
statutory period for the financial years ended 31st March 2025 and 31st March 2024 except as under:

a) Two charge registered in favor of HDFC Bank Ltd needs to be modified so as to align the same
with the present working capital facility and bank guarantee facility obtained from the Bank.

b) One charge registered in favor of HDFC Bank Ltd for Rs. 261.50 lakhs needs to be satisfied as the charge was
created for proposed borrowing for which, no disbursment was taken and loan is not availed by Company.â

xi) Relationship with Struck off Companies

The Company have not entered into any transaction during the current or previous financial year with the
companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956 and there is no outstanding receivable from / payable to such companies as at the end
of year.

52 The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities.
The Management does not expect any material difference affecting the current yearâs financial statements due to
the same.

53 The financial statements were approved for issue by the Board of Directors on 23rd May, 2025.

54 The figures of the previous yearâs have been regrouped or reclassified wherever necessary to make them
comparable.

As per our report of even date For and on behalf of Board of Directors of

For Singhal Sanklecha & Co LLP Agarwal Industrial Corporation Limited

Chartered Accountants CIN : L99999MH1995PLC084618

(Firm Registration No : 025768C / C400376)

CA Vipin Kumar Sanklecha Jaiprakash Agarwal Mahendra Agarwal

Partner Managing Director Director

Membership No. 101710 (DIN : 01379868) (DIN : 01366495)

Lalit Agarwal Vipin Agarwal

Place : Mumbai Whole Time Director Chief Financial Officer

Date : 23rd May 2025 (DIN : 01335107)

Mar 31, 2024

23. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized whentheexpectedbenefitstobederivedbytheCompany fromacontractarelowerthantheunavoidablecostsof meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognized nor disclosed in financial statements.

Conversion of Warrants -

On 9th June, 2022, the Company allotted 12,49,000 Equity Shares of face value of Rs.10 each fully paid up issued at a premium of Rs. 95.20 per equity share to the Promoters group upon exercise of option of conversion of 12,49,000 warrants. The Issue Price of the warrant was Rs. 105.20 per warrant of which 25% was paid on subscription on 9th April, 2021 and the balance 75% i.e. Rs. 78.90 per warrant being the warrant Exercise Price was paid by those Promoter allottees. The entire proceeds have been utilised for the objects of the Preferential Issue. Pursuant to allotment of the Equity Shares in the Preferential Issue, the paid-up share capital of the Company stood increased on 9th June, 2022 from Rs. 13,20,87,890 to Rs. 14,45,77,890 comprising of 1,44,57,789 equity shares of face value of Rs. 10 each and securities premium reserve by Rs. 11,89,04,800.

On 6th October, 2022, the Company allotted 5,00,000 Equity Shares of face value of Rs.10 each fully paid up issued at a premium of Rs. 95.20 per equity share to non- promoters upon exercise of option of conversion of 5,00,000 warrants. The Issue Price of the warrant was Rs. 105.20 per warrant of which 25% was paid on subscription on 9th April, 2021 and the balance 75% i.e. Rs. 78.90 per warrant being the warrant Exercise Price was paid by those non-promoter allottees. The entire proceeds have been utilised for the objects of the Preferential Issue. Pursuant to allotment of the Equity Shares in the Preferential Issue, the paid-up share capital of the Company stood increased on 6th October, 2022 from Rs. 14,45,77,890 to Rs. 14,95,77,890 comprising of 1,49,57,789 equity shares of face value of Rs. 10 each and securities premium reserve by Rs. 4,76,00,000.

(ii) Terms/rights attached to Equity Shares

The Company has only one class shares referred to as equity shares having a par value of Rs.10 per share which rank pari-passu in all respects including voting rights and entitlement to dividend. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors of Company, at its meeting held on 27th May, 2024 have recommended payment of dividend of Rs. 3.00 (Rupees three only) per equity share of the face value of Rs. 10 each for the financial year ended 31st March, 2024. If approved, the total dividend for the financial year 2023-24 will be Rs. 3.00 (Rupees three only) per equity share of the face value of Rs. 10 each.

Pursuant to the dividend for the financial year 2022-23 approved by the shareholders at the 29th Annual General Meeting held on 15th September, 2023, the Company paid the equity dividend of 25% (Rs. 2.50 per equity share of nominal face value of Rs. 10/- each fully paid up) aggregating to Rs. 3,73,94,473/- (gross) subject to deduction of tax at source as per the applicable rate(s) to the eligible shareholders. The payment was made on 21st September, 2023.

Nature and purpose of reserves

(a) Securities Premium:

The amount received in excess of face value of the equity shares is recognised in Securities premium. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings

Retained earnings or accumulated surplus represents total of all profits retained since Company''s inception. Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other appropriations to specific reserves.

Other comprehensive income consist of FVOCI financial assets and financial liabilities and remeasurement of defined benefit assets and liability.

(d) Share Forfeiture

The reserve represents the part amounts paid on shares which have been forfeited on account of calls remained unpaid.

(e) Capital Reserve

The Capital Reserve is the amount received against share warrants convertible into equity shares which have lapsed due to non-compliance and hence, forfeited. The amount paid on such forfieted warrants have been transferred to Capital Reserve.

ii. Working Capital Term Loan (WCTL) availed from banks by way of Guaranteed Emergency Credit Line (GECL) under ECLGS Scheme of National Credit Guarantee Trustee Company Limited (NCGTC) is secured against Hypothecation of existing Current Assets, Movable & Immovable fixed assets of the Company. The WCTL, after a moratorium period of 12 months, is repayable in 48 equated monthly installments, commencing from April 2022 and ending in March 2026. The WCTL carried interest @ of 8.75% to 9.95% p.a.

iii. Working Capital Finance availed from banks are repayable on demand and renewed every year. These loans are secured against Hypothecation of Stock, Book Debts, Current Assets, Movable & Immovable fixed assets of Company, Immovable property of its directors, Personal guarantee of some of the Directors and Factory Plot of land of Subsidiary, M/s Bituminex Cochin Private Limited.

iv. Working capital facility from HDFC Bank Ltd is further secured by fixed deposit worth Rs. 200 lakhs held and pledge with the bank as 10% cash margin towards the additional working capital facility of Rs 2,000 lakhs provided by the bank.

v. Working capital facility from Axis Bank Ltd is further secured by fixed deposit worth Rs. 500 lakhs held and pledge with the bank as 10% cash margin towards the working capital facility of Rs 5,000 lakhs provided by the bank.

vi. Overdraft facility availed from banks are repayable on demand. Same is secured against the fixed deposits of Rs. 591.82 Lakhs held with respective banks.

vii. Reconciliation of quarterly returns submitted to the working capital lender being Kotak Mahindra Bank, HDFC Bank, IDFC Bank, Axis Bank and Citi Bank from which working capital facility and working capital term loan have been availed based on security of current assets:

Note : 1 On account of inclusion of advance to suppliers in quarterly statements, valuation of inventory including custom and other duties / taxes paid thereon and non-adjustments of exchange rate differences.

Note : 2 No material discrepancies.

Note : 3 Amount reported in quarterly statements pertains to trade payable in respect of goods and other trade payable were not included therein.

Note : 4 On account of inclusion of taxes and advances receivable in quarterly statement, effect of expected credit loss provision, writing off of bad debts and regrouping of advance received.

Note : 5 On account of non-inclusion of stock in transit and corresponding trade payable in quarterly statement and valuation of inventory Note : 6 On account of regrouping of advance received and effect of expected credit loss provision.

Note : 7 On account of non-inclusion of trade payables in respect of goods which were in transit.

Note : 8 Amount of trade payable excessive reported in the statement submitted to bank.

Note : 9 Advances given and outstanding was adjusted while reporting the trade payable in the statement submitted to bank.

d) Nature of CSR activities undertaken by the Company -

i) Eradicating hunger, poverty and malnutrition

ii) Promoting health care including preventive health care and sanitation

iii) Promoting education, including special education and employment enhancing vocation skills

41 Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

42 Financial risk factors

The Company''s principal financial liabilities comprise loans and borrowings, advances and trade and other payables. The purpose of these financial liabilities is to finance the Company''s operations and to provide to support its operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company''s activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised as below.

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and long term liabilities as and when due. Anticipated future cash flows are expected to be sufficient to meet the liquidity requirements of the Company.

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment, deposits, foreign currency receivables and payables. The Company''s treasury team manages the Market risk, which evaluates and exercises independent control over the entire process of market risk management.

(i) Foreign currency risk

(ii) 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. According to the Company, interest rate risk exposure is only for floating rate borrowings. The Company is not significantly exposed to the interest rate risk, since the borrowings of the Company are on Fixed interest rate basis.

(iii) Commodity risk

Commodity price risk arises due to fluctuation in prices of crude oil. Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability. The Company manages this risk by widening its source base, appropriate contracts and commitments and well planned procurement.

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. The Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits with banks and other financial instruments. Credit risk is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course

rvf hi icin^cc

Trade and other receivables

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risks on an ongoing basis throughout each reporting period.

To assess whether there is a significant change increase in credit risk, the Company compares the risks of default occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition. It considers the reasonable and supportive forward 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.

44 Segment Reporting

The Company''s Board of Directors consisting of Managing Director together with the Chief Financial Officer has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating Segments". The CODM evaluates the Company''s performance and allocated the resources based on an analysis of various performance indicators. The Company is principally engaged in the business activities of Ancillary Infra i.e. manufacturing and trading of Bitumen and Allied Products, Logistics of Bitumen and Liquefied Petroleum Gas (LPG) and energy generation through Wind Mills. The Company has accordingly identified these 3 activities as Operating segments in accordance with requirements of Ind AS 108 on ''Operating segments''.

47 New Subsidiary - Incorporations and Acquistion of 100% stake

a. Formation of new Subsidiary "AICL Finance Private Limited"

During the previous financial year, the Company have incorporated the wholly owned subsidiary company in India, ""AICL Finance Private Limited"" with the objectives to carry on the business activities of non-banking financial companies.

The company is in the process of completing the required compliances of Reserve Bank of India (RBI) and of Ministry of Corporate Affiars (MCA) so as to get the Certificate of Registration under Reserve Bank of India Act, 1934 and to commence the business activity of Non Banking Financial Company.

b. Acquisition of 100% stake in Agarwal Translink Private Limited (''ATPL'')

During the financial year 2021-22, on 9th April, 2021, the Company has acquired 100% equity shares of Agarwal Translink Private Limited (ATPL) for a consideration of Rs. 1,249.82 lakhs by way of purchase of 11,08,980 fully paid-up equity shares from selling shareholders of ATPL in pursuance of Share Purchase Agreement dated 15th January, 2021. Pursuant to the Acquisition, ATPL has become wholly owned subsidiary of the Company with effective from 9th April 2021.

Agarwal Translink Private Limited is a private company which is principally engaged in the logistics business activities of Bitumen and Trading of Petroleum Products through its Petrol Pump. The purchase consideration of Rs. 1,249.82 lakhs have been paid by the Company by allotments of 11,88,042 fully paid-up Equity Shares of face value of Rs. 10 each at Rs. 105.20 per equity shares including a share premium of Rs. 95.20 per equity share aggregating to Rs. 1,249.82 lakhs for consideration other wise than in cash.

50 Recent accounting pronouncements

New Standards issued or amendments to the existing standard but not yet effective :

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

As on 31 March 2024, there is no new standard notified or amendment to any of the existing standards under Companies (Indian Accounting Standards) Rules, 2015.

51 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

i) Event after reporting date

There have been no events after the reporting date.

ii) Details of Benami Property Held

No proceedings have been initiated during the financial year or pending as at the end of the financial year against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

iii) Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the current or preceeding financial year.

iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended 31st March 2024 and 31st March 2023.

v) Utilisation of borrowed funds and share premium

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 persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) Compliance with approved Scheme(s) of Arrangements

There is no any scheme of Arrangement or Amalgamation initiated or approved by the Board of Directors and Shareholders of the Company during the year ended 31st March 2024 and 31st March 2023.

vii) Undisclosed income

There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act,1961 (such as search or survey), that has not been recorded in the books of account.

viii) Title deeds of Immovable Properties not held in name of the Company

The title deeds of the immovable properties possess by the Company are held in the name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee).

ix) Details of Crypto Currency or Virtual Currency

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

x) Registration of charges or satisfaction with Registrar of Companies (ROC)

All charges or satisfaction are registered with ROC and the Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies within the statutory period for the financial years ended 31st March 2024 and 31st March 2023..

However, two of the charge registered in favor of HDFC Bank Ltd needs to be modified so as to align the same with the present working capital facility and bank guarantee facility obtained from the Bank.

xi) Relationship with Struck off Companies

The Company have not entered into any transaction during the current or previous financial year with the companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 and there is no outstanding receivable from / payable to such companies as at the end of year.

53 The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities. The Management does not expect any material difference affecting the current year''s financial statements due to the same.

54 Thefi nancial statements were approved for issue by the Board of Directors on 27th May, 2024.

55 The figures of the previous year''s have been regrouped or reclassified wherever necessary to make them comparable.

As per our report of even date For and on behalf of Board of Directors of

For Ladha Singhal & Associates Agarwal Industrial Corporation Limited

Chartered Accountants CIN : L99999MH1995PLC084618

(Firm Registration No : 120241W)

Ajay Singhal Jaiprakash Agarwal Mahendra Agarwal

Partner Managing Director Director

Membership No. 104451 (DIN : 01379868) (DIN : 01366495)

Lalit Agarwal Vipin Agarwal Dipali Pitale

Pl_{ace :} M_umb_ai Whole Time Director Chief Financial Officer Company Secretary

Date : 27th May 2024 (DIN : 01335107)

Mar 31, 2023

21. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are neither recognized nor disclosed in financial statements.

Conversion of Warrants -

(ii) Terms/rights attached to Equity Shares

The Company has only one class shares referred to as equity shares having a par value of Rs 10 per share which rank pari-passu in all respects including voting rights and entitlement to dividend. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors of Company, at its meeting held on 23rd May, 2023 have recommended payment of dividend of Rs. 2.50 (Rupees two and fifty paise only) per equity share of the face value of Rs. 10 each for the financial year ended 31st March, 2023. If approved, the total dividend for the financial year 2022-23 will be Rs. 2.50 (Rupees two and fifty paise only) per equity share of the face value of Rs. 10 each.

Pursuant to the dividend for the financial year 2021-22 approved by the shareholders at the 28th Annual General Meeting held on 30th September, 2022, the Company paid the equity dividend of 20% (Rs. 2.00 per equity share of nominal face value of Rs. 10/- each fully paid up) aggregating to Rs. 2,89,15,578/- (gross) subject to deduction of tax at source as per the applicable rate(s) to the eligible shareholders. The payment was made on 4th October, 2022.

Nature and purpose of reserves

(a) Securities Premium:

The amount received in excess of face value of the equity shares is recognised in Securities premium. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings

(c) Other comprehensive income

Other comprehensive income consist of FVOCI financial assets and financial liabilities and remeasurement of defined benefit assets and liability.

(d) Share Forfeiture

The reserve represents the part amounts paid on shares which have been forfeited on account of calls remained unpaid.

(e) Share Warrants

Application money received for preferential allotments of warrants, convertible into equity shares at a price of Rs. 105.20 (including share premium of Rs. 95.20)

(f) Capital Reserve

The Capital Reserve is the amount received against share warrants convertible into equity shares which have lapsed due to non-compliance and hence, forfeited. The amount paid on such forfeited warrants have been transferred to Capital Reserve.

ii. Working Capital Term Loan (WCTL) availed from banks by way of Guaranteed Emergency Credit Line (GECL) under ECLGS Scheme of National Credit Guarantee Trustee Company Limited (NCGTC) is secured against Hypothecation of existing Current Assets, Movable & Immovable fixed assets of the Company. The WCTL, after a moratorium period of 12 months, is repayable in 48 equated monthly installments, commencing from the next month after completion of moratorium i.e. starting with April 2022 and ending in March 2026. The WCTL carried interest @ of 7.45% to 10% p.a.

iv. Overdraft facility availed from banks are repayable on demand. Same is secured against the fixed deposits of Rs. 567.27 Lakhs held with respective banks.

v. Reconciliation of quarterly returns submitted to the working capital lender being Kotak Mahindra Bank, HDFC Bank, IDFC Bank and Citi Bank from which working capital facility and working capital term loan have been availed based on security of current assets:

Note : 1 On account of inclusion of advance to suppliers in quarterly statements, valuation of inventory including custom and other duties / taxes paid thereon and non-adjustments of exchange rate differences.

Note : 2 No material discrepancies.

Note : 3 Amount reported in quarterly statements pertains to trade payable in respect of goods and other trade payable were not included therein.

Note : 4 On account of inclusion of taxes and advances receivable in quarterly statement, effect of expected credit loss provision, writing off of bad debts and regrouping of advance received.

Note : 5 On account of non-inclusion of stock in transit and corrosponding trade payable in quarterly statement and valuation of inventory

35 Leases

Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.

The Company has adopted Ind AS 116 "Leases"using modified retrospective approach. The Company''s lease asset classes primarily consist of leases for Land, buildings and Plant & Machinery. These leases were classified as "Operating Leases" under Ind AS 17. On transition to Ind AS 116 "Leases"", for these leases, lease liabilities were measured at the present value of remaining lease payments, discounted at the Company''s incremental borrowing rate as at 1st April, 2019. Right to Use if measured either at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued lease payments.

Due to transition, the nature of expenses in respect of operating leases has changed from "lease rent" to "depreciation cost" and ''''finance cost'''' for the right-of-use assets and for interest accrued on lease liability respectively."

The Company has used following practical expedient, when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17.

(1) The Company didn''t recognized Right to Use and Lease liabilities for lease for which the lease terms ends within 12 months on the date of initial transition and low value assets.

(2) The Company excluded initial direct cost from measurement of the Right to Use assets at the date of initial application.

(3) The Company uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

The weighted average lessee''s incremental borrowing rate applied to the lease liabilities is 9%.

The difference between the lease obligation under Ind AS 17 and the value of the lease liability is primarily on account of inclusion of extension and termination options reasonably certain to be exercised in measuring the lease liability in accordance with Ind AS 116 and discounting the lease liabilities to the present value under Ind AS 116.

d) Nature of CSR activities undertaken by the Company -

i) Eradicating hunger, poverty and malnutrition

ii) Promoting health care including preventive health care and sanitation

iii) Promoting education, including special education and employment enhancing vocation skills

41 Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

There were no significant changes in classification and no significant movements between the fair value hierarchy classifications of financial assets and financial liabilities during the year.

42 Financial risk factors

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and long term liabilities as and when due. Anticipated future cash flows are expected to be sufficient to meet the liquidity requirements of the Company.

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment, deposits, foreign currency receivables and payables. The Company''s treasury team manages the Market risk, which evaluates and exercises independent control over the entire process of market risk management.

(ii) 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. According to the Company, interest rate risk exposure is only for floating rate borrowings. The Company is not significantly exposed to the interest rate risk, since the borrowings of the Company are on Fixed interest rate basis.

(iii) Commodity risk

(c) Credit risk

Credit risk is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

44 Segment Reporting

The Company''s Board of Directors consisting of Managing Director together with the Chief Financial Officer has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating Segments". The CODM evaluates the Company''s performance and allocated the resources based on an analysis of various performance indicators . The Company is principally engaged in the business activities of Ancillary Infra i.e. manufacturing and trading of Bitumen and Allied Products, Logistics of Bitumen and Liquefied Petroleum Gas (LPG) and energy generation through Wind Mills. The Company has accordingly identified these 3 activities as Operating segments in accordance with requirements of Ind AS 108 on ''Operating segments''.

45 Related party disclosure under Ind AS 24

Name and description of related parties

(a) Key Managerial Personnel (KMP)

Mr. Jaiprakash Agarwal, Managing Director Mr. Ramchandra Agarwal, Whole Time Director Mr. Mahendra Agarwal, Director Mr. Lalit Agarwal, Whole Time Director Mr. Vipin Agarwal, Chief Financial Officer Ms. Dipali Pitale, Company Secretary

(b) Wholly Owned Subsidisry

Bituminex Cochin Private Limited (Indian Subsidiary) AICL Overseas FZ-LLC, UAE (Overseas Subsidiary) Agarwal Translink Private Limited (Indian Subsidiary) AICL Finance Private Limited (Indian Subsidiary)

(c) Relatives of KMP

Mr. Nilesh Agarwal Mr. Mukul Agarwal Mr. Virel Agarwal Jai Prakash Agarwal HUF Mr. Jugalkishore Agarwal Jugalkishore Agarwal HUF Mr. Kishan Agarwal Kishan Agarwal HUF Mr. Lakshya Agarwal Lalit Agarwal HUF Mahendra Agarwal HUF Mangilal Agarwal HUF Ms. Namrata Agarwal Nilesh Agarwal HUF Mr. Yash Agarwal Mrs. Padma Agarwal Mrs. Pooja V.Agarwal Mrs. Pooja N.Agarwal Ramchandra Agarwal HUF Mrs. Rekha Agarwal Mr. Shailesh Agarwal Mrs. Sudha Agarwal Mrs. Sushiladevi Agarwal Mrs. Uma Agarwal Mrs. Usha Agarwal

47 New Subsidiary - Incorporations and Acquisition of 100% stake

a. Formation of new Subsidiary "AICL Finance Private Limited"

During the current financial year, the Company have incorporated a new wholly owned subsidiary company in India with the objectives to carry on the business activities of non-banking financial companies.

The initial process of incorporations of company have been completed with the name of wholly owned subsidiary as "AICL Finance Private Limited."

The company is in the process of completing the other required compliances of Reserve Bank of India (RBI) and of Ministry of Corporate Affiars (MCA) so as to get the Certificate of Registration under RBI Act, 1934 and to get the certificate of commencement of business under the Companies Act.

b. Acquisition of 100% stake in Agarwal Translink Private Limited (''ATPL'')

During the previous financial year 2021-22, on 9th April, 2021, the Company has acquired 100% equity shares of Agarwal Translink Private Limited (ATPL) for a consideration of Rs. 1,249.82 lakhs by way of purchase of 11,08,980 fully paid-up equity shares from selling shareholders of ATPL in pursuance of Share Purchase Agreement dated 15th January, 2021. Pursuant to the Acquisition, ATPL has become wholly owned subsidiary of the Company with effective from 9th April 2021.

Agarwal Translink Private Limited is a private company which is principally engaged in the logistics business activities of Bitumen and Trading of Petroleum Products through its Petrol pump.

The purchase consideration of Rs. 1,249.82 lakhs have been paid by the Company by allotments of 11,88,042 fully paid-up Equity Shares of face value of Rs. 10 each at Rs. 105.20 per equity shares including a share premium of Rs. 95.20 per equity share aggregating to Rs. 1,249.82 lakhs for consideration other wise than in cash.

50 Recent accounting pronouncements

New Standards issued or amendments to the existing standard but not yet effective :

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies

(Indian Accounting Standards) Rules as issued from time to time.

On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below

(a) Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

(b) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

(c) Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement."

51 Event after reporting date

There have been no events after the reporting date.

52 Details of Benami Property Held

No proceedings have been initiated during the financial year or pending as at the end of the financial year against the

Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and

rules made thereunder.

53 Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the

current or preceeding financial year.

54 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended 31st March 2023 and 31st March 2022.

55 Utilisation of borrowed funds and share premium

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 persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

56 Compliance with approved Scheme(s) of Arrangements

There is no any scheme of Arrangement or Amalgamation initiated or approved by the Board of Directors and Shareholders of the Company during the year ended 31st March 2023 and 31st March 2022.

57 Undisclosed income

There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act,1961 (such as search or survey), that has not been recorded in the books of account.

58 Title deeds of Immovable Properties not held in name of the Company

The title deeds of the immovable properties possess by the Company are held in the name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee).

59 Details of Crypto Currency or Virtual Currency

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

60 Registration of charges or satisfaction with Registrar of Companies (ROC)

61 Relationship with Struck off Companies

The Company have not entered into any transaction during the current or previous financial year with the companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 and there is no outstanding receivable from / payable to such companies as at the end of year.

64 The financial statements were approved for issue by the Board of Directors on 23rd May, 2023.

65 The figures of the previous year''s have been regrouped or reclassified wherever necessary to make them comparable.

As per our report of even date For and on behalf of Board of Directors of

For Ladha Singhal & Associates Agarwal Industrial Corporation Limited

Chartered Accountants CIN : L99999MH1995PLC084618

(Firm Registration No : 120241W)

Ajay Singhal Jaiprakash Agarwal Mahendra Agarwal

Partner Managing Director Director

Membership No. 104451 (DIN : 01379868) (DIN : 01366495)

Lalit Agarwal Vipin Agarwal Dipali Pitale

Place : Mumbai Whole Time Director Chief Financial Officer Company Secretary

Date : 23^rd May 2023 (DIN : 01335107)

Mar 31, 2018

1 (A). CORPORATE INFORMATION:

The Company, Agarwal Industrial Corporation Ltd was originally incorporated with the name, Bombay Baroda Roadways (India) Limited in the year 1995 as a public limited company under the provisions of the Companies Act, 1956. Subsequently, in the year 2008, the name of company was changed from Bombay Baroda Roadways (India) Limited to Agarwal Industrial Corporation Ltd. The equity shares of the company are listed on the NSE and BSE. The Company is principally engaged in the business activities of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), Logistics of Bitumen and Liquefied Petroleum Gas (LPG) and energy generation through Wind Mills.

Notes:

1. Refer note no. 34 for disclosure on contractual commitments for the acquisition of property, plant and equipment.

2. The Company has availed the deemed cost exemption in relation to the property, plant and equipment on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the accumulated depreciation on April 1, 2016 under the previous GAAP.

(ii) Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note:

1. Above Loan consisting of Term Loan from Yes Bank Ltd and Vehicle Loan from Various Banks and Financial Institution.

2. Term Loan is securred against the Exclusive charge on the Land, Building and Plant & Machinery of the Storage Terminal Project at Dighi Port Ltd and is repayable in 60 monthly installments.

3. Vehicle finance from Banks & FIâs is securred against Hypothecation of specific vehicle financed and is repayable in equated monthly installment over the tenure of the loan.

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.

B. Assumptions

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

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 to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Note: - The Company''s pending litigations comprise of claims against the Company and proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

2. Commitments

The Company does not have any commitments (including capital commitments) as on the Balance sheet date. (As at March 31, 2017 and April 01, 2016 - Nil)

3. Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Fair value estimation

For financial instruments measured at fair value in the Balance Sheet, a three level fair value hierarchy is used that reflects the significance of inputs used in the measurements. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

- Level 1: quoted prices for identical instruments

- Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

- Level 3: inputs which are not based on observable market data.

There were no significant changes in classification and no significant movements between the fair value hierarchy classifications of financial assets and financial liabilities during the period.

4. Financial risk factors

The Companyâs principal financial liabilities comprise loans and borrowings, advances and trade and other payables. The purpose of these financial liabilities is to finance the Companyâs operations and to provide to support its operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and long term liabilities as and when due. Anticipated future cash flows are expected to be sufficient to meet the liquidity requirements of the Company.

(i) Financing arrangements

The Company has access to the following undrawn borrowing facilities as at the end of the reporting period:

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment, deposits, foreign currency receivables and payables. The Company''s treasury team manages the Market risk, which evaluates and exercises independent control over the entire process of market risk management.

(i) Foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade payables and is therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

(ii) Interest rate risk

Interest 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. According to the Company, interest rate risk exposure is only for floating rate borrowings. The Company is not significantly exposed to the interest rate risk, since the borrowings of the Company are on Fixed interest rate basis.

(iii) Commodity risk

Credit risk is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Trade and other receivables

(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 same counterparty.

5. (a) Financial risk factors

Capital risk management

The Company''s objectives when managing capital are to :

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of dividends paid to shareholders etc. The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

6. Segment Reporting

The Companyâs Board of Directors consisting of Managing Director together with the Chief Financial Officer has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 âOperating Segmentsâ. The CODM evaluates the Company''s performance and allocated the resources based on an analysis of various performance indicators . The Company is primarily engaged in the business of manufacturing of petrochemical prodcuts (Bitumen & Bituminous products), Logistic business -Bitumen and LPG and Sale of Power - Wind mill. The Company has accordingly identified these 3 activities as Operating segments in accordance with requirements of Ind AS 108 on ''Operating segments''.

Operating segments

(a) Petrochemical business - Bitumen products

(b) Transportation - Bitumen and LPG

7. First time adoption of Ind AS

The accounting policies set out in Note 1, have been applied in preparing the financial statements from the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 01, 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

A. Ind AS optional exemptions

(i) Deemed Cost

The Company on first time adoption of Ind AS, has elected to continue with the carrying value for all of its property, plant & equipment and other intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed costs as at the date of transition.

(ii) Investments in subsidiary

The Company has opted para D14 and D15 and accordingly considered the Previous GAAP carrying amount of Investments as deemed cost as at the transition date.

(iii) Designation of previously recognised financial instruments

Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.The company has opted to apply this exemption for its investment in equity Investments.

B. Ind AS mandatory exemptions

(i) Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

The Company made estimates for following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Impairment of financial assets based on expected credit loss model.

(ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

(iii) De-recognition of financial assets and financial liabilities

The Company has elected to apply derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

(i) Reconciliation of Balance sheet as at April 1, 2016 (Transition date)

(ii) A. Reconciliation of Balance sheet as at March 31, 2017

B. Reconciliation of total comprehensive income for the year ended March 31, 2017

(iii) Reconciliation of Equity as at April 1, 2016 and March 31, 2017

(iv) Impact on cash flow statement for the period ended March 31, 2017

The presentation requirements under previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP

(iv) Impact on cash flow statement for the period ended March 31, 2017

There were no differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP Notes to First-time adoption:

(i) Proposed Dividend

Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as subsequent events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

(ii) Remeasurement of post employment benefit obligations

Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in Other Comprehensive Income (OCI) instead of profit or loss. Under the previous GAAP, these re-measurements were forming part of the profit or loss for the year. As a result of this change there is no impact on the total equity as at March 31, 2017.

(iii) Fair valuation of financial assets - Interest free deposits:

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of lease term) are recorded at transaction price. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued the security deposits and the difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent.

(iv) Borrowing costs - Financial Liability

Under Previous GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to statement of profit or loss or capitalised. Under Ind AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged to Statement of Profit and Loss over the tenure of the borrowings using the effective interest rate method.

(v) Financial Assets - Investment in Mutual Funds

Under the previous GAAP, investments in Mutual funds were classified current investments and were carried at cost. Under Ind AS, these investments are required to be measured at fair value through profit & loss (FVTPL).

(vi) Expected credit loss allowance:

Under Indian GAAP, the company has created provision for impairment of receivables consists only in respect of specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on Expected Loss model (ECL).

(vii) Adjustments to revenue:

Under previous GAAP, the Company accounted revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, revenue is being recognised at fair value of consideration received or receivable, gross of excise duty. Excise duty is being charged under Other expenses. Any sales incentive, discounts or rebates in any form including cash discounts given to customer are being considered as reductions to selling price and revenue is presented on net basis.

(viii) Deferred taxes:

Under previous GAAP, deferred taxes were recognised based on profit and loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is being recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base. Also, deferred tax have been recognised on the adjustments made on transition to Ind AS. Deferred tax asset has been recognised to the extent Company has reasonable certainty over future taxable profits as against virtual certainity under the previous GAAP.

(ix) Other Comprehensive Income (OCI):

Under Ind AS, all items of income and expense recognised during the year should be included in profit or loss for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss are shown in the Statement of Profit and Loss as âother comprehensive income.

8. Recent accounting pronouncements

Ind AS 115 - Revenue from Contracts with Customers

Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (âamended rulesâ). As per the amended rules, Ind AS 115 âRevenue from contracts with customersâ supersedes Ind AS 11, âConstruction contractsâ and Ind AS 18, âRevenueâ and is applicable for all accounting periods commencing on or after 1 April 2018. Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognised when (or as) an entity transfer control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.The new revenue standard is applicable to the Company from 1 April 2018.

The management is yet to assess the impact of the aforesaid amendments on the Companyâs financial information.

Ind AS 21 - Foreign currency transactions and advance consideration:

Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

This amendment will not have any material impact on the financial statements of the Company.

9. The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities. The Management does not expect any material difference affecting the current yearâs financial statements due to the same.

10. Post the applicability of Goods and Service Tax (GST) with effect from 01st July 2017, revenue from operations are disclosed net of GST, whereas Excise duty formed part of other expenses in previous year. Accordingly, the revenue from operations and other expenses for the year are not comparable with previous year.

11. The financial statements were approved for issue by the Board of Directors on May 30, 2018.

12. The figures of the previous yearâs have been regrouped or reclassified wherever necessary to make them comparable.

Mar 31, 2015

1. Background:

Agarwal Industrial Corporation Ltd is a public company incorporated under the provisions of the Companies Act, 1956. The Company is principally engaged in the business activities of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), Logistics of Bitumen and LPG and energy generation through Wind Mills.

2. Basis Of Preparation:

The financial statements have been prepared in accordance with the Generally Accepted accounting Principles in India under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaning assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

4. CONTINGENT LIABILITIES & EVENT OCCURING AFTER THE BALANCE SHEET DATE: (Rs. in Lacs)

Particulars As on 31st As on 31st March, 2015 March, 2014

a. Disputed demand not provided for in respect of: -

i) Sales Tax 2.72 2.72

ii) Entry Tax 111.58 111.58

iii) Import Duty 32.00 25.00

b. To the best of knowledge of the management, there are no events occurring after the Balance sheet date that provide additional information materially affecting the determination of the amount relating to the conditions existing at the Balance Sheet date that requires adjustment to the Assets or Liabilities of the Company.

5. Related Party Disclosures

(i) Name of the related Parties and Description of relationship

Subsidiary Bituminex Cochin Pvt Ltd.

Key Management Personnel Mr. Jaiprakash Agarwal Mr. Lalit Agarwal Mr. Ramchandra Agarwal Mr. Rakesh Bhalla

Concerns in which Directors are interested ANZ Transporters Agarwal Gas Carriers Agarwal Translink P Ltd Agarwal Petrochem P Ltd

6. The balances of Unsecured Loans, Creditors, Debtors and Loans and Advances are subject to confirmation and reconciliation, if any.

7. The previous year's figures have been regrouped / reclassified, wherever requires to align the financial statement. Figures in brackets represent corresponding figures for the previous year.

Mar 31, 2014

A) Background:

Agarwal Industrial Corporation Ltd is a public company incorporated under the provisions of the Companies Act, 1956. The Company is principally engaged in the business activities of manufacturing and trading of Petrochemicals (Bitumen and Bituminous Products), Logistics of Bitumen and LPG and energy generation through Wind Mills.

b) Basis Of Preparation:

The financial statements have been prepared in accordance with the Generally Accepted accounting Principles in India under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. CONTINGENT LIABILITIES & EVENT OCCURING AFTER THE BALANCE SHEET DATE:

(Rs in Lacs)

Particulars As on 31st As on 31st March, 2014 March, 2013

a. Disputed demand not provided for in respect of:-

i) Sales Tax (Net of Part Payment) 1.90 Nil

ii) Entry Tax (Net of Part Payment) 78.10 Nil

b. To the best of knowledge of the management, there are no events occurring after the Balance sheet date that provide additional information materially affecting the determination of the amount relating to the conditions existing at the Balance Sheet date that requires adjustment to the Assets or Liabilities of the Company.

3. Related Party Disclosures

(i) Name of the related Parties and Description of relationship

Subsidiary Key Management Personnel :

Bituminex Cochin Pvt Ltd.

Mr. Jaiprakash Agarwal

Mr. Lalit Agarwal

Mr. Ramchandra Agarwal

Mr. Mahendra Agarwal

Relatives of Key Management Personnel :

Sudha Agarwal

Concerns in which Directors are interested :

ANZ Transporters

Agarwal Gas Carriers

Agarwal Translink P Ltd

Agarwal Petrochem P Ltd

4. Additional information of part II of schedule VI of the Companies Act, 1956 are not applicable to the company or information in this regards is Nil

5. The previous year''s figures have been regrouped / reclassified, wherever requires to align the financial statement. Figures in brackets represent corresponding figures for the previous year.

Mar 31, 2013

NOTE "1" BACKGROUND :

Agarwal Industrial Corporation Ltd (''The Company'') is public company under the provisions of the Companies Act, 1956.The Company is principally engaged in Logistics, Manufacturing of Bituminous Products, Import & Export of Bituminex and Bituminous products, Trading of Petroleum products and other similar activities.

NOTE "2"

BASIS OF PREPARATION :

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared under the historical cost conversion on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

Mar 31, 2012

NOTE "1"

BACKGROUND :

Agarwal Industrial Coporation Ltd ('The Compnay') is public company under the provisions of the Companies Act, 1956.The Company is principally engaged in Logistics, Manufacturing of Bituminous Products, Import & Export of Bituminex and Bituminous products, Trading of Petroleum products and other similar activities.

NOTE "2"

BASIS OF PREPARATION :

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in india (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevantprovisions of the Companies Act, 1956. The Financial statements have been prepared under the historical cost conversion on an accural basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

a). RELATED PARTIES DISCLOSURES:

I RELATED PARTIES

A Key Management Personnel

Mr.Jaiprakash Agarwal , Managing Director

B Relatives of the Key Management Personnel

Mr.Lalit Agarwal

Mr.Ramchandra Agarwal

Mr.Mahendra Agarwal

b) The Company has not appointed a Company Secretary as per provisions of section 383 A of the Companies Act, 1956.

c) (A) Previous year figures have been regrouped whenever necessary .

(b) Figures in bracket are of the previous year.

Mar 31, 2011

1 There is no contingent liabilities during this year as well as in the previous year.

2 The accounts of the sundry debtors, sundry creditors and certain Loan & Advances are subject to confirmation and reconciliation, if any. The difference as may notice on reconcilation will be duly accounted for on completion thereof. In the option of management , the ultimate difference will not be material .

3 Provision for gratuity has not been made in the books of accounts since none of the employees has completed the qualifying period of service.

4 In the opinion of the Board and to the best of their knowledge and belief, the value of realisation of current assets , loans and advances , in the ordinary course of business would not be less then the amount at which they are stated in the Balance-Sheet and provision for all known and determined liabilities is adequate and not in excess of amount reasonable required.

5 The Company has a Authorised Service Centre of Ashok Leyland at Asangaon, Dist. Thane which is a part of transportation business and it is included in the transportation business activity in the segment reporting

6 Segment Reporting

The Company's operations relate to the business segments namely transportation, service centre, Power Generation by Windmill and Manufacturing of Bitumens & Bituminous Products. These business segments represents primary basis of information set out in the financial statements. In accordance with the Accounting Standard 17 on Segment Reporting issued by the ICAI, the segment information for the year ended March 31,2011 is as follows:

Segment assets include all operating assets used by a segment and consist primarily of debtors,current assets and fixed assets net of provisions and allowances.Segment liabilities include all operating liabilities and consist principally of creditors and other payables.

Related parties relationships as stated in (A) to ( B) above are identified by the Company as required under Accounting Standard 18(AS-18) and realted upon by the Auditors

7 The Company has not appointed a Company Secretary as per provisions of section 383 A of the Companies Act, 1956.

8 Additional information pursuant to the provision of paragragh 3 , 4 C and 4 D of Part II of Schedule VI of the Companies Act, 1956 are not applicable to the company.

9 (A) Previous year figures have been regrouped whenever necessary .

(B) Figures in bracket are of the previous year .

Schedule A to O have been signed by the Board of Directors and Auditors and form an integral part of of Balance Sheet and Profit & Loss Account.

Mar 31, 2010

1 There is no contigent liabilities during this year as well as in the previous year.

2 The accounts of the sundry debtors, sundry creditors and certain Loan & Advances are subject to confirmation and reconciliation, if any. The difference as may notice on reconcilation will be duly accounted for on completion thereof. In the option of management , the ultimate difference will not be material .

3 Provision for gratuity has not been made in the books of accounts since none of the employees has completed the qualifying period of service.

4 In the opinion of the Board and to the best of their knowledge and belief, the value of realisation of current assets, loans and advances , in the ordinary course of businees would not be less then the amount at which they are stated in the Balance-Sheet and provision for all known and determined liabilities is adequate and not in excess of amount reasonable required.

5 The Company has a Authorised Service Centre of Ashok Leyland at Asangaon, Dist. Thane which is a part of transportation business and it is included in the transportation business activity in the segment reporting.

6 Segment Reporting

The Companys operations relate to the business segments namely transportation, service centre, Power Generation by Windmill and Manufacturing of Bitumens & Bituminous Products. These business segments represents primary basis of information set out in the financial statements. In accordance with the Accounting Standard 17 on Segment Reporting issued by the ICAI, the segment information for the year ended March 31,2010 is as follows:

Segment assets include all operating assets used by a segment and consist primarily of debtors,current assets and fixed assets net of provisions and allowances.Segment liabilities include all operating liabilities and consist principally of creditors and other payables.

7 RELATED PARTIES DISCLOSURES:

I RELATED PARTIES

A Key Management Personnel

Mr.Jaiprakash Agarwal , Managing Director

B Relatives of the Key Management Personnel

Mr.Lalit Agarwal Mr.Ramchandra Agarwal Mr.Mahendra Agarwal

Related parties relationships as stated in (A) to ( B) above are identified by the Company as required under Accounting Standard 18(AS-18) and realted upon by the Auditors

8 The Company has not appointed a Company Secretary as per provisions of section 383 A of the Companies Act, 1956.

9 Additional information pursuant to the provision of paragragh 3 , 4 C and 4 D of Part II of Schedule VI of the Companies Act, 1956 are not applicable to the company.

10 (A) Previous year figures have been regrouped whenever necessary .

(B) Figures in bracket are of the previous year .

Schedule A to N have been signed by the Board of Directors and Auditors and form an integral part of of Balance Sheet and Profit & Loss Account

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