Notes to Accounts of BNR Udyog Ltd.

Mar 31, 2025

x. Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as
a finance cost.

xi. Retirement and other employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity fund
and compensated absences.

Defined contribution plans

Post-employment benefit plans under which an entity pays fixed contributions into a separate
entity (a fund) and the company does not have any legal or constructive obligation to pay
further contributions if the fund does not hold sufficient assets to pay all employee benefits
relating to employee service in the current and prior periods. i.e. risk is transferred to the
insurance company.

xii. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or convention in the market place
(regular way trades) are recognised on the trade date, i.e., the date that the company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

(i) Debt instruments at amortised cost

(ii) Debt instruments at fair value through other comprehensive income (FVTOCI)

(iii) Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL)

(iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ‘debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the company. After initial measurement, such financial assets
are subsequently measured at amortised cost using the effective interest rate (EIR) method.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading and contingent consideration recognised by an acquirer in a business
combination to which Ind AS103 applies are classified as at FVTPL. For all other equity
instruments, the company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The company makes such election on an instrument
by- instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the
amounts from OCI to P&L, even on sale of investment. However, the company may transfer the
cumulative gain or loss within equity.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Group''s consolidated balance
sheet) when:

(i) The rights to receive cash flows from the asset have expired, or

(ii) The company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through'' arrangement; and either

(a) the company has transferred substantially all the risks and rewards of the asset, or

(b) the company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability
and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the statement of profit or loss.

xiii. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash.

Net of outstanding bank overdrafts as they are considered an integral part of the Company''s
cash management.

xiv. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post
tax effect of extraordinary items, if any) by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number
of equity shares which could have been issued on the conversion of all dilutive potential
equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares
would decrease the net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning of the period, unless
they have been issued at a later date. The dilutive potential equity shares are adjusted for the
proceeds receivable had the shares been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential equity shares are determined
independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as
appropriate.

xv. Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are
reviewed for impairment. If any indication of impairment exists, the recoverable amount of
such assets is estimated and impairment is recognised, if the carrying amount of these
assets exceeds their recoverable amount. The recoverable amount is the greater of the net
selling price and their value in use. Value in use is arrived at by discounting the future cash
flows to their present value based on an appropriate discount factor. When there is indication
that an impairment loss recognised for an asset in earlier accounting periods no longer exists
or may have decreased, such reversal of impairment loss is recognised in the Statement of
Profit and Loss, except in case of revalued assets.

Note 2.13 : Other Disclosures

i) There are no proceedings initiated or are pending against the Company for holding any
benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules
made thereunder.

ii) The Company has not been declared as wilful defaulter by any bank or financial institution

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

iv) The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b)
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

v) The Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise)
subject to the matters discribed below that the Company shall: (a) directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

As per provisional attachment order No.6 of 2022 issued under section 5(I) of the Prevention
of Money Laundering Act, 2022 made by Enforcement Directorate on 8th March 2022
(ECIR/14/HYZO/2021), Enforcement Directorate has alleged that the investment in the
Company by Karvy Stock Broking Limited (KSBL), is out of the proceeds of crime. KSBL and
the Company have appealed to relevant authorities and the matter is pending for disposal.
Given the ongoing proceedings, we are unable to ascertain the financial impact, if any on
account of these proceedings, on the company''s financial statements at this stage.

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

vii) The title deeds of all the immovable properties, (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the
Company) disclosed in the financial statements included in property, plant and equipment
and capital work-in-progress are held in the name of the Company as at the balance sheet
date.

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

ix) The Company has not revalued its property, plant and equipment during the financial year
2024-25

x) No additional loans were taken in the current or previous financial year, and no charges or
satisfactions remain unregistered with the ROC beyond the statutory period.

xi) There is no non-compliance with the number of layers prescribed under section 2(87) of the
Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

xii) No dues from directors or officers are outstanding and included in trade receivables under
Note No. 5

xiii) The company uses an accounting software which have the feature of audit trail in accordance
with the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

xiv) Company has not created any provision for interest on overdue amounts payable to MSME''s
in compliance to notification dated 22.01.2019 issued by the Ministry of Corporate affairs
(MCA), and therefore the same was not included in closing balance of outstanding dues to
MSME''s as on 31st March, 2025

xv) Certain comparative figures for the previous year have been reclassified to confirm to the
current year''s presentation, in accordance with the requirements of Ind AS 1 - Presentation
of Financial Statements and in accordance with Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors, the financial statements have been retrospectively
restated. The nature, amount, and reason for such reclassifications.

A) During the financial year 2024-25, the Company has reassessed the classification of certain
equity investments previously presented under Non-Current Investments and measured at
Fair Value Through Other Comprehensive Income (FVTOCI). Based on the revised
assessment, it was determined that these investments are held for trading and, therefore,
should be classified as Current Investments and measured at Fair Value Through Profit or
Loss (FVTPL), in accordance with the principles of Ind AS 109 - Financial Instruments.

As a result, an amount of ?280.00 lakhs has been reclassified from Non-Current Assets to
Current Assets in the financial statements for the year ended 31 March 2025. This
reclassification is consistent with the requirements of Ind AS 1, which mandates the separate
presentation of items of dissimilar nature or function, and Ind AS 8, which requires changes in
classification to be accounted for retrospectively where relevant.

The impact of this reclassification on the current year''s financial statement presentation is as
follows:

Non-Current Assets as previously presented: ?563.78 lakhs
Less: Reclassified Non-Current Investments: ?280.00 lakhs
Revised Non-Current Assets: ?283.78 lakhs
Current Assets as previously presented: ?437.33 lakhs
Add: Reclassified Current Investments: ?280.00 lakhs
Revised Current Assets: ?717.33 lakhs

These investments were previously classified under the Fair Value Through Other
Comprehensive Income (FVOCI) category as per Ind AS 109 - Financial Instruments. Upon
reclassification, the cumulative gain/(loss) of Rs. (10.22) lakhs, previously recognized under
Other Comprehensive Income (OCI), has been transferred to the Statement of Profit and
Loss, in line with the derecognition and reclassification requirements of Ind AS 109.

B) During the year, the Company has reclassified specific items previously presented under
"Other Financial Liabilities" to "Other Current Liabilities", considering the nature of these
items and the classification principles under Ind AS.

In the previous year, "Other Financial Liabilities" included Statutory Dues payable amounting
to ?1.68 lakhs and Income Tax payable amounting to ?71.49 lakhs. These items have been
reclassified to "Other Current Liabilities" as they are statutory liabilities.

Accordingly, the balance of "Other Financial Liabilities" for the previous year has been
reduced from ?74.14 lakhs to ?0.98lakhs after reclassification.

These reclassifications have no impact on the profit, total assets, or equity of the Company
for the comparative period and are intended solely to align the presentation with the current
year''s classification for better comparability.

C) During the current financial year, certain Fixed Deposits (FDs) with original maturity of more
than 3 months but less than 12 months, previously classified under “Bank Balances other
than Cash and Cash Equivalents,” have been reclassified to “Current Investments.” This
reclassification has been carried out to align the presentation with the intended purpose and
nature of these deposits, i.e., being held primarily for investment purposes.

This change in classification does not impact the total assets or net profit of the entity for the
year. The comparative figures have been regrouped/reclassified wherever necessary to
conform to current year''s presentation.

Note. 23: Financial risk management:

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk
and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse
effects of market risk on its financial performance. The Company''s risk management assessment
and policies and processes are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor such risks and compliance with
the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company''s activities. The Board of Directors are
responsible for overseeing the Company''s risk assessment and management policies and
processes.

a.) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company''s credit risk arises from accounts
receivable balances. Accounts receivable balances outstanding as on reporting date amount to
16.54 lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit
rating system. Internal credit rating is performed for each class of financial instruments with
different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is
considered when the counterparty fails to make payments within the agreed time period as per
contract. Loss rates reflecting defaults are based on actual credit loss experience, past
experiences where it believes there is high probability of default and considering differences
between current and historical economic conditions. In general all the trade receivables greater
than 365 days are reviewed and provided for by analysing individual receivable.

b.) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due. Due to the nature of the business, the Company maintains flexibility in
funding by maintaining availability under committed facilities.Management monitors rolling
forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the
entity operates. In addition, the Company''s liquidity management policy involves projecting cash
flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.

Contractual maturities of financial liabilities

The table below analyses the Company''s financial liabilities into relevant maturity groupings
based on their contractual maturities for all non-derivative financial liabilities. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
equal their carrying amounts as the impact of discounting is not significant.

c. Market risk- foreign exchange

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 two types of risk: interest rate risk and
currency risk. Financial instruments affected by market risk include borrowings, deposits, trade
receivables and other financial instruments. The sensitivity analyses in the following sections
relate to the position as at 31st March 2025 and 31st March 2024. The analyses exclude the
impact of movements in market variables on the carrying values of gratuity and other post
retirement obligations, provisions and non-financial assets and liabilities.

e. Price Risk

The Company is exposed to fluctuations in share price arising on purchase/ sale of shares. The
Company has a risk management framework aimed at prudently managing the risk arising from
the volatility in commodity prices. The Company''s commodity risk is managed centrally through
well-established trading operations and control processes.

Capital Management

The Company''s objective for capital management is to maximise shareholder value, 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 maintain an optimal capital structure to
reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.

For and on behalf of the Board of

For Laxminiwas & Co. BNR Udyog Limited

Chartered Accountants CIN: L67120TG1994PLC018841

Firm Registration No. 011168S Sd/_- Sd/-

J. Vikram Dev Rao Kamal Narayan Rathi

Sd/- Chairman Managing Director

Neelesh Jain DIN:00173556 DIN: 00011549

Partner ''

Membership No.: 208324 Sd/- Sd/-

Sandeep Rathi Sonal Agarwal

Place : Hyderabad Executive Director/CFO Company Secretary

Date : 28-05-2025 DIN: 05261139 M.No: 29790

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Mar 31, 2024

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31.03.2024 the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31.03.2023: I NR Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

2.6. There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2024. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.

2.7. Balances shown under Trade Receivables are subject to confirmation/ reconciliation.

2.8. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

The Compnay contributes applicable rates of salary of all eligible employees towards ProvidentFund and Employees State Insurace managed by the Central Government.

Defined Benefit Plan

The employees gratuity fund scheme managed by LIC Group Gratuity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

Note 2.10: Financial instruments i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows :

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Note:The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the reporting date has been made in the financial statements based on information received and available with the Company. Further, in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (""the MSMED Act"") is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

Note. 24: Financial risk management:

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors are responsible for overseeing the Company''s risk assessment and management policies and processes.

a.) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company''s credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to 43.69 Lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience, past experiences where it believes there is high probability of default and considering differences between current and historical economic conditions. In general all the trade receivables greater than 365 days are reviewed and provided for by analysing individual receivable.

b.) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans."

Contractual maturities of financial liabilities

The tables below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.

c. Market risk- foreign exchange

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 two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, trade receivables and other financial instruments. The sensitivity analyses in the following sections relate to the position as at 31 March 2024 and 31 March 2023. The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations, provisions, and non-financial assets and liabilities.

d. Interest rate risk

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2024, the Company is not exposed to any risk pertaining to the changes in market interest rates.

e. Price Risk

The Company is exposed to fluctuations in share price arising on purchase/ sale of shares.The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices. The Company''s commodity risk is managed centrally through well-established trading operations and control processes.

Note no 25: Capital Management

"The Company''s objective for capital management is to maximise shareholder value, 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 maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt."

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Mar 31, 2023

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31.03.2022 the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31.03.2021:1 NR Nil). This assessment is undertaken each financial year through examining the financial position ofthe related party and the market in which the related party operates.

2.6. There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2023. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.

2.7. Balances shown underTrade Receivables are subject to confirmation/ reconciliation.

2.8. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

The Compnay contributes applicable rates of salary of all eligible employees towards ProvidentFund and Employees State Insurace managed by the Central Government.

Defined Benefit Plan

The employees gratuity fund scheme managed by LIC Group Gratuity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

Note 2.10: Financial instruments i) Fairvalues hierarchy

Financial assets and financial liabilities measured atfair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Note:The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the reporting date has been made in the financial statements based on information received and available with the Company. Further, in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (""the MSMEDAct"") is not expected to be material. The Company has not received any claim for interest from any supplier underthe said Act.

Note. 24: Financial risk management:

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors are responsible for overseeing the Company''s risk assessment and management policies and processes.

a.) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company’s credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to 45.55 Lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience, past experiences where it believes there is high probability of default and considering differences between current and historical economic conditions. In general all the trade receivables greater than 365 days are reviewed and provided for by analysing individual receivable.

b.) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans."

Contractual maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.

c. Market risk- foreign exchange

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 two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, trade receivables and other financial instruments. The sensitivity analyses in the following sections relate to the position as at 31 March 2023 and 31 March 2022. The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations, provisions, and non-financial assets and liabilities.

d. Interest rate risk

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2023, the Company is not exposed to any risk pertaining to the changes in market interest rates.

e. Price Risk

The Company is exposed to fluctuations in share price arising on purchase/ sale of shares.The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices. The Company''s commodity risk is managed centrally through well-established trading operations and control processes.

Note no 25: Capital Management

"The Company''s objective for capital management is to maximise shareholder value, 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 maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt."

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Mar 31, 2015

1. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18

A) List of related parties

I) Parties where control exist - Nil

II) Other parties with whom Company entered into transactions during the year - Nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Mr. Kamal Narayan Rathi - Managing Director

Mr. Sandeep Rathi - Executive Director

Enterprises having common Personnel NIL

Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Narayan Rathi & W/o. Shri Sandeep Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2014-2015 2013-2014

a) Counter Guarantee against Bank Rs.16,75,000 Rs.50,19,387 Gaurantee

3. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are standing for more than 45 days as at 31 st March 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Balances shown under Trade Receivable are subject to confirmation/reconciliation

5. Pursuant to enactment of Companies Act,2013, the company has applied the estimate useful life as specified in Schedule II Accordingly the unamortised carrying value is being depreciated / ammortised over the revised / remaining useful life. The written down value of Fixed Asset whose lives has expired as at 01.04.2014 has been adjusted,in opening balance of Profit & Loss Account amounting to Rs.27.21 Lakhs.

6. Figures of the previous years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

7. DEFINED BENEFIT PLAN

The Employee''s Gratutity Fund Scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence

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Mar 31, 2014

1. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

2. Parties where control exist - Nil

3 Other parties with whom Company entered into transactions during the year - Nil

4 Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri Kamal Narayan Rathi - Managing Director Shri Sandeep Rathi - Executive Director

Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Narayan Rathi & W/o. Shri Sandeep Rathi

5. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are standing for more than 45 days as at 31 st March 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Balances shown under Trade Receivable are subject to confirmation/reconciliation

7. Figures of the previous years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

8. EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15AS(15) issued by the Institute of Chartered Accountants of India with effect from 01.04.2007

9. DEFINED BENEFIT PLAN

The Employee's Gratutity Fund Scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2013

I. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman (upto 10-1-2013)

Shri Kamal Rathi - Managing Director Shri Sandeep Rathi - Executive Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Ltd.. BNR Capital Services Private Ltd. and BN Rathi Comtrade Pvt. Ltd, Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi & W/o. Shri Sandeep Rathi

vi. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are standing for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

v. Balances shown under Trade receivable are subject to Confirmation/ reconciliation

vi. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee''s gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2012

Note: Out of the said amount NIL amount pertains to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the company on records.

i. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Limited BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri Kamal Rathi

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi

ii. CONTINGENT LIABILITIES (Amount in Rs.) Particulars 2011-2012 2010-2011

a) Counter Guarantee against Bank Guarantee Rs. 1,75,000 Rs. 1,75,000

iii. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are standing for more than 45 days as at 31st March 2012. This information as required to be disclosed under the Micro, small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

iv. Balances shown under Sundry Debtors are subject to Confirmation/ reconciliation

v. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

vi. EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15AS(15) issued by the Institute of Chartered Accountants of India with effect from 01.04.2007

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee's gratuity fund scheme managed by LIC Group Gratuity is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2011

DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N. Rathi - Chairman

Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N. Rathi Securities Limited

BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri Kamal Rathi

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2010-2011 2009-2010

a) Counter Guarantee against Bank Gaurantee Rs. 1,75,000 Rs. 1,75,000

3. EMPLOYEE BENEFITS

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee's gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Project Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

4. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st march 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

5. Balances shown under Sundry Debtors are subject to Confirmation / reconciliation.

6. Figures of the Previous Years have been re-grouped re- arranged, wherever considered necessary and rounded off to nearest rupee.

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Mar 31, 2010

DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Limited BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri.K.N.Rathi

Smt. Mayura Rathi - Dauqhter-in-law of Shri.K.N.Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2009-2010 2008-2009

a) Counter Guarantee against Bank Gaurantee Rs. 1,75,000 Rs. 8,87,800

b) Claims of Income-Tax for the Asst. Years 2004-2005, Nil Rs. 50,162 and 2005-2006 for which petitions are pending with

IT Authorities (Company is hopeful of getting full relief, hence provision is not made.)

DEFINED BENEFIT PLAN

The employees gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Project Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

3. The company received a sum of Rs. 1,25,369/- as fourth and final instalment towards Capital Investments Subsidy for Medical Transcription from the Government of Andhra Pradesh Information Technology Department out of sanctioned Amount of Rs. 12,53,592/- and the same is reduced from the relevant assets of the Company.

4. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31 st march 2010. This information as required to be disclosed under the Micro, small and medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

5. Balances shown under Sundry Debtors are subject to Confirmation / reconciliation.

6. Figures of the Previous Years have been re-grouped re- arranged, wherever considered necessary and rounded off to nearest rupee.