Notes to Accounts of Chandra Prabhu International Ltd.

Mar 31, 2025

(j) Foreign Currency Transactions
Initial Recognition

Foreign Current Transactions are recorded in Indian Currency by applying the exchange rate between the Indian Currency
and Foreign Currency at the date of the transaction.

Conversion

Current assets and current liabilities being monetary items designated in foreign currencies are recognized at the rate
prevailing on the date of Balance Sheet.

Exchange Difference

Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized as income
or as on expense in the year in which they arise.

(k) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the
amount of the obligation can be made. Where the time value of money is material, provisions are stated at the present value
of the expenditure expected to settle the obligation.

All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. The expense relating
to provision is presented in the statement of profit and loss. Provisions are reviewed at each balance sheet date.

Contingent Liabilities

A contingent liability is a Possible obligation, whose existence will only be confirmed by the occurrence or non-occurrence
of one or more future uncertain events not wholly within the control of the company, or a present obligation that is not
recognized because it is probable that an outflow resource will be required to settle the obligation or it cannot be measured
with sufficient reliability. Contingent liabilities are disclosed on the basis of judgment of management.

Contingent Assets

Contingent Assets are not recognized or disclosed in the financial statements. However, when the realization of income is
virtually certain, then the related asset is not a contingent asset and is recognized.

(l) Employee Benefits Expenses

Expenses and liabilities in respect of employee benefit expenses are recorded as per Ind AS 19, Employee Benefits.

Short Term Benefits

Short term employee benefits are recognized as an expense in the statement of profit and loss of the year in which related
services are rendered by the employees.

Compensated Absences

The liability of leave encashment and other compensated absences is recognized on arithmetical basis at the end of the year
are charged to expense each year

Post Employment Benefits
Defined Contribution Plans

Obligations for contribution to defined contribution plans are expensed in the statement of profit and loss of the year in
which the related services are rendered by the employees.

The company makes payments to State Govt. Provident Fund Scheme and Employee State Insurance Scheme which are
defined contribution plans. The contribution paid / payable under the scheme is recognized in the statement of profit and
loss during the period in which the employee renders the related services. The company has no further obligations under
these schemes beyond its periodic contributions.

(m) Cash and Cash Equivalent

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash in hand, cash at
bank, highly liquid investments with original maturities of three months or less, which are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.

(n) Segment Reporting
Identification of Segments

The company''s decision maker viz Board of Directors examine the company''s performance relating to trading of items
such as coal and scrap iron & sponge iron as different segments.

Allocation of common cost

Common allocable costs are allocated on the basis of net fund employed in each segment.

Unallocated items

Company assets and liabilities, income and expenses which relate to the company as a whole and are not allocable to
segments are included under this head.

(o) Earnings Per Share

Basic Earnings per equity shares are calculated by dividing the net profit or loss before OCI for the period attributable to
equity shareholders by the weighted average number of equity share outstanding during the year. For calculating diluted
earnings per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted
average number of share outstanding during the period are adjusted for the effect of all diluted potential equity shares.

(p) Financial Instruments: -

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

Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of
the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade
receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to
the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. When the
financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and loss.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition
of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit and
loss.

When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from
equity to profit and loss. Equity instruments are subsequently measured at fair value. On initial recognition of an equity
investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the
investment''s fair value in OCI (designated as FVOCI — equity investment). This election is made on an investment by
investment basis. Fair value gains and losses recognized in OCI are not reclassified to profit and loss.

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition
of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit and
loss.

When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from
equity to profit and loss. Equity instruments are subsequently measured at fair value. On initial recognition of an equity
investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the
investment''s fair value in OCI (designated as FVOCI — equity investment). This election is made on an investment by
investment basis. Fair value gains and losses recognized in OCI are not reclassified to profit and loss.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

(v) Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period.
The Company recognizes a loss allowance for expected credit losses on financial asset. In case of trade receivables, the
Company follows the simplified approach permitted by Ind AS 109 — Financial Instruments for recognition of impairment
loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The
Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical
credit loss experience.

Derecognition
Financial Assets

Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the rights to receive the or in which the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred Company neither transfers nor retains substantially all of
the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The company derecognizes financial liability when its contractual obligations are discharged or cancelled or expire.

Reclassification of Financial Assets and Financial Liabilities

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which
are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets.
Changes to the business model are expected to be infrequent. The Company''s senior management determines change in
the business model as a result of external or internal changes which are significant to the Company''s operations. Such
changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases
to perform an activity that is significant to its operations. If the company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period
following the change in business model. The company does not restate any previously recognized gains, losses (including
impairment gains or losses) or interest.

Event after reporting date

Where the events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events adjusted within the financial statements. Otherwise, events after the Balance
Sheet date of material size or nature are only disclosed.

Functional and Presentation Currency

The Financial Statements have been prepared in Indian Rupees (INR), which is also the Company''s functional currency. All
financial information presented in INR has been rounded off to nearest lacs as per requirements of Schedule III, unless
otherwise stated.

New and amended standards adopted by the Company

The Ministry of Corporate Affairs vide notification dated 9th September 2024 and 28th September 2024 notified the
Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards(see
below), and are effective for annual reporting periods beginning on or after 1 April 2024:

Insurance contracts - Ind AS 117; and

Lease Liability in Sale and Leaseback—Amendments to Ind AS 116

These amendments did not have any material impact on the amounts recognized in prior periods and are not expected to
significantly affect the current or future periods.

Note:

1. Investment in Land is at Cost.

2. No Depreciation is charged on Land.

3. No depreciation is charged on building during the year as it is reclassified to Investment property on 31/03/2025.

4. Real Estate Project has been deferred being capital intensive which would affect the core business activity and has
been reclassified from Inventories for capital appreciation.

5. Investment property has been pledged for the borrowing taken by the Company. Refer Note 39.

6. Fair Value

Estimation of fair Value

The best evidence of fair value is current prices in an active market for similar properties. Company''s investment properties
are available at a location where active market is available for similar kind of properties. Hence, fair value is acertained on
the basis of market rates prevailing for similar properties in those locations. The valuation has not been done by a registered
valuer during the year as the company doesnot forsee any change in fair Value as Investment has been held for a short
duration and taken at amortised cost.

i. Trade receivables are measured at amortised cost

ii. No trade or other receivables are due from directors or other officers of the company either severally or jointly with any other
persons.

iii Refer Note 36 on Credit Risk of Trade Receivables which explains how the company manages credit quality of Trade Receivables

Note : 9.1

Movement of Allowance for expected credit Loss is as follows:- Amt in Lakhs (^)

b) Terms /Rights attached to the equity shares

The company has only one class of equity shares having a Par Value of '' 2/- each.

Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian Rupees.

c) Details of shareholders holding more than 5% equity shares in the company

d) The company has not issued any shares or bonus shares not any shares has been bought
back in the last 5 years.

e) Shareholding of Promoters

Shares held by Promoters at March 31, 2025 Amt in Lakhs (? )

Salaries is inclusive of Leave Encashment of Rs 1.21 lakhs (PY: Rs 1.32 lakhs)

Empoyee Benefits Expenses

Expenses and liabilities in respect of employee benefit expenses are recorded as per Ind AS 19, Employee Benefits.

Short Term Benefits

Short term employee benefits are recognized as an expense in the statement of profit and loss of the year in which related
services are rendered by the employees.

Compensated Absences

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the
year are charged to expense each year

Post Employment Benefits
Defined Contribution Plans

Obligations for contribution to defined contribution plans are expensed in the statement of profit and loss of the year in
which the related services are rendered by the employees.

The company makes payments to State Govt. Provident Fund Scheme and Employee State Insurance Scheme which are
defined contribution plans. The contribution paid / payable under the scheme is recognized in the statement of profit and
loss during the period in which the employee renders the related services. The company has no further obligations under
these schemes beyond its periodic contributions.

Defined Benefit Plans:-

Gratuity (funded): - The cost is determined using the projected unit credit method with the actuarial valuation being
carried at each balance sheet date by independent actuary. The present value of the defined benefit obligation
denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the
end of the reporting period on government bonds that have terms approximating to the terms of related obligation.

The net interest cost is calculated by applying the discount rate to the balance sheet of the defined benefit obligation. This
cost is calculated in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains or losses arising from experience adjustment, demographic adjustments and changes in actuarial
assumptions are recognised in the period, in which they occur, directly in Other Comprehensive Income. They are
included in retained earnings in the Statement of Changes in Equity and in the Balance Sheet Changes in the present value
of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Profit or
Loss as past service cost.

Other Employee Benefits

Accidental & medical Insurance Scheme, defined contribution plan is taken from Iffco-Tokio General Insurance Co Ltd..

Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity plan") covering eligible employees in accordance
with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment of an amount based on the respective employees''s salary
ast drawn and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit
Credit Method) at the end of each year. Actuarial losses/gains are recognized in the Statment of Profit and Loss in the year
in which they arise.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.

Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy
are not applicable.

8. Risk Exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are
detailed below:

Investment risk:

If investment return of assets can be lower than the discount rate assumed.

Salary Escalation Risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants
in future, based on past experience. Deviation in the rate of increase of salary in future for plan participants from the rate
of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Miscellaneous Expenses:-

1. Does not include any item of expenditure with a value of more than 1% of Revenue from operations.

2. Includes expenses towards Advertisement, Printing & Stationary, Internal Audit Fees, Testing Charges, Electricity
& water, Postage & courier and Others etc.

Note : 30
Earning per share

Basic EPS amounts are calculated by dividing the profit for the year attributble to equity holders by the weighted average
number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributble to equity holders by the weighted average
number of equity shares outstanding during the year.

1NUIC . JO

Related Party Disclosures

The Management has identified the following Companies and individuals as related parties of the Company for the year
ended 31st March, 2025 for the purposes of reporting as per Ind AS 24 — “Related Party Disclosures”:-

(A) Name of related parties and description of relationship:

1. Subsidiaries Nil

2. Fellow Subsidiaries Nil

3. Associates Nil

4. Key Managerial Personnel & their Relatives
Mr. Gajraj Jain - CMD

Mrs. Hemlata Jain - Woman Director

Mr Akash Jain - CEO

Mr. Atul Jain- COO

Mr. Amar Singh - CFO

Ms. Komal - Company Secretary

Mr. Jitendra Kumar Mishra - Independent Director

Mr. Tilak Raj Goyal - Independent Director

Mr Punit Jain - Independent Director

Note : 36

Impairment of Trade Receivables

The Company recognises provision on Trade Receivables based on historical default rates to determine impairment loss
on the portfolio of trade receivables. Under Ind AS, impairment of Trade Receivables shall be recognised based on
Expected Credit Loss.

Trade Receivables ( Considered Good)

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer, Credit risk is
managed through credit approvals, establishing credit limits and continususly monitoring the credit worthiness of
customers to which the company granst credit terms in the normal course of business.

The Company uses an allowance matrix to measure the expected credit losses of trade receivables . The following table
provides information about the exposure to credit risk and loss allowance (including expected credit loss provision) for
trade receivables:

Note : 37

Financial risk management

The Company’s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial
assets include trade and other receivables, cash and short-term deposits that derive directly from its operations.

The company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Board of Directors has established the Audit Committee, which is responsible for
developing and monitoring the Company''s risk management policies. The Committees reports regularly to the Board of
Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s Audit Committee
oversees how management monitors compliance with the Company''s risk management policies and procedures, and
reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit
Committee is assisted in its oversight role by an internal audit team. Internal audit team undertakes both regular and adhoc
reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

Credit Risk
Liquidity Risk
Market Risk

Credit risk :

Credit risk is the risk of fiancial loss to the company if a customer or counter party to a financial instrument fails to meet its
contranctual obligations, and arises principally from the Company''s receivables from customers and investment securities.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the company grants credit terms in the normal course of business. The company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
trade and other receivables.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective
carrying amount.

Liquidity Risk :

Liquidty risk is the risk that the Company will encounter if there is difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing
liquifity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unaceptable losses or risking damage to Company''s reputation.

Capital Risk Management :

The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is managed to
maintain an investment grade credit rating, to provide ongoing returns to shareholders and to service debt obligations,
whilst maintaining maximum operational flexibility.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by Equity. Net debt is calculated as total borrowings (including ''current and non-current term
loans'' as shown in the balance sheet) less cash and cash equivalents and bank balances.

Market Risk :

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will
affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Foreign Currency Risk :

The primay market risk to the Company''s is foreign exchange risk. The Company is exposed to foreign exchange risk
through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Comapy
pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in
exchange rate of foreign currency exposure.

The following tables displays foreign currency risk from financial instruments as at March 31,2025 and March 31, 2024:

The fair value of 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.

A. The fair value of cash and cash equivalents, bank balances other than Cash and cash equivalents, trade receivables, loans,
current financial assets, trade payables and current financial liabilities approximate their carrying amount, largely due to the
short-term nature of these instruments. The change in the Fair Value of Non-Current Financial Asset and Liability is
insignificant and hence carrying value and fair value is taken same.

B. Long-term borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest
rates, specific country risk factors, credit risk and other risk characteristics. Fair value of borrowings approximates their
carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note : 40

Corporate Social Responsibilty

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2%
of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The company was not required to spend any amount during the year, still the company has spent an amount of Rs
10 lakhs. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, women empowerment, Relief to
poor and rural development projects. A CSR committee has been formed by the company as per the Act.

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:

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

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

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

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

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

Notes :

1. Current Assets & Current Liabilities as per Balance Sheet

2. Total Debt : Long Term Borrowings including ( Current Maturities of Long Term Borrowings), Short term
borrowings and interest accrued on debts

3. Shareholder equity includes sum of equity share capital and Reserve & Surplus.

4. Earning available for debt service = Net Profit after taxes Depreciation Interest Cost

Net profit after tax means reported amount of "Profit /(Loss) for the period" and it does not include items of other
comprehensive income.

5. Debt service = Interest cost Principal repayments

6. Average shareholders equity is (opening closing)/2

7. Cost of goods sold includes purchase of stock in trade and change in inventories of stock in trade

8. Working Capital = Current Assets - Current Liabilities

9. Capital Employed = Tangible Net worth Total Debt
where Tangible Net worth = Total Assets - Total Liabilities

Note : 43

Segment Reporting

The Company is engaged in 3 Business Segments: Coal trading, Metal Trading, Hiring charges of Agricultural Equipments.
Segments have been identifed and reported taking into account the nature of products, the differing risks and returns, the
organisation structure and internal business reporting system.

Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax related
assets/liabilties and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been treated
separately.

Note : 44

Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with
those of the current year.

As per our Report of even date.

For J P S & Co For and on behalf of the Board of Directors

Chartered Accountants
FRN: 004086N

CA J C Verma Gajraj Jain Jitendra Kumar Mishra

^Partner Chairman Cum Managing Director Ind. Director

UDIN:25083210BMHEOP5986 ^{DIN -00049199 DIN - 07983426}

Place: Gurugram Akash Jain Komal Amar Singh

Dated: 29th May, 2025 Chief Executive Officer Company Secretary Chief Financial Officer

---

Mar 31, 2024

The company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

b. Terms /Rights attached to the equity shares

The company has only one class of equity shares having a Par Value of 2/- each. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian Rupees.

Employee benefits obligations Gratuity

The Companyprovided gratuityfor employees as per the Graturity Act, 1972. Employees who are in continuous servicefor a period offiveyears are eligiblefor gratuity. The amount of gratuity ispayable on retirement or termination whichever is earlier. The level of benefitsprovided depends on the member''s length of service and salary at retirement age. The gratuityplan is afundedplan.

Compensated absences

The leave obligation cover the Company''s liabilityfor earned leaves.

Empoyee Benefits Expenses

Expenses and liabilities in respect of employee benefit expenses are recorded as per Ind AS 19, Employee Benefits.

Short Term Benefits

Short term employee benefits are recognized as an expense in the statement of profit and loss of the year in which related services are rendered by the employees.

Compensated Absences

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to expense each year

Post Employment Benefits Defined Contribution Plans

Obligations for contribution to defined contribution plans are expensed in the statement of profit and loss of the year in which the related services are rendered by the employees.

The company makes payments to State Govt. Provident Fund Scheme and Employee State Insurance Scheme which are defined contribution plans. The contribution paid / payable under the scheme is recognized in the statement of profit and loss during the period in which the employee renders the related services. The company has no further obligations under these schemes beyond its periodic contributions.

Defined Benefit Plans:-

Gratuity (funded): - The cost is determined using the projected unit credit method with the actuarial valuation being carried at each balance sheet date by independent actuary. The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of related obligation.

The net interest cost is calculated by applying the discount rate to the balance sheet of the defined benefit obligation. This cost is calculated in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains or losses arising from experience adjustment, demographic adjustments and changes in actuarial assumptions are recognised in the period, in which they occur, directly in Other Comprehensive Income. They are included in retained earnings in the Statement of Changes in Equity and in the Balance Sheet Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Profit or Loss as past service cost.

Other Employee Benefits

Accidental & medical Insurance Scheme, defined contribution plan is taken from Iffco-Tokio General Insurance Co Ltd.. Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employees''s salary ast drawn and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses/gains are recognized in the Statment of Profit and Loss in the year in which they arise.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated. Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

9. Risk Exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

If investment return of assets can be lower than the discount rate assumed.

Salary Escalation Risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future, based on past experience. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Miscellaneous Expenses:-

1. Does not include any item of expenditure with a value of more than 1% of Revenue from operations.

2. Includes expenses towards Advertisement, Printing & Stationary, Internal Audit Fees, Testing Charges, Electricity & water, Postage & courier and Others etc.

Note : 31

Earning per share

Basic EPS amounts are calculated by dividing the profit for the year attributble to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributble to equity holders by the weighted average number of equity shares outstanding during the year.

The company is in receipt of notice u/s 153C of the Income Tax Act 1961 for the period 2011-12 to 2017-18. Writ had been filed against the issue of notice in the Delhi High Court which is pending for adjudication. The liability is still undertemined and the management does not expect any significant adverse impact in the future.

Note : 37

Impairment of Trade Receivables

The Company recognises provision on Trade Receivables based on historical default rates to determine impairment loss on the portfolio of trade receivables. Under Ind AS, impairment of Trade Receivables shall be recognised based on Expected Credit Loss.

Trade Receivables ( Considered Good)

The company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer, Credit risk is managed through credit approvals, establishing credit limits and continususly monitoring the creditworthiness of customers to which the company granst credit terms in the normal course of business.

The Company uses an allowance matrix to measure the expected credit losses of trade receivables . The following table provides information about the exposure to credit risk and loss allowance (including expected credit loss provision) for trade receivables:

Note : 38

Financial risk management

The Company’s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, cash and short-term deposits that derive directly from its operations.

The company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committees reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by an internal audit team. Internal audit team undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

Credit Risk Liquidity Risk Market Risk

Credit Risk

Credit risk is the risk of fiancial loss to the company if a customer or counter party to a financial instrument fails to meet its contranctual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. The company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Liquidity Risk

Liquidty risk is the risk that the Company will encounter if there is difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquifity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unaceptable losses or risking damage to Company''s reputation.

Capital Risk Management

The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is managed to maintain an investment grade credit rating, to provide ongoing returns to shareholders and to service debt obligations, whilst maintaining maximum operational flexibility.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calcculated as total borrowings (including ''current and non-current term loans'' as shown in the balance sheet) less cash and cash equivalents and bank balances.

Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Foreign Currency Risk

The primay market risk to the Company''s is foreign exchange risk. The Company is exposed to foreign exchange risk through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Comapy pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in exchange rate of foreign currency exposure.

The fair value of 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.

A. The fair value of cash and cash equivalents, bank balances other than Cash and cash equivalents, trade receivables, loans, current financial assets, trade payables and current financial liabilities approximate their carrying amount, largely due to the short-term nature of these instruments. The change in the Fair Value of Non-Current Financial Asset and Liability is insignificant and hence carrying value and fair value is taken same.

B. Long-term borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note : 41

Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, women empowerment, Relief to poor and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII

a. No proceedings have been initiated or pending against the company for holding any Benami Property under the

Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rule made thereunder.

b. The company has no transactions with companies struck off under Section 248 of the Companies Act, 2013 or

Section 560 of the Companies Act, 1956.

c. There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

e. 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:

1. 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

2. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

1. 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

2. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company does not have any such transaction which are not recorded in the books of accounts and 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).

h. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender.

Notes:

1. Current Assets & Current Liabilities as per Balance Sheet

2. Total Debt : Long Term Borrowings including ( Current Maturities of Long Term Borrowings), Short term borrowings and interest accrued on debts

3. Shareholder equity includes sum of equity share capital and Reserve & Surplus.

4. Earning available for debt service = Net Profit after taxes Depreciation Interest Cost

Net profit after tax means reported amount of "Profit /(Loss) for the period" and it does not include items of other comprehensive income.

5. Debt service = Interest cost Principal repayments

6. Average shareholders equity is (opening closing)/2

7. Cost of goods sold includes purchase of stock in trade and change in inventories of stock in trade

8. Working Capital = Current Assets - Current Liabilities

9. Capital Employed = Tangible Net worth Total Debt where Tangible Net worth = Total Assets - Total Liabilities

Notes:

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:

1. (I) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on

behalf of the company (Ultimate Beneficiaries) or

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

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

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

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

Note : 43

Segment Reporting

The Company has two reportable operating segments which are engaged in the business of "Coal and Sponge Iron, Billets & Scrap Iron". Another new segment of Real Estate business has started which is under progress and no revenue has been generated till the reporting period.

Note : 44

Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with those of the current year.

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Mar 31, 2015

1.Disclosure in respect of Related Party Disclosure (As per Revised AS -18)

The Management has identified the following Companies and individuals as related parties of the Company for the year ended 31st March, 2015 for the purposes of reporting as per AS 18 — "Related Party Transactions":-

(A) Name of related parties and description of relationship:

1. Subsidiaries

Alsan Rubber And Chemicals Pvt. Ltd. 100% Holding (w.e.f. 30.07.2014)

2. Fellow Subsidiaries Nil

3. Associates Nil

4. Key Managerial Personnel & their Relatives

Mr. Akashjain - .Managing Director Mr. Vikas Jain - Brother

5. Companies where key Managerial Personnel & their Relatives have significant influence:

South West Pinnacle Exploration Pvt Ltd.

2 Disclosure required by clause 32 of the Listing Agreement

Amount of Loans/Advances in the nature of loans outstanding from subsidiaries during 2014-15 - NIL

3. Contingent Liabilities (not provided for) in respect of:

Amount in Rs. S No Contingent Liabilities 31.03.2015 31.03.2014

1 Foreign LCs $ 7,32,324 @ Rs. 62.59/- 45,836,159 42,822,203

2 Demands not acknowledged asdebts and not provided for, in respect of Nil Nil which the matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed

4. Employees Benefit Plans

Defined Contribution Plan

A separate trust has been established covering gratuity liability of staff. The Trust has taken a policy on 01/07/2011 under Group Gratuity Insurance Scheme of LIC under the defined contribution plans. Every employee who has completed three years or more of services is eligible for a Gratuity on seperation at 15 days' bsaic salary(last drawn salary) for each completed year of service. The company has also taken external Actuarial Valuation for determining the liability for future gratuity benefits but has considered LIC Valuations for company accounts. The assumptions of the Actuary for unfunded defined gratuity plan are worked out as under :

5. Segment Reporting

The Company is predominantly engaged in commodities trading of Rubber & Chemicals and Coal, which has been identified as main business segment

6. Due to Micro Small & Medium Enterprises

The companies has no dues to Micro, Small & Medium Enterprises during the year ended March 31,2015

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Mar 31, 2014

Disclosure in respect of Related Party Disclosure (As per Revised AS — 1)

The Management has identified the following Companies and individuals as related parties of the Company for the year ended 31st March, 2014 for the purposes of reporting as per AS 18 "Related Party Transactions":-

(A) Name of related parties and description of relationship:

1. Subsidiaries Nil

2. Fellow Subsidiaries Nil

3. Associates Nil

4. Key Managerial Personnel & their Relatives

Mr. Akash Jain - Managing Director

Mr. Vikas Jain - Brother

5. Companies where key Managerial Personnel & their Relatives have significant influence:

South West Pinnacle Exploration Pvt. Ltd.

Note 2

Contingent Liabilities (not provided for) in respect of:

Amount in

S No Contingent Liabilities 31.03.2014 31.03.2013

1 Foreign LCs $ 7,14,276.00 @ Rs. 59.95/- 42,822,203 83,890,455

2 Bank Guarantee (Indian) - -

3 Corporate Guarantee - -

4 Demands not acknowledged as debts and not provided for, in respect of Nil Nil which the matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed

Note 3

Employees Benefit Plans

Defined Contribution Plan

A separate trust has been established covering gratuity liability of staff. The Trust has taken a policy on 01/07/2011under Group Gratuity Insurance Scheme of LIC under the defined contribution plans. Every employee who has completed three years or more of services is eligible for a Gratuity on seperation at 15 days'' bsaic salary(last drwn salary) for each completed year of service. The company has also taken external Actuarial Valuation for determining the liability for future gratuity benefits but has considered LIC Valuations for company accounts. The assumptions of the Actuary for unfunded defined gratuity plan are worked out as under :

Note 4

Segment Reporting

The Company is predominantly engaged in commodities trading of Rubber & Chemicals and Coal, which has been identified as main business segment.

Note 5

Due to Micro Small & Medium Enterprises

The companies has no dues to Micro, Small & Medium Enterprises during the year ended March 31, 2014.

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Mar 31, 2013

Background

Chandra Frabhu International Ltd is a Company registered with Rostra, of New LMUl The Company is a Public limited Company wbow shares are listed b. BSE. Chandra Prabhu International Ltd. is a well- known name in the trading of Synthetic Rubber & Chemicals and Coal

1 Cash Flow Statement

Cash Flows are reported using the Indirect Method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals 01 accruals of apst or future cash receipts or payments. The cash flow operating, investing and financing activities of the company are segregated based on the available information,

2 Segment Reporting

The company identifies primary segments based on the dominant Source, nature of fislts and returns and the internal organisation and management structure, The operating segments are the segments for which separate financial information is available and for which operating profit/loss amount arc evaluated regularly by the executive management in deciding how to allocate fesouces and in assessing performance.

Common allocable costs are allocated to each segment pro-rata on die basis of revenue of each segment to ihc total revenue of rhe Company,

Due to Mitt* Small & Medium Enlttptiscs

TIk Lumpaniea has in. daes to Small A Medium Knttiprtses during the yen ended Match 11, 2013

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Mar 31, 2012

Background

Chandra Prabhu International Ltd. is a Company registered with Registrar of Companies, Delhi & Haryana, New Delhi. The Company is a Public Limited Company whose shares arc listed in BSE. Chandra Prabhu International Ltd. is a well- known name in the trading of Synthetic Rubber & Chemicals and Coal.

1. Gratuity Fund Scheme

The company has taken group gratuity insurance scheme from LIC of India under defined contribution plan determined on the basis on Projected Unit Credit Method carried out as at die Balance Sheet date. The company accounts for liability of future gratuity benefit based on LIC valuation on projected unit credit medwd carried out for assessing liability as at the reporting date.

2. Compensated Absenses

The liability of leave encashment and other compensated absences is recognised on arithmetical basis at the end of the year are charged to revenue each year.

3. Employee Pension Scheme

Employees contribution to Employees Pension Scheme, a defined contribution plan is made in accordance with The Employees Pension Scheme, 1995.

4 Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

5 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

6 Cash Flow Statement

Cash Flows are reported using the Indirect Mediod, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of apst or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available infomation.

7 Segment Reporting

Identification of segments

The company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

Allocation of common costs:

Common allocable costs are allocated to each segment pro-rata on the basis of revenue of each segment to the total revenue of the Company.

Unallocated items:

Unallocated items include income and expenses which are not allocated to any reportable business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and

presenting the Financial Statements of the Company as a whole.

8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having a largely probable

Contingent Assets are not recognized in the Financial Statement.

Note No. 9

Notes on accounts for the year ended March 31, 2012

Figures have been rounded off to the nearest rupee.

Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2010

1. Contingent liabilities (not provided for) in respect of :

Demands not acknowledged as debts and not provided for, in respect of which the matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed.

2009-2010 2008-2009

(Amt.inRs.) (Amt. in Rs.)

a) Foreign LCs 25,258,726 Nil

b) An ex-employee has filed a suit against the Company before the labour court against termination, liabilities unascertained.

c) The Income Tax cases decided in Companys favour by ITAT and Department is in further Appeal for A.Y. 1997-98 & 1998-99 although The Hoble Court has decided similar issues in favour of assesses.

d) The company has given a guarantee to L & T Finance Ltd. in respect of loan taken by its subsidiary South West Drilling & Infrastructure Ltd.

2. Balances of sundry debtors & sundry creditors are subject to confirmations from the respective parties.

3. There are no outstanding balances as on 31s March 2010 in Unclaimed Dividend Account.

4. Previous years figures have been regrouped / rearranged / re-casted wherever necessary to make them comparable with current years figures. All figures have been rounded off to the nearest rupee.

5. Related party transactions :

a) Related Party where control exist: Subsidiaries

i) Chandra Prabhu Overseas Ltd.

ii) South West Drilling & Infrastructure Limited

b) Name of the Related party where transactions have taken place during the year

i) Nil

ii) Key Management Personnel.

Managing Director

Sh.AkashJain

Directors

Sh. Piyush Jain (Ex. Director upto 31/05/09) (Director upto 18/11/09)

Sh. Prakash Goyal

Sh. Sudhanshu Mishra

Sh.Ved Prakash Goel

Sh. Jagdish Jhunjhunwala

c) Related Party Transactions (Key Management Personnel)