Notes to Accounts of Eco Recycling Ltd.

Mar 31, 2025

(p) Accounting For Provisions, Contingent Liabilities &
Contingent Assets

In conformity with Ind AS 37, a provision is 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 resources will be required
to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted
to its present value and are determined based on
best estimate required to settle the obligation at
the balance sheet date. These are reviewed at each
balance sheet date adjusted to reflect the current
best estimates.

Contingent liabilities are not recognized in the
financial statements. A contingent asset is neither
recognized nor disclosed in financial statements.

(q) Leases

The Company, as a lessee, recognizes a right-
of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial
amount of the lease liability adjusted for any lease
payments made at or before the commencement
date, plus any initial direct costs incurred and
restoration cost, less any lease incentives received.

The right-of-use assets are subsequently depreciated
over the shorter of the asset''s useful life and the lease
term on a straight-line basis. In addition, the right-
of-use asset is reduced by impairment losses, if any.

The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. When a lease liability is remeasured, the
corresponding adjustment of the lease liability is
made to the carrying amount of the right-of-use asset,
or is recorded in profit or loss if the carrying amount
of the right-of-use asset has been reduced to zero.

(r) Segment reporting

Company is operating only in one business segment

i.e. operation of e-waste recycling business in
organised manner, the requirement to give segment
reporting as per Ind AS Accounting Standard 108

on Operating Segment issued by the Institute of
Chartered Accountants is not applicable.

(s) Earnings per share

Basic earnings per share is computed by dividing
profit or loss attributable to equity shareholders
of the Company by the weighted average number
of equity shares outstanding during the period.
The Company did not have any potentially dilutive
securities in any of the periods presented.

(t) Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.

Explanatory notes:

(i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade
and Changes in inventories of finished goods, stock-in-trade and work-in-progress.

(ii) Non-Current Borrowings for the purpose of Long term debt to working capital ratio includes Current Maturities
of Non-Current Borrowings and excludes the same from Current Liabilities.

(iii) The reason for decrease in Current Ratio is due to increase in provision for income tax for FY 24-25.

(iv) The reason for Increase in Return on Equity Ratio is due to increase in net profit for the period.

(v) The reason for decrease in Inventory Turnover Ratio is due to significant rise in average inventory.

(vi) The reason for decrease in Trade Receivables Turnover Ratio is due to a significant rise in average receivables.

(vii) The reason for Increase in Trade Payables Turnover Ratio is due to significant decrease in average trade
payables.

(viii) The reason for decrease in Net Capital Ratio is due to a significant increase in working capital, which is greater
than revenue growth.

(ix) The reason for Increase in Interest Coverage Ratio is due to significant Increase in EBIT.

(x) The reason for Increase in Current Liability Ratio is due to increase in provision for income tax for FY 24-25.

(xi) The reasons for increase in Operating Margin is due to significant rise in the EBIT.

(xii) The reasons for decrease in Net Profit Margin is due to increase in tax expenses, which includes payment of

income tax of earlier financial year.

ii. Transaction with Struck off Companies

The company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act,

iii. Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been intiated or pending against
the company for holding any Benami property.

iv. Title deeds of all immovable properties

Title deeds of all immovable properties appearing in the books of company are held in company own''s name.

v. Registration of charge or satisfaction of charge with Registration of Companies (ROC)

The company does not have any charges or satisfaction which is yet to registered with ROC beyond the statutory
period.

vi. Wilful Defaulter

The company has not been declared as willful defaulter by any bank or financial institution or other lenders.

vii. Details of Crypto Currency or Virtual Currency.

There are no trading or investment in Crypto currency or Virtual Currency during the financial year by the
company.

viii. Undisclosed Income

There are no transaction which are 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.

In terms of our report attached For Eco Recycling Limited

For DMKH & Co B K Soni

Chartered Accountants Chairman & Managing Director (DIN 01274250)

Frim''s Registration No : 116886W

Aruna Soni

Executive Director (DIN 01502649)

Anant Nyatee Shashank Soni

Partner (Membership No.: 447848) Executive Director & CFO (DIN 06572759)

Mumbai, May 24, 2025 Mumbai, May 24, 2025

---

Mar 31, 2024

(p) Accounting For Provisions, Contingent Liabilities & Contingent Assets

In conformity with Ind AS 37, a provision is 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 resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

Contingent liabilities are not recognized in the financial statements. A contingent asset is neither

recognized nor disclosed in financial statements.

(q) Leases

The Company, as a lessee, recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and restoration cost, less any lease incentives received.

The right-of-use assets are subsequently depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. In addition, the right-of-use asset is reduced by impairment losses, if

any.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. When a lease liability is remeasured, the corresponding adjustment of the lease liability is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

(r) Segment reporting

Company is operating only in one business segment i.e. operation of e-waste recycling business in organized manner, the requirement to give segment reporting as per Ind AS Accounting Standard 108 on Operating Segment issued by the Institute of Chartered Accountants is not applicable.

(s) Earnings per share

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The Company did not have any potentially dilutive securities in any of the periods presented.

(t) Recent pronouncements

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

March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Explanatory notes:

(i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade and Changes in inventories of finished goods, stock-in-trade and work-in-progress.

(ii) Non-Current Borrowings for the purpose of Long term debt to working capital ratio includes Current Maturities of Non-Current Borrowings and excludes the same from Current Liabilities.

ii. Transaction with Struck off Companies

The company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

In terms of our report attached For Eco Recycling Limited

For R M R & Co B K Soni

Chartered Accountants Chairman & Managing Director (DIN: 01274250)

Frim''s Registration No : 106467W

Shashank Soni

Executive Director & CFO (DIN: 06572759)

Ashish Mandowara Maneesha Jena

Partner (Membership No.: 168656) Company Secretary (FCS No. 11575)

Mumbai, May 14, 2024 Mumbai, May 14, 2024

(B) Fair Value Disclosure

A number of Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has established policies and procedures with respect to the measurement of fair values.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

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

- Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly

or indirectly.

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

37. Financial risk management Framework

In the course of its business, the Company is exposed to certain financial risks namely credit risk, interest risk, currency

risk & liquidity risk. The Company''s primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The financial risks are managed in accordance with the Company''s risk management policy which has been approved by its Board of Directors.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates etc. could affect the Company''s income or the value of its holdings of financial instruments including cash flow. The objective of market

risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the return.

(a) Currency Risk

The Company''s exposure to currency risk relates primarily to the Company''s operating activities including anticipated sales and purchases where the transactions are denominated in a currency other than the Company''s functional currency.

(b) Interest Rate Risk

The Company uses cash to manage the liquidity & fund requirements of its day-to-day operations. Further, certain interest bearing liabilities carry variable interest rates. The Company''s investments are primarily in fixed rate interest bearing investments. Hence, the Company is not significantly exposed to interest rate risk.

Credit Risk

Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company''s exposure are continuously monitored.

Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk was Rs. 23.69 crores and Rs. 19.75 crores as at March 31, 2024 and March 31, 2023, respectively, being the total of the carrying amount of balances with banks, bank deposits, investments, trade receivables, loans and other financial assets. None of the other financial instruments result in material concentration of credit risk.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk

management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company consistently generated sufficient cash flows from operations to meet its financial obligations including lease liabilities as and when they fall due.

38. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the company''s capital management is to maximize shareholder value. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

39. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s

classification/ disclosure.

Signatures to Notes 1 to 39

In terms of our report attached For Eco Recycling Limited

For R M R & Co B K Soni

Chartered Accountants Chairman & Managing Director (DIN: 01274250)

Frim''s Registration No : 106467W

Shashank Soni

Executive Director & CFO (DIN: 06572759)

Ashish Mandowara Maneesha Jena

Partner (Membership No.: 168656) Company Secretary (FCS No. 11575)

Mumbai, May 14, 2024 Mumbai, May 14, 2024

---

Mar 31, 2023

i. Provisions and contingent liability

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into

account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present

Value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the 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.

j. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of

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

k. Employee benefits

Defined Contribution plans For certain group of employees, employee benefit in the form of Provident fund, Superannuation, Employees State Insurance Contribution and Labour Welfare fund are defined contribution plans. The Company has no obligation, other than the contribution payable to the respective fund. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Defined benefit plans

The Company provides for retirement benefit in the form of gratuity. The Company''s liability towards this benefit is determined on the basis of actuarial valuation using Projected Unit Credit Method at the date of balance sheet.

In respect of certain employees,

provident fund contributions are made to a trust administered by the Company. Periodic contributions to the Fund are charged to the Statement of profit and loss. The Company has an obligation to make good the shortfall, if any, between the return from the investment of the trust and interest rate notified by the Government of India. Such shortfall is recognized in the Statement of profit and loss. The Company''s liability is determined on the basis of an actuarial valuation using the projected unit credit method.

Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurement is not reclassified to profit or loss in subsequent periods. Past service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment and

• The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in statement of profit

and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

• Net interest expense or income Compensated absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit and this is shown under current provision in the Balance Sheet. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes and this is shown under long term provisions in the Balance Sheet. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/ losses are immediately taken to the Statement of Profit and Loss and are not deferred. The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer its settlement for 12 months

after the reporting date. Where the Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

l. Foreign currencies

The Company''s financial statements are presented in INR, which is also the Company''s functional currency.

Transactions in foreign currencies are initially recorded by the Company at INR spot rate at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

m. 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.

n. 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.

Subsequent measurement

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

• Financial Assets at amortised cost

• Financial Assets at fair value through other comprehensive income (FVTOCI)

• Financial Assets including derivatives and equity instruments at fair value through profit or loss (FVTPL)

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

o. 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.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables, loans and other financial assets.

p. Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. For all equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value 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. The Company has made such election on an instrument-byinstrument basis. The classification is made on initial recognition and is irrevocable.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:

• The rights to receive cash flows

from the asset have expired or

• 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

• All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the

b) Financial assets that are equity instruments and are measured as at FVTOCI

c) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

• Trade receivables

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment

contractual terms As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forwardlooking estimates. At every reporting date, the historical observed default rates are updated and changes in the forwardlooking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L). This amount is reflected under the head ''other expenses'' in the P&L. The balance sheet presentation for various financial instruments is described below:

Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-of criteria, the Company does not reduce

impairment allowance from the gross carrying amount.

• Loan commitments and

financial guarantee

contracts: ECL is presented as a provision in the balance sheet, i.e. as a liability.

• Equity instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value. Rather, ECL amount is presented as ''accumulated impairment amount'' in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination.

q. 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.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss Gains or losses on liabilities held for trading are recognised in the profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

r. Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

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.

Offsetting of financial instruments financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

s. Earnings per share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

t. Inventories

Inventories are valued at lower of cost and net realisable value. Cost of work in progress and finished goods comprise of purchase cost, conversion costs and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using the weighted average basis.

Net realisable is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

u. Finance cost

Finance cost includes interest expense on borrowings calculated using the effective interest rate (EIR) method.

The entity capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of the asset. All other borrowing costs is recognised as an expense in the period in which incurred.

v. Recent Accounting Pronouncement

On 31^st March 2023, the Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules a issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standard) Rules, 2015 by issuing the Companies (Indian Accounting Standard) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements. The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind As 12 - Income Taxes The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty".

Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

W. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the noncancellable period of a lease, together with both periodscovered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

Note No. 41:

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

For R M R & CO. For and on behalf of the Board of Directors

Chartered Accountants

ICAI Reg.No.106467W

CA Ashish Mandowara B. K. Soni Shashank Soni Kaushal Shukla

Partner Managing Director Director & Chief Financial Officer Company Secretary

Membership No.: 168656 DIN: 01274250 DIN: 06572759 ACS39234

Mumbai | 30^th May, 2023

---

Mar 31, 2018

1 Company Overview

The Company was incorporated in August 1994 having CIN No. L74120MH1994PLC079971, at Mumbai under The Companies Act, 1956.

The Company is engaged in the e-waste recycling business in an organised manner, with the help of superior technology, complying norms set by the Pollution Control Board for the environmental safety.

2 Basis of preparation of financial statements

2.1 Statement of compliance and basis of preparation:

These financial statements are prepared in accordance with the

Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules 2015, Companies (Indian Accounting Standards) Amendment Rules 2016.

The company prepared its standalone financial statements as per Indian GAAP in accordance with accounting standards notified under Companies (Accounting Standards) Rules 2006. These financial statements are the Company’s first Ind AS standalone financial statements

The date of transition to Ind AS is April 01, 2016.

The standalone financial statements have been prepared on historical cost basis, except for certain items of financial assets and financial liabilities which have been measured at fair values.

The presentation of the standalone Ind AS Balance sheet, Statement of profit and loss and Statement of Changes in equity is as per Schedule III (Division II) notified by the Companies Act 2013.

2.2 Use of accounting estimates, assumption and judgements:

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported amounts of incomes and expenses for the periods presented.

2.3 Useful lives of property plant and equipment:

The useful lives and the residual values of the property plant and equipment are reviewed by the management at least at every financial year end.

2.5 Impairment of Assets

The carrying amount of fixed assets and investments is regularly reviewed by the management and whenever there is an indication of impairment. In case of impairment loss, the asset is reduced to its recoverable amount

2.6 Employee benefit obligation:

The company uses actuarial valuation method to determine its defined employees benefits obligation at the end of each reporting period. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates

3 Notes on Transition to Ind AS:

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified by the Ministry with effect from April 01, 2016.

The company’s transition date is April 01, 2016 (Opening Ind AS balance sheet).

Ind AS 101 First time adoption to Indian Accounting Standards provides mandatory and optional exemptions, to a first time adopter of the Indian Accounting standards from retrospective application of certain or all aspects of the other standards.

This standard mandates that a first time adopter shall use the same accounting policies in its opening Ind AS balance sheet and throughout all periods presented in its first Ind AS financial statements. Any difference in the carrying value of assets and liabilities between Ind AS and Previous GAAP have been recognised directly in retained earnings (or if appropriate, another category of equity) at the date of transition to Ind AS (i.e. Opening balance sheet as at April 01, 2016).

3.1 Mandatory Exceptions:

a) Estimates: the company’s estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP

b) Classification and measurement of financial assets: The company has classified financial assets as subsequently measured at amortised cost or at fair value through other comprehensive income on the basis of facts and circumstances that exist at the date of transition to Ind AS.

c) De-recognition of financial assets and financial liabilities:

The company has decided to apply the de-recognition requirements in Ind AS 109 Financial Instruments prospectively for transactions occurring on or after the date of transition to Ind AS.

3.2 Optional Exceptions:

(a) Property Plant and Equipment:

The company has opted for exemption given under paragraph D7AA of Ind AS 101 for all its property plant and equipment recognised in its financial statements as per previous GAAP on the date of transition to Ind AS. Accordingly all the property plant and equipment are carried at their existing previous GAAP carrying values, which will be their respective deemed costs at the date of transition to Ind AS.

(b) Investments in subsidiaries, associates and joint ventures:

The company has opted for exemption given in paragraph D15 of Ind AS 101. Accordingly the investments in subsidiaries, associates and joint ventures are carried at their respective previous GAAP carrying values, as deemed costs on the date of transition to Ind AS.

(c) Designation of previously recognised financial assets:

Ind AS 101 permits investments in equity instruments to be designated as at fair value through OCI (FVTOCI) in accordance with Ind as 109, on the basis of facts and circumstances that existed at the date of transition to Ind AS. The company has opted to avail this exemption to designate certain equity investments as FVTOCI on the date of transition to Ind AS.

Notes to reconciliation of equity and total comprehensive income:

(a) Fair valuation of investments: Under previous Indian GAAP, current investments are measured at lower of cost and fair value, and long term investments are measured at cost less diminution in value which is other than temporary. Under Ind AS, investments, long term as well as current, are measured at fair market value, with gains or losses recognised either in profit or loss or in other comprehensive income based on the business model of the company for managing these investments.

(b) Deferred tax: Under previous GAAP, deferred tax liabilities and assets was recognised using the income approach i.e. based on timing differences between the accounting profit and taxable profits for the period. Under Ind AS deferred tax calculations are based on balance sheet liability method i.e. based on temporary differences between the carrying amounts of assets and liabilities in the balance sheet and its tax base. This has resulted in recognising deferred tax on temporary differences that were not required to be recognised under previous Indian GAAP.

3.3 Long term investments in unquoted equity instruments (other than investment in subsidiary)

Under previous Indian GAAP, non current investments are carried at cost with provision for diminution in their value which is other than temporary. under Ind AS, the company has designated unquoted equity instruments as financial assets at fair value through other comprehensive income and certain unquoted preference shares as financial assets at fair value through profit and loss. The company has not performed a fair valuation of its unquoted investments in equity shares and preference shares, as the company believes that the impact of change on account of the fair valuation of such investments is insignificant

3.4 Fair value disclosures for financial assets and financial liabilities

The company believes that the fair values of non-current financial assets (security deposits, lease rental deposits) , current financial assets (trade receivables etc.) and non current financial liabilities approximate their carrying amounts

3.5 Investment in quoted equity shares The company has designated investments in quoted equity shares as subsequently measured at fair value through other comprehensive income FVTOCI. On transition date, the difference between the existing carrying amount and fair value has been recognised as an adjustment to opening retained earnings. Subsequent adjustment to the fair values of such quoted equity investments is recognised in other comprehensive and accumulated separately under other equity in the balance sheet

3.6 Financial Guarantee contracts Under previous Indian GAAP, financial guarantee given by parent on behalf of its subsidiaries is recognised as “Contingent liability”

Under Ind AS, corporate / financial guarantee is treated as a financial liability and is recognised at fair value on initial as well as subsequent recognition. The fair value of the financial guarantee is treated as “investment in subsidiary”. Finance income is recognised over the term of the guarantee using the effective interest method.

The company has given a corporate / financial guarntee to National Skills Development Corporation (NSDC) on behalf of its 100% subsidiary Ecoreco Enviro Education P.Ltd. The company has however not done a fair valuation of the financial guarantee given to NSDC, as the company feels that its impact on the financial statements is insignificant

Note 4.1: The Company had set up a small facility for recycling of e-waste near Mumbai and were carrying out R&D for the recovery of various metals from printed circuit boards & other complicated e-waste. In the process we approached Department of Scientific & Industrial Research (DSIR) for their financial support to complete technology development and commercialize the same with an optimum capacity to recycle. DSIR was kind enough to sanction Rs.1186 lacs as grant payable back on commercialization of the above project. To implement the above project Company had withdrawn Rs.900 lacs from the above grant and invested its own funds of Rs. 2134.53 lacs to develop / procure required Plant & Machineries. Unfortunately, we could not develop / commercialize the project so far because access road to the Project Site has been blocked by the local villagers who also owns some parcel of land around the above project site. The company has approached to practically all the levels of Administration at the Local & State level for their kind intervention and resolution. The Company has also appealed to the office of the PMO and the same has been forwarded to the Ministry of Environment & Forests for their attention.

Note 5: Disclosure in Respect of Leases:

Operating Lease: Company as Lessee

The Company’s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

a) The total of future minimum lease payments during lock in period of operating leases for each of the following periods:

Note 6: The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorisation of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected.

Note 7: The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs.650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.

All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.

Note 8: Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.

Note 9: The company is in the business of E-waste and Asset Management.

Note 10: Related Party Transactions

Related party disclosures as required by AS - 18, “Related Party Disclosures”, are given below “

i) Relationships :

(a) Holding Company :-

Ecoreco Ventures Private Limited

(b) Associates (by common director):-

Reverse Logistics & Warehousing Private Limited

Ecoreco Park Private Limited

Eco Remarketing Pvt Ltd

Data De-End Private Limited

WEEE India Pvt Ltd

Reverse E-Commerce Private Limited

EPR Compliance Private Limited

(c) Subsidiary(100%):-

Ecoreco Enviro Education Pvt Ltd

(e) Key Management Personnel :-

Mr. Brijkishor Soni - C.M.D.

Mrs. Aruna Soni - Director Mr. Srikrishna B. - Director Mr.Shashank Soni - Director Mr. Vijay Acharya - Director

Note 11: Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure.

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Mar 31, 2017

a) 11,342,500 (P.Y.11,342,500) Equity Shares out of the issued, subscribed and paid up share capital were alloted in the last five years pursuant to the schemes of amalgamation of Eco Recycling Limited and Infotrek Syscom Limited without payments being received in cash.

c) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

Secured Long Term Borrowings

* Indian Rupee term loan from bank is repayable in equated periodic installments upto a 5 year period each along with interest. Further, the loan has been guaranteed by personal guarantee of the chairman and managing director of the company, Ecoreco Ventures Private Limited, the holding company and by collateral security of the registered office in the name of B. K. Soni (HUF) and Pledge of 3.40 lakhs equity shares of the company by the chairman and managing director of the company Mr. B. K. Soni.

** The Vehicle loan from ICICI bank is repayable in equated periodic installments upto 36 months period each along with interest. Further, the loan has been secured by hypothecation of Vehicle and personal guarantee of Director.

*** Unsecured Long-Term Borrowings:

Repayment to start after 1 year from the date of commercialization of the project in 5 annual installments.

1 Disclosure in Respect of Leases:

Operating Lease:

Company as Lessee

The Company''s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

2 The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to ''4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorization of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected. In the interim company has booked the loss on sale of these shares in the current Financial Year.

3 The Whole Time Company Secretary had been appointed as per Companies Act 2013 before signing of the Financial Statements.

4 The Company has not written off the "Miscellaneous Expenditure" amounting to ''860,076/- fully in Statement of Profit and Loss account, which is not in confirmity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.

5 The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs.650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.

All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.

6 Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.

7 The company is in the business of E-waste and Asset Management.

8 Related Party Transactions

Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below "

i) Relationships :

(a) Holding Company:-

Ecoreco Ventures Private Limited

(b) Associates (by common director):-

Reverse Logistics & Warehousing Private Limited

Ecoreco Park Private Limited

Eco Remarketing Pvt Ltd

Data De-End Private Limited

WEEE India Pvt Ltd

(e) Key Management Personnel:-

Mr. B. K. Soni - C.M.D.

Mrs. Aruna Soni - Director

Mr. Srikrishna B. - Director

Mr.Shashank Soni - Director

Mr. Vijay Acharya - Director

Mr. Dattatraya Devale - Director

Ms. Anita Choudhari - CFO

(c) Subsidiary(100%):-

Ecoreco Enviro Education Pvt Ltd

9 Disclsoure On Specified Bank Notes (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:

10 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2016

1. Disclosures in Respect of Leases:

I Operating Lease: Company as Lessee

The Company''s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

2. The Company had been dealing with Keynote Capital Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been misappropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorization of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the Bombay High Court against the second appellate award passed by the Arbitration Committee of The National Stock Exchange of India Limited, which is still pending. The matter is now pending with Bombay High Court and the disposal of the same in favour of Company is expected.

3. The Company has not carried out Actuarial Valuation for Gratuity and has made an adhoc provision of Rs.2,00,000/-, which is not in conformity with AS-15 "Employee Benefits" as required under the provisions of The Payment of Gratuity Act, 1972.However in the opinion of the management the impact of difference, if any, on the Balance Sheet and Statement of profit and loss account is negligible.

4. The Company has not written off the "Miscellaneous Expenditure" amounting to Rs.14,51,548/- fully in Statement of Profit and Loss account, which is not in conformity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.

5. The Company had entered in to an agreement with KUD Realtors Pvt. Ltd, Mumbai for purchase of 10 acres of land for a consideration of Rs. 650 lacs for setting up its e-waste recycling project at Kharbao, Bhiwandi and paid Rs.615 lacs against the above. As of now, M/s KUD Realtors Pvt Ltd, could conveyance 5.78 acres of land in favor of the company and for the remaining amount they have offered some warehouses and incomplete construction at the same site.

All the above land, warehouses and incomplete building are yet to be physically received because of incomplete documents for which the company has taken appropriate steps with the concerned authorities.

6. The office of the Whole Time Company Secretary has been vacant and the Company is in process of appointing a full time company secretary as per Companies Act 2013.

7. The company is in the business of E-waste and Asset Management.

8. Balances of some of the trade receivables, trade payables and creditor of expenses, loans and advances (given and taken) and loans, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management however is of the view that there will be no material adjustments in this regards.

9. Related Party Transactions

Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below " i) Relationships:

(a) Holding Company:- (c) Associates (by common director and investment):-

Ecoreco Ventures Private Limited WEEE India Pvt Ltd

(b) Associates (by common director):- (d) Subsidiary(100%):-

Reverse Logistics & Warehousing Private Limited Ecoreco Enviro Education Pvt Ltd

Ecoreco Park Private Limited

Eco Remarketing Pvt Ltd

Data De-End Private Limited

(e) Key Management Personnel:-

Mr. B. K. Soni - C.M.D.

Mrs. Aruna Soni - Director

Mr. Srikrishna B. - Director

Mr. T R Rao - Director

(Resigned on 19.09.2015)

Mr.Shashank Soni - Director

Mr. Vijay Acharya - Director

Ms. Anita Choudhari - CFO

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Mar 31, 2015

1. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

2.In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

3. Indian Rupee term loan from bank is repayable in equated periodic installments upto a 5 year period each along with interest. Further, the loan has been guaranteed by personal guarantee of the chairman and managing director of the company, Ecoreco Ventures Private Limited, the holding company and by collateral security of the registered office in the name of B.K.Soni (HUF) and Pledge of 3.40 lakhs equity shares of the company by the chairman and managing director of the company Mr. B.K. Soni.

4. Unsecured Long-Term Borrowings:

b) Repayment to start after 1 year from the date of completion of the project in 5 annual instalments.

5. Contingent Liabilities

Guarantee given by Bank on behalf of the Company Secured against equal fixed deposits

Standing Bank Guarantee in favour 1,810,000 1,810,000 of The Customs, JNPT

Custom Duty on Imported Machineries 12,400,000 12,400,000 cannot be sold or transferred to any person or other organisation for a period of 5 years from the date of its import

6. The Company has been dealing with Keynote Capital Markets Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs.4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been appropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorisation of the company. The company has taken appropriate actions against Keynote with SEBI, NSE & Economic Offence Wing (EOW) of the Mumbai Police for the recovery of the misappropriation of the investment of the company. In this matter Company has won both the appeals of Arbitration Committee of The National Stock Exchange. In the month of August, 2014 Keynote has filed an appeal u/s 34 in the High Court, which is still pending. The Company is confident that it will be able to recover its amount and therefore no accounting impact has been given to such misappropriated investments till the matter is sub-judice.

7. The Company has not provided provision for gratuity on employees on accrual basis, which is not in conformity with AS-15 - Employee Benefits as required under The Gratuity Act, 1972. However in the opinion of the management the amount involved is negligible and has no impact on Statement of profit and loss account.

8. The Company has not written off the "Miscellaneous Expenditure" amounting to Rs.39,19,517/- fully in Statement of profit and loss account, which is not in confirmity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.

9. The office of the Whole Time Company Secretary has been vacant and the Company is in process of appointing a full time company secretary as per Companies Act 2013.

10. The Company is engaging in research & development activity on Electronic Waste. The expenses incurred during the year other than capital expenditure is charged off in the Statement of profit and loss. The expenses included legal & professional fees, employee benefits expenses & other expenses incurred during the year.

11. The company is in the business of E-waste and Asset Management.

12. Balances of some of the trade receivable, trade payable and creditor of expenses, loans and advances are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.

13. Related Party Transactions

Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below " i) Relationships :

(a) Holding Company :-

Ecoreco Ventures Private Limited

(b) Associates :-

Reverse Logistics & Warehousing Private Limited

Ecoreco Park Private Limited

WEEE India Private Limited

Data De-End Private Limited

(c) Key Management Personnel :-

Mr. B. K. Soni - C.M.D.

Mrs. Aruna Soni - Director

Mr. Srikrishna B. - Director

Mr. T R Rao - Director

Mr.Shashank Soni - Director

Mr. Vijay Acharya - Director

Ms. Anita Choudhari - CFO

14. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure.

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Mar 31, 2014

1. a) 11,342,500 (P.Y.11,342,500) Equity Shares out of the issued, subscribed and paid up share capital were alloted in the last five years pursuant to the schemes of amalgamation of Eco Recycling Limited and Infotrek Syscom Limited without payments being received in cash.

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

c) Details of Shareholders holding more than 5 % shares in the Company

Secured Long-Term Borrowings:

d) Indian Rupee term loan from bank is repayable in equated periodic installments upto a 5 year period each along with interest, after the repayment holiday of 1 year viz., June, 2013. The loan is secured by hypothecation of inventory and trade receivables of the company. Further, the loan has been guaranteed by personal guarantee of the chairman and managing director of the company, Ecoreco Ventures Private Limited, the holding company and by collateral security of the registered office in the name of B.K.Soni (HUF) and Pledge of 3.40 lakhs equity shares of the company by the chairman and managing director of the company Mr. B. K. Soni.

Unsecured Long-Term Borrowings:

e) Repayment to start after 1 year from the date of completion of the project in 5 annual instalments.

*Working Capital Loans from banks are secured by way of hypothecation of Stock, Book-Debts and Personal Gurantee of the Chairman and Managing Director of the company Mr. B.K. Soni.

*The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

*Includes Tax deducted at source, Provident Fund and Profession Tax.

Note : * It represents an expenditure for development of the project ''E-Waste recycling and Precious metal recovery'' under TDDP of TDPU and DSIR.

2 Disclosure in Respect of Leases:

I Operating Lease: Company as Lessee

The Company''s leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

3 Contingent Liabilities

Guarantee given by Bank on behalf of the Company Secured against equal fixed deposits

Standing Bank Guarantee in JNPT 1,810,000 1,810,000 favour of The Customs,

Standing Bank Guarantee for Tender in - - favour of The MMRDA

Custom Duty on Imported Machineries cannot be sold or transferred to any person or other 12,400,000 12,400,000 organisation for a period of 5 years from the date of its import

4 The Company was availing of broking services of M/s. Keynote Capitals Limited (Keynote), a BSE & NSE Broker. In the month of March, 2013 Keynote misappropriated the entire portfolio of the company lying in the demat account and transferred in its favor. The company immediately filed a complaint with the SEBI. SEBI then forwarded our complaint to the Arbitration Committee of NSE which decided the matter in favor of the company, against which Keynote went into an appeal but here too the Appellate Tribunal of NSE upheld the award passed by the Arbitration Committee. Keynote has now filed an application with Mumbai High Court for setting aside the award passed by the Appellate Tribunal of NSE. Since the matter is sub-judies and therefore no accounting treatment has been given to such misappropriated investments.

5 The Company has not provided provision for gratuity on employees on accrual basis, which is not in conformity with AS-15 - Employee Benefits as required under The Gratuity Act, 1972. However in the opinion of the management the amount involved is negligible and has no impact on Statement of profit and loss account.

6 The Company has not written off the "Miscellaneous Expenditure" amounting to Rs. 64,98,617/- fully in Statement of profit and loss account, which is not in confirmity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy as the treatment taken is as per the provisions of The Income Tax Act, 1961.

7 The office of the Whole Time Company Secretary has been vacant and the Company is in process of appointing a full time company secretary as amended by The Companies Act, 1956.

8 The Company is engaging in research & development activity on Electronic Waste. The expenses incurred during the year other than capital expenditure is charged off in the Statement of profit and loss. The expenses included legal & professional fees, employee benefits expenses & other expenses incurred during the year.

9 The company is in the business of E-waste Management and Recycling.

10 The Company in 2012-13 has entered into agency arrangements with "Nippon Magnetic Dressing Co. Ltd.(NMD)" - Japan for technology agreements. Under this arrangements the company has issued equity shares on preferential basis to NMD and is setting up a facility for research and development in E-waste Management and recycling and increasing awareness in the society.

The NMD has reimbursed full Construction and modification cost of facility of which the Company has retained all risk and reward of ownership of assets. The reimbursement cost is in Japanese YEN; the difference arising on exchange amount is dealt to statement of profit and loss account as per AS - 11.

Under the arrangements NMD has exported to India two Machineries amounting to Rs. 112,944,791/- under technological arrangements with the company. These machines have been provided free of cost to be installed in facility where the company has paid only custom duty on the same amounting to Rs. 60,48,202/- in which the company has retained all risks and rewards of ownership of assets.

11 Balances of some of the trade receivable, trade payable and creditor of expenses, loans and advances are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.

12 Related Party Transactions

Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below "

i) Relationships:

(a) Holding Company:-

Ecoreco Ventures Private Limited

(b) Associates:-

Reverse Logistics & Warehousing Private Limited Bennett Coleman & Company Limited (BCCL).

Nippon Magnetic Dressing Co., Ltd (NMD) - Japan Ecoreco Park Private Limited

(c) Key Management Personnel:-

Mr. Brijkishor Soni - C.M.D.

Mrs. Aruna Soni - Director Mr. Srikrishna B. - Director Mr. T R Rao - Director Mr. Shashank Soni - Director Mr. Mahendra Thanai - CEO

13 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2013

1 The Company has been dealing with Keynote Capital Markets Limited (Keynote) for its Share transactions. A substantial portion i.e 20,56,234 Nos. of shares amounting to Rs. 4,48,55,092/- out of the investment portfolio maintained by the company in demat form with Keynote has been appropriated by the Keynote against the loss booked by Keynote on account of transactions in the F&O Segment carried out by Keynote on its own without any authorisation of the company. The company has taken appropriate actions against Keynote with SEBI, NSE & Economic Offence Wing (EOW) of the Mumbai Police for the recovery of the misappropriation of the investment of the company. Investigation / hearing in the matter is at an advanced stage at all the authorities. The company is confident that it will be able to recover its amount and therefore no accounting impact has been given to such misappropriated investments till the matter is sub-judice.

2 The Company has not provided provision for gratuity on employees on accrual basis, which is not in conformity with AS-15 - Employee Benefits as required under The Gratuity Act, 1972. However in the opinion of the management the amount involved is negligible and has no impact on Statement of profit and loss account.

3 The Company has not written off the "Miscellaneous Expenditure" amounting to Rs. 62,69,089/- fully in Statement of profit and loss account, which is not in confirmity with AS - 26 - Intangible Assets which had arise at the time of amalgamation. However in the opinion of the management it will not create any discrepancy has the treatment taken is as per the provisions of The Income Tax Act, 1961.

4 The office of the Whole Time Company Secretary has been vacant and the Company is in process of appointing a full time company secretary as amended by The Companies Act, 1956.

5 The Company is engaging in research & development activity on Electronic Waste. The expenses incurred during the year other than capital expenditure is charged off in the Statement of profit and loss. The expenses included legal & professional fees, employee benefits expenses & other expenses incurred during the year.

6 The company is in the business of E-waste Management and Recycling, Trading in stock of shares, Derivative, Future and options & Speculation business.

7 i) The Company in current year has entered into agency arrangements with "Nippon Magnetic Dressing Co. Ltd.(NMD)" - Japan for technology agreements. Under this arrangements the company has issued equity shares on preferential basis to NMD and is setting up a facility for research and development in E-waste Management and recycling and increasing awareness in the society.

ii) The NMD has reimbursed full Construction and modification cost of facility of which the Company has retained all risk and reward of ownership of assets. The reimbursement cost is in Japanese YEN; the difference arising on exchange amount is dealt to statement of profit and loss account as per AS - 11.

iii) Under the arrangements NMD has exported to India two Machineries amounting to Rs. 4,58,53,055/- under technological arrangements with the company. These machines have been provided free of cost to be installed in facility where the company has paid only custom duty on the same amounting to Rs. 27,91,011/- in which the company has retained all risks and rewards of ownership of assets. After the completion of construction & installation of facility and machines, the company will capitalized these assets in the books of accounts by revaluing the assets under AS – 10. Till then, the company will classify the mentioned amounts as Capital Advances under "Long-Term Loans and Advances" and receipts under "Other Long-Term Liabilities".

8 Balances of some of the trade receivable, trade payable and creditor of expenses, loans and advances are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however is of the view that there will be no material adjustments in this regards.

9 Disclosure of Closing stock under Section 372(10) of the Companies Act 1956

The company holding listed equity shares as stock-in-trade, the market value of which as at year end Rs. 27,24,382/- (P.Y. Rs. 29,54,081/-). The company policy is to value the equity shares held as a stock-in-trade at cost.

10 Related Party Transactions

Related party disclosures as required by AS - 18, "Related Party Disclosures", are given below "

(i) Relationships :

(a) Holding Company :- First Online Comtrades Private Limited

(b) Associates :- Kriscon Services Private Limited

Reverse Logistics & Warehousing Private Limited Bennett Coleman & Company Limited (BCCL). Nippon Magnetic Dressing Co., Ltd (NMD) - Japan

(c) Key Management Personnel :- Mr. Brijkishor Soni - C.M.D. Mrs. Aruna Soni - Director

Mr. Srikrishna B. - Director Mr. T R Rao - Director Mr. Deepak Nanda - Director Mr.Shashank Soni - Relative

11 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2012

A) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of prefential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

1 Disclosure in Respect of Leases:

The Company's leasing arrangements are in respect of operating leases for factory, office premises and guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

a) The total of future minimum lease payments during lock in period of operating leases for each of the following periods.

Particulars

i) Not later than one year

ii) Later than one year and not later than five years

iii) Later than five years

31.03.2012 31.03.2011 (Rupees) (Rupees)

2 Contingent Liabilities

Guarantee given by Bank on behalf of the Company Secured against equal fixed deposits Standing Bank Guarantee in favour of The Customs, JNPT 1,810,000 1,810,000

Standing Bank Guarantee for Tender in favour of The MMRDA 20,000,000 -

3 The office of the Company Secretary has been vacant and the Company is in process of appointing a full time company secretary.

4 The Company has not provided for gratuity, leave encashment and leave travel allowances to employees on accrual basis, which is not in conformity with AS-15 issued by ICAI. However in the opinion of the management the amount involved is negligible and has no impact on profit and loss account.

5 The company is into single segment of E-waste Management and Recycling. Hence segment wise reporting is not applicable.

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Mar 31, 2011

1. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the fnancial statements.

2. No revaluation of fixed assets has been made since the date of incorporation of the Company.

3. In the opinion of the Management, the Provident Fund and ESI Acts are not applicable to the Company.

4. The Company has not provided for gratuity and leaves encashment and leave travel allowances to employees on accrual basis, which is not in conformity with AS- 15 issued by ICAI. However in the opinion of management the amount involved is negligible and has no impact on proft and loss account.

5. Standing Bank Guarantee of Rs. 22,18,955/- In favor of The Customs, JNPT is fully secured against equal Fixed Deposit with a bank.

6. As per the accounting standard 18 on "Related Party Disclosures" issued by the ICAI the related Parties of the company and nature of relationship are as follows:

c) Closing Stock of Shares held as stock- in-trade

2010-11 2009-10

3866166 4902498

7. Segment Reporting

(i) The company is into single segment of E-waste Management and Recycling. Hence segment wise reporting is not applicable. (ii) The company operates in domestic market only.

8. Earnings in foreign currency during the year. Expenditure in foreign currency during the year – INR 5,09,704

9. Value of imports on CIF Basis: INR 5,33,304

10. In accordance with the accounting standard 20 on "Earnings per Share" issued by the ICAI: Net Profit (Loss) after tax availableto Equity Shareholders: - Rs. 71,55,950 Weighted average no. of Equity Shares outstanding during the year: 159,425,000 Basic and Diluted EPS: Rs.0.44 (P.Y. Rs 0.09)

11. Deferred Income Tax:

Deferred tax has been provided in accordance with the Accounting Standard 22- Accounting for Taxes on Income issued by the Institute of Chartered Accountant of India. The deferred tax liabilities as on 31st March, 2011 amounting toRs. 1,26,363/-is the difference between the book depreciation and tax depreciation.

12. Previous year fgures have been regrouped and rearranged wherever necessary to confrm to this year's classifcation..

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Mar 31, 2010

1. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the financial statements.

2. No revaluation of fixed assets has been made since the date of incorporation of the Company.

3. In the opinion of the Management, the Provident Fund and ESI Acts are not applicable to the Company.

4. The Company has not provided for gratuity and leaves encashment and leave travel allowances to employees on accrual basis, which is not in conformity with AS-15 issued by ICAI. However in the opinion of management the amount involved is negligible and has no impact on profit and loss account.

5. Standing Bank guarantee of Rs. 1810000/= In favor of The Customs, JNPT is fully secured against equal fixed deposit with the bank.

6. As per the accounting standard 18 on "Related Party Disclosures" issued by the ICAI the related Parties of the company and nature of relationship are as follows:

RELATED PARTY NATURE OF RELATIONSHIP

Brij Kishor Soni Key Management Personnel

Aruna Soni Director

N.R.Colors ltd One Common Director

First Online Comtrades Pvt. Ltd. Two Common Directors

B. K. Soni HUF CMD Is Karta Of HUF

7. Deferred Income Tax:

Deferred tax has been provided in accordance with the Accounting Standard 22- Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. The deferred tax liabilities as on 31st March, 2010 amounting to Rs. 1,72,799/- is the difference between the book depreciation and tax depreciation.

8. Previous year figures have been regrouped and rearranged wherever necessary to confirm to this years classification. The accounts includes Eco-Recycling Ltd figures of three months from 01-01-10 till 31-03-10 on account of the merger. Hence figures are not comparable with last year.

9. Contingent liability - Disputed Income Tax demand Rs. 1,281,837 for the A.Y. 1998-99.

10. There are no parties, which can be classified as small-scale undertakings to whom the company owes a sum exceeding Rs. 1 Lac, which is outstanding for more than 30 days.