Notes to Accounts of Lippi Systems Ltd.

Mar 31, 2024

XVII.Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefit will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates. Contingent
liabilities are not recognized but are disclosed in the notes. Contingent assets are
neither recognised nor disclosed in the financial statements

XVMI.Eamings per share

Basic Earnings per Share is calculated by dividing the net profit/ loss for the year
attributable to ordinary equity holders by the weighted average number of equity
shares outstanding during the year.

Diluted Earnings Per Share is calculated by dividing the profit attributable to equity
holders (or owners) of the Company 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

XlX.Segment Reporting

The segments have been identified taking into account the nature of the products /
services, geographical locations, nature of risks and returns, internal organization
structure and internal financial reporting system. 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.

The Company''s principal financial liabilities comprise loans and borrowings in domestic
& foreign currency, trade payables and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal
financial assets include loans, trade and other receivables, and cash and short-term
deposits that derive directly from its operations.The Company has exposure to the
following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above
risks and how the Company is managing such risk.

The company''s Board of Directors has overall responsibility for the establishment and
oversight of the company''s risk management framework. The company''s risk
management policies are established to identify and analyse the risks faced by the
company, to set appropriate risk limits and controls and to monitor risks. Risk

management policies and systems are reviewed regularly to reflect changes in
market conditions and the company''s activities.

25.2 Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from
the Company''s receivables from customers and others. In addition, credit risk arises
from financial guarantees.

The Company implements a credit risk management policy under which the Company
only transacts business with counterparties that have a certain level of credit
worthiness based on internal assessment of the parties, financial condition, historical
experience, and other factors. The Company''s exposure to credit risk is influenced
mainly by the individual characteristics of each customer. The Company has established
a credit policy under which each new customer is analyzed individually for
creditworthiness.

The Company establishes an allowance for impairment that represents its estimate of
incurred losses in respect of trade and other receivables. The main components of this
allowance are a specific loss component that relates to individually significant
exposures, and a collective loss component that are expected to occur. The collective
loss allowance is determined based on historical data of payment statistics for similar
financial assets. Debt securities are analyzed individually, and an expected loss shall be
directly deducted from debt securities.

Credit risk also arises from transactions with financial institutions, and such transactions
include transactions of cash and cash equivalents and various deposits. The Company
manages its exposure to this credit risk by only entering into transactions with banks
that have high ratings. The Company''s treasury department authorizes, manages, and
oversees new transactions with parties with whom the Company has no previous
relationship.

The Company periodically assesses the financial reliability of customers, taking into
account the financial condition, current economic trends and ageing of accounts
receivable. Individual risk limits are set accordingly.

Liquidity risk is the risk that the Company will encounter 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 liquidity is to ensure, as
far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company''s reputation.

The company''s treasury department is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risks are
overseen by senior management. Management monitors the company''s net liquidity
position through rolling forecast on the basis of expected cash flows.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may
result from a change in the price of a financial instrument. The value of a financial
instrument may change as a result of changes in the interest rates, foreign currency
exchange rates, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits, foreign currency receivables, payables and loan
borrowings. The goal of market risk management is optimization of profit and
controlling the exposure to market risk within acceptable limits.The Company manages
market risk through a treasury department, which evaluates and exercises independent
control over the entire process of market risk management. The treasury department
recommends risk management objectives and policies, which are approved by Senior
Management and the Audit Committee. The activities of this department include
management of cash resources, borrowing strategies, and ensuring compliance with
market risk limits and policies. The company does not have any exposure to rupee term
loans from banks or any foreign currency borrowings and also there are no exports
during the year. There are no foreign commercial transactions which are denominated
in a currency that is not the company''s functional currency (INR). Further there are no
imports of raw materials during the year. Hence disclosures with regards to Interest rate
risk, foreign currency risk, commodoty price risk and sensitivity analysis are not
applicable.

For the purposes of the Company''s capital management, capital includes issued capital
and all other equity reserves. The primary objective of the Company''s Capital
Management is to maximize shareholder value. The company manages its capital
structure and makes adjustments in the light of changes in economic environment and
the requirement of the financial covenants.

27. ADDITIONAL REGULATORY INFORMATION

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

(b) The Company has not advanced or loaned or invested funds to any promoter(s),
Director(s), KMP(s) or Related Partie.

(c) The Company does not have any benami property, where any proceeding has been
initiated or pending against the Company for holding any benami property.

(d) The requirement of filing quarterly returns or statements of current assets with
banks or financial institutions is not applicable since the company does not having
any borrowings with the banks / financial institutions.

(e) The Company is not declared wilful defaulter by and bank or financials institution
or lender during the year.

(f) The Company does not have any transactions with companies which are struck off.

(g) The Company does not have any charges or satisfaction which is yet to be
registered with ROC beyond the statutory period.

(h) The company does not have any subsidiary and nor the company is the subsidiary
of any other company. Thus, reporting under clause (87) of section 2 of the
Companies Act 2013 read with Companies (Restricition on number of Layers)
Rules, 2017 is not applicable.

(j) No scheme of arrangements have been approved by the competent authority. Hence,
reporting under this point is not applicable.

(k) (I) 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:

(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.

(II) 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.

(l) There are no transactions not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961

(m) The Company is not covered under section 135 hence reporting under this point is
not applicable.

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

28. In terms of Ind AS 36, the management has reviewed its fixed assets and arrived at the
conclusion that impairment loss which is difference between the carrying amount and
recoverable value of assets, was not material and hence no provision is required to be
made.

29. The company evaluates events and transactions that occur subsequent to the balance
sheet date but prior to the approval of the financial statements to determine the
necessity for recognition and/or reporting of any of these events and transactions in the
financial statements. As of May 30, 2024, there were no subsequent events to be

recognized or reported that are not already previously disclosed.

30. The Code on Social Security, 2020 (''Code'') relating to employee benefits during
employment and post-employment benefits received Presidential assent in September
2020. The Code has been published in the Gazette of India. However, the date on which
the Code will come into effect has not been notified and the final rules/interpretation
have not yet been issued. The Company will assess the impact of the Code when it
comes into effect and will record any related impact in the period the Code becomes
effective.

31. Previous year''s figures have been regrouped/reclassified wherever necessary to
correspond with the current year''s classifications/disclosures and to conform with the
requirements of the amended Schedule III to the Companies Act, 2013.

As per our Report of even date For and on behalf of the Board

For Ashok Dhariwal & Co.

Chartered Accountants

Registration No.: 100648W

(CA Ashok Dhariwal) Nandlal J. Agarwal Kunal Nandlal Agrawal

Partner (Chairman & M.D.) (Director)

Membership No.: 036452 (DIN : 00336556) (DIN:00169324)

Place : Ahmedabad Gopal D. Sharma Darshan B. Shah

Date : 30.05.2024 (CFO) (Company Secretary)

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Mar 31, 2015

1. Rights, Preferences and Restrictions Attached to each class of shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share and each holder of the Equity Shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders.

2. Details of Loans:

i Outstanding Term loan of Rs. 289.34 Lakhs (including an amount of Rs. 64.32 Lakhs classified under current maturities of long term debt) relates to acquisition of 0.75 MW windmill and other indigenous machinery. It is secured by the hypothecation of the P&M acquired from the said loan.The loan is repayable in 60 graded monthly installments and is expected to be repaid by September, 2018.

II. Outstanding Term loan of Rs. 42.19 Lakhs (including an amount of Rs. 13.50 Lakhs classified under current maturities of long term debt) relates to acquisition indigenous plant and machinery. It is secured by the hypothecation of the P8tM acquired from the said loan. The loan is repayable in 60 equal monthly installments of Rs. 1.125 Lakhs each and is expected to be repaid by October, 2018.

III. Indian Overseas Bank has sanctioned term loan of Rs. 97.5 Lakhs, (o/s Rs. 11.79 Lakhs as on March 31, 2015) for the purchase of imported plant and machinery costing Rs. 130 Lakhs. The said term loan is repayable in 60 equal monthly installments of Rs. 1,62,500 each and is expected to be repaid by July, 2018. The loan is proposed with buyers credit facility for a period of 3 years, hence the loan installments to be placed as recurring deposit every month. On completion of 36 months, loan to be disbursed, less margin and TL installments built-up during the preceding 36 months. The outstanding term loan is secured by the hypothecation of the P&M acquired from the said loan. The company has also availed Buyers Credit facility of Rs. 42.63 Lakhs fortheimport of copper.

"The company has provided the following as collateral securities for the above loans and working capital facilities:

(a) Equitable mortgage followed by registered memorandum on Factory Land & Building situated at 540/P-2, Village Rakanpur Sola, Satej Road, Kalol in the name of the Company, (b) Plant & Machinery and other Misc. Assets of the Company and (c) Freehold NA Land at village Ranchodpura, Taluka Kalol in the name of Satya Prakash Infrastructure Pvt. Ltd. Further the loans are backed by the personal guarantee of Shri Nandlal Agrawal, Shri Sanjay Agrawal and Shri Kunal Agrawal."

iv. The outstanding vehicle loans of Rs. 9.48 Lacs (classified under current maturities of long term debt) are secured against hypothecation of the respective vehicles. The total outstanding is expected to be repaid by October, 2015.

3. The Cash Credit facilities have been secured against hypothecation of stocks and book debts of the company present and future & the entire current assets of the company. For details on securities offered as collateral, refer note 3.1.

4. MAT CREDIT ENTITLEMENT:

Based on the assessment of the future taxable income, the Management is of the opinion that there is convincing evidence that the company will pay normal income tax within the specified period during which MAT credit is available forset off.

5. CONTINGENT LIABILITIES AND COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account (Net of Advances) is for Rs. 1,51,621 ( Rs. 2,43,318)

6. The company has made provision in the accounts for gratuity based on acturial valuation. The particulars under the AS 15 (Revised) furnished below are those which are relevant and available to company for this year.

7. In the opinion of the management and to the best of their knowledge and belief, the value underthe head of current and non-current assets (otherthan fixed assets and non- current investments) are approximately of the value stated, if realised in ordinary course of business, except unless stated otherwise. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

8. The company is organised into two main business segments, namely production of engraving cylinders and trading of copper and paper. The Company is also generating power from wind turbine generator. Wind mill is not a reportable segment as per AS 17 "Segment Reporting" as the power generated by wind mill is exclusively used for captive consumption in manufacturing unit. The disclosures regarding the segment information is as follows

9. RELATED PARTY DISCLOSURES:

As per the Accounting Standard 18, disclosure of transactions with related parties (as identified by the management), as defined in the Accounting Standard are given below:

10 Amt. in Rs.

RELATIONSHIP 2014-15 2013-14

1. Holding Company: Nil Nil

2. Subsidiary Company: Nil Nil

3. Key Managerial personnel & their relatives :

Mr. Nandlal Agarwal, (Managing Director)

Mr. Sanjay C. Agrawal, Non-Executive Director

Mr. Kunal N. Agarwal, Director

Mr. Minesh C. Shah, Director

Ms. Neha N Agrawal, Director (upto 14/04/2015)

Mrs. Shashi Gupta, Relative of Director

Mr. Gopalkrishna D. Sharma, Chief Financial Officer

Mr.Darshan B. Shah, Company Secretary

11. There are no earnings in foreign currency in financial year 2014-15. (Previous year NIL)

12. The Previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation, further the figures have been rounded off to the nearest rupee.

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Mar 31, 2014

1.SHARE CAPITAL

(b) Rights, Preferences and Restricts ons Attached to each class of shares The Company has only one class of Equity Shares having a par value of Rs. 10/- per share and each holder of the Equity Shares is entitled one vote per share.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the company, after distribution of ail preferential ! amounts. However, no preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders. ''

1.1 Details of Loans:

i. Outstanding Term loan of Rs. 323.63 Lacs (including an amount of Rs. 45.90 Lacs classified under current maturity of long term borrowings) relates to acquisition of 0.75 MW windmill and other indigenous machinery. It is secured by the hypothecation of the P&M acquired from the said loan.The loan in repayable in 60 graded monthly installments and is expected to be repaid by September, 2018.

ii. Outstanding Term loan of Rs. 54.56 Lacs (including an amount of Rs. 13.50 Lacs classified under current maturity of long term borrowings) relates to acquisition indigenous plant and machinery. It is secured by the hypothecation of the P&M acquired from the said loan. The loan in repayable in 60 equal monthly installments of Rs. 1.125 Lacs each and is expected to be reapid by October, 2018.

iii. Indian Overseas Bank has sanctioned term loan of Rs. 97.5 Lacs, (o/s Rs. 15.29 Lacs as on March 31,2014) for the purchase of imported plant and machinery costing Rs. 130 Lacs. The said term loan is repayable in 60 monthly installments of Rs. 1,62,500 each and is expected to be repaid by July, 2018. The loan is proposed with buyers credit facility for a period of 3 years and the loan installments to be placed as term deposits every month. On completion of 36 months, loan to be disbursed, less margin and TL installments built-up during the preceding 36 months. The outstanding term loan is secured by the hypothecation of the P&M acquired from the said loan.

"The company has provided the following as collateral securities for the above loans and working capital facilities:

(a) Equitable mortgage followed by registered memorandum on Factory Land & Building situated at 540/P-2, Village Rakanpur Sola, Satej Road, Kalol in the name of the Company, (b) Plant & Machinery and other Misc. Assets of the Company and (c) NA Land at Milage Ranchodpura in the name of Satya Prakash Infrastructure Pvt. Ltd. Further the loans are backed by the personal guarantee of Shri Nandial Agrawal & Shri Sanjay Agrawal along with corporate guarantee of Satya Prakash Infrastructure Pvt. Ltd."

iv. The outstanding vehicle loans of Rs. 41.84 Lacs (including an amount of Rs. 32.36 Lacs classified undercurrent maturity of long term borrowings) are securedagainsthypothecationof the respective vehicles. The total outstanding is expected to be repaid by October, 2015.

2.1 The Cash Credit facilities have been secured against hypothecation of stocks and book debts of the company present and future & the entire current assets of the company. For collateral securities offered, refer point 3.1.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of the information collected by the management. This has been relied upon by the auditors.

3.1 Other Payables include the statutory dues and advance from customers.

4.1 MAT CREDIT ENTITLEMENT:

Based on the assessment of the future taxable income, the Management is of the opinion that there is convincing evidence that the company will pay norma! income tax within the specified period during which MAT credit is availa ble for set off.

5. CONTINGENT LIABILITIES AND COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account (Net of Advances) is for Rs. 2,43,318 ( Rs. 6,15,088)

5.1 The company has made provision in the accounts for gratuity based on acturial valuation. The particulars under the AS 15 (Revised) furnished below are those which are relevant and available to company for this year.

The estimates of future salary increase, considered in act uarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market. .

6. In the opinion of the management and to the best of their knowledge and belief the value underthe head of current and non-current assets (other than fixed assets and non- current investments) are approximately of the value stated, if realised in ordinary course of business, except unless stated otherwise. The provision for all known liabilities is adequate and not in excess of amount considered reasona bly necessary.

7. There are no earnings in foreign currency in financial year 2013-14. (Previous year NIL)

8. The Previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation, further the figures have been rounded off to the nearest rupee.

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Mar 31, 2013

1.1 The company has made provision in the accounts for gratuity based on acturial valuation. The particulars under the AS 15 (Revised) furnished below are those which are relevant and available to company for this year.

The estimates of future salary increase, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market.

Current and non current classification is done based on actuarial valuation certificate.

2. In the opinion of the management and to the best of their knowledge and belief, the value under the head of current and non-current assets (other than fixed assets and non- current investments) are approximately of the value stated, if realised in ordinary course of business, except unless stated otherwise. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

3. The company is organised into two main business segments, namely production of engraving cylinders and trading of copper and paper. The disclosures regarding the segment information is asfollows:

4. The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation. Further the figures have been rounded off to the nearest rupee.