Notes to Accounts of Midwest Gold Ltd.

Mar 31, 2025

2.13. Provisions, contingent liabilities and contingent asset

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
benefits will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. The expense relating to any provision is presented in the statement
of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time is recognized as
other finance expense.

A contingent liability is a possible obligation that arises from past events whose existence will
be confirmed by the occurrence or non-occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation that is not recognized because it is
not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the financial statements.

A contingent asset is not recognized unless it becomes virtually certain that an inflow of
economic benefits will arise. When an inflow of economic benefits is probable, contingent
assets are disclosed in the financial statements. Contingent liabilities and contingent assets
are reviewed at each balance sheet date.

2.14. Employee benefits

(i) Short term employee benefit obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employees'' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the balance
sheet.

(ii) Other long-term employee benefit obligations

The liabilities for accumulating compensated absences not expected to be settled wholly within
12 months after the end of the period in which the employees render the related service are
measured at the present value of expected future payments to be made in respect of services
provided using the projected unit credit method. The benefits are discounted using the
appropriate market yields at the end of the reporting period that have terms approximating
to the terms of the related obligation.

Re-measurements as a result of experience adjustments and changes in actuarial assumptions
are recognized in profit or loss. The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of when the actual settlement is expected
to occur.

(a) Defined benefit plans-Gratuity obligations

The liability in respect of defined benefit plans and other post-employment benefits is
calculated using the projected unit credit method consistent with the advice of qualified
actuaries. The present value of the defined benefit obligation is determined by discounting
the estimated future cash outflows using interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms to
maturity approximating to the terms of the related defined benefit obligation. The current
service cost of the defined benefit plan, recognised in the statement of profit and loss in
employee benefit expense, reflects the increase in the defined benefit obligation resulting

from employee service in the current year, benefit changes, curtailments and settlements. The
interest cost is calculated by applying the discount rate to the balance of the defined benefit
obligation. This cost is included in employee benefit expense in the statement of profit and
loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period
in which they arise.

2.15. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized
and no longer at the discretion of the entity, and not distributed on or before the end of the
reporting period. Dividend is recognised as a liability in the period in which the interim
dividends are approved by the Board of Directors, or in respect of the final dividend when
approved by shareholders.

2.16. Earnings per share

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

For calculating diluted earnings per share, the profit or loss after tax for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

2.17. Commitments

Commitments include the amount of purchase order (net of advances) issued to parties for
completion of assets and on account bonds executed with external authorities.

2.18. Recent accounting pronouncements (Standards issued but not yet effective)

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements
and based on its evaluation has determined that it does not have any significant impact in its
financial statement.

Pursuant to resolutions passed by our Board at their meeting held on January 31, 2025, our Company has approved the
allotment of 31,56,176 Equity Shares of face value of ''10 each with premium of Rs. 240/- each for consideration in cash
and also made allotment of 46,21,770 Equity Shares of face value of '' 10 each with premium of Rs. 75.61/- each in
exchange of 4,71,59,690 Equity Shares of Rs. 10 each of Midwest Energy Private Limited(i.e. for Consideration other
than cash).

Terms and rights attached to equity shares

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

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.

The weighted average duration of the defined benefit obligation is 6 years ( March 31, 2024: 8.49 years). The expected
future cash flows over the next years, which will be met out of planned assets, is as follows :

Risk Management

The Significant risks the company has in administering defined benefit obligation are :

Interest Rate Risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets
due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated
corporate bonds - the valuation of which is inversely proportional to the interest rate movements.

Salary Cost Inflation Risk: The present value of the Defined Benefit Obligation liability is calculated with reference to
the future salaries of participants. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

Note 27: Fair Value Hierarchy

The following table presents the fair value hierarchy of assets and liabilities:

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded
in an active market is determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or
more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the
case with listed instruments where market is not liquid and for unlisted instruments.

Note:

(i) The carrying amounts of trade payables, other financial liabilities, borrowings, cash and cash equivalents, other
bank balances, trade receivables , investments and loans are considered to be the same as their fair values due to their
short term nature.

(ii) Investments mentioned in note 4(i) include equity investments in Subsidiaries which are carried at costs and hence
are not required to be disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been
excluded from the above table.

Note 28: Financial Risk Management

The Company''s activities expose it to market risk and credit risk. The Company emphasis on risk management and has
an enterprise wide approach to risk management. The Company''s risk management and control procedures involve
prioritization and continuing assessment of these risks and device appropriate controls, evaluating and reviewing the
control mechanism.

(A) Credit Risk:

"Credit risk is the risk of potential loss that may occur due to failure of borrower/counterparty to meet the obligation
on agreed terms and conditions of the financial contract. Credit risk arises from financial assets such as cash and cash
equivalents, other bank balance ,trade receivables and other financial assets. The company has a credit risk management
policy in place to limit credit losses due to non-performance of financial counterparties and customers. The company
monitors the exposure to credit risk on an ongoing basis at various levels.

(I) Trade Receivable:

The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer. The
Company follows a ''simplified approach'' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on

Trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the company estimates
irrecoverable amounts based on the ageing of the receivable balances and historical experience. Individual trade
receivables are written off when management deems them not to be collectible. As there is no independent credit
rating of the customers available with the Company, the management reviews the credit-worthiness of its customers
based on their financial position, past experience and other factors. The company also provides for expected credit
losses based on the past experience where it believes that there is high probability of default.

(B) Market Risk:

Market Risk is the risk that the future value of a financial instrument will fluctuate due to moves in the market factors.
The most common types of market risks are interest rate risk and foreign currency risk.

• Interest Rate Risk

Interest rate risk is the risk that the future cash flows or the fair value of a financial instrument will fluctuate because of
changes in market interest rates. The Company manages its market interest rates by fixed rate interest. Hence, the
Company is not significantly exposed to interest rate risks.

• Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash fows of an exposure will fuctuate because of changes
in foreign exchange rates. The Company has substantial exposure to foreign currency risk due to the significant exports
made. Sales in other countries and purchases from overseas suppliers are exposed to risk associated with fluctuation in
the currencies of those countries vis-a-vis the functional currency i.e. Indian rupee. The Company manages currency
fluctuations by having a better geographic balance in revenue mix and ensures a foreign currency match between
liabilities and earnings. The Company believes that the best hedge against foreign exchange risk is to have a good
business mix. The Company is very cautious towards hedging as it has a cost as well as its own risks. The Company
continually reassesses the cost structure impacts of the currency volatility and engages with customers addressing
such risks.

(C) 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 manages it''s risk from it''s principle source of resources such as cash and cash equivalents , cash flows
that are generated from operations and other means of borrowings, to ensure, as far as possible , that it will always
have sufficient liquidity to meet the liabilities.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date:

The Company''s financial strategy aims to provide adequate capital for its growth plans for sustained stakeholder
value. The company''s objective is to safeguard its ability to continue as a going concern, so that it can continue to
provide returns for shareholders and benefits for other stakeholders. And depending on the financial market scenario,
nature of the funding requirements and cost of such funding, the Company decides the optimum capital structure. The
Company aims at maintaining a strong capital base so as to maintain adequate supply of funds towards future growth
plans as a going concern.

Confirmation letters have been issued in respect of trade receivables and other receivables and advances and trade
payables and other payables of the company but not responded in some cases. Balances where confirmations are not
forthcoming such balances are subject to reconciliation and consequential adjustment required, if any, would be deter-
mined/made on receipt of confirmation. However, in the opinion of the Board, assets other than Property, plant and
equipment and non-current investments have a value on realisation in the ordinary course of business at least equal to
the amount at which they are stated and provision for all known liabilities have been made.

Reasons for Variance:

Current Ratio: The increase in the current ratio is primarily attributable to a higher balance of cash and cash equivalents
as on the reporting date.

Debt-Equity ratio: The improvement in the debt-equity ratio is attributable to the issuance of equity shares at a premium,
which increased the company''s net worth. The company had negative equity in the previous year due to accumulated
losses.

Trade Receivables turnover ratio: Change on account of decrease in revenue.

Trade Payables: Change on account of decrease in Purchases.

Net Capital Turnover Ratio : Change on account of decrease in Revenue.

Net Profit Ratio : Change on account of Increase in losses.

Return on Investment: No investment income generated during the year

Note 37 (i): No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend
or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received
any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 37 (ii): No funds have been received by the Company from any person or entity, including foreign entity ("Funding I
Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

Note 38: Other Statutory Information "(i) The Company does not have any Benami property, where any proceeding
has been initiated or pending against the Company for holding any Benami property. "(ii) The Company does not have
any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. "(iii) The Company
have not traded or invested in Crypto currency or Virtual Currency during the financial year. "(iv) The Company does
not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961) "(v) The Company has not been declared as Wilful defaulter by any
Banks, Financial institution or Other lenders. "(vi) The Company has not entered into any scheme of arrangements
which has an accounting impact on current and previous financial year. "(vii) The Company has complied with the
number of layers prescribed under the Companies Act, 2013"

Note 39: The figures for the previous year have been reclassified / regrouped wherever necessary to conform to current
year''s classification.

The accompanying notes are an integral part of the financial statements
As per our report of even date

For and on behalf of the Board

For MAJETI & CO.

Chartered Accountants

Firm''s registration number: 015975S

Deepak Kukreti B. Satyanarayana Raju

Kiran Kumar Majeti Whole Time Director Whole Time Director

Partner DIN :03146700 DIN: 01431440

Membership Number: 220354 .

Anant Patwari P V Ramakrishna

Date : May 29, 2025 Company Secretary Chief Financial Officer

Place : Hyderabad

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Mar 31, 2024

2.13. Provisions, contingent liabilities and contingent asset

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 benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as other finance expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is not recognized unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements. Contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.14. Employee benefits

(i) Short term employee benefit obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to

be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for accumulating compensated absences not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of expected future payments to be made in respect of services provided using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(a) Defined benefit plans-Gratuity obligations

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. The current service cost of the defined benefit plan, recognised in the statement of profit and loss in employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. The interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation. This cost is included in employee benefit expense in the statement of profit and loss. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.

2.15. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, and not distributed on or before the end of the reporting period. Dividend is recognised as a liability in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.

2.16. Earnings per share

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

For calculating diluted earnings per share, the profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.17. Commitments

Commitments Include the amount of purchase order (net of advances) Issued to parties for completion of assets and on account bonds executed with external authorities.

2.18. Recent accounting pronouncements (Standards issued but not yet effective)

Ministry of Corporate Affairs (“MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Risk Management

The Significant risks the company has in administering defined benefit obligation are :

Interest Rate Risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated corporate bonds - the valuation of which is inversely proportional to the interest rate movements.

Salary Cost Inflation Risk: The present value of the Defined Benefit Obligation liability is calculated with reference to the future salaries of participants . Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

Note 27: Fair Value Hierarchy

The following table presents the fair value hierarchy of assets and liabilities:

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed instruments where market is not liquid and for unlisted instruments.

(i) The carrying amounts of trade payables, other financial liabilities, borrowings, cash and cash equivalents, other bank balances, trade receivables , investments and loans are considered to be the same as their fair values due to their short term nature.

Note 28: Financial Risk Management

The Company''s activities expose it to market risk and credit risk. The Company emphasis on risk management and has an enterprise wide approach to risk management. The Company''s risk management and control procedures involve prioritization and continuing assessment of these risks and device appropriate controls, evaluating and reviewing the control mechanism.

(A) Credit Risk:

"Credit risk is the risk of potential loss that may occur due to failure of borrower/counterparty to meet the obligation on agreed terms and conditions of the financial contract. Credit risk arises from financial assets such as cash and cash equivalents, other bank balance ,trade receivables and other financial assets. The company has a credit risk management policy in place to limit credit losses due to non-performance of financial counterparties and customers. The company monitors the exposure to credit risk on an ongoing basis at various levels.

(I) Trade Receivable:

The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer. The Company follows a ‘simplified approach'' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on Trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the company estimates irrecoverable amounts based on the ageing of the receivable balances and historical experience. Individual trade receivables are written off when management deems them not to be collectible. As there is no independent credit rating of the customers available with the Company, the management reviews the credit-worthiness of its customers based on their

(B) Market Risk:

Market Risk is the risk that the future value of a financial instrument will fluctuate due to moves in the market factors. The most common types of market risks are interest rate risk and foreign currency risk.

• Interest Rate Risk

Interest rate risk is the risk that the future cash flows or the fair value of a financial instrument will fluctuate because of changes in market interest rates. The Company manages its market interest rates by fixed rate interest . Hence ,the Company is not significantly exposed to interest rate risks.

• Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash ?ows of an exposure will ?uctuate because of changes in foreign exchange rates. The Company has substantial exposure to foreign currency risk due to the significant exports made. Sales in other countries and purchases from overseas suppliers are exposed to risk associated with fluctuation in the currencies of those countries vis-a-vis the functional currency i.e. Indian rupee. The Company manages currency fluctuations by having a better geographic balance in revenue mix and ensures a foreign currency match between liabilities and earnings. The Company believes that the best hedge against foreign exchange risk is to have a good business mix. The Company is very cautious towards hedging as it has a cost as well as its own risks. The Company continually reassesses the cost structure impacts of the currency volatility and engages with customers addressing such risks.

(C) Liquidity Risk:

Liquidity risk refers to the risk that the Company cannot meet its ?nancial obligations. The objective of liquidity risk management is to maintain suf?cient liquidity and ensure that funds are available for use as per requirements.

The Company manages it''s risk from it''s principle source of resources such as cash and cash equivalents , cash flows that are generated from operations and other means of borrowings, to ensure, as far as possible , that it will always have sufficient liquidity to meet the liabilities.

Note 29: Capital Management

The Company''s financial strategy aims to provide adequate capital for its growth plans for sustained stakeholder value. The company''s objective is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders. And depending on the financial market scenario, nature of the funding requirements and cost of such funding, the Company decides the optimum capital structure. The Company aims at maintaining a strong capital base so as to maintain adequate supply of funds towards future growth plans as a going concern.

Note 37: During the year, the company had negative other equity of Rs. 2,640.60 lakhs and incurred losses during the year and the preceding years. The Company is in the process of evaluating various business opportunities to turnaround its operations and the holding company has assured to continue the support. Accordingly, management believes that it is appropriate to prepare these financial statements on a going concern basis.

Note 38 (i): No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 38 (ii): No funds have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 39: Other Statutory Information “(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property. “(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. “(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year. “(iv) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) “(v) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders. “(vi) The Company has not entered into any scheme of arrangements which has an accounting impact on current and previous financial year. “(vii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

Note 40: The figures for the previous year have been reclassified / regrouped wherever necessary to conform to current year''s classification.

The accompanying notes are an integral part of the financial statements For and on behalf of the Board As per our report of even date

Deepak Kukreti B. Satyanarayana Raju ^{For MAJETI} & ^C°.

Whole Time Director Whole Time Director ^Chartered Acco^untaⁿts

DIN :03146700 DIN: 01431440 ^Firm''s regmtratkrn ^num^ben °1⁵9^75S

S Anand Reddy Anant Patwari ^{Kiran Kumar Majeti}

Chief Financial Officer Company Secretary ^Partⁿe^r

Membership Number: 220354

Place : Hyderabad Date : May 23, 2024

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

2. Gratuity and other post-employment benefit plans

Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @15 days of last drawn salary for each completed year of service.

3. The Company has made provision as per the Gratuity Act since there is only one employee who has completed above five years of service in the company.

4. Segment information

The Company has only one reportable business segment and one geographical segment under Accounting Standard 17 on Segment Reporting.

5. Relatives of key

Managerial personnel

1) Key Managerial Personel Mr. B S Raju Whole time director Mr.S. Ananda Reddy CFO Mr. T Thirumalesh Company Secretary Holding Company M/s. Midwest Granite Pvt. Ltd.

31 March,2015 31 March,2014 Rs. in Lacs Rs. in Lacs

6. Contingent liabilities

Contingent liability not provided for :

a. Un expired Bank Guarantee 14.40 14.40

b. Corporate Guarantee given by 175.00 175.00 M/s. Midwest Granite

Pvt. Ltd. In favor of President of India

c. Bond in favor of President of India . 10.00 10.00 on account of central excise

d. Bond in favor of President of India 468.23 468.23 on account of custom

f Customduty (Refer Note No. B -7) 15.01 15.0

Note No. B-7 - The Company has received a show cause Notice from customs Department towards differencial duty under Notification No.2/95 Dated 01/04/95 to the tune of Rs. 15.01 Lakhs. The company has made appeal against this and the same is pending before the concerned authorities.

7. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

As informed to us there are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at march 31 2015. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

8. Sundry debtors includes amount due from company under the same management Rs. -Nil- (Previous year Rs. -Nil- ) maximum amount due at any time during the year Rs. -Nil-

9. Sundry Creditors, Other Liabilities, Sundry Debtors, Loans and Advances are subject to confirmatiom. Sundry Debtors includes Rs. 399.42 lakhs outstanding more than three years out of which 132.32 lakhs claim was filed with united states bankruptcy court, USA since the party filed the bankruptcy petition with the said court.

10. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provisions for all known liabilities have been adequately made in the accounts.

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Mar 31, 2014

1 Gratuity and other post-employment benefit plans

Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each each completed year of service.

The Company has made provision as per the Gratuity Act since there is only one employee who has completed above five years of service in the company.

31 March,2014 31 March,2013 Rs. Rs.

2 Contingent liabilities

Contingent liability not provided for :

a. Un expired Bank Guarantee 14.40 14.40

b. Corporate Guarantee given by M/s. Midwest Granite 175.00 175.00 Pvt. Ltd. In favor of President of India

c. Bond in favor of President of India on account of central excise. 10.00 10.00

d. Bond in favor of President of India on account of custom 468.23 468.23

f Customduty (Refer Note No. B -7) 15.01 15.0

Note No. B-7 - The Company has received a show cause Notice from customs Department towards differencial duty under Notification No. 2/95 Dated 01/04/95 to the tune of Rs. 15.01 Lakhs. The company has made appeal against this and the status not known.

3 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

As informed to us there are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at march 31 2014. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. However no documents produced before us for our verification.

4 Sundry debtors includes amount due from company under the same management Rs. -Nil- (Previous year Rs. -Nil- ) maximum amount due at any time during the year Rs. -Nil-.

5 Sundry Creditors, Other Liabilities, Sundry Debtors, Loans and Advances are subject to confirmatiom. Sundry Debtors includes Rs. 399.42 lakhs outstanding more than three years out of which 132.32 lakhs claim was filed with united states bankruptcy court, USA since the party filed the bankruptcy petition with the said court.

6 In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provisions for all known liabilities have been adequately made in the accounts.

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Mar 31, 2013

1. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provision of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3 Gratuity and other post-employment benefit plans

Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each each completed year of service. At present no employees completed five years.

The Company has not provided any details & workings for defined benefit plan which is required as per revised AS 15. In the absence of these details we could not report the quantum of expenses & provisions.

31 March,2013 31 March,2012 Rs. Rs.

4 Contingent liabilities

Contingent liability not provided for :

a. Un expired Bank Guarantee 14.40 14.40

b. Corporate Guarantee given by M/s. Midwest Granite 175.00 175.00 Pvt. Ltd. In favor of President of India

c. Bond in favor of President of India on account of central excise. 10.00 10.00 d. Bond in favor of President of India on account of custom 468.23 468.23

f Customduty (Refer Note No. B -7) 15.01 15.01

Note No. B-7 - The Company has received a show cause Notice from customs Department towards differencial duty under Notification No.2/95 Dated 01/04/95 to the tune of Rs. 15.01 Lakhs. The company has made appeal against this and the status not known.

5 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

As informed to us there are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at march 31 2013. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. However no documents produced before us for our verification.

6 Sundry debtors includes amount due from company under the same management Rs. -Nil- (Previous year Rs. -Nil- ) maximum amount due at any time during the year Rs.-Nil- 32 Sundry Creditors, Other Liabilities, Sundry Debtors, Loans and Advances are subject to confirmatiom.

Sundry Debtors includes Rs. 399.73 lakhs outstanding more than three years out of which 132.32 lakhs claim was filed with united states bankruptcy court, USA since the party filed the bankruptcy petition with the said court.

7 In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provisions for all known liabilities have been adequately made in the accounts.

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Mar 31, 2012

1. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provision of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

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Mar 31, 2010

1. Contingent Liability not provided for:

Particulars As at As at 31.03.2010 31.03.2009 Rs. in Lakhs Rs. in Lakhs

a. Un expired Bank Guarantee 14.40 14.40

b. Corporate Guarantee given by M/s. Midwest Granite Pvt Ltd in favor of President of India 175.00 175.00

c. Bond in favor of President of India on account of Central Excise. 10.00 10.00

d. Bond in favor of President of India on account of Custom 468.23 468.23

E. Custom Duty 13.54 13.54

f. Customs Duty (Refer Note No B-7) 15.01 15.01

2. The Company has received a Show Cause Notice from the Customs Department for a demand of Rs.13.54 Lakhs towards differential duty on DTA Clearances. The Company has deposited an amount of Rs. 13.54 Lakhs under protest and appealed before the Customs Authorities. Subsequently the company has received the Refund of the same against which the customs authorities have fled an Appeal.

3. The Company has received a Show Cause Notice from Customs Department towards differential duty under Notifcation No 2/95 Dated 1/4/95 to the tune of Rs.15.01 Lakhs. The company has decided to go for appeal against this at Appellate Tribunal.

4. AUDITORS FEE

5. Directors Remuneration : Rs . NIL (Prevyous year Rs. NIL)

6. Value of Imports on C.I.F. basis.

7. Sundry Debtors includes amount due from Company under the same management Rs. –Nil- (Previous year Rs. 7.97 Lakhs) maximum amount due at any time during the year Rs. –Nil-.

8. Secured Loans, Unsecured Loans, Sundry Creditors, Other liabilities, Sundry Debtors, Loans & Advances are subject to confrmation.

8. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

10. Sundry Creditors include Rs Nil (previous year Rs. Nil ) pertaining to Small Scale Industrial Undertakings (SSI) to the extent such parties have been identifed from the available information/documents. The name of SSI to whom the Company owes a sum exceeding Rs. 1 lakh and outstanding for more 30 days are - Nil. -

11. EARNING PER SHARE

Earning Per Share is calculated by dividing the Proft attributable to the Equity Share Holders by weighted average number of equity shares outstanding during the year as under

12. AS -15

The Company has not provided any details & workings for defned beneft plan which is required as per revised AS 15. In the absence of these details we could not report the quantum of expenses & provisions.

13. RELATED PARTY DISCLOSURES

Following disclosure has been made as per the requirements of Accounting Standard 18 on “Related Party Disclosures” (AS 18), issued by the Institute of Chartered Accountants of India

Name of the Related parties and description of their relationship:

1. Key Managerial Personnel : Mr. K Raghava Reddy Director

: Mr. P.K. Taygi Director

: Mr. B.S. Raju Whole Time Director

2. Associate Companies : Midwest Granite (P) Ltd

: Victorian Granites (P) Ltd

: Reliance Granite (P) Ltd

: RLP Granite (P) Ltd

Note:

(a) There is no amount Written Off or Written back during the year in respect of debts due from or to related parties.

(b) There are no other entities where the control exists as defned in AS-18.

14. BUSINESS SEGMENTS

The Company has only one reportable business segment and geographical segment and hence no further disclosure is required under Accounting Standard 17 on Segment Reporting.

15. DEFERRED TAX

In accordance with Accounting Standard –22 "Accounting for Taxes on Income" The Company has reviewed the deferred tax Assets and Liability at the end of the year. The net deferred tax liability is estimated to Rs.345.24 Lakhs( previous Year Rs. 334.05 lakhs.) The deferred tax liability is mainly on account of difference in carrying value of fxed assets between book fgures and income tax records.

16. In terms of Accounting standard 28- Impairment of Assets issued by ICAI, the Management has reviewed its fxed assets and the difference between the carrying amount and recoverable value of relevant assets was not material. Hence, provision for impairment loss is not considered necessary to be made in the books.

17. Amounts have been rounded off to the nearest Rupee.

18. Previous years fgures have been rearranged / regrouped wherever necessary so as to correspond with current year’s fgures.

19. Schedules "A" to “N” form an integral part of Balance Sheet and the Proft and Loss Account and have been duly authenticated.

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Mar 31, 2009

1. Contingent Liability not provided for:

Particulars As at As at 31.03.2009 31.03.2008 Rs. in Lakhs Rs. in Lakhs

a. Un expired Bank Guarantee 14.40 14.40

b. Corporate Guarantee given by M/s. Midwest Granite Pvt Ltd in favor of President of India 175.00 175.00

c. Entry tax demand raised by tax authorities for which relief requested to BIFR & they directed Sales Tax authority to give relief as per Standard Package, which is pending. - 15.21

d. Bond in favor of President of India on account of Central Excise. 10.00 10.00

e. Bond in favor of President of India on account of Custom 468.23 468.23

f. Sales Tax (Refer Note No. B-4) - 24.43

g Custom Duty 13.54 13.54

h Customs Duty (Refer Note No B-7) 15.01 15.01

2. The Company has received a Show Cause Notice from the Customs Department for a demand of Rs. 13.54 Lakhs towards differential duty on DTA Clearances. The Company has deposited an amount of Rs. 13.54 Lakhs under protest and appealed before the Customs Authorities. Subsequently the company has received the Refund of the same against which the customs authorities have filed an Appeal.

3. The Company has received a Show Cause Notice from the Sales Tax Department for an demand of Rs. -Nil- (Previous Year Rs 24.43 Lakhs) towards Local Sales Tax payable on certain irregularities observed by the Customs Department and Sales Tax Department for which we have been informed that the Company has appealed against this at the appellate tribunal.

4. The Company has received a Show Cause Notice from Customs Department towards differential duty under Notification No 2/95 Dated 1/4/95 to the tune of Rs.15.01 Lakhs. The company has decided to go for appeal against this at Appellate Tribunal.

5. Directors Remuneration.

Directors Sitting Fees : Rs . NIL (Prevyous year Rs. NIL)

6. Sundry Debtors includes amount due from Company under the same management Rs. 7.97 Lakhs (Previous year Rs. 11.69 Lakhs) maximum amount due at any time during the year Rs. 7.97 Lakhs.

7. Secured Loans, Unsecured Loans, Sundry Creditors, Other liabilities, Sundry Debtors, Loans & Advances are subject to confirmation.

8. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

9. Sundry Creditors include Rs Nil (previous year Rs. Nil ) pertaining to Small Scale Industrial Undertakings (SSI) to the extent such parties have been identified from the available information/documents. The name of SSI to whom the Company owes a sum exceeding Rs. 1 lakh and outstanding for more 30 days are - Nil. -

10. AS -15

The Company has not provided any details & workings for defined benefit plan which is required as per revised AS 15. In the absence of these details we could not report the quantum of expenses & provisions.

11. RELATED PARTY DISCLOSURES

Following disclosure has been made as per the requirements of Accounting Standard 18 on "Related Party Disclosures" (AS 18), issued by the Institute of Chartered Accountants of India

Name of the Related parties and description of their relationship:

1. Key Managerial Personnel

Mr. B.S. Raju Whole Time Director

Mr. K Raghava Reddy Director

Mr. Aja Babu Mali Reddy Director

Mr. P.K. Taygi Director

2. Associate Companies

Midwest Granite (P) Ltd Victorian Granite (P) Ltd Reliance Granite (P) Ltd RLP Granite (P) Ltd

12. BUSINESS SEGMENTS

The Company has only one reportable business segment and geographical segment and hence no further disclosure is required under Accounting Standard 17 on Segment Reporting.

13. DEFERRED TAX

In accordance with Accounting Standard -22 " Accounting for Taxes on Income" The Company has reviewed the deferred tax Assets and Liability at the end of the year. The net deferred tax liability is estimated to Rs.334.05 Lakhs( previous Year Rs.201.37 lakhs.) The deferred tax liability is mainly on account of difference in carrying value of fixed assets between book figures and income tax records.

14. In terms of Accounting standard 28- Impairment of Assets issued by ICAI, the Management has reviewed its fixed assets and the difference between the carrying amount and recoverable value of relevant assets was not material. Hence, provision for impairment loss is not considered necessary to be made in the books.

15. Amounts have been rounded off to the nearest Rupee.

16. Previous years figures have been rearranged / regrouped wherever necessary so as to correspond with current years figures.

17. Schedules "A" to "P" form an integral part of Balance Sheet and the Profit and Loss Account and have been duly authenticated.