Notes to Accounts of Padmanabh Industries Ltd.

Mar 31, 2024

(ix) Provisions and contingencies:

Provisions: A provision is recognized when the Company has a present obligation as a result of
past events 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. 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 time value of money
is material).

Contingent liabilities: There is no identified contingent liabilities as on balance sheet date.

(x) Cash and cash equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term
balances (with an original maturity of three months or less from the date of acquisition) and
highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in
banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on
demand, book overdraft and are considered part of the Company’s cash management system.

(xi) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a noncash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

(xii) Employee Benefits: Short Term Employee Benefits Employee benefits payable wholly within
twelve months of rendering the services are classified as short-term employee benefits and
recognized in the period in which the employee renders the related service. These are re-cognized
at the undiscounted amount of the benefits expected to be paid in exchange for that service.

(xiv) In the opinion of the board of Directors, Current Assets, Loans and Advances a value of
realization equivalent to the amount at which they are stated in the Balance Sheet. Adequate
provisions have been made in the accounts for all the known liabilities

(xv) Fair Value:

The Company measures certain financial instruments at fair value at each balance sheet date. The
fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their best
economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as under, based on the lowest level
input that is significant to the fair value measurement as a whole:

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

B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.

C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

This note summarizes the accounting policy for fair value. Other fair value related disclosures are
given in the relevant notes.

Details of foreign exchange mentioned above are certified and provided by the Management of the company.

(xvii) As certified by the company that it was received written representation from all the directors, that companies
in which they are directors had not defaulted in terms of section 164(2) of the companies Act, 2013, and the
representation from directors taken in Board that Director is disqualified from being appointed as Director of the
company.

(xviii) Earnings per share (EPS):

Basic earnings per share are computed using the weighted average number of equity shares
outstanding during the period. Diluted EPS is computed by dividing the profit or loss attributable
to ordinary equity holders by the weighted average number of equity shares considered for
deriving basic EPS and also weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

(xix) Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equities shares outstanding during the year.

(b) Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded
off to the nearest lacs as per the requirement of Schedule III, unless otherwise
stated.

(xx) Other Note:

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, for the financial year commencing April 1, 2023, every
company which uses accounting software for maintaining its books of account, shall use only
such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date
when such changes were made and ensuring that the audit trail cannot be disabled. The
interpretation and guidance on what level edit log and audit trail needs to be maintained evolved
during the year and continues to evolve.

In the company, the accounting software has a feature of audit trail, but it was disable at an
application level for maintenance of books of accounts and relevant transactions. However, the
global standard ERP used by the Company has not been enabled with the feature of audit trail log
at the database layer to log direct transactional changes, due to present design of ERP. This is

being taken up with the vendor. In the meanwhile, the Company continues to ensure that direct
write access to the database is granted only via an approved change management process.

(xxi) Related Party Disclosure:

List of related parties where control exists and also related parties with whom transactions have
taken place and relationships, has been disclosed in Annexure - 1 to the Notes to Accounts.

For and on behalf of the board of directors As per our attached report of even date

For, Padmanabh Industries Limited For, V S S B & Associates

Chartered Accountants
Firm No. 121356W

Chiragkumar Parmar Shvetalben Dataniya (Vishves A. Shah)

Managing Director/CFO Director (Partner)

(DIN: 09432185) (DIN: 09629900) M No:-109944

UDIN: 24109944BKACSD5356

Pankaj Kewalramani

Company Secretary

Place : Ahmedabad ^{Place : Ahmedabad}

_{Date : 30/05/2024} ^{Date : 30/05/2024}

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Mar 31, 2018

1) Basis of Preparation of Financial Statements:-

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. These financial statements are the first financial statements under Ind AS.

The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention except certain financial assets and liabilities are measured at fair value (refer accounting policy regarding financial instruments).

(iii) Classification of assets and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

Notes to Accounts:

1) Contingent Liability not provided for: Rs.NIL

2) The balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation.

3) As explained to us, the provisions of Provident Fund Act, ESI Act, and Gratuity Act are not applicable to the Company.

4) Segment Information:

Based on the management approach as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (''CODM'') evaluates the Group performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments viz. Trading in Fabrics Business, Electronics and Electric Equipment Business and Agricultural Product Business.

Geographical information:

The Company''s operations are based only in India. Hence all of the revenues and the non current assets of the Company are located in India.

2) The public issue expenses and deferred revenue expenditure incurred are written off over a period of 10 years.

3) According to the information available with the Company, there are no amounts as at 31st March, 2018 due to suppliers in amounts outstanding for more than Rs.1,00,000/- for more than 30 days who constitute a "Micro, Small and Medium Enterprises" as per MSMED Act, 2006.

4) The Board of Directors is of the opinion that all the liabilities have been adequately provided for.

5) There is no operational activity in the business of shares and securities, lease and in finance field.

6) We are informed by the management that there is no decline in price in respect of unquoted Investment.

7) There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

8) During the current year ended 31 March, 2018, pursuant to the approval of shareholders at the Extra ordinary General Meeting held on 27th June, 2017, the Company has issued and allotted an aggregate of 15,00,000 Equity Shares of Rs.10 each at a price of Rs.61 Per share (inclusive of a premium of Rs.51 Per equity share) on preferential allotment basis to various parties. Such preferential shares shall rank pari passu in all respects including, as to dividend, with existing fully paid up equity shares of face value of Rs.10 each and shall also be subject to lock-in, in accordance with the provisions of SEBI (issue of Capital and Disclosure Requirements) Regulations.

Disclosure required in terms of Clause 13.5A of Chapter XIII on Guidelines for preferential issues, SEBI (Disclosure and Investor Protection) Guidelines, 2000 :

The Company has received an amount of Rs. 9,15,00,000 towards share application money and the allotment of equity shares was made on Dt.17/07/2017 on completion of required formalities. As per the objects of the preferential allotment, the end use of the funds raised was towards meeting the fund requirements of subsidiary/ ies and to incorporate new subsidiaries; to meet long term working capital requirements and to fund expansion including diversification of new business activities. The entire amount of Rs. 9,15,00,000 has been utilised during the year. Besides, Company has advanced for acquisition of Granite mining rights situated at Survey No.7, Paiki area 1-60-00, District Sabarkantha, Taluka Vadali, Village Jamrela for 20 years as also for acquisition of NonBanking Finance Company.

9. Financial Instruments and Related Disclosures

I. Capital Management

The Company does not have substantial borrowing and aims at maintaining a strong capital base so as to maintain adequate supply of funds towards future growth plans as a going concern.

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

III. Expected Credit Loss

The company has receivable balances on commercial trades, which are generally short term in nature. Further, financial instruments such as mutual funds and tax free bonds are made in high quality papers/ counterparties. Accordingly, the Company has concluded that no provision for expected credit loss is required.

IV. Financial Risk Management

There are no significant market risk or liquidity risk to which the Company is exposed.

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Mar 31, 2013

- Balance of cash on hand at the end is accepted as certified by the management of the company.

- Balance of sundry Debtors, Creditors, unsecured loans, Loans & advances are subject to the confirmation of parties.

-" The expense of electricity, telephone and maintenance include expense of properties owned by the company and occupied by the directors of the company.

- Provision in respect of Auditors Remuneration is done.

- Non-Current Investment-quoted valued at cost and certified by the management of the company.

For and on behalf of the board of directors As per our attached report of even date

(a) Detailed note on the terms of the rights, preferences and restrictions relating to each class of shares including restrictions on the distribution of dividends and repayment of capital.

i) The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. During the year ended 31st March 2012, the Company has not declared any dividend.

ii) 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.

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Mar 31, 2012

(i) The Company has only one class of Equity Shares having a par value of Rs. 10/- par share. Each holder of Equity Share is entitled to one vote per share. The Company declares end pays dividend in Indian Rupees. During the year ended 31st March 2012, the Company has not declared any dividend.

(ii) In the event of liquidation of the Company, the hold ere of Equity shares will be entitled Id receive remaining assets of the Company, after distribution of ail preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders

(a) Recondition share- outstanding at beginning and at the end of the reporting period

(b) Debited note on share reserved to be under option- and contracts) for the sale of share/ divestment Including the term- and condition.

The company does not had any such contract commitment as on re porting date.

(c) Detailed term- of my convertible Into shares, e.g. in the com of convertible warrantor, debenture-, bonds etc. The company does not had any securities convertible into shares as on reporting date.

- Balance of cash on hand at the end is accepted as certified by the management of the company.

- Balance of sundry Debtors, Creditors, unsecured loans, Loans & advances are subject to the confirmation of parties.

- The expense of electricity, telephone and maintenance include expense of properties owned by the company and occupied by the directors of the company.

- Provision in respect of Auditors Remuneration is done.

- Non-Current Investment-quoted valued certified by the management of the company.

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Mar 31, 2010

- The Company deals in trading in **.

There is closing Stock of Rs. ** at the close of the year.

- Balance of cash on hand at the end is accepted as certified by the management of the company.

- Balance of sundry Debtors, Creditors, unsecured loans, Loans & advances are subject to the confirmation of parties.

- In view of the insignificant amount of Net deferred tax liability/ net deferred tax asset on the date of balance sheet, no adjustment in this regard has been made.

- The expense of electricity, telephone and maintenance include expense of properties owned by the company and occupied by the directors of the company.

- The figures of the previous year are regrouped or rearranged wherever it is necessary.

- Provision in respect of Auditors Remuneration.