Notes to Accounts of Shri Gang Industries and Allied Products Ltd.

Mar 31, 2024

iv. 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. The dividend proposed, if any, by the Board of Directors is subject to the approval of shareholders except in case of interim dividend. In event of

liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount in proportion of their shareholding.

v. The Company has not issued any shares for consideration other than cash or as bonus shares, nor any shares had been brought back during the year.

vi. The Company has not declared any dividends in the current year or preceding year.

Note 17.1 Interest Free loan given by Pradeshiya Industrial & Investment Corporation of U.P. Ltd (PICUP) in lieu of deferred trade tax. This loan is secured by way of a charge on the entire immovable and movable assets of the company situated at A-26, UPSIDC Industrial Area, Sikandrabad (UP). Loan is repayable in 10 annual instalments w.e.f 29.12.2018. Refer note 37 for details. The undiscounted value of the loan outstanding is Rs. 178.40 lakhs (PY Rs. 223.00 lakhs).

Note 17.2 Secured by way of Hypothecation of Factory Building including Bottling hall, Finished Goods Godown, etc and plant and Equipment in respect of IMFL Bottling unit, GENA distillation plant with boiler and other related plants, ENA storage warehouse tanks capital work in progress related to manufacturing unit situated on Plot No. B-2/6 & B-2/7, UPSIDC Industrial Area, Phase IV, Sandila, Dist. Hardoi (UP). Interest rate- 9% p.a. Repayable in 36 equal monthly instalments commencing from September 2022.

Note 17.3 E. Loans from body corporates are repayable at the end of 3 years from their receiving date. These loans carry an interest rate varying from 6-9%.

F. Loans from related party carry interest rate of 6% and repayable at the end of 3 years from their receiving date.

G. Loans from NBFC carry interest rate ranging from 4-9%. These are repayable at the end of 3 years from their receiving date.

Note 17.4 Refer note 45 for related party disclosures.

Note 17.5 Term loans from Uco Bank comprise of:

A. Loan sanctioned of Rs 2025.00 lakhs and Loan outstanding of Rs. 1725.00 lakhs (previous year Rs. Nil) taken from Uco bank during the financial year 2023-24, carries interest @ 10.20% per annum on monthly basis. Loan is repayable in 90 monthly instalments including moratorium of 6 months.

B. Details of security: First Charge on Leasehold Land admeasuring 115242.620 sq. mtrs. situated at Plot No. B-2/6-7, UPSIDC Industrial Area, Sandila, Phase IV, Hardoi, UP-241204 and 2nd charge on the building, plant and machinery of bottling and distillery units situated at situated at Plot No. B-2/6 & 2/7, UPSIDC Industrial Area, Sandila, Hardoi, UP-241204. Personal Guarantee of Mr Suraj Prakash Gupta (Promoter) is given.

a. During the year the company has received refund of VAT and SGST amounting to Rs. 1,111.36 lakhs/- pertaining to Financial years 2020-21, 2021-22 & 2022-23 in pursuance to the One Time Rehabilitation Policy of the Government of Uttar Pradesh as notified vide GO No. 12/2015/1701/77-1-2015-10(BIFR)/09TC dated 07.12.2015 and the Rehabilitation Scheme sanctioned to the Company under the said Policy vide GO No. 1571 / 77 - 1 - 2016 -10(BIFR) / 2009 TC dated 29.12.2016.

b. During the year the company has provided for liability for Trade Tax payable to Commercial Tax Department, Govt. of Uttar Pradesh amounting to Rs. 511.38 lakhs Out of this, liability for Rs. 469.18 lakhs was shown as contingent liability in previous year as the same was under appeal before the Trade Tax Tribunal. Since this amount has already been recovered by the Commercial Tax Department and the matter being under litigation for a very long time, the company has booked the liability under exceptional items.

c. During the year the company paid a sum of Rs. 9.30 lakhs towards lease rent and Rs. 166.42 lakhs towards Maintenance Charges to UP State Industrial Development Authority in pursuance to the demand raised by UPSIDA during the current year. Since these amounts pertained to earlier years, these have been grouped under exceptional items.

Note 37: Restructuring of Trade Tax/ Compounding tax/ State Development tax/ Turnover Tax/ VAT and power charges etc.

(a) The company had made reference to Board for Industrial and Financial Reconstruction (BIFR), under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, due to complete erosion of its net worth as on 30th June 2000. The company was thereafter declared a Sick company by BIFR vide its order dated 28.5.2001. As per the sanctioned scheme of BIFR, Govt of UP had deferred Trade Tax/ Compounding tax/ State Development tax/ Turnover Tax/ VAT and power charges etc. A part of the deferred trade tax was also converted into unsecured interest free loan.

(b) Subsequently in pursuance to BIFR vide order dated 25.07.2016 (as Corrected by the Corrigendum Dated 20.10.2016) and Uttar Pradesh Government''s policy for revival of sick unit industries in the State, the Government vide UP Govt. order No 1571/77-1-2016-10 (BIFR)/ 2009TC dated 29.12.2016 has granted/ extended the following relief and concessions to the company in respect of the payment of the dues deferred in the past -

i. Interest Free loan given by PICUP in lieu of deferred trade tax is now payable in 10 annual instalments after a moratorium period of 2 years i.e. w.e.f. 29.12.2018. The interest charged by PICUP has been waived and no interest would be charged for extended or future period.

ii. Trade Tax/VAT/CST deferred by the Commercial Tax Department is to paid in 10 annual instalments after a moratorium period of 2 years i.e. w.e.f. 29.12.2018. Interest, if any charged by the Commercial Tax Department has been waived and no interest would be charged for future period.

iii. The Principal amount of power dues amounting to Rs. 641.14 lacs is to paid to Paschimanchal Vidyut Vitran Nigam Ltd in 10 annual instalments after a moratorium period of 2 years i.e. w.e.f. 29.12.2018. Interest/surcharge levied by PVVNL has been waived and no interest/surcharge would be charged for future period. This has been approved by the Uttar Pradesh Electricity Regulatory Commission in pursuance to the petition filed by the Power Department, Government of UP.

iv. The minimum demand charges levied by Paschimanchal Vidyut Vitran Nigam Ltd during the period of disconnection has been waived. This has been approved by the Uttar Pradesh Electricity Regulatory Commission in pursuance to the petition filed by the Power Department, Government of UP.

(c) The company has deposited a sum of Rs. 346.92 lacs with PICUP as security deposit as per the rehabilitation scheme sanctioned by Government of UP on 29.12.2016 in terms of their One

Time Policy for the revival of sick units. This amount would be refunded to the company after the completion of the rehabilitation period if the company does not violate any terms and conditions of the rehabilitation scheme. Otherwise this amount would be forfeited. The company has complied with the terms and conditions of the scheme as on the date of signing the balance sheet.

Note 38: Contingent Liabilities and commitments		(INR in Lakhs)
	As at 31	As at 31
	March 2024	March 2023
a) Claims against the company not acknowledged as Debts -----Demand raised by the Trade Tax Authorities in the year 200506, against which the company has filed appeal before Trade Tax Tribunal.*	-	467.03
-----Demand raised by the Trade Tax Authorities in the year 200910, against which the company has filed appeal before Trade Tax Tribunal.*		2.15
(A)	-	469.18
b) Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for:
-----Buildings	-	1.04
-----Plant and Equipment	-	0.91
(B)	-	1.95
Total (A B)	-	471.13
*Refer note 35

The applicable Indian corporate statutory tax rate for the year ended 31 March 2024 and 31 March 2023 is 25.168%.

Note 42: Disclosure for Employees Benefits

(INR in Lakhs)

The company has a defined benefit gratuity plan as employees'' long term benefits. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for compensated absence is recognized in the same manner as gratuity.

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

B. The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013.

C. The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

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

E. 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 persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in other person or entities ("ultimate beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding that the Company shall lend or invest in other persons or entities identified by or on behalf of the Funding Party or provide any guarantee, security or the like from to or on behalf of the Ultimate Beneficiaries.

F. The Company has not entered into 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).

G. The Company does not have any foreign currency exposure.

H. The company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

I. The Company did not have any foreign exchange contracts including derivative contracts for which there were any material foreseeable losses.

J. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

K. Rule 11 (g) of Companies (Audit and Auditors) Rules, 2014 ("rule") stipulates that where the Company has used accounting software for maintaining its books of accounts, whether it has a feature of recording audit trail (Edit log) facility and same has been operated throughout the year for all transactions recorded in the software. The Company has used an accounting software for maintaining its books of accounts which has a feature of recording audit trail (Edit log) facility and it operated throughout the year. However, the management is not able to extract necessary control reports to determine whether the requirements of above rule has been met.

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. Fair value measurement is based on presumption that transaction to sell asset or transfer liability takes place either:

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

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

Fair Value of an asset or liability is measured using assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using asset in its highest and best use or by selling it to another market participant that would use asset in its highest and best use.

The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data are available to measure fair value, maximising use of relevant observable inputs and minimizing 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 follows, based on the lowest level input that is significant to the fair value measurement as a whole.

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

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

Level 3- Valuation techniques for which lowest level input that is significant to fair value measurement is unobservable.

For assets and liabilities that are recognised 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 fair value measurement as a whole) at end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

a) Carrying amount of Trade Receivables, Trade Payables, other financial assets, other financial liabilities and Cash & Cash Equivalent are considered to be the same as their Fair Value due to their short term nature.

b) Carrying amount of Financial Assets and Liabilities carried at Amortized Cost is considered a reasonable approximation of Fair Value.

Note 47: Financial Risk Management Objectives and Policies

The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The company does not have foreign trade transactions nor any foreign currency transactions. The Board of Directors manages the financial risk of the company through internal risk reports and analyse exposure by magnitude of risk.

The Company''s overall risk management procedures to minimise potential adverse effects of financial market on the Company are as follows:

A. Market Risk

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables or payables. It includes three types of risks: a) Interest rate risk, b) Currency risk and c) price and commodity risk.

A) Interest Rate Risk: The Company''s borrowings are at fixed rates. Therefore, interest rate risk does not have any major impact on the company.

B) Currency Risk: Since, Company does not have any foreign currency dealings, this risk is not applicable to the Company.

C) Price and commodity risk: The Company majorly purchases Spirits and Grain in its manufacturing. Since, prices are generally regulated, there are no major movements in the prices. Therefore, the adversity of this risk is low.

B. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument leading to a financial loss. The Company''s exposure to credit risk primarily consists of Trade receivables and other financial assets. The Company deals with only few customers since liquor operations are government regulated. Therefore, default risk on the part of debtors is significantly low.

C. Liquidity Risk

The Company''s principle source of liquidity are Cash and cash equivalents and cash generated from operations. The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay. The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk.

Note 48: Capital ManagementA. Risk Management

Capital management is driven by Company''s policy to maintain a sound capital base to support the continued development of its business. The Management and Board of Directors seeks to maintain a prudent balance between different components of Company''s capital. Management monitors capital structure and net financial debt at individual currency level. Net financial debt is defined as current and non-current financial liabilities including lease liabilities less cash and cash equivalents and short term investments.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, lease liabilities, less cash and cash equivalents.

B. Dividends

The Company has not declared any dividends in the current and previous year.

Note 49: Segment Reporting

(INR in Lakhs)

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

The company has two business segments- Edible Oil Operations and Liquor Operations. Edible oil operations consist of trading activities and high seas sale of edible oil. No manufacturing is being done for edible oils. Liquor operations consists of manufacturing Extra Neutral Alcohol (ENA), IMFL & Country Liquor drinks through the Company''s plant situated at Sandila, Dist. Hardoi, Uttar Pradesh. The company is exclusively manufacturing IMFL for United Spirits Limited.

Note: 50 During the year, the Company has earned a profit of Rs. 1480.88 lakhs (Previous year Rs. 1315.30 lakhs). However due to operational losses in earlier years, there has been erosion of its net worth due to which the Company has accumulated losses amounting to Rs. 4788.42 lakhs as at 31 March 2024 (31 March 2023: Rs. 6269.30 lakhs). However, in the view of the fact the company has earned a profit of Rs. 1480.88 lakhs during the year and Management is of the view that after the commissioning of Distillery unit in September 2022, the company is expected to earn profits in the coming years. Therefore, Company does not anticipate that it will not be able to realize its assets and discharge its liabilities in the normal course of business. Accordingly, the company has prepared these financial statements on a going concern basis.

Note: 51 Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year''s classification.

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Mar 31, 2023

q. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The assessments undertaken in recognising provisions and contingencies have been made in accordance with applicable Ind AS. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

Provisions

Provisions represent liabilities to the Company for which amount, or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost.

Contingent Liabilities

In normal course of business, contingent liabilities may arise from litigation and other claims against the Company. There are certain obligations which management of the Company has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Claims against the Company, where the possibility of any outflow of resources

in settlement is remote, are not disclosed as contingent liabilities. Show Cause Notices received are not treated as Contingent Liabilities. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent Assets

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

r. CASH FLOW STATEMENT

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit/ (loss) before tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flows from operating, investing and financing activities of the Company are segregated based on available information.

s. SEGMENT REPORTING

The company has two business segments- Edible Oil Operations and Liquor Operations and segment-wise results, assets and liabilities are accordingly given.

t. FAIR VALUE MEASUREMENT

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on presumption that transaction to sell asset or transfer liability takes place either:

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

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

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

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using asset in its highest and best use or by selling it to another market participant that would use asset in its highest and best use.

The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data are available to measure fair value, maximising use of relevant observable inputs and minimizing 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 follows, based on the lowest level input that is significant to the fair value measurement as a whole.

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

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

Level 3- Valuation techniques for which lowest level input that is significant to fair value measurement is unobservable.

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

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

u. EXCEPTIONAL ITEMS

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full understanding of the Company’s financial performance. Items which may be considered exceptional are significant restructuring charges, gains or losses on disposal of investments of subsidiaries, associate and joint ventures and impairment losses/write down in the value of investment in subsidiaries, associates and joint ventures and significant disposal of fixed assets.

Note 16.1 Interest Free loan given by Pradeshiya Industrial & Investment Corporation of U.P. Ltd (PICUP) in lieu of deferred trade tax. This loan is secured by way of a charge on the entire immoveable and movable assets of the company situated at A-26, UPSIDC Industrial Area, Sikandrabad (UP). Loan is repayable in 10 annual installments w.e.f 29.12.2018. Refer note 35 for details. The undiscounted value of the loan outstanding is Rs. 223.00 lakhs (PY Rs. 267.60 lakhs).

Note 16.2 Secured by way of Hypothecation of Factory Building including Bottling hall, Finished Goods Godown, etc and plant and Equipment in respect of IMFL Bottling unit, GENA distillation plant with boiler and other related plants, ENA storage warehouse tanks capital work in progress related to manufacturing unit situated on Plot No. B-2/6 & B-2/7, UPSIDC Industrial Area, Phase IV, Sandila, Dist. Hardoi (UP). Interest rate- 9% p.a. Repayable in 36 equal monthly installments commencing from September 2022.

Note 16.3 A) Loans from body corporates are repayable at the end of 3 years from their receiving date. These loans carry a interest rate varying from 6-9%.

B) Loans from related party carry interest rate of 6% and repayable at the end of 3 years from their receiving date.

C) Loans from NBFC carry interest rate ranging from 4-9%. These are repayable at the end of 3 years from their receiving date.

(b) Subsequently in pursuance to BIFR vide order dated 25.07.2016 (as Corrected by the Corrigendum Dated 20.10.2016) and Uttar Pradesh Government''s policy for revival of sick unit industries in the State, the Government vide UP Govt order No 1571/77-1-2016-10 (BIFR)/ 2009TC dated 29.12.2016 has granted/ extended the following relief and concessions to the company in respect of the payment of the dues deferred in the past -

i) Interest Free loan given by PICUP in lieu of deferred trade tax is now payable in 10 annual installments after a moratorium period of 2 years i.e. w.e.f 29.12.2018. The interest charged by PICUP has been waived and no interest would be charged for extended or future period.

ii) Trade Tax/VAT/CST deferred by the Commercial Tax Department is to paid in 10 annual installments after a moratorium period of 2 years i.e. w.e.f 29.12.2018. Interest, if any charged by the Commercial Tax Department has been waived and no interest would be charged for future period.

iii) The Principal amount of power dues amounting to Rs 641.14 lacs is to paid to Paschimanchal Vidyut Vitran Nigam Ltd in 10 annual installments after a moratorium period of 2 years i.e. w.e.f 29.12.2018. Interest/surcharge levied by PVVNL has been waived and no interest/surcharge would be charged for future period. This has been approved by the Uttar Pradesh Electricity Regulatory Commission in pursuance to the petition filed by the Power Department, Government of UP.

iv) The minimum demand charges levied by Paschimanchal Vidyut Vitran Nigam Ltd during the period of disconnection has been waived. This has been approved by the Uttar Pradesh Electricity Regulatory Commission in pursuance to the petition filed by the Power Department, Government of UP.

(c) The company has deposited a sum of Rs 346.92 lacs with PICUP as security deposit as per the rehabilitation scheme sanctioned by Government of UP on 29.12.2016 in terms of their One Time Policy for the revival of sick units. This amount would be refunded to the company after the completion of the rehabilitation period if the company does not violate any terms and conditions of the rehabilitation scheme. Otherwise this amount would be forfeited. The company has complied with the terms and conditions of the scheme as on the date of signing the balance sheet.

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on presumption that transaction to sell asset or transfer liability takes place either:

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

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

Fair Value of an asset or liability is measured using assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using asset in its highest and best use or by selling it to another market participant that would use asset in its highest and best use.

The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data are available to measure fair value, maximising use of relevant observable inputs and minimizing 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 follows, based on the lowest level input that is significant to the fair value measurement as a whole.

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

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

Level 3- Valuation techniques for which lowest level input that is significant to fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis,

The Company’s Corporate Treasury function provides services to the business, co-ordinates access to domestic market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The company does not have foreign trade transactions nor any foreign currency transactions. The Board of Directors manages the financial risk of the company through internal risk reports and analyses exposure by magnitude of risk.

The Company''s overall risk management procedures to minimize potential adverse effects of financial market on the Company are as follows:

(A) Market Risk

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables or payables. It includes three types of risks: a) Interest rate risk, b) Currency risk and c) price and commodity risk.

A) Interest Rate Risk: The Company''s borrowings are at fixed rates. Therefore, interest rate risk does not have any major impact on the company.

B) Currency Risk: Since, Company does not have any foreign currency dealings, this risk is not applicable to the Company.

C) Price and commodity risk: The Company majorly purchases Spirits and Grain in its manufacturing. Since, prices are generally regulated, there are no major movements in the prices. Therefore, the adversity of this risk is low.

(B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial intrument leading to a financial loss. The Company''s exposure to credit risk primarily consists of Trade receivables and other financial assets. The Company deals with only few customers since liquor opertions are government regulated. Therefore, default risk on the part of debtors is significantly low.

(C) Liquidity Risk

The Company''s principle source of liquidity are Cash and cash equivalents and cash generated from operations. The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay. The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk.

Note 47 CAPITAL MANAGEMENT (INR in lakhs)

(A) Risk Management

Capital management is driven by Company''s policy to maintain a sound capital base to support the continued development of its business. The Management and Board of Directors seeks to maintain a prudent balance between different components of Company''s capital. Management monitors capital structure and net financial debt at individual currency level. Net financial debt is defined as current and non-current financial liabilities including lease liabilities less cash and cash equivalents and short term investments.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, lease liabilities, less cash and cash equivalents.

Note 48 Reconciliation of Assets, Liabilities and Equity from published audited figures to the restated figures

A) The company has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2017, with transition date of 1st April 2016. While applying those Ind AS, there were some errors / ommission in respect of the identification, measurement, presentation and disclosure of elements of financial statements related to amortization of right of use assets, restatement of loan received and security deposit given to state financial institution at amortised cost and recognition of deferred tax assets.

B) As per Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", any material prior period errors shall be rectified retrospectively and if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity.

C) Accordingly, these financial statements have been retrospectively restated as per Ind AS 8 by applying the effects on opening equity as at 01 April, 2021 and the restating the figures for the financial year ended 31 March 2022.

Previous year’s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year’s classification.

For Pawan Shubham & Co. For and on the Behalf of Board of Directors

Chartered Accountants Shri Gang Industries & Allied Products Limited

Firm Registration No: FRN-011573C

Sd/- Sd/- Sd/-

(CA. Krishna Kumar) Arun Kumar Sharma Syed Azizur Rahman

Partner (Whole Time Director) (Director)

Membership No.: 523411 DIN- 09008061 DIN- 00242790

Sd/- Sd/-

Place: Delhi Anil Kumar Gupta Kanishka Jain

Date: 29.05.2023 Chief Financial Officer Company Secretary

PAN: AUTPG8098D M. No.: A54347

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Jun 30, 2010

1. Contingent Liabilities not provided for is Rs. 0.16 Lacs (Previous year Rs. 0.16 Lacs) on account of payment made to Trade Tax authorities, pending final assessment.

2. The company had made reference to Board for Industrial and Financial Reconstruction (BIFR), under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, due to complete erosion of its net worth as on 30th June 2000. The company was thereafter declared a Sick company by BIFR vide its order-dated 28.5.2001.

3. As per the rehabilitation scheme sanctioned by BIFR, Punjab National Bank (PNB) has agreed to charge interest at the prime lending rate (PLR) with effect from 1.7.2001. However, the dues of the bank have since been fully discharged by the Company.

4. In accordance with the Rehabilitation Scheme sanctioned by BIFR, the Government of U. P. has deferred the Trade Tax / Compounding Tax / State Development Tax/ Turnover Tax amounting in aggregate to Rs. 3375.68 Lacs (P.Y. Rs. 3197.88 Lacs) and power charges amounting to Rs.641.14 Lacs (P.Y. Rs. 827.65Lacs).During the year the company has repaid a sum of Rs. 186.51 Lacs out of deffered power charges A part of the amount of deferred Trade Tax amounting to Rs. 446.00 Lacs (P.Y. Rs 446.00 Lacs) has already been converted into interest-free loan by PICUP during the year 2002-2003 out of which 206.25 Lacs is to be paid on 30.04.2012 and 239.25 Lacs is to be paid on 30.04.2013 as per the G.O. issued by Govt. Of U.P. Dated 04.11.2006. The rest of the deferred payment liability, as extended, on account of Trade Tax / Compounding Tax / State Development Tax and power charges being in the nature of deferred credit has been shown under the head Loan Fund in the accounts as per schedule'C to the notes of accounts.

5. Due to adverse market conditions and lack of orders and inspite of the implementation of the rehabilitation scheme by BIFR, the management of the company has temporarily suspended its manufacturing activities at the factory effective from 25th March 2010 and accordingly declared lay Off' for indefinite period. In the opinion of the management the manufacturing operations may be resumed once the market conditions improve and thus the present situation has not been identified as 'Discontinued Operations'.

6. In the opinion of the Directors and to the best of their knowledge and belief, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. Balances of sundry debtors, sundry creditors, loans & advances are subject to letters of confirmation from some of the parties. In the opinion of the Management, no major variation in these accounts is anticipated.

7. Fixed assets installed and put to use have been certified by the management & relied on by the auditors being a technical matter.

14. The value of Imports by the company on C.I.F. basis during the financial year is Rs.2,748.43 Lacs (Previous Year Rs. 8,064.19 Lacs).

15. The indications listed in paragraph 8 to 10 of Accounting Standard 28 on Impairment of Assets, have been examined and on such examinations, it has been found that none of the indicators are, prima facie, present in the case of the company. A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impairment loss, as per the management.

16. Company has sent communications to its creditors for identification of Micro, Small and Medium enterprises. On the basis of response, to the extent received, to such communication, the disclosures in respect to Micro, Small and Medium Enterprise Development Act, 2006 is as follows:

S.No Particulars 2009-10 2008-09

i) The Principal amount and the interest due - - thereon remaining unpaid to any supplier

ii) - Principal amount - -

iii) - Interest there on - -

iv) The amount of Interest paid by the Company - - in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 along with the amounts of the payments made to the supplier beyond the appointed day.

v) The amount of interest due and payable for - - the year of delay in making payment (which have been paid but beyond the appointed day during the year but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006)

vi) The amount of interest accrued and - - remaining unpaid

vii) The amount of further interest remaining - - due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to small enterprises for the purpose of disallowance as a deductible expenditure under Section 23 of the Micro, Small and Medium Enterprises Development Act, 2006

19. Provision for Income Tax

a) The provision for the current Income Tax is not considered necessary for the financial year 2009-2010 in view of the brought forward business loss, unabsorbed depreciation allowance, other deductions and benefits under the provisions of Income Tax Act, 1961.

c) Since the net effect of tax due to timing difference results in Net Deferred Tax Asset, as at the Balance Sheet date,

the same has not been recognised in the accounts on conservative basis.

d) Deferred tax has been calculated as on March 31st, 2010 by following the fiscal year, as the depreciation as per income tax and other allowances/losses are calculable only for fiscal year ending March 31st, 2010.However, it is expected that this method shall not affect substantially the deferred tax asset as calculated above.

20. Lease Transactions -

a) Assets taken under operating lease

Certain offices/Residential premises are obtained on Operating lease. There is no contingent rent in the lease agreement. These agreements have been entered in the earlier Years for a period of one to three year and are renewable as per mutual agreement of both the parties. There is no escalation clause in lease agreement. There are no restrictions imposed by these arrangements. There are no Sub leases and all the leases are cancellable in nature

21. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company or any outstanding, during the year with the related parties.

A) Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company or any outstanding, during the year with the related parties.

(I) Names of Related Parties and description of Relationship:

i) Key Managerial Personnel:

a) Gopai Das Agrawal Whole time Director

b) Rajesh Gupta Managing Director (01.04.2009 to 30.11.2009) (Resigned w.e.f 01.12.2009)

c) Janeshwar Kumar Jain Director (31.10.09 to 31.12.09)

22. The company is primarily engaged in the business of Manufacturing of Vanaspati and Refined Oil. The Management has identified the above business as primary business segment and the same has been identified for the analysis and review of performance of the company.

23. Previous year figures have been regrouped restated wherever considered necessary to conform with the current year figures.

24. Information pursuant to Part IV of Schedule VI to the Companies Act, 1956 as regards Balance Sheet abstract and general profile of the company is annexed separately.

---

Jun 30, 2009

1. Contingent Liabilities not provided for:

A. Rs. 0.16 Lacs (Previous year Rs. 0.16 Lacs) on account of payment made to Trade Tax authorities, pending final assessment.

2. The company had made reference to Board for Industrial and Financial Reconstruction (BIFR), under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, due to complete erosion of its net worth as on 30th June 2000. The company was thereafter declared a Sick company by BIFR vide its order-dated 28.5.2001.

3. As per the rehabilitation scheme sanctioned by BIFR, Punjab National Bank (PNB) has agreed to charge interest at the prime lending rate (PLR) with effect from 1.7.2001. However, PNB shall have a right to recompense for the losses / sacrifice undertaken by it and enhance the rate of interest, if in its opinion the profitability of the company or its cash flow so warrants.

4. In accordance with the Rehabilitation Scheme sanctioned by BIFR, the Government of U. P. has deferred the Trade Tax / Compounding Tax / State Development Tax/ Turnover Tax amounting in aggregate to Rs. 3197.88 Lacs (P.Y. Rs. 2738.99 Lacs) and power charges amounting to Rs. 827.65 Lacs (P.Y. Rs. 1182.83 Lacs).During the year the company has repaid a sum of Rs.355.18 Lacs out of deffered power charges A part of the amount of deferred Trade Tax amounting to Rs. 446.00 Lacs (P.Y. Rs 446.00 Lacs) has already been converted into interest free loan by PICUP during the year 2002-2003 out of which 206.25 Lacs is to be paid on 30.04.2012 and 239.25 Lacs is to be paid on 30.04.2013 as per the GO. issued by Govt. Of U.P. Dated 04.11.2006. The rest of the deferred payment liability, as extended, on account of Trade Tax / Compounding Tax / State Development Tax and power charges being in the nature of deferred credit has been shown under the head Loan Fund in the accounts as per schedule C to the notes of accounts.

5. In the opinion of the Directors and to the best of their knowledge and belief, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet

6. Balances of sundry debtors, sundry creditors, loans & advances are subject to letters of confirmation from some of the parties. In the opinion of the Management, no major variation in these accounts is anticipated.

7. Fixed assets installed and put to use have been certified by the management & relied on by the auditors being a technical matter.

(i) Out of the total installed capacity of 49,500 MT per annum, the capacity to produce Vanaspati is only 37,500 MT per annum.

(ii) The installed capacity and the date of installation of machinery is as per certificate given by the Companys technical expert and relied on by the auditors, being a technical matter.

(iii) Capacities are expressed on the basis of triple shift working of the Factory.

(iv) Sales quantity includes loss in transit/ theft/ samples of 6.678 M.T.(Previous year 17.105 M.T.).

(v) The production quantity is net of quantity rejected and reprocessed.

8. The value of Imports by the company on G.I.F. basis during the financial year is Rs. 8,064.19 Lacs (Previous Year Rs. 9,219.26 Lacs).

9. The indications listed in paragraph 8 to 10 of Accounting Standard 28 on Impairment of Assets, have been examined and on such examinations, it has been found that none of the indicators are, prima facie, present in the case of the company. A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impairment loss, as per the management.

c) Since the net effect of tax due to timing difference results in Net Deferred Tax Asset, as at the Balance Sheet date, the same has not been recognised in the accounts on conservative basis.

d) Deferred tax has been calculated as on March 31st, 2009 by following the fiscal year, as the depreciation as per income tax and other allowances/losses are calculable only for fiscal year ending March 31", 2009.However, it is expected that this method shall not affect substantially the deferred tax asset as calculated above.

10. Lease Transactions -

a) Assets taken under operating lease

Certain offices/Residential premises are obtained on Operating lease. There is no contingent rent in the lease agreement. These agreements have been entered in the earlier Years for a period of one to three year and are renewable as per mutual agreement of both the parties. There is no escalation clause in lease agreement. There are no restrictions imposed by these arrangements. There are no Sub leases and all the leases are cancellable in nature *

11. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company or any outstanding, during the year with the related parties. A) Names of Related Parties and description of Relationship: i) Key Managerial Personnel:

a) Gopal Das Agrawal Whole time Director

b) Rajesh Gupta Chief Executive Officer (01-08-2008 to 29-12-2008)

Managing Director (w.e.f 30-12-2009)

c) Inder Mani Mittal Director

d) Sanam Gambhir. Director

e) S.KJain Director (Retired 30.04.2009)

12 The company is primarily engaged in the business of Manufacturing of Vanaspati and Refined OIL. The Management has identified the above business as primary business segment and the same has been identified for the analysis and review of performance of the company.

13 Previous year figures have been regrouped/ restated wherever considered necessary to conform with the current year figures.

14 Information pursuant to Part TV of Schedule VI to the Companies Act, 1956 as regards Balance Sheet abstract and general profile of the company is annexed separately.