Notes to Accounts of Tirupati Starch & Chemicals Ltd.

Mar 31, 2025

3.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is present obligation as a result of a past event that probably requires
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.A
disclosure for a contingent liability made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation and the
likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and is recognised.

Provisions, Contingent Liabilities, Contingent Assets and commitments are reviewed at each Balance sheet date.

3.10 FINANCIAL INSTRUMENTS :

A financial instrument is any contract that gives rise to a financial asset of one entity and a Financial Liability or Equity

Instrument of another entity. Financial instruments also include derivative contracts such as foreign currency, foreign
exchange forward contracts and interest rate swaps.

3.10.1 FINANCIAL ASSETS :

(a) Initial recognition and measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss,
are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognized using
trade date accounting.

(b) Subsequent measurement

Financial assets carried at amortized cost

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows (rather than to sell the instrument prior to its contractual
maturity to realize its fair value changes)and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for
impairment and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes
in fair value (other than on account of above income or expense) are recognised in other comprehensive
income and accumulated in other equity. On disposal of debt instruments at FVTOCI, the cumulative gain or
loss previously accumulated in other equity is reclassified to profit or loss. In case of equity instruments at
FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL.

(c) Equity Investments

All other equity investments are measured at fair value, with value changes recognized in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value
changes in ''Other Comprehensive Income''.

(d) Investments in subsidiaries, associates and joint ventures

The Company assesses if it has acquired control, joint control or significant influence over an investee based
on shareholding, voting power, composition of board, rights under shareholder agreements and other facts
and circumstances of each case which involves use of judgment.The Company accounts for its equity
investments in subsidiaries, associates and joint ventures at cost less accumulated impairment, if any.

TRADE RECEIVABLES :

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. If the receivable is expected to be collected within a period of 12 months or less from the reporting
date (or in the normal operating cycle of the business, if longer), they are classified as current assets otherwise
as non-current assets.

Trade receivables are measured at their transaction price unless it contains a significant financing component in
accordance withInd-AS115 or pricing adjustments embedded in the contract.

Loss allowance for expected life time is credit loss recognized on initial recognition.

(e) Impairment of financial assets

''In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for Evaluating
impairment of financial assets other than those measured at fair value through profit And loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date);

or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be
recognized from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analyzed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

3.10.2 FINANCIAL LIABILITIES :

3.10.2.1 Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance
cost.

3.10.2.2 Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.

(i) Financial liabilities measured at amortized cost

After initial recognition, interest- bearing loans and borrowing are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in statement of profit
and Loss when the liabilities are derecognized as well as through the EIR amortization
process.

Amortized cost is calculated by taking into account any discount or premium on acquisition
and Fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.

Trade Payables

These amounts represent liabilities for goods and services provided to the company prior to
the end of financial year which are unpaid. The amounts are unsecured and are usually paid
within 30 to 120 days of recognition. Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are
recognized initially at fair value and subsequently measured at amortized cost using effective
interest method.

(ii) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated
upon initial recognition as at fair value through profit or loss.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or
expires.

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

(i) In the principal market for asset or liability, or

(ii) 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 liability is measured using the 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 participants ability to
generate economic benefits by using the asset in its highest and best use or by selling to another
market participant that would use the asset in its highest and best use.

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 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 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 asset or liabilities.

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

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

For assets and liabilities that are recognized in the financial statements on 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 the 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.

. Leases

The company assesses at contract inception whether a contract is or contains a Lease. That is if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.

Company as a Lessee

The company primarily lease consists of office premises which are in the nature of short-term leases
and lease of low value assets (i.e. those leases payments on short that have a lease term of 12
Months or less from the commencement date and do not contain a purchase option).It also applies
the lease of low-value assets recognition exemption of leases that are considered to be low value.
Lease payments on Short- term leases and leases of low-value assets are recognized as expense in
the statement of Profit & Loss on straight line basis over the term of lease.

EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable to equity shareholders,
including deferred tax provision, by the weighted average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period is adjusted for the effects of alldilutive potential
equity shares.

3.11 TAXES ON INCOME :

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss,
except to the extent that it relates to items recognized in the other comprehensive income or in equity. In which case,
the tax is also recognized in other comprehensive income or equity.

3.11.1 CURRENT TAX :

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in
accordance with the provisions of the Income Tax Act,1961 and using estimates and judgments based on the
expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and disallowances.

3.11.2 DEFERRED TAX :

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed
at the end of each reporting period.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity,
is recorded along with the tax as applicable.

3.11.3 MINIMUM ALTERNATIVE TAX (MAT) :

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company
will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to
be recognized as an asset the said asset is created by way of credit to the statement of profit and loss and
included in deferred tax assets. The company reviews the some at each balance sheet date and writes down the

carrying amount of MAT entitlement to the extent there is no longer convincing evidence to the effect that
company will pay normal income tax during the specified period.

3.12 CASH AND CASH EQUIVALENTS :

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an Original maturity of
three months or less.

For the purposes of the cash flow statement, cash and cash equivalents is as defined above, net of Outstanding bank
overdrafts.

3.13 CASH FLOW STATEMENT :

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of
transactions of a non-cash 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.

SEGMENT INFORMATION

The operating segment has been identified and reported taking into account its internal financial reporting, performance
evaluation and organizational structure of its operations. Operating segment is reported in the manner evaluated by
Board, considered as Chief operating Decision Maker under Ind AS "108 Operating Segments."The Company is
engaged in a single operating segment.

Key sources of estimation:

The preparation of financial statements in conformity with Ind AS requires that the management of the Company
makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported
balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial
statements. The estimates and underlying assumptions made by management are explained under respective policies.
Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, allowance
for expected credit loss, future obligations in respect of retirement benefit plans, expected cost of completion of
contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any, between
the actual results and estimates is recognised in the period in which the results are known.

Recent Accounting Pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. There is no such notification which would have been
applicable from 1st April, 2024.

State Bank of India (Corporate Loan - 40.00 Cr)

Mortgage of Company''s factory premises situated at Survey no. 381/2, 382/2, 396/3/2, 395/2/2, 403/2 Patwari Halka no. 55, situated at Indore Ahemdabad
Road, Sejwaya, Ghatabillod, Dhar (M.P) and Hypothecation of entire stocks of RM, FG, SIP, Stores & Spares, Packing Materials at the Company''s factory
premises and the loan is further covered by the personal guarantee by the Directors. Loan is Repayable in 36 Quarterly Installments starting from Year 2021¬
22 to Year 2029-30 carrying rate of Interest @ 17.00% (Previous Year @ 10.80%) per annum.

State Bank of India (WCTL-GECL 1.0 Extension Loan - 12.60 Cr)

Working Capital Term Loan facility under ECGLS Scheme of Government of India with second charge over existing Security and 1 00% cover by National Credit
Guarantee Trustee Company. This Facility has been sanctioned on 30.11.2021 is available for 60 months, but repayment will start after 24 months i.e.
30.11.2023. Loan is Repayable in 36 equated monthly installment of Rs. 35.00 Lakhs. Interest to be served as and when applied.
HDFC Bank Term Loan - 45.00 Cr

First Charge of SBI and Secound Charge of HDFC Bank on all Mortgage of Company''s factory premises situated at Survey no. 381/2, 382/2, 396/3/2, 395/2/
2, 403/2 Patwari Halka no. 55, situated at Indore Ahemdabad Road, Sejwaya, Ghatabillod, Dhar (M.P.) and Hypothecation of entire stocks of RM, FG, SIP, Stores
& Spares, Packing Materials at the Company''s factory premises and the loan is further covered by the personal guarantee by the Directors. Loan is Repayable
in 28 Quarterly Installments starting from Year 2024-25 to Year 2031-32 carrying rate of Interest @ 8.80% (Previous Year @ 8.80% ) per annum.

HDFC Bank Vehical Loan - 31.80 Lakhs

Mortgage of Company''s CEMID Equipments (JCB Vehical). Loan is Repayable in 37 Equal Monthly Installments starting from Year 2024-25 to Year 2027¬
28 carrying rate of Interest @ 9.32% (Previous Year @ 9.32%) per annum.

Tata Capital Financial Services Limited - 7.75 Cr.

Mortgage of Company''s Land premises situated at 181, Jaora Compound, Indore (M.P.) and personal guarantee by the Directors. Loan is Repayable in 48
equated monthly Installments of Rs. 1614583/- each plus applicable interest starting from May 2024 Rate of Interest @ 11.20% (Previous Year @ 10.75%)
(Floating) per annum.

36. Contingent Liability and contingencies not provided for to the extent :

(i) Disputed Tax Liabilities regarding demand cases pending against the company fromCustom & Central Excise Department:

a. The Company have received show cause notices No. DGCEI/AZU/36-13/2005/3352 dt. 07.09.2005 & Notice No. V(35)15-1/
2006/Adj.I/5199 dt. 03.04.2006 from the Custom & Central Excise Department for wrong classification of maize starch powder
demand raised of Rs. 934.36 Lakhs upto 31.03.2006. But in similar cases the Hon''ble Customs, Excise & Service Tax Appellate
Tribunal Principal Bench New Delhi vide their order dated 21.11.2013 had rejected the Department Appeal being it is settled
that maize starch powder is classifiable as plain starch falling. Hence the company has no demand pending for payment
despite the fact the Central Excise Department has gone to higher Court. The company has already filed application for set¬
a-side the demand raised upto 31.12.2014 and accordingly no provision has been made for any liability of said demands on
the basis of advice by its legal counsel that the appeals will be decided in favor of the company.

(ii) Claims/Suits filed against the company not acknowledged as debt:-

a. Mandi tax has been recognized as expenses upto June, 2013, which has been given to Mandi Authority and keep in separate

account in pursuance of Court Order. In case the amount is refunded the same will be considered as Income in the year of
its receipt. However from July 2013, Mandi Tax has not been deposited in view of decision of Hon''ble High Court of Madhya
Pradesh in favour of Company, in the matter of Writ Petition No. 14227/2010 Dated 05/07/2013.Accordingly No provision has
been made for any liability of said demands on the basis of advice by its legal counsel that the appeals will be decided in
favor of the company.

Commitments:

a. Estimated amount of capital contracts remaining to be executed and not provided for (Net of Advances) Rs. 50.00 Lakhs
(Previous Year Rs. 2500.00 Lakhs).

b. Other Commitments : Nil (Previous Year Nil)

39. Corporate Social Responsibility :

As peer Section 135of the Companies Act, 2013 a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the preceding three financial year on Corporate Social responsibility (CSR) activities. The CSR provision are
applicable to the company. The areas of CSR activities selected by the company for CSR activities are Eradication of Hunger and
Malnutrition, Promoting Education, Art and Culture, Health Care, Destitute Care and Rehabilitation, Environment Sustainability,
Disaster Relief and Rural Development Project.

The details of CSR as per the Schedule III are produced below:

40. Segment Reporting :

The Company has only a single reportable Segment in terms of the requirements of IndAS-108. There are no customers having
revenues exceeding 10% of Total Revenues.

41. During the year, the company has incurred Pre-operative Expenses (Pending Capitalization) which directly relatable to the Cost

of Property, Plant and Equipment being expenses related to Liquid Glucose project and development of Property, Plant and
Equipment is in process therefore the same has been disclosed under ''Capital Work in Progress'' (Note No.04)

The Management assessed that Cash and Cash Equivalents, Trade Receivable, Trade Payable, Other Current financial assets and
other current financial liabilities approximate their carrying amounts largely due to the Short-Term maturities of these instruments.

The Fair value of the other financial asset and liabilities is included at the amount at which the instrument could be exchanged in a
Current transaction between willing parties other than forced or Liquidation sale. The following methods and assumptions were
used to estimate the fair value:-

1) The Fair value of Loans from Banks, other non-current financial assets and other non-current liabilities is estimated by
discounting future Cash flows using rates currently available for debt or similar items, Credit Risk and remaining maturities.
The Valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs
are disclosed in the Table below. Management regularly assesses a range of reasonably possible alternatives for those
significant unobservable inputs and determines their impact on the total fair value.

2) The Fair value of the company''s interest bearing borrowings including debt component of Preference Shares are determined
by using effective interest rate (EIR) method using discount rate that reflect the issuer''s borrowing rate as at the end of the
reporting period. The own non-performance risk as at 31st March, 2025 was assessed to be insignificant.

3) Fair Value hierarchy

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1:Quoted (Unadjusted) prices in active markets for identical assets or Liabilities

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either
directly or indirectly

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable
market data

Financial risk management Objectives and Policies

The company principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other
receivables and cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an internal part of how to plan and execute its business strategies. The company is
exposed to market risk, credit risk and liquidity risk.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below

- Foreign Exchange Risk

- Interest Rate Risk

- Credit risk

- Liquidity risk and

- Market risk

- Commodity Price Risk

(i) Risk management framework

The Company''s board of directors has overall responsibility for establishment and Oversight of the company''s risk
management framework. The board of directors has established the processes to ensure that executive management controls
risks through the Mechanism of property defined framework.

The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and
company''s activities. The company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the company''s receivables from customers and investments in debt
securities. The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit
risk very closely both in domestic and export market. The management impact analysis shows credit risk and impact
assessment as low.

Trade and other receivable

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of
the industry and country in which customers operate.

The company management has established a credit policy under which each new customer is analyzed individually for
creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s
review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases
bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits
require approval from the Directors of the company.

About 80% of the Company''s customers have been transacting with the company for over Five to Ten years, and no
significant impairment loss has been recognized against those customers. In monitoring customer credit risk, Customers are
reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic
location, industry and existence of previous financial difficulties

The company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other
receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade
receivables.

The carrying amount (net of loss allowances Rs Nil) of trade receivables is Rs. 3916.57 Lakhs
(31st March, 2024 Rs. 3440.16 Lakhs)

During the year, the Company has made minor write-offs of trade receivables; it does not expect to receive future cash flows
or recoveries from collection of cash flows previously written off. The Company management also pursues all legal option
for recovery of dues wherever necessary based on its internal assessment.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to
ensure, as for as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate
amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic
nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under
committed credit lines.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities)
and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out at unit level and
monitored through registered office of the Company in accordance with practice and limits set by the Company. These limits
vary by location to take into account requirement, future cash flow and the liquating cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and
external regulatory requirements and maintaining debt financing plans.

(a) Financing arrangements

The company had access to the following undrawn borrowing facilities at the end of the reporting period.

The interest payments on variable interest rate loans in the table above reflect market forward interest rates at the reporting
date and these amounts may change as market interest rates change.

(iv) Market risk

Market risk is the risk that the Fair value of future cash flow of a financial instrument will fluctuate because of changes in
market prices. Market prices comprise three types of risk: Currency rate risk, Interest Risk and other price risk, such as equity
price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits,
investments and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the
position as at reporting date. The analysis excludes the impact of movements in market variables on the carrying values of
non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss items and equity is the effect of the
assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of
March 31, 2025 and March 31, 2024.

(a) Currency risk

The company is exposed to foreign exchange risk arising currency transaction, primarily with respect to the USD and small
exposure in EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and
liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a
forecast of highly probable foreign currency cash flows.

Currency risks related to the principal amounts of the Company''s foreign currency receivables and payables, taken by the
Company.

Sensitivity analysis
(a) Interest rate risk

The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to
cash flow interest rate risk. During year ended 31 march 2025 and 31 march 2024, the Company''s borrowings at variable rate
were denominated in INR.

The Company has a Corporate Term Loan of Rs. 4000.00 Lakhs from SBI @ 17.00% PA (Previous Year @10.80% PA) Fixed.
Presently the outstanding balance of the same is Rs. 1500.85 Lakhs and Term Loan of Rs. 4500.00 Lakhs from HDFC @ 8.80%
PA (Previous Year @8.80% PA) Fixed. Presently the outstanding balance of the same is Rs. 4046.24 Lakhs

Currently the Company''s borrowings are within acceptable risk levels, as determined by the management; hence the
company has not taken any swaps to hedge the interest rate risk.The Company constantly monitors the credit markets and
revisits its financing strategies to achieve an optimal maturity profile and financing cost.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.

(a) Commodity price risks

The Company is exposed to the risk of price fluctuation of raw materials, dyes and chemicals, work-in-progress and finished
goods. The Company manages its commodity price risk by maintaining adequate inventory of raw materials, dyes and
chemicals, work-in-progress and finished goods considering future price movement. To counter raw materials risk, the
Company worked with various suppliers of Raw Material with the objective to material cost, enhances application flexibility
and increase product functionality and also invested product development and innovation. The Company''s Board of
Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

44. Capital management

The primary objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and equity in
order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to purpose the board
of directors regularly review the Company''s capital structure in light of the economic conditions, business strategies and future
commitments. For the purpose of the company''s capital management, capital includes issued share capital, Preference shares
capital and all other equity reserves. No significant changes were made in the objectives, policies or processes relating to the
management of the company''s capital structure.

The Company monitors capital on basis of total equity and debt on a periodic basis. Equity comprises all components of equity
including the fair value impact. Debt includes long-term loan and short term loans. The following table summarizes the capital of the

Note : No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2025
and March 31, 2024.

45. The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance
Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The liabilities has worked out on the
basis of Actuarial ValuationFor the FY 2024-25 employee group gratuity liabilities at Rs. 67.49 Lakhs on basis of Actuarial assumptions
up to March 31, 2025 and accordingly the same has been provided in books for the year. However the company is not making
payment of gratuity liabilities to LIC as per Actuarial Valuation basis.

Employee benefit obligations :

The Company has classified various employee benefits as under:

(a) Leave obligations

The company does not have any leave obligations for sick and privileged leave.

(b) Defined contribution plans

(i) Provident fund

(ii) State defined contribution plans

(iii) Employee''s Pension Scheme, 1995

TThe provident fund and the state defined contribution plan are operated by the regional provident fund commissioner Under the
schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the
benefits.

(c) Post-employment obligation

Gratuity

The Company has a defined benefit plan, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has
rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of
services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned.

Significant estimates: actuarial assumptions

1. At the request of the above stated entity I have performed actuarial valuation associated with the captioned plan for the
above stated period and Accounting Standard, in my independent capacity. I am not related to company any manner. The report has
been prepared in accordance with applicable provisions to the extent they are relevant and material under the relevant Actuarial
Practice Standard (APS).

(d) On the basis of above defined benefit gratuity plan periodical payment made to Life Insurance Corporation of India (LIC).
Defined benefit liability and employer contributions: The Company will pay demand raised by LIC towards gratuity liability on
time to time basis to eliminate the deficit in defined benefit plan.

46. The company lease assets primarily consists of Office Premises which are of Short-Term Lease with the twelve months or less and
low value Leases. For those Short-Term and Low value leases, the company recognizes the lease payments as an expense in the
Statement of Profit and Loss on a straight line basis over the term of lease.

During the year, the company has made the paymentRs. 10.48 Lakhs to the owner of premises (Previous Year March 31, 2024 Rs. 9.98
Lakhs).

47. The company during the year have received aggregate government grant of Rs.659.15 Lakhs as under :

(a) Rs.320.40 Lakhs per annuam from MPID towards investment in plant and machinery,the said government grant has been
sanctioned for 07 years (i.e from 01.11.2019 to 31.10.2026) period, aggregating to Rs. 2242.80 Lakhs.

(b) The company received Govt grant of Rs. 338.75 towards VAT Subsidy (Industrial Investment promotion Assistance (IIPA).

Government grants relating to the purchase of property, plant and equipment are recognized by deducting the same from carrying
value of the related asset the grant is then recognized in profit or loss over the useful life of the depreciable asset by way of a
reduced depreciation charge.

Government grants relating to VAT Subsidy (Industrial Investment promotion Assistance (IIPA) is recognized as revenue in profit
or loss for the year.

51. No Charges or Satisfaction are pending to be registered with ROC beyond the statutory period.

52. Where the Company has not Complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the
relationship or extent of holding of the company in such downstream companies shall be disclosed: NIL

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

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

(iii) As on 31st March, 2025 there is no unutilised amount in respect of any issue of securities and long term borrowings from
banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

(iv) The company has not 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 assessment under the Income Tax Act, 1961 (Such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961)

(v) In the opinion of the Board, all assets other than Property, Plant and Equipment, intangible assets and non-current investments
have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

(vi) The Company has not been declared willful defaulter by any bank or financial institution or other lender.

(vii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956

(viii) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act 2013 during the current as well as the previous year.

56. Disclosure related to Confirmation of Balances is as under:

(a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no
unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to
receivables, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding
which can be said to be automatically confirmed on receipt of subsequent payment from such beneficiaries. In addition,
reconciliation with beneficiaries and other customers is generally done on quarterly basis.

(c) In the opinion of the management, unconfirmed balances will not require any adjustment having any material impact on the

Financial Statements of the Company.

57. Figures for the previous year have been regrouped wherever found necessary.

58. Figures have been rounded off to nearest Lakhs

For ABMS & Associates For, TIRUPATI STARCH & CHEMICALS LTD

Chartered Accountants
(FRN: 030879C)

Atul Sharma AMIT MODI RAMDAS GOYAL RAMESH GOYAL

Partner Managing Director Chairman & Whole Time Director Whole Time Director

Membership No.: 075615 DIN : 03124351 DIN : 00150037 DIN : 00293615

UDIN : 25075615BMTFEA3842

Place: Indore

Date: 23/05/2025 ROHIT MANGAL ANURAG KUMAR SAXENA

(CFO) Company Secretary & Compliance Officer

M. No. : F8115

---

Mar 31, 2024

3.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.A disclosure for a contingent liability made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised Provisions, Contingent Liabilities, Contingent Assets and commitments are reviewed at each Balance sheet date.

3.10 FINANCIAL INSTRUMENTS :

A financial instrument is any contract that gives rise to a financial asset of one entity and a Financial Liability or Equity

Instrument of another entity. Financial instruments also include derivative contracts such as foreign currency, foreign exchange forward contracts and interest rate swaps.

3.10.1 FINANCIAL ASSETS :

(a) Initial recognition and measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognized using trade date accounting.

(b) Subsequent measurement

Financial assets carried at amortized cost

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows(rather than to sell the instrument prior to its contractual maturity to realize its fair value changes)and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL.

(c) Equity Investments

All other equity investments are measured at fair value, with value changes recognized in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''.

(d) Investments in subsidiaries, associates and joint ventures

The Company assesses if it has acquired control, joint control or significant influence over an investee based on shareholding, voting power, composition of board, rights under shareholder agreements and other facts and circumstances of each case which involves use of judgment.The Company accounts for its equity investments in subsidiaries, associates and joint ventures at cost less accumulated impairment, if any.

TRADE RECEIVABLES :

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If the receivable is expected to be collected within a period of 12 months or less from the reporting date (or in the normal operating cycle of the business, if longer), they are classified as current assets otherwise as non-current assets.

Trade receivables are measured at their transaction price unless it contains a significant financing component in accordance withInd-AS115or pricing adjustments embedded in the contract.

Loss allowance for expected life time credit loss is recognized on initial recognition.

(e) Impairment of financial assets

''In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for Evaluating impairment of financial assets other than those measured at fair value through profit And loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date);

or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognized from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analyzed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

3.10.2 FINANCIAL LIABILITIES :

3.10.2.1 Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

3.10.2.2 Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(i) Financial liabilities measured at amortized cost

After initial recognition, interest- bearing loans and borrowing are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in statement of profit and Loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and Fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Trade Payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 to 120 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using effective interest method.

(ii) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.

1. Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

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

(i) In the principal market for asset or liability, or

(ii) 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 liability is measured using the 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 participants ability to generate economic benefits by using the asset in its highest and best use or by selling to another market participant that would use the asset in its highest and best use.

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 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 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 asset or liabilities.

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

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

For assets and liabilities that are recognized in the financial statements on 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 the 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.

. Leases

The company assesses at contract inception whether a contract is or contains a Lease. That is if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

The company primarily lease consists of office premises which are in the nature of short-term leases and lease of low value assets (i.e. those leases payments on short that have a lease term of 12 Months or less from the commencement date and do not contain a purchase option).It also applies the lease of low-value assets recognition exemption of leases that are considered to be low value. Lease payments on Short- term leases and leases of low-value assets are recognized as expense in the statement of Profit & Loss on straight line basis over the term of lease.

EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable to equity shareholders, including deferred tax provision, by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

3.11 TAXES ON INCOME :

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the other comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

3.11.1 CURRENT TAX :

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and using estimates and judgments based on the expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and disallowances.

3.11.2 DEFERRED TAX :

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.

3.11.3 MINIMUM ALTERNATIVE TAX (MAT) :

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset the said asset is created by way of credit to the statement of profit and loss and included in deferred tax assets. The company reviews the some at each balance sheet date and writes down the

carrying amount of MAT entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period.

3.12 CASH AND CASH EQUIVALENTS :

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an Original maturity of three months or less.

For the purposes of the cash flow statement, cash and cash equivalents is as defined above, net of Outstanding bank overdrafts.

3.13 CASH FLOW STATEMENT :

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash 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.

SEGMENT INFORMATION

The operating segment has been identified and reported taking into account its internal financial reporting, performance evaluation and organizational structure of its operations. Operating segment is reported in the manner evaluated by Board, considered as Chief operating Decision Maker under Ind AS "108 Operating Segments." The Company is engaged in a single operating segment.

Key sources of estimation:

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions made by management are explained under respective policies. Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

Recent Accounting Pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. There is no such notification which would have been applicable from 1st April, 2024.

36. Contingent Liability and contingencies not provided for to the extent :

(i) Disputed Tax Liabilities regarding demand cases pending against the company fromCustom & Central Excise Department:

a. The Company have received show cause noticesNo. DGCEI/AZU/36-13/2005/3352 dt. 07.09.2005 & Notice No. V(35)15-1/

2006/Adj.I/5199 dt. 03.04.2006 from the Custom & Central Excise Department for wrong classification of maize starch powder demand raised of Rs. 934.36 Lakhs upto 31.03.2006. But in similar cases the Hon''ble Customs, Excise & Service Tax Appellate Tribunal Principal Bench New Delhi vide their order dated 21.11.2013 had rejected the Department Appeal being it is settled that maize starch powder is classifiable as plain starch falling. Hence the company has no demand pending for payment despite the fact the Central Excise Department has gone to higher Court. The company has already filed application for seta-side the demand raised upto 31.12.2014 and accordingly no provision has been made for any liability of said demands on the basis of advice by its legal counsel that the appeals will be decided in favor of the company.

(ii) Claims/Suits filed against the company not acknowledged as debt:-

a. Court Decree in the case of Smt. Sharda Bai for Rs. 2.54 Lakhs before Hon''ble MP High Court, Indore out of which Rs. 1.28 Lakhs has been deposited & kept in advance as appeal is pending against the Court Decree and the appeal is likely to be decided in favor of the Company.

b. Mandi tax has been recognized as expenses upto June, 2013, which has been given to Mandi Authority and keep in separate account in pursuance of Court Order. In case the amount is refunded the same will be considered as Income in the year of its receipt. However from July 2013, Mandi Tax has not been deposited in view of decision of Hon''ble High Court of Madhya Pradesh, in the matter of Writ Petition No. 14227/2010 Dated 05/07/2013.Accordingly No provision has been made for any liability of said demands on the basis of advice by its legal counsel that the appeals will be decided in favor of the company.

The Management assessed that Cash and Cash Equivalents, Trade Receivable, Trade Payable, Other Current financial assets and other current financial liabilities approximate their carrying amounts largely due to the Short-Term maturities of these instruments.

The Fair value of the other financial asset and liabilities is included at the amount at which the instrument could be exchanged in a Current transaction between willing parties other than forced or Liquidation sale. The following methods and assumptions were used to estimate the fair value:-

1) The Fair value of Loans from Banks, other non-current financial assets and other non-current liabilities is estimated by discounting future Cash flows using rates currently available for debt or similar items, Credit Risk and remaining maturities. The Valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the Table below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

2) The Fair value of the company''s interest bearing borrowings including debt component of Preference Shares are determined by using effective interest rate (EIR) method using discount rate that reflect the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31st March 2024 was assessed to be insignificant.

3) Fair Value hierarchy

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 : Quoted (Unadjusted) prices in active markets for identical assets or Liabilities

Level 2 : Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3 : Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

Financial risk management Objectives and Policies

The company principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables and cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an internal part of how to plan and execute its business strategies. The company is exposed to market risk, credit risk and liquidity risk.

The company senior management overseas the management of these risks. The senior Professionals working to manage the financial risks and the appropriate financial risk governance framework for the company are accountable to the Board of Directors and Audit Committee. This process provided assurance the Company''s senior management that the Company''s financial risktaking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objectives. In the event of crises caused due to external factors such as caused by recent pandemic "COVID 19" the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds. These forecast and assumptions are reviewed by board of directors.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below :

- Foreign Exchange Risk

- Interest Rate Risk

- Credit risk

- Liquidity risk and

- Market risk

- Commodity Price Risk

(i) Risk management framework

The Company''s board of directors has overall responsibility for establishment and Oversight of the company''s risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the Mechanism of property defined framework.

The Company''s risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and company''s activities. The company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company''s receivables from customers and investments in debt securities. The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and export market. The management impact analysis shows credit risk and impact assessment as low.

Trade and other receivable

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The company management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the Directors of the company.

About 80% of the Company''s customers have been transacting with the company for over Five to Ten years, and no significant impairment loss has been recognized against those customers. In monitoring customer credit risk, Customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties.

The company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.

The carrying amount (net of loss allowances Rs Nil) of trade receivables is Rs. 3440.16 Lakhs (31st March, 2023 Rs. 3305.67 Lakhs)

During the year, the Company has made minor write-offs of trade receivables; it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off. The Company management also pursues all legal option for recovery of dues wherever necessary based on its internal assessment.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to

ensure, as for as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out at unit level and monitored through registered office of the Company in accordance with practice and limits set by the Company. These limits vary by location to take into account requirement, future cash flow and the liquating cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(iv) Market risk

Market risk is the risk that the Fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: Currency rate risk, Interest Risk and other price risk, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the

position as at reporting date. The analysis excludes the impact of movements in market variables on the carrying values of non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss items and equity is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2024 and March 31, 2023.

(a) Currency risk

The company is exposed to foreign exchange risk arising currency transaction, primarily with respect to the USD and small exposure in EUR and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

Currency risks related to the principal amounts of the Company''s foreign currency receivables and payables, taken by the Company.

Sensitivity analysis (a) Interest rate risk

The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During year ended 31 march 2024 and 31 march 2023, the Company''s borrowings at variable rate were denominated in INR.

The Company had obtained Corporate Term Loan of Rs. 40 Crore from SBI @ 10.80% PA (Previous Year @10.80% PA) Fixed. This Loan is Optional conversion of Corporate Loan into FCNRBTL on fully hedged basis with two way swing facility with waiver of 0% hedging, subject to availability of FCNR (B) funds. By this stipulation, such Interest rate will decrease when Increase in US $ rates and when US $ rates will decrease as a result, the interest rate burdon will increase but as per the terms and the conditions of the loan the same will not be more than 10.80% in any case.

Currently the Company''s borrowings are within acceptable risk levels, as determined by the management; hence the company has not taken any swaps to hedge the interest rate risk. The Company constantly monitors the credit markets and revisits its financing strategies to achieve an optimal maturity profile and financing cost.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

(a) Commodity price risks

The Company is exposed to the risk of price fluctuation of raw materials, dyes and chemicals, work-in-progress and finished goods. The Company manages its commodity price risk by maintaining adequate inventory of raw materials, dyes and chemicals, work-in-progress and finished goods considering future price movement. To counter raw materials risk, the Company worked with various suppliers of Raw Material with the objective to material cost, enhances application flexibility and increase product functionality and also invested product development and innovation. The Company''s Board of Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

i4. Capital management

The primary objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to purpose the board of directors regularly review the Company''s capital structure in light of the economic conditions, business strategies and future

45. The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC on the basis of Actuarial Valuation. For the FY 2023-24 employee group gratuity liabilities at Rs. 36.57 Lakhs on basis of Actuarial assumptions up to March 31, 2024 and accordingly the same has been provided in books for the year.

Employee benefit obligations :

The Company has classified various employee benefits as under:

(a) Leave obligations

The company does not have any leave obligations for sick and privileged leave.

(b) Defined contribution plans

(i) Provident fund

(ii) State defined contribution plans

(iii) Employee''s Pension Scheme, 1995

The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

(c) Post-employment obligation Gratuity

The Company has a defined benefit plan, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned.

(d) The above defined benefit gratuity plan is administrated 100% by Life InsuranceCorporation of India (LIC).

(e) Defined benefit liability and employer contributions: The Company will pay demand raised by LIC towards gratuity liability on time to time basis to eliminate the deficit in defined benefit plan.

46. The company lease assets primarily consists of Office Premises which are of Short-Term Lease with the twelve months or less and low value Leases. For those Short-Term and Low value leases, the company recognizes the lease payments as an expense in the Statement of Profit and Loss on a straight line basis over the term of lease.

During the year, the company has made the payment Rs. 9.98 Lakhs to the owner of premises (Previous Year March 31, 2023 Rs. 9.50 Lakhs).

47. The company during the year have received a government grant of Rs. 320.40 Lakhs per annuam from MPID towards investment in plant and machinery. The said government grant has been sanctioned for 07 years (i.e from 01.11.2019 to 31.10.2026) period, aggregating to Rs. 2242.80 Lakhs.

Government grants relating to the purchase of property, plant and equipment are recognized by deducting the same from carrying value of the related asset the grant is then recognized in profit or loss over the useful life of the depreciable asset by way of a reduced depreciation charge.

51. No Charges or Satisfaction are pending to be registered with ROC beyond the statutory period.

52. Where the Company has not Complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship or extent of holding of the company in such downstream companies shall be disclosed: NIL

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

(ii) The Company does not have any Benami property, where any proceeding has been initiated orpending against the Company for holding any Benami property.

(iii) As on 31st March, 2024 there is no unutilised amount in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

(iv) The company has not 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 assessment under the Income Tax Act, 1961 (Such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(v) In the opinion of the Board, all assets other than Property, Plant and Equipment, intangible assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

(vi) The Company has not been declared willful defaulter by any bank or financial institution or other lender.

(vii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956

(viii) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act 2013 during the current as well as the previous year.

(ix) Company has availed cash credit facility of Rs. 2000.00 Lakh from SBI and Rs. 1500.00 Lakh from HDFC Bank aggregating Rs. 3500.00 Lakhs and utilize the same for its working capital funding requirements and has taken Business Loan Rs. 4928.61 Lakhs which is outstanding as at 31.03.2024 from Banks and NBFS''s (Pre Year Rs. 5186.56 Lakhs ) and these Loan funds have been used/ Applied for the purpose of Business.

56. Disclosure related to Confirmation of Balances is as under:

(a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipt of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers is generally done on quarterly basis.

(c) In the opinion of the management, unconfirmed balances will not require any adjustment having any material impact on the

Financial Statements of the Company.

57. Figures for the previous year have been regrouped wherever found necessary.

58. Figures have been rounded off to nearest Lakhs

For ABMS & Associates For, TIRUPATI STARCH & CHEMICALS LTD

Chartered Accountants (FRN: 030879C)

Atul Sharma AMIT MODI RAMDAS GOYAL RAMESH GOYAL

Partner Managing Director Chairman & Whole Time Director Whole Time Director

Membership No.: 075615 Din : 03124351 Din : 00150037 Din : 00293615

Place: Indore

Date: 28/05/2024 ROHIT MANGAL ANURAG KUMAR SAXENA

(CFO) Company Secretary & Compliance Officer

M. No. : F8115

---

Mar 31, 2023

3.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The company recognizes a provision when there is present obligation as a result of a past e’p^dbctlhijytrequires an outflow of resources will be required to settle the obligation, in respect of which a rtahnable can be made.A disclosure for a contingent liability made when there is a possible obligation or a present odblhati may, but probably will not, require an outflow of resources. When there is a possible obligation or a oWigalrihn and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liabiady is

Contingent assets are not recognised in the financial statements since this may result in ithsnrofxigKrome that may never be realised. However, when the realisation of income is virtually certain, then tdheissititis not a contingent asset and is recognised Provisions, Contingent Liabilities, Contingent Assets and cjratBn^m reviewed at each Balance sheet date.

3.11 FINANCIAL INTRUMENTS :

A financial instrument is any contract that gives rise to a financial asset of one entitynaM Liability or Equity Instrument of another entity. Financial instruments also include derivative contracts sucn aurirarnay, foreign exchange forward contracts and interest rate swaps.

3.11.1 FINANCIAL ASSETS :

(a) Initial recognition and measurement

All financial assets are initially recognized at fair value. Transaction costs that are difadt-lyieLttto the acquisition or issue of financial assets and financial liabilities, which are not at fair vugheithfi) or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assstgniizeri iusing trade date accounting.

(b) Subsequent measurement

Financial assets carried at amortized cost

A financial asset is measured at amortized cost if it is held within a business model whose obihotlrold the asset in order to collect contractual cash flows(rather than to sell the instrument pontu act uri maturity to realize its fair value changes)and the contractual terms of the financial ase stngBpecified dates to cash flows that are solely payments of principal and interest on the principal amcandingitst

Financial assets at fair value through other comprehensive income (FVT OCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objectevedsbych both collecting contractual cash flows and selling financial assets and the contractual ternf^n^cJae asset give rise on specified dates to cash flows that are solely payments of principal and dmttiiest principal amount outstanding.

Financial assets at fair value through profit or loss (F VT PL)

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL.

(c) Equity Investments

All other equity investments are measured at fair value, with value changes recognized in SofitPirient and Loss, except for those equity investments for which the Company has elected to present the vl changes in ''Other Comprehensive Income''.

(d) Impairment of financial assets

''In accordance with IndAS 19, the Company uses ''Expected Credit Loss'' (ECL) model, for Evaluati: impairment of financial assets other than those measured at fair value through profitAnd los) (FVTP

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those defauitonvtht: financial instrument that are possible within 12 months after the reporting date);

or

• F ull lifetime expected credit losses (expected credit losses that result from all possibieeVrfaul over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime thosbass recognized from initial recognition of the receivables. The Company uses historical defaultdeahesntrje impairment loss on the portfolio of trade receivables. At every reporting date these histcmlfcaladtefaare reviewed and changes in the forward looking estimates are analyzed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where themaficanotsig increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

3.11.2 FINANCIAL LIABILITIES :

3.11.2.1 Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of direct ltabtetribu cost. F ees of recurring nature are directly recognized in the Statement of Profit and Loes as f cost.

3.11.2.2 Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. FnoT trad* other payables maturing within one year from the balance sheet date, the carrying amounts approxim fair value due to the short maturity of these instruments.

(i) Financial liabilities measured at amortized cost

After initial recognition, interest- bearing loans and borrowing are subsequently measured amortized cost using the EIR method. Gains and losses are recognized in statement of pro and Loss when the liabilities are derecognized as well as through the EIR amortizati process.

Amortized cost is calculated by taking into account any discount or premium on acquisitio and Fees or costs that are an integral part of the EIR. The EIR amortization is includ finance costs in the statement of profit and loss.

Trade Payables

These amounts represent liabilities for goods and services provided to the company prior the end of financial year which are unpaid. The amounts are unsecured and are usually pa within 30 to 120 days of recognition. Trade and other payables are presented as currern liabilities unless payment is not due within 12 months after the reporting period. They a: recognized initially at fair value and subsequently measured at amortized cost using effecti interest method.

(ii) Financial liabilities at fair value through profit or loss

F inancial liabilities at fair value through profit or loss include financial liabilities designai upon initial recognition as at fair value through profit or loss.

1. Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from financial asset expire or it transfers the financial asset and the transfer qualifies forcaderecog under Ind AS IP. A financial liability (or a part of a financial liability) is derecognized from t Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled o expir es.

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 i ordinary transaction between market participants at the measurement date. The fair value measure is based on the assumption that the transaction to sell the asset or transfer the liability; takes either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market in the most advantageous market for the asset liability.

The principal or the most advantageous market must be accessible by the company.

The fair value of an asset or liability is measured using the assumptions that market particip would use when pricing the asset or liability assuming that market participants act in theic econo best interest.

A fair value measurement of a non- financial asset takes into account a market participanos abili generate economic benefits by using the asset in its highest and best use or by selling to anot market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for wh sufficient data are available to measure fair value maximizing the use of relevant inputs aningunimi the use of unobservable inputs.

All Assets and Liabilities for which fair value is measured or disclosed in the financial s tatement: categorized within the fair value hierarchy, described as follows, based on the lowest levehatput t is significant to the fair value measurement as a whole:

Level - 1 - Quoted (unadjusted) market prices in active markets for identical asset or liabilit ie

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

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

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

For the purpose of fair value disclosures, the company has determined classes of assets aineds liabili on the basis of the nature, characteristics and risks of the asset or liability and the lefvaeilr of th value hierarchy as explained above.

. Leases

The company assesses at contract inception whether a contract is or contains a Lease. That is contract conveys the right to control the use of an identified asset for a period of time in exch for consideration.

Company as a Lessee

The company primarily lease consists of office premises which are in the nature of short-term le and lease of low value assets (i.e. those leases payments on short that have a lease term of Months or less from the commencement date and do not contain a purchase option).It also appl: the lease of low-value assets recognition exemption of leases that are considered to be low valu Lease payments on Short- term leases and leases of low-value assets are recognized as expense the statement of Profit & Loss on straight line basis over the term of lease.

3.12 EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable sthareholders, including deferred tax provision, by the weighted average number of equity shares outstandingtduryegr. F or the purpose ofcalculating dilutedearnings per share, the net profit for the periodattributableyo equ shareholdersandtheweighted average numberofsharesoutstandingduring theperiod isadjustedfor thsxffffidilutive pot ent ialequit y shares.

3.13 INCOME TAX :

The tax expense for the period comprises current and deferred tax. Tax is recognized in StatPimfit aid Loss, except to the extent that it relates to items recognized in the other comprehensive incomeity. im enrich case, the tax is also recognized in other comprehensive income or equity.

3.13.1 CURRENT TAX :

Current tax assets and liabilities are measured at the amount expected to be recovered front oothpaid taxation authorities, based on tax rates and laws that are enacted or substantively enactedtlatuteiet lRet date.

3.13.2 DEFERRED TAX :

Deferred tax is recognized on temporary differences between the carrying amounts of assetsl iainJ linbi the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to applyian thewhich the liability is settled or the asset realized, based on tax rates (and tax laws) that hav©t3B4H>ieBaLbstantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilitiest and astsviewed at the end of each reporting period.

3.13.3 MINIMUM ALTERNATIVE TAX (MAT) :

MAT credit is recognized as an asset only when and to the extent there is convincing evidencdCthapany will pay normal income tax during the specified period. In the year in which the MAT credit ei^jdalseto be recognized as an asset the said asset is created by way of credit to the statement of pbofitaand included in deferred tax assets. The company reviews the some at each balance sheet date andownitteK carrying amount of MAT entitlement to the extent there is no longer convincing evidence tot ttteateffec company will pay normal income tax during the specified period.

3.14 CASH AND CASH EQUIVALENTS :

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with arn0a;tiuiri&y of three months or less.

F or the purposes of the cash flow statement, cash and cash equivalents is as defined above,utstt arfdiOg bank over drafts.

3.15 CASH FLOW STATEMENT :

Cash flows are reported using the indirect method, whereby the net profit before tax is adjustedffiects of transactions of a non-cash nature, any deferrals or accruals of past or future operating tasdr rpaymEnts and item of income or expenses associated with investing or financing cash flows. The cash flowsefHomgpnvesting and financing activities of the Company are segregated

SEGMENT REPORTING

The operating segment has been identified and reported taking into account its internal finientiiagrerformance evaluation and organizational structure of its operations. Operating segment is reported in eheevaanMed by Board, considered as Chief operating Decision Maker under Ind AS "E8 Operating Segments."

The company senior management overseas the management of these risks. The senior Professionals twamfeiiage the financial risks and the appropriate financial risk governance framework for the company arebacCortrltei Board of Directors and Audit Committee. This process provided assurance the Company''s senior management that the yGofmpancial risktaking activities are governed by appropriate policies and procedures and that financial riektafkddmeasured and managed in accordance with Company policies and Company risk objectives. In the event of crises causedesiternal factors such as caused by recent pandemic "COVID 9" the management assesses the recoverability of its assetEtynofitilE liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through iat®ialaaatasource of funds. These forecast and assumptions are reviewed by board of directors.

The Board of Directors reviews and agrees policies for managing each of these risks which arizedasttbeiow

- F oreign Exchange Risk

- Interest Rate Risk

- Credit risk

- Liquidity risk and

- Market risk

- Commodity Price Risk

(i) Risk management framework

The Company''s board of directors has overall responsibility for establishment and Oversight campaay''s risk management framework. The board of directors has established the processes to ensure that manciigevaent controls risks through the Mechanism of property defined framework.

The Company''s risk management policies are established to identify and analyze the risks facE^Ccln^paay, to set appropriate risk limits and controls and to monitor risks and adherence to limits.

Risk management policies and systems are reviewed by the board annually to reflect changes in cmiaalkions and company''s activities. The company, through its training and management standards and procedurseloaimintain a disciplined and constructive control environment in which all employees understand their rolbMgatdions.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty tbin Sftirlamaiat fails to meet its contractual obligations, and arises principally from the company''s receivables from customervestments in debt securities. The carrying amount of financial assets represents the maximum credit exposure. Tihe monmDr credit risk very closely both in domestic and export market. The management impact analysis shows ckeand riimpact assessment as low.

Trade and other receivable

The Company''s exposure to credit risk is influenced mainly by the individual characteristicscof tgac]hi. However, management also considers the factors that may influence the credit risk of its customer bing itittcllefault risk of the industry and country in which customers operate.

The company management has established a credit policy under which each new customer is analyZgdua]ldy for creditworthiness before the Company''s standard payment and delivery terms and conditions are TfferCdmpany''s review includes market check, industry feedback, past financials and external ratings, if tVa^yalIie and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Anyesaksg excose limits require approval from the Directors of the company.

About 80% of the Company''s customers have been transacting with the company for over Five tori, eaayeao significant impairment loss has been recognized against those customers. In monitoring custoimeri sk,eQustomers are reviewed according to their credit characteristics, including whether they are an individual omaity, their geographic location, industry and existence of previous financial difficulties.

The company establishes an allowance for impairment that represents its expected credit lospestinfrtsrade and other receivables. The management uses a simplified approach for the purpose of computation of expedtbdoss for trade receivables.

The carrying amount (net of loss allowancesRs Nil)of trade receivables is Rs. 3308.67 Lakhs (3st March, 2022Rs. 3(45.79 Lakhs)

During the year, the Company has made minor write-offs of trade receivables; it does not expeivetfuture cash flows or recoveries from collection of cash flows previously written off. The Company management ufcsoaMiisgal option for recovery of dues wherever necessary based on its internal assessment.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligaciohsdasith its financial liabilities that are settled by delivering cash or another financial asset. The Company''s appnaadgilng liquidity is to ensure, as for as possible, that it will have sufficient liquidity to meet its liabilities when fhMyn due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to theiCbmpputation.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of tfhnnisligh an adequate amount of committed credit facilities to meet obligations when due and to close out market poDuiono the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding hpmginvailability under committed credit lines.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generalljoBhratiednit level and monitored through registered office of the Company in accordance with practice and limits sCtomptelmy. These limits vary by location to take into account requirement, future cash flow and the liquating cash maw in rrencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liqtiiditygainst internal and external regulatory requirements and maintaining debt financing plans.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities dtiefdirrwagh profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

(a) Commodity price risks

The Company is exposed to the risk of price fluctuation of raw materials, dyes and chemicak-praigr-iss and finished goods. The Company manages its commodity price risk by maintaining adequate inventory of raw mated® and chemicals, work -in-progress and finished goods considering future price movement. To countertEaialmaisk, the Company worked with various suppliers of Raw M aterial with the objective to material cost, eappliKcat^on flexibility and increase product functionality and also invested product development and innovation. The CompkHyd of Directors has developed and enacted a risk management strategy regarding commodity price riskmiliigition.

43. Capital management

The primary objective of the management of the Company''s capital structure is to maintain nitn mfiXide debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retahnmalffleadbility to purpose the board of directors regularly review the Company''s capital structure in light of the economic comliliine&s btrategies and future commitments. For the purpose of the company''s capital management, capital includes issued shaai, Preference shares capital and all other equity reserves. No significant changes were made in the objectives, poliprescesses relating to the management of the company''s capital structure.

50. N o Charges or Satisfaction are pending to be registered with ROC beyond the statutory period.

51. Where the Company has not Complied with the number of layers prescribed under clause (87) of1 safcthanAct read with the Companies (Restriction on number of Layers) Rules, 207, the name and CIN of the companies beyorpecified layers and the relationship or extent of holding of the company in such downstream companies shall be disdKHed :

52. (i) Company has not traded or invested in Crypto currency or Virtual Currency during the financialyear.

(ii) The Company does not have any Benami property, where any proceeding has been initiated orpendingtaghe Company for holding any Benami property.

(iii) As on 3st March, 2023 there is no unutilised amount in respect of any issue of securities tenhionQr rowings from banks and financial institutions. The borrowed funds have been utilised for the specific purwhsehfohe funds were raised.

(iv) The company has not any such transaction which is not recorded in the books of accounts that fausrbeiedered or disclosed as income during the year in the tax assessment under the Income Tax Act, 961 (Such chs , or survey or any other relevant provisions of the Income Tax Act, 96i)

(v) In the opinion of the Board, all assets other than Property, Plant and Equipment, intangiMIdasont¦eurrent investments have a value on realization in the ordinary course of business at least equal to the amount tatewhich stated.

(vi) The Company has not been declared willful defaulter by any bank or financial institution om dither le

(vii) The Company does not have any transactions with companies struck off under section 248 of the iCsApanOB or section 560 of the Companies Act, 956

(viii) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections3''2B0f ttthe Companies Act 20B during the current as well as the previous year.

(ix) Company has availed cash credit facility of Rs. 2000100 Lakh from SBI and utilize the same forktngcapital funding requirements and has taken Business Loan Rs. 4928.61Lakhs as outstanding as at 3 103.2023 fromsBankNBFS''s (Pre Year Rs. 5B6.56 Lakhs and these Loan funds have been used/Applied for the purpose of Business.

(c) In the opinion of the management, unconfirmed balances will not require any adjustment having! eniaMmpact on the F inancial Statements of the Company.

For ABMS & Associates For, TIRUPATI STARCH & CHEMICALS LTD

Chartered Accountants (FRN: 030879C)

Atul Sharma AMIT MODI RAMDAS GOYAL RAMESH GOYAL

Partner Managing Director Chairman & Whole Time Director Whole Time Director

Membership No.: 075615 Din : 03124351 Din : 00150037 Din : 00293615

Place: Indore

Date: 24/05/2023 ROHIT MANGAL PURNIMA NAGPAL

(CFO) Company Secretary & Compliance Officer

M. No. : A51898

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Mar 31, 2015

1. Contingent Liability not provided for in respect of :

(i) Regarding demand cases pending against the company from Custom & Central Excise Department:

a. The Company have show cause notices from the Custom & Central Excise Department for wrong classification of maize starch powder under Chapter Heading 11.03 instead of classified as modified starch falling under Chapter Heading 35.05 and raised demand of Rs. 11,35,74,846/- upto 31.03.2014 and further Rs. 1,95,70,093/- for the year 2014-15. But the Hon'ble Customs, Excise & Service Tax Appellate Tribunal Principal Bench New Delhi vide their order dated 21.11.2013 had rejected the Department Appeal being it is settled that maize starch powder is classifiable as plain starch falling under Chapter 11 and same cannot be held to be falling under Chapter 35. Hence the company have no demand pending for payment despite the fact the Central Excise Department have gone to higher Court. The company has already filed application for set-a-side the demand raised upto 31.12.2014.

b. The Company have another show cause notices from the Custom & Central Excise Department by disallowing the Centvat Credit as common input used in Hydrol cleared under S.H.1703.90 and raised demand of Rs. 88,15,748/- upto 31.03.2014 and further Rs. 9,00,254/- for the year 2014-15. But the Hon'ble Customs, Excise & Service Tax Appellate Tribunal Principal Bench New Delhi vide their order dated 09.07.2013 had set aside. The Tribunal also set aside the penalty and interest liability imposed in term of Section 11AA/AB of the Act. Hence the company have no demand pending for payment despite the fact the Central Excise Department have gone to Higher Court. The company has already filed application for set-a-side the demand raised upto 31.12.2014.

c. The Company have another show cause notices from the Custom & Central Excise Department for demanded of Rs.4,27,981/- on account of Cenvat Credit of Service Tax paid on outward transportation of finished goods which is not justified as credit on outward transportation is taken by Company as per provision of the Act and as advice by Excise consultant. The matter is still pending with D.C. Custom & Central Excise Pithampur.

d. The Company have another show cause notices from the Custom & Central Excise Department for Input used in Excisable Production & Credit taken of Service Tax on Input Services and Inward freight amounting to Rs.4,10,05,661/-. The aforesaid show cause notices has been issued without ascertaining as to whether the Company has violated the condition of Rule 6. The show cause notices will have to be dropped as in the Finance Act, 2010-11, retrospective amendment has been made wherein it has been provided that the assessee shall reverse the credit of input and input services used in manufacture of exempted goods and file application with the Commissioner who shall order for dropping of all such demands.

e. The Company have another show cause notices from the Custom & Central Excise Department for Input & Return Goods amounting to Rs.1,66,334/-. The liability is unconfirmed & matter is pending with CESTAT. However no provision for the same has been made on the basis of opinion of the Excise Consultants.

The Company has disputed the demand and preferred appeal before Appellate Authorities. No provision has been made for taxation related to the said demands on the basis of contention of the Board of Directors of the Company that the appeals will be in favour of the company.

iii) Bank Guarantee fav. Western Rs.11,25,000/- (11,25,000/-)

Coal field Ltd., Nagpur Krishiupaj Mandi Samiti Rs. 5,00,000/- (5,00,000/-)

iv) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/- before Hon'ble MP High Court, Indore out of which Rs. 1,28,000/- has been deposited & kept in advance as appeal is pending against the Court Decree and the appeal is likely to be decided in favour of the Company.

v) Mandi tax has been recognized as expenses upto June, 2013, which has been given to Mandi Authority and keep in separate account in pursuance of Court Order. In case the amount is refunded the same will be considered as Income in the year of its receipt. However from July 2013, Mandi Tax has not been deposited in view of decision of Hon'ble High Court of Madhya Pradesh, in the matter of Writ Petition No. 14227/2010 Dated 05/07/2013.

2. Provision on of Income Tax has been made during the year as per Taxation Laws.

3. Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs.100.00 Lacs (900.00 lacs) (net of credits) against which a sum of Rs.79.22 Lacs (Rs.496.10 Lacs) has been paid as advance.

4. During the year provision has been made in the accounts in respect of Excise Duty (including Cess) of Rs.18,03,811.25 (Rs.6,37,778/- ) payable on nucleated stock of finished goods lying in the factory premises as on 31/03/2015 and the same has been considered as an element of cost for the purpose of valuation of inventory at the year end.

5. Earning per share (EPS) for the Computation as per (AS 20)

i. Earning per share (EPS) for the year has been computed in accordance with the Accounting Standard-20 issued by the Institute of Chartered Accountants of India after considering provision for net deferred tax liability for the year as stated in note No.36.

6. Segment Reporting :

The Company has only a single reportable Segment in terms of the requirements of Accounting Standard-17 of the Institute of Chartered Accountants of India.

7. Related Party Disclosure (AS-18):

Disclosure of related party transactions as per Accounting Standard 18 of the Institute of Chartered Accountants of India.

(a) In accordance with Accounting Standard 22, 'Accounting for Taxes on Income' (AS 22), issued by the Institute of Chartered Accountants of India, the company has adjusted the difference for deferred tax during the year.

(b) The Company expects to generate taxable income in the coming years which will enable it to utilize the carried forward unabsorbed depreciation and MAT credit, but on conservative basis. No provision has been made for Deferred Tax Assets, while Deferred Tax Liability has been provided.

8. (a) In view of insufficient information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained.

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 2006. The Management does not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

9. Figures for the previous year have been regrouped and recasted wherever necessary.

10. Figures in brackets pertain to the previous year.

11. Debit, Credit balances and Balances with Banks, are subject to confirmation and reconciliation.

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Mar 31, 2014

1. CONTINGENT LIABILITY NOT PROVIDED FOR

(I) The following cases were pending against the company as confirmed by company's excise consultants :

(a) Cases related to classification of Plain Starch as modified Starch: Total Amount Involved Rs.11,35,74,846/-

* In the opinion of Excise Consultants An application has to be submitted to the department to drop the SCN's in the face of CESTAT's Older No A/5B390-58392/2013- EX(DB) dt, 21.11.2013.

(b) In the matter of disallowance of Cenvat Credit as Common input used in hydrol and demand of 8%, 10% on the value of clearance of Hydrol : Total Amount Involved Rs.88.15.748/- :-

In the opinion of Excise Consultants' An application has to be submitted to the DC/AC to drop the SCN's in the face of CESTAT's Order No. A/57063/2C13-EX(DB dt 09-07-2013 which has attained finality

(c) Demand for Rs.4,27,981/- Cenvat Credit of Service Tax paid on outward transportation of finished goods

* in the opinion of Excise Consultants undoubtedly credit on outward transportation can not be denied and the demards will be ultimately dropped, matter is pending with D.C. Pithampur.

(d) Show Cause Notices for input used in Excisable Production & Credit taken of Service Tax on Input Services ana Inward freight amounting to Rs.4,10,05,661/- :

* In the opinion of Excise Consultants the aforcsaid show cause notices has been issued without ascertaining as to whether the Company has violated the condition of Rule 6. Even if it s assumed that the Company has violated the condition of Rule 6 in that case also the snow cause notices will be dropped as in the finance Act, 2010-11, retrospective amendment has been made wherein it has been provided that the assessee shalI reverse the credit of input and input services used in manufacture of exempted goods and after certification of the same by the Chartered Accountant shall the application with the Commissioner who shall order for dropping of all such demands Thus ultimately the show cause notice are going to be dropped The liability is unconfirmed and matter is pending with CESTAT

(e) Show cause Notices for Input & Return Goods amounting to R$. 1,66,334/- :

The liability is unconfirmed & matter is pending with CESTAT.

No provision for the same has been made on the basis of above contention of the Excise Consultants'

(II) The assessment of Entry Tax, Madhya Pradesh Commercial Tax & Central Sates Tax for the different years are completed and the following demands were raised and are disputed

1995-96 1997-98 1906-90

MPST - 27041 -

Central sales Tax 175731 1796323 318392

The Company has disputed the demand and preferred appeal before appealing authorities No provision has been made for taxation related to the said demands on the basis of contention of the Beard of Directors of the Company that, the appeals will be accepted

iii) Bank Guarantee fav Western Rs 12,00,000/ (12,80 000/-) Coat feld ltd Nagpur

Krishiupa. Mandi Samiti Rs. 5,00,OOO/- (5,00.000/-) Margin Money against above

In form of fixed deposit Rs. 12.677'8/- 1197,718/-)

iv) Court Decree in the case of Smt. Sharda Bai for R$. 2,53,852/- before Hon'ble MR -High Court Indore out of which Rs. 1,28,000/- has been deposited & kapt in advance as appear, is bending against tie court Decree & the appeal is likely to be decided in Company s favour

v) Mandi tax has been recognized as e
2 Prnvtsicn on of Income Tax has been made during the year as pci Taxation Laws

3, Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs.900.'- Lacs (1200 lacs) against which a sum of Rs. 41382/- Lscs (Rs.495.10 Lacs) has been paid as advance

4 During the year provision has been made in the accounts in respect cf Excise duty (Including Cess) of Rs.36650/- (Rs 6,37,778.'-) payable on uncleared stock of finished goods lying in the factory premises as on 31/C3/2014 and the same has been considered as an element of cost for the purpose of valuator of Inventory as on 31/03/2014

5 The Auditors' Remuneration during the year is os under

2013 14 2012-13

Audit Fees lax Audit &Certification 2,27.500 00 1,60.000.00 Other Services 1.60 260.00 80.000.0C

Total 3,87.760.00 2.40,000.00

6. Figures for the previous year have been regrouped and recasted wherever necessary

7 Value of import ana indigenous material consumed (please refer Financial Statements and other information relating import and export are is under

(a) Value of imports calculated on GIF basis by the" company during the financial year in respect of

I, Raw Materials - Nil

II. Components and spare parts Nil

III. Capital Goods 11,26 765.00 1

(b) Eexpenditure in foreign currency during the Nil financial year on account ofroyaty, know-how professional and consultation fees, interest and other matters;

(ci) Total value if all imported raw materials, Nil spare parts and components. consumed during 'he financial year and the total value of all indigenous aw materials spare parts and components similarly consumed and the percentage of each to the total consumption (d) The amount remitted during the year in foreign currencies on account ot Nildividends with a specific mention of the total number of non--esidentshareholders the total number of shares held by them on which thedividends were due and the year tn which the dividends related

(5) Earnings in foreign exchange classified under the following heads, namely: -

I, Export of goods calculated on F O B basis 45573923,00 II. Royalty, know-how professionai and consultation fees, Nil lII. Interest and dividend Nil IV Other income, indicating the nature thereof Nil

8 Figures in brackets pertain to the previous year,

9. Debt, credit balances and Balances with Banks, are subject to confirmation and reconciliation

10 In Current years Excise Duty, coal consumption &. Stores Consumption are subject to reconciliations and confirmation. The outstanding balances of Trade Receivables Trade payables deposits advances and other current assets liabilities are subject to confirmation and reconciliation However in the opinion of the management adjustment if any will not be material.

11. in earlier years, the comeany has acquired the coa from Western Coal Field Ltd (WCL) through the intermediaries at e-auction price instead of Notified price and the difference was kept as Fixed Deosit which was to be refunded or adjusted as the case nay be as per judgments of Hon'ble court against petition. No adjustments in accounts was made due to uncertainty. During the year 2007-08 on judgment in the favour of coal users the company received a refund of Rs, 27,45010'- along with interest of Rs.4,05,900/- from WDL and the same was treated as miscellaneous income. The balance amount refundable if any is not ascertainable and therefore the same will be accounted for as miscellaneous income if any in the year of receipt,

12 A Export Benefits

The amount available towards Export Benefits under duty exemption or any other Scheme during the years has been ascertained on the basis of availabie records.

13 (a) In view of Insufficient information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained,

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 2006. The Management dees not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

14. [he Company has only a single reportable Segment in terms of the requirements of Accounting Standard 17 of the Institute of Chartered Accountants Of India

15 Related party disclosure [AS-18} Disclosure of resiled party transactions as per Accounting Standard 16 of the Institute of Chartered Accountants of India

(a) Key Management personnel

Dr Damodar Modi Chairman & M D

Shri Ramdas GoyaI Executive Director

Shri prakash Bapna Director

Shri Ramesh Chandra Coyal Director

Shri Yogesh Agrawai Director

Smt. Pramila Jajodia Director

Smt. Shochikaio IVtangal Director

Shi Vinod Gsrg Independent Director

Shi Ashish Agrawai Independent Director

Shri Satisli Chandra Vtangal Independent Director

---

Mar 31, 2013

1. CONTINGENT LIABILITY NOT PROVIDED FOR :

(i) The following cases were pending against the company as confirmed by company''s excise consultants :

(a) Cases related to classification of Plain Starch as modified Starch: Total Amount Involved Rs.200948751/ :-

– In the opinion of Excise Consultants'' since the chemical examiner report clearly says that the starch is plain starch and not modified starch, the pending Show Cause Notices are likely to be dropped on the basis of previous order of the Commissioner.

(b) In the matter of disallowance of Cenvat Credit as Common input used in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol : Total Amount Involved Rs.86,75,435/- :- – In the opinion of Excise Consultants'' moreover recently this issue has already been settled by the Hon''ble High

Court of Bombay in the case of RALLIS INDIA LTD. Versus UNION OF INDIA 2009 (233) E.L.T. 301 (Bom.) wherein it was held that Rule 6(b)(3) has no application in case of waste and residue. Thus all the demands has no legal base and will eventually will result into dropping of demands as the Tribunals is bound to follow High Court Orders.

(c) Demand for Rs.4,27,981/- Cenvat Credit of Service Tax paid on outward transportation of finished goods :- – In the opinion of Excise Consultants'' undoubtedly credit on outward transportation can not be denied and the demands will be ultimately dropped.

(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demand of 10% of the value of exempted goods on the ground

of availment of Cenvat Credit Total demand Rs.4,10,05,661/- :- – In the opinion of Excise Consultants'' the aforesaid show cause notices has been issued without ascertaining as to whether the Company has violated the condition of Rule 6. Even if it is assumed that the Company has violated the condition of Rule 6, in that case also the show cause notices will be dropped as in the Finance Act, 2010-11, retrospective amendment has been made wherein it has been provided that the assessee shall reverse the credit of input and input services used in manufacture of exempted goods and after certification of the same by the Chartered Accountant shall file application with the Commissioner who shall order for dropping of all such demands. Thus ultimately the show cause notice are going to be dropped.

No provision for the same has been made on the basis of above contention of the Excise Consultants''.

iv) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/- before Hon''ble MP High Court, Indore out of which Rs. 1,28,000/- has been deposited & kept in advance as appeal is pending against the court Decree & the appeal is likely to be decided in Company''s favour.

v) Mandi tax has been recognized as expenses, which has been given to Mandi Authority to keep in a separate account in pursuance of Court Order and if the money is refunded the same will be considered as Income in that year.

2. Provision on of Income Tax has been made during the year as per Taxation Laws.

3. Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs. 1200 Lacs (600 lacs) against which a sum of Rs.496.10 Lacs (Rs.130.81 Lacs) has been paid as advance.

4. During the year provision has been made in the accounts in respect of Excise duty (Including Cess) of Rs.6,37,778/- (Rs.4,78,390/-) payable on uncleared stock of finished goods lying in the factory premises as on 31/03/2013 and the same has been considered as an element of cost for the purpose of valuation of inventory as on 31/03/2013.

7. Figures for the previous year have been regrouped and recasted wherever necessary.

8. Value of import and indigenous material consumed (please refer Financial Statements).

9. Figures in brackets pertain to the previous year.

10. Debit Credit balances and Balances with Banks are subject to confirmation and reconciliation.

11. There is a difference of Rs. 5,12,849/- (Rs 5,12,849/-) in books records and Excise records pertaining to earlier years and Current years Excise Duty Accounts, coal consumption details & Stores Accounts are subject to reconciliations and confirmation.

12. In earlier years, the company has acquired the coal from Western Coal Field Ltd. (WCL) through the intermediaries at e- auction price instead of Notified price and the difference was kept as Fixed Deposit which was to be refunded or adjusted as the case may be as per judgments of Hon''ble Court against petition. No adjustments in accounts was made due to uncertainty. During the year 2007-08 on judgment in the favour of coal users, the company received a refund of Rs.27,45,910/ - alongwith interest of Rs.4,05,900/- from WCL and the same was treated as miscellaneous income. The balance amount refundable if any is not ascertainable and therefore the same will be accounted for as miscellaneous income if any in the year of receipt.

13A. Export Benefits

The amount available towards Export Benefits under duty exemption or any other Scheme during the years has been ascertained on the basis of available records.

14. (a) In view of insufficient information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained.

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 2006. The Management does not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

15. The Company has only a single reportable Segment in terms of the requirements of Accounting Standard-17 of the Institute of Chartered Accountants of India.

Nature and amount of Transactions :

i) Managerial Remuneration (As detailed in 10 above) Rs.1,00,42,466/- (Rs.1,01,03,770.00) (Subject to approval in Annual General Meeting)

ii) Amount received as Unsecured Loan Rs.4,24,85,464/- (Rs.3,87,12,157/-) from key Management Personnel & relatives.

iii) Interest on the above Rs.43,63,581/- (Rs.42,63,009/-).

16. Earning per share (EPS) for the Computation as per (AS 20)

a. Earning per share (EPS) for the year has been computed in accordance with the Accounting Standard-20 issued by the Institute of Chartered Accountants of India after considering provision for net deferred tax liability for the year as stated in note No.42.

(a) In accordance with Accounting Standard 22, ''Accounting for Taxes on Income'' (AS 22), issued by the Institute of Chartered Accountants of India, the company has adjusted the difference for deferred tax during the year.

(b) The Company expects to generate taxable income in the coming years which will enable it to utilize the carried forward unabsorbed depreciation and MAT credit.

Note :

1. Figures in brackes represents cash outflow.

2. Figures for previous year have been rearranged and re-grouped wherever necessary.

3. For purpose of Trade Advance and Trade Payables current liabilities directly related to other activities have been excluded.

4. Previous years figures have been reclassified to confirm to the current years presentation.

---

Mar 31, 2012

CONTINGENT LIABILITY NOT PROVIDED FOR:

i) The following cases were pending against the company as confirmed by company's excise consultants :

(a) Cases related to classification of Plain Starch as modified Starch -.Total Amount Involved Rs18,51,55,150/-

- In the opinion of Excise Consultants' since the chemical examiner report clearly says that the starch is plain starch and not modified starch the pending Show Cause Notices are likely to be dropped on the basis of previous order of the Commissioner.

(b) In the matter of disallowance of Cenvat Credit as Common input used in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol: Total Amount Involved Rs. 69,34,608/-.

- In the opinion of Excise Consultants' moreover recently this issue has already been settled by the Hon'ble High Court of Bombay in ithe case of RALLIS INDIA LTD. versus UNION OF INDIA2009 (233) E.L.T. 301 (Bom.) wherein it was held that Rule 6(b)(3) has no application is case of waste and residue. Thus all the demands has no legal base and will eventually will result into dropping of demands as the Tribunals is bound to follow High Court Orders.

(c) Demand for Rs. 4,21,765/- Cenvat Credit of Service Tax paid on outward transportation of finished goods:

- In the opinion of Excise Consultants' undoubtedly credit on outward transportation can not be denied and the demands will be ultimately dropped.

(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demand of 10% of the value of exempted goods on the ground ofavailment of Cenvat Credit Total demand Rs. 4,10,05,661/-.

- In the opinion of Excise Consultants' the aforesaid show cause notices has been issued without ascertaining as to whether the Company has violated the condition of Rule 6. Even if it is assumed that the Company has violated the condition of Rule 6, in that case also the show cause notices will be dropped as in the Finance Act, 2010-11, retrospective amendment has been made wherein it has been provided that the assessee shall reverse the credit of input and input services used in manufacture of exempted goods and after certification of the same by the Chartered Accountant shall file application with the Commissioner who shall order for dropping of all such demands. Thus ultimately the show cause notice are going to be dropped.

(e) As regard Appeal No. E/3683/2003-NB(SM) Rs. 1,66,334/-in the matter of Credit on returned goods. In this case the commissioner (Appeals) vide Order-in-appeal has allowed credit of Rs. 1,04,242/- vide Order-in-Appeal and disallowed the credit of Rs. 62,592/-. The Company has filed appeal before Tribunal against disallowance of credit of Rs. 62,592/-. The Tribunal vide Final Order No. A/699/04-NB(SM) dated 16.04.2004 has allowed the appeal by way of remand. Hence as on today there is no demand against the Company.

(f) As regard Appeal No. E/995/2012 for disallowance of Cenvat of Rs. 1,95,254/of common use of GTAin dutiable and exempted goods against the order of Commissioner (Appeals) vide Order-in-Original No. 01-03/COMMER/ CEX/IND/2012 dated 04.01.2012. The company has filed appeal before Tribunal and hearing date is fixed on 09.10.2012.

No provision for the same has been made on the basis of above contention of the Excise Consultants.

ii) The assessment of Entry Tax, Madhya Pradesh Commercial Tax & Central Sales Tax for the different years are completed and the following demands were raised and are disputed :

The Company has disputed the demand and preferred appeal before appealing authorities. No provision has been made for taxation related to the said demands on the basis of contention of the Board of Directors of the Company that the appeals will be accepted.

iii) The assessment of assessment year 2009-10 has been completed & appeal with CIT (A)ll, Indore was decided on 19/06/201. The liability thereof is not ascertainable after appeal effect. The liability will be recognized after receiving revised computation for appeal effect.

v) Court Decree in the case of Smt. Sharda BaiforRs. 2,53,852/-before Hon'bleMP High Court, Indore out of which Rs. 1,28,000/- has been deposited & kept in advance as appeal is pending against the court Decree & the appeal is likely to be decided in Company's favour.

vi) Mandi tax has been recognized as expenses, which has been given to Mandi Authority to keep in a separate account in pursuance of Court Order and if the money is refunded the same will be considered as Income in that year.

1. Provision on of Income Tax has been made during the year as per Taxation Laws.

2. Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs. 600 Lacs (NIL) against which a sum of Rs. 13.09 Lacs (Rs.5.93 Lacs) has been paid as advance.

3. During the year provision has been made in the accounts in respect of Excise duty (Including Cess) of Rs. 4,78,390/- (Rs. 4,20,807/-) payable on uncleared stock of finished goods lying in the factory premises as on 31/03/2012 and the same has been considered as an element of cost for the purpose of valuation of inventory as on 31/03/2012.

4. Figures for the previous year have been regrouped and recasted wherever necessary.

5. Figures in brackets pertain to the previous year.

6. Debit, Credit balances and Balances with Banks, are subject to confirmation and reconciliation.

7. There is a difference of Rs. 5,12,849/- (Rs. 5,12,849/-) in books records and Excise records pertaining to earlier years and current year Excise Duty Accounts, coal consumption details & store account are subject to reconciliations and confirmation.

8. In earlier years, the company has acquired the coal from Western Coal Field Ltd. (WCL) through the intermediaries ate- auction price instead of Notified price and the difference was kept as Fixed Deposit which was to be refunded or adjusted as the case may be as per judgments of Hon'ble Court against petition. No adjustments in accounts was made due to uncertainty. During the year 2007-08 on judgment in the favour of coal users, the company received a refund of Rs. 27,45,910/- alongwith interest of Rs.4,05,900/- from WCL and the same was treated as miscellaneous income. The balance amount refundable if any is not ascertainable and therefore the same will be accounted for as miscellaneous income if any in the year of receipt.

9. Export Benefits :

The amount available towards Export Benefits under duty exemption or any other Scheme during the years has been ascertained on the basis of available records.

10. (a) In view of insufficient information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained.

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 2006. The Management does not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

11. The Company has only a single reportable Segment in terms of the requirements of Accounting Standard-17 of the Institute of Chartered Accountants of India.

12. Related party disclosure (AS-18)

Disclosure of related party transactions as per Accounting Standard 18 of the Institute of Chartered Accountants of India.

13.a. Key Management personnel:

Dr. Damodar Modi Chairman & M.D.

Shri Ramdas Goyal Executive Director

Shri Prakash Bafna Whole Time Director

Shri Ramesh Chandra Goyal Whole Time Director

Shri Yogesh Agrawal Whole Time Director

Smt. Pramila Jajodia Director

Smt. Shashikala Mangal Director

Shri Vinod Garg Director

Shri Ashish Agrawal Director

Shri Satishchandra Mangal Director

Nature and amount of Transactions :

(i) Managerial Remuneration (As detailed in 10 above) Rs. 97,03,770 (Rs. 55,36,960) (Subject to approval in Annual General Meeting)

(ii) Amount received as Unsecured Loan Rs. 3,87,12,157/- (Rs. 3,90,00,483/-) from key Management Personnel & relatives.

(iii) Interest on the above Rs. 42,63,009/- (Rs. 42,58,338/-).

14. Earning per share (EPS) for the Computation as per (AS 20)

(a) Earning per share (EPS) for the year has been computed in accordance with the Accounting Standard-20 issued by the Institute of Chartered Accountants of India after considering provision for net deferred tax liability for the year as stated in note No. 18.

a) In accordance with Accounting Standard 22, 'Accounting for Taxes on Income' (AS 22), issued by the Institute of Char- tered Accountants of India, the company has adjusted the difference for deferred tax during the year.

b) The company expects to generate taxable income., in the coming years which will enable it to utilize the carried forward unabsorbed depreciation of MAT credit.

15. The financial statements for the year ended March 31, 2011 were prepared as per the then applicable, erstwhile Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous years figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

16. Information pursuant to the provision of Part IV of Schedule VI of the Companies Act, 1956 are enclosed.

---

Mar 31, 2011

1. CONTINGENT LIABILITY NOT PROVIDED FOR:

i) The following cases were pending against the company as confirmed by company's excise consultants :

(a) Cases related to classification of Plain Starch as modified Starch : Total Amount Involved Rs. 18,51,55,150/- In the opinion of Excise Consultants' since the chemical examiner report clearly says that the starch is plain starch and not modified starch the pending Show Cause Notices are likely to be dropped on the basis of previous order of the Commissioner.

(b) In the matter of disallowance of Cenvat Credit as Common input used in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol: Total Amount Involved Rs. 69,34,608/-.

In the opinion of Excise Consultants' moreover recently this issue has already been settled by the Hon'ble High Court of Bombay in ithe case of RALLIS INDIA LTD. versus UNION OF INDIA2009 (233) E.L.T. 301 (Bom.) wherein it was held that Rule 6(b)(3) has no application is case of waste and residue. Thus all the demands has no legal base and will eventually will result into dropping of demands as the Tribunals is bound to follow High Court Orders.

(c) Demand for Rs. 4,21,765/- Cen vat Credit of Service Tax paid on outward transportation of finished goods:

In the opinion of Excise Consultants' undoubtedly credit on outward transportation can not be denied and the demands will be ultimately dropped.

(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demandof10% of the value of exempted goods on the ground of a ailment of Cen vat Credit Total demand Rs. 4,10,05,661/-.

In the opinion of Excise Consultants' the aforesaid show cause notices has been issued without ascertaining as to whether the Company has violated the condition of Rule 6. Even if it is assumed that the Company has violated the condition of Rule 6, in that case also the show cause notices will be dropped as in the Finance Act, 2010-11, retrospective amendment has been made wherein it has been provided that the assesses shall reverse the credit of input and input services used in manufacture of exempted goods. Thus ultimately the show cause notice are going to be dropped.

(e) As regard Appeal No. E/3683/2003-NB(SM) Rs. 1,66,334/- in the matter of Credit on returned goods. In this case the commissioner (Appeals) vide Order-in-appeal has allowed credit of Rs. 1,04,242/- vide Order-in-Appeal and disallowed the credit of Rs. 62,592/-. The Company has filed appeal before Tribunal against disallowance of credit of Rs. 62,592/-. The Tribunal vide Final Order No. A/669/04-NB(SM) dated 16.04.2004 has allowed the appeal by way of remand. Hence as on today there is no demand against the Company.

No provision for the same has been made on the basis of above contention of the Excise Consultants.

The Company has disputed the demand and preferred appeal before appealing authorities. No provision has been made for taxation related to the said demands on the basis of contention of the Board of Directors of the Company that the appeals will be accepted.

ii) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/- before Hon'ble MP High Court, Indore out of which Rs. 1,28,000/- has been deposited & kept in advance as appeal is pending against the court Decree & the appeal is likely to be decided in Company's favour.

2. Provision on of Income Tax has been made during the year as per Taxation Laws.

3. Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs.NIL (Rs.25,00,000/-) against which a sum of Rs.Nil (Rs. 12,37,064/-) has been paid as advance.

4. During the year provision has been made in the accounts in respect of Excise duty (Including Cess) of Rs. 4,20,807/- (Rs. 1,50,836/-) payable on uncleared stock of finished goods lying in the factory premises as on 31/03/2011 and the same has been considered as an element of cost for the purpose of valuation of inventory as on 31/03/2011.

5. Figures for the previous year have been regrouped and recasted wherever necessary.

6. Figures in brackets pertain to the previous year.

7. Debit, Credit balances and Balances with Banks, are subject to confirmation and reconciliation.

8. There is a difference of Rs. 5,12,849/- (Rs 5,12,849/-) in books records and Excise records pertaining to earlier years and current year Excise Duty accounts coal consumption details of store account are subject to reconciliations and confirmation.

9. In earlier years, the company has acquired the coal from Western Coal Field Ltd. (WCL) through the intermediaries at e- auction price instead of Notified price and the difference was kept as Fixed Deposit which was to be refunded or adjusted as the case may be as per judgments of Hon'ble Court against petition. No adjustments in accounts was made due to uncertainty. During the year 2007-08 on judgment in the favour of coal users, the company received a refund of Rs. 27,45,910/- along with interest of Rs.4,05,900/- from WCL and the same was treated as miscellaneous income. The balance amount refundable if any is not ascertainable and therefore the same will be accounted for as miscellaneous income if any in the year of receipt.

10. Export Benefits:

The amount available towards Export Benefits under duty exemption or any other Scheme during the years is not ascertainable. Therefore the same has not been accounted for during the year and the same will be accounted for on ascertainment of amount involves.

11. Increase in Managerial Remuneration :

The managerial remuneration has been increased w.e.f. 01.10.2010 and the same is subject to confirmation of Share Holders in next Annual General Meeting.

12. (a) In view of insufficient/information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained.

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 206. The Management does not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

13. The Company has only a single reportable Segment in terms of the requirements of Accounting Standard-17 of the Institute of Chartered Accountants of India.

14. Related party disclosure (AS-18)

Disclosure of related party transactions as per Accounting Standard 18 of the Institute of Chartered Accountants of India.

Nature and amount of Transactions :

(i) Managerial Remuneration (As detailed in 10 above) Rs. 55,50,710 (Rs. 69,15,033) (Subject to approval in Annual General Meeting)

(ii) Amount received as Unsecured Loan Rs. 3,90,00,483/- (Rs. 4,28,12,817,/-) from key Management Personnel & relatives.

(iii) Interest on the above Rs. 42,58,338/- (Rs.50,71,537/-).

15. Earning per share (EPS) for the Computation as per (AS 20)

(a) Earning per share (EPS) for the year has been computed in accordance with the Accounting Standard-20 issued by the Institute of Chartered Accountants of India after considering provision for net deferred tax liability for the year as stated in note No. 18.

a) In accordance with Accounting Standard 22, 'Accounting for Taxes on Income' (AS 22), issued by the Institute of Char- tered Accountants of India, the company has adjusted the difference for deferred tax during the year.

The company expects to generate taxable income. In the coming years which will enable it to utilize the carried forward unabsorbed depreciation of MAT credit.

16. Information pursuant to the provision of Part IV of Schedule VI of the Companies Act, 1956 are enclosed.

Note:

1. Figures in brackets represents cash outflow.

2. Figures for previous year have been rearranged and re-grouped wherever necessary.

3. For purpose of Trade Advances and Trade Payables current liabilities directly related to other activities have been excluded.

---

Mar 31, 2010

1. CONTINGENT LIABILITY NOT PROVIDED FOR:

(i) The following cases were pending against the company as confirmed by company excise consultants :

a) Appeal by Central Excise Department against Order in Original No.26-27 dtd.21.07.06 f 9,34,36,459/- in the matter of classification of Maize Starch

b) SCN No. V(35)15-04/2007/Adj. 1/31986 dated 03.12.2007 Rs.26663128/- in the matter of Classification dispute of Notice No.3/2006.

c) SCN NO. V(35)15-01/2008/Adj.l/28532 dated 22.10.2008 Rs.26458042/- in the matter of Classification dispute of Maize Starch.

d) Appeal No.E/2990/06/C.Excise dated 06.09.2006 Rs. 4,58,096/-

e) Appeal No.E/1241/06 Rs. 7,33,488/-

f) SCN NO. IV(16)30-318/OT/Pith/Adj/8795 dated 07.12.2007 Rs. 393622/- in the matter of Disallow of Cenvat Credit as common Input used in Hydrol.

g) SCN NO. IV(16)30-76/08/Pith/Adj/1666 dated 10.03.2008 Rs. 477802/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

h) SCN NO. IV(16)30-336/08/Adj/8667 dated 05.12.2008 Rs. 495842/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

i) SCN NO. iV(16)30-95/08-09/Adj/11450 dated 06.03.2009 Rs. 484387/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

j) SCN NO. IV(16)30-136/06/Pith/5975 dated 11.09.2006 Rs. 470576/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

k) SCN NO. IV(16)30-65/07/Pith/1003 dated 28.02.2007 Rs. 466136/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

l) SCN NO. IV(16)30-66/07/Pith/Adj/1006 dated 28.02.2007 Rs. 484341/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

m) SCN NO. IV(16)30-43/08/Pith/Adj/3433 dated 12.05.2008 Rs. 406131/- in the matter of Disallow of Cenvat Credit as common input used in Hydrol.

n) SCN NO. IV(16)30-12/09/Pith/Adj/10048 dated 19.01.2009 Rs. 42464/- in the matter of Credit availed on service tax paid on outward transportation.

o) SCN NO. IV(16)30-219/08/Adj/5092 dated 0.07.2008 Rs. 302663/- in the matter of Credit availed on service tax paid on outward transportation.

p) SCN NO. V(35) 15-02/07/Adj/23327 dt.09.08.2007. Demand of Rs. 20843640/- has been issued on the ground that M/ s Tirupati Starch availed credit of service tax availed on Input Services which were also used for exempted goods.

q) SCN NO. V(17) 15- /2007/Adj.1/25123 dt.06/09/2007. Demand of Rs. 16399760/- i.e.10% of value of exempted goods.

r) SCN NO. V(935) 15-02/15982 dt.25.06.2008. Demand of Rs. 3762261/-i.e.10% of value of exempted goods on the ground of non maintenance of separate record of inputs of dutiable and exempted goods.

s) Appeal No.E/3683/2003-NB(SM) Rs. 166334/- in the matter of Credit on returned goods.

In opinion of the excise consultant the demand have no legal base and will eventually result in dropping of demands and company will not be required to pay the amount therefore no provision has been made in the accounts.

(ii) a) The Income Tax assessments for the assessment year 1988-89 to 1994-95 had already been completed and the authorities have made certain additions due to unsecured loans/share capital etc. and reducing the amount of unabsorbed depreciation & investment allowance. The total demand disputed by the company is Rs. 1,12,564/-(Rs. 1,12,564/-) and against this an amount equivalent to demand of earlier year (alongwith upto date interest) amounting to Rs. 99,114/- (Rs. 99,114) has been deposited and is kept in other advances. The Tribunal authorities have given some relief and have also confirmed some disallowances.

b) The Income Tax Assessment for the assessment year 1995-96 was pending with Honble Tribunal and case was remanded back to AO with certain direction. Assessing Officer and CIT (A) had confirmed the addition and raised a demand of Rs. 1,92,586/- The company had preferred an appeal with Honble ITAT and the same has been settled during the year no provision for taxation has been made for the said demands on basis of contention of the board of directors of the company that it will be made after receipt of revised demand note from IT Authorities. Although company has made payment of Rs. 1,92,586/-. The interest demand of Rs. 1,53,648/- is pending.

c) The Income Tax Assessment for the assessment year 1998-99 has also been completed and the authorities had made additions of Rs. 5,58,640/- reducing the amount of unabsorbed depreciation and Tribunal has partly allowed the appeal. The provisions if any will be made on receipts of amendment of orders after giving effect of the appeal as no demand has been raised so far.

d) The Income Tax Assessment for the assessment year 2000-2001 has also been completed and the tribunal has partly allowed the appeal. The authorities have made an addition of Rs. 95,009/- reducing the amount of unabsorbed depreciation. The provision if any will be made on receipts of amendment of earlier orders after giving affect of the appeal as no demand has been raised so far.

e) The Income tax Assessment for the assessment year 2004-2005 has also been completed and the authorities have made an addition of Rs. 2,87,094/- with Nil demand reducing the amount of unabsorbed depreciation. The company had made an appeal with commissioner of Income Tax (Appeal), Indore against the addition and disallowance.

f) The Income Tax Assessment for the assessment year 2005-2006 has also been completed and the authorities have made an addition of Rs. 6,00,834/- with Nil demand reducing the amount of unabsorbed depreciation. The matter is pending with learned CIT (Appeals) II, Indore.

The Company has disputed the demand and preferred appeal before appealing authorities. No provision has been made for taxation related to the said demands pertaining to Excise, Income Tax and Sales Tax on the basis of contention of the Board of Directors of the Company that the appeals will be accepted.

v) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/- before Honble MP High Cpurt, Indore out of which Rs. 1,28,000/- has been deposited & kept in advance as appeal is pending against the court Decree & the appeal is likely to be decided in Companys favour.

2. Provision on of Income Tax has been made during the year as per Taxation Laws.

3. Estimated amount of contracts remaining to be executed on Capital account are not provided is Rs. 25,00,000/-(Rs. 30,00,000/-) against which a sum of Rs.12,37,064/- (Rs.16,57,974/-) has been paid as advance.

4. During the year provision has been made in the accounts in respect of Excise duty (Including Cess) of (Rs. 1,50,836/-) (Rs. 1,12,938/-) payable on uncleared stock of finished goods lying in the factory premises as on 31/03/2010 and the same has been considered as an element of cost for the purpose of valuation of inventory as on 31/03/2010.

5. The Auditors Remuneration during the year is as under:

6. Figures for the previous year have been regrouped and recasted wherever necessary.

7. Figures in brackets pertain to the previous year.

8. Debit, Credit balances and Balances with Banks, are subject to confirmation and reconciliation.

9. Managerial Remuneration includes :

10. There is a difference of Rs. 5,12,849/- (Rs. 5,12,849/-) in books records and Excise records pertaining to earlier years and Excise Duty accounts are subject to reconciliations and confirmation.

11. In earlier years, the company has acquired the coal from Western Coal Field Ltd. (WCL) through the intermediaries at e-auction price instead of Notified price and the difference was kept as Fixed Deposit which was to be refunded or adjusted as the case may be as per judgments of Honble Court against petition. No adjustments in accounts was made due to uncertainty. During the year 2007-08 on judgment in the favour of coal users, the company received a refund of sf 27,45,910/- alongwith interest of Rs. 4,05,900/ from WCL and the same was treated as miscellaneous income. The balance amount refundable if any is not ascertainable and therefore the same will be accounted for as miscellaneous income if any in the year of receipt.

12. Export Benefits

Export Benefits under duty exemption advance licence scheme. During the year the claims amounting to Rs. 9,16,282/- towards Vishesh Krishi Upaj Yojna and DBPB from Govt.of India, Ministry of Commerce and Industries has been admitted and Rs. 4,10,242/ has been utilized during the year by crediting DEPB benefits and VAT ITR. The balance Rs. 5,06,040.00 has been accounted for as other receipts and any further claim if any under. Duty exemption pass book scheme duty drawback scheme or other schemes will be accounted for on ascertainment of amount involved.

13. (a) In view of insufficient information from suppliers regarding their status as SSI units amount overdue to such undertaking could not be ascertained.

(b) The company is in the process of compiling the additional information require to be disclosed under the Micro Small Enterprises Development Act 2006. The Management does not envisage any material impact on the financial statement in this regard which has been relied upon by the Auditors.

14. The Company has only a single reportable Segment in terms of the requirements of Accounting Standard-17 of the Institute of Chartered Accountants of India.

15. Related party disclosure (AS-18)

Disclosure of related party transactions as per Accounting Standard 18 of the Institute of Chartered Accountants of India.

Key Management personnel :

Dr. Damodar Modi Chairman & M.D.

Srjri Ramdas Goyal Executive Director

Shri Prakash Bapna Whole Time Director

Shri Ramesh Chandra Goyal Whole Time Director

Shri Yogesh Agrawal Whole Time Director

Smt. Pramila Jajodia Director

Smt. Shashikala Mangal Director

Shri Vinod Garg Director

Shri Ashish Agrawal Director

Shri Tejpal Lunawat Director



Nature and amount of Transactions:

(i) Managerial Remuneration (As detailed in 10 above) Rs. 69,15,033.00 (Rs. 44,41,608.00) (Subject to approval in Annual General Meeting)

(ii) Amount received as Unsecured Loan Rs. 4,28,12,817/- (Rs. 5,23,62,981/-) from key Management Personnel & relatives.

(iii) Interest on the above Rs. 50,71,537/- (Rs. 58,93,374/-).

16. Earning per share (EPS) for the Computation as per (AS 20)

17. Information persuant to the provision of Part IV of Schedule VI of the Companies Act, 1956 are enclosed.