11. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is made in the books of account where there is a present obligation as a result of past event that probably requires an outflow
of resources and reasonable estimate can be made.

A disclosure for contingent liability is made when there is a possible obligation or present obligation that arises from past event and the
outflow of resources embedding economic benefit is not probable. A contingent liability or a provision at the balance sheet date is not
disclosed or recognised if the possibility of any outflow of resources in settlement is remote

Contingent Asset is not recognised in financial statements since this may result in 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 and Contingent Assets are reviewed at each Balance Sheet Date.

12. FINANCIAL INSTRUMENTS

Initially Financial Assets and Financial Liabilities are recognised at transaction cost directly attributable to their acquisition.

Financial Assets

Financial assets comprises of Trade Receivable at their transaction price, if they do not contain a significant financing component.

The company de-recognises a financial asset only when the contractual rights to the cash flows from the financial asset expires or it
transfers the financial assets and transfer qualifies for de-recognition.

Financial Liabilities

Financial liabilities of the nature of trade and other payable maturing within one year from the balance sheet date, carrying amount is
considered as fair value, as it approximates fair value due to the short term maturity of these liabilities.

A financial liability is de-recognised when the obligation is discharged, cancelled or expires.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amounts are presented in the financial statements, if there is a currently
legal enforceable right to offset the recognized amount and the company intends to settle or realize on net basis.

13. LEASES

The company holds a Land, where the factory is situated, which is owned by the Government of Andra Pradesh and leased to the
company for use for industrial purpose only.

14. CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes 'Cash on Hand, Demand deposits with banks, Other short term highly liquid investments with
original maturities of 3 months or less that are readily convertible into known amounts of cash and which are subject to an insignificant
risk of changes in value.

15. EARNINGS PER SHARE (EPS)

Earnings Per Share (EPS) is computed by diving net profit attributable to the equity share holders by the weighted average number of
equity shares outstanding during the year.

16. STATEMENT OF CASH FLOWS

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non cash
nature and any deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated with
investing or financing cash flows. The cash flows from regular revenue generating (operating activities) investing and financing
activities of the company are segregated.

Rights, Preferences and Restrictions attached to Equity Shares:

The Company has equity shares having a par value of Rs. 10/- per share. Each holder of Equity Share is entitled to
one vote per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the
Board of Directors is subject to the approval of the Share Holders at the ensuing Annual General Meeting. In the
event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of
the Company after distribution of preferencial amount, in proportion of their share holding.

Capital Management

Company's capital management objectives are to :

- ensure the company's ability to continue as a going concern

- provide an adequate return to shareholders by pricing products and services commensurately with the level of risk

For the purposes of the Company's Capital Management, capital includes issued capital and all other equity reserves. Company manages its capital structure and makes adjustments in the light of
changes in economic environment and the requirements of financial covenants.

Financial Risk Management Framework

Company's activities expose it to financial risks viz credit risk and liquidity risk.

Credit Risk

Based on the overall credit worthiness of Receivables, coupled with their past track record, Company expects No / Minimum risk with regards to its outstanding receivables. Also, there is a
mechanism in place to periodically track the outstanding amount and assess the same with regards to its realisation. Company expects all the debtors to be realised in full, and accordingly, no
provision has been made in the books of accounts for doubtful receivables.

Liquidity risk

(i) Liquidity Risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring and forecasting actual cash flow and by matching the maturity profiles of
financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables contains details of the Company's remaining contractual maturities for its non-derivative financial liabilites with agreed repayment periods. The amount disclosed in the tables
have been drawn up based on the earliest date on which the Company can be required to pay. Financial Liabilities include Trade Payables, Capital Purchases, Unpaid / Unclaimed Dividends etc.,
which are in the normal course of business having maturity plan of less than one year and non interest bearing.

Additional Regulatory Information

2.40 All the title deeds of the Immovable property are in the name of the Company.

2.41 The Company has not revalued any of the property plant and equipment.

°° 2.42 The Company has not granted any Loans or advances in the nature of loans to promoters, Directors, KMPs and the related parties either severally or jointly with any other person that are

repayable on demand or with out specifying any terms or period of repayment.

2.43 During the year or in earlier year the company has not undertaken any Capital works which are in progress neither there are any Intangible assets which are under progress hence not reported.

2.44 There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there
under.

2.45 The Company has borrowings from Banks on the basis of security of Current Assets. Quarterly returns/statements of current assets filed by the Company with the Bank are in agreement in
respect of stock of raw-material and finished goods. In respect of Trade Receivables and Trade Payables variance in the following quarters are noticed.

2.54 The company does not have any income which is not recorded in the books of accounts that has been surrendered or disclosed as income in any of the tax assessments under the Income Tax Act,1961.

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

for NATARAJA IYER & CO., Sd/-

Chartered Accountants (MEADEM SEKHAR)

ICAI FRN : 002413S Whole Time Director & CEO (Din No. 02051004)

Sd/- Sd/-

(E. SRIRAN GANATH) (MADDI VENKATESWARA RAO)

Partner Director (Din No.00013393)

M.No : 013924

Sd/-

(KOTHURI SATYANARAYANA)
Chief Financial Officer

oo

Sd/-

(RADHA RANI SINGHAL)
Company Secretary (M.No. A68523)

Place : CHILAKALURIPET Place : CHILAKALURIPET

Date : May 28, 2025. Date : May 28, 2025.