Notes to Accounts of BNR Udyog Ltd.

Mar 31, 2023

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31.03.2022 the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31.03.2021:1 NR Nil). This assessment is undertaken each financial year through examining the financial position ofthe related party and the market in which the related party operates.

2.6. There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2023. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.

2.7. Balances shown underTrade Receivables are subject to confirmation/ reconciliation.

2.8. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

The Compnay contributes applicable rates of salary of all eligible employees towards ProvidentFund and Employees State Insurace managed by the Central Government.

Defined Benefit Plan

The employees gratuity fund scheme managed by LIC Group Gratuity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

Note 2.10: Financial instruments i) Fairvalues hierarchy

Financial assets and financial liabilities measured atfair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Note:The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the reporting date has been made in the financial statements based on information received and available with the Company. Further, in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (""the MSMEDAct"") is not expected to be material. The Company has not received any claim for interest from any supplier underthe said Act.

Note. 24: Financial risk management:

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors are responsible for overseeing the Company''s risk assessment and management policies and processes.

a.) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company’s credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to 45.55 Lakhs which pertains to the amount receivable from a non related party.

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience, past experiences where it believes there is high probability of default and considering differences between current and historical economic conditions. In general all the trade receivables greater than 365 days are reviewed and provided for by analysing individual receivable.

b.) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows 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."

Contractual maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.

c. Market risk- foreign exchange

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, trade receivables and other financial instruments. The sensitivity analyses in the following sections relate to the position as at 31 March 2023 and 31 March 2022. The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations, provisions, and non-financial assets and liabilities.

d. Interest rate risk

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2023, the Company is not exposed to any risk pertaining to the changes in market interest rates.

e. Price Risk

The Company is exposed to fluctuations in share price arising on purchase/ sale of shares.The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices. The Company''s commodity risk is managed centrally through well-established trading operations and control processes.

Note no 25: Capital Management

"The Company''s objective for capital management is to maximise shareholder value, Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt."

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Mar 31, 2015

1. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18

A) List of related parties

I) Parties where control exist - Nil

II) Other parties with whom Company entered into transactions during the year - Nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Mr. Kamal Narayan Rathi - Managing Director

Mr. Sandeep Rathi - Executive Director

Enterprises having common Personnel NIL

Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Narayan Rathi & W/o. Shri Sandeep Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2014-2015 2013-2014

a) Counter Guarantee against Bank Rs.16,75,000 Rs.50,19,387 Gaurantee

3. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are standing for more than 45 days as at 31 st March 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Balances shown under Trade Receivable are subject to confirmation/reconciliation

5. Pursuant to enactment of Companies Act,2013, the company has applied the estimate useful life as specified in Schedule II Accordingly the unamortised carrying value is being depreciated / ammortised over the revised / remaining useful life. The written down value of Fixed Asset whose lives has expired as at 01.04.2014 has been adjusted,in opening balance of Profit & Loss Account amounting to Rs.27.21 Lakhs.

6. Figures of the previous years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

7. DEFINED BENEFIT PLAN

The Employee''s Gratutity Fund Scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence

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Mar 31, 2014

1. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

2. Parties where control exist - Nil

3 Other parties with whom Company entered into transactions during the year - Nil

4 Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri Kamal Narayan Rathi - Managing Director Shri Sandeep Rathi - Executive Director

Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Narayan Rathi & W/o. Shri Sandeep Rathi

5. There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are standing for more than 45 days as at 31 st March 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Balances shown under Trade Receivable are subject to confirmation/reconciliation

7. Figures of the previous years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

8. EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15AS(15) issued by the Institute of Chartered Accountants of India with effect from 01.04.2007

9. DEFINED BENEFIT PLAN

The Employee's Gratutity Fund Scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2013

I. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman (upto 10-1-2013)

Shri Kamal Rathi - Managing Director Shri Sandeep Rathi - Executive Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Ltd.. BNR Capital Services Private Ltd. and BN Rathi Comtrade Pvt. Ltd, Relatives of Key Management Personnel

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi & W/o. Shri Sandeep Rathi

vi. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are standing for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

v. Balances shown under Trade receivable are subject to Confirmation/ reconciliation

vi. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee''s gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2012

Note: Out of the said amount NIL amount pertains to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the company on records.

i. DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Limited BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri Kamal Rathi

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi

ii. CONTINGENT LIABILITIES (Amount in Rs.) Particulars 2011-2012 2010-2011

a) Counter Guarantee against Bank Guarantee Rs. 1,75,000 Rs. 1,75,000

iii. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are standing for more than 45 days as at 31st March 2012. This information as required to be disclosed under the Micro, small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

iv. Balances shown under Sundry Debtors are subject to Confirmation/ reconciliation

v. Figures of the Previous Years have been re-grouped - re- arranged, wherever considered necessary and rounded off to nearest rupee.

vi. EMPLOYEE BENEFITS

Employee Benefits have been provided as per provisions of Revised Accounting Standard 15AS(15) issued by the Institute of Chartered Accountants of India with effect from 01.04.2007

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee's gratuity fund scheme managed by LIC Group Gratuity is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

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Mar 31, 2011

DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N. Rathi - Chairman

Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N. Rathi Securities Limited

BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri Kamal Rathi

Smt. Mayura Rathi - Daughter-in-law of Shri Kamal Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2010-2011 2009-2010

a) Counter Guarantee against Bank Gaurantee Rs. 1,75,000 Rs. 1,75,000

3. EMPLOYEE BENEFITS

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund and Employees State Insurance managed by the Central Government.

DEFINED BENEFIT PLAN

The employee's gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Project Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

4. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st march 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

5. Balances shown under Sundry Debtors are subject to Confirmation / reconciliation.

6. Figures of the Previous Years have been re-grouped re- arranged, wherever considered necessary and rounded off to nearest rupee.

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Mar 31, 2010

DISCLOSURE IN RESPECT OF RELATED PARTIES PURSUANT TO ACCOUNTING STANDARD 18 A) List of related parties

I) Parties where control exist - nil

II) Other parties with whom company entered into transactions during the year - nil

III) Key Management personnel and enterprises having common key management personnel or their relatives.

Key Management Personnel:

Shri B.N.Rathi - Chairman Shri Kamal Rathi - Managing Director

Enterprises having common Key Management Personnel

B.N.Rathi Securities Limited BNR Capital Services Private Limited

Relatives of Key Management Personnel

Shri Sandeep Rathi - Son of Shri.K.N.Rathi

Smt. Mayura Rathi - Dauqhter-in-law of Shri.K.N.Rathi

2. CONTINGENT LIABILITIES (Amount in Rs.)

Particulars 2009-2010 2008-2009

a) Counter Guarantee against Bank Gaurantee Rs. 1,75,000 Rs. 8,87,800

b) Claims of Income-Tax for the Asst. Years 2004-2005, Nil Rs. 50,162 and 2005-2006 for which petitions are pending with

IT Authorities (Company is hopeful of getting full relief, hence provision is not made.)

DEFINED BENEFIT PLAN

The employees gratutity fund scheme managed by LIC Group Gratutity is a defined benefit plan. The present value of obligation is determined based on acturial valuation using the Project Unit Credit Method, which recognizes each period of service as giving to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The company is having fair value of plan assets which is more than the present value of obligations. The same is not taken into account considering the prudence.

3. The company received a sum of Rs. 1,25,369/- as fourth and final instalment towards Capital Investments Subsidy for Medical Transcription from the Government of Andhra Pradesh Information Technology Department out of sanctioned Amount of Rs. 12,53,592/- and the same is reduced from the relevant assets of the Company.

4. There are no Micro Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31 st march 2010. This information as required to be disclosed under the Micro, small and medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

5. Balances shown under Sundry Debtors are subject to Confirmation / reconciliation.

6. Figures of the Previous Years have been re-grouped re- arranged, wherever considered necessary and rounded off to nearest rupee.