Notes to Accounts of Asgard Alcobev Ltd.

Mar 31, 2025

r) Provision and contingent liabilities

A provision is recognised if as a result of a past event, the Company has a present
obligation (legal or constructive) that can be estimated reliably and it is probable that
an outflow of economic benefits will be required to settle the obligation. Provisions are
recognised at the best estimate of the expenditure required to settle the present
obligation at the balance sheet date.

A contingent liability exists when there is a possible but not probable obligation, or a
present obligation that may, but probably will not, require an outflow of resources, or a
present obligation whose amount cannot be estimated reliably. Contingent liabilities
do not warrant provisions but are disclosed unless the possibility of outflow of resources
is remote.

Note 2: Critical estimates and judgements

In applying the accounting policies, which are described in note 1B, the management
are required to make judgements (other than those involving estimations) that have a
significant impact on the amounts recognized and to make estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical
experience and after considering the impact of macro-economic factors including
geo- political factors that are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.

This note provides an overview of the areas that involved a higher degree of
judgement or complexity, and of items which are more likely to be materially adjusted
due to estimates and assumptions turning out to be different than those originally
assessed.

a) Tax:

The Company reviews at each balance sheet date the carrying amount of deferred
tax assets. The factors used in estimates may differ from actual outcome which could
lead to an adjustment to the amounts reported in the financial statements.

b) Estimation of useful life

Useful lives of tangible assets and intangible assets are based on the estimate by the
management. The useful lives as estimated are same as prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful lives are different from that prescribed
in Schedule II, they are based on management estimate, taking into account the
nature of the asset, the estimated usage of the asset, the operating conditions of the
asset, past history of replacement, anticipated technological changes, manufacturers’
warranties and maintenance support. Assumptions also need to be made, when the
Company assesses, whether an asset may be capitalized and which components of
the cost of the asset may be capitalised.

The useful lives and residual values of Company’s assets are determined by
management at the time the asset is acquired and reviewed annually for
appropriateness. The lives are based on historical experience with similar assets as well
as anticipation of future events which may impact their life such as changes in
technology.

c) Provisions and contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the
exposures to contingent liabilities related to pending litigation or other outstanding
claims subject to negotiated settlement, mediation, arbitration or government
regulation, as well as other contingent liabilities. Judgement is necessary in assessing
the likelihood that a pending claim will succeed, or a liability will arise, and to quantify
the possible range of the financial settlement. Because of the inherent uncertainty in
this evaluation process, actual losses may be different from the originally estimated
provision.

d) Impairment of assets

The Company reviews the carrying amounts of its property, plant and equipment,
Capital work in progress and intangible assets, whenever events or changes in

circumstances indicate that the carrying amount may not be recoverable. If any such
indication exists, the recoverable amount of the asset is estimated to determine the
extent of the impairment loss (if any). Further details on the Company’s accounting
policies on this are set out in the accounting policy above. Determining whether an
asset is impaired requires an estimation of the recoverable amount, which requires
company to estimate the Fair value less cost of disposal.

e) Investment in Subsidiary

The carrying amount of the Company’s investment in its subsidiary is subject to
management’s estimates and judgements regarding its recoverable value. Under Ind
AS 27 - Separate Financial Statements, investments in subsidiaries are carried at cost.
Management assesses whether there is any indication of impairment in the value of the
investment. This assessment involves estimating the recoverable amount based on the
subsidiary’s future cash flows, expected profitability, and overall business outlook. Any
change in these estimates could lead to recognition of an impairment loss in the
Statement of Profit and Loss.

In the current year, no impairment loss has been recognized as management believes
that the carrying amount of the investment is fully recoverable.

f) Employee Benefits

The measurement of employee benefits, particularly defined benefit plans such as
gratuity, involves management estimates and judgements regarding actuarial
assumptions including discount rates, future salary increases, employee turnover, and
mortality rates.

During the year:

Holding Company: Since the Company does not have sufficient employees on its rolls,
no provision for gratuity has been recognized, and no actuarial assumptions have been
applied.

Subsidiary Company: The subsidiary was incorporated in FY 2023-24. As at March 31,
2025, no employee has completed the minimum qualifying period of five years’
continuous service under the Payment of Gratuity Act, 1972. Accordingly, no provision
for gratuity has been recognized, and no actuarial assumptions have been applied.

For defined contribution plans such as Provident Fund (PF) and Employees’ State
Insurance (ESIC), contributions are made as per statutory requirements and recognized
as an expense on an accrual basis; no further estimates or judgements are involved.

g) Consolidation Adjustments

During the preparation of the consolidated financial statements, management applies
judgements and estimates to eliminate the effects of inter-company transactions and
balances in accordance with Ind AS 110 - Consolidated Financial Statements.

Key areas requiring judgement and estimation include:

Inter-company Balances and Loans: Determining the correct elimination of outstanding
balances, including advances, loans, and fixed deposits, between the Holding
Company and its Subsidiary.

Inter-company Transactions: Eliminating inter-company sales, purchases, and other
transactions to avoid double counting of revenue and expenses.

Unrealized Profits: Assessing and eliminating unrealized profits arising from inter¬
company transfers of inventory, fixed assets, or other items.

Minority Interests (if applicable): Judgement in measuring the non-controlling interest in
the net assets and profit/loss of the Subsidiary.

Management believes that the assumptions and estimates applied in these
consolidation adjustments are reasonable and provide a true and fair view of the
consolidated financial position and results of operations.

For Jain Chhajed & Associates For and on Behalf of Board of Directors

FRN No. 127911W Banganga Pa per Industries Limited

Chartered Accountants

Chetan Dhatrak Jayshree Dhatrak

Director Director

CA Suyash Chhajed DIN: 10064427 DIN: 10064293

Partner

M. No.:121597

^pl^{ace : Na}shⁱk Santosh B. Ugale Jitendra R. Patil

Dated : 15/05/2025 cFO CS

UDIN: 25121597BMIFYW4958 _m._nO. ₃₉₀₅₅

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Mar 31, 2024

d) Rights of Equity Shareholders

The Company is having only one class of equity shares having a face value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

17 There are no Contingent Liabilities.

18 In the opinion of the Board, Current Assets are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

21 There is no separate reportable segment within the meaning of Indian Accounting Standard 108 - "Operating Segment".

22 Previous Year''s figures have been reworked / regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

24 Details of Loan given, Investment made and Guarantee given covered u/s 186 (4) of the Companies Act, 2013.

The Company has not made any Investments as at 31st March, 2024.

The Company has not given any Loan or Guarantee as at 31st March, 2024.

Fair Valuation techniques used to determine Fair Value

The Company maintains procedures to value its financial assets or financial liabilities using the best and most relevant data available. The Fair Values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date.

The following methods and assumptions were used to estimate the Fair Values :

Fair Value of Cash and Cash Equivalents, Trade Receivable and other Current FinancialAssets and Liabilities are approximate at their carrying amounts largely due to the short-term maturities of these instruments.

Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques :-

Level 1 :- Quoted prices / published Net Assets Value (unadjusted) in active markets for identical assets or liabilities. It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the Balance Sheet date and financial instruments like mutual funds for which Net Assets Value is published by mutual fund operators at the Balance Sheet date.

Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2. Level 3 :- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

16 Financial Risk Management - Objective and Policies

The Company is exposed to market risk and credit risk. Risk management is carried out by the company under policies approved by the Board of Directors. This Risk management plan defines how risks associated with the Company will be identified, analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the organization to provide a clear understanding of risk / benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage/optimize key risks. Activities are developed to provide feedback to management and other interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure that risk management plan is effective in the long term.

26.01 Market Risk and Sensitivity:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: foreign currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments.

(a) Foreign Currency Exchange Risk and Sensitivity

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. The Company is not involved in Foreign Currency Transaction and therefore the Company is not exposed to Foreign Currency Exchange Risk.

b) Interest Rate Risk and Sensitivity :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However, the Company does not have any financial instruments which is exposed to Interest Rate Risk.

c) Commodity Price Risk :

The Company''s revenue primarily involves sales of goods and does not involve any service. Therefore, the Company is exposed to Commodity price risks.

26.02 Credit Risk :

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other

a) Trade Receivables :

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company evaluates the concentration of risk with respect to trade receivables as low. Therefore, the Company does not expect any material risk on account of non performance by any of the counterparties.

b) Financial Instruments and Cash Deposits :

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances are maintained. The Company does not maintain significant cash in hand. Excess balance of cash other than those required for its day to day operations is deposited

28 Other Statutory Information

²⁸⁰¹ The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

28.02 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

28.03 The Company has not received any fund from any person(s) or entity(s), including entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

28.04 The Company does not have any such transaction which is not recorded in the books of account surrendered or disclosed as income during the year in the tax assessments under the Income-tax act, 1961.

28.05 No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

28.06 The Company is not declared wilful defaulter by any bank or financial institution or other lender.

28.07 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, 19.

28.08 The Company does not have any borrowings from Banks or Financiallnstitutions on the basis of security of Current Assets.

29 The Management and authorities have the power to amend the Financial Statements in accordance with section 130 and 131 of the Companies Act, 2013.

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Mar 31, 2014

1. There are no contingent liabilities.

2. In the opinion of the board, Current Assets are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

3. There is no separate reportable segment within the meaning of Accounting Standard 17 issued by Institute of Chartered Accountants of India.

4. Previous Year''s figures have been reworked / regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

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Mar 31, 2013

1. There are no contingent liabilities.

2. In the opinion of the board, Current Assets are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

3. There is no separate reportable segment within the meaning of Accounting Standard 17 issued bv Institute of Chartered Accountants of India.

4. Previous Year''s figures have been reworked / regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

5. RELATED PARTY DISCLOSURES :

A. List of related parties :

(As certified by the Company)

I. Key Management Personnel

Shri Hari Gopal Joshi Shri Dhanesh B_ Ajmera

Shri Suresh J. Ajmera

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Mar 31, 2011

1. Disclosure of related parties / related party transactions :

a) A List of related parties with whom transactions have taken place during the year :

Key Management Personnel :

Shri H.G. Joshi

Shri Suresh J.Ajmera

Shi Dhanesh B Ajmera

b) Disclosure of related party transaction :

Unsecured Loans

Balance as on 01-04-2010 Rs. 19,000/-

Taken during the year NIL

Balance as on 31 -03-2011 Rs. 19,000/-

2. There is no separate reportable segment within the meaning of Accounting Standard 17 issued by Institute of Chartered Accountants of India.

3. Previous years figures have been re-grouped and/or rearranged wherever necessary to make them comparable with those of the current year.

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Mar 31, 2010

1. Disclosure of related parties / related party transactions :

a) A List of related parties with whom transactions have taken place during the year: Key Management Personnel:

Shri H.G. Joshi

Shri Suresh J.Ajmera .

Shi Dhanesh B Ajmera

b) Disclosure of related party transaction : Unsecured Loans

Balance as on 01 -04-2009 Rs. 19,000/-

Taken during the year NIL

Balance as on 31-03-2010 Rs.19,000/-

2. There is no separate reportable segment within the meaning of Accounting Standard 17 issued by Institute of Chartered Accountants of India.

3. Previous years figures have been re-grouped and/or rearranged wherever necessary to make them comparable with those of the current year.

The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard -3 "Cash Flow Statements" issued by the Institute of Chartered Accountants of Figures in brackets indicate Outflows.