Notes to Accounts of Deem Roll-Tech Ltd.

Mar 31, 2025

q Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated
absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet
date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in
the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

Securities-Hypothecation on entire fixed assets of the company financed by the State Bank of India

Equitable Mortgage over the factory land and building situated at Survey No. 110/1 & 110/2 & Plot No 201 & 204 Village - Ganeshpura, Taluka - Kadi, District-
Mehsana.& Equitable Mortgage over the factory land and building situated at District Hooghly, P.S. Dadpur, Mouje: Talchinan Sanihati, West Bengal (admeasuring
156 Decimal).

Equitable Mortgage over the factory land and building situated at -

1. (Factory Land & Buildings bearing Survey Number : 5566, 5567, 5568, situated at Mauza Talchinan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram
Panchayet, PS Dadpur, District Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeas''uring Total Area : 0.91 Acres ,

2. Factory Land & Buildings bearing Survey Number: 6002, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS
Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Ad measuring Total Area : 0.15 Acres ,

3. Factory Land & Buildings bearing Survey Number: 5565, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS
Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeasuring Total Area: 0.26 Acres ,

4. Factory Land & Buildings bearing Survey Number: 5606, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS
Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeasuring Total Area : 0.53 Acres

Collateral Security Common for all facilities: Equitable Mortgage over leasehold Factory Land and Building at Plot No. 1006 & 1007, Chhatral GIDC Estate, Phase-II,
Opp. Varun Radiators, Nr. Khodiyar Hotel, Kaloi- Mehsana Highway, Chhatral, Gandhinagar in the name of company & Equitable Mortgage over residential flat at
Flat No. P-4, 9th Floor, Block-Shyam, Parth- sarthi Avenue, Near Shyamal Cross road, Ring road, Ahmedabad in the name of Jyoti Prasad Bhattacharya. & Lien over
Fixed Deposit of Rs. 20.00 lacs in the name of Jyoti Prasad Bhattacharya. & Equitable Mortgage over Factory Land and Building situated at Plot No. 201, Old
Survey No. 110/1 of 2-Area-4647 Sq. mt Plot No. 204 old Survey No. 109-Area-4682 Sq Mtr Near Navjivan Hotel, Nr. Rameshwar Mill, Palanpur Road Mehsana owned
by Deem Roll Tech Ltd & Equitable Mortgage on entire fixed assets of the company not financed by Banks with the company

Entire Term Loans from State Bank of India secured by personal guarantees of the following persons.: 1) Shri Jyoti Prasad Bhattacharya 2)Smt Madhuchanda
Bhattacharya 3)Shri Dev Bhattacharya

Terms of repayment of term loans-State Bank of India-539-Monthly Installment with interest rate of RBI repo rate 3.65% for 180 Months (amount inclusive of
interest)-Rs:3,33,333

General Description of the Plan

The Entity operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of
service. The same is payable on termination of service or retirement, whichever is earlier. The benefit vests after five years of continuous service. In case of some employees,
the Entity’s scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972.

Guarantees issued by the company’s bankers on behalf of the company State Bank of India : Rs.1,48,09,755 & Centeral Bank Of India: Rs.2,25,06,439.00 in previous year, Note there is one expired
old bank guarantees in list against which marginal Fixed Deposit taken by bank

Guarantees issued by the company’s bankers on behalf of the company by Centeral Bank Of India Is take over by State Bank of India.

The Company has not recognized and acknowledged the GST demand & Income tax as liability in its books of accounts aggregating to Rs. 150.57 lacs in respect of earlier years since the company has
disputed the demand and has filed reply before appropriate authorities. The same are pending for final adjudication.

Reasons for Variances

For Debt Service Coverage ratio- Cash profit of the company has reduced during the year as compared to previous year which has led to reduction in DSCR.

For Return on equity ratio - Net profit of the company has reduced during the year leading to reduction in ROE ratio.

For Net Capital turnover ratio- Turnover of the company has not increased in the same proportion as increase in average working capital available with the company. This has led to reduction in Net
Capital turnover ratio as at 31.03.2025.

For Return on Capital Employed: EBIT of the company has reduced during the year as comparted to previous year. This has led to reduction in ROCE as compared to previous year.

For Net Profit Ratio: Net profit ratio has reduced due to reduction in sales and increase in operating cost of company.

Nature of CSR activities

Pramoting Health care & Education item I & II in schedule VII

38 Realization and Confirmation

In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the balance
sheet. In the opinion of the Board of Directors, claims receivable against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated in
the financial statements at the value which is most probably expected to be realized.

The company has obtained balance confirmation from some of the parties for Unsecured Loans, Sundry Creditors, Sundry Debtors and parties to whom loans/advance have been granted. All other balances
of debtors and creditors, loans and advances and unsecured loans are subject to confirmation and subsequent reconciliation, if any.

39 Regrouping

The previous year’s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current period.

As per our report of even date

For S. N. SHAH & ASSOCIATES For and on behalf of the Board of Directors

Chartered Accountants
Firm''s Registration No. 109782W

Jyoti Prasad Bhattacharya Dev Bhattacharya

Managing Director & CEO Whole Time Director

Priyam Shah DIN 00340485 DIN 09842191

Partner

Membership No. 144892

UDIN: 25144892BMHWNF4028 Urvi Mali Janak Gajjar

Place: Ahmedabad Company Secretary Chief Financial Officer

Date: 29 May 2025 Membership No: 75437 PAN No: AJQPG6593H

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Mar 31, 2024

12) Provisions, Contingent Liabilities and Contingent Assets

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liabilities is made when there is a possible obligation that may, but probably will not, require an outflow of resources. As a measure of prudence, the contingent assets are not recognised.

13) Impairment of Assets

As at each balance sheet date, the carrying values of assets are reviewed for impairment if any indication of impairment exists

14) Cash and Cash Equivalents-For the Purpose of Cash Flow Statements

For the purpose of Cash Flow Statements, cash and cash equivalents include Cash on Hand and Balances with Banks in the Current Account as well as Fixed Deposits account

15) Operating Cycle

Based on the activities of the company and normal time between incurring of liabilities and their settlement in cash or cash equivalents and acquisition/right to assets and their realization in cash or cash equivalents, the company has considered its operating cycle as 12 months for the purpose of classification of its liabilities and assets as current and non-current

16) Earnings Per Share

The earnings per share as per AS-20 “Earning Per Share” has been computed on the basis of net profit after tax divided by the weighted average number of shares outstanding during the year

Securities

Hypothecation on entire fixed assets of the company financed by the Bank

Equitable Mortgage over the factory land and building situated at Survey No. 110/1 & 110/2, Village - Ganeshpura, Taluka - Kadi, District- Mehsana.

Equitable Mortgage over the factory land and building situated at District Hooghly, P.S. Dadpur, Mouje: Talchinan Sanihati, West Bengal (admeasuring 156 Decimal).

Equitable Mortgage over the factory land and building situated at -

1. (Factory Land & Buildings bearing Survey Number : 5566, 5567, 5568, situated at Mauza Talchinan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS Dadpur, District Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeas''uring Total Area : 0.91 Acres ,

2. Factory Land & Buildings bearing Survey Number: 6002, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Ad measuring Total Area : 0.15 Acres ,

3. Factory Land & Buildings bearing Survey Number: 5565, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeasuring Total Area: 0.26 Acres ,

4. Factory Land & Buildings bearing Survey Number: 5606, situated at Mauza Talchi- nan Sanihati, J L No. 66, RS 108, Goswami Malipara Gram Panchayet, PS Dadpur, Dis- trict Hooghly, West Bengal, PS Dadpur, 712305, (Rural), Admeasuring Total Area : 0.53 Acres

Collateral Security Common for all facilities

Equitable Mortgage over leasehold Factory Land and Building at Plot No. 1006 & 1007, Chhatral GIDC Estate, Phase-II, Opp. Varun Radiators, Nr. Khodiyar Hotel, Kaloi- Mehsana Highway, Chhatral, Gandhinagar in the name of company

Equitable Mortgage over residential flat at Flat No. P-4, 9th Floor, Block-Shyam, Parth- sarthi Avenue, Near Chief Justice Bungalow, Ahmedabad in the name of Jyoti Prasad Bhattacharya.

Lien over Fixed Deposit of Rs. 20.00 lacs in the name of Jyoti Prasad Bhattacharya.

Equitable Mortgage over Factory Land and Building situated at Plot No. 201, Old Survey No. 110/1 of 2-Area-4647 Sq. mt Plot No. 204 old Survey No. 109-Area-4682 Sq Mtr Near Navjivan Hotel, Nr. Rameshwar Mill, Palanpur Road Mehsana owned by Deem Roll Tech Ltd Equitable Mortgage on entire fixed assets of the company not financed by Banks with the company

Entire Term Loans from SBI secured by personal guarantees of the following persons.

Shri Jyoti Prasad Bhattacharya Smt Madhuchanda Bhattacharya Shri Dev Bhattacharya

NOTE 32 : Utilisation Of Borrowed Funds And Share Premium:

(a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, any security or the like on behalf of the Ultimate Benificiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, any security or the like on behalf of the Ultimate Benificiaries.

NOTE 33 : Taxes on Income:

Taxes on income comprises of current tax and deferred tax. Taxes on income have been determined based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income taxes are determined for future consequences attributable to timing differences between financial determination of income and income chargeable to tax as per the provisions of Income Tax Act, 1961. Deferred tax liability has been worked out using the tax rate and tax laws that were in force as on the date of balance sheet and has not been discounted to its present value.

Minimum Alternative Tax (MAT) 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 specific period. If the MAT credit becomes eligible to be recognized as an asset in accordance the recommendations contained in the Guidance note issued by ICAI, the said is created by the way of credit to the statement of Profit & Loss & shown as MAT credit entitlement.

NOTE 34 :Provisions, Contingent Liabilities and Contingent Assets:

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liabilities is made when there is a possible obligation that may, but probably will not, require an outflow of resources. As a measure of prudence, the contingent assets are not recognised.

NOTE 35 :Prior Period Items:

Prior period expenses have been adjusted to the carrying amount of surplus of Statement of Profit & Loss.

NOTE 36

In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, claims receivable against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated in the financial statements at the value which is most probably expected to be realized.

NOTE 37

The company has obtained balance confirmation from some of the parties for Unsecured Loans, Sundry Creditors, Sundry Debtors and parties to whom loans/advance have been granted. All other balances of debtors and creditors, loans and advances and unsecured loans are subject to confirmation and subsequent reconciliation, if any.

note 38 iMSME

The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise registered under the applicable category as per the provisions of the Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the confirmations received by the company upto the date of the financial statements and accordingly other suppliers are classified as Non-MSME Suppliers irrespective of their status as per the provisions of the Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006).

note 39

The previous year’s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current period.

note 40

Paise are rounded up to the nearest of rupee. The negative figures have been shown in brackets.

note 41

Expenditure on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognised as an expense when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. An internally-generated intangible asset arising from development is recognised if and only if all of the following have been demonstrated:

•development costs can be measured reliably;

•the product or process is technically and commercially feasible;

•future economic benefits are probable; and

•the Company intends to and has sufficient resources/ability to complete development and to use or sell the asset.

The expenditure to be capitalized include the cost of materials and other costs directly attributable to preparing the asset for its intended use. Other development expenditure is recognized in profit or loss as incurred.

Separate accounts have been maintained in respect of expenditure on R&D including Capital expenditure, Salaries & Wages of R&D staff, Materials & Consumables used in R&D and other R&D related recurring expenditure

for s. n. shah & associates as per our report of even date

chartered accountants For DEEM ROLL- TECH LIMITED

sd/- sd/-

sd/- Jyoti Prasad Bhattacharya Dev Bhattacharya

PRIYAM SHAH Managing Director Whole Time Director

PARTNER [DIN:00340485] [DIN:09842191]

M. NO.144892

UDIN: 24144892BKAVOK9587

sd/- sd/-

Company Secretary Chief Financial Officer

PLACE: AHMEDABAD Alka Kumari Janak Navinchandra Gajjar

DATE: 27/05/2024_[ACS NO. 31249]_[PAN: AJQPG6593H]_|

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Mar 31, 2023

i) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances recoverable in cash or kind,Unsecured Loans, Banks, etc. are subject to confirmation, reconciliation and adjustment, if any.

ii) Working capital loans from State Bank of India and Central Bank of India are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores & spares and book debts of the company.

iii) Term loan from State Bank of India and Central Bank of India is secured by lease hold rights over Factory land & Building situated at Plot no. 1006/1007, GIDC Chhatral, Dist-Mehsana; Survey No.110/1, P-110/2, Ganeshpura, Ta. Kadi, and JL No. 66, Sanihati, PS Dadhpur, Hoogly (W.B.), P-4,9th Floor, Block-Shyam, Parthsarthi Avenue, Near Chief Justice Bungalow, Ahmedabad; Fixed Deposits of Rs. 20 Lakhs and 90% of shares of Deem Roll Tech Ltd. standing in the name of key promoter(Mr. Jyoti Prasad Bhattacharya) and hypothecation of existing and proposed Plant & Machinery.

B) Note: Related Party Transactions

[1] The related party transactions entered by the company were in the ordinary course of business and at arm’s length distance and were not materially significant and were presented before the Board for approval specifying the nature etc. of the transactions.

[2] The unsecured loans received from Mr. Jyoti Prasad Bhattacharya, Managing Director & CEO and his wife Mrs. Madhuchhanda Bhattacharya are covered under Rule 2 [1] [c] [xiii] of the Companies [Acceptance of Deposits] Rules, 2014 and are not deposits under the Companies Act,2013.

xiii) Company is receiving Duty Drawback against export of goods, which is credited as Indirect Incomes to Profit & Loss Account as per Accounting Standard - 12 (Government Grants)

xv) Contingent Liabilities not provided for in respect of:
	Particulars	As at 31/03/2023	As at 31/03/2022
	Guarantees issued by the company’s bankers on behalf of the company: Central bank of India : Rs. 2,38,15,824 State Bank of India : Rs. 82,67,974 Note there is one expired old bank guarantees in list Against which marginal Fixed Deposit taken by bank	3,20,83,798	4,47,27,491
	Letter of Credit Facilities provided by the Bank State Bank of India : Rs.1,68,49,523 Central bank of India : Rs. 93,72,536	2,62,22,059	2,81,28,315
	ESIC Demanded for which suit is being filed	3,80,975	3,87,613
	Civil Cases litigation demand for raw material and others	1,32,37,717	1,33,36,106
	Central Excise civil case demand for Delay in Payment of Excise Duty		16,14,112

xvi) Disclosure as per Accounting Standard - Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies:

There are Prior Period Items of Rs. 5,712 charged in the Profit & Loss Account

xvii) Disclosure related to CSR expenditure on Corporate Social Responsibility Activities being company covered under section 135 of Companies Act, 2013

The Company has made payment of Rs. 10,34,000 for CSR related activities as per section 135 of Companies Act, 2013

xxi) We have taken valuation of stock as certified by management.

xxii) There is no impact on profit as per the provision of ICDS.

xxiv) Previous year’s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.