Notes to Accounts of Keto Motors Ltd.

2.21.Provisions, Contingent Liabilities and
Contingent Assets (Ind AS 37)

Provisions are recognised when the
Company has a present obligation (legal or
constructive) as a result of a past event, it is
probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation, and a
reliable estimate can be made of the
amount of the obligation. Provisions are
measured at the best estimate of the
expenditure required to settle the present
obligation, discounted to present value
where the time value of money is material.

1. Warranty Provision

The Company provides a standard
manufacturer''s warranty on vehicles
and battery packs (including a

separate, typically longer-duration
battery-specific warranty covering
capacity retention/degradation
thresholds). A provision for warranty-
related costs is recognised at the time
the related revenue is recognised,
based on historical warranty claim
trends, field-failure data, battery
d e g r a d a t i o n c u r v e s , a n d
management''s best estimate of the
expenditure required to settle claims,
including consideration of extended
battery warranty periods (commonly 8
years/80,000-160,000 km, or as
specified in the warranty card) that are
materially longer than warranties on
internal combustion engine (ICE)
vehicles. The warranty provision is
reviewed at each reporting date and
adjusted to reflect the latest estimates.

2. Product Liability and Safety-Related
Provisions

Provisions for product recalls, battery
thermal-incident related costs, and
product liability claims are recognised
when the recognition criteria under Ind
AS 37 are met, based on technical
assessment, regulatory correspondence
(including with the Ministry of Road
Transport and Highways / testing
agencies such as ARAI/ICAT), and legal
advice.

Contingent liabilities are disclosed
when there is a possible obligation
arising from past events, the existence
of which will be confirmed only by the
occurrence or non-occurrence of
uncertain future events not wholly within
the control of the Company, or a
present obligation where it is not
probable that an outflow of resources
will be required, or the amount cannot
be measured reliably. Contingent
assets are not recognised but disclosed
when an inflow of economic benefits is
probable.

2.22. Fair Value Measurement (Ind AS 113)

The Company measures certain financial
instruments, such as derivatives, and certain
non-financial assets at fair value at each
reporting date, using a fair value hierarchy
that categorises inputs into Level 1 (quoted
prices in active markets), Level 2
(observable inputs other than quoted
prices), and Level 3 (unobservable inputs),
as set out in Note 38 (Fair Value
Measurements).

2.23. Foreign Currency Transactions (Ind AS
21)

Transactions in foreign currencies
(principally relating to import of lithium-ion
cells, battery raw materials, semiconductor
chips, and capital equipment from overseas
suppliers, and export sales) are recorded
at the exchange rate prevailing on the date
of the transaction. Monetary assets and
liabilities denominated in foreign currencies
are translated at the closing exchange rate
at the reporting date, with resulting
exchange differences recognised in the
Statement of Profit and Loss, except for
exchange differences on long-term foreign
currency monetary items used to finance
qualifying assets (if any, under the
transition provision availed) and on
qualifying cash flow hedges, which are
recognised in OCI.

2.24. Cash and Cash Equivalents and Cash
Flow Statement

Cash and cash equivalents comprise cash
on hand, demand deposits, and short-term,

highly liquid investments with original
maturities of three months or less that are
readily convertible to known amounts of
cash and subject to insignificant risk of
changes in value. The Cash Flow Statement
is prepared using the indirect method, in
accordance with Ind AS 7, classifying cash
flows into operating, investing, and
financing activities.

2.25. Earnings Per Share (Ind AS 33)

Basic earnings per share is computed by
dividing the net profit/(loss) attributable to
equity shareholders by the weighted
average number of equity shares
outstanding during the year. Diluted
earnings per share is computed by
adjusting the weighted average number of
equity shares outstanding for the dilutive
effect of potential equity shares, including
outstanding employee stock options,
convertible instruments (if any), and
warrants.

2.26. Segment Reporting (Ind AS 108)

Operating segments are reported in a
manner consistent with the internal
reporting provided to the Chief Operating
Decision Maker (CODM). The CODM,
identified as the Managing Director & CEO
of the Company, evaluates the Company''s
performance and allocates resources
based on an analysis of the business by
vehicle category. The maker has decided
that, during the period based on the
analysis, there are no reportable segments
(Revenue, Geographical and Profit wise).

c. Terms / rights attached to equity Shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder
is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible
to receive the remaining assets of the company after distribution of all preferential amounts, in
proportion to their shareholdings.

d. Shares reserved for issue underwriter options : NA

e. Detail of Rights Issues : NA

f. details of shares held by Holding/Ultimatley Holding Company- refer clause (i)

g. Details of shares issued for consideration other than cash

h. Pursuant to the Resolution Plan approved by the Hon''ble National Company Law Tribunal (NCLT)
Pursuant to the Order of the Hon''ble National Company Law Tribunal ("NCLT”) approving the
Resolution Plan dated 12 June 2025 vide IA (Plan) No. 6 of 2025 in CP (IB) No. 1/7/HDB/2024
("NCLT Order”), the Company has given effect to the approved merger and the terms of the Resolution
Plan. Accordingly, during the year, the Company has restructured its share capital by way of reduction
of the existing equity shares and allotment of new equity shares to the Successful Resolution
Applicant(s), Strategic Investors and by way of allotment pursuant to the acquisition/merger of KETO
Motors, in accordance with the terms of the approved Resolution Plan and the NCLT Order under the
Insolvency and Bankruptcy Code, 2016, the Company has, during the year, increased / adjusted its
authorised and paid-up equity share capital by way of reduction existing equity shares, allotment of
new equity shares to the Successful Resolution Applicant(s), Stratagic Investors and allotment in leiu
acquisiton of KETO Motors in accordance with the terms of the approved Resolution Plan.

Note: Pursuant to the approval of the Resolution Plan by the Hon''ble National Company Law Tribunal
(NCLT) under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), the Company has given
effect to the financial restructuring contemplated in the approved Resolution Plan during the year.
Accordingly, after settlement/reduction/restructuring of liabilities in accordance with the approved
Resolution Plan, the balances of existing reserves, surplus, and the impact arising on re-measurement,
write-back, waiver, extinguishment and restatement of assets and liabilities have been adjusted and
transferred to a separate reserve titled "CIRP Adjustment Reserve”.The CIRP Adjustment Reserve
represents the net effect of financial restructuring and fair adjustment of the carrying values of assets
and liabilities pursuant to implementation of the Resolution Plan approved by the Hon''ble NCLT. The said
accounting treatment has been carried out in accordance with the terms of the approved Resolution Plan
and the applicable provisions of the Companies Act, 2013 and applicable Indian Accounting Standards
(Ind AS).

Nature and purpose of reserves: Securities Premium represents the premium received on issue of shares,
usable only for purposes permitted under Section 52 of the Companies Act, 2013. General Reserve is a
free reserve created by transfer from retained earnings, usable for any purpose in accordance with the
Act.

28. Employee Benefits:

a. Gratuity (Defined Benefit Plan)

The Company provides for gratuity, a defined benefit plan covering eligible employee, in
accordance with the Payment of Gratuity Act, 1972. The plan provides a lump-sum payment to
vested employees on retirement, death, incapacitation, or termination, based on the last drawn
salary and years of service. The plan is partially funded through a scheme administered by
[Insurance Company]. The following tables summarise the components of net benefit expense,
amounts recognised in the Balance Sheet, and key actuarial assumptions, as required under Ind
AS 19:

Note:

a) The discount rate is based upon the market yields available on Government bonds at the
accounting date with a term that matches that of the liabilities.

b) The estimate of future salary increases considered in actuarial valuation, take account of
inflation, seniority, promotion and other relevant factors, such as supply and demand in the
employment market.

30. Financial Risk Management

The Company’s principal financial liabilities comprise borrowings, and trade and other
payables, the main purpose of which is to finance the Company’s manufacturing operations and
capital expenditure. The Company’s principal financial assets include trade receivables, cash
and cash equivalents, and investments. The Company is exposed to credit risk, liquidity risk, and
market risk (including currency risk, interest rate risk, and commodity price risk), each of which is
discussed below in accordance with Ind AS 107.

a. Credit Risk: Credit risk arises from cash and cash equivalents, investments, and credit
exposure to dealers/customers, including trade receivables.

b. Liquidity Risk: The Company manages liquidity risk by maintaining adequate reserves,
banking facilities, and committed credit lines, by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities. The table
below summarises the maturity profile of the Company’s financial liabilities based on
contractual undiscounted payments ( in lakh):

c. Market Risk- Currency Risk: The Company is not exposed to foreign currency risk arising
from imports of materials, since there was no imports during F.Y. 2025-26 hence it would not
impact profit before tax.

d. Market Risk — Interest Rate Risk: The Company’s exposure to interest rate risk arises from
floating-rate borrowings (term loans linked to repo-linked lending rate/MCLR and working
capital facilities). A increase/decrease in interest rates, with all other variables held
constant, would impact profit before tax based on the floating-rate borrowings outstanding
as at the reporting date.

Ratio = Current Assets / Current Liabilities; Debt-Equity = Total Debt / Total Equity; DSCR = (Profit after tax
Non-cash operating expenses Interest) / (Interest Principal repayments); ROE = Net Profit after tax
(less preference dividend) / Average Shareholders’ Equity; Inventory Turnover = Cost of Goods Sold /
Average Inventory; Trade Receivables Turnover = Revenue from Operations / Average Trade Receivables;
Trade Payables Turnover = Net Credit Purchases / Average Trade Payables; Net Capital Turnover = Revenue
from Operations / Average Working Capital; Net Profit Ratio = Net Profit after tax / Revenue from
Operations; ROCE = Earnings before Interest and Tax / Average Capital Employed; ROI = Income
generated from invested funds / Average Investments.

37. Additional Regulatory Information (Schedule III, Division II, Para Y and Companies (Audit

and Auditors) Rules)

• Title deeds of immovable properties are held in the name of the Company.

• The Company has not revalued its property, plant and equipment / intangible assets /
right-of-use assets during the year.

• No loans or advances in the nature of loans have been granted to promoters, directors,
KMPs, or related parties (firms/companies in which they have an interest) that are
repayable on demand or without specifying any terms or period of repayment.

• The Company does not have any capital-work-in-progress or intangible-assets-under-
development project that is overdue or has exceeded its cost compared to its original plan
beyond what is disclosed in Notes 3.

• No proceedings have been initiated or pending against the Company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988.

• The Company does not have borrowings from banks/financial institutions on the basis of
security of current assets.

• The Company has not been declared a wilful defaulter by any bank or financial institution.

• 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.

• There are no charges or satisfaction of charges yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.

• Pursuant to the approval of the Resolution Plan by the Hon’ble National Company Law
Tribunal (NCLT) under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC),
the Company has given effect to the financial restructuring contemplated in the approved
Resolution Plan during the year.

Accordingly, after settlement/reduction/restructuring of liabilities in accordance with the
approved Resolution Plan, the balances of existing reserves, surplus, and the impact arising
on remeasurement, write-back, waiver, extinguishment and restatement of assets and
liabilities have been adjusted and transferred to a separate reserve titled “CIRP
Adjustment Reserve”.

The CIRP Adjustment Reserve represents the net effect of financial restructuring and fair
adjustment of the carrying values of assets and liabilities pursuant to implementation of the
Resolution Plan approved by the Hon’ble NCLT. The said accounting treatment has been
carried out in accordance with the terms of the approved Resolution Plan and the
applicable provisions of the Companies Act, 2013 and applicable Indian Accounting
Standards (Ind AS).

• 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 lend or invest in party(ies) identified by or on behalf of the Company
(Ultimate Beneficiaries), nor has it received any such fund from any party with the
understanding (whether recorded in writing or otherwise) that the Company shall directly
or indirectly lend or invest in other persons or entities identified by or on behalf of the
funding party (Ultimate Beneficiaries) or provide any guarantee, security, or the like to or
on behalf of the Ultimate Beneficiaries.

• The Company has not declared or paid any dividend during the year in contravention of
Section 123 of the Companies Act, 2013, other than the dividend disclosed in Note 14.

• The Company is not covered under Section 135 of the Companies Act, 2013 threshold for
being required to transfer unspent CSR amounts to a separate bank account.

• The Company has complied with the number of layers prescribed under clause (87) of
Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of
Layers) Rules, 2017.

• The Company has used accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility, and the same has been operated
throughout the year for all relevant transactions recorded in the software, and the audit trail
feature has not been tampered with, in compliance with the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, as applicable from FY 2023-24 onwards.

38. The Company is engaged in the business of manufacturing and selling of electric three wheelers
(“product”) both for cargo and passenger divisions. The output product sold by the company is
taxed at the rate of 5%. However, inputs used by the company in the process of manufacturing
of product are procured at the rate of 18% and 28% i.e., higher than the tax rate on the output
product. This is a case of inverted duty structure.

39. The previous year figures have been regrouped, rearranged and reclassified wherever
necessary to confirm to this year’s classification.

40. Pursuant to the Order of the Hon’ble National Company Law Tribunal (“NCLT”) Resolution Plan
dated 12 June 2025 vide IA (Plan) No. 6 of 2025 in CP (IB) No. 1/7/HDB/2024 (“NCLT
Order”)approving the Resolution Plan and the amalgamation/reorganisation of TAAZA
International Limited and KETO Motors Private Limited, the current year financial statements
represent the financial position and financial performance of the amalgamated entity, KETO
Motors Limited. Accordingly, the figures for the current year comprise the combined figures of
TAAZA International Limited and KETO Motors Private Limited, as applicable pursuant to the
aforesaid NCLT Order. The corresponding figures for the previous year relate solely to TAAZA
International Limited and have not been restated to give effect to the amalgamation/
reorganisation. Consequently, the current year figures are not strictly comparable with the
corresponding figures of the previous year.

2.14 Provision (Ind AS 37)

Provisions are recognised when the Company has a present obligation
(legal or constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the
obligation. When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Provisions are reviewed at each Balance Sheet date.

Other Litigation claims

Provision for litigation related obligation represents liabilities that are
expected to materialise in respect of matters in appeal.

Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution
scheme. The Company has no obligation, other than the contribution
payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee
renders the related service.

The cost of providing benefits under the defined benefit plan is determined
based on actuarial valuation under purchase unit credit method.

Re-measurement, comprising of actuarial gains and losses, the effect of the
asset ceiling, excluding amounts included in net interest on the net defined
benefit liability and the return on plan assets (excluding amounts included
in net interest on the net defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re-measurements are not
reclassified to statement of profit and loss in subsequent periods.

Past service costs are recognised in statement of profit or loss on the earlier
of:

? The date of the plan amendment or curtailment, and

? The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined
benefit liability or asset. The Company recognises the following changes in
the net defined benefit obligation as an expense in the statement of profit
and loss:

? Service costs comprising current service costs, past-service costs,
gains and losses on curtailments and non-routine settlements;
and

? Net interest expense or income

The Company treats accumulated leave, as a long-term employee benefit for
measurement purposes. Such long-term compensated absences are provided
for based on an actuarial valuation using the projected unit credit method at
the period-end. Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred. The Company presents the
entire liability in respect of leave as a current liability in the balance sheet,
since it does not have an unconditional right to defer its settlement beyond
12 months after the reporting date.

2.15 Financial Instruments (Ind AS 109)

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 assets:

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently
measured at amortised cost, fair value through other comprehensive income
(OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the
financial asset’s contractual cash flow characteristics and the Company’s
business model for managing them. With the exception of trade receivables
that do not contain a significant financing component or for which the
Company has applied the practical expedient, the Company initially
measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction costs. Trade
receivables that do not contain a significant financing component or for
which the Company has applied the practical expedient are measured at the
transaction price determined under Ind AS 115. Refer to the accounting
policies in section (d) Revenue from contracts with customers.

In order for a financial asset to be classified and measured at amortised cost
or fair value through OCI, it needs to give rise to cash flows that are ‘solely
payments of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows that are not SPPI are
classified and measured at fair value through profit or loss, irrespective of
the business model.

The Company’s business model for managing financial assets refers to how it
manages its financial assets in order to generate cash flows. The business
model determines whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial assets classified
and measured at amortised cost are held within a business model with the
objective to hold financial assets in order to collect contractual cash flows
while financial assets classified and measured at fair value through OCI are
held within a business model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in
four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive
income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair
value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other
comprehensive income (FVTOCI)

Debt instrument at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following
conditions are met:

The asset is held within a business model whose objective is to hold assets
for collecting contractual cash flows, and

Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured
at amortised cost using the effective interest rate (EIR) method. Amortised
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
amortisation is included in finance income in the statement of profit and
loss. The losses arising from impairment are recognised in the statement of
profit and loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both of the following
criteria are met:

• The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets, and

• The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured
initially as well as at each reporting date at fair value. Fair value movements
are recognized in the OCI. However, the Company recognizes interest
income, impairment losses & reversals and foreign exchange gain or loss in
the statement of profit and loss. On de-recognition of the asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to
statement of profit and loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR method

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument,
which does not meet the criteria for categorization as at amortized cost or as
FVTOCI, is classified as at FVTPL. Debt instruments included within the
FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For
all other equity instruments, the Company may make an irrevocable election
to present in OCI subsequent changes in the fair value. The Company makes
such election on an instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then
all fair value changes on the instrument, excluding dividends, are
recognized in the OCI. There is no recycling of the amounts from OCI to
statement of profit and loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss within equity. Equity
instruments classified as FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company recognises an allowance for
expected credit losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash
flows that the Company expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit enhancements that
are integral to the contractual terms.

For trade receivables and contract assets, the company applies a simplified
approach in calculating ECLs. Therefore, the company does not track
changes in credit risk, but instead recognises a loss allowance based on life
time ECLs at each reporting date. The company has established a provision
matrix that is based on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic
environment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of
a group of similar financial assets) is primarily derecognised (i.e. removed
from the Company’s balance sheet) when:

• the rights to receive cash flows from the asset have expired, or

• the Company has transferred its rights to receive cash flows from
the asset, and

o the Company has transferred substantially all the risks and
rewards of the asset, or

o the Company has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights to receive cash flows from an
asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred
asset to the extent of the Company’s continuing involvement. In that case, the
Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration that the Company
could be required to repay.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and borrowings,
payables, or as designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognised initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction
costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as
described below:

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the EIR method. Gains and
losses are recognised in statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Amortised 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
amortisation is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on
initial recognition. After initial recognition, no reclassification is made for

financial assets which are equity instruments and financial liabilities. If the
Company reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the
immediately next reporting period following the change in business model.
The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is
reported in the balance sheet if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

2.16 Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as foreign
currency denominated borrowings and foreign exchange forward contracts
to manage some of its transaction exposures. Such derivative financial
instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently re-measured at fair
value. Derivatives are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is negative.

Any gain or losses arising from changes in the fair value of derivatives
are taken directly to profit or loss. The foreign exchange forward are
not designated as cash flow hedges and are entered into for periods
consistent with foreign currency exposures of the underlying
transactions.

2.17 Cash and Cash Equivalents (Ind AS 7)

Cash and cash equivalent in the balance sheet comprise cash at banks and
on hand and short-term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents
consist of cash and short-term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral part of the Company’s
cash management.

Cash flows are reported using the indirect method under Ind AS 7, whereby
profit/(loss) before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are segregated based on the available
information.

2.18 Earnings per Share (Ind AS 33)

Basic earnings per share are calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a fully paid
equity share during the reporting period.

The weighted average number of equity shares outstanding during the period
is adjusted for events such as bonus issue that have changed the number of
equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to
equity shareholders by the weighted average number of Equity shares
outstanding during the year plus the weighted average number of equity
shares outstanding, for the effects of all dilutive potential shares.

2.19 Segment reporting (Ind AS 108)

The Company’s operations predominantly relate only to trading of Building
Material accordingly this is the only primary segment. Further, the Company
has major operations in one part of India and therefore there are no
geographical segments but the Group has made significant strategic
Investments in the past and has undertaken the said activity in a focused
and organised manner. As there are no two or more separate reportable
segments, Segment Reporting as per Ind AS -108, “Operating Segments” is
not prepared.

2.20 Contingent Liability and contingent assets (Ind AS 37)

A contingent liability is possible obligation that arises from past events
whose existence will be confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the control of Company or a
present obligation that is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that
cannot be recognised because it cannot be measured reliably. The Company
does not recognise the contingent liability but discloses its existence in the
financial statements.

A contingent asset is a possible asset that arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the entity.
The Company does not recognise the contingent assets since this may result
in the recognition of income that may never be realised but discloses its
existence in the financial statements. Where an inflow of economic benefits is
probable, the Company disclose a brief description of the nature of
contingent assets at the end of the reporting period. However, when the
realisation of income is virtually certain, then the related asset is not a
contingent asset and the Company recognize such assets.

Contingent liabilities and Contingent assets are reviewed at each Balance
Sheet date.

2.21 Non-Current Assets held for Sale or Discontinued Operations:

This standard specifies accounting for assets held for sale, and the
presentation and disclosure for discontinued operations:

Assets that meet the criteria to be classified as held for sale to be
measured at the lower of carrying amount and fair value less cost to
sell, and depreciation on such assets to cease; and

Assets that meet the criteria to be classified as held for sale to be
presented separately in the balance sheet and the results of
discontinued operations to be presented separately in the statement of
profit and loss.

2.22 Exploration for Evolution of Mineral resources: (Ind AS 106)

This standard specifies the financial reporting for the exploration for
evaluation of mineral resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for
exploration and evaluation of expenditures

b. Entities that recognize exploration and evaluation of assets to
assess such assets for impairment in accordance with this
standard and measure any impairment.

Disclosures that identify and explain the amounts in the entity’s financial
statements arising from the exploration for the evaluation of mineral
resources and help users of those financial statements understand the
amount, timing and certainty of future cash flows from any exploration and
evaluation of assets recognized.

This Ind AS 106 is not applicable as the company is in the business of
Trading of Building Material. Hence this Ind AS does not have any financial
impact on the financial statements of the company.

2.23 Construction Contracts (Ind AS -11)

Construction contract is a contract specifically negotiated for the
construction of an asset or a combination of assets that are closely

interrelated or interdependent in terms of their design, technology, and
function or their ultimate purpose or use.

The company is engaged in trading of Building Material. Hence. Ind AS 11
“Construction Contract” is not applicable to the Company.

2.24 Events Reporting Period (Ind AS-10)

Events after the reporting period are those events, favourable and
unfavourable, that occur between the end of the reporting and the date
when the financial statements are approved by the Board of Directors in
case of a company, and, by the corresponding approving authority in case of
any other entity for issue. Two types of events can be identified:

a. Those that provide evidence of conditions that existed at the end of
reporting period (adjusting events after the reporting period);

b. Those that are indicative of conditions that arose after the reporting
period (non-adjusting events after the reporting period).

An entity shall adjust the amounts recognized in its financial statements to
reflect adjusting events after the reporting period.

As per the information provided and Books of Account no such events are
identified during the reporting period. Hence, Ind AS 10 Events After the
Reporting Period is not applicable.

2.25 Accounting for Government Grants and Disclosure of Government
Assistance (Ind AS 20):

Government grants:

Government grants are not recognized until there is reasonable assurance
that the Company will comply with the conditions attached to them and that
the grants will be received.

Government grants are recognized in the Statement of Profit and Loss on a
systematic basis over the years in which the Company recognizes as
expenses the related costs for which the grants are intended to compensate
or when performance obligations are me.

Government grants, whose primary condition is that the Company should
purchase, construct or otherwise acquire non-current assets and non¬
monetary grants are recognized and disclosed as ‘deferred income’ under
non-current liability in the Balance Sheet and transferred to the Statement of
Profit and Loss on a systematic and rational basis over the useful lives of the
related assets.

The benefit of a government loan at a below-market rate of interest and effect
of this favourable interest is treated as a government grant. The loan or
assistance is initially recognized at fair value and the government grant is
measured as the difference between proceeds received and the fair value of
the loan based on prevailing market interest rates and recognized to the
income statement immediately on fulfilment of the performance obligations.
The loan is subsequently measured as per the accounting policy applicable to
financial liabilities.

2.26 Insurance Claims

Insurance Claims are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that the amount
recoverable can be measured reliably and it is reasonable to expect ultimate
collection

2.27 CSR expenditure

As the Company is not covered for allocating funds under Corporate Social
Responsibility for the year 2024-25 as per the financial thresholds outlined
in the Companies Act, 2013, the Company did not transfer any funds
towards Corporate Social Responsibility during the current reporting period.

2.28 Change in accounting policies and disclosures

The Ministry of Corporate Affairs has notified Companies (Indian Accounting
Standards) Amendment Rules, 2024 dated 28^th September, 2024 to amend
the following Ind AS which are effective for annual periods beginning on or
after 01^st April, 2024. The Company applied for the first-time these
amendments.

1. Ind AS 117 - Insurance Contracts:

This new standard expands the scope of insurance contract accounting to
include non-insurance entities that may have contracts with insurance¬
like characteristics. It provides a more comprehensive framework for
recognizing, measuring, presenting, and disclosing information about
insurance contracts.

2. Amendments to Ind AS 116 - Leases:

The amendments to Ind AS 116 provide clarity on the accounting
treatment of sale and leaseback transactions where the lease payments
are variable.

This clarification is crucial for entities involved in such transactions,
ensuring consistent application of the standard.

3. Other Notable Changes and Considerations:

i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates:

An amendment to Ind AS 21, effective from April 1, 2025, to
address the lack of exchangeability of exchange rates.

ii) Ind AS 101 - First-time Adoption of Indian Accounting Standards:
Amendments were made to Ind AS 101, particularly regarding the
treatment of hedge accounting in the opening balance sheet.

iii) Disclosure Requirements:

Enhanced disclosure requirements, particularly in Ind AS 107,
Financial Instruments: Disclosures, have been introduced to provide
clarity regarding financial instruments associated with insurance
contracts.

Based on a preliminary evaluation of the above, the Company
does not expect any material impact on the financial
statements resulting from the implementation of these
amendments.

b) Related Party Transactions during the year: Nil

31. Consolidated and Separate Financial Statement (Ind AS 27):

The company has no subsidiary company for the current reporting
period. Hence no consolidated financial statements have been
prepared.

32. Investments in Associates (Ind AS 28):

The company has not made any investments in any of its associates
during the reporting period. This accounting standard has no financial
impact on the financial statements for the current reporting period.

33. Interest in Joint Ventures (Ind AS 31)

The company has no interest in any Joint ventures. This accounting
standard has no financial impact on the financial statements for the
current reporting period.

34. Earnings Per Share (Ind AS 33):

a) Basic Earnings Per Share for (continued operations) there are no
discontinued operations hence, EPS is presented for continued
operations only.

35. Derivative instruments and un-hedged foreign currency exposure:

a) There are no outstanding derivative contracts as at March 31,
2025 (Previous Year-Nil).

b) Particulars of Un-hedged foreign currency exposure as at 31^st
March 2025 is: Nil (Previous Year-Nil).

36. Segment Reporting:

The Company engaged in Trading of Building Material. Hence,
segment-wise reporting is not applicable.

37. Secured Loans:

The Company doesn’t have any secured loans during the current
period.

40. Foreign Currency Transactions: Nil.

There are no foreign currency transactions during the current
reporting period (Previous Year is Nil)

41. Details of Loans given, Investments made and Guarantee given
covered Under Section 186(4) of the Companies Act, 2013.

The company has not extended any Corporate Guarantees in respect
of loans availed by any company/firm as at March 31, 2025

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 company.

As per the information provided / submitted by the Company, there
are no dues to Micro, Small and Medium Enterprises covered under
(‘MSMED’ Act, 2006).

46. Financial Risk Management

In course of its business, the company is exposed to certain financial
risk such as market risk (Including currency risk and other price
risks), credit risk and liquidity risk that could have significant
influence on the company’s business and operational/financial
performance. The Board of directors reviews and approves risk
management framework and policies for managing these risks and
monitor suitable mitigating actions taken by the management to
minimize potential adverse effects and achieve greater predictability to
earnings.

47. Credit Risk

Credit risk refers to the risk that counterparty will default on its
contractual obligations resulting in financial loss to the company. The
company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, a
means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using
expected credit loss model.

48. Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its
financial obligations. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for
use as pre requirements. The Company’s exposure to liquidity risk is
minimal as the promoters of the company is infusing the funds based
on the requirements.

49. Dividend

The Company has not paid any dividend during the current year.

50. The Company does not have any benami property and no proceeding
has been initiated or pending against the Company for holding any
Benami Property under Benami Transactions (Prohibition) act, 1988

⁵¹ The Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority in
accordance with the guidelines on wilful defaulters issued by the RBI.

⁵² The Company does not have any transactions with companies struck
off under section 248 of the Companies act, 2013

⁵³ The Company does not have any benami property and no proceeding
has been initiated or pending against the Company for holding any
Benami Property under Benami Transactions (Prohibition) act, 1988.

54. The Company does not have any charges or satisfaction which is yet to
be registered with ROC beyond the statutory period

55. 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 assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961.

56. The Company is not covered under section 135 of the Companies act,
2013 regarding the disclosure of details of Corporate Social
Responsibility.

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

58. The Company has not received any fund from any person(s) or
entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the
Group shall:

a) Directly or indirectly lend to 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.

59. The previous year’s figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of
the current year financial statements and are to be read in relation to
the amounts and other disclosures relating to the current year.

60. As the company is in the CIRP process, the company is unable to
disinvest the investment in subsidiaries. Hence the company is unable
to arrive realizable value of the Investment.

61. Amounts have been rounded off to nearest Rupee.

62. Notes. 2 to 29 form an integral part of Standalone Ind AS Financial
Statements and the same have been authenticated.

63. "The financial statements for the year ended 31st March 2025 have
been signed by the directors appointed after that date, as the directors
in office as on 31st March 2025 were suspended pursuant to the
commencement of the Corporate Insolvency Resolution Process (CIRP)
vide order dated 01st October 2024. The current directors have
provided written representations accepting responsibility for the
preparation and presentation of these standalone financial
statements."

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

For BOPPUDI & ASSOCIATES Taaza International Limited

Chartered Accountants

Firm Reg. No. 000502S

CA B. Appa Rao Jhansi Sannivarapu Venkatesh Challa

Proprietor Whole-Time Director Director

Membership No. 028341 DIN: 03271569 DIN: 08891249

UDIN: 25028341BMILRW3088

Date: 26.09.2025 Priya Ladda Rohit Aidasani

Place: Hyderabad Company Secretary CFO

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is : Rs. NIL (Previous year : NIL)

2. Contingent Liabilities not provided for is :

S. Particulars 31.03.2015 31.03.2014 No.

1. Bill Discounted Under LC 43,14,80,700 21,22,78,262

2. Bill Discounted under BG 57,99,81,685 38,66,97,910

3. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation and reconciliations.

5. Dividend to the extent of Rs.51,23,047/- declared for the financial year 2010-2011, has not been paid till date.

6. Dues to micro & small-scale industrial undertakings: As at March 31,2015 as per available information with the company, there are no dues to small scale industrial undertakings.

7. Paise have been rounded off to the nearest rupee.

8. Figures for the previous year are regrouped and rearranged, wherever necessary.

9. Notes 1 to 19 form part of Balance Sheet and Profit and Loss account have been authenticated.

1. Estimated amount of contracts remaining to be executed on capital account and not pro- vided for (net of advances) is : Rs. NIL (Previous year : NIL)

2. Contingent Liabilities not provided for is;

Sl. No. Particulars 31.03.2014 31.03.2013

1. Bill Discount under LC 21,22,78,262 42,65,22,607

2. Bill Discount under BG 38,66,97,910 48,56,23,332

3. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation and reconciliations if any, which in the opinion of the management will not be significant.

5. Dividend to the extent of Rs.51,23,047/- declared for the financial year 2010-2011, has not been paid till date.

6. Related Party Disclosure;

Disclosures as required by the Accounting Standard 18 "Related Party Disclosure" are given below;

Key Management Personnel (Directors)

Ravinder Rao Polsani Managing Director

Namburu Venugopal Non Executive Non Independent Director

Ganesh Vithal Kamath Non Executive Independent Director

Ayyala Somayajula Srinivas Executive Director cum CFO

Yernani Satish Kumar Non Executive Independent Director

Chittars Bhandhavi Company Secretary

7. Dues to micro & small-scale industrial undertakings: As at March 31,2014 as per available information with the company, there are no dues to small scale industrial undertakings.

8. Paise have been rounded off to the nearest rupee.

9. Figures for the previous year are regrouped and rearranged, wherever necessary.

10. Notes 1 to 19 form part of Balance Sheet and Profit and Loss account have been authenticated.

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is : Rs. NIL (Previous year : NIL)

2. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

3. Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation and reconciliations if any, which in the opinion of the management will not be significant.

4. Dividend to the extent of Rs.72,58,110/- declared for the financial year 2010-2011, has not been paid till date.

5. Related Party Disclosure;

Disclosures as required by the Accounting Standard 18 "Related Party Disclosure" are given below;

Key Management Personnel (Directors)

Ravinder Rao Polsani Managing Director

Namburu Venugopal Additional Director

Srinivas Ayyala Somayajula Director

Ganesh Vithal Kamath Director

6. Dues to micro & small-scale industrial undertakings: As at March 31, 2013 as per available information with the company, there are no dues to small scale industrial undertakings.

7. Paise have been rounded off to the nearest rupee.

8. Figures for the previous year are regrouped and rearranged, wherever necessary.

9. Notes 1 to 20 form part of Balance Sheet and Profit and Loss account have been authenticated.

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is : Rs. NIL (Previousyear : NIL)

2. Contingent Liabilities not provided for is : Rs.NIL (Previous year: NIL)

3. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Some of the balances in Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confrmation, reconciliations and adjustments if any, which in the opinion of the management will not be signifcant.

5. Related Party Disclosure

Disclosures as required by the Accounting Standard 18 "Related Party Disclosure" are given below;

Key Management Personnel (Directors)

RAVINDER RAO POLSANI Managing Director

YALAMARTHY SRINIVAS Addl. Director

VIKRAM CHAKRAVARTHY PHANIBHATLA Director

GANESH VITHAL KAMATH Director

6. Earnings Per Share

The calculation of Earning Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with Accounting Standard (AS-20) on Earnings per Share issued by the Institute of Chartered Accountants of India. A statement on calculation of basic and diluted EPS is as under;

7. Foreign Currency Earnings : Rs. 5,07,300 (Previous year : NIL)

8. Expenditure in Foreign Currency : Rs.23,79,400 (Previous year :NIL)

9. Figures for the previous year are regrouped and rearranged, wherever necessary.