Notes to Accounts of Konndor Industries Ltd.

Mar 31, 2024

f. Provisions (other than Employee Benefits), Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present legal 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 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 recognized but are disclosed in the notes to the financial statements. A contingent asset is neither
recognized nor disclosed if inflow of economic benefit is probable.

g. Revenue Recognition

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the significant
risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the
associated costs and possible return of goods can be estimated reliably, there is no continuing effective control over,
or managerial involvement with, the goods, and the amount of revenue can be measured reliably.

h Income Tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to
a business combination or to an item recognised directly in equity or in other comprehensive income.

i. Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting
date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

ii Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit
may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset
only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that
sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax
assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the
extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity,
or on different taxable entities, but they intend to settle current tax liabilities and assets on net basis or their tax
assets and liabilities will be realised simultaneously.

i Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks and other
short term highly liquid investments that are readily convertible to know amounts of cash and which are subject to
an insignificant risk of changes in value where original maturity is three months or less.

j Borrowing Cost

Borrowing cost are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest cost) incurred in connection with the borrowing of
funds. Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a
substantial period of time to get ready for their intended use are capitalised as part of cost of asset until such time
the assets are substantially ready for their intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred.

k Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the year. Diluted
earnings per share is calculated by dividing net profit attributable to equity shareholders (after adjustment for diluted
earnings) by average number of weighted equity shares outstanding during the year plus potential equity shares.

l Cash Flow Statement

Cash flows are reported using the indirect method whereby the profit before tax is adjusted for the effect of the
transactions of a non cash nature, any deferrals or accruals of past and future operating cash receipts or payments
and items of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

Note 22 - Related Party Disclosure

The Management has identified the following entities and individuals as related parties of the Company for the year ended March 31,
2024 for the purposes of reporting as per Ind AS 24 - Related Party Disclosures, which are as under:

Note 23 - Contingent liabilities and commitments

The Company does not have any contingent liability and commitments as on March 31, 2024.

Note 24 - Segment Reporting

The Company operates mainly in trading of paper products and all other activities are incidental thereto, which have similar risk and
return, accordingly, there is no separate reportable Segment disclosure is required.

Note 25 - Note on Corporate Social Responsibility

(a) Gross amount required to be spent by the Company during the year is Rs.Nil. (Previous year - Nil).

(b) Amount spent by the Company during the year is Rs.Nil.

On the basis of previous year''s trend, company is expecting to contribute the same amount as in 2022-23 to the defined contribution
plan.

However, for the defined benefit plan company is not liable to contribute any amount as the plans are unfunded.

The estimate of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

Note 31: Financial risk management objectives and policies
Financial Risk Management

The Company''s business activities expose it to a variety of financial risks, namely credit risk, liquidity risk, market risk and
commodity risk. The Company''s senior management has overall responsibility for the establishment and oversight of the Company''s
risk management framework. The Company has constituted a Risk Management Committee which is responsible for developing and
monitoring the Company''s risk management policies. The key risks and mitigating actions are also placed before the Audit Committee
of the Company. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a
financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company and
provide assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The activities are designed
to protect the Company’s financial results and position from financial risks, maintain market risks within the acceptable parameters
while optimizing returns and protect the Company’s financial investments while maximizing returns.

Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle the obligation as agreed. To manage this, the
Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends
and analysis of historical bad debts and ageing of accounts receivable. Customer wise limits are set accordingly.

The Company considers the probability of default of asset and whether there has been a significant increase in credit risk on an
ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares
the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
reasonable and supportive forward-looking information such as:

i) Actual or expected significant adverse changes in business.

ii) Actual or expected significant changes in the operating results of the counterparty.

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its
obligations.

iv) Significant increase in credit risk on other financial instruments of the same counterparty.

The Company categorizes financial assets based on the assumptions, inputs and factors specific to the class of financial asset into
High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate credit risk; Substandard assets,
relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets, credit impaired.

Financial assets are written off when there are no reasonable expectations of recovery, such as a debtor failing to engage in a
repayment plan with the Company. The Company categorizes a loan or receivable for write off when a debtor fails to make contractual
payments greater than one year past due. Where loans or receivables have been written off, the Company continues engage in
enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial
instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial
asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term
funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of the
maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash
equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its
normal operating commitments in a timely and cost-effective manner.

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on
the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

Note 34

Previous Year’s figures have been regrouped / reclassified wherever necessary to confirm to current year presentation.

The accompanying notes are an integral part of the Financial Statements.

As per our report of even date.

For For and on behalf of

Vijay Moondra & CO the Board of Directors of Konndor Industries Limited

Chartered Accountants
(Firm No. 112308W)

Vinit Moondra Shashikant Thakar Sanjay Gupta

Partner Director Whole Time Director

M No. 119398 DIN : 02887471 DIN - 08415091

Udit Vora

Company Secretary
Mem No. : A38017

Date : 30/05/2024 Date : 30/05/2024

Place: Ahmedabad Place: Ahmedabad

---

Mar 31, 2013

(A) Terms/rights,preferences and restrictions attached to securities:

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

I. Expected Employer''s contribution for the next financial year

On the basis of previous year''s trend, company is expecting to contribute the same amount as in 2012-13 to the defined contribution plan.

However, for the defined benefit plan company is not liable to contribute any amount as the plans are unfunded.

The estimate of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

1 Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, the Company operates mainly in trading of paper products and all other activities are incidental thereto, which have similar risk and return, accordingly, there is no separate reportable Segment disclosure is required.

---

Mar 31, 2012

1 EMPLOYEE BENEFITS EXPENSE:

I. Expected Employer's contribution for the next financial year

On the basis of previous year's trend, company is expecting to contribute the same amount as in 2011-12 to the defined contribution plan.

However, for the defined benefit plan company is not liable to contribute any amount as the plans are unfunded.

The estimate of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

2 Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, the Company operates mainly in trading of paper products and all other activities are incidental thereto, which have similar risk and return, accordingly, there is no separate reportable Segment disclosure is required.

3 Related Party Disclosure:

(a) List to Related Parties and Relationships:

i. Concern where significant interest exists. Nil

li. Key Management Personnel and Relatives.

Shri. Jamria Prasad Maheshwari - Managing Director

Shri. Hemant Chinubhai Mehta - Director

Shri. Arvind Baldwa - Director

4 Till the year ended 31 March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1906 to preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has re-classified previous year figures to conform to this year's classification. Previous year figures have been re-arranged, and re-grouped, wherever necessary to make them comparable with those of current year as per revised Schedule-VI.

---

Mar 31, 2011

1) Based on the information / documents / parties identified by the company and to the extent information available/ gathered, with respect to information as required to be disclosed as per Micro, Small & Medium Enterprise Development Act, 2006, there is no transaction with such parties during the year.

2) Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, the Company operates mainly in trading of paper products and all other activities are incidental thereto, which have similar risk and return, accordingly, there is no separate reportable Segment disclosure is required.

3) (i) The Remuneration to Managing Directors of the Company has been paid as agreed to, which is lower than the permissible minimum remuneration as provided in Schedule XIII of the Companies Act, 1956. As such, computation of net profits under Section 349 of the Companies Act; 1956 has not been given.

(ii) The above excludes provision for gratuity and leave encashment, since these are based on actuarial valuation done on an overall company basis.

4) Deferred Tax Liability:

As required by the Accounting Standard 22" Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax liability during the year amounting to Rs. 5,369.

5) Disclosure pursuant to AS 15 (revised) "Employees Benefits"

Defined Benefit Plan

In the current year, the Company has adopted Accounting Standard 15 (AS-15) (Revised) "Employee Benefits" which is mandatory from accounting periods starting from Dec 7, 2006. Accordingly, the Company has provided for gratuity (unfunded) and leave encashment (unfunded) based on actuarial valuation done as per Projected Unit Credit Method.

VI. Actuarial Assumptions

The estimate of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. Actuarial valuation done for the first time this year and hence previous year figures have not been given.

6) Related Party Disclosure:

(a) List of Related Parties and Relationships:

i. Concern where significant interest exists. Nil

ii. Key Management Personnel and Relatives.

Shri. Jamna Prasad Maheshwari - Managing Director

Shri. Hemant Chinubhai Mehta - Director

Shri. Arvind Baldwa - Director

7) Previous year figures have been re-arranged and re-grouped, wherever necessary to make them comparable with those of current year.

---

Mar 31, 2010

I. The previous years figures have been recast/restated, wherever necessary, to conform to the current years classification.

ii. During the year the name of company has been changed to ARMS PAPER LTD vide fresh certificate of incorporation consequent upon change of name dated 14th May, 2009 by the Registrar of Companies, Gujarat. The new Corporate Identity Number is L21098-GJ1983-PLC006041.

iii. Contingent Liabilities:

Guarantee amounting to Rs 15000 (P.Y. Rs. 2865000) given by the Bankers in favor of various parties.

iv. Managerial Remuneration:

The Remuneration to Managing Director of the Company has been paid as agreed to, which is lower that the permissible minimum remuneration as provided in Schedule XIII of the companies Act, 1956. As such, Computation of net profit under section 349 of the companies Act, 1956 has not been given.

v. Deferred Tax Liability:

As required by the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountant of India, the company has provided for deferred tax liability during the year amount to Rs 0.69 Lakhs (P.Y. 0.04 Lakhs)

vi. Related Party Disclosures

A. Related party disclosures, as required by AS-18, "Related Party Disclosures", are given below: (a) List of Related Parties and Relationships:

I. Promoter Group Company: Nil.

II. Key Management Personnel:

Shri Jamna Prasad Maheshwari Managing Director

Shri Hemant Chinubhai Mehta Director

Shri Arvind Baldwa Director



vii. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of business. The provisions for depreciation and for all known Liabilities are adequate and not in excess of the amount reasonably necessary.

viii. Information pursuant to provisions of paragraph 3 & 4 of Part II, Schedule VI of the Companies Act, 1956.