Notes to Accounts of Nupur Recyclers Ltd.

Mar 31, 2025

"Provisions are recognised in the balance sheet when the Company has a present obligation (legal or
constructive) as a result of a past event, which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the balance sheet date.

(a) by an established pattern of past practice, published policies or a sufficiently specific current
statement, the entity has indicated to other parties that it will accept certain responsibilities; and

(b) As a result, the entity has created a valid expectation on the part of those other parties that it will
discharge those responsibilities. "

(ix) Income taxes

Tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the statement of profit and loss because it excludes items of income or expense that are taxable
or deductible in other years and it further excludes items that are never taxable or deductible. The
Company’s liability for current tax is calculated using tax rates and tax laws enacted in the country.
Applicable Tax rates for calculating current year income tax provision & deferred tax include Health &
Education Cess which has been held to be deductible expense as per various judicial pronouncements.
Accordingly, provision for income tax of current year has been worked out after considering the deductible
health & education cess paid during the year.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts
of assets and liabilities in the financial statements and the corresponding tax bases used in the computation
of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences. In contrast, deferred tax assets are only
recognised to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to
taxable income in the years in which the temporary differences are expected to be recovered or settled.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case the tax is also recognised in other comprehensive income or directly in equity.

(x) Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks,
remittances in transit 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.

"Company has adopted Ind AS 116 ""Leases"" Starting April 01, 2021, with initial date of application
being April 01, 2021."

"The Company applied Ind AS 116 using the modified retrospective approach with a date of initial
application of April 01, 2021 and accordingly the comparative figures have not been restated. Moreover,
there was no impact of initial application on the balance of retained earnings as of April 01, 2021.

The accounting policy of the Company on adoption of Ind AS 116 is detailed below."

"The Company as a lessee

At inception of a contract the Company assess whether a contract is, or contain a lease. A contract is, or
contains, a lease if contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. "

The Company recognises a right of use asset and a lease liability at the lease commencement date. The
right of use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease incentives received.

The right of use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The
estimated useful lives of right of use assets are determined on the same basis as those of property, plant and
equipment.

"The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily
determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental
borrowing rate as the discount rate. The lease liability is measured at amortised cost using the effective
interest method.

In cases of leases having a lease term of less than one year, the amount of lease payment is recognized as
an expense on accrual basis."

"The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease
or an operating lease. To classify each lease, the Company makes an overall assessment of whether the
lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If
this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this
assessment, the Company considers certain indicators such as whether the lease is for the major part of the
economic life of the asset.

Rental income from assets held under operating leases is recognized on straight line basis."

(xii) Investment properties

"Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied
by the Company, is classified as investment property. Investment property is measured initially at cost,
including related transaction cost and where applicable borrowing costs. Subsequent expenditure is
capitalized in the assets carrying amount only when it is probable that future economic benefit associated
with the expenditure will flow to the Company and cost of the items can be reliably measured. All other
repair and maintenance cost are expensed when incurred.

Investment property are depreciated using written down value basis over the useful life as prescribed in
Schedule II of the Companies Act, 2013 unless otherwise specified.

(xiii) Business combinations

Acquisition of subsidiaries and businesses are accounted for using the acquisition method. The
consideration transferred in each business combination is measured at the aggregate of the acquisition date
fair values of assets given, liabilities incurred by the Group to the former owners of the acquiree and equity
interests issued by the Group in exchange for control of the acquiree.

Goodwill arising on acquisition is recognised as an asset and measured at cost, being the excess of the
consideration transferred in the business combination over the Group’s interest in the net fair value of the
identifiable assets acquired, liabilities assumed and contingent liabilities recognised. Where the fair value
of the identifiable assets and liabilities exceed the cost of acquisition, after re-assessing the fair values of
the net assets and contingent liabilities, the excess is recognised as capital reserve on consolidation.

b. Terms/rights attached to shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of
equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible
to receive the remaining asset of the company after distribution of all preferential amount in proportion to
their shares.

c. Bonus shares issued

In the earlier years, the company has issued bonus shares twice to equity shareholders. The first issuance
of bonus shares was for 1,50,90,000 shares on 14.09.2021 (1509 equity shares for every one share held)
and the second issuance was for 20,79,996 shares on 25.02.2022 (1 equity shares for every 10 share held).
In the previous year, the company has issued bonus shares totalling to 2,28,79,996 equity shares on
24.12.2022 (1 equity shares for every one share held).

In the Previous year, the company has issued bonus shares totalling to 2,28,79,003 equity shares on
21.03.2024 (1 equity shares for every two share held).

Nature and purpose of other equity

1 Retained Earnings

Retained Earnings is a free reserves that is available for distribution of dividends.

2 Security premium account

Security premium account is created from issue of shares at a price higher than face value of shares. The
account can be utilized for various purposes as per Companies Act, 2013

3 Investment revaluation reserve

Investment revaluation reserve is created from fair valuation of long term equity investments held by the
Company. This reserve will be transferred to retained earning once the share investments are sold.

4 Share Warrant

These are warrants issued by the Company which are convertible into equity shares at a predetermined
price.

Note 34: Employee benefit Plan
(A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 26 days salary payable for each
completed year of service. Vesting occurs upon completion of five years of service. The Company does
not make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the
liability for gratuity benefits payable in the future based on an actuarial valuation.

Notes to financial Statements for the year ended March 31, 2025
(All amounts in Indian Rupees in Lakhs, unless otherwise stated)

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of plan participants. As such, an increase in the salary of the plan participants will increase
the plan’s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the
best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants
will increase the plan’s liability.

(B) Defined Contribution Plan
Provident fund and pension

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible
employees of the Company are entitled to receive benefits in respect of provident fund, a defined
contribution plan, in which both employees and the Company make monthly contributions at a specified
percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the
employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined
contribution plans amounted to Rs. 2.05 Lakhs (PY: Rs. 1.75 Lakhs)

Note - 35: Segment Reporting

The Company is engaged Primarily in the business of import of ferrous/non ferrous metal scrap and
processing/trading of same on PAN India basis. Considering the nature of Company''s business and
operations, as well as based on review of operating results by the chief operating decision maker to make
decision about resource allocation and performance measurement, there are no reportable segments in the
standalone financial statements , in accordance with the requirement of Ind AS 108 - " Operating Segments".

(i) Company has received a demand Order for AY 2022-23 from the Income Tax Department
under section 156 for an amount of Rs. 1,30,54,350. The demand primarily pertains to
certain additions made by the Income Tax Department after carrying out the scrutiny
assessment under section 143(2) of the Income Tax Act. Company has filled an appeal
against the Order with the CIT(A) on 12.04.2025 and is confident of having the favourable
decision on the same. Till the appeal is disposed off, the amount has been disclosed as a
contingent liability.

(ii) The Company has provided bank guarantee to Indraprastha Gas Limited for Rs 2,64,825.

The Company’s capital management objective is to maximise the total shareholder return by
optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and
long-term strategic plans. The funding requirements are met mostly through internal accruals and some
short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity
ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and
has met its capital requirements through internal accruals and equity shares issued through IPO during
FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities
premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash
equivalents, fixed deposits held with bank and margin money held with banks.

Note - 39: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36) on “Impairment of Assets” the
Company has, during the year, carried out an exercise of identifying the assets that may have been
impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard.
Based on the exercise, no impairment loss is required as at March 31, 2025.

Note - 40: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments. The significant
accounting policy in relation to financial instruments is contained in Note 1(E)(v).

a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and
liabilities as at March 31, 2025 and March 31, 2023.

* The fair value of all other financial asset and liability carried at amortize cost is equal to their carrying
value as at balance sheet dates due to short term nature of assets and liability.

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are
measured by reference to quoted prices in active markets for identical assets or liabilities. Company does
not hold any asset/liability that fall into this category. This level of hierarchy includes Company’s
investment in quotes equity shares.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets
and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).Company
does not hold any asset/liability that fall into this category.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes
financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Company does not hold any asset/liability that fall into this category.

(iii) Price Risk - Security price risk

Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and
classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the
end of the year

If the equity prices had been 5% higher/lower:

Other comprehensive income for the year ended 31st March 2025 would increase/decrease by INR 64.12
Lakh (for the year ended 31st March 2023: increase/decrease by INR 21.33 Lakh) as a result of the change
in fair value of equity investment measured at FVTOCI.

NOTES ON ACCOUNTS

41. Disclosures for leases under Ind AS 116 - “Leases”.

The Group has entered into short term lease (less than one year) and license agreements for taking
warehouse space / office space on rental basis.

48 Other Notes

(i) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and
Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course
of business which is at least equal to the amount at which they are stated.

(ii) Figures for the previous year have been re-grouped/ rearranged/ restated wherever necessary to make
them comparable with those of the current year.

(iii) The Company does not have any immovable property whose title deed is not held in name of the
company.

(iv) The company does not have any Benami property, where any proceeding has been initiated or pending
against the company for holding any Benami property.

(v) The company does not have borrowings from the bank or financial institutions where quarterly returns
or statement of current assets to be filed with such bank/financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under
the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the
companies Act 2013 or section 560 of companies Act 1956.

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

(ix) The Company has complied with the number of layers for its holding in downstream companies
prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction
on number of Layers) Rules, 2017.

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

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

(xii) The Company does not have any 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.

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

For KRA & Co. For and on behalf of the Board of Directors

Chartered Accountants NUPUR RECYCLERS LIMITED

Firm''s Registration Number: 020266N

Sd/- Sd/- Sd/-

Rajat Goyal Rajesh Gupta Devender Kumar Poter

Partner Managing Director Director & CFO

Membership No. 503150 DIN-01941985 DIN-08679602

UDIN: 25503150BMJBZU1327

Place: Delhi
Date: 24.05.2025

Sd/-

Shilpa Verma

Company Secretary
M. No. - 10105)

---

Mar 31, 2024

(viii) Provisions

"Provisions are recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and

(b) As a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities. "

(ix) Income taxes

Tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates and tax laws enacted in the country. Applicable Tax rates for calculating current year income tax provision & deferred tax include Health & Education Cess which has been held to be deductible expense as per various judicial pronouncements. Accordingly, provision for income tax of current year has been worked out after considering the deductible health & education cess paid during the year.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.

(x) Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks, remittances in transit 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.

(xi) Leases

"Company has adopted Ind AS 116 ""Leases"" Starting April 01, 2021, with initial date of application being April 01, 2021."

"The Company applied Ind AS 116 using the modified retrospective approach with a date of initial application of April 01, 2021 and accordingly the comparative figures have not been restated. Moreover, there was no impact of initial application on the balance of retained earnings as of April 01, 2021.

The accounting policy of the Company on adoption of Ind AS 116 is detailed below."

"The Company as a lessee

At inception of a contract the Company assess whether a contract is, or contain a lease. A contract is, or contains, a lease if contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. "

The Company recognises a right of use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated useful lives of right of use assets are determined on the same basis as those of property, plant and equipment.

"The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is measured at amortised cost using the effective interest method.

In cases of leases having a lease term of less than one year, the amount of lease payment is recognized as an expense on accrual basis."

Notes to financial Statements for the year ended March 31, 2024 (All amounts in Indian Rupees in Lakhs, unless otherwise stated)

"The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Rental income from assets held under operating leases is recognized on straight line basis."

(xii) Investment properties

"Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at cost, including related transaction cost and where applicable borrowing costs. Subsequent expenditure is capitalized in the assets carrying amount only when it is probable that future economic benefit associated with the expenditure will flow to the Company and cost of the items can be reliably measured. All other repair and maintenance cost are expensed when incurred.

Investment property are depreciated using written down value basis over the useful life as prescribed in Schedule II of the Companies Act, 2013 unless otherwise specified.

(xiii) Business combinations

Acquisition of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in each business combination is measured at the aggregate of the acquisition date fair values of assets given, liabilities incurred by the Group to the former owners of the acquiree and equity interests issued by the Group in exchange for control of the acquiree.

Goodwill arising on acquisition is recognised as an asset and measured at cost, being the excess of the consideration transferred in the business combination over the Group’s interest in the net fair value of the identifiable assets acquired, liabilities assumed and contingent liabilities recognised. Where the fair value of the identifiable assets and liabilities exceed the cost of acquisition, after re-assessing the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve on consolidation.

b. Terms/rights attached to shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining asset of the company after distribution of all preferential amount in proportion to their shares.

c. Bonus shares issued

In the earlier years, the company has issued bonus shares twice to equity shareholders. The first issuance of bonus shares was for 1,50,90,000 shares on 14.09.2021 (1509 equity shares for every one share held) and the second issuance was for 20,79,996 shares on 25.02.2022 (1 equity shares for every 10 share held).

In the previous year, the company has issued bonus shares totalling to 2,28,79,996 equity shares on 24.12.2022 (1 equity shares for every one share held).

In the current year, the company has issued bonus shares totalling to 2,28,79,003 equity shares on 21.03.2024 (1 equity shares for every two share held).

Note 34: Employee benefit Plan (A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 26 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company does not make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability.

The following table sets out the amounts recognised in the financial statement in respect of retiring gratuity plan:

(B) Defined Contribution Plan Provident fund and pension

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to Rs. 2.05 Lakhs (PY: Rs. 1.75 Lakhs)

Note - 35: Segment Reporting

The Company is engaged Primarily in the business of import of ferrous/non ferrous metal scrap and processing/trading of same on PAN India basis. Considering the nature of Company''s business and operations, as well as based on review of operating results by the chief operating decision maker to make decision about resource allocation and performance measurement, there are no reportable segments in the standalone financial statements , in accordance with the requirement of Ind AS 108 -"Operating Segments".

Note - 36: Contingent Liabilities and commitment

(i) Company has received a demand Order for AY 2022-23 from the Income Tax Department under section 156 for an amount of Rs. 1,30,54,350. The demand primarily pertains to certain additions made by the Income Tax Department after carrying out the scrutiny assessment under section 143(2) of the Income Tax Act. Company has filled an appeal against the Order with the CIT(A) on 12.04.2024 and is confident of having the favourable decision on the same. Till the appeal is disposed off, the amount has been disclosed as a contingent liability.

(ii) The Company has provided bank guarantee to Indraprastha Gas Limited for Rs 2,64,825.

Note - 38: Capital management

The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met mostly through internal accruals and some short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued through IPO during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash equivalents, fixed deposits held with bank and margin money held with banks.

Note - 39: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36) on “Impairment of Assets” the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31, 2024.

Note - 40: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note 1(E)(v).

a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2024 and March 31, 2023

* The fair value of all other financial asset and liability carried at amortize cost is equal to their carrying value as at balance sheet dates due to short term nature of assets and liability.

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices in active markets for identical assets or liabilities. Company does

not hold any asset/liability that fall into this category. This level of hierarchy includes Company’s investment in quotes equity shares.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).Company does not hold any asset/liability that fall into this category.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Company does not hold any asset/liability that fall into this category.

(iii) Price Risk - Security price risk

Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year

If the equity prices had been 5% higher/lower:

Other comprehensive income for the year ended 31st March 2024 would increase/decrease by INR 64.12 Lakh (for the year ended 31st March 2023: increase/decrease by INR 21.33 Lakh) as a result of the change in fair value of equity investment measured at FVTOCI.

6. Trade Receivable Turnover Ratio = Revenue from Operations / Trade Receivable

7. Trade Payable Turnover Ratio = Purchase / Trade Payable

8. Net Capital Turnover Ratio = Revenue from Operations / (Current Asset - Current Liability)

9. Net Profit Ratio = Profit After Tax / Revenue from Operations

10. Return on Investment = Net income on investment / Cost of Equity Investment

11. Return on Capital Employed = Profit After tax / (Total Equity Total Debt)

48 Other Notes

(i) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

(ii) Figures for the previous year have been re-grouped/ rearranged/ restated wherever necessary to make them comparable with those of the current year.

(iii) The Company does not have any immovable property whose title deed is not held in name of the company.

(iv) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(v) The company does not have borrowings from the bank or financial institutions where quarterly returns or statement of current assets to be filed with such bank/financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.

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

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

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

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

(xii) The Company does not have any 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.

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

For KRA & Co. For and on behalf of the Board of Directors

Chartered Accountants NUPUR RECYCLERS LIMITED

Firm''s Registration Number: 020266N

Rajat Goyal Rajesh Gupta Devender Kumar Poter

Partner Managing Director Director & CFO

Membership No. 503150 DIN-01941985 DIN-08679602

UDIN: 24503150BKALVI6720

Place: Delhi Date: 30.05.2024

Shilpa Verma

Company Secretary M. No. - 10105)

---

Mar 31, 2023

a. Terms/rights attached to shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining asset of the company after distribution of all preferential amount in proportion to their shares.

b. Bonus shares issued

In the current year, the company has issued bonus shares totalling to 2,28,79,996 equity shares on 24.12.2022 (1 equity shares for every one share held). In the previous year, the company has issued bonus shares twice to equity shareholders. The first issuance of bonus shares was for 1,50,90,000 shares on 14.09.2021 (1509 equity shares for every one share held) and the second issuance was for 20,79,996 shares on 25.02.2022 (1 equity shares for every 10 share held).

Nature and purpose of other equity

1 Retained Earnings

Retained Earnings is a free reserves that is available for distribution of dividends.

2 Security premium account

Security premium account is created from issue of shares at a price higher than face value of shares. The account can be utilized for various purposes as per Companies Act, 2013

3 Investment revaluation reserve

Investment revaluation reserve is created from fair valuation of long term equity investments held by the Company. This reserve will be transferred to retained earning once the share investments are sold.

Note 35: Employee benefit Plan (A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 26 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company does not make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability.

The following table sets out the amounts recognised in the financial statement in respect of retiring gratuity plan:

(B) Defined Contribution Plan Provident fund and pension

In accordance with the Employee’s provident Fund and Miscellaneous provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the low , are made to the employees provident fund organization (EPFO).

The total expenses recognised in the statements of profit and loss during the year on account of defined contribution plants amounted to Rs 1.75 lakhs (PY: Rs. 0.60 lakhs)

The Company is engaged Primarily in the business of import of ferrous/non ferrous metal scrap and processing/trading of same on PAN India basis. Considering the nature of Company''s business and operations, as well as based on review of operating results by the chief operating decision maker to make decision about resource allocation and performance measurement, there is only one reportable business segment and is a single geographical segment (India), in accordance with the requirement of Ind AS 108 - "Operating Segments"

Note - 37: Contingent Liabilities and commitment

(i) Company has received a demand Order from the Income Tax Department under section 143(1) for an amount of Rs. 1,76,00,568. The demand primarily pertains to Income Tax Department charging tax @ 34.944% while the company has opted for lower taxes @ 25.17% under section 115BAA of the Income Tax Act. Company has filled an appeal against the Order with the CIT(A) on 06.12.2022 and is confident of having the favourable decision on the same. Till the appeal is disposed off, the amount has been disclosed as a contingent liability.

(ii) The Company has provided bank guarantee to Indraprastha Gas Limited for Rs 2,64,825.

The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and longterm strategic plans. The funding requirements are met mostly through internal accruals and some shortterm borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued through IPO during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash equivalents, fixed deposits held with bank and margin money held with banks.

Note - 40: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36) on “Impairment of Assets” the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31, 2023.

Note - 41: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note 1(E)(v).

a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2023, March 31, 2022 and April 01, 2021.

* The fair value of all other financial asset and liability carried at amortize cost is equal to their carrying value as at balance sheet dates

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices in active markets for identical assets or liabilities. Company does not hold any asset/liability that fall into this category. This level of hierarchy includes Company’s investment in quotes equity shares.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).Company does not hold any asset/liability that fall into this category.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Company does not hold any asset/liability that fall into this category.

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year

If the equity prices had been 5% higher/lower:

Other comprehensive income for the year ended 31st March 2023 would increase/decrease by INR 21.33 Lakh (for the year ended 31st March 2022: increase/decrease by INR 8.95 Lakh) as a result of the change in fair value of equity investment measured at FVTOCI.

Note - 42: Adoption of Indian Accounting Standard (Ind AS)

A. Mandatory exceptions to retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101 “First Time Adoption of Indian Accounting Standards”.

(i) Estimates

On assessment of estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates.

(ii) Classification and measurement of financial assets

The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of facts and circumstances that existed on the date of transition to Ind AS.

(iii) Derecognition of financial assets and financial liabilities

Derecognition requirement for Ind AS 109 has been applied prospectively

Ind AS 101 “First time Adoption of Indian Accounting Standards” permits Companies adopting Ind AS for the first time to take certain exemptions from the full retrospective application of Ind AS during the transition. The Company has accordingly on transition to Ind AS availed the following key exemptions:

(i) Property, plant and equipment:

The company has elected to take the carrying value of its property, plant & equipment and intangible assets as per previous GAAP ( I GAAP ) as its deemed cost for Ind AS as at 1st April, 2021.

(ii) Designation of previously recognized financial instruments

Company holds investment in equity shares of Omaxe that are neither held for trading nor are contingent consideration. Accordingly, Company has availed the option provided by Para D19B of Ind AS 101 and the fair value of the equity shares shall be recognised in Other Comprehensive Income as per provision of Para 5.7.5 of Ind AS 109.

(iii) Foreign Currency Transactions and Advance Consideration

As per Para D 36 of Ind AS 101, the Company is not applying Appendix B of Ind AS 21 to assets initially recognized before 01.04.2021

(i) Financial instruments

(i) Under previous IGAAP, current investments were stated at lower of cost and fair value. Under Ind AS (Ind AS 109 "Financial Instruments"), these financial assets have been classified as FVTPL on the date of transition and fair value changes after the date of transition has been recognized in profit and loss

(ii) Under previous IGAAP, non-current investments were stated at cost. Under Ind AS (Ind AS 109"Financial Instruments"), these financial assets have been classified as Fair Value through Other Comprehensive Income (FVTOCI) on the date of transition and fair value changes after the date of transition has been recognized in Other Comprehensive Income

(iii) Under previous IGAAP, some financial assets are carried at books value. Under Ind AS (Ind AS 109"Financial Instruments"), these financial assets have been classified as Amortized cost on the date of transition and are carried at amortized cost using EIR .

(ii) Deferred taxes

Deferred taxes includes defererd tax impact on financial instruments recognized as per Ind AS 109 "Financial Instruments."

(iii) Other comprehensive Income

Under Ind AS, all items of income and expense recognised during the year are included in the profit or loss for the year, unless Ind AS requires or permits otherwise. Items that are not recognised in profit or loss but are shown in the statement of profit and loss and other comprehensive income include remeasurement gains or losses on defined benefit plans, fair value changes on equity instrument recognized as FVTOCI.

The concept of other comprehensive Income did not exist under the Previous GAAP.

43 Disclosures for leases under Ind AS 116 - “Leases”.

The Company has entered into short term lease (less than one year) and license agreements for taking warehouse space / office space on rental basis.

Reason for change in ratio: The company revenue has significantly reduced during the current year due to global demand/ supply issues. As a result of these is a significant changes in ratio.

Methodology:

1. Current Ratio = Current Asset / Current Liability

2. Debt-Equity Ration = Total Debt / (Total Debt Equity)

3. Debt Service Coverage Ratio = EBITDA / Finance Cost

4. Return on Equity Ratio = Profit After Tax / Total Equity

5. Inventory Turnover Ratio = Purchase / Inventory

6. Trade Receivable Turnover Ratio = Revenue from Operations / Trade Receivable

7. Trade Payable Turnover Ratio = Purchase / Trade Payable

8. Net Capital Turnover Ratio = Revenue from Operations / (Current Asset - Current Liability)

9. Net Profit Ratio = Profit After Tax / Revenue from Operations

10. Return on Investment = Net income on investment / Cost of Equity Investment

11. Return on Capital Employed = Profit After tax / (Total Equity Total Debt)

48 Other Notes

(i) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

(ii) Figures for the previous year have been re-grouped/ rearranged/ restated wherever necessary to make them comparable with those of the current year.

(iii) The Company does not have any immovable property whose title deed is not held in name of the company.

(iv) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(v) The company does not have borrowings from the bank or financial institutions where quarterly returns or statement of current assets to be filed with such bank/financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.

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

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company

Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(xii) The Company does not have any 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.

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