Notes to Accounts of Pyramid Technoplast Ltd.

Mar 31, 2025

(H) Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that the
Company will be required to settle the obligation,
and a reliable estimate can be made of the amount
of the obligation. Provisions for restructuring
are recognised by the Company when it has
developed a detailed formal plan for restructuring
and has raised a valid expectation in those affected
that the Company will carry out the restructuring
by starting to implement the plan or announcing its
main features to those affected by it.

Provisions are measured at the best estimate of
the consideration required to settle the present
obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to
settle the present obligation, it''s carrying amount
is the present value of those cash flows (when
the effect of the time value of money is material).
The measurement of provision for restructuring
includes only direct expenditures arising from the
restructuring, which are both necessarily entailed
by the restructuring and not associated with the
ongoing activities of the Company.

(I) Employee benefits

Employee benefits include salaries, wages,
contribution to provident fund, gratuity,
leave encashment towards un availed leave,
compensated absences, post-retirement medical
benefits and other terminal benefits.

Short-term employee benefits

Wages and salaries, including non-monetary
benefits that are expected to be settled within
12 months after the end of the period in which

the employees render the related service are
recognised in respect of employees'' services
up to the end of the reporting period and are
measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.

Post-employment benefits Defined contribution
plan

Employee Benefit under defined contribution plans
comprises of Contributory provident fund etc.
is recognized based on the undiscounted amount
of obligations of the Company to contribute to
the plan. The same is paid to a fund administered
through a separate trust.

Defined benefit plan

Defined benefit plans comprising of gratuity is
recognized based on the present value of defined
benefit obligations which is computed using
the projected unit credit method, with actuarial
valuations being carried out at the end of each
annual reporting period. These are accounted
either as current employee cost or included in
cost of assets as permitted. The net interest cost
is calculated by applying the discount rate to the
net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included
in employee benefit expense in the statement of
profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity and in
the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
or loss as past service cost.

Short term employee benefits

Liabilities recognised in respect of short-term
employee benefits are measured at the
undiscounted amount of the benefits expected
to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term
employee benefits are measured at the present
value of the estimated future cash outflows

expected to be made by the Company in respect
of services provided by employees up to the
reporting date.

(J) Financial instruments

Financial assets and financial liabilities are
recognised when an entity becomes a party to
the contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through Statement of Profit and Loss (FVTPL))
are added to or deducted from the fair value
of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through
profit and loss are recognised immediately in
Statement of Profit and Loss.

(K) Financial assets

Recognition and initial measurement

The Company initially recognises loans and
advances, deposits and debt securities purchased
on the date on which they originate. Purchases and
sale of financial assets are recognised on the trade
date, which is the date on which the Company
becomes a party to the contractual provisions of
the instrument.

All financial assets are recognised initially at
fair value. In the case of financial assets not
recorded at FVTPL,

transaction costs that are directly attributable to its
acquisition of financial assets are included therein.

Classification of financial assets and
Subsequent Measurement

On initial recognition, a financial asset is classified
to be measured at -

• Amortised cost; or Fair Value through
Other Comprehensive Income (FVTOCI) -
debt investment; or

• Fair Value through Other Comprehensive
Income (FVTOCI) - equity investment; or

• Fair Value through Profit or Loss (FVTPL)

A financial asset is measured at amortised cost if
it meets both of the following conditions and
is not designated at FVTPL:

• The asset is held within a business model
whose objective is to hold assets to collect
contractual cash flows; and

• The contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.

A debt instrument is classified as FVTOCI only if it
meets both of the following conditions and is
not recognised at FVTPL:

• The asset is held within a business model
whose objective is achieved by both
collecting contractual cash flows and selling
financial assets; and

• The contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the Other Comprehensive
Income (OCI). However, the Company recognises
interest income, impairment losses & reversals
and foreign exchange gain or loss in the Statement
of Profit and Loss. On derecognition 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.

All equity investments in scope of IND AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognised by an acquirer in a
business combination to which IND AS 103
applies are classified as at FVTPL. For all other
equity instruments, the Company may make
an irrevocable election to present in other
comprehensive income 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 recognised in the OCI. There is no recycling of
the amounts from OCI to Statement of Profit and
Loss, even on sale of investment. However, on sale/
disposal the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognised in the Statement of Profit and
Loss. All other financial assets are classified as
measured at FVTPL.

In addition, on initial recognition, the Company
may irrevocably designate a financial asset that
otherwise meets the requirements to be measured
at amortised cost or at FVTOCI as at FVTPL if
doing so eliminates or significantly reduces and
accounting mismatch that would otherwise arise.
Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains and losses arising on remeasurement
recognised in statement of profit or loss. The net
gain or loss recognised in statement of profit or
loss incorporates any dividend or interest earned
on the financial asset and is included in the ''other
income'' line item. Dividend on financial assets at
FVTPL is recognised when:

• The Company''s right to receive the dividends
is established,

• It is probable that the economic benefits
associated with the dividends will
flow to the entity,

• The dividend does not represent a recovery
of part of cost of the investment and the
amount of dividend can be measured reliably.

Derecognition of financial assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.

Impairment

The Company applies the expected credit loss
model for recognising impairment loss on
financial assets measured at amortised cost, trade

receivables, other contractual rights to receive
cash or other financial asset. Expected credit
losses are the weighted average of credit losses
with the respective risks of default occurring as
the weights. Credit loss is the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects to
receive (i.e. all cash shortfalls), discounted at the
original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated
credit-impaired financial assets). The Company
estimates cash flows by considering all
contractual terms of the financial instrument
(for example, prepayment, extension, call and
similar options) through the expected life of that
financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a
financial instrument has not increased significantly
since initial recognition, the Company measures
the loss allowance for that financial instrument
at an amount equal to 12-month expected credit
losses. 12-month expected credit losses are
portion of the life-time expected credit losses
and represent the lifetime cash shortfalls that will
result if default occurs within the 12 months after
the reporting date and thus, are not cash shortfalls
that are predicted over the next 12 months.

If the Company measured loss allowance for a
financial instrument at lifetime expected credit
loss model in the previous year, but determines
a the end of a reporting year that the credit
risk has not increased significantly since initial
recognition due to improvement in credit quality as
compared to the previous year, the Company again
measures the loss allowance based on 12-month
expected credit losses.

When making the assessment of whether there
has been a significant increase in credit risk since
initial recognition, the Company uses the change in
the risk of a default occurring over the expected life
of the financial instrument instead of the change
in the amount of expected credit losses. To make
that assessment, the Company compares the risk
of a default occurring on the financial instrument
as at the reporting date with the risk of a default

occurring on the financial instrument as at the date
of initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition.

For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of
Ind AS 11 and Ind AS 18, the Company always
measures the loss allowance at an amount equal
to lifetime expected credit losses.

Further, for the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109.
This expected credit loss allowance is computed
based on a provision matrix which takes into
account historical credit loss experience and
adjusted for forward-looking information.

(L) Effective interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition. Income is
recognised on an effective interest basis for debt
instruments other than those

financial assets classified as at FVTPL and Interest
income is recognised in profit or loss.

(M) Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by a company
are classified as either financial liabilities or as
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of directly attributable
transaction costs.

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or ''FVTPL. A Financial Liability is
classified as at FVTPL if it is classified as held-for-
trading or it is a derivative (that does not meet
hedge accounting requirements) or it is designated
as such on initial recognition.

A financial liability is classified as held for
trading if:

• It has been incurred principally for the purpose
of repurchasing it in the near term; or

• On initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or

• It is a derivative that is not designated and
effective as a hedging instrument.

A financial liability other than a financial liability
held for trading may be designated as at
FVTPL upon initial recognition if:

• Such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise;

• The financial liability forms part of a group of
financial assets or financial liabilities or both,
which is managed and its performance is
evaluated on a fair value basis, in accordance
with the Company''s documented risk
management or investment strategy, and
information about the grouping is provided
internally on that contract basis; or

• It forms part of a containing one or more
embedded derivatives, and IND AS 109
permits the entire combined contract to

be designated as at FVTPL in accordance
with IND AS 109.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognised in Statement of Profit and Loss.
The net gain or loss recognised in Statement of
Profit and Loss incorporates any interest paid on
the financial liability and is included in the ''other
gains and losses'' line item in the Statement of
Profit and Loss.

Other financial liabilities

Other financial liabilities (including borrowings
and trade and other payables) are subsequently
measured at amortised cost using the effective
interest method.

Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company''s obligations
are discharged, cancelled or have expired.
An exchange with a lender of debt instruments with
substantially different terms is accounted for as an
extinguishment of the original financial liability and
the recognition of a new financial liability.

Similarly, a substantial modification of the terms
of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor)
is accounted for as an extinguishment of the
original financial liability and the recognition of
a new financial liability. The difference between
the carrying amount of the financial liability
derecognised and the consideration paid and
payable is recognised in profit or loss.

(N) Cash and cash equivalents

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 insignificant
risk of changes in value.

(O) Share capital

Ordinary shares are classified as equity.
Incremental costs directly attributable to the
issuance of new ordinary shares and share options
and buyback of ordinary shares are recognized as a
deduction from equity, net of any tax effects.

(P) Segments reporting

The Company is engaged in the business of
manufacturing Bulk Industrial containers which
includes IBC containers, Plastic Barrels and MS
barrels,. There are no separate reportable segment
in terms of IND AS-108.

(Q) Leases:

As a Lessee:

The Company''s lease asset classes primarily
consist of leases for land, buildings and vehicles.
The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right
to control the use of an identified asset for a period
of time in exchange for consideration.

To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:

(i) the contract involves the use of an
identified asset;

(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease; and

(iii) the Company has the right to direct the
use of the asset.

At the date of commencement of the lease,
the Company recognizes a right-of-use asset
("ROU") and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value leases.
For these short-term and low value leases, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over the
term of the lease.

The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of
the lease plus any initial direct costs less any
lease incentives. They are subsequently measured
at cost less accumulated depreciation and
impairment losses. Certain lease arrangements
includes the options to extend or terminate

the lease before the end of the lease term.
ROU assets and lease liabilities includes these
options when it is reasonably certain that they will
be exercised. Right-of-use assets are depreciated
from the commencement date on a straight-line
basis over the shorter of the lease term and useful
life of the underlying asset. Right of use assets
are evaluated for recoverability whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not
generate cash flows that are largely independent
of those from other assets. In such cases, the
recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted
using the interest rate implicit in the lease or, if
not readily determinable, using the incremental
borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of
use asset if the Company changes its assessment
if whether it will exercise an extension or a
termination option. Lease liability and ROU asset
have been separately presented in the Balance
Sheet and lease payments have been classified as
financing cash flows.

As a Lessor:

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line
with expected general inflation to compensate
for the expected inflationary cost increases.
The respective leased assets are included in the
balance sheet based on their nature.

(R) Earnings per share

Basic earnings per share

Basic earnings per share is computed by dividing
the net profit after tax by weighted average
number of equity shares outstanding during the
period. The weighted average number of equity
shares outstanding during the year is adjusted for
treasury shares, bonus issue, bonus element in a
rights issue to existing shareholders.

Diluted earnings per share

Diluted earnings per share is computed by dividing
the profit after tax after considering the effect of
interest and other financing costs or income (net
of attributable taxes) associated with dilutive
potential equity shares by the weighted average
number of equity shares considered for deriving
basic earnings per share and also the weighted
average number of equity shares that could have
been issued upon conversion of all dilutive potential
equity shares including the treasury shares held by
the Company to satisfy the exercise of the share
options by the employees.

The Vehicle loans are secured against specific asset against which the same are obtained.

The Term Loans rom HDFC Bank have been taken for the purpose of Solar Project at Gujarat and for capital expenditure at
Maharashtra. The loans have been borrowed at an interest rate of 8.50% linked to 3 months repo rate. The terms loans are
repayable in 96 months including 12 months of moratorium. The Term Loans are secured by exclusive charge on solar panels,
factory land and building at Wada, personal guarantee of directors and corporate guarantee of Anmol Monower Plastic Private
Limited, Yash Synthetics Private Limted and Credence Financial Consultancy LLP

The Working Capital Facilities with Axis Bank Limited are secured by hypothecation of all current assets both present and
future. And this working capital facility is secured by equitable mortgage of 2 Industrial Properties at silvassa, 3 Industrial
Properties at Bharuch, commercial property at Malad(E), a residential property at Malad(E) and personal guarantee of the
directors and relatives and Corporate guarantee of Credence Financial Consultancy LLP, Yash Synthetics Private Limited and
Anmol Monower Plastic Private Limited.

The Working Capital Facilities with HDFC Bank Limited are also secured by hypothecation of all current assets both present and
future. And equitable mortgage of Factory Land and Building at Wada, Personal Guarantee of Directors, Relatives and Corporate
Guarantee of Credence Financial Consultancy LLP Yash Synthetics Private Limited and Anmol Monower Plastic Pvt. Ltd.

The Working Capital Facilities with Federal Bank Limited are also secured by Pari Passu Equitable Mortgage of two Flats at
Goregaon (E), Office Premise at Malad and 1 Flat at Malad (E), Personal Guarantee of Directors, Relatives and Corporate
Guarantee of Credence Financial Consultancy LLP Yash Synthetics Private Limited and Anmol Monower Plastic Pvt. Ltd..

ii) Defined Benefits Plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees
at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s
salary and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit Credit
method) at the end of each year. The fair

value of the plan assets of the trust administered by the Company, is deducted from the gross obligation.

The following table sets forth the status of the gratuity plan of the Company, and the amounts recognized in the
Balance sheet and
Statement of profit and loss.

Notes :

Salary escalation rate: The estimates 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.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities for the estimated
term of the obligations.

Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life
Insurance Corporation of India.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable
to the period over which the obligation is to be settled. There has been significant change in expected rate of return on
assets due to change in the market scenario.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligations by the amounts shown below;

45 Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves.The
primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its
capital structure and makes adjustments in the light of changes in economic environment and the requirements of the
financial covenants

46 Transactions with Strike Off Companies:

The Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 during the financial year.

47 (a) No proceeding has been initiated or pending against the Company for holding any Benami property under the

Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

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

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

d There were no transactions relating to previously unrecorded income that have been surrendered and disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.

e The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

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

f 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

(i) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

48 Financial Instruments - Accounting Classifications and Fair Value Measurements

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced of liquidation sale.

The following methods and assumptions were used to estimate the fair values:

Fair value of cash and cash equivalent, bank balances other than cash and cash equivalent, trade receivables, trade
payables, other current financial liabilities approximate their carrying amounts largely due to the short-term maturities
of these instruments. The fair value of the financial assets and financial liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

49 Financial risk management objectives and policies

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework who is also responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyse 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 periodically to reflect changes in market conditions and the Company''s activities. The Company, through
its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The board of directors oversees how management monitors compliance with the company''s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

Credit risk

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

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoin basis throughout each reporting period. To assess whether there is a
significant increase in credit risk that company caompares the risk of a default occurring on the asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-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,

ii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to

meet its obligations,

iv) Significant increases in credit risk on other financial instruments of the same counterparty,"

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor/borrower failing to
engage in a repayment plan with the Company. Where receivables/loans have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognised in statement of profit and loss.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any
substantial change, the Company expects the historical trend of minimal credit losses to continue.

Cash and bank balance

The Company held cash and bank balance with credit worthy banks and financial institutions of '' 62.17 lacs, '' 42.72 /-
lacs as at March 31,2025, March 31,2024, respectively. The credit worthiness of such banks and financial institutions is
evaluated by the management on an ongoing basis and is considered to be good.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The board
of directors are responsible for liquidity, funding as well as settlement management. In addition, processes and policies
related to such risks are overseen by the board of directors. Management monitors the Company''s net liquidity position
through rolling forecast on the basis of expected cash flows.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruemtns.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign
currency receivables and payables.

The Company market risk is managed by the board of directors which evaluates and excercises independent control
over the entire process of market risk management. It also recommends risk management objectives and policies ans
also management of cash resources, implementing hedging strategies for foreign currency exposures and ensuring
compliance with market risk limits and policies.

a) Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk mainly in US dollar currency.

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in
the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations
in the interest rates.

50 Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.

Useful lives of property, plant and equipment

The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of
obsolescence, demand, competition, internal assessment of user experience and other economic factors (such as the
stability of the industry, and known technological advances) and the level of maintenance expenditure required to obtain
the expected future cash flows from the asset. The Company reviews the useful life of property, plant and equipment at
the end of each reporting date.

Notes

a) Increase in debt service ratio due to increase in long term debt for capital expenditure

b) Reduction in return on equity due to reduction in net profit

c) Improvement in ratio due to faster movement of stock.

d) Decline in net profit ratio due to reduction in net profit

e) Reduction in ratio of Return on Capital Employed due to increase in long term debt

d) Reduction in ratio of Return on Investment due to increase in long term debt for capital expenditure

f) Increase in net capital turnover ratio due to increase in turnover

51 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses and the accompanying disclosures. Uncertainty about the assumptions and estimates could result in
outcomes that require a material adjustment to the carrying value of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that
have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

i) Judgements

I n the process of applying the accounting policies, management has made the following judgements, which have
significant effect on the amounts recognised in the Company''s financial statements:

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Ind AS 37,
''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events has
required best judgment by management regarding the probability of exposure to potential loss.

Assessment of lease contracts

Classification of leases under finance lease or operating lease requires judgment with regard to the estimated economic
life and estimated cost of the asset. The Company has analyzed each lease contract on a case to case basis to classify
the arrangement as operating or finance lease, based on an evaluation of the terms and conditions of the arrangements.

ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

For Banka and Banka for and on behalf of the board of directors of

Chartered Accountants Pyramid Technoplast Limited

ICAI Firm Regn. No.: 100979W

Pradeep P. Banka Jai Prakash Agarwal Bijay Kumar Agarwal

Partner Wholetime Director and CFO Chairman and Managing Director

Membership No.: 038800 DIN: 01490093 DIN : 01490141

Puja Sharma

Company Secretary and Compliance Officer

Place: Mumbai Place: Mumbai

Date: May 26, 2025 Date: May 26, 2025

---

Mar 31, 2024

(H) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions for restructuring are recognised by the Company when it has developed a detailed formal plan for restructuring and has raised a valid expectation in those affected that the Company will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it.

Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it''s carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The measurement of provision for restructuring includes only direct expenditures arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company.

(I) Employee benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards un availed leave, compensated absences, post-retirement medical benefits and other terminal benefits.

Short-term employee benefits

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees

render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet as restated.

Post-employment benefits Defined contribution plan

Employee Benefit under defined contribution plans comprises of Contributory provident fund etc. is recognized based on the undiscounted amount of obligations of the Company to contribute to the plan. The same is paid to a fund administered through a separate trust.

Defined benefit plan

Defined benefit plans comprising of gratuity is recognized based on the present value of defined benefit obligations which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss as restated.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet as restated.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Short term employee benefits

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other longterm employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

(J) Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual

provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognised immediately in Statement of Profit and Loss as restated.

(K) Financial assets

Recognition and initial measurement

The Company initially recognises loans and advances, deposits and debt securities purchased on the date on which they originate. Purchases and sale of financial assets are recognised on the trade date, which is the date on which the Company becomes a party to the contractual provisions of the instrument.

All financial assets are recognised initially at fair value. In the case of financial assets not recorded at FVTPL, transaction costs that are directly attributable to its acquisition of financial assets are included therein.

Classification of financial assets and Subsequent Measurement

On initial recognition, a financial asset is classified to be measured at -

• Amortised cost; or Fair Value through Other Comprehensive Income (FVTOCI) -debt investment; or

• Fair Value through Other Comprehensive Income (FVTOCI) - equity investment; or

• Fair Value through Profit or Loss (FVTPL)

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated at FVTPL:

• The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument is classified as FVTOCI only if it meets both of the following conditions and is not recognised at FVTPL:

• The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss as restated. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to Statement of Profit and Loss as restated. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

All equity investments in scope of IND AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which IND AS 103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income 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 recognised in the OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss as restated, even on sale of investment. However, on sale/disposal the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss as restated. All other financial assets are classified as measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces and accounting mismatch

that would otherwise arise. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains and losses arising on remeasurement recognised in statement of profit or loss as restated. The net gain or loss recognised in statement of profit or loss as restated incorporates any dividend or interest earned on the financial asset and is included in the ''other income'' line item. Dividend on financial assets at FVTPL is recognised when:

• The Company''s right to receive the dividends is established,

• It is probable that the economic benefits associated with the dividends will flow to the entity,

• The dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

Impairment

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables, other contractual rights to receive cash or other financial asset. Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit

losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous year, but determines a the end of a reporting year that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous year, the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

(L) Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL and Interest income is recognised in profit or loss.

(M) Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of directly attributable transaction costs.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or ''FVTPL''. A Financial Liability is classified as at FVTPL if it is classified as held-for-trading or it is a derivative (that does not meet hedge accounting requirements) or it is designated as such on initial recognition.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of repurchasing it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

• It is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:

• Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

• The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company''s documented risk management or investment strategy, and information about

the grouping is provided internally on that contract basis; or

• It forms part of a containing one or more embedded derivatives, and IND AS 109 permits the entire combined contract to be designated as at FVTPL in accordance with IND AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in Statement of Profit and Loss as restated. The net gain or loss recognised in Statement of Profit and Loss as restated incorporates any interest paid on the financial liability and is included in the ''other gains and losses'' line item in the Statement of Profit and Loss as restated.

Other financial liabilities

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

(N) Cash and cash equivalents

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

(O) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares and share options and buyback of ordinary shares are recognized as a deduction from equity, net of any tax effects.

(P) Segments reporting

The Company is engaged in the business of manufacturing Bulk Industrial containers which includes IBC containers, Plastic Barrels and MS barrels,. There are no separate reportable segment in terms of IND AS-108.

(Q) Leases:

As a Lessee:

The Company''s lease asset classes primarily consist of leases for land, buildings and vehicles. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset;

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability

whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

As a Lessor:

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

(R) Earnings per share

Basic earnings per share

Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit after tax after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees.

ii) Defined Benefits Plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment.

The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The fair value of the plan assets of the trust administered by the Company, is deducted from the gross obligation.

The following table sets forth the status of the gratuity plan of the Company, and the amounts recognized in the Balance sheet and Statement of profit and loss.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations.

Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life Insurance Corporation of India.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations by the amounts shown below;

The Company has exposure to the following risks arising from financial instruments

- Credit risk;

- Liquidity risk; and

- Market risk

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework who is also responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyse 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 periodically to reflect changes in market conditions and the Company''s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The board of directors oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

Credit risk

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

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoin basis throughout each reporting period. To assess whether there is a significant increase in credit risk that company caompares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-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,

ii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations, iv) Significant increases in credit risk on other financial instruments of the same counterparty,

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor/borrower failing to engage in a repayment plan with the Company. Where receivables/loans have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in statement of profit and loss.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

Cash and bank balance

The Company held cash and bank balance with credit worthy banks and financial institutions of H 42.72 lacs, H. 23.88 /- lacs as at March 31, 2024, March 31, 2023, respectively. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The board of directors are responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the board of directors. Management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruemtns. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables.

The Company market risk is managed by the board of directors which evaluates and excercises independent control over the entire process of market risk management. It also recommends risk management objectives and policies ans also management of cash resources, implementing hedging strategies for foreign currency exposures and ensuring compliance with market risk limits and policies.

b) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/ borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

Note 50 Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Useful lives of property, plant and equipment

The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence, demand, competition, internal assessment of user experience and other economic factors (such as the stability of the industry, and known technological advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the asset. The Company reviews the useful life of property, plant and equipment at the end of each reporting date.

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the accompanying disclosures. Uncertainty about the assumptions and estimates could result in outcomes that require a material adjustment to the carrying value of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

i) Judgements

In the process of applying the accounting policies, management has made the following judgements, which have significant effect on the amounts recognised in the Company''s financial statements:

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss.

Assessment of lease contracts

Classification of leases under finance lease or operating lease requires judgment with regard to the estimated economic life and estimated cost of the asset. The Company has analyzed each lease contract on a case to case basis to classify the arrangement as operating or finance lease, based on an evaluation of the terms and conditions of the arrangements.

ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

For Banka and Banka For and on behalf of the Board of Directors of

Chartered Accountants Pyramid Technoplast Limited

ICAI Firm Regn. No.: 100979W

sd/- sd/- sd/--

Pradeep P. Banka Jai Prakash Agarwal Bijay Kumar Agarwal

Partner Wholetime Director and CFO Chairman and Managing Director

Membership No.: 038800 DIN : 01490093 DIN : 01490141

sd/-

Zoya Shaikh

Company Secretary and Compliance Officer

Place: Mumbai Place: Mumbai

Dated: May 22, 2024 Dated: May 22, 2024