14.2 Rights, Preference and restrictions attached to Shares :

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

Nature and purpose of Reserves General Reserve

The general reserve is created from time to time transfer of profits from retained earnings. General reserve is created by transfer from component of equity to another and is not an item of other comprehnsive income, items included in general reserve will not be reclassified subsequently to statement of profit and loss.

Security Premium

Security Premium is created on receipts of premium on issue of equity shares .The reserve can be utilised in accordance with the provisions of the Companies Act,2013.

Retained Earnings

The same is created out of profit over the years and shall be utilised as per the provision of the ACT, 2013.

Nature of Security and terms of repayment for borrowings :

Loan from LIC Housing Limited of Rs. 1294.00 Lakhs (Rupees Twelve Crore and Ninety Four Lakhs Only) under Emergency Credit Line Guarantee Scheme 2.0

The Emergency Credit Line Guarantee Scheme 2.0 having outstanding of Rs. 733.78 Lakhs (Prev. year 1060.59 Lakhs) is secured by Second Charge of Project land and structure thereon in the project One Rajarhat situated at premises no. 30-1111 in street no. 11n(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P, Assignment/ Hypothecation of receivables from the project “One Rajarhat”.

Term loan repayable in fixed 5 years (First year principal moratorium and rest four year principal & interest repayment), 48 monthly instalment of Rs. 35.28 Lakhs (including interest ) and Rate of Interest is 13% p.a. (Prev. year 13%)

Working Capital Loans from Consortium Banks Rs. NIL , all Working Capital Loans repaid during the year and charge satisfied (Pre.Year Rs. 1210.78 Lakhs) Previous year are secured by :

1. First charge on pari passu basis by way of hypothecation and/or pledge of the Company's Current Assets, Consumable Stores & Spares, Bills Receivable, Book Debts and tangible movable properties related to non dairy business of Company.

2. Collateral Security by way of first charge on pari passu basis by way of Mortgage of Company's Plots situated at Kolkata Leather Complex, Mauza-Gangapur, KITP, Dist: 24 Paraganas, (WB).

3. Collateral Security by first charge on pari passu basis by way of equitable mortgage of Residential Diverted Land of Survey No. 263/4, 264/4 & Survey No. 291 part & Survey No. 291 part in Village Nipaniya, tehsil & Dist. Indore (MP) held by Brightstar Housing Pvt. Ltd.

4. Collateral Security by first charge on pari passu basis by way of equitable mortgage of all that pieces and parcels of Land bearing Survey No. 361/5 and 361/4 and all that pieces and parcels of Land bearing Survey No. 361/2, 361/6, 361/7 & 361/8 of Village Khajrana, Tehsil & District, Indore (MP) held by Nischal Housing Pvt. Ltd.

5. Personal Guarantee of one directors of the Company.

NOTE-40

“During the year under review the provision of section 135 and Schedule VII of the Companies Act, 2013 are applicable on the Company. Accordingly CSR committee and CSR policy has been formulated as per the requirement and provision of the Companies Act 2013. The Company have spent Rs. 12.50 lakhs (Rupees Twelve Lacs Fifty Thousands only), against the total CSR obligation of Rs. 12.39 lakhs (Rupees Twelve Lacs Thirty Nine Thousands Two Hundred Twenty Eight and Thirty paisa only/-) for the FY 2023-24 (which was in excess of the required expenditure on CSR activities)” and for the FY 2022-23 ( Prev Year ) the company has incurred average net Losses calculated in pursuant to section 135 of the companies Act, 2013 read with section 198 and rules made there under and hence the requirement of compulsory CSR expenditure on CSR activities as per section 135 of the Companies Act, 2013 is not applicable.

N OTE-41 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not using any mitigating factor to cover the interest rate risk.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rates for borrowing at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 1% higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below:

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract to mitigate the risk of changes in exchange rate on foreign currency exposure.

Sensitivity to foreign currency risk

The following table demonstrates the sensitivity in the USD currencies if the currency rate is increased/(decreased) by 1% with all other variables held constant. The below impact on the Company’s profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date:

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.

Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Cash & Cash Equivalent

The Company holds cash & cash equivalent with credit worthy banks of Rs. 85.80 lakhs as at March 31,2024 (Rs. 200.49 lakhs as at march 31,2023 ) . The credit worthness of such banks is evaluated by the management on ongoing basis & is considered to be good.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.

The Company has obtained fund and non-fund based working capital lines from various banks. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company's net liquidity position through rolling forecasts on the basis of expected cash flows.

Expected contractual maturity for derivative and non derivative Financial Liabilities:

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2024 and 31st March, 2023.

Note- 42 - Financial Instruments by Category and fair value heirarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.

The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counter parties.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

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

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

NOTE-44 ( A ) Trade receivable ( Note No.9 ) includes Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) considered doubtful of recovery for which provision is made to the extent of Rs. Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) , in addition to the expected credit loss allowance made as per accounting policy . Company has also filed legal case agaist the party for recovary of claims .Company had filed 2 civil suits before the Hon'ble District court, Indore M.P.for recovary agaist M/s Clemfield Industries ltd. & M/s Middle East Industries FZE both located out of India towards non-receipt of consideration of exports made to these parties .

( B ) Further Advance to suppliers ( Note No. 12 ) includes Rs. 1525 lakhs (Prev.Year 1525 lakhs ) considered doubtful of recovery for which aggrergate provision Rs. 1525 lakhs (Prev.Year 1525 lakhs ) is made .

1. Current ratio increase during the year due to decrease in current Liabilities .

2. Debt Equity ratio increased due to Partial amount of LIC Term loans and PNB short term Loan paid during the year.

3. Debt Service Coverage ratio Decreased due to Partial amount of LIC Term loans and PNB short term Loan paid .

4. Return on Equity ratio decreased due to decrease in Profit from operations.

5. Inventory turnover ratio increased due to average inventory decrease in compared to previous year.

6. Net profit ratio decreased due to decrease in Revenue from operations on account of exceptional expenses and reversal of deferred tax.

7. Trade payables turnover ratio increased due to decrease in trade Payables.

8. Net capital turnover ratio decrease due to decrease in Revenue from operation.

NOTE-45 A

Anik Industries Ltd. (Anik) has settled all its disputes with IDBI Bank arising out of impugned limited period corporate guarantee (valid upto start of commercial production at the plant at Ara, Bihar of Suman Agritech Ltd. (SAL) issued earlier for loan facility to SAL by IDBI Bank. Commercial production started in the said plant of SAL in March 2012 and Anik completely discharged from its liability under corporate guarantee.

However, subsequently on the default made by SAL, IDBI Bank initiated various legal cases against SAL as well as Anik disputing discharge of Anik Industries Ltd. from Corporate Guarantee. Anik duly contested all the cases and thereafter at the proposal of IDBI Bank, Anik with the object of concentrating on constructive business, agreed for settlement @Rs. 6.50 crores to conclude all pending litigations with IDBI Bank in this respect and also got release of company’s substantial funds lying under lien with IDBI Bank since long.

NOTE-46 Additional Regulatory Information

i. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

v. The company has complied with investment in subsidiary for two layers of investment prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 .

vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall.

(i) 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

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

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

(i) 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

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

vii. 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).

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

ix. The Company has borrowings in excess of Rs. 5 crores from banks or financial institutions on the basis of security of current assets. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

x. As informed and explained to us , the management has not revalued its property , plant and equipment (including right of use assets ) or intangible assets or both during the year .

xi. Following Charges or satisfaction are pending to be registered with ROC beyond the statutory period :