(d) The Company has only one class of equity shares. The holders of equity shares are entitled to receive dividend as declared from time to time and are entitled to one vote

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) 51,62,540 equity shares of par value ^ 1/- each are held by Ganesh Explosives Private Limited, the Holding Company.

The shareholding of Ganesh Explosives Private Limited i.e 53.96% is fraudly pledged on account of Karvy scam, as the shares were demat with karvy stock broking.

(h) The Company has not issued any equity shares without payment being received in cash in 5 years immediately preceding the balance sheet date.

(i) The Company has neither issued any bonus shares nor has bought back equity shares in 5 years immediately preceding the balance sheet date.

11.1 11.1.1 Unsecured Loan from Ganesh Explosives Private Limited will be repayable after five years from commencement of business

in ten equal yearly instalments which will be applicable from FY 2023-24 and simple interest @8% p.a will be charged and repaid at the end of each financial year. The Company has not repaid the unsecured loan in equal yearly instalments. However, owing to lack of financial resources the Company has repaid the unsecured loan in varying amounts during the year.

11.1.2 Unsecured loans from Rajesh Jain are interest free and will be repayable after five years from commencement of business i.e. from FY 2023-24 in ten equal yearly instalments. The Company has not repaid the unsecured loan in equal yearly instalments. However, owing to lack of financial resources the Company has repaid the unsecured loan in varying amounts during the year.

11.1.3 During the year, the Company availed a non-fund-based credit facility in the form of a Bank Guarantee from IndusInd Bank Ltd. amounting to ?10 crores. Out of the sanctioned limit, ?4 crores has been utilised in favour of Mahadhan Agritech Ltd., backed by a security deposit of ?2 crores held in the name of Mr. Rajesh Jain, Director. A charge on the said security was created vide Charge ID No. 101017106, dated 10/12/2024.

(iii) The preference shares are non convertible in nature.

(iv) These preference shares carry dividend @ 0.001% per annum as declared from time to time. In the event of no declaration of dividend, coupon rate of 0.001% is not cumulated and gets lapsed.

(v) The preference shareholder(s) shall have no voting rights, except as provided under the Companies Act, 2013 and rules made

(vi) Each holder of preference shares is entitled to one vote per share only on resolution placed before the Company which directly affect the rights attached to preference shares.

(vii) The Company has neither issued any bonus shares nor has bought back preference shares in 5 years

(viii) The preference shares shall be redeemed at par, at the option of the Company at any time within a period not exceeding 20 years from the date of allotment i.e. 28th March, 2016 in accordance with the provisions of the Companies Act, 2013 or any such other applicable law, rules, regulations as may be applicable.

(a) In pursuance to Section 115BAA of the Income Tax Act, 1961 notified by the Government of India, the Company had an irrevocable option of shifting to a lower tax rate (22% plus applicable surcharge and cess) foregoing other tax incentives and non applicability of Minimum Alternate Tax. The rate applicable to the Company is 25% plus applicable surcharge and cess. The Company exercised the said option from FY 2022-23 after closure of financial statements for lower rates of taxes and the taxes have been recognised accordingly. The Company had recognized the Current Tax Expense on the audited financial statements as per the earlier applicable tax rate of MAT at the rate of 15% plus applicable surcharge and cess. However, while assessing the return of income the company has opted for the lower tax rate under section 115BAA. Thus, MAT Credit Entitlement have been written off from the books of account accordingly.

(b) Dy. Commisisioner of Sales Tax Baidhan Distt. Sidhi M.P. has issued recovery notice dated 2nd March, 2006 for INR 454.29 lakhs Recovery Act, 1980. The Company has recognized the reduced liability of INR 308.38 lakhs pursuant to sanction of the Rehabilitation Scheme by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) . However, the differential amount of INR 145.91 lakhs is yet to be waived off by the department as per Rehabilitation Scheme.The provision for the 5th installment of Rs. 61,67,648 is made on 31st March, 2023.

The amounts shown in 1 above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants, as the case may be and, therefore, cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the ground that there are fair chances of successful outcome of the

2. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”)

There are no Micro and small enterprises, to whom the Company owes dues. The information required to be disclosed under section 22 of the Micro, Small and Medium Enterprises Act 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. The Company has not received any claim for interest from any supplier under the said Act.

Note No. : 24 Other disclosures (continued)

(iii)Details of pending litigations:

(a) EPFO Dwarka, New Delhi vide its notice dated 09.12.2015 initiated enquiry u/s 14B of EPF and MP Act, 1952 levying Rs. 5.59 Lakhs against damages.. IGIL vide its letter dated 11.01.2016 has requested EPFO Dwarka, New Delhi to waive damages of Rs. 5.59 Lakhs. Final order from EPFO Dwarka, New Delhi is awaited as on date. As the company have got the waiver of Rs. 54.48 lacs by CBT similarly the company has taken up the matter with CBT for the waiver of 5.59 lacs.

(b) Sales Tax Department, Jhansi has issued various recovery certificates in year 2004 amounting to Rs. 201.00 Lakhs towards Sales Tax dues excluding interest for not submitting the C, 3B & F forms related to A.Y. 1988-89 to 2000-01. As a result of same, IGIL Jhansi Explosive unit is under attachment of Sales Tax Department. In the meantime, IGIL has collected several forms C, 3B and F, mainly form Coal India Limited and its subsidiaries. IGIL is to take up the matter with Jhansi Sales Tax Dept. for adjusting the outstanding liability of IGIL against the collected “C” & “F” forms and simultaneously to re- assess the actual liability based on the actual assessment. The company has deposited Rs. 8.81 lacs during the FY 2022-23.

(c) The Commercial Tax officer, Waidhan, Singrauli vide letter No. VAAK/Recovery/20222/159 dt. 25.08.2022 has advised us to deposit Rs. 30731801/- regarding payment of demand ascertained against Indo Gulf Industries Ltd . As per the order of BIFR dt. 24.06.2010, the company was to make the payment of Rs. 308.38 lacs to Sales Tax Dept. MP after restart of the plant over a period of 5 years, however, the Indo Gulf did not take the possession of its Waidhan plant as it was already seized and auctioned by then Sales Tax authorities and the entire position has been explained to the Sales Tax authorities at Waidhan & Indore and the matter is under their consideration.

(d) Central Excise dept. District Sidhi, Waidhan, (M.P.) vide its notice dated 17.02.2003 raised demand ofRs. 5.12 Lakhs towards Excise duty, interest and penalty. IGIL is yet to retrieve further details of same from concerned department for taking necessary action. After the takeover of the company, we have not received any communication from Central Exise Waidhan.

(e) State Sales Tax Authorities of Orissa, Madhya Pradesh & Chhattisgarh have also issued various Recovery Certificates for non- submission of C, F & 3B forms in relation to various site mixing slurries (SMS) Explosive units located in these states. IGIL is yet to retrieve further details of same from concerned department for taking necessary action. Sales Tax Authority of Orissa & M .P. issued R C for non submission of C,F & 3B forms. After the takeover of the company, we have not received any communication from Central Exise Waidhan.

(f) Deputy Commissioner of Income Tax, New Delhi passed an order u/s 271(1) ( C ) ofthe I.T. Act 1961 on 29.04.2015 imposing penalty ofRs. 4.05 Lakhs for A.Y. 2012-13. IGIL filed an Appeal on 27.05.2015 with Commissioner of Income Tax (Appeals), New Delhi challenging the DCIT order dated 29.04.2015. Same is pending with Commissioner of Income Tax (Appeals), New Delhi as on date. The matter is pending with CIT, Appeals, New Delhi.

(g) Sachin Chemical filed suit No. 194 of 2003 in Tis Hazari Court, New Delhi for recovery ofRs. 1.69 lakhs towards non-payment of Chemical Supplies. Matter is pending in the was declared "SINE DIE" by virtue of SICA. The matter is pending in the court.

(h) Simalin Chemicals filed Civil Suit No 194/2003 before Civil Judge, Vadodra for recovery of 7.02. Lakhs. Present status of the civil suit no. 194/2003 is not known since year 2004.

⁽ⁱ⁾ Scale Away has filed suit No. 35 of 2002 pending in Delhi Tis Hazari Court, New Delhi for recovery of Rs.1.34 Lakh. Same is pending as on date. Further details and hearing date is still awaited.

^ UPSIDC had alloted a land of 706.05 acres on lease to Indo Gulf Industries Limited in December 1984 for setting up the facilities for manufacturing of Slurry Explosives out of which 50 acres was alloted for setting up the plant and remaining 656.05 acres for maintaining Safety Zones being an explosive plant as per Explosive Act.

The Uttar Pradesh State Industrial Development Authority (UPSIDA) has raised a demand of Rs 769 Lakhs on 31st March 2022 vide letter No RMJ/INDOGULF towards economic rent outstanding premium and interest their own for the closure period and also after our takeover period from 2017-2020.

Consistent efforts have been made by the new management after taking over the company with the UPSIDA and State Government for waiver of dues for the closure period. The company is also prepared to remit 25% of the total settled dues as mutually agreed upon by the company and UPSIDA. It's noted that an amount ofRs. 50 lacs, already paid via DD No. 840809 dated September 14, 2023 and the remaining will be paid by the end of Sept. 2024. The balance of 75% of the settled dues may be disbursed over the next two years from the settlement date in equal quarterly installments.

With the consistent efforts made by the new management, UPSIDA approved our proposal for land transfer vide their letter No. 70/UPSIDA/RMJ/Indogulfdated May 9, 2025, As per the letter total amount to be payable is Rs 1941.6 lacs. It's noted that an amount ofRs 485.40 lacs is paid ,and remaining will be paid in equal half-yearly instalments over a 3-year period.

5 The Hon'ble Appellate Authority for Industrial and Financial Reconstruction (AAIFR) at its hearing held on 14th June, 2016 has, inter-alia, discharged the Company from the purview of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), since the networth of the company turned positive. Accordingly, the Company ceases to be a Sick Company.

6 Segment information

The Board of Directors has been identified as the Company's chief operating decision-maker (CODM) as defined by Ind AS 108 - Operating Segments. The Company is in the The information about secondary segment has not been furnished as there is no export revenue of the Company.

7 Disclosure pursuant to Indian Accounting Standard-12 "Income Taxes”

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all taxable temporary differences. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

8 Disclosure pursuant to Indian Accounting Standard - 36 on "Impairment of Assets"

During the year no impairment loss has been recognized in respect of property, plant and equipment.

9 Disclosure pursuant to Indian Accounting Standard - 19 on "Employee Benefits"

During the year under review, no liability has accrued on account of long-term employee benefits payable by the Company. Hence, information as per the requirements of Indian Accounting Standard - 19 on "Employee Benefits" is not required to be disclosed.

10 Expenditure on Corporate Social Responsibilities (CSR) Activities

During the year, the CSR provisions are not applicable to the company, and it is not obligated to incur any CSR expenses as per Section 135 of the Companies Act, 2013. However, in accordance with Section 135 of the Companies Act, 2013, the company established a corporate social responsibility (CSR) committee in the previous year.

11 Disclosure under Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Company has neither given any loan nor has advanced any amount either during the current year ended 31st March, 2025 or during the previous year ended 31st March, 2024. Hence, the requirements under the said Schedule is not applicable to the Company and no information is required to be disclosed.

Notes to Financial Statements

Note No. : 24 Other disclosures (Continued)

B. Valuation technique, methods and assumptions used to determine the fair values:

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is guided by Ind AS 113 “Fair Value Measurement” (Ind AS - 113).

In terms of Ind AS 113, the Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

C. Fair Value Hierarchy

This section explains the judgements and estimates based in determining the fair values of the financial instruments that are

a) recognized and measured at fair value and

b) measured at amortized cost and for which fair value are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining the fair value, the Company has classified its financial assets and liabilities into three levels prescribed under Ind AS.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value financial instruments that are not traded in an active market is determined using valuation techniques by maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There have been no transfers between Level 1 and Level 2 either during the year ended 31st March 2024 or during the year ended 31st March 2023.

(iii) The carrying amount of cash and cash equivalents, bank balances other than cash and cash equivalents, and other current financial assets and financial liabilities are considered to be same as their fair value due to the short-term maturities of these instruments.

13 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise borrowings. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include cash and bank balances.

14 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and other equity attributable to the equity share-holders of the Company. The Company’s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2025 and 31st March 2024.

15 Transactions with struck off companies

During the year the company has not entered into any transactions with companies struck off u/s 248 of the Companies Act, 2013 or u/s 560 of the Companies Act, 1956

17 Previous year figures have been regrouped / reclassified wherever necessary.