(ix) Provisions and contingencies:

Provisions: A provision is recognized when the Company has a present obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made. The amount recognised as a provision is 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, its
carrying amount is the present value of those cash flows (when the effect of time value of money
is material).

Contingent liabilities: There is no identified contingent liabilities as on balance sheet date.

(x) Cash and cash equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term
balances (with an original maturity of three months or less from the date of acquisition) and
highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in
banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on
demand, book overdraft and are considered part of the Company’s cash management system.

(xi) Cash Flow Statement

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

(xii) Employee Benefits: Short Term Employee Benefits Employee benefits payable wholly within
twelve months of rendering the services are classified as short-term employee benefits and
recognized in the period in which the employee renders the related service. These are re-cognized
at the undiscounted amount of the benefits expected to be paid in exchange for that service.

(xiv) In the opinion of the board of Directors, Current Assets, Loans and Advances a value of
realization equivalent to the amount at which they are stated in the Balance Sheet. Adequate
provisions have been made in the accounts for all the known liabilities

(xv) Fair Value:

The Company measures certain financial instruments at fair value at each balance sheet date. The
fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their best
economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as under, based on the lowest level
input that is significant to the fair value measurement as a whole:

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

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

C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

This note summarizes the accounting policy for fair value. Other fair value related disclosures are
given in the relevant notes.

Details of foreign exchange mentioned above are certified and provided by the Management of the company.

(xvii) As certified by the company that it was received written representation from all the directors, that companies
in which they are directors had not defaulted in terms of section 164(2) of the companies Act, 2013, and the
representation from directors taken in Board that Director is disqualified from being appointed as Director of the
company.

(xviii) Earnings per share (EPS):

Basic earnings per share are computed using the weighted average number of equity shares
outstanding during the period. Diluted EPS is computed by dividing the profit or loss attributable
to ordinary equity holders by the weighted average number of equity shares considered for
deriving basic EPS and also weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are
deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

(xix) Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equities shares outstanding during the year.

(b) Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded
off to the nearest lacs as per the requirement of Schedule III, unless otherwise
stated.

(xx) Other Note:

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, for the financial year commencing April 1, 2023, every
company which uses accounting software for maintaining its books of account, shall use only
such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date
when such changes were made and ensuring that the audit trail cannot be disabled. The
interpretation and guidance on what level edit log and audit trail needs to be maintained evolved
during the year and continues to evolve.

In the company, the accounting software has a feature of audit trail, but it was disable at an
application level for maintenance of books of accounts and relevant transactions. However, the
global standard ERP used by the Company has not been enabled with the feature of audit trail log
at the database layer to log direct transactional changes, due to present design of ERP. This is

being taken up with the vendor. In the meanwhile, the Company continues to ensure that direct
write access to the database is granted only via an approved change management process.

(xxi) Related Party Disclosure:

List of related parties where control exists and also related parties with whom transactions have
taken place and relationships, has been disclosed in Annexure - 1 to the Notes to Accounts.

For and on behalf of the board of directors As per our attached report of even date

For, Padmanabh Industries Limited For, V S S B & Associates

Chartered Accountants
Firm No. 121356W

Chiragkumar Parmar Shvetalben Dataniya (Vishves A. Shah)

Managing Director/CFO Director (Partner)

(DIN: 09432185) (DIN: 09629900) M No:-109944

UDIN: 24109944BKACSD5356

Pankaj Kewalramani

Company Secretary

Place : Ahmedabad ^{Place : Ahmedabad}

_{Date : 30/05/2024} ^{Date : 30/05/2024}