The Company has only one class of equity shares having face value of ^ 10/- each. The holder of the equity share is entitled to dividend right and voting right in the same proportion as the capital paid-up on such equity share bears to the total paid-up equity share capital of the Company. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in the same proportion as the capital paid-up on the equity shares held by them bears to the total paid-up equity share capital of the Company.

The Company has not allotted any bonus shares during the period of five years immediately preceding March 31, 2024.

The Company has not allotted any shares pursuant to contract without payment being received in cash. There are no call unpaid on equity shares.

No shares have been reserved for issue on option.

No equity shares have been forfeited.

(I) Borrowings from UCO Bank is secured against equitable mortgage of land and building of the Company situated at E-260-261, Mewar Industrial Area, Madri, Udaipur: 313003 and at Vill: Modi, District: Udaipur and also by way of first charge on all current assets such as raw material, finished goods, work-in-progress, stores and spares, book debts, and packing materials etc. The loan is repayable in 36 equal monthly instalment P 3,54,611.00 each commencing from June 14, 2021 and the last instalment is repayable on June 14, 2024. Rate of interest as on March 31, 2024 is 9.25% per annum. It is also secured by way of corporate guarantee of SAT Industries Limited.

(II) Borrowings from UCO Bank is secured against equitable mortgage of land and building of the Company situated at E-260-261, Mewar Industrial Area, Madri, Udaipur: 313003 and Vill: Modi, District: Udaipur and also by way of first charge on all current assets such as raw material, finished goods, work-in-progress, stores and

also secured by way of corporate guarantee of SAT Industries Limited.

(IV) Borrowings from UCO Bank is secured against Hypothecation of Vehicle No. RJ27 UE 0279. The loan is repayable in 60 equal monthly instalment A 40,649.00 each commencing from June 06, 2022 and the last instalment is repayable on May 31, 2027. Rate of interest as on March 31, 2024 is 10.20% per annum.

(V) Borrowings from UCO Bank is secured against equitable mortgage of land and building of the Company situated at E-260-261, Mewar Industrial Area, Madri, Udaipur: 313003 and Vill: Modi, District: Udaipur and also by way of first charge on all current assets such as raw material, finished goods, work-in-progress, stores and spares, book debts, and packing materials etc. The loan is repayable in 48 equal monthly instalments A 3,12,500.00 each commencing from September 30, 2023 and the last instalment is repayable on September

30, 2028. Rate of interest as on March 31, 2024 is 10.00% per annum.It is also secured by way of corporate guarantee of SAT industries Limited.

(VI) Borrowings from HDFC bank is secured against Hypothecation of Vehicle No. RJ27 GE 0153. The loan is repayable in 60 equal monthly instalment of A 49,946.00 each commencing from November 15, 2022 and the last instalment is repayable on October 15, 2027. Rate of interest as onmarch 31, 2024 is 8.02% per annum.

(VII) Borrowings from HDFC Bank is secured against Hypothecation of Vehicle No. RJ27 UC 2292. The loan is repayable in 60 equal monthly instalment of A 27,050.00 each commencing from November 05, 2023 and the last instalment is repayable on October 05, 2028. Rate of interest as on March 31, 2024 is 09.10% per annum.

(VIII) There is no continuing default in the payment of principal and interest thereof inrespect of loans (I) to (VII) stated above.

(a) Borrowings from UCO Bank is secured against equitable mortgage of land and building of the Company situated at E-260-261, Mewar Industrial Area, Madri, Udaipur: 313003 and Vill: Modi, District: Udaipur and also by way of first charge on all current assets such as raw material, finished goods, work-in-progress, stores and spares, book debts, and packing materials etc. It is also secured by way of corporate guarantee of Sat Industries. Rate of interest as on March 31, 2024 is 10.00% per annum.

(b) Guaranteed by Mr. Asad Daud,Director and Mr. Hakim Sadiq Ali Tidiwala, Whole-Time Director of the Company. Rate of interest as on March 31, 2024 is 11.05% per annum.

(c) Guaranteed by Mr.Asad Daud, Director and Mr. Hakim Sadiq Ali Tidiwala, Whole-Time Director of the Company. Rate of interest as on March 31, 2024 is 9.95% per annum.

* There is no continuing default in the payment of interest.

NOTE 38: FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES1. Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets.

The Company determines the amount of capital required on the basis of annual business plan also taking into consideration any long term strategic investment and expansion plans. The funding needs are met through equity and cash generated from operations.

The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals, borrowings etc. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.

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 safeguard its ability to continue as going concern and to maintain and optimal capital structure so as 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.

3. Financial Risk Management

The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance. The Company does regularly monitor, analyze and manage the risks faced by the Company and to set and monitor appropriate risk limits and controls for mitigation of the risks.

A. Management of Market RisK:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes borrowings and investments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.

(i) Management of interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any exposure to interest rate risks since its borrowings and investments are all in fixed rate instruments.

(ii) Management of price risk:

The Company has no surplus for investment in debt mutual funds, deposits etc. The Company does make deposit with the banks to provide security/margin against guarantee given by the banks. Deposit is made in fixed rate instrument. In view of this it is not susceptible to market price risk, arising from changes in interest rates or market yields which may impact the return and value of the investments.

(iii) Management of currency risk:

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures etc. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

Exposure to currency risk (The Company has exposure only in USD/EURO converted to functional currency i.e. INR).

B. Management of Credit Risk:

Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and foreign exchange transactions and financial instruments.

Credit risk from trade receivables is managed through the Company’s policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed.

The Company’s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.

C. Management of Liquidity Risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash obligations without incurring unacceptable losses. The Company’s objective is to maintain at all times, optimum levels of liquidity to meet its obligations.

The Company closely monitors its liquidity position and has a cash management system. The Company maintains adequate sources of financing including debt and overdraft from domestic and international banks and financial markets at optimized cost.

The Company’s Current assets aggregate to A 6,812.84 Lakhs (2023 - A 6,505.31 Lakhs) including Cash and cash equivalents and Other bank balances of A 1,547.73 Lakhs (2023 - A 2,198.78 Lakhs) against an aggregate Current liability of A 3,155.89 Lakhs (2023 - A 2,268.16 Lakhs); non-current liabilities due between one year to three years amounting to A 713 Lakhs (2023 - 845.58) and non-current liability due after three years amounting to NIL (2023 - NIL) on the reporting date. Further, while the Company’s total equity stands at A 8,332.02 Lakhs (2023 - A 8,409.69 Lakhs), it has non-current borrowings of A 713.00 Lakhs (2023 - A 845.58). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

D. Fair value measurement Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using 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 party.

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

Limited, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation/termination in terms of the provisions of the Payment of Gratuity (Amendment) Act, 1997, or as per the Company’s scheme whichever is more beneficial to the employees.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an independent actuary.

Provident Fund:

The Company makes Provident Fund contribution to the Government administered Provident fund. The Company has no part to play in this respect.

c) Amounts Recognised as Expense

i) Defined Contribution Plan

Employer’s Contribution to Provident Fund including contribution to Family Pension Fund amounting to A 20.75 Lakhs (previous year A 14.31 Lakhs) has been included under Contribution to Provident and Other Funds.

ii) Defined Benefit Plan

Gratuity cost amounting to A 7.55 Lakhs (previous year A 11.16 Lakhs) has been included in Note 31 under Contribution to Provident and Other Funds.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

NOTE 42:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues (principal and/or interest), which are outstanding for more than 45 days as at the balance sheet date. During the year, there have been no payments made to Micro, Small and Medium Enterprises beyond 45 days. There were no amounts on account of interest due that were payable for the period where the principal has been paid but interest under the MSMED Act, 2006 not paid. Further, there were no amounts towards interest accrued that were remaining unpaid at the end of accounting year. Accordingly, there were no amounts due to further interest due and payable in the succeeding year.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

NOTE 43: SEGMENT INFORMATION

Segment information in accordance with Ind AS 108, ‘Operating Segments’, segment information has been given in the Consolidated Financial Statements of Sah Polymers Limited and therefore, no separate disclosure on segment information is given in the Standalone Financial Statements.

NOTE 44:

The Company has elected not apply the Indian Accounting Standard (Ind AS) 116 - Leases to account for those leases where underlying assets is of low value.

NOTE 45:

Balances of banks, sundry debtors and trade payables, current liabilities etc. as on March 31, 2024 are subject to confirmation and reconciliation.

NOTE 46:

In the opinion of the Management, there is no impairment of assets in accordance with the Ind AS 36 as on the Balance Sheet date.

NOTE 47:

There are no amounts due to be credited to Investor Education and Protection Fund in accordance with Section 125 of the Companies Act, 2013 as at the year end.

NOTE 48:

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

NOTE 49:

These financial statements were approved for issue with a resolution of the Board of Directors on May 03, 2024.

NOTE 50:

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs and decimal thereof as per the requirements of Schedule III to the Companies Act, 2013, unless otherwise stated.

NOTE 51:

Previous year's figures have been reclassified/ regrouped wherever necessary to conform with the current Financial Statements.

NOTE 52:

No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

NOTE 53:

The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

NOTE 54:

The Company is not a declared wilful defaulter by any bank or financial institution or other lender.

NOTE 55:

The Company has no transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

NOTE 56:

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

NOTE 57:

The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

NOTE 59:

No Scheme of Arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

NOTE 60: UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

(a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source or kind of funds) to any other person(s) or entity(is), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) the the Intermediary (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 other person(s) or entity(ies), including foreign

entities (intermediaries) 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 to or on behalf of the Ultimate Beneficiaries.

NOTE 61:

There is no transaction not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Further there is no previously unrecorded income and related assets requiring recording in the books of account during the year.

NOTE 62:

The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance sheet date.

NOTE 64:

The Company has done an assessment to identify Core Investment Company (CIC) [including CICs in the Group] as per the necessary guidelines of Reserve Bank of India [including Core Investment Companies (Reserve Bank) Directions, 2016]. The Company is not a CIC and no entities have been identified as CIC in the Group, of which Company is a part.

NOTE 65:

Revenue from contract with customers differ from the revenue as per contracted price due to factors such as taxes recovered, volume rebate, discounts, etc.

NOTE 66:

The Company has assets (equipment etc.) with a lease term of 12 months or less. The Company applies the ‘short term lease’ recognition exemption for these leases. The Company also has certain leases of

assets of low value. The Company applies ‘low values lease’ recognition exemption for these leases.

NOTE 67:

The Company has neither long-term contracts nor derivatives as at March 31, 2024.

NOTE 68:

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

NOTE 69:

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.

NOTE 70:

Disclosures pursuant to Section 186(4) of the Companies Act, 2013:

(i) for guarantee refer to note 36. Guarantee has been utilised by the recipient for business.

(ii) No security has been provided.

Notes:

Loans given to employees as per the policy of the Company are not considered. The loanees did not hold any shares in the share capital of the Company.

NOTE 72:

Maintenance of Books of account under Section 128 of the Companies Act, 2013. The Company has defined process to take daily back-up of books of account maintained electronically and complied with the provisions of The Companies (Accounts) Rules, 2014 (as amended).

NOTE 73:Offsetting financial assets and liabilities

The Company has not offset any financial asset and financial liability. It offsets a financial asset and

a financial liability when it currently has a legal enforceable right to set-off the recognised amounts and it intends either to settle on a Net basis, or to realise the asset and settle the liability simultaneously.

Collateral against borrowings

The Company has hypothecated | mortgaged assets as collateral against a number of its sanctioned line of credit (Refer Note 18 & 20) for further information on assets hypothecated | mortgaged as security). In case of default as per borrowing arrangement, such collateral can be adjusted against the amounts due.

Pending utilisation, the Company has temporarily invested the unutilised amount as on March 31, 2024, in fixed deposits with the scheduled commercial bank.

Note:

The Company declares and pays dividend in Indian rupees. Companies are required to pay | distribute dividend after deducting applicable withholding income taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.