(viii) Provisions

Provisions arc recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

Constructive obligation is an obligation that derives from an entity’s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and

(b) As a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is measured at amortised cost using the effective interest method.

The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of tire underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Rental income from assets held under operating leases is recognized on straight line basis.

(xii) Investment properties

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at cost, including related transaction cost and where applicable borrowing costs. Subsequent expenditure is capitalized in the assets carrying amount only when it is probable that future economic benefit associated with the expenditure will How to the Company and cost of the items can be reliably measured. All other repair and maintenance cost are expensed when incurred.

Investment property are depreciated using written down value basis over the useful life as prescribed in Schedule II of the Companies Act, 2013 unless otherwise specified.

I hc defined benefit plan operated by the Company is as below:

Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The gratuity plan of the Company is funded. The information in the note is for disclosure purpose.

The defined benefit plans expose the Company to a number of actuarial risks as

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability.

(H) Defined ( ontribution Plan Provident fund und pension

In accordance with the Kniploycc's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company art entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company mala monthly contributions at a specified percentage of the covered employees' salary. The contributions, as specified under the law. are madi to the employee provident fund organisation (KPF'O).

Tlic total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to Rs 6.91 Lakhs (PY: Rs. 5.91 Lakhs)

Note - 34: Capital management

The Company's capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met mostly through internal accruals and some short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued through 11*0 during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash equivalents, fixed deposits field with bank and margin money held with banks.

Note - 35: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36)on 'impairment of Assets" the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard Based on the exorcise, no impairment loss is required as at March 31. 2024

Note - 36: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note l(EXv).

a) Financial assets and liabilities

The following tables presents the currying value and fair value of each category of financial assets and liabilities us at March 31. 2024. March 31. 2023 and April 01, 2022,

41 Oilier Note*

(i) In the opinion of the Board of Directors and Management, all the assets other than. Properly. Pbnt and Equipment. Intangible assets and non-current investments haw a value on realisation in the ordinary course of business which is at least equal to the amount at which they arc stated.

(ii) Figures for the previous year have been re-grouped rearranged, restated wherever necessary to make them comparable w ith those of the current year.

(iii) The Company docs not have any immovable property whose title deed is not held in name of the company

(iv) The company docs not haw any Hcnanu property, where any proceeding has been initiated or pending against the company for holding any Bcnami property.

(v) The company liave borrowings from the bank or fuianctal institutions and company is regular in submitting monthly returns or statement of current assets to be filed with such bank financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act. 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.

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

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act. 2013 read with the Companies (Restriction on number of Layers) Rules. 2017.

(x) Company has not advanced or baned or invested funds to any other pcrson(s) or entity*is), including foreign entities (1 ritermcduities) with the understanding that the Intermediary shall: (a) 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 (b ) provide any guarantee, security or the like to or on behalf of the Ultimate Bene lieinrics.

(xi) 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: (a) 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 (b) provide any guunintcv. security or the like on behalf of the Ultimate Bene lie laries

(xii) The Company docs not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the war in the lax assessments under the Income Tax Act. 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act. 1961.

(xiii) The Company lias not traded or invested in Crypto currency or Virtual Currency during the financial year

Ai per our report of even date For & on Brhalf of Hoard of Directors of

For KRA & Co. SARVESHWAR FOODS LIMITED

Chartered Accountants Firm Regd. No.020266N

Anil Sharma Srcntu Rani

Cunjan Arora Managing Director Director

Partner DIN: 07417538 DIN: 08385581

M.No. 529042

I DIN: 24529042BKAMI 05090

Place: Jammu Vishal Narclial Sadhvi Sharma

Date: 16th May 2024 Chief Finance Officer Company Secretary