Khandelwal Extraction Ltd. — Annual Report 2022

Sep 19, 2022

KHANDELWAL EXTRACTIONS LTD.

51/47 , NAYAGANJ, KANPUR-208001 Phones: 2313195, 2319610 Mobile No.: 09415330630 Email Id : kelknp@yahoo.com Website: www.khandelwalextractions.com CIN : L24241UP1981PLC005282

Ref. No. HO/SECY/22-23/33/

19[th] September, 2022

To, The Listing Manager BSE Ltd. The Department of Corporate Services PJ Towers, Dalal Street MUMBAI -400001 Scrip Code: 519064 ISIN No: INE687W01010 Listing Centre: listing.bseindia.com

Sub: Revised 40[th] Annual Report FY 2021-22

Dear Sir/Ma’am,

Pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the revised 40th Annual Report of the Company for the F.Y. 2021-22 along with notice of the 40th Annual General Meeting of the Company to be held on Saturday, 24th September, 2022 at 4:00 PM at 50 MIG Bungalow, W Block, Keshav Nagar, Kanpur-208014.

Due to overlook, the wrong pdf file of the report got attached previously.

You are requested to kindly ignore the previous submissions.

Please take it on record.

Thanking You.

Yours faithfully, For Khandelwal Extractions Limited

Digitally signed by DINESH KHANDELWAL DN: c=IN, o=Personal, title=7039, DINESH pseudonym=1c82a7a7791d2fc5a5fd441511b0c01d57a8673ea366380c9df4e731468c34d7, postalCode=208014, st=Uttar Pradesh, serialNumber=c9a0976439efa16f26e5afed830c796de78 KHANDELWAL 0be353042b32f11cf802ad472cbc8, cn=DINESH KHANDELWAL Date: 2022.09.19 15:32:50 +05'30'

Dinesh Khandelwal (Director- Finance & CFO) DIN: 00161831

KHANDELWAL EXTRACTIONS LIMITED

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40th ANNUAL REPORT 2021-2022

KHANDELWAL EXTRACTIONS LIMITED

BOARD OF DIRECTORS

K. N. KHANDELWAL - Chairman V. N. KHANDELWAL - Whole Time Director (Works) DINESH KHANDELWAL - Whole Time Director (Finance) & CFO ASHOK GUPTA - Independent Director ATUL BAGLA - Independent Director ANIL KAMTHAN - Independent Director REKHA KEJRIWAL - Independent Director

COMPANY SECRETARY

MOHIT SRIVASTAVA REGISTERED OFFICE : 51/47, NAYAGANJ, KANPUR – 208 001

CIN : L24241UP1981PLC005282 Website : www.khandelwalextractions.com Email : kelknp@yahoo.com

WORKS :

AKRAMPUR – MAGARWARA DISTT. UNNAO (UTTAR PRADESH)

AUDITORS :

M/S. GUPTA VAISH & CO., KANPUR

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CONTENTS
NOTICE 1-2
DIRECTORS' REPORT 3-4
SECRETARIAL AUDIT REPORT 5
INDEPENDENT AUDITOR'S REPORT 6
ANNEXURE-A 7
ANNEXURE-B 8
BALANCE SHEET 9
PROFIT & LOSS ACCOUNT 10
CASH FLOW STATEMENT 11
STATEMENT OF CHANGES IN EQUITY 12
NOTES TO FINANCIAL STATEMENT 13-25
ATTENDANCE SLIP & PROXY FORM 26
ROUTE MAP OF AGM 27
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KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
NOTICE th NOTICE is hereby given that the 40 Annual General Meeting of Khandelwal Extractions Ltd. will be th held at 50 MIG Bungalow, W Block, Keshav Nagar, Kanpur-208014 on Saturday, the 24 September, 2022 at 4:00 P.M,to transact the following business: ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Financial Statements of the Company for the financial year ended 31st March, 2022 and Report of the Board of Directors and Auditors' thereon. 2. To appoint a Director in place of Shri Vishwa Nath Khandelwal (DIN: 00161893),who retires by rotation and being eligible offers himself for re-appointment. 3. Appointment of Auditors To consider and if thought fit to pass with or without modification(s) the following resolution as an Ordinary Resolution: "RESOLVED THATpursuant to the provisions of Section 139, 141, 142 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules framed there under, as amended from time to time and pursuant to recommendation of the Audit Committee and Board of Directors, M/s P.L. Tandon & Co., Chartered Accountants, Kanpur (ICAI Registration No. 000186C), be and are hereby appointed as Statutory Auditors of the Company to hold office for th a term of 5 years from the conclusion of 40 Annual General Meeting (AGM) till the conclusion th of 45 Annual General Meeting at such remuneration as fixed by the Board of Directors of the Company.” “RESOLVED FURTHER THATthe Board of Directors of the Company (including its Committee thereof) and /or Company secretary of the Company, be and are hereby authorized to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient to give effect to this resolution.” SPECIAL BUSINESS To consider and if thought fit, to pass with or without modification(s), the following resolution(s) As Special Resolution: 4. Re-appointment of Shri Dinesh Khandelwal as Whole-time Director (Finance) & CFO “RESOLVED THATpursuant to the provisions of Section 196, 197, 203 of The Companies Act, 2013 and any other applicable provisions, if any and the Rules made thereunder (including any statutory modification(s) or re-enactment(s) thereof for the time being in force), read with Schedule V to the Companies Act, 2013, the consent of the members of the Company be and is hereby accorded for the re-appointment of Mr. Dinesh Khandelwal (DIN: 00161831) designated as Whole-time Director (Finance) & CFO, not liable to retire by rotation except for compliance of Section 152 (6) of the Companies Act, 2013, for three (3) years with effect from 01.04.2023, on the terms and conditions as recommended by Nomination and Remuneration Committee and as contained in the Explanatory Statement attached to the notice.” “RESOLVED FURTHER THATthe Board of Directors of the Company (including its Committee thereof) and /or Company secretary of the Company, be and are hereby authorized to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient to give effect to this resolution.” Regd. Office: 51/47, Nayaganj, Kanpur – 208 001 Dinesh Khandelwal th Dated: 13 August, 2022 Whole Time Director ( Finance) & CFO DIN : 00161831 Notes: a) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING (THE “MEETING”) IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF / HERSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY.A person can act as proxy on behalf of members not exceeding 50 (fifty) and holding in aggregate not more than 10% of total share capital of the company carrying voting rights. A member holding more than ten percent of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder. The instrument of proxy in order to be effective must be received by the Company not less than 48 hours before the commencement of the annual general meeting. A Proxy form is annexed herewith and same is available on the Company's website .Proxies submitted on behalf of the Companies must www.khandelwalextractions.com be supported by an appropriate resolution/authority as applicable. b) The Register of members and Share Transfer books of the Company will remain closed from th th 17 September, 2022to24 September, 2022(both days inclusive). c) Brief resume of the Director proposed to be re-appointed along with such other details as stipulated under Regulation 36(3) of SEBI Listing Regulations, as amended, and Secretarial Standards on General Meetings (SS-2), are provided in this Notice. d) The Company has entered into necessary arrangements with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to enable the shareholders to dematerialize their shareholding in the Company for which they may contact the Depository Participant of the above Depositories. The Company's ISIN No. is INE687W01010. e) Members are requested to lodge Share Transfer documents and all other correspondences and queries relating to Share Transfer, Share Certificates, Change of Address etc., to the Company's Registrar and Transfer Agent (“RTA”) i.e. M/s Alankit Assignments Limited having its office at 205-208, Anarkali Complex, JhandewalanExtension , New Delhi- 110055 f) Members are requested to register/update/intimate changes, if any, pertaining to their name, postal address, email address, telephone/mobile numbers, Permanent Account Number (PAN), signature, bank mandates, demat account details, nominations, etc., in following manner. a. For shares held in physical form, to the Company/ RTA in prescribed Form ISR-1 and other forms pursuant to the SEBI Circular No. SEBI/HO/MIRSD/ MIRSD_RTAMB/CIR/2021/655 dated November 3, 2021. All the prescribed forms can be downloaded from the Company's website at . www.khandelwalextractions.com b. For shares held in electronic form, to their Depository Participants (“DPs”) In terms of the above SEBI Circular, the folios wherein certain details like PAN, nomination, mobile number, email address, specimen signature, bank details are not available, are required to be frozen with effect from April 1, 2023. Accordingly, members who have not yet submitted the said details are requested to kindly provide the same to the Company/RTA at the earliest but not later than March 31, 2023, failing which their folios shall be frozen. g) As per the provisions of Section 72 of the Act and SEBI Circular dated November 3, 2021, the facility for making nomination is available for the Members in respect of the shares held by them. Members who have not yet registered their nomination are requested to register the same by submitting Form No. SH-13. If a Member desires to opt out or cancel the earlier nomination and record a fresh nomination, he/she may submit the same in Form ISR-3 or SH- 14 as the case may be. The said forms can be downloaded from the Company's website www.khandelwalextractions.com.Members are requested to submit the said details to their Depository Participant in case the shares held by them in dematerialized form and to the RTA in case the shares are held in physical form. h) In line with the Ministry of Corporate Affairs (MCA) Circular No. 17/2020 dated April 13, 2020, the Notice calling the AGM has been uploaded on the website of the Company at www.khandelwalextractions.com.The Notice can also be accessed from the websites of the Stock Exchanges i.e. BSE Limited respectively and the AGM Notice is also available on the website of CDSL (agency for providing Remote e-Voting facility) i.e. . www.evotingindia.com i) The Members may further note that SEBI vide its circular dated January 25, 2022, has mandated the listed companies to issue the securities in dematerialized form only, while processing the requests for Issue of duplicate securities certificate, claim from Unclaimed Suspense Account, Renewal/Exchange of Securities certificate, Endorsement, Sub-division/ Splitting of securities certificate, Consolidation of securities certificates/folios, Transmission, Transposition. Accordingly, Members are requested to make service request by submitting a duly filled and signed form ISR-4 format of which is available on the website of the Company at www.khandelwalextractions.com.It may be noted that any service requested can be processed only after the folio is KYC compliant. j) SEBI vide its notification dated January 24, 2022 has mandated that all requests for transfer of securities including transmission and transposition requests shall be processed only in dematerialized form. In view of the same and to eliminate all risks associated with physical shares and avail various benefits of dematerialisation, Members are advised to dematerialise the shares held by them in physical form. k) In terms of Section 108 of the Companies Act 2013 read with relevant applicable rules and pursuant to Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has made arrangement of e -voting through CDSL. Members have option to cast their vote by using electronic voting system from a place other than the venue of the meeting (remote e-voting).Members who wish to cast the vote at AGM shall be provided a Ballot to cast their vote. The members who have cast their vote by remote e-voting may also attend the meeting but shall not be entitled to cast/change their vote again in the meeting. Information and instructions relating to e-voting are provided at end of the notice. The details of User ID and Password relating to e-voting are sent herewith. l) In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names will be entitled to vote. m) The voting rights of the members shall be in proportion to their shares of the paid up share th capital of the Company as on the cut off date i.e.17 September, 2022.The poll process shall be conducted and scrutinized and report thereon will be prepared in accordance with Section 109 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014 as amended from time to time. n) The Company has appointed M/s. Banthia & Co. (Prop. Mr. G.K. Banthia) of Kanpur, Practicing Company Secretaries (C.P. No. 1405) as the Scrutinizer for conducting the e-voting and polling process in fair and transparent manner who have consented to be available for the same. o) The scrutinizer after scrutinizing the votes cast at the meeting and through remote e-voting, will, not later than two working days of conclusion of the meeting, make a consolidated scrutinizer's report and submit the same to the Chairman. The results declared along with the consolidated scrutinizer's report shall be placed on the website of the Company www.khandelwalextractions.com www.evotingindia.com and on the website of CDSL .The results will simultaneously be communicated to the Stock Exchange(s). p) Subject to receipt of requisite number of votes, the Resolutions shall be deemed to be passed th on the date of the Meeting, i.e.24 September, 2022. q) Register of Directors and KMP and their Shareholding maintained u/s 170, Register of contracts and arrangements in which Directors are interested u/s 189 shall be open for inspection of the member during AGM. r) A Route Map showing directions to reach the venue of AGM is attached at the end of this Annual Report as per the requirement of the Secretarial Standard -2 on General Meetings. s) In compliance with the MCA vide circular dated May 5, 2022 read with Circulars dated April 8, 2020, April 13, 2020, May 05, 2020 and January 13, 2021 and SEBI vide its Circular dated May 13, 2022 read with circulars dated May 12, 2020 and January 15, 2021 Electronic copy of the Notice of the AGM along with the Annual Report 2021-22 is being sent only through electronic mode to those Members whose email addresses are registered with the Company/ Depositories. Members may note that the Notice and Annual Report 2021-22 will also be available on the Company's website .The notice can also be www.khandelwalextractions.com accessed from the website of BSE Limited at and website of CDSL at www.bseindia.com www.evotingindia.com. t) All documents referred to in the accompanying notice shall be open for inspection at the registered office of the Company between 02:00 pm to 04:00 pm on all working days except Saturday upto the date of Annual General Meeting. THE INTRUCTIONS OF SHAREHOLDERS FOR E-VOTING ARE AS UNDER: Step 1: Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode. Step 2: Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and non-individual shareholders in demat mode. rd (i) The voting period begins on 21st September, 2022 (10:00 am) and ends on 23 September, 2022 (5:00 pm). During this period shareholders' of the Company, holding shares either in th physical form or in dematerialized form, as on the cut-off date of 17 September, 2022 may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter. (ii) Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue. (iii) Pursuant to SEBI Circular No.SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 09.12.2020,under Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its shareholders, in respect of all shareholders' resolutions. However, it has been observed that the participation by the public non-institutional shareholders/retail shareholders is at a negligible level. Currently, there are multiple e-voting service providers (ESPs) providing e-voting facility to listed entities in India. This necessitates registration on various ESPs and maintenance of multiple user IDs and passwords by the shareholders. In order to increase the efficiency of the voting process, pursuant to a public consultation, it has been decided to enable e-voting to all the demat account holders, by way of a single login credential, through their demat accounts/ websites of Depositories/ Depository Participants. Demat account holders would be able to cast their vote without having to register again with the ESPs, thereby, not only facilitating seamless authentication but also enhancing ease and convenience of participating in e-voting process. Step 1: Access through Depositories CDSL/NSDL e-Voting system in case of individual shareholders holding shares in demat mode. (iv) In terms ofSEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9,2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in order to access e-Voting facility. Pursuant to above said SEBI Circular,Login method for e-Votingfor Individual shareholders holding securities in Demat mode CDSL/NSDLis given below: 01 By order of the Board of Directors
		01

01

KHANDELWAL EXTRACTIONS LIMITED

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Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website. Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. CDSL and NSDL

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• Step 2 : Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and non-individual shareholders in demat mode. (v) Login method for e-Voting for Physical shareholders and shareholders other than individual holding in Demat form.

• 1) The shareholders should log on to the e-voting website www.evotingindia.com.

• 2) Click on “Shareholders” module.

• 3) Now enter your User ID a. For CDSL: 16 digits beneficiary ID, b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID, c. Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.

• 4) Next enter the Image Verification as displayed and Click on Login. 5) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier e-voting of any company, then your existing password is to be used.

• 6) If you are a first-time user follow the steps given below:

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• (vi) After entering these details appropriately, click on “SUBMIT” tab.

• (vii) Shareholders holding shares in physical form will then directly reach the Company selection screen. However, shareholders holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

• (viii) For shareholders holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

• (ix) Click on the EVSN of Khandelwal Extractions Limited on which you choose to vote. (x) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

• (xi) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details. (xii) After selecting the resolution, you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote.

• (xiii) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote. (xiv) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page.

• (xv) If a demat account holder has forgotten the login password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

• (xvi) Additional Facility for Non – Individual Shareholders and Custodians –For Remote Voting only. · Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the “Corporates” module.

• · A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to helpdesk.evoting@cdslindia.com.

• · After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.

• · The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia.com and on approval of the accounts they would be able to cast their vote.

• · A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

• · Alternatively Non Individual shareholders are required to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz;kelknp@yahoo.com, if they have voted from individual tab & not uploaded same in the CDSL e- voting system for the scrutinizer to verify the same.

• PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL/MOBILE NO. ARE NOT REGISTERED WITH THE COMPANY/DEPOSITORIES. 1. For Physical shareholders- Please provide necessary details like Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to Company/RTA email id . 2. For Demat shareholders -Please update your email id & mobile no. with your respective Depository Participant (DP) 3. For Individual Demat shareholders – Please update your email id & mobile no. with your respective Depository Participant (DP) which is mandatory while e-Voting. If you have any queries or issues regarding e-Voting from the CDSL e-Voting System, you can write an email to helpdesk.evoting@cdslindia.com or contact at 022-23058738 and 022-23058542/43. All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Sr. Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to helpdesk.evoting@cdslindia.com or call on 022-23058542/43. EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 Item no. 3 At the 35th Annual General Meeting (AGM) of the Company held on 23rd September, 2017, the Members had approved the appointment of M/s Gupta Vaish & Co., Chartered Accountants, Kanpur (ICAI Registration No. 005087C), as the Statutory Auditors of the Company to hold office as Statutory Auditors for a period of five (5) years, till the conclusion of the 40th AGM to be held in the year 2022. Accordingly, the Board of Directors at its meeting held on 13th August, 2022, based on the proposal of the Management and the recommendations of the Audit Committee, has approved the appointment of M/s P.L. Tandon & Co. Chartered Accountants (ICAI Registration No. 000186C), as Statutory Auditors of the Company to hold office for a term of 5 years from the conclusion of 40th Annual General Meeting (AGM) till the conclusion of 45th Annual General Meeting at such remuneration as fixed by the Board of Directors of the Company. In accordance with the provisions of Section 139, 141 and other applicable provisions, if any, of the Act read with the Companies ( Audit and Auditors) Rules, 2014 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), each as amended from time to time, M/s P.L. Tandon & Co. have given their consent for their appointment as Statutory Auditors of the Company and has issued Certificate confirming that their appointment, if made, would be in accordance with the applicable laws. M/s P.L. Tandon & Co. have also confirmed that they are eligible for the proposed appointment under the Act, The Chartered Accountants Act, 1949, read with the Rules and Regulations made thereunder. On the recommendations of the Audit Committee, your Board recommends the passing of the resolution set out in Item no. 3 of this notice as an Ordinary resolution. None of the other Directors/KMP of the Company/ their relatives are, in any way, concerned or interested in the resolution set out in Item no. 3 of the notice. Item No. 4 Mr. Dinesh Khandelwal, who has been associated with the Company's activities since inception, has accorded by members of the Company in the 37been holding office in the capacity of Whole-Time Director (Finance) & CFO in terms of approval th Annual General Meeting held on 28th September, 2019 for a period of 3 years w.ef. 01.04.2020. His present tenure would expire on 31.03.2023. The Board of Directors on the basis of recommendation of Nomination and Remuneration Committee has reappointed him as Whole-Time Director (Finance) & CFO for another period of three (3) years w.e.f 01.04.2023 on the remuneration package which is within the maximum permissible limit under Schedule V of the Companies Act, 2013. Fresh approval of the members by way of Special Resolution is being sought for the same. The followings are the terms and conditions as regards to salary and perquisites payable to him: i) Salary: Rs.30000/- per month Category –A: a) Provident Fund: Company's contribution to Provident Fund will not be included in the computation of the ceiling on perquisite to the extent these, either singly or put together are not taxable under the Income Tax Act.

the ceiling on perquisite to the extent these, either Tax Act.	singly or put together are not taxable under the Income
Category – B: Provision of Car and cell phone for use on Compa of car for private purpose shall be billed by the Com He shall not be entitled for any sitting fees for mee by him .In the event of loss or inadequacy of prof shall be paid as minimum remuneration in accord Board of Directors may revise upwards, the re permissible limit under Schedule V of the Comp excluding perquisites. No Director and Key Management Personnel, ex Mr. Vishwa Nath Khandelwal being relative to eac Details of Dinesh Khandelwal seeking re-appoint	ny's business will not be considered as perquisites. Use pany. ting of the Board or of any committee thereof attended its in any financial year(s), the aforesaid remuneration ance with the provisions of Companies Act, 2013. The muneration from time to time, within the maximum anies Act, 2013, but not exceeding Rs. 60000/- p.m. cept Mr. K N Khandelwal, Mr. Dinesh Khandelwal, and h other, are concerned and interested in the resolution. ment:-
DIN	00161831
Designation	Whole-timeDirector(Finance) & CFO
Date of Birth	01.06.1953
Age	70 years
Qualification	Commerce Graduate
Date of first appointment on Board	24.04.1981
Brief resume and Justification /Expertise in specific functional areas of Director	One of the promoter Directors, associated with the Company since inception, Experience of over 41 years in Company’s finances, banking and commercial functions, Devotes full time attention in the Company’s affairs. His appointment shall be helpful as his contribution is needed for revival of the Companyfrompresent stress.
Directorship/Membership/Chairmanship held in Committees of Board ofotherCompanies	Nil
Shareholdinginthe Company	42000 equity shares
Relationship with other directors inter-se	Brother of Mr. Kailash Nath Khandelwal and Mr. Vishwa Nath Khandelwal
No.of Boardmeetings attendedinthe year 2021-22	4
Remuneration last drawn(FY 2021-22)	Detailsin Form MGT-9

02

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
03 Dear Members, th Your Directors have pleasure in presenting Company's 40 Annual Report and st Audited Financial Statements for the financial year ended March 31 , 2022. 1. FINANCIAL RESULTS 2. HIGHLIGHTS OF PERFORMANCE During the year under review, Pursuant to approval of Board of Directors/ Audit Committee/Committee of Board of Directors, the Company has completed the sale of Plant & Machinery, Stores and Spares of the Company and leased out all godowns of the Company situated at Akrampur-Magarwara, Distt. Unnao, which resulted in profit before interest and depreciation of Rs. 52.99 Lacs. After adjustment of Interest, depreciation and tax, the year resulted in profit of Rs. 29.71 lakhs as compared to loss of Rs. 25.27 lakhs in the previous year. The Company's assessment under Income Tax Act, 1961 is completed upto A.Y. 2021-22 and there was no outstanding demand. Impact of COVID-19:There was no impact of COVID-19 on the financial statements of the Company as its manufacturing was totally closed. Indian Accounting Standards (Ind-AS)–IFRS Converged Standards. The Company has adopted Indian Accounting Standards (Ind-AS) with effect from 1st April, 2017 pursuant to Ministry of Corporate Affairs' notification of the Companies (Indian Accounting Standard) Rules, 2015 and the Annual Accounts of 2021-22, has been drawn in terms of provisions of the Ind-AS. Future Outlook: The present lease agreements are upto 31.08.2022 but the management expects possibilities of its further renewal. 3. TRANSFER TO RESERVES The Company has retained the amount of Rs. 29.71 lakhs in the Profit and Loss Account and no amount has been transferred to General Reserve. 4. DIVIDEND Due to accumulated losses, the Board of Directors do not recommend any dividend on Equity shares. 5. SHARE CAPITAL The Company's Authorized Capital remains unchanged at Rs. 200 Lakhs. The Paid up Equity Share Capital of the Company as on the date of Balance Sheet stands unchanged at Rs. 85,01,000/- (comprising of 8,50,100 Equity shares of Rs. 10/- each). 6. FIXED DEPOSITS Your Company has not invited any deposits during the financial year under review. 7. SUBSIDIARIES Your Company does not have any subsidiary within the meaning of the Companies st Act, 2013. During the financial year ended 31 March 2022, no entity became or ceased to be the subsidiary, joint venture or associate of the Company. 8. DIRECTORS AND KEY MANAGERIAL PERSONNEL a. In accordance with the provisions of Section 152 of the Companies Act, 2013 and Rules made thereunder, Mr. Vishwa Nath Khandelwal (DIN: 00161893), Whole-time Director (Works), retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re- appointment to the Board. The tenure of Mr. Dinesh Khandelwal designated as Whole-time Director st (Finance) & CFO, who was appointed for three (3) years w.e.f 1 April, st 2020 will expire on 31 March 2023. The Board on the recommendation of Nomination and Remuneration Committee has recommend for his re- appointment as Whole-time Director (Finance) & CFO for three (3) years period from 01.04.2023 on the remuneration detailed in the notice of AGM, subject to approval by members in the general meeting. Your Directors recommend the resolution for re-appointment of Mr. Dinesh Khandelwal for your approval. Pursuant to the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019, all Independent Directors have registered their name in the data bank of Independent Directors. All Independent Directors have given declarations of compliance of Rule 6(1) & (2) of Companies (Appointment and Qualification of Directors) Rules, 2014 as amended along with the declaration that they meet the criteria of independence as laid down under Section 149 (6) of the Companies Act, 2013. b. Mr. Dinesh Khandelwal, Whole-time Director (Finance) & CFO; Mr. Vishwa Nath Khandelwal (DIN: 00161893), Whole-time Director (Works) and Mr. Mohit Srivastava Company Secretary and Compliance Officer are the Key Managerial Personnel of your Company. 9. BOARD EVALUATION Pursuant to the provisions of the Companies Act, 2013; the Nomination and Remuneration Committee formulated the criteria for evaluation of the performance of the Board of Directors, its various Committees constituted as per the provisions of the Companies Act, 2013 and individual directors. Based on that, the Board of Directors carried out an annual evaluation of its own performance and of its various Committees viz. Audit Committee, Nomination and Remuneration Committee, Stakeholder Relationship Committee and Committee of Directors and expressed their satisfaction with its performance and performance of its Committees. The Board of Directors also evaluated the performance of individual Director on the basis of self-appraisal and expressed their satisfactory performance. The Board of Directors also carried out an annual performance evaluation of its Independent Directors and expressed their satisfaction with their functioning / performance. In terms of Schedule IV to the Companies Act, 2013, the Independent Directors also convened a separate meeting for this purpose and evaluated the performance of Chairman and Non- Independent Directors. 10. REMUNERATION POLICY The Board of Directors on the recommendation of the Nomination and Remuneration Committee has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The Policy covers the criteria for selection and appointment of Board Members and senior management and their remuneration. The Company's Remuneration Policy is based on the principles of (i) Pay for Responsibility and Duties, (ii) Pay for Potential and (iii) Pay for growth of the Company. The Nomination and Remuneration Committee is vested with powers to determine yearly increments/salary increase of Executive Directors/ KMPs and one level below based on their performance and contribution towards profitability and sustainability of Company. Non Executive Directors are paid only sitting fee which is decided by Nomination & Remuneration Committee. 11. RISK MANAGEMENT POLICY The Company's business at present is limited to leasing out the godowns which have limited risk. As leasing to a renowned corporate has little risk. 12. INTERNAL CONTROL SYSTEM The Company has an adequate system of internal control relating to purchase/repairs & maintenance items commensurate with the size of the Company and nature of its business. The Company has also Internal Control System for speedy compilation of Accounts and Management Information Reports and to comply with applicable laws and regulations. The Company has a well defined organizational structure, authority levels and internal rules and regulations for conducting business transactions suitable to the size of the business. The Company has already formed an Audit Committee which met four times in a year. Audit Committee also ensures proper compliance with the provisions of The Companies Act, 2013 and also reviews the adequacy and effectiveness of the internal control environment and monitors implementation of internal audit recommendations. Besides the above, Audit Committee is actively engaged in overseeing financial disclosures and in reviewing your Company's risk management policies. 13. INTERNAL FINANCE CONTROLS In accordance with Section 134(5)(e) of the Companies Act, 2013, the Company has Internal Financial Controls Policy by means of policies and procedures commensurate with the size & nature of its operations and pertaining to financial reporting. In accordance with Rule 8(5)(viii) of Companies (Accounts) Rules, 2014, it is hereby confirmed that the Internal Financial Controls are adequate with reference to the financial statements. 14. WHISTLE BLOWER POLICY/ VIGIL MECHANISM The Company has a Whistle Blower Policy to report genuine concerns or grievances detrimental to the interest of the Company. The Whistle Blower Policy has been posted on the website of the Company. 15. RELATED PARTY TRANSACTIONS All related party transactions that were entered into during the financial year were on an arm's length basis and in the ordinary course of business and the provisions of Section 188 of the Companies Act, 2013 are not attracted. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Thus, disclosure in Form AOC-2 was not required. Details of transactions made are disclosed in financial statements. All related party transactions are presented to the Audit Committee and the Board. Omnibus approval of Audit Committee was obtained for the transactions which are foreseen and repetitive in nature. 16. STATUTORY AUDITORS AND THEIR REPORT Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Rules made there under M/s. Gupta Vaish & Co., Kanpur, Chartered Accountants, ( ) ICAI Registration No 005087C were appointed as the Statutory Auditors of the Company to hold office for five consecutive years starting from the conclusion of the 35th Annual General Meeting (AGM) held on September 23, 2017 until the conclusion of the 40th AGM of the Company to be held during the current year 2022. Subject to the approval of the members of the Company, the Audit Committee and the Board of Directors during their respective meetings held on August 13, 2022 have considered and recommended the appointment ofM/s. P.L. Tandon & Co., DIRECTORS' REPORT (Rs. in Lakhs) Other Income 154.16 Profit before Interest and Depreciation 52.99 Less : Interest 7.20 Depreciation 3.01 Tax Expense (including Deferred Tax) 13.07 Profit after tax 29.71 Other Comprehensive Income/(Loss) - Total Comprehensive Income/(Loss) 29.71
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03

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
04 Kanpur, Chartered Accountants, ( ), ICAI Registration No 000186C as the Statutory Auditors of the Company, to hold office from the conclusion of the 40th Annual General Meeting until the conclusion of the 45th Annual General Meeting of the Company to be held in year 2027. M/s. P.L. Tandon & Co.have confirmed their eligibility and qualification required under Sections 139, 141 and other applicable provisions of the Companies Act, 2013 and Rules issued thereunder (including any statutory modification(s) or reenactment(s) thereof for the time being in force). M/s. P.L. Tandon & Co., Kanpur, Chartered Accountants, (ICAI Registration No 000186C have given their consent for the proposed appointment as Statutory ), Auditors of the Company from the conclusion of the ensuing Annual General Meeting of the members of the Company. They have further confirmed that the said appointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies act, 2013 and that they are not disqualified for appointment. There are no qualifications, reservations or adverse remarks or disclaimer made in st the Auditor's Report for the financial year ended 31 March, 2022 which requires any clarification or explanation by the Board of Directors. 17. SECRETARIAL AUDIT REPORT Pursuant to the provisions of Section 204 of The Companies Act, 2013 and the Rules made there under, , Practicing Company Secretary (CP M/s. Banthia & Co No. 1405), Kanpur, were appointed to conduct the Secretarial Audit of the st Company for the year ended 31 March, 2022. The Practicing Company Secretary has submitted his Report on the secretarial audit which is annexed asAnnexure I to this Directors' Report. The Secretarial Audit Report does not contain any adverse observation or qualification requiring explanation or comments from the Board under Section 134(3)(f) of the Companies Act, 2013. 18. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS Pursuant to the provisions of Section 143 (12) of the Companies Act, 2013, no instance of fraud has been reported by the auditors against the Company. 19. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to Section 134(5) of the Companies Act 2013, your Directors confirm that: a) in the preparation of the annual accounts, the applicable accounting standards have been followed with no material departure: b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the Company for the same period; c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) they have prepared the annual accounts on a going concern basis; e) they have laid down internal financial controls in the Company that are adequate and are operating effectively; and f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that these are adequate and are operating effectively. 20. MATERIAL CHANGES AND COMMITMENTS There are no material changes or commitments made by the Company affecting the financial position of the Company between the end of financial year and date of the Report. 21. DETAILS OF SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL No significant and material orders have been passed by any Regulator or Court or Tribunal impacting the going concern status and Company's operations in future. 22. CHANGE IN THE NATURE OF BUSINESS The Company had closed manufacturing operations in 2018. During the year all the plant and machineries and stores and spare parts have been sold. It has leased out all godowns of the Company situated at Akrampur-Magarwara, Distt. Unnao. 23. STATUTORY DISCLOSURES: i. CORPORATE GOVERNANCE The Company is exempted from compliance of Corporate Governance provisions as per SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. ii. ANNUAL RETURN Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act, st 2013 the Annual Return as on 31 March, 2022 is available on the website of the Company and can be accessed at http://www.khandelwalextractions.com/ announcements.html iii.MEETINGS OF THE BOARD AND COMMITTEE HELD DURING THE YEAR a. The Board of Directors met four times during the year on 26.06.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the Directors were present in all the meetings. b. The Audit Committee formed under Section 177 of Companies Act, 2013, consisting of Mr. Ashok Gupta, Chairman; Mr. Atul Bagla and Mr. K.N. Khandelwal met five times during the year on 26.06.2021, 05.07.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the members were present in all the meetings. c. During the year, Nomination and Remuneration Committee consisting of Mr. Ashok Gupta, Chairman; Mr. Atul Bagla, Mr. Anil Kamthan and Mr. K.N. Khandelwal met one time during the year on 12.02.2022. All the members were present in the meeting. d. The Stake Holders Relationship Committee consisting of Mr. Anil Kamthan, Chairman; Mr. K.N. Khandelwal and Mr. Dinesh Khandelwal met once on 25.03.2022 to take note of investor complaints/grievances. All the members were present in the meeting. e. Independent Directors held a meeting on 25.03.2022 to assess /evaluate the performance of Chairman and Non-Independent Directors and concluded their satisfaction on their performances. iv.CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility is not applicable to the Company. v. DISCLOSURE UNDER SECTION 186: LOANS AND INVESTMENTS Loans and investments were made for deployment of surplus funds which are within the limits as prescribed u/s 186 of the Companies Act, 2013. Details are given in financial statements annexed in the Annual Report for F.Y. 2021-22. vi.CONSERVATION OF ENERGY Not Applicable. vii.TECHNOLOGY ABSORPTION Not Applicable. viii.IMPORTS / EXPORTS AND FOREIGN EXCHANGE EARNINGS AND OUTGO There was no import/export and no foreign exchange earnings and outgo incurred during the year under review. ix.REMUNERATION PAID TO EXECUTIVE DIRECTORS AND KEY MANAGERIAL PERSONNAL Details of remuneration paid to Directors, KMPs are given in Form No. MGT-9 ( . Further, details as required under available on the website of the Company) Rule 5(1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 read with section 197(12) of the Act, are same as per previous year. No new employee was employed during the year. Also no increase in salary was given to any employee. Executive directors have been paid minimum remuneration as approved by the Shareholders. Non-executive Directors have been paid only sitting fees. There was no employee getting salary in excess of the limit as specified under Rule 5(2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 read with section 197(12) of the Act, throughout or part of the year under review. x. SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 No complaint has been received under the aforesaid Act during the year under reference. 24. ENVIRONMENT AND SAFETY In the present business there is no generation of pollution of any sort. Security personnel are duly employed for safety of godowns/assets. 25. LISTING OF EQUITY SHARES The Equity shares continue to be listed with BSE Ltd. The Company has paid the Annual Listing fee for the year 2021-22 to the said stock exchange. 26. DEMATERIALISATION OF SHARES/APPOINTMENT OF RTA The Company has necessary arrangement with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to enable the shareholders to dematerialize their shareholding in the Company for which they may contact the Depository Participant of the above Depository. The Company's ISIN No. is INE687W01010. M/s Alankit Assignments Limited, New Delhi continues as its Registrar and Share Transfer Agent (RTA) for providing services in respect of transfer and dematerialization of securities of the Company with NSDL/CDSL. 27. MANAGEMENT DISCUSSSION AND ANALYSIS REPORT The present leasing agreements are upto August, 2022 and management expects for extension/renewal of the agreement. 28. COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARD The Company has complied with the applicable Secretarial Standards, SS-1 on Meetings of the Board of Directors and SS-2, SS-3 and SS-4 on General Meetings and Board Meeting issued by the Institute of Company Secretaries of India. 29. ACKNOWLEDGMENT Your Directors thank all the Stakeholders including employees for their continued support to your Company. Place: Kanpur Date:13.08.2022 K N KHANDELWAL (CHAIRMAN) DIN : 00037250 FOR AND ON BEHALF OF THE BOARD
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23. STATUTORY DISCLOSURES: dematerialization of securities of the Company with NSDL/CDSL. i. CORPORATE GOVERNANCE 27. MANAGEMENT DISCUSSSION AND ANALYSIS REPORT The Company is exempted from compliance of Corporate Governance The present leasing agreements are upto August, 2022 and management expects provisions as per SEBI (Listing Obligations and Disclosure Requirements) for extension/renewal of the agreement. Regulations 2015. 28. COMPLIANCE WITH APPLICABLE SECRETARIAL STANDARD ii. ANNUAL RETURN The Company has complied with the applicable Secretarial Standards, SS-1 on Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act, 2013 the Annual Return as on 31st March, 2022 is available on the website of and Board Meeting issued by the Institute of Company Secretaries of India.Meetings of the Board of Directors and SS-2, SS-3 and SS-4 on General Meetings the Company and can be accessed at http://www.khandelwalextractions.com/ 29. ACKNOWLEDGMENT announcements.html Your Directors thank all the Stakeholders including employees for their continued iii. MEETINGS OF THE BOARD AND COMMITTEE HELD DURING THE YEAR support to your Company. a. The Board of Directors met four times during the year on 26.06.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the Directors were present in all the meetings. b. The Audit Committee formed under Section 177 of Companies Act, 2013, FOR AND ON BEHALF OF THE BOARD consisting of Mr. Ashok Gupta, Chairman; Mr. Atul Bagla and Mr. K.N. Khandelwal met five times during the year on 26.06.2021, 05.07.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the members were present Place: Kanpur K N KHANDELWAL in all the meetings. Date: 13.08.2022 (CHAIRMAN) DIN : 00037250

27. MANAGEMENT DISCUSSSION AND ANALYSIS REPORT The present leasing agreements are upto August, 2022 and management expects for extension/renewal of the agreement.

iii. MEETINGS OF THE BOARD AND COMMITTEE HELD DURING THE YEAR a. The Board of Directors met four times during the year on 26.06.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the Directors were present in all the meetings. b. The Audit Committee formed under Section 177 of Companies Act, 2013, consisting of Mr. Ashok Gupta, Chairman; Mr. Atul Bagla and Mr. K.N. Khandelwal met five times during the year on 26.06.2021, 05.07.2021, 14.08.2021, 13.11.2021 and 12.02.2022. All the members were present in all the meetings.

04

KHANDELWAL EXTRACTIONS LIMITED

Annexure - I

SECRETARIAL AUDIT REPORT

st

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
04 5 SECRETARIAL AUDIT REPORT Annexure - I st FOR THE FINANCIAL YEAR ENDED 31 March, 2022 [Pursuant to Section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, The Members, Khandelwal Extractions Ltd. 51/47,NayaGanj Kanpur 208001. I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Khandelwal Extractions Ltd.(hereinafter called the company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon. Based on my verification of the Company's books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, the explanations and clarifications given to me and the representations made by the Management and considering the relaxations granted by the Ministry Of Corporate Affairs/other Authorities warranted due to spread of Covid-19 pandemic, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March, 2022 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance- mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: I have relied upon the accuracy of the documents and information as shared by the Company with me through appropriate Information Technology tools to assist us in completing the secretarial audit work during lock down period due to pandemic Covid-19 and the same is subject to physical verification by me post normalization of the situation. I have examined the books, papers, minute books, forms and returns filed and other records maintained by Khandelwal Extractions Ltd. for the financial year ST ended on 31 March, 2022 according to the provisions of: (1) The Companies Act, 2013 (the Act) and the rules made there under; (2) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made there under; (3) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under; (4) Foreign Exchange Management Act, 1999 and the rules and regulations made there under. (5) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; (b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; (Not applicable during the Audit Period) (d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 2014.(Not applicable during the Audit Period). (e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not applicable during the Audit Period). (f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with clients; (g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable during the Audit Period) (h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not applicable during the Audit Period) (6) I further report that reliance has been placed on the management representation by company for compliances and systems and mechanisms formed by the Company on compliance with other laws; there is no specific Law applicable to the Company: I have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India. (ii) The Listing Agreement(LODR)entered into by the Company with the Bombay Stock Exchange Limited. Shares of the Company are listed at Bombay Stock Exchange Limited. For transfer of shares to suspense account as per clause 39 of LODR Regulations, letters has been issued to the concerned shareholders for claiming undelivered/unclaimed shares of physical segment and the compliance is under process. (UP Stock Exchange ceased to be a recognized Stock Exchange in June 2015. Listing Agreement with said Exchange also ceased). During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above. I have relied on the information and representation made by the Company and its Officers for systems and mechanism formed by the Company for compliances under other applicable Acts, Laws, and Regulations to the Company. I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Director, Non-Executive Director and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance/ as per applicable provisions, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or Committee(s) of the Board, as the case may be. I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. I further report that during the audit period, there were no other events having a major bearing on the Company's affairs in pursuance of the above referred laws, rules, regulations, guidelines etc. except the following: (i)The Company closed its plant and manufacturing operations in November 2018. Plant, machinery and spares were sold during the year; During the year the company leased out all its godowns on rent ; (ii)Future events or conditions may cause the Company to cease to continue as going concern. (iii)Since Company's Plant/Operations remain closed from November 2018, there is no impact of COVID -19 on the Financial Performance of the Company. Signature Banthia And Company G.K.Banthia (Prop.) ACS No.:4933; C P No.:1405 This report is to be read with our letter of even date which is annexed as Annexure Aand forms an integral part of this report. Annexure A To, The Members Khandelwal Extractions Ltd. 51/47,NayaGanj Kanpur 208001. Our report of even date is to be read along with this letter. 1. It is the responsibility of the management of the company to maintain secretarial record, devise proper systems to ensure compliance with the provisions of all the applicable laws and to ensure that the systems are adequate and operate effectively. 2. Our responsibility is to express an opinion on these secretarial records based on our audit. 3 We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion. 4. We have not verified the correctness and appropriateness of finance records and Books of Accounts of the company. 5. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc. Disclaimer: 6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company. Signature Banthia And Company G.K.Banthia (Prop.) Practicing Company Secretary ACS No.:4933; C P No.:1405 Place :Kanpur Date : 03.08.2022 UDIN : A004933D000732847 Place :Kanpur Date : 03.08.2022 UDIN : A004933D000732847
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0 45

KHANDELWAL EXTRACTIONS LIMITED

INDEPENDENT AUDITOR'S REPORT

To the Members of KHANDELWAL EXTRACTIONS LIMITED Report on the Audit of the Financial Statements Opinion

are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. · Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
To the Members of KHANDELWAL EXTRACTIONS LIMITED Report on the Audit of the Financial Statements Opinion We have audited the financial statements of KHANDELWAL EXTRACTIONS LIMITED (“the Company”), which comprise the balance sheet as at 31st March 2022, and the statement of Profit and Loss, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act, read with the Companies (Indian Accounting Standards ) Rules 2015, as amended ,(“Ind AS “) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and profit, changes in equity and its cash flows for the year ended on that date. Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Director's Report including Annexures to Director's Report etc., but does not include the financial statements and our auditor's report thereon. The Director's Report including Annexures to Director's Report etc. is not made available to us till the date of this report and is expected to be made available to us after the date of this Auditors' Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Responsibility of Management for Financial Statements The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the company's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: l Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls. l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. l Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. · Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Report on Other Legal and Regulatory Requirements As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the” Annexure A”a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. As required by Section 143(3) of the Act, we report that: a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. c. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income , statement of changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e. On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Act. f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report inAnnexure B. g. With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of Section 197(16) of the Act, as amended: In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act. h. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer note no.32 to the financial statements ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses. iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. iv (a) The Management has represented that, to the best of it's knowledge and belief, as disclosed in the note no. 33 to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. iv (b) The Management has represented, that, to the best of it's knowledge and belief, other than as disclosed in the note no. 34 to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Based on such audit procedures we have considered reasonable and appropriate in the circumstances; nothing has come to our notice that has caused us to believe that the representations under sub-clause (iv) and (v) above contain any material misstatement. v The company has not declared or paid any dividend during the year . INDEPENDENT AUDITOR'S REPORT 04 6 For Gupta Vaish& Co. Chartered Accountants Registration Number: 005087C Rajendra Gupta (PARTNER) Membership Number: 073250 UDIN NO. 22073250AJUAEN2274 Place: Kanpur Date: 28-05-2022
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KHANDELWAL EXTRACTIONS LIMITED

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ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT
Re : KHANDELWAL EXTRACTIONS LIMITED
on the financial statements for the year ended 31The Annexure referred to in Independent Auditors' Report to the members of the Company st March, 2022, we report that: viii According to the information and explanations given to us, there is no transactions which have not been recorded in the books of account but have been surrendered or disclosed as income
i. In respect of its Property ,Plant and Equipment and Intangible Assets : during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
(a) (A)The Company has maintained proper records showing full particulars, including ix(a) In our opinion and according to the information and explanations given to us, the Company has
quantitative details and situation of property, plant and equipment. not defaulted in repayment of loans or other borrowings or in the payment of interest thereon
3(i)(a)(B) of Companies (Auditor's Report ) Order, 2020 are not applicable to company. (B) The company does not have any intangible assets and therefore provision of para to any lender.
(b) All the property, plant and equipment have not been physically verified by the management (b) According to the information and explanations given to us, the company has not been declared
during the year but there is a regular programme of verification which, in our opinion, is as willful defaulter by any bank or financial institution or other lender.
reasonable having regard to the size of the Company and the nature of its property , plant and (c) In our opinion and according to the information and explanations given to us, the company has
equipment. No material discrepancies were noticed on such verification. not obtained any term loan during the year .Therefore , the provisions of paragraph 3 (ix) (c )
(c) According to the information and explanation given to us and on the basis of our examination of of the Companies (Auditor's Report ) order, 2020, are not applicable to the company.
the records of the company the title deeds of all the immovable properties disclosed in the (d) According to the information and explanations given to us , and the procedure performed by us,
financial statements are held in the name of the company except details below : and on the overall examination of the financial statements of the company , we report that no
Relevant Description Gross Title Whether title deed Property Reason funds raised on short term basis have been used for long term purposes by the company.
line item of item of Carrying deeds holder is promotor held for not (e) According to the information and explanations given to us and procedure performed by us , the
balance in the sheet property value held in name the Promotor/Directors director or relative of which since date being held name of in the provisions of paragraph 3 (ix)(e) and 3(ix) (f) of the Companies (Auditor's Report ) order, company does not have any subsidiary, joint venture or associate companies and therefore the
of or Employees of the 2020, are not applicable to the company
Promotor/Directors company x(a) The Company did not raise any money by way of initial public offer or further public offer
Property Freehold Rs. 1.55 lacs Khand NO Since The (including debt instruments) during the year. Accordingly, provisions of paragraph 3(x)(a) of
plant and equipment Land Extractielwal ons 1981 registrationprocess of transfer of (b) According to the information and explanations given to us and on our examination of the the Companies (Auditor's Report ) order, 2020, are not applicable to the company.
Private name is in records of the Company, the Company has not made any preferential allotment or private
Limited progress as on 31.03.2022 year.Therefore provisions of paragraph 3(x)(b) of the Companies (Auditor's Report ) order, placement of shares or fully , partly or optionally convertible debentures during the
2020, are not applicable to the company.
(d) According to the information and explanations given to us , the company has not revalued its xi(a) According to the information and explanations given to us, no fraud by the Company or on the
property ,plant and equipments (including right of use assets) or intangible assets or both Company has been noticed or reported during the course of our audit.
during the year . (b) No report under sub- section (12) of section 143 of the Companies Act, has been filed by
(e) According to the information and explanations given to us , the company does not hold any made thereunder . Therefore provisions of paragraph 3(i) (e) of the Companies (Auditor's benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules Rules, 2014 with the Central Government .auditors in Form ADT- 4 as prescribed under rule 13 of Companies (Audit and Auditors )
Report ) Order, 2020 are not applicable to the company. (c) As represented to us by the management , there are no Whistle blower complaints received by
ii (a) In respect of its Inventories: the company during the year .
As explained to us, inventories have been physically verified during the year by the xii In our opinion and according to the information and explanations given to us , the company is
management at reasonable intervals and in our opinion , the coverage and procedure of such not a Nidhi Company. Accordingly , the provisions of paragraph 3 (xii) of the Companies
verification is appropriate. The discrepancies noticed on verification between physical stocks (Auditors' Report ) order , 2020 , are not applicable to the company.
and the book records were not of 10% or more in aggregate for each class of inventory. xiii According to the information and explanations given to us and based on our examination of the
ii(b) The company has not been sanctioned working capital limits in excess of five crores rupees records of the Company, transaction with the related parties are in compliance with section 177
during the year in aggregate from banks and financial institutions on the basis of security of and 188 of the Act where applicable and details of such transactions have been disclosed in the
current assets. Therefore provisions of paragraph 3(ii)(b) of Companies (Auditor's Report ) financial statements as required by the applicable accounting standards.
Order, 2020 are not applicable to company. xiv(a)In our opinion and based on our examination, the company has an internal audit system
iii (a) In respect of loans secured or unsecured , investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured to companies, commensurate with the size and nature of its business.
explanations given to us :firms, Limited Liability partnerships or any other parties, according to the information and (b) We have considered the internal audit reports of the company issued till date, for the period under audit.
The company has not made investments in, provided any guarantee or security or granted any xv According to the information and explanations given to us , in our opinion during the year the
loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited company has not entered into any non-cash transactions with its directors or persons
Liability Partnerships or any other parties during the year and therefore provisions of connected with its directors and hence provisions of section 192 of the Companies Act, 2013
paragraph3(iii)(a) to 3 (iii)(e) of Companies (Auditor's Report ) Order, 2020 are not are not applicable to the company.
applicable to company. xvi(a) The Company is not required to be registered under section 45 –IA of the Reserve Bank of
(f) The company has not granted loans or advances in the nature of loans to promoters, related India Act 1934.
parties as defined in clause( 76) of section 2 of the companies act 2013 which are repayable (b) The company has not conducted any Non- Banking Financial or Housing Finance activities
on demand or without specifying any terms or period of repayments.Therefore provisions of without a valid Certificate of Registration (CoR) from Reserve Bank of India.
paragraph 3 (iii)(f) of Companies (Auditor's Report) Order, 2020 are not applicable to
iv. In our opinion and according to the information and explanation given to us, the Company has company. (c) The company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Therefore provisions of paragraph 3 (xvi)(c) of the Companies
complied with the provisions of section 185 and 186 of the Companies Act, with respect to the (Auditors' Report ) order , 2020 , are not applicable to the company.
loans and investments made. (d) According to the information and explanations given to us , the company's group does not
v In our opinion and according to information and explanations given to us, the company has not have more than one Core Investment Company (CIC) as part of the group.
accepted any deposits within the provisions of sections 73 to 76 or any other relevant xvii The company has incurred cash losses only during the immediately preceding financial year
provisions of the Companies Act , 2013 and the rules made thereunder . Therefore , the but has not incurred cash losses during the current financial year .
provisions of paragraph 3 (v) of the Companies (Auditor's Report ) order, 2020, are not xviii There has been no resignation of the statutory auditors during the year and therefore the
applicable to the company. provisions of paragraph 3(xviii) of the Companies (Auditors' Report ) order , 2020 , are not
vi The Central Government has not prescribed maintenance of cost records under sub-section applicable to the company.
(1) of section 148 the Companies Act, 2013 for the products of the company. xix According to the information and explanations given to us and on the basis of the financial
(a) The Company is generally regular in depositing with appropriate authorities undisputed vii According to the information and explanations given to us, in respect of statutory and other dues: liabilities, other information accompanying the financial statements, our knowledge of the ratios, ageing and expected dates of realization of financial assets and payment of financial
statutory dues including goods and services tax. provident fund, employees' state insurance, Board of Directors and management plans and based on our examination of the evidence
income tax, sales tax, services tax, duty of custom , duty of excise, value added tax ,cess and supporting the assumptions, nothing has come to our attention, which causes us to believe that
any other statutory dues applicable to it. any material uncertainty exists as on the date of the audit report that company is not capable of
According to the information and explanations given to us, no undisputed amounts payable in meeting its liabilities existing at the date of balance sheet as and when they fall due within a
respect of goods and services tax , Provident fund, Employees State Insurance. Income Tax, period of one year from the balance sheet date. We, however, state that this is not an
other Statutory dues were in arrear as at 31Sales Tax, Services Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and any st March, 2022 for a period more than six months on the facts up to the date of the audit report and we neither give any guarantee nor any assurance as to the future viability of the company. We further state that our reporting is based
from the date they became payable. assurance that all liabilities falling due within a period of one year from the balance sheet date,
(b) According to the records of the company, goods and services tax, provident fund, Employees will get discharged by the company as and when they fall due.
State Insurance, Income Tax, Sales Tax, Services Tax, Duty of Custom, Duty of Excise, Value xx(a) According to the information and explanations given to us and based on such audit
Added Tax, Cess which have not been deposited on account of any dispute, are as follows : procedures we have considered reasonable and appropriate in the circumstances , section
135 of companies act is not applicable to the company .Therefore provisions of paragraph 3
Name of the Nature of Amount Period to Forum where (xx)(a ) of the Companies (Auditors' Report ) order , 2020 , are not applicable to the company.
Statute the Dues which the dispute is xx(b) In view of our comments in paragraph 3(xx)(a) above , the provisions of paragraph 3 (xx)(b)
amount pending of the Companies (Auditors' Report ) order , 2020 , are not applicable to the company.
Relates
sales/vat ActCentral VAT (U.P) Rs. 16.71 lacs 01-04-2011 to 31-03-2012 Commissioner Additional For Gupta Vaish& Co. Chartered Accountants
2Gr-2 (Appeal) [nd] Commercial Registration Number: 005087C
Tax, Kanpur. Rajendra Gupta (PARTNER)
Place: KanpurDate: 28-05-2022 Membership Number: 073250
UDIN NO. 22073250AJUAEN2274
07
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KHANDELWAL EXTRACTIONS LIMITED

ANNEXURE –“B” TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF KHANDELWAL EXTRACTIONS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of KHANDELWAL EXTRACTIONS LIMITED (“the Company”) as of 31 March 2022 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over

Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2022, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Gupta Vaish& Co. Chartered Accountants Registration Number: 005087C

Rajendra Gupta (PARTNER) Place: KanpurDate: 28-05-2022 Membership Number: 073250 UDIN NO. 22073250AJUAEN2274

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KHANDELWAL EXTRACTIONS LIMITED

		KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
09 BALANCE SHEET AS AT 31st MARCH, 2022 As At As At NOTES 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs ASSETS Non-Current Assets Property, Plant and Equipment 2 13.02 85.18 Investment Property 3 45.97 - Deferred Tax Assets (net) 13 43.08 51.08 102.07 136.26 Current Assets Inventories 4 - 1.81 Financial Assets: Trade Receivable 5 0.09 - Cash and Cash equivalents 6 187.56 62.92 Loans 7 55.00 69.00 Other Financial Assets 8 4.14 4.22 Current Tax Assets (Net) 9 - 1.32 Other Current Assets 10 47.82 71.04 294.61 210.31 TOTAL 396.68 346.57 EQUITY AND LIABILITIES Equity Equity Share Capital 11 88.01 88.01 Other Equity 12 120.61 90.90 208.62 178.91 LIABILITIES Current Liabilities Financial Liabilities: Borrowings 15 120.00 120.00 Trade Payables 14 6.37 6.41 Other Financial Liabilities 6.48 6.66 Other Current Liabilities: Other Current Liabilities 16 54.76 34.59 Current Tax Liabilities (Net) 0.45 - 188.06 167.66 TOTAL 396.68 346.57 Accounting policies and notes on financial statements 1 to 39 As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
	09 BALANCE SHEET AS AT 31st MARCH, 2022 As At As At NOTES 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs ASSETS Non-Current Assets Property, Plant and Equipment 2 13.02 85.18 Investment Property 3 45.97 - Deferred Tax Assets (net) 13 43.08 51.08 102.07 136.26 Current Assets Inventories 4 - 1.81 Financial Assets: Trade Receivable 5 0.09 - Cash and Cash equivalents 6 187.56 62.92 Loans 7 55.00 69.00 Other Financial Assets 8 4.14 4.22 Current Tax Assets (Net) 9 - 1.32 Other Current Assets 10 47.82 71.04 294.61 210.31 TOTAL 396.68 346.57 EQUITY AND LIABILITIES Equity Equity Share Capital 11 88.01 88.01 Other Equity 12 120.61 90.90 208.62 178.91 LIABILITIES Current Liabilities Financial Liabilities: Borrowings 15 120.00 120.00 Trade Payables 14 6.37 6.41 Other Financial Liabilities 6.48 6.66 Other Current Liabilities: Other Current Liabilities 16 54.76 34.59 Current Tax Liabilities (Net) 0.45 - 188.06 167.66 TOTAL 396.68 346.57 Accounting policies and notes on financial statements 1 to 39 As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
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		KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
10 STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH, 2022 Year Ended Year Ended Notes 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs INCOME Revenue from operations 17 0.90 - Other Income 18 46.41 17.29 Profit on sale of Plant & Machinery 106.85 - Total Income 154.16 17.29 EXPENSES: Cost of Materials Consumed (Ricebran) - - Changes in inventories of finished stock 19 0.99 - Employees Benefits Expense 20 28.52 25.87 Finance cost 21 7.20 7.20 Depreciation and amortization expense 3.01 5.12 Other Expenses 22 71.66 14.80 Total Expenses 111.38 52.99 Profit/ (Loss) before Tax 42.78 (35.70) Tax Expenses: Current Tax 10.20 - Tax Adjustment of earlier years - 2.70 Deferred Tax 2.87 (13.13) Profit/ (Loss) for the period 29.71 (25.27) Other Comprehensive Income - Total Comprehensive Income for the year 29.71 (25.27) Earning per equity share of Rs 10 each Basic and Diluted 23 3.49 (2.97) Accounting policies and notes on financial statements 1 to 39 - As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
	10 STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH, 2022 Year Ended Year Ended Notes 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs INCOME Revenue from operations 17 0.90 - Other Income 18 46.41 17.29 Profit on sale of Plant & Machinery 106.85 - Total Income 154.16 17.29 EXPENSES: Cost of Materials Consumed (Ricebran) - - Changes in inventories of finished stock 19 0.99 - Employees Benefits Expense 20 28.52 25.87 Finance cost 21 7.20 7.20 Depreciation and amortization expense 3.01 5.12 Other Expenses 22 71.66 14.80 Total Expenses 111.38 52.99 Profit/ (Loss) before Tax 42.78 (35.70) Tax Expenses: Current Tax 10.20 - Tax Adjustment of earlier years - 2.70 Deferred Tax 2.87 (13.13) Profit/ (Loss) for the period 29.71 (25.27) Other Comprehensive Income - Total Comprehensive Income for the year 29.71 (25.27) Earning per equity share of Rs 10 each Basic and Diluted 23 3.49 (2.97) Accounting policies and notes on financial statements 1 to 39 - As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
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KHANDELWAL EXTRACTIONS LIMITED

		KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
11 CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2022 2021-22 2020-21 A CASH FLOWS FROM OPERATING ACTIVITIES Rs. In Lacs Rs. In Lacs Net Profit Before Taxation 42.78 (35.70) Adjustments for: Interest Income (17.39) (16.56) Rent Income (29.00) - Dividend Income (0.02) - Profit on sale of Investment - (0.72) Profit on sale of Fixed Assets (106.85) - Finance Cost 7.20 7.20 Depreciation 3.01 (143.05) 5.12 (4.96) Operating Profit before Working Capital changes (100.27) (40.66) Adjustments for: (Increase)/Decrease in Trade & Other Receivables 22.67 0.92 (Increase)/Decrease in Inventories 1.81 - Increase/(Decrease) in Trade & Other Payables 19.97 44.45 14.63 15.55 Cash generated from operations (55.82) (25.11) Adjusted for: Income Tax Paid (Net) (1.86) - Net Cash from Operating Activities (53.96) (25.11) B CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (0.33) - Sale of Fixed Assets 130.35 4.38 Interest Received(Net of TDS) 15.66 15.24 Rent Received(Net of TDS) 26.10 - Dividend Received 0.02 - Recovery of Loan 14.00 10.00 Net Cash from Investing Activities 185.80 29.62 C CASH FLOW FROM FINANCING ACTIVITIES Sale of Investment - 10.72 Interest paid including Dividend and Dividend Tax (7.20) (7.20) Net Cash used in Financing Activities (7.20) 3.52 Net Increase/ (Decrease) in Cash & Cash equivalents 124.64 8.03 (A)+(B)+(C) Opening Balance of Cash & Cash Equivalents 62.92 54.89 Closing Balance of Cash & Cash Equivalents 187.56 62.92 As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
	11 CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2022 2021-22 2020-21 A CASH FLOWS FROM OPERATING ACTIVITIES Rs. In Lacs Rs. In Lacs Net Profit Before Taxation 42.78 (35.70) Adjustments for: Interest Income (17.39) (16.56) Rent Income (29.00) - Dividend Income (0.02) - Profit on sale of Investment - (0.72) Profit on sale of Fixed Assets (106.85) - Finance Cost 7.20 7.20 Depreciation 3.01 (143.05) 5.12 (4.96) Operating Profit before Working Capital changes (100.27) (40.66) Adjustments for: (Increase)/Decrease in Trade & Other Receivables 22.67 0.92 (Increase)/Decrease in Inventories 1.81 - Increase/(Decrease) in Trade & Other Payables 19.97 44.45 14.63 15.55 Cash generated from operations (55.82) (25.11) Adjusted for: Income Tax Paid (Net) (1.86) - Net Cash from Operating Activities (53.96) (25.11) B CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (0.33) - Sale of Fixed Assets 130.35 4.38 Interest Received(Net of TDS) 15.66 15.24 Rent Received(Net of TDS) 26.10 - Dividend Received 0.02 - Recovery of Loan 14.00 10.00 Net Cash from Investing Activities 185.80 29.62 C CASH FLOW FROM FINANCING ACTIVITIES Sale of Investment - 10.72 Interest paid including Dividend and Dividend Tax (7.20) (7.20) Net Cash used in Financing Activities (7.20) 3.52 Net Increase/ (Decrease) in Cash & Cash equivalents 124.64 8.03 (A)+(B)+(C) Opening Balance of Cash & Cash Equivalents 62.92 54.89 Closing Balance of Cash & Cash Equivalents 187.56 62.92 As per our report of even date attached Membership No. 073250 For Gupta Vaish & Co. Chartered Accountants Registration No. 005087C RAJENDRA GUPTA MOHIT SRIVASTAVA (Partner) (Company Secretary) DINESH KHANDELWAL K.N. KHANDELWAL (Director- Finance & CFO) V.N. KHANDELWAL ASHOK GUPTA (Whole Time Director) (Independent Director) Place: Kanpur Date: 28.05.2022 (Chairperson) DIN : 00161831 DIN : 00037250 DIN : 00161893 DIN : 00135288 DIN : A63322
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KHANDELWAL EXTRACTIONS LIMITED

STATEMENT OF CHANGES IN EQUITY

Statement of changes in equity for the year ended 31st March,2022

A. Equity Share Capital	(Rs. in Lacs) Changes in equity share capital during the year 2021-22 Balance at the end of the Reporting Period i.e. 31st March, 2022 - 88.01	(Rs. in Lacs) Changes in equity share capital during the year 2021-22 Balance at the end of the Reporting Period i.e. 31st March, 2022 - 88.01	(Rs. in Lacs) Changes in equity share capital during the year 2021-22 Balance at the end of the Reporting Period i.e. 31st March, 2022 - 88.01	(Rs. in Lacs) Changes in equity share capital during the year 2021-22 Balance at the end of the Reporting Period i.e. 31st March, 2022 - 88.01	(Rs. in Lacs) Changes in equity share capital during the year 2021-22 Balance at the end of the Reporting Period i.e. 31st March, 2022 - 88.01
Balance at the beginning of the Reporting Period i.e. 01st April, 2021	Changes in equity share capital during the year 2021-22	Balance at the end of the Reporting Period i.e. 31st March, 2022
88.01	-	88.01
	Capital Redemption Reserve	General Reserve	Retained Earnings	Other Comprehensive Income	Total
As on 31st March, 2021
Balance as at 1st April, 2021	50.00	96.25	(55.35)	-	90.90
Profit/(Loss) for the year	-	-	29.71	-	29.71
Total Comprehensive Income for theyear	-	-	-	-	-
Balance as at 31st March, 2022	50.00	96.25	(25.64)	-	120.61

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KHANDELWAL EXTRACTIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2022

Note 1: SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

Khandelwal Extractions Limited (the “Company”) is a company d o m i c i l e d i n I n d i a a n d l i m i t e d b y s h a r e s ( C I N : L24241UP1981PLC005282).The shares of the company are publicly traded on the BSE Limited. The address of the company's registered office is 51/47, 3rd floor, Kesharwani Bhawan, Nayaganj, Kanpur208001. The company is primarily engaged in the manufacturing and sale of solvent oil.

1.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind-AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

1.2 Current and non-current Classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when:

• (a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;

• (b) it holds the asset primarily for the purpose of trading;

• (c) it expects to realise the asset within twelve months after the reporting period; or

• (d) the asset is cash or a cash equivalent (as defined in Ind AS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

An entity shall classify a liability as current when:

• (a) it expects to settle the liability in its normal operating cycle;

• (b) it holds the liability primarily for the purpose of trading;

• (c) the liability is due to be settled within twelve months after the reporting period; or

• (d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

1.3 Revenue recognition

1.3.1 Sales revenue

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

• (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

• (b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• (c) the amount of revenue can be measured reliably;

• (d) it is probable that the economic benefits associated with the transaction will flow to the entity; and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes, levies or duties collected on behalf of the government/ other statutory bodies. The taxes, levies or duties are not considered to be received by the Company on its own account and are excluded from net revenue. 1.3.2 Interest Interest income is recognised using the Effective Interest Method. 1.3.3 Dividend Dividend income from investments is recognised when the rights to receive payment is established. 1.3.4 Other Claims Other claims (including interest on delayed realization from

customers) are accounted for, when there is certainty of realisation.

1.4 Property, Plant and Equipment (PPE)

Land is carried at historical cost. Historical cost includes expenditure which are directly attributable to the acquisition of the land like, rehabilitation expenses, resettlement cost etc.

After recognition, an item of all other Property, plant and equipment are carried at its cost less any accumulated depreciation and any accumulated impairment losses under Cost Model. The cost of an item of property, plant and equipment comprises:

• (a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

• (b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

• (c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item depreciated separately. However, significant part(s) of an item of PPE having same useful life and depreciation method are grouped together in determining the depreciation charge.

Costs of the day to-day servicing described as for the 'repairs and maintenance' are recognised in the statement of profit and loss in the period in which the same are incurred.

Subsequent Measurement

Subsequent cost of replacing parts of an item of property, plant and equipment are recognised in the carrying amount of the item, if it is probable that future economic benefits associated with the item will flow to the Company; and the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognised in accordance with the derecognition policy mentioned below.

When major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment as a replacement if it is probable that future economic benefits associated with the item will flow to the Company; and the cost of the item can be measured reliably. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is derecognised.

An item of Property, plant or equipment is derecognised upon disposal or when no future economic benefits are expected from the continued use of assets. Any gain or loss arising on such de recognition of an item of property plant and equipment is recognised in profit and Loss.

Depreciation

Depreciation on property, plant and equipment, except freehold land, is provided on straight line method based on useful life specified in schedule II to the Companies Act, 2013.The residual value of Property, plant and equipment is considered as 5% of the original cost of the asset.

Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference to the month of addition / disposal.

Capital Expenses incurred by the company on construction/ development of certain assets which are essential for production, supply of goods or for the access to any existing Assets of the company are recognised as Enabling Assets under Property, Plant and Equipment.

Transition to Ind AS

The company elected to continue with the carrying value as per cost model (for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS (01-04-2017) , measured as per the previous GAAP.

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KHANDELWAL EXTRACTIONS LIMITED

1.5 Impairment of Assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial Instruments , which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables.

The Company assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. An asset's recoverable amount is the higher of the asset's or cash-generating unit's value in use and its fair value less costs of disposal, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs.

1.6 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1.6.1 Financial assets 1.6.1 Initial recognition and measurement

All financial assets are recognised initially at fair value, in the case of financial assets not recorded at fair value through profit or loss, plus transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

1.6.2 Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortised cost

· Debt instruments at fair value through other comprehensive income (FVTOCI) · Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL) · Equity instruments measured at fair value through other comprehensive income (FVTOCI) 1.6.3 Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial Instruments , which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables.

The Company assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. An asset's recoverable amount is the higher of the asset's or cash-generating unit's value in use and its fair value less costs of disposal, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs. 1.6.4 Financial liabilities 1.6.4.1 Initial recognition and measurement The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

1.6.4.2 Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

1.6.4.3 Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

1.6.5 Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.7 Borrowing Costs

Borrowing costs are expensed as incurred except where they are directly attributable to the acquisition, construction or production of qualifying assets i.e. the assets that necessarily takes substantial period of time to get ready for intended use, in which case they are capitalised as part of the cost of those asset up to the date when the qualifying asset is ready for its intended use.

1.8 Tax Expenses The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive Income or equity.

Current Tax: Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

Deferred Tax: Deferred Tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. 1.9 Employee Benefits (i) Short term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

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KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
15 (ii) Defined contribution plans Obligations for contributions to defined contribution plans are expensed as the related service is provided. The company has following defined contribution plans: a) Provident fund b)Superannuation scheme (iii) Defined benefit plans The company net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. The company has following defined benefit plans: a) Gratuity The company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary and contributes to the gratuity fund of the company. The contributions made are recognized as plan assets. The defined benefit obligation as reduced by fair value of plan assets is recognized in the Balance Sheet. Re-measurements are recognized in the Other Comprehensive Income, net of tax in the year in which they arise. 1.10 Foreign Currency Transactions The company's reported currency and the functional currency for majority of its operations is in Indian Rupees (INR) being the principal currency of the economic environment in which it operates. Transactions in foreign currencies are converted into the reported currency of the company using the exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies outstanding at the end of the reporting period are translated at the exchange rates prevailing as at the end of reporting period. Exchange differences arising on the settlement of monetary assets and liabilities or on translating monetary assets and liabilities at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in statement of profit and loss in the period in which they arise. Non-monetary items denominated in foreign currency are valued at the exchange rates prevailing at the transaction date. 1.11 Inventories I) Inventories are valued as follows: Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale. ii) Work-in-progress, finished goods and traded goods have been valued as per the principles and basis consistently followed. iii) Provision for obsolete/ old inventories is made, wherever required. 1.12 Cash and Cash Equivalent Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. 1.13 Provisions, Contingent Liabilities &Contingent Assets Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within the control of the company, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Contingent Assets are not recognised in the financial statements. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate. 1.14 Earnings per share Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per shares is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per shares and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. 1.15 Judgements, Estimates and Assumptions The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of financial statements and the amount of revenue and expenses during the reported period. Applications of accounting policies involving complex and subjective judgements and the use of assumptions in these financial statements have been disclosed. Accounting estimates could change from period to period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate are recognised in the period in which the estimates are revised and, if material, their effects are disclosed in the Raw materials, packing materials, stores and spares Lower of cost and net realisable value. Cost is determined by using First in First Out (FIFO) method . Materials and other items held for use in the production of inventories are not written down below costs, if finished goods in which they will be incorporated are expected to be sold at or above cost Work-in-progress, finished goods and traded goods Lower of cost and net realisable value. Cost includes direct materials, labour and a proportion of manufacturing overheads. Cost of finished goods includes excise duty,wherever applicable. Waste At net realisable value
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When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

The company has following defined benefit plans:

a) Gratuity

The company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary and contributes to the gratuity fund of the company. The contributions made are recognized as plan assets. The defined benefit obligation as reduced by fair value of plan assets is recognized in the Balance Sheet. Re-measurements are recognized in the Other Comprehensive Income, net of tax in the year in which they arise.

1.10 Foreign Currency Transactions

The company's reported currency and the functional currency for majority of its operations is in Indian Rupees (INR) being the principal currency of the economic environment in which it operates.

Transactions in foreign currencies are converted into the reported currency of the company using the exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies outstanding at the end of the reporting period are translated at the exchange rates prevailing as at the end of reporting period. Exchange differences arising on the settlement of monetary assets and liabilities or on translating monetary assets and liabilities at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in statement of profit and loss in the period in which they arise.

Non-monetary items denominated in foreign currency are valued at the exchange rates prevailing at the transaction date.

1.11 Inventories

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KHANDELWAL EXTRACTIONS LIMITED

notes to the financial statements.

1.15.1 Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements:

1.15.1.1 Formulation of Accounting Policies

Accounting policies are formulated in a manner that result in financial statements containing relevant and reliable information about the transactions, other events and conditions to which they apply. Those policies need not be applied when the effect of applying them is immaterial. In the absence of an Ind AS that specifically applies to a transaction, other event or condition, management has used its judgement in developing and applying an accounting policy that results in information that is:

• a) relevant to the economic decision-making needs of users and b) reliable in that financial statements:

• (i) represent faithfully the financial position, financial performance and cash flows of the entity; (ii) reflect the economic substance of transactions, other events and conditions, and not merely the legal form; (iii) are neutral, i.e. free from bias; (iv) are prudent; and (v) are complete in all material respects on a consistent basis

• In making the judgement management refers to, and considers the applicability of, the following sources in descending order:

• (a) the requirements in Ind ASs dealing with similar and related issues; and (b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework.

In making the judgement, management considers the most recent pronouncements of International Accounting Standards Board and in absence thereof those of the other standard-setting bodies that use a similar conceptual framework to develop accounting standards, other accounting literature and accepted industry practices, to the extent that these do not conflict with the sources in above paragraph.

1.15.1.2 Materiality

Ind AS applies to items which are material. Management uses judgment in deciding whether individual items or groups of item are material in the financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor is whether omission or misstatement could individually or collectively influence the economic decisions that users make on the basis of the financial statements. Management also uses judgement of materiality for determining the compliance requirement of the Ind AS. In particular circumstances either the nature or the amount of an item or aggregate of items could be the determining factor. Further an entity may also be required to present separately immaterial items when required by law.

1.15.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the

assumptions when they occur.

1.15.2.1 Impairment of non-financial assets

There is an indication of impairment if, the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. Company considers individual PPE as separate cash generating units for the purpose of test of impairment. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

1.15.2.2 Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

1.15.2.3 Defined benefit plans The cost of the defined benefit gratuity plan and other postemployment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

1.15.2.4 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

1.16 Abbreviation used:

	a.	CGU	Cash generating unit
	b. c.	DCF FVTOCI	Discounted Cash Flow Fair value through Other Comprehensive Income
	d.	FVTPL	Fair value through Profit & Loss
	e.	GAAP	Generally accepted accounting principal
	f. g. h. i.	Ind AS OCI P&L PPE	Indian Accounting Standards Other Comprehensive Income Profit and Loss Property, Plant and Equipment

16

KHANDELWAL EXTRACTIONS LIMITED

NON-CURRENT ASSET	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block	S AND EQUIPMENT Rs. In lacs Opening Balance as on 01.04.2020 Additions made during the year Deletion made during the year Balance as on 31.03.2021 Additions made during the year Deletions/Adju stment made during the year Balance as on 31.03.2022 5.46 - - 5.46 - - 5.46 103.01 - - 103.01 - 82.59 20.42 192.94 - 4.37 188.57 0.33 183.96 4.94 1.57 - - 1.57 - - 1.57 15.34 - - 15.34 - - 15.34 318.32 - 4.37 313.95 0.33 266.55 47.73 Upto 31.03.2020 Depreciation for the year Adjustments during the year Upto 31.03.2021 Depreciation for the year Adjustments during the year Upto 31.03.2022 - - - - - - - 52.70 1.97 - 54.67 0.04 35.31 19.40 162.54 1.68 - 164.22 0.20 160.46 3.96 1.56 - - 1.56 - - 1.56 6.85 1.47 - 8.32 1.47 - 9.79 223.65 5.12 - 228.77 1.71 195.77 34.71 Gross Block Depreciation Block
2. PROPERTY, PLANT
Particulars	Gross Block
	Opening Balance as on 01.04.2020	Additions made during the year	Deletion made during the year	Balance as on 31.03.2021	Additions made during the year	Deletions/Adju stment made during the year	Balance as on 31.03.2022
Tangible Assets Freehold Land Factory Buildings Plant and equipments Furniture and Fixtures Vehicles	5.46 103.01 192.94 1.57 15.34	- - - - -	- - 4.37 - -	5.46 103.01 188.57 1.57 15.34	- - 0.33 - -	- 82.59 183.96 - -	5.46 20.42 4.94 1.57 15.34
TOTAL	318.32	-	4.37	313.95	0.33	266.55	47.73
Particulars	Depreciation Block
	Upto 31.03.2020	Depreciation for the year	Adjustments during the year	**Upto 31.03.2021 **	Depreciation for the year	Adjustments during the year	Upto 31.03.2022
Tangible Assets Freehold Land Factory Buildings Plant and equipments Furniture and Fixtures Vehicles	- 52.70 162.54 1.56 6.85	- 1.97 1.68 - 1.47	- - - - -	- 54.67 164.22 1.56 8.32	- 0.04 0.20 - 1.47	- 35.31 160.46 - -	- 19.40 3.96 1.56 9.79
TOTAL	223.65	5.12	-	228.77	1.71	195.77	34.71

Particulars	Net Block	Net Block
	As at 31st March 2022	As at 31st March 2021
Tangible Assets Freehold Land Factory Buildings Plant and equipments Furniture and Fixtures Vehicles	5.46 1.02 0.98 0.01 5.55	5.46 48.34 24.35 0.01 7.02
TOTAL	13.02	85.18

3. INVESTMENT PROPERTY

	Gross Block	Gross Block	Gross Block	Depreciation Block	Depreciation Block	Depreciation Block	Depreciation Block	Net Block
Particulars	Opening Balance as on 01.04.2021	Adjustment made during theyear	Balance as on 31.03.2022	**Upto 31.03.2021 **	Depreciation for the year	Adjustments during the year	Upto 31.03.2022	As at 31.03.2022
Investment Property	-	82.59	82.59	-	1.30	35.31	36.61	45.97

Note: The title deed of immovable property included in property plant & equipment are held in the name of company except the following

Relevant line item in the balance sheet	Description of item of property	Gross Carrying value	Title deeds held in the name of	Whether title deed holder is promotor director or relative of Promotor/Direct ors or Employees of Promotor/Direct ors	Property held since which date	Reason for not being held in the name of the company
Property plant and equipment	Freehold Land	Rs.1.55 lacs	Khandelwal Extractions Private Limited	No	05.05.1981	The regisitration process of transfer of name is in progress as on 31.03.2022

Notes:

(A) The Fair value of investment property is not reliably measurable on continuing basis as the market for comparable properties is inactive.

(B) The estimated fair value in accordance with circle rate fixed by local government authorities is Rs. 625.28 Lacs. However circle rate approved by local authorties.

17

KHANDELWAL EXTRACTIONS LIMITED

4 5	As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs CURRENT ASSETS INVENTORIES: (Valued at lower of cost and net realisable value) Finished Goods - 0.99 Consumable Stores & Spares - 0.82 - 1.81 TRADE RECEIVABLES: Unsecured, considered good 0.09 - 0.09 -	As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs CURRENT ASSETS INVENTORIES: (Valued at lower of cost and net realisable value) Finished Goods - 0.99 Consumable Stores & Spares - 0.82 - 1.81 TRADE RECEIVABLES: Unsecured, considered good 0.09 - 0.09 -
		1.81
		-
		-

			KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
18 As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs CURRENT ASSETS 4 INVENTORIES: (Valued at lower of cost and net realisable value) Finished Goods - 0.99 Consumable Stores & Spares - 0.82 - 1.81 5 TRADE RECEIVABLES: Unsecured, considered good 0.09 - 0.09 - Note: Figures in brackets are in respect of previous year . 6 CASH & BANK BALANCES : Balance In Current accounts Other Bank Balances (Fixed Deposits) Cash on hands 7 LOANS: Unsecured Considered Goods 8 OTHER FINANCIAL ASSETS: Security Deposit 9 CURRENT TAX ASSETS: Income Tax Advance 10 OTHER CURRENT ASSETS: Vat Recoverable Vat Disputed Tax Deposited GST Recoverable Interest Receivables Income Tax recoverable Other Advances 14.85 172.42 0.29 187.56 55.00 55.00 4.14 4.14 - - 5.76 3.20 34.38 3.14 0.54 0.80 47.82 12.43 50.00 0.49 62.92 69.00 69.00 4.22 4.22 1.32 1.32 30.00 3.20 33.71 1.17 1.08 1.88 71.04 Outstanding for following periods from due date ofpayments Less than 6 months 6 mon-1 year 1-2 years 2-3 years More than 3 years More than 3years A Undisputed trade receivables 1 Considered Good 0.09 - - - - - 0.09 (-) (-) (-) (-) (-) (-) (-) 2 Considered Doubtful - - - - - - - (-) (-) (-) (-) (-) (-) (-) B Disputed trade receivables 1 Considered Good - - - - - - - (-) (-) (-) (-) (-) (-) (-) 2 Considered Doubtful - - - - - - - (-) (-) (-) (-) (-) (-) (-) 0.09 - - - - 0.09 (-) (-) (-) (-) (-) (-) (-) Trade Receivables Aging Schedule Rs in Lacs Total Total Total Previous Year S.no. Particulars
				Trade Receivables		Aging Schedule
						Rs in Lacs
	S.no.	Particulars				Outstanding for following periods from due date ofpayments										Total
						Less than 6 months		6 mon-1 year	y	1-2 ears	2-3 years		More than 3 years	More than 3years
	A	Undisputed trade receivables
	1	Considered Good				0.09		-		-	-		-		-	0.09
						(-)		(-)		(-)	(-)		(-)		(-)	(-)
	2	Considered Doubtful				-		-		-	-		-		-	-
						(-)		(-)		(-)	(-)		(-)		(-)	(-)
	B	Disputed trade receivables
	1	Considered Good				-		-		-	-		-		-	-
						(-)		(-)		(-)	(-)		(-)		(-)	(-)
	2	Considered Doubtful				-		-		-	-		-		-	-
						(-)		(-)		(-)	(-)		(-)		(-)	(-)
	Total					0.09		-		-	-				-	0.09
	Total Previous Year					(-)		(-)		(-)	(-)		(-)		(-)	(-)
	18 Note: Figures in brackets are in respect of previous year . 6 CASH & BANK BALANCES : Balance In Current accounts Other Bank Balances (Fixed Deposits) Cash on hands 7 LOANS: Unsecured Considered Goods 8 OTHER FINANCIAL ASSETS: Security Deposit 9 CURRENT TAX ASSETS: Income Tax Advance 10 OTHER CURRENT ASSETS: Vat Recoverable Vat Disputed Tax Deposited GST Recoverable Interest Receivables Income Tax recoverable Other Advances									14.85 172.42 0.29 187.56 55.00 55.00 4.14 4.14 - - 5.76 3.20 34.38 3.14 0.54 0.80 47.82					12.43 50.00 0.49 62.92 69.00 69.00 4.22 4.22 1.32 1.32 30.00 3.20 33.71 1.17 1.08 1.88 71.04
					18

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
19 As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs 11 SHARE CAPITAL: AUTHORISED: 1000000 Equity Shares of Rs. 10/- each 100.00 100.00 Cumulative Redeemable Preference Shares of Rs 100/- each 40000 12% 40.00 40.00 10000 10% 10.00 10.00 50000 10.5% 50.00 50.00 200.00 200.00 ISSUED, SUBSCRIBED & PAID UP 850100 Equity Shares of Rs. 10/- each 85.01 85.01 Equity Shares Forfeiture A/c 3.00 3.00 88.01 88.01 The Reconciliation of number of shares outstanding at the beginning and end of the year: Particulars No. of Shares No. of Shares Equity Shares at the Beginning of the year 8.50 8.50 Equity Shares at the end of the year 8.50 8.50 Details Of Shareholders Holding More Than 5 % Shares Equity Shares NIL NIL No. of Shares % change during the year 35,000 - 29,650 - 42,000 - S.no. 1 2 3 Total 1,06,650 - Promoters Name Shareholding of Promoters Shares held by promoters at the end of the Year Vishwa Nath Khandelwal Dinesh Khandelwal % of total shares 4.12% 3.49% 4.94% 13% Kailash Nath Khandelwal
		19

19

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
20 12 OTHER EQUITY: a CAPITAL REDEMPTION RESERVE Balance at the beginning of the year Balance at the end of the year b GENERAL RESERVE Balance at the beginning of the year Balance at the end of the year c Other Comprehensive Income Balance at the begining of the year Add: Fair Value change on Equity instrument through Other Comprehensive Income Less: Reclassified to Statement of Profit & Loss A/c on disposal Balance at the end of the Year d Retained Earnings Balance at the beginning of the year Add: Total Comprehensive Income for the year Balance at the end of the year NOTES TO OTHER EQUITY: 12.1 Capital Redemption Reserve represents amount of Preference Capital redeemed. 12.2 General Reserve is the free reserve arising out of profit/loss earned by the Company after appropriations till date. 12.3 Retained Earnings represents the cumulative loss of the Company. NON-CURRENT LIABILITIES FINANCIAL LIABILITIES 13 DEFERRED TAX LIABILITIES (NET) Balance at the beginning of the year Charge/Credit to statement of Profit/Loss Balance at the end of the year Component of Deferred Tax Liability/Asset Deferred Tax Liability/(Asset) in relation to Property, Plant & Equipment Unabsorbed Business Losses & Depreciation MAT Credit Entitlement Note- There will be available future taxable profit against which unused tax losses and unused tax credit can be utilised As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs 50.00 50.00 50.00 50.00 96.25 96.25 96.25 96.25 - 0.72 - - - 0.72 - - (55.35) (30.08) 29.71 (25.27) (25.64) (55.35) 120.61 90.90 51.08 (40.65) (8.00) (10.43) 43.08 (51.08) 11.96 14.29 (51.36) (56.57) (3.68) (8.80) (43.08) (51.08)
		20

There will be available future taxable profit against which unused tax losses and unused tax credit can be utilised

20

KHANDELWAL EXTRACTIONS LIMITED

14	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others	CURRENT LIABILITIES FINANCIAL LIABILITIES TRADE PAYABLES To Micro Enterprises and Small Enterprises To Others As At As At 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs - - 6.37 6.41 6.37 6.41 less than 1 year 1-2 years 2-3 years More than 3 years 0.56 0.43 0.49 4.89 6.37 [0.42] [0.60] [0.50] [4.89] 6.41 MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues- MSME 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] DisputedDues-Others 0.00 0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] 0.42 0.49 4.89 6.37 [0.60] [0.50] [4.89] 6.41 Trade Payables Aging Schedule Amt. in Lacs Outstanding for following periods from due date of payments Total Previous Year [0.42] 0.56* Others
		Trade Payables Aging Schedule
					Amt. in Lacs
S.no.	Outstanding for following periods from due date of payments						Total
	less than 1 year		1-2 years	2-3 years		More than 3 years
1	0.56 Others		0.43	0.49		4.89	6.37
	[0.42]		[0.60]	[0.50]		[4.89]	6.41
2	MSME * 0.00		0.00	0.00		0.00	0.00
	[0.00]		[0.00]	[0.00]		[0.00]	[0.00]
3	DisputedDues- MSME 0.00		0.00	0.00		0.00	0.00
	[0.00]		[0.00]	[0.00]		[0.00]	[0.00]
4	DisputedDues-Others 0.00		0.00	0.00		0.00	0.00
			[0.00]	[0.00]		[0.00]	[0.00]
Total	0.56		0.42	0.49		4.89	6.37
Total	Previous Year [0.42]		[0.60]	[0.50]		[4.89]	6.41

Note: 1. Figures in Brackets are in respect of Previous Year

• 1. Based on the information available with the Company regarding the status of suppliers as defined under MSMED Act, 2006, there was no principal amount overdue and no interest was payable to the Micro, Small and Medium Enterprises on 31st March 2022 as per the terms of contract.

15 OTHER CURRENT FINANCIAL LIABILITIES Borrowings:

15	OTHER CURRENT FINANCIAL LIABILITIES Borrowings:
	Unsecured loans from related parties	120.00	120.00
	Interest Accrued and due	6.48	6.66
		126.48	126.66
16	OTHER CURRENT LIABILITIES
	Payable to related parties	44.32	30.42
	Other Payable	4.71	4.17
	Security Deposit	5.73	-
		54.76	34.59

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KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
22 Year Ended Year Ended 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs 17 REVENUE FROM OPERATIONS: (a) Sale of products 0.90 - 0.90 - 18 OTHER INCOME: Rent 29.00 - Interest Income 17.39 16.56 Dividend 0.02 - Profit on sale of investment - 0.73 Profit on sale of Assets 106.85 - 153.26 17.29 19 CHANGES IN INVENTORIES OF FINISHED GOODS: Stock at Commencement 0.99 0.99 Stock at Close - 0.99 (Increase)/Decrease 0.99 - 20 EMPLOYEE BENEFITS EXPENSE: Salaries & Wages 26.16 23.62 Contribution To Provident and Other Funds 1.83 1.69 Staff Welfare Expense 0.53 0.56 28.52 25.87 21 FINANCE COST: Interest on Borrowings 7.20 7.20 7.20 7.20 22 OTHER EXPENSES: ADMINISTRATIVE EXPENSES Rates & Taxes 3.00 3.00 Repairs to Buildings 31.36 0.72 Rent 0.30 0.30 VAT Tax 24.24 - Miscellaneous Expenses 12.55 10.60 71.45 14.62 REMUNERATION TO AUDITORS Audit Fees 0.21 0.18 0.21 0.18 71.66 14.80
		22

22

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
2021-22 2020-21 Rs. In lacs Rs. In lacs 23 EARNINGS PER SHARE: 29.71 (25.27) 8.50 8.50 3.49 (2.97) 24 25 a) Defined Contribution Plan Contribution to defined contribution plan recognised as expenses for the year 2021-22 are as under 2021-22 Rs. In lacs 2020-21 Rs. In lacs Employer's Contribution to Provident Fund 1.80 1.66 b) Defined Benefit Plan 26 V.N. Khandelwal Whole-time Director (Works) Sudhir Kumar Khandelwal Relative Dinesh Khandelwal Whole-time Director (Finance) & CFO Anil Khandelwal Relative K.N. Khandelwal Non-Executive Non-Independent Director Mohit Srivastava Company Secretary Independent Directors: Ashok Gupta Atul Bagla Anil Kamthan Rekha Kejriwal 2021-22 2020-21 Rs. In lacs Rs. In lacs Directors Sitting Fee- Non-Executive Non-Independent Director 0.11 0.11 Independent Directors 0.34 0.31 Remuneration 18.92 16.47 Unsecured Loan and Deposits Balance at the beginning of the year 120.00 120.00 Amount paid during the year - - Amount received during the year - - Balance at the end of the year 120.00 120.00 Interest Paid/ credited during the year 7.20 7.20 Net Profit available to equity shareholders (used as numerator for calculating Basic & Diluted EPS) Number of equity shares (used as denominator for calculating Basic & Diluted EPS) Basic and Diluted Earning per share of Rs. 10/- b) The following transactions were carried with persons referred above in the ordinary course of business: Balances of other Current Assets and Trade Paybles are subject to reconciliation and confirmation. Related Party Disclosures: Key Management Personnel and their relatives : Key Management Personnel: The Employees Gratuity Fund Scheme managed by L.I.C. is Defined Benefit Plan. The present value of obligation is determined based on actuarial valuation provided by L.I.C. Disclosure in terms of Ind As -19 issued by the Institute Of Chartered Accountants Of India has not been given as required details have not been provided by the Life Insurance Corporation Of India a)Related Party disclosures as required under Section 188 of The Companies Act, 2013 – (with whom transactions made)
23 Note: Related Parties relationship is as identified by the Company and relied upon by the auditors. 27 There is no manufacturing activities during the year. All the Plant and Machineries have been sold and manufacturing activities have been closed permanently. Factory building (Godowns) has been given on lease. 28The Government of India on September 20, 2019, vide the Taxation Law (Amendment ) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961, which provides domestic companies a non-reversible option to pay Corporate tax at reduced rate effective, April 1 2019, subject to certain conditions. The company is continuing to provide for income tax at old rates, based on the available unutilised minimum alternative tax credit. 29There is no impact of COVID - 19 on the financial statements . 30 Approval of Financial Statements: The Financial Statements were approved by the Board of Directors on 28.05.2022
		23

Note: Related Parties relationship is as identified by the Company and relied upon by the auditors.

27 There is no manufacturing activities during the year. All the Plant and Machineries have been sold and manufacturing activities have been closed permanently. Factory building (Godowns) has been given on lease.

• 28 The Government of India on September 20, 2019, vide the Taxation Law (Amendment ) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961, which provides domestic companies a non-reversible option to pay Corporate tax at reduced rate effective, April 1 2019, subject to certain conditions. The company is continuing to provide for income tax at old rates, based on the available unutilised minimum alternative tax credit.

• 29 There is no impact of COVID - 19 on the financial statements .

• 30 Approval of Financial Statements:

The Financial Statements were approved by the Board of Directors on 28.05.2022

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KHANDELWAL EXTRACTIONS LIMITED

31 a) Disclosure of Ratios:

Followings are the ratios as per the requirement of schedule III to the companies Act, 2013

Sl . No.	Ratio	As at 31-03-2022	As at 31-03-2021	Reason for change where change is more than 25%
1	Current ratio	1.57	1.25	Not Applicable
2	Debt equity ratio	0.58	0.67	Not Applicable
3	Debt Service Coverage Ratio	6.94	-5.96	The company’s manufacturing activities remained suspended in the year 2020-21 and had negligible income. During the year there is profit on sale of property plant and equipment and company let out its godowns so there is variance in DSCR
4	Return on Equity Ratio	14.24%	-14.12%	The company’s manufacturing activities remained suspended in the year 2020-21 and had negligible income. During the year there is profit on sale of property plant and equipment and company let out its godowns so there is variance in Return on Equityratio.
5	InventoryTurnover Ratio	NIL	NIL	Not Applicable
6	Trade Receivable Turnover Ratio	0.32%	NIL	Not Applicable
7	Trade Payable Turnover Ratio	NIL	NIL	Not Applicable
`8	Net capital turnover ratio	0.84%	NIL	There was no sale duringtheyear 2020-21.
9	Net Profit Ratio	NIL	NIL	The profit for the year is on account of profit on sale of plant and machinery otherwise there is loss.
10	Return on capital employed	23.96%	-23.98%	The company’s manufacturing activities remained suspended in the year 2020-21 and had negligible income. During the year there is profit on sale of property plant and equipment and company let out its godowns so there is variance in Return on capital employed.
11	Return on investment	Not Applicable	Not Applicable

b) FORMULAE FOR COMPUTATION OF RATIOS

Formulae for computation of ratios are as follows

Sl. No.	RATIO	FORMULAE Current Assets Current Liabilities
1	Current Ratio
2	Debt Equity Ratio	Total Debt
		Total equity Total Debt= Short term borrowing+ long term borrowings Total equity= Total shareholders fund
3	Debt Service Coverage Ratio	Earning available for debt service Interest expenses+ Lease payment +principal repayments made during the year. Earning available for debt service = Net profit after taxes+ non cash operating expenses like depreciation and other amortisation + interest +other adjustments like loss on sale of fixed assets
4	Return on Equity Ratio	Net profit after tax – preference Dividend (if any) Average Shareholder equity Shareholder equity = Assets – Liabilities Average shareholder equity = (Opening + closing )/2
5	Inventory Turnover Ratio	Cost of goods sold(cost of material consumed +purchases+ changes in inventory + manufacturing expenses) OR SALE Average inventory of finished goods , stock in process and stock in trade

24

KHANDELWAL EXTRACTIONS LIMITED

	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED	KHANDELWAL EXTRACTIONS LIMITED
25 11 8 9 6 7 Return on capital employed 10 Net Profit Ratio Trade Receivable Turnover Ratio Trade Payable Turnover Ratio Net capital turnover ratio Net credit sale Profit after tax (after exceptional items) Value of sales and services Earning before tax and interest Average trade receivable Net credit sale = gross credit sale -sales return Net credit purchase Average trade payable` Net credit purchase = Gross credit purchase- purchase return Net annual sale Vf= Final value of investment including dividend and interest Vi = Initial value of investment(Cost of investment ) Return on investment Capital employed Capital employed = Total assets – current liabilities OR Tangible net worth +total debt + deferred tax liability Vf-Vi Vi Working capital Working capital = Current assets- current liabilities 32 31.03.2022 31.03.2021 Rs. In lacs Rs. In lacs 5.21 5.21 16.71 16.71 CONTINGENT LIABILITIES: Claims against the Company not acknowledged as debts. VAT Disputed Liability Assessment Year 2011-12 of which appeal is pending with Additional Commissioner Gr- 2 (Appeal) Commercial Tax, Kanpur. 33No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. 34No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. 35The company did not enter any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. There is no outstanding balanceswith struck off companies. 36 The company did not held any Benami Properties and no proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibiton) Act, 1988 (45 of 1988) and rules made thereunder. 37The company has complied with number of layers of company. 38 The company has not entered into any scheme of arrangements and no scheme of arrangements has been approved by the Competent Authority in terms of section 230 to 237 of Companies Act, 2013. 39 Figures of previous year have been regrouped, recasted and restated to conform to the layout of the accounts for the current year.
		25

25

KHANDELWAL EXTRACTIONS LIMITED

KHANDELWAL EXTRACTIONS LIMITED

(CIN:L24241UP1981PLC005282) Regd. Office: 51/47 NayaGanj, Kanpur-208001 E-mail:kelknp@yahoo.com Website: www.khandelwalextractions.com Mobile : 9415330630 Attendance Slip I/We hereby record my/our presence at the 40th Annual General Meeting of the Company to be held on Saturday, 24th September 2022, at 4.00 P.M at 50 MIG Bungalow, W Block, Keshav Nagar, Kanpur 208014. ……………...……...….….. ……………....………...….. …..............………………………. Member's Folio No./BOID Member's/Proxy's name Member's /Proxy's Signature In Block Letters Note : Please complete the Folio No. /BOID and name, sign this Attendance Slip and hand it over at the ENTRANCE OF THE MEETING HALL. PROXY FORM

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Folio No./BOID :
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as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 40th Annual General Meeting of the
Company to be held at 50 MIG Bungalow, W Block, Keshav Nagar, Kanpur, 208014 on Saturday, 24th September, 2022 at
4.00 p.m. and at any adjournment thereof in respect of such resolutions as indicated below:
Resolution No. RESOLUTIONS Optional ( ü )
Ordinary Business For Against
1. Adoption of Audited Financial Statements & Reports of the Directors and
Auditors for the year ended 31 [st] March, 2022
2. Re-appointment of Mr. Vishwa Nath Khandelwal who retires by rotation.
3. Appointment of , M/s P.L. Tandon & Co., Chartered Accountants, Kanpur
(ICAI Registration No. 000186C) as Statutory Auditors.
Special Business/Special Resolution
4. Re-appointment of Shri Dinesh Khandelwal as Whole - time Director (Finance) &
CFO
Affix Revenue Stamp of Rs.1/-
Signed this………..day of September, 2022
Signature of shareholder……………………………………
Signature of Proxy holder(s)………………..
Note:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company not
less than 48 hours before the commencement of Meeting.
2. For the Resolutions, Explanatory Statement and Notes please refer to the Notice of the 40th Annual General Meeting.
26
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KHANDELWAL EXTRACTIONS LIMITED
27
VENUE : 50 MIG BUNGLOW, W BLOCK, KESHAV NAGAR, KANPUR - 208 014 (Near Aman Paradise)
MAP SHOWING VENUE OF ANNUAL GENERAL MEETING OF KHANDELWAL EXTRACTIONS LIMITED
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