Modi Rubber Ltd. - AGM Information 2023

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HE COMPANY T BOARD OF

BOARD OF DIRECTORS

Vinay Kumar Modi Chairman

Alok Kumar Modi Managing Director

Kanwaljit Singh Bains Independent Director

Amrit Kapur Independent Director

Umesh Kumar Khaitan Independent Director

Piya Modi Whole‐Time Director

Sanjeev Kumar Bajpai Head‐ Legal & Company Secretary

Kamal Gupta Chief Finance Officer

REGISTERED OFFICE

Modinagar‐201 204 District Ghaziabad (Uttar Pradesh) CIN: L25199UP1971 PLC003392

HEAD OFFICE

4‐7C, DDA Shopping Centre, New Friends Colony, New Delhi‐110 025

website: www.modirubberIimited.com Phone : +91‐11‐47109398 E‐mail : [email protected]

WORKS

Modinagar‐201 204 District Ghaziabad (Uttar Pradesh)

BANKER Axis Bank Ltd

STATUTORY AUDITORS

P N A M & CO. LLP 902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

SECRETARIAL AUDITORS

SANJAY GROVER & ASSOCIATES B‐88, 1stFloor, Defence Colony New Delhi ‐ 110 024

INTERNAL AUDITORS

JRA and Associates B-IS GK- Enclave-2 New Delhi‐110048

REGISTRAR & SHARE TRANSFER AGENT MAS Services Ltd. T‐34, II Floor, Okhla Industrial Area, Phase‐llnd, New Delhi 110 020 Tel (011) 26387281 , 82, 83 Fax (011) 26837286

Date Day Time Place 50th AnnualGeneralMeeting : September29th,2023 Friday 11:30 A.M. Modinagar, 201204 BookClosureDate:23thSeptember, 2023to 29th September,2023 (bothdaysinclusive)		Contents PageNo. Notice. ............................................................................2 Directors’sReport...........................................................5 ManagementDiscussionand Analysis Report ............. 12 ReportonCorporateGovernance................................. 12 IndependentAuditors' Report ......................................24 BalanceSheet ............................................................. 39 StatementofProfit&Loss ...........................................40 Cash Flow Statement....................................................42 Independent Auditors' Report (CFS) 80 Consolidated Financial Statements .............................92

MODI RUBBER LIMITED

(CIN: L25199UP1971PLC003392)

Registered Office: Modinagar-201204, Ghaziabad Uttar Pradesh, India. Head Office: 4-7C, DDA Shopping Center New Friends Colony New Delhi-110 025 Website : www.modirubberlimited.com, Email : [email protected], Phone No: +91-11-47109398

NOTICE________________

Notice is hereby given that the 50[th] Annual General Meeting of the members of Modi Rubber Limited ( “the Company”) will be held on Thursday the September 29[th] , 2023 at 11:30 AM, through Video Conference / Other Audio Visual Means, to transact the following business. The venue of the meeting shall be deemed to be the Registered Office of the Company at Modinagar-201204 (U.P) ORDINARY BUSINESSES:

To consider and adopt the audited financial statements (including the consolidated financial statements) of the Company for the financial year ended March 31, 2023 and the reports of the Board of Directors (‘the Board’) and auditor’s thereon.
To appoint a Director in place of Mr. Vinay Kumar Modi (DIN: 00274605) who has consented to retire by rotation for compliance with the requirement of Section 152 of the Companies Act, 2013, and being eligible, offers himself for reappointment.

SPECIAL BUSINESSES:

To Consider and, if thought fit, to pass the following resolution, with or without Modifications as a “Special Resolution”. To consider the continuation of Directorship of Mr Umesh Kumar Khaitan (DIN-01180359), Non-Executive Independent Director in terms of Regulation 17(1A) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 who will attain the age of Seventy-five (75) in this Financial Year and in this regard if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:
(RESOLVED THAT pursuant to Regulation 17(1A) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and other applicable provisions, if any, of the Companies Act, 2013 and Rules framed thereunder, consent of Members be and is hereby accorded to Mr. Umesh Kumar Khaitan (DIN: 01180359 ), Director of the company, to continue to hold office of Independent Director of the company till his current tenure of appointment which ends on 27[th] May 2024 notwithstanding his attaining the age of Seventy-five (75) years on December 20, 2023."

By order of the Board for Modi Rubber Limited

(Sanjeev Kumar Bajpai) Place: New Delhi Head-Legal & Company Secretary Date: 05/09/2023 Membership Number- A10110 Address: 4-7C, DDA Shopping Centre New Friends Colony, New Delhi-110025

NOTES:

1. Pursuant to the General Circular No. 10/2022 dated December 28, 2022, issued by the Ministry of Corporate Affairs (MCA) and Circular SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated January 5, 2023 issued by SEBI (hereinafter collectively referred to as “the Circulars”), companies are allowed to hold AGM through VC, without the physical presence of members at a common venue. Hence, in compliance with the Circulars, the AGM of the Company is being held through VC means (“OAVM”), without the physical presence of the Members at a common venue. In compliance with the provisions of the Companies Act, 2013 (“the Act”),

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) and MCA Circulars, the 50th Annual General Meeting (“Meeting” or “AGM”) of the Company is being held through VC / OAVM on Thursday 29th September, 2023 at 11:30 a.m. (IST). The proceedings of AGM deemed to be conducted at the Registered Office of the Company situated at Modinagar. Following is the Explanatory Statement pursuant to section 102 of the Companies Act, 2013, which sets out details relating to Special Business at the meeting, The Notice has also been hosted on the website of the Company www.modirubberlimited.com.

2. Along with the compliance of the said Circulars, the Company has also published a public notice by way of an advertisement in Newspaper and both having a wide circulation along with their electronic editions, inter alia, advising the members whose e-mail ids are not registered with the Company, its Registrar and Share Transfer Agent (RTA) or Depository Participant(s) (DPs), as the case may be, to register their e-mail ids with them.

3. The Company has enabled the Members to participate at the 50th AGM through VC facility. The instructions for participation by Members are given in the subsequent pages. Participation at the AGM through VC shall be allowed on a first-come-first-served basis.

4. As per the provisions under the MCA Circulars, Members attending the 50th AGM through VC shall be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013

5. The Company has provided the facility to Members to exercise their right to vote by electronic means both through remote e-voting and e- voting during the AGM. The process and instructions for remote e- voting are provided in the subsequent pages. Such remote e-voting facility is in addition to voting that will take place at the 50th AGM being held through VC.

6. Members joining the meeting through VC, who have not already cast their vote by means of remote e-voting, shall be able to exercise their right to vote through e-voting at the AGM. The Members who have cast their vote by remote e-voting prior to the AGM may also join the AGM through VC but shall not be entitled to cast their vote again.

7. As per the Companies Act, 2013, a Member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his/her behalf. Since the 50th AGM is being held through VC as per the MCA Circulars, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be made available for the 50th AGM and hence the Proxy Form and Attendance Slip are not annexed to this Notice.

8. The members who have not yet registered their e- mail ids with the Company may contact Mas Services Limited (Registrars & Share Transfer Agents) at T-34, 2nd Floor, Okhla Industrial Area, Phase - II,, New Delhi - 110 020, Ph:- 26387281/82/83 Fax:- 26387384 email:- [email protected] for registering their e- mail ids on or before 23/09/2023 The Company shall send the Notice to such members whose e-mail ids get registered within the aforesaid time enabling them to participate in the meeting and cast their votes

9. The Register of Members and Share Transfer Books of the Company shall remain closed from 23.09.2023 to 29.09.2023 (both days inclusive).

10. If there is any change in e-mail ID already registered with the Company, members are requested to immediately notify such change to the Company or its RTA in respect of shares held in physical form & to DPs in respect of shares held in electronic form.

11. In terms of the aforesaid Circulars, the businesses set out in the Notice will be transacted by the members only through remote e- voting or through the e-voting system provided during the meeting while participating through VC facility.

12. In accordance with the provisions of Section 108 and other applicable provisions, if any, of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 and amendments thereto and applicable provisions of the SEBI Listing Regulations, the Company has engaged the services of [CDSL/NSDL] to provide the facility of voting through electronic means to the members to enable them to cast their votes electronically in respect of all the businesses to be transacted at the aforesaid Meeting.

13. Voting rights of the members (for voting through remote e-voting or e-voting system provide in the Meeting itself shall be in proportion to shares of the paid-up equity share capital of the Company as on the cut-off date i.e.22/09/2023. A person, whose name is recorded in the Register of Members or in the Register of Beneficial owners (as at the end of the business hours) maintained by the depositories as on the cut-off date shall only be entitled to avail the facility of remote e-voting or e- voting system provided in the Meeting.

14. In accordance with the aforementioned MCA Circulars, the Company has appointed Mas Services Ltd. for providing the VC facility to the members for participating in the Meeting. The members are requested to follow the following instructions in order to participate in the Meeting through VC mechanism: a. The login-id and password for joining the meeting has been separately provided along with this Notice; b. The facility for joining the Meeting shall be kept open 30 minutes before the time scheduled to start the meeting i.e. [11:30AM] and 15 minutes after the expiry of the said scheduled time i.e. till [o]; c. Members who hold shares in dematerialized form are requested to furnish their Client ID and DP ID Nos. and members who hold shares in physical form are requested to furnish their folio number for easy identification of attendance at the Meeting; d. Participation of single member shall only be allowed at a time; e. Queries on the accounts and operations of the Company or the businesses covered under the Notice may be sent to [o]at least seven days in advance of the meeting so that the answers may be made readily available at the meeting; f. Members are requested to e-mail at [o] or call at [o] in case of any technical assistance required at the time of log in/ assessing/ voting at the Meeting through VC; g. [other relevant information to be provided]

15. In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names shall be entitled to vote.

16. In view of the MCA Circulars, no proxy shall be appointed by the members. However, corporate members are required to send to the Company/ RTA/ Scrutinizer, a certified copy of the Board Resolution, pursuant to section 113 of the Companies Act 2013, authorizing their representative to attend and vote at the Meeting through VC.

17. The Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Companies Act, 2013 and the Register of Contracts and Arrangements in which Directors are interested maintained under Section 189 of the Companies Act, 2013 shall be made available only in electronic form for inspection during the Meeting through VC.

18. All other relevant documents referred to in the accompanying notice/explanatory statement shall be made open for inspection by the members only in electronic form at the Meeting on all working days, except Saturdays, from 11:00 a.m. to 1:00 p.m. up to the date of the Meeting.

19. The Notice for this Meeting along with requisite documents and the Annual Report for the financial year ended 2022-23 shall also be available on the Company’s website[www.modirubberlimited.com]

20. The results of remote e-voting & e- voting system provided in Meeting shall be aggregated & declared within48 hours of Meeting.

21. The results declared along with the report of the scrutinizer shall be placed on the Company’s website [www.modirubberlimited.com] and on the website of NSDL immediately after the result is declared by the Chairman and simultaneously communicated to the Stock Exchanges.

22. Members desirous of obtaining any information concerning the Accounts of the Company are requested to send their request at the 4/7C DDA Shopping Centre New Friends Colony, New Delhi110025 Head Office of the Company atleast seven days before the date of the Meeting, so that the information required may be made available at the Meeting.

23. Corporate members are requested to send a duly certified copy of the Board resolution/authority letter, authorizing their representative(s) to attend and vote on their behalf at the meeting.

24. Members holding shares in dematerialized mode are requested to intimate all changes with respect to the change of address, e-mail address, change in name etc, to the depository participant. These changes will be automatically reflected in the Company’s records which will help in the Company to provide efficient and better service to the members.

25. Members holding shares in the physical form are requested to intimate changes with respect the change of address, e-mail address, change in name etc, immediately to the Company/RTA.

26. Voting through electronic means: In compliance with section 108 of the Companies Act, 2013 and rule 20 of the Companies (Management Administration) Rules, 2014, and regulation 44 of SEBI (LODR) the Company is pleased to provide to members facility to exercise their right to vote at the 50th Annual General Meeting by electronic means and the business may be transacted through e-voting services. The facility of casting the votes by the members using an electronic voting system from a place other than venue of the AGM (“remote e-voting”) will be provided by National Securities Depository Limited (NSDL).

I. The process and manner for remote e-voting are as under:
A. In case a Member receives an email from NSDL [for members whose email IDs are registered with the Company/Depository Participants(s)] :
(i) Open email and open PDF file viz; “remote e-voting.pdf” with your Client ID or Folio No. as password. The said PDF file contains your user ID and password/PIN for remote e-voting. Please note that the password is an initial password.
(ii) Launch internet browser by typing the following URL: https://www.evoting.nsdl.com/
(iii) Click on Shareholder - Login
(iv) Put user ID and password as initial password/PIN noted in step (i) above. Click Login.
(v) Password change menu appears. Change the password/PIN with new password of your choice with minimum 8 digits/characters or combination thereof. Note new password. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.
(vi) Home page of remote e-voting opens. Click on remote e-voting: Active Voting Cycles.
(vii) Select “EVEN” of “Modi Rubber Limited”.
(viii) Now you are ready for remote e-voting as Cast Vote page opens.
(ix) Cast your vote by selecting appropriate option and click on “Submit” and also “Confirm” when prompted.
(x) Upon confirmation, the message “Vote cast successfully” will be displayed.
(xi) Once you have voted on the resolution, you will not be allowed to modify your vote.
(xii) Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. together with attested

specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer through e-mail to [email protected] with a copy marked to [email protected] General Instructions:
The remote e-voting period commences on 26[th] September, 2023 (9:00 am) and ends on 28[th] September, 2023 (5:00 pm). During this period members’ of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of 22[nd] September, 2023, may cast their vote by remote e-voting. The remote e-voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the member, the member shall not be allowed to change it subsequently.
In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Members and remote e-voting user manual for Members available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800-222-990.
The voting rights of shareholders shall be in proportion to their shares of the paid-up capital of the Company as on the cut-off date (record date) of 22/09/2023.
If you are already registered with NSDL for remote e-voting then you can use your existing user ID and password for casting your vote.
You can also update your mobile number and e-mail id in the user profile details of the folio which may be used for sending future communication(s).
Any person, who acquires shares of the Company and become member of the Company after send of the email and holding shares as of the cut-off date i.e. 22/09/2023, may obtain the login ID and password by sending a request at [email protected] or [email protected].
However, if you are already registered with NSDL for remote e-voting then you can use your existing user ID and password for casting your vote. If you forgot your password, you can reset your password by using “Forgot User Details/Password” option available on www.evoting.nsdl.com or contact NSDL at the following toll free no.: 1800-222-990.
A person, whose name is recorded in the register of members or in the register of beneficial owners maintained by the depositories as on the cut-off date only shall be entitled to avail the facility of remote e-voting as well as voting at the AGM through e-voting system.
The Company has appointed M/s Rashmi Saxena and Associates, Practicing Company Secretaries (C.P. No. 6938) as the scrutinizer for conducting the e-voting process in a fair and transparent manner.
The scrutinizer shall, within a period not exceeding 48 hours from the conclusion of the e-voting period unblock the votes in presence of at least 2 (two) witnesses not in employment of the Company and make a Scrutinizer’s Report of the votes cast in favour, against, if any, forthwith to the chairman of the Company.
The Results shall be declared on or after the Annual General Meeting of the Company. The Results declared alongwith the scrutinizer’s report shall be placed on the Company’s Website www.modirubberlimited.com and on the website of NDSL within two (2) days of passing of the resolutions at the AGM of the Company.

27. The Notice of annual general meeting &copies of audited financial statements, directors report, auditors report etc, will also be displayed on website (www.modirubberlimited.com) of Company.

28. The Securities and exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in securities market. Members holding shares in electronic form are, therefore, requested to submit the PAN to their depository participant with whom they are maintain their demat accounts. Members holding shares in physical form are requested to submit their PAN details to the Company/RTA.

29. As required by regulation 36 of SEBI (LODR) 2015 and as required under Secretarial Standard-2, in respect of the Directors seeking appointment/re-appointment at the Annual General Meeting forms integral part of the notice. The Directors have furnished the requisite

declarations for their re-appointment and their brief profile forms part of the explanatory statement.

30. Kindly register your e-mail addresses and contact details with us, by writing to the Secretarial Department at The Corporate Office, or at our e-mail ID: [email protected]. This will help us in prompt sending you notice, annual reports and other shareholder communications in electronic form.

STATEMENT IN RESPECT OF SPECIAL BUSINESSES PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 (THE “ACT”): The following Statement sets out all material facts relating to the special businesses mentioned in the accompanying Notice. Item No. 3

This statement is provided under Regulation of 36(5) of SEBI (LODR) Regulation 2015, and other applicable provisions, if any, and for better understanding.

Mr. Umesh Kumar Khaitan, aged 74, is the Non-Executive Independent Director of the Company. . In accordance with Regulation 17 (1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, no listed entity shall appoint a person or continue the Directorship of any person as a Non-Executive Director who has attained the age of seventy-five years unless a special resolution is passed to that effect. Mr. Umesh Kumar Khaitan will attain the age of 75 years in December, 2023 and the continuation of his Directorship will be subject to approval by the shareholder by special resolution. Hence the approval of the shareholders is sought for the continuation of his Directorship on the Board of the Company even after attaining the age of 75 years. His brief profile is given below

Qualification	Graduate
Expertise in specific functional areas	Legal & Advisory
Relationshipwith Director	Not Related
Directorship in other Companies	1. Sutlej textiles and industries limited 2. Ferro alloys corporation limited 3. The ayer manis rubber estate limited 4. Cremica food industries limited 5. Isk biosciences india private limited 6. Sobo estate development pvt Ltd 7. Ghaziabad investment limited 8. Shree parna holdings private limited 9. Ashutosh holdings private limited 10 Ombine overseas limited 11.Shengdi consultancyservicespvt ltd
Shareholdingin Company	Nil

The Board of the Company is of the opinion that Mr. Umesh Kumar Khaitan has been an integral part of the Board and has provided valuable insights to the Company and his continuation as Director will be in the interest of the Company notwithstanding his completion of seventy five years of age. Hence the Board recommends the resolution set out in item No. 3.

Except Mr. Umesh Kumar Khaitan, none of the other Directors and Key Managerial Personnel of the Company and their relatives are, in any way, concerned or interested, financially or otherwise in the resolution set out at item No. 3.

INSPECTION OF DOCUMENTS

All material documents referred to in the Notice will be kept open for inspection by the members, at the Registered Office of the Company, from 11AM to 1 PM on all working days from 22[nd] September 2023 upto the date of the AGM.

By order of the Board

for Modi Rubber Limited

(Sanjeev Kumar Bajpai) Place: New Delhi Head-Legal & Company Secretary Date: 05/09/2023 Membership Number- A10110 Address: 4-7C, DDA Shopping Centre New Friends Colony, New Delhi-110025

DIRECTORS’ REPORT

Your Directors have pleasure in sharing with you the 50[th] Annual Report on the business and operations of the Company, alongwith the audited financial statements for the financial year ended March 31, 2023 (“FY”).

IMPLEMENTATION STATUS OF BIFR SCHEME

The Central Government vide its Notification No.S.O.3568 (E) Dated 25 November 2016 put into force the provisions of the Sick Industrial Company (Special Provisions) Repeal Act 2003 repealing SICA 1985. However, the Repeal Act shall not affect any order made by the BIFR for sanctioned Scheme. In compliance of direction issued by BIFR, your company continue to implement the unimplemented provisions of sanctioned schemeby the BIFR on 8.4.2008.

In this respect, industrial rehabilitation for Modinagar Tyre Factory (MTF) could not be achieved as yet. The matter for possession of MTF Plant is pending with Hon’ble Allahabad High Court. The OL appointed by the Allahabad High Court in Modi Export Processors Limited’s (MEPL) winding up proceedings has put his seal on The MTF Plant.Company has taken a legal recourse for re-possession of MTF Plant. Litigation with one creditor is also pending who have till date not accepted the dues as per scheme sanctioned by the BIFR.

Your Company has been following up with Govt agencies/authorities/department/Creditors to provide relief and concessions and to accept settlement as per scheme sanctioned by the BIFR.

The Company has taken new initiatives to improve its long term prospects and performance. These include:-

Your Company has been very vigorously taking actions to get re-possession of Company’s properties which were occupied by illegal occupants/Ex- Employees. Efforts include legal recourse, and also settlement as per BIFR Scheme wherever possible.
Company is taking several steps to utilize its real- estate resources and wherever possible to put them to generate revenue.

FINANCIAL RESULTS

During the FY 2022-23, your company has earned a net Profit (Standalone) after tax Rs 796.64 Lacs as compared to net profit of Rs 523.10 Lacs in previous year and a total comprehensive income of Rs 137.69 as compared to income of 16202.45 Lacs in the previous year. Income of your company is mainly from guest house operations, Interest & dividend.

DIVIDEND

Since, there is no adequate profit; your Board does not recommend any dividend.

B) Meeting of the Board of Directors During the financial year ended on March 31, 2023, 4 (Four) Board Meetings and 1 (one) meeting of Independent Directors were held. Further, details of the meetings of the Board and its Committees are given in Corporate Governance Report, forming part of the Annual Report.
C) Declaration by Independent Director(s) The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under subsection (6) of Section 149 of the Companies Act, 2013 and under applicable regulations of SEBI (LODR) 2015 with the Stock Exchanges.
D) Board Evaluation The Company has formulated a policy on performance evaluation for the Directors, Board and its Committees and other individual Directors on the parameters inter alia covering attendance, effective participation, domain knowledge, access to management outside Board Meetings and Compliance with the Code of Conduct, vision and strategy and benchmark to peers.

Pursuant to policy on performance evaluation, a process for performance evaluation was carried out for Independent director, board, committees and other individual directors. Policy for Board evaluation is available on company’s website.https://modirubberlimited.com/polices/

SUBSIDIARIES/JOINT VENTURES/ ASSOCIATE COMPANIES

As on March 31, 2023, your Company has 2 (two) subsidiaries).

During the FY 2022-23, no company has ceased to be a subsidiary of the Company.

A statement containing salient features of financial statements of subsidiaries (including their contribution) forms part of the Consolidated Financial Statements for the financial year ended March 31, 2023.

CONSOLIDATED FINANCIAL STATEMENT

In accordance with the provisions of the Companies Act, 2013 and applicable Ind-AS 110 on Consolidated Financial Statement, Ind-AS 28 on Accounting for Investments in Associates and Joint Ventures, the audited consolidated financial statement for the year ended March 31, 2023 is provided in the Annual Report. AUDIT COMMITTEE

The details of the Audit Committee including its composition and terms of reference mentioned in the Corporate Governance Report forms part of Annual Report.

FIXED DEPOSITS

Your Company has not accepted any fixed deposits from public during the year under review.

MANAGEMENT DISCUSSION & ANALYSIS & CORPORATE GOVERNANCE REPORTS

A detailed Management Discussion & Analysis Report and a Corporate Governance Report along with certificate from the statutory auditors of the Company in pursuance with compliance of Listing Regulations are attached and form part of this Annual Report of the Company. Directors and Key Managerial Personnel

A) Appointment/Re-appointment of Directors and Key Managerial Personnel

There is no change in the Composition of Board of Directors and Key Managerial Personnel.

All the recommendations made by the Audit Committee were accepted by the Board.

DIRECTORS’RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 134(3)(c) of the CompaniesAct,2013,with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

i) in the preparation of the annual accounts for the financial year ended March 31, 2023, the applicable Ind-AS with the requirements set out under Schedule III to the Companies Act, 2013, have been followed and there are no material departures from the same;
ii) the Directors 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 as at March 31, 2023

and of the profit of the Company for the year ended on that date;

iii) the Directors have taken proper and sufficient care for 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;
iv) the Directors have prepared the annual accounts of the Company for the financial year ended March 31, 2023on a ‘going concern ’basis;
v) the Directors have laid down internal financial control to be followed by the Company and that such internal financial control are adequate and were operating effectively; and
vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. RISK ASSESSMENT/ MANAGEMENT

The Company has formulated and adopted a Risk Management Policy. Board of Directors of the Company is responsible for the direction and establishment of internal control to mitigate material business risks. The policy is framed to identify element of risks like misstatement, frauds etc and their mitigation for achieving its business objective and to provide reasonable assurance.

INTERNAL FINANCIAL CONTROLS

The Company has in place well defined and adequate internal financial control framework. During the year, such controls were tested and no material weaknesses in their design or operation were observed.

COST RECORD

The provision of Cost audit as per section 148 are not applicable on the Company.

PREVENTION AND PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORK PLACE

At Modi Rubber Limited (“MRL”), it is our desire to promote a healthy and congenial working environment irrespective of gender, caste, creed or social class of the employees. We value every individual and are committed to protect the dignity and respect of every individual. The Company has always endeavored for providing a better and safe environment free of sexual harassment at all its work places. Consequent to the enactment of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules made thereunder, MRL had constituted an Internal Complaints Committee (“ICC”) to deal with complaints or issues that may arise, in the nature of sexual harassment of women employees. The Company has also prepared and implemented Policy for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace. During the year ended March 31, 2023, there was no case reported to ICC.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the year under review there was insufficient profit from the operations hence no CSR activities was undertaken. The applicable disclosures as stipulated under the Companies (Corporate Social Responsibility Policy) Rules, 2014 is provided in Annexure I to this Report.

VIGIL MECHANISM

The Company promotes ethical behavior in all its business activities. Towards this endeavor the Company has adopted a policy on vigil mechanism and whistle blower. Company has developed a Mechanism where violation can be reported to the Chairman of the Audit Committee for appropriate resolution. The confidentiality of such reporting will be maintained and they are not subjected to any discriminatory practice or victimization. The Audit Committee shall overseas the Vigil Mechanism. The Board of MRL confirmed that no

personnel/official/employees etc has been denied tha access to the audit committee. The policy on vigil mechanism and whistle blower is available on Company’s website.https://modirubberlimited.com/polices/

RELATED PARTY TRANSACTIONS

The contracts/ arrangements / transactions by the company during the year under review with related parties were in the ordinary course of business and on arm,s length basis and do not attract the provisions of section 188 of the companies Act 2013.

During the year, the Company had not entered into any contract/ arrangement/ transactions with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. Suitable disclosure as required by the Accounting Standards has been made in the Notes to the Financial Statement. The policy on Related Party Transaction and determining material Subsidiaries as approved by the Board is uploaded on the company’s website https://modirubberlimited.com/polices/ PARTICULARS OF LOAN, GUARANTEES, SECURITY OR INVESTMENTS

Details of Loans, Guarantee, Securities and Investments during the year under review are given in the Notes to the financial statements pursuant to requirement of under Section 186 of the Companies Act, 2013.

AUDITOR & AUDITOR’S REPORT

M/s PNAM & Co. LLP, Chartered Accountants (Firm Registration No. 001092N),have submitted their Report on the Financial Statements of the Company for the FY 2022-23, which forms part of the Annual Report 2022-23. There are no observations (including any qualification, reservation, adverse remark or disclaimer) of the Auditors in their Audit Reports on standalone and consolidated financial statements.

The Auditors have issued an unmodified opinion on the Financial Statements, both standalone and consolidated, for the financial year ended March 31, 2023. During the year 202223, the statutory auditors has not reported any matter under Section 143(12) of the Act. The said Auditors’ Report(s) for the financial year ended March 31, 2023 on the financial statements of the Company forms part of the Annual Report. MANAGERIAL REMUNERATION

The information required in terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5 (1), (2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Report . (Annexure-II)

SECRETARIAL AUDITOR & SECRETARIAL AUDIT REPORT

The Secretarial Audit Report for the financial year ended March 31, 2023, in the prescribed format is attached and marked as Annexure III with this report. The secretarial audit report contains certain remarks, explanations which are given as under:-

Promoter’sshareholding couldn’t be demated as certain shares in physical form are still under lien.
Late submission of RPT details, already complied and compounded. Certificate from Company Secretary in practice regarding Nondisqualification of Directors
M/s. MN Gupta & Co. has issued a certificate under the Listing Regulations, confirming that none of the Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as Director of Company by SEBI, Ministry of Corporate Affairs or any such statutory authority. The said certificate is enclosed as Annexure-IV to this report. SECRETARIAL AUDIT REPORT OF UNLISTED SUBSIDIARIES COMPANIES

Pursuant to Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] for the financial year ended March 31, 2023, The Secretarial Audit Report in the prescribed format of material Subsidiaries companies are attached and marked as Annexure V with this report. EXTRACT OF ANNUAL RETURN

In terms of Sections 92(3) and 134(3)(a) of the Act, annual return is available under the ‘Investors’ section of the Company’s website,https://drive.google.com/file/d/1gdaOiWGNDRVkW_ Qc9SYnILnBCiFh8f-t/view

COMPLIANCE WITH SECRETARIAL STANDARDS

The Company is fully compliant with the applicable Secretarial Standards (SS) viz. SS-1 & SS-2 on Meetings of the Board of Directors and General Meetings respectively.

STATUTORY DISCLOSURES

Since there was no production, there is no information required to be given for energy conservation, technology absorption, fuel consumption etc. u/s 134(3) (m) of the Companies Act, 2013. Information about foreign exchange earnings is nil and outgo is 163.20 Lacs during the year as disclosed in note no.40 of Standalone Financial Statement.

OTHER DISCLOSURES .

During the financial year under review:

The Company has complied with the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to Meetings of the Board of Directors and General Meetings, respectively.
The Company has not issued shares with differential voting rights and sweat equity shares.
No disclosure is required under Section 67 (3) (c) of the Act in respect of voting rights not exercised directly by employees of the Company, as the provisions of the said section are not applicable.
No significant or material orders were passed by the regulators or courts or tribunals which could impact the going concern status of the Company and its future operations.
No material changes and commitments have occurred after the close of the year till the date of this report which may affect the financial position of the Company.
During the year under review, there are no proceedings, either filed by the Company or filed against Company, pending under the Insolvency and Bankruptcy Code, 2016, before Hon’ble National Company Law Tribunal or other Court.
The details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof: Not Applicable. ACKNOWLEDGEMENT
Your Directors place on record their sincere thanks for support and co-operation from Banks, UP Government and other Government Authorities and shareholders during the year period review. Your Directors also appreciate services of executives and staff of the Company for unstinted support.
For and on behalf of the Board of Directors
The Company do not have any stock option plan in force.
The Company have neither invited nor accepted any deposits from the public within the purview of the Act and the Rules made thereunder, and accordingly no amount on account of principal or interest on public deposits was outstanding as on March 31, 2023.

Alok Modi Piya Modi (DIN: 00174374) (DIN: 03623417) Managing Director Whole-time Director Place: New Delhi Date: August 14[th] , 2023

Annexure I

Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2022-23

1	Brief outline of Company’s CSR Policy including overview of projects or programs proposed to be undertaken and a reference to the web link to the CSR Policy and projects or programs	Refer Section Corporate Social Responsibility in this Report
2	Composition of the CSR Committee.	Refer Corporate Governance Report
3	Average Net Profit of the Company for last three financial years	Not Applicable
4	Prescribed CSR Expenditure (twopercent of the amount as in item No. 3 above)	Not Applicable
5	Details of CSR spent during the financial year:
(a)	total amount to be spent for the financial year	Not Applicable
(b)	amount unspent, if any	Not Applicable
(c)	manner in which the amount spent during the financial year	Not Applicable
6	In case the Company fails to spend the 2% of the Average Net Profit (INR) of the last 3 financial years, the reasons for not spending the amount shall be stated in the Board report.	Not Applicable

Responsibility Statement

The implementation and monitoring of the CSR Policy is in compliance with the CSR objectives and policy of the Company.

For and on behalf of the Board of Directors

Alok Modi Piya Modi Place: New Delhi (DIN: 00174374) (DIN: 03623417) Date: August 14[th] , 2023 Managing Director Wholetime Director

Annexure II

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

(i) The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2022-23, ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2022-23 and the comparison of remuneration of each Key Managerial Personnel (KMP) against the performance of the Company are as under:

Sl. No.	Name of Director/KMP and Designation	Remunerationof Director/KMPfor financial year2022-23 (in Rs.)	% increase in Remuneration in the Financial Year2022-23
1	Mr. Vinay Kumar Modi (Non-Executive Chairman)	No remuneration	N.A
2	Mr. Alok Kumar Modi (Managing Director)	He opted not to draw any remuneration from Company during implementation of BIFR revival scheme.	N.A
3	Ms. Piya Modi (WHD)	39.99 Lacs	NIL
4	Mr. Kanwaljit Singh Bains (Non-Executive Independent Director)	Sitting Fees only*	N.A
5	Mr. Amrit Kapur(Non-Executive Independent Director)	Sitting Fees only*	N.A
6	Mr. Umesh Khaitan(Non-Executive Independent Director)**	Sitting Fees only*	N.A
7	Mr. Sanjeev Kumar Bajpai (Head – Legal &Company Secretary)	53.31 Lacs	16.06
8	Mr. Kamal Gupta (CFO)	59.85 Lacs	4.65

*Sitting fees are Rs. 10000/- For attending each board meeting and Rs. 5000/- For attending each committees meeting

** Apart from sitting fee, company also pays fees to the Law Firm for legal professional services of which Mr. Khaitan is Partner.
i. The median remuneration of employees of the Company during the financial year was Rs ; 9,39,499;
ii. In the financial year 2022-23, the median remuneration of employees Increased by 11%.
iii. There were 18 permanent employees(Including KMPs) on the rolls of Company as on March 31, 2023;
iv. Average percentage increase made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2022-23 and comparison with the percentage increase/(decrease) in managerial remuneration:
v. 1:1.50 is the ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year
vi. It is hereby affirmed that the remuneration paid is as per Policy for Directors, Key Managerial Personnel, Senior Management and other Employees.

Annexure III

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2023

[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, Modi Rubber Limited (CIN: L25199UP1971PLC003392) Modi Nagar, Ghaziabad, Uttar Pradesh – 201204

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Modi Rubber Limited (hereinafter called “the Company”) which is listed on BSE Limited and National Stock Exchange Limited. Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing our opinion thereon.

We report that: ―

Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. We adhered to the best professional standards and practices as could be possible while carrying out audit. 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.

We have not verified the correctness and appropriateness of the financial statements of the Company.

Wherever required, we have obtained the Management representation about the compliances of laws, rules, regulations and standards and happening of events etc.

The compliance of the provisions of the corporate and other applicable laws, rules, regulations and standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis.

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.

Based on our verification of the Company’s books, papers, minutes 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, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2023 (“Audit Period”) 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.

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the Audit Period according to the provisions of: ―

(i) The Companies Act, 2013 (‘the Act’) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings, wherever applicable;
(v) The following Regulations and Guidelines prescribed under the Securi�es 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 (PIT Regulations);
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; [Not applicable to the Company during the audit period]
(d) The Securities and Exchange Board of India (Share based Employee Benefits and Sweat Equity) Regulations, 2021; [Not applicable to the Company during the audit period]
(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021; [Not applicable to the Company 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, 2013 and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; [Not applicable to the Company during the audit period]
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; [Not applicable to the Company during the audit period] and

(i)The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’).

We have also examined compliance with the applicable clauses of the Secretarial Standards on Meetings of the Board of Directors and General Meetings issued by the Institute of Company Secretaries of India as well as listing agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited which, along with above, need to be further strengthened by the Company. Further, the Company was generally regular in filing of Forms/Returns/intimations with the Registrar of Companies and Stock Exchanges.

During the audit period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations and Guidelines, to the extent applicable, as mentioned above except that: -

There is violation of Regulation 31(2) of LODR Regulations with respect to entire shareholding of promoters to be in dematerialized form. The same was reported in our previous report which has continued during the financial year under report.
The Related Party Disclosure for period ending 31st March 2022 was submitted with delay which was compounded by BSE and NSE after payment of fine.

(vi) As informed by the Management, the Company was earlier engaged in manufacture of automotive tyres, tubes, flaps and other allied products in its plants set-up in 1974 at Modipuram, Meerut and Modinagar. Pursuant to the BIFR Scheme, Modinagar plant continued to be with the Company for carrying out its industrial activities. However, Modinagar Plant of the Company is under the Seal of Official Liquidator (OL) attached to the Allahabad High Court appointed by Allahabad High Court pursuant to CP No.7 of 2005 in “Punjab National Bank Vs Modi Export Processors Ltd,” as the Company had taken Industrial Shed and land on perpetual lease from Modi Export Processors Ltd, on which Company had installed its Plant & Machinery for Modinagar Plant. The Company has filed Special Appeal No.1917 of 2008 with Allahabad High Court for re-possession from the OL which is pending for final adjudication before the Hon’ble High Court. Further, the Company continues to implement the unimplemented provisions of BIFR Scheme.

As confirmed by the management, the Company generates its income/revenue from rentals on real estate and Guest House at Modipuram, income from Fund Management/ Investments and also dividend and management fees from Joint Venture Companies in which Company has Management & Equity Collaborations. As informed by the Management, there is no sector specific law applicable on the Company.

We further report that:-

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors, Woman 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 was given to all Directors to schedule the Board Meetings. Agenda and detailed notes on agenda were sent in advance 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 meetings.

Board decisions were carried out with unanimous consent as recorded in the minutes of the meetings thereof.

We report further that in our opinion based on verification done on test basis and to the best of our information and according to explanations given to us, there are adequate systems and processes in the Company commensurate with its size and operations, to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

Place: New Delhi Date: August 14, 2023

For Sanjay Grover & Associates Company Secretaries Firm Registration No.: P2001DE052900 Peer Review Certificate no.: 1352/2021

Vijay K. Singhal Partner CP No.: 10385/ Mem. No. A21089

UDIN: A021089E000803629

Annexure-IV

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To Modi Rubber Limited (CIN::L25199UP1971PLC003392) Modinagar-UP-201204

That Modi Rubber Limited (CIN::L25199UP1971PLC003392) is having its registered office at Modinagar-Up-201204 (hereinafter referred as “the Company”). The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.
I have examined the relevant disclosures received from the Directors & registers, records, forms, and returns maintained by the Company and produced before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V ParaC Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
I have also done examination and verification of the disclosures under section 149, 164, 184 and 189 received from the Directors and Register of Directors and Key Managerial Personnel and their Shareholding under Section 170 of the Companies Act, 2013 (the Act) and DIN status of the Directors at MCA portal i.e. www.mca.gov.in. In my opinion and to the best of my knowledge and on the basis of information furnished to me by the Company and its officers, I certify that none of the below named Directors of the Company have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such statutory authority as on March 31, 2023:

DIN	Name	Begin date
0000174374	ALOK KUMAR MODI	14/06/2008
0000274605	VINAY KUMAR MODI	27/02/1971
0000508710	AMRIT KAPUR	29/05/2018
0001180359	UMESH KUMAR KHAITAN	28/05/2019
0001444259	KANWALJIT SINGH BAINS	26/08/2009
0003623417	PIYA MODI	08/08/2014

Ensuring the eligibility of the appointment/ continuity of every Director on the Board is the responsibility of the management of the Company. My responsibility is to express an opinion based on our verification and this certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
This certificate is based on the information and records available as on March 31, 2023 and i have no responsibility to update this certificate for the events and circumstances occurring after the date of the certificate.

For Mn Gupta & Co. Sd/Place: New Delhi Neha Gupta Date: 04.09.2023 CP No.:8269 UDIN: F008269E000931501 FCS No. 16876

Annexure-V

Spin Investment India Limited

SECRETARIAL AUDIT REPORT

For the Financial Year ended 31[st] March 2023

[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 and Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] for the financial year ended march 31, 2023]

To,

The Board of Directors, Spin Investment India Limited (CIN: U74899DL1982PLC013733) 6/7 - CDDA Shopping Centre New Friends Colony, New Delhi - 110065

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Spin Investment India Limited (hereinafter called “the Company”) which is an unlisted Company. Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

We report that-

a) Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.

b) 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.

c) We have not verified the correctness and appropriateness of the financial statements of the Company.

d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and regulations and happening of events etc.

e) The compliance of the provisions of the corporate and other applicable laws, rules, regulation, standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis.

f) 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.

Based on our verification of the Company’s books, papers, minutes 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, we hereby report that in our opinion, the Company has, during the Financial Year ended on 31[st] March 2023 (Audit Period), 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.

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31[st] March, 2023 according to the provisions of:

(i) The Companies Act, 2013 (‘the Act’) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial borrowings.;

We have also examined compliance with the applicable clauses of the Secretarial Standards on Meetings of the Board of Directors and on General Meetings issued by the Institute of Company Secretaries of India which has been generally complied with.

During the audit period, the Company has generally complied with the provisions of the Acts, Rules, Regulations, Bye-laws and Standards as mentioned above.

We have checked the compliance management system of the Company to obtain reasonable assurance about the adequacy of systems in place to ensure compliance of specifically applicable law and this verification was done on test basis. We believe that the Audit evidence which we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion and to the best of our information and according to explanations given to us, we believe that the compliance management system of the Company seems adequate to ensure compliance of law specifically applicable to it.

We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. There were no changes in the composition of Board of directors during the year.

Adequate and proper notices were given to all Directors to schedule the Board Meetings, Committee meetings, agenda and detailed notes on agenda were sent in advance, 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.

Board decisions were carried out with unanimous consent and therefore, no dissenting views were required to be captured and recorded as part of the minutes.

We further report that there are 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, guidelines and standards.

For Sanjay Grover & Associates Company Secretaries Firm Registration No. P2001DE052900 Peer review No.: 1352/2021

Date: 04-09-2023 Place: New Delhi

Ramit Rastogi Partner CP No. 18465/M.No: F-6952 UDIN: F006952E000937838

Management Discussion and Analysis Report

Your Company still could not take back possession of its Modinagar plant from the Official Liquidator (OL) appointed by the Allahabad High Court in the case of MEPL from which your Company has taken industrial shed and Land on perpetual lease on which Modinagar Plant was set-up.

Technical Analysis for Plant & Machinery of MTF Plant will be done when your Company gets possession of the same to ascertain damage caused to the machineries due to fire,rain & thefts.

Your Company has taken new initiatives to improve its long term prospects and performance and in order to make best use of its real estate resources your company has put Guest House Facility at Modipuram for commercial use after obtaining requisite approvals from the concerned Authorities. Your company is also taking several steps to utilize its real estate resources. Your Company has been taking actions to get re-possession of Company’s properties which were occupied by illegal occupants/Ex- Employees. Efforts include legal recourse, and also settlement wherever possible pursuant to scheme sanctioned by BIFR. During the year under review your company received notices from the district administration for the land purchased during the period 1982-1986 directly from the farmers. The company have taken the appropriate legal recourse to defend the same.

Your Company has been keeping adequate internal control system and has been deploying surplus fund in market instruments for return on investment.

Your Company has employed 20 employees to run its present operations. None of the senior Management of the Company has any personal interest in any of the commercial transactions that may have a conflict with operations of the Company.

CORPORATE GOVERNANCE REPORT

(PURSUANT TO REGULATION 34 (3) & SCHEDULE V OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015)

REPORT ON CORPORATE GOVERNANCE

Modi Rubber Limited’s corporate governance system has the highest standards of ethical and responsible conduct of business to create value for all stakeholders. It continues to focus on good corporate governance, in line with emerging national standards. It understands and respects its fiduciary role in the corporate world. Besides following prescribed corporate governance norms as per the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015(SEBI (LODR) Regulations 2015) and Companies Act, 2013, the company voluntarily governs itself as per best standards of ethical and responsible conduct of business in all facets of its operations and in all interactions with its stakeholders, including shareholders, employees, consumers, lenders and the community at large.

This report, along with the report on Management Discussion and Analysis and additional shareholders information provides the information on the corporate governance compliance by your company as contained in SEBI (LODR) Regulations 2015 and Companies Act, 2013. PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

The Company’s philosophy on Corporate Governance is to enhance the long term economic value of the Company, its stakeholders and the society at large by adopting appropriate corporate practices in fair and transparent manner by aligning company’s interest with that of its shareholders and other stakeholders. Your Company endeavors to follow procedures and practices in conformity with the Code of Corporate Governance outlined in the SEBI (LODR) Regulations 2015 and Companies Act, 2013.

BOARD OF DIRECTORS

The Board of Directors (“Board”) is the highest governing authority and plays a crucial role in ensuring good governance practices in the organization by its progressive thinking, approach and professional experience. The Board provides leadership, strategic guidance, objective and independent view to the Company’s management while discharging its responsibilities, thus ensuring that the management adheres to ethics, transparency and high standards of disclosure, thus protecting interest of all stakeholders.

Composition of the Board

The Composition of Board of Directors of the Company is in conformity with the requirement of Regulation 17 (1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board has an optimum combination of Executive, NonExecutive and Independent Directors. The Board represents an optimal mix of professionalism, knowledge and experience. The Chairman of the

Board of the Company is a Non-Executive Director. In the opinion of the Board, Independent Directors fulfil the conditions specified in the Act and Listing Regulations and are independent from the management of the Company.

The details relating to Composition & Category of Directors, Directorships held by them in other companies and their membership and chairmanship on various Committees of Board of other companies, as on March 31, 2023 is as follows:

Sl.No.	Name of the Director	Name of the Director	Category	Category	Designation	Directorships in Listed Entity and Category of Directorships	Directorships in Listed Entity and Category of Directorships	No. of Memberships/Chairmanships in various other Board Committees	No. of Memberships/Chairmanships in various other Board Committees
								Member	Chairman
1.	Mr. Vinay Kumar Modi		Non-Executive (Promoter)		Chairman	1		2	2
2.	Mr. Alok Kumar Modi		Executive (Promoter)		Managing Director	NIL		1	-
3.	Ms Piya Modi		Executive (Promoter)		Whole-time Director	NIL		0	-
4.	Mr. Kanwaljit Singh Bains		Independent Non-Executive		Director	NIL		1	2
5.	Mr. Amrit Kapur		Independent Non-Executive		Director	NIL		3	-
6.	Mr. Umesh Kumar Khaitan		Independent Non-Executive		Director	2		2	-
Shareholding of Non-Executive Directors *None of the Directors or KMP holds any Shares of the Company during the year 2022-23 under review Disclosure of skill/expertise/competence as identified in diversity policy and relationships between Director inter-se: Table given below shows the relationship between the Directors:
Name of the Directors		Designation		*Relationship between Directors Inter-se			skill/expertise/competence
Mr. Vinay Kumar Modi		Non-Executive Chairman		Father of Mr. Alok Kumar Modi and Grandfather of Ms Piya Modi			Managerial, Operational, Technical and Finance of over Five decades
Mr. Alok Kumar Modi		Managing Director		Son of Mr. Vinay Kumar Modi and Father of Ms Piya Modi			Managerial, Operational, Technical and Information technology of over three decades
Ms Piya Modi		Wholetime Director		Daughter Mr. Alok Kumar Modi and Grand Daughter of Mr Vinay Kumar Modi			Managerial and Operational, of over 8 years
Mr. Kanwaljit Singh Bains		Independent Non- Executive		Not related to any other Director			Retired as CMD of Punjab and Sindh Bank and held many Senior positions with the Governments as IAS with expertise in management, Finance and Administration over six decades
Mr. Amrit Kapur		Independent Non- Executive		Not related to any other Director			Sales and marketing, management, financial instruments/investments and had Experience of more than six decades
Mr. Umesh Kumar Khaitan		Independent Non- Executive		Not related to any other Director			Senior Partner of Khaitan and Khaitan, Law Firm, Areas of Expertise Include commercial and corporate law, litigation, arbitrations, commercial dispute resolution, contract documentation, negotiation and claims, besides othergeneral civilpractice.

(A) Board Meetings Date(s) of Board Meetings are fixed in advance and agenda papers are circulated to Directors generally one week before the meeting. All material information is incorporated in the agenda papers for meaningful and focused discussions at the meeting.

Details of attendance of Directors at Board Meetings and at the Annual General Meeting held during the financial year 2022-23 are as under:

Name of Director(s)	No. of Board Meetings during2022-23	No. of Board Meetings during2022-23	Attended last Annual General Meeting
	Held	Attended
Shri VinayKumar Modi*	4	4	Yes
Shri Alok Kumar Modi	4	4	No
Ms. Piya Modi	4	4	Yes
Shri Kanwaljit Singh Bains	4	3	Yes
Shri Umesh Kumar Khaitan	4	4	No
Shri Amrit Kapur	4	4	Yes

(B) Other provisions as to Board and Its Committees:-

The Board/ Committee meetings are pre-scheduled and a tentative annual calendar of Board and Committee meetings is circulated to the Directors well in advance to facilitate them to plan their schedules and to ensure meaningful participation in the meetings. Where it is not practicable to circulate any document or the agenda is of confidential nature, the same is tabled with the permission of Chairman in the meeting. During the financial year ended March 31, 2023, Four Board Meetings were held as per the minimum requirement of four meetings prescribed in the Regulation 17(2) of the SEBI (LODR) Regulations 2015. The intervening period between the Board Meetings were within the maximum time gap prescribed under Companies Act, 2013 and Regulation 17(2) of the SEBI (LODR) Regulations 2015 or any amendment from time to time thereto. The details of the Board meetings held during the financial year 2022-23 are as under:

Sl. No.	Date of Board meetings	Board Strength	No. of Directors Present
1	May28, 2022	6	6
2	August 12, 2022	6	6
3	November 14, 2022	6	5
4	February14, 2023	6	6

(C) Code of Conduct

The Board of Directors has implemented a Code of Conduct applicable to all Directors and Senior Level Management of the Company. Annual Affirmation has been received from all the Directors and Senior Level Management that they have complied with the code of conduct.The copy of the Code has been put on the Company’s website www.modirubberlimited.com

(D) Familiarization Programme Details on familiarization programme for independent directors are uploaded on company’s website at following weblink: - https://drive.google.com/file/d/18mO6gGjQLYOOvRLVqfbXdD nqGAAPF7r/view

COMMITTEES OF BOARD

In compliance with the SEBI (LODR) Regulations, the Board has constituted various committees with specific terms of reference and scope. The objective is to focus effectively on the issues and ensure expedient resolution of diverse matters. The Committees operate as per their charter / terms of reference approved by the Board.

The Board Committees play a crucial role in the governance structure of the Company and have been constituted to deal with specific areas / activities. The Board Committees are set up under the formal approval of the Board, to carry out clearly defined roles which are considered to be performed by Members of the Board, as a part of good governance practice. The Board supervises the execution of its responsibilities by the Committees and is responsible for their implementation. The Minutes of the meetings of all the Committees are placed before the Board for review. For smooth conduct of affairs of the Company, the Board has constituted several committees. The scope, brief terms of reference and composition of such committees are as under:

1. AUDIT COMMITTEE

The Audit Committee assists in monitoring and providing effective supervision to the Management on financial reporting process with a view to ensuring accurate and timely disclosures with transparency and quality of financial Statements. The Committee oversees the accounting and financial reporting process of the Company, Internal Auditors and the statutory auditors employed in audits of Company’s financial statements.

a) Composition and terms of reference of Audit Committee The constitution of Audit Committee meets with the requirements as laid down under Section 177 of the Companies Act, 2013 and also of Regulation 18 of the SEBI(LODR) Regulations 2015. The present members of the Audit Committee are Shri Kanwaljit Singh Bains as Chairman, Shri Vinay Kumar Modi, Shri Amrit Kapur and Shri Umesh Kumar Khaitan as Members. Committee has requisite financial and related management expertise.

The brief terms of reference of the Audit Committee are as follows:

Oversight of the company’s financial reporting process and the disclosure of its financial Information to ensure that the financial statement is correct, sufficient and credible;
Recommendation for appointment, remuneration and terms of appointment of auditors of the Company;
Approval of payment to statutory auditors for any other services rendered by the statutory auditors;
Reviewing, with the management, the annual financial statements and auditor's report thereon before submission to the Board for approval;
Reviewing, with the management, the quarterly financial statements before submission to the board for approval;
Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;
Review and monitor the auditor’s independence and performance, and effectiveness of audit process;
Approval or any subsequent modification of transactions of the company with related parties;
Scrutiny of inter-corporate loans and investments;
Valuation of undertakings or assets of the company, wherever it is necessary;
Evaluation of internal financial controls and risk management systems;
Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems;

Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
Discussion with internal auditors of any significant findings and follow up there on;
Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;
Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;
To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of nonpayment of declared dividends) and creditors;
To review the functioning of the Whistle Blower/ Vigilmechanism(Policy is uploaded on company’s website at following weblink: https://drive.google.com/file/d/1W9LHDDEOB3wYY84P9VNQTlDI1yUlznaW/view
Approval of appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience and background, etc. of the candidate.

b) Meetings, Attendance and Composition of the Audit Committee

During the year, the Committee met four times and the maximum time gap between any two meetings was less than four months unless more period allowed by the Companies act, including rules made thereunder and SEBI(Lodr) Regulation, 2015. The Minutes of the Audit Committee meetings were placed before the Board.

The Committee Meetings were held on May 28[th] 2022, August 12, 2022, November 14, 2022 and February 14, 2023. The composition and the attendance of members at the meetings held during the FY 2022-23, are given below:

Director	Category	No. of meetings held	No. of meetings attended
Shri Kanwaljit Singh Bains, Chairman	Non-Executive Independent Director	4	3
Shri Vinay Kumar Modi, Member	Non-Executive	4	4
Shri Umesh Kumar Khaitan, Member	Non-Executive Independent Director	4	4
Shri Amrit Kapur, Member	Non-Executive Independent Director	4	4

2. NOMINATION AND REMUNERATION COMMITTEE

(a) Brief description of the Terms of Reference of the Committee

The Board had constituted the Nomination and Remuneration Committee comprising of Non-Executive Directors of the company namely Shri K S Bains as Chairman, Shri Vinay Kumar Modi, Shri Amrit Kapur and Shri Umesh Kumar Khaitan as members to recommend/ review, vary or modify terms & remuneration of executive directors and members of senior management, based on their performance and assessment criteria. The brief terms of reference of Nomination and Remuneration Committee are as follows:

To formulate criteria for determining qualifications, positive attributes and independence of a Director.
To formulate criteria for evaluation of Independent Directors and the Board.
To identify persons who are qualified to become Directors and who may be appointed in Senior Management in accordance with the criteria laid down in this policy.
To carry out evaluation of Director’s performance.
To recommend to the Board the appointment and removal of Directors and Senior Management.
To recommend to the Board policy relating to remuneration for Directors, Key Managerial Personnel and Senior Management.
To devise a policy on Board diversity, composition, size.
Succession planning for replacing Key Executives and overseeing.
To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable.
To perform such other functions as may be necessary or appropriate for
Formulation of criteria for evaluation of Independent Directors and the Board.
Whether to extend or continue the term of appointment of the independent director, on the basis of the report of performance evaluation of independent directors;
Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the Board their appointment and removal. The Company shall disclose the remuneration policy and the evaluation criteria in its Annual Report.

The Committee Meetings were held on February 14 2022. The composition and the attendance of members at the meetings held during the FY 2022-23, are given below:

Director	Category	No. of meetings held	No. of meetings attended
Mr. Kanwaljit Singh Bains, Chairman	Non-Executive Independent Director	1	1
Shri Vinay Kumar Modi, Member	Non-Executive	1	1
Shri Umesh Kumar Khaitan, Member	Non-Executive Independent Director	1	1
Shri Amrit Kapur, Member	Non-Executive Independent Director	1	1

(b) Policy for Nomination and remuneration

The Remuneration Policy of the Company is directed towards rewarding and motivating for higher level of individual performance coupled with integrity, qualification expertise and experience of the person that would have a direct bearing on the Company’s performance in a competitive landscape. The Independent non-executive directors are paid fees for attending Board/Committee meetings. Remuneration to KMPs and other employees are paid as per HR Policy of the company, (NOMINATION AND REMUNERATION Policy is uploaded on company’s website at following weblink: http://www.modirubberlimited.com/financial-result_details.php?mid=3&sid=19);

(c) Remuneration to Directors

All pecuniary relationships or transactions of the Non-Executive Directors with the Company : Except the payment of sitting fee, the Company does not have any pecuniary relationship with any of its Non-Executive Directors as well as there is no transaction with the associates or relatives of the Non-Executive Directors during the financial year under review.

Criteria of making payments to non-executive Directors

Apart from receiving sitting fees, no Non-Executive Directors including Independent Directors received any fixed component & performance linked incentives from the company during the period under review.

Remuneration to Directors

The information/ details to be provided under Corporate Governance Code with regard to remuneration of Directors for the financial year 2022-23 are as follows:

Executive Directors: Non-Executive Directors: Name Mr. Alok Kumar Modi Ms. Piya Modi			(Amount	in Rs.)
Name	Salary	P.F. and other allowances	Benefits and linked services	Total
Mr. Alok Kumar Modi	NIL	NIL	NIL	NA
Ms. Piya Modi	3571200	428544	NIL	3999744

Note :-The Non-Executive independent Directors are paid remuneration by way of sitting fees, the details of which are mentioned below:

(	Amount in RS.)	Amount in RS.)
Name of the Non-Executive Director	Sitting Fees		Total
	Board Meetings	Committee Meetings*
Mr. Kanwaljit Singh Bains	30000	30000	60000
Mr. Vinay Kumar Modi	NIL	NIL	NA
Mr. Amrit Kapur	40000	35000	75000
Mr. Umesh Kumar Khaitan	40000	35000	75000

Details of total fees paid to Statutory Auditors

M/s. PNAM & Co, Chartered Accountants, have been appointed as the Statutory Auditors of the Company. MRL paidTotal 11.82Lacs including out of pocket expenses for the financial year ending 31[st] March 2023. The particulars of payment made to the statutory auditor and all entities in its network for the Financial Year ended March 31, 2023 are as follows:

pocket expenses for the financial year ending 31stMarch 2023. The particulars of payment mad work for the Financial Year ended March 31, 2023 are as follows:	e to the statutory auditor and all entities in its
	Amount
Total Fees paid by the Company for the audit and related services to M/s. PNAM & Co, Chartered Accountants	11.82 Lacs(including out of pocket expenses)
Total Fees paid by the Subsidiaries for the audit and related services to M/s. PNAM & Co, Chartered Accountants and all entities in its network.	8.36 Lacs
Other fees paid by the Company and its subsidiaries to M/s. PNAM & Co, Chartered Accountants and to all entities in its network	NA

3. STAKEHOLDERS’ RELATIONSHIP COMMITTEE

(a) Brief description of the Terms of Reference of the Committee

The Terms of reference and role of Stakeholders Relationship Committee covers the area as under:

Resolving the grievances of the security holders of the Company including complaints related to transfer/ transmission of shares, nonreceipt of annual report, non-receipt of declared dividends, issue of new/ duplicate certificates, general meetings etc.
Review of measures taken for effective exercise of voting rights by shareholders.
Review of adherence to the service standards adopted by the Company in respect of various services being rendered by the Registrar & Share Transfer Agent.
Review of the various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/ annual reports/ statutory notices by the shareholders of the company.
To carry any other duties as may be required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013 and rules made thereunder and delegated by the Board of Directors from time to time.

(b) Composition and terms and reference of committee

The Stakeholders Relations Committee formerly known as Shareholders’ / Investors’ Grievance Committee looks after the share transfer work besides redressal of shareholder complaints. The committee consists of Shri Vinay Kumar Modi as Chairman, and Shri KS bains, Amrit Kapur and Umesh Kumar

Khaitanas Members. In order to expediting process for transfer of shares, Board of directors have delegated power to approve transfer of shares upto 1000 to the Company Secretary and from 1001 to 5000 to the managing director and transfer of shares beyond 5000 are approved by the Committee. During the year under review, company did not receive more than 5000 shares from single shareholders for approval by the committee.

The Committee Meetings were held on May 28 2022The composition and the attendance of members at the meetings held during the FY 2022-23, is given below:

Director	Category	No. of meetings held	No. of meetings attended
Mr. Kanwaljit Singh Bains, Chairman	Non-Executive Independent Director	1	1
Shri Vinay Kumar Modi, Member	Non-Executive	1	1
Shri Umesh Kumar Khaitan, Member	Non-Executive Independent Director	1	1
Shri Amrit Kapur, Member	Non-Executive Director Independent Director	1	1

(b) Name and designation of Compliance Officer

The company secretary of the company acts as a compliance officer whose details are given as under:Shri S.K BAJPAI

Legal Head & Company Secretary Email: [email protected]

(c) Investors’ Grievances Redressal

The philosophy of the Company is to give utmost importance to the redressal of investor’s grievances. The Company has designated a separate e- mail ID, as mentioned hereunder, for investors to lodge their complaints: - [email protected]

During the year under review, complaints were received by the Company / Registrar and Share Transfer Agents from shareholders. All these complaints have since been redressed. There was no share transfer pending for registration as on 31st March, 2023.

4. Corporate Social Responsibility (“CSR”) Committee a) Composition

The composition of the Corporate Social Responsibility Committee as on March 31, 2023is as follows:

Name of the Member	Status	Category
Mr. Vinay Kumar Modi	Chairman	Non-Executive director
Mr. Alok Kumar Modi	Member	Executive Director
Mr. Kanwaljit Singh Bains	Member	Independent Director

b) Terms of reference of CSR Committee

Main terms of reference CSR Committee are as under:- .

To formulate and recommend to the Board, a CSR policy which shall indicate the activities to be undertaken by the Company as per the Companies Act, 2013;
To review and recommend the amount of expenditure to be incurred on the CSR related activities to be undertaken by the Company;
To institute a transparent monitoring mechanism for the implementation of the CSR projects , programs and activities undertaken the Company from time to time;
Any other matter as the CSR Committee may deem appropriate after approval of the Board of Directors or as may be directed by the Board of Directors from time to time.

Meetings of Independent Director:

The Independent Directors without presence of Executive Directors or Management had a meeting for the financial year 2022-23 to mainly review the performance of non-independent directors of the Board as a whole and also to assess the quality, quantity and timeliness of flow of information between Company Management and the Board.

GENERAL BODY MEETINGS

Location and time where the last four Annual General Meetings held are as under:-

	Year 49thAGN 48thAGM 47thAGM	Venue Dayawati Modi Public School, Modinagar Dayawati Modi Public School, Modinagar Dayawati Modi Public School, Modinagar	Date 30.09.2022 27.09.2021 29.09.2020	Time 11.30 A.M 11.30 A.M. 11.30 A.M

No Special Resolution has been passed last year through Postal Ballot
No Special resolution is proposed to be passed through Postal Ballot.

DISCLOSURES

Disclosures on materially significant related party transactions i.e. transactions of the company of material nature, with its promoters, directors or management, their subsidiaries or relatives etc that may have potential conflict with the interests of the company at large.

Modi Rubber Limited

Related Parties Disclosures in accordance with Indian Accounting Standard (Ind AS) 24 of The Institute of Chartered Accountants of India.

Subsidiary Companies	% Holdings
Modistone Ltd. (in liquidation)	55.32
Official Liquidator has taken possession of the Company w.e.f. 25.07.2002- the date of appointment of Official Liquidator
by Bombay High Court
	100
Superior Investment (India) Limited
	100
Spin Investment India Limited
Step-Down Subsidiary Companies
Uniglobe Mod Travels Pvt. Ltd
Joint Venture
Gujarat Guardian Ltd.		21.24
Asahi Modi Materials Pvt. Ltd.		49.00
Modi Marco Aldany Pvt Ltd		50.00
Associate

Vinura Beverages Pvt. Ltd. (An Associate of a wholly owned subsidiary)

Key Management Personnel:

Mr. Alok Kumar Modi-Managing Director Miss Piya Modi-Whole Time Director Mr. Sanjeev Kumar Bajpai-Company Secretary Mr. Kamal Gupta-Chief Financial Officer (CFO) Vinay Kumar Modi-Non Executive Chairman Kanwaljit Singh Bains-Non Executive Independent Director Amrit Kapur-Non Executive Independent Director Umesh Khaitan-Non Executive Independent Director

Relatives of Key Management Personnel Mrs. Chander Bala Modi (Mother of Mr. Alok Kumar Modi) Mrs. Archana Singhania (Sister of Mr. Alok Kumar Modi) Mrs. Ritika Modi (Wife of Mr. Alok Kumar Modi) Enterprises in which Key Management Personnel and relatives of Key Management Personnel has significant influence

Leaf Investment Pvt. Ltd. Mod Fashions and Securities Pvt. Ltd Uniglobe Travel (South Asia) Pvt. Ltd Maple Bear Education Pvt. Ltd. M/s Khaitan & Khaitan

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Details of non-compliance by the Company, penalties, strictures imposed on the Company by stock exchange or SEBI or any statutory authority on any matter related to capital markets during the last three years.
The Company complies with all the mandatory requirements specified under Listing Regulations, MEANS OF COMMUNICATION
The Company has been sending Annual Reports, notices and other communications to the Shareholders through the prescribed modes under the Act like postage / Courier / electronically if email id of the shareholder is registered with the company.
The Quarterly, Annual Results of the Company as per the statutory requirement are generally published in the The Pioneer (English and Hindi Newspapers) and are sent to the Stock Exchanges.

The quarterly and Annual Results along with additional information are also posted on the website of the Company www.modirubberlimited.com No representation was made to the Analysts. A Management Discussion and Analysis Report which forms part of the Annual Report are given by separate annexure and are attached to the Directors’ Report.

GENERAL INFORMATION

Date, time and venue of the Annual General Meeting : 29th September 2023, 11.30 A.M., Modinagar-201 204 Book Closure : 24.09.2023 to 30.09.2023 (both days inclusive) Financial Calendar : April 01, 2022 to March 31, 2023 Dividend payment date : Nil Listing on Stock Exchanges : The Bombay Stock Exchange Ltd. (BSE) The National Stock Exchange of India Ltd. (NSE ) Stock code : MODIRUBBER (NSE) : MODIRUBB (BSE) / 500890 Listing fees : Duly paid for 2022 -23 Plant Location : Modinagar (under possession of OL) Registrar and Transfer Agents: : Mas Services Ltd., :T-34, 2[nd] Floor, Okhla Industrial Area, Phase-II, New Delhi-110020,Ph:- 26387281 /82/83-Fax:-26387384,email:[email protected],website: www.masserv.com\

Share Transfer System

M/s. Mas Services Ltd. is the Share Transfer Agent of the Company for handling both physical and demat share registry work. Shares received for transfer complete in all aspects, in physical form are registered and dispatched normally within three weeks. Demat confirmations are normally sent within two weeks.

Dematerialization of Shares and Liquidity Over 79.99% of the shares have been dematerialized upto 31.03.2023 Outstanding GDRs / ADRs / Warrants or any convertible instruments, conversion date and likely impact on equity. The Company has not issued any GDRs / ADRs / Warrants/ or any convertible instruments.

Address for Correspondence for transfer/dematerialization of shares, and anyotherquery: Mas Services Ltd.,T-34, 2nd Floor, Okhla Industrial Area, Phase - II, New Delhi - 110 020, Ph:- 26387281/82/83 - Fax:- 26387384,email:- [email protected] :www.masserv.com Historical Data-Bombay Stock Exchange of India (BSE)	Address for Correspondence for transfer/dematerialization of shares, and anyotherquery:	Any query on Annual Report
	Mas Services Ltd.,T-34, 2nd Floor, Okhla Industrial Area, Phase - II, New Delhi - 110 020, Ph:- 26387281/82/83 - Fax:- 26387384,email:- [email protected] :www.masserv.com	Secretarial Department, Modi Rubber Ltd, at 4-7C, DDA Shopping Centre, New Friends Colony, New Delhi – 110 025, Phone 011 – 26848416,26848417 Fax No.011 - 26837530

Mont h	Open Price	High Price	Low Price	Close Price	No.of Shares	No. of Trades	Total Turnove r (Rs.)	Deliverabl e Quantity	% Deli. Qty to Traded Qty	Spread High- Low	Sprea d Close- Open
Apr- 22	69	76.4	64.85	67.65	18196	293	1254975	18196	100	11.55	-1.35
May- 22	65.4	69.4	59	61.65	6624	93	434748	6624	100	10.4	-3.75
Jun-22	64.4	66.95	51.55	54.25	9749	175	558595	9749	100	15.4	-10.15
Jul-22	54.6	61	53.05	56.95	4068	109	230614	4068	100	7.95	2.35
Aug- 22	55.35	59.7	52.35	57.75	10317	206	569426	9427	91.37	7.35	2.4
Sep- 22	57.85	89.25	55.75	79.75	35430	459	2824548	34260	96.7	33.5	21.9
Oct- 22	77	80.8	69.75	74.75	6738	151	500125	6476	96.11	11.05	-2.25
Nov- 22	71.25	77	68.7	71.6	10895	164	782009	10895	100	8.3	0.35
Dec- 22	69.5	76	65	71.25	9611	187	678735	9611	100	11	1.75
Jan-23	70	73.95	66.75	69.6	8307	157	577505	8307	100	7.2	-0.4
Feb- 23	67.25	70.5	65.85	68.9	1159	38	79254	1159	100	4.65	1.65
Mar- 23	68.9	68.9	55.1	57.83	6741	72	412038	6741	100	13.8	-11.07
Apr- 23	59.5	64.5	58.02	59.5	3179	50	190397	3179	100	6.48	0
May- 23	60	66	60	63.09	3664	71	231789	3664	100	6	3.09
Jun-23	65	67	60.79	61.5	4555	110	285526	4555	100	6.21	-3.5
Jul-23	59.01	76.85	59.01	68	17184	250	1195061	17184	100	17.84	8.99
Aug- 23	70.99	76.12	67.64	71.5	13020	133	949017	13020	100	8.48	0.51
Sep- 23	72	72.49	70	71	624	18	44296	154	24.68	2.49	-1

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Theaforesaid chart is based on the monthly closing price of the shares of MRL vs Nifty and Sensex

Distribution of Shareholding

The following is the distribution pattern of shareholding of equity shares of the Company as on 31.03.2023: NOMINAL VALUE OF EACH SHARE - RS. 10/-


MODI RUBBER LIMITED
DISTRIBUTION SCHEDULE AS ON 31/03/2023
NOMINAL VALUE OF EACH SHARE - RS. 10/-
NO OF SH HOLDERS	% TO TOTAL	SHARE HOLDING OF NOMINAL VALUE OF RS	NO OF SHARE	AMOUNT IN RS	% TO TOTAL
12574	95.373	1 TO 5000	1121568	11215680	4.479
379	2.875	5001 TO 10000	268995	2689950	1.074
131	0.994	10001 TO 20000	190042	1900420	0.759
37	0.281	20001 TO 30000	91694	916940	0.366
12	0.091	30001 TO 40000	42233	422330	0.169
7	0.053	40001 TO 50000	30891	308910	0.123
17	0.129	50001 TO 100000	126087	1260870	0.504
27	0.205	100001 AND ABOVE	23169022	231690220	92.526
13184	100	TOTAL	25040532	250405320	100
TOTAL SHARE HOLDERS IN NSDL		3261	TOTAL SHARES IN NSDL		19572089
TOTAL SHARE HOLDERS IN CDSL		2551	TOTAL SHARES IN CDSL		458612
TOTAL SHARE HOLDERS IN PHY		7421	TOTAL SHARES IN PHY		5009831

TOTAL SHARE HOLDERS		13233	TOTAL SHARES		25040532

49		HOLDERS ARE COMMON IN DEMAT & PHYSICAL

SUMMARY UPTO 1LAC AND MORE THEN 1LAC AS ON 31/03/2023

DEFINATION	NO OF SHARE Holders	PHYSICAL HOLDING	CDSL HOLDING	NSDL HOLDING	Total HOLDING
UP TO 1 LAC	12939	917251	288698	552335	1758284
MORE THEN 1 LAC	12	0	140807	388592	529399
Total	12951	917251	429505	940927	2287683

Shareholding pattern as on 31.03.2023

No of Shareholders % of Total Shareholding

No. of Shares Amount

Percentage

12574	95.373	1 TO 5000	1121568	11215680	4.479
379	2.874	5001 TO 10000	268995	2689950	1.074
131	0.993	10001 TO 20000	190042	1900420	0.758
37	0.280	20001 TO 30000	91694	916940	0.366
12	0.091	30001 TO 40000	42233	422330	0.168
7	0.053	40001 TO 50000	30891	308910	0.123
17	0.128	50001 TO 100000	126087	1260870	0.503
27	0.204	100001 AND ABOVE	23169022	231690220	92.526
13184	100.000	TOTAL	25040532 250405320	100.000

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Details of material/wos subsidiaries

a. Spin Investment India Limited Incorporated on May 25, 1982 at New Delhi
Name of Statutory Auditors: M/s M/s PNAM & Co. LLP, Chartered Accountants (Firm Registration No. 001092N)
b. Superior Investment (India) Limited Incorporated on October 20,1981 at New Delhi

Name of Statutory Auditors: M/s PNAM & Co. LLP, Chartered Accountants (Firm Registration No. 001092N)

DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT

I, Alok Kumar Modi, Managing Director of Modi Rubber Limited (“the Company”) hereby declare that, to the best of my information, all the Board Members and Senior Management Personnel of the Company have affirmed their compliance and undertaken to continue to comply with the Code of Conduct laid down by the Board of Directors of the Company.

For and on behalf of the Board of Directors

Alok Modi Piya Modi Place: New Delhi (DIN: 00174374) (DIN: 03623417) Date: August 14[th] 2023 Managing Director Wholetime Director

Corporate Governance Certificate

CERTIFICATE ON COMPLIANCE WITH THE REGULATIONS OF CORPORATE GOVERNANCE

The Members

MODI RUBBER LIMITED (CIN: L25199UP1971PLC003392)

MODI NAGARMODI NAGAR, Ghaziabad, UTTAR PRADESH - 201204

We have examined the compliance of conditions of Corporate Governance by MODI RUBBER LIMITED (“the Company”), for the financial year ended on March 31, 2023 as stipulated under Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and Para C, D and E of Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

The compliance of conditions of Corporate Governance is the responsibility of the management of the Company. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated under Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and Para C, D and E of Schedule V to the Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Place: New Delhi For Sanjay Grover & Associates Date: September 04, 2023 Company Secretaries Firm Registration No.: P2001DE052900 Peer Review Certificate No.: 1352/2021 Vijay K. Singhal Partner UDIN.: A021089E000933484 CP No.: 10385/Mem. No. A21089

CEO AND CFO CERTIFICATION

We, Mr. Kamal Gupta, Chief Financial Officer and Ms. Piya Modi, Wholetime director, of Modi Rubber Limited to the best of our knowledge and belief, certify that:

a. We have reviewed financial statements and the cash flow statement for the year ended on March 31, 2023 and that to the best of our knowledge and belief:
these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Company’s code of conduct;
c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
d. We have indicated to the auditors and the Audit committee:
Significant changes in internal control over financial reporting during the year; \
Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and
Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company’s internal control system over financial reporting.

For and on behalf of the Board of Directors

Date: August 14[th] 2023 Place: New Delhi

Piya Modi Kamal Gupta Wholetime director Chief Financial Officer

P N A M & CO. LLP

Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To THE MEMBERS OF MODI RUBBER LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Modi Rubber Limited, (“the Company”) , which comprise the Balance sheet as at March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date and a summary of significant accounting policies and other explanatory information (hereinafter referred to as the “standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (“SA”s) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the standalone 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 (“ICAI”) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

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Key Audit Matters

Key audit matters (‘KAM’) are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Sr. No.	The key audit matter	Auditor’s Response
1	Evaluation of contingencies & uncertain tax positions Prior to closure of operations by illegal strikes of the workers in August 2001, and thereafter sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008 (refer note 42 & 43 of financial statements), the Company operated in multiple jurisdictions and subjected to periodic challenges by local tax authorities, income tax authorities, labour law authorities & other statutory authorities on a range of various tax & other matters during the normal course of business. These involve significant management judgment to determine the possible outcome of the uncertain tax positions & other contingencies consequently having an impact on related accounting and disclosures in the standalone financial statements. Refer Note 2(k), Note 24(a) & Note 41 to the standalone financial statements.	Principal Audit Procedures Performed Our audit procedures include the following substantive procedures: • Obtained understanding of key contingencies & uncertain tax positions and; • We along with our internal legal experts: ➢ Read and analysed select key correspondences, external legal opinions / consultations by management for key contingencies & uncertain tax positions; ➢ Discussed with appropriate senior management and evaluated management’s underlying key assumptions in estimating the tax provisions; and ➢ Assessed managements estimate of the possible outcome of the disputed cases.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Board’s Report, but does not include the standalone financial statements and our auditors’ report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we

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conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Other Matter

The Standalone Financial Statements of the Company for the year ended 31st March 2022 were audited by the predecessor auditor, who had expressed an unmodified opinion on those Financial Statements vide their audit report dated 28[th] May 2022.

Management’s Responsibility for the Standalone 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 standalone 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. 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 standalone financial statements 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 and Board of Directors are 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.

Board of Directors is also responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibility for the Audit of the Standalone 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 standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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Identify and assess the risks of material misstatement of the standalone 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.
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 Act, if applicable we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 standalone 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 auditors' 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. 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 the Statement of Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS as specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March 31, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, 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 with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate report in “Annexure A” to this report. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
g. In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
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, as amended in our opinion and to the best of our information and according to the explanations given to us:

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i. The Company has disclosed the impact of pending litigation on its financial position in its financial statements- Refer note 41 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 its knowledge and belief, no funds (which are material either individually or in the aggregate) 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, whether, 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;

(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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;

(c) Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The company has not declared or paid any dividend during the year and has not proposed final dividend for the year.

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vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

2. As required by the Companies (Auditor’s Report) Order, 2020 (the “Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.

For P N A M & Co. LLP

Chartered Accountants ICAI Firm Reg. No.: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

UDIN : Date : 26[th] May 2023 Place : New Delhi

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ANNEXURE “A” TO INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 (f) under “Report on Other Legal and Regulatory Requirements” section of our report of even date)

Report on the Internal Financial Controls over financial reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Modi Rubber Limited, (“the Company”) as on March 31, 2023, in conjunction with our audit of the standalone 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.

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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 March 31, 2023, 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 P N A M & Co. LLP Chartered Accountants ICAI Firm Reg. No.: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

UDIN : Date : 26[th] May 2023 Place : New Delhi

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ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of the Company of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

i. In respect of the Company’s Property, Plant and Equipment and Intangible Assets:
(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of right-of-use assets.
- (B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a program of physical verification of Property, Plant and Equipment and right-of-use assets (except the assets which the Company has no access) so to cover all the assets once every three years. Accordingly, physical verification of Property, Plant and Equipment and right-of-use assets (except the assets which the Company has no access) was carried out in financial year 2022-23 which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No major discrepancies were noticed during such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company as at the balance sheet date except the following cases (Refer Note 3 of standalone financial statements).

Description of property	Gross carrying value (Rs. in Lacs)	Held in name of	Whether promoter, director or their relative or employee	Period held – indicate range, where appropriate	Reason for not being held in name of company
Patel House, Mumbai-	27.49	Parmanand Tulsidas Patel	No	May 06, 1982	Pending for registration
15, Friends Colony West, New Delhi - Freehold Land	2.07	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registration
15, Friends Colony West, New Delhi - Buildings	18.96	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registration

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(d) The Company has not revalued any of its Property, Plant and Equipment (including right- of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii. (a) According to the information and explanations given to us, the management has not conducted physical verification of inventory during the year due to no access to such inventory (Refer note 8 and 44 to the financial statements).
(b) The Company has not availed working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets; and hence reporting under clause 3(ii)(b) of the Order is not applicable.
iii. In our opinion, and according to the information and explanations given to us, the Company has provided loans or advances in the nature of loans, secured or unsecured, to companies during the year, in respect of which:
(a) The Company has provided loans or provided advances in the nature of loans to it’s group companies, details of which is given below:

Particulars	Loan Amount(Rs. in Lacs)
Aggregate amount granted during the year - Joint Ventures - Others	1.00 -
Balance outstanding (including interest due) at the balance sheet date in respect of above - Joint Ventures - Others	Nil Nil

(b) The investments made, guarantees provided, security given and the terms and conditions of the grant of all the above-mentioned loans and guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.
(c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest have generally been regular as per stipulation.
(d) In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.
(e) In our opinion and according to the information and explanations given to us, there are no loans which has been renewed or extended or fresh loan granted to settle the overdues of existing loans given to the same parties and hence no reporting is made in this regard.

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(f) In our opinion and according to the information and explanations given to us, the company has granted unsecured loan without specifying any terms or period of repayment, details of the same is given below:

Particulars	Amount(Rs. in Lacs)
Aggregate amount of loans
- Repayable on demand and agreement does not specifyanyterms orperiod of repayment(A)	1.00
- Total Loans –(B)	Nil
Percentage of loans/advances in nature of loan to the total loans(A/B)	-

iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Act in respect of the loans.
v. The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable.
vi. In our opinion, and according to the information and explanations given to us, the requirement for maintenance of cost records pursuant to the companies (cost records and audit) Rules, 2014 specified by the Central Government of India under Section 148 of the Act are not applicable to the Company for the year under audit.
vii. In respect of statutory dues:
(a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including goods and services Tax, provident fund, employee’s state insurance, income-tax, duty of customs and any other statutory dues to the appropriate authorities during the year.
- According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at March 31, 2023 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no disputed statutory dues including goods and services tax, provident fund, employee’s state insurance, income-tax, duty of customs and any other statutory dues to the appropriate authorities other than the following:

Name of the statute	Nature of dues	Amount (Rs. Lacs)	Period to which the amount relates	Forum where dispute is pending
Central Excise Act, 1944	Excise Duty	69.11	July, 2001	Allahabad High Court
Foreign Trade Development and	Custom Duty	200.00	1995-1996	Additional DGFT Commissioner (A)

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Regulation Act, 1992
Income Tax Act, 1961	Income Tax	944.73	2003-2004	Delhi High Court
PGST ACT, 1948	Sales Tax	17.53	1992 to 2002	Deputy Excise & Taxation Commissioner, Jalandhar
Bihar Sales Tax Act	Sales Tax	101.23	2001-2001	Commercial Taxes Tribunal, Patna
UP Trade Tax Act	Sales Tax	18.25	1977-1978	Allahabad High Court
UP Trade Tax Act	Sales Tax	33.65	2000-2001	Allahabad High Court
UP Trade Tax Act	Sales Tax	23.03	2001-2002	Allahabad High Court
UP Trade Tax Act	Sales Tax	70.05	2001-2002	Allahabad High Court

viii. According to the information and explanations given to us, there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix. (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(c) The Company has not taken any term loan during the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have not been used during the year for long-term purposes by the Company.
(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.
(f) The Company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.
x. (a) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or

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Chartered Accountants

private placement of shares or convertible debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

xi. (a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT- 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.
(c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
xiii. In our opinion, the Company are in compliance with Section 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.
xv. In our opinion during the year the Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. (a) In our opinion, the Company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.
xviii. There has been resignation of the statutory auditors during the year and we have taken into consideration the issues, objections or concerns raised by the outgoing auditors in their audit report.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any

902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

t: +91 11 4150 4766 e: [email protected] w: www.pnam.co

P N A M & CO. LLP LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

P N A M & CO. LLP

Chartered Accountants

material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

xx. The Company is not required to spent any amount towards Corporate Social Responsibility (CSR). Accordingly, reporting under clause 3(xx)(a) and (b) of the Order is not applicable.

For P N A M & Co. LLP

Chartered Accountants ICAI Firm Reg. No.: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

UDIN : Date : 26[th] May 2023 Place : New Delhi

902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

t: +91 11 4150 4766 e: [email protected] w: www.pnam.co

P N A M & CO. LLP LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

Modi Rubber Limited CIN: L25199UP1971PLC003392

Standalone Balance Sheet as at March 31, 2023

Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Balance Sheet as at March 31, 2023	Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Balance Sheet as at March 31, 2023
			(Amount in Rs. lacs)
Particulars	Note No.	As at 31-Mar-23	As at 31-Mar-22
ASSETS Non-current assets Property, plant and equipment Right-of-use assets Capital work-in-progress Other intangible assets Financial assets Investments Other financial assets Other non-current assets Total non-current assets Current assets Inventories Financial assets Investments Trade receivables Cash and cash equivalents Loans Other financial assets Current tax (net) Other current assets Total current assets	3 3 3 3 4 5 7 8 9 10 11 12 13 14 15	21,268.97 103.85 1,025.59 1.09 8,109.42 4,584.00 326.20	21,442.08 112.53 167.09 0.73 8,302.36 4,531.21 332.52
		35,419.12 - 5,282.68 105.21 290.30 49.73 22.96 363.60 287.12	34,888.52 - 5,462.49 29.85 214.89 39.16 3.47 373.88 832.24
		6,401.60	6,955.99
Total Assets		41,820.72	41,844.50
EQUITY AND LIABILITIES Equity Equity share capital Other equity Total equity LIABILITIES Non-Current liabilities Financial liabilities Borrowings Lease liability Other financial liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Financial liabilities Current maturities of long term borrowings Lease liability Trade payables:- Total outstanding dues of micro enterprises and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises Other financial liabilities Other current liabilities Total current liabilities	16 17 18 (a) 18 (b) 19 6 20 21 18 (b) 22 23 24	2,504.05 32,563.55	2,504.05 32,425.86
		35,067.60 250.00 112.14 12.94 4,021.43 -	34,929.91 250.00 114.85 17.49 4,090.59 3.33
		4,396.51 - 17.16 17.22 749.72 252.65 1,319.86	4,476.27 11.51 17.16 - 771.87 313.95 1,323.83
		2,356.61	2,438.32
Total Equity and Liabilities		41,820.72	41,844.50

Significant accounting policies 2 The accompanying notes 1 to 49 form an integral part of these financial statements. As per our report of even date

For P N A M & Co. LLP Chartered Accountants ICAI FRN: 001092N/N500395

For and on behalf of the Board of Directors of Modi Rubber Limited

Alok Kumar Modi Managing Director DIN: 00174374

S.K. Bajpai Head- Legal & Company Secretary ACS: 10110

Abhishek Nahta

Partner Membership No.: 513559

Piya Modi

Director

DIN: 03623417

Kamal Gupta Chief Financial Officer

Amrit Kapur Director DIN:- 00508710

Place : New Delhi Date : 26/05/2023

Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Statement of Profit and Loss for the year ended March 31, 2023

Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Statement of Profit and Loss for the year ended March 31, 2023	Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Statement of Profit and Loss for the year ended March 31, 2023
			(Amount in Rs. lacs)
Particulars	Note No.	For the year ended March 31, 2023	For the year ended March 31, 2022
Revenue Revenue from operations Other income Total revenue Expenses Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses Profit/ (Loss) before exceptional item and tax Exceptional items Provision for diminution in the value of investment Profit/ (Loss) before tax Tax expense Current tax Current year Earlier years Deferred tax Total tax expense Profit/ (Loss) for the year Other comprehensive income Items that will not be reclassified to profit or loss - Remeasurement of post employment benefit obligations - Investment in equity instruments measured at fair value -Revaluation surplus on freehold land Income tax relating to items that will not be reclassified subsequently to profit or loss - Remeasurement of post employment benefit obligations - Investment in equity instruments measured at fair value -Revaluation surplus on freehold land Other comprehensive income for the year (net of income tax) Total comprehensive income for the year	25 26 27 28 29 30 45 32 32 32	271.58 3,265.20	215.57 3,135.83
		3,536.78 354.56 46.89 212.24 1,796.71	3,351.40 357.21 59.03 259.81 1,954.88
		2,410.40	2,630.93
		1,126.38 -	720.47 -
		1,126.38 252.52 66.89 10.33	720.47 220.69 - (23.33)
		329.74	197.36
		796.64	523.10
		(0.32) (738.11) - 0.09 79.39 -	6.96 1,088.35 18,938.52 (1.94) (137.58) (4,214.96)
		(658.95)	15,679.35

		137.69	16,202.45

The accompanying notes 1 to 49 form an integral part of these financial statements

Earnings per equity share (nominal value of Rs 10 per share) Basic & Diluted (Rs)

As per our report of even date For P N A M & Co. LLP Chartered Accountants ICAI FRN: 001092N/N500395

3.18 2.09

For and on behalf of the Board of Directors of Modi Rubber Limited

Abhishek Nahta Partner Membership No.: 513559

Alok Kumar Modi S.K. Bajpai Managing Director Head- Legal & DIN: 00174374 Company Secretary ACS: 10110

Piya Modi Director DIN: 03623417

Kamal Gupta Chief Financial Officer

Place : New Delhi Date : 26/05/2023

Amrit Kapur Director DIN:- 00508710

Modi Rubber Limited CIN: L25199UP1971PLC003392

Standalone Statement of changes in equity for the year ended March 31, 2023

A. Equity Share Capital

For the year ended March 31, 2023

For the year ended March 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2023
(Amount in Rs. lacs)
Balance as at March 31, 2022	Changes in equity share capital during theyear	Balance as at March 31, 2023
2,504.05	-	2,504.05
For the year ended March 31, 2022 (Amount in Rs. lacs)
Balance as at March 31, 2021	Changes in equity share capital during the year	Balance as at March 31, 2022
2,504.05	-	2,504.05

B. Other Equity

For theyear ended March 31, 2023	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	Reserves & Surplus			Items of Other comprehensive income			Total
	Capital reserve	Security premium reserve	Retained earnings	Actuarial gain/ (loss)	Equity instruments measured at fair value	Revaluation Surplus

Balance as at March 31, 2022	19.26	5,782.32	9,913.78	40.74	1,946.20	14,723.56	32,425.86
Profit/ (loss)forthe year	-	-	796.64	-	-	-	796.64
Othercomprehensiveincome	-	-	-	(0.32)	(738.11)	-	(738.43)
Income taxonOCI items	-	-	-	0.09	79.39	-	79.48
Total Comprehensive Income	-	-	796.64	(0.23)	(658.72)	-	137.69

Balance as at March 31, 2023	19.26	5,782.32	10,710.43	40.51	1,287.48	14,723.56	32,563.55
For theyear ended March 31,2022	(Amount in Rs. lacs)
Particulars	Reserves & Surplus			Items of Other comprehensive income			Total
	Capital reserve	Security premium reserve	Retained earnings	Actuarial gain/ (loss)	Equity instruments measured at fair value	Revaluation Surplus

Balance as atMarch31,2021	19.26	5,782.32	9,390.68	35.72	995.43	-	16,223.41
Profit/ (loss)forthe year	-	-	523.10	-	-	-	523.10
Othercomprehensiveincome	-	-	-	6.96	1,088.35	18,938.52	20,033.83
Income taxonOCI items	-	-	-	(1.94)	(137.58)	(4,214.96)	(4,354.48)
TotalComprehensiveIncome	-	-	523.10	5.02	950.77	14,723.56	16,202.45

Balance as atMarch31,2022	19.26	5,782.32	9,913.78	40.74	1,946.20	14,723.56	32,425.86

The accompanying notes 1 to 49 form an integral part of these financial statements

As per our report of even date For P N A M & Co. LLP Chartered Accountants ICAI FRN: 001092N/N500395

Abhishek Nahta Partner Membership No.: 513559

Amrit Kapur Director DIN:- 00508710

For and on behalf of the Board of Directors of

Modi Rubber Limited

S.K. Bajpai Head- Legal & Company Secretary ACS: 10110

Alok Kumar Modi Managing Director DIN: 00174374

Kamal Gupta Chief Financial Officer

Piya Modi Director DIN: 03623417

Place : New Delhi Date : 26/05/2023

Modi Rubber Limited CIN: L25199UP1971PLC003392 Standalone Statement of Cash Flows for the year ended March 31, 2023

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31,2022
A Cash flow from operating activities Profit before tax Adjustments for: Depreciation and amortization Provision of doubtful debts and advances Allowance for doubtful advances Provision for diminution in the value of investment (Gain)/ loss on sale of property, plant and equipment (net) (Gain)/ loss on sale of investments Financial assets measured at fair value Interest on security deposit at amortised cost Interest expenses Interest on leases Liabilities written back Interest income Dividend income Unrealised foreign exchange losses /(gains) (net) Sundry balances written off Unwinding of discount on financial assets at amortized cost Operating Profit/ (loss) before working capital changes Adjustments for: Increase/(decrease) in other non-current financial liabilities Increase/(decrease) in other non-current liabilities Increase/(decrease) in other current financial liabilities Increase/(decrease) in other current liabilities Increase/(decrease) in other trade payables Decrease/(increase) in loans and advances Decrease/(increase) in other non-current assets Decrease/(increase) in trade receivables Decrease/(increase) in other non current financial assets Decrease/(increase) in other current financial assets Decrease/(increase) in other current assets Cash (used in) operations Income taxes (paid) / refund (net) Net cash generated by / (used in) operations (A) B Cash flow from investing activities Dividend received Interest received Purchase of property, plant and equipment & Intangibles Proceeds from sale of property, plant and equipment & Intangibles Proceeds from sale of short term investments Purchase of short term investments Net cash generated by / (used in) investing activities (B) C Cash flow from financing activities Increase/ (decrease) in borrowings Repayment of leases Interest paid Net cash generated by / (used in) financing activities (C) Net increase/(decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	1,126.38 212.24 25.86 1.00 - (0.41) (27.87) (267.17) - 1.76 14.44 (13.95) (285.51) (2,497.64) - 2.43 -	720.47 259.81 3.65 157.99 330.81 (18.59) (16.60) (179.74) (0.97) 13.73 13.75 (0.47) (283.87) (2,551.20) (0.02) 51.40 0.88
	(1,708.44) (7.27) (3.33) (47.35) (3.97) (4.93) (10.57) 5.99 (101.22) (27.71) (19.41) 541.70	(1,498.99) (9.19) (0.98) 284.34 (10.64) - 97.99 22.89 45.53 (3,089.93) 2,903.09 (785.16)
	(1,386.51) (309.13)	(2,041.04) (102.46)
	(1,695.64)	(2,143.50)
	2,497.64 260.43 (893.79) - 6,558.22 (6,621.01)	2,551.20 328.62 (499.06) 20.00 2,812.09 (2,879.92)
	1,801.48	2,332.92
	(11.51) (17.16) (1.76)	(30.23) (23.81) (13.73)
	(30.43)	(67.77)
	75.41 214.89	121.65 93.24
	290.30	214.89

Modi Rubber Limited CIN: L25199UP1971PLC003392

Standalone Statement of Cash Flows for the year ended March 31, 2023

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31,2022

Notes:

(i) The Statement of cash flows has been prepared under the indirect method as set out in Ind AS- 7 'Statement of Cash Flows'. (ii) Amounts in brackets represent cash outflows.

(iii) Purchase of Property, plant and equipment includes adjustments for movement of capital work-in-progress during the year.

(iv) Components of cash and cash equivalents included under cash and bank balances are as below:

Cash and cash equivalents (note 11) Cash on hand Balances with banks - In current account Total	3.36 3.56 286.94 211.33
	290.30 214.89

The accompanying notes 1 to 49 form an integral part of these financial statements.

As per our report of even date For P N A M & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants Modi Rubber Limited ICAI FRN: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

Alok Kumar Modi S.K. Bajpai Managing Director Head- Legal & DIN: 00174374 Company Secretary ACS: 10110 Piya Modi Director Kamal Gupta DIN: 03623417 Chief Financial Officer

Place : New Delhi Date : 26/05/2023

Amrit Kapur Director DIN:- 00508710

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

1. 1.1 CORPORATE INFORMATION

Modi Rubber Ltd. (“the Company”) is a company domiciled in India, with its registered office situated at Modi Bhawan, Modinagar-201204, District Ghaziabad, Uttar Pradesh. The Company has been incorporated under the provisions of Indian Companies Act and its equity shares are listed on the BSE & NSE in India.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENT

These financial statements have been prepared on accrual basis of accounting and comply in all material aspects with the Indian Accounting Standards (Ind AS) that are prescribed under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there after.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, as below.

Ind AS 16 – Property Plant and equipment

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 37 – Provisions, Contingent Liabilities and Contingent Assets

The amendment specifies that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022, although early adoption is permitted. The Company has evaluated the amendment and the impact is not expected to be material.

2. SIGNIFICANT ACCOUNTING POLICIES

Functional and Presentation Currency

The financial statements have been prepared and presented in Indian Rupees (`), which is also the Company’s functional currency.

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

Basis of measurement

The Ind AS financial statements has been prepared on historical cost basis, except certain class of nonfinancial assets (refer accounting policy on property, plant and equipment), certain financial assets, and liabilities that is measured at fair value.

Rounding off

All amounts in the financial statement and accompanying notes are presented in ` Lakhs and have been rounded-off to two decimal places unless stated otherwise.

Use of estimates

The preparation of the Ind AS financial statements requires management to make estimates, judgements and assumptions that affect the reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of Ind AS financial statements and reported amounts of income and expenses during the period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

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. Estimates, judgements and assumptions are based upon management’s evolution of the relevant fact and circumstances as on the date of financial statement. 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.

All the Assets and liabilities have been classified as current and non-current based on the company’s normal operating cycle of 12 months and other criteria set out in Schedule III of the Companies Act, 2013.

The Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. This is based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents.

a) Inventories

Inventories comprising of consumable and spares are valued at lower of cost and net realizable value after providing for obsolescence.

Costs comprise all cost of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition.

b) Property, Plant and equipment

i) Items of property, plant & equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. When significant part of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Subsequent costs are included in the assets carrying amount or recognised as a separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

company and the cost can be measured reliably. All other repair and maintenance cost are recognised in the statement of profit and loss as incurred.

Capital Work-in-progress comprises of the cost of property, plant & equipment that are not yet ready for their intended use at the reporting date. Capital Work-in-Progress is carried at cost, comprising direct cost, related incidental expenses and interest on borrowing to the extent attributed to them.

Any gain or losses arising from retirement or disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss on the date of retirement or disposal.

Leasehold land, building on leasehold land as well as building on freehold land that are neither held to earn rentals nor for capital appreciation do not qualify as investment property.

During the year ending on March 31, 2022, the Company has changed its accounting policy with respect to measurement of freehold land. According to the revised policy, freehold land (other than land under dispute) will be required to be revalued and measured at fair value, based on periodic valuation done by external valuers using market approach. Any revaluation surplus will be recorded in Other Comprehensive Income and credited to Land revaluation reserve in other equity. This revaluation surplus is not available for distribution to shareholders.

ii) Intangible assets acquired separately are measured on initial recognition at cost. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized

Subsequent measurement (Impairment, depreciation & amortisation and useful lives)

At each balance sheet date, items of property, plant and equipment are reviewed to determine whether there is any indication of impairment. If any impairment indicator exists, estimate of the recoverable amount of the property, plant and equipment is made. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount rate.

Reversal of impairment losses recognised in earlier years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for that asset in earlier years.

c) Depreciation and Amortization

i) Depreciation on Plant & Machinery is provided on Straight Line method and other assets on the written down value method over the useful estimated lives of assets as mentioned in Schedule II of the Companies Act, 2013. The estimated useful lives of the assets are as follows:

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

Assets	Useful Life
Building	30-60 years
Plant &Machinery	15 years
Furniture &Fixtures	10 years
Electrical Installation	10 years
Vehicles	8 years
OfficeEquipment	5 years
Computers	3 years

ii) Intangible assets are amortized on a straight line basis over the estimated useful economic life
iii) The company considers purchase of Mobile phones as revenue expenditures, hence they are charged to statement of profit & loss in the year of its purchase.
iv) Depreciation on Investment property is provided on the written down value method over the useful estimated lives of assets as mentioned in Schedule II of the Companies Act, 2013. Useful lives and residual values of all the fixed assets are reviewed annually.

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Revenue from Operations

Revenue is measured in accordance with IND AS 115. Revenue comprises of sale of rooms, foods & beverages and allied services relating to guest house operations. Revenue is recognised upon rendering of services, provided persuasive evidence of an arrangement exists, tariff/rates are fixed or are determinable and collectability is reasonably certain. Revenue from sales of goods or rendering of services is net of indirect taxes, returns or discounts.

Rental income from operating leases is recognized on a straight-line basis over the lease term.

Interest

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding.

Dividend

Dividend income is recognized when the company’s right to receive dividend is established by the reporting date.

Other Incomes are recognized on accrual basis.

e) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current Tax

The tax currently payable is based on taxable profits for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company’s current tax is

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and Deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Minimum Alternate Tax

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

f) Earning per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earning per share is the net profit for the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue.

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares that could have been issued upon conversion.

g) Leases

The Company accounts for each lease component within the contract as a lease separately from nonlease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate standalone price of the non-lease components. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss. The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

Company as a lessor

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance lease, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

h) Foreign Exchange Transactions

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees.

In preparing the financial statements, transactions in currencies other than the Company's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

i) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

j) Employee Benefits

Short term employee benefits

All employee benefits payable wholly within twelve months of rendering services are classified as short term employee benefits. Benefits such as salaries, wages, expected cost of bonus, ex-gratia, leave travel allowance, medical reimbursement, etc. are recognised in the period in which the employee renders the related services.

Compensated absences : As per the Company's leave policy, employees have to utilise their leave entitlement during the financial year and cannot carry forward their outstanding leave balance. Consequently, the Company does not make any provision for leave encashment/compensated absences as at the year end

Post employment benefit plans

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

Defined Contribution Plan - Contributions towards Employees' PF Linked Pension Scheme is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Defined Benefit Plan

Provident Fund: Contribution towards provident fund are made to Employees’ Provident Fund Organisation, India.

Gratuity : The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering employees on actual duty. The Company's liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses/gains are recognised in the Other Comprehensive Income in the year in which they arise.

k) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent assets, where an inflow of economic benefits is probable, an entity shall disclose a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect, measured using the principles set out for provisions in Ind AS 37. Contingent assets are not recognised in the financial statements.

l) Cash flow statement

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

m) Financial instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the instruments.

Initial recognition

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

a) Non-derivative financial instruments

i) Cash and Cash equivalents

The company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consists of balances with banks which are unrestricted for withdrawal and usage.

ii) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii) Equity investments at fair value through other comprehensive income (FVTOCI)

These include financial assets that are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

Dividends from these equity investments are recognized in the Statement of Profit and Loss when the right to receive payment has been established. When the equity investment is derecognized, the cumulative gain or loss in equity is transferred to retained earnings.

iv) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

v) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

b) Share Capital

Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are recognized as a deduction from equity.

Modi Rubber Limited

Notes to the standalone financial statements for the year ended March 31, 2023

c) Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

n) Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include available quoted market prices. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. The fair values of investments in mutual fund units is based on the net asset value (“NAV”) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

The fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability

o) Impairment of Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12–month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

3. Property, plant & equipment

As	at March 31, 2023				(A	(A	(A	mount in Rs. lacs)
Part	iculars	Gross Block			Depreciation/Amortisation and Impairment			Net Block
		As at Revalution Deductions/ As at April01, 2022 Adjustments Mar31, 2023 Additions			As at For Deductions/ Upto April01, 2022 theyear Adjustments Mar31, 2023			As at Mar31, 2023
Ow F B P F As Lea Bui O V Tot C	(A) (B) ned assets reehold land uildings lant & machinery urniture and fixtures sets taken on lease sehold land ldings ffice equipment ehicles al (A) + (B)* omputers	127.53 - - - 127.53 1,698.82 - - - 1,698.82			- - - - 373.68 65.01 - 438.69			127.53 1,260.13
		1,826.35 - - - 1,826.35			373.68 65.01 - 438.69			1,387.66
		19,121.01 - - - 19,121.01 379.51 - - - 379.51 177.92 - - - 177.92 526.72 4.54 - - 531.25 34.49 3.79 - 0.45 37.83 487.47 23.18 - 2.97 507.68 383.58 - - - 383.58			- - - - 89.52 18.09 - 107.61 - - - - 384.28 37.12 - 421.40 22.71 7.26 - 29.97 371.99 35.58 1.96 405.61 252.79 40.09 - 292.88			19,121.01 271.90 177.92 109.85 7.86 102.07 90.70
		21,110.69 31.50 - 3.42 21,138.78			1,121.28 138.15 1.96 1,257.47			19,881.31
		22,937.04 31.50 - 3.42 22,965.13			1,494.96 203.15 1.96 1,696.15			21,268.97

	Relevant line item in the Balance sheet	Description of item of property	Gross carrying value (Amount in lacs)	Title deeds held in the name of p o e	Whether title deed holder is a romoter, director or relative *f promoter/director or mployee of promoter/director**	Property held since which date	Reason for not bei name of the comp	ng held in the any
	Buildings on leasehold land	Patel House, Mumbai	27.49	Parmanand Tulsidas Patel	No	May 06, 1982	Pending for registra of specific performa	tion due to outcome nce suit.
	Freeehold land	15, Friends Colony West, New Delhi	2.07	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registra of specific performa	tion due to outcome nce suit.
	Buildings	15, Friends Colony West, New Delhi	18.96	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registra of specific performa	tion due to outcome nce suit.

During the year ending on March 31, 2022, the Company has changed its accounting policy with respect to measurement of freehold land. According to the revised policy, freehold land (other than land under dispute) will be required to be revalued and measured at fair value, based on periodic valuation done by external valuers using market approach. Any revaluation surplus will be recorded in Other Comprehensive Income and credited to Land revaluation reserve in other equity. This revaluation surplus is not available for distribution to shareholders. As on March 31, 2023 the carrying amount of freehold land does not differ materially from that which would be determined using fair value.

** No depreciation has been considered by the Company, as the plant & machinery has been carried at residual value.

As at March 31, 2022			(A	mount in Rs. lacs)
Particulars		Gross Block	Depreciation/Amortisation and Impairment	Net Block
	As at April 1, 2021	Revalution Deductions/ As at Adjustments March31, 2022 Additions	As at For Deductions/ Upto April 1, 2021 theyear Adjustments March31, 2022	As at March31, 2022
(A) (B) As at March 31, 2023 Buildings Assets taken on lease Leasehold land Data Processing Equipment Vehicles Office equipments & electrical installation Total (A) + (B) Right-of-use assets Furniture and fixtures Own assets Freehold land Buildings Plant & machinery	127.53 1,698.82	- - - 127.53 - - 1,698.82	- - - - 305.29 68.39 - 373.68	127.53 1,325.14
	1,826.35	- - - 1,826.35	305.29 68.39 - 373.68	1,452.67
	183.90 351.41 177.92 506.34 23.15 480.20 273.65	- 18,938.52 1.41 19,121.01 28.10 - - 379.51 - - - 177.92 20.37 - - 526.72 11.85 - 0.51 34.49 7.27 - - 487.47 109.93 - - 383.58	- - - - 70.92 18.60 - 89.52 - - - - 335.74 48.53 - 384.28 16.41 6.38 0.08 22.71 327.43 44.56 - 371.99 194.49 58.30 - 252.79	19,121.01 289.99 177.92 142.44 11.78 115.48 130.79
	1,996.58	177.52 18,938.52 1.92 21,110.69	944.98 176.37 0.08 1,121.28	19,989.41
	3,822.93	177.52 18,938.52 1.92 22,937.04	1,250.28 244.76 0.08 1,494.96	21,442.07
			(A	mount in Rs. lacs)
Particulars		Gross Block	Amortisation	Net Block
		As at Deductions/ As at April 01, 2022 Additions Adjustments Mar 31, 2023	As at For Deductions/ Upto April 01, 2022 theyear Adjustments Mar 31, 2023	As at Mar 31, 2023
As at March 31, 2022 Right-of-use assets Total		171.07 - - 171.07	58.54 8.68 - 67.22	103.85
		171.07 - - 171.07	58.54 8.68 - 67.22	103.85
			(A	mount in Rs. lacs)
Particulars		Gross Block	Amortisation	Net Block
		As at Deductions/ As at April 1, 2021 Additions Adjustments March 31, 2022	As at For Deductions/ Upto April 1, 2021 theyear Adjustments March 31, 2022	As at March 31, 2022
Right-of-use assets Total		171.07 - - 171.07	44.18 14.36 - 58.54	112.53
		171.07 - - 171.07	44.18 14.36 - 58.54	112.53

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

As at March 31, 2023 Other intangible assets	(A	mount in Rs. lacs)
Particulars	Amortisation	Net Block
	As at For Deductions/ Upto April 01, 2022 theyear Adjustments Mar 31, 2023	As at Mar 31, 2023
22,945.09 Softwares As at March31, 2022 Total	7.32 0.41 - 7.73	1.09
	7.32 0.41 - 7.73	1.09
	1,502.28 203.56 1.96 1,703.88 (A	1.09 mount in Rs. lacs)
Particulars	Amortisation	Net Block
	As at For Deductions/ Upto April 1, 2021 theyear Adjustments March31, 2022	As at March31, 2022
Softwares Total	6.63 0.69 - 7.32	0.73
	6.63 0.69 - 7.32	0.73

3. Capital Work in Progress As at March 31, 2023 Particulars

3. Capital Work in Progress
As at March 31, 2023	As at Deductions/ As at April 01, 2022 Additions Adjustments Mar31, 2023 167.09 858.50 - 1,025.59 167.09 858.50 - 1,025.59 As at Deductions/ As at April 1, 2021 Additions Adjustments Mar31, 2022 25.10 167.09 25.10 167.09 25.10 167.09 25.10 167.09 Gross Block Gross Block	(A	mount in Rs. lacs)
Particulars		Amortisation	Net Block
		As at For Deductions/ Upto April 01, 2022 theyear Adjustments Mar31, 2023	As at Mar31, 2023
Buildings Total As at March31, 2022		- - - -	1,025.59
		- - - -	1,025.59
		(A	mount in Rs. lacs)
Particulars		Amortisation	Net Block
		As at For Deductions/ Upto April 1, 2021 theyear Adjustments Mar 31, 2022	As at Mar 31, 2022
Buildings Total		- - - -	167.09
		- - - -	167.09

Capital work-in-progress ageing schedule: As at March 31, 2023	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)
Capital Work In Progress (CWIP)	Amount in CWIP for aperiod of				Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
Projects in progress	1,025.59	-	-	-	1,025.59
Projects temporarily suspended	-	-	-	-	-
As at March31, 2022	(Amount in Rs. Lacs)
Capital Work In Progress (CWIP)	Amount in CWIP for aperiod of				Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
Projects in progress	167.09	-	-	-	167.09
Projects temporarily suspended	-	-	-	-	-

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

4. Non-current Investments

4. Non-current Investments
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
(a) Investment In Equity Instruments- Fully paid up Quoted (carried at fair value through Other comprehensive income) no.of Shares/Units (refer footnote i) Unquoted (at cost) No.of Shares/Units Subsidiaries Less : Provision for diminution in value of shares Joint Ventures Associates Other Investments (carried at fair value through Other comprehensive income) No.of Shares/Units Less : Provision for diminution in value of shares (b) Others Joint Venture 14,700,000 (March 31, 2022: 14,700,000) Asahi Modi Materials Pvt. Ltd. of Rs. 10 each Less : Provision for diminution in value of shares (refer note 45) '860,000 (March 31,2022 : 860,000) - 0.1% Non Cumulative Optionally Convertible Preference Shares of Modi Marco Aldany Pvt Ltd. of Rs.10 each (refer footnote (iv)) 9,977,187 (March 31, 2022: 9,977,187) Modi Marco Aldany Pvt Ltd. of Rs. 10 each (3,327,187 shares Fully Paid up & 6,650,000 Partly Paid upto Rs 9.934 each) 1,250,000 (March 31, 2022: 1,250,000) Spark Plug Ltd. of Rs. 10 each Less : Provision for diminution in value of shares (refer note 45) Total 5,000 (March 31, 2022: Nil) IQ Modi Power Pvt Ltd. of Rs. 10 each 197,999 (March 31, 2022: 197,999) Lords Chloro Alkali Ltd. of Rs. 10 each 680,001 (March 31, 2022: 680,001) Bihar Sponge Iron Ltd. of Rs. 10 each 166,490 (March 31, 2022: 166,490) Infosys Limited of Rs. 5 each 29,915 (March 31, 2022: 29,915) Superior Investment (India) Limited of Rs. 100 each 33,350,000 (March 31, 2022: 33,350,000) Gujarat Guardian Ltd. of Rs. 10 each 11,475,000 (March 31, 2022: 11,475,000) Modistone Ltd. of Rs. 10 each 29,915 (March 31, 2022: 29,915) Spin Investment India Limited of Rs. 100 each 16,000 (March 31, 2022: Nil) NSE of India Ltd of Rs. 1 each	289.38 57.73 2,376.98 2,724.09 2,137.50 (2,137.50) 29.92 29.92 3,335.00 1,470.00 993.35 (993.35) 0.50 4,865.33 125.00 (125.00) 520.00 520.00 86.00 (86.00) 8,109.42	188.10 74.12 3,175.30
		3,437.52
		2,137.50 (2,137.50) 29.92 29.92 3,335.00 1,470.00 993.35 (993.35) -
		4,864.84
		125.00 (125.00) -
		-
		86.00 (86.00)
		8,302.36

Footnote:

(i) Market Rate - March 31, 2023: 2,724.09 lacs (March 31, 2022: 3,437.52 lacs)

(ii) For Fair value hierarchy refer note 33.

(iii) For explanation on the Company credit risk management process refer note 34.1

(iv) Terms of Preference Shares

The Company had invested in 860,000 Non Cumulative Optionally Convertible Preference Shares (OCPS) of Modi Marco Aldany Private Limited at face value of Rs.10 each. The total OCPS shall carry a coupon rate of 0.01% for Preference Dividend (Non Cumulative) from the date of allotment upto the date of redemption / conversion on the face value. The term of OCPs is maximum 20 years. The issuer shall only have an option to convert such no. of OCPS into Equity Shares of Rs. 10/- each at the option of the company at any time during the tenure of the OCPS i.e. 20 years from the date of issuance. The redemption would be done in accordance with the mutual agreement between issuer and the investor on a later date.

5. Other non-current financial assets

5. Other non-current financial assets
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Security deposits Deposits with banks (Refer footnote (a) and (b)) Deposits with banks for more than one year (refer footnote Interest accrued on deposits with banks for more than one year Others Total	16.23 4,417.64 146.26 3.87 4,584.00	16.23 4,389.93 121.18 3.87
		4,531.21

Footnote

(a) Deposits with banks includes margin money of Rs. 1,300 lacs (March 31, 2022: Rs. 1300 lacs) deposited with banks and interest of Rs. 21.24 lacs accrued thereon upto March

31, 2022 Rs. 19.12 lacs (upto March 31, 2022: Rs 13.89 lacs) respectively towards issuance of Bank Guarantee in favour of the Registrar of Hon’ble Supreme Court in the matter of intercorporate deposits (Refer Note 18(a)).

(b) Deposits with banks which represents two escrow accounts of Rs. 3,117.64 lacs (March 31, 2022: Rs. 2,964.93 lacs) and accrued interest thereon of Rs.127.14 lacs (March 31, 2022: Rs. 101.42 lacs) respectively which were initially created for a period of eight years due to Share Purchase Agreement dated July 12, 2011, between the Company & Continental India Limited ("buyer"), in order to cover unascertained future liabilities prior to July 12, 2011. Pending to the settlement of claims, the parties have mutually agreed to extend the FDRs period in the escrow account till August 01, 2023.

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

6. Deferred tax assets (net)

6. Deferred tax assets (net)
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Deferred tax liabilities Measurement of investment at fair value through other comprehensive income Remeasurement of post employment benefit obligations Rent equalisation reserve Taxes and Duties u/s 43B Measurement of assets at amortised cost Measurement of investment at fair value through profit or loss Total Total Deferred tax assets On account of property, plant & equipment MAT credit entitlement Measurement of liabilities at amortised cost Deferred tax liabilities Net Deferred tax liabilities Revaluation surplus on Free Hold Land	292.51 181.62 35.97 51.71 (293.37) (44.60) (2.75) (21.30) (6.27) 193.53 (4,214.96) (4,214.96) 4,021.43	295.95 175.19 36.73 51.71 (372.76) (30.00) (0.28) (25.50) (6.67)
		124.37
		(4,214.96)
		(4,214.96)
		4,090.59

Movement in deferred tax

March 31, 2023	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	Balance as on March 31, 2022	Recognised in profit or loss	Recognised in OCI	Balance as on March 31, 2023
MAT credit entitlement Measurement of assets at amortised cost Rent equalisation reserve/ lease liability Expenditures allowed under income tax on payment basis Measurement of investment at fair value through profit or loss Measurement of investment at fair value through other comprehensive Remeasurement of post employment benefit obligations Measurement of liabilities at amortised cost Revaluation surplus on Free Hold Land Difference in book depreciation and tax depreciation Net tax assets/ (liabilities)	(25.50) 295.95 (30.00) (372.76) (4,214.96) (6.67) 51.71 (0.28) 175.19 36.73	4.20 (3.43) (14.60) - - 0.31 - (2.47) 6.43 (0.76)	- - - 79.39 - 0.09 - - - -	(21.30) 292.51 (44.60) (293.37) (4,214.96) (6.27) 51.71 (2.75) 181.62 35.97
	(4,090.59)	(10.33)	79.48	(4,021.43)
March 31, 2022	(Amount in Rs. lacs)
Particulars	Balance as on March 31, 2021	Recognised in profit or loss	Recognised in OCI	Balance as on March 31, 2022
MAT credit entitlement Measurement of assets at amortised cost Rent equalisation reserve/ lease liability Remeasurement of post employment benefit obligations Measurement of liabilities at amortised cost Net tax assets/ (liabilities) Expenditures allowed under income tax on payment basis Difference in book depreciation and tax depreciation Measurement of investment at fair value through other comprehensive Measurement of investment at fair value through profit or loss Revaluation surplus on Free Hold Land	(95.21) 303.91 (33.59) (235.18) - (12.55) 154.77 (0.24) 121.71 36.94	69.71 (7.96) 3.59 - - 7.82 (103.06) (0.04) 53.48 (0.21)	- - - (137.58) (4,214.96) (1.94) - - - -	(25.50) 295.95 (30.00) (372.76) (4,214.96) (6.67) 51.71 (0.28) 175.19 36.73
	240.56	23.33	(4,354.48)	(4,090.59)

7. Other non-current assets

7. Other non-current assets
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Deposits with Government Authorities Income tax Customs Capital advances Excess of fund value over gratuity liability Others Total	87.83 21.30 167.89 26.64 22.54 238.37 326.20	92.69 21.30 167.89 26.64 23.99
		239.82
		332.52

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

8. Inventories

8. Inventories
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Stores, spare parts and loose tools (scrap) (refer note 44) Less: Provision for obsolescence Total*	75.42 (75.42) -	75.42 (75.42)
		-

*The inventory referred above is lying in the Modi Tyre Factory (MTF) at Modinagar which is under possession of Official Liquidator of the Lessor Company. Due to unacessability & uncertainty of its existence, the Company has provided provision for the same.

9. Current Investments

9. Current Investments
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Quoted (at fair value through Profit & Loss) 21927.101 units (March 31, 2022: 6102.09) Axis Money Market Fund Direct Growth (MM-DG) Nil (March 31, 2022: 21,833,922.79) Axis Arbitrage Fund Direct Growth (EA-DG) 423,384.707 units (March 31, 2022: 423,384.71) Mirae Asset NYSE Fang +ETF Fund of Fund-DPGG 222,755.63 Units (March 31, 2022: 222,755.63) Canara Robeco Blue Chip Equity Fund -DG(LCDG) 212,451.56 units (March 31, 2022: 212451.56) Kotak Debt Hybrid-Direct Growth 11,743,045.242 units (March 31, 2022: 5,003,338.96) ICICI Prudential Equity Arbitrage Fund -Direct Plan -Growth 192,335.065 units (March 31, 2022: 192,335.01) Axis Bluechip Fund-Direct Growth (EF-DG) 92,522.17 units (March 31, 2022: 92,522.17) Parag Parikh Flexi Cap Fund- Direct Plan 199,990 units (March 31, 2022) ICICI Prud. Long Short Fund - Series - II Investment in ASK Mutual Fund 701721.214 units (March 31, 2022: Nil) SBI Arbitrage Opportunities Fund 3,007.26 units (March 31, 2022: Nil) Investment Baroda BNP Paribas Liquid Fund - DG Investment in White Oak Capital Total Investments in Mutual Funds - Fully Paid up	266.99 - 43.63 101.71 106.51 3,634.74 89.82 49.08 207.79 183.03 201.83 101.36 296.20 5,282.68	70.28 3,534.13 46.41 100.46 101.09 1,465.50 96.03 48.59 - - - - -
		5,462.49

There is no significant restrictions on the right of ownership, realisability of investments or the remittance of income or proceeds of disposal.

10. Trade receivables *

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Less: Allowance for expected credit loss Total Trade Receivables considered good - Secured Trade Receivables considered good - Unsecured Trade Receivables - credit impaired Trade Receivables which have significant increase in Credit Risk	- 50.38 357.31 195.14 (497.62) 105.21	- 15.42 287.24 198.94 (471.75)
		29.85

*Includes amount due from related parties (Refer note 38)

(i) For explanations and long outstanding trade receivables refer company credit risk management process refer note 34.1

Trade Receivables ageging schedule as on March 31, 2023	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)
Particulars	Outstanding for following periods from due date of payment						Total
	Not due	Less than 6 months	6 months - 1year	1-2years	2-3 years	More than 3 years
(i)Undisputed Trade Receivables - consideredgood	-	49.30	0.81	0.27	-	-	50.38
(ii) Undisputed Trade Receivables - which have significant increase in credit risk	-	64.13	5.94	11.88	45.68	229.68	357.31
(iii)Undisputed Trade Receivables - Credit Impaired	-	-			-	195.14	195.14
(iv)Disputed Trade Receivables - consideredgood	-	-	-	-	-	-	-
(v) Disputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-	-
(vi)Disputed Trade Receivables - Credit Impaired	-	-	-	-	-	-	-
Less: Allowance for credit loss	-	-	-	-	-	-	(497.62)
Total Trade Receivables	-	113.43	6.75	12.15	45.68	424.82	105.21
Trade Receivables agegingschedule as on March 31,2022 :-	(Amount in Rs. lacs)
Particulars	Outstandingfor following periods from due date ofpayment						Total
	Not due	Less than 6 months	6 months - 1year	1-2years	2-3years	More than 3years
(i)Undisputed Trade Receivables - consideredgood	-	14.97	0.20	0.26	-	-	15.42
(ii) Undisputed Trade Receivables - which have significant increase in credit risk	-	5.93	5.94	45.69	19.58	210.10	287.24
(iii)Undisputed Trade Receivables - Credit Impaired	-	3.80			11.99	183.15	198.94
(iv)Disputed Trade Receivables - consideredgood	-	-	-	-	-	-	-
(v) Disputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-	-
(vi)Disputed Trade Receivables - Credit Impaired	-	-	-	-	-	-	-
Less: Allowance for credit loss	-	-	-	-	-	-	(471.75)
Total Trade Receivables	-	24.70	6.14	45.94	31.57	393.25	29.85

11. Cash and cash equivalents

11. Cash and cash equivalents
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Cash on hand Total Balances with banks: Current accounts	3.36 286.94 290.30	3.56 211.33
		214.89

F l i h di i k

34 1

Notes to financial statements for the year ended March 31, 2023

Modi Rubber Limited

12. Current loans

12. Current loans
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Loans (i) Unsecured Considered good (ii) Unsecured Considered doubtful (Refer note 45) Less : Provision for doubtful loans and advances (i) Unsecured Considered good (ii) Unsecured Considered doubtful Less : Provision for doubtful advances Unsecured Loans and advances to Related Party Staff Advances Total	- 147.75 (147.75) - 49.73 7.46 (7.46) 49.73 49.73	- 160.25 (160.25)
		- 39.17 7.46 (7.46)
		39.16
		39.16

Includes amount due from Associate: Vinura Beverages Pvt Ltd. (Refer note 38)

Includes amount due from Associate: Vinura Beverages Pvt Ltd. (Refer note 38)
	(Amount in Rs. lacs)
	As at March 31, 2023		As at March 31,2022
Type of Borrower	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans
KMPs	5.50	11.06%	8.50	21.70%
Related Parties	147.75	297.11%	160.25	409.19%

(i) For explanation credit risk management process and long outstanding receivables refer credit risk management process note 34.1

13. Other current financial assets

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
Other Asset (Refer note (ii) below) Total Interest accrued on fixed deposits & loan Unsecured, considered good Advances & other recoverable Deposits with banks	22.20 0.01 0.01 0.74 22.96	2.10 - 0.71 0.67
		3.47

(i) For explanation on the company credit risk management process refer note 34.1

(ii) Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs (i.e. other than quoted prices for identical instruments in an active market).

14. Current tax assets (net)

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
15. Other current assets Current tax (net of provision for tax amounting to Rs. 252.52 lacs (March 31, 2022: Rs 220.69) Total	363.60 373.88 363.60 373.88 (Amount in Rs. lacs)	373.88
		373.88
Particulars	As at March 31, 2023	As at March 31, 2022
(i) Unsecured Considered good (ii) Unsecured Considered doubtful Less : Provision for doubtful Advance Advances recoverable in cash/ kind or value to be received Advance for purchase of shares Total Prepaid expenses Related party (refer note 38) Others Balances with Statutory/ Government authorities-GST Other claims recoverable	91.47 - - 91.47 87.29 61.35 148.64 - 36.24 10.77 287.12	69.27 31.98 (31.98)
		69.27 167.40 49.66
		217.06 520.52 25.40 -
		832.24

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

16. Share capital

16. Share capital
		(Amount in Rs. lacs)
Particulars	As at		As at
	March 31,	2023	March 31, 2022
Equity share capital
The Company has two class of shares i.e. Equity Shares having a par value of Rs.10 per share and
Preference shares having a par value of Rs.100 per share.

Authorised shares Issued, subscribed and fully paid up shares 50,000,000 Equity shares of par value Rs.10 each (50,000,000 Equity shares as at March 31, 2022) 200,000 11% Redeemable Cumulative Preference shares of par value Rs. 100 each (200,000 Preference shares as at March 31, 2022) 25,040,532 Equity shares of par value Rs.10 each (25,040,532 shares as at March 31, 2022)	5,000.00 5,000.00 200.00 200.00
	5,200.00 5,200.00
	2,504.05 2,504.05
	2,504.05 2,504.05

a) Movements in equity share capital:

During the year, the Company has neither issued nor bought back any shares.

b) Terms and rights attached to equity shares:

Voting

Each holder of equity share is entitled to one vote per share held.

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed.

Liquidation

In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts, if any. Such distribution amounts will be in proportion to the number of equity shares held by the shareholders.

c) During the last five financial years, no class of shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back.
d) Shares held by the shareholders holding more than 5% shares in the Company.

Name of the share holders	As at March 31, 2023	As at March 31, 2023	As at March 31, 2022	As at March 31, 2022
	No. of shares	%age holding	No. of shares	%age holding
Equity share of Rs. 10 each, fully paid
ModFashions and SecuritiesPrivateLimited	12,010,267	47.96%	12,010,267	47.96%
Kinborough Limited	5,739,451	22.92%	5,739,451	22.92%
WittaInternational Inc	2,554,078	10.20%	2,554,078	10.20%

e) The details of Shareholding of Promoters are as under :-

Shares held by promoters at the end of theyear	Shares held by promoters at the end of theyear	Shares held by promoters at the end of theyear	Shares held by promoters at the end of theyear	% Change during the year
S.No.	Promoter Name	No. of Shares	% of total Shares
1	Mod Fashions and Securities Private Limited	12,010,267	47.96%	-
2	WittaInternational Inc	2,554,078	10.20%	-
3	M/S Modi Industries Ltd.	800,000	3.19%	-
4	Indofil Organic Industries Ltd	214,211	0.86%	-
5	Leaf Investment Private Limited	50,272	0.20%	-
6	Uniglobe Mod Travels Private Limited	44,584	0.18%	-
7	A LA Mode Garments Private Limited	25,540	0.10%	-

	Total	15,698,952	62.69%

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

17. Other equity

17. Other equity
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Capital reserve Security premium Retained earnings Total Opening balance Add: Profit after tax for the year as per Statement of Profit and Loss Items of other comprehensive income recognised directly in retained earnings: - Fair valuation impact on quoted equity investment, net of tax - Remeasurements of post-employment benefit obligation, net of tax - Revaluation surplus, net of tax Closing balance Retained earnings	19.26 19.26 5,782.32 5,782.32 26,761.97 26,624.28
	32,563.55 32,425.86
	(Amount in Rs. lacs)
	March 31, 2023 March 31, 2022
	26,624.28 10,421.83 796.64 523.10
	27,420.93 10,944.93 (658.72) 950.77 (0.23) 5.02 - 14,723.56
	26,761.97 26,624.28

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

18 (a). Non-current borrowings

18 (a). Non-current borrowings
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Term loans from others- secured (refer footnote (a)) Inter corporate deposits- unsecured (refer footnote (b)) Non-current borrowing net of current portion Borrowings Total non-current borrowings Less: Current portion of non-current borrowings	-11.51 250.00250.00
	250.00261.51 -(11.51)
	250.00 250.00

Includes:

(a) Secured by hypothecation of vehicles:

i) Term Loan of Rs. 11.51 lacs is paid during the year (March 31, 2022: Rs 11.51 lacs) repayable in equated monthly instalment of Rs 1.71 lacs each (including interest). Final instalment due in October 2022.

(b) Rs. 250 lacs (March 31, 2022: Rs. 250 lacs) payable @ 50% of Rs.500 lacs to M/s Morgan Securities & Credit Pvt. Ltd. as per BIFR SS-08

18 (b). Lease liabilities	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Non-current Lease liability (Refer note 37) Current Lease liability (Refer note 37) 19. Other non-current financial liabilities	112.14114.85
	112.14 114.85
	17.1617.16
	17.16 17.16
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Security deposits Total Deposits received are payable on successful completion of terms and conditions attached to deposits. 20. Other non-current liabilities	12.9417.49
	12.94 17.49
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Deferred rent Total 21. Current maturities of long term borrowings Other payables:	-3.33
	- 3.33
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Total Current maturities of long-term borrowings	- 11.51
	- 11.51

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

22. Trade payables

22. Trade payables
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
For goods and services Dues to micro, small and medium enterprises (refer footnote ii) Dues to others (i) The Company’s exposure to liquidity risk related to trade payables is disclosed in note 34.1	17.2216.73 749.72755.14
	766.94 771.87

(ii) Trade payables are non interest bearing and are normally settled in normal trade cycle.

(iii) "Due to others" include Rs. 136.62 lacs (March 31, 2022: Rs. 136.62 lacs) i.e. 20% of Rs. 683.10 lacs as per settlement terms defined in BIFR SS08 towards lease rent payable to M/s Modi Exports Processors Ltd.(MEPL) for the period January, 2002 to September, 2007. Further no liability towards lease rent has been provided after September, 2007 since the premises are sealed by the Official Liquidator of MEPL.

Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)	Trade Payables ageging schedule as on March 31, 2023 :- (Amount in Rs. lacs)
Particulars		Outstanding for following periods from due date of payment				Total
	Not Due	Less than 1 year	1-2 years	2-3 years	More than 3 years
(i)MSME	-	17.20	0.02	-	-	17.22
(ii)Others	-	121.95	13.06	2.27	117.72	255.00
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	-	-	-	-	136.62	136.62
(v)Unbilled creditors						358.10
Trade Payables agegingschedule as on March 31,	2022 :- (Amount in Rs. lacs)
Particulars		Outstanding for following periods from due date of payment				Total
	NotDue	Less than 1 year	1-2 years	2-3 years	More than 3 years
(i)MSME	-	16.29	-	-	0.44	16.73
(ii)Others	-	86.32	3.41	6.67	101.32	197.72
(iii)Disputed dues - MSME	-			-	-	-
(iv)Disputed dues - Others	-			-	136.62	136.62
(v)Unbilled creditors						420.80

Details of dues to Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October 2006, certain disclosure are required to be made relating to Micro, Small and Medium Enterprises. On the basis of the information and records available with the management, the disclosure under the Micro, Small and Medium Enterprises development Act, 2006 is as follows:

Particulars	As at	As at
	March 31, 2023	March 31, 2022
a. The principal amount and the interest thereon remaining unpaid to any supplier as at the	17.22	16.73
end of the year
b. The amount of interest paid by the Company along with the amounts of the payment made	-	-
to the supplier beyond the appointed date during the period / year;
c. The amount of interest due and payable for the period of delay in making payment (which	-	-
have been paid but beyond the appointed day during the year) but without adding the interest
specified under this Act;
d. The amount of interest accrued and remaining unpaid at the end of the year	-	-
e. The amount of further interest remaining due and payable even in the succeeding years,	-	-
until such date when the interest dues as above are actually paid to the small enterprise.

23. Other current financial liabilities	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Other payables: Employee related payables Total* Bank overdraft	-66.15 252.65247.80
	252.65 313.95

Include Rs. 247.80 lacs (March 31, 2022: 247.80 lacs) representing unclaimed liability of some workers towards full and final settlement for all their past dues as per BIFR order.

The Company’s exposure to liquidity risk related to payables is disclosed in note 34.1

24. Other current liabilities

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Statutory dues Deferred rent Total*	1,319.86 1,322.86 - 0.97
	1,319.86 1,323.83

*Footnote:

(a) includes Rs. 1,298.29 lacs (March 31, 2022: Rs 1,313.32 lacs) which represents the sales tax liability of various State Authorities. The Company had made representations to the States Authorities for giving various relief and concessions in line with BIFR sanctioned scheme. In the opinion of the management, sales tax liability would be reduced as soon as representation of the Company will be heard by various States Authorities. Honourable Allahabad high court vide its order dated 31.07.2017 w.t no 914 of 2015 directed state authorities to provide relief to the company in accordance with the Rehabilitation scheme.

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

25. Revenue from operations

25. Revenue from operations
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Total 26. Other income Other operating revenues Rental income Other income	195.11 122.65 76.46 92.92
	271.58 215.57
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Total 27. Employee benefits expense Interest income on financial assets carried at amortised cost: Miscellaneous income Others Interest income on income tax refund Security deposit at amortised cost Fair value gain financial assets measured at fair value through profit or loss (net) Gain / (loss) on sale of property, plant and equipment (net) Management service charges (refer note 38) Deposits with bank and others* Dividend income Gain / (loss) on sale of mutual funds Amounts written back	283.36 268.88 2.15 14.99 - 0.00 - 0.97 2,497.64 2551.20
	2,783.15 2,836.04 267.17 179.74 91.51 74.16 27.87 16.60 0.41 18.59 13.95 0.47 81.15 10.23
	482.05 299.79
	3,265.20 3,135.83
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Salaries including bonus Contributions to provident and other funds Staff welfare Total 28. Finance costs	275.03 255.10 31.85 32.13 47.69 69.98
	354.56 357.21
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Lease liabilities (refer note 37) Others Unwinding of discount on financial liabilities Total Interest on: Bank guarantee charges Bank overdraft	1.20 7.11 14.44 13.75 0.57 6.62 30.68 30.68 - 0.88
	46.89 59.03

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

29. Depreciation and amortisation

29. Depreciation and amortisation
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Amortisation on: Total 30. Other expenses Depreciation on: Intangible assets Property, plant and equipment Right-of-use assets	203.15 244.76 8.68 14.36 0.41 0.69
	212.24 259.81
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Payment to statutory auditors (excluding Goods and Service tax) : Liability paid on settlement Provision for diminution in the value of investment (Refer note 45) Total Legal and professional fees Travelling expenses Other services Allowance for doubtful advances Loans & advances written off Miscellaneous expenses Reimbursement of expenses Allowance for bad and doubtful debts Business promotion expenses Membership and subscription Electricity & water Tax audit fee Office maintenance Security service charges Guest house expenses Insurance Rent expenses (Refer note 38) Rates and taxes Repairs & maintenance - Others Audit fee - Buildings Power & fuel Communication expenses	22.75 14.27 228.85 236.07 466.73 365.66 148.76 91.53 13.32 11.73 20.30 21.52 31.73 24.86 10.00 30.01 107.90 109.86 40.07 21.92 28.34 30.68 380.70 283.29 124.55 82.68 8.00 8.50 - 0.60 - 4.36 - 0.62 19.11 7.78 23.20 17.76 25.86 3.65 1.00 157.99 10.93 9.94 - 330.81 2.43 51.40 82.18 37.40
	1,796.71 1,954.88

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

31. Disclosure as per Ind AS 33 on 'Earnings per Share'

Basic and diluted earnings per share Basic and diluted earnings per share (refer footnote a & b) Nominal value per share (a) Profit attributable to equity shareholders Profit/ (Loss) for the year (in lacs) Profit/ (Loss) attributable to equity shareholders (b) Weighted average number of equity shares Opening balance of issued equity shares Effect of shares issued during the year, if any Weighted average number of equity shares for Basic and Diluted EPS
	March 31, 2023 March 31, 2022
	3.18 2.09 10 10
	March 31, 2023 March 31, 2022
	796.64 523.10
	796.64 523.10

	March 31, 2023 March 31, 2022
	25,040,532 25,040,532 -
	25,040,532 25,040,532

At present, the Company does not have any dilutive potential equity shares

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

32. Disclosure as per Indian Accounting Standard - 12 on 'Income taxes'

(a) Income Tax Expense

i) Income tax recognised in profit or loss

Current tax expense Current year Earlier year tax adjustment Deferred tax expense Total income tax expense ii) Income tax recognised in other comprehensive income Particulars Particulars - Investment in equity instruments measured at fair value Origination and reversal of temporary differences - Remeasurement of post employment benefit obligations - Remeasurement of post employment benefit obligations - Investment in equity instruments measured at fair value -Revaluation surplus on freehold land -Revaluation surplus on freehold land		(Amount in Rs. lacs) March 31, 2023 March 31, 2022
		252.52 220.70 66.89 -
		319.41 220.70 10.33 (23.33)
		10.33 (23.33)
		329.74 197.37
		(Amount in Rs. lacs) March 31, 2023
	Before tax Tax expense/ (benefit) Net of tax
	(0.32) (0.09) (0.23) (738.11) (79.39) (658.72) - - -
	(738.43) (79.48) (658.95)
	March 31, 2022
	Before tax Tax expense/ (benefit) Net of tax
	6.96 1.94 5.02 1,088.35 137.58 950.77 18,938.52 4,214.96 14,723.56
	20,033.83 4,354.48 15,679.35

iii) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate

Profit before tax Tax effect of: Expenses not deductible for income tax purpose Effect of tax on Ind-As adjustments Others At the effective income tax rate of 22.42% (31st March 2022: 30.63%) Tax rate difference Tax using the Company’s domestic tax rate of 27.82% (March 31, 2022 - 26%)	(Amount in Rs. lacs) March 31, 2023 March 31, 2022
	1,126.38 720.47 313.36 187.33 17.27 - - 21.33 (70.31) - (7.80) 12.04
	252.52 220.70

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

33. Fair Value Measurements

(a) Financial instruments by category

All the financial assets and liabilities viz. deposits for utilities, trade receivables, cash and cash equivalents, other bank balances, interest receivable, recoverable from employees, trade payables, employee related liabilities and payable for expenses, are measured at amortised cost.

(b) Fair value hierarchy

The Company determines the fair value of its financial instruments on the basis of the following hierarchy:

Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of quoted price for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques based on observable market data.

Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs). Fair value of investment in unquoted equity shares is determined using discounted cash flow technique.

There are no transfers between different fair value hierarchy levels in 2021-22, 2022-23.

There are no transfers between different fair value hierarchy levels in 2021-22, 2022-23.	There are no transfers between different fair value hierarchy levels in 2021-22, 2022-23.	There are no transfers between different fair value hierarchy levels in 2021-22, 2022-23.	There are no transfers between different fair value hierarchy levels in 2021-22, 2022-23.
(Amount in Rs. lacs)
Liabilities which are measured at amortised cost for which fair values are disclosed	Particulars	March 31, 2023	March 31, 2022
Financial liabilities:
Securitydeposits received	Carrying value	22.81	22.81
Securitydeposits received *	Fair value	12.94	17.49

*The fair values for security deposits received from employees and security deposit for utilities were calculated based on cash flows discounted using a current fixed deposit rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Financial Assets at fair value through profit or loss	Input Used	Particulars	March 31, 2023	March 31, 2022
Financial assets:
Investment in mutual funds (Includes PMS)		Carrying value	5,119.57	5,425.53
Investment in mutual funds (Includes PMS)	Level 1	Fair value	5,282.68	5,462.49
(Amount in Rs. lacs)
Financial Assets at fair value through other comprehensive	Input Used	Particulars	March 31, 2023	March 31, 2022
Financial assets:
Investment in equity instruments		Carrying value	87.80	87.80
Investment in equity instruments	Level 1	Fair value	2,724.09	3,437.52

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

34.1 Financial Risk Management

In the course of its business, the Company is exposed to a number of financial risks: liquidity risk, credit risk, market risk. This note presents the Company’s objectives, policies and processes for managing its financial risk and capital.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Investments

The Company has made investments in tax free long term bonds, deposit with banks, mutual funds etc. Funds are invested in accordance with the Company’s established investment policy that includes parameters of safety, liquidity and post tax returns.

Trade receivables

The activities of the company primarily include rental income. The invoices raised to customers immediately falls due for payment after the credit period allowed to customers . Refer Note 38 on disclosure on related party transactions with respect to amount outstanding as at reporting date. Credit risk arising from trade receivables is managed in accordance with the Management control and approval procedure. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for future uncertainties etc.

Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default. The Company’s maximum exposure to credit risk for each of the above categories of financial assets is their carrying values as at the reporting dates.

(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	March 31, 2023	March 31, 2022
Financial assets for which loss allowance is measured using 12 months Expected Credit Losses(ECL)
Long term security deposits	16.23	16.23
Other long term financial assets	4,567.77	4,514.98
Cash and cash equivalents	290.30	214.89
Short term loans	49.73	39.16
Other short term financial assets	22.96	3.47
	4,946.98	4,788.73

Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL)
Trade receivables	105.21	29.85
	105.21	29.85

Based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of any asset as the amount are insignificant.

Ageing analysis of trade receivables

The ageing analysis of the trade receivables is as below:

The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:	The ageing analysis of the trade receivables is as below:
(Amount in Rs. lacs)
Ageing as at March 31, 2023	Not due	0-90 days past due	91-180 days past due	181-270 days past due	271-360 days past due	360-720 days past due	More than 720 days past due	Total
Gross carrying amount	-	109.28	4.15	3.68	3.07	12.15	470.50	602.83

Ageing as at March 31, 2022	Not due	0-90 days past due	91-180 days past due	181-270 days past due	271-360 days past due	360-720 days past due	More than 720 days past due	Total
Gross carrying amount	-	16.81	7.90	5.98	0.15	44.97	425.79	501.60

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

34.1 Financial Risk Management (contd…)

Liquidity risk

Liquidity risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors the rolling forecasts to ensure that sufficient liquidity is maintained on an ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the investments in a manner such that the desired quantum of funds could be made available to meet any of the business requirements within a reasonable period of time. In addition, the Company also maintains flexibility in arranging the funds by maintaining committed credit lines with various banks to meet the obligations.

The following are the contractual maturities of non-derivative financial liabilities, based on contractual cash flows:

March 31, 2023	March 31, 2023	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Contractual maturities of financial liabilities	Fair value	Contractual cash flows
		Less than one year	Beyond one year	Total
Non-derivative financial liabilities
Borrowings	250.00	-	250.00	250.00
Security depositsreceived	12.94	-	12.94	12.94
Leaseliability	129.30	17.16	112.14	129.30
Employeerelatedliabilities	252.65	4.85	247.80	252.65
Trade payables	766.94	766.94	-	766.94
	1,411.83	788.95	622.88	1,411.83

March 31, 2022	March 31, 2022	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Contractual maturities of financial liabilities	Fair value	Contractual cash flows
		Less than one year	Beyond one year	Total
Non-derivative financial liabilities
Borrowings	261.51	11.51	250.00	261.51
Securitydeposits received	17.49	-	17.49	17.49
Leaseliability	132.01	17.16	114.85	132.01
Bankoverdraft	66.15	-	66.15	66.15
Employeerelatedliabilities	247.80	247.80	-	247.80
Trade payables	771.87	136.62	-	136.62
	1,496.84	413.09	448.49	861.58

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

34.1 Financial Risk Management (contd…)

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Interest Rate Risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates. The Company is not exposed to any significant interest rate risk as its investments are primarily in fixed rate instruments. Also, there are no significant borrowings as at the balance sheet date.

Price Risk

Price risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is exposed to the price risk mainly from investment in mutual funds and investment in equity instruments. Investment in mutual funds are made primarily in units of liquid funds and are not exposed to significant price risk.

Foreign Currency Risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in the foreign exchange rates. The Company is not exposed to foreign currency risk as it is not having any transactions in foreign currency.

35. Capital Management

The Company manages its capital to ensure that it will be able to continue as a Going Concern while maximising the return to stakeholders. The Company has minimum dependence on external debts and operates mainly through internal accruals. Capital includes equity share capital and other it The Company determines the amount of capital required on the basis of annual operating plans and other strategic investment plans.

36. Corporate Social Responsibility ('CSR')

(i) Gross amount required to be spent by the company during the year Rs. Nil (March 31, 2022: Rs. Nil)

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

37 Leases

The percentages in the table below reflect the current proportions of lease payments that are either fixed or variable. The sensitivity reflects the impact on the carrying amount of lease liabilities and right-of-use assets if there was an uplift of 5% on the balance sheet date to lease payments that are variable.

Particulars Property Leases with Fixed Payments Right of Use Assets Opening balance Additions during the year Amortization during the year Closing balance Lease Obligation Opening balance Additions during the year Interest accured during the year Payment of lease liabilities Closing balance Current Non-Current	Lease Variable 2 -	Fixed Payments % Sensitivity 100% -
	2 -	100% -
		(Amount in Rs. lacs) Leasehold Buildings
		March 31, 2023 March 31, 2022
		112.52 126.88 - - (8.68) (14.36)
		103.84 112.52
		(Amount in Rs. lacs) Leasehold Buildings
		March 31, 2023 March 31, 2022
		132.01 142.08 - - 14.44 16.20 (17.16) (26.26)
		129.30 132.01
		17.16 17.16 112.14 114.85

The table below analyses lease liabilities of the Company into maturity grouping based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the undiscounted contractual cash flows.

Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)
Pariculars	Upto 1 Year	1-5 years	Above 5 Years	Total	Carrying Vaue
As at March 31, 2023	17.16	80.14	144.60	241.90	129.30
As at March 31,2022	17.16	77.14	164.76	259.06	132.01

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

38 Related Parties Disclosures in accordance with Indian Accounting Standard (Ind AS) 24 of The Institute of Chartered Accountants of India. A) Subsidiary Companies % Holdings i) Modistone Ltd. (in liquidation) 55.32 Official Liquidator has taken possession of the Company w.e.f. 25.07.2002- the date of appointment of Official Liquidator by Bombay High Court
ii) Superior Investment (India) Limited 100 iii) Spin Investment India Limited 100

B) Step-Down Subsidiary Companies Uniglobe Mod Travels Pvt. Ltd

C) Joint Venture Gujarat Guardian Ltd. 21.24 Asahi Modi Materials Pvt. Ltd. 49.00 Modi Marco Aldany Pvt Ltd 50.00

D) Associate Vinura Beverages Pvt. Ltd. (An Associate of a wholly owned subsidiary)

E) Key Management Personnel: Mr. Alok Kumar Modi-Managing Director Miss Piya Modi-Whole Time Director
Mr. Sanjeev Kumar Bajpai-Company Secretary Mr. Kamal Gupta-Chief Financial Officer (CFO) Vinay Kumar Modi-Non Executive Chairman Kanwaljit Singh Bains-Non Executive Independent Director Amrit Kapur-Non Executive Independent Director Umesh Khaitan-Non Executive Independent Director
F) Relatives of Key Management Personnel Mrs. Chander Bala Modi (Mother of Mr. Alok Kumar Modi) Mrs. Archana Singhania (Sister of Mr. Alok Kumar Modi) Mrs. Ritika Modi (Wife of Mr. Alok Kumar Modi)
G) Enterprises in which Key Management Personnel and relatives of Key Management Personnel has significant influence Leaf Investment Pvt. Ltd. Mod Fashions and Securities Pvt. Ltd Uniglobe Travel (South Asia) Pvt. Ltd Maple Bear Education Pvt. Ltd. M/s Khaitan & Khaitan

H) Transaction with Related Parties The following transactions was carried out with related parties in the ordinary course of business:

		(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
S.No.	Particulars	Subsidiaries & Step down Subsidiaries		Joint Controlled Entities		Associates		Enterprise under significant influence of Key Management Personnel or their relatives		Key Management Personnel		Relatives of Key Management Personnel		Total
		31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22

A)	Expenses recovered
	Asahi Modi Materials Pvt. Ltd.	-	-	-	11.66	-	-	-	-	-	-	-	-	-	11.66
	Sub-Total	-	-	-	11.66	-	-	-	-	-	-	-	-	-	11.66

Modi Rubber Limited

Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited	Modi Rubber Limited
Notes to financial statements for the year ended March 31, 2023
B)	Expenses incurred
	Asahi Modi Materials Pvt. Ltd.	-	-	14.76	-	-	-	-	-	-	-	-	-	14.76	-
	Mod Fashions and Securities Pvt. Ltd.	-	-	-	-	-	-	15.96	15.96	-	-	-	-	15.96	15.96
	Uniglobe Mod Travels Pvt. Ltd.	144.55	36.85	-	-	-	-	-	-	-	-	-	-	144.55	36.85
	M/s Khaitan & Khaitan	-	-	-	-	-	-	52.48	19.75	-	-	-	-	52.48	19.75
	Mr. Vinay Kumar Modi	-	-	-	-	-	-	-	1.37	-	-	-	1.07	-	2.44
	Sub-Total	144.55	36.85	14.76	-	-	-	68.44	37.08	-	-	-	1.07	227.75	75.00

C)	Rent Income
	Spin Investment India Limited	12.00	12.00	-	-	-	-	-	-	-	-	-	-	12.00	12.00
	Superior Investment(India)Limited	12.00	12.00	-	-	-	-	-	-	-	-	-	-	12.00	12.00
	Maple Bear Education Pvt. Ltd.	-	-	-	-	-	-	55.68	-	-	-	-	-	55.68	-
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	-	-	9.00	10.80	-	-	-	-	9.00	10.80
	Uniglobe Mod Travels Pvt. Ltd.	16.00	15.00	-	-	-	-	-	-	-	-	-	-	16.00	15.00
	Sub-Total	40.00	39.00	-	-	-	-	64.68	10.80	-	-	-	-	104.68	49.80

D)	Management Service Charges Income
	Spin Investment India Limited	12.00	12.00	-	-	-	-	-	-	-	-	-	-	12.00	12.00
	Superior Investment(India)Limited	12.00	12.00	-	-	-	-	-	-	-	-	-	-	12.00	12.00
	Asahi Modi Materials Pvt. Ltd.	-	-	67.51	50.16	-	-	-	-	-	-	-	-	67.51	50.16
	Sub-Total	24.00	24.00	67.51	50.16	-	-	-	-	-	-	-	-	91.51	74.16

E)	Dividend received
	Gujarat Guardian Ltd	-	-	2,434.55	2,501.25	-	-	-	-	-	-	-	-	2,434.55	2,501.25

F)	Loan and advancesgiven
	Modi Marco AldanyPvt Ltd	-	-	1.00	19.90	-	-	-	-	-	-	-	-	1.00	19.90

G)	Loan and advances received back
	Modi Marco AldanyPvt Ltd	-	-	-	-	-	-	-	-	-	-	-	-	-	-

H)	Interest income
	Modi Marco AldanyPvt Ltd	-	-	-	14.99	-	-	-	-	-	-	-	-	-	14.99

H)	Remunerationpaid	-	-	-	-	-	-	-	-	153.17	143.14	-	-	153.17	143.14

I)	Sitting fee-Directors	-	-	-	-	-	-	-	-	1.80	2.25	-	-	1.80	2.25

J)	Receivable at theyear end
	Asahi Modi Materials Pvt. Ltd.	-	-	28.91	25.99	-	-	-	-	-	-	-	-	28.91	25.99
	Modi Marco AldanyPvt Ltd	-	-	11.99	11.99	-	-	-	-	-	-	-	-	11.99	11.99
	Vinura Beverages Pvt. Ltd.	-	-	-	-	2.26	2.26	-	-	-	-	-	-	2.26	2.26
	Uniglobe Mod Travels Pvt. Ltd.	68.23	141.62	-	-	-	-	-	-	-	-	-	-	68.23	141.62
	Maple Bear Education Pvt. Ltd.	-	-	-	-	-	-	93.78	33.65	-	-	-	-	93.78	33.65
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	-	-	262.65	252.93	-	-	-	-	262.65	252.93
	Mr. Alok Kumar Modi	-	-	-	-	-	-	-	-	-	0.06	-	-	-	0.06
	M/s Khaitan & Khaitan	-	-	-	-	-	-	-	1.75	-	0.00	-	-	-	1.75
	Sub-Total	68.23	141.62	40.90	37.98	2.26	2.26	356.43	286.57	-	0.06	-	-	467.82	470.24

J)	Payable at theyear end
	Mod Fashions and Securities Pvt. Ltd.	-	-	-	-	-	-	4.31	4.31	-	-	-	-	4.31	4.31
	Mr. Alok Kumar Modi	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	M/s Khaitan & Khaitan	-	-	-	-	-	-	1.73	-	-	-	-	-	1.73	-
	Miss Piya Modi	-	-	-	-	-	-	-	-	0.12	0.26	-	-	0.12	0.26
	Sub-Total	-	-	-	-	-	-	6.04	4.31	0.12	0.26	-	-	6.16	4.57

Only material transactions are covered

Notes to financial statements for the year ended March 31, 2023

Modi Rubber Limited

39 Gratuity and other post-employment benefit plans

Contribution for Employees Benefit: Defined Contribution Plans Provident Fund State Defined Contribution Plans - Employees Pension Scheme 1995

i Provident Fund

The Employees of the company receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly contributions at specified percentage of the employee’s salary to the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

The Company has recognized the following amounts in the Statement of Profit and Loss for the year ended March 31, 2023

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Contribution to employee pension Contribution to provident fund	17.59 1.96	16.94 2.33

ii Defined benefit plan( Gratuity)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme of Gratuity Fund Trust, administered and managed by the Independent Board of Trustees. The sections of the Company first makes the payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employee’s salary and the tenure of employment and then gets the reimbursement from it. Vesting occurs upon completion of five years of service. The present value of Defined Benefit Obligation is calculated annually by an independent actuary using the projected unit credit method.

	(Amount in Rs. lacs) (Amount in Rs. lacs) (Amount in Rs. lacs) 3.29 - - - 4.87 5.72 (2.57) - 3.93 3.93 0.32 (6.96) - 180.22 - (1.48) 180.22 For the year ended March 31, 2022 212.57 (211.66) For the year ended March 31, 2023 204.21 (22.54) (23.99) For the year ended March 31, 2022 (2.79) - (5.33) 4.87 6.63 5.72 7.20 - (5.33) - (1.75) - 6.63 9.92 - (45.60) - (9.01) (2.57) For the year ended March 31, 2023 (1.04) 1.16 189.12 For the year ended March 31, 2023 For the year ended March 31, 2022 - - 189.12 180.22 7.20 10.88 (2.79)	(Amount in Rs. lacs) (Amount in Rs. lacs) (Amount in Rs. lacs) 3.29 - - - 4.87 5.72 (2.57) - 3.93 3.93 0.32 (6.96) - 180.22 - (1.48) 180.22 For the year ended March 31, 2022 212.57 (211.66) For the year ended March 31, 2023 204.21 (22.54) (23.99) For the year ended March 31, 2022 (2.79) - (5.33) 4.87 6.63 5.72 7.20 - (5.33) - (1.75) - 6.63 9.92 - (45.60) - (9.01) (2.57) For the year ended March 31, 2023 (1.04) 1.16 189.12 For the year ended March 31, 2023 For the year ended March 31, 2022 - - 189.12 180.22 7.20 10.88 (2.79)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Funded Status of the Plan Present value of unfunded obligations Present value of funded obligations Fair value of plan assets Net Liability (Asset)	(211.66) - 189.12	204.21 - 180.22
	(22.54)	(23.99)

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Statement of Profit and Loss Current service cost Past service cost and loss/(gain) on curtailments and settlement Net interest cost Total included in'Employee Benefit Expense'	6.63 - (1.75)	(1.48) 7.20 -
	4.87	5.72
Expenses deducted from the fund	-	-
Total Charge to P&L	4.87	5.72

Other Comprehensive Income Due to Change in financial assumptions Due to Change in demographic assumption Due to experience adjustments Return on plan assets excluding amounts included in interest income	(2.57) - 3.93 (1.04)	(2.79) - (5.33) 1.16
Amounts recognized in Other Comprehensive Income	0.32	(6.96)

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Reconciliation of Defined Benefit Obligation Opening Defined Benefit Obligation Transfer in/(out) obligation Current service cost Interest cost Actuarial loss / (gain) due to change in financial assumptions Actuarial loss / (gain) due to change in demographic assumptions Actuarial loss / (gain) due to experience assumptions Past Service Cost Benefits Paid Benefits Payable	- 3.93 - 180.22 6.63 9.92 - (9.01) (2.57)	3.29 - - 212.57 (5.33) - (45.60) 7.20 10.88 (2.79)
Closing Defined Benefit Obligation	189.12	180.22

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

C
D
E
F
40
41

(Amount in Rs. lacs)
Reconciliation of Plan Assets
Opening Value of Plan Assets
Transfer in/(out) plan assets
Interest Income
Return on plan assets excluding amounts included in interest income
Contributions by employer
Benefits paid
Closing Value of Plan Assets
(Amount in Rs. lacs)
Principle Actuarial Assumptions
Discount Rate
Salary Growth Rate
Withdrawal Rates
Rate of return on Plan Assets
(Amount in Rs. lacs)
Expected cash flows based on past service liability
The following payments are maturity profile of Defined Benefit Obligation:
2023
2024
2025
2026
2027
23.90
2028-2032
(Amount in Rs. lacs)
Sensitivity to key assumptions
Discount rate varied by 0.5%
0.50%
-0.50%
Salary growth rate varied by 0.5%
0.50%
-0.50%
Withdrawal rate varied by 0.5%
W.R * 110%
W.R90%
A description of methods used for sensitivity analysis and Limitations:
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
(Amount in Rs. lacs)
Expenditure in foreign currency:-
Travelling expenses
(Amount in Rs. lacs)
Contingent Liabilities
Capital Commitments
Guarantees/ Bonds (unconfirmed)
Excise /Customs /DGFT matters
Unsecured creditors
Workers and employees
Income tax act
Others
TOTAL
10,115.54
13,881.27
March 31, 2022
1,300.00
269.11
536.27
3,385.40
198.74
261.03
Particulars
Amount of DBO
Change in DBO(%)
187.83
190.51
Particulars
907.82
531.87
6,454.53
1,290.00
3,136.02
1,290.00
3,136.02
1,300.00
March 31, 2023
189.67
189.55
188.79
-0.69%
0.73%
0.29%
1.60
1.43
1.23
4.09
1.20%
-0.25%
0.22%
-0.18%
1.10%
0.90%
17.60%
3.00%
Particulars
For the year ended
March 31, 2023
For the year ended
March 31, 2022
67.94
For the year ended
March 31, 2022
204.21
235.32
6.40% p.a.
3.29
5% p.a. at younger ages
reducing to 1% p.a. at
older ages
5% p.a. at younger ages
reducing to 1% p.a. at
older ages
For the year ended
March 31, 2023
For the year ended
March 31, 2022
7.30%
188.66
7.00%
6.40%
7.00%
12.36
(1.16)
-
(45.60)
204.21
11.67
1.04
3.74
(9.01)
211.66
Particulars
For the year ended
March 31, 2023
-
Particulars
50.10%
7.30% p.a.
Particulars
Cashflows
Distribution(%)
163.20
202.15*

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

Note 1 - In view of large number of cases, it is not practicable to disclose individual details. Above amounts are affected by numerous uncertainties and timing of economic benefit outflow will depend upon timing of decision of these cases.

Note 2 - On the basis of current status of individual case and as per legal advise obtained by the Company, wherever applicable. The Company is confident of winning the above cases and is of the view that no further provision required in respect of these cases.

42 Post sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008, the Company had given full effect of the scheme from cut off date in the books of accounts assuming that the relief and concessions as given to the company in the scheme would be accepted by all the concerned parties/creditors.
43 BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning net worth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/parties have not accepted terms of settlement and relief & concessions as provided in SS08. The Company has filed a status report on the unimplemented portion of the Rehabilitation Scheme as at September 30th, 2016 with BIFR on 20/10/2016. Further Government of India (GOI) vide its Gazette notification dated 25/11/2016 repealed SICA w.e.f 01/12/2016 by passing the Sick Industrial Companies (Special provisions) Repeal Act, 2003. All proceedings pending in BIFR/ AAIFR would now stand abated and a time period of 180 days have been given to all applicants to approach National Company Law Tribunal (NCLT) and to get appropriate relief under Insolvency and Bankruptcy Code, 2016. Further all schemes sanctioned by BIFR are saved and would continue to be enforceable by NCLT.
44 Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon’ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, Company shall take necessary steps as required.
45 The company has made investments of Rs.1,079.35 lacs and has given loans and advances of Rs.145.49 lacs (inclusive of interest) (March 31, 2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:

2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:	2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:	2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:
(Amount in Rs. lacs)
Particulars	March 31, 2023	March 31, 2022
Loans and advances(includinginterest) Invesments in 9,977,187 (March 31, 2021: 9,977,187) equity shares of Rs. 10 each (3,327,187 shares Fully Paid up & 6,650,000 Partly Paid upto Rs 9.934 each) Invesments in 860,000 (March 31,2021 : 860,000) - 0.1% Non Cumulative Optionally Convertible Preference Shares of Modi Marco Aldany Pvt Ltd. of Rs.10 each	86.00 145.49 993.35	86.00 157.99 993.35
TOTAL 1,224.84 1,237.34

46 In accordance with IND AS 108 - Operating Segment used to present the segment information are identified on the basis of informal report used by the Company to allocate resource to the segment and assess their performance. The Board of Directors of the Company is collectively Chief Operating Decision Maker (CODM).The Company is engaged in Renting of immovable property which in the context of Ind AS 108 “Operating Segment" is considered as the only segment. The Company’s activities are restricted within India and hence no separate geographical segment disclosure is considered necessary.

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

47. Financial Ratios

S.No	Particulars	Numerator	Denominator	Mar-23	Mar-22	Variance	Reason for variance
a)	CurrentRatio	Current assets	Currentlaibilities	2.72	2.85	-4.78%	-
b)	Debt-Equity Ratio	Borrowings+Interest Accrued	Total Equiity	0.01	0.01	-44.91%	Due Increase in Total Equity.
c)	Debt Service Coverage Ratio	Earning for Debt Service = Net Profit after taxes + Non-cash operating expenses like depreciation and other amortizations + Interest + other adjustments like loss on sale of Fixed assets etc.	Debt service = Interest & Lease Payments + Principal Repayments	25.49	17.27	47.58%	Due to increase in Earnings for Debt service and decrease in Debt service.
(d)	Return on Equity Ratio	Net Profits after taxes	Average Shareholder’s Equity	0.03	0.03	7.27%	-
e)	Trade Receivables turnover ratio	Net Credit Sales	Avg. Accounts Receivable	4.02	3.96	1.57%	-
f)	Net capital turnover ratio	Net Sales	Working Capital	0.07	0.05	40.70%	Increases due to increase in the net sales.
g)	Net profit ratio	Net profit	Net Sales	2.93	2.43	20.88%	-
h)	Return on Capital employed	Earning before interest and taxes	Capital Employed	0.03	0.02	50.30%	Due to increase in Earning before interest and taxes.

48 Balances of certain payables for expenses, employees related payables and loans & advance are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

49 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with struck off companies.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v)

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries), or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

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

As per our report of even date

For P N A M & Co. LLP

Chartered Accountants LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

For and on behalf of the Board of Directors of Modi Rubber Limited

Abhishek Nahta

Partner Membership No.: 513559

Alok Kumar Modi Managing Director DIN: 00174374

Piya Modi Director DIN: 03623417

S.K. Bajpai Head- Legal & Company Secretary ACS: 10110

Kamal Gupta Chief Financial Officer

Place : New Delhi Date : 26/05/2023

Amrit Kapur Director DIN:- 00508710

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INDEPENDENT AUDITORS’ REPORT

To THE MEMBERS OF MODI RUBBER LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Modi Rubber Limited (“the Company”) and its subsidiaries (the Company and its subsidiaries together referred to as the “Group”), its associate and joint ventures which comprise the Consolidated Balance Sheet as at March 31, 2023, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as the “consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate financials statements of associate and joint ventures, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“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 consolidated state of affairs of the Group, its associate and joint ventures as at March 31, 2023, and their consolidated profit (including other comprehensive income), consolidated cash flows and the consolidated changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (“SA”s) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We

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have determined the matters described below to be the key audit matters to be communicated in our report.

Description of Key Audit Matters

Sr. No.	The key audit matter	Auditor’s Response
1	Evaluation of contingencies & uncertain tax positions Prior to closure of operations by illegal strikes of the workers in August 2001, and thereafter sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008 (refer note 49 & 50 of financial statements), the Company operated in multiple jurisdictions and subjected to periodic challenges by local tax authorities, income tax authorities, labour law authorities & other statutory authorities on a range of various tax & other matters during the normal course of business. These involve significant management judgment to determine the possible outcome of the uncertain tax positions & other contingencies consequently having an impact on related accounting and disclosures in the consolidated financial statements. Refer Note 2(k), Note 28 & Note 48 to the consolidated financial statements.	Principal Audit Procedures Performed Our audit procedures include the following substantive procedures: • Obtained understanding of key contingencies & uncertain tax positions and; • We along with our internal legal experts: ➢ Read and analysed select key correspondences, external legal opinions / consultations by management for key contingencies & uncertain tax positions; ➢ Discussed with appropriate senior management and evaluated management’s underlying key assumptions in estimating the tax provisions; and ➢ Assessed managements estimate of the possible outcome of the disputed cases.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report and Corporate Governance, but does not include the consolidated financial statements, standalone financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

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If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Other Matter

1. The Consolidated Financial Statements of the Company for the year ended 31st March 2022 were audited by the predecessor auditor, who had expressed an unmodified opinion on those Financial Statements vide their audit report dated 28th May 2022.

2. The consolidated financial statements also include the Group’s share of net profit (including other comprehensive income) of Rs. 4,191.21 lacs for the year ended March 31, 2023, as considered in the consolidated financial statements, in respect of one joint venture company, whose financial statements are not audited by us and has been furnished to us by the Management which is reviewed by other auditor and our opinion on the Consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the joint venture company, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid joint venture company, is based solely on such reviewed financial information.

We did not audit the financial statements of two joint venture company and two associate company which include Group’s share of net profit of Rs. 141.77 lacs for the year ended March 31, 2023, as considered in the consolidated financial statements. These financial statements are unaudited has been furnished to us by the Management and our opinion on the Consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the joint venture company, is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management of the Company, the unaudited financial statements is immaterial to the Group.

Subsidiaries and Joint Venture Companies included in consolidated financial statements are not audited by us or other auditors are as below:

A: Financial information audited by other auditors
Joint Venture Company
(i) Gujarat Guardian Limited
B: Unaudited financial statements as certified shared by the Management
Joint Venture Company
(i) Asahi Modi Materials Private Limited
(ii) Modi Marco Aldany Private Limited

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Associate Company
(i) Vinura Beverages Private Limited
(ii) IQ Modi Power Private Limited

Our opinion on the consolidated financial statements above, and our report on other legal and regulatory requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements and other financial information as provided and certified by the Management.

Management’s Responsibilities for the Consolidated Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated changes in equity and consolidated cash flows of the Group including its associate and joint ventures in accordance with the Ind AS and other accounting principles generally accepted in India. The respective Board of Directors of the companies included in the Group and of its associate and joint ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and of its associate and joint ventures 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 Consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated financial statements by the directors of the holding company, as aforesaid.

In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associate and joint ventures are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intend to liquidate their respective entities or to cease operations, or have no realistic alternative but to do so.

The respective Board of Directors of the entities included in the Group, its associate and joint ventures are responsible for overseeing the financial reporting process of each entity.

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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated 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 consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated 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.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Group has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 ability of the Group 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 Consolidated 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 Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Consolidated financial statements, including the disclosures, and whether the Consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associate and joint ventures of P N A M & CO. LLP 902 & 906, New Delhi House, t: +91 11 4150 4766 LLPIN: ABA-8514 27, Barakhamba Road, e: [email protected] ICAI FRN: 001092N/N500395/N500395 New Delhi 110 001 w: www.pnam.co

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which we are the independent auditors, to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors.

We communicate with those charged with governance of the Company and such other entities included in the Consolidated financial statements of which we are the independent auditors 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.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit and the other financial information of subsidiaries, associate and joint ventures, as noted in the ‘other matter’ paragraph we report, to the extent applicable, 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 of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity dealt with by this report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2023 taken on record by the Board of Directors of the Company and the reports of the statutory auditors of its subsidiary companies, associate and joint ventures none of the directors of the Group companies, its associate and joint ventures incorporated in India is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;

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f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate Report in “Annexure A” which is based on the auditors’ reports of the Company and its subsidiary companies incorporated in India. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting of those companies.
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 Group 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Consolidated financial statements disclose the impact of pending litigations on Consolidated financial position of the Group and its associate and joint ventures. (Refer Note No. 48 and 60 of the consolidated financial Statements)
ii. The Group, its associate and joint ventures did not have any material foreseeable losses on long-term contracts including derivative contracts during the year ended March 31, 2023.
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The respective Managements of the Company and its subsidiaries which are companies incorporated in India, whose financial statements have been audited under the Act, have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) 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 or any of such subsidiaries to or in any other person or entity, including foreign entity (“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 or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
- (b)The respective Managements of the Company and its subsidiaries which are companies incorporated in India, whose financial statements have been audited

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under the Act, have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company or any of such subsidiaries from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company or any of such subsidiaries 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.

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us on the Company and its subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

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With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/ “CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s report, according to the information and explanations given to us, and based on the CARO reports issued by us for the Company; and by other auditor in respect of its subsidiary included in the consolidated financial statements of the Company to which reporting under CARO is applicable, the qualifications or adverse remarks in these CARO reports are as below:

Sr. No.	Name	CIN	Holding Company/ subsidiary/ Associate/ Joint Venture	Clause number of the CARO report which is qualified or adverse
1	Modi Rubber Limited	L25199UP1971PLC003392	HoldingCompany	3(i)(c)
2	Spin Investment India Limited	U74899DL1982PLC013733	Subsidiary	3(iii)(c)
3	Spin Investment India Limited	U74899DL1982PLC013733	Subsidiary	3(iii)(d)

For P N A M & Co. LLP

Chartered Accountants ICAI Firm Reg. No.: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

UDIN : Date : 26[th] May 2023 Place : New Delhi

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ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(g) under the heading ‘Report on Other Legal and Regulatory Requirements’ of our report of even date on the Consolidated Financial Statements of Modi Rubber Limited)

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

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2023, we have audited the internal financial controls over financial reporting of Modi Rubber Limited (“the Company”) and its subsidiaries (the Company and its subsidiaries together referred to as the “Group”), its associate and joint ventures, which are the companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding Company, its subsidiary companies, its associate and joint ventures which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on, the internal control over financial reporting criteria established by the Holding 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 Act.

Auditors’ Responsibility

902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

t: +91 11 4150 4766 e: [email protected]

P N A M & CO. LLP LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

w: www.pnam.co

P N A M & CO. LLP

Chartered Accountants

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 consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditors in terms of their reports referred to in the other matter paragraph below, 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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 further 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 Holding Company and its subsidiary companies, which are companies incorporated in India have, 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 March 31, 2023, based on the internal financial 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 Control Over Financial Reporting issued by the Institute of Chartered Accountants of India.

902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

t: +91 11 4150 4766 e: [email protected]

P N A M & CO. LLP LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

w: www.pnam.co

P N A M & CO. LLP

Chartered Accountants

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting do not include our opinion in respect of 2 joint ventures and 2 associate, which are companies incorporated in India and are unaudited.

Our opinion is not modified in respect of the above matter with respect to our reliance on representations provided by the management.

For P N A M & Co. LLP

Chartered Accountants ICAI Firm Reg. No.: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

UDIN : Date : 26[th] May 2023 Place : New Delhi

902 & 906, New Delhi House, 27, Barakhamba Road, New Delhi 110 001

t: +91 11 4150 4766 e: [email protected]

P N A M & CO. LLP LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

w: www.pnam.co

Modi Rubber Limited

Consolidated Balance Sheet as at March 31, 2023

Modi Rubber Limited Consolidated Balance Sheet as at March 31, 2023	Modi Rubber Limited Consolidated Balance Sheet as at March 31, 2023
		(Amount in Rs. lacs
Particulars	Note No.	As at March 31, 2023	As at March 31, 2022
ASSETS Non-current assets Property, plant and equipmen Right-of-use assets Investment Properties Capital work-in-progress Other intangible assets Investment in joint ventures and associate Financial assets Investments Other financial assets Other non-current assets Goodwill Total non-current assets Current assets Inventories Financial assets Investments Trade receivables Cash and cash equivalents Bank balances other than (iii) above Loans Other financial assets Current tax (net) Other current assets Total current assets	3 3 4 5 3 59 5 6 8 9 10 11 12 13 14 15 16 17	21,301.14 123.32 13.71 1,025.59 1.09 22,638.22 8,433.52 4,625.74 341.71 3,404.83	21,442.08 112.53 - 167.09 0.73 20,739.28 11,539.67 4,531.21 333.72 -
		61,908.87 - 6,610.43 1,807.84 797.36 68.12 97.77 49.29 419.34 795.53	58,866.30 - 7,972.60 29.85 230.67 - 273.20 18.99 388.50 832.29
		10,645.68	9,746.10
Total Assets		72,554.55	68,612.41
EQUITY AND LIABILITIES Equity Equity share capita 18 Other equity 19 Total Equity attributeable to equity holders of the Company Non-controlling interests Total equity LIABILITIES Non-current liabilities Financial liabilities Borrowings 20 Lease liability 21 Other financial liabilities 22 Deferred tax liabilities 7 Other non-current liabilities 23 Long-term provisions 24 Total non-current liabilities Current liabilities Financial liabilities Borrowings 25 Lease liability 21 Trade payables:- 26 Total outstanding dues of micro enterprises and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprise Other financial liabilities 27 Other current liabilities 28 Short-term provisions 29 Total current liabilities		2,499.59 61,331.42	2,504.05 59,399.71
		63,831.01 14.45	61,903.76 -
		63,845.46 747.02 128.01 12.94 3,823.50 0.28 48.48	61,903.76 250.00 114.85 17.49 3,877.45 3.33 -
		4,760.23 1,219.99 21.58 26.94 860.47 306.44 1,502.77 10.67	4,263.12 77.65 17.16 16.73 761.67 247.80 1,324.52 -
		3,948.86	2,445.53
Total Equity and Liabilities		72,554.55	68,612.41

Significant accounting policies

The accompanying notes 1 to 59 form an integral part of these financial statements

As per our report of even date

For P N A M & Co. LLP Chartered Accountants ICAI FRN: 001092N/N500395

For and on behalf of the Board of Directors of Modi Rubber Limited

Abhishek Nahta Partner Membership No.: 513559

Alok Kumar Modi S.K. Bajpai Managing Director Head- Legal & DIN: 00174374 Company Secretary ACS: 10110 Piya Modi Director DIN: 03623417 Kamal Gupta Chief Financial Officer

Amrit Kapur

Place : New Delhi Date : 26/05/2023

Director

DIN: 00508710

Modi Rubber Limited

Consolidated Statement of Profit and Loss for the year ended March 31, 2023

Modi Rubber Limited Consolidated Statement of Profit and Loss for the year ended March 31, 2023	Modi Rubber Limited Consolidated Statement of Profit and Loss for the year ended March 31, 2023
		(Amount in Rs. lacs)
Particulars	Note No.	For the year ended March 31, 2023	For the year ended March 31, 2022
Revenue Revenue from operations Other income Total revenue Expenses Purchases of stock-in-trade Employee benefits expense Finance costs Depreciation and amortization expense Other expenses Total expenses Profit/ (loss) before exceptional items and share of profit/ (loss) of joint ventures and associates and tax Exceptional Items Provision for doubtful advances Profit/ (loss) after exceptional items and before share of profit/ (loss) of joint ventures and associates and tax Share of profit/ (loss) of joint ventures and associate Profit/ (loss) before tax Tax expense Current tax Current year Earlier years Deferred tax Income tax of earlier year written back Total tax expense Profit/ (loss) for the year Other comprehensive income Items that will not be reclassified to profit or loss - Remeasurement of post employment benefit obligations - Investment in equity instruments measured at fair value -Revaluation surplus on freehold land Income tax relating to items that will not be reclassified subsequently to profit or loss - Remeasurement of post employment benefit obligations - Investment in equity instruments measured at fair value -Revaluation surplus on freehold land - Share of other comprehensive income of joint ventures and associate Other comprehensive income for the year (net of income tax) Total comprehensive income for the year	30 31 32 33 34 35 36 51 & 53 59 38 38 38	532.36 1,010.20	512.69 810.80
		1,542.56 285.71 356.38 47.79 212.31 1,838.43	1,323.49 332.55 357.21 59.30 259.81 2,001.62
		2,740.62 (1,198.06) -	3,010.49 (1,687.00) 0.33
		(1,198.06) 4,339.02	(1,687.33) 4,441.36
		3,140.96 269.32 66.89 39.24 -	2,754.03 235.85 - (44.82) (0.12)
		375.45	190.91
		2,765.51	2,563.12
		(0.32) (799.87) - 0.09 (27.70) - (6.00)	6.96 1,255.83 18,938.52 (1.94) (41.47) (4,214.96) 13.33
		(833.80)	15,956.26

		1,931.71	18,519.38
Earnings per equity share 37		11.04 10.24

Earnings per equity share (nominal value of Rs 10 per share) Basic & Diluted (Rs)

The accompanying notes 1 to 59 form an integral part of these financial statements.

As per our report of even date

For P N A M & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants Modi Rubber Limited ICAI FRN: 001092N/N500395

Abhishek Nahta Partner Membership No.: 513559

Place : New Delhi Date : 26/05/2023

Alok Kumar Modi S.K. Bajpai Managing Head- Legal & Director Company Secretary DIN: 00174374 ACS: 10110 Piya Modi Director DIN: 03623417 Kamal Gupta Chief Financial Officer

Amrit Kapur Director DIN:- 00508710

Modi Rubber Limited Consolidated Statement of changes in equity for the year ended March 31, 2023

A. Equity Share Capital

For the year ended March 31, 2023

For the year ended March 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2023
(Amount in Rs. lacs)
Balance as at March 31, 2022	Changes in equity share capital during the year	Consolidation adjustment	Balance as at March 31, 2023
2,504.05	-	(4.46)	2,499.59
For the year ended March 31, 2022 (Amount in Rs. lacs)
Balance as at March 31, 2021	Changes in equity share capital during the year	Consolidation adjustment	Balance as at March 31, 2022
2,504.05	-	-	2,504.05

B. Other Equity

For theyear ended March 31, 2023	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	Reserves & Surplus				Items of Other Comprehensive income				Total
	Capital reserve	Security Premium Reserve	General reserve	Retained Earnings	Actuarial gain/ (loss)	Share of other comprehensive income of joint ventures and associate	Equity instruments measured at fair value	Revaluation Surplus

Balance as at March 31, 2022	13,782.22	5,782.32	903.16	20,178.98	40.74	(42.28)	4,031.01	14,723.56	59,399.71
Profit/(loss)for theyear	-	-	-	2,765.51	-	-	-	-	2,765.51
Other comprehensive Income	-	-	-	-	(0.32)	(6.00)	(799.87)	-	(806.19)
Income tax on OCI items	-	-	-	-	0.09	-	(27.70)	-	(27.61)
Total Comprehensive Income	-	-		2,765.51	(0.23)	(6.00)	(827.57)	-	1,931.71

Balance as at March 31, 2023	13,782.22	5,782.32	903.16	22,944.49	40.51	(48.28)	3,203.44	14,723.56	61,331.42

For theyear ended March 31,2022	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	Reserves & Surplus				Items of Other Comprehensive income				Total
	Capital reserve	Security Premium Reserve	General reserve	Retained Earnings	Actuarial gain/ (loss)	Share of other comprehensive income of joint ventures and associate	Equity instruments measured at fair value	Revaluation Surplus

Balance as at March 31,2021	13,782.22	5,782.32	903.16	17,615.86	35.72	(55.61)	2,816.66	-	40,880.33
Profit/(loss)for theyear	-	-	-	2,563.12	-	-	-	-	2,563.12
Other comprehensive Income	-	-	-	-	6.96	13.33	1,255.83	18,938.52	20,214.64
Income tax on OCI items	-	-	-	-	(1.94)	-	(41.47)	(4,214.96)	(4,258.37)
Total Comprehensive Income	-	-		2,563.12	5.02	13.33	1,214.35	14,723.56	18,519.38

Balance as at March 31,2022	13,782.22	5,782.32	903.16	20,178.98	40.74	(42.28)	4,031.01	14,723.56	59,399.71

C. Non-controlling interests For the year ended March 31, 2023

For the year ended March 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2023
(Amount in Rs. lacs)
Balance as at March 31, 2022	Changes during the year	Consolidation adjustment	Balance as at March 31, 2023
-	14.45	-	14.45
For the year ended March 31, 2022 (Amount in Rs. lacs)
Balance as at March 31, 2021	Changes during the year	Consolidation adjustment	Balance as at March 31, 2022
-	-	-	-

As per our report of even date

For P N A M & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants Modi Rubber Limited ICAI FRN: 001092N/N500395

Abhishek Nahta Partner Membership No.: 513559

Alok Kumar Modi S.K. Bajpai Managing Head- Legal & Company Director Secretary DIN: 00174374 ACS: 10110 Amrit Kapur Piya Modi Kamal Gupta Director Director Chief Financial Officer DIN:- 00508710 DIN: 03623417

Place : New Delhi Date : 26/05/2023

Modi Rubber Limited

Consolidated Statement of Cash Flows for the year ended March 31, 2023

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
A Cash flow from operating activities Profit before tax Adjustments for: Depreciation and amortization Provision of doubtful debts and advances Allowance for doubtful advances Provision for gratuity Provision for diminution in the value of investment (Gain)/ loss on sale of property, plant and equipment (net) (Gain)/ loss on sale of investments Financial assets measured at fair value (Gain)/ loss on future Contract Interest on security deposit at amortised cost Interest expenses Interest on leases Liabilities written back Interest income Dividend income Rental income Unrealised foreign exchange losses /(gains) (net) Sundry balances written off Exceptional Items Net share of (profit)/ loss in joint ventures and associate Unwinding of discount on financial assets at amortized cost Operating Profit/ (loss) before working capital changes Adjustments for: Increase/(decrease) in trade payables Increase/(decrease) in other non-current financial liabilities Increase/(decrease) in other non-current liabilities Increase/(decrease) in other current financial liabilities Increase/(decrease) in other current liabilities Increase/(decrease) in borrowings Increase/(decrease) in long term provision Decrease/(increase) in loans and advances Decrease/(increase) in other non-current assets Decrease/(increase) in trade receivables Decrease/(increase) in other non-current financial assets Decrease/(increase) in other current financial assets Decrease/(increase) in other current assets Decrease/(increase) in bank balances other than cash & cash equivalents Cash (used in) operations Income taxes (paid) / refund (net) Net cash generated by / (used in) operations (A) B Cash flow from investing activities Dividend received Rental Income Interest received Profit on future Contract Purchase of property, plant and equipment & Intangibles Proceeds from sale of property, plant and equipment & Intangibles Proceeds from term deposit maturity Proceeds from sale of short term investments Purchase of short term investments Net cash generated by / (used in) investing activities (B) C Cash flow from financing activities Increase/ (decrease) in borrowings Repayment of leases Interest paid Net cash generated by / (used in) financing activities (C) Net increase/(decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	3,140.96 212.31 25.86 1.00 10.67 - (0.41) (52.28) (320.95) (9.45) - 33.34 14.45 (16.55) (343.01) (118.79) (0.03) - 2.46 - (4,339.02) -	2,754.03 259.81 3.65 157.99 - 330.81 (18.59) (28.64) (268.33) (13.73) (0.97) 13.73 13.75 (0.47) (318.49) (101.19) - (0.02) 51.40 0.33 (4,441.36) 0.88
	(1,759.44) 109.02 (4.55) (3.05) 58.64 178.25 1,639.37 48.48 175.43 (7.99) (1,778.00) (94.53) (30.30) 36.76 (13.59)	(1,605.42) (1.78) (9.19) (0.98) 288.63 (10.48) (102.38) 22.89 45.53 (3,090.34) 2,903.10 (785.16) -
	(1,445.50) (367.04)	(2,345.58) (118.69)
	(1,812.54)	(2,464.27)
	2,553.34 0.03 343.01 9.45 (956.12) - - 10,647.52 (10,150.00)	2,602.44 - 375.80 13.73 (499.06) 20.00 200.00 6,733.00 (6,786.16)
	2,447.23	2,659.74
	(11.51) (23.16) (33.33)	(30.23) (23.81) (13.73)
	(68.00)	(67.77)
	566.69 230.67	127.70 102.97
	797.36	230.67

Modi Rubber Limited

Consolidated Statement of Cash Flows for the year ended March 31, 2023

	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Notes: (i) The Statement of cash flows has been prepared under the indirect method as set o (ii) Amounts in brackets represent cash outflows. (iii) Purchase of Property, plant and equipment includes adjustments for movement of (iv) Components of cash and cash equivalents included under cash and bank balance Cash and cash equivalents (Note 12)	ut in Ind AS- 7 'Statement of Cash Flows'. capital work-in-progress during the year. s are as below:
Cash on hand Balances with banks - In current account - Deposits with original maturity of upto 3 months Total	4.17 793.19 -	3.56 227.11 -
	797.36	230.67

The accompanying notes 1 to 59 form an integral part of these financial statements.

As per our report of even date

For P N A M & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants Modi Rubber Limited ICAI FRN: 001092N/N500395

Abhishek Nahta

Partner Membership No.: 513559

Alok Kumar Modi Managing Director DIN: 00174374

S.K. Bajpai

Head- Legal & Company Secretary ACS: 10110

Piya Modi Director DIN: 03623417

Kamal Gupta Chief Financial Officer

Place: New Delhi Amrit Kapur Date : 26/05/2023 Director DIN:- 00508710

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

1. 1.1 GROUP CORPORATE INFORMATION

Modi Rubber Limited Group consists of Modi Rubber Limited (“the Company”), its subsidiaries, (the Holding Company and its subsidiaries together referred to as “the Group”), its three joint ventures and one associate. The Group’s operations comprise manufacturing automobile tyres, tubes & flaps, manufacture and sale of resin coated sand as well as operating salons.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These Consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis, except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (“the Act”) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year-end figures reported in this statement.

Basis of consolidation

Subsidiaries

The Consolidated Financial Statements of the Group include its subsidiaries namely Superior Investment (India) Limited and Spin Investment (India) Limited incorporated in India in which the Company holds 100% of their respective paid up Share Capital. Subsidiaries are entities controlled by the Company. Control exists when the Company (a) has power over the investee; (b) it is exposed, or has rights, to variable returns from its involvement with the investee and (c) has the ability to affect those returns through its power over the investee. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements listed above. In assessing control, potential voting rights that currently are exercisable are taken into account. These consolidated financial statements does not include the subsidiary which is under liquidation since prior years.

The assets, liabilities, income and expenses of subsidiaries are aggregated and consolidated, line by line. Profit or loss and each component of other comprehensive income are attributed to the Group as owners and to the non-controlling interests.

Inter-Group transactions and balances including unrealized profits are eliminated in full on consolidation.

Joint ventures and Associate

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The results, assets and liabilities of a joint venture are incorporated in these financial statements using the equity method of accounting as described below.

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results, assets and liabilities of a associate are incorporated in these financial statements using the equity method of accounting as described below.

Equity method of accounting

An interest in a joint venture and associate is accounted for using the equity method from the date in which the investee becomes a joint venture/associate and are recognized initially at cost. The Group’s investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated financial statements include the Group’s share of profits or losses and equity movements of equity accounted investees, from the date that joint control/significant influence commences until the date that joint control/significant influence ceases. When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments in the nature of net investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. When the Group transacts with a joint venture/associate, unrealized profits and losses are eliminated to the extent of the Group’s interest in its associate or joint venture.

The Consolidated Financial Statements comprise the financial statements of Modi Rubber Limited and its subsidiaries, joint ventures and associate companies as on March 31, 2023 which are as under:

S.No.	Name of the Subsidiary and Joint Venture	Financial year ended on	Extent of Holding Company’s interest as 31 March 2022/ 31 March 2021	Country of incorporation
Subsidiaries
i)	Spin Investment India Limited	March 31, 2023	100%/100%	India
ii)	Superior Investment India Limited	March 31, 2023	100%/100%	India
iii)	Uniglobe Mod Travels PvtLtd	March 31, 2023	89.89%/89.89%	India
Joint Ventures
iv)	Asahi Modi Materials PrivateLimited	March 31, 2023	49%/49%	India
v)	Gujarat Guardian Limited	March 31, 2023	21.24%/21.24”%	India
vi)	Modi Marco Aldany PrivateLimited	March 31, 2023	50%/50%	India
Associate
vii)	Vinura Beverages Private Limited	March 31, 2023	49.98%/49.98%	India
viii)	IQ Modi Power Pvt Ltd	March 31, 2023	50%/50%	India

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

1.3 RECENT ACCOUNTING PRONOUNCEMENTS

Ind AS 16 – Property Plant and equipment

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Group has evaluated the amendment and there is no impact on its financial statements.

Ind AS 37 – Provisions, Contingent Liabilities and Contingent Assets

The amendment specifies that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022, although early adoption is permitted. The Group has evaluated the amendment and the impact is not expected to be material.

2. SIGNIFICANT ACCOUNTING POLICIES

Functional and Presentation Currency

The financial statements have been prepared and presented in Indian Rupees (₹), which is also the Group’s functional currency.

Basis of measurement

Rounding off

All amounts in the financial statement and accompanying notes are presented in Rs Lacs and have been rounded-off to two decimal places unless stated otherwise.

Use of estimates

100

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

management’s evolution of the relevant fact and circumstances as on the date of financial statement. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

All the Assets and liabilities have been classified as current and non-current based on the Group’s normal operating cycle of 12 months and other criteria set out in Schedule III of the Companies Act, 2013.

The Group has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. This is based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents.

a) Inventories

Inventories are stated at the lower of cost and net realisable value after providing for obsolescence. Costs of inventories are determined on weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

i) Raw Materials ii) Goods-in-process iii) Finished Goods iv) Stores, Spares Parts and Loose Tools v) Scrap and Wastage

Lower of cost or net realizable value Lower of cost or net realizable value Lower of cost or net realizable value At weighted average cost At estimated selling price

b) Property, Plant and equipment

i) Items of property, plant & equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. When significant part of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Subsequent costs are included in the assets carrying amount or recognised as a separate assets, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost can be measured reliably. All other repair and maintenance cost are recognised in the statement of profit and loss as incurred.

101

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

Leasehold land, building on leasehold land as well as building on freehold land that are neither held to earn rentals nor for capital appreciation do not qualify as investment property.

During the year ending on March 31, 2022, the Group has changed its accounting policy with respect to measurement of freehold land. According to the revised policy, freehold land (other than land under dispute) will be required to be revalued and measured at fair value, based on periodic valuation done by external valuers using market approach. Any revaluation surplus will be recorded in Other Comprehensive Income and credited to Land revaluation reserve in other equity. This revaluation surplus is not available for distribution to shareholders.

ii) Intangible assets acquired separately are measured on initial recognition at cost. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Subsequent measurement (Impairment, depreciation & amortisation and useful lives)

c) Depreciation and Amortization

i) Depreciation on Plant & Machinery is provided on Straight Line method and other assets on the written down value method over the useful estimated lives of assets as mentioned in Schedule II of the Companies Act, 2013. The estimated useful lives of the assets are as follows:

Assets	Useful Life
Building	30-60 years
Plant &Machinery	15 years
Furniture &Fixtures	10 years
Electrical Installation	10 years
Vehicles	8 years
OfficeEquipment	5 years
Computers	3 years

ii) Intangible assets are amortized on a straight line basis over the estimated useful economic life.
iii) The Group considers purchase of Mobile phones as revenue expenditures, hence they are charged to statement of profit & loss in the year of its purchase.

102

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

iv) Depreciation on Investment property is provided on the written down value method over the useful estimated lives of assets as mentioned in Schedule II of the Companies Act, 2013. Useful lives and residual values of all the fixed assets are reviewed annually.

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Revenue from Operations

Rental income from operating leases is recognized on a straight-line basis over the lease term.

Interest

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding.

Dividend

Dividend income is recognized when the Group’s right to receive dividend is established by the reporting date.

Other Incomes are recognized on accrual basis.

e) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current Tax

Deferred tax

103

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and Deferred tax for the year

Minimum Alternate Tax

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Group recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Group recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as "MAT Credit Entitlement." The Group reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period.

f) Earning per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Group’s earning per share is the net profit for the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue.

g) Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset/s and the arrangement conveys a right to use the asset/s, even if that right is not explicitly specified in an arrangement.

104

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the asset to the lessee. All other leases are classified as operating leases.

The Group determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. In assessing whether the Group is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Group to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Group revises the lease term if there is a change in the non-cancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

The Group has adopted Ind AS 116, effective annual reporting period beginning April 1, 2019 and applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the standard, recognized on the date of initial application (April 1, 2019). Accordingly, the Group has not restated comparative information, instead, the cumulative effect of initially applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on April 1, 2019.

The Group has elected not to apply the requirements of Ind AS 116 leases to short term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

h) Foreign Exchange Transactions

The functional currency of the Group is the Indian rupee. These financial statements are presented in Indian rupees.

In preparing the financial statements, transactions in currencies other than the Group's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

i) Borrowing Costs

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

105

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of funds.

j) Employee Benefits

Short term employee benefits

Performance incentives : The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognised during the period when the employee renders the services. These benefits include performance incentives.

Compensated absences : As per the Group's leave policy, employees have to utilise their leave entitlement during the financial year and cannot carry forward their outstanding leave balance. Consequently, the Group does not make any provision for leave encashment/compensated absences as at the year end

Post employment benefit plans

Defined Contribution Plan - Contributions towards Employees' PF Linked Pension Scheme is made to the regulatory authorities, where the Group has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Group does not carry any further obligations, apart from the contributions made on a monthly basis.

Defined Benefit Plan

Provident Fund: Contribution towards provident fund are made to Employees’ Provident Fund Organisation, India.

Gratuity : The Group provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering employees on actual duty. The Group's liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses/gains are recognised in the Other Comprehensive Income in the year in which they arise.

k) Provisions, Contingent Liabilities and Contingent Assets

106

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognised in the financial statements.

l) Cash flow statement

m) Financial instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the instruments.

Initial recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

a) Non-derivative financial instruments

i) Cash and Cash equivalents

The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consists of balances with banks which are unrestricted for withdrawal and usage.

ii) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii) Equity investments at fair value through other comprehensive income (FVTOCI)

These include financial assets that are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

107

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

iv) Financial assets at fair value through profit or loss (FVTPL) A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

v) Financial liabilities

b) Share Capital

Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are recognized as a deduction from equity.

c) Derecognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Group’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

n) Fair value of financial instruments

In determining the fair value of its financial instruments, the Group uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include available quoted market prices. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized. The fair values of investments in mutual fund units is based on the net asset value (“NAV”) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Group can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability

108

Modi Rubber Limited

Significant accounting policies and other notes to consolidated financial statements for the year ended March 31, 2023

o) Impairment of Financial Assets

The Group recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12–month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

In case of investment in group companies, the management shall review the performance of the investee company on continuous basis while performing impairment testing on quarterly basis and after such assessment, if required so, the adequate provision for impairment in the value of investment shall be provided in the books of account. On disposal of investments in these shares, the difference between net disposal proceeds and carrying amounts are recognised in the Statement of Profit and Loss.

109

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

3. Property, plant & equipment

As	at March 31, 2023				(A	(A	(A	mount in Rs. lacs)
Par	ticulars	Gross Block			Depreciation/Amortisation and Impairment			Net Block
		As at Revalution Deductions/ As at April 01, 2022 Adjustments March 31, 2023 Additions			As at For Deductions/ Upto April 01, 2022 theyear Adjustments March 31, 2023			As at March 31, 2023
Offi Ve Tot As Lea Bui Ow Fre Bui Pla Fur Co	(A) (B) ce equipment hicles al (A) + (B) sets taken on lease sehold land ldings ned assets ehold land ldings nt & machinery * niture and fixtures mputers	127.53 2.04 - - 129.57 1,698.82 1.63 - - 1,700.45			- - - - 373.68 65.01 - 438.69			129.56 1,261.77
		1,826.35 3.67 - - 1,830.02			373.68 65.01 - 438.69			1,391.33
		19,121.01 - - - 19,121.01 379.51 - - - 379.51 177.92 - - - 177.92 526.72 7.46 - - 534.17 34.49 16.17 - 0.45 50.21 487.47 31.08 - 2.97 515.58 383.58 5.30 - - 388.88			- - - - 89.52 18.09 - 107.61 - - - - 384.28 37.12 - 421.40 22.71 7.26 - 29.97 371.99 35.58 1.96 405.61 252.79 40.09 - 292.88			19,121.01 271.90 177.92 112.77 20.24 109.97 96.00
		21,110.69 60.00 - 3.42 21,167.28			1,121.28 138.15 1.96 1,257.47			19,909.81
		22,937.04 63.67 - 3.42 22,997.29			1,494.96 203.15 1.96 1,696.15			21,301.14

	Relevant line item in the Balance sheet	Description of item of property	Gross carrying value (Amount in lacs)	Title deeds held in the name of p o e	Whether title deed holder is a romoter, director or relative *f promoter/director or mployee ofpromoter/director**	Property held since which date	Reason for not be name of the comp	ing held in the any
	Buildings on leasehold land	Patel House, Mumbai	27.49	Parmanand Tulsidas Patel	No	May 06, 1982	Pending for registra of specific performa	tion due to outcome ce suit.
	Freeehold land	15, Friends Colony West, New Delhi	2.07	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registra of specific performa	tion due to outcome ce suit.
	Buildings on Freehold land	15, Friends Colony West, New Delhi	18.96	Arun Kumar Kapur (HUF)	No	February 02, 1984	Pending for registra of specificperforma	tion due to outcome ce suit.

During the year ending on March 31, 2022, the Group has changed its accounting policy with respect to measurement of freehold land. According to the revised policy, freehold land (other than land under dispute) will be required to be revalued and measured at fair value, based on periodic valuation done by external valuers using market approach. Any revaluation surplus will be recorded in Other Comprehensive Income and credited to Land revaluation reserve in other equity. This revaluation surplus is not available for distribution to shareholders. As on March 31, 2023 the carrying amount of freehold land does not differ materially from that which would be determined using fair value.

** No depreciation has been considered by the Group, as the plant & machinery has been carried at residual value.

As at March 31, 2022			(A	mount in Rs. lacs)
Particulars		Gross Block	Depreciation/Amortisation and Impairment	Net Block
	As at March 31, 2021	Revalution Deductions/ As at Adjustments March 31, 2022 Additions	As at For Deductions/ Upto March 31, 2021 theyear Adjustments March 31, 2022	As at March 31, 2022
(A) (B) As at March 31, 2023 Right-of-use assets Plant & machinery Furniture and fixtures Data Processing Equipment Office equipments & electrical installation Vehicles Total (A) + (B) Assets taken on lease Leasehold land Buildings Own assets Freehold land Buildings	127.53 1,698.82	- - - 127.53 - - 1,698.82	- - - - 305.29 68.39 - 373.68	127.53 1,325.14
	1,826.35	- - - 1,826.35	305.29 68.39 - 373.68	1,452.67
	183.90 351.41 177.92 506.34 23.15 480.20 273.65	- 18,938.52 1.41 19,121.01 28.10 - - 379.51 - - - 177.92 20.37 - - 526.72 11.85 - 0.51 34.49 7.27 - - 487.47 109.93 - - 383.58	- - - - 70.92 18.60 - 89.52 - - - - 335.74 48.53 - 384.28 16.41 6.38 0.08 22.71 327.43 44.56 - 371.99 194.49 58.30 - 252.79	19,121.01 289.99 177.92 142.44 11.78 115.48 130.79
	1,996.58	177.52 18,938.52 1.92 21,110.69	944.98 176.37 0.08 1,121.28	19,989.41
	3,822.93	177.52 1.92 22,937.04	1,250.28 244.76 0.08 1,494.96	21,442.08
			(A	mount in Rs. lacs)
Particulars		Gross Block	Amortisation	Net Block
		As at Deductions/ As at April 01, 2022 Additions Adjustments March 31, 2023	As at For Deductions/ Upto April 01, 2022 the year Adjustments March 31, 2023	As at March 31, 2023
As at March 31, 2022 Total Right-of-use assets		171.07 19.47 - 190.54	58.54 8.68 - 67.22	123.32
		171.07 19.47 - 190.54	58.54 8.68 - 67.22	123.32
			(A	mount in Rs. lacs)
Particulars		Gross Block	Amortisation	Net Block
		As at Deductions/ As at March 31, 2021 Additions Adjustments March 31, 2022	As at For Deductions/ Upto March 31, 2021 theyear Adjustments March 31, 2022	As at March 31, 2022
Total Right-of-use assets		171.07 - - 171.07	44.18 14.36 - 58.54	112.53
		171.07 - - 171.07	44.18 14.36 - 58.54	112.53

110

Other intangible assets As at March 31, 2023						(A	mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at April 01, 2022 Additions Adjustments March 31, 2023				As at For Deductions/ Upto April 01, 2022 theyear Adjustments March 31, 2023	As at March 31, 2023
Softwares Total As at March 31, 2022	22,945.09	8.05 0.77 - 8.82				7.32 0.41 - 7.73	1.09
		8.05 0.77 - 8.82				7.32 0.41 - 7.73	1.09
		64.44 3.42 23,006.12				1,502.28 203.56 1.96 1,703.88 (A	1.09 mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at March 31, 2021 Additions Adjustments March 31, 2022				As at For Deductions/ Upto March 31, 2021 theyear Adjustments March 31, 2022	As at March 31, 2022
Softwares Total 4. Investment Properties As at March 31, 2023		7.93 0.12 - 8.05				6.63 0.69 - 7.32	0.73
		7.93 0.12 - 8.05				6.63 0.69 - 7.32	0.73
						(A	mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at April 01, 2022 Additions Adjustments March 31, 2023				As at For Deductions/ Upto April 01, 2022 theyear Adjustments March 31, 2023	As at March 31, 2023
Building Total As at March 31, 2022	-	- 13.71 - 13.71				- - - -	13.71
		- 13.71 - 13.71				- - - -	13.71
		13.71 - 13.71				- - - - (A	13.71 mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at March 31, 2021 Additions Adjustments March 31, 2022				As at For Deductions/ Upto March 31, 2021 theyear Adjustments March 31, 2022	As at March 31, 2022
5. Capital Work in Progress As at March 31, 2023 Building Total		- - - -				- - - -	-
		- - - -				- - - -	-
						(A	mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at April 01, 2022 Additions Adjustments March 31, 2023				As at For Deductions/ Upto April 01, 2022 theyear Adjustments March 31, 2023	As at March 31, 2023
As at March 31, 2022 Buildings Total		167.09 858.50 - 1,025.59				- - - -	1,025.59
		167.09 858.50 - 1,025.59				- - - -	1,025.59
						(A	mount in Rs. lacs)
Particulars		Gross Block				Amortisation	Net Block
		As at Deductions/ As at March 31, 2021 Additions Adjustments Mar 31, 2022				As at For Deductions/ Upto March 31, 2021 theyear Adjustments Mar 31, 2022	As at Mar 31, 2022
Capital work-in-progress ageing schedule: Total As at March 31, 2023 Buildings		25.10 167.09 25.10 167.09				- - - -	167.09
		25.10 167.09 25.10 167.09				- - - -	167.09
		(Amount in Rs. lacs)
Capital Work In Progress (CWIP)		Amount in CWIP for aperiod of			Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
Projects in progress	1,025.59	-	-	-	1,025.59
Projects temporarily suspended	-	-	-	-	-
As at March 31, 2022		(Amount in Rs. lacs)
Capital Work In Progress (CWIP)		Amount in CWIP for aperiod of			Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
Projects in progress	167.09	-	-	-	167.09
Projects temporarily suspended	-	-	-	-	-

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

111

5. Non-current Investments

(Amount in Rs. lacs)
As at
March 31, 2023
As at
March 31, 2022
289.38188.10
57.7374.12
4,760.35
6,358.56
115.60105.18
5,223.06
6,725.96
-
2,137.50
2,137.50
(2,137.50) (2,137.50)
241.00
-
(241.00)
-
6.196.19
(6.19) (6.19)
58.84-
0.50
-
(0.50)
-
9.009.00
(9.00) (9.00)
1.051.05
(1.05) (1.05)
125.00125.00
(125.00) (125.00)
2,520.00
2,520.00
520.00
-
4.38
-
(4.38)
-
1.13
-
(1.13)
-
1.50
-
-
-
9.27
-
(9.27)
-
3,100.34
2,520.00
0.01
0.01
255.87
255.87
(255.87)
(255.87)
-
2,910.82
-
(727.70)
86.00
86.00
(86.00)
(86.00)
0.01
2,183.13
-

Particulars

(a) Investment In Equity Instruments- Fully paid up
Quoted (at fair value through Other comprehensive income ) No.of Shares/Units (refer footnote i)
Unquoted ( at cost ) No.of Shares/Units
Subsidiaries
Less: Provision for diminution in value of shares
Less: Provision for diminution in value of shares
Joint Ventures
Associates
Less : Provision for diminution in value of shares
Other Investments (at fair value) No.of Shares/Units
16000 (March 31, 2022: Nil) NSE of India Ltd
Less : Provision for diminution in value of shares
Less : Provision for diminution in value of shares
Less : Provision for diminution in value of shares
(b) Investment in Preference shares
Unquoted
Less: 'Provision for impairment in the value of Investment
Less: Provision for diminution in value of shares
Joint Venture
Less: Provision for diminution in value of shares
'860,000 (March 31,2022 : 860,000 ) - 0.1% Non Cumulative Optionally Convertible Preference Shares of Modi
Marco Aldany Pvt Ltd. of Rs.10 each (refer note (iv))
Less: Provision for diminution in value of shares
9,000 (March 31,2022: 9,000) Licensintorg Co. (I) Pvt. Ltd. of Rs. 10 each
333,428 (March 31, 2022: 333,428) Infosys Limited of Rs.5 each
197,999 (March 31, 2022:197,999) Lords Chloro Alkali Ltd. of Rs. 10 each
Less: Provision for diminution in value of shares
Less: Provision for diminution in value of shares
1,250,000 (March 31, 2022: 1,250,000) Spark Plug Ltd. of Rs. 10 each
99 (March 31,2022: 99) - 7% Non Cumulative Non Convertible Redeemable Preference Shares of K.K. Modi
Investment and Financial Services Private Limited of Rs.10 each
2,558,670 (March 31,2022 :2,558,670 ) - 9% Non Cumulative Optionally Convertible Preference Shares of Vinura
Beverage Pvt. Ltd. of Rs. 10/- each fully paid up (refer note (iii))
24,10,000 (March 31, 2022: 24,10,000) equity shares of 10 each fully paid-up in Egoza Private Limited (Formaly known as Mglobe International Private Limited) 4,45,940 (March 31, 2022: 4,45,940 & April 01, 2021: 4,45,940) equity shares of 10 each fully
paid-up in Modi Edutech Private Limited
5,000 (March 31, 2022: 5,000 & April 01, 2021: 5,000) equity shares of 10 each fully paid-up in Modi Hospitality and Tours Private Limited 32,121 (March 31, 2022: 32,121) equity shares of 10 each fully paid-up in Modi Industries
Li
it d
32,209 (March 31, 2022: 32,209 ) equity shares of 10 each fully paid-up in Modi Spining & Weaving Mills Co. Limited 15,000 (March 31, 2022: 15,000) equity shares of 10 each fully paid-up in MMB Sales India
Private Limited
92,726 (March 31, 2022: 92,726) units ` 10 each fully paid-up in OneGlobe Travels India
Private Limited
96,000 (March 31, 2022: 96,000) Modi Carpets Ltd. of Rs. 10 each
Less: Provision for diminution in value of shares
11,550 (March 31,2022: 11,550) Kesha Processors Ltd. of Rs. 10 each
680,001 (March 31, 2022: 680,001) Bihar Sponge Iron Ltd. of Rs. 10 each
4,400 (March 31, 2022: 4,400 ) Housing Development Finance Corpo. Ltd. of Rs. 2 each
11,475,000 (March 31, 2022: 11,475,000) Modistone Ltd. of Rs. 10 each
56,00,000 (March 31,2022: 56,000,00) equity shares of Mod Fashions & Securities Pvt. Ltd. of Rs. 10/- each fully
29,108,214 (March 31,2022 : 25,108,214 ) - 9% Non Cumulative Optionally Convertible Preference Shares of
Uniglobe Mod Travels Private Limited of Rs.10 each (refer note (iii))

Modi Rubber Limited

112

Notes to financial statements for the year ended March 31, 2023

(c) Investment In Government or Trust Securities

Unquoted ( at fair value)

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 (c) Investment In Government or Trust Securities Unquoted ( at fair value)
(d) Investment In mutual funds Quoted ( at fair value ) (e) Others 10,875 (March 31,2022: 10,875) Tax Free, Secured, Redeemable, Non-Convertible Bonds of Indian Railway Finance Corporation Ltd.of Rs. 1000/- each fully paid up for 15 Years (Inception date: 23.02.2012; Maturity date: Less: Share of loss in joint venture remain unadjusted from fully paid up shares (Refer note 51) 2,500 (March 31,2022: 2,500) Units of Prudential ICICI Technology Fund of Rs. 10/- each fully paid up 9,977,187 (March 31, 2022: 9,977,187) Modi Marco Aldany Pvt Ltd. of Rs. 10 each (3,327,187 shares Fully Paid up & 6,650,000 Partly Paid upto Rs 9.934 each) Total	108.75108.75
	108.75 108.75
	1.361.83
	1.36 1.83
	660.63660.63 (660.63) (660.63)
	- -
	~~-~~
	8,433.52 11,539.67

Footnote:

(i) Market Rate - Rs 5223.06 lacs (March 31, 2022: Rs 6725.96 lacs)

(ii) For explanation on the Company credit risk management process refer note 40.1

(iii) (a) During the year ended 31 March 2023, the Subsidiary company "Spin Investment India Limited" have additionally subscribed optionally convertible preference share of Step Subsidiary company "Uniglobe Mod Travels Private Limited "for Rs. 600 lacs.and additionally the Step Subsidiary company "Uniglobe Mod Travels Private Limited "during the year ended 31 March 2023 has converted its convertible preference share capital into the Equity share capital of Rs. 10 each in the ratio of 1:1.

(iv) Terms of Preference Shares

The Group had invested in 86,000 Non Cumulative Optionally Convertible Preference Shares (OCPS) of Modi Marco Aldany Private Limited at face value of Rs.10 each. The total OCPS shall carry a coupon rate of 0.01% for Preference Dividend (Non Cumulative) from the date of allotment upto the date of redemption / conversion on the face value. The term of OCPs is maximum 20 years. The issuer shall only have an option to convert such no. of OCPS into Equity Shares of Rs. 10/- each at the option of the company at any time during the tenure of the OCPS i.e. 20 years from the date of issuance. The redemption would be done in accordance with the mutual agreement between issuer and the investor on a later date.

Modi Rubber Limited

113

Notes to financial statements for the year ended March 31, 2023

6. Other Non-current Financial Assets

6. Other Non-current Financial Assets
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Security deposits Deposits with banks (Refer footnote a) Deposits with banks for more than one year (refer footnote (a),(b) & (c)) Interest accrued on deposits with banks for more than one year Others Total	16.34 16.23 4,457.64 4,389.93 147.89 121.18 3.87 3.87
	4,625.74 4,531.21

Footnote:

(a) Deposits with banks includes margin money of Rs. 1,300 lacs (March 31, 2022: Rs. 1300 lacs) deposited with banks and interest of Rs. 21.24 lacs accrued thereon upto March 31, 2023 Rs. 19.12 lacs (upto March 31, 2022: Rs 13.89 lacs) respectively towards issuance of Bank Guarantee in favour of the Registrar of Hon’ble Supreme Court in the matter of intercorporate deposits (Refer Note 20(b)).

(b) Deposits with banks which represents two escrow accounts of Rs. 3,117.64 lacs (March 31, 2021: Rs. 2,964.93 lacs) and accrued interest thereon of Rs.127.14 lacs (March 31, 2022: Rs. 101.42 lacs) respectively which were initially created for a period of eight years due to Share Purchase Agreement dated July 12, 2011, between the Company & Continental India Limited ("buyer"), in order to cover unascertained future liabilities prior to July 12, 2011. Pending to the settlement of claims, the parties have mutually agreed to extend the FDRs period in the escrow account till August 01, 2023.

(c) Deposits with banks also Inclues Fixed deposits of Rs. 60.00 lacs (March 31 2022 : NIL) are pledged as security with Axis Bank against Bank Guarantee.

7. Deferred tax liabilities (Net)

7. Deferred tax liabilities (Net)
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31,2022
Measurement of investment at fair value through other comprehensive income Deferred tax liabilities Revaluation surplus on Free Hold Land Provision for diminution in value of Investments Measurement of liabilities at amortised cost Total Measurement of assets at amortised cost Total Remeasurement of post employment benefit obligations On account of property, plant & equipment Taxes and Duties u/s 43B Measurement of investment at fair value through profit or loss Measurement of assets at amortised cost Rent equalisation reserve Deferred tax liabilities MAT credit entitlement Deferred tax assets Expected credit loss on trade receivables Carried forward business losses/ unabsorbed depreciation Provision for employee benefits	66.16 91.13 292.51 295.95 24.43 181.62 175.19 36.18 36.73 20.93 345.18 338.26 64.50 (56.47) (41.72) (553.25) (383.69) (2.75) (142.14) (21.30) (25.50) - - (6.27) (6.67)
	391.46 337.51
	4,214.96 4,214.96
	3,823.50 3,877.45

a) Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing laws.

8. Other non-current assets	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
(i) Unsecured Considered good (ii) Unsecured Considered doubtful Less : Provision for doubtful advances From others Total Income tax Excess of fund value over gratuity liability Others Customs Amount Recoverable Capital advances Deposits with Government Authorities	87.83 92.69 10.72 - - -
	10.72 - - -
	10.72 - 24.15 22.50 167.89 167.89 28.58 26.64 22.54 23.99
	341.71 333.72

Modi Rubber Limited

114

Notes to financial statements for the year ended March 31, 2023

9. Inventories

9. Inventories
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Stores, spare parts and loose tools (scrap) (refer note 50) Less: Provision for obsolescence Closing stock of stock-in-trade Total*	75.42 75.42 (75.42) (75.42) 0.00
	- -

Total

10. Current Investments

10. Current Investments
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Quoted ( at fair value ) (refer footnote) -523.79 839.7295.36 423,384.71 units (March 31, 2022: 423384.71) Mirae Asset NYSE Fang +ETF Fund of Fund-DPGG 43.63 46.41 222,755.63 Units (March 31, 2022: 222755.63) Canara Robeco Blue Chip Equity Fund -DG(LCDG) 101.71 100.46 212,451.56 units (March 31, 2022: 212451.56) Kotak Debt Hybrid-Direct Growth 106.51 101.09 Nil (March 31, 2022: 1990.556) ICICI- Money Market Fund -Direct Growth - 6.11 192,335.065 units (March 31, 2022: 192335.01) Axis Bluechip Fund-Direct Growth (EF-DG) 89.82 96.03 755.01 5,489.26 11743045.242 units (March 31, 2022: 5,003,338.96) ICICI Prudential Equity Arbitrage Fund -Direct Plan -Growth 3,634.74 1,465.50 92,522.17 units (March 31, 2022: 92,522.17) Parag Parikh Flexi Cap Fund- Direct Plan 49.08 48.59 199,990 units (March 31, 2022: Nil) ICICI Prud. Long Short Fund - Series - II 207.79 - 701721.214 units (March 31, 2022: Nil) SBI Arbitrage Opportunities Fund 201.83 - 3907.261 units (March 31, 2022: Nil) 'Investment Baroda BNP Paribas Liquid Fund - DG 101.36 - Investment in ASK Mutual Fund 183.03 - Investment in White Oak Capital 296.20 - 6,610.43 7,972.60 (Amount in Rs. lacs) Investment in Mutual Funds -Fully Paid up There is no significant restrictions on the right of ownership, realisability of investments or the remittance of income or proceeds of disposal. Total 4418066.071 units (March 31, 2022: 33912795.931 ) Axis Arbitrage Fund Direct Growth (EA- Nil (March 31, 2022: 4960118 ) units of Axis AAA Bond Plus - Regular Growth 68962.116 units (March 31, 2022: 8279.33 ) Axis Money Market Fund Direct Growth (MM-DG) 11. Trade Receivables *	-523.79 839.7295.36 43.63 46.41 101.71 100.46 106.51 101.09 - 6.11 89.82 96.03 755.01 5,489.26 3,634.74 1,465.50 49.08 48.59 207.79 - 201.83 - 101.36 - 183.03 - 296.20 -
	6,610.43 7,972.60
Particulars	As at March 31, 2023 As at March 31, 2022
Trade Receivables which have significant increase in Credit Risk Trade Receivables considered good - Secured Trade Receivables considered good - Unsecured Trade Receivables - credit impaired Less: Allowance for expected credit loss Total	- - 1,753.0115.42 357.31287.24 292.19198.94 (594.67) (471.75)
	1,807.84 29.85

*Includes amount due from related parties (Refer note 44)

(i) For explanation on the company credit risk management process refer note 40.1

Trade Receivables ageging schedule as on March 31, 2	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)	023 :- (Amount in Rs. lacs)
Particulars	Outstanding for following periods from due date of payment						Total
	Not due	Less than 6 months	6 months- 1 year	1-2 years	2-3 years	More than 3 years
(i) Undisputed Trade Receivables-considered good	-	1,671.50	56.56	15.46	2.01	7.48	1,753.01
(ii) Undisputed Trade Receivables - which have significant increase in credit risk	-	64.13	5.94	11.88	45.68	229.68	357.31
(iii) Undisputed Trade Receivables-Credit Impaired	-	-			-	292.19	292.19
(iv) Disputed Trade Receivables-considered good	-	-	-	-	-	-	-
(v) Disputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-	-
(vi) Disputed Trade Receivables-Credit Impaired	-	-	-	-	-	-	-
Less: Allowance for credit loss	-	-	-	-	-	-	(594.67)
Total Trade Receivables	-	1,735.63	62.50	27.34	47.69	529.35	1,807.84

Trade Receivables ageging schedule as on March 31, 2022	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)	:- (Amount in Rs. lacs)
Particulars	Outstanding for following periods from due date of payment						Total
	Not due	Less than 6 months	6 months-1 year	1-2 years	2-3 years	More than 3 years
(i) Undisputed Trade Receivables-considered good	-	14.97	0.20	0.26	-	-	15.42
(ii) Undisputed Trade Receivables - which have significant increase in credit risk	-	5.93	5.94	45.69	19.58	210.10	287.24
(iii) Undisputed Trade Receivables-Credit Impaired	-	3.80			11.99	183.15	198.94
(iv) Disputed Trade Receivables-considered good	-	-	-	-	-	-	-
(v) Disputed Trade Receivables - which have significant increase in credit risk	-	-	-	-	-	-	-
(vi) Disputed Trade Receivables-Credit Impaired	-	-	-	-	-	-	-
Less: Allowance for credit loss	-	-	-	-	-	-	(471.75)
Total Trade Receivables	-	24.70	6.14	45.94	31.57	393.25	29.85

Modi Rubber Limited

115

Notes to financial statements for the year ended March 31, 2023 12. Cash and Cash Equivalents

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 12. Cash and Cash Equivalents
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
For explanation on the company credit risk management process refer note 40.1 Balances with banks: Total 13. Other Bank Balances Cash on hand Current accounts	4.17 3.56 793.19 227.11
	797.36 230.67
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Total Other bank balances Deposits with original maturity for more than three months but realizable within twelve months from the Balance Sheet date Interest accrued	62.75 0.00 5.36 0.00
	68.12 -

For explanation on the company credit risk management process refer note 40.1

14. Current Loans

14. Current Loans
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Loans Less : Provision for doubtful loans and advances (i) Unsecured Considered good (ii) Unsecured Considered doubtful Less : Provision for doubtful advances Loans and advances to Related Party Unsecured Total Staff Advances* (ii) Unsecured Considered doubtful (Refer note 51) (i) Unsecured Considered good	48.04 234.04 151.75 164.25 (151.75) (164.25)
	48.04 234.04 49.73 39.17 7.46 7.46 (7.46) (7.46)
	49.73 39.16
	97.77 273.20

Includes amount due from Associate:

Vinura Beverages Pvt Ltd. (Refer note 53)

	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
	As at March 31, 2023		As at March 31, 2022
Type of Borrower	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans	Amount of loan or advance in the nature of loan outstanding	Percentage to the total Loans and Advances in the nature of loans
KMPs	5.50	5.63%	8.50	3.11%
Related Parties	199.79	204.34%	398.29	145.79%

(i) For explanation on the company credit risk management process refer note 40.1

15. Other current financial assets

15. Other current financial assets
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Other Asset (Refer note (ii) below) Total 16. Current tax assets (Net) Unsecured, considered good Interest accrued on loan (i) For explanation on the company credit risk management process refer note 40.1 Advances & other recoverable Unsecured, considered doubtful Interest accrued and due Less: Provision for doubtful interest Deposits with banks (ii) Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs (i.e. other than quoted prices for identical instru Dividend Receivable	22.20 2.10 24.44 15.52 0.01 0.71 1.32 1.32 0.67 0.66 0.66 (0.66) (0.66)
	49.29 18.99
	(Amount in Rs. lacs) ments in an active market).
Particulars	As at March 31, 2023 As at March 31, 2022
Total Current tax (net of provision for tax amounting to Rs. 269.13.20 lacs (March 31, 2022: Rs 235.09)	419.34 388.50
	419.34 388.50

Modi Rubber Limited

116

Notes to financial statements for the year ended March 31, 2023

17. Other current assets

17. Other current assets
	(Amount in Rs. lacs) As at March 31, 2023 As at March 31, 2022 195.13 69.27 - 31.98 - (31.98) 195.13 69.27 87.29 167.40 461.12 49.66 548.41 217.06 - 520.52 40.58 25.44 11.41 - 795.53 832.29 -
Particulars
(i) Unsecured Considered good (ii) Unsecured Considered doubtful Less : Provision for doubtful Advance Advances recoverable in cash/ kind or value to be received Prepaid expenses Balances with Statutory/ Government authorities-GST Total Advance for purchase of shares Related party (Refer note 44) Others Other claims recoverable

117

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

18. Share capital

18. Share capital
		(Amount in Rs. lacs)
Particulars	As at	As at
	March 31, 2023	March 31, 2022
Equity share capital

The Company has two class of shares i.e. Equity Shares having a par value of Rs.10 per share and Preference shares having a par value of Rs.100 per share.

Authorised shares Issued, subscribed and fully paid up shares Less: Adjustment for Consolidation (44,584 Equity Shares of Rs. 10 each) 50,000,000 Equity shares of par value Rs.10 each (50,000,000 Equity shares of par value Rs.10 each as at March 31, 2022) 200,000 11% Redeemable Cumulative Preference shares of par value Rs. 100 each (200,000 Preference shares of par value Rs.100 each as at March 31, 2022) 25,040,532 Equity shares of par value Rs.10 each (25,040,532 shares of par value Rs.10 each as at March 31, 2022)	5,000.00 5,000.00 200.00 200.00
	5,200.00 5,200.00
	2,504.05 2,504.05 4.46 -
	2,499.59 2,504.05

a) Movements in equity share capital:

During the year, the Company has neither issued nor bought back any shares.

b) Terms and rights attached to equity shares:

Voting

Each holder of equity share is entitled to one vote per share held.

Dividends

Liquidation

c) During the last five financial years, no class of shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back.
d) Shares held by the shareholders holding more than 5% shares in the Company.

Name of the share holders	As at March 31, 2023	As at March 31, 2023	As at March 31, 2022	As at March 31, 2022
	No. of shares	%age holding	No. of shares	%age holding
Equity share of Rs. 10 each, fully paid
ModFashions and SecuritiesPrivateLimited	12,010,267	47.96%	12,010,267	47.96%
WittaInternational Inc	2,554,078	10.20%	2,554,078	10.20%
Kinborough Limited	5,739,451	22.92%	5,739,451	22.92%

e) The details of Shareholdingof Promoters are as under :-	e) The details of Shareholdingof Promoters are as under :-	e) The details of Shareholdingof Promoters are as under :-	e) The details of Shareholdingof Promoters are as under :-	e) The details of Shareholdingof Promoters are as under :-
Shares held by promoters at the end of theyear				% Change during the year
S.No.	Promoter Name	No. of Shares	% of total Shares
1	Indofil Organic Industries Ltd	214,211	0.86%	-
2	M/S Modi Industries Ltd.	800,000	3.19%	-
3	Leaf Investment Private Limited	50,272	0.20%	-
4	Mod Fashions and Securities Private Limited	12,010,267	47.96%	-
5	A LA Mode Garments Private Limited	25,540	0.10%	-
6	WittaInternational Inc	2,554,078	10.20%	-

	Total	15,654,368	62.52%

118

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

19. Other equity

19. Other equity
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
General reserve Capital reserve Security premium Retained earnings Total	903.16 903.16 13,782.22 13,782.22 5,782.32 5,782.32 40,863.72 38,932.01
	61,331.42 59,399.71

Opening balance Add: Profit after tax for the year as per Statement of Profit and Loss Items of other comprehensive income recognised directly in retained earnings - Fair valuation impact on quoted equity investment, net of tax - Remeasurements of post-employment benefit obligation, net of tax - Revaluation surplus, net of tax - Share of other comprehensive income of joint ventures and associate, net of tax Retained earnings Closing balance	As at March 31, 2023 As at March 31,2022
	38,932.01 20,412.63 2,765.51 2,563.12
	41,697.53 22,975.75 (827.57) 1,214.35 (0.23) 5.02 - 14,723.56 (6.00) 13.33
	40,863.72 38,932.01

119

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

20 Non-current borrowings

20 Non-current borrowings
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Term loans from others- secured (refer footnote (a) & (c)) Inter corporate deposits- unsecured (refer footnote (b)) Total Borrowings Total non-current borrowings Less: Current portion of non-current borrowings	497.0211.51 250.00 250.00
	747.02261.51 - (11.51)
	747.02 250.00

Includes:

(a) Secured by hypothecation of vehicles:

(b) Rs. 250 lacs (March 31, 2022: Rs. 250 lacs) payable @ 50% of Rs.500 lacs to M/s Morgan Securities & Credit Pvt.Ltd.as per BIFR SS-08.

(c) Rs. 497.02 Lacs , Loan is secured by way of exclusive charge on entire current assets, both present & future of Step down Subsidiary " Uniglobe Mod Travels Private Limited". Entire loan is payable in 72 equal monthly instalments including of 24 months moratorium and carries interest rate from 9.25% p.a.

21. Lease liabilities

21. Lease liabilities
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Non-current Lease liability (Refer note 43) Current Lease liability (Refer note 43)	128.01 -
	128.01 114.85

	21.58 17.16

22. Other non-current financial liabilities	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Security deposits Total*	12.94 17.49
	12.94 17.49

*Deposits received from customers are payable on successful completion of terms and conditions attached to deposits.

23. Other non-current liabilities

23. Other non-current liabilities
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31,2022
Deferred rent Total 24. Long term provision Other payables:	0.28 3.33
	0.28 3.33

Particulars	As at March 31, 2023 As at March 31, 2022
Provision for employee benefits Total 25. Borrowings -Provision for Gratuity (Refer Note 45)	48.48 -
	48.48 -
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Total Secured Loans repayable on demand: From Banks: '- Axis Bank Ltd.- Cash credit facility(refer footnote (a)) Unsecured* '- from NBFC '- from Related party (intercorporate Loan) '- Axis Bank Ltd.- Overdraft facility Current maturities of long-term borrowings	707.33 - -66.14 284.63 - (0.00) - 228.0311.51
	1,219.99 77.65

(a) Rs. 707.23 Lacs ,Cash credit is secured by way of exclusive charge on entire current assets, both present & future. The Loan carries interest rate from 9% to 12% p.a. of Step down Subsidiary " Uniglobe Mod Travels Private Limited".

120

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 26. Trade Payables

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 26. Trade Payables
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
For goods and services Dues to micro, small and medium enterprises (refer footnote ii) Dues to others	26.94 16.73 860.47 761.67
	887.42 778.40

(i) The Company’s exposure to liquidity risk related to trade payables is disclosed in note 40.1

(ii) Trade payables are non interest bearing and are normally settled in normal trade cycle.

Trade Payables ageging schedule as on March 31, 202	3 :- (Amount in Rs. lacs)	3 :- (Amount in Rs. lacs)	3 :- (Amount in Rs. lacs)	3 :- (Amount in Rs. lacs)	3 :- (Amount in Rs. lacs)	3 :- (Amount in Rs. lacs)
Particulars		Outstanding for following periods from due date ofpayment				TOTAL
	Not Due	Less than 1year	1-2years	2-3years	More than 3years
(i)MSME	-	26.92	0.02	-	-	26.94
(ii)Others	-	159.27	56.04	2.27	117.72	335.30
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	-	-	-	-	136.62	136.62
(iv)Disputed dues - Others	-	-	-	-	-	388.56
Total						887.42
Trade Payables agegingschedule as on March 31,2022 :	-
Particulars		Outstandingfor following periods from due date ofpayment				TOTAL
	Not Due	Less than 1year	1-2years	2-3years	More than 3years
(i)MSME	-	16.29	-	-	0.44	16.73
(ii)Others	-	86.32	3.41	6.67	101.32	197.72
(iii)Disputed dues - MSME	-	-	-	-	-	-
(iv)Disputed dues - Others	-	-	-	-	136.62	136.62
(v)Unbilled creditors	-	-	-	-	-	427.33
Total						778.40

Details of dues to Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006

Particulars	As at	As at
	March 31, 2023	March 31, 2022
a. The principal amount and the interest thereon remaining unpaid to any supplier as at the end of the	26.94	16.73
year
b. The amount of interest paid by the Company along with the amounts of the payment made to the	-	-
supplier beyond the appointed date during the period / year;
c. The amount of interest due and payable for the period of delay in making payment (which have been	-	-
paid but beyond the appointed day during the year) but without adding the interest specified under this
Act;
d. The amount of interest accrued and remaining unpaid at the end of the yea	-	-
e. The amount of further interest remaining due and payable even in the succeeding years, until such	-	-
date when the interest dues as above are actually paid to the small enterprise.

27. Other Current Financial Liabilities
Particulars	As at March 31, 2023 As at March 31, 2022
* Include Rs. 247.80 lacs (March 31, 2022: 247.80 lacs) representing unclaimed liability of some workers towards full a per BIFR order. Total Other payables: Employee related payables* Security deposit received	28.16 - 278.28 247.80
	306.44 247.80
	nd final settlement for all their past dues as

The Company’s exposure to liquidity risk related to payables is disclosed in note 40.1

121

Notes to financial statements for the year ended March 31, 2023 28. Other Current Liabilities

Modi Rubber Limited

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 28. Other Current Liabilities
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31, 2022
Deferred rent Total Statutory dues* Advance received from customers	167.18 1,335.03 1,323.55 0.56 0.97
	1,502.77 1,324.52

*Footnote:

(a) include Rs. 1,298.29 lacs (March 31, 2022: Rs 1,313.32 lacs) which represents the sales tax liability of various State Authorities. The Company had made representations to the States Authorities for giving various relief and concessions in line with BIFR sanctioned scheme. In the opinion of the management, sales tax liability would be reduced as soon as representation of the Company will be heard by various States Authorities. Honourable Allahabad high court vide its order dated 31.07.2017 w.t no 914 of 2015 directed state authorities to provide relief to the company in accordance with the Rehabilitation scheme.

29. Short-term provision

29. Short-term provision
	(Amount in Rs. lacs)
Particulars	As at March 31, 2023 As at March 31,2022
Provision for employee benefits: Total -Provision for Gratuity (Refer Note 45)	10.67
	10.67 -

Modi Rubber Limited

122

Notes to financial statements for the year ended March 31, 2023

30. Revenue from operations

30. Revenue from operations
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Total 31. Other income Other income Other operating revenues Rent income Commision Income Sale of traded goods	2.16 - 171.11 98.65 281.01 321.12 78.08 92.92
	532.36 512.69
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31,2022
Rent Income Management service charges (refer note 44) Total Interest income on: Deposits with bank and others Others Interest income on income tax refund Security deposit at amortised cost Loans and advances Miscellaneous income Fair value gain financial assets measured at fair value through profit or loss (net) 32. Purchases of stock-in-trade* Dividend income Gain / (loss) on sale of mutual funds Gain / (loss) on sale of property, plant and equipment (net) Amounts written back Foreign exchange gain Gain/(loss) on future Contract	283.37 277.42 48.63 3.87 10.96 37.06 0.04 0.14 - 0.97 118.79 101.19
	461.79420.65 320.95 268.33 0.03 - 67.51 50.16 52.28 28.64 9.45 13.73 0.41 18.59 0.05 16.55 0.47 81.18 10.23
	548.41 390.15
	1,010.20 810.80
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Purchase of traded goods Total 33. Employee benefits expense	285.71 -
	285.71 -
	(Amount in Rs. lacs)
Particulars	For the year ended March 31, 2023 For the year ended March 31, 2022
Total Contributions to provident and other funds Staff welfare Salaries including bonus Gratuity expenses	276.65 255.10 31.93 32.13 0.03 - 47.77 69.98
	356.38 357.21

123

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023 34. Finance costs

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023 34. Finance costs
	(Amount in Rs. lacs) For the year ended March 31, 2023 For the year ended March 31,2022 1.53 7.11 0.14 - 14.45 13.75 0.57 6.88 0.42 - 30.68 30.68 - 0.88 47.79 59.30
Particulars
Lease liabilities (refer note 43) Unwinding of discount on financial liabilities Total Bank overdraft & loans Bank guarantee charges Interest on statutory dues Interest on: Others Others

35. Depreciation and amortisation

	(Amount in Rs. lacs) For the year ended March 31, 2023 For the year ended March 31, 2022 203.22 244.76 8.68 14.36 - - 0.41 0.69 212.31 259.81 (Amount in Rs. lacs) For the year ended March 31, 2023 For the year ended March 31, 2022 22.77 14.27 228.92 236.38 0.08 - 495.11 395.76 1.16 - 148.76 91.53 13.32 11.73 20.31 21.52 36.35 29.26 0.02 - 4.32 4.32 - 1.86 10.09 33.23 107.90 109.86 40.07 21.92 28.34 30.68 380.70 283.29 124.60 82.68 10.02 10.52 - 0.60 - 4.36 - 0.62 0.01 - 19.14 7.78 0.00 - 23.24 17.76 25.86 3.65 1.00 157.99 10.93 9.94 - 330.80 2.46 51.40 82.97 37.92 1,838.43 2,001.62
Particulars
Investment Property Amortisation on: Total 36. Other expenses Right-of-use assets Intangible assets Depreciation on: Property, plant and equipment
Particulars
Demat charges Management Fees Loss/ (Gain) on sale of future contract Training Expenses Loans & advances written off Total Liability paid on settlement Miscellaneous expenses Reimbursement of expenses Payment to statutory auditors (excluding Goods and Service tax) : Repairs & maintenance - Others Insurance premium Bank Charges Electricity & water Communication expenses Membership and subscription Power & fuel Business promotion expenses Rent expenses Rates and taxes Other services Audit fee Royalty Vehicle running and maintenance Provision for diminution in the value of investment (Refer note 51) Allowance for doubtful advances Legal and professional fees Travelling expenses - Buildings Allowance for bad and doubtful debts Tax audit fee Office maintenance Security service charges Guest house expenses

124

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

37. Disclosure as per Ind AS 33 on 'Earnings per Share'

Basic and diluted earnings per share

Basic and diluted earnings per share
Basic and diluted earnings per share (refer footnote a & b) (Rs.) Nominal value per share (Rs.) (a) Profit attributable to equity shareholders Profit/ (loss) for the year (in lacs) Profit attributable to equity shareholders (b) Weighted average number of equity shares Opening balance of issued equity shares (in lacs) Effect of shares issued during the year, if any Weighted average number of equity shares for Basic and Diluted EPS	March 31, 2023 March31,2022
	11.04 10.24 10 10
	March 31, 2023 March31,2022
	2,765.51 2,563.12
	2,765.51 2,563.12

	March 31, 2023 March31,2022
	250.41 250.41 - -
	250.41 250.41

At present, the Company does not have any dilutive potential equity shares.

125

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

38. Disclosure as per Indian Accounting Standard - 12 on 'Income taxes'

(a) Income tax expense

i) Income tax recognised in profit or loss

(a) Income tax expense i) Income tax recognised in profit or loss
March 31, 2023 March 31,2022 Current tax expense Current year 269.32 235.85 Earlier year tax adjustment 66.89 (0.12) 336.21 235.73 Deferred tax expense 39.24 (44.82) 39.24 (44.82) Total income tax expense 375.45 190.91 ii) Income tax recognised in other comprehensive income (Amount in Rs. lacs) Particulars Before tax Tax expense/ (benefit) Net of tax (0.32) (0.09) (0.23) - Investment in equity instruments measured at fair value (799.87) 27.70 (827.57) -Revaluation surplus on freehold land - - - - Share of other comprehensive income of joint ventures and associate (6.00) - (6.00) (806.19) 27.61(833.80) Particulars Before tax Tax expense/ (benefit) Net of tax 6.96 1.94 5.02 - Investment in equity instruments measured at fair value 1,255.83 41.47 1,214.35 -Revaluation surplus on freehold land 18,938.52 (4,214.96) 23,153.48 - Share of other comprehensive income of joint ventures and associate 13.33 - 13.33 20,214.64(4,171.55) 24,386.18 iii) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate (Amount in Rs. lacs) March 31, 2023 March 31,2022 Profit before tax 3,140.96 2,754.03 873.82 766.17 Tax effect of: Expenses not deductible for income tax purpose 17.30 0.09 Interest u/s 10(15) on Central Government Stock-PF Securities (2.29) (5.74) (16.89) 36.12 Effect of tax on Ind-As adjustments (70.31) - Earlier year tax adjustment - (0.12) Adjustment of Set of brought forwards losses (0.31) - Others (465.11) (560.79) 336.22 235.73 Origination and reversal of temporary differences March 31, 2022 - Net actuarial gains/(losses) on defined benefit plans March 31, 2023 - Net actuarial gains/(losses) on defined benefit plans (Amount in Rs. lacs) Tax rate difference At the effective income tax rate of 10.47% (March 31, 2022: 8.56%) Tax using the Company’s domestic tax rate of 27.82% (March 31, 2022 - 27.82%)		(Amount in Rs. lacs)
		March 31, 2023 March 31,2022
		269.32 235.85 66.89 (0.12)
		336.21 235.73 39.24 (44.82)
		39.24 (44.82)
		375.45 190.91
		(Amount in Rs. lacs) March 31, 2023
	Before tax Tax expense/ (benefit) Net of tax
	(0.32) (0.09) (0.23) (799.87) 27.70 (827.57) - - - (6.00) - (6.00)
	(806.19) 27.61(833.80)
	March 31, 2022
	Before tax Tax expense/ (benefit) Net of tax
	6.96 1.94 5.02 1,255.83 41.47 1,214.35 18,938.52 (4,214.96) 23,153.48 13.33 - 13.33
	20,214.64(4,171.55) 24,386.18
		3,140.96 2,754.03 873.82 766.17 17.30 0.09 (2.29) (5.74) (16.89) 36.12 (70.31) - - (0.12) (0.31) - (465.11) (560.79)
		336.22 235.73

126

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

39. Fair Value Measurements

(a) Financial instruments by category

(b) Fair value hierarchy

The Company determines the fair value of its financial instruments on the basis of the following hierarchy:

Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of quoted price for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques based on observable market data.

There are no transfers between different fair value hierarchy levels in 2022-23 and 2021-22.

There are no transfers between different fair value hierarchy levels in 2022-23 and 2021-22.	There are no transfers between different fair value hierarchy levels in 2022-23 and 2021-22.	There are no transfers between different fair value hierarchy levels in 2022-23 and 2021-22.	There are no transfers between different fair value hierarchy levels in 2022-23 and 2021-22.
(Amount in Rs. lacs)
Liabilities which are measured at amortised cost for which fair values are disclosed	Particulars	March 31, 2023	March 31, 2022
Financial liabilities:
Securitydeposits received	Carrying value	38.31	22.81
Securitydeposits received	Fair Value	28.16	17.49

The fair values for security deposits received from employees and security deposit for utilities were calculated based on cash flows discounted using a current fixed deposit rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Financial Assets at fair value through profit or loss	Particulars	March 31, 2023	March 31, 2022
Financial assets:
Investment in Mutual Funds	Carrying value	6,405.86	7,892.08
Investment in Mutual Funds	Fair Value	6,611.79	7,974.43
(Amount in Rs. lacs)
Financial Assets at fair value through other comprehensive income	Particulars	March 31, 2023	March 31, 2022
Financial assets:
Investment In EquityInstruments	Carrying value	87.86	87.86
Investment In EquityInstruments	Fair Value	5,223.06	6,725.96
Investment In Preference shares	Carrying value	-	2,183.12
Investment In Preference shares	Fair Value	-	2,183.12

127

Modi Rubber Limited Notes to Consolidated Financial Statements for the year ended March 31, 2023

40.1 Financial Risk Management

Credit risk

Investments

Trade receivables

Credit risk arising from trade receivables is managed in accordance with the Management control and approval procedure. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for future uncertainties etc.

Other financial assets

(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Particulars	March 31, 2023	March 31,2022
Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL)
Longterm securitydeposits	16.34	16.23
Other longterm financial assets	4,609.40	4,514.98
Cash and cash equivalents	797.36	230.67
Other bank balances	68.12	-
Short term loans & advances	97.77	273.20
Other short term financial assets	49.29	18.99
	5,638.29	5,054.07

Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL)
Trade receivables	1,807.84	29.85
	1,807.84	29.85

Based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of any asset as the amount are insignificant.

Ageing analysis of trade receivables

The ageing analysis of the trade receivables is as below:

(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Ageing as at March 31, 2023	Not due	0-90 days past due	91-180 days past due	181-270 days past due	271-360 days past due	360-720 days past due	More than 720 days past due	Total
Gross carrying amount	-	1,661.67	73.95	53.93	8.57	27.34	577.04	2,402.51

Ageing as at March 31, 2022	Not due	0-90 days past due	91-180 days past due	181-270 days past due	271-360 days past due	360-720 days past due	More than 720 days past due	Total
Gross carrying amount	-	16.81	7.90	5.98	0.15	44.97	425.79	501.60

128

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

40.1 Financial Risk Management (contd…)

Liquidity risk

The following are the contractual maturities of non-derivative financial liabilities, based on contractual cash flows:

March 31, 2023	March 31, 2023	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Contractual maturities of financial liabilities	Fair Value	Contractual cash flows
		Less than one year	Beyond one year	Total
Non-derivative financial liabilities
Borrowings	1,967.02	1,219.99	747.02	1,967.02
Securitydeposits received	41.10	28.16	12.94	41.10
Lease liability	149.59	21.58	128.01	149.59
Employee related liabilities	278.28	30.48	247.80	278.28
Tradepayables	887.42	887.42	-	887.42
	3,323.40	2,187.63	1,135.77	3,323.40

March 31, 2022	March 31, 2022	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
Contractual maturities of financial liabilities	Fair Value	Contractual cash flows
		Less than one year	Beyond one year	Total
Non-derivative financial liabilities
Borrowings	327.65	77.65	250.00	327.65
Securitydeposits received	17.49	-	17.49	17.49
Lease liability	132.01	17.16	114.85	132.01
Employee related liabilities	247.80	247.80	-	247.80
Tradepayables	778.40	778.40	-	778.40
	1,503.35	1,121.01	382.35	1,503.35

129

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

40.1 Financial Risk Management (contd…)

Market risk

Interest Rate Risk

Price Risk

Foreign Currency Risk

41. Capital Management

42. Corporate Social Responsibility ('CSR')

Gross amount required to be spent by the Group during the year Rs. Nil (March 31, 2022: Rs. Nil

130

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

43. Leases

Particulars Property Leases with Fixed Payments Right of Use Assets Opening balance Additions during the year Amortization during the year Closing balance Lease Obligation Opening balance Additions during the year Interest accured during the year Payment of lease liabilities Closing balance Current Non-Current	Lease Variable	Fixed Payments % Sensitivity
	2 -	100% -
	2 -	100% -
		(Amount in Rs. lacs) Leasehold Buildings
		March 31, 2023 March 31, 2022
		112.53 126.88 19.47 - (8.68) (14.35)
		123.32 112.53
		(Amount in Rs. lacs) Leasehold Buildings
		March 31, 2023 March 31, 2022
		132.01 142.08 20.29 - 14.44 16.20 (17.16) (26.26)
		149.59 132.01
		21.58 17.16 128.01 114.85

Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)	Lease liabilities (Amount in Rs. lacs)
Pariculars	Upto 1 Year	1-5 years	Above 5 Years	Total	Carrying Vaue
As at March 31, 2023	23.16	98.14	144.60	265.90	149.59
As at March 31,2022	17.16	77.14	164.76	259.06	132.01

131

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

44 Consolidated Related Parties Disclosures in accordance with Indian Accounting Standard (Ind AS) 24 of The Institute of Chartered Accountants

A) Subsidiary Companies % Holdings i) Modistone Ltd. (in liquidation) 55.32 Official Liquidator has taken possession of the Company w.e.f. 25.07.2002- the date of appointment of Official Liquidator by Bombay High Court
ii) Superior Investment (India) Ltd. 100 iii) Spin Investment (India) Ltd 100 B) Step-Down Subsidiary Companies Uniglobe Mod Travels Pvt. Ltd
A) Joint Ventures in the Group Gujarat Guardian Ltd. 21.24 Asahi Modi Materials Pvt. Ltd. 49.00 Modi Marco Aldany Pvt Ltd 50.00
B) Associate in the Group Vinura Beverages Pvt. Ltd. (An Associate of a wholly owned subsidiary)
C) Key Management Personnel: Mr. Alok Kumar Modi-Managing Director Miss Piya Modi-Whole Time Director Mr. Sanjeev Kumar Bajpai-Company Secretary Mr. Kamal Gupta-Chief Financial Officer (CFO) Vinay Kumar Modi-Non Executive Chairman Kanwaljit Singh Bains-Non Executive Independent Director Amrit Kapur-Non Executive Independent Director Umesh Khaitan-Non Executive Independent Director
D) Relatives of Key Management Personnel Mr. Vinay Kumar Modi (Father of Mr. Alok Kumar Modi) Mrs. Chander Bala Modi (Mother of Mr. Alok Kumar Modi) Mrs. Archana Singhania (Sister of Mr. Alok Kumar Modi) Mrs. Ritika Modi (Wife of Mr. Alok Kumar Modi)
E) Enterprises in which Key Management Personnel and relatives of Key Management Personnel has significant influence Leaf Investment Pvt. Ltd.
Mod Fashions and Securities Pvt. Ltd Uniglobe Travel (South Asia) Pvt. Ltd Maple Bear Education Pvt. Ltd. M/s Khaitan & Khaitan

F) Transaction with Related Parties

The following transactions was carried out with related parties in the ordinary course of business:

		(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)	(Amount in Rs. lacs)
S.No.	Particulars	Joint Ventures		Associate		Enterprise under significant influence of Key Management Personnel or their relatives		Key Management Personnel		Relatives of Key Management Personnel		Total
		March 31, 2023	31-Mar-22	March 31, 2023	31-Mar-22	March 31, 2023	31-Mar-22	March 31, 2023	31-Mar-22	March 31, 2023	31-Mar-22	March 31, 2023	31-Mar-22

A)	Expenses recovered
	Asahi Modi Materials Pvt. Ltd.	-	11.66	-	-	-	-	-	-	-	-	-	11.66
	Sub-Total	-	11.66	-	-	-	-	-	-	-	-	-	11.66

132

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

Notes	to financial statements for the year ended March 31, 2023

B)	Expenses incurred
	Asahi Modi Materials Pvt. Ltd.	14.76	-	-	-	-	-	-	-	-	-	14.76	-
	Mod Fashions and Securities Pvt. Ltd.	-	-	-	-	15.96	15.96	-	-	-	-	15.96	15.96
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	0.02	-					0.02	-
	M/s Khaitan & Khaitan	-	-	-	-	52.48	19.75	-	-	-	-	52.48	19.75
	Mr. VinayKumar Modi	-	-	-	-	-	1.37	-	-	-	-	-	1.37
	Sub-Total	14.76	-	-	-	68.46	37.08	-	-	-	-	83.22	37.08

C)	Rent Income
	Maple Bear Education Pvt. Ltd.	-	-	-	-	55.68	-	-	-	-	-	55.68	-
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	9.00	10.80	-	-	-	-	9.00	10.80
	Sub-Total	-	-	-	-	64.68	10.80	-	-	-	-	64.68	10.80

D)	Management Service Charges Income
	Asahi Modi Materials Pvt. Ltd.	67.51	50.15	-	-	-	-	-	-	-	-	67.51	50.15
	Sub-Total	67.51	50.15	-	-	-	-	-	-	-	-	67.51	50.15

E)	Dividend received
	Gujarat Guardian Ltd	2,434.55	2,501.25	-	-	-	-	-	-	-	-	2,434.55	2,501.25

F)	Loan and advancesgiven
	Modi Marco AldanyPvt Ltd	1.00	19.90	-	-	-	-	-	-	-	-	1.00	19.90

G)	Interest income
	Modi Marco AldanyPvt Ltd	-	14.99	-	-	-	-	-	-	-	-	-	14.99
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	3.06	3.42	-	-	-	-	3.06	3.42
		-	14.99	-	-	3.06	3.42	-	-	-	-	3.06	18.41
H)	Other income
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	0.01	-	-	-	-	-	0.01	-
		-	-	-	-	0.01	-	-	-	-	-	0.01	-
I)	Remunerationpaid	-	-	-	-	-	-	153.17	143.14	-	-	153.17	143.14

J)	Sitting fee-Directors	-	-	-	-	-	-	1.80	2.25	-	-	1.80	2.25

K)	Receivable at theyear end
	Asahi Modi Materials Pvt. Ltd.	28.91	25.98	-	-	-	-	-	-	-	-	28.91	25.98
	Modi Marco AldanyPvt Ltd	11.99	11.99	-	-	-	-	-	-	-	-	11.99	11.99
	Vinura Beverages Pvt. Ltd.	-	-	6.27	6.27	-	-	-	-	-	-	6.27	6.27
	Maple Bear Education Pvt. Ltd.	-	-	-	-	93.78	33.65	-	-	-	-	93.78	33.65
	Uniglobe Travel(South Asia)Pvt. Ltd.	-	-	-	-	370.29	298.07	-	-	-	-	370.29	298.07
	Mr. Alok Kumar Modi	-	-	-	-	-	-	-	0.05	-	-	-	0.05
	Miss Piya Modi	-	-	-	-	-	-	0.00	0.00	-	-	0.00	0.00
	M/s Khaitan & Khaitan	-	-	-	-	-	1.75	-	-	-	-	-	1.75
	Sub-Total	40.90	37.97	6.27	6.27	464.07	333.46	0.00	0.05	-	-	511.24	377.75

L)	Payable at theyear end
	Mod Fashions and Securities Pvt. Ltd.	-	-	-	-	4.31	4.31	-	-	-	-	4.31	4.31
	M/s Khaitan & Khaitan	-	-	-	-	1.73	-	-	-	-	-	1.73	-
	Miss Piya Modi	-	-	-	-	-	-	0.12	0.26	-	-	0.12	0.26
	Sub-Total	-	-	-	-	6.04	4.31	0.12	0.26	-	-	6.16	4.57

133

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

45 Gratuity and other post-employment benefit plans

Contribution for Employees Benefit:

Defined Contribution Plans

Provident Fund State Defined Contribution Plans - Employees Pension Scheme 1995

i Provident Fund

The Employees of the Group receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the Group make monthly contributions at specified percentage of the employee’s salary to the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

The Group has recognized the following amounts in the Statement of Profit and Loss for the year ended March 31, 2023

The Group has recognized the following amounts in the Statement of Profit and Loss for the year ended March 31, 2023	The Group has recognized the following amounts in the Statement of Profit and Loss for the year ended March 31, 2023	The Group has recognized the following amounts in the Statement of Profit and Loss for the year ended March 31, 2023
(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Contribution to Provident Fund Contribution to Employee Pension	17.67 1.96	16.935 2.325

ii Defined benefit plan( Gratuity)

The Group provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme of Gratuity Fund Trust, administered and managed by the Independent Board of Trustees. The sections of the Group first makes the payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employee’s salary and the tenure of employment and then gets the reimbursement from it. Vesting occurs upon completion of five years of service. The present value of Defined Benefit Obligation is calculated annually by an independent actuary using the projected unit credit method.

	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Funded Status of the Plan Present value of unfunded obligations Present value of funded obligations Fair value of plan assets Net Liability (Asset)	(211.66) - 248.26	204.21 - 180.22
	36.60 (23.99)
	(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Statement of Profit and Loss Current service cost Past service cost and loss/(gain) on curtailments and settlement Net interest cost Total included in'Employee Benefit Expense'	13.78 - 1.37	7.20 - (1.48)
	15.15	5.72
Expenses deducted from the fund	-	-
Total Charge to P&L	15.15	5.72

Other Comprehensive Income Due to Change in financial assumptions Due to Change in demographic assumption Due to experience adjustments Return on plan assets excluding amounts included in interest income	(7.44) - 9.53 (1.04)	(2.79) - (5.33) 1.16
Amounts recognized in Other Comprehensive Income	1.05	(6.96)
	(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Reconciliation of Defined Benefit Obligation Opening Defined Benefit Obligation Transfer in/(out) obligation Current service cost Interest cost Actuarial loss / (gain) due to change in financial assumptions Actuarial loss / (gain) due to change in demographic assumptions Actuarial loss / (gain) due to experience assumptions Past Service Cost Benefits Paid Benefits Payable	- 180.22 67.18 13.04 - (14.26) - (7.44) 9.53	3.29 - 212.57 7.20 10.88 (2.79) - (45.60) - (5.33)
Closing Defined Benefit Obligation	248.26	180.22

134

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

C D E F	(Amount in Rs. Lacs) Reconciliation of Plan Assets Opening Value of Plan Assets Transfer in/(out) plan assets - 3.29 Interest Income Return on plan assets excluding amounts included in interest income Contributions by employer Benefits paid Closing Value of Plan Assets Principle Actuarial Assumptions Discount Rate Salary Growth Rate Withdrawal Rates Rate of return on Plan Assets (Amount in Rs. Lacs) Expected cash flows based on past service liability The following payments are maturity profile of Defined Benefit Obligation: 2023 2024 2025 2026 2027 2028-2032 (Amount in Rs. Lacs) Sensitivity to key assumptions Discount rate varied by 0.5% 0.50% -0.50% Salary growth rate varied by 0.5% 0.50% -0.50% Withdrawal rate varied by 0.5% W.R * 110% W.R90% Particulars Amount of DBO Change in DBO(%) 244.88 251.89 250.93 245.73 189.55 188.79 1.10% 1.00% 20.40% 4.77 4.78 6.64 33.30 -0.73% 0.78% 0.39% -0.40% 0.16% -0.17% 27.26 78.61 46.40% 6.4% p.a. 6.4% p.a. Particulars Cashflows Distribution(%) 1.20% 1.30% 12.36 11.67 (1.16) 1.04 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 6.40% 7.00% 6.40% 7.00% - (45.60) 3.74 (9.01) 211.66 204.21 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 204.21 235.32 5% at younger ages reducing to 1% at older ages* 5% at younger ages reducing to 1% at older ages	(Amount in Rs. Lacs) Reconciliation of Plan Assets Opening Value of Plan Assets Transfer in/(out) plan assets - 3.29 Interest Income Return on plan assets excluding amounts included in interest income Contributions by employer Benefits paid Closing Value of Plan Assets Principle Actuarial Assumptions Discount Rate Salary Growth Rate Withdrawal Rates Rate of return on Plan Assets (Amount in Rs. Lacs) Expected cash flows based on past service liability The following payments are maturity profile of Defined Benefit Obligation: 2023 2024 2025 2026 2027 2028-2032 (Amount in Rs. Lacs) Sensitivity to key assumptions Discount rate varied by 0.5% 0.50% -0.50% Salary growth rate varied by 0.5% 0.50% -0.50% Withdrawal rate varied by 0.5% W.R * 110% W.R90% Particulars Amount of DBO Change in DBO(%) 244.88 251.89 250.93 245.73 189.55 188.79 1.10% 1.00% 20.40% 4.77 4.78 6.64 33.30 -0.73% 0.78% 0.39% -0.40% 0.16% -0.17% 27.26 78.61 46.40% 6.4% p.a. 6.4% p.a. Particulars Cashflows Distribution(%) 1.20% 1.30% 12.36 11.67 (1.16) 1.04 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 6.40% 7.00% 6.40% 7.00% - (45.60) 3.74 (9.01) 211.66 204.21 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 204.21 235.32 5% at younger ages reducing to 1% at older ages* 5% at younger ages reducing to 1% at older ages	(Amount in Rs. Lacs) Reconciliation of Plan Assets Opening Value of Plan Assets Transfer in/(out) plan assets - 3.29 Interest Income Return on plan assets excluding amounts included in interest income Contributions by employer Benefits paid Closing Value of Plan Assets Principle Actuarial Assumptions Discount Rate Salary Growth Rate Withdrawal Rates Rate of return on Plan Assets (Amount in Rs. Lacs) Expected cash flows based on past service liability The following payments are maturity profile of Defined Benefit Obligation: 2023 2024 2025 2026 2027 2028-2032 (Amount in Rs. Lacs) Sensitivity to key assumptions Discount rate varied by 0.5% 0.50% -0.50% Salary growth rate varied by 0.5% 0.50% -0.50% Withdrawal rate varied by 0.5% W.R * 110% W.R90% Particulars Amount of DBO Change in DBO(%) 244.88 251.89 250.93 245.73 189.55 188.79 1.10% 1.00% 20.40% 4.77 4.78 6.64 33.30 -0.73% 0.78% 0.39% -0.40% 0.16% -0.17% 27.26 78.61 46.40% 6.4% p.a. 6.4% p.a. Particulars Cashflows Distribution(%) 1.20% 1.30% 12.36 11.67 (1.16) 1.04 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 6.40% 7.00% 6.40% 7.00% - (45.60) 3.74 (9.01) 211.66 204.21 Particulars For the year ended March 31, 2023 For the year ended March 31, 2022 204.21 235.32 5% at younger ages reducing to 1% at older ages* 5% at younger ages reducing to 1% at older ages
	Particulars	Amount of DBO	Change in DBO(%)
	Sensitivity to key assumptions Discount rate varied by 0.5% 0.50% -0.50% Salary growth rate varied by 0.5% 0.50% -0.50% Withdrawal rate varied by 0.5% W.R * 110% W.R*90%	244.88 251.89 250.93 245.73 189.55 188.79	-0.73% 0.78% 0.39% -0.40% 0.16% -0.17%

A description of methods used for sensitivity analysis and Limitations:

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

(Amount in Rs. Lacs)	(Amount in Rs. Lacs)	(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Expenditure in foreign currency:- Travelling Expenses	163.24	202.15
(Amount in Rs. Lacs)
Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Contingent Liabilities Capital Commitments Guarantees/Bonds (Unconfirmed) Excise /Customs /DGFT Matters Unsecured Creditors Workers and Employees Income Tax Act Others	1,298.24 3,136.02 536.27 3,387.13 198.74 1,300.00 269.11	261.03 1,300.00 907.82 531.87 6,454.53 1,290.00 3,136.02
TOTAL	10,125.51	13,881.27

135

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

48 Post sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008, the Company had given full effect of the scheme from cut off date in the books of accounts assuming that the relief and concessions as given to the company in the scheme would be accepted by all the concerned parties/creditors.
49 BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning net worth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/parties have not accepted terms of settlement and relief & concessions as provided in SS08. The Company has filed a status report on the unimplemented portion of the Rehabilitation Scheme as at September 30th, 2016 with BIFR on 20/10/2016. Further Government of India (GOI) vide its Gazette notification dated 25/11/2016 repealed SICA w.e.f 01/12/2016 by passing the Sick Industrial Companies (Special provisions) Repeal Act, 2003. All proceedings pending in BIFR/ AAIFR would now stand abated and a time period of 180 days have been given to all applicants to approach National Company Law Tribunal (NCLT) and to get appropriate relief under Insolvency and Bankruptcy Code, 2016. Further all schemes sanctioned by BIFR are saved and would continue to be enforceable by NCLT.
50 Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon’ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, Company shall take necessary steps as required.
51 The company has made investments of Rs.1,079.35 lacs and has given loans and advances of Rs.145.49 lacs (inclusive of interest) (March 31, 2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:

The company has made investments of Rs.1,079.35 lacs and has given loans and advances of Rs.145.49 lacs (inclusive of interest) (March 31, 2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:	The company has made investments of Rs.1,079.35 lacs and has given loans and advances of Rs.145.49 lacs (inclusive of interest) (March 31, 2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:	The company has made investments of Rs.1,079.35 lacs and has given loans and advances of Rs.145.49 lacs (inclusive of interest) (March 31, 2022: Investments Rs. 1,079.35 lacs and loans and advances of Rs.157.99 lacs respectively) aggregating to Rs.1,224.84 lacs (March 31, 2022: Rs. 1,237.34 lacs) (hereinafter together referred as "Exposure") in "Modi Marco Aldany Private Limited" and is joint venture of the Company. During the years, the business of the joint venture has significantly impacted due to impact of COVID-19 resulting in cash losses and shutting down of multiple operational stores. Given effect to same and in view of the prudence concept, the company has provided provision for impairment in the value of investment as below:
(Amount in Rs. Lacs)
Particulars	31-Mar-23	31-Mar-22
Loans and advances(includinginterest) Invesments in 9,977,187 (March 31, 2022: 9,977,187) equity shares of Rs. 10 each (3,327,187 shares Fully Paid up & 6,650,000 Partly Paid upto Rs 9.934 each) Invesments in 860,000 (March 31,2022 : 860,000) - 0.1% Non Cumulative Optionally Convertible Preference Shares of Modi Marco Aldany Pvt Ltd. of Rs.10 each	145.49 993.35 86.00	157.99 993.35 86.00
TOTAL 1,224.84 1,237.34

52 In accordance with IND AS 108 - Operating Segment used to present the segment information are identified on the basis of informal report used by the Company to allocate resource to the segment and assess their performance. The Board of Directors of the Company is collectively Chief Operating Decision Maker (CODM).The Company is engaged in Renting of immovable property which in the context of Ind AS 108 “Operating Segment" is considered as the only segment. The Company’s activities are restricted within India and hence no separate geographical segment disclosure is considered necessary.
53 The subsidiary company "Spin Investment Limited" has made investments of Rs.285.86 lacs and has given loans and advances of Rs. 4.66 lacs (inclusive of interest) aggregating to Rs.290.52 lacs (hereinafter together referred as "Exposure" in its associate company " Vinuara Beverages Private Limited" of which net worth has been substantially eroded. In view of the the prudence concept, the company has created a provision amounting to Rs 290.52 lacs against outstanding exposure as on year ended 31 March 2023.
54 The subsidiary company "Spin Investment Limited" has given loans and advances of Rs. 47.90 lacs (inclusive of interest) (hereinafter together referred as "Exposure" in its group company " Uniglobe Travel (South Asia) Private Limited" of which net worth has been substantially eroded. The management has made an assessment that considering the long term and strategic nature of investment, impairment in the value of investments is considered temporary and accordingly there is no need to make impairment/provision against the same at this stage.
55 Balances of certain payables for expenses, employees related payables and loans & advance are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

56 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with struck off companies.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries), or b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).
(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

136

Modi Rubber Limited Notes to financial statements for the year ended March 31, 2023

57 Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act 2013, read with rule 5 of Companies (Accounts) Rules, 2014 in the prescribed Form AOC-1 relating to subsidiary companies

i As required under Schedule III to the Companies Act, 2013:-

Name of the Enterprise	Net Assets i.e. total assets minus total liabilities As at March 31, 2023	Net Assets i.e. total assets minus total liabilities As at March 31, 2023	Share in total comprehensive income year ended March 31, 2023	Share in total comprehensive income year ended March 31, 2023
	As % of Consolidated net assets	Amount in Rs. Lacs	As % of Consolidated profit or loss	Amount in Rs. Lacs
A. Parent
Modi Rubber Limited	47.41%	30,272.08	-118.90%	(2,296.86)
B. Subsidiaries
Spin Investment India Limited	15.99%	10,207.60	-3.98%	(76.91)
Superior Investment (India) Limited	1.14%	726.41	-1.48%	(28.67)
Uniglobe Mod Travels Pvt Ltd	0.00%	1.16	0.06%	1.16
Total B	17.13%	10,935.17	-5.41%	(104.42)
C. Joint Ventures
Asahi Modi Material Pvt. Ltd	2.91%	1,856.26	7.34%	141.80
Gujarat Guardian Ltd.	32.55%	20,781.49	216.97%	4,191.21
Modi Marco Aldany Pvt Ltd	0.00%	-	0.00%	-
Total C	35.46%	22,637.75	224.31%	4,333.01
D. Associate
Vinura Beverages Private Limited	0.00%	-	0.00%	-
IQ Modi Power Pvt Ltd	0.00%	0.47	0.00%	(0.03)
Total D	0.00%	0.47	0.00%	(0.03)
Total (A+B+C+D)	100.00%	63,845.46	100.00%	1,931.71

ii Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act 2013, read with rule 5 of Companies (Accounts) Rules, 2014 in the prescribed Form AOC-1 relating to subsidiary companies

(Amount in Rs. Lacs)


PART "A": SUBSIDIARIES (Amount in Rs. Lacs)
S.No. Particulars
1	Serial Number	1	2	3
2	Name of Subsidiary	Spin Investment (India) Limited	Superior Investment (India) Limited	Uniglobe Mod Travels Pvt Ltd
3 4 5 6 7 8 9 10 11 12 13 14 15	Reporting period for the subsidiary concerned, if different from the holding company's reporting period Total assets Profit/ (loss) before taxation % of shareholding Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries Share capital Reserves & surplus Total liabilities Investments Turnover Provision for taxation Profit/ (Loss) after taxation Proposed dividend	N.A. 10,238.94 116.06 100% N.A. 29.92 10,207.60 (61.02) 9,234.50 345.86 14.78 101.28 Nil	N.A. N.A. 29.92 726.41 757.61 1.28 733.15 138.31 100% (7.09) 30.93 (38.02) Nil	1,527.04 416.52 3.40 413.12 Nil 89.89% N.A. N.A. 3905.74 (3,777.10) 3,040.44 2,911.80 -

PART "B": Joint Venture & Associates

PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates	PART "B": Joint Venture & Associates
(Amount in Rs. Lacs)
S.No	Particulars
1	Name of Associates/ Joint Ventures	Asahi Modi Materials Private Limited	Gujarat Guardian Limited	Modi Marco Aldany Private Limited	Vinura Beverages Private Limited	IQ Modi Power Pvt Ltd
2	Latest Balance Sheet date (Management Approved)	31/03/2023	31/03/2023	31/03/2023	31/03/2023	31/03/2023
3 i) ii) iii) 4	No. of shares (in numbers) Amount of investment in Associates/ Joint Venture Extent of Holding (%) Description of how there is significant influence Shares of Associate/ Joint Ventures held by the company at the year end	14,700,000 1,470.00 49% Due to Joint control and % of share capital/ voting power	33,350,000 3,335.00 21.24% Due to Joint control and % of share capital/ voting power	3,327,187 332.72 50% Due to Joint control and % of share capital/ voting power	299,900 29.99 49.98% Due to significant influence and % of share capital/ voting power	299,900 29.99 50.00% Due to Joint control and % of share capital/ ~~voting power~~
5	Reason why the associate/ joint venture is not consolidated	NA	NA	NA	NA	NA
6	Net worth attributable to shareholding as per latest audited Balance Sheet	1,662.06	20,781.49	(35.99)	(109.14)	0.37
7 i) ii)	Profit/ (Loss) for the year Considered in Consolidation Not Considered in Consolidation	141.80 431.19	4,191.21 15,539.64	- (33.69)	- 0.87	(0.03) -

137

Modi Rubber Limited

Notes to financial statements for the year ended March 31, 2023

58. Financial Ratios	58. Financial Ratios	58. Financial Ratios	58. Financial Ratios	58. Financial Ratios	58. Financial Ratios	58. Financial Ratios	58. Financial Ratios
S.No	Particulars	Numerator	Denominator	Mar-23	Mar-22	Variance	Reason for variance
1	(a) Current Ratio	Current assets	Current laibilities	2.70	3.99	-32%	Due to increase in trade receivables.
2	(b) Debt-Equity Ratio	Borrowings+Interest Accrued	Total Equiity	0.03	0.01	482%	Due to increase in borrowings.
3	(c) Debt Service Coverage Ratio	Earning for Debt Service = Net Profit after taxes + Non-cash operating expenses like depreciation and other amortizations + Interest + other adjustments like loss on sale of Fixed assets etc.	Debt service = Interest & Lease Payments + Principal Repayments	39.05	45.69	-15%
4	(d) Return on Equity Ratio	Net Profits after taxes	Average Shareholder’s Equity	0.05	0.06	-12%
5	(e) Trade Receivables turnover ratio	Net Credit Sales	Avg. Accounts Receivable	0.58	9.42	-94%	Due to increase in trade receivables as compare to last year.
6	(f) Net capital turnover ratio	Net Sales	Working Capital	0.08	0.07	13%
7	(g) Net profit ratio	Net profit	Net Sales	5.19	5.00	4%
8	(h) Return on Capital employed	Earning before interest and taxes	Capital Employed	0.05	0.04	9%

138

Modi Rubber Limited

Notes to Consolidated Financial Statements for the year ended March 31, 2023

59 Interest in joint venture and associates

The Group has a 49% interest in Asahi Modi Materials Private Limited, a joint venture involved in the manufacture of Resin Coated Sand in India.

The Group has a 21.24% interest in Gujarat Guardian Limited, a joint venture involved in the production of float glass and mirror.

The Group has a 50% interest in Modi Marco Aldany Private Limited, a joint venture involved in the operating of salon outlets (company owned and franchisee owned outlets), training academy and sale of beauty products. The Group has a 50% interest in IQ Modi Power Private Limited, an associate company.

The Group has a 49.98% interest in Vinura Beverages Private Limited, an associate involved in the trading of beverages.

The Group’s interest in the above joint ventures and associate is accounted for using the equity method in the consolidated financial statements. Summarised financial information of the joint ventures and associate (based on its Ind AS financial statements) and reconciliation with the carrying amount of the investment in consolidated financial statements are set out below:

Summarised balance sheet:

Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:	Summarised balance sheet:
(Amount in Rs. Lacs)
Particulars	Asahi Modi Materials Private Limited		Gujarat Guardian Limited		Modi Marco Aldany Private Limited*		IQ Modi Power Pvt Ltd		Vinura Beverages Private Limited
	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22
Non-current assets	2,320.53	2,361.13	63,108.87	69,080.36	64.69	102.90	-	-	51.83	49.28
Current assets	2,151.77	1,693.22	51,935.45	37,756.75	70.70	82.82	0.99	1.00	0.17	0.66
Non-current liabilities	(20.48)	(17.91)	(6,788.27)	(6,473.57)	(3.57)	(3.56)	-	-	(6.50)	(6.50)
Current liabilities	(1,059.86)	(933.87)	(10,423.67)	(10,800.97)	(203.80)	(250.21)	(0.25)	(0.20)	(7.99)	(7.65)
Equity	3,391.96	3,102.57	97,832.38	89,562.57	(71.98)	(68.05)	0.74	0.80	37.51	35.79
Share application money pending allotment	-	-	-	-	-	-			-	-
Investment in non cumulative optionally convertible preference shares on which control has not been acquired.	-	-	-	-	-	(86.00)			(255.87)	(255.87)
Investment in partly paid shares on which control has not been acquired.	-	-	-	-	-	(660.63)			-	-
Net assets excluding share application money pending allotment	3,391.96	3,102.57	97,832.38	89,562.57	(71.98)	(814.68)	0.74	0.80	(218.36)	(220.08)

Proportion of the Group’s ownership	49.00%	49.00%	21.24%	21.24%	50.00%	50.00%	50.00%	50.00%	49.98%	49.98%

Group's share in net assets	1,662.06	1,520.26	20,781.49	19,024.82	(35.99)	(407.34)	0.37	0.40	(109.14)	(110.00)
Goodwill	194.20	194.20	-	-	29.49	29.49	0.10	-	29.99	29.99
Carrying amount of the investment	1,856.26	1,714.46	20,781.49	19,024.82	-	-	0.47	0.40	-	-

139

Modi Rubber Limited

Notes to Consolidated Financial Statements for the year ended March 31, 2023

Summarised statement of profit and loss:

Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:	Summarised statement of profit and loss:
(Amount in Rs. Lacs)
Particulars	Asahi Modi Materials Private Limited		Gujarat Guardian Limited		Modi Marco Aldany Private Limited*		IQ Modi Power Pvt Ltd		Vinura Beverages Private Limited
	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22	31-Mar-23	31-Mar-22

Revenue	5,471.17	4,224.31	102,683.09	85,984.73	54.73	33.83	-	-	-	-
Other income	32.26	27.72	5,063.91	3,020.62	1.13	17.73	-	-	2.56	2.48
Excise duty on sales	-	-	-	-	-	-	-	-	-	-
Cost of raw materials and components consumed	(2,619.44)	(2,015.75)	(30,749.86)	(26,244.93)	-	-	-	-	-	-
Purchase of stock in trade	-	-	(1,839.57)	(111.22)	(0.47)	(0.03)	-	-	-	-
Changes in inventories of stock in trade/finished goods	(0.98)	(16.65)	1,293.83	740.07	(0.15)	(6.68)	-	-	-	-
Depreciation & amortization	(269.99)	(320.97)	(3,646.40)	(3,455.09)	(25.47)	(34.88)	-	-	-	-
Finance cost	(23.67)	(14.58)	(206.27)	(222.61)	-	(15.06)	-	-	(0.59)	(0.59)
Employee benefit	(357.97)	(296.14)	(7,620.19)	(6,851.58)	(26.28)	(32.52)	-	-	-	-
Other expense	(1,825.56)	(1,568.17)	(37,856.01)	(28,725.17)	(37.19)	(42.18)	(0.06)	(0.20)	(0.22)	(0.29)

Profit before tax	405.81	19.77	27,122.52	24,134.83	(33.69)	(79.79)	(0.06)	(0.20)	1.75	1.60
Income tax expense	117.12	25.42	(7,361.82)	(5,555.81)	-	-			-	-
Profit for the year	288.69	(5.65)	19,760.70	18,579.02	(33.69)	(79.79)	(0.06)	(0.20)	1.75	1.60
Other comprehensive income	0.70	0.36	(29.85)	61.90	-	-	-	-	-	-
Total comprehensive income for the year	289.39	(5.29)	19,730.85	18,640.91	(33.69)	(79.79)	(0.06)	(0.20)	1.75	1.60
Group’s share of profit for the year	141.46	(2.77)	4,197.55	3,946.54	(16.85)	(39.90)	(0.03)	(0.10)	0.87	0.80
Group’s share of other comprehensive income	0.34	0.18	(6.34)	13.15	-	-	-	-	-	-

140

Modi Rubber Limited

Notes to Consolidated Financial Statements for the year ended March 31, 2023

Contingent liabilities and commitments in respect of joint ventures & associates

Contingent liabilities and commitments in respect of joint ventures & associates
	(Amount in Rs. lacs)
Particulars	31-Mar-23	31-Mar-22
Claims made by workmen Disputed Income Tax Matters Sales Tax Disputed Excise Matters Demand raised by GIDC towards Infrastructure fund Pending Labour case before High Court Others Guarantee given by bank on behalf of the Company	28.09	28.09
	1,290.13	1,290.13
	3.59	3.59
	244.63	244.63
	62.83	62.83
	Not Ascertainable	Not Ascertainable
	-	0.00
	12.75	12.75
Capital Commitments-Estimated value of contracts in capital account remaining to be executed & not provided for Tangible Assets	-	0.00

The accompanying notes 1 to 59 form an integral part of these financial statements.

For and on behalf of the Board of Directors of Modi Rubber Limited

As per our report of even date

For P N A M & Co. LLP

Chartered Accountants LLPIN: ABA-8514 ICAI FRN: 001092N/N500395

Alok Kumar Modi S.K. Bajpai Managing Director Head- Legal & Company Secretary DIN: 00174374 ACS: 10110

Abhishek Nahta

Partner Membership No.: 513559

Piya Modi Kamal Gupta Director Chief Financial Officer DIN: 03623417

Place: New Delhi Date : 26/05/2023

Amrit Kapur Director

AI assistant

Modi Rubber Ltd. — AGM Information 2023

62352_rns_2023-09-05_c9462fdb-693e-488d-a8b6-f7974cdb88c4.pdf

HE COMPANY T BOARD OF

BOARD OF DIRECTORS

REGISTERED OFFICE

HEAD OFFICE

WORKS

STATUTORY AUDITORS

SECRETARIAL AUDITORS

INTERNAL AUDITORS

DIRECTORS’ REPORT

IMPLEMENTATION STATUS OF BIFR SCHEME

CONSOLIDATED FINANCIAL STATEMENT

DIRECTORS’RESPONSIBILITY STATEMENT

INTERNAL FINANCIAL CONTROLS

CORPORATE SOCIAL RESPONSIBILITY (CSR)

VIGIL MECHANISM

COMPLIANCE WITH SECRETARIAL STANDARDS

STATUTORY DISCLOSURES

We further report that:-

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

SECRETARIAL AUDIT REPORT

Management Discussion and Analysis Report

CORPORATE GOVERNANCE REPORT

REPORT ON CORPORATE GOVERNANCE

BOARD OF DIRECTORS

(B) Other provisions as to Board and Its Committees:-

(C) Code of Conduct

1. AUDIT COMMITTEE

The brief terms of reference of the Audit Committee are as follows:

b) Meetings, Attendance and Composition of the Audit Committee

2. NOMINATION AND REMUNERATION COMMITTEE

(a) Brief description of the Terms of Reference of the Committee

(b) Policy for Nomination and remuneration

(c) Remuneration to Directors

Criteria of making payments to non-executive Directors

Remuneration to Directors

Details of total fees paid to Statutory Auditors

3. STAKEHOLDERS’ RELATIONSHIP COMMITTEE

(a) Brief description of the Terms of Reference of the Committee

(b) Composition and terms and reference of committee

(b) Name and designation of Compliance Officer

(c) Investors’ Grievances Redressal

4. Corporate Social Responsibility (“CSR”) Committee a) Composition

b) Terms of reference of CSR Committee

Meetings of Independent Director:

GENERAL BODY MEETINGS

DISCLOSURES

Modi Rubber Limited

GENERAL INFORMATION

Distribution of Shareholding

Details of material/wos subsidiaries

DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT

CERTIFICATE ON COMPLIANCE WITH THE REGULATIONS OF CORPORATE GOVERNANCE

CEO AND CFO CERTIFICATION

P N A M & CO. LLP

INDEPENDENT AUDITORS’ REPORT

To THE MEMBERS OF MODI RUBBER LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

Basis for Opinion

P N A M & CO. LLP

Key Audit Matters

Information Other than the Financial Statements and Auditor’s Report Thereon

P N A M & CO. LLP

Other Matter

Management’s Responsibility for the Standalone Financial Statements

Auditors’ Responsibility for the Audit of the Standalone Financial Statements

P N A M & CO. LLP

P N A M & CO. LLP

Report on Other Legal and Regulatory Requirements

P N A M & CO. LLP

P N A M & CO. LLP

For P N A M & Co. LLP

Abhishek Nahta

P N A M & CO. LLP

ANNEXURE “A” TO INDEPENDENT AUDITORS’ REPORT

Management’s Responsibility for Internal Financial Controls

Auditors’ Responsibility

Modi Rubber Ltd. AGM Information 2023