Provisions of Gratuity has applied to the company from the current year. All the provisions required to be made for the applicability of gratuity as required under Para 11 of Ind AS-19 (Employee Benefits) has been complied with.

p) Segment Reporting

The company is primarily engaged in the business of Corrugated Plastic Sheets, which constitute a single reportable segment in accordance with Ind AS 108 - “Segment Reporting”.

q) Events Occurring after the Balance Sheet Date

On 07th March, 2024, the Board of Directors of the Company approved to issue, offer and allot up to 6,70,700 Equity shares on preferential basis having face value of INR 10.00 each at an issue price of INR 120.05 per equity share [including premium of INR 110.05 per equity share] aggregating to INR 805.18 Lakhs. Further, the Board of Directors of the Company also approved to issue, offer and allot up to 36,00,000 (Thirty-Six Lakh only) Fully Convertible Equity Warrants, each convertible into or exchangeable for, one fully paid up equity share of the company having face value of INR 10.00 each at an issue price of INR 120.05 [including premium of INR 110.05 per equity share] aggregating to INR 4321.80 Lakhs and the same was approved by the members in EOGM on 06th April, 2024. The allotment is subject to subscription received.

r) Change in Accounting Policies

There have been no other changes in the accounting policy, in terms of Para 14 to 21 of Ind AS - 8 (Accounting Policies, Change in Accounting Estimates and Errors).

s) Prior Period Items

During the year we had not found any prior period item. But there was a short provision for earlier years of which now given effect in profit & loss A/c.

Assets taken on lease where the company acquires substantially the entire risks and rewards incidental to ownership are classified as finance leases. The amount recorded is the lesser of the present value of minimum lease rental and other incidental expenses during t he lease term or the fair value of the assets taken on lease. The rental obligations, net of interest charges, are reflected as secured loans. Leases that do not transfer substantially all the risks and rewards of ownership are classified as operating leases and recorded as expense as and when the payments are made over the lease term. Any advance payments of operating leases is recognized as an expense over the economic useful life of the asset under lease.

The assets taken on lease by the Company includes leasehold land, and Staff Quarters taken from GIDC on future lease payments. The total of future minimum lease payments under non cancellable operating leases for each of the following periods are as shown below:

The basic earnings per share (“EPS”) is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax for the year and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. The company presents basic and diluted EPS from continuing and discontinuing operations separately.

The Company has given Corporate Guarantee to its Wholly Owned Subsidiary Company i.e. M/s Shish Polylam Pvt. Ltd. against Term Loan having closing balance as on F.Y. 2023-24 of Rs. 154.55 Lakhs.

The Company has given Corporate Guarantee against term loan of M/s Interstar Polyfab Private Limited which is a Manufacturing Company doing backward integration work of Shish Industries Limited and having closing balance of term loan as on F.Y. 2023-24 of Rs. 812.30 Lakhs.

The company has pending litigation in GST department for FY 2021 -22 amounting to INR 27.31 Lakh.

Shish Industries Limited continues to deploy a well-articulated risk management framework. This is based upon a three tiered approach encompassing (i) enterprise risks, (ii) process risks, and (iii) compliance risks.

i. Enterprise risk: The Company continue to evaluate the risk and also ensures that the mitigation processes are in place.

ii. Process risk management involves assurances by the Company's Management regarding the effectiveness of business and financial controls and processes in all key activities across the various business processes.

iii. Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations, with a comprehensive reporting process that cascades upwards from the accountable business line executives to Shish Industries Limited's Audit Committee and then on to the Board of Directors.

The outcomes of business review meetings conducted by management regarding processes and their compliance, as well as observations of the Audit Committee and the Board of Directors are continuously incorporated to capture new risks and update the existing ones. All three dimensions of Shish Industries Limited's Risk Management framework are reviewed annually for their relevance and modifications, as required. The risk management process, including its tracking and adherence, is substantially enabled for greater consistency and better reporting capabilities.

Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net

asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

D. There are no Intangible assets under development as on March 31,2024.

E. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

F. The Company is not declared willful defaulter by any bank or financial institution or other lender.

G. The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H. On 07th March, 2024, the Board of Directors of the Company approved to issue, offer and allot upto 6,70,700 Equity shares on preferential basis having face value of INR 10 each at an issue price of INR 120.05 per equity share [including premium of INR 110.05 per equity share] aggregating to INR 805.18 Lakhs. Further, the Board of Directors of the Company also approved to issue, offer and allot up to 36,00,000 (Thirty Six Lakh only) Fully Convertible Equity Warrants, each convertible into or exchangable for, one fully paid up equity share of the company having face value of Rs. 10 each at an issue price of INR 120.05 [including premium of INR 110.05 per equity share] aggregating to I NR 4321.80 Lakhs and the same was approved by the members in EOGM on 06th April, 2024. The allotment is subject to subscription received.

I. No charges or satisfaction of charges are yet to be registered with Registrar of Companies beyond the statutory period.

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

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

L. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds)

to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

M. The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

N. No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1 961. There are no such previously unrecorded income or related assets.

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

P. The Company does not have any Immovable Properties which is not held in its name.

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

As Per Our attached report of even date For, Shish Industries Limited

For K P C M & Co.

Chartered Accountants

Firm Reg. No. 0117390W Satishkumar Maniya Rameshbhai Kakadiya

Chairman & Managing Director Whole-Time Director

DIN:02529191 DIN: 07740518

CA Kanaiya Asawa Partner

Membership No.: 103498 Nishit Lakhani Suman Jat

UDIN: 24103498BKFIGK9099 Chief Financial Officer Company Secretary

Place: Surat Date: April 18, 2024 Place: Surat Date: April 18, 2024