అకౌంట్స్ గమనికలుSophia Traexpo Ltd.

Mar 31, 2025

c. Rights attached to equity shares

"The Company has only one class of equity shares having a face value of Rs.10 /- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. “"

2.19 Earnings per Share

“Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year."

“Diluted earnings per share is calculated by dividing the profit/(loss) attributable to equity holders by the weighted average number of equity shares outstanding during the period/year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares."

2.22 Segment Reporting:

The Company concluded that there is only one operating segment i.e., Paper and paper related Products. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.

The fair value of trade receivables, other financial assets, cash and cash equivalents, other bank balances, borrowings, trade payables and other financial liabilities approximate their carrying amount largely due to short-term nature of these instruments.

2.27 Financial risk management objectives and policies

"The Company''s financial liabilities comprise mainly of other payables. The Company''s financial assets comprise mainly of cash and cash equivalents, other balances with banks, trade receivables and other receivables.""

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. In performing its operating, investing and financing activities, the Company is exposed to the Credit risk and Liquidity risk.

i) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of Foreign Currency Exchange rates. Financial instruments affected by market risk include Trade Receivables

a. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s has no exposure to Interest Rate Risks.

b. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company''s has no exposure to Interest Rate Risks.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade Receivables

Credit risk with respect to trade receivables is limited, based on our historical experience of collecting receivables, supported by the level of default.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s top management in accordance with the Company''s policy.

iii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

2.28 Other Statutory Information

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

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

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

e. The Company has 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:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f. 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:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has not entered into any 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).

h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

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

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

k. There is no borrowings made by the company from banks and financial institutions during the current financial Year.

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Mar 31, 2024

1.15 Provisions, contingent liabilities and contingent assets

a. Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows at

a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. Where discounting is used, the increase in the provision due to
the passage of time is recognized as a finance cost.

b. Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

c. Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will
arise, the asset and related income are recognised in the period in which the change occurs.

1.16 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 measured reliably.

a) Income from Services:

When the outcome of a transaction involving the rendering of services can beestimated reliably,
revenue associated with the transaction shall be recognized by reference to the stage of
completion of the transaction at the end of the reporting period.

b) Sale of Goods:

Revenue from sale of goods is recognised when the goods are delivered and titles have
passed, at which time all the following are satisfied:

i) The company has transferred all significant risks and rewards of ownership of goods to
the buyer:

ii) The amount of revenue can be measured reliably: and

iii) It is probable that the economic benefits associated with the transaction will flow to the
Company

Other Income

(i) Miscellaneous Income

Miscellaneous Income includes Rounding off and other non operating income these are
recognized as and when accrued.

1.17 Borrowing Costs

Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection
with the borrowing of funds and interest relating to other financial liabilities. Borrowing costs also
include exchange differences to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing costs are expensed in the period in which they
occur.

1.18 Tax Expenses

Tax expense consists of current and deferred tax.

a. Income Tax

Income tax expense is recognized in the statement of profit and loss except to the extent that
it relates to items recognized directly in equity, in which case it is recognized in equity. Current
tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.

b. Deferred Tax

Deferred tax is recognised using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the laws that have
been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities
are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or
their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realized.

1.19 Earnings Per Share

The Company presents basic and diluted earnings per share ("EPS") data for its ordinary shares.
Basic earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.

1.20 Trade receivables

Trade receivables are initially recognized at fair value and subsequently measured at amortised
cost using effective interest method, less provision for impairment.

1.21 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of the financial year which are unpaid. The amounts are unsecured and are presented as
current liabilities unless payment is not due within twelve months after the reporting period. They
are recognized initially at fair value and subsequently measured at amortized cost using the effective
interest method.

1.22 Determination of fair values

The Company''s accounting policies and disclosures require the determination of fair value, for
certain financial and non-financial assets and liabilities. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable, further

information about the assumptions made in determining fair values is disclosed in the notes specific
to that asset or liability. A fair value measurement of a non-financial asset takes into account a
market participant''s ability to generate economic benefits by using the asset in its highest and best
use or by selling it to another market participant that would use the asset in its highest and best use.

a. Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange
of non-monetary assets, is measured at fair value on the acquisition date. For this purpose,
fair value is based on appraised market values and replacement cost.

b. Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired
in a business combination is based on the discounted estimated royalty payments that have
been avoided as a result of these brands, technology related intangibles, patents or trademarks
being owned (the "relief of royalty method"). The fair value of customer related, product related
and other intangibles acquired in a business combination has been determined using the
multi-period excess earnings method after deduction of a fair return on other assets that are
part of creating the related cash flows.

c. Inventories

The fair value of inventories acquired in a business combination is determined based on its
estimated selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on the effort required to complete and sell the
inventories.

d. Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference to their
quoted market price at the reporting date. For debt securities where quoted market prices are
not available, fair value is determined using pricing techniques such as discounted cash flow
analysis.

In respect of investments in mutual funds, the fair values represent net asset value as stated
by the issuers of these mutual fund units in the published statements. Net asset values represent
the price at which the issuer will issue further units in the mutual fund and the price at which
issuers will redeem such units from the investors.

Accordingly, such net asset values are analogous to fair market value with respect to these
investments, as transactions of these mutual funds are carried out at such prices between
investors and the issuers of these units of mutual funds.

e. Derivatives

The fair value of foreign exchange forward contracts is estimated by discounting the difference
between the contractual forward price and the current forward price for the residual maturity of
the contract using a risk-free interest rate (based on government bonds). The fair value of
foreign currency option and swap contracts and interest rate swap contracts is determined
based on the appropriate valuation techniques, considering the terms of the contract.

f. Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes is calculated based on the present
value of future principal and interest cash flows, discounted at the market rate of interest at

the reporting date. For finance leases the market rate of interest is determined by reference to
similar lease agreements. In respect of the Company''s borrowings that have floating rates of
interest, their fair value approximates carrying value.

Recent 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.
For the year ended March 31,2024, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

As per our report of even date For and on behalf of Board

For NSVR & ASSOCIATES LLP SOPHIA TRAEXPO LIMITED

Sd/-

R Srinivasu ^{Sd/- Sd/-}

P_art_ner Lakshmi Nekkanti Satya Sri Y. Mallikarjun Rao

M.No. 224033 Director Director

UDIN: 24224033BKCREA4864 DIN: 07223878 DIN: 00905266

Sd/-

Place: Hyderabad Medatati Raghavendra Rao

Date : 23-05-2024 Company Secretary

M.No.: A40758