viii Provisions and Contingencies

Provisions :

Provision is recognised in the balance sheet when, the Company has a present obligation as a result of a
past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and
a reliable estimate of the amount of the obligation can be made

A disclosure by way of 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.

Contingencies :

Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are
recognised when it is probable that a liability has been incurred, and the amount can be estimated reliably.

ix Inventories

Inventories include traded goods. Inventories are valued at lower of cost and net realizable value. Cost is
computed on the weighted average basis and is net of taxes. Traded goods include cost of purchase (net
of refundable taxes and levies) and other costs incurred in bringing the inventories to their present location
and condition. Provision is made for cost of obsolescence and other anticipated losses, whenever considered
necessary.

x Employee benefits

Short-term employee benefits :

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees is recognized during the period.

Long-term employee benefits :

The Company’s gratuity obligation is a defined benefit plans. The Company’s net obligations in respect of
gratuity is calculated by estimating the amount of future benefit that employees have earned in return for
their service in the current and prior periods; that benefit is discounted to determine its present value.

The present values of the obligation under such defined benefit plans are determined based on actuarial

valuation carried out by an independent actuary at each balance sheet date using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

The obligations are measured at the present values of the estimated future cash flows. The discount rates
used for determining the present values of the obligations under defined benefit plans, are based on the
market yields on Government securities as at the balance sheet date.

Actuarial gains and losses are recognized immediately in the Profit and Loss account.

Compensated Absences :

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it
in future service periods or receive cash compensation on termination of employment. Since the compensated
absences do not fall due wholly within twelve months after the end of the period in which the employees
render the related service and are also not expected to be utilized wholly within twelve months after the end
of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation
for such compensated absences in the period in which the employee renders the services that increase this
entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected
unit credit method.

xi Foreign exchange transactions

Foreign exchange transactions are recorded into Indian rupees using the average of the opening and closing
spot rates on the dates of the respective transactions. Monetary assets and liabilities denominated in foreign
currencies as at the balance sheet date are translated into Indian rupees at the closing exchange rates on
that date. The resultant exchange differences are recognised in the Statement of Profit and Loss of the year.

xii Leases

Operating lease :

Assets acquired under leases other than finance leases are classified as operating leases. The total lease
rentals (including scheduled rental increases) in respect of an asset taken on operating lease are charged
to the Statement of Profit and Loss on a straight line basis over the lease term unless another systematic
basis is more representative of the time pattern of the benefit. Initial direct costs incurred specifically for an
operating lease are deferred and charged to the Statement of Profit and Loss over the lease term.

xiii Government Grants

Government grants are recognised after there is reasonable assurance that (i) the company will comply with
the conditions attached to them, and (ii) the grants will be received.

Government grants related to specific fixed assets are presented in the balance sheet by showing the grant
as a deduction from the gross value of the assets concerned in arriving at their book value.

Government grants related to revenue are recognised on a systematic basis in the profit and loss statement
over the periods necessary to match them with the related costs which they are intended to compensate.

Revenue grants are shown separately under ‘other income’ net of related expenses.

xiv Earnings per share

The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders
for the year by the weighted average number of equity shares outstanding during the reporting year. Diluted
earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year
by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year,
except where the results would be anti-dilutive.

xv General

Accounting policies not specifically referred to above are consistent with generally accepted accounting
principles.

29 Disclosure pursuant to Accounting Standard - 15 ‘Employee Benefits’

(i) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect
of qualifying employees towards Provident Fund, which is a defined contribution plan.The company has no
obligations other than to make the specified contributions.The contributions are charged to the Statement of
Profit and Loss as they accrue.The amount recognised as an expense towards contribution to Provident Fund
for the year aggregated to Rs 20.2

(ii) Long term benefits

Expenses towards compensated absences aggregating Rs -3.03 Lakhs (31 March 2024: Rs 5.16 Lakhs) is
recognised as an expense and included in “Employee benefits expense”.

(iii) Defined benefit plans
a. General description

Gratuity (Defined benefit plan)

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more
of services is eligible for a gratuity benefit on death or resignation or retirement at 15 days salary (last
drawn salary) for each completed year of service.

37 Ratio Analysis (Contd.....)

Notes:

a Due to increase in Trade receivable,trade payable and availment cash credit.

b Due to lower profit.

c Due to increase in Trade receivable.

d Due to decreased purchases and higher payables.

e Net Working Capital decreased due to increase in current assets.

f Due to decreased turnover and lower profit.

g Due to lower profit.

38 Compliance with number of layers of companies:

Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read

with Companies (Restriction in number of Layers) Rules, 2017.

39 Utilisation of borrowed funds and share premium:

(a) During the year, no funds have been advanced or loaned or invested (either from borrowd funds or share
premium or any other source or kind of funds) by the company to or in any other person or entities,
including foreign entities (intermediaries), with the understanding, wether recorded in writing or other ways,
that the intemediary shall, whether, directlt or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the company (ultimitae beneficiaries) or provide any guarantee,
security or the like on behalf of the ultimate beneficiaries.

(b) During the year, no funds have been received by the company from any persons or entities, including
foreign entities (funding parties) with the understanding, whether recorded in writing or otherwise, theat 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 (ultimitae beneficiaries) or provide any guarantee,
security or the like on behalf of the ultimate beneficiaries.

40 Figures of previous year have been recasted/restated where necessary.

See accompanying notes to the financial statements For and on behalf of the Board

As per our report of even date

For, K. C. Parikh & Associates Piyush Bhatt Pulkit Dhingra

Chartered Accountants Managing Director Whole-Time Director

Firm's Registration No.: 107550W DIN : 06461593 DIN : 07863075

CA. Chintan M. Doshi

Partner Darshil Shah Jaydeep Parekh

Membership No:118298 Company Secretary Chief Financial Officer

UDIN: 25118298BMHVBO8080 Membership No: A37483

Place: Ahmedabad Place: Ahmedabad

Date : 27th May 2025 Date : 27th May 2025