k. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date. If the effect of the time value
of money is material, provisions are discounted to reflect its present value using a current pre¬
tax rate that reflects the current market assessments of the time value of money and the risks
specific to the obligation. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

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. Contingent Assets are neither recoginsed nor disclosed in the standalone financial
statements.

l. REVENUE RECOGNITION

Revenue from sale of goods is recognised when all the significant risks and rewards of
ownership in the goods are transferred to the buyer as per the terms of the contract, there
is no continuing managerial involvement with the goods and the amount of revenue can be
measured reliably. The Company retains no effective control of the goods transferred to a
degree usually associated with ownership and no significant uncertainty exists regarding the
amount of the consideration that will be derived from the sale of goods. Revenue is measured
at fair value of the consideration received or receivable, after deduction of any trade discounts,
volume rebates and any taxes or duties collected on behalf of the government which are levied
on sales such as GST etc. No element of financing is deemed present as the Sales made to
customers are made largely with same credit terms to all the customers and depending on the
specific terms agreed between customers.

Export Sales are booked at the rate on the date of transaction and the resultant Gain/ Loss on
realization or on translation is accounted as "Foreign Exchange Rate Fluctuation" and is dealt
with in the statement of Profit and Loss Account.

Export Entitlements are recognised when the right to receive the entitlements is established
and there are no conditions involved where the reversal of entitlements is required. When the
export entitlements is received the same is setoff with the Export Entitlements receivable.

Interest income is recognized using the effective interest rate (EIR) method when it is
probable that economic benefits will flow to the Company and the amount of income can
be measured reliably.

Other Income is recognised based on agreements/ arrangements with the customers, if

any at the reporting date and the amount of income can be measured reliably.

Slump Sale is defined as the transfer of one or more undertakings as a result of the sale

for a lump sum consideration without values being assigned to the individual assets and
liabilities.

m. EXPENDITURE

Expenses are accounted and recognised in Financials on accrual basis i.e. as and when
incurred and earned.

n. EMPLOYEE BENEFITS

i) SHORT TERM EMPLOYEE BENEFITS

Short-term employee benefits are employee benefits (other than termination benefits)
that are expected to be settled wholly before twelve months such as salaries, bonuses,
performance incentives, etc., after the end of the annual reporting period in which
the employees render the related service. The Company recognises above short term
employee benefits directly to Statement of Profit and Loss as an expense in the year in
which services are rendered.

ii) DEFINED CONTRIBUTION PLANS

Contributions to defined contribution schemes such as employees' state insurance,
labour welfare fund, superannuation scheme, employee pension scheme etc. are
charged as an expense based on the amount of contribution required to be made as and
when services are rendered by the employees. Company's provident fund contribution,
in respect of certain employees, is made to a government administered fund and
charged as an expense to the Statement of Profit and Loss. The above benefits are
classified as Defined Contribution Schemes as the Company has no further defined
obligations beyond the monthly contributions.

iii) DEFINED BENEFIT PLANS

The Company also provides for retirement/post-retirement benefits in the form
of gratuity, pensions (in respect of certain employees). The Company's liability is
determined on the basis of an actuarial valuation using the projected unit credit method
as at the balance sheet date. For defined benefit plans, the amount recognised as
'Employee benefit expenses' in the Statement of Profit and Loss is the cost of accruing
employee benefits promised to employees over the year and the costs of individual
events such as past/future service benefit changes and settlements (such events
are recognised immediately in the Statement of Profit and Loss). Any differences
between the interest income/ loss on plan assets and the return actually achieved, and
any changes in the liabilities over the year due to changes in actuarial assumptions
or experience adjustments within the plans, are recognised immediately in 'Other
comprehensive income' and subsequently not reclassified to the Statement of Profit
and Loss. For the purpose of presentation of defined benefit plans, the allocation
between the short term and long-term provisions have been made as determined by
an actuary. Obligations under other long-term benefits are classified as short term
provision, if the Company does not have an unconditional right to defer the settlement
of the obligation beyond 12 months from the reporting date.

o. IMPAIRMENT OF FINANCIAL ASSETS

The Company applies the expected credit loss model for recognising impairment loss on
financial assets that are measured at amortised cost, trade receivables and other contractual
rights to receive cash or other financial asset. The amount of expected credit losses is
updated at each reporting date to reflect changes in credit risk since initial recognition
of the respective financial instrument. The Company always recognises lifetime expected
credit losses (ECL) for trade receivables. The Company recognises lifetime ECL when there
has been a significant increase in credit risk since initial recognition. However, if the credit
risk on the financial instrument has not increased significantly since initial recognition, the
Company measures the loss allowance for that financial instrument at an amount equal to
12-month ECL.

p. TAXES ON INCOME

Income tax expense comprises current and deferred tax and is recognized in the Statement
of Profit and Loss except to the extent that it relates to a business combination or to an item
which is recognized directly in equity or in other comprehensive income.

CURRENT TAX

Current tax is the expected tax payable on the taxable income for the year using applicable tax
rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years. It is
measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right
to set off the recognised amounts and there is an intention to settle the asset and the liability
on a net basis.

DEFERRED TAX

Deferred tax is recognised in respect of temporary differences between the carrying amount
of assets and liabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes. A deferred tax liability is recognised based on the expected manner
of realisation or settlement of the carrying amount of assets and liabilities, using tax rates
enacted, or substantively enacted, by the end of the reporting period.

Deferred tax assets are recognised only to the extent that it is probable that future taxable
profitswillbeavailableagainstwhichthe assetcanbe utilised.Deferredtaxassetsarereviewed
at each reporting date and reduced to the extent that it is no longer probable that the related
tax benefit will be realised.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable
right to set off current tax assets against current tax liabilities; and the deferred tax assets and
the deferred tax liabilities relate to income taxes levied by the same taxation authority.

q. LEASES

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of
a lease adjusted with any option to extend or terminate the lease, if the use of such option
is reasonably certain. The Company makes an assessment on the expected lease term
on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any
options to extend or terminate the contract will be exercised. In evaluating the lease term,
the company considers factors such as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of the lease and the importance of the
underlying asset to company's operations taking into account the location of the underlying
asset and the availability of suitable alternatives. The lease term in future periods is
reassessed to ensure that the lease term reflects the current economic circumstances.

The Company's significant leasing arrangements are in respect of premises used for business,
are accounted as a short term lease. The aggregate lease rentals payable are charged as
rent in the statement of profit and loss and are recognised as an expense on a straight line

basis over the lease term (Refer note 41 of the Financials). These lease arrangements are
cancellable in nature and can be terminated by giving notice for a period, which vary from
one month to three months.

r. FOREIGN CURRENCY TRANSACTION

The financial statements are presented in INR, the functional currency of the Company. Items
included in the financial statements of the Company are recorded using the currency of the
primary economic environment in which the Company operates (the 'functional currency').
Foreign currency transactions are recorded at the rate of exchange prevailing on the date
of the transactions. At the year end, all the monetary assets and liabilities denominated in
foreign currency are restated at the closing exchange rates. Exchange differences resulting
from the settlement of such transactions and from the translation of such monetary assets
and liabilities at the year end are recognised in the Statement of Profit and Loss.

s. SEGMENT REPORTING

As per Ind AS 108- Operating Segments, the Chief Operating Decision Maker or as authorised
by the board evaluates the company's performance and allocates the resources based on
geographic segment. Segment revenue, segment expenses, segment assets and segment
liabilities have been identified to segments based on their relationship to the operating
activities of the segment. Revenue, expenses, assets and liabilities which are related to the
company as a whole and are not allocable to segments on a rationale basis have been included
under "unallocated revenue/ expenses/ assets/ liabilities" as applicable.

t. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit for the period attributable to
the equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period.

Diluted earningspershare arecomputed by dividingtheprofit aftertaxasadjustedfor dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered
for deriving basic earnings per share and the weighted average number of equity shares which
could have been issued on conversion of all dilutive potential equity shares.

e. Further, During the previous financial year 2024-25:

i) On 21st September 2024, Company has converted 1,28,000 fully convertible warrants into Equity Shares of the company being 100%
funds received from warrant holders.

ii) On 03rd January 2025, Company has converted 5,00,000 fully convertible warrants into Equity Shares of the company being 100%
funds received from warrant holders. This was from Mr. Ketan Patel, Chairman and Managing Director of the company also Promoter of
the Company.

iii) On 29th January 2025, Company has converted 2,75,000 fully convertible warrants into Equity Shares of the company being 100%
funds received from warrant holders.

In summary, Paid up share capital on 01st April 2024 was Rs. 14,11,36,750/- divided into 1,41,13,675 Equity shares of Rs. 10/- each. After
considering all the above-mentioned conversions of 9,03,000 warrants during the year, the paid up share capital of the Company on 31st
March 2025 stands at Rs. 15,01,66,750/- divided into 1,50,16,675 Equity shares of Rs. 10/- each.

The share capital structure as at 31 March 2026 remains unchanged from that as at 31 March 2025.

f. Rights, preferences and restrictions :

i. The company has only one class of shares referred to as equity shares having a par value of Rs 10/- each. Each holder of equity
shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. Final dividend, if any, proposed by the Board of Directors is recorded
as a liability on the date of the approval of the shareholders in the ensuing Annual General Meeting; in case of interim dividend, it is
recorded as a liability on the date of declaration by the Board of Directors of the Company.

Note 32 - Financial Risk Management

The Company's business activities are exposed to financial risks, namely Credit risk, Liquidity risk .The Company's Senior Management has
the overall responsibility for establishing and governing the Company's risk management framework. The Company has constituted a Risk
Management Committee, which is responsible for developing and monitoring the Company's risk management policies. The committee
reports regularly to the Board of Directors on its activities.

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 audit committee oversees how management monitors compliance with
the company's risk management. Policies and procedures, and reviews the adequacy of the risk management framework in relation to the
risks faced by the company.

The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.

i. 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, and arises principally from the Company's receivables from customers and investment securities. Credit risk is managed
through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. The Company establishes, if require an allowance for doubtful debts and impairment
that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company had created a Provision for Trade receivable of Rs. 22.73 lakhs till the F.Y 2022-23 against doubtful debts of Rs 87.08 lakhs.
During the year the doubtful debts has increased to Rs 236.66 lakhs and thus the company has decided to create additional provision for
doubtful debts of Rs 54.04 lakhs. Details of the same are as under:

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents

c.Risk to the Plan

i. Actuarial Risk

The plan is subject to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return
underlying plan assets. This may result in an increase in cost of providing these benefits to employee in future.

ii. Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If somr
such employees resign/ retire from the company there can be strain on the cash flows.

iii. Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actua
assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase
discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on
yields of the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at
valuation date.

iv. Legislative Risk

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulati
The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employe
This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediate!
the year when any such amendment is effective.

Reason for Variance where variance is more than 25%

* Current Ratio has declined in current year due to proportionately higher increase in current liabilities in comparison to
previous year. Despite the decline, the ratio remains above the standard benchmark, indicating satisfactory short-term
liquidity.

** The debt-equity ratio has increase in current year, driven by an increase in short term borrowings and also the Debt
Service Coverage Ratio has decreased in comparison to previous year; although there are no long-term borrowings,
short-term borrowings have increased during the year which were availed to meet the Company's funding and business
requirements.

*** Trade Receivables Turnover ratio has decreased in current year as compared to previous year on account of increase in
revenue from operations during the year and proportionately higher rise in the trade receivables.

# Net Capital Turnover Ratio has increased during the current year as compared to the previous year, primarily due to an
increase in Revenue from Operations. Further, the Net Capital (Current Assets - Current Liabilities) has also increased,
mainly on account of an increase in Current Financial Assets as compared to the previous year.

## Return on Capital Employed has increased as compared to previous year due to a significant improvement in
profitability at a higher rate than the increase in the Capital Employed during the year.

Note 44: Other Disclosures

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

(b) Transaction with struck off companies: The Company does not have any transactions with companies struck- off under
Section 248 of the Companies Act, 2013.

^(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 does not have 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).

^(h) 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.

⁽ⁱ⁾ The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post- employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified. The company will assess the impact of the Code
when it comes into effect and will record any related impact in the period the Code becomes effective.

^(j) The Company has not been declared wilful defaulter by any bank or financial institution or lender during the year.

^(k) There are no significant subsequent eventsthat would require adjustments or disclosures in the financial statementsas
on the balance sheet date.

^(l) The Company has used accounting software for maintaining its books of account, which has a feature of recording audit
trail (edit log) facility and the same has been operative throughout the year for all relevant transactions recorded in the
respective software. Further, the audit trail feature has not been tampered with and the audit trail has been preserved
by the Company as per statutory requirements.

Note 45

Figures for the previous years have been regrouped / restated wherever necessary to conform to current year's presentation.

Note 46: Approval of financial statements

The financial statements were approved for issue by the board of directors on 14th May, 2026.