3. Provisions and Contingent Liabilities
Provisions

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events, it is probable that there will be an outflow of resources and a reliable

estimate can be made of the amount of the obligation. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. Contingent liabilities are not provided for and are disclosed by way
of notes.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost in the statement of profit and loss

Contingent liabilities

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.

4. Impairment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to
which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the
Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if
there has been a change in the estimates used to determine the recoverable amount. The carrying amount of
the asset is increased to its revised recoverable amount, provided that this amount does not exceed the
carrying amount that would have been determined (net of any accumulated depreciation) had no impairment
loss been recognized for the asset in prior years.

1.3 Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs
directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as
intended by the management. The charge in respect of periodic depreciation is derived at after determining an
estimate of an asset's expected useful life and the expected residual value at the end of its life. The Company
depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The
estimated useful lives of assets are as follows:

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the
asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

1.4 Foreign Currency Transaction

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the
transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(c) Non-monetary foreign currency items are carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or translation is recognized in
the Profit & Loss Account.

1.5 Borrowing Costs

Borrowing costs (general and specific borrowings) that are 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 profit or loss in the period in which they are incurred.

1.6 Inventories

Inventories are stated at lower of cost and net realisable value.

Cost of raw materials and components, stores, spares, consumable tools and stock in trade comprises cost of purchases and
includes taxes and duties and is net of eligible credits under CENVAT / VAT / GST schemes. Cost of work-in-progress, work-
made components and finished

goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overheads, which is
allocated on a systematic basis. Cost of inventories also includes all other related costs incurred in bringing the inventories to
their present location and condition.

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 are determined as follows:

• Raw materials and components, stores, spares, consumable tools, stock in trade: on moving weighted average basis; and

• Work-in-progress, works-made components and finished goods: on moving weighted average basis plus appropriate share
of overheads.

Cost of surplus / obsolete / slow moving inventories are adequately provided for.

1.7 Investments

Long term investments, if any, are carried at cost less provision for diminution other than temporary, if any, in value
of such investments. Current investments are carried at lower of cost and fair value.

1.8 Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are
classified as operating lease. Lease payments under operating leases are recognized as an expense in the profit and
loss account

1.9 Employee Benefits

i) Short Term Employee Benefits:

Employee benefits payable fully within twelve months of rendering the service are classified as short term employee
benefit and are recognized in the period in which the employee renders the related service.

ii) Post-Employment Benefits ( Defined Contribution Plans)

Contributions to the Provident Fund, which is a defined contribution scheme, is recognized as an expense in the
profit and loss account in the period in which the contribution is due.

1.10 Segment Reporting

The company operates in the business segment of BOPP Tape & laminates, Corrugated sheets & boxes and Soap
Stiffener & Wrapper. As such the activities are defined as three different segments in accordance with the Accounting
Standard (AS-17 ) issued under Companies (Accounting Standards) Rules 2006, as amended up to date.

I. Long Term Loans from banks are secured by way of First Pari Passu Charge on all the fixed assets of the Company (both present &
future) and further secured by way of Second Pari Passu Charge on all the current assets of the Company.Further is secured by
personal guarantee of Directors, Sh. Dhruv Rakesh, Smt. Rekha Bansal and Sh. Rakesh Kumar.

II. Working Capital Limits are secured by way of First Pari Passu Charge on all the current assets of the Company and further secured by
way of Second Pari Passu Charge on all the fixed assets of the Company, personal guarantee of Directors, Sh. Dhruv Rakesh, Smt.
Rekha Bansal and Sh. Rakesh Kumar.

28. Current Liabilities

In the opinion of the management of the Company, there are no micro, small and medium Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at March 31,2025. Only parties for which relevant confirmations regarding their
micro, small and medium enterprise status had been received till balance sheet date have been classified as MSME. The information
as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of the information available with the Company and have been relied upon by the
statutory auditors of the Company.

30. Employees Retirement Benefits

Defined Contribution Plans: Contribution to Provident Fund and ESI of Rs. 16.79 Lacs in current year (Previous year Rs.

15.12 Lacs) is recognized as an expense and included in ‘Contribution to Provident and Other Funds' in the Statement of
Profit and Loss.

Defined Benefit Plans: The Company has not yet completed 5 years since its incorporation. However, the company has a gratuity
scheme whereby it contributes premium annually to Life Insurance Corporation of India to cover its statutory as well as contractual
liability to its employees. There is no provision required for gratuity as per actuarial valuation.

34. Income Tax

Current Tax

Provision for Income tax has been made as per the relevant rates and provisions of the Income-tax Act, 1961. The Company has
opted for Section 115BAA of Income Tax Act,1961 during the quarter.

Deferred Tax

In compliance with Accounting Standard (AS-22) relating to “Accounting on Taxes on Income” issued by the Institute of Chartered
Accountants of India, the Company has provided Deferred Tax Liability during the year aggregating to Rs. 8.62 Lacs (previous year
Deferred Tax Liability Rs.24.40 Lacs) and it has been recognized in the Statement of Profit & Loss. In accordance with clause 29 of
Accounting Standard (AS 22) Deferred Tax Assets and Deferred Tax Liabilities have been set off.

(b) Segment revenues and expenses

All segment revenues and expenses are directly attributable to the segments.

(c) Segment assets and liabilities:

Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related
assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been
disclosed as “Unallocable”.

(d) Inter-segment transfers:

Segment revenue, segment expenses and segment result include transfers between business segments and
between geographical segments. Such transfers are accounted for at competitive market prices charged to
unaffiliated customers for similar goods. Those transfers are eliminated in consolidation.

42. Depreciation

Depreciation on fixed assets is provided on straight-line method at the rates and in the manner prescribed in Schedule II of the
Companies Act, 2013 over their useful life.

43. Related Party Disclosures

Related party disclosures as required under Accounting Standard (AS-18) on “Related Party Disclosures” issued by the Institute
of Chartered Accountants of India are given below: -

a) Relationship

i) Subsidiary Companies/Firm

Satguru Engravures

ii) Joint Ventures and Associates

NIL

iii) Key Management Personnel (Managing Director/Whole-time directors)

Mr. Dhruv Rakesh

Mr. Rakesh Kumar

Mrs. Rekha Bansal

Ms. Indu Bala (Company's Secretary)

Mr. Baljeet Singh (CFO)

iv) Entities over which key management personnel/ their relatives are able to exercise control

Rakesh Kumar HUF

Sankyo Enterprises (Proprietorship of Mr. Dhruv Rakesh)

b) The following transactions were carried out with related parties in the ordinary course of business.

a) Subsidiary Firm

48. Previous year figures have been regrouped and re-arranged whenever considered necessary to make it compatible with

current year figures. The figures in financial statements have been reflected in nearest rupee Lacs.

For D.K. ENTERPRISES GLOBAL LIMITED AUDITORS' REPORT:

As per our separate report

of even date attached.

FOR DEEPAK JINDAL & Co.

CHARTERED ACCOUNTANTS

Firm Regn. No. 023023N

(Rakesh Kumar) (Dhruv Rakesh) (Onkar Singh)

Managing Director Director PARTNER

DIN:08374550 DIN :08374549 M.No. 514746

(Baljeet Singh) (Indu Bala)

Chief Financial Officer Company Secretary

PAN NO :DBFPS2743B PAN NO :CIBPB3073R

Place : Chandigarh

Date: 27/05/2025

UDIN: 25514746BMIPTH3425