M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized, if as a result of past event the company has present legal or constructive obligations
that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the
obligation. 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 risk specific to liability.

Contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of
the company.

Contingent assets are not recognized in the financial statements. However due disclosures are made in the
financial statements for the contingent assets, where economic benefits is probable and amount can be
estimated reliably.

N. FOREIGN CURRENCY TRANSACTIONS
Functional Currency

The Companies functional currency is Indian Rupees. The financial statement of the company is presented in
Indian rupees.

Transaction and translations

Transactions in currency other than Indian Rupees are recorded at the rate, as declared by the custom and
excise department / inter-bank rates, ruling on the date of transaction.

Unsettled Foreign currency denominated monetary assets and liabilities, as at the balance sheet date, are
translated using the exchange rates as at the balance sheet date. The gain or loss resulting from the translation
is recognized in the profit & loss. Non-monetary assets and non-monetary liabilities denominated in foreign
currency and measured at cost are translated at the exchange rate at the date of the transaction.

Non-monetary assets and non-monetary liabilities denominated in foreign currency and measured carried at fair
value are translated at the date when the fair value is determined.

Transaction gain or losses realized upon settlement of foreign currency transaction are included in determining
the net profit for the period in which transaction is settled.

Exchanges difference arises on settlement / translation of foreign currency monetary items relating to
acquisition of property, plant & equipment till the period they are put to use for commercial production, are
capitalized to the cost of assets acquired and provided for over the useful life of the property, plant &
equipment.

O. NON CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying
value and fair value less costs to sell.

Assets and disposal groups are classified as held for sale if their carrying value will be recovered through a sale
transaction rather than through continuing use. This condition is only met when the sale is highly probable and
the asset, or disposal group, is available for immediate sale in its present condition and is marketed for sale at a
price that is reasonable in relation to its current fair value. The Company must also be committed to the sale,
which should be expected to qualify for recognition as a completed sale within one year from the date of
classification.

Where a disposal group represents a separate major line of business or geographical area of operations, or is
part of a single coordinated plan to dispose of a separate major line of business or geographical area of
operations, then it is treated as a discontinued operation. The post-tax profit or loss of the discontinued
operation together with the gain or loss recognised on its disposal are disclosed as a single amount in the
statement of profit and loss, with all prior periods being presented on this basis.

P. BORROWING COST

Borrowings cost are interest and other costs incurred in connection with the borrowing of funds. Borrowing cost
directly attributable to the acquisition or construction of qualifying / eligible assets, intended for commercial
production are capitalized as part of the cost of such assets. All other borrowing costs are recognized as an
expense in the year in which they are incurred

Q. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

(B) Notes on Financial Statements

1. The Company has not established its Internal Financial Controls over financial reporting on criteria
based on or considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered

Accountants of India.

2. Goods and Services Tax (GST) Compliance:

The company is in Export sale of services without payment of GST. The Company exceeded the
GST registration threshold in June 2023 but registered only in January 2024. Consequently, Rs.
1,11,97,005/- of the Rs. 1,31,97,005/- turnover during this period was not reported due to non¬
registration. This oversight has resulted in the Company being unable to claim the input tax credit
refund for the GST portion on expenses for these services.

3. Professional Tax:

The Company has made provisions of Rs. 39,000 for professional tax in the current financial year
and Rs. 13,000 in the previous year, but these amounts remain unpaid as of 31st March 2024. This
non-payment could result in penalties and interest liabilities that have not been accounted for in the
financial statements.

4. Outstanding TDS Payable:

The Company has an outstanding TDS payable amounting to Rs. 42,592, which has been pending
for over three years. Furthermore, TDS on legal and professional fees amounting to Rs. 18,70,800
and rent amounting to Rs. 2,37,540 for the financial year 2023-2024, The interest and penalties
associated with these amounts have not been recorded.

5. Trade Payables and Receivables:

The Company has recorded trade payables, trade receivables, loans and advances, and unsecured
loans at their book value without obtaining confirmation and reconciliation. This could potentially
lead to inaccuracies in the financial statements.

6. Trade payable outstanding as on 31st March 2024 are not recorded under MSME; the management
has not received any confirmation from the same.

7. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at
their book value subject to confirmation and reconciliation.

10. No provision for retirement benefits has been made. The impact of the same on Profit &
Loss is not determined.

11. Previous year figures have been regrouped/rearranged wherever necessary.

For D M K H & CO.

Chartered Accountants (FRN: 0116886W)

RAHUL DILIP SHAH TUSHAR SUBODH SHAH

DIRECTOR DIN: DIN: 01545609 DIRECTOR & CFO(KMP)

DIN:01932018

DINESH GOPAL MUNDADA PARTNER
Membership No.: 122962
Place: PUNE

Date: 30/05/2024 TRUPTI M PANDIT _{TWINKLE UPADHYAYA}

UDIN:- 24122962BKBENY1053 DIRECTOR & CEO _{COMPANY SECRETARY}

DIN: 06422293