(xviii) Accounting for provisions, contingent
liabilities and contingent assets

Provisions are recognized, when there is a present
legal or constructive obligation as a result of past
events, where it is probable that there will be
outflow of resources to settle the obligation and
when a reliable estimate of the amount of the
obligation can be made. Where a provision is
measured using the cash flows estimated to settle
the present obligation, its carrying amount is the
present value of those cash flows. Where the effect
is material, the provision is discounted to net
present value using an appropriate current market-
based pre-tax discount rate and the unwinding of
the discount is included in finance costs.

Contingent liabilities are recognized only when
there is a possible obligation arising from past
events, due to occurrence or non-occurrence of one
or more uncertain future events, not wholly within
the control of the Company, or where any present
obligation cannot be measured in terms of future
outflow of resources, or where a reliable estimate of
the obligation cannot be made. Obligations are
assessed on an ongoing basis and only those having
a largely probable outflow of resources are provided
for.

Contingent assets are not disclosed in the financial
statements unless an inflow of economic benefits is
probable.

(xix) Earnings per share

Basic Earnings per share is calculated by dividing
the net profit / (loss) for the period attributable to
the equity shareholders by the weighted average
number of equity shares outstanding during the
period. The Company did not have any potentially
dilutive securities in any of the year presented.

(i) Secured Loan From bank is raised against security of the assets which are as follows.

(a) Term Loan - Secured against 1st Charge on the Property Secured at MIDC Mahad, Personal guarantee of the
directors and Corporate guarantee of the company.

(b) Cash Credit - Secured against Hypothecation of Stock & Debtors upto 90 days.

(c) Overdraft Against Govt supply bills: Hypothecations of receivables including supply bills receivables.

(d) Letter of Credit: Documets under Letter of Credit and Goods under L/C.

(e) Collateral Security: 1st charge on Block Assets of the company immovable and movable present and future also.

(f) Negative Lien on the Property situated at MIDC Dombivli

(g) Stock and Book debts statement submitted to the Bank on monthly basis are in agreement with Books of Accounts.

\

Note 35 : Earnings per share (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting
profit impact of dilutive potential equity shares, if any) by the aggregate of weighted average number of Equity shares
outstanding during the year and the weighted average number of Equity shares that would be issued on conversion of all
the dilutive potential Equity shares into Equity shares.

Note 36 : Financial instruments - Fair values and risk management

(a) 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 audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc
reviews of risk management controls and procedures, the results of which are reported the audit committee

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party 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.

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.

(b) Financial assets and liabilities

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their
levels as on 31st March 2025 are presented below.

Note 42 Other Disclosures:

a) The Company do not have any Benami property, where any proceeding has been initiated or 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 have not traded or invested in Crypto currency or Virtual Currency during the financial year.

d) The Company have 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.

e) The Company have 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.

f) The Company do 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).

g) 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.

h) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

Reason where variance is more than 25%:

* The reason for variance in Return of Equity is due to increase in Sales and Net profit after tax in current year as compared to
last year .

** The reason for variance in Trade Receivables turnover ratio is due to increase in Sales and decrease in Average Trade
receivables of current year as compared to last year.

*** The reason for variance in Trade Payables turnover ratio is due to increase in Purchases and decrease in Average Trade
payables of current year as compared to last year.

**** The reason for variance in Return on Capital employed is due to increase in Sales and net profit as compared to last year.
***** Variance in Return on Investments is due to increase in Interest income from Average Investments held during the
current year as compared to last year.

Note 44 : The Company has presented segment information in the consolidated financial statements which are presented in
the same financial report. Accordingly, in terms of Ind AS 108 ‘Operating Segments’, no disclosures related to segments are
presented in this standalone financial statements

Note 45 : There are no significant subsequent events that would require adjustments or disclosures in the financial
statements as on the balance sheet date

Note 46 : Figures for the previous years have been regrouped / restated wherever necessary to conform to current
year’s presentation

As per our report of Even Date For POLO QUEEN INDUSTRIAL AND FINTECH LIMITED

For M/s. N.K. Jalan & Co.

Chartered Accountants

^{Firm Reg No : 104019W} UDIT P. SANGHAI PRABHAS SANGHAI

WHOLE TIME DIRECTOR DIRECTOR

^{CA N}.^K. ^Jalan (Din - 06725206) (DIN - 00302947)

PARTNER

Mem. No. 011878

UMESH AGARWALLA

Place : Mumbai WHOLE TIME DIRECTOR

^Date : May 28, 2025_(DIN - 00231799)