1.3.10 Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation
as a result of past events and it is probable that there will be an out flow of resources and a reliable estimate can be made of the
amount of obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, considering the risks and uncertainties surrounding the obligation. Where there are a
number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of
obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small. 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.

Provision for onerous contracts.

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic
benefits expected to be received under it. The Company at the end of every reporting period conducts the onerous contract test as
per the provisions of Ind AS 37 by comparing the remaining costs to be incurred under the contract with the related revenue of the
contract. Where the costs of a contract exceed the related revenue of the contract, the Company makes a provision for the difference.

Contingent Liabilities

Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the occurrence of one or more uncertain future
events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is
either not probable that an out flow of resources will be required to settle the same or a reliable estimate of the amount in this
respect cannot be made.

Contingent Assets

Contingent assets are not recognized but disclosed in the Financial Statements by way of notes to accounts when an inflow of
economic benefits is probable.

1.3.11 Employee Benefits

Short term Benefits

Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations
in the Balance Sheet.

Post-employment Benefits

Contribution to defined contribution plans such as Provident Fund, ESI, Compensated Absences, are not applicable to the company,
as the number of employees is lower than the prescribed limit under the respective Acts.

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the
Payment of Gratuity Act, 1972 as well as in accordance with the rules of the Company. The Gratuity Plan provides a lump sum
payment to vested employees at retirement, death, incapacitation, or termination of employment, of an amount based on the
respective employee's salary and the tenure of Employment. The liability or asset is recognized in the Balance Sheet in respect of
defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value
of plan assets, if any. The defined benefit obligation is calculated annually by the Actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash out flows by reference to
market yields at the end of the reporting period on the government bonds that have terms approximating to the terms of the related
obligation. The company do not have any plan assets for meeting the gratuity liability.

Re-measurement gain and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the
period they occur, directly in other comprehensive income net of taxes. They are included in retained earnings through OCI in the
statement of Changes in equity and in the balance sheet. Past-service costs are recognized immediately in Statement of Profit and
Loss.

Other long term employee benefits

The Company does not have a policy of leave encashment or other long-term employee benefits, as the number of employees is
below the statutory threshold requiring such benefits under applicable laws. Accordingly, no provision has been made in these
financial statements.

1.3.12 Revenue Recognition

Revenue Recognition

The Company recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to
recognise as below:

Step 1 : Identify the contract(s) with a customer
Step 2 : Identify the performance obligation in contract.

Step 3 : Determine the transaction price.

Step 4 : Allocate the transaction price to the performance obligations in the contract.

Step 5 : Recognise revenue when (or as) the entity satisfies a performance obligation.

Revenue from sale of goods

Revenue from sale of components is recognized at the point in time when control of the asset is transferred to the customer, generally
on delivery of the goods. The Company considers whether there are other promises in the contract that are separate for performance
obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price for the sale of
goods, the Company considers the effects of variable consideration, the existence of significant financing components, non-cash
consideration, and consideration payable to the customer (if any).

Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are
generally due for settlement within one year and therefore are all classified as current. Where the settlement is due after one year,
they are classified as non-current. Trade receivables are recognized initially at the amount of consideration that is unconditional
unless they contain significant financing components, when they are recognized at fair value. The Company holds the trade
receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost
using the effective interest method.

Contract Assets

A contract asset is the entity's right to consideration in exchange for goods or services that the entity has transferred to the customer.
A contract asset becomes a receivable when the entity's right to consideration is unconditional, which is the case when only the
passage of time is required before payment of the consideration is due. The impairment of contract assets is measured, presented,
and disclosed on the same basis as trade receivables.

Contract Liability

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or
an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognized when the payment is made, or the payment is due (whichever is earlier).
Contract liabilities are recognized as revenue when the Company performs under the contract.

Impairment

An impairment is recognized to the extent that the carrying amount of receivable or asset relating to contracts with customers (a) the
remaining amount of consideration that the Company expects to receive in exchange for the goods or services to which such asset
relates; less (b) the costs that relate directly to providing those goods or services and that have not been recognized as expenses.

Lease income

Lease income is recognized on a straight-line basis over the non-cancellable lease term, unless the there is another systematic basis
which is more representative than the time pattern of the lease. Revenue from lease rentals is disclosed net of indirect taxes, if any.
Sale of services

Revenues from fixed-price and fixed-time frame contracts, where the performance obligations are satisfied over time and where
there is no uncertainty as to measurement or collectability of consideration, are recognized to the extent the Company has rendered
the services, as per the contractual arrangements. Revenue is measured at the fair value of the consideration received or receivable
in exchange for transferring the promised services, taking into account contractually defined terms of payment, and excluding taxes
or duties collected on behalf of the government.

Other Income
Interest income

Interest is recognized using the effective interest rate (EIR) method, as income for the period in which it occurs. EIR is the rate that
exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument to the gross
carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the

Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example,
security deposit, prepayment etc.) but does not consider the expected credit losses.

Dividend Income

Dividends Revenue is recognized when the Company's right to receive the payment is established.

1.3.13 Borrowing Costs

Borrowing costs directly attributable to the acquisition and/or construction of a qualifying asset are capitalized during the period of
time that is necessary to complete and prepare the asset for its intended use or sale. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss
as incurred.

1.3.14 Taxes on Income

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the
income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income. Current
income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Standalone
Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are
measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax
rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets are
recognized for all deductible temporary differences only if it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

As there is substantial carry forward depreciation losses, and it is not probable that there will be taxable profits, in the near future,
hence, no current tax and deferred tax asset is recognized by the company.

1.3.15 Foreign Currency Transactions and Derivatives

Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing on the date of the
transactions. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates. Non¬
monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate
as at the date of transaction and are not re-translated. The gain or loss on decrease/ increase in reporting currency due to fluctuations
in foreign exchange rates, in case of monetary assets and liabilities in foreign currency, are recognized in the Statement of Profit and
Loss.

1.3.16 Segment Reporting

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker
(CODM), The Executive Chairman and Managing Director is designated as the CODM. However, the company during the period under
reporting have only one segment of lease income from the farm, and accordingly, Company has the single segment as per the
requirements of Ind AS 108 - Operating Segments. All assets are located in India and revenue of the Company is earned in India hence,
there is single geographic segment.

1.3.17 Earnings Per Share

Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted
average number of equity shares outstanding during the period. Diluted earnings per share adjusts the figures used in determination
of basic earnings per share to take into account the conversion of all dilutive potential equity shares. Dilutive potential equity shares
are deemed converted as at the beginning of the period unless issued at a later date.

1.3.18 Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial
statements are adjusted for such events before authorization for issue. Non- adjusting events are events that are indicative of
conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted but
disclosed. No adjusting or significant events have occurred between 31st March 2025 and the reporting date and the date of
authorization.

1.3.19 Cash Flow Statement

Cash flows are reported using the indirect method, whereby the profit/(loss) and tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash flows from operating, investing, and
financing activities of the Company are segregated based on available information.

For this purpose, cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances with
original maturity of three months or less from the date of acquisition, highly liquid investments that are readily convertible into
known amounts of cash and which are subject to insignificant risk of changes in value.

1.4. Significant management judgement in applying accounting policies and estimation uncertainty.

1.4.1. The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions about the recognition and measurement that affect the reported amounts of revenues, expenses, assets and liabilities
and the related disclosures.

1.4.2 Recognition of deferred tax assets - The Company uses judgement to determine the amount of deferred tax that can be
recognized, based upon the likely timing and the level of future taxable profits and business developments. It is not probable that
there will be taxable profits, in the near future, hence, no current tax and deferred tax asset is recognized by the company.

1.4.3 Evaluation of indicators for impairment of non- financial assets in assessing impairment, management has estimated economic
usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use
of an interest rate to discount them. Estimation of uncertainty relates to assumption about economically future operating cash flows
and the determination of a suitable discount rate.

1.4.4 Classification of leases - The Company entered into leasing arrangement for farm assets. The classification of the leasing
arrangement as operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of
leased asset at end of lease term.

1.4.5 Impairment of financial assets at each balance sheet date, based on historical default rates observed over expected life, the
management assesses the expected credit loss on outstanding financial assets. The company has been keeping it's surplus funds
temporarily in short-term deposits with the Banks, however, at the year end, all the deposits are uncashed and bank balances
considered under cash and cash equivalents which are subject to an insignificant risk of changes in value.

1.4.6 Provisions at each Balance Sheet date basis the management judgment, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be
different from this judgement. However, the company do not have any contingent liabilities as at the year end.

1.4.7 Useful life of depreciable assets -Management reviews it's estimates of the useful lives of Property Plant, and Equipment,
Investment Property and Intangible Assets at each reporting date, based on expected utility of the assets.

1.4.8 Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of underlying assumptions such as
standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses.

1.4.9 Fair value measurements -Management applies valuation techniques to determine the fair value of financial instruments where
active market quotes are not available. This involves developing estimates and assumptions consistent with how market participants
would price the instrument. Management based its assumptions on observable data as far as possible but where it is not available,
the management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in
an arm's length transaction on the reporting date.

1.5 Recent accounting pronouncements

The Ministry of Corporate Affairs ("MCA") notified new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules, as issued from time to time. The Company evaluated the following amendments for the first-time
during the current year which are effective from 1 April, 2024.

Ind AS 116 - Lease liability in a sale and leaseback

On 9 September 2024, MCA notified amendments to Ind AS 116 via Companies (Indian Accounting Standards)Second Amendment
Rules, 2024. The amendments require an entity to recognise lease liability including variable lease payments which are not linked to
index or a rate in a way it does not result in gain on Right of Use asset it retains. The Company has evaluated the amendment and there
is no impact on its standalone financial statements.

Introduction of Ind AS 117 - Insurance contracts

On 12 August 2024 MCA notified the introduction of Ind AS 117 - Insurance contracts via Companies (Indian Accounting Standards)
Amendment Rules, 2024. It is a comprehensive standard that prescribes, recognition, measurement and disclosure requirements, to
avoid diversities in practice for accounting insurance contracts and it applies to all companies i.e., to all "insurance contracts"
regardless of the issuer. However, Ind AS 117 is not applicable to the entities which are insurance companies registered with IRDAI.
The Company has evaluated the amendments and there is no impact on its standalone financial statements.

23. Deferred Taxes are recognized to the extent that it is probable that taxable profits will be available against, which the
deductible temporary differences and the carry forward of unabsorbed depreciation can be utilized. Considering the
accumulated unabsorbed depreciation losses carried forward, the Deferred Tax Assets aggregating to Rs.120.72 lakhs
(Previous Year Rs.121.25 Lakhs) is not recognised for. However, the same will be reassessed at the subsequent Balance
Sheet Date(s) and will be recognized to the extent that it has become probable profits will allow, the Deferred Tax Asset to
be recovered.

24. The company during the period under reporting have only one segment of lease income from the farm. The CODM is
responsible for allocating resources and assessing performance of the operating segment. The Company has monthly review and
forecasting procedure in place and CODM reviews the operations of the Company as a whole. Accordingly, Company has the
single segment as per the requirements of Ind AS 108 - Operating Segments. All assets are located in India and revenue of the
Company is earned in India hence, there is single geographic segment. Hence no separate segment reporting is required.

25. Foreign Exchange Earnings/ Outgo - NIL

26. The company's ability to continue as a going concern.

The Company has accumulated substantial losses, however, the Company earned marginal net profit during the current year
and previous year. Even the current assets exceed the current liabilities which may not indicate existing of material uncertainty
about the company's ability to continue as a going concern. As the company has consistent lease income and extended the
existing lease period of the farm by seven years from July 2020, as the lease income is a consistent to the company to meet it's
commitments, and hence, the company accounts have drawn upon going concern basis.

27. As per the limits specified under Companies Act, 2013, the company's operations do not satisfy the criteria of Corporate Social
Responsibility (CSR), hence the provisions of expenditure on CSR are not applicable.

28. Fair Value Measurement Hierarchy:

The Company categorizes financial assets and liabilities measured at fair value into one of three levels depending on the ability
to observe inputs employed for such measurement:

29. Financial Risk Management

(a) Nature and extent of risks arising from financial instruments and respective financial risk management objectives and
policies. The Company's principal financial liabilities comprise borrowing from the Managing Director, trade and other
payables. The main purpose of these financial liabilities is to finance the Company's operations, as and when required. The
Company's principal financial assets include the loans, deposit, cash and short- term deposits that derive directly from
operations.

In view of limited operations viz., leasing income and meeting the corporate compliances, the Company is marginally exposed
to market risk, credit risk and liquidity risk. The Board discusses on financial risks and appropriate risk governance frame work
for the Company. The Company's financial risk activities are governed by appropriate policies and procedures and that the risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board review and
agree policies for managing each of these risks, which are summarized below:

i. Market risk

Market risk or uncertainty arising from possible events and circumstances from business movement and their impact on future
performance of business. As the company entered into seven years lease agreement during July 2020 for its farm for seven
years with lease rent to meet it's commitments and the lessee is meeting the commitment in advance, hence the uncertainty is
very limited. Hence there is no price and market risks.

The Company is exposed to market risk through its financial instruments and specially to interest rate and risk, price risks, which
results from both its operating and investing risks. During the current year, the company do not have any other operations than
the leasing and investments others than the Electricity Deposit with state government and cash and bank balances which are
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an in significant risk of
changes in value. Hence, the company do not perceive any risk on this count.

The company do not have any operations in the foreign currency, hence there is no foreign currency fluctuations risk.

ii. Interest rate risk

As there are no investments and borrowings in the market, the company do not get exposed to any interest rate risk, other than
investing the surplus funds in short term bank deposits.

iii. Credit risk

Credit risk is the risk that the counter party will not meet its obligations under a financial instrument or customer contract,
leading to financial loss. The company is exposed to only other operating activity viz., lease income. With respect to the lease
income and generally the advance payment is received during the second quarter for the entire ensuing year, hence the credit
risk is very limited.

iv. Liquidity risk

The Company's objective is to meet the day to day operational commitments in time, as there are only limited operations other
than the compliance and leasing activity, the Company manages its activity with the lease income and in case of any exigency,
the Company resorts to the borrowings from the Managing Director for a short term, which will generally be repaid once, the
lease income is received. Hence, with limited operations, the company do not foresee any liquidity risk.

v. Business concentration risk:

The company is solely depending upon the lease income from one customer, which is highly concentrated risk. However, from
the past twelve years of track record of the lessee, it is clear that the lease payments for the whole year is received in advance,
and the company has only lease operations and was incurring the asset maintenance costs in addition to the compliance costs.
Hence, the Board had considered the concentration risk while taking the decision of extending the lease from July 2020.

vi. Sensitivity analysis:

The sensitivity analysis have been determined based on the exposure to interest rates for debt obligations with floating rates.
The impact on the Company of movement in interest rate by 100 basis points higher or lower and considering all other variables
constant, is not material, as the company do not have any debt obligations.

b. Capital Management

Company's capital comprises of equity share capital, retained earnings and other equity attributable to equity holders. The primary
objective of company capital management is to maximize the shareholder value. The Company manages its capital and makes
adjustments to it in the light of economic and market conditions. The Capital as on 31-March, 2025 is Rs.448.45 lakhs (Pervious year
Rs. 447.35).

30. Micro, small and medium enterprises

The identification of micro, small and medium enterprise suppliers as defined under the provisions of "Micro, small and
medium enterprises Act, 2006" is based on Management's knowledge of their status. Kindly refer Balance Sheet note no. 11(b)
for details of trade payables to micro and small enterprises.

31. A. Revenue streams

The Company is carrying out only the lease operations during the year and Other sources of revenue include Interest Income
on bank term deposits/refund from IT department.

Note:

1. EBIT: Earnings Before Interest and Taxes.

2. EBITDA: Earnings Before Interest, Taxes and Depreciation & Amortization

3. PBIT: Profit Before Interest and Taxes

34. Other Statutory Information:

a. there are no proceedings initiated or pending against the Company for holding any benami property under Prohibition
of Benami Property Transaction Act., 1988 and Rules made thereunder.

b. The Company has not carried out any revaluation of its Property, Plant and Equipment during the year.

c. The Company has borrowed only from Managing Director hence quarterly returns and statement of current assets
filing with banks and financial institutions, declarations of the Company as willful defaulter and utilization of funds for
specific purpose is not applicable.

d. As there are no secured and unsecured loans raised from Banks or Financial Institution's by the Company during the
year and pending as on 31^st March 2024 and as at 31^st March, 2025 hence, the application for the purposes for which
the borrowings have been raised and the filing of registration /satisfaction of charges are not applicable.

e. The title deeds of immovable properties (other than immovable property where the company is lessee, are duly
executed in favor of lessee) disclosed in the standalone financial statements are held in the name of the Company.

f. No scheme of arrangement has been approved by the competent authority in terms of Sec. 230 to 237 of The
Companies Act, 2013 during the year and earlier, hence the disclosure of effect of such arrangement accounted for in
the books of accounts of the Company do not arise.

g. Company has not traded or invested in crypto currency or virtual currency during the year.

h. The Company does not have any transaction not recorded in the books of accounts that has been reported or disclosed
as income during the year in tax assessment under Income Tax Act, 1961.

i. Disclosure of Struck off Companies: The company do not have any transactions including purchases, sales investments
and balances with any struck off companies under Sec 248 of the Companies Act, 2013 during the year and as on 31-
March, 2025. Hence, the provision of the details as required is not applicable for the year.

j. Company has not extended any loans or advances in the nature of loans repayable on demand or without specifying
any terms or period of repayment to promoters, key manager personal and related parties during the year and there
are no dues as at the end of 31-March 2024 and as at 31-March 2025.

k. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person or entities including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
directly or indirectly lend or invest in other per sons or entities identified in any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

l. The Company has not received any funds from any person(s) or entity (ies) including foreign entities (funded party)
with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly
lend or invest in other person or entities identified in any moment whatsoever by or on behalf of the funding party
(Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

m. Compliance with number of layers of companies - The company has not invested any other company or companies,
hence the question of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017, does not apply to the company.

For and on behalf of the Board

For Garlapati & Co

Bommidala Rama Krishna

Chartered Accountants Bommidala Anitha

Firm Regd. No: 000892S ^Ma"^agng Director

^{g DIN:00105030} DIN: 00112766

CA G. Satyanarayana,

^P«^a»^rl^nel". i B. Virat Vishnu K. Bhanu Kumar

(M.No:022101)

Company Secretary Chief Financial Officer

Date: 28.05.2025

Place: Guntur