2.7 Provisions and Contingent Liabilities

Provisions: Provisions are recognized when there is a present obligation as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle
the obhgation and there is a reliable estimate 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 and are not discounted to its present value.

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 or a reliable estimate of the amount cannot be made, is termed
as a contingent liability.

2.8 Inventories

The stocks of raw materials and stores & spares are valued at cost price. Finished Goods have been
valued at cost or net realizable value whichever is lower. Cost includes purchase price, freight
inward, clearing charges, custom duty and other related expenses. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale. Work in progr ess is valued at estimated cost. Goods in
transit are carried at cost.

2.9 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of Equity Shares outstanding during the
period. Earning considered in ascertaining the Company’s earnings per share is the net profit for
the period after deducting taxes thereto for the period. The weighted average number of Equity
Shares outstanding dming the period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential Equity Shares that have changed the number
of Equity Shares outstanding, without a corresponding change in resources. For the purpose of
calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares.

2.10 Employee Benefits

The contribution to provident fund, under the defined contribution plans is charged to revenue.
The Company has also provided towards the Gratuity benefits and Leave encashment, of the
eligible employees. No provision is made towards bonus during the year. The provisions for the
above benefit relating to the current year are charged to the revenue.

2.11 Foreign Currency Transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency, and the foreign currency at
average rate at each month.

Conversion —

Foreign currency monetary items are reported using the closing rate. Non-Monetary items which
are carried in terms of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of transaction.

Exchange Differences -

Exchange differences arising on the settlement of monetary items at rates different from those at
which they were initially recorded dining the year, or reported in previous financial statements are
recognized as income or as expense in the year in which they arise.

2.12 Leases

Leases are recognised as a right-of-use asset and a corresponding Lability at the date at which the
leased asset is available for use by the Company. Contracts may contain both lease and non-lease
components. The Company allocates the consideration in the contract to the lease and non-lease
components based on their relative stand-alone prices. However, for leases of real estate for which
the Company is a lessee, it has elected not to separate lease and non-lease components and instead
accounts for these as a single lease component. Assets and liabilities arising from a lease are
initially measured on a present value basis. Lease liabilities include the net present value of the
following lease payments:

fixed payments (including in-substance fixed payments), less any lease incentives receivable

amounts expected to be payable by the Company under residual value guarantees

? the exercise price of a purchase option if the Company is reasonably certain to exercise that
option, and

? payments of penalties for terminating the lease, if the lease term reflects the Company
exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability. The lease payments are discounted using the interest rate implicit in
the lease. If that rate cannot be readily determined, which is generally the case for leases in the
Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee
would have to pay to borrow the hinds necessary to obtain an asset of similar value to the right-of-
use asset in a similar economic environment with similar terms, security and conditions.

2.13Cash and Cash equivalents

Cash and cash equivalents at the end of the year represent cash and deposit with banks. The cash
flow statement is made using the indirect method.

3. Other Notes and disclosures:

3.1 The management has certified cash in hand as on 31^st March, 2025.

3.2 Deferred tax resulting from “timing difference” between books and taxable profits is recognized
using tax rates and laws that have been enacted as on Balance Sheet date.

3.3 The balance of Security Deposits and Advances recoverable are subject to the confirmation of the
parties.

3.4 In the opinion of the Board of Directors, current assets and advances have a value on realization
in the ordinary course of business at least equal to the amount at which they are stated in the
Balance Sheet.

3.5 In terms of notification no. G.S.R. 719(E) dated November 16, 2007 issued by the Central
Government of India, the disclosure of payments due to any supplier as at March 31, 2025 are as
follows:

The above disclosure is based on information available with the Company regarding status of the
suppliers as defined under Section 2 of the Micro, Small and Medium Enterprises Development
Act, 2006.

3.7 The management has certified the Fixed Assets installed and put to use & relied upon by the
Auditors, being a technical matter. During the year, Borrowings cost capitahzed up to
March 31, 2025 is Nil (As at March 31, 2024 is Rs. Nil)

3.8 Previous year’s figures have been re-arranged and reclassified wherever necessary to make
them comparable with the current year’s figures. The amounts have been rounded off to
nearest lakh.

3.9 Approval of financial statements

The financial statements are approved by the Company’s Board of Directors and authorised for
issue on 08^th May 2025.

As per our attached report of even date

For STAV & CO. For & on behalf of the Board

Chartered Accountants

(CA VARINDER SINGH) (SUNINDER VEER SINGH) (RANJAN JAIN)

PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTOR

M. No. 542573 DIN: 07693557 DIN : 00635274

FRN No. 024510C

DATE : 08^th May, 2025
PLACE : CHANDIGARH