2.13 Provisions,ContingentLiabilitiesand Contingent AssetsA. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.

B. 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 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 can not be made.

C. Contingent assets

Contingent assets are disclosed, where an inflow of economic benefit is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

2.14 Statementof Cashflows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and finance activities of the Company are
segregated.

2.15 Earnings per share

Basic earnings per share are 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.

2.16 Dividendto EquityShareholders

Final Dividend to equity shareholders is recognised as a liability and deducted from shareholder's
equity in the period in which the dividends are approved by the equity shareholders in the general
meeting. Interim dividends to equity shareholders is recognised as a liability and deducted from
shareholder's equity in the period in which the dividends are approved by the board of directors.

a) Rights, preferences and restrictions attached to shares

Equity shares

The Company has one class of equity shares having a par value of Rs 10/- each. Each shareholder is eligible for one vote per share held.

The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation,
the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.

b) Aggregate number and class of shares allotted as fully paid up by way of bonus shares for the period of five years immediately preceding
the date at which the Balance Sheet is prepared : NIL

35 The Company has adopted Indian Accounting Standard 116 ('Ind AS 116') “Leases" and recognised Right Of Use assets of
Rs NIL and it's corresponding future minimum lease rental payable of Rs NIL in the financial statement, discounted at
incremental borrowing rate, as per the details below :

37 Exceptional item represents the one-time impact of gratuity expenses due to the new Labour Codes which came into effect from

21st November 2025. The Government of India has consolidated multiple existing labour legislations into a unified framework
comprising four Labour Codes collectively referred to as the "New Labour Codes". Under Ind AS 19, changes to employee benefit
plans arising from legislative amendments constitute a plan amendment, requiring recognition of past service cost immediately
in the statement of profit and Loss.

# Principal Payment Interest Payment

^A Tangible net worth Deferred tax liabilities Non Current Lease liabilities

* The variance in the ratio (s) are due to the following reason: The company has also opened 4 new branches during the year where,
being the initial year of operation, the operating costs were higher. The company has also hired new employees to accommodate
newly opened branches resulting thereby a higher employee benefit cost. Further, the introduction of the new labour laws has
compelled the company to record additional gratuity costs. The company has also utilised its Overdraft facilities and incurred
interest expenses. This has resulted in a lower profits for the year and a lower debt service coverage ratio, lower return on equity
ratio, lower net profit ratio and lower return on capital employed ratio. Profit from sale of quoted shares were higher along with
higher dividends resulted in a higher return on investment.