1.13 Provisions, contingent liabilities and contingent assets

Provision: Provisions are recognized when the Company has a present legal or constructive obligation as a
result of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated.

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.

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

The Company has various tax litigations pending before various authorities, the outcome of which are
material but not practicable for the Company to estimate the timings of cash outflows.

The total amount of Contingent Liability as on March 31, 2025 is Nil

Contingent assets: A contingent asset is a possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity. A contingent asset is not recognised but disclosed where an inflow of
economic benefit is probable.

1.14 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the
period attributable to equity shareholders and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

1.15 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before 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 the
available information.

1.16 Foreign Currency Transactions

Functional Currency Financial statements of the Companies are presented in Indian Rupees, which is also the
functional currency.

Transactions and Translations

Foreign currency denominated monetary assets and liabilities are translated into the relevant functional
currency at exchange rates in effect at the balance sheet date. The gains or losses resulting from such

translations are included in net profit in the Statement of Profit and Loss. Non-monetary assets and non¬
monetary liabilities denominated in a foreign currency and measured at fair value are translated at the
exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non¬
monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the
exchange rate prevalent at the date of the transaction. Transaction gains or losses realized upon settlement of
foreign currency transactions are included in determining net profit for the period in which the transaction is
settled.

1.17 Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of
the leased property and present value of minimum lease payments. Lease payments are apportioned between
the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognized as finance costs in the statement of profit
and loss. Lease management fees, legal charges and other initial direct costs of lease are capitalized.

A leased asset is depreciated on a straight-line basis over the useful life of the asset. However, if there is no
reasonable certainty that the company will obtain the ownership by the end of the lease term, the capitalized
asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease
term.

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased
item, are classified as Operating leases. Operating lease payments are recognized as an expense in the
statement of profit and loss on a straight-line basis over the lease term unless the payments are structured to
increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost
increases.

1.18 Pending Litigations

The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of
business. The Company’s management reasonably expects that such ordinary course legal actions, when
ultimately concluded and determined, will not have a material and adverse effect on the Company’s results of
operations or financial condition.

1.20 Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk

A. Credit risk:-

Credit risk refers to the risk of default on its obligation by the counter-party resulting in a financial loss.
The company is exposed to credit risk from its operating activities (primarily for trade receivables and
loans) and from its financing activities (deposits with banks and other financial instruments).

B. Credit risk management: -

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
credit worthiness of customers to which the Company grants credit terms in the normal course of business.
The Company establishes an allowance for doubtful debts and impairment that represents its estimate of
incurred losses in respect of trade and other receivables and investments.

i. Trade and other receivables: -

Credit risk on trade receivables is limited based on past experience and management's estimate.

ii. Cash and Cash Equivalents

The Company held cash and bank balance with credit worthy banks of Rs. 1,84,59,511/- as at March 31,
2025, and (Rs. 81,07,951/- at March 31, 2024) and Term deposits with credit worthy banks Rs.
3,23,01,368/- as at March 31, 2025 (Rs 3,01,86,659/- as at March 31, 2024) The credit risk on cash and
cash equivalents is limited as the Company generally invests in deposits with banks where credit risk is
largely perceived to be extremely insignificant.

C. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of
financial liabilities - trade payables and borrowings.

ANNUAL REPORT 2024-25

D. Liquidity risk management: -

The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its
liabilities when due without incurring unacceptable losses. In doing this, management considers both
normal and stressed conditions. A material and sustained shortfall in cash flow could undermine the
Company’s credit rating and impair investor confidence.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year
ended March 31, 2025 and March 31, 2024. This was the result of cash delivery from the business. Cash
flow from operating activities provides the funds to service the financing of financial liabilities on a day-
to-day basis. The Company’s treasury department regularly monitors the rolling forecasts to ensure it has
sufficient cash on-going basis to meet operational needs. Any short-term surplus cash generated by the
operating entities, over and above the amount required for working capital management and other
operational requirements, are retained as cash and cash equivalents (to the extent required).

E. Market risk:

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
equity prices will affect the Company’s income or the value of its holdings of financial instruments.
Market risk is attributable to all market risk sensitive financial instruments. The Company is exposed to
market risk primarily related to interest rate risk and the market value of the investments.

F. Currency Risk :

The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company
does not have any exposure in foreign currency.

G. Interest Rate Risk: -

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest-bearing investments because of fluctuations
in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest¬
bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

According to the Company interest rate risk exposure is only for floating rate borrowings. Company does
not have any floating rate borrowings on any of the Balance Sheet date disclosed in these financial
statements.

H. Price Risk: -

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market
traded price. It arises from financial assets such as investments in quoted instruments.

1. Fair value sensitivity analysis for fixed rate Instruments

The Company does not account for any fixed rate financial assets or financial liabilities at fair value
through Profit or Loss. Therefore, a change in interest rates at the reporting date would not affect
Profit or Loss.

2. Cash flow sensitivity analysis for variable rate Instruments.

The company does not have any variable rate instrument in Financial Assets or Financial Liabilities.

1.20 Capital Management

The company’s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key
elements in order to meet its strategic and day-today needs. We consider the amount of capital in proportion
to risk and manage the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets.

The management monitors the return on capital as well as the level of dividends to shareholders. The
Company will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

1.22 Related Party Transactions & Related Party Disclosures under Ind AS-24 “Related Party”

As per Indian Accounting standard 24 “Related Party Disclosures” the Company’s related parties and
transactions with them are disclosed below.

Note: The company does not account for interest on payments to MSME beyond stipulates period of 45 days
as per MSME Act, as in the past no such interest is claimed or paid to the vendors.

1.27 Security for Banking Facilities

Cash Credit, Packing Credit and demand working capital loan from banks are primarily secured by
hypothecation of stock and book debts and term loan from banks were secured by pari-passu charge on all the
immoveable properties of the Company and hypothecation of moveable assets.

1.28 The Company has not made any transactions with the struck off companies during the previous Year.

1.29 The Company has no any Virtual Currency / Crypto Currency transactions during the Year.

1.30 The Company has not been declared willful defaulter by any bank or financial institution or government or
any

1.31 The Company does not have any pending creation of charge and satisfaction as well as registration of charge
with Registrar of Companies.

1.32 No proceedings have been initiated during the year or are pending against the Company as at March 31, 2025
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in
2016) and rules made thereunder.

1.33 Segment Reporting

The company primarily manufactures its products directly or through contracts manufacturing of lighting and
fixtures as its sole reportable segment; thus, segment details are not provided.

1.37 The accompanying notes are an integral part of the financial statements.

For N P Patwa and Co. For and On Behalf of the Board

Chartered Accountants Focus Lighting And Fixtures Limited

Firm Reg No.: 107845W CIN: L31500MH2005PLC155278

UDIN: 25042384BMIORB3727

Sd/- Sd/- Sd/-

Jitendra Shah Mr. Amit Vinod Sheth Mrs. Deepali Amit Sheth

Partner Managing Director Executive Director

M No.: 042384 DIN: 01468052 DIN: 01141083

Sd/- Sd/-

Date: 29.05.2025 Mr. Tarun Udeshi Ms. Shruti Seth

Place: Mumbai Chief Financial officer Company Secretary

Date: 29.05.2025
Place: Mumbai