7. Provisions and contingent liabilities

Provisions are recognized when the Company has a
present legal or constructive obligation as a result of
past events and it is probable that an outflow of
resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are not
recognized for future operating losses.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end of
the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates. If the
effect of the time value of money is material, provisions
are discounted. The discount rate used to determine the
present value is a pre tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due
to the passage of time is recognized as interest expense.

Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events but their
existence will be confirmed by the 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.

8. Revenue Recognition

Revenue from sale of goods is recognised when control
of the products being sold is transferred to our
customer and when there are no longer any unfulfilled
obligations. The Performance Obligations in our
contracts are fulfilled at the time of dispatch, delivery or
upon formal customer acceptance depending on
customer terms.

Revenue is measured at fair value of the consideration
received or receivable, after deduction of any trade
discounts, volume rebates and any taxes or duties
collected on behalf of the government such as goods
and services tax, etc. Revenue is only recognised to the
extent that it is highly probable a significant reversal will
not occur.

Our customers have the contractual right to return
goods only when authorised by the Company. An
estimate is made for value of goods that will be returned
on best estimate based on accumulated experience,
which is insignificant.

Interest income is recognized on time proportion basis
after taking into account the materiality.

Dividend income is recognized when right to receive is
established.

9. Employee benefits
Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly

within 12 months after the end of the period in which the
employees render the related service are recognized in
respect of employees' services up to the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.

10. Income tax
Current Income Tax:

Current Income Tax is measured at the amount expected
to be paid to the tax authorities in accordance with
Income Tax Act, 1961.

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based
on the applicable income tax rate adjusted by changes
in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses. Current
tax assets and tax liabilities are set off where the
Company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Deferred Tax:

Deferred income tax is provided in full, using the liability
method on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amount in the financial statement. Deferred income tax is
determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the
reporting period and are expected to apply when the
related deferred income tax asset is realized or the
deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible
temporary differences and unused tax losses, 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.

11. Earnings Per Share

The Company presents basic and diluted earnings per
share data for its ordinary shares.

Basic earnings per share

Basic earnings per share is calculated by dividing:

- The profit attributable to owners of the Company

- By the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year
and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share is determined by adjusting
the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares
outstanding, adjusted for own shares held and
considering the effect of all dilutive potential ordinary
shares.

12. Valuation of Inventory

Items of inventories are measured at lower of cost or net
realizable value after providing for obsolescence, if any.
Net realizable value represents the estimated selling
price less all estimated costs of completion and selling
expenses. Cost of inventories comprises of cost of
purchase, cost of conversion and other cost incurred in
the normal course of business in bringing them to their
respective present location and condition, where
applicable, including appropriate overheads based on
normal level of activity. Stores and spares are carried at
cost.

Cost of raw material, trading and other products is
determined on 'Weighted Average Price' method. Cost
of finished stock is determined on absorption costing
method.

13. Foreign Currency Transactions

The financial statements are presented in India Rupees
(INR), which is company's functional and presentation
currency.

a) Transactions denominated in foreign currencies are
recorded at the exchange rate prevailing on the date of
the transactions.

b) Monetary items denominated in foreign currencies at
the year-end are restated at year-end rates. The resultant
exchange differences are recognized in the statement of
Profit and Loss.

c) Non-monetary items are carried at cost.

d) Any income or expense on account of exchange
difference either on settlement or on translation is
recognized in the Statement of Profit & Loss.

14. Cash & Cash Equivalents

Cash and cash equivalents for the purpose of
presentation in the statement of cash flows comprises of
cash in hand and deposit with banks. Bank overdrafts
are shown within current borrowings in the Balance
Sheet.

15. Cash Flow Statement

Cash flows are reported using the indirect method as set
out in Ind AS 7, 'Statement of Cash Flows', whereby
profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or

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 financing activities of the
Company are segregated.

16. Critical estimates and judgments -

The preparation of financial statements requires the use
of accounting estimates which by definition will seldom
equal the actual results. Management also needs to
exercise judgment in applying the accounting policies.

This note provides an overview of the areas that involved
a higher degree of judgment or complexity, and items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed. Detailed information
about each of these estimates and judgments is
included in relevant notes together with information
about the basis of calculation for each affected line item
in the financial statements.

The estimates and judgments used in the preparation of
the financial statements are continuously evaluated by
the Company and are based on historical experience
and various other assumptions and factors (including
expectations of future events) that the Company believes
to be reasonable under the existing circumstances.
Differences between actual results and estimates are
recognized in the period in which the results are known/
materialized.

The said estimates are based on the facts and events,
that existed as at the reporting date, or that occurred
after that date but provide additional evidence about
conditions existing as at the reporting date.

Securities Premium:

Premium received on equity shares are recognised in the securities premium and is utilised in accordance
with provisions of the Act.

Retained Earnings:

Retained earnings comprises of the profits that the Company has earned till date.

For Patki & Soman For and on behalf of the board of

Chartered Accountants Alphalogic Industries Limited

Firm Reg. No.: 107830W

Shripad S. Kulkarni Vedant Goel Montu Bhai Gandhi

PARTNER Managing Director Director & CEO

Membership No.121287 DIN : 08290832 DIN : 07352079

Place : Pune

Date : 06-05-2025 Aayushi Khandelwal Krina Gandhi

UDIN : 25121287BMHYSI6820 Company Secretary Chief Financial Officer