1.9 Provisions, Contingent liabilities and Capital
commitments

a) Provision is recognised when there is a present
obligation as a result of a past event and it is probable
that an outflow of resources will be required to settle
the obligation in respect of which a reliable estimate
can be made. Provision amount are discounted to
their present value where the impact of time value
of money is expected to be material.

b) Contingent liabilities are disclosed in respect of
possible obligations that arise from past events
but their existence is confirmed by the occurrence
of one or more uncertain future events not wholly
within the control of the Company.

c) Contingent liabilities pertaining to various
government authorities are considered only on
conversion of show cause notices issued by them
into demand.

1.10 Intangible assets

a) Expenditure incurred for acquiring intangible
assets like software costing ?500,000 and above
and license to use software per item of ?25,000
and above, from which economic benefits will
flow over a period of time, is amortised over the
estimated useful life of the asset or five years,
whichever is earlier, from the time the intangible
asset starts providing the economic benefit.

b) Brand value arising on acquisition are recognised
as an asset and are amortised on a straight line
basis over 10 years.

c) Goodwill on acquisition is not amortised but tested
for impairment annually.

d) In other cases, the expenditure is charged to
revenue in the year in which the expenditure is
incurred.

1.11 Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head
of Accounts with the total of such expenditure being
disclosed in the Notes.

b) Capital expenditure relating to research & development
is treated in the same way as other fixed assets.

1.12 Treatment of Grant / Subsidy

a) Revenue grant/subsidy in respect of research
& development expenditure is set off
against respective expenditure.

b) Capital grant/subsidy against specific fixed assets
is set off against the cost of those fixed assets.

c) When grant/subsidy is received as compensation

for extra cost associated with the establishment of
manufacturing units or cannot be related otherwise
to any particular fixed assets the grant/subsidy so
received is credited to capital reserve. On expiry
of the stipulated period set out in the scheme of
grant/subsidy the same is transferred from capital
reserve to general reserve.

d) Revenue grant in respect of organisation of
certain events is shown under Sundry Income and
the related expenses there against under normal
heads of expenditure.

1.13 Impairment of assets

An assessment is made at each Balance Sheet date to
determine whether there is an indication of impairment of
the carrying amount of the fixed assets. If any indication
exists, an asset's recoverable amount is estimated. An
impairment loss is recognised whenever the carrying
amount of the asset exceeds the recoverable amount.

The recoverable amount of an asset or a cash¬
generating unit is the higher of its fair value less costs
to sell and its value in use.

Value in use is the present value of the future cash

flows expected to be derived from an asset or cash¬
generating unit using an appropriate discount factor.

1.14 Income taxes

Tax expense recognized in profit or loss comprises the
sum of deferred tax and current tax not recognized in
other comprehensive income or directly in equity.

Current tax is payable on taxable profit, which
differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax
laws that have been enacted or substantively enacted
by the end of the reporting period.

Deferred income taxes are calculated using the liability
method on temporary differences between the carrying
amounts of assets and liabilities and their tax bases.
However, deferred tax is not provided on the initial
recognition of an asset or liability unless the related
transaction is a business combination or affects tax or
accounting profit. Deferred tax assets and liabilities are
calculated, without discounting, at tax rates that are
expected to apply to their respective period of realization,
provided those rates are enacted or substantively
enacted by the end of the reporting period.

Deferred tax asset ('DTA') is recognized for all
deductible temporary differences, carry forward of
unused tax credit and unused tax losses, to the extent
that it is probable that taxable profit will be available
against which deductible temporary difference, and
the carry forward of unused tax credits and unused
tax losses can be utilized or to the extent of taxable
temporary differences except:

- Where the DTA relating to the deductible temporary
difference arises from the initial recognition of
an asset or liability in a transaction that is not a
business combination; and at the time of the
transaction, affects neither accounting profit nor
taxable profit or loss.

- in respect of deductible temporary differences
arising from investments in subsidiaries, branches
and associates, and interests in joint arrangements,
to the extent that, and only to the extent that, it is
probable that the temporary difference will reverse
in the foreseeable future; and taxable profit will be
available against which the temporary difference
can be utilized.

This is assessed based on the Company's forecast of
future operating results, adjusted for significant non¬
taxable income and expenses and specific limits on the
use of any unused tax loss or credit.

Changes in deferred tax assets or liabilities are
recognised as a component of tax income or expense
in profit or loss, except where they relate to items that
are recognized in other comprehensive income or
directly in equity, in which case the related deferred tax
is also recognized in other comprehensive income or
equity, respectively.

Deferred tax liabilities are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries, branches and
associates and interest in joint arrangements where the

Company is able to control the timing of the reversal
of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.

1.15 Leases

The Company as a lessee

The Company considers whether a contract is, or
contains a lease. A lease is defined as 'a contract, or
part of a contract, that conveys the right to use an asset
(the underlying asset) for a period of time in exchange
for consideration'. To apply this definition, the Company
assesses whether the contract meets three key
evaluations of whether:

a) The contract contains an identified asset, which
is either explicitly identified in the contract or
implicitly specified by being identified at the time
the asset is made available to the Company.

b) The Company has the right to obtain substantially
all of the economic benefits from use of the
identified asset throughout the period of use,
considering its rights within the defined scope of
the contract.

c) The Company has the right to direct the use of the
identified asset throughout the period of use.

Measurement and recognition of leases

At lease commencement date, the Company
recognises a right-of-use asset and a lease liability. The
right-of-use asset is measured at cost, which includes
the initial measurement of the lease liability, any initial
direct costs incurred by the Company, an estimate of
any costs to dismantle and remove the asset at the end
of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives
received).

The Company depreciates the right-of-use asset on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment
when any indicators exist.

At lease commencement date, the Company measures
the lease liability at the present value of the lease
payments unpaid at that date, discounted using the
interest rate implicit in the lease if that rate is readily
available or the Company's incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are made up of fixed payments, variable
payments based on an index or rate, amounts expected
to be payable under a residual value guarantee and
payments arising from options reasonably certain to be
exercised.

Subsequent to the initial measurement, the liability
will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment
or modification, or if there are changes in fixed
payments. When the lease liability is remeasured, the
corresponding adjustment is reflected in the right-of-
use asset, or profit and loss if the right-of-use asset is
already reduced to zero.

The Company has elected to account for short-term
leases i.e. for leases for period less than 12 months
and leases of low-value i.e. value of leased asset which
is less than ?3,50,000 using the practical expedients.
Instead of recognising a right-of-use asset and lease
liability, the payments in relation to these are recognised
as an expense in profit or loss on a straight-line basis
over the lease term. In the Balance Sheet, right-of-use
assets have been disclosed under non-current assets
and lease liabilities have been disclosed under financial
liabilities.

The Company as a lessor

The Company classifies leases as either operating or
finance leases. A lease is classified as a finance lease
if the company transfers substantially all the risks and
rewards incidental to ownership of the underlying asset
to the lessee, and classifies it as an operating lease if
otherwise.

1.16 Revenue recognition

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation.

Sale of goods

When the control over goods is transferred to the buyer
and no significant uncertainty exists regarding the
amount of consideration that is derived from the sale
of goods.

Services rendered

a) When control over the service rendered in full or
part is recognized by the buyer and no significant
uncertainty exists regarding the amount of
consideration that is derived from rendering the
services.

b) In case of project activities: As per the percentage
of completion method after progress of work
to a reasonable extent for which control can be
transferred to the buyer.

c) In cases where the Company collects consideration
on account of another party, it recognises revenue
as the net amount retained on its own account.

Other income

a) Interest on a time proportion basis using the
effective Interest rate method

b) Dividend from investments in shares on
establishment of the Company's right to receive.

c) Royalties are recognised on accrual basis in
accordance with the substance of the relevant
agreement

d) Export incentives are recognised as income only
at the time when there is no significant uncertainty
as to its measurability and ultimate realisation.

For determining the transaction price, the Company
measures the revenue in respect of each performance
obligation of a contract at its relative standalone selling
price.

The company accounts for volume discounts and pricing
incentives to a buyer as a reduction of revenue based
on the ratable allocation of the discounts/incentives
to each of the underlying performance obligation that
corresponds to the progress by the buyer towards
earning the discount/ incentive.

Term of returns, refunds etc. are agreed with the buyers
on a case to case basis upon mutually accepted terms
and conditions. The impact of returns and refunds is
negligible on the turnover of the company.

As a practical expedient, as given in Ind AS 115, the
Company has not disclosed the remaining performance
obligation related disclosures for contracts where
the revenue recognized from the satisfaction of the
performance obligation corresponds directly with the
value to the customer of the entity's performance
completed to date especially in relation to those
contracts where invoicing is on time and material basis.

Significant payment terms:

Payment is generally received either in cash or based
on credit terms. Credit terms are agreed to with the
buyers and is generally in line with the respective
industry standards.

1.17 Borrowing Costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets
that necessarily take a substantial period of time to get
ready for their intended use or sale. Other Borrowing
Costs are recognised as expense in the period in which
they are incurred.

1.18 Cash Flow Statement

Cash Flow Statement, as per Ind AS - 7, is prepared
using the indirect method, whereby profit for the
period 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 items
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.

1.19 Employee Benefits

(i) 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 recognised at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligation
in balance sheet

(ii) Post-employment obligations

Defined Contribution Plans

Provident Fund: the company transfers provident
fund contributions to the trust registered for
maintenance of the fund and has no further
obligations on this account. These are recognised
as and when they are due.

Superannuation Fund (SAF): the company
contributes for eligible employees, a sum
equivalent to 9% and 8% for Executives and
Officers, respectively of salary, to the fund
administered by the trustees and managed by Life
Insurance Corporation of India (LIC) (for eligible
optees for LIC managed scheme) or to the fund
administered and managed by the NPS Trust
(for balance eligible optees for NPS managed
scheme). The company has no further obligations
on this account. These are recognised as and
when they are due.

Defined Benefit Plans

Gratuity and Post Retirement Benefit plans - The
defined benefit obligation is calculated annually
by actuary using the projected unit credit method.
Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity. Changes
in present value of the defined benefit obligation
resulting from plan amendments or curtailments
are recognised immediately in profit or loss as
past service cost.

(iii) Other long term employee benefit obligations

The liabilities for leave encashment and long
service awards are not expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service.
They are measured annually by actuary using the
projected unit credit method. Re-measurement as
a result of experience adjustments and changes
in actuarial assumptions are recognised in the
period in which they occur in profit or loss.

1.20 Prior period Items

Material prior period items which arise in the current

period as a result of error or omission in the preparation

of prior period's financial statement are corrected

retrospectively in the first set of financial statements
approved for issue after their discovery by:

a) restating the comparative amounts for the prior
period(s) presented in which the error occurred; or

b) If the error occurred before the earliest prior period
presented, restating the opening balances of
assets, liabilities and equity for the earliest prior
period presented.

c) The value of error and omission is construed to
be material for restating the opening balances of
assets and liabilities and equity for the earliest
prior period presented if the amount in aggregate
for all cases of prior period income/expenses
exceeds 1% of the revenue from operations of the
previous year.

d) Retrospective restatement shall be done except
to the extent that it is impracticable to determine
either the period specific effects or the cumulative
effect of the error. When it is impracticable to
determine the period specific effects of an error
on comparative information for one or more prior
periods presented, the company shall restate the
opening balances of assets, liabilities and equity
for the earliest prior period for which retrospective
restatement is practicable (which may be the
current period).

1.21 Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss (excluding other comprehensive
income) for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for events such as bonus issue, share splits or
consolidation that have changed the number of equity
shares outstanding without a change in corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year
attributable to equity shareholders and the weighted
average number of equity shares outstanding during
the year are adjusted for the effects of dilutive potential
equity shares.

For and on behalf of the Board of Directors

For B. Chhawchharia & Co. Adhip Nath Palchaudhuri R. M. Uthayaraja Saurav Dutta Abhijit Ghosh

Chartered Accountants

Fi_rm Re_gistration No 305123E Chairman and Managing Director Director Director (Finance) & Director

^g . & Director (Service Businesses) - (Manufacturing Businesses) Chief Financial Officer (Human Resource &

Additional Charge DIN 09678056 DIN 10042140 Corporate Affairs)

DIN 08695322 DIN 10042785

CA. Kshitiz Chhawchharia Vandana Minda Heda Harishkumar Madhusudan Joshi Kavita Bhavsar

Partner Independent Director Independent Director Company Secretary

Membership No. 061087 DIN 09402294 DIN 01201050

Place: Kolkata
Date: 15^th May, 2025