1.12. Provisions and Contingent Liabilities

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a
past event exists and it is probable that an outflow of resources embodying economic benefits will be
required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of 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.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not require an outflow of resources embodying economic benefits or the
amount of such obligation cannot be measured reliably. When there is a possible obligation or a present
obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote,
no provision or disclosure is made.

1.13. Employee Benefits

Short Term Employee Benefits:

Employee benefits payable wholly within twelve months of receiving employee services are classified
as short-term employee benefits. These benefits include salaries and wages, bonus, short term
compensated absences, ex-gratia, etc. The undiscounted amount of short-term employee benefits to be
paid in exchange for employee services is recognised as an expense as the related service is rendered
by employees.

Post-Employment Benefits:

(i) Defined Contribution plans:

Defined contribution plans are employee state insurance scheme and Government administered
provident fund scheme for all applicable employees.

Recognition and measurement of defined contribution plans:

The Company recognizes contribution payable to a defined contribution plan as an expense in the
Statement of Profit and Loss when the employees render services to the Company during the reporting
period. If the contributions payable for services received from employees before the reporting date
exceed the contributions already paid, the deficit payable is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the reporting date, the excess is recognized as an asset to the extent that the prepayment
will lead to, for example, a reduction in future payments or a cash refund.

(ii) Defined Benefit plans:

The Payment of Gratuity Act is not applicable to the company because none of the present employee
has completed the required period of service Gratuity Act is not applicable to the Company hence the
company has not undertaken actuarial valuation as defined under Ind As 19 during the financial year
2023-24.

1.14. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand,
bank balances,demand deposits with banks where the original maturity is three months or less and other
short term highly liquid investmentsnet of bank overdrafts which are repayable on demand as these form
an integral part of the Company's cash management.

1.15. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at
the end of the reportingperiod, the impact of such events is adjusted within the financial statements.
Otherwise, events after the balance sheet dateof material size or nature are only disclosed.

1.16. Segment Reporting

The Chief Operational Decision Maker (CODM) monitors the operating results of its business segments
separately for the purpose of making decisions about resource allocation and performance assessment.
Operating segments are reported in a manner consistent with the internal reporting provided to the
CODM.

The Board of Directors (BOD) of the Company assesses the financial performance and position of the
Company, and makes strategic decisions; hence the Board of Directors are CODM. Refer note 36 for
segment related information

1.17. KEY ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the Company's financial statements requires the management to make judgments,
estimates andassumptions that affect the reported amounts of revenues, expenses, assets and liabilities,

and the accompanying disclosures,and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes thatrequire a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:

Income taxes

The Company's tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits
for the purpose of paying advance tax, determining the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax positions.The same isdisclosed in Note 31, 'Income Tax
Expenses'.

Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The
charge in respectof periodic depreciation is derived after determining an estimate of an asset's expected
useful life and the expected residualvalue at the end of its life. The useful lives and residual values of
Company's assets are determined by the managementat the time the asset is acquired and reviewed
periodically, including at each financial year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact their life, such as changesin technical
or commercial obsolescence arising from changes or improvements in production or from a change in
marketdemand of the product or service output of the asset.

Description of nature and purpose of each reserve

General Reserve - General reserve is created from time to time by way of transfer profits from retained
earnings for appropriation purposes. General reserve is created by a transfer from one component of equity
to another and is not an item of other comprehensive income.

Capital Reserve - Capital reserve is utilised in accordance with provision of the Companies Act

Equity instruments through other comprehensive income - This represents the cumulative gains and losses
arising on the revaluation of equity instruments measured at fair value through other comprehensive income,
under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed
off.

16.1 Nature of Security and terms of repayment for Long Term secured borrowings

16.1.1 Term Loan of Rs. 315.32 lacs (PY. Rs. 369.61 lacs) is primarly secured by sole charge on by way of
Equitable Mortgage of property situated at C.S No.10/116, Salt Pan Division, Antop Hill, Mumbai. And
further Secured by Personal Guarantees of Promoter Directors of company repayable in 120 Monthly
Installments starting From October, 2018. Last Installment due in September, 2027. Rate of Interest
10.5% p.a. at year end.

16.1.2 Term Loan of Rs. 200.54 lacs (P.Y. NIL) is primarly secured by sole charge by way of Mortgage of property
situated at C.S No.10/116, Salt Pan Division, Antop Hill, Mumbai. Repayable in 120 Monthly Installments
starting From February, 2024. Last Installment due in February, 2034. Rate of Interest 10.50% p.a. at year
end.

16.1.3 Term Loan of Rs. 0.86 lacs (PY. Rs. 2.47 lacs) is secured by Hypothecation of the specific vehicle of
the company repayable in 60 Monthly Installments starting from October 2019. Last Installment due in
September 2024. Rate of Interest 9.25% p.a.

16.1.4 Borrowing from financial instution is availed from ICICI Prudential Insurance Co. Ltd. as a loan against
the surrender value of Keyman Insurance Policy.

16.1.5 The Company has not defaulted in the repayment of loans and intrest in current and previous year.

* Refer Note 32 - Financial Instruments, fair values and risk measurement

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial
statements are a reasonable approximation of their fair values since the Company does not anticipate that the
carrying amounts would be significantly different from the values that would eventually be received or settled.

Types of inputs for determining fair value are as under:

Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted
equity shares, and mutual fund investments.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities included in level 3.

ii) Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods

iii) Transfer out of Level 3

There were no movement in level 3 in either directions during the financial year ending on 31st March 2024
and 31 March 2023.

C. Financial risk management

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The
Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances
with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors ('Board') oversee
the management of these financial risks through its Risk Management Committee. The Risk Management
Policy of the Company formulated by the Board, states the Company's approach to address uncertainties
in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of
the Company's management, the structure for managing risks and the framework for risk management.
The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse
effects on the Company's financial performance.

The following disclosures summarize the Company's exposure to financial risks and information regarding
use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been
provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash
flows and financial position of the Company.

1) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk
and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade
payables, trade receivables, loans and derivative financial instruments.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company generally utilizes fixed rate borrowings and
therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will
fluctuate because of change in the market interest rates. The Company is not exposed to significant interest
rate risk as at the respective reporting dates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes
in foreign exchange rates.The Company operates, in addition to domestic markets, significantly in international
markets through its sales and services in overseas and purchases from overseas suppliers in US$ and is therefore
exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$.
The Company does not enter into any derivative instruments for trading or speculative purposes.

The company does not enter into forward exchange contracts to hedge against its foreign currency exposures
relating to the underlying transactions and firm commitments.The sources of foreign exchange risk are outstanding
amounts payable for imported raw materials and other supplies denominated in foreign currency. The Company
is also exposed to foreign exchange risk on its exports. Most of these transactions are denominated in US dollars.

C) Other Price Risk

Other price risk is the risk arising from investments in equity instruments recognised at FVTOCI. As at 31st
March, 2024, the carrying value of such instruments recognised at FVTOCI amounts to Rs. 0.16 Lacs (Rs. 0.07
Lacs as at 31st March, 2023 ). The details of such equity instruments are given in Note 3 (A).Investments in
equity instruments which is not considered to be significant.

2) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations resulting in a financial loss to the Company.To manage this, the Company
periodically assesses financial reliability of customers and other counter parties, taking into account the financial
condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual
risk limits are set and periodically reviewed on the basis of such information.The Company considers Credit risk
arises primarily from financial assets such as trade receivables, other balances with banks, loans.

Credit risk arising from other balances with banks is limited and there is no collateral held against these because
the counterparties are banks and recognised financial institutions with high credit ratings assigned by the credit
rating agencies.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where receivables have been written off, the Company continues
to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognized as income in the statement of profit and loss.

The Company measures the expected credit lossof trade receivables based on historical trend, industry practices and
the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past
trends. Based on the historical data, loss on collection of receivable is not material hence no provision considered.

Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

3) Liquidity Risk

Liquidity risk is the risk that the company will encounter in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The approach of the company to manage
liquidity is to ensure , as far as possible, that will have sufficient liquidity to meet their respective liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage
to their reputation. The company assessed the concentration of risk with respect to refinancing its debt and
concluded it to be low.

The table below summarises the maturity profile of the company's financial liabilities based on contractual
undiscounted payments.

For the purpose of the Company's capital management, capital includes issued capital and all other equity
reserves attributable to the equity shareholders of the Company. The primary objective of the Company when
managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital
structure so as to maximize shareholders' value.

As at 31st March, 2024, the Company has only one class of equity shares and has low debt. Consequent to such
capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal
capital structure, the Company allocates its capital for distribution as dividend or re-investment into business
based on its long term financial plans.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary, adjust its capital structure.

The Company's primary segment is identified as business segment based on nature of products, risks, returns
and the internal business reporting system and secondary segment is identified based on the geographical
location of the customers as per Indian Accounting Standard 108. The Company is principally engaged in a single
business segment viz., "Digital Studio Flash Lights and Photographic Accessories".

(a) Defined Benefit Plan:

The Payment of Gratuity Act is not applicable to the company because it employs less than 10 employees
during the year; hence the company has not undertaken actuarial valuation as defined under Ind As 19 during
the financial year 2023-24.

(b) Defined Contribution Plan:

The Company also has certain defined contribution plans. Contributions are made to provident fund in India
for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered
provident fund administered by the government. The obligation of the Company is limited to the amount
contributed and it has no further contractual nor any constructive obligation. The expense recognised during
the period towards defined contribution plan is Rs. 4.02 Lacs (31st March, 2023 Rs. 3.36 Lacs).

Note 40 : Corporate Social Responsibility

Provisions of Section 135 of the Companies Act, 2013, requires every Company having a Net Worth of Rs. 500 cr.
or more, or turnover of Rs. 1,000 cr. or more or a Net Profit of Rs. 5 cr. or more during the immediately preceding
financial year shall spend at least 2% of the average Net Profits of the Company made during the three immediately
preceding financial years on Corporate Social Responsibility (CSR). The Company does not fall in any of the above
criteria, hence provisions of Section 135 of the Companies Act, 2013, is not applicable to the Company.

NOTE: 42 ADDITIONAL REGULATORY REQUIEMENT

i) TITLE DEEDS

The title deeds of all the Immovable properties, (other than immovable properties where the Company is
the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial
statements included in property, plant and equipment and capital work-in progress are held in the name of the
Company as at the balance sheet date.

ii) REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

The Company has not undertaken any revaluation of Property Plant & Equipments / Intangible assets during
the year.

iii) DETAILS OF BENAMI PROPERTY

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the
company for holding any benami property.

iv) BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS

Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the
books of accounts.

v) WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financials institution or lender.

vi) RELATIONSHIP WITH STRUCK OFF COMPANIES

The company does not have any transaction with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year

vii) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar
of Companies beyond the statutory period.

viii) UTILISATION OF BORROWED FUNDS/ADVANCES

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding
party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

x) UNDISCLOSED INCOME

The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).\

xi) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xii) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was obtained.

For F P & Associates For and on behalf of the Board of Directors of Photoquip India Ltd.

Chartered Accountant

Firm Registration No. 143262W

F.S. Shah Dhaval J. Soni Pulin D. Soni

Partner Chairman and Managing Director Executive Director and CFO

Membership No. 133589 (DIN: 00751362) (DIN: 07606822)

Place: Ahmedabad Vishal S. Khopkar

Date: 30th May, 2024 Company Secretary