1.13. 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.

1.14. 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 2024-25.

1.15. 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.

1.16. 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.

1.17. 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 38 for
segment related information

1.18. 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 is disclosed in Note 33,
'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 onhistorical
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.

(ii) Rental income/Direct operating expenses considered in the table above is from the date of transfer from
Property, Plant & Equipment to Investment Property.

(iii) The Company has no restrictions on the realisability of its investment properties and no contractual
obligations to purchase, construct or develop Investment Properties as at the year end.

Estimation of fair value

The best evidence of fair value is current prices in an active market for similar properties. Since investment
properties leased out by the Company are cancellable and non-cancellable leases, the market rate for sale/
purchase of such premises are representative of fair values. Company's investment properties are at a
location where active market is available for similar kind of properties. Hence fair value is ascertained on
the basis of market rates prevailing for similar properties in those location determined by an independent
registered valuer, as defined under Rule 2 of The Companies (Registered Valuers and Valuation) Rules 2017,
and consequently classified as a level 2 valuation.

16.2 Detail Of The Rights, Preference and Restriction Attaching to Equity Shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each share holder
of equity shares is entitled to one vote per share. 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.

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.

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

18.1.1 Term Loan of Rs. 267.58 lacs (PY. Rs. 315.32 lacs ) is primarly secured by sole charge on by way of
Equitable Mortgage of property situated at Shop No:54, 3rd FLoor, Gami Industrial Park Building - B, Navi
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.

18.1.2 Term Loan of Rs. 188.17 lacs (PY. Rs. 200.54 Lacs) is primarly secured by sole charge by way of Mortgage
of property situated at Shop No:54, 55, 56 and 57, 3rd FLoor, Gami Industrial Park Building - B, Navi 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.

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

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

* Refer Note 35 - Financial Instruments, fair values and risk measurement

20.1 Cash Credit facility is primarily secured by stock and books debts, present and future and further
collaterally secured by sole charge on the property situated at Shop No:54, 55, 56 and 57, 3rd FLoor, Gami
Industrial Park Building - B, Navi Mumbai. It is further collaterally secured by Personal Guarantees of the
Promoter Directors.

20.2 Overdraft facility is primarily secured against Fixed Deposit held by the Company.

* Refer Note 34 - Financial Instruments, fair values and risk measurement

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.

B. Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring 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 2025
and 31 March 2024.

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.

(b) Foreign Currency Risk Sensitivity

The Company is mainly exposed to changes in USD . The below table demonstrates the sensitivity to a
5% increase or decrease in the USD against INR, with all other variables held constant. The sensitivity
analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 5% represents
management's assessment of reasonably possible change in foreign exchange rate.

c) Other Price Risk

Other price risk is the risk arising from investments in equity instruments recognised at FVTOCI. As at
31st March, 2025, the carrying value of such instruments recognised at FVTOCI amounts to Rs. 0.14 Lacs
(Rs. 0.16 Lacs as at 31st March, 2024 ). The details of such equity instruments are given in Note 5 (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 loss of 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.

Note 35 : Capital Management

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, 2025, 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.

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act,
2006" is based on the information available with the Company regarding the status of registration of such vendors
under the said Act, as per the intimation received from them on requests made by the Company. Further due to
continuing losses there is insufficient cash flow in the Company and hence there are cases of overdue payments
to MSME. However in view of the Management, the impact of interest, if any, that may be payable in accordance
with the provisions of the Act is not expected to be material. The Company has not received any claim for interest
from any supplier as at the balance sheet date. These facts have been relied upon by the auditors.

Note 38 : Segment Reporting

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".

The geographical segment has been considered for disclosure as secondary segment.

Two secondary segments have been identified based on the geographical locations of customers i.e. Domestic
and Export. Information about geographical segments are as below :

# Note : No amount pertaining to related parties have been provided for as doubtful debts.

Note 41 : Employee Benefits

(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 2024-25

(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. 3.83 lacs (31st March, 2024 Rs. 4.02
lacs).

Note 42 : 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 44 : Leases

A. Where the company is Lessee

The Company's leasing arrangements are in respect of operating leases for premises (Office, factory etc.).
These lease arrangements range for a period of 5 years. Most of the lease agreements are renewable for
further period on mutually agreeable terms.

NOTE: 45 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 Aditi Harsh Joshi

Date : 29th May, 2025 Company Secretary