m) Provisions, Contingencies, Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed in respect of possible obligations that arise from
past events, whose existence would be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of
the Company. Such liabilities are disclosed by way of notes to the financial
statements. No disclosure is made if the possibility of an outflow on this account is
remote.

3. Significant accounting judgments, estimates and assumptions

The application of the Company’s accounting policies as described in Note 2, in the
preparation of the Company’s financial statements require management to make
judgements, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities. The estimates and assumptions are based on historical
experience and other factors that are considered to be relevant. The estimates and
underlying assumptions are reviewed on an ongoing basis and any revisions thereto
are recognised in the period in which they are revised or in the period of revision and
future periods if the revision affects both the current and future periods. Actual results
may differ from these estimates which could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

4. Key Sources of estimation uncertainty:

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. Existing circumstances and assumptions about future
developments may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.

I. Useful lives of property, plant and equipment.

Property, plant and equipment are depreciated over the estimated useful lives of
the assets, after taking into account their estimated residual value. Management
reviews the estimated useful lives and residual values of the assets annually in
order to determine the amount of depreciation to be recorded during any reporting
period. The useful lives and residual values are based on the Company’s historical
experience with similar assets and take into account anticipated technological
changes. The depreciation for future periods is adjusted if there are significant
changes from previous estimates.

II. Fair Value measurement

Management uses valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with how
market participants would price the instrument. Management bases its
assumptions on observable data as far as possible but this is not always available.
In that case management uses the best information available. Estimated fair
values may vary from the actual prices that would be achieved in an arm’s length
transaction at the reporting date.

III. Provisions

Provisions and liabilities are recognized in the period when it becomes probable
that there will be a future outflow of funds resulting from past operations or events
and the amount of cash outflow can be reliably estimated. The timing of
recognition and quantification of the liability require the application of judgement
to existing facts and circumstances, which can be subject to change. Since the
cash outflows can take place many years in the future, the carrying amounts of
provisions and liabilities are reviewed regularly and adjusted to take account of
changing facts and circumstances.

IV. Defined benefit plans (Gratuity benefits)

Management’s estimate of the Defined benefit plans is based on a number of
critical underlying assumptions such as standard rates of inflation, mortality,
discount rate and anticipation of future salary increases. Variation in these
assumptions may significantly impact the Defined benefit plans amount and the
annual defined benefit expenses.

V. Impairment

In assessing impairment, management estimates the recoverable amount of each
asset or cash-generating unit based on expected future cash flows and uses an
interest rate to discount them. Estimation uncertainty relates to assumptions about
future operating results and the determination of a suitable discount rate.

VI. Taxes

Significant management judgement is required to determine the amount of
deferred tax assets that can be recognised, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies, including
estimates of temporary differences reversing on account of available benefits from
the Income Tax Act, 1961. Deferred tax assets recognised to the extent of the
corresponding deferred tax liability.

1 The Cash Flow Statement has been prepared under the ‘Indirect Method’ set out in Ind
AS 7 ‘Cash Flow Statement’

2 Figures in parenthesis represent outflow.

3 Previous year's figures have been regrouped, wherever necessary, to confirm current
year's presentation.

For Prakash Tekwani & Associates ON BEHALF OF THE BOARD OF DIRECTORS

Chartered Accountants
FRN: 120253W

Prakash Tekwani Lalitkumar Gandhi Harsh Gandhi

Proprietor (Managing Director) (Whole Time Director)

M. No. 108681 DIN: 00618427 DIN: 03045752

Place: Ahmedabad Mamta Patel Hirvita Shah

Date: 21/05/2025 (Chief Financial Officer) (Company Secretary)