3.13. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized when there is a present legal or constructive obligation as a result of a past event and it is
probable (i.e. more likely than not) 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. Such provisions are determined based
on management estimate of the amount required to settle the obligation at the balance sheet date. When the Company
expects some or all of a provision to be reimbursed, the reimbursement is recognized as a standalone asset only when
the reimbursement is virtually certain.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
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 costs.

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is
considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic
benefits expected to be received from it.

Contingent liabilities are disclosed on the basis of judgment of management/independent experts. These are reviewed at
each balance sheet date and are adjusted to reflect the current management estimate.

Contingent Assets are not recognized, however, disclosed in financial statement when inflow of economic benefits is
probable.

3.14 Leases:

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether:

• the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be
physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a
substantive substitution right, then the asset is not identified.

• the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout
the period of use; and

• the Company has the right to direct the use of the asset. The Company has this right when it has the decision¬
making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where
the decision about how and for what purpose the asset is used is predetermined, the Company has the right to
direct the use of the asset if either:

# the Company has the right to operate the asset; or

# the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Company as a lessee:

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it
is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the 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 estimated
useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In
addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing
rates as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

- fixed payments, including in-substance fixed payments.

- Variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date.

- Amounts expected to be payable under a residual value guarantee; and

- the exercise price under a purchase option that the Company is reasonably certain to exercise, lease
payments in an optional renewal period if the Company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Company is reasonably certain not to
terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there
is change in future lease payments arising from a change in an index or rate, if there is change in the Company's
estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its
assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount
of the right-of-use asset or is recorded in statement of profit and loss if the carrying amount of the right-of-use
asset has been reduced to zero.

Leasehold land is amortized over the period of lease being remaining as on the date of purchase is stated as below:

1) Plot no. AA/34 of Sachin Udhyognagar Sahakari Sangh Limited: - 9 Years

2) Plot no. B 16/16 of Sachin Udhyognagar Sahakari Sangh Limited: - 9 Years

3) Plot no. AA/93 of Sachin Udhyognagar Sahakari Mandali Limited: - 10 Years
Short-term leases and leases of low-value assets:

The Company has elected not to recognize right-of-use assets and lease liability for the short-term leases that have
lease term of 12 months of less and leases of low-value assets. The Company recognizes the lease payments
associated with such leases as an expense on a straight-line basis over the lease term.

3.15 Income Taxes:

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognized in the Statement of
Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive
income.

Current Tax:

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the
tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. Current tax
assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The
tax rates and the a tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the country where the Company operates and generates taxable income. Current tax assets and liabilities
are offset only if there is a legally enforceable right to set it off the recognized amounts and it is intended to realize the
asset and settle the liability on a net basis or simultaneously.

Deferred Tax:

Deferred tax is provided using the balance sheet method on temporary differences between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss,

- Taxable temporary differences arising on the initial recognition of goodwill.

- Temporary differences related to investments in subsidiaries, associates, and joint arrangements to the extent that
the Company is able to control the timing of the reversal of the temporary differences and it is probable that they
will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses (including unabsorbed depreciation) can be utilized, except:

- When the deferred tax asset 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 the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are
recognized in correlation to the underlying transaction either in OCI or directly in equity.

3.16 Current versus Non-Current classification:

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

a) An asset is current when it is:

Ý Expected to be realized or intended to be sold or consumed in the normal operating cycle,

Ý Held primarily for the purpose of trading,

Ý Expected to be realized within twelve months after the reporting period, or

Ý Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

b) A liability is current when:

- It is expected to be settled in the normal operating cycle,

Ý It is held primarily for the purpose of trading,

Ý It is due to be settled within twelve months after the reporting period, or

Ý There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

c) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

d) The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents.

3.17 Government Grants and Subsidies

Government grants are initially measured at amount receivable from the Government and are recognized on an accrual
basis only if there is reasonable assurance that they will be received and the company will comply with the conditions
associated with the grant and for those grants which are uncertain are not recognized unless there is reasonable assurance
of the same.

- In case of capital grants, they are deducted from the cost of the Fixed Assets against which the same is received
& accordingly depreciation is charged on the reduced value of the asset.

- In case of grants that compensate the Company for expenses incurred are recognized in Statement of Profit and
Loss by decreasing the Expense e.g. Power subsidy to be reduced from Factory Power Expenses.

3.18 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements and
stock split in equity shares issued during the year and excluding treasury shares. The weighted average number of equity
shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares and stock
split, other than the conversion of potential equity shares that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted EPS adjust the figures used in the determination of basic EPS to consider.

(a) The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares,
and

(b) The weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

3.19 Other Notes

Related Party disclosures:

Related Party disclosure, as required by AS -18, Related Party Transactions "as given below:

General

• Balance of Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to
confirmation.

• Disclosure of amount due to the creditors which are required by section 22 of the Micro Small and medium
Enterprise Development Act, 2006. The Company has collected the information from the creditors regarding
their MSME Status during the year. Based on the information available there is no amount due to
vendor cover under the Micro, Small and Medium Enterprise Development act, 2006.to Micro & Small
Enterprises.

• Car - Honda Brio, Innova Crysta and Bike - Electric Ola are in the name of directors of the Company.

• The quantity and value of closing stock is certified by the management as true and Correct.

• Managerial remuneration paid/ payable to the Managing Director/ Directors for the period from 1st April
2024 to 31st March 2025 Rs. 18.00 Lacs (Previous Year Rs. 12.00 Lacs)

Explanation for Change in the Ratio by more than 25% as compared to previous Year

*Current Ratio increased due to decreased in current assets during the period/Year
**Debts Equity Ratio decreased due to increased shareholding fund during the period/year
***Return on Equity (ROE) (%) ratio decreased due to Increase in shareholder fund during the period/ year
****Inventory Turnover Ratio decreased due to increase in cost of goods sold during the period/year

*****Trade Receivable Turnover Ratio decreased due to increase in revenue & average trade receivable
during the period/year

******Net Capital Turnover Ratio decreased due to increase in working capital during the period/year

*******Return on Capital Employed(ROCE) (%) increased due to increased share capital during the period/
year

For KSA & Co.

Firm Reg. No. : 0003822C
Chartered Accountants

Sd/-

Arun Kanodiya

Membership No. : 077131
UDIN: 25077131BMGYIO1962

Place : Surat
Date : 10-06-2025