21 In accordance with IND AS-19. there being only two employees in the company and the amount of gratuity being small the services of acturial valuer is not being hired and the calculation of gratuity provision amounting to Rs. 5.90 Lacs is based upon the calculation provided by the Company.

22 Previous year figures have been regrouped wherever required.

23 TAXES ON INCOME

i) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT paid amounting to Rs.42.28 is recognised as an asset in the Balance Sheet.

ii) The company has recognised Deferred Tax Asset on unabsorbed depreciation to the extent of corresponding Deferred Tax Liability on the difference between the book value and written down value of the fixed assets under Income Tax Act, 1961. The Company has not recognised Deferred Tax Asset on unabsorbed depreciation and brought forward business losses based on management's estimates of future profits. The same has been calculated as per the new provisions of section 115BAA of the Income Tax Act @ 25.168% amounting to Rs 0.35 lakhs which has been accounted for in the books.

24 CONTINGENT LIABILITY

As per the VAT Assessment Order dated 22.11.2021 for the FY 2014-2015 passed by the Department of Excise & Taxation, demand (including penalty and interest) under Punjab VAT Act 2005 and under CST Act 1956 was raised of Rs.1,26,76,398/- and Rs.99,869/- respectively. The Company had approached Sales Tax Appellate Tribunal for adjudication on account of grave errors contained in the Assessment Order. As per the legal opinion available with the Company, this amount is not payable. Based upon the legal advice no Provision towards VAT has been made, The Provision if any, shall be made after the decision of the Appellate Tribunal.

However the Company took up the CST demand matter under OTS scheme of the Punjab Government and an amount of Rs.49,935/- was determined as payable under The Punjab One Time Settlement Scheme for recovery of Outstanding Dues, 2023. The OTS scheme order dated 26.02.2024 settled the outstanding amount in respect of CST demand on the basis of Rs.49,935/- deposited by Company on 03.02.2024.

25 DEPRECIATION

(i) Depreciation during the year has been provided as per the rates mentione d in the schedule II of the Companies Act 2013.

considering the Company’s Policy of keeping 5% of the Purchase value as the residuary value , the Depreciation has been provided at a slightly higher amount of Rs.0.04 lakhs to bring the residuary value at 5% in this year only.

26 STOCKS

- The Company does not have any Opening or Closing stock. Therefore INDAS 2 is not applicable.