1.12 Provisions / Contingencies

(a) Provision involving substantia! degree of estimation in measurements is recognized when, there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.13 Segment Reporting A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment, which is engaged manufacture and sale of chairs and other seating equipments. Accordingly, the figures appearing in these financial statements relate to the Company’s single Business Segment.

R. Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Company's single geographical segment.

1.14 Forei'in Currency Transactions

Foreign exchange transactions are recorded at the rate prevailing on the date of respective transaction. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transacion. Exchange dififrences arising on foreign exchange transactions settled during the year and on restatement as at the balance sheet date are recognized in the statement of profit and loss for the year.

1.15 Digital Market Model

The Company has incurred expenditure on acquisition, development and implementation of new systems/processes of Digital Market model for customer loyalty and customer lists as in the past year. This Digital Market model expenditure is to identify and acquire customer data for research and analysis of the same. These customer data/lists accumulated over time, will help the company to bring in relevant/'right customers. Further, in the opinion of the directors, this will provide a base for the company to extent this model to Franchises which will help the conipay to rapidly sclae the revenue without incurring similar spends/costs. In view of the above, these expenditure accumulated will be amortised over a period of time from the fifth (5)

v^ar onwards

1.16 Warranty

The company sells its product carrying a warranty. No provision is made in the accounts toward warranty expenses. The same is accounted on actuals basis.

1.17 Balance Confirmations

Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to consequential adjustments, if any. Debtors & creditors balance has been shown separately and the advances received and paid from/to the parties is shown as advance from customer and advance to suppliers.

1.18 Regrouping

Previous years figures have been regrouped and reclassified wherever necessary to match with current year grouping and j classifiaction.

1-19 Pandemic tCovid-19| impact

The World Health Organization announced a global health emergency because of a new strain of coronavirus (“COVID-19") and classified its outbreak as a pandemic on 11 March 2020. On 24 March 2020, the Indian government announced a strict 21-day lockdown across the country to contain the spread of the virus. The management has made an assessment of the impact of COVID-19 on the Company's operations, financial performance and position for the year ended 3! March 2023 and has concluded that no there is no significant impact which is required to be recognized in the financial statements. Accordingly, no adjustments are required to be made to the financial statements.

Notes:

1. Current Ratio increased by 62.38% for the year ended 31.03,2024 as compared to F.Y. 2022-23 due to increase in Current Assets during the year.

2. Debt-Equity Ratio decreased by 58.80% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase I in Equity during the year.

3. Return on Equity Ratio decreased by 61,66% for the year ended 31.03.2024 as compared to FY 2022-23 due to increase in Equity' during the year.

4. Inventory Turnover Ratio increased by 79.79% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Cost of goods sold during thr year.

5. Working Capital Turnover Ratio decreased by 79.65% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Net Working Capital during the year.

6. Return on Capital Employed Ratio decreased by 42.16% for the period ended 31.03.2024 as compared to F.Y. 202223 due to increase in Capital Employed during the year.

7. Return on Investment Ratio increased by 67.51% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Rental income from investment during the year.

1wteT.22" ’ ' ' ‘ ‘ ——— —*— ——————~—

No transactions to report' against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

a) Crypto Currency or Virtual Currency

b) Benami Property held under Prohibition of Banami Property' Transactions Act. 1988 and rules made thereunder

c) Registration of charges or satisfaction with Registrar of Companies

d) Relating to borrowed funds i) Wilful defaulter

H) Utilisation of borrowed funds & share premium

lit) Borrowings obtained on the basis of security of current assets

iv) Discrepancy in utilisation of borrowings

v) Current maturity of long term borrowings ’

NOTE 1.23. DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company did not have any materia! transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.