2.18 Provisions, Contingent Liabilities and Contingent Assets

(a) Provision is recognized in respect of obligations where,
based on the evidence available, their existence at the
Balance Sheet date is considered probable.

(b) Provision is recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably
estimated.

(c) Provisions are not recognized for future operating losses.

(d) Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events but their existence is
confirmed by the occurrence or non occurrence of one or

more uncertain future events not wholly within the control
of the Company.

(e) A contingent asset is not recognized in the financial
statements, however, is disclosed, where an inflow of
economic benefits is probable.

(f) Provisions and contingent liabilities are reviewed at each
balance sheet date.

2.19 Investment Property

Investment property is property (land or a building—or part
of a building—or both) held (by the owner or by the lessee
under a finance lease) to earn rentals or for capital appreciation
or both, rather than for:

(a) use in the production or supply of goods or services or for
administrative purposes; or

(b) sale in the ordinary course of business. Owner-occupied
property is property held (by the owner or by the lessee
under a finance lease) for use in the production or supply
of goods or services or for administrative purposes.
Investment properties are accounted for in the books at
cost. However, fair value of such property is required to be
disclosed only in accordance with Ind AS 40.

2.20 Segment Reporting

Operating segments are identified and reported taking into
account the different risk and return, organisational structure
and internal reporting system.

2.21 Earnings Per Share

Basic earnings per share is computed by dividing the profit/
(loss) after tax (including the post tax effect of extra ordinary
items, if any) by the weighted average number of equity shares
outstanding during the year.

Diluted earnings per share is computed by dividing the profit/
(loss) after tax (including the post tax effect of extra ordinary
items, if any) by the weighted average number of equity shares
considered for deriving basic earnings per share and also the
weighted average number of equity shares which could be
issued on the conversion of all dilutive potential equity shares.

2.22 Cash and Cash Equivalents

Cash and cash equivalents Cash and cash equivalents in the
Balance sheet comprise cash on hand, cheques on hand,
balance with banks on current accounts and short term, highly
liquid investments with an original maturity of three months or
less and which carry insignificant risk of changes in value.

For the purpose of the Cash Flow Statement, Cash and
cash equivalents consist of Cash and cash equivalents, as
defined above and net of outstanding book overdrafts as
they are considered an integral part of the Company's cash
management.

2.23 Cash Flow Statement

Cash flows are reported using the indirect method, whereby
profit before tax is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payment and item of income or
expenses associated with investing or financing flows. The
cash flows operating, investing and financing activities of the
company are segregated.

2.26 Leases

Effective April 01,2019, the Company has adopted lnd AS 116
"Leases", applied to all lease contracts existing on April 01,2019
using the modified retrospective method. Accordingly, the
Company recognizes right-of-use asset at the date of initial
application. The right-of-use asset is measure equal to the lease
liability, adjusted by the amount of any prepaid or accrued
lease payments relating to that lease recognized in the balance
sheet immediately before the date of initial application.

The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgment. The Company uses
significant judgment in assessing the lease term (including
anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable
period of a lease, together with both periods covered by an
option to extend the lease if the Company is reasonably certain
to exercise that option; and periods covered by an option to
terminate the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the Company
is reasonably certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease, it considers
all relevant facts and circumstances that create an economic
incentive for the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the lease. The
Company revises the lease term if there is a change in the non¬
cancellable period of a lease.

The discount rate is generally based on the incremental
borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics

A lease that transfers substantially all the risks and rewards
incidental to ownership to the lessee is classified as a finance
lease. All other leases are classified as operating leases.

Company as a lessee

The Company accounts for each lease component within the
contract as a lease separately from non-lease components of
the contract and allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone
price of the lease component and the aggregate stand-alone
price of the non-lease components.

The Company recognises right-of-use asset representing
its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-of-use

asset measured at inception shall comprise of the amount
of the initial measurement of the lease liability adjusted for
any lease payments made at or before the commencement
date less any lease incentives received, plus any initial direct
costs incurred and an estimate of costs to be incurred by the
lessee in dismantling and removing the underlying asset or
restoring the underlying asset or site on which it is located. The
right-of-use assets is subsequently measured at cost less any
accumulated depreciation, accumulated impairment losses, if
any and adjusted for any remeasurement of the lease liability.
The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of
lease term or useful life of right-of-use asset. The estimated
useful lives of right-of-use assets are determined on the same
basis as those of property, plant and equipment. Right-of-
use assets are tested for impairment whenever there is any
indication that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the statement of profit
and loss.

The Company measures the lease liability at the present value
of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using
the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the
Company uses incremental borrowing rate. For leases with
reasonably similar characteristics, the Company, on a lease by
lease basis, may adopt either the incremental borrowing rate
specific to the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include fixed
payments, variable lease payments, residual value guarantees,
exercise price of a purchase option where the Company is
reasonably certain to exercise that option and payments of
penalties for terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease. The lease
liability is subsequently remeasured by increasing the carrying

amount to reflect interest on the lease liability, reducing the
carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment
or lease modifications or to reflect revised in-substance fixed
lease payments. The company recognises the amount of the
re-measurement of lease liability due to modification as an
adjustment to the right-of-use asset and statement of profit
and loss depending upon the nature of modification. Where
the carrying amount of the right-of-use asset is reduced to
zero and there is a further reduction in the measurement of the
lease liability, the Company recognises any remaining amount
of the re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind
AS 116 to short-term leases of all assets that have a lease term
of 12 months or less and leases for which the underlying asset
is of low value. The lease payments associated with these leases
are recognized as an expense on a straight-line basis over the
lease term.

Company as a lessor

At the inception of the lease the Company classifies each of
its leases as either an operating lease or a finance lease. The
Company recognises lease payments received under operating
leases as income on a straight- line basis over the lease term. In
case of a finance lease, finance income is recognised over the
lease term based on a pattern reflecting a constant periodic
rate of return on the lessor's net investment in the lease.
When the Company is an intermediate lessor it accounts for
its interests in the head lease and the sub-lease separately. It
assesses the lease classification of a sub-lease with reference
to the right-of-use asset arising from the head lease, not with
reference to the underlying asset. If a head lease is a short term
lease to which the Company applies the exemption described
above, then it classifies the sub-lease as an operating lease.

As per our report of even date attached

For Mehrotra & Mehrotra For and on behalf of Board of Directors

Chartered Accountants
F.R. No 0226C

CA. Sanjay K. Rai S. C. Agarwal Aditya Jhunjhunwala

Partner Executive Director Managing Director

M.No.507946 (DIN-02461954) (DIN-01686189)

A. K. Gupta Pooja Dua

Chief Financial Officer Company Secretary

Place : Lucknow

(M. No. A50996)

Date : 26th May, 2025