7. CONTINGENT LIABILITIES:

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. A disclosure is
made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-
Occurrence of one or more uncertain events, not fully with in the control of the
Company;

b) present obligation, where it is not probable that an outflow of resources embodying
Economic benefits will be required to settle the obligation;

c) Present obligation, where a reliable estimate cannot be made.

8. TAXES ON INCOME:

The accounting treatment followed for taxes on income is to provide for Current Tax and
Deferred Tax. Current Tax is the amount of Income Tax determined to be payable in
respect of taxable income for the Year. Deferred Tax is recognized, subject to the
consideration of prudence, at substantively enacted rates on timing differences, being the
difference between taxable incomes and accounting income that originate in one period
and are capable of reversal in one or more subsequent periods.

9. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purposes of cash flow statements comprise cash at bank
and in hand and short-term investments with an original maturity of three months or less.

10. AUDIT TRAIL:

The Company has maintained Audit Trail as per provision to rule 3(1) of the Companies
(Accounts) Rule, 2014.

ACCOUNTING POLICIES AND NOTES ON ACCOUNTS FOR THE YEAR ENDED 31.3.2026 (Contd..):
(B). NOTES ON ACCOUNTS:

1. In the opinion of the management, Current Assets, Loans & Advances have a value on
realization at least equal to the amount at which they are stated in the Balance Sheet.
Adequate provisions have been made for all known liabilities.

2. Expenditure in foreign Currency: NIL

3. The Company has paid an interest free Loan amounting to Rs.48,400(‘000) to M/s. Sunidhi
Estates Private Limited during the year.

5. Contingent liabilities not provided as on 31.3.2026 in respect of the legal
proceedings at local courts in respect of pending recoverables.

6. Previous year’s figures have been re-arranged / re- grouped, wherever felt necessary.