2.05 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement 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. Contingent liabilities are not recognized but
are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

2.06 REVENUE RECOGNITION

Income is recognized, when services have been performed as per terms of contract provided amount can be measured and
there is no significant uncertainty as to collection.

The Company adopts accrual concepts in preparation of accounts. Claims /Refunds not ascertainable with reasonable
certainity are accounted for, on final settlement.

2.07 TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on income",
notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax.
Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of
reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured
using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are
recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on
account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

2.08 CASH AND BANK BALANCE

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are
short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in
value.

2.09 EARNINGS PER SHARE

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary
items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is
computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all
dilutive potential equity shares.

2.10 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their
relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on
the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on
reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"

Notes:

(a) Rights, Preferences and Restrictions attached to equity shares :

- The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provisions of the Companies Act,
2013.

- Every member of the company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show
of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of the company.

VIII. The estimates of rate of salary increase considered in the actuarial valuation takes into account inflation,
seniority, promotion and all other relevant factors including supply and demand in the employment market.

IX. The company operates an unfunded gratuity plan wherein employees are entitled to the benefit as per
scheme of the company for each completed year of service. The same is payable on retirement or termination
whichever is earlier. The benefit vests only after five years of continuous service.

Reasons for V ariation more than 25%:

a. Current Ratio:

In FY 24-25 /Variation in ratio is mainly due to Vendor Advances and Unbilled Revenue from ongoing projects.

b. Debt Equity Ratio:

In FY 24-25 ^Variation in ratio is due to repayment of almost all outstanding loans during the year.

c. Return-on-Equity Ratio:

In FY 24-25, Variation in ratio is due to increase in Equity base following fresh issue of shares at premium, resulting in higher Equity Share Capital and Reserves, despite increase in earnings.

c. Trade Receivables turnover Ratio:

In FY 24-25, Variation in ratio is due to increase in trade receivables.

d. Trade Payable turnover Ratio:

In FY 24-25, Due to increase in revenue in current year

e. Net Capital Turnover Ratio:

In FY 24-25, Due to increase in revenue and vendor advances & unbilled revenue, we can see change in ratio.

f. Net Profit Ratio:

In FY 24-25, Due to increase in revenue and decrease in finance cost, earning for Equity shareholder has increased ( i.e. profit during the year)

g. Return on Capital employed

In FY 24-25, Variation in ratio is due to increase in Equity base following fresh issue of shares at premium, resulting in higher Equity Share Capital and Reserves.

xiii. The Company does not have any scheme of arrangements which has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xiv. A. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other
persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

B. No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of
the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

31 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current period's classification / disclosure.

Signatures to Notes forming part of Financial Statements

For Goyal Goyal & Co. For and on behalf of the Board of Directors Chamunda Electrical Limited

Chartered Accountants Chamunda Electrical Limited

(FRN - 015069C)

Chiragkumar Natvarlal Patel Natvarbhai Karsanbhai Rathod

(Managing Director & CFO) (Whole Time Director)

CA Hemant Goyal DIN - 06601915 DIN - 06601995

(Partner)

(M. No. - 405884)

(UDIN -25405884BMKSNT1922)

Asha Sharma

Place : Palanpur (Company Secretary)

Date : May 30, 2025

Place : Palanpur
Date : May 30, 2025