16. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES

16.1 Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating losses.

16.2 Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.

16.3 Provisions are measured at the present value of the management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provisions due to the passage of time is recognised as interest expense.

16.4 Warranty: Warranty on goods sold, wherever applicable, commences once the sale is complete and accordingly
provision for such warranty is made. The period, terms and conditions of warranty as per the relevant contract are
taken into consideration while determining the provision for such sales.

16.5 Provision for Onerous Contract: A provision for onerous contracts is recognised when the expected benefits to be
derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract
and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises
any impairment loss on the assets associated with that contract.

17. EMPLOYEE BENEFITS

17.1 Short-term obligations

Liabilities for wages and salaries, including other monetary and non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are recognised
in respect of employees' services up to the end of the reporting period and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in
the balance sheet.

17.2 Other long-term employee benefit obligations

The liability for vacation leave is not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period
that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

17.3 Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as Gratuity and contribution towards Provident Fund under the PF Act; and

(b) Defined contribution plans namely Retired Employee Medical Scheme (REMI)/Post Superannuation Medical
Benefit (PSMB), Death Relief Fund (DRF), Employee State Insurance Scheme (ESI) and Pension Scheme(s).

a) Defined benefit plans

The liability or assets recognised in the balance sheet in respect of defined benefit plans is the present
value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting
the estimated future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.

Re-measurement gains and losses arising from experience adjustments and change in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service cost.

b) Defined contribution plans

The Company pays contributions to trusts established as per local regulations and also to publicly
administered funds as per local regulations. The Company has no further payment obligations once the
contributions have been paid. The contributions are accounted for as defined contribution plans and the
contributions are recognised as employee benefit expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

The Company's contribution paid/ payable to Company approved Retired Employee Medical Scheme (REMI)/
Post Superannuation Medical Benefit (PSMB), Death Relief Fund (DRF), Employee State Insurance Scheme
(ESI) and Pension Scheme are charged to revenue.

17.4 Termination Benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement
date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises
termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those
benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves
the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination
benefit are measured based on the number of employees expected to accept the offer. Termination Benefits falling
due more than 12 months after the end of the reporting period are discounted to present value.

Compensation paid to Employees under Voluntary Retirement Scheme (VRS) is charged to Statement of Profit and
Loss in the year of retirement.

18. CONTRIBUTED EQUITY

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.

19. DIVIDENDS

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

20. EARNINGS PER SHARE

20.1 Basic earnings per share

Basic earnings per share is calculated by dividing:

The profit attributable to owners of the Company by the weighted average number of equity shares outstanding during
the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares

20.2 Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

» The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

» The weighted average number of additional equity shares that would have been outstanding assuming the

conversion of all dilutive potential equity shares.

Note 1 to 38 and Material Accounting Policies attached form part of accounts.

Notes:

Freehold Land:

(a) Freehold Land includes

(i) 2 Acres and 08 Guntas (31 March, 2025: 2 Acres and 08 Guntas) of land at Kanchanbagh, Hyderabad given on permissive
possession to a Government of India Organisation and is in their possession.

(ii) 146 Acres 32 Guntas (31 March, 2025: 146 Acres 32 Guntas) of land at Kanchanbagh, Hyderabad received free of cost from
State Government, is valued at '28.42 lakh (as at 31 March, 2025: '28.42 lakh), title to this land is yet to be received.

(b) In respect of land admeasuring 82 Acres 31 Guntas (as at 31 March, 2025: 82 Acres 31 Guntas) at Karmanghat, Hyderabad acquired
by state government for the company for which an amount of '21.66 lakh (as at 31 March, 2025: '21.66 lakh) paid by the company
is capitalised.

(c) Free hold land of 632 Acres 16.50 Guntas (as at 31 March, 2025: 632 Acres 16.50 Guntas) at Ibrahimpatnam, Rangareddy District is
taken possession on agreement of sale by paying '6,136.90 lakh (as at 31 March, 2025: '6,136.90 lakh) based on tentative fixation
of price is capitalised. Gross Carrying Value is '7,965.16 lakh (as at 31 March, 2025 '7,965.16 lakh) including the environmental fee
and development charges incurred.

Buildings :

(a) Buildings include '111.01 lakh as at 31 March, 2026 (31 March, 2025 : '111.01 lakh) being the value of buildings constructed on
land not belonging to the Company.

(i) The Estimated useful life of various categories of assets (As per schedule II to the companies Act, 2013) is described as follows:

(ii) For method and accounting of depreciation, refer the accounting policy 11: Property, Plant and Equipment.

(iii) Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.

(iv) Refer Note 38(7) for details relating to short closed projects.

(v) Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company.

(vi) The Property, Plant and Equipment includes assets funded by the customer against which deferred revenue is recognised
as the company has control over these assets.

(ii) Contractual obligations

The Company has no contractual obligations to sell, construct or develop investment property or for its repairs, maintenance
or enhancements.

(iii) Leasing arrangements

Land admeasuring 5 acres and 1 gunta at Kanchanbagh is leased to Indian Navy under long-term operating leases with
rentals payable yearly The lease rentals for such property is '1 per annum per acre. Leasing arrangements are the same for
year ended 31 March, 2026 and 31 March, 2025.

Significant judgement:

As the land given to Indian Navy is within the premises of the company and it would not be possible for the company to
give the land to a third party the Registration department value of the land is considered to be the fair value of the land.
The fair value arrived is '0.122 lakh ('0.122 lakh as at 31 March 2025) per square yard as per the Registration department.

(v) Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.

(vi) Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company

(vii) Refer Note 38(21)B with regard to disclosure relating to valuation by registered valuer as defined under rule 2 of Companies
(Registered Valuers & Valuation) Rules, 2017.

Leasehold Land:

(a) Land measuring 3 acres 25 guntas (31 March, 2025: 3 acres 25 guntas) at Visakhapatnam was taken on lease from
Government of India at a rental of '1.00 per acre per annum.

(b) Leasehold land measuring 553 Acres 34 Guntas (as at 31 March, 2025: 553 Acres 34 Guntas ) at Amravati for which a

premium of '3,922.37 lakh was paid is taken on lease on 07/02/2014 with certain conditions attached to it. One of the main
condition is, if the factory building and works are not completed within 60 months from the date of allotment, unless the
time is extended, the lease agreement may be cancelled and the lessor may take possession of the leasehold land together
with all the erections, if any, on the said land, without paying any compensation to the company. At present the period of
investment has been extended upto 05.04.2019. The project for which the land has been taken on lease is under finalisation

with Ministry of Defence (MoD), the Company is pursuing for further extension of period of investment. Pending receipt of
extension of time period, the company has provided for impairment amounting to '3,217.83 lakh during 2021-22.

(c) Leasehold land measuring 183 hectares in Defence Industrial Corridor at Jhansi District is taken on lease from UPEIDA for
which an amount of '5,071.84 lakh was paid and capitalised along with registration charges. The lease term is 30 years with
two renewals of 30 years each aggregating to 90 years for an annual lease rent of '1.00 per annum.

Leasehold Building :

Corporate office building measuring 53,284 sq ft is taken on lease from APSFC from 01.06.2016 for a period of 10 years.

Company recognised the building under right of use assets (RoU) asset at a value of '998.91 lakh, a corresponding lease liability

of '972.01 lakh and a provision for an amount of '26.90 lakh towards asset retirement obligation on 01.04.2019 as per Ind AS 116.

Lease liability is recognised at the present value of lease payment discounted at the incremental borrowing rate of 8%.

- Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.

- Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company.

Significant Judgement:

1. Advanced Materials (Defence) Testing Foundation and Electronic Warfare (Defence) Testing Foundation are not-for-profit
companies registered under Section 8 of the Companies Act, 2013. These entities are not considered for preparation of
consolidated financial statements as the company does not have rights to variable returns from its involvement, other
than equity investment.

2. Investments in AP Gas Power Corporation Limited have been designated as fair value through profit and loss. Fair value
is considered based on Net worth of investee as the shares are unquoted and the company does not have a significant
influence in the investee. However, during 2021-22, APGPCL received an adverse arbitration award, the implementation of
which is likely to erode the networth of APGPCL. Accordingly Fair value of the investment is considered as 'Nil'.

Significant Judgement:

Deferred Debts:

Deferred debts are receivables from the Indian Army and Armoured Vehicles Nigam Limited (erstwhile Ordnance Factory). The
receivable is denominated in Indian Rupees (INR) and receivable in equal instalments over 45 years commencing from 01.04.1992.
As per the agreement, the receivable is adjusted on the basis of rates of Special Drawing Rights (SDR), issued by the International
Monetary Fund (IMF). As such the receivable does not satisfy the Solely Payment of Principal and Interest (SPPI) criteria as set
out in Ind AS 109. Hence, the receivable is measured at fair value through profit and loss. Deferred debt is discounted at 8% to
arrive at the fair value on initial recognition and the difference between the fair value and the total deferred debt is considered as
deferred expense. Subsequently this is carried at fair value through profit and loss.

Onerous contract:

Provision for onerous contract represents the loss assessed by the company on its executory sale contracts. Such loss will
be provided as and when the assessment is made, by the company during the course of execution / at the inception of such
contracts. The provision is reviewed periodically.

During the previous year, the Company's assessment of its customer contracts includes a specific contract aimed at gaining
exposure to the niche technology in the global defence industry This contract presents opportunities for the company to
become part of global supply chain partner of a leading defence manufacturer. These opportunities are not immediate and
are expected to materialise in the future. The company thus classified this contract as an onerous contract in accordance
with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets, and accordingly the company had recognised
additional provision of '2,279.80 lakh ('14,140.14 lakh during 2024-25).

Future charges:

Provision for future charges represents the estimated liability on account of revised ancillary/ packing material accepted
to be delivered in lieu of ancillary/ packing material originally stipulated in the contract terms for the sales effected earlier
and value of spares sent to forward location on user request for serviceability to avoid breakdown in emergency situations.

Note 38: General Notes:

Statement of Compliances:

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) [as notified under the section
133 of Companies Act, 2013 (the "Act") read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act.

38(1) Impact of Labour codes:

On 21 November 2025, the Government of India notified provisions of the Code on Wages 2019, the Industrial Relations
Code 2020,the Code on Social Security 2020 and the Occupational Safety, Health and Working conditions Code 2020,
which consolidates the existing 29 Labour laws into a unified framework governing employee benefits. The Company has
assessed the financial impact of these changes which has resulted in additional liability of '703.65 lakh. The company
continues to monitor the developments pertaining to labour codes and will evaluate the impact if any on the employee
benefits related liability.

38(3) Employment Benefit obligations
(i) Post-employment obligations- Gratuity

The company provides for gratuity for employees in India as per the payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity The amount of gratuity payable on retirement/termination is
the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years
of service. The gratuity plan is a funded plan and the Company makes contributions to a separate trust. The company does
not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of
expected gratuity payments.

Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Interest Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields
fall, the defined benefit obligation will tend to increase.

Salary Inflation Risk: Higher than expected increases in salary will increase the defined benefit obligation.

Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality
withdrawal, disability and retirement The effect of these decrements on the defined benefit obligation is not straight forward and
depends upon the combination of salary increase discount rate and vesting criteria. It is important not to overstate withdrawals
because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to
a long service employee.

(ii) Provident Fund

Provident Fund Trust of the Company has to declare interest on Provident Fund at a rate not less than that declared by the
Employees' Provident Fund Organisation. In case the Trust is not able to meet the interest liability, Company has to make good
the shortfall. This is a defined benefit plan and the Company has got the same acturially valued.

There is no interest shortfall of the provident fund trust for the current year and the previous year.

In view of the uncertainities regarding recoverability of certain instruments made by the PF Trust, during the year 2025-26 an
amount of '8.58 lakh has been created as provision ('415.15 lakh during 2024-25 has been reversed due to realisation of higher
amounts than the provision made earlier).

(iii) Compensated absences

The leave obligations cover the company's liability for earned leave. During the 2024-25, the company introduced a half-pay
leave w.e.f. 01 July, 2024. Accordingly the company has provided for an additional liability of '482.78 lakh during 2025-26
('461.59 lakh during 2024-25) related to Half-pay leave.

The company maintains a funded plan for the purpose of compensated absences. The company recognises the obligations net of
planned assets as per the actuarial valuation. A summary of employee benefit obligation and planned assets is presented below:

38(7) Details of short closed projects:

Out of the advances of '36,234.42 lakh (as at 31 March, 2025 '36,234.42 lakh) received from the customers, in respect of five
contracts/ indents and one LOI which are short closed, the Company has made payments to suppliers for procurement of
Special Tools and Equipment and Inventory. Against these payments, Special Tools and Equipment (Note 1) include an amount
of '114.05 lakh (as at 31 March, 2025 '114.05 lakh), Current Assets (Note 10-16) comprises an amount of '11,041.65 lakh (as at
31 March, 2025 '11,041.65 lakh) in Advances to vendors and '8,327.07 lakh (as at 31 March, 2025 '8,331.44 lakh) in Inventories,
total amounting to '19,482.77 lakh (as at 31 March, 2025 '19,489.55 lakh). As these assets had been acquired/expenditure had
been incurred by the company based on firm orders/ LOI and out of the funds provided by the customer, no loss devolves on
the company on account of long outstanding advances and non-moving Special Tools and Inventory. Hence, no provision is
considered necessary. Further, in respect of these short closed Indents/contracts/LOI, the company approached the customers
for compensation of '1,593.88 lakh (as at 31 March, 2025 '1,593.88 lakh) being the net amount of expenditure after adjustment
of the available advance. Hence, for want of finalisation of the amount from the Government/ Customers, no claim/ impact on
profit has been accounted in the books.

38(9) Capital Management

a) Risk management:

The Company has equity capital and other reserves attributable to shareholders as only source of capital and the company
doesn't have borrowings or debts.

Events occurring after the reporting period:

Refer above note for the final dividend recommended by the directors which is subject to the approval of shareholders in the
ensuing annual general meeting.

38(10) Confirmation of Balances:

Letters requesting Confirmation of Balances have been sent in respect of Debtors, Creditors, Claims Receivable, Materials
with Contractors / Sub-Contractors, Advances, Deposits and others. Based on the replies wherever received, reconciliations /
provisions / adjustments are made as considered necessary.

38(11) Retention Sales:

The value of the retention sales (i.e., goods retained with the company at the customers' request and at their risk) included
in gross turnover during the year is '69,509.21 lakh ('1,66,624.90 lakh during the year 2024-25). In respect of these sales,
though the contracts are on FOR or FOR-destination basis, the customer has allowed the company to recognise a sale and
hold the material.

38(12) Charges registered:

Company has registered floating charge with State Bank of India and Union Bank of India to the extent of '61,500.00 lakh (as at
31 March, 2025 '61,500.00 lakh) on current assets.

38(13) Operating Cycle:

As per the requirement of Schedule III to the Companies Act, 2013, the operating cycle has been determined at the product
level as applicable.

Fair value hierarchy:

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market
is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more
of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed
instruments where market is not liquid and for unlisted instruments.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

» The fair value of unquoted equity instrument are determined with respect to the net worth of the company.

» During the year 2021-22, APGPCL i.e., the company in which BDL had invested in equity, received an adverse arbitration
award. The implementation of which is likely to erode the networth of APGPCL. Accordingly Fair value of the investment is
considered as 'Nil'.

» The fair value of 45 years deferred credit and receivables is determined using foreign exchange rates as per the contract.
The resulting fair value estimates are included in level 3.

Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 items for the year ended 31 March 2026:

38(16) Financial Risk Management:

The Company's activities expose it to market risk, liquidity risk and credit risk. The analysis of each risk is as follows:

A) Credit risk

Credit risk arises from cash and cash equivalents, instruments carried at amortised cost and deposits with banks, as well as
credit exposures to customers including outstanding receivables.

(i) Credit risk management

A. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks with high credit
ratings assigned by external agencies.

(iv) Significant estimates and judgements:

Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected
loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on the company's past history, existing market conditions as well as forward looking estimates at the end of each
reporting period.

B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when
due and to close out market positions. Company's treasury maintains flexibility in funding by maintaining availability under
deposits in banks.

Management monitors cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The company has access to the following undrawn borrowing facilities at the end of the reporting period:

C) Market risk

(i) Foreign currency risk

The company operates in a business that exposes it to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD, Euro, GBP, CHF and SEK. Foreign exchange risk arises from future commercial transactions and
recognised liabilities denominated in a currency that is not the company's functional currency (INR). The risk is measured through
a forecast of highly probable foreign currency cash flows. The company is eligible for exchange rate variation upon settlement
of foreign exchange liabilities for most of the sales contracts. Hence, the company is protected against the foreign currency risk.

38(19) Grant for Solar Plant:

The Company has implemented two Solar Plants of 5 MW each under Jawaharlal Nehru National Solar Mission (JNNSM) Scheme.

Viability Gap Fund (VGF) is accounted based on project cost as per the contracts. An amount of '1,545.89 lakh is accounted

as VGF and disclosed under Deferred Revenue (Note No. 22) in the books of the Company. Deferred Revenue @4% p.a.

amounting '61.83 lakh is recognised as from Solar Plant.

38(20) Disclosures under Ind AS 115: Revenue from contracts with customers

A Satisfaction of performance obligation

i. I n majority of the contract performance obligation is satisfied "at a point in time" which is primarily determined on
customer obtaining control of the asset. Performance obligation in respect of contract involving supply , Installation
and commissioning of complex system is recognised "over a period of time"

ii. Under "Bill and hold" arrangement performance obligation is satisfied on unconditional appropriation of the goods to
the contract on acceptance by the customer.

iii. Company's Contract normally do not contain significant financial component and any advance payment received and
/or amount retained by customer is with intention of protecting either parties to the contract.

iv. Variable consideration primarily consist of amount receivable/reimbursable against foreign exchange variation clause

and liquidated damages. The amount of revenue recognised in respect of the same is determined based on the

methodology specified in the contract . The amount is recognised as revenue based on contractual terms.

v. The company's turnover mainly includes supply of missiles and allied defence equipments.

vi. Warranties provided are primarily in the nature of performance warranty.

vii. The company normally uses the input method to recognise revenue is respect of contracts in which performance
obligation are satisfied over a period of time. For arriving at the quantum of revenue to be recognised the percentage
of completion method is adopted where in the percentage of actual cost incurred to total estimated cost is applied
to the contract price for arriving at the quantum of revenue to be recognised. The company's contract (other than
AMC) in respect of which revenue is recognised over a period of time typically involves multiple activities of different
nature like construction of building, supply and installation of equipments etc. Due to this it is not possible to quantify
in physical terms the quantum of work done (i.e., output) reliably . Where as, under input method , the cost incurred in
respect of these varied activities can be captured and compared to the total estimated cost to be incurred (which can
be estimated reliably), for arriving at the percentage of completion. In case of AMC contracts, output method is used
to recognise revenue where passage of time is the criteria for satisfaction of performance obligation .

viii. For revenue recognition in respect of performance obligation satisfied at a "point in time" the following criteria is used
for determining whether customer has obtained " Control on asset "

» Terms of delivery as per the contract

» Customer has legal title to the asset

» The entity has transferred physical possession of the asset
» Customer has accepted the asset
» Entity has the present right to payment for the asset

ix. Transaction price is typically determined based on contract entered into with customer. Allocation of transaction price
in respect to multiple obligations is based on relative standalone selling price which is arrived at based on the latest
contract available for similar item sold.

Advance received from customer are classified as contract liability and Progressively adjusted on completion of performance
obligation .Balance amount receivable after adjusting advance is classified as Trade Receivable.

Compensation accrued to the company upon satisfaction of the performance obligation but is not due as payment milestones
are not achieved is recognised as "Contract Asset”. Such balances are transferred to Trade receivable, when payment
milestones are achieved

B The fair value of investment property is not based on the valuation by a registered valuer as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017. However, the same is being calculated as per the records of
Registration Department of State Government.

C Company has not revalued any of its Property Plant and Equipment or Intangible Assets during the current reporting
period.

D Company has not granted any Loans or Advances in the nature of loans to any of its promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

H There are no proceedings initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

I Company has no borrowings from banks or financial institutions on the basis of security of current assets. Company is not
declared wilful defaulter by any bank or financial Institution or other lender.

J Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.

K Company has no charges or satisfaction yet to be registered with ROC beyond the statutory period.

38(22) There are no transaction which are not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

38(23) Corporate Social Responsibility (CSR):
38(24) Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

38(25) These financial statements are presented in Indian Rupees (rounded off to lakh), except when otherwise indicated.
Previous year figures have been regrouped or rearranged wherever necessary. Negative figures are indicated in parenthesis.

Material accounting policy information and accompanying notes form an integral part of the Financial Statements