xi) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will
be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received
and the amount of the receivable can be measured
reliably.

Onerous Contracts

Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist where the Company
has a contract under which the unavoidable costs of
meeting the obligations under the contract exceed the
economic benefits expected to be received from the
contract.

Contingent liability is disclosed for (i) Possible

obligations that arises from past events and whose
existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events
not wholly within the control of the Company or (ii)
Present obligations arising from past events where it
is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made, unless
the possibility of outflows of resources embodying
economic benefits are remote.

xii) Revenue recognition

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation.

The Company applies the five-step approach for
recognition of revenue:-

• Identification of contract(s) with customers;

• Identification of the separate performance
obligations in the contract;

• Determination of transaction price;

• Allocation of transaction price to the separate
performance obligations; and

• Recognition of revenue when (or as) each
performance obligation is satisfied.

1 Sale of goods:

Further recognition is done when the amount
of revenue can be measured reliably and it is
probable that the economic benefits associated
with the transaction will flow to the entity.

The transaction price of goods sold and services
rendered is net of variable consideration on
account of various discounts and schemes
offered by the Company as part of the contract.

A receivable is recognised when the goods
are delivered as this is the point in time that
the consideration is unconditional because
only the passage of time is required before the
payment is due.

At contract inception, since for most of the
contracts it is expected that the period between
the transfer of the promised goods or services
to a customer and payment for these goods or
services by the customer will be one year or
less, practical expedient in IND AS 115 have
been applied and accordingly:

a) The Company does not adjust the
promised amount of consideration for
the effects of a significant financing
component

b) The Company recognises the

incremental costs of obtaining a
contract as an expense when incurred

c) No information on remaining

performance obligations as of the year
end that have an expected original term
of one year or less was reported.

A contract liability is the Company’s obligation
to transfer goods or services to a customer,
for which the Company has already received
consideration from customers.

2 Sale of Services:

Income from other services is recognised as
and when the services are performed as per the
terms of agreement with the respective parties.

3 Interest and Dividend Income:

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the amortised cost and at
the effective interest rate applicable.

Dividend income from investments is
recognised when the shareholder’s right
to receive payment has been established
(provided that it is probable that the economic
benefits will flow to the Company and the
amount of income can be measured reliably).

4 Export Incentives:

Income from export incentives is recognised
on accrual basis to the extent the ultimate
realisation is reasonably certain.

xiii) Foreign currency transactions and balances

In preparing the financial statements of the Company,
transactions in currencies other than the Company’s
functional currency viz. Indian Rupee are recognised
at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date.

Exchange differences on monetary items are
recognised in the Statement of Profit and Loss in the
period in which they arise.

Non-monetary items that are measured in terms
of historical costs in a foreign currency are not
retranslated.

xiv) Lease accounting
As a lessee:

Leases are recognized as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Company. Contracts
may contain both lease and non lease components.
The Company allocates the consideration in the
contracts to the lease and non-lease components based
on their relative standalone prices. However, the
Company has elected not to separate lease and non¬
lease components and instead account for these as a
single lease components.

Assets and liabilities arising from a lease are initially
measured on present value basis. Lease liabilities
include the net present value of the following lease
payments:

- fixed payments (including in substances fixed
payments), less any lease incentive receivable

- variable lease payments that depend on an
index or a rate,initially measured using the
index or rate as at the commencement date;

- any residual value guarantees provided to
the lessor by the lessee, a party related to the
lessee or a third party unrelated to the lessor
that is financially capable of discharging the
obligations under the guarantee;

- the exercise price of the purchase option if the
Company is reasonably certain to exercise that
option, and

- payments of penalties for terminating the
lease, if the lease term reflects the Company
exercising that option

Lease payments to be made under reasonably certain
extension option are also included in the measurement
of the liability. The lease payments are discounted
using the lessee’s incremental borrowing rate, being
the rate that lessee would have to pay to borrow the
fund necessary to obtain an asset of similar value to the
right-of-use asset in a similar economic environment
with similar term, security and conditions.

To determine the incremental borrowing rate, the
Company:

- where possible, uses recent third party
financing received by the lessee as a starting
point, adjusted to reflects changes in financing
condition since third party financing received

- use a build-up approach that starts with the
risk-free interest rate adjusted for credit risk
for leases, which does not have recent third
party financing, and

- make adjustments specific to the leases, e.g.
term, security, currency etc.

The Company is exposed to potential future increases
in variable lease payments based on index or rate,
which are not included in the lease liability until
they take effect. When adjustment to lease payments
based on index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and
finance cost. Finance cost is charged to Statement of
Profit and Loss over the lease period so as to produce
a constant periodical rate of interest on the remaining
balance of the liability for each period.

Right-of-use assets are measured at cost comprising
the following:

- the amount of initial measurement of lease
liability

- any lease payments made at or before the
commencement date less any lease incentives
received

- any initial direct costs, and

- restoration costs

Right-of-use assets are generally depreciated over the
shorter of the asset’s useful life and the lease term on
a straight line basis. If the Company is reasonably
certain to exercise purchase option, the right-of-use
asset is depreciated over the underlying asset’s useful
life.

Payments associated with short-term leases of
equipment and all leases of low-value assets are
recognized on a straight-line basis in the Statement of
Profit and Loss. Short term leases are leases with a
lease term of 12 months or less.

As a lessor:

Lease income from operating leases where the
Company is a lessor is recognized in income on a
straight line basis over the lease term. Initial direct
costs incurred in obtaining an operating leases are
added to the carrying amount of the underlying
asset and recognized as expense over the lease term
on the same basis as lease income. The respective
leased assets are included in the balance sheet based
on their nature. The Company did not need to make
any adjustments to the accounting for assets held as a
lessor as a result of adopting the new leasing standard.

xv) Taxes on Income

Tax expense for the year, comprising current tax and
deferred tax, are included in the determination of the
net profit or loss for the year. Current tax is measured
at the amount expected to be paid to the tax authorities
in accordance with the Income Tax Act, 1961.

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for
all taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised
if the temporary difference arises from the initial
recognition (other than in a business combination)
of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
In addition, deferred tax liabilities are not recognised
if the temporary difference arises from the initial
recognition of goodwill.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting
period.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority. Current
tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

Current and deferred tax are recognised in the
Statment of Profit and Loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in equity
respectively. The Company recognises Minimum
Alternate Tax credit under the Income Tax Act,
1961 as an asset only when and to the extent there is
convincing evidence that the Company will be liable
to pay normal income tax during the specified period.

xvi) Borrowing Costs

Borrowing costs that are attributable to the acquisition
or construction of qualifying assets, which are assets
that necessarily takes a substantial period of time to
get ready for its intended use or sale, are added to the
cost of those assets; until such time as the assets are
substantially ready for their intended use or sale.

Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.

All other borrowing costs are recognised in the
Statement of Profit and Loss in the period in which
they are incurred.

xvii) Segment Reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenue and incur expenses, whose operating
results are regularly reviewed by the Company’s
chief operating decision maker in order to effectively
allocate the Company’s resources and assess
performance.

xviii) Non-current assets held for sale

Non-current assets and disposal groups are classified
as held for sale if their carrying amount will be
recovered principally through a sale transaction
rather than through continuing use. This condition
is regarded as met only when the asset (or disposal
group) is available for immediate sale in its present
condition subject only to terms that are usual and
customary for sales of such asset (or disposal group)
and its sale is highly probable. Management must be
committed to the sale, which should be expected to
qualify for recognition as a completed sale within one
year from the date of classification.

Non-current assets (and disposal groups) classified
as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell.

Non-current assets are not depreciated or amortised
while they are classified as held for sale.

xix) Cash and cash equivalents

For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with
original maturities of three months or less that are
readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in
value, and bank overdrafts. Bank overdrafts are shown
within borrowings in current liabilities in the Balance
Sheet.

xx) Dividend

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.

less than expected, a material impairment loss
may arise.

iv) Impairment of Trade Receivables

The impairment provisions for trade receivables
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.

v) Impairment/ Obsolence of Invetory

The impairement/obsolence provisions of inventory
are based on assumptions of its consumption/usage
in near future whether short term of long term.
The Company uses its judgement in making these
assumptions and selecting the inputs based on the past
historical data, present and future market condition
estimated at the end of each reporting period.

vi) Defined Benefit Obligations

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

Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is
probable that taxable profits will be available against
which those deductible temporary differences can be
utilised. The carrying amount of deferred tax assets
is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all
or part of the asset to be recovered. The Company
recognises Minimum Alternate Tax credit under the
Income Tax Act, 1961 as an asset only when and to the
extent there is convincing evidence that the Company
will be liable to pay normal income tax during the
specified period.

2C. ADOPTION OF NEW AND AMENDED INDIAN
ACCOUNTING STANDARDS

i) New amendments issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
March 31, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116
- Leases, relating to sale and leaseback transactions,
applicable w.e.f. April 1, 2024. The company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

31. Employee Benefits :

Brief description of the Plans:

The Company has various schemes for long term employees benefits such as Provident Fund, Gratuity, Employees State Insurance
Fund (ESIC) and Employees’ Pension Scheme and Compensated absences. The Company’s defined contribution plans are Employees
State Insurance Fund,Provident Fund, and Employees’ Pension Scheme (under the provisions of the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans. The
Company’s defined benefit plans include Gratuity.

Gratuity

The Company provides for gratuity payable to 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. The company having a plan to retain gratuity fund seperately in future.The Company accounts for
gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year using the
Projected Unit Credit method.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows
arising from the employee benefit obligations, with the objective that assets of the gratuity / provident fund obligations match the
benefit payments as they fall due.

Provident Fund

The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident fund, in which both
the employees and the Company make monthly contributions at a specified percentage as applicable of the employees’ eligible salary.
The contributions are made to the Employees provident fund department.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants
both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an
increase in the salary of the plan participants will increase the plan’s liability.

The above sensitivity analysis are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to
significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant
factors, such as supply and demand in the employment market.

L. The liability for Compensated is net of fund balance at year end is ' Nil (Previousyear ' 178.80 Lakhs) (Refer Note 15).

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave
subject to certain limits for future encashment / availment. The Company makes provision for compensated absences based on an actuarial
valuation carried out at the end of the year using the Projected Unit Credit method. Leave obligations not expected to be settled in the next
12 months is ' Nil (Previousyear ' 123.83 Lakhs).

32 Leases

Lessee accounting

(i) Amounts recognized in Balance Sheet

The balance sheet shows the following amounts relating to leases:

During the year, Pursuent to scheme of arrangement the old lease agreements terminated and new agreements are entered into consequently.
the difference between the carrying amounts of the right-of-use asset and the lease liability recorded in the statement of profit or loss as a
gain or loss and such gain shown under other income.

(iv) Critical judgements in determining the lease term

In determining the lease term, management considers all facts and circumstances that creates an economic incentive to exercise an extension
option, or not to exercise a termination option. Extension option (or period after termination option) are only included in the lease term if the
lease is reasonably certain to be extended (or not terminated). The majority of extension and termination options held are exercisable only by
the Company and not by the respective lessor.

For the leases of offices premises, the following factors are normally the most relevant:

1. If there is significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

2. If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to
extend (or not terminate)

3. Otherwise, the Company considers the other factors including historical lease duration and the costs and business disruption required
to replace the leased asset.

The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise it. The
assessment of reasonably certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this
assessment, and that is within control of lessee.

33. Financial Instruments

33.1 Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders
through the optimisation of the debt and equity balance. The capital structure of the Company consists of total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic
investment plans. The funding requirements are met through non convertible debt securities or other long-term /short-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.

* Reasons tor Variances are only provided tor the change in the ratios by more than 25% as compared to the ratios ot Previous year.

# The figures indicated in the column are not comparable and do not offer a correct representation of the variances as the figures for
31-03-2023 were with no operation and hence eaither zero of minimal.

33.3 Market Risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

33.4 Price risks

The Company is mainly exposed to the price risk due to its investment in mutual funds. In order to manage its price risk arising from
investment in mutual funds, the Company diversifies its portfolio based on past performance. The impact of price risk with respect to
investment in mutual fund is insignificant.

33.5 Credit risk management
Trade receivables

Trade receivables are generally unsecured and are derived from revenue earned from customers. On account of adoption of Ind AS 109, the
Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward-looking
information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance
for trade receivables. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the
credit risk is perceived to be low.

Other Financial assets

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are mutual funds and banks with
high credit-ratings assigned by credit-rating agencies.

33.6 Liquidity Risk

Liquidity Risk refers to insufficiency of funds to meet the financial obligations. Liquidity Risk Management implies maintenance of sufficient cash
and marketable securities and the availability of funding through an adequate amount of committed credit lines to meet obligations when due.

The Company manages liquidity risk by banking facilities and by continuously monitoring forecast and actual cash flows, and by assessing the
maturity profiles of financial assets and liabilities. The below table sets out details of additional undrawn facilities that the Company has at its
disposal to further reduce liquidity risk.

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods.
The tables have been drawn up based on the earliest date on which the Company can be required to pay. The tables include both principal and interest
cash flows.

38. Segment reporting: The Ind AS 108, ‘Operating segments,’ notified pursuant to Companies (Accounting Standards) Rules, 2015,
requires management to determine the reportable segments for disclosure in financial statements based on internal reporting reviewed
by the Chief Operating Decision Maker (CODM) to assess performance and allocate resources. The company manufactures precision
cutting tools and related components. Based on management analysis, the company has only one operating segment, so no separate
segment report is provided. The principal geographical area in which the company operates is India.

39. Scheme of Arrangement

The Board of Directors of Forbes Precision Tools and Machine Parts Limited (“FPTL” or the “Resulting Company”) and Forbes &
Company Limited (FCL or the “Demerged Company) in their respective meetings held on 26^th September 2022, approved the Scheme
of Arrangement (“Scheme”) between FCL and FPTL, as well as their respective shareholders, in accordance with Sections 230 to
232 of the Companies Act, 2013, and other applicable provisions and rules. This Scheme entails the demerger of the “Precision Tools
business” from FCL into FPTL, with an appointed date of 1^st April 2023.

The Honorable National Company Law Tribunal (“NCLT”) of the Mumbai bench approved the scheme via Order No. C.P.(CAA)/303/
MB-V/2023 dated 9^th February 2024. The certified true copy of the order was received on 22^nd February 2024 and filed with the
Registrar of the Company on 1^st March 2024. The Scheme became effective / operative from the effective date of March 1, 2024, with
this, the Precision Tools business of FCL being transferred to and vested in FPTL with effect from the appointed date i.e., April 1,
2023.

Upon the coming into effect of the Scheme, the existing share capital of FPTL, amounting to ?5.00 lakhs divided into 50,000 shares
of ?10 each, fully paid up, held by the shareholders of the Demerged Company, prior to the Scheme becoming effective, shall stand
cancelled without any further application, act, instrument, or deed, as an integral part of this Scheme, with adjustments done through
Capital reserve of the Company. As per the Scheme of Arrangement, the Resulting company has issued four fully paid-up equity
shares of ? 10/- each for every one fully paid-up equity share of ? 10/- each held by the equity shareholders of the Demerged Company
(FCL) as of the Record Date, which was 7^th March 2024. The shareholders of FCL are entitled to receive 4 shares of FPTL against
each share held by them. Accordingly, the paid-up capital of FPTL is determined as 5,15,94,464 shares of ? 10 each, having a total
value of ? 5,159.45 Lakhs. The record date for allotment was fixed as 7^th March 2024, and the issuance and allotment of equity shares
took place on 13^th March 2024.

As per Para 12 of Appendix C of IND AS 103, the diffrerence between Paid up share capital of FCL ? 1289.96 Lakhs and Paid
up share capital issued by FPTL amounting to ?5159.45 Lakhs in terms of scheme of arrangement is considered as negative capital
reserve amounting ? 3869.59 Lakhs. The pre-merger equity share capital of ? 5 lakhs of FPTL is cancelled and adjusted against the
capital reserve.

From the appointed date, the precision tools business of FCL, including all its assets and liabilities is transferred and vested to FPTL in
accordance with this Scheme, Consequently, the deferred tax liability related to those assets and liabilities will be remeasured and will
result in a direct charge of ? 234.44 Lakhs to the opening balance of retained earnings of FPTL. Moreover, for the period from April
1, 2023, to March 31, 2024, the incremental deferred tax liability amounting to ' 2.33 Lakhs debited to the Profit and Loss account.

The financial statement of the Company reflects the financial position on the basis of consistent accounting policies.

40. The Scheme of Arrangement for the demerger of the “Precision Tools business” from Forbes & Company Limited (FCL) to the
Company has received approval from The Hon’ble National Company Law Tribunal (“NCLT”) of Mumbai benches through Order
No. C.P.(CAA)/303/MB-V/2023 dated February 9, 2024, Mumbai Bench. The certified true copy of the order was filed with the
Registrar of the Company on March 1, 2024, and the Scheme became operative as of March 1, 2024.

Consequently, the Precision Tools business of FCL has been transferred to and vested in the Company with effect from the appointed
date, i.e., April 1,2023. All transactions previously recorded in Forbes & Company Limited pertaining to the Precision Tools business
have been transferred to the Company as of the effective date, March 1, 2024.

41. The Indian Parliament has approved the Code on Social Security, 2020 (“the code”) which, inter alia, deals with employees benefits
during employment and post-employment. The code has been published in the Gazette of India. The effective date of the code is yet
to be notified and the rules for quantifying the financial impact are also yet to be issued. In view of this, the impact of change, if any,
will be assessed and recognised post notification of the relevant provisions.

42. Additional Regulatory Information as per Schedule III of the Division II of the Companies Act, 2013

i Details of Benami property held

There are not any proceedings that have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder as at 31^st March, 2025.

ii Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial Institution or other lender who has powers to
declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the
date when financial statements are approved or in an earlier period and the default has continued for the whole or part of the
current year.

iii Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

iv The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013
read with Companies (Restriction on number of Layers) Rules, 2017.

v (a) The company has not advanced or loaned or invested any funds (either borrowed funds or share premium or any other

sources or kind of funds)during the year to any other person(s) or entity(ies), including foreign entities (intermediaries)
with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (ultimate beneficiaries) or,

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(b) The company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party)
during the year with the understanding (whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

vi Undisclosed income

The company does not have any transaction that 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 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961), during the year.

vii Details of crypto currency or virtual currency

The group has not traded or invested in crypto currency or virtual currency during the current or previous year.

viii Valuation of PP&E, intangible asset and investment property

The group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during
the current or previous year.

43. Other regulatory information

i Registration of charges or satisfaction with Registrar of Companies

During the year, The title of Waluj property has been transferred in the name of the company. However, the creation of charge
for DCB Bank ECLGS 2.0 Term Loan is in process. “

ii Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which
such loans were was taken.

iii The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

The Group has seven unregistered CICs which are part of the Group

1. SP Finance Private Limited,

2. SC Finance and Investments Private Limited,

3. Hermes Commerce Private Limited,

4. Renaissance Commerce Private Limited,

5. Shapoorji Pallonji Energy Private Limited (formarly known as Shapoorji Pallonji Oil and Gas Private Limited)
(applied for the same to RBI),

6. SMCM Holdings Private Limited and

7. Shayrus Ventures Private Limited

44. Previous period figures have been re-classified/ re-arranged/ regrouped, wherever necessary, to correspond with the current period’s
classification/ disclosure.

45. The Company has used accounting software (viz. SAP) for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further,
there are no instances of audit trail feature being disabled at any time during the year.

46. The financial statements were approved by the Board of Directors of the Company at their respective meetings held on
24^th April, 2025.

In terms of our report of even date

For Sharp & Tannan Associates For and on behalf of the Board of Directors

Chartered Accountants M.C. TAHTLYANT JAI L. MAVANI

Firm's Registration No.: 109983W Managing Director Director

DIN : 01423084 DIN : 05260191

Parthiv S. Desai VIKRAM V. NAGAR RUPA KHANNA

Partner Chief Financial Officer Company Secretary

Membership No.: 042624 Membership No : A33322

Date: Apr. 24, 2025 Date: Apr. 24, 2025

Place: Mumbai Place: Mumbai