m) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values,
where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company
or

• 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.
Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain,
related asset is disclosed.

n) Financial instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.
Subsequent measurement of financial assets and financial liabilities is described below.

Non-derivative financial assets
Subsequent measurement

i. A Financial assets carried at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal

and interest (SPPI) on the principal amount outstanding.

• After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in interest income in the Statement of Profit and Loss

ii. Investments in equity instruments

Investments in equity instruments which are held for trading are classified as at fair value through profit or loss
(FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on
an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not
subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within
equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

iii. Investments in mutual funds/venture capital funds/alternative investment funds (AIF) - Investments in
mutual funds, venture capital funds and AIF are measured at fair value through profit and loss (FVTPL).

iv. Investments held for trading purposes - The Company has investments in equity instruments, mutual funds,
debentures, real estate properties, bonds etc. which are held for trading purposes and therefore, classified as at
fair value through profit or loss (FVTPL).

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are
derecognised (i.e. removed from the Company's balance sheet) when the contractual rights to receive the cash flows
from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are
transferred. Further, if the Company has not retained control, it shall also derecognise the financial asset and recognise
separately as assets or liabilities any rights and obligations created or retained in the transfer.

Non-derivative financial liabilities
Subsequent measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the
effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

o) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for
events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost
associated) for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Segment reporting

The Company identifies segment basis the internal organization and management structure. The operating
segments are the segments for which separate financial information is available and for which operating profit/loss
amounts are regularly by the executive committee ('chief operating decision maker') in deciding how to allocate
resources and in assessing performance. 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 with the operating activities of the
segment.

q) Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related
disclosures. Actual results may differ from these estimates.

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal factors which could result in deterioration of
recoverable amount of the assets.

Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects,
the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the
actual future outcome may be different from this judgement.

Significant Estimates

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of
depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in
these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of underlying
assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit
expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available). This involves developing estimates and assumptions
consistent with how market participants would price the instrument.

21.1 General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier
provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

21.2 Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.

21.3 Retained earnings

All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

21.4 Reserve Fund u/s 45-IC of RBI Act 1934

The Company creates a reserve fund in accordance with the provisions of section 45-IC of the Reserve Bank of India Act,
1934 and transfers therein an amount of euqal to/more than twenty percent of its net profit of the year, before declaration of
dividend. Accordingly, during the year, the Company has created Statutary Reserve Fund amounting to Rs. 610 Lakhs.

21.5 Other comprehensive income

(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVOCI reserve within equity. The Group transfers
amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(ii) The Company has recognised remeasurements of defined benefits plans through other comprehensive income.

Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3)

(A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily
available quoted price in the market.

(B) Investment in Unquoted Equity Investments - Level 3 - the Company has used earning capitalisation method (fair value
approach) discounted at a rate to reflect the risk involved in the business.

(C) Investment in Mutual funds - Level 1 - Investment in mutual funds are measured at their readily available net asset value (NAV)
(per unit) in the market.

(D) Investment in Venture Capital Funds and Alternative Investment Funds Level 3 - Investment in venture capital funds and
alternative investment funds are measured at their fair value as per the Net Asset Value (NAV) Certificate shared by the
fund/investee party.

Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the Company's financial statements. These fair values were calculated for disclosure
purposes only. The below methodologies and assumptions relate only to the instruments in the above tables:

Financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are
net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, balances other
than cash and cash equivalents, loans, trade payables, short term borrowings, inter company loan and contract liability without a
specific maturity.

Investments measured at amortised cost

Investments which are carried at amortised cost represents investments in debt instruments including non convertible preference
shares. The fair values of such investments are determined using rates available in the market.

43 Financial risk management
i) Risk Management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall
responsibility for the establishment and oversight of the Company risk management framework. The Company's risk are
managed by a treasury department under policies approved by the board of directors. The board of directors provides written
principles for overall risk management. This note explains the sources of risk which the entity is exposed to and how the entity
manages the risk and the related impact in the financial statements.

In order to avoid excessive concentrations of risk, the Group's policies and procedures include specific guidelines to focus on
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is
influenced mainly by cash and cash equivalents, other bank balances, investments, loan assets, trade receivables and other
financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this
information into its credit risk controls.
a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for
each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class
of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

The company provides for expected credit loss based on the following:

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying
bank deposits and accounts in different banks across the country.

Trade receivables

Trade receivables measured at amortized cost and credit risk related to these are managed by monitoring the recoverability of such
amounts continuously.

Loans

Credit risk related to borrower's are mitigated by considering collateral's/bank guarantees/letter of credit, from borrower's. The
Company closely monitors the credit-worthiness of the borrower's through internal systems and project appraisal process to assess
the credit risk and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include
a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company
assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to
have occurred when amounts receivable become one year past due.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits, insurance claim
receivables and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously.

b) Credit risk exposure

i) Expected credit losses for financial assets other than loans

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments

for expectation of any credit losses:

- For cash and cash equivalents and other bank balances - Since the Company deals with only high-rated banks and
financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is
evaluated as very low.

- For investments - Considering the investments are in equity shares, mutual funds, and government securities, credit risk is
considered low.

- For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the
underlying asset.

- For other financial assets - Credit risk is evaluated based on Company's knowledge of the credit worthiness of those parties
and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime
expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based
impairment recognised on such assets considering their low credit risk nature, though the reconciliation of expected credit
loss for all sub categories of financial assets (other than loans) are disclosed below:

ii) Expected credit loss for loans

The Company follows a 'three-stage' model for impairment based on changes in credit quality since initial recognition as
summarised below:

A financial instrument that is not credit-impaired on initial recognition is classified in 'Stage 1' and has its credit risk continuously
monitored by the Company i.e. the default in repayment is within the range of 0 to 30 days.

If a significant increase in credit risk ('SICR') since initial recognition is identified, the financial instrument is moved to 'Stage 2'
but is not yet deemed to be credit-impaired i.e. the default in repayment is within the range of 31 to 90 days.

If the financial instrument is credit-impaired, the financial instrument is then moved to 'Stage 3' i.e. the default in repayment is
more than 90 days.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage
3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss Given Default.

Forward-looking economic information (including management overlay) is included in determining the 12-month and lifetime
PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

The Company maintains felxibility in funding by maintaining availability under committed credit lines. Management monitors the
Company's liquidity positions (also comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of
expected cash flows. The Company also takes into account liquidity of the market in which the entity operates.

44. Capital management

The Company's capital management objectives are

- to ensure the Company's ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the
face of balance sheet.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while
avoiding excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The
Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

46. GENERAL

i) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at
least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

ii) The Ministry of Corporate Affairs has issued Indian Accounting Standard(Ind AS) - 36 on impairment of assets. In accordance
with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on
Balance Sheet Date, whether there are any indications (listed in paragraph 12 to 14 of the standards)m with regards t the
impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and
therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the
books of accounts.

49. Mr. Dinesh Oswal, Managing Director has been paid remuneration from 1st April 2024 to 31st March 2025 as per Shareholders approval
vide their Special Resolutions dated 29th September 2021 and 25th September 2024 under section 197 read with Schedule V of the
Companies Act, 2013.

50. Company had invested Rs. 2.00 Crore in Rated, Listed and Secured, Cumulative, redeemable Debentures of ATS Infrabuild Pvt. Ltd.
(“ATS”) in 27-06-2018, being maturity in June 2022, later extended till June 2024. The borrower had paid the interest yearly on time, but
from June 2023 onwards borrower has defaulted in interest payment. The debenture trustee is resorting to all legal action available to
recover the amounts.

Keeping above facts in view, our company has not provided for interest accrued/receivable from June 2023 and also a provision of 20%
of value has been made in books of accounts.

For Gupta Vigg & Company For and on behalf of

Chartered Accountants Nahar Capital And Financial Services Limited

FRN 001393N

Vinod Khanna Anjali Modgil Hans Raj Kapoor S.K. Sharma Dinesh Oswal

Partner Company Secretary Chief Financial Officer Director Managing Director

M.No. 81585 M.No. FCS9650 DIN : 00402712 DIN : 00607290

Place : Ludhiana

Date : 28th May 2025

UDIN : 25081585BMLDYR9287