viii) Provisions and Contingent Liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a
result of past events. It is possible that an outflow of resources will be required to settle the obligation
and the amount can be reliably estimated.

Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the end of the reporting period.

Contingent liabilities are disclosed by way of Notes to Balance Sheet. Provision is made in the
accounts in respect of liabilities which are acknowledged by the company and which have material
effect on the position stated in the balance sheet.

xi) Impairment of non-financial assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine
whether there is any indication that the assets suffered any impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to determine the extent of
impairment of loss. Recoverable amount is higher of the assets net selling price and value in use. In

assessing value in use, estimated future cash flows expected from the continuing use of the assets
and from its disposal are discounted to their present value using a pretax discount rate that reflects the
current market assessment of time value of money and the risks specific to the assets.

ix) Taxes on Income including Deferred Tax

Current tax is determined as the amount of tax payable in respect of income for the period. Deferred
tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing
differences, being the difference between the taxable income and accounting income that originate in
one year and are capable of reversal in one or more year. Deferred tax assets are not recognized
unless there is a sufficient assurance with respect to its reversal in future years.

xi) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete
and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale.

xii) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method less provision for impairment.

xiiijCash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash in hand and other bank balances.

xiv) Government Grant

Government Grant received toward specific fixed assets have been deducted from the gross value of
concerned fixed assets and grant received during the year towards revenue expenditure have been
reduced from respective expenses or shown as other income.

xv) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, short term compensated absence and ex-gratia including 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 benefits
obligations in the balance sheet.

Leave encashment - provision for Leave encashment is accounted and provided for at the end of
the financial year.

(ii) Post-employment obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity 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 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
expenses in the statement of profit or loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.

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.

(iii) Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per
local regulations. The Company has not further payment obligations once the contributions have
been paid.

xvi) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within the credit
period allowed. Trade and other payables are presented as current liabilities.

xvii) Earnings per share

Basic and diluted earnings per share

Basic and diluted 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.

For and on behalf of the Board of Directors

For Nanda & Bhatia
Chartered Accountants,

(Firm Registration No.004342N)
(A. C. Bhatia)

(Ashwani Dhawan ) (Aayush Dhawan) Partner

Mg.Director Director M.No.013791

DIN:00264986 DIN:00277485

(Jyoti Parihar)

Company Secretary (H.R.Dhawan)

& Compliance Officer) Chief Financial Officer

Place: Ludhiana
Date : 30.05.2025