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.

x) 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.

xiii) Cash 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 : 30.05.2024