Nature and purpose of Reserve

a)    Securities Premium Reserve is used to record the premium on issue of shares. The reserve can be utilised only for Limited purpose such as issunace of bonus shares in accordnace with the provisions of the Companies Act, 2013.

b)    The retianed earnings represents the accumulation of net undistributed profit for every year.

c)    A capital reserve is a line item in the equity section of a company's balance sheet that indicates the cash on hand that can be used for future expenses or to offset any capital losses. It is derived from the accumulated capital surplus of a company and is created out of its profit.

d)    General reserve is referred to as the reserve fund that is created by keeping aside a part of profit earned by the business during the course of an accounting period for fulfilling various business needs like meeting contingencies,

offsetting future losses, enhancing the working capital, paying dividends .

1.    Weighing Scale & Generator has been Merged with Plant & Machinery and Electric Installation with Furniture & Fixture

2.    None of the assets has been revalued during 2024-25.

3.    The company has no capital work in progress as on 31.03.2025.

4.    All the assets mantioned above are held in the name of company except of Vehicle for which copy of RC in the name of the company of one vehicle has been provided.

i    The company has one issued class of Share i.e. Equity Share having a par value of Rs. 1/- per share. Each shareholders is eligible for one vote for per share held.

ii    In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company.

iii    The distribution will be proportion to the number of equity shares held by the shareholder.

iv    The Board of Direcors have recommended a dividend of Nil (Previous year Nil per equity share)

1.    Credit Limit has been restructured during the year vide sanctioned letter dt. 18.10.2021. Interest on Cash Credit Limit trfd. To FITL for 2 years and the Installment of which will be start w.e.f. Sept. 2023.

2.    Credit Limit except of GECL1.00 and GECL 2.00 has been secured by Collateral securities also of commerical plot Msg. 1251.24 in the name of Mrs. Tanupreet Kaur W/o S. Harpreet Singh, director of the company

3.    Further secured by personal guarantee of S. Harpreet Singh, Taranpreet Kaur & S. Eshaan Singh and Corporate guarantee of Preet Builders P. Ltd. And Kartar Finvest P. Ltd.

4.    The company has made the default in repayment of some of the installments due in 2022-23 against the loan as mentiond in

S.No. A,C,D,E and F and the bank has declared the credit facilty as NPA (i.e. Non Performing Assets).

5.    No interest has been booked after the date of NPA .

6.    The Unsecured loan in the name of directors have been adjusted with the realted part debtors o/s by the management after receiving confirmation from both the parties that neither of them have any problem with the above said settlemnet being made