1.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantia] degree of estimation in measurement are recognized when there is a
present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither
recognized nor disclosed in the financial statements.

1.15 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period after tax before
OCI attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period after tax
before OCI attributable to equity shareholders and the weighted average number of equity shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.16 FINANCIAL INSTRUMENTS

A. Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value
on initial recognition, except for trade receivables which are initially measured at transaction price.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial
recognition.

B. Subsequent measurement

a. Non-derivative financial instruments

i. Financial assets carried at amortized cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

ii. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investments which are classified as equity
instruments to present the subsequent changes in fair value in other comprehensive income based on
its business model. Further, in cases where the Company has made an irrevocable election based on its
business model, for its investments which are classified as equity instruments, the subsequent changes
in fair value are recognized in other comprehensive income.

iii. Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.

iv. Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method,
except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss. For trade and other payables maturing within one year

from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of
these instruments.

v. Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

b. Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward and option
contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The
counterparty for these contracts is generally a bank.

c. Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under
Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's
Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

d. Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value result in general approximation of value, and such
value may never actually be realized.

17 MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off over a period of 5 years.

2.22 EMPLOYEES RETIREMENT BENEFITS

No provision for employee retirement benefits has been made in the accounts as there are no regular
employees during the year.

2.23 SEGMENT REPORTING

The Company operated only in one segment during the year.

2.24 CURRENT ASSETS, LOANS & ADVANCES

In the opinion of the management, the current assets, loans and advances are approximately of the value
as stated, if realised in the ordinary course of business.

2.26 CURRENT LIABILITIES

In the opinion of the management of the Company, there are no micro, small and medium
Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at
March 31, 2024. The information as required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent such parties have been identified
on the basis of the information available with the Company and have been relied upon by the statutory
auditors of the Company.

2.28 Current Assets, Loans & Advances

In the opinion of the management of the Company, the current assets, loans and advances are
approximately of the value as stated, if realized in the ordinary course of business and are subject to
confirmation/reconciliation.

2.33 INCOME TAX
Current Tax

Provision for Income tax has been made as per Income-tax Act, 1961.

Deferred Tax

In compliance with Indian Accounting Standard (Ind AS 12) relating to “Income Taxes” issued under
Companies (Indian Accounting Standards) Rules, 2016 as amended up to date, the Company has
recognized Deferred Tax Liability during the year aggregating to Rs. 0.01 Lakhs (Previous Year,
Deferred Tax Assets of Rs. 1.14 Lakhs) and it has been recognized in the Statement of Profit & Loss. In
accordance with Indian Accounting Standard (Ind AS 12) Deferred Tax Assets and Deferred Tax
Liabilities have been set off.

2.34 LEASES

In accordance with Ind AS 116, a contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. The Company
has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that
have a lease term of 12 months or less. The lease payments associated with these leases are recognised
as an expense on a straight-line basis over the lease term.

Lease payments recognized in the statement of profit and loss are Rs. 1.31 Lakhs (Previous Year Rs.
1.31 Lakhs).

2.35 The Company has re-grouped/reclassified previous year’s figures to conform to current year’s
classification. Rupees have been rounded off to nearest thousand.

2.38 Fixed assets possessed by the company are treated as corporate assets and are not Cash Generating Unit
as per Accounting Standard -28 issued by the Institute of Chartered Accountants of India. In the
opinion of management there is no impairment of the fixed assets of the company.

2.39 Depreciation

Depreciation on fixed assets is provided on straight-line method at the rates and in the manner
prescribed in Schedule II of the Companies Act, 2013 over their useful life.

2.41 Previous year figures have been regrouped and re-arranged whenever considered necessary to make it
compatible with current year figures. The figures in financial statements have been reflected in nearest
rupee thousands.

As per our report of even date

FOR DEVINE IMPEX LIMITED FOR DEEPAK JINDAL & CO.

(CIN: L51110PB1995PLC017179) CHARTERED ACCOUNTANTS

FIRM REGN. NO. 023023N

^sd/- Sd/-

Sd/-

(Manju Jain) (Neeraj Jain) (Deepak Jindal)

Director Managing Director PARTNER

(DIN: 02711684) (DIN: 01132916) (M. NO. 514745)

UDIN- 51VIW 6 BKDZTS3°I11

^sd/' Sd/-

(Anil Jain) (Rohit Jain)

Company Secretary Chief Financial Officer

(PAN AASPJ0697C) (PAN ABBPJ3377K)

PLACE: CHANDIGARH
DATE: '05-2-0%^