2.13 Provisions and contingencies:

A provision is recognized when the Company has a present obligation as a result of past
event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Company or a present obligation that
is not recognized because it is not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in extremely rare cases where
there is a liability that cannot be recognized because it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its existence in the
financial statements.

2.14 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period
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 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.

2.15 Cash and Cash Equivalents:

Cash and cash equivalents for the purposes of cash flow statement comprise cash in
hand, at bank (including margin deposits with banks).

2.16 Bad-Debts:

Bad-Debts are written off to Statement of profit and loss as and when the debt is
determined as un-realizable as per the opinion of the Management.

2.17 Cash flow statement:

Cash flow statement has been prepared in accordance with the indirect method
prescribed in Accounting Standard 3 -Cash flow Statement. Cash and Cash equivalents
for cash flow statement comprises cash at bank and in hand and bank deposits.

2.18 Foreign currency translation(i) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to
the foreign currency amount the exchange rate between the reporting currency and
the foreign currency at the date of the transaction

(ii) Conversion

At the year-end, monetary assets in foreign currency are translated at the rates of
exchange at the balance sheet date and resultant gain or loss is recognized in the
Profit and Loss Account.

(iii) Exchange differences

All exchange differences arising on settlement/ conversion on foreign currency
transactions are included in the Profit and Loss Account, except in cases where they
relate to the acquisition of fixed assets, in which case they are adjusted in the cost of
the corresponding asset.

2.19 Share Premium Account

Share premium account includes difference between consideration received in respect
of shares and face value of shares.

2.20 Provision for doubtful debt

The company has policy for provision for doubtful debts as specified below:

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each
holder of equity shares is entitled to one vote per share. In the event of liquidation of the
Company, the holders of the equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.

The Company has declared dividend of ^ 0.25 per share for the year ended 31st March 2026.

c. Details of shareholders holding more than 5% shares in the Company

A. Loan from Bank under Vehicle Finance Scheme amounting to Rs. 4890.28 Lakhs
(Outstanding Balance Rs. 3342.29 Lakhs) is secured by an exclusive charge by way of
hypothecation of vehicle purchased under said scheme, bears interest at rates ranging
from 7.00% to 9.50% per annum, and is repayable in 36-48 Equal Monthly Installments
(EMIs).

B. Term Loan 1 from bank amounting 600 Lakhs (Outstanding Balance 133.33 Lakhs) is
secured by Lien of BG carrying interest of 9% is repayable in 12-48 Equal Monthly
Installments (EMIs)

C. Term Loan 2 from bank amounting 600 Lakhs (Outstanding Balance 166.66 Lakhs) is
secured by Lien of BG carrying interest of 9% is repayable in 12-48 Equal Monthly
Installments (EMIs)

a. Cash Credits and Stand by Line of Credit (SLC) under consortium is secured by
hypothecation of raw materials, stocks in process, finished goods, consumable stores and
spares and receivables excluding fixed asset (land) which is treated as inventory and held
for sale. The CC and SLC is secured by the collateral security of the properties and personal
guarantee by Mr. Bal Krishna Goyal, Mr. Rajendra Kumar Goyal, Mr. Brij Kishore Goyal, Mr.
Gopal Goyal, Mrs. Usha Goyal, Mrs. Vinita Goyal and Mrs. Sarla Goyal.

b. DOD facility limit from Bank is secured by the collateral security of the property and
personal guarantee by Mr. Bal Krishna Goyal, Mr. Rajendra Kumar Goyal, Mr. Brijkishore
Goyal, Mr. Gopal Goyal, Mrs. Usha Goyal, Mrs. Vinita Goyal and Mrs. Sarla Goyal.

i. Details of Dues to Micro and Small Enterprises as Defined Under the MSMED Act, 2006

The identification of Micro, Small and Medium enterprises is based on the management's
knowledge of their status. The Company has received intimations from the following suppliers
regarding their status under "The Micro, Small and Medium Enterprises Development Act,
2006".

Dues to micro and small enterprises pursuant to section 22 of the Micro, Small and
Medium Enterprises Development Act (MSMED), 2006

On the basis of confirmation to the extent received from suppliers who have registered
themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act, 2006) and based on the information available with the Company, the following are the
details:

31. Employee benefitsA. Defined contribution plan - provident fund

Provident Fund is a defined contribution scheme established under a State Plan. The
contributions to the scheme are charged to the statement of profit and loss in the
period/year when the contributions to the funds are due.

B. Defined benefit plans - gratuity

The Company has a defined gratuity plan. Every employee is entitled to gratuity on post¬
employment at 15 days' wages (last drawn wages) for each completed year of service or
part thereof in excess of six months, in accordance with the provisions of the Code on

Social Security, 2020 and the rules made thereunder, as applicable. The aforesaid liability
is provided for on the basis of an actuarial valuation made at the end of the financial
period.

Disclosure as required by Accounting Standard (AS)-15 (Revised 2005) "Employee
Benefits" notified by the Companies (Accounting Standards) Rules, 2006 as amended
are given below-

32. In accordance with the provisions of section 135 of the Companies Act, 2013 (“Act”),
the Board of Directors of the Company had constituted a Corporate Social
Responsibility (CSR) Committee. The CSR Committee has been examining and
evaluating suitable proposals for deployment of funds towards CSR initiatives;
however, the committee expects finalization of such proposals in due course. Below
is the disclosure in respect of same: -

(a) During the previous financial year, the Company has incurred excess CSR
expenditure amounting to ^3.41 lakhs. In accordance with the provisions of the Act,
this excess amount is proposed to be carried forward and set off against the CSR
obligation of the subsequent financial year.

The opening balance of excess CSR spend for the Financial Year 2025-26 stands at Rs.
3.41 Lakh, mirroring the signed financial statements of the preceding financial year.
However, following a final evaluation of the underlying expenditures, it was
determined that an amount of Rs. 1.61 Lakh did not qualify as eligible CSR expenditure
under Section 135 of the Companies Act, 2013, and instead constituted standard non-
CSR donations.

To correct this prior-period misclassification, the opening balance has been
reconciled in the current period. The actual eligible excess CSR spend available for
set-off is restricted to Rs. 1.80 Lakh. The unqualified amount of Rs. 1.61 Lakh has been
adjusted in the financial records of FY 2025-26 and will not be carried forward for
future CSR credits.

37. Previous year Figures

Previous year figures has been regrouped/reclassified, where necessary, to confirm to
this period's classification.

38. Additional Regulatory Informationa. Borrowings from banks and financial institutions

The Company has Borrowings from banks on the basis of Security of Current
Assets.The quartely Returns or Statements of Current Assets filed by the Company
with Banks are in agreement with the books of accounts and there were no Material
Discrepancies noted.

b. Details of Benami Property held

The company does not hold any Benami Property and no proceedings have been
initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
thereunder.

c. Title deeds of Immovable Property

Title deeds of Immovable Property held in the name of Company.

d. Intangible assets under development

The Company does not hold any Intangible assets under development.

e. Capital work in progress

The Company holds Capital work in progress under development of ^ 214.88 Lakhs

f. Loans or Advances

The Company has given Loans or Advances in the nature of loans granted to
promoters, Directors, KMPs and the related parties (as defined under Companies Act,
2013,) either severally or jointly with any other person that are:

g. Details of Revalued Property

The Company has not Revalued its Property, Plant and Equipment during the period.

h. Wilful Defaulter by any Bank/ Financial Institution/ Other Lender

The company is not declared as wilful defaulter by any bank / Financial institution /
other lender.

i. Relationship with struck off companies

The company has no such transaction with any Struck off Company.

j. Registration of Charges or satisfaction with Registrar of Companies (ROC)

There are no Charges pending for Registration with Registrar of Companies (ROC).

k. Compliance with number of layers of companies

The company has complied with clause (87) of section 2 of the Act read with the
Companies (Restriction on number of layers) Rules, 2017.

l. Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any Scheme of arrangement approved by
Competent Authority.

m. Utillization of Borrowed Fund and Share Premium

I. The company has not advanced or loaned or invested funds (either borrowed
funds or share premium or any other sources or kind of funds) to any other
person(s) or entity(ies).

II. The company has not received any funds from any other person(s) or entity(ies).

n. Undisclosed Income

There are no transactions which are not recorded in books of accounts i.e. there is no
undisclosed income.

o. Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto Currency or Virtual Currency