(d) Terms and rights attached to equity shares

(i) The Company has only one class of equity shares having a par value of Rs, 2 per share (Previous year of Rs, 100 per share) Each shareholder is eligible for one vote per share held. In the event of liquidation of the Compam, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

(ii) The Board of Directors of the Company in the Board meeting dated October 09, 2023, revised the authorised share capital of the Company from 25,000 (twenty five thousand) equity shares of Rs 100/- each i.c. Rs 25 00 lakh to 15,00,000 (fifteen lakh) equity shares of Rs 100/- each i,e, Rs 1,500,00 lakh The same was approved by the shareholders in their meeting dated October 11, 2023

(iii) The Board of Directors of the Company in the Board meeting dated November 15, 2023, and the shareholders in their extra-ordinary general meeting held on November 18, 2023, approved the sub-division of equity shares of the Company by reducing the face value of shares from Rs 100/- each to Rs, 2/- each.

As a result of the above, the authorised equity share capital is 7,50,00,000 (seven crorc) equity shares of Rs 2/- each i.e. Rs 1,500,00 lakh and the issued, subscribed and fully paid up equity share capital of the Company as on the date of signing of the financial statements is 6,00,00,000 (six crore) equity shares of Rs 2/- each i.e. Rs 1,200 00 lakh

(g) The Company for the year of five years immediately preceding the reporting date has not:

(i) Allotted any class of shares as fully paid pursuant to contract(s) without payment being received in cash except as mentioned in sr no (ii) below

(ii) Allotted fully paid up shares by way of bonus shares except for 11,94,000 equity shares of Rs 100 each in bonus issue during the financial year 2023-24

(iii) Brought back any class of shares

As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

(h) The Board of directors had recommended final dividend of Rs, 2.55/-per equity share of face value of Rs 2 00/-each(J27 50%), The payment of dividend is subject to the approval of the members at the Annual General Meeting of the Company

Nature and purpose of reserves

(i) Retained earnings

Retained tartiingl ere profits that the Company has earned till date less transfer to other reserve, dividend or other distribution or transaction with shareholders (n) General reserve

" "^,“^al 'r^{Sfer Profit} ,** “ ^SP“^iM "**> TP**. "***»>. consequent to the introduction

, * ^{C1, ,nc} rcqu'rcmcnt to nwnditoril) transfer a specified percentage of net profit to general reserve has been withdrawn

(iti) Other comprehensive income

^s3ros«f±r^ent"" " “'^{UUy itemS} ‘° ^{be a}“°^Un,ed " ^0CI' " '^{S d}“‘^{,hi in}*°^{(i) items} "*Ý» to statement of profit and loss, and (ii) items that will he

iv) Performance obligation

Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to the customer, generally on delivery ot the goods and payment is generally due as per (he terms of contract with customers

Sale of service: The performance obligation in respect of services is satisfied over the period of time and acceptance of the customer Payment is generally due upon completion of service and acceptance of the customer

rr ^ T 1h¹" ^aCC° ? u s ^W"^{h ,akmg ,he effeCt} °^{f ,he B}°^{nus iSSUe 0f the E}Sh«. °f the Company. Further, during the

r_fTh^fZRim/ ^Swo^,r ,^{e N0V}'^{mber l5}' ^{2023 approve}‘^{, lhe subdlvl5l}°" of Equity Share of the Company by reducing the face vafue

of shares from Rs 100/- each to Rs. 2/- each Hence, the number of Shares has been constdered after taking the above effect for calculating the Earnings per

Terms & Conditions

(j) Transactions will, related parties daring the year were based on lemrs that wonld be available lo third parties. All other tntnsaelions were made in ordinary course of business and at amt's length price (n) AJl outstanding balances are unsecured and are repayable in cash ' '

'Ý')*“ ⁿ⁰‘'"^cl“^{de the provisil}" *“*" Idf tntully. as they are determined on an actuarial basis for the Company as a whole. The decisions relating to the remuneration of the KMPs are taken

Dy Inc Hoard of Directors of the Company, in accordance with shareholders approval, wherever necessary.

35.1 Fair value hierarchy

i) The Company uses (he following hierarchy for fair value measurement of the company's financials assets and liabilities:

Level I: Quoted prices/NAV (unadjusted) in active markets for identical assets and liabilities at the measurement dale.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3; Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

ii) Fair valualion techniques

The Company maintain* politic* and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of die financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods Bnd oisumptions were used to estimate the fair values

!> ^{Fair valuc ofcash and} deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their canying amounts largely due to the short term maturities oflhese instruments.

2) nwiml ings are evaluate! by Ike Company based on paramclers such as interest rales, specific counby risk factors, credit risk and other risk characteristics Fair value of variable interest rate borrowings approximates their carrying values.

36 Financial risk management

The Company's principal financial liabililies comprise borrowings, trade and other payables. The main purpose of these linnneial liabilities is to manage linances for the Company's operations Tile Company s principal financial assets comprise trade and other receivables and cash and cash equivalent that arise directly from its operations

The Company s activities expose il mainly to market risk, liquidity risk and credit risk The monitoring and management of such risks is undertaken by (lie senior management of the Company and there arc appropriate policies and procedures in place ihrough which such financial risks arc identified, measured and managed in accordance with the Company’s policies and risk objcclives II is the Company policy not to carry out any trading in derivative for speculative purposes

A) Market risk

Market risk is the risk dial (lie fair value of future cash Hows of a financial instrument will fluctuate because of changes in market prices Market prices comprises three types of risk: currency rate risk, interest rate risk and oilier price risks, such us equity price risk and commodity price risk Financial instruments alfccled by market risks include loan and borrowings, deposit, inveslnienls and foreign currency receivables and payables,

(i) Interest rale risk

Borrowing* availed by the Company arc uitycct to interest on fixed rales as these arc taken only for the purpose to finance the business and inducting new fleet and such borrowings are repayable on demand Tin; Company rs not exposed to interest rate hikes it does not have any financial instruments bearing variable interest rale as al the reporting dale.

(ii) Foreign currency risk

Fcreipi currency nsk » the n*k impact related to fair value or future cash flow* of an exposure in foreign currency, which fluctuate due to change* in foreign exchange rales. The Company's expoiure to the mk of change* in foreign exchange rate* relate* primarily to the foreign currency transactions with business partners The Company evaluates exchange rate cxpo*ure arising from foreign currency transactions The Company follow* established mk management policies and standard operating.

(iii) Commodity price risk

Commodity price nsk is the risk that firlttre cash Dows ofllie Company will Iliictiiate on account of changes in market price of key ilcms used in hading of goods/ rendering of services The Company does noi have any other price nsk than the interest rale risk and foreign currency risk as disclosed above.

B) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price

The Company uses liquidity forecast tools to manage its liquidity The Company is able to organise liquidity through own funds and through current borrowings. The Company has good relationship with its lenders, as a result of which it does not experience any difficulty in arranging funds from its lenders Table here under provides the current raliooflhe Company as at the year end

C) Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in Financial loss to the Company. The Company is exposed to credit risk from its operating activities, primarily trade receivables The credit risks in respect of deposits with the banks, foreign exchange transactions and other financial instruments are only nominal.

The customer credit risk is managed subject to the Company's established policy, procedure and controls relating to customer credit risk management In order to contain Hie business risk, prior to acceptance of on order from a customer, the creditworthiness of the customer is ensured through scrutiny of its financials, if required, market reports and reference checks The Company remains vigilant and regularly assesses die financial position of customers during execution of contracts with a view to limit risks of delays and default Further, in most of the cases, the Company normally allow credit period of30-45days to all customers which vary from customer to customer hi view of the industry practice and being in a position to prescribe (Ire desired commercial terms, credit risks from receivables are well contained on an overall basis,

The impairment analysis is performed on each reporting period on individual basis for major customers Some trade receivables are grouped and assessed for impairment collectively. The calculation is based on historical data of losses, current conditions and forecasts and future economic conditions. The Company’s maximum exposure to credit risk at the reporting dale is the carrying amount of each financial asset as detailed in notes 7,8, 10,11, 12, and 13.

37 Segment information

In accordance with Ind AS 108 "Operating Segments", segment information lias been given in the consolidated financial statements of the Company, and therefore, no separate disclosure of segment information is given in these standalone financial statements

38 Capital management

For the purpose of Capital Management, Capital includes net debt and total equity of the Company The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders The capital structure of Hie Company is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The Company mm take appropriate slept in order to maintain. o» if necettan adjuit. it* capital structure_

♦The Company had transferred the CSR obligation for the year ended March 31, 2023 lo the Company's unspent CSR account on April 3, 2023 Due to non activation of CMS in CSR unspent bank account, the amount spent Rs 4 25 lakhs for the ongoing project was paid from company's bank account on March 26 2024 and later was transferred back from the unspent CSR Account to the Company's account on March 27, 2024 Remaining Rs 0 12 lakhs remains in the Company's unspend CSR account

* The CSR obligation for the year ended March 31, 2022 in respect of ongoing projects was not transferred to a special account within a period of 30 days from the end of the relevant financial year. The said amount was subsequently utilized and transferred lo the Company’s unspent CSR account and subsequently transfer lo Prime Minister’s Relief Fund from Company’s Bank Account The same is not in compliance with section 135 of the Act

43 Olher Statutory Information

i) The Company does not have any Benami property, where any proceeding lias been initialed or pending against ihe Company for holding any Benami property

ii) Tile Company does not have pending charges which are yet lo be registered with ROC beyond the statutory period

iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year

iv) The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended March 31,2024, and year ended March 31,2023.

v) The Company has not advanced or fowled or invested funds lo any oilier person(s) or cnlity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or

indirectly lend or invest in other pci tons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guaranlee, security or ihe like to or on behair

of the Ultimate Beneficiaries,

vi) The Company hai not received any fund from any pcrx*K») or cntitjficj), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that Ihe Company shall:

(a) directly or indirectly lend or in\c*t in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the

like on behalf of the Ultimate Beneficiaries.

vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under llie Income Tax Art, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The Company does not have any transaclions with struck off companies

ix) The Company does not have any borrowings fiom banks or financial inslitulions on the basis of security of current assets

x) The Company has not revalued any of its property, plant and equipments or intangible assets during the year.

44 Employee Benefit Expenses A) Defined Contribution Plans:

The Company makes contribution in the form or provident funds as considered defined contribution plans and contribution to Employees Provided Fund Orgnisalion The Company has no further payment obligations once the contributions have been paid Following are the schemes covered under defined contributions plans of the Company:

Provident Fund Plan & Employee Pension Scheme: The Company makes monthly contributions at prescribed rates towards Employee Provident Fund adminislered and managed by Ministry of Labour* Employment, Government of India

Employee Stale Insurance: The Company makes prescribed monthly contributions towards Employees Slate Insurance Scheme and payment made lo Employee Stale Insurance Corporation, Ministry of Labour* Employment, Government of India

46 Standards notified but not yet effective

No new standard lias been notified during the financial year ended March 31,2024

47 As per Hie MCA notification dated August 5, 2022, die Central Government has notified die Companies (Accounts) Fourth Amendment Rules, 2022 As per the amended rales, the Companies are required to maintain the back-up of the books of account and other relevant book* and paper* to electronic mode that should be accessible in India at all the lime Also, the Companies are required to create back-up of accounts on servers physically located in India on a daily basis

The books of account along wilh olher relevant records and papers of (he Company are maintained in electronic mode These are readily accessible in India at all limes and a back-up is maintained in servers situated in litdta awl The Company and its officers have full access to the data in the servers,

48 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso 1o Rule 3(1) of Ihe Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which utes accounting software foe maintaining its books of accounts, shall use only such accounting software which las a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along wilh the dale when such changes were made and ensuring that lire audit trail cannot be disabled

The company uses accounting software i c Tally Prime for maintaining us books of account which has a feature of recording audit trail (edit log) facility and lire same lun operated llirouglKxil die year for all relevanl transactions recorded in Ihe accounting software, however, there is some inherent limitations of this accounting software like i) user creation and deletion log not maintained ii) User Idcnlificalion issue after deletion of User ID iii) tally uses user’s system date and lime instead oraclual lime & etc

The company also uses Rent a Nel (in-house software) for the purpose or maintaining sales & billing records which does not have a feature of recording audit trail (edit log) facility Based on management assessment, Ihe non-availability or audit trail functions will not have any impact on the performance of the accounting software, as management has all the olher necessary controls in place which arc operating effectively.

53 Inflial Public Offering ("IPO")

During Ihc year ended March 31, 2024, ihe Company has filed Draft Red Herring Prospectus (DRHP) with Ihe Securities and Exchange Board of India ("SEBI"), and an application for In-principal approval from SEBI (Securities and Exhangc Board of India), BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE") in connection with the proposed Initial Public Offering (^HIPO^H) of its equity shares The Company has not received in principal approval Grom SEBI, BSE & NSE.

54 Previous year figures have been regrouped/ rearranged wherever considered necessary to make them comparable with current year figures