8.1 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 10/- per share. All these shares have the same rights and preferences with respect to the payment of dividend, repayment of capital and voting. The Company declares and pays dividends in Indian rupees. The interim dividend is declared and approved by Board of Directors. The final dividend proposed by the Board of Directors and is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.

Company has taken secured loan facility from SIDBI "Small Industries Development Bank of India" . The same has been secured by subservient charge on all the movable and immovable assets of the borrower already charged to Bank of India. Such charges would be sub-survient to all the existing and prospective charges created/ to be created by the borrower on the said assets in favour of Bank of In-dia,which has extended/would extend busines loans(viz. term loans for machineries,business premises and working capital) to the borrower for the same business for which SIDBI has extended the sub-debt. All such aforesaid lenders would be referred to as " Senior Secured Lenders".Company has also given irrevocable and unconditional gurantee of Directors 1) Shri Gaurang P shah 2) Smt Rupal G Shah and all such persons hoding a stake of more than 10% in the company.Over and above this, company has also liened Fixed deposit amounting to Rs.2500000.

^AThe terms of repayment not yet finalised for Unsecured Loan from Body Corporate and Directors. Rate of Interest is charged @8.60 % p.a.

AAACash Credit facilities from Bank of India is secured by way of hypothecation of stock, book debts and other current assets ofthe company both present and future and is also secured by personal guarantee of directors.It is also collaterally secured by hypothecation of Plant & Machinery and Equitable mortgage of Following properties.(1) Office premises-61 6 th floor, Titanium, Nr. Prahaladnagar, Ah-medabad owned by the company (2) Corporate house no 6 , Sigma corporate 1, Sindhu Bhavan road, Bodakdev, Ahmedabad . Over and above this, personal property of Directors Shri Gaurang P. Shah & Smt Rupal G. Shah has been given as a Collateral security.

Interest rates on Cash Credit Accounts are varying , which are linked to base rate of Bank from time to time.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include: the use of quoted market prices or dealer quotes for similar instruments.

Fair Value of Financial Assets & Liabilities measured at amortized cost

• The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

• The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk. They are subsequently measured at amortised cost at balance sheet date.

Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers.

The carrying amount of following financial assets represents the maximum credit exposure:

Other financial assets

The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade receivables

Trade receivables of the company are typically unsecured. The Company has major customers are government companies and government bodies. Hence, no credit risk is perceived by the Company.

The above receivables are past due but not impaired since the major customers are government companies and government bodies, being a government entity, does not carry any credit risk.

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the Company in accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Market Risk Management

Foreign Currency Risk: The Company operates in Indian market only. The Company has not made any foreign transaction during the year. Cash flow and fair value interest rate risk

The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Capital Management

The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance sheet, including non-controlling interests)

Defined Benefits Plan

Gratuity: The gratuity provision as on 31st Mar,2024 is according to the management is Rs. 10 lakhs , Hence, the provision for the same is made accordingly. Actual valuation is yet to be made.

Note 33 : Segment information:

The Company is engaged primarily on the business of "Electrification Services" only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments".

Note 34 : Events after the reporting period:

There have been no events after the reporting date that require disclosure in the financial statements.

Note 35 : In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

Note 36 : Impairment of Assets:

On periodical basis and as and when required, the company reviews the carrying amount of its assets. Company has been making profits since past few accounting periods which covers depreciation as well as interest. Operating cash flows from the operating activities before and after working capital changes are positive.

In the Financial year 2023-24, the company has reviewed the carrying amount of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence no such impairment loss has been provided.

Note 37 : No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2024.

Note 37 : No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2024.

Note 38 : The Company is not a declared willful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India, during the year ended 31 March 2024.

Note 41 : The Company has borrowings from banks and financial institutions on the basis of security of current assets and the quarterly returns filed by the Company with the banks and financial institutions are in accordance with the books of accounts of the Company for the respective quarters.

Note 42 : The Company has taken borrowings from banks and financial institutions and utilized them for the specific purpose for which they were taken as at the Balance sheet date.

Note 43 : There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income during the year ended 31 March 2024, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related assets which were to be properly recorded in the books of account during the year ended 31 March 2024.

Note 44 : The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2024.

Note 45 : Derivatives: There are no derivative instruments in the Company for the year ended 31 March 2024.

Note 46 : Registration of charges or satisfaction with Registrar of Companies (ROC): All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

Note 47 : Compliance with number of Layers of companies: The Company has not violated with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2024.

Note 48 : Miscellaneous

Group structure: Not Applicable. The Company does not have any holding, subsidiary or associate company.

Net Profit or Loss for the period, prior period items and changes in accounting policies: The Company does not have any prior period items / change in accounting policies during the current year other than disclosed in financials.

Revenue Recognition: There have been no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

Consolidated Financial Statements (CFS): The Company does not have any subsidiary, associate or joint venture accordingly CFS is not applicable.

The financial statements are presented in Indian Rupees (INR) which is also its functional currency and all values are rounded to the nearest lakhs up to two decimal as per the requirements of Schedule III, unless otherwise stated and have been regrouped, rearranged and reclassi-

Note 49 : There were no instances of fraud reported during the year ended 31 March 2024.

Note 50 : Figures of previous year have been reworked/regrouped/reclassified wherever necessary.

Recent pronouncements issued but not effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.