1.07 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is 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.

1.08 REVENUE RECOGNITION

Revenue is recognised on rendering of services, performance of related obligations and assurance of collectability of resulting receivables in accordance with the terms of contracts entered into with customers.

1.09 OTHER INCOME

Interest income is accounted on accrual basis. Income other than interest income is accounted for when right to receive such income is established.

1.10 TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on income", notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

1.11 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.12 EARNINGS PER SHARE

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Terms / Rights attached to Equity Shares:

1.) The company has only one class of Equity Shares having a par value of K 10/- per share. Each holder of Equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity share 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 Share holders.

2) The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provisions of the Companies Act, 2013.

3) Every member of the company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of the company.

Terms / Rights attached to Preference Shares (till March 2023):

Class A1 CCPS- No. of Shares - 2559

0.001% Class A1 of CCPS issued by the Company shall have a coupon rate 0.001% p.a. The holders of the Class A1 Shares may convert the Class A1 Shares in whole or part, whether in one or more tranches, into Equity Shares at any time after the issuance of Class A1 Shares but before 19 (Nineteen) years from the date of issuance of the same. The Class A1 Shares, or any of them, if not converted earlier, shall automatically convert into Equity Shares at the then applicable conversion rate, (i) on latest permissible date prior to the issue of Securities to the public in connection with the occurrence of a IPO under Applicable Law, or (ii) on the day immediately preceding the completion of 19 (Nineteen) years from the date of issuance of the same. Each Class A1 Shares shall be converted into Equity Shares at a conversion ratio of 1:1 (i.e., 1 Equity Share for 1 Class A1 Shares).

Class A2 CCPS- No. of Shares - 9531

0.001% Class A2 of CCPS issued by the Company shall have a coupon rate 0.001% p.a. The holders of the Class A2 CCPS may convert the Class A2 CCPS in whole or part, whether in one or more tranches, into Equity Shares at any time after the issuance of Class A2 CCPS but before 19 (Nineteen) years from the date of issuance of the same. The Class A2 CCPS, or any of them, if not converted earlier, shall automatically convert into Equity Shares at the then applicable conversion rate, (i) on latest permissible date prior to the issue of Securities to the public in connection with the occurrence of a IPO under Applicable Law, or (ii) on the day immediately preceding the completion of 19 (Nineteen) years from the date of issuance of the same. Each Class A2 Subscription Share shall be converted into Equity Shares at a conversion ratio of 1:1 (i.e., 1 Equity Share for 1 Class A2 Subscription Share). However, the number of Equity Shares to be issued to an Investor upon conversion of the CCPS (“Investor Conversion Shares") shall be adjusted in the manner decided in the CCPS agreement upon occurrence of a Qualified Financing Round.

The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company.

2 The company has not revalued Property, Plant and Equipment.

The Company has not granted loans or advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined

3 under Companies Act, 2013,) either severally or jointly with any other person, that are:(a) repayable on demand or (b) without specifying any terms or period of repayment.

4 The Company does not have any capital work-in-progress.

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

6 The Company does not have any borrowings from banks or financial institutions.

7 The provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the Company.

8 The company is not declared as wilful defaulter by any bank or financial institution or other lender.

The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,

⁹ 1956

No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such

¹⁰ previously unrecorded income or related assets

11 There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

12 The Company has not traded or invested in Crypto currency or Virtual Digital Asset during the financial year.

The company's investments are in compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies

¹³ (Restriction on number of Layers) Rules, 2017.

OTHER NOTES ANNEXURE -XXVIII

The company was in the process of Listing on BSE SME Platform as on March 31, 2023 and got listed w.e.f. April 18, 2023 by issuing 10,95,000 shares of

¹ Rs. 10 each at Rs. 47.

2 Figures of previous year have been regrouped / reclassified wherever necessary to confirm to the current year’s presentation.

For R T JAIN AND CO LLP For and on behalf of the Board of Directors

Chartered Accountants FRN - 103961W/W100182

Mukeshkumar Devichand Jain Mihir Vora

Director Managing Director

DIN - 09740925 DIN :08602271

(CA Bankim Jain)

Partner

Mem No - 139447

MUMBAI, MAY 30, 2024 Sanjana Shah Narendra Gupta

UDIN : 24139447BKCLBD5836 Chief Financial Officer Company Secretary