10. PROVISIONS AND CONTINGENCIES

Provision is made in the books of account where there is a present obligation as a result of past event that probably requires an outflow
of resources and reasonable estimate can be made.

A disclosure for contingent liability is made when there is a possible obligation or present obligation that arises from past event and the
outflow of resources embedding economic benefit is not probable.

A contingent liability or a provision at the balance sheet date is not disclosed or recognised unless the possibility of any outflow of
resources in settlement is remote

Contingent Assets are neither recognised nor disclosed in the financial statements.

11. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity instrument of
another entity. Financial instruments are recognized as financial assets and financial liabilities are recognized when the company
becomes a party to the contractual provisions of the instrument. Initially a financial instrument is recognized at its fair value.
Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit or loss are
immediately recognized in the Statement of Profit and loss. Subsequently,financial instruments are measured according to the category
in which they are classified.

Financial Assets

Financial assets other than equity instruments are classified into financial assets at fair value through profit or loss and at ammortised
cost using effective interest rate method.

The company subsequently measures the trade receivable at their transaction price, if they do not contain a significant financing
component.

The company de-recognises a financial asset only when the contractual rights to the cash flows from the financial asset expires or it
transfers the financial assets and transfer qualifies for de-recognition under Ind AS 109.

Financial Liabilities

Financial liabilities are classified into financial liabilites at fair value through profit or loss and at ammortised cost using effective
interest rate method.

For trade and other payables maturing within one year from the balance sheet date, carrying amount is considered as fair value, as it
approximates fair value due to the short term maturity of these liabilities.

A financial liability is de-recognised when the obligation is discharged, cancelled or expires.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amounts are presented in the financial statements, if there is a currently
legal enforceable right to offset the recognized amount and the company intends to settle or realize on net basis.

12. IMPAIRMENT OF ASSETS

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any indication
exists, the recoverable amount of such assets is estimated to determine the extent of impairment, if any. Where it is not possible to
estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of Cash Generating Unit to
which the asset belongs.

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash
flows are discounted to present value using a pre-tax discount rate that reflects current market assessment of the time value of money
and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the
asset or cash generating unit is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of
Profit and Loss.

13. LEASES

At the inception of lease, the lease arrangement is classified as either as finance lease or an operating lease, based on the substance of
the lease arrangement. Assets taken on operating lease, lease payments made are recognized in the Statement of Profit and Loss on
straight-line basis over the term of lease.

14. FAIR VALUE MEASUREMENT

Fair value is the price that is received / paid to buy / sell an asset or to transfer a liability, as the case may be, in an orderly transaction
between market participants at the measurement date in the principal market or in its absence most advantageous market or, in its
absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its
nonperformance risk.

While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices)

Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)

15. Accounting policies not specifically referred above are consistent with generally accepted Accounting practices.

Financial Risk Management Framework

Company's activities expose it to financial risks viz credit risk and liquidity risk.

Credit Risk

Based on the overall credit worthiness of Receivables, coupled with their past track record, Company expects No / Minimum risk with regards to its outstanding receivables. Also, there is a
mechanism in place to periodically track the outstanding amount and assess the same with regards to its realisation. Company expects all the debtors to be realised in full, and accordingly, no
provision has been made in the books of accounts for doubtful receivables.

Liquidity risk

(i) Liquidity Risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring and forecasting actual cash flow and by matching the maturity profiles of
financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables contains details of the Company's remaining contractual maturities for its non-derivative financial liabilites with agreed repayment periods. The amount disclosed in the tables
have been drawn up based on the earliest date on which the Company can be required to pay. Financial Liabilities include Trade Payables, Capital Purchases, Unpaid / Unclaimed Dividends etc.,
which are in the normal course of business having maturity plan of less than one year and non interest bearing.

2.41 All the title deeds of the Immovable property are in the name of the Company and there are no such title deeds which are not held in the name of the Company

2.42 The Company has not revalued any of the property plant and equipment.

2.43 The Company has not granted any Loans or advances in the nature of loans to promoters, Directors, KMPs and the related parties either severally or jointly with any other person that are
repayable on demand or with out specifying any terms or period of repayment.

2.44 During the year or in earlier year the company has not undertaken any Capital works which are in progress neither there are any Intangible assets which are under progress hence not reported.

2.45 There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there
under.

2.46 The Company has borrowings from Banks on the basis of security of Current Assets. All the information submitted to the bank is as per the books of accounts and not found any deviations.

2.47 The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

2.48 During the year the Company does not have any transactions with companies struck off under section 248 of Companies Act,2013 or section 560 of the Companies Act,1956.

2.49 There are no charges or satisfaction pending for registration with the Registrar of companies beyond the statutory period.

2.50 The Company has no subsidiaries, hence violation of provisions of clause (87) of Section 2 of the Act read with Companies (Restriction on number of layers) Rules,2017 does not arise.

2.51 The Company has not applied for any approved scheme or arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

2.52 The company has neither advanced or loaned or invested funds (either borrowed funds or any other sources or kind of funds) to any other person(s), entities including foreign entities nor received any fund from any person including
foreign entities with the understanding that the intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(a) Current Ratio has reduced due to increase in short term borrowings and reduction in cash and cash equivalents.

(b) Debt Equity Ratio has increase due to incrase in short term borrowings.

(c) Debt Service Coverage Ratio has increased due to increase in profits.

(d) Return on Equity has increased due to increase in profits.

(e) Inventory Turnover has increased due to increase in turnover.

(f) Trade receivable turnover ratio has improved due to increase in turnover.

(g) Trade payables turnover ratio has improved due to reduction in trade payable.

(h) Net capital turnover has increased due to increased in turnover.

(i) Net profit ratio has increase due to increased in net profit.

(j) Return on Capital employed has increased due to profit.

** The company has only invested in post office savings certificate for Rs.850 only and not invested in any of these assets classes viz., Equity, fixed income generating instruments etc., As the
investment size is insignificant the ratio is not calculated

2.54 The company does not have any income which is not recorded in the books of accounts that has been surrendered or disclosed as income in any of the tax assessments under the Income Tax Act,1961

2.55 As per the provisions of section 135 of the Companies Act, the Company is not required to incur any amount towards Corporate Social Responsibility expenditure as it has incurred Loss in the immediately preceeding previous year.
( Company has incurred Corporate Social Responsibility expenditure of Rs.12.16 Lakhs in the previous year)

2.56 The accounting software used for recording accounting transactions has audit trail of each and every transaction creating an edit log of each change in the books of accounts along with the date when such changes are made and the
audit trail is not disabled at the database level and the application layer of the accounting software relating to revenue, trade receivables and general ledgers.

As per our report of even date For and on behalf of the board

for NATARAJA IYER & CO., Sd/-

Chartered Accountants (MEADEM SEKHAR)

ICAI FRN : 002413S Whole Time Director & CEO (Din No. 02051004)

Sd/- Sd/-

(E.SRI RANGANATH) (MADDI VENKATESWARA RAO)

Partner Director (Din No.00013393)

M.No : 013924

Sd/-

(KOTHURI SATYANARAYANA)
Chief Financial Officer

Sd/-

(RADHA RANI SINGHAL)
Company Secretary

Place : HYDERABAD Place : CHILAKALURIPET

Date : May 29, 2024. Date : May 29, 2024.