A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which
a reliable estimate can be made of the amount of obligation. Provisions (excluding gratuity and compensated absences) are
determined based on management's estimate required to settle the obligation at the Balance Sheet date. In case the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. These are reviewed at
each Balance Sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be
confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the

Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised because it cannot be measured
reliably.

Contingent asset is not recognised unless it becomes virtually certain that an flow of economic benefits will arise.

T. EMPLOYEE BENEFITS:

i) Defined Contribution Plan

Contributions to defined contribution schemes such as provident fund, employees' state insurance, labour welfare are charged as
an expense based on the amount of contribution required to be made as and when services are rendered by the employees. The
above benefits are classified as Defined Contribution Schemes as the Company has no further obligations beyond the monthly
contributions.

ii) Defined Benefit Plan

The Company also provides for gratuity which is a defined benefit plan, the liabilities of which are determined based on
valuations, as at the balance sheet date, made by an independent actuary using the projected unit credit method. Re¬
measurement, comprising of actuarial gains and losses, in respect of gratuity are recognised in the OCI, in the period in which
they occur. Re-measurement recognised in OCI are not reclassified to the Statement of Profit and Loss in subsequent periods.
Past service cost is recognised in the Statement of Profit and Loss in the year of plan amendment or curtailment. The
classification of the Company's obligation into current and non-current is as per the actuarial valuation report.

iii) Leave entitlement and compensated absences

Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term employee benefit. Leave
entitlement, other than short term compensated absences, are provided based on actuarial valuation, similar to that of gratuity
benefit. Re-measurement, comprising of actuarial gains and losses, in respect of leave entitlement are recognised in the
Statement of Profit and Loss in the period in which they occur.

iv) Short-term Benefits

Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as expenses at the
undiscounted amounts in the Statement of Profit and Loss of the period in which the related service is rendered. Expenses on
non-accumulating compensated absences are recognised in the period in which the absences occur.

v) Termination benefits

Termination benefits are recognised as an expense as and when incurred.

U. ACCOUNTING FOR TAXES OF INCOME:

i) Current Taxes

Current income tax is recognised based on the estimated tax liability computed after taking credit for allowances and
exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.

ii) Deferred Taxes

Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and liabilities are recognised for all
deductible temporary differences between the financial statements' carrying amount of existing assets and liabilities and the ir
respective tax base. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are
substantively enacted at the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against which the temporary differences can be utilised. Such assets are
reviewed at each Balance Sheet date to reassess realisation.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.

iii) Minimum Alternative Tax

The Company has obtaining the Section 115BAA as per Income Tax hence, MAT is not applicable. The company has also reversed
all the MAT credit of Previous Years as Expenses / Income as obtained tax regime under Section 115BAA of Income Tax Act.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments
measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

I. Fair value hierarchy

The fair values of the 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.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are

(a) Recognised and measured at fair value and,

(b) Measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial
instruments into the three levels prescribed under the Indian accounting standard. An explanation of each level is as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity instruments
that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

II. Valuation techniques used to determine fair value

Significant valuation techniques used to value financial instruments include:

• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

• Use of quoted market price or dealer quotes for similar instruments

• Using discounted cash flow analysis.

The fair values computed above for assets measured at amortised cost are based on discounted cash flows using a current
borrowing rate. They are classified as level 2 fair values in the fair value hierarchy due to the use of unobservable inputs.

C. Financial Risk Management

C.i. Risk management framework

A wide range of risks may affect the Company's business and operational / financial performance. The risks that could have
significant influence on the Company are market risk, credit risk and liquidity risk. The Company's Board of Di rectors reviews
and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse
effects of such risks on the company's operational and financial performance.

C.ii. Credit risk

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 trade and other receivables, cash and cash equivalents and
other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the
financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The
maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying
amount.

(a) Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in the credit risk on an on-going basis through each reporting period. To assess whether there is a significant increase in
credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the
date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business

ii) Actual or expected significant changes in the operating results of the counterparty

iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its
obligation

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit
enhancements

Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a
repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in
enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the
statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical
trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss
experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional
provision considered.

(b) Cash and cash equivalents and Other Bank Balances

The Company held cash and cash equivalents and other bank balances of Rs. 159.07 Lakhs at 31st March, 2024. (Rs. 24.62 Lakhs
at 31st March, 2023). The cash and cash equivalents are held with bank with good credit ratings and financial institution
counterparties with good market standing. Also, Company invests its short term surplus funds in bank fixed deposit, which carry
no / low mark to market risks for short duration therefore does not expose the Company to credit risk.

C.iii. 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 a reasonable
price. For the Company, liquidity risk arises from obligations on account of financial liabilities - trade payables and borrowings.

Liquidity risk management

"The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due
without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and
sustained shortfall in our cash flow could undermine the Company's credit rating and impair investor confidence.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended 31st March, 2024
and 31st March, 2023. This was the result of cash delivery from the business. Cash flow from operating activities provides the
funds to service the financing of financial liabilities on a day-to-day basis. The Company's treasury department regularly
monitors the rolling forecasts to ensure it has sufficient cash on-going basis to meet operational needs. Any short term surplus
cash generated by the operating entities, over and above the amount required for working capital management and other
operational requirements, are retained as cash and cash equivalents (to the extent required). "

C.iv. Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

C.iv.a Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the
Company is Indian Rupee. Our exposures are mainly denominated in U.S. dollars. The USD exchange rate has changed
substantially in recent periods and may continue to fluctuate substantially in the future. The Company's business model
incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This
intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the
most effective and efficient ways of managing the currency risks.

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.

The capital structure of the Company is based on management s judgement of the appropriate balance of key elements in order
to meet its strategic and day-today needs. We consider the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

The management monitors the return on capital as well as the level of dividends to shareholders. The Company will take
appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

Note 31: Contingent Liability- NIL

Note 32:

In case where, no availability of information about the amount dues to small/micro undertaking, we are unable to comment that
the interest if any is due to such undertaking or not.

Note 33:

Estimated Amount of contracts remaining to be executed on Capital Account and not provided for (Net of Advances) : NIL.

Note 34:

As certified by the Management there is no obligation in respect of gratuity and leave encashment during the year. The same is
relied upon by the Director.

Note 35:

Un-hedged foreign currency exposure:

The Company is dealing only local business during the year, hence, no foreign currency Receivable / Payable during the Year.
Note 36:

Balances are relied upon as per books of accounts wherever the confirmations from debtors /creditors /Loans /Advances are
not available. Debtors and Creditors Balances are subject to Confirmation. Debtors & Creditors Balances are as per Management
Representation and relied upon by the Auditors.

Note 37:

In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of
business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and
advances which falls under management's policy for bad and doubtful debts as taken in the previous years.

The company done not full file the prescribed profit limit i.e. >5 Cr or turnover >1000 Cr or net worth >500 Cr., hence, the CSR is
not applicable to the company. A CSR expense incurred by the Company is Nil.

Note 39:

Quarterly returns or statements of Current Assets filed by the company with banks are not applicable as the Company does not
have any banking facility during the year.

Note 40:

Previous year figures have been regrouped and rearranged wherever necessary to confirm with the current year presentation.
Note 41:

The Company has not made any transaction with the struck off companies during the previous Year.

Note 42:

The Company has not had any Virtual Currency / Crypto Currency during the previous Year.

Note 43:

"a) To the best of our knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

b) To the best of our knowledge and belief, no funds have been received by the company from any persons or entities, including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries."

In terms of our report of even date For and on behalf of the Board of Directors

For Motilal & Associates LLP Sparc Electrex Limited

(Formerly Motilal & Associates) (Formerly Sparc Systems Limited)

Chartered Accountants
FRN: 106584W/W100751

Sd/- Sd/-

Shobhit G Hegde Ravikumar Channappa

Sd/- (WTD & CFO) (Director)

CA. Rishabh M Jain DIN: 02211021 DIN: 06595061

(Partner)

Mem No. 179547

UDIN: 24179547BKAVFG2792 Sd/-

Place: Mumbai Ashish Mishra

Date: 29.05.2024 (Company Secretary A63677)