2.09 Provisions and contingencies

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions for onerous contracts are recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may
probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained
with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of
resources is remote, no provision or disclosure

2.10 Government grant

The company receives export incentives in the form of Duty Drawback. The said scheme is related to income. The
company recognises income from government grant when the condition for export is met and it is certain that the
grant under the scheme will be received. The company presents the grant income on gross basis aggregated with
other operating income line item in profit or loss.

2.11 Exceptional Items

When an item of income or expense within Statement of profit or loss from any activity is of such size, nature or
incidence that their disclosure is relevant to explain the performance of the Company for the year, the nature and
amount of such items is disclosed as exceptional items.

2.12 Statement of Cash flows

Cash flows from operating activities are reported using the indirect method where by the profit before tax is
adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future
operating cash receipts or payments and items of income or expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities of the company are segregated.

Deferred tax assets Rs. 2216.43 lakhs as at 31st March 2025 ( Includes Rs 1028.18 lakhs which can be carried
forward for indefinitely period and Rs 1188.25 lakhs up to a certain specified period) is expected to be realized
as the company strongly believes that it has reasonably certainty of realization, as the company has enhanced
its product portfolio and the new business strategy of deeper penetration with greater operational efficiency, and
also keeping in view the realization of generation of sufficient profits in the future as anticipated / projected by the
management on a prudent basis. Moreover, there is no brought forward losses under the Income Tax Act which is
expiring during the current financial year as well as in the next financial year.

Additional Information:

Working capital term loans are secured by hypothecation of inventories, receivables and other moveable/
immovable assets.

Working capital term loans from Banks repayable on monthly instalment basis.

Various term loans against GECL have been availed with a tenure ranging from 2 to 5 year and bearing interest @9.25 % P.A.
Vehicle loans are secured against hypothecation of cars and bearing interest ranging from 9.50% to 10.00% PA.
Vehicle loans from Banks, repayment on monthly instalment basis.

* Refer note no. 41

** Includes of related party Rs.19.25 lakhs (P.Y. Rs.56.14 lakhs) (Refer note no. 41)

Additional Information:

Working capital term loans are secured by hypothecation of inventories, receivables and other moveable/
immovable assets.

Working capital term loans from Banks repayable on monthly instalment basis.

Various term loans against GECL have been availed with a tenure ranging from 2 to 5 year and bearing interest
@9.25 % p.a.

Vehicle loans are secured against hypothecation of cars and bearing interest ranging from 9.50% to 10.00% p.a.
Vehicle loans from Banks, repayment on monthly instalment basis.

37 Employee benefits

A. Defined benefit plan
Gratuity

The Company provides to the eligible employees, defined benefit plans in the form of gratuity. The gratuity
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on
termination of employment of an amount equivalent to 15 days' salary payable for each completed year of
service. Vesting occurs upon completion of five continuous years of service.

The following table sets out the details of the defined benefit retirement plans and the amounts recognised
in the financial statements based on actuarial valuation report:

B. Long term employee benefit plans
Compensated Absense

The liability for leave encashment is recognized on the basis of actuarial valuation made at the end of the
year. A provision of Rs. 704727 (31 March 2024: Rs. 253556) for the year have been made on the basis of
actuarial valuation at the year end and debited to the Statement of Profit and Loss.

Note:

i) Bank Guarantees issued by Bankers Rs. 30.50 lacs (Previous year Rs. 30.50 lacs) including for Sales
Tax and Excise demand Rs. 30.50 lacs (Previous Year Rs.30.50 lacs), against which margin kept by
bank Rs. 1.84 lacs ( Previous year Rs. 1.84 lacs).

ii) Advance Licence utilised for Import of CPT worth Rs. 87.50 lacs during the period from January,
1995 to May 1995 , DGFT issued Show Cause Notice to pay duty and penalty thereof on all above
imports and included the company's name in the defaulters list. Company challenged the said
Notice in Delhi High Court and after admitting the petition and taking into consideration all the facts,
the Delhi High Court directed the Company to deposit a sum of Rs. 20.00 lacs ( in PY 20 lacs) with
the Collector of Customs and ordered DGFT to remove Company's name from the defaulters list.
Accordingly Company has deposited the sum of Rs.20.00 lacs (Rs. 20 lacs in PY ) within the time
stipulated by the Court. Duty and penalty amount is not ascertainable at this stage. Petition has been
refiled against appeal order of DGFT.

iii) (a) The demand amounting to Rs.1113.78 lacs (previous year Rs. 1113.78 lacs) and penalty

Rs. 1113.78 lacs (previous year Rs.1113.78 lacs) for the period April 2002 to April 2003
and demand of Rs.28.99 lacs (previous year Rs.28.99 lacs ) and penalty of Rs.28.99 lacs
(previous year Rs.28.99 lacs) for the period July 1993 to February 1994 are on the basis of
differential duty on Chassis, Sub assembly parts of T.V.considered as T.V. The Honorable
Supreme Court has decided on the classification issue for the period 1989-90 and the facts
of these cases are different from the case decided by the Supreme Court. The company
had gone in appeal before CESTAT. The appeal before CESTAT were remanded back to the
Commissioner Adjudication to decide a fresh while considering the differential facts of the
case. The Commissioner has decided the cases against the company without considering the
differential facts as per directions given by the CESTAT in remand order. The company has
again filed appeal against Commissioner's order before the CESTAT. CSETAT has decided the
case against the company. The company has filed the SLP aginst the order of CESTAT before
the Supreme Court.

(b) The demand for Rs.1292.44 lacs (previous year Rs. 1292.44 lacs) and penalty Rs.1292.44
lacs (previous year Rs. 1292.44 lacs ) for the period June 1998 to March 2002 raised on the
same basis by the department is time barred and case had been decided in favour of the
company.The department had gone in appeal before CESTAT. The CESTAT had remanded
this matter to Commissioner Adjudication who has decided the case against the company
without considering direction / differential facts of the CESTAT. The company has again filed
appeal on the matter before CESTAT. CSETAT has decided the case against the company. The
company has filed the SLP aginst the order of CESTAT before the Supreme Court. Therefore
considering directions / differential facts given by CESTAT in remand order not considered in
Commissioner's orders, the company has good case on merits. Demand deposited amounting
to Rs.600.00 lacs( previous year Rs. 600.00 lacs).

(C) Miscellaneous Excise duty demand amounting to Rs.7.39 lacs( previous year Rs. 7.39 lacs)
against amount deposited Rs.2.00 lacs ( previous year Rs.2.00 lacs) and Service Tax demand
Rs.1.97 lacs(previous year Rs. 1.97 lacs) has been raised by the department against which
company has filed appeals. .

iv) The Central Sales Tax and VAT/ State Sales Tax Authorities has raised demand of Rs. 1149 lacs
(Previous Year Rs. 1149 lacs) primarily pertains to expartie order and/or some interpretation related
issues, which is under appeal and an amount of Rs. 143.16 lacs (previous year Rs.143.16 lacs)
deposited under protest, which has been disputed by the company. However in most of the cases,
required documents are being filed. The Company's appeal against the said demands are pending
before various appellate authorities forums.

v) The Goods & Service Tax Department has raised demand of Rs. 185.44 lacs (Previous Year Rs. 182.92 lacs)
primarily pertains to e- way bill not filed by transporter/mismatch of input between books v/s portal and/or
some interpretation related issues, which is under appeal and an amount of Rs. 13.72 lacs (previous year
Rs.11.20 lacs) deposited under protest, which has been disputed by the company.

vi) Income Tax Assessments of the Company have been completed upto Assessment Year 2021-22 (in
previous year upto 2018-19).

Demand has been raised of Rs.37.88 lacs (previous year Rs. 37.88 lacs) for earlier assessment year
2002-03 against which company has filed appeal before appleate authorities and amount Rs. 37.88
lacs (previous year Rs.37.88 lacs) has been deposited against demands.

vii) Appeal of Income Tax department against the ITAT order for the Assessment Year 1997-98 is lying pending
before Hon'ble Supreme Court against refund of Rs.1151.57 lacs (previous year Rs. 1151.57 lacs) received
by the Company in the Financial Year 2002-2003. There is final demand of Rs. 382.99 lacs on Rs. 1764 lacs
direct benefit to share holders is only in SLP as High Court relieved depreciation part of Rs. 3248 lacs.

viii) The company filed a SLP on merits with the Honorable Supreme Court which is pending for disposal.
However, on 16.12.2021, the Company filed a writ petition in High Court of Delhi to direct the
department to condone the delay due to Covid-19 and accept payment Rs.1210.99 lakhs as approved
in the SVLDR scheme against which pre deposit Rs 600 lakhs for settlement of the disputed Excise
matters of Rs.2435.21 lakhs and penalty thereon Rs. 2435.21 lakhs demanded by Excise authorities
related to financial year 1993-94 to 2003-04. The High Court has issued notice to the concerned
authorities which is pending for disposal. The Contingent Liability against this matter Rs 4870.42
lakhs shall stand as it is, till either the High Court or the Supreme Court decides on this matter.
Further there has been no hearing and progress in the case, however two of similar nature of cases
has been decided in the favour of the appellant by the CESTAT and Honorable Supreme Court.

ix) Contingent liabilities of Rs.1401.68 lakhs (excluding Rs.4870.42 Lakhs as referred in above viii)
related to Sales tax, Excise duty, Service tax, Goods and Service tax and Income tax etc. against
which amount deposited Rs 216.76 Lakhs which are contested by the company and pending before
various forums. However, management believes that based on legal advice, the outcome of these
contingencies will be favorable and that outflow of economic resources is not probable.

The amounts herein above do not include amount of interest or penalty whereof are not acertain
Pending completion of the legal process the impact of liability, if any, cannot be ascertained at this
stage, however, management believes that, based on legal advice, the outcome of these contingencies
will be favorable and that outflow of economic resources is not probable.

The amounts herein above do not include amount of interest or penalty whereof are not acertain
Pending completion of the legal process the impact of liability, if any, cannot be ascertained at this
stage, however, management believes that, based on legal advice, the outcome of these contingencies
will be favorable and that outflow of economic resources is not probable.

B Estimated amount of contracts remaining to be executed on capital account & not provided for (net of
. advances) is Rs. Nil (previous year Rs. Nil.).

40 Financial Risk Management

The principal financial assets of the Company include loans, trade and other receivables, and cash and bank
balances that derive directly from its operations. The principal financial liabilities of the company include loans
and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day
to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees
the management of these risks and advises on financial risks and the appropriate financial risk governance
framework for the Company.

The risks which the company is exposed to and policies and framework adopted by the company to manage these
risks are explained as under:

A Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Company is exposed to interest rate risk as its Market risk.

B Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates primarily to the Company's debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are
substantially independent of changes in market interest rates. The Company's exposure to the risk of changes
in market interest rates relates primarily to the Company's debt obligations with floating interest rates, which
are included in interest bearing loans and borrowings in these financial statements. The company's fixed rate
borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither
the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
At the reporting date the interest rate profile of the Company's interest bearing financial instrument is at its
fair value:

D Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss.
The exposure to the credit risk at the reporting date is primarily from trade receivables which are typically
unsecured and other financial assets. Majority of the company's transactions are earned in cash or cash
equivalents.

The company assesses the creditworthiness of the customers internally to whom services are rendered on
credit terms in the normal course of business. The credit limit of each customer is defined in accordance
with this assessment. Outstanding customer receivables are regularly monitored.

The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets
which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

(i) Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk at the reporting date was:

(ii) Provision for expected credit losses

Financial assets for which loss allowance is measured using life time expected credit losses
The Company uses a provision matrix to determine expected loss on portfolio of its trade receivable which
is measured using lifetime expected credit loss model. The provision matrix is based on its historically
observed default data over the expected life of the trade receivable and is adjusted for forward- looking
estimates.

The loss allowance has been measured using lifetime ECL except for financial assets on which there has
been no significant increase in credit risk since initial recognition. At each reporting date, the Company
assesses whether financial assets carried at amortised cost is credit-impaired. A financial asset is credit-
impaired when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred since initial recognition. A simplified approach has been considered for
measuring expected credit losses (ECLs) of trade receivables at an amount equal to lifetime ECLs. The
ECLs on trade receivables are calculated based on actual historic credit loss experience over the preceding
three years on the total balance of undisputed trade receivables and in case of disputed trade receiavbles
on the basis of recovery pattern. The Company monitors all the receivables, loans and other financial
assets continuously basis the factors considered while dealing. If there are any indicators of impairment on
management assessment of these receivables, loans and other financial assets, these are provided for. The
Company uses the ECL method for impairment.

Segment reporting :

Ind AS 108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and major customers.es. Based on the
""management approach"" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company's
performance and allocates resources based on analysis of various performance indicators by business segments
and geographic segments. Accordingly, information has been presented both along industry classes and geographic
segmentation of customers, industry being the primary segment. Secondary segmental reporting is performed on the
basis of the geographical location of customers. The accounting principles used in the preparation of the financial
statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the
note on significant accounting policies.

43 Disclosure under The Micro, Small and Medium Enterprises Development Act, 2006

The Company has sent letters to vendors to confirm whether they are covered under micro, small and medium
enterprise development act 2006 as well as they have filed required memorandum with prescribed authority.
Based on and to the extent of the information received by the Company from the suppliers regarding their status
under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the
auditors, the relevant particulars as at the year end are furnished below:

44 The Company has material statutory dues recoverable of Sales tax of Rs 366.90 lakhs and Income tax Rs. 214.70
lakhs which has been considered good, pending final assessment, as well as old material of value Rs.71.49 lakhs
with third party for replacement, subject to confirmation has been considered good.

(Non-Ind AS Information)

45 Additional regulatory information

) Additional regulatory information/disclosures as required by general instructions to Division-II of Schedule III to
⁾ the Companies Act, 2013 are furnished to the extent applicable to the Company.

b) The Company has not been sanctioned working capital limit in excess of Rs 5 crores on the basis of security of

⁾ current assets, in aggregate, at any point of time during the year from banks and financial institutions.

) The Company do not have any Benami property, where any proceeding has been initiated or pending against the

⁾ Company for holding any Benami property.

d) The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

e) During the year, the Company has not revalued its Property, Plant and Equipments including intangible assets.

f) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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 person(s) or entity (ies), including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall

g) lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company have not any such transaction which is not recorded in the books of accounts that has been

h) surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

_i) The Company do not have any transactions with companies struck off under section 248 of the Companies Act,
^l) 2013 or section 560 of Companies Act, 1956

46 Debtors , creditors, loans and advances are subject to confirmations except received of some parties.

The accompaning notes (1-46) form an integral part of the financial statements.

For O P Bagla & Co. LLP For and on behalf of the Board

Chartered Accountants

Firm Reg No. 000018N/N500091

Atul Bagla Ayush Jiwarajka Gopal Sitaram Jiwarajka

Partner Whole Time Director & CFO Chairman & Managing Director

M.No:91885 DIN No. 02989319 DIN:00024325

Place :New Delhi MOHD KHIZAR ALI KHAN

Date: 27.05.2025 Company Secretary