Note 2.1 - Terms & Conditions

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share entitled to one vote per share.

In the event of liquidation of the Company, the holder of equity shares 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 shareholders.

Note 2.4 - Bonus Shares/Buy Back/Shares for consideration other than cash issues during the past years

The Company has approved the allotment of 45,00,000 fully paid-up equity shares of ?10 each as bonus shares. The bonus issue was made in the ratio of 1.5 (one and a half) equity shares for every one equity share held as on the record date, by capitalising ?4.5 crore from the Reserve and Surplus (See note 39).

Hypothecation of stocks, book debts and the entire current assets (both present and future) of the company along with Collateral Security and Fixed Deposits as below:

1. Registered mortgage of RCC Godown No. 7 on ground floor, Godown No. 107 on first floor, Godown No. 207 on 2nd floor in Maa Padmavati Complex along with equal area of land bearing survey no 46, Hiss No 3 at Mouje Val Taluka Bhiwandi Dist Thane and Shop no 11, ADM.242.25 SQ Ft Carpet area on ground floor B wing within the bldg known as Siddhi Avenue constructed on portion of Avenue C-1 situated at village Dongare, Vasai Dist Palghar in name of Divyansh Mukesh Gupta

2. Registered mortgageof RCC Godown no 8 & 9 on ground floor, Godown No. 108 &109 on first floor , Godown No. 208 &209 on 2nd floor area admeasuring 2321.00 sq Ft in bldg no F "Maa Padmavati Complex along with equal area of land bearing survey no 46, Hissa No 3 at Mouje Vala lukaBhiwandi Dist Thane and Shop no 10, ADM.197.63 SQ Ft Carpet area on ground floor B wing within the bldg known as Siddhi Avenue constructed on portion of Avenue C-1 situated at village Dongare in name of Vijaya Mukesh Gupta

3. Fixed Deposit with Union Bank Account No.: 318503031042058 (Deposit Principal Amount as on 31.03.2025 :24,74,344)

4. Fixed Deposit with Union Bank Account No.: 318503031043731 (Deposit Principal Amount as on 31.03.2025 :29,62,249)

5. Fixed Deposit with Union Bank Account No.: 318503031046174 (Deposit Principal Amount as on 31.03.2025 :2,45,00,000) Personal Guarantees of Directors

1. Mr. Divyansh Mukesh Gupta

2. Ms. Mallika Mukesh Gupta

(As Per Sanction Letter dated 18.01.2025)

Note 7.2:

Statements of Current Assets have been regularly filed with the bank on monthly basis for Cash Credit from Bank

Note 27: Earnings Per Share

Disclosure as required by Accounting Standard - AS 20 "Earnings Per Share" notified under The Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has not issued any potential diluted equity share and therefore the Basic and Diluted earnings per Share will be the same. The earnings per share is calculated by dividing the profit after tax by weighted average number of shares outstanding.

Note: As per the Memorandum of Understanding (MoU) dated 30.11.2024, M/s Kundan Industries Ltd. (Transferor) has agreed to transfer all rights, title, and interest in specific properties to M/s Kundan Edifice Ltd. (Transferee) for a total consideration of ^30,75,00,000 (Rupees Thirty Crores Seventy-Five Lakhs only). The payment structure is as follows:

(i) An amount of ?6,00,00,000 has already been paid on or before 31 March , 2025.

(ii) A further amount of ^15,00,00,000 will be paid by the Transferee to the Transferor as second phase

(iii) The remaining amount of ?9,75,00,000 will be paid upon the registration of the asset.

Note 32: Employee Benefits Note 32.1: Provident Fund

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

Note 32.2: Gratuity

The benefits payable under this plan are governed by "Gratuity Act 1972". Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member‘s length of service and salary at retirement age.

The following tables summarise the components of net benefit expense recognised in the summary statement of profit or loss and the funded status and amounts recognised in the statement of assets and liabilities for the respective plans:

Note 34: Lease

The Company has taken premises on operating lease and entered in to Cancellable Leave and License Agreements with various parties. An amount of Rs 2,27,66,807 (P.Y. Rs. 2,03,01,488) is recognised as lease expense in the Statement of Profit and Loss for the year ended March 31,2025.

General description of Leasing arrangements:

i) Leased Assets : Factory Premises

ii) There is lock in period of 24 months in one factory premises. Also company have no rights to terminate the agreement.

iii) There is escalation clause in the lease arrangements. There are no restrictions imposed by the Lease arrangements. There are no Sublease.

iv) At the expiry of lease term , the company has an option either to return the asset or extend the term by giving notice in writing.

Note 35: Segment Reporting

In accordance with the requirements of Accounting Standard 17 ’’Segmental Reporting”, the Company’s business consist of one reportable segment of business of "Manufacture & Selling LED Strip Lights" hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital employed are given.

Note 36:

Certain Trade receivables, Advances and Trade payables as at March 31,2025 are subject to confirmation of balances and reconciliation with the respective parties, the impact of which is not ascertained. The financial

statements do not include the impact of adjustments, if any, which may arise out of the confirmation and reconciliation process. Management is of the opinion that there will be no significant impact on the financial statements.

Note 37:

In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 38(a) During the current financial year, the Company has incurred a CSR expenditure of ?6,50,000 through a contribution to the PM CARES Fund, as per Receipt No. PMNRF/Web/202409241000012 dated 24.09.2024. This contribution relates to the CSR obligation for the financial year 2023-24, which the Company was unable to fulfill within that year. Accordingly, the donation has been made during FY 2024-25 in compliance with the applicable provisions of the Companies Act.

Note 39:

The board of directors of the Company in the Board meeting dated 16th February, 2023 and Shareholders of the Company in the Extra Ordinary General Meeting dated 13th March, 2023 have approved the sub-division of each of the Equity Share Capital of the Company having face value of Rs.100/- each in the Equity share capital of the company sub-divided into 10 Equity shares having a face value of Rs.10/- each (" Sub- division"). As a result of this the equity portion of authorized share capital of the company is revised to 1,10,00,000 equity shares of face value of Rs 10 each i.e. Rs 1,100 Lacs. as on the date of signing of the financials. Further the Board of Directors at its meeting held on 29th March 2023, pursuant to section 63 and other applicable provisions , if any of the Companies Act 2013 and rules made thereunder, proposed that a sum of Rs.450 Lacs be capitalised as Bonus Equity Shares out of free reserves and surplus, distributed amongst the Equity Shareholders by issue of 45,00,000 Equity Shares of Rs.10 each credited as Fully paid to the Equity Shareholders in the proportion of of 1.5 (One decimal Five) Equity Share for every 1 (One) Equity Shares.It has been approved in the extra ordinary general meeting held on 13th March, 2023. The Board of Directors of the Company in the Board meeting dated March 31,2023 alloted the Bonus Equity Shares to the shareholders of the Company. As a result of this the issued, subscribed & fully paid up equity share capital of the company as on date of signing of the financials is 75,00,000 equity shares of face value of Rs 10 each i.e. Rs 750 Lacs.Further The Board of the Directors at their meeting held on 21st September, 2023 allotted 27,72,000 equity shares of face value of Rs 10 each i.e. Rs 27.72 Lacs. As a result issued, subscribed & fully paid up equity share capital of the company as on date of signing of the financials is Rs. 1,02,72,000. Earnings Per Share calculations have been reinstated in all the periods to give effect of this subdivision (Split) and bonus.

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

ii) The company has not registered a charge with the Registrar of Companies (ROC) for the assets hypothecated as security against the loans availed from Union Bank of India under the following facilities:

1. Term Loan GECL 318506990000109

2. Term Loan TL009 318506390001797

3. Term Loan MSME Suvidha 318506640000005

Also, charge satisfaction of ?2,00,00,000 from Union Bank of India, is yet to be satisfied. The filing of Form CHG-4 with the ROC for satisfaction of this charge is currently in process.

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

iv) During the audited period, the Company has not revalued its Property, Plant and Equipments.

v) The Company have not traded or invested in Crypto currency or Virtual Currency during the audited period.

vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

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

ix) Based on the information available with the Company, the Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Note 41:

The Balance sheet, Statement of profit and loss, Cash flow statement, Statement of significant accounting policies and the other explanatory Notes form an integral part of the financial statements of the Company for period ended March 31, 2025 & March 31 2024.