(xvii) Provisions and Contingencies

(a) Provisions

Provisions are recognized when there is a
present obligation as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and there is
a substantial degree of the estimation of the
amount of the obligation.

(b) Contingencies :-

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present
obligation that is not recognized because it is
not probable that an outflow of resources will
be required to settle the obligation. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized
because it cannot be measured reliably and are
disclosed by way of notes.

Contingent assets are not recognised in the
books of the accounts However, when the
realisation of income is virtually certain, then
the related asset is no longer a contingent
asset, but it is recognised as an asset and
the corresponding income is booked in the
Statement of Profit and Loss.

Contingencies have been disclosed under
note no. 28 to accounts

(xviii) Cash and Cash Equivalents

(a) Cash and cash equivalents include cash in
hand and at bank, deposits held at call with
banks, Fixed Deposits.

For the purpose of the Statement of Cash
Flows, cash and cash equivalents consists of
cash and short term deposits, having maturity
less than 3 months.

(xix) Segment Reporting

(a) The Company identifies primary segments
based on nature of products and returns
and the internal organisation and
management structure.

2.2 Rights, Preferences and restrictions attached to Equity Shares:

The Company has only one class of shares referred to as equity shares having a par value of H. 10 each. Holder
of equity shares is entitled to one vote per share and Dividend as and when declared by the Company. In case
of partly paid up share the shareholder shall be entitled to dividend only on the paid up share capital. In case
any shareholder makes any default in payment of any call he shall not be entitled to vote in annual general
meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any
of the 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.

2.5 The Company has alloted 1,28,74,320 Bonus Shares of face value of H. 10 each amounting to INR 1287.43
Lakhs out of Reserves and Surplus to the existing shareholders as on 07.06.2024

The Company has issued and allotted 52,08,000 Equity Shares of face value of H. 10 each at the priceof H.
380 each (including H. 370 Security Premium) for total consideration of H. 19790.40 Lakhs through SME IPO
(Initial Public Offer) on National Stock Exchange of India (NSE) on 29.10.2024.

Pursuant to the allotment of Equity shares as Bonus share and In public issue, the paid up Equity Share
capital of the company stands increased at 1969.16 Lakhs.

2.6 The company did not have outstanding calls unpaid by the directors and officers of the Company (Previous
Year NIL) and also did not have any amount of forfeited shares (Previous Year NIL).

2.7 No shares have been brought back during last 5 years immediately preceding March-2025

4.2 The Company does not have any continuing default in repayment of loans and interest as on the reporting date.

4.3 The Company has not taken any loan from financial institution or banks for any specified purpose for which
it is not utilised.

4.4 The company has not been declared as "wilful defaulter" by any bank or financial Institution or other lender.

4.5 Term Loan from Yes bank is secured as under:-

(a) Collateral Security- Hypothecation of industrial property of DTA-02-07 & 08, Mahindra World City,
Ajmer Road, Jaipur

4.6 Term Loan from ICICI bank is secured as under:-

(a) Collateral Security- Hypothecation of industrial property of Evernest Shelter Private Limited i.e. DTA-02-
09 & 10, Mahindra World City, Ajmer Road, Jaipur

4.7 All the above loans taken by the company has been guaranteed by the personal guarantee of Mr. Dinesh
Talwar and Mr. Shivam Talwar.

7.1 Working capital loan from Yes bank and ICICI Bank is secured as under:-

(a) Primary Security- First Pari Passu charge by way of hypothecation over entire Present and future Current
assets and Movable Fixed Assets(both present and future) of the company under Multiple Banking.

(b) Collateral Security- Hypothecation of existing Plant and Machinery and entire movable Fixed asset,
equitable mortgage over all immoveable and Property, Plant and Equipment of the Company at F-679-
680, and G-694 Sitapura Industrial Area (Extension), Jaipur, residential property of Mr. Dinesh Talwar
and Mr. Shivam Talwar situated at B-41 Gokul Vatika, JLN Marg, Jaipur and industrial property of
DTA-02-07 & 08, Mahindra World City, Ajmer Road, Jaipur and Hypothecation of industrial property
of Evernest Shelter Private Limited (being its Subsidiary) i.e. DTA-02-09 & 10, Mahindra World City,
Ajmer Road, Jaipur

(c) The working capital finance has been guaranteed by the personal guarantee of Mr. Dinesh Talwar and
Mr. Shivam Talwar.

7.2 The Company does not have any continuing default in repayment of loans and interest as on the reporting date.

7.3 The company is not declared as "wilful defaulter" by any bank or financial Institution or other lender as on
the reporting date.

7.4 There is no such borrowing from banks and financial institutions taken by company for specific purpose but
not used for same purpose.

7.5 The stock records maintained by the company do not facilitate day to day valuation of inventory, despite of day to
day quantitative records being maintained. However, year end Inventory is assigned valuation. In view of this,
Quantitative stock statements submitted to bank are not subject to verification/ reconciliation with books.

7.6 The Company has borrowings from banks on the basis of security of current assets and the quarterly returns
or statement of current assets filed by the company with the bank are not in agreement with the books of
accounts. Summary of reconciliation and reasons of material discripencies are disclosed below:

28. Contingencies and Other Commitments (Contd..)

28.2Contingent Assets

The Company has filed few cases for delayed payments under the provisions of the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006, which remains pending as of the reporting date. While the
outcome of these cases is uncertain and subject to the decision of the MSME Court.

Company has Booked unpaid custom duty as liability Amounting to H. 1,02,50,660.90 including interest,
which is contingent to be received back in case of fulfilment of export obligation.

29. Undisclosed Income

29.1The Company does not have any transaction or undisclosed income which are reported by tax authorities
under any assessment year under tax Assessment (such as, search or survey or any other relevant provisions)
under the income tax Act- 1961 and rules made thereunder.

30. Transactions with Struck off Companies

30.1The company has not transacted with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

31 Other Information

31.1The Company have not traded or invested in Crypto currency during the financial year.

31.2The Company have not advanced or loaned or invested fund to any other person or entity, including foreign
entities (intermediaries) with the understanding that the intermediaries 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)

b) Provide any guarantee, security or the like to or on behalf of Ultimate Beneficiaries

31.3The Company have not received any fund from any person or entity, including foreign entities (Funding
Parties) 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)

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

As per our separate report of even date

For HC Bothra & Associates For and on behalf of the Board of Directors of Danish Power Limited

Chartered Accountants
FRN 008950C

Abhishek Jain (Dinesh Talwar) (Shivam Talwar)

Partner Chairman & Whole Time Director Managing Director

M. No. 401501 DIN: 00183525 DIN: 01730625

Place : Jaipur Vimal Chauhan

Date : 09-05-2025 Company Secretary

M. No. A54984