xiv. Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

A contingent liability is disclosed where, as a result of past events, there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

xv. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

xvi. Current assets

a. Inventories

Stores and spare parts are valued at the lower of cost and net realisable value, computed on a weighted average basis.

Raw materials, packing materials and work-in-process are carried at cost, computed on a weighted average basis, after providing for obsolescence. In case there is a decline in replacement cost of such materials and the net realisable value of finished products in which they will be used is expected to be below cost, the value of

such materials and work-in-process is appropriately written down.

Finished products are valued at the lower of cost (computed on weighted average basis) and net realisable value.

Cost includes an appropriate portion of manufacturing and other overheads, where applicable. Excise duty on finished products is included in the value of finished products inventory.

b. All other items of current assets are stated at cost after adequate provisions for any diminution in the carrying value.

xvii. Employee benefits

a. Short term employee benefits

All employee benefits payable /available within twelve months of rendering the service are classified as shortterm employee benefits. Benefits such as salaries, wages and bonus, etc., are recognised in the statement of Profit and Loss in the period in which the employee renders the related service.

b. Post -employment benefits Defined contribution plans

Defined contribution plans are provident fund scheme, superannuation scheme and part of the pension fund scheme for eligible employees. The Company's contribution to defined contribution plans are recognised in the statement of Profit and Loss in the financial year to which they relate.

The Company makes specified monthly contributions towards employees' provident fund to trusts administered by the Company/Regional Provident Fund Commissioner; towards superannuation fund to trusts managed by Life Insurance Corporation of India; and towards pension fund to respective trusts administered by the Company, where established.

Where such pension trusts have not been established, the Company makes provision for the liability as on the date of the Balance Sheet. The minimum interest payable by the provident fund trusts to the beneficiaries every year is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the trusts and the notified interest rate basis actual valuation as at the date of the Balance Sheet.

Defined benefit plans

Liability for funded post-retirement gratuity, pension and unfunded post-retirement medical benefit is

accrued on the basis of actuarial valuation as at the date of the Balance Sheet using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured as the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields of Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the statement of Profit and Loss. In case of funded schemes, differential between fair value of plan assets of the trusts and the present value of obligations, as per the actual valuation, is recognised as an asset or liability based on the assessment of related cash flows.

c. Other long term employee benefits

Entitlements to annual leave and sick leave and long-term service awards are recognised when they accrue to employees. All leave entitlements can be encashed only at the time of retirement/ termination of employment or may be availed during the term of employment, subject to a restriction on the maximum number of accumulations of leave entitlement days.

The Company determines the liability for long term employee benefits on the basis of actuarial valuation as at the year end.

xviii. Research and development

Revenue expenditure on research and development, including contribution to research associations, is charged to the statement of Profit and Loss. Capital expenditure on tangible assets for research and development is shown as additions to fixed assets.

xix. Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Note No. 31 Comparatives

The current year figures of the financial statements of the Company are for the year ended 31 March 2024, whereas the comparable figures are not provided as the entity is incorporated in the same year as on 06 April 2023.

Note No. 32 Other legal and statutory disclosures

i. The Company does not hold any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company or is jointly held with others.

ii. The Company has not revalued any of its property, plant and equipment during the period 31 March, 2024

iii. The Company has not granted any loans or advances which are in the nature of loans to promoters, directors, KMPs and the related parties as defined under Companies Act. 2013, that are repayable on demand or without specifying any terms or period of repayment.

iv. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Com

pany for holding any Benami property.

v. The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act. 2013) or consortium thereof or other lender in d: with the guidelines on wilful defaulters issued by the Reserve Bank

vi. The Company does not have any relationship with struck off companies.

vii. The Company is in compliance with the number of layers for its holding in its subsidiary companies prescribed under clause Section 2 (87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

viii. The Company does not have any approved scheme, to be complied with, under section 230 to 237 of the Companies Act, 2013.

ix. The Company does not have any 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.

x. The Company has not received any fund from any person(s) or entity(is), 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.

xi. The Company has not advanced or loaned or invested funds (cither borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(is), including foreign entities (I diaries) 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.

For TATTVAM & CO. For and on behalf of the Board of Directors of

Chartered Accountants ROYAL SENSE LIMITED

ICAI Firm Registration No.: 015048N

Sagar Arora Rishabh Arora Harmeet Singh

Partner Managing Director Whole- time Director

M. No. 520999 DIN : 09745543 DIN: 10103440

Place: New Delhi Place: New Delhi Place: New Delhi

Date: 30-05-2024 Date: 30-05-2024 Date: 30-05-2024

Rishabh Arora Priyanka Bhutani

Chief Financial Officer Company Secretary

Place: New Delhi Place: New Delhi

Date: 30-05-2024 Date: 30-05-2024