23. Financial risk management:

The Company has exposure to the following risks arising from financial instruments: -

• Credit risk;

• Liquidity risk;

• Market risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The board of directors has established the Risk Management
Committee, which is responsible for developing and monitoring the Company’s risk management policies. The
committee reports to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyses the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed periodically to reflect changes in market conditions and the
Company’s activities. The Company, through its training, standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management
policies and procedures and reviews the adequacy of the risk management framework about the risks faced
by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes
both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported
to the audit committee.

a) 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 receivables from customers
and investment securities. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the
normal course of business. The Company establishes an allowance for doubtful debts and impairment that
represents its estimate of incurred losses in respect of trade and other receivables and investments. Trade
receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country in which
the customer operates, also influences credit risk assessment. Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business

determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not
reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the
Company have not undergone any substantial change, the Company expects the historical trend of minimal
credit losses to continue

Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of Rs. 2,58,373/- (previous year Rs.
1,07,227/-).

The cash equivalents are held with banks.

Other financial assets

Other financial assets are neither past due nor impaired.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation. The Company enjoys an overdraft limit from the bank.

The Company invests its surplus funds in bank fixed deposit which carry no/low mark to market risks. The
Company monitors funding options available in the debt and capital markets to maintaining financial flexibility.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts
are gross and undiscounted and include estimated interest payments and exclude the impact of netting
agreements.

The details of contractual maturities of significant liabilities as of 31 March 2025 follow.

Amount (Rs.)

c) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is
attributable to all market risk sensitive financial instruments including foreign currency receivables and
payables and long-term debt. We are exposed to market risk primarily related to interest rate change. However,
it does not constitute a significant risk. Hence, the sensitive analysis is not given

(i) Currency risk

The Company is exposed to currency risk on account of its operations with other countries. The functional
currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies
has changed substantially in recent periods and may continue to fluctuate in the future. However, the overall
impact of foreign currency risk on the financial statement is not significant.

d) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. The fair value interest
rate risk is the risk of changes in fair values of fixed interest-bearing financial assets or borrowings because of
fluctuations in the interest rates if such assets/borrowings are measured at fair value through profit or loss. The
cash flow interest rate risk is the risk that the future cash flows of floating interest-bearing borrowings will
fluctuate because of fluctuations in the interest rates. Exposure to interest rate risk Company’s interest rate
risk arises from borrowings and finance lease obligations. The interest rate profile of the Company’s interest¬
bearing borrowings is as follows:

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A possible change of 100 basis points in interest rates at the reporting date would have increased (decreased)
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular, foreign
currency exchange rates, remain constant.

The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark
as applicable to the borrowings summarized above. This calculation also assumes that the change occurs at
the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The
period end balances are not necessarily representative of the average debt outstanding during the period.

(e) Commodity rate risk

The Company’s operating activities involve the provision of services. Hence, it is not exposed to the commodity
risk.

24. CAPITAL MANAGEMENT

For the Company’s capital management, capital includes issued capital and all other equity capital and all
other equity reserves attributable to the equity holders of the company. The primary objective of the capital
policy of the company to safeguard the Company’s ability to remain a going concern and maximize the
shareholder value.

The Company manages its capital structure and makes adjustments in the light of changes in economic
conditions, annual operating plans and long-term and other strategic investment plans. To maintain or adjust
the capital structure, the Company may adjust the amount of dividend paid to the shareholders, return capital
to shareholders or issue new shares. The current capital structure is through equity with no financing through
borrowings. The company is not subject to any externally imposed capital requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended
on 31 March 2025 and 31 March 2024.

32. There are no immovable properties whose title deeds are not held in the name of company.

33. The Company has not revalued it’s revalued its Property, Plant and Equipment during the year.

34. No fresh Loans and Advances are granted to Directors, KMPs, Promoters and related parties as defined
under Companies Act, 2013.

35. There is no capital in progress during the year.

36. There is no intangible assets during the development.

37. There are no proceedings being initiated or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

38. The Company is not required to file quarterly returns or statements of current assets with banks or financial
institutions.

39. The Company is not declared as willful defaulter by the Bank or financial institutions or any other lender.

40. The Company does not have any transactions with companies struck off under Section 248 of Companies
Act, 2013.

41. There is no registration or satisfaction of charge yet to be registered with Registrar of Companies.

42. The provisions of Section 2(87) read with Companies (Restriction on Number of Layers) Rules, 2017 is
not applicable to the company.

43. Ratio Analysis

40.1. Current Ratio

The current ratio indicates a company's overall liquidity position. It is widely used by banks in making
decisions regarding the advancing of working capital credit to their clients. Both of these numbers can be
found in a Company's balance sheet.

Current Ratio = Total Current Assets/Total Current Liabilities

Current Ratio for FY 2024-25 is 14.73 times (PY 2023-24 - 15.84) times. There is no significant change in the
current ratio during the year.

40.2. Debt Equity Ratio

Debt-to-equity ratio compares a Company's total debt to shareholders equity. Both of these numbers can be
found in a Company's balance sheet.

Debt Equity Ratio = Total Debt*100/Share Holder's Equity.

Debt Equity Ratio for FY 2024-25 is Nil (PY 2023-24 - Nil). There is no significant change in the ratio.

40.3. Debt Service Coverage Ratio

Debt Service coverage ratio is used to analyses the firm's ability to payoff current interest and instalments.

Debt Service Coverage Ratio = Earnings available for Debt Service/Debt Service

Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other
amortizations Interest other adjustments like loss on sale of Fixed assets etc.

Debt service = Interest & Lease Payments Principal Repayments. No repayments is considered for loan
repayable on demands.

“Net Profit after tax” means reported amount of “Profit / (loss) for the period” and it does not include items of
other comprehensive income.

The Debt Service Coverage Ratio for FY 2024-25 is Nil (PY2023-24 Nil). There is no significant change in the
ratio.

40.4. Return on Equity (ROE)

It measures the profitability of equity funds invested in the Company. The ratio reveals how profitability of the
equity-holders' funds have been utilized by the Company. It also measures the percentage return generated to
equity-holders. The ratio is computed as:

ROE = Net Profit after Taxes-Preference Dividend (if any)*100/ Average Shareholder's Equity

The Return on Equity for FY 2024-25 is 0.71% (PY 2023-24 0.17%)). The change in ratio is due to reduction in
loss and increase in profit.

40.5.Inventory Turnover Ratio

This ratio also known as stock turnover ratio and it establishes the relationship between the cost of goods sold
during the period or sales during the period and average inventory held during the period. It measures the
efficiency with which a Company utilizes or manages its inventory.

Inventory Turnover Ratio = Sales/Average Inventory

Average Inventory = (Opening Inventory Closing Inventory)/2

Inventory Turnover Ratio for FY 2024-25 is Nil times (PY 2023-24 - Nil times).

There is no significant change in the ratio.

40.6.Trade receivable Turnover Ratio

It measures the efficiency at which the firm is managing the receivables.

Trade Receivable Turnover Ratio = Net Credit Sales/Average Accounts Receivable
Net credit sales consist of gross credit sales minus sales return.

Trade receivables includes sundry debtors and bill's receivables Average trade debtors = (Opening Closing
balance / 2

Trade Receivable Turnover Ratio is FY 2024-25 is NIL in (PY 2023-24 - Nil). The Change is due to changed
credit policy of the company.

40.7. Trade Payables Turnover Ratio

It indicates the number of times sundry creditors have been paid during a period. It is calculated to judge the
requirements of cash for paying sundry creditors. It is calculated by dividing the net credit purchases by
average creditors

Trade Payables Turnover Ratio = Net Credit Purchases/Average Trade Payables

Net credit purchases consist of gross credit purchases minus purchase return.

Average trade Payables= (Opening Closing balance / 2

Trade Payable Turnover Ratio is FY 2024-25 Nil times (PY 2023-24 - Nil times). The Change is due to
changed credit policy of the company.

40.8. Net Capital Turnover Ratio

It indicates a company's effectiveness in using its working capital. The working capital turnover ratio is
calculated as follows: Net Sales divided by the average amount of working capital during the same period.

Net Capital Turnover Ratio = Net Sales/ Working Capital

Net Sales shall be calculated as total sales minus sales returns. Working capital shall be calculated as current
assets minus current liabilities.

Net Capital Turnover Ratio FY 2024-25 33.60 times (PY 2023-24 - 28.68 times). The change is due to
increased turnover.

40.9. Net Profit Ratio

It measures relationship between Net profit and Sales of the business.

Net profit Ratio = Net profit/Sales
Net profit shall be after tax.

Net sales shall be calculated as total sales minus sales returns.

Net profit for FY 2024-25 is 0.0081% (PY -2023-24 0.0020%)). There is no significant change in the ratio
during the year.

40.10. Return on Capital Employed

Return on capital employed indicates the ability of a company's management to generate returns for both the
debt holders and the equity holders. Higher the ratio, more efficiently is the capital being employed by the
company to generate returns.

Return on Capital Employed = Earning Before Interest and Taxes * 100/Capital Employed
Capital Employed = Tangible Net worth Total Debt Differed Tax Liability

The return on Capital Employed for FY 2024-25 is 0.71% (PY 2023-24 - 0.17%). The change is due to
increase in the profit.

40.11. Return on Investments

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to
their investment cost. The higher the ratio, the greater the benefit earned.

ROI = Cash Profit *100/Total Investments

Cash Profit = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations
other adjustments like loss on sale of Fixed assets etc.

Total Investments = Average Fixed Assets Closing Balance of Working Capital Balance

The Average Fixed Assets is calculated as average of opening Fixed Assets and closing Fixed Assets. The
value of fixed assets has been taken as per books net of depreciation.

The Return on Investments for FY 2024-25 is 27.30% (PY 2023-24 5.79%). The change is due to increase in
the profit.

41. The Board has approved the Scheme of amalgamation during the year. The scheme is pending for approval
with BSE Limited. The same will be placed before shareholders for approvals, once the same has been approved
by the SEBI and Stock Exchange. The necessary entries will be made in the books of accounts when the
competent authority will approve the scheme.

42. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries;

43. The company has 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries

46. There is no income which has not been recorded in the books of accounts has been surrendered or disclosed
as income during the year under the tax assessments under Income tax Act, 1961.

47. The Company has not traded or invested in virtual currency or crypto currencies during the year.

For, Krutesh Patel & Associates FOR AND ON BEHALF OF THE BOARD OF DIRECTOR

Chartered Accountants

Krutesh Patel (Omprakash Jain) (Ravindra Jain)

Partner Managing Director Director

M. No.140047 DIN:00171365 DIN:00412684

Firm Reg No. 100865W

Place : Ahmedabad Place : Ahmedabad

Date : 21/05/2025 Date: 21/05/2025