XIV Provision, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the Company has a present obligation as a result of past event 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.

b) 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 arises from past event but is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation or
cannot be measured reliably. The Company does not recognize a contingent liability but discloses its
existence in the financial statements.

c) A Contingent Asset is not recognised, however it is disclosed where an inflow of economic benefit is
probable as per IND AS 37

XV Classification of Current / Non Current Assets

All assets and liabilities are presented as Current or Non-current as per the Company's normal operating
cycle and other criteria set out in Schedule III to The Companies Act, 2013 and amendments thereon.
Based on the nature of products and the time between the acquisition of assets for processing and their
realization, the Company has assumed its operating cycle as 12 months for the purpose of Current / Non
current classification of assets and liabilities.

XVI Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. The company recognises a financial asset or a financial liability in
its balance sheet when, and only when, it becomes a party to the contractual provisions of the instrument.
Classification: The company has classified Financial assets and Financial liabilities in accordance with
definition contained in IND AS 32 Financial Instruments: Presentation

Measurement: Financial assets and financial liabilities which are material are measured at Fair value/
Amortised cost (using the effective interest rate method) based on their nature and contractual
arrangements entered into, in accordance with Ind AS 109, unless specified otherwise.

Notes:

1 M/s Punjab Digital Industrial Systems Ltd (PDISL), the fully owned subsidiary, has been ordered to be wound
up by the order of Hon'ble Punjab & Haryana High Court vide order dated 20/02/2009. The company has
filed its statement of affairs with the Official Liquidator appointed by the said court and all books of accounts/
records and store items have been handed over to him. A provision of Rs. 40.35 lacs towards expenses
incurred by the company on their behalf, Rs. 4.55 Lacs in Sundry Debtor's and Rs.24.79 lacs being investment
in PDISL has been kept in the accounts of holding company.

2 PCL Telecom Ltd, another subsidiary company, which was ordered to be wound up by the Hon'ble Punjab
and Haryana High Court vide its order dated 20th October 2005, has been dissolved and accordingly written
off in books of accounts.

For and on behalf of the Board of Directors

For Ashwani & Associates.

CHARTERED ACCOUNTANTS Parminder Pal Singh Sandhu, IAS Manjeet Singh Dhillon,ITS (Retd.)

FRN: 000497N Managing Director DIRECTOR

DIN:10298745 DIN: 10903571

CA Arvind Jain

(PARTNER)

M.No: 097549 CA Ramesh Goel Pratima Yadav

CHIEF FINANCIAL OFFICER COMPANY SECRETARY

UDIN: 25097549BMGQJB6264

PLACE: S.A.S. Nagar (Mohali)

DATED: 03.06.2025