2.16 Provision, Contingent Liabilities and Contingent Assets:

Provisions are recognized when the Company has a present
obligation (legal or constructive) as a result of a past event
and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance
contract, the reimbursement is recognized as a separate
asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

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 not wholly within 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 or reliable estimate of the same is
possible. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized
because it cannot be measured reliably.

A contingent asset is not recognised unless it becomes
virtually certain that an inflow of economic benefits will
arise. When an inflow of economic benefits is probable,
contingent asset are disclosed.

Contingent assets and liabilities are reviewed at each
balance sheet date.

2.17 Commitments:

Commitments are future liabilities for contractual
expenditure. Commitments are classified and disclosed as
follows:

• Estimated amount of contracts remaining to be
executed on capital account and not provided for,

• Uncalled liability on shares and other investments
partly paid,

• Funding related commitment to subsidiary, associate
and joint venture companies and,

• Other non-cancellable commitments, if any, to the
extent they are considered material and relevant in the
opinion of management.

Other commitments related to sales/procurements made
in the normal course of business are not disclosed to avoid
excessive details.

2.18 Extraordinary and Exceptional Items:

Income or expenses that arise from events or transactions
that are clearly distinct from the ordinary activities of the
Company are classified as extraordinary items. Specific
disclosure of such events/transactions is made in the
financial statements. Similarly, any external event beyond
the control of the Company, significantly impacting income
or expense, is also treated as extraordinary item and
disclosed as such.

On certain occasions, the size, type, or incidence of an item
of income or expense, pertaining to the ordinary activities
of the Company, is such that its disclosure improves an
understanding of the performance of the Company. Such
income or expense is classified as an exceptional item and
accordingly disclosed in the notes to accounts.

2.19 Foreign Currency Transactions:

Foreign currency transactions are recorded on initial
recognition in the reporting currency, using the exchange
rate at the date of the transaction.

Subsequently, at each Balance Sheet date, foreign
currency monetary items are reported using the closing
rate, whereas non-monetary items are carried at historical
cost, determined using the exchange rate at the date of the
transaction.

Exchange differences that arise on settlement of monetary
items or on reporting of monetary items at each Balance
Sheet date at the closing rate are recognised as income or
expense in the period in which they arise.

Shares allotted for consideration other than cash (for period of five years preceding the B/S date)

(1) 66,00,000 Equity Shares of Rs 10 each were issued as fully paid by way of public issue on 9th April 2024 at face value of Rs 10
each with a premium of Rs 35 per share.

(2) 1,57,13,056 Equity Shares of Rs 10 each were issued as fully paid bonus shares on 16th January 2024 in the ratio of 62:10 (i.e.
62 (sixty two)) fully paid up equity share for every 10 ( ten ) Equity share held to the shareholders.

(3) 24,13,680 Equity Shares of Rs 10 each were issued as fully paid bonus shares on 27th March 2023 in the ratio of 20:1 (i.e. 20
(twenty)) fully paid up equity share for every 1 ( one ) Equity share held to the shareholders.

Repayment terms of loans and security details:

Secured loans:

(i) Car loan taken from Punjab National Bank of Rs 16,00,000 is repayable in 36 monthly equal instalments of Rs 50,731 each
beginning from 16/08/2023 and ending on 16/07/2026 and is secured against hypothecation of the financed vehicle.

(ii) Commercial vehicle loan taken from HDFC Bank of Rs 22,61,757 is repayable in 60 monthly equal instalments of Rs 47,730
each beginning from 05/05/2024 and ending on 05/04/2029 and is secured against hypothecation of the financed vehicle.

(iii) Commercial vehicle loan taken from AU Small Finance bank of Rs 5,00,000 is repayable in 48 monthly equal instalments of
Rs 12,684 each beginning from 10/07/2022 and ending on 10/06/2026 and is secured against hypothecation of the financed
vehicle.

(iv) Commercial vehicle loan taken from HDFC bank of Rs 15,98,233 is repayable in 60 monthly equal instalments of Rs 33,760
each beginning from 05/09/2024 and ending on 05/08/2029 and is secured against hypothecation of the financed vehicle.

(v) Loan against property taken from ICICI Bank of Rs 84,04,473 is repayable in 222 monthly equal instalments of Rs 74,600 each
beginning from 10/07/2025 and ending on 10/02/2043 and is secured against hypothecation of the property.

(vi) Commercial vehicle loan taken from AU Small Finance bank of Rs 8,12,360 is repayable in 36 monthly equal instalments of
Rs 26,500 each beginning from 11/07/2025 and ending on 10/07/2028 and is secured against hypothecation of the financed
vehicle.

(vii) Machinery term loan disbursed from ICICI bank of Rs 2,44,86,000 is repayable in 60 monthly equal instalments of Rs 4,08,100
each beginning from 07/07/2025 and ending on 07/06/2030 and is secured against hypothecation of the financed vehicle.

Income Tax:

(i) The Company has filed appeals before the Commissioner of Income Tax (Appeals) against assessment orders issued under
Section 143(3) of the Income-tax Act, 1961 for Assessment Years 2022-23 and 2010-11. Necessary submissions have been
made to the respective authorities and the matters are pending adjudication as at the reporting date.

(ii) The Company has filed a rectification application under Section 143(1)(a) of the Income-tax Act, 1961 for Assessment Year
2017-18 against the intimation order issued by the Income Tax Department. The rectification request has been submitted and
the rectification order is pending as at the reporting date.

(iii) The Income Tax Department has filed a petition before the Hon’ble High Court of Maharashtra challenging the order passed
by the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2009-10. The matter is pending admission before the Hon’ble
High Court as at the reporting date.

GST:

(iv) The company has filed an appeal before the Office of commissioner of Central GST (appeals) Belgavi and Superintendent
-Central Tax, Mangalore for year 2019-20 against the notice received u/s 73 of the GST Act regarding demandand raised a
tax liability of Rs 15,82,104/-. The company has made an appeal before GST appeals Belgavi on 21.11.2024 and documents
submitted to GST dept, Belgavi on 28.11.2024 and 10% pre deposit has been paid.

* The discount rate is based upon the yield of government bonds and the salary increase should take into account inflation, senioi
promotion, and other relevant factors. However, no explicit allowance is used for disability. As per Accounting standards, select
of appropriate assumption is responsibility of the entity. Though entity has been advised on the suitability wherever applicable,
report is based on assumptions finalized by the entity.

D. Characteristics of defined benefit plans.

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framew
which may vary over time.

13) Disclosures under Accounting Standard - 7:

In respect of composite contracts (for supply cum services) revenue is recognized over the contract term on the percentagf
completion method and with the said Accounting Standard in respect of contracts in progress as at March 31,2026 & March

OTHER ADDITIONAL DISCLOSURES:

a. The Company do not hold any benami property and no proceedings have been initiated or pending against the Company for
holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made thereunder.

b. The Company do not have any transactions with struck-off companies under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.

c. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period except the charge pending to be created on commercial vehicle of Rs 43.59 lakhs.

d. The Company have not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

e. The company have not advanced or given loan or invested fund (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 that the
Intermediary shall:

(i) 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.

f. 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:

(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 to or on behalf of the Ultimate Beneficiaries.

g. The Company has not undertaken 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).

h. The Company has not been declared as a ‘Wilful Defaulter’ by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

i. The company has granted loans or advances to directors, promoters, KMP’s and the Related parties during the year. The details
are here as under:

j. The Title deeds of all the immovable properties owned and disclosed (other than properties where the Company is the lessee
and the lease agreements are duly executed in favour of the lesseee) in this financial statements are held in the name of the
Company.

k. “The Company has been sanctioned working capital facilities by ICICI Bank and Kotak Bank of India against the security of
current assets. We confirm that the Company has submitted the required quarterly returns and statements, including stock
statements, invoice due statements, ageing analysis of invoice due, and other financial information, to the respective banks in
accordance with the stipulated terms of sanction.

To the best of our knowledge and belief, and based on the records maintained, the said quarterly returns and statements
submitted to the banks are in agreement with the unaudited books of account for the respective quarters and with the audited
financial statements for the financial year ended March 31,2026.”

l. The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

m. The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous
financial year.

n. The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the year.