2.6. Provisions and Contingent Liabilities

The Company creates a provision when there is present obligation as a result of past
events, 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. A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. When the likelihood of outflow of resources is remote, no
provision or disclosure is made. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

2.7. Foreign Currency Translation

Transactions in foreign currencies are initially recorded in the functional currency at
the spot rate of exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated into the functional
currency at the spot rate of exchange at the reporting date. All differences arising on
non-trading activities are taken to other income/expense in the Statement of Profit
and Loss.

Non-monetary items that are measured at historical cost in a foreign currency are
translated using the spot exchange rates as at the date of recognition.

2.8. Leases

Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased asset are classified as operating leases. Operating lease
payments are recognized as an expense in the Statement of profit and loss.

2.9. Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and
drafts on hand, balance with banks in current accounts and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of
change in value.

2.10. Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. Earnings considered in ascertaining the Company’s
earnings per share is the net profit for the period after deducting preference dividends
and any attributable tax thereto for the period. The weighted average number of equity
shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, sub-division of shares etc. that have changed the number
of equity shares outstanding, without a corresponding change in resources. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders is divided by the weighted average number of
equity shares outstanding during the period, considered for deriving basic earnings per
share and weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

2.11. Prior Period Items

All identifiable items of income and expenditure pertaining to prior period are
accounted as "Prior Period Adjustments".

2.12. Other Accounting Policies

These are consistent with generally accepted accounting principles. The figures have
been regrouped for comparison purpose wherever applicable. Quarterly and Annual
figures may not match entirely with these results due to rounding off.

23. As per the information available with the company, there is no small scale (SSI)
undertakings to whom the company owes a sum which is outstanding for more than 30 days.
The company has not received any information from the supplier regarding their status under
the Micro Small & Medium Enterprises Development Act, 2006 and hence disclosures, if
any, relating to amount unpaid as at the end together with interest paid/ payable as required
under the said Act have not been given.

24. Disclosure as per Accounting Standard 15 (Revised)

Gratuity: There are no defined benefit plans for gratuity as there are no employees entitled to
gratuity.

Leave Encashment: Provision for leave encashment has not been made in Accounts. As per
the present service rules the leave is required to be enjoyed or utilized. Hence no leave
entitlement is permissible.

26. Out of 5, 07,913 Equity shares of Atcom Technologies Ltd, 50,000 Equity shares held by
the company are lying with the Income Tax authority in connection with a long pending
income tax matter. This investment has been sold to the extent of 4, 57,913 shares (Balance
will be transferred on recovery).

27. Contingent Liabilities:

Pursuant of the Accounting Standard (AS 29) - Provisions, Contingent Liabilities and
Contingent Assets, the disclosure relating to provisions made in the accounts for the year
ended 31st March 2025 is as shown in the independent auditor’s report.

28. There is no pending litigation.

29. The Company has only one business segment as its primary segment and hence disclosure
of segment-wise information is not required under Accounting Standard -17 ‘Segment
information ‘notified pursuant to the companies (Accounting Standard) Rules, 2006 (as
amended).

30. The balance of certain Creditors, other liabilities and loans and advances are subject to
confirmation /reconciliation.

31. No Provision for diminution in the value of certain long term investments has been
considered necessary, since in the opinion of the management, such diminution in their value
is temporary in nature considering the nature of investments, inherent value, and investees’
assets and expected future cash flows from such investments.