(S) Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as
a result of a past event, 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. The expense relating to a provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

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 is not recognised because it is
not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company does not recognise a contingent liability
but discloses its existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is
probable.

(T) Investments

Equity investments are measured at fair value, with value changes recognised in Other
Comprehensive Income, except for those mutual fund for which the Company has elected to
present the fair value changes in the Statement of Profit and Loss.

(U) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method, less provision for impairment.

(V) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. Trade and other payables are recognised, initially at fair
value, and subsequently measured at amortised cost using effective interest rate method.

(W) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between
acquisition of assets and their realisation in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non current.

(X) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
Rupees Lacs (upto two decimals), unless otherwise stated as per the requirement of Schedule
III (Division II).

# Securities Premium Reserve

The amount received in excess of the par value of Equity shares issued have been classified
as securities premium. In accordance with the provision of Section 52 of Indian Companies
Act, 2013, the securities premium account can only be utilised for the purposes of issue bonus
shares,repurchasing the Company's shares, redemption of preference shares and debentures,
and offsetting direct issue costs and discount allowed for the issue of shares or debentures.

## General reserve

General reserve forms part of the retained earning and is permitted to be distributed to
shareholders as part of dividend and is created out of transfer from retained earnings.

### Retained earnings

Retained earnings includes the Company's cumulative earning and losses respectively.

Note No. 16.1

Secured against hypothecation of Goods & Book Debts, Equitable mortgage on specific
immovable properties of the company & related parties, hypothecation of other Movable Assets
of the company, personal guarantee of two directors of the company and corporate guarantee for
the balance outstanding at the year end and Pledge of shares of the company by the Promoters.
Details of seurities are as under :

Primary Securities :

Hypothecation of stock and book debts - pari passu 1st charge
Collateral securities :

1- Equitable mortgage of office premises at chennai ,ownd by Company. Pari passu 1st charge.

2- Equitable mortgage of office premises at kolkata ,ownd by Company. Pari passu 1st charge.

3- Equitable mortgage of office at 4th and 5th Floor, Solitaire Corporate Park,Andheri,mumbai,
ownd by Company. Pari passu 1st charge.

4- Hypothecation of other fixed assets - pari passu 1st charge.

5- Pledge of 200500 shares of compny.

Corpoarte Guarantee :

M/s Brent Properties Investments Pvt Ltd
M/s Cheshire Properties Investments Pvt Ltd

29 Employee Benefits :

The Company's defined benefit plan includes Gratuity/ Leave Encashment. The liability in respect
of Gratuity/ Leave Encashment has been determined using Projected Unit Credit Method by an
independent actuary. The company's defined contribution plan includes Provident Fund. The
related disclosure are as under:

B. Defined Benefit Plans :

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit
equivalent to 15 to 30 days/26 based on one month salary last drawn for each completed
year of service depending on the date of joining. The same is payable on termination
of service, retirement or death, whichever is earlier. The benefit vests after 5 years of
continuous service.

(b) Leave encashment:

The Company has a policy on compensated absences which is applicable to its
executives jointed upto a specified period and all workers. The expected cost of
accumulating compensated absences is determined by actuarial valuation performed by
an independent actuary at each Balance Sheet date using projected unit credit method
on the additional amount expected to be paid as a result of the unused entitlement that
has accumulated at the Balance Sheet date.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest
rate risk,salary risk and longitivity risk. Theses risks may impact the obligation of the
Company.

(c) The following tables set out the funded status of the gratuity and leave encashment
plans and the amounts recognised in the Company's financial statements as at 31
March 2024 and 31 March 2023.

(xxi) Narrations

1] Analysis of Defined Benefit Obligation

The number of members under the ( Gratuity ) scheme have decreased by 50.00%. The
total salary has decreased by 37.82% during the accounting period. The resultant liability at
the end of the period over the beginning of the period has decreased by 56.10%

The number of members under the ( Leave Encashment ) scheme have decreased by
50.00%. The total salary has decreased by 37.82% during the accounting period. The
resultant liability at the end of the period over the beginning of the period has increased by
41.35%

2] Expected rate of return basis

Scheme is not funded EORA is not applicable.

3] Description of Plan Assets and Reimbursement Conditions

Not applicable.

4] Investment / Interest Risk

Since the scheme is unfunded the companyis not exposed to Investment / Interest Risk.

5] Longevity Risk

The company is not exposed to risk of the employee living longer as the benefit under
(Gratuity)/(Leave Encashment) scheme ceases on the employee separatingfrom the
employer for the any reason.

6] Risk of Salary Increase

The Company is exposed to higher liability if the future salaries rise more than assumption
of salary escalation.

7] Discount Rate

The discount rate has decresed from 7.18% to 7.07% under the ( Gratuity ) and hence there
is a increased in liability leading to actuarial loss due to change in discount rate.

The discount rate has decresed from 7.18% to 7.07% under the (Leave Encashment) and
hence there is a increased in liability leading to actuarial loss due to change in discount rate.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of
default, risk of deterioration of creditworthiness as well as concentration risks. The Company
is exposed to credit risk from its operating activities (primarily trade receivables), deposits
with banks and loans given.

Credit Risk Management

The company's credit risk mainly from trade receivables as these are typically unsecured.
This credit risk has always been managed through credit approvals, establishing credit limits
and continuous monitoring the creditworthiness of customers to whom credit is extended in
the normal course of business. The Company estimates the expected credit loss based on
past data, available information on public domain and experience. Expected credit losses
of financial assets receivable are estimated based on historical data of the Company. The
company has provisioning policy for expected credit losses. There is no credit risk in bank
deposits which are demand deposits. The credit risk is minimum in case of entity to whom
loan has been given.

The maximum exposure to credit risk as at 31 March 2024 and 31 March 2023 is the carrying
value of such trade receivables and advances to suppliers as shown in note 8 and note 12
respectively of the financials.

(B) Liquidity Risk

The Company's principal sources of liquidity are working capital loans, “cash and cash
equivalents” and cash flows that are generated from operations. The Company does not
have material term borrowings. The Company believes that its above mentioned sources
of liquidity are sufficient to meet its current requirements. Hence the Company does not
perceive any liquidity risk.

35 Lease

The Company's leasing arrangements are in respect of office premises / warehouse. These
leasing arrangements, which is mostly cancelable, range between 11 months to 3 years and
are usually renewable by mutual consent at mutually agreed terms & conditions. The lease
payment of Rs. 5.83 lakhs (Previous Year Rs. 8.92 lakhs) has been recognised as expenses in
the statement of Profit & Loss under the Note No. 27 “Other Expenses”.

36 The Company had received in October 2018 a notice under Section 13(2) of Securitization and
Reconstruction of Financial assets and Enforcement of Security Interest Act, 2002 ('the Act')
from Indian Bank, Bank of Maharashtra and Union Bank of India, which had provided funds
towards working capital requirements, informing that the Company's accounts have become
NPA. In the previous years, the Company had also received a notice under Section 13(4) of
the Act on failure to repay recalled amount for symbolic attachment of properties. Currently the
Company has stopped all its business activities due to blockage of bank accounts and as at
period ended 31st March 2024 total liabilities exceeds total assets by Rs. 4,505.28 Lakhs. During
the FY 2020-21, the Company has also closed down all its branches except Mumbai branch, has
written off/ sold fixed assets located at such branches and has also laid off maximum employees
across all branches since the business operations are nil. As informed by the Management of the
Company, the company had approached a consortium of three banks for one-time settlement
letter dated December 18, 2023, discussion are in process.Indian Bank, Bank of Maharashtra
and Union Bank have declared the company, promoters, directors and corporate guarantors
as willful defaulters, the management of the company has represented against the same. The
company has deposited 1.75 crore in “No Lien Account” with Indian bank out of proposed Rs.8.50
crore as one time settlement.

37 The Company has incurred losses in the current year and as disclosed above, the Company has
not recognised deferred tax assets due to lack of virtual certainity and because of that current
year tax expense is Rs. NIL. Hence Tax Reconciliation Statement is not required to be disclosed
in the current year.

38 During the previous year, there was a casual vacancy of Chief Financial Officer w.e.f. 30th
November, 2022. The Company is in process of appointing new Chief Financial Officer

39 No proceeding has been initiated or pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

40 The Company has no transaction with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956.

41 The Company has neither traded nor invested in crytpo currency or virtual currency during the
year.

42 The provisions of section 135 of the Companies Act, 2013 related to Corporate Social
Responsibility is not applicable to the company

43 Balances of Trade Payables and Loans and Advances are subject to confirmation and
consequential adjustment, if any.

44 In the opinion of the Board, Current Assets, Loans and Advances have value in the ordinary
course of business at least equal to the amount at which they are stated.

45 The previous year figures have been regrouped/reclassified, wherever necessary to conform to
the current presentation as per the schedule III of Companies Act, 2013.

As per our report attached of even date

FOR KANU DOSHI ASSOCIATES LLP FOR AND ON BEHALF OF THE BOARD

CHARTERED ACCOUNTANTS

Firm Registration Number : 104746W/W100096

KUNAL VAKHARIA ADITYA BHUWANIA ANUJ BHARGAVA

PARTNER WHOLE TIME DIRECTOR DIRECTOR

MEMBERSHIP NO.148916 DIN : 00018911 DIN: 03090652

PLACE : MUMBAI KALYANI JOSHI

DATED : 30TH MAY, 2024 COMPANY SECRETARY