Notes to Accounts of Concord Control Systems Ltd.

Mar 31, 2025

Contingent Liabilities: -

As per the Accounting Standard 29
(Provisions, Contingent liabilities and
Contingent Assets) notified under the
Companies (Accounting Standards) Rules,
2021 which are applicable on the company
in terms of Rule 2 of the Companies
(Indian Accounting Standards) Rules 2021
notified under Companies Act, 2013 the

company recognize provisions only when
it has a present obligation 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 when a reasonable estimate of the
amount of the obligation can be made.
Contingent Liabilities have been disclosed
by way of notes in Notes on Account here
below. Contingent Assets are not
recognized in the financial statements.

c) Use of Estimates:-

The preparation of the financial
statements in conformity with the GAAP
requires management to make estimates
and assumptions that affect the reported
balances of assets and liabilities as at the
date of the financial statements and
reported amount of income and expenses
for the period. Examples of such estimates
include provisions for doubtful debts,
future obligations under employee
retirement benefit plans, Income tax and
the useful lives of fixed assets.
Management periodically assesses using
external and internal sources whether
there is an indication that an asset may be
impaired. Impairment occurs when the
carrying value exceeds the present value
of future cash flows expected to arise from
the continuing use of the asset and its
eventual disposal. The impairment loss to
be expensed is determined as the excess
of the carrying amount over the higher of
the assets net sale price or present as
determined above. Contingencies are
recorded when it is probable that the
liability will be incurred, and the amount
can be reasonably estimated. Actual
results could differ from those estimates

d) Revenue Recognition

a. Revenue from sale of goods is
recognised when the significant risk and
rewards of ownership of goods are

transferred to the buyer and are recorded
exclusive of duties and taxes and adjusted
for discounts (net) and returns.

b. Revenue is recognized to the extent that
it is probable that the economic benefits
will flow to the firm and the revenue can
be reliably measured.

c. Revenue from services is recognised
pro-rata over the period of the contract as
and when services are rendered and the
collectability is reasonably assured. The
revenue is recognised net of Goods and
service tax.

d. Interest- Revenue is recognized on a
time proportion basis taking into account
the amount outstanding and the

rate applicable.

e) Property, Plant & Equipment &
Depreciation

i) Fixed assets are stated at cost (or
revalued amounts, as the case may be);
less accumulated depreciation and
impairment losses. Cost comprises the
purchase price and any attributable cost of
bringing the asset to its working
condition for its intended use. Financing
costs relating to acquisition of fixed assets
are also included to the extent
they relate to the period till such assets are
ready to be put to use in accordance with
Account Standard 16.

At the end of each year,the company
determines whether a provision should be
made for impairment of loss on its fixed
assets by considering the indications that
an impairment loss may have occurred in
accordance with Accounting Standard (AS
28 "Impairment of Asset") notified under
the Companies (Accounting Standards)
Rules, 2006 which are applicable on the
company in terms of Rule 2 of the
Companies (Indian Accounting Standards)
Rules 2015 notified under Companies Act,
2013, where the recoverable amount of
any fixed asset is lower than it''s carrying
amount.

There exists no indication for the
management to conclude that any of its
cash generating units are impaired and
accordingly no provision for impairment
has been made in the financial
statements

ii) The depreciation has been charged on
Written down value method as per the
rates derived from useful lives prescribed
in schedule II of the Companies Act. 2013.
The Depreciation on the additions during
the year has been charged on pro rata
basis.

As mandated in Para 7 of the Schedule II
of the Companies, Act, 2013 a) the
carrying amount of the assets as on 1st
April 2014 is being depreciated over the
remaining useful life of the assets as per
Schedule-II b) where the
remaining useful life of the assets is nil,
after retaining the residual value the
carrying amount has been recognised
in the opening balance of retained
earnings.

iii) No amount has been written off in
respect of premium of Lease Hold Land

iv) Leases

Finance leases, which effectively transfer
to the Company substantially all the risks
and benefits incidental to ownership of
the leased item, are capitalized at the
lower of the fair value and present value
of the minimum lease payments at the
inception of the lease term and disclosed
as leased assets. Lease payments are
apportioned between the finance
charges and reduction of the lease
liability based on the implicit rate of
return. Finance charges are charged
directly against income. Lease
management fees, legal charges and
other initial direct costs are capitalized
Leases where the lessor effectively
retains substantially all the risks and

benefits of ownership of the leased term,
are classified as operating leases. Operating
lease payments are recognized as an expense
in the Profit and Loss

f) Employee Retirement Benefits

Ii) Incremental liability in respect of
Gratuity payable to employees has been
provided for based on the valuation
undertaken by Life Insurance
Corporation.

ii) Provident & other funds liability is
determined on the basis of contributions
as required under statutes.

g) Borrowing Cost

Borrowing costs that are attributable to
the acquisition or construction of
qualifying assets are capitalized as part
of the cost of such assets. A qualifying
asset is one that necessarily takes
substantial period of time to get ready for
intended use. All other borrowing costs
are charged to revenue.

h) Income Tax

Income Taxexpenses is accrued in
accordance with AS22 -"Accounting for
taxes on income" which includes current
taxes and deferred tax. Deferred Income
Tax reflects the impact of current year
timing differences between taxable
income and accounting income for the
year and reversal of timing difference of
earlier years. Deferred tax assets
are recognized only to the extent that
there is reasonable certainty that
sufficient future taxable income will be
taxable. Deferred tax and liabilities are
measured using the tax rates and tax laws
that have been enacted or
subsequently enacted by the balance
sheet date.

i) All highly liquid financial instruments, which are readily convertible into
known amounts of cash that are subject to an insignificant risk of change in
value and having original maturities of three months or less from the date
of purchase, to be cash equivalents.

1. ) The Company has only one class of Equity Shares having a par value of Rs. 10 per share.
Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation, the
Equity shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.

2. ) The Company has made the Preferential Allotment of 3,18,472 (Three Lakh Eighteen
Thousand Four hundred and Seventy Two) equity shares of face value of Rs.10/- (Rupees Ten
only) each, at a price of Rs. 1570/- per equity share (including a premium of Rs. 1560/- per
equity share).

As the provisions relating to the compliance of Corporate Social Responsibility
have become applicable to the company, the company has made an expenditure
of Rs. 21 Lacs towards corporate social responsibility which is in excess of the
amount required as per Section 135 of the Companies Act 2013

k The Company has not traded or invested in Crypto Currency or virtual currency.

The balance in Trade Payables, Trade Receivables and Loans and Advances etc.
are subject to their confirmation.

The Micro, Small and Medium Enterprises Development Act, 2006, the
company is required to identify the Micro, Small and Medium suppliers and
pay them interest on over dues beyond the specified period, irrespective of
the terms agreed with the suppliers. The classification of vendors under the

36 MSMED Act has been made based on information provided by the vendors
and to the best of the Company''s knowledge. No interest has been claimed
by the suppliers covered under the MSMED Act on few instances of delayed
payments during the year. Consequently, no provision for such interest has
been made in the books of accounts.

The Related parties are defined by the Accounting standard 18 "Related
Party Disclosure" notified under the Companies (Accounting Standards)
Rules, 2006 which are applicable on the company in terms of Rule 2 of the

37 Companies (Indian Accounting Standards) Rules 2015 notified under
Companies Act, 2013 in respect of which the disclosure has been made,
have been identified on the basis of disclosures made by the key
management person and taken on record by the Board. The related party
disclosure are as under: -

40 There is no immovable property in the company, the title deed of which is not held in
the name of the Company.

41 The company has not revalued its Property, Plant and Equipment during the year.

40 Loans or Advances in the nature of loans are granted to promoters, Directors, KMPs
and the related parties that are a) repayable on demand or b) without specifying any
terms or period of repayment:

44 The company does not have any Intangible assets under development as on the reporting date.

⁴⁵ No proceedings have been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

46 The company has been sanctioned working capital limits from banks or financial institutions on the basis of
security of current assets; The monthly\quarterly returns or statements filed by the company with such banks or
financial institutions are in agreement with the books of account of the Company.

47 The company has not been declared as a wilful Defaulter by any Financial Institution
or bank as at the date of Balance Sheet.

48 The Company do not have any transactions or relationship with companies struck off.

49 There are no charges or satisfaction yet to be registered with Registrar of Companies
beyond the statutory period.

50 The borrowing from banks and Financial Institutions has been used for the specific
purpose for which it has been taken.

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

2. Debt service = Interest & Lease Payments Principal Repayments

3. Capital Employed = Total Equity Long-term borrowings Short-term borrowings Deferred tax
liabilities

4. Shareholder''s Equity = Share Capital Reserves & Surplus

Money received against share warrants

5. Total Debt = Long-term borrowings Short-term borrowings (includes lease liabilities)

Reasons for Variances:

*Debt Equity Ratio decreased primarily on account of increase in shareholders'' equity.

*Debt Service Coverage Ratio increased primarily on account of decrease in debt service
cost and increase in operating profits.

*Return on equity ratio decreased on account of increase in equity without a proportional
increase in operating profits.

*Inventory turnover ratio decreased primarily on account of higher avereage inventory.

*Return on Capital employed ratio decreased primarily on account of increased
capital employed.

52) . Utilisation of Borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in other person(s) or entity(ies), including
foreign entities (intermediaries) with the understanding, whether recorded in writing or otherwise, that
the intermediary shall lend or invest in party identified by or on behalf of the Company.

^{Date: 14-Ma}y^-2025 Sd/- Sd/-

Gaurav Lath Nitin Jain

^SETH & ^ASSOCIATES Joint Managing Director Joint Managing

CHARTERED ACCOUNTANTS

FRN N_o 001167C & Chief Financial Officer Director

DIN:00581405 DIN: 03385362

^Sd/- Sd/- Sd/-

Dhruv Seth (M.No 404028) M^{ahima Jain Puja Gu}p^ta

Director Company Secretary

Partner DIN: 09688771 PAN: ATVPG4665K

UDIN: 25404028BMIJAJ3361

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Mar 31, 2024

b. Contingent Liabilities: -

As per the Accounting Standard 29 (Provisions, Contingent liabilities and Contingent Assets) notified under the Companies (Accounting Standards) Rules, 2021 which are applicable on the company in terms of Rule 2 of the Companies (Indian Accounting Standards) Rules 2021 notified under Companies Act, 2013 the company recognize provisions only when it has a present obligation 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 when a reasonable estimate of the amount of the obligation can be made. Contingent Liabilities have been disclosed by way of notes in Notes on Account here below. Contingent Assets are not recognized in the financial statements.

c. Use of Estimates:-

The preparation of the financial statements in conformity with the GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities as at the date of the financial statements and reported amount of income and expenses for the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, Income tax and the useful lives of fixed assets.

Management periodically assesses using external and internal sources whether there is an indication that an asset maybe impaired. Impairment occurs when the carrying value exceeds the present value of future cash flows expected toarise from the continuing use of the asset and its eventual disposal

qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue h. Income Tax

Income Tax expenses is accrued in accordance with AS 22 -"Accounting for taxes on income" which includes current taxes and deferred tax. Deferred Income Tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future

The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sale price or present as determined above. Contingencies are recorded when it is probable that the liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

d. Revenue Recognition

I.) Sales are exclusive of duties and taxes and adjusted for discounts (net) and returns

ii) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

iii) Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

iv) Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

e. Property, Plant & Equipment & Depreciation

i.) Fixed assets are stated at cost (or revalued amounts, as the case may be); less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use in accordance with Accounting Standard 16 At the end of each year, the company determines whether a provision should be made for impairment of loss on its fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS 28 "Impairment of Asset") notified under the Companies (Accounting Standards) Rules, 2006 which are applicable on the company in terms of Rule 2 of the Companies (Indian Accounting Standards) Rules 2015 notified underCompanies Act, 2013, where the recoverable amount of any fixed asset is lower than it''s carrying amount. There exists to conclude that any of its cash generating units are impaired

and accordingly no provision for impairment has been made in the financial statements.

ii) The depreciation has been charged on Written down value method as per the rates derived from useful lives prescribed in schedule II of the Companies Act. 2013. The Depreciation on the additions during the year has been charged on pro rata basis.

iii) No amount has been written off in respect of premium of Lease Hold Land

iv) Leases

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership

of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly

against income. Lease management fees, legal charges and other initial direct costs are capitalized. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term.

f. Employee Retirement Benefits

I) Incremental liability in respect of Gratuity payable to employees has been provided for on all employees who have put in one year of service. ii) Provident & other funds liability is determined on the basis of contributions as required under statutes.

g. Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A

taxable income will be taxable. Deferred tax and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted bythe balance sheet date

I) Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive. Currnetly the coompany operates in only one segment

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Mar 31, 2023

1. ) 1. ) The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity

Shares is entitled to one vote per share. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. ) 40,00,000 Bonus Shares has been allotted to the promoters (Gaurav Lath and Nitin Jain (20 shares allotted for each

share held)) during the current year.

24. In respect of an issue of securities made for a specific purpose, the whole or part of the amount which has not been used for the specific purpose at the Balance Sheet date, that shall be indicated by way of note how such unutilized amounts have been used or invested.

25 The company has used the borrowings from banks and financial Institutions for the specific purpose for which it was taken at the, Balance sheet date.

26 in the opinion of the Board, all of the assets other than Property, Plant & Equipment, Intangible Assets and noncurrent investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the financial statements.

27 The company does not have any long term contracts including derivatives contracts.

0 Undisclosed Income

The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of accounts, in the tax assessments under the Income tax Act, 1961 as income during the year.

p Corporate Social Responsibility- Not applicable

q Details of Crypto Currency or Virtual Currency - Nil

37. The balance in Trade Payables, Trade Receivables and Loans and Advances etc. are subject to their confirmation.

38. The Micro, Small and Medium Enterprises Development Act, 2006, the company is required to identify the Micro, Small and Medium suppliers and pay them interest on over dues beyond the specified period, irrespective of the terms agreed with the suppliers. The company has identified such suppliers.For the current year no interest has been paid or provision made. The amount of interest payable on such overdues is calculated as follows:

39. The Related parties are defined by the Accounting standard 18 "Related Party Disclosure” notified under the Companies (Accounting Standards) Rules, 2006 which are applicable on the company in terms of Rule 2 of the Companies (Indian Accounting Standards) Rules 2015 notified under Companies Act, 2013 in respect of which the disclosure has been made, have been identified on the basis of disclosures made by the key management person and taken on record by the Board. The related party disclosure are as under: -

48 Details of Benami Property held - The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts. -Yes except few instances

49 Wilful Defaulter - The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.

50 Relationship with Struck off Companies - The Company do not have any transactions with companies struck off.

42 immovable property not held in the name of the Company - No such immmovable property

43 Where the company has revalued its Property, Plant and Equipment, to disclose whether revaluation is based on the valuation by registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules 2017 - Not revalued

44 Loans or Advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties that are a) repayable on demand or b) without specifying any terms or period of repayment

47 Details of Benami Property held - The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

54 Utilisation of Borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the Company.

The Company has not received any fund from any party(s) (funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by on behalf of the Company (ultimate beneficiary) or provide any guarantee, security or like on behalf of the ultimate beneficiaries.