Notes to Accounts of Naapbooks Ltd.

Mar 31, 2025

n) Provisions, contingent liabilities and contingent assets:

A provision is recognized when the Company has a present obligation as a result of past
events 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. Provisions (excluding retirement benefits)
are not discounted to their present values and are determined based on the best estimate
required to settle the obligations at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities
are not recognized in the financial statements and are disclosed in the Notes. A Contingent
asset is neither recognized nor disclosed in the financial statements.

o) Earnings Per Share

Basic earnings per share is computed by dividing the profit/loss after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit/loss after tax as adjusted for dividend, interest and other
charges to expense or income relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the
weighted average number of equity shares which could have been issued on the conversion
of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued at a later date. The number of equity
shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits
and bonus shares, as appropriate.

p) General/Additional Regulatory Information

i. Accounting policies not specifically referred to above are consistent with generally
accepted accounting principles. Previous year’s figures have been
regrouped/reclassified wherever applicable

ii. Contingent Liability And Commitments

There are no Contingent Liabilities and commitments that existed or provided
during the Current Year.

iii. Balance Confirmation

Balance of Trade Receivables, Trade Payables, Loans & Advances, Unsecured
Loans subject to balance confirmation & resultant reconciliation if any. The
management does not expect any material adjustment in respect of the same
effecting the financial statements on such reconciliation/adjustments.

iv. Relationship with Struck Off Companies

The Company do not have any transactions/Relation with companies struck off.

v. Title deeds of Immovable Property not held in name of the company

There are no such Immoveable properties of which title deed are not held in the
name of company.

vi. Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be
registered with ROC beyond the statutory period.

vii. Details of Benami Property held- where any proceedings have been initiated
or pending against the company for holding any benami property

The Company does not have any benami property, and no proceeding has been
initiated against the Company for holding any benami property.

viii. Disclosure regarding undisclosed income

The Company has no such 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

ix. Details where company is Wilful Defaulter

The Company has not been declared as a wilful defaulter by any banks or any
other financial institution or other lender at any time during the financial year in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of
India.

x. Details of loans given, investments made and security provided covered
under section 186(4) of the Companies Act, 2013

There were no loans, guarantees or investments made by the Company under
Section 186 of the Companies Act, 2013 during the year under review and hence
the said provision is not applicable.

xi. Corporate Social Responsibility (CSR)

The disclosures as per Rule 9 of Companies (Corporate Social Responsibility
Policy) Rules, 2014 is Not applicable as net worth of company is less than five
hundred crore and turnover is less than one thousand crore and net profit is less
than five crore rupees.

xii. Disclosure regarding details of crypto currency or virtual currency

The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year under consideration.

xiii. The company has not provided nor taken any loan or advance to/from any other
person or entity or invested any funds or provided any guarantee or security with
the understanding that benefit of the transaction will go to a third party, the ultimate
beneficiary

xiv. In the opinion of the board of directors the current assets, loan & advances are
realisable in ordinary course of business at least equal to the amount at which they
are stated in the Balance Sheet.

xv. The information regarding applicability of MSMED Act 2006 to the various
supplier/parties has not been received from the suppliers. Hence information as
required vide clause 22 of chapter V of MSMED Act 2006 is not being given.

xvi. No scheme of Arrangements has been approved by competent authority in terms
of sections 230 to 237 of the Companies Act,2013 in respect of the Company

xvii. No employee is in receipt of remuneration exceeding in aggregate of Rs.
1,02,00,000/- if employed throughout the year or Rs. 8,50,000/- per month if
employed for a part of the year.

xviii. There are no indications of impairment on any individual cash generating assets or
on cash generating units in the opinion of management and therefore no test of
impairment is carried out

xix. All the known income and expenditure and assets and liabilities have been taken
into account and that all the expenditure debited to the profit and loss account have
been exclusively incurred for the purpose of the company’s business.

xx. The loans and advances made by company are unsecured and treated as current
assets and not prejudicial to the interest of the company

xxi. The company has obtained the declaration from Directors stating therein that the
amount so advanced to the company has not been given out of the funds
borrowed/acquired from others by them.

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

xxiii. The details of Quarterly Statements of Current Assets filed by the company with
the Bank are in agreement with the books of accounts.

xxiv. Events after the reporting date

The Company evaluates events and transactions that occur subsequent to the
balance sheet date but prior to the approval of the financial statements to
determine the necessity for recognition and/or reporting of any of these events and
transactions in the financial statements. As of 30^th May, 2025, there were no further
subsequent events to be reported or recognized.

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Mar 31, 2024

f Company in its meeting of shareholders through Extra Ordinary General Meeting dated May 25, 2020 resolved in pursuance of the provisions of Section 61 and 64 and other applicable provisions, if any, of the Companies Act, 2013 (including any amendment thereto or re-enactment thereof) and the rules framed there under, the consent of the shareholders was accorded to increase the Authorized Share Capital of the Company from existing ? 10 Lakhs divided into 1,00,000 Equity Shares of ? 10/- each to ? 200 Lakhs divided into 20,00,000 Equity Shares of ? 10/- each by creation of additional 19,00,000 Equity Shares of ? 10/- each ranking pari passu in all respect with the existing Equity Shares of the Company.

Further Company in its meeting of shareholders through Extra Ordinary General Meeting dated March 14, 2023 , the consent of the shareholders was accorded to increase the Authorized Share Capital of the Company from existing ? 200 Lakhs divided into 20,00,000 Equity Shares of ? 10/- each to ? 320 Lakhs divided into 32,00,000 Equity Shares of ? 10/- each by creation of additional 12,00,000 Equity Shares of ? 10/- each ranking pari passu in all respect with the existing Equity Shares of the Company.

g 5,50,000/- Fully paid up Equity shares were issued as Bonus Shares by capitalization of Surplus in Profit and Loss A/c in F.Y 2020-21

h Company in its meeting of shareholders through Extra Ordinary General Meeting dated May 25, 2020 resolved in pusuance of the provisions of Section 42, 62(c) and other provisions, applicable, if any, of the Companies Act, 2013 read with Companies (Prospectus and allotment of Securities) Rules, 2014 and the Companies (Share Capital and Debentures) Rules, 2014 including any statutory enactment, modification etc. thereto, the consent of the members of the Company was accorded for an allotment of 7,22,200 (Seven Lakhs Twenty Two Thousand Two Hundred) Equity Shares of ? 10 (Rupees Ten) each of the Company at par by converting Loan taken into Equity Shares by issue of New Equity Shares, distinctively numbered, to Ashish Jain from whom the Company has received loan money aggregating to ? 26.92 Lakhs to Nirmal Kumar Jain from whom the Company has received Loan money aggregating to ? 15.86 Lakhs, to Yaman Saluja from whom the Company has received Loan money aggregating to ? 1.50 Lakhs, to Abhishek Nirmal Jain from whom the Company has received Loan money aggregating to ? 24.24 Lakhs and to Kusum Kothari from whom the Company has received Loan money aggregating to ? 3.70 Lakhs in a measure to reduce its debt. The said Equity Shares shall rank pari-passu with existing Equity Shares in all respects.

i During the year F.Y 2020-21 the company has alloted 35,200 shares of Rs. 10/- each at a price of Rs. 71/- on a preferential basis j During the year F.Y 2021-22 the company has alloted 5,39,200 shares of Rs. 10/- each at a price of Rs. 74/- through Initial Public Offer

k Company in its meeting of shareholders through Extra Ordinary General Meeting dated March 14, 2023 resolved in pursuance of the provisions of Section 61 and 64 and other applicable provisions, if any, of the Companies Act, 2013 (including any amendment thereto or re-enactment thereof) and the rules framed there under, the consent of the shareholders was accorded to issue and allot 11,50,000 (Eleven lakh fifty thousand) equity shares of 10/- each at price of 72/- each on preferential basis

Consequently during the year F.Y 2022-23 the company has alloted 1,00,000 shares of Rs. 10/- each at a price of Rs. 72/- on a preferential basis

Further in the F.Y 2023-24 the company has alloted 10,50,000 shares of Rs. 10/- at the price of Rs. 72/- on a preferential basis. Out of which 7,50,000 shares has been alloted for consideration other than cash by way of share swap basis.

Secured Loan: - Car Loan of Rs. 9.40 Lakhs had been in the year FY 2021-22 from Bank of India taken whose original tenure is 60 months. The Loan is currently carrying 10.10% rate of Interest and is repayable in equated monthly installments of Rs. 19,871/- each. Loan is secured by charge on the Vehicle Maruti XL ZETA.

Unsecured Loan: - Loans from related parties are not repayable on demand. During the financial year 2020-21, 7,22,200/- (Seven Lakhs Twenty Two Thousand Two Hundred) Equity Shares of ? 10 (Rupees Ten) each were issed at par by converting unsecured loan of Rs. 72,22,000/- in F.Y 2020-21. Refer Note 2 for details.

Unsecured Loans of Rs. 20.21 Lakhs had been availed from Hero Fincorp Limited whose tenure is 36 Months. The loan is carrying 17% rate of interest and is repayable in equated monthly installments of Rs. 72055/- each.

Unsecured Loans of Rs. 20 Lakhs had been availed from Kotak Mahindra Bank Limited whose tenure is 36 months. The loan is carrying 17.10% rate of interest and is repayable in equated monthly installments of Rs. 71,310/- each.

Explanation for change in the ratios by more than 25%:

a) Current Ratio has increased due to increase in the total current assests

b) Return on Equity has increased due to increase in revenue and in turn profit margin

c) Trade Payables Turnover Ratio has increased due to decrease in the average credit period

d) Net Profit Ratio has increased due to increase in revenue and in turn profit margin