Notes to Accounts of Osel Devices Ltd.

1.15 Provisions. Contingent Liability and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past events, for
which it is probable that an outflow of resources will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. Provisions require to settle are reviewed at each
Balance Sheet date and are adjusted to reflect the current best estimate of the obligation. A disclosure
of contingent liability is made when there is a possible obligation or a present obligation that probably
will not require an outflow of resources or where a reliable estimate of obligation cannot be made.

1.16 IPO Expenses/Security allotment Expenses

The costs of an equity transaction are accounted for as a deduction from equity (Reserve & Surplus,
The IPO Expenses has been adjusted with Securities premium)". Raising additional equity through the
offering and issuance of new shares is an equity transaction for this purpose. The cost attributable to
the offer of new shares are deducted from equity.

1.17 Government Grant

Government grants are recognized only when there is reasonable assurance that the Company will
comply with the conditions attached to the grant and that the grant will be received.

Government grants related to revenue are recognized in the Statement of Profit and Loss on a systematic
basis over the periods in which the related expenses are recognized.

Government grants related to property, plant and equipment are recognized as deferred income and
amortized to the Statement of Profit and Loss over the useful life of the related assets, or deducted from
the carrying amount of the asset, as applicable.

Export incentives, subsidies, duty drawbacks, and other government assistance available to the Company
are recognized when there is reasonable certainty regarding ultimate collection and compliance with
the prescribed conditions.

Government grants are measured at the amount receivable and are disclosed in accordance with the
applicable provisions of the Companies Act, 2013 and Accounting Standards (AS).

Refund of government grants, if any, is accounted for prospectively in the period in which the refund
becomes payable.

2) NOTES TO ACCOUNTS:

2.1 Financial Statement has been prepared for the period starting from 1^st April 2025 to 31^st March 2026
and previous period''s figures have been regrouped and rearranged as and when deemed necessary.

2.2 Fixed Assets has been verified by the management at regular interval. Fixed assets has been valued at
Historical cost less depreciation and Impairment of Assets.

2.3 In the opinion of the Management, Current Assets, Loans and Advances have a value on realization in
the ordinary course of business at least equal to the amount at which they are stated.

2.4 Value of Services & Goods imported (excluding high sea purchase) : 9761.19 Lakhs

2.5 F. O. B. value of services & goods exported (excluding high sea sale) : 2246.77 lakhs

2.6 Earnings, Expenditures and remittance on account of dividend in foreign currency: Nil.

2.11 Contingent Liability

The Company does not have any contingent liabilities so far to the knowledge of the board. Other than;
GST - Kerala has filed an Appeal against the order of High Court in favour of the company. -
DVAT - Appeal has been filed and the proceedings is yet to be finalised.

GST - Uttar Pradesh, The company has deposited a sum of Rs. 80,00,000.00 against DRC - 03,
Proceeding is in progress, decision is pending as on date. The Company has issued the Demand Draft
a sum of Rs 1,00,00,500 against Custom duty and Proceeding is pending as on date.

Custom: The Company has issued the Demand Draft a sum of Rs 1,00,00,500 against Custom duty and
Proceeding is pending as on date.

The Company has not made any provision for liabilities against the sum deposited, as mentioned
above.

EPF :- The Company has not made provisions of Pre registration period libility of Rs. 3.31 Lakh.

2.14 There is no pending litigation against the Company.

2.15 Investor Complaints

The Company has not received any complaint from the investor during the current financial year

2.16 Employee Benefit

The company has made contribution to Employee Provident Fund and Employee State Insurance
Corporation at regular intervals and Provision for Gratuity has been recognised in the books of accounts
for the year 2025-2026 No Provision for leave encashment made during the year.

B) Rights, Preference and Restriction on Equity Shares

The Company has issued only one class of equity share having a par value of rs. 10/- per share. each holder of equity
shares is entitled to one vote per share held. dividend proposed by the board of directors is subject to the approval
of the shareholders in ensuring annual general meeting, except in the case of interim dividend.

in the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets
of the company, after distribution of all preferential amounts. the distribution will be in proportion to the number of
equity shares held by the shareholder.

Notes:

a) Security Premium

The amount received in excess of the face value of the equity shares issued by the Company is recognised in
securities premium. It can be used for issue of bonus shares, write- off of equity related expenses etc.

b) Money Received Against Share Warrant

The Company has issued 485074 share warrants to Jyotsna Jawahar (Promoter) on 28 June 2025 on a preferential
basis, each convertible into one equity share of face value Rs. 10 at an issue price of Rs. 268 per warrant. The
warrants are convertible within a period of 18 months from the date of allotment. In the event the warrants are not
exercised within the stipulated period, the upfront amount received shall be forfeited.

Further, the Company has issued 1,00,000 share warrants to Hemant Gadodia (Non-Promoter Public) on 01
September 2025 on a preferential basis, each convertible into one equity share of face value Rs. 10 at an issue price
of Rs. 340 per warrant. The warrants are convertible within a period of 9 months from the date of allotment. In the
event the warrants are not exercised within the stipulated period, the upfront amount received shall be forfeited.

Nature of Overdraft/Cash Credit and terms of repayment :

(a) The borrowings of the Company are secured as follows:

(i) The Company''s Working Capital Facilities (Fund-Based and Non-Fund-Based) availed from banks are secured
by a charge through hypothecation of the entire current assets, both present and future, including raw
materials, work-in-process, finished goods, consumables, stores and spares, and trade receivables, together
with hypothecation of the Company''s movable fixed assets, both present and future, as detailed below:

Indian Bank : Exclusive charge over the entire current assets and movable fixed assets.
Axis Bank : First pari-passu charge over the entire current assets and movable fixed assets of the Company,
excluding vehicles.

(ii) The above facilities are further secured by way of equitable mortgage over commercial and residential
immovable properties situated at I.T Square, Knowledge Park-III and Plumeria Garden Estate, Greater Noida,
Gautam Budh Nagar (Uttar Pradesh). The facilities are also secured by pledge of Fixed Deposit Receipts
(FDRs) and Recurring Deposits (RDs) offered as collateral to Indian Bank (exclusive charge) and Axis Bank
(exclusive charge with a minimum collateral coverage of 0.50 times).

(iii) The facilities availed from HDFC Bank, comprising SBLC for Buyer''s Credit amounting to ''40.00 crore and
Liquid Backed Overdraft facility of ''5.00 crore, are secured by pledge of the Company''s debt mutual fund
units, maintaining 100% security coverage after the applicable haircuts.

(iv) All the above credit facilities are additionally secured by the unconditional and irrevocable personal guarantees
of the promoter-directors, Mr. Rajendra Ravi Shanker Mishra and Mrs. Jyotsna Jawahar. In the case of Axis Bank
facilities, personal guarantees have also been provided by all property owners offering collateral security.

(b) Working Capital Facilities availed from banks are generally renewable within twelve months from the date of sanction
or the immediately preceding renewal, unless otherwise specified in the respective sanction terms.

(c) The charges created in favour of the lenders have been duly registered with the Registrar of Companies within the
prescribed statutory time limits.

(d) Based on the information and explanations provided by the management and the records examined, no instances
were observed where funds raised on a short-term basis were utilised for long-term purposes.

Note:

1. All the above investments in Mutual Funds are Debt Mutual Fund schemes classified under the category of "Other
than Equity Oriented Schemes" as per SEBI classification. All three schemes are open-ended debt funds and are
quoted. The investments are carried at cost in accordance with AS 13 — Accounting for Investments. The aggregate
book value (cost) of quoted investments is INR 4,775.00 Lakhs (Previous Year: INR Nil).

2. The market value (NAV-based current value) of the above quoted mutual fund investments as on 31st March, 2026 is
INR 4,881.63 Lakhs (Previous Year: INR Nil), as per the Portfolio Statement issued by HDFC Bank Limited dated 27th
April, 2026. The unrealised gain on the above investments as on 31st March, 2026 amounts to INR 106.87 Lakhs
(XIRR: 3.79% p.a.).

3. Lien / Pledge Marking — HDFC Bank Sanction Conditions:

All the above investments in Debt Mutual Fund units amounting to INR 4,775.00 Lakhs (cost) / INR 4,881.63 Lakhs
(market value as on 27.04.2026) are pledged / lien marked in favour of HDFC Bank Limited as primary security
against the credit facilities of HDFC Bank.

28. Additional Regulatory Information

(i) The Company holds Immovable Property (Land & Building). Accordingly, Information reported under Para 6Y(i) of
Division-I of Schedule III.

(ii) The Company has not revalued its Property, Plant and Equipments, Accordingly Information is not required to be
reported under Para 6Y(ii) of Division-I of Schedule III.

(iii) The Company has made any Loans and Advances to Promoters, Director, KMPs and related Parties, Accordingly
Information is reported under Para 6Y(iii) of Division-I of Schedule III.

(iv) The Company holds Capital Work-in-Progress, Accordingly Information is reported under Para 6Y(iv) of Division-I of
Schedule III.

(v) The Company holds Intangible Assets under Development. Accordingly Information is reported under Para 6Y(v) of
Division-I of Schedule III.

(vi) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.

(vii) Monthly Statement of Current Assets filed by the Company with the Banks are in agreement with the Books of
Accounts of the Company.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(ix) The Company does not have any transactions with companies struck off.

(x) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(xi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(xii) The Company has 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 Group shall:"

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(xiv) Compliance with the number of Layer of Companies

(xv) There is no any such Scheme of Arrangements has been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013.

Note No. 29

The company has migrated to upgraded version of accounting software from legacy accounting software during the year on
April 01,2024. The audit trail feature in respect of the legacy accounting software is not enabled. The upgraded accounting
software used for maintaining its books of account has a feature of recording audit trail (edit log) facility and the same has
operated throughout the period for all relevant transactions recorded in the software. Further,there are no instance of audit trail
feature being tampered with or audit trail not preserved as per the statutory requirements in respect of upgraded accounting
software. Furthermore, instances were noted where the audit trail feature was not enabled due to technical reason

Note No. 30

Previous year figures have been regrouped / recast wherever necessary to confirm to current year''s classification.

Note No. 31 Provision for warranty

The Company has not provided adequate documentation and supporting information to substantiate the non-recognition of
a provision for warranty obligations as required under the applicable Accounting Standards. Accordingly, we are unable to
comment on the adequacy or otherwise of the provision, if any, required to be recognised in the financial statements.

1.15 Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events, for which it is
probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. Provisions require to settle are reviewed at each Balance Sheet date and are adjusted
to reflect the current best estimate of the obligation. A disclosure of contingent liability is made when there is a
possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable
estimate of obligation cannot be made.

1.16 IPO Expenses

The costs of an equity transaction are accounted for as a deduction from equity (Reserve & Surplus, The IPO Expenses
has been adjusted with Securities premium)". Raising additional equity through the offering and issuance of new
shares is an equity transaction for this purpose. The cost attributable to the offer of new shares are deducted from
equity.

2. Notes to the Account

2.1 Financial Statement has been prepared for the period starting from 1st April 2024 to 31st March 2025 and previous
period''s figures have been regrouped and rearranged as and when deemed necessary.

2.2 Fixed Assets has been verified by the management at regular interval. Fixed assets has been valued at Historical cost
less depreciation and Impairment of Assets.

2.3 In the opinion of the Management, Current Assets, Loans and Advances have a value on realization in the ordinary
course of business at least equal to the amount at which they are stated.

2.4 Value of Services & Expenses imported: 3196.5460963

2.5 F. O. B. value of services exported: 0.17763

2.6 Earnings, Expenditures and remittance on account of dividend in foreign currency: Nil.

2.7 Provision for Deferred tax Assets/Liability has been made, the major components of deferred tax and liabilities are as
follows:-

2.11 Contingent Liability

The Company does not have any contingent liabilities so far to the knowledge of the board. Other than;

GST - Kerala has filed an Appeal against the order of Hight Court in favour of the company. -
DVAT - Appeal has been filed and the proceedings is yet to be finalised.

GST - Uttar Pradesh, The company has deposited a sum of Rs. 2,99,78,317.00 against DRC - 03, Proceeding is in
progress, decision is pending as on date. And The Company has issued the Demand Draft a sum of Rs 1,00,00,500
against Custom duty and Proceeding is pending as on date.

The Company has not made any provision for liabilities against the sum deposited, as mentioned above.

2.12 Disclosures as per Micro, Small and Medium Enterprises Development Act, 2006 (MSMED).

Based on Information available, with the company, there are dues of 154.97006 to micro and small enterprises as
defined in Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March 2025.

2.14 There is no pending litigation against the Company.

2.15 Investor Complaints

The Company has received 6 Complaint from the investor during the IPO allotment and the same has been resolved.

2.16 Employee Benefit

The company has made contribution to Employee Provident Fund and Employee State Insurance Corporation at
regular intervals and Provision for Gratuity has been recognised in the books of accounts for the year 2024-2025. No
Provision for leave encashement made during the year.

For Kumar Samantaray & Associates For and on behalf of the Board of Directors of

(Chartered Accountants) OSEL Devices Limited

Firm Registration Number:-020310N

Sd/- Sd/- Sd/-

Rajesh Kumar Rajendra Ravi S. Mishra Jyotsna Jawahar

Partner Managing Director Whole-time Director & CFO

Membership Number:-504344 DIN:- 01628136 DIN: 08278091

UDIN :25504344BMIPPW2266 Sd/-

Peer Review Certificate No. 016337 Diksha

Date : 26.05.2025 Company Secretary

Place : New Delhi M. No. A72889