Notes to Accounts of Pratham EPC Projects Ltd.

Mar 31, 2025

s Provisions, Contingent liabilities and Contingent assets

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimate,

Pratikkumar Vekariya Nayankumar Pansuriya

Managing Director Whole-Time Director

DIN :06951893 DIN: 06951820

Palak Sharma Yogesh Joglekar

Place: Ahmedabad Company Secretary Chief Financial Officer Place: Ahmedabad

Date: 29-May-2025 Mem. No. ACS74543 Date: 29-May-2025

Reasons for Variances

Debt Equity Ratio: Increase in ratio due to increase in debt during the year.

Debt Service Coverage Ratio: Decrease in ratio due to increase in debt during the year.

Trade Payable Turnover Ratio: Increase in ratio due to increase in total purchases during the year.
Return on Investment: Increase in ratio due to increase in return on investment during the year.

Reason for shortfall

There is no shortfall in CSR expenditure during the year.

Nature of CSR activities

During the current year, The Company has made expenditure under the following CSR Activities:

KD Hospital by Harihar Maharaj Trust:Rs 8 lakhs, SS Divine School: Rs 0.15 lakhs, Armed Forces Flag Day: Rs 8 lakhs , Bezuban Charitable

39 Other Statutory Disclosures as per the Companies Act, 2013

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
The Company has not revalued any of its Property, Plant and Equipment during the year.

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

There is no transaction with the stuck-off company during the year ended 31st March 2025.

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
The company has not granted any loans to promoters, directors, KMPs either severally or jointly with any other person, that are repayable
The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the
The company has not entered into any Scheme of Arrangements which has been approved by the Competent Authority in terms of
The Company has not incurred any Cash Loss during the year (P.Y. - NIL).

According to the information and explanations given to us and on the basis of our examination of the records of the Company, no
There were no investor complaints, known to the Company, outstanding as on 31st March, 2025.

Company is having only one segment of business and thus no segment reporting is required to be reported in accordance with AS 17
The Company has complied with the provisions of section 186 of the Act in respect of loans granted, investments made and guarantees

40 Regrouping

All the values are rounded off to the nearest in Lakhs, except where otherwise indicated. The figures for corresponding previous year have
As per our report of even date

For V C A N & Co.. For and on behalf of the Board of

Chartered Accountants ^{Pratham EPC Projects Limited}

Firm''s Registration No. 125172W

CA Saurabh Jain Pratikkumar Vekariya Nayankumar Pansuriya

Partner Managing Director Whole-Time Director

Membership No. 175015 DIN: 06951893 din_: 06951820

UDIN: 25175015BMIBEH6181 ^:

Palak Sharma Yogesh Joglekar

Place: Ahmedabad Company Secretary Chief Financial Officer

Date: 29-May-2025 Mem. No. ACS74543

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Mar 31, 2024

2.11 Provisions and Contingent Liabilities:

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimate, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed.

2.12 Foreign Currency Items Transaction:

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction and are presented in Indian Rupees which is the functional currency of the company for presentation of its financial statement. All exchange differences arising on settlement and conversion on foreign currency transaction are included in the Statement of Profit and Loss. In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the exchange rate at the date of transaction is recognized as income or expense at the time of maturity date.

2.13 Employee Benefits:

i) Short Term:

Short Term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.

ii) Long Term:

Defined Benefits Plan:

For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year-end balance sheet date. Re-measurement gains and losses of the net defined benefit liability/(asset) are recognized immediately in the profit and loss account. The service cost and net interest on the net defined benefit liability/(asset) are recognized as an expense within employee costs. The Company has not made any investment to meet the liability of gratuity payments till the period ended 30th September, 2023. The retirement benefit obligations recognized in the balance sheet represents the present value of the defined benefit obligations arrived at based on the report of actuary.

iii) Defined Contribution Plans:

Contributions under defined contribution plans like provident fund, Employee State Insurance Scheme are recognized as expense for the period in which the employee has rendered service. Payments made to state managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Company''s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.

iv) Leave Encashment:

The employees of the Company are entitled for leave encashment on yearly basis. The amount accumulated during the year is paid in the next year.

2.14 Cash and Cash Equivalents (for purposes of Cash Flow Statement):

Cash and Bank Balances consist of:

a. Cash and Cash Equivalent which includes cash on hand, deposits held at call with banks and other short-term deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk of change in value and have original maturities of less than one year. These balances with banks are unrestricted for withdrawal and usage.

b. Other Bank Balances which includes balances and deposits with Banks that are restricted for withdrawal and usage.

2.15 Cash flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.16 Segment Reporting:

The Company is primarily engaged in a single segment. Considering the provisions of Accounting Standard 17, the Company do not have any reportable segments.

2.17 Borrowing Cost

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalized as a part of the cost of such asset up-to the date when such assets are ready for its intended use and other borrowing costs are charged to statement of Profit & Loss.

(a) Short Term Employee Benefits :

Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the statement of profit and loss of the year in which the related service is rendered.

(b) Post-employment defined benefit plan Gratuity Scheme

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less favorable than the provisions of the Payment of Gratuity Act, 1972. The benefits vest after five years of continuous service and once vested it is payable to the employees on retirement or termination of employment. In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2024. The Company has not made any investment to meet the liability of gratuity payments till the financial year ended 31st March 2024. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit cost method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss.

Formulas Used

Current Ratio = Current assets / Current liabilities Debt-Equity Ratio = Total Debt / Shareholder’s Equity

Debt Service Coverage Ratio = Earnings available for debt service ( including short term debt ) / Debt Service

Return on Equity (ROE)(%) = Profit After Tax / Average Shareholder’s Equity

Inventory Turnover Ratio = Net Sales / Average Inventory

Trade receivables turnover ratio = Net Credit Sales / Average Account Receivable

Trade payables turnover ratio = Net Credit Purchases/Average Accounts Payable

Net capital turnover ratio = Net Sales / Average Working Capital

Net profit ratio(%) = Net Profit / Net Sales

Return on capital employed (ROCE)(%) = Earnings before Finance Cost and Taxes / Average Capital Employed Return on investments(%) = Income generated from Investments / Average invested funds in Intercorporate deposits and other deposits

Note : Reasons for Variations:

1 Current Ratio: It is primarily increased due to increase in Current Assets and decrease in Current Liabilities

2 Debt-Equity Ratio: It is primarily decreased due to decrease in Borrowings and issue of Equity shares

3 Debt Service Coverage Ratio : It is increased due to increase in Profitability during the year

4 Return on Equity (ROE): It is decreased due to increase in Shareholder''s Equity during the year

5 Inventory Turnover Ratio : It is primarily decreased due to increase in average inventory

6 Trade Payables Turnover Ratio: It is primarily increased due to increase in Material purchased and Services consumed

7 Net capital turnover ratio : It is decreased due to increase in Average Working Capital

8 Return on capital employed (ROCE) : It is decreased due to increase in Average Capital Employed during the year

9 Return on investments : It is decreased due to increase in Invested Funds during the year

In the opinion of the Board of Directors of the Company, the loans, advances and current assets have a value of realization in the ordinary course of business, at least equal to the amounts on which these are stated.

Note: 36

The Balance of the Trade Receivables and Trade Payables are subject to confirmation. Any adjustment if required, will be made on receipt of the same.

Note: 37 Submission of returns with the Banks

As per the information provided to us, No quarterly returns or statements comprising information on stock, book debt, ageing analysis of the debtors/other receivables and other stipulated financial information filed is by the Company with banks.

Note: 38 Segment Reporting

Pratham EPC Projects Limited (Formerly known as Pratham EPC Projects Private Limited) ("the Company") is having only one business segment and considering the provisions of Accounting Standard 17, the Company do not have any reportable segment.

Note: 39 Indication of Impairment

In accordance with the Accounting Standard 28 “on Impairment of Assets” the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

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

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

The Company is not declared as willful defaulter by any bank or financial institution (as defined under the

(iii) Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

The Company does not have any transaction which are not recorded in the books of accounts that have been ^{( )} surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(v) The Company has not revalued any of its Property, Plant and Equipment during the year.

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the

^(vi) statutory period.

(vii) There is no transaction with the stuck-off company during the year ended 31st March 2023.

The Company has fully spent the required amount towards Corporate Social responsibility (CSR) and there

(viii) are no unspent CSR amounts for the year requiring a transfer to a fund specified in Schedule VII of the Act or special account in compliance with the provision of sub-section (6) of Section 135 of the Act.

The company has not granted any loans to promoters, directors, KMPs either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment during ^{( )} the Year. Loan amounting to Rs. 73.38 Lakhs given to Pipeflow Integrity India Private Limited (Subsidiary) is outstanding as on 31st March, 2024.

, . The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the ^{( )} Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

The company has not entered into any Scheme of Arrangements which has been approved by the Competent ^{( )} Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(xii) The Company has not incurred any Cash Loss during the year (P.Y. - NIL)

According to the information and explanations given to us and on the basis of our examination of the records ^{( )} of the Company, no immovable properties are held in the name of the Company as at the Balance Sheet date.

Note: 45

The Company, in respect of financial years commencing on or after the 1st April, 2023, has used such accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software and the audit trail feature has not been tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

All the values are rounded off to the nearest in Lakhs, except where otherwise indicated. The figures for corresponding previous year have been regrouped / reclassified wherever necessary to make them comparable.

As per our report of even date attached

For V C A N & Co. For and on behalf of the Board of Directors

Chartered Accountants Pratham EPC Projects Limited

Firm''s Registration No: 125172W (Formerly known as Pratham EPC Projects Private Limited)

CA Saurabh Jain Nayan M Pansuriya Pratik M Vekariya

Partner Whole Time Director Chairman & MD

M No.175015 DIN : 06951820 DIN : 06951893

UDIN: 24175015BKCISJ8708

Yogesh Joglekar Bhavasthi Mehta

Chief Financial Officer Company Secretary

Mem. No. A56799

Place : Ahmedabad Place : Ahmedabad

Date : 30-05-2024 Date : 30-05-2024