Notes to Accounts of Rappid Valves (India) Ltd.

Mar 31, 2025

2.10 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has a present obligation as a result of past event; 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 are not discounted to their present value
and are determined based on best estimate required to settle the obligation

Where no reliable estimates can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when
there a possible obligations or present obligation that may, or probably will not, require an outflow of resources. When 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 recognised nor disclosed in the financial statements. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates

2.11 Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding (including shares applied but allotment yet to be made) during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number
of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, if any.

2.12 Foreign Currency Transactions

Foreign currency transactions are recorded at the rates that approximate the actual exchange rates prevailing on the date of the transaction.
Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realisation.

Monetary items denominated In foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on that date.
Exchange differences are recognised in the statement of Profit and Loss.

2.13 Cash and Bank Balances

Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term investments with an original maturity of
three months or less if any. Earmarked balances with bank, margin money or security against borrowings, guarantees and other commitments
,if any shall be treated separately from cash and cash equivalent.

2.14 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary,
in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include
acquisition charges such as brokerage, fees and duties

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are
capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment
property is determined in accordance with the policy stated for Impairment of Assets.

2.15 Stock-based compensation

Our stock-based compensation is comprised of agent growth incentive programs, agent equity program, and restricted stock units. Stock
based compensation is more fully disclosed in Note 25. The Company accounts for stock-based compensation granted to participants using
a fair value method. Stock-based compensation awards are measured at the grant date fair value and are recognized over the requisite
service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures.

2.16 Employee benefits

i. Short-Term Employee Benefits:

Employee benefits payable wholly within 12 months from the receiving employee services are classified as short-term employee benefits.
These benefits includes salaries and wages, bonus and ex-gratia. The Undiscounted amount of short terms employee benefits to be paid in
exchange of employee services is recognised as an expense as the related service is rendered by employee.

ii. Long-Term Employee Benefits:

(a) Defined Contribution Plan:

The company contributes to a Government administered Provident Fund for the employees who have opted for this option. The company has
no further obligation beyond making its contribution which are expensed in the year to which it pertains.

(b) Defined Benefit Plan:

Liability for Defined Benefit Plan is provided on the basis of valuation as at the Balance Sheet date carried out by an independent Actuary. The
actuarial valuation method used by independent Actuary for measuring the liability is the Project Unit Credit Method. Actuarial gains and
losses comprise experience adjustments and the effects of changes in the actuarial assumption are recognized immediately in the Statement
of Profit and Loss as income or expenses. The employee gratuity fund scheme is unfunded.

2.17 Going Concern Assumption

The accounts of the Company are prepared on a going concern basis. The ultimate holding Company has provided a letter of support to
continue contributing capital and providing other financial and non financial support as and when needed to eXp Global India Private Limited
to establish and grow business in India over the next twelve month period. Accordingly, the managment has prepared this financial
statements on a going concern basis.

2.18 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly
related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs,
allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction /
development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets.

Borrowing cost attributable to the fixed assets during construction/ exploration, renovation and modernization are capitalized. Such
borrowing costs are apportioned on the average balance of capital work in progress for the year. Other borrowing costs are recognized as an
expense in the period in which they are incurred.

2.19 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 Management in deciding how to allocate resources and in assessing
performance. However the company is currently dealing in only one primary segment.

2.20 Government grants, subsidies and export incentives

Export Incentive if any is accounted on accrual basis except Interest Subsidy which has been accounted for on receipt basis.

2.21 Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the
extent that there is no uncertainty in receiving the claims.

2.22 Cash Flow Statement

The Cash Flow Statement is prepared in accordance with the “Indirect Method” as explained in the Accounting Standard (AS) 3 on Cash Flow
Statements. Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

2.23 Discontinuing Operations

A discontinuing operation is a component of an enterprise:

a. that the enterprise, pursuant to a single plan, is:

i. disposing of substantially in its entirety, such as by selling the component in a single transaction or
by demerger or spin-off of ownership of the component to the enterprise’s shareholders; or

ii. disposing of piecemeal, such as by selling off the component’s assets and settling its liabilities
individually; or

iii. terminating through abandonment; and

b. that represents a separate major line of business or geographical area of operations; and

c. that can be distinguished operationally and for financial reporting purposes. However, the company
doesn’t have any discontinued operation.

2.24 Previous year figures have been regrouped/rearranged wherever necessary

2.25 Rounding Off

All Amount are shown in Rupees in Thousands unless otherwise specified.

3.5 Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ? 10/- per share. Each holder of equity shares is entitled to one vote
per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights
proportionate to their share holding at the meetings of shareholders.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets, if any, of the company,
after distribution of all preferential amounts in proportion to the number of equity shares held by shareholders.

Company has not issued any bonus shares or for non-cash consideration since incorporation

As on 10th July, 2024, the company has redeemed 4,98,000 Preference Shares - 0.01% Compulsorily Convertible Preference
Shares ( CCPS) of Face Value 100/- each as agreed in " Subscription Cum Shareholders" agreement dated 19th October, 2023 out
of the proceeds of fresh issue of 3,02,184 equity shares of Rs. 10/- each at a premium of Rs. 154.80/- per share agreegating to Rs.
4,67,78,160/-

Note 32 - Utilisation Summary

During the period ended 31st March 2024, the Company came up with the public issue of 13,69,800 Equity shares of Face value of ^ 10/- each (“equity
shares”) with the price band of Rs. 210 to 222 through book building method, IPO was open for subscription from September 23, 2024, to September 25,
2024.

The Company has allotted 13,69,800 Equity shares of Face value of ^ 10/- each (“equity shares”) for cash at a price of ^ 222/- per Equity Share (including a
share premium of ^ 222/- per Equity Share) aggregating to ^ 3041 Lakhs on September 26, 2024.

The equity shares of the Company got listed with Emerge platform of National Stock Exchange of India Limited on September 30, 2024. The issue was made
in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. The Summary of the Initial Public Offer proceeds
in summarised below:

iv The Company is engaged in one business segment i.e. Manufacturing of valves. The Entity is defined as "Small and Medium Sized Enterprises (SMEs)" as per
Notifications on Companies (Accounting Standards) Rules 2006. Based on exemptions/relaxations provided to SMEs disclosures under AS 17 "Segment
Reporting" are not applicable to the Company for the financial year ended 31st March 25.

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

(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

vi The Company has not received any fund from any person(s) or entity (ies). including foreign entities (Funding Party) with to understanding (whether recorded
in writing or otherwise) that the Company 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 to or on behalf of the Ultimate Beneficiaries

vii Clause (2) of section 2 of the Companies Act, 2013 is not applicable to the entity as it does not have subsidiaries.

viii The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the
financial year or after the end of reporting period but before the date when the financial statements are approved.

The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.

xiii The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

xiv The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.

xv The Company does not have any transactions which is not recorded in the books of accounts but 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).

xvi There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

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

xviii As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022. As per
the amended rules, the Company is required to maintain books of account and other relevant records in electronic mode. Further, the Company is also
required to take backup of the books of account and other relevant records on a daily basis on a server physically located in India. During the year, the
Company has maintained the books of account and other relevant records in an electronic mode. However, the backup is not being taken on a daily basis in a
server located in India

xix The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 during any of the years.

xx The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand
or without specifying any terms or period of repayment

xxi The Company is required to comply with the amendments in Schedule III of Companies Act, 2013 notified on 24-03-2021, with effect from 01-04-2021.
Accordingly the Company has complied with the disclosure and presentation requirements as per the aforesaid amendments and reclassified the items in
the previous years, to conform to current year classification, whever required.

xxii The Company has physically verified the inventories at reasonable intervals and there are no discrepancies of 10% or more in the aggregate for each class of
inventory noticed on such verification have been properly dealt with in the books of account

xxiii Trade receivables, Trade payables, Loans & Advances, security deposits and Unsecured Loans have been taken at their book value subject to confirmation
and reconciliation.

xxiv Loans and Advances are considered good in respect of which company does not hold any security other than the personal guarantee of persons.

xxv As of March 31, 2025, the company has contingent liabilities of Rs. 14.62 lacs.

xxvi Previous year figures (comparatives) have been regrouped and reclassified wherever necessary to correspond to figures of current year

xxvii These financial statements were approved by the Board of Directors and authorised for issue on 12-05-2025

xxviii Significant accounting policies (Refer Note 1)

xxix The accompanying notes no. 2 to 37 form an integral part of financial statement

As per our Audit Report of Even Date For and on behalf of the Board of Directors

For KAVA & ASSOCIATES RAPPID VALVES (INDIA) LIMITED

Chartered Accountants (Formerly Known as RAPPID VALVES (INDIA) PRIVATE LIMITED)

FRN:145721W

Sd/- ^Sd/-

GAURAV VIJAY DALAL DINESH GOPAL MUNDADA

Sd/ Managing Director Director

DIN 00494466 DIN 07274519

VIVEK JALAN Date - 12-May-2025 Place : Palghar

Partner Place - Place : Palghar Date: 12-May-2025

Mem. No.: 123756
Place: Mumbai

Date: 12-May-2025 Sd/- Sd/-

DIPESH BHALCHANDRA DALVI VRINDA SABOO

Chief financial Officer Company Secretary

Mem. No.: A75838

Place : Palghar Place : Palghar

Date: 12-May-2025 Date: 12-May-2025