Notes to Accounts of Sathlokhar Synergys E&C Global Ltd.

Mar 31, 2025

h) Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be
estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation.
Provisions are determined by the best estimate of 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 a 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 possible obligation or present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

i) Government grant:

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Company will comply with all attached conditions. Government grants relating to income are
deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are
intended to compensate and presented within other operating income.

j) Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax
by the weighted average number of shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at
fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed
converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.

k) Current and Non current classification:

"An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the reporting date; or it is Cash or cash equivalent unless it
is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.”

"An operating cycle is the time between the acquisition of assets for processing and their realization in Cash or cash
equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration of twelve months.”

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months
after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification.All other liabilities shall be classified as non-current.”

l) Cash and Bank Balances:

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed 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. Other Bank Balances are short-term balance (with original maturity is more than three months but
less than twelve months).

m) Inventories:

Inventories consisting of work in progress are valued at cost or net realisable value whichever is lower. Work-in¬
progress consisting of material, labour and other direct expenses are valued at cost incurred.

n) Segment Reporting:

The business activities of the company predominently fall within a single primary business. Thus there is no separate
reportable Segment businesses.

Note: 26 Additional Disclosures With Respect To Amendments To Schedule III:

1 Corporate Social Responsibility (CSR):

The Corporate Social Responsibility (CSR) provisions are applicable to our Company from FY 2023-24 onwards. Our
Company has constituted the Corporate Social Responsibility Committee under sub-section (1) of Section 135 of
Companies Act, 2013 and approved in the Board Meeting on March 20, 2024. As part of its initiatives under "Corporate
Social Responsibility (CSR), our Company has undertaken projects in the areas of Education, Livelihood, Health,
Water and Sanitation. These projects are largely in accordance with Schedule VII read with Section 135 (2) of the
Companies Act, 2013.

Notes*

1. Demand of Rs. 48.24 Lakhs is related to FY 2019-20, appeal has been filed against the demand and the final order is
expected to be favourable to the company.

2. TDS demand of Rs.1.52 Lakhs is under rectification.

3. In the EPC business, the contractor shall be responsible to make good at their own cost for any defects arise out of faulty
workmanship or quality related issues in delivering the accepted quality which may develop post a certain period after
completion of works. This period is called defect liability period, and it may vary from contract to contract and in usual
terms it is for a period of 12 months from completion of work. During this defect liability period there exists a contingency
on part of the company to incur any additional cost that may arise in making good for any defects or issues that may
arise. This contingent liability is inherent in nature for this business and cannot be quantified at inception or as the work
progresses.

4 Proposed Dividend Details:The Company has not declared dividend for the year ended FY2025.

5 No issue of securities were made for any specific purpose by the Company during the reporting year.

6 The Company has not made borrowings from banks and financial institutions for any specific purposes during the year.

7 The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on
realization in the ordinary course of business equal to the amount at which they are stated.

8 Details of Benami Property heldThere are no proceedings initiated or pending against the Company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

9 The Company has borrowings from the banks or financial institutions on the basis of security of current assets. Quarterly
returns or statement of current assets are filled by the company with banks are as follows:

Note: Canara bank limit was sanctioned in the month of December and periodical stock statements submission applicable
only from the third quarter of the financial year

10 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

11 Relationship with Struck off Companies

The Company has not entered into any transactions with companies struck off under section 248 of the Companies
Act, 2013

12 Registration of charges or satisfaction with Registrar of Companies:

The Company has no charge which is yet to be registered with Registrar of Companies beyond the statutory period

13 Compliance with number of layers of companies:

The Company has no subsidiaries hence layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017 are not applicable.

14 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.

15 Utilisation of Borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) 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

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

B. 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 company shall

(i) 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

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

16 No amounts have been set aside or proposed to be set aside to reserve to meet any specific liability, contingency or
commitment known to exit at the date as at which balance sheet made up.

23 Employee Benefit (Incurred in India):

Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit
Method. This method considers each period of service as giving rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final obligation. The Company does not have a funded plan for gratuity
liability.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the
actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to
the services rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial
assumptions. It could also occur due to changes made in the actuarial assumptions.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information
is certified by the actuary.

24 Cashflow Statement

(1) The amount of significant cash and bank balances held by the enterprise as at March 31, 2025 was Rs.
40,03,42,684.98 that are available for use by Company.

(2) Company does not have undrawn borrowing facilities that may be available for future operating activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(4) Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from Cash
Flow Statement.

25 Changes in Accounting Estimates

There are no changes in Accounting Estimates made by the Company during the year.

26 Changes in Accounting Policies

There are no changes in Accounting Policies made by the Company during the year.

27 Disclosures on PPE and Intangible Assets

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are under
hypothication/ charge.

(2) Company has not constructed any item in Property, Plant & equipment.

(3) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(4) Company has no Impairment loss during the period for Property, Plant & Equipment.

(5) Assets are periodiacally checked for active usage and those which are retired are written off.

(6) There are no temporarily idle property, plant and equipment.

(7) The carrying amount and remaining amortization period of any individual intangible asset are not material to the
financial statements of the enterprise as a whole.

II. Capital Work in progress and Intangible asset under development

The Company do not have Capital work in progress or Intangible asset under development for the financial year and
such disclosure do not arise

For and on behalf of the Board of Directors of As per our report of even date attached

SATHLOKHAR SYNERGYS E&C GLOBAL LIMITED For P P N AND COMPANY

(Formerly known as Sathlokhar Synergys Private Limited and Chartered Accountants

Sathlokhar Synergys E&C Global Private Limited) Firm''s Registration.No: 013623S

Peer review Certificate No.013578

G Thiyagu T Sangeethaa D Hitesh

Managing Director cum CEO Whole-Time Director Partner

DIN: 02755501 DIN: 07813738 M.No: 231991

UDIN: 25231991BMKRNB2122

Vijayakumar P Anil Prasad Sahoo

Chief Financial officer Company secretary

M. No.A22871

Place: Chennai
Date: 09-05-2025