Notes to Accounts of SJP Ultrasonics Ltd.

1.10 - Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

1.11 - Foreign Currency translation and transactions

Transaction in foreign exchange are accounted for at the exchange rate prevailing on the date of transaction. The exchange rate differences arising out of
settlements are dealt with in the Profit and Loss Account. Foreign currency assets and liabilities are revalued at the year end exchange rates. Resultant gains or
losses are recognised in the Statement of Profit and Loss except exchange differences arising on settlement and/or transaction of foreign currency liabilities
on acquisition of fixed assets which are adjusted against the carrying cost of corresponding fixed assets.

1.12 - Borrowing Cost

The borrowing costs directly attributable to qualifying asset is capitalised to that asset. The borrowing costs which are not directly attributable to qualifying
asset is capitalised by applying capitalisation rate on the cost of qualifying asset. Other borrowing costs are charged to Profit & Loss Account for the year.

1.13 - Contingent Liabilities

Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from
past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of amount
cannot be made.

1.14 - Revenue Recognition

The Company has applied AS 9 - Revenue Recognition, which provides principles for determining when and how revenue should be recognized. Under AS 9,
revenue is recognized when it is earned and realizable, ensuring that the consideration is measurable and there is reasonable certainty of its ultimate collection.
The standard requires entities to exercise judgment, considering all relevant facts and circumstances related to contracts with customers.

Revenue towards satisfaction of performance obligations is measured at the transaction price, net of any variable consideration such as discounts and schemes
offered by the Company as part of the contract. The transaction price of goods sold and services rendered is determined based on contractual terms. Revenue
is recognized on an accrual basis, upon rendering of services, provided that there is no significant uncertainty regarding its realization.

1.15 - Employee Benefits

Short Term Employee Benefits measured at undiscounted amount, are accounted for in the Statement of Profit and Loss in the period during which the
services have been rendered.

(a) Defined Contribution Plan:

(i) Provident Fund:

Employees are entitled to receive benefits in respect of provident fund in which both employees and the Company make monthly contributions at a
specified percentage of the covered employees’ salary.

(i) ESIC:

Employees are entitled to receive benefits in respect of The Employees’ State Insurance Scheme (ESIC) , in which both employees and the Company
make monthly contributions at a specified percentage of the covered employees’ salary.

(b) Defined Benefit Plan:

(i) Gratuity:

The Company accounts for the net present value of its obligations for gratuity benefits based on an independent external actuarial valuation determined on
the basis of the projected unit credit method carried out at the Balance Sheet date. Premeasurement, comprising actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in retained earnings and is not
reclassified to profit and loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the
discount rate at the beginning of the period to the net defined benefit liability or asset.

(ii) Performance Incentives and Compensated Absences:

The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the period when
the employees render the services. These benefits include performance incentive and compensated absences which are expected to occur within twelve
months after the end of the period in which the employee renders the related service. The Company accounts for the net present value of its obligations for
compensated absences based on an independent external actuarial valuation carried out at the Balance Sheet date.

1.16 - Earnings Per Share

(a) Basic Earnings Per Share

The basic Earnings Per Share is computed by dividing the net profit/(loss) after tax for the year attributable to the equity shareholders by the weighted
average number of equity shares outstanding during the year, adjusted for bonus elements in equity shares issued during the year.

(b) Diluted Earnings Per Share

Diluted Earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest
and other financing cost associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive equity shares.

Note 28 : In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.
The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 29: Trade Receivables, Trade Payables, Other Current Assets, Loans and advances, Other Current Liabilities are subject to confirmation and reconciliation. Some of the trade receivable, trade
payables are outstanding for significant period of time and the management is in the process of negotiation and reconciliation with all such parties and the Consequential adjustment thereof, if any, will
be given effect into the books of accounts in the year of such adjustment.

31. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business, provision for depreciation and all known
liabilities is adequate and not in excess of the amount reasonably necessary.

32 Balance of Trade Payables, Trade Deposits, Advance from Customers, Trade Receivables, Export incentives receivable, Non Current and Current Loans and Advances are subject to confirmation by
the parties.

b) The required information has not been provided by the majority of the creditors to whom the companies owns dues. In absence of the availability of information, we are unable to confirm due from

Explanation for Change in Ratios more than 25%

1. Debt Equity Ratio

The Company''s borrowings increased from ?2.40 Crore as of March 2025 to ?5.78 Crore as of March 2026. The change in the borrowing structure and debt servicing pattern
has resulted in a significant variation in the Debt to Equity ratio during the year.

2. Trade payable Turnover Ratio

The Trade Payable Turnover Ratio improved from 3.63 times in FY 2024-25 to 5.98 times in FY 2025-26. This improvement was primarily driven by a significant increase in
business operations, resulting in higher purchases during the year, along with effective working capital management and timely settlement of supplier dues. Consequently,
trade payables constituted a lower percentage of turnover, decreasing from 12.18% to 9.04%, which led to a higher turnover of trade payables. The increase in the ratio
reflects enhanced efficiency in managing creditor obligations and a stronger liquidity position compared to the previous year.