Notes to Accounts of Sonam Ltd.

Mar 31, 2026

3.17 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has a present obligation as a result of past events
and 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 estimates required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.A
contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertaln future events beyond
the control of the company or a present obligation that is not recognized

3.18 Financial liabilities

Borrowings

Borrowings are initially recorded at fair value and subsequently measured at amortized costs using
effective interest method. Transact ion costs are charged to statement of profit and loss as financial
expenses over the term of borrowing.

Trade Payables

Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary
course of buslness and are classified as current liabilities to the extent it is expected
to be paid within the normal operating cycle of the business.

3.19 Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the
extent that it relates to items recognised directly in equity or in Other Comprehensive Income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax
rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset
only if, the Company:

a) Has a legally enforceable right to set off the recognised amounts; and

b) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the
balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises from initial recognition of goodwill or from
the initial recognition (other than in a business combination) of other assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the balance sheet date.

0.01 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The board of directors of the Company has been identified as being the chief
operating decision maker by the Management of the company.

0.02 Standard issued but not yet effective

Ministry of Corporate Affairs ("MCA") has not notified new standard or amendments to the existing
standards, which would have been applicable from April 1, 2025.

36 Employee benefits

The Company contributes to the following post-employment defined benefit plans in India.

The Labour Codes enacted by the Government of India are yet to be operationally implemented and made applicable to the Company. Consequently, the
Company has continued to comply with the existing labour laws in force. The ultimate impact of the Labour Codes, including related rules and notifications, if
any, on the Company''s financial statements is presently not ascertainable and will be recognized/disclosed upon their effective implementation.

Defined Contribution Plans:

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the
Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

(ii) Defined Benefit Plan:

The Company provides for gratuity for employees in India as perthe Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5
years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service. Gratuity liabilty is being contributed to the gratuity fund formed by the
company.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2026.
The present value ofthe defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit
Method.

Sensitivities due to mortality & withdrawals are insignificant & hence ignored. Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate
of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

Although the analysis does not take account ofthe full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity
of the assumptions shown.

F. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase
the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.

C) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lowerthan assumed withdrawals and change of withdrawal rates at subsequent valuations can impact
Plan''s liability.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual
funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing
price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted
equity securities.

II. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The
board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined
framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in
market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and
arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely both in domestic and
export market. The Management impact analysis shows credit risk and impact assessment as low.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the
company''s standard payment and delivery terms and conditions are offered. The company''s review includes market check, industry feedback, past
financials and external ratings, if they are available and in some cases bank references.

During the period, the Company has made no write-offs of trade receivables, it does not expect to receive future cash flows or recoveries from collection
of cash flows previously written off. The Company management also pursue all legal option for recovery of dues wherever necessary based on its internal
assessment.

The gross carrying amount of trade receivables is Rs. 812.20 Lakhs (Rs. 1004.74 Lakhs as on 31 March 2025)

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company''s reputation

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate
amount of committed credit facilities to meet obligations when due and to close out market positions.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents
on the basis of expected future cash flows. The Company''s liquidity management strategy involves projecting cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans.

(a) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and exclude
contractual interest payments and the impact of netting agreements.

iv. Market risk

Market risk is the riskthat changes in market prices-such as foreign exchange rates and interest rates — will affect the Company''s income orthe value of
its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.

The Company uses derivatives like forward contracts (if at all possible) to manage market riskson account of foreign exchange and various debt
instruments on account of interest rates. All such transactions are carried out within the guidelines issued by RBI and under advisory of concern lenders.

v. Currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk
arises from future commercial transactions and recognised assets and liabilities denominated in a currencythat is not the company''s functional currency
(INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

The Company''s policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary
to address short-term imbalances.

40 Segment Reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) which is the Board of Directors ofthe
company approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the company
falls within one broad business segment viz. "Ceramic Tiles and Allied products" and substantially sale of the product is within the country. The Gross
income and profit from the other segment is below the norms prescribed in Ind AS 108. Hence, the disclosure requirement of Ind AS 108 of ''Segment
Reporting'' is not considered applicable.

41 Capital management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development
of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. The Company may take
appropriate steps in order to maintain, or if necessary adjust, its capital structure. The following table summarises the capital of the Company:

48 Other Statutory Information:

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

2 The Company do not have any transactions with companies struck off.

3 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

5 The Company does not have any such trasaction which is not recorded in the books of accounts that 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).

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Mar 31, 2025

(vii) Provisions, contingent liabilities and contingent assets :

A provision is recognised when the company has a present obligation as a result of past
events and 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 estimates required to settle the obligation at
the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the company or a present obligation that is not recognized

because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably.

Contingent liabilities are disclosed by way of notes to the accounts.

Contingent assets are not recognized.

(viii) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the company and the revenue can be reliably measured.

Sales of Goods:

Sales are recognized when significant risks and rewards of ownership of goods have been
passed to the buyer. Sales are being accounted for net of duties and taxes.

Interest:

Revenue is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable.

Other Operating Revenue / Other Income:

Other Income being, DEPB licence income, discount and rate difference income, insurance
claim income, etc. are being recognized on accrual basis in the year in which right to receive
the same is established

(ix) Retirement Benefits and other employee benefits:

Defined Contribution Plans:

Defined contribution to provident fund is charged to the profit and loss account on accrual
basis.

Defined Benefit Plans:

Provision for gratuity liability is provided based on actuarial valuation made at the end of the
financial year.

Leave encashment expenditure is charged to profit and loss account at the time of leave
encashed and paid, if any. Bonus expenditure is charged to profit and loss account on accrual
basis.

(x) Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing
on the date of transaction.

Foreign currency current assets and current liabilities outstanding at the balance sheet date
are translated at the exchange rate prevailing on that date and the net gain or loss is
recognized in the profit and loss account.

Foreign currency translation differences relating to liabilities incurred for purchasing of
tangible assets from foreign countries are recognized in the profit and loss account. All other
foreign currency gain or losses are recognized in the profit and loss account.

(xi) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get ready for intended use. Costs incurred
in raising funds are amortised equally over the period for which the funds are acquired. All
other borrowing costs are charged to statement of profit and loss.

(xii) Taxes on Income

Tax expenses comprise Current Tax and deferred tax charge or credit.

Current Tax: Provision for current tax is made based on tax liability computed after
considering tax allowances and exemptions, in accordance with the provisions of The
Income Tax Act, 1961.

Deferred Tax: Deferred tax assets and liability is recognized, on timing differences, being
the differences between taxable income and accounting income that originate in one period
and are capable of reversal in one or more subsequent periods. Deferred tax assets arising
mainly on account of brought forward losses, unabsorbed depreciation and minimum
alternate tax under tax laws, are recognised, only if there is a virtual certainty of its
realisation, supported by convincing evidence. At each Balance Sheet date, the carrying
amounts of deferred tax assets are reviewed to reassure realisation. The deferred tax asset
and deferred tax liability is calculated by applying tax rate and tax laws that have been
enacted or substantively enacted by the Balance Sheet date.

(xiii) Earnings per share:

Basic earnings per share are calculated by dividing the net profit / (loss) for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding
during the period are adjusted for any bonus shares issued during the year, if any, and also
after the balance sheet date but before the date the financial statements are approved by the
board of directors.

(xiv) Segment Reporting:

The Chief Operational Decision Maker (CODM) monitors the operating results of its
business segments separately for the purpose of making decisions about resource allocation
and performance assessment. Segment performance is evaluated based on the profit or loss
and is measure consistently with the profit or loss in the financial statements. Operating
segments are reported in a manner consistent with the internal reporting provided to CODM.
In accordance with Ind AS 108- “Operating Segments", the Company has identified its
business segment as "Manufacturing & Trading of Horological items, Clocks, Clock
Movements and related items". There are no other primary reportable segments. The major
and material activities of the company are restricted to only one geographical segment i.e.
India, hence the secondary segment disclosures are also not applicable.

(xv) De-recognition:

The Company derecognizes a Financial Asset when the contractual rights to the cash flows
from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies
for de-recognition under Ind AS 109. A Financial liability (or a part of a Financial liability)
is derecognized from the Company’s Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

(xvi) Offsetting:

Financial Assets and Financial Liabilities are offset and the net amount is presented in the
balance sheet when, and only when, the Company has a legally enforceable right to set off
the amount and it intends, either to settle them on a net basis or to realise the asset and settle
the liability simultaneously.

As per our attached Report of even date For, and on behalf of Board

For, SVK & ASSOCIATES For, SONAM LIMITED

Chartered Accountants
FRN: 118564W

Sd/- Sd/- Sd/-

Sameer S. Chandarana Jayeshbhai C. Shah Deepaben J. Shah

Partner Chairman & MD Whole Time Director

M. No. 609340 DIN: 00500814 DIN: 01981533

UDIN: 25609340BMOXQP1262

Sd/- Sd/-

Amitbhai J. Vaghjiyani Milankumar Ganatra

Chief Financial Officer Company Secretary

Date: 09^th May, 2025 Date: 09^th May, 2025

Place: Morbi Place: Morbi

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Mar 31, 2024

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 each (Refer note-2). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in 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 shareholders.

Note-1: Persunat to approval given by the shareholders, the Company has during quarter ended September 2022, issued 1,00,08,000 equity shares of ? 10 Each as fully paid-up bonus equity shares in the ratio of 1 (One) equity share for every 1 (One) existing equity share.

Note-2:Subsequent to the year end and pursuant to Board and Shareholder’s approval, the equity shares of the Company were split / sub-divided such that one (1) equity share having face value of '' 10/- (Rupees Ten only) each fully paid-up, was sub-divided into two (2) equity shares having face value of '' 5/- (Rupees Five only) each, full paid-up with effect from 10th May, 2024 (Record Date). Accordingly, equity shares and earnings per shares have been adjusted for share split in accordance with Ind AS 33 ‘Earning Per Share’ read with Ind AS 10 ‘Events After Reporting Period’.

NOTE - 28: NOTES ON ACCOUNTS:-A The Company

"SONAM LIMITED” (Formerly Known as SONAM CLOCK LIMITED) (CIN U33302GJ2001PLC039689) has been migrated from Emerge Platform of National Stock Exchange ofIndia Ltd. (NSE) to Main Board of National Stock Exchange w.e.f. 7th April, 2022.

B Nature of Operations :-

The Company having its manufacturing facilities at Morbi, Gujarat, is presently engaged in Manufacturing & trading of Horological items, Clocks, Clock Movements and related items.

1 Notes on Audit for the Year Ended March 31, 2024

Previous year’s figure have been reworked, regrouped, rearranged and reclassified wherever necessary, so to give a comparative view. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 Long Term and Short Term Borrowings :-Secured :

[a] Term Loans From Banks

Amt O/s

(i) Indulsand Bank : Rs. 399.16 Lacs Repayable in 40 Installments Primary Security - First and Exclusive Charge on Hypothication of Entire Movable Fixed Assets and Current assests of the Company.

Collateral Security:

EQM of factory land and building (Commercial Premises Area 4451.52 Sq Mtrs, Industrial Premises Area 5159.72 Sq Mtrs & Industrial Premises area 17705 Sq Mtrs.) situated at Ser. No. 337/P & 338/1p1 & 1p2, Village Lajjai, Taluka Tankara, Dist. Morbi standing in the name of M/s. Sonam Clock Limited.

Personal Guarantee of Mr. Jayeshbhai C. Shah (Managing Director), Mrs. Deepaben J. Shah (Whole Time Director) and Mr Harshil J Shah (Director)

[b] Cash Credit & EPC facilities from Banks repayable on demand

Amt O/s

(i) Indulsand Bank - Rs. 1607.89 lacs Primary Security - First and Exclusive Charge on Hypothication of Entire Movable Fixed Assets and Current assests of the Company.

(ii) Indulsand Bank - GECL-WCTL : Rs. 167.20 Lacs - Repayable in 26 Installments.

(iii) Bank of India - GECL 2 (WCDL) : Rs. 41.39 Lacs - Repayable in 10 Installments.

Collateral Security:

EQM of factory land and building (Commercial Premises Area 4451.52 Sq Mtrs, Industrial Premises Area 5159.72 Sq Mtrs & Industrial Premises area 17705 Sq Mtrs.) situated at Ser. No. 337/P & 338/1p1 & 1p2, Village Lajjai, Taluka Tankara, Dist. Morbi standing in the name of M/s. Sonam Clock Limited.

Personal Guarantee of Mr. Jayeshbhai C. Shah (Managing Director), Mrs. Deepaben J. Shah (Whole Time Director) and Mr Harshil J Shah (Director)

The rate of interest on the long term and short term borrowings ranges between 8.20% to 9.50% p.a. depending upon the prime lending rate / base rate of the banks applicable at different point of time during the year and the interest rate spread agreed with the banks.

^Subsequent to the year end and pursuant to Board and Shareholder’s approval, the equity shares of the Company were split / sub-divided such that one (1) equity share having face value of '' 10/-(Rupees Ten only) each fully paid-up, was sub-divided into two (2) equity shares having face value of '' 5/- (Rupees Five only) each, full paid-up with effect from 10th May, 2024 (Record Date). Accordingly, equity shares and earnings per shares have been adjusted for share split in accordance with Ind AS 33 ‘Earning Per Share’ read with Ind AS 10 ‘Events After Reporting Period’.

The estimated future salary increases, considered in actuarial valuation, takes into account the effect of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

9 Segment Information:-

In accordance with Ind AS 108- “Operating Segments", the Company has identified its business segment as "Manufacturing & Trading of Horological items, Clocks, Clock Movements and related items". There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

12	Contingent Liabilities*		Amt. Rs.in Lacs
		2023-24	2022-23
(i)	Outstanding LC / BG LC Outstanding	Nil	Nil
(ii)	Pending Litigations: Central Excise Matters under dispute & under adjudication	Nil	Nil
	Value Added Tax (VAT) Matters under dispute & under adjudication Income Tax matter under Appeal CIT(A)	43.11	13.85
	* Contingent liability produced here in above on the basis of information compiled by the management ofthe company

b Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated from 02nd April,2023 all relevant transactions recorded in the software, except that audit trail feature is not enabled for direct changes to data for users with certain privileged access rights and also for certain changes made using privileged/ administrative access right. Audit trail (edit log) is enabled at the application level.

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

d 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

e The Company does not have any transactions with struck-off companies.

f 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.

^g The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017. h

The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries), with the understanding 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

i The Company has not received any funds 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 to or on behalf of the Ultimate Beneficiaries.

j 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).

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

15 In the opinion of the Board and to the best of its knowledge and belief, the value on realisation of current assets and loans and advances are approximately of the same value as stated.

16 Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances, other current liabilities and other current assets and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

17 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

18 Figures have been rounded off to nearest lac rupee upto two decimals as per the requirements of Schedule III, unless otherwise stated and have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2023

NOTE - 28: NOTES ONACCOUNTS:-A The_Company

”SONAM CLOCK LIMITED” (CIN U33302GJ2001PLC039689) has been migrated from Emerge Platform of National Stock Exchange of India Ltd. (NSE) to Main Board of National Stock Exchange w.e.f. 7th April, 2022. Hence, the financial statements for the year ended 31st March, 2022 were the first set of financial statements of the company under Ind AS and the date of transition to Ind AS being 1st April, 2020.

B NatureofOfierat^insj^

The Company having its manufacturing facilities at Morbi, Gujarat, is presently engaged in Manufacturing & trading of Horological items, Clocks, Clock Movements and related items.

1 Notes on Audit for the Year Ended March 31, 2023

Previous year’s figure have been reworked, regrouped, rearranged and reclassified wherever necessary, so to give a comparative view. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 Long Term and Short Term Borrowings Secured :

[a] Term Loans From Banks

Amt O/s

(i) Bank of India : Rs. Nil (Rs. 6.17 Lacs) Primary Security - Hypothecation all Plant & Machineries.

(ii) Bank of India : Rs. 540.27 Lacs (Rs. 681.60 Lacs) Primary Security -EQM of factory land and building there on situated at Sr. No.338/1P1&1P2, Village Lajai, Taluka Tankara, Dist. Morbi in name of Sonam Clock Limited. (Land Area: 17705 Sq. Mtrs.)

Collateral Security:

EQM of factory land and building (Commercial Premises Area 4451.52 Sq Mtrs & Industrial Premises Area 5159.72 Sq Mtrs) situated at Ser. No. 337/P, Village Lajjai, Taluka Tankara, Dist. Morbi standing in the name of M/s. Sonam Clock Limited

Personal Guarantee of Mr. Jayeshbhai C. Shah (Director) and Mrs. Deepaben J. Shah (Director)

[b] Cash Credit & EPC facilities from Banks repayable on demand

Amt O/s

(i) Bank of India - Rs. 1551.70 lacs (P.Y. Rs. 1381.30 Lacs) Primary Security - Hypothecation of Stocks and Book Debts.

(ii) Bank of India - GECL-WCTL : Rs. 180.11 Lacs (P.Y. 307.51 Lacs) - Repayable in 36 EMI after Initial Moratorium of 12 Months.

(iii) Bank of India - CESS-2020 (WCDL) : Nil (P.Y. 19.94 Lacs) - Repayable in 18 EMI after Initial Moratorium of 6 Months.

(iv) Bank of India - GECL 2 (WCDL) : Rs. 255.73 Lacs (P.Y. 290.00 Lacs) - Repayable in 36 EMI after Initial Moratorium of 12 Months.

Pledge of TDRs for LC Margin 15% upon full utilization of limit.

Collateral Security:

EQM of factory land and building (Commercial Premises Area 4451.52 Sq Mtrs & Industrial Premises Area 5159.72 Sq Mtrs) situated at Ser. No. 337/P, Village Lajjai, Taluka Tankara, Dist. Morbi standing in the name of M/s. Sonam Clock Limited

Personal Guarantee of Mr. Jayeshbhai C. Shah (Director) and Mrs. Deep C3aben J. Shah (Director)

[c] Vehicle Loans From Banks

Amt O/s

(i) Bank of India - Rs. 13.68 lacs (P.Y. 19.30 lacs) Secured against hypothecation of vehicles.

The rate of interest on the long term and short term borrowings ranges between 7% to 12% p.a. depending upon the prime lending rate / base rate of the banks applicable at different point of time during the year and the interest rate spread agreed with the banks.

Repayment period of long term borrowings ranges from less than 1 year to 6 years from the balance sheet date.

The estimated future salary increases, considered in actuarial valuation, takes into account the effect of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

9 Segment Information:-

In accordance with Ind AS 108- “Operating Segments”, the Company has identified its business segment as "Manufacturing & Trading of Horological items, Clocks, Clock Movements and related items”. There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

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

c 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

d The Company does not have any transactions with struck-off companies.

e 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, except for hypothecation of one vehicle for vehicle loan availed.

f The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017. g

The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries), with the understanding 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

h The Company has not received any funds 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 to or on behalf of the Ultimate Beneficiaries.

i 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).

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

15 In the opinion of the Board and to the best of its knowledge and belief, the value on realisation of current assets and loans and advances are approximately of the same value as stated.

16 Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances, other current liabilities and other current assets and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

17 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

18 Figures have been rounded off to nearest lac rupee upto two decimals as per the requirements of Schedule III, unless otherwise stated and have been regrouped, rearranged and reclassified