Notes to Accounts of Transteel Seating Technologies Ltd.

Mar 31, 2025

1.12 Provisions / Contingencies

(a) Provision involving substantial degree of estimation in measurements is recognized when there is a present obligation as a result of
past events and it is probable that there will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available,
their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.13 Segment Rennrtino

A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS -17) on Segment Reporting issued by ICAI, the Company has
only one reportable Business Segment, which is engaged manufacture and sale of chairs and other seating equipments. Accordingly,
the figures appearing in these financial statements relate to the Company''s single Business Segment

B. Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures
appearing in these financial statements relate to the Company''s single geographical segment.

1.14 Foreign Currency Transactions

Foreign exchange transactions are recorded at the rate prevailing on the date of respective transaction. Monetary assets and liabilities
denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. Non monetary
items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of
transacion. Exchange diffrcnccs arising on foreign exchange transactions settled during the year and on restatement as at the balance
sheet date are recognized in the statement of profit and loss for the year.

1.15 Digital Market Model

The Company has incurred expenditure on acquisition, development and implementation of new systems/processes of Digital Market
model for customer loyalty and customer lists as in the past year. This Digital Market model expenditure is to identify and acquire
customer data for research and analysis of the same. These customer data/lists accumulated over time, will help the company to bring in
relevant/right customers. Further, in toe opinion of toe directors, this will provide a base for toe company to extent this model to
Franchises which will help the compay to rapidly sclae toe revenue without incurring similar spends/costs. In view of toe above, these
expenditure accumulated will be amortised over a period of time from the fifth (5) year onwards.

1.16 Warranty

The company sells its product carrying a warranty. No provision is made in the accounts toward warranty expenses. The same is
accounted on actuals basis.

1.17 Balance Confirmations

Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to consequential
adjustments, if any. Debtors & creditors balance has been shown separately and toe advances received and paid from/to toe parties is
shown as advance from customer and advance to suppliers.

1.18 Regrouping

Previous years figures have been regrouped and reclassified wherever necessary to match with current year grouping and classifiaction.

1.19 Pandemic fCovid-191 imnact

The World Health Organization announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and
classified its outbreak as a pandemic on 11 March 2020. On 24 March 2020, the Indian government announced a strict 21-day
lockdown across toe country to contain the spread of toe virus. The management has made an assessment of toe impact of COVID-19
on toe Company''s operations, financial performance and position for toe year ended 31 March 2023 and has concluded that no there is
no significant impact which is required to be recognized in toe financial statements. Accordingly, no adjustments are required to be
made to toe financial statements.

IL Defined benefit plans

Gratuity

The Company should provide for gratuity for employees in India as per the 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/¹ termination is the employees last drawn basic salary per month

computed proportionately for 15 days salary multiplied for the number of years of service, subject to a payment ceiling of DSTR 20,00,000/-.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation as at balance sheet
date:

Notes:

1. Debt Service Coverage Ratio increased by 33.81% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to increase in
Earnings available for debt service during the year.

2. Trade Payable Turnover Ratio increased by 101.07% for the year ended 31.03,2025 as compared to F.Y, 2023-24 due to increase in
Net Purchase during the year.

3. Return on Investment Ratio increased by 65.00% for the year ended 31.03.2025 as compared to F.Y. 2023-24 due to decrease in Net
Return on Investment during the year.

NOTE 31

No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule HI:

a) Crypto Currency or Virtual Currency

b) Benami Properly held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

c) Relating to borrowed funds

i) Wilful defaulter

ii) Utilisation of borrowed funds & share premium

iii) Borrowings obtained on the basis of security of current assets

iv) Discrepancy in utilisation of borrowings

v) Current maturity of long term borrowings

d) There are no layer of companies, hence no disclosures are required

e) There is no scheme of arrangement approved in terms of section 230 to 237 of Companies Act, 2013

f) There are no loans and advances in the nature of loans that are granted to promoters, directors, KMP''s and other related parties either
severally or jointly with anyother person that are repayable on demand.

g) The company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the income tax assessments under the Income tax Act, 1961

h) The company has not advanced or loaned or invested funds to anyother person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding that the intermediaries 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 beneficiery) or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficieries

i) The company has not received from any person(s) or entity(ies), including (funding party) with the understanding 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 company
(ultimate beneficiery) or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficieries

For and on behalf of the Board of Directors of

For JAY GUPTA & ASSOCIATES TRANSTEEL SEATING TECHNOLOGIES LIMITED

(Erstwhile GUPTA AGARWAL & ASSOCIATES)

Chartered Accountants

FRN: 329001E __\ rvtt,

@F% "

Jay Shanker Gupta Nasreen Shiraz Shiraz Ibrahim

(Partner) Director Director & CFO

Membership No. 059535 DIN:00581065 DIN:00812527

UDIN: 25059535BMHCBH9073

---

Mar 31, 2024

1.12 Provisions / Contingencies

(a) Provision involving substantia! degree of estimation in measurements is recognized when, there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.13 Segment Reporting A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment, which is engaged manufacture and sale of chairs and other seating equipments. Accordingly, the figures appearing in these financial statements relate to the Company’s single Business Segment.

R. Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Company''s single geographical segment.

1.14 Forei''in Currency Transactions

Foreign exchange transactions are recorded at the rate prevailing on the date of respective transaction. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transacion. Exchange dififrences arising on foreign exchange transactions settled during the year and on restatement as at the balance sheet date are recognized in the statement of profit and loss for the year.

1.15 Digital Market Model

The Company has incurred expenditure on acquisition, development and implementation of new systems/processes of Digital Market model for customer loyalty and customer lists as in the past year. This Digital Market model expenditure is to identify and acquire customer data for research and analysis of the same. These customer data/lists accumulated over time, will help the company to bring in relevant/''right customers. Further, in the opinion of the directors, this will provide a base for the company to extent this model to Franchises which will help the conipay to rapidly sclae the revenue without incurring similar spends/costs. In view of the above, these expenditure accumulated will be amortised over a period of time from the fifth (5)

v^ar onwards

1.16 Warranty

The company sells its product carrying a warranty. No provision is made in the accounts toward warranty expenses. The same is accounted on actuals basis.

1.17 Balance Confirmations

Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to consequential adjustments, if any. Debtors & creditors balance has been shown separately and the advances received and paid from/to the parties is shown as advance from customer and advance to suppliers.

1.18 Regrouping

Previous years figures have been regrouped and reclassified wherever necessary to match with current year grouping and j classifiaction.

1-19 Pandemic tCovid-19| impact

The World Health Organization announced a global health emergency because of a new strain of coronavirus (“COVID-19") and classified its outbreak as a pandemic on 11 March 2020. On 24 March 2020, the Indian government announced a strict 21-day lockdown across the country to contain the spread of the virus. The management has made an assessment of the impact of COVID-19 on the Company''s operations, financial performance and position for the year ended 3! March 2023 and has concluded that no there is no significant impact which is required to be recognized in the financial statements. Accordingly, no adjustments are required to be made to the financial statements.

Notes:

1. Current Ratio increased by 62.38% for the year ended 31.03,2024 as compared to F.Y. 2022-23 due to increase in Current Assets during the year.

2. Debt-Equity Ratio decreased by 58.80% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase I in Equity during the year.

3. Return on Equity Ratio decreased by 61,66% for the year ended 31.03.2024 as compared to FY 2022-23 due to increase in Equity'' during the year.

4. Inventory Turnover Ratio increased by 79.79% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Cost of goods sold during thr year.

5. Working Capital Turnover Ratio decreased by 79.65% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Net Working Capital during the year.

6. Return on Capital Employed Ratio decreased by 42.16% for the period ended 31.03.2024 as compared to F.Y. 202223 due to increase in Capital Employed during the year.

7. Return on Investment Ratio increased by 67.51% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Rental income from investment during the year.

1wteT.22" ’ '' '' ‘ ‘ ——— —*— ——————~—

No transactions to report'' against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

a) Crypto Currency or Virtual Currency

b) Benami Property held under Prohibition of Banami Property'' Transactions Act. 1988 and rules made thereunder

c) Registration of charges or satisfaction with Registrar of Companies

d) Relating to borrowed funds i) Wilful defaulter

H) Utilisation of borrowed funds & share premium

lit) Borrowings obtained on the basis of security of current assets

iv) Discrepancy in utilisation of borrowings

v) Current maturity of long term borrowings ’

NOTE 1.23. DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company did not have any materia! transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.