Notes to Accounts of Vruddhi Engineering Works Ltd.

Mar 31, 2025

Note 3(B) - Rights, Preferences & Restrictions of each class of shares

Note 3 (C) - The Company has one class of equity shares having par value of 10 per share. Each holder of equity shares is entitled to one vote per share. All shareholders are equally entitled to dividend. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts, if any) in the proportion of equity shares held by the shareholders

(2) Corporate Social Responsibility (CSR)

The provision related to Section 135 of the Companies Act, 2013 regarding the Corporate Social Responsibility is not applicable to the Company.

(3) Details of Crypto Currency or Virtual Currency

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

(4) Title deed of immovable property not held in name of the company

The title deeds all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) as disclosed in the financial statements are held in the name of the company.

(5) Valuation of PPE, intangible assets & investment property

The Company has not revalued its Property, Plant and Equipment or intangible assets during the year under review.

(6) Details of Benami Property held

The Company do not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made

(7) Undisclosed Income

The Company does not have any transactions that was 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). Further, there has been no previously unrecorded income and related assets that are required to be properly recorded in the books of account during the concerned financial year.

(8) Wilful Defaulter

The Company is not categorized as a wilful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, as at the year end.

(9) Relationship with struck off companies

The Company has not entered into any transaction with the companies Struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the concerned financial year.

(11) Compliance with number of layers of companies

The company does not have any subsidiaries as per clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(12) Compliance with approved Scheme(s) of Arrangements

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

(13) 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 persons or entities, including foreign entities

(B) The Company has not received funds from foreign entities (Funding Party), where there is any understanding with intermediary for lending, investing or providing guarantee or security on behalf of the ultimate beneficiary.

(14) Balances with respect to trade receivable and trade payables are subject to confirmation,reconciliation and consequential adjustments, If Any.

(15) Audit Trail

In accordance with Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended, companies are required to maintain their books of account using accounting software that includes an audit trail (edit log) feature, which must remain enabled throughout the financial year.

The Company has maintained its books of account using accounting software that does not currently support the audit trail (edit log) functionality. Consequently, the requirements relating to audit trail compliance have not been met for the financial year ended March 31, 2025.

The Company is in the process of evaluating suitable accounting software solutions to ensure compliance with the said requirements in the forthcoming financial years.

(16) The company was in the process of listing on BSE SME Platform as on March 31, 2024 and got listed w.e.f. April 3, 2024 by issuing 6,80,000 shares of Rs. 10 each at Rs. 70

(17) Previous year''s figures have been regrouped and rearranged wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2024

j) Provision, Contingent Liabilities and Commitments:

(a) Provision involving substantial degree of estimation in measurements is recognized when there is a present
obligation as 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 Assets are recognized when realisation of income is virtually certain.

k) Cash and Cash Equivalents:

Cash and cash equivalents comprise cash and deposit with banks. The Company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily
convertible to known amounts of cash to be cash equivalents.

l) Inventories:

Inventories are valued after providing for obsolescence, as follows:

a) Raw Materials,Semi Finished goods Lower of cost and net realizable value. However, materials and other items
held for use in the production of inventories are not written down below cost if the finished products in which they
will be incorporated are expected to be sold at or above cost. Cost is determined on Weighted Average Cost basis.

b) Work-in-Progress is valued at raw material cost plus proportionate conversion cost.

Net realizable value is the estimated selling price in the ordinary resources of business, less estimated costs of
completion and estimated costs necessary to make the sale, however due to the nature of the company the own
manufactured goods are valued at a Retail Method basis on a consistent basis, however the Trading Goods are
valued at the lower of Cost or Net Realisable Value.

2.2 Earnings per Share:

Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

(2) Corporate Social Responsibility (CSR)

The provision related to Section 135 of the Companies Act, 2013 regarding the Corporate Social Responsibility is not applicable to the Company.

(3) Details of Crypto Currency or Virtual Currency

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

(4) The Company does not have any assets other than Property, Plant and Equipment, Intangible assets and non-current investments during the year under review.

(5) The title deeds all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) as disclosed in the financial
statements are held in the name of the company.

(6) The Company has not revalued its Property, Plant and Equipment during the year under review.

(7) Details of Benami Property held

The Company do not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(8) Undisclosed Income

The Company does not have any transactions that was 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
TaxAct, 1961 (such as,search orsurveyoranyotherrelevantprovisionsofthe IncomeTaxAct, 1961). Further,therehasbeen nopreviouslyunrecorded incomeand related assetsthatare requiredtobe
properly recorded in the books of account during the concerned financial year.

(9) Wilful Defaulter

The Company is not categorized as a wilful defaulter by anybank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued bythe Reserve Bank ofIndia,
as at the year end.

(10) The Companyhas not entered into anytransaction with the companies Struck off under section 248 ofthe Companies Act, 2013or section 560 of Companies Act, 1956 duringthe concerned financial
year.

(16) The company was in the process of listing on BSE SME Platform as on March 31, 2024 and got listed w.e.f. April 3, 2024 by issuing 6,80,000 shares of Rs. 10 each at Rs. 70

(17) Previous year''s figures have been regrouped and rearranged wherever necessary to correspond with the current year''s classification/ disclosure.

For Maheshwari & Co. For and on behalf of the Board of Directors of

Chartered Accountants VRUDDHI ENGINEERING WORKS LIMITED

Firm Registration No. 105834W

Vikas Asawa Bindi Kunal Mehta Vedant Mukesh Mehta

Partner (Managing Director) (Director)

Membership No.172133 (dIN: 08936998) (dIN: 08936999)

Hiral Rushang Gandhi Kishori Jaysingh Sodha

(Chief financial officer) (Company Secretary)

(Pan No. JCSPS5825L) (Membership No.ACS 41799)

Place: Mumbai Place: Mumbai

Date: 30 May 2024 Date: 30 May 2024