o. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event; 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 estimate 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.

p. Contingent liabilities

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 probable that an outflow of resources will be required to settle the obligations. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

q. Segment Reporting

i) 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 wholesale trading of Hardware Tools. Accordingly, the figures appearing in these financial statements relate to the Company's single Business Segment.

ii) 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.

r. Cash and Bank Balances

Cash and bank balances comprise cash at bank and cash/cheques on hand and deposits with Banks.

3.4 Rights, Preference and restrictions attached to shares

- Equity Shares

(i) The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding.

The Company has come out with public issue wherein it has issued 22,76,400 equity shares of Rs. 10/-each at issue price of Rs. 101 each on 11th May 2023.

- Preference Shares

(i) The Company has fully paid up 20 lacs .01% non convertible preference shares having a par value of Rs. 100 each.

NCRCPS shall carry a pre-determined cumulative dividend rate of .01% per annum. The dividend shall be payable, subject to cash flow solvency, in the event the Board declares any dividend for the relevant year and shall be paid to the Investors in priority to other classes of Shares.

(iii) The Company shall redeem the NRCCPS on or before 20 years from the date of Allotment at par on the Face Value of the preference Share with the approval of the Company and the Shareholder.

(iv) NCPRS are not entitled to participate in addition to and after payment of preference dividend to participate pari passu in the surplus fund.

(^v) NCRCPS held by the Investor shall not be entitled to receive surplus assets and profit on winding up which may remain after entire capital has been repaid.

(^v0 Subject to applicable provision of the Companies Act, 2013, the holders of the preference share shall be entitled to receive notice of and vote on all matters that are submitted to the vote of the Shareholders of the Company (including the holders of Equity Shares) in accordance with Section 47 of the Companies Act, 2013.

3.5 Dividend

(i) The Company has booked provision for dividend @0.01% on paid up preference share capital for Rs

20,000.

The above related party transactions have been reviewed periodically by the Board of Directors of the Company vis-a-vis the applicable provisions of the Companies Act, 2013, and justification of the rates being charged/ terms thereof and approved the same.

28 Employee Benefits

The Company has classified the various benefits provided to employees as under:-

(a) Defined contribution plans

-Provident fund

During the year, the Company has recognized Employer's contribution to provident fund amounting to Rs. 12,52,305 in the Statement of Profit and Loss .

b) Defined benefit plans

-Contribution to Gratuity funds

In accordance with Accounting Standard 15 (revised 2005), actuarial valuation was done in respect of the aforesaid defined benefit plans based on the following ass umptions-

Economic Assumptions

The discount rate and salary growth rate are the key financial assumptions and should be considered together; it is the difference or 'gap' between these rates which is more important than the individual rates in isolation.

Discount Rate

The discounting rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & salary growth rate. For the current valuation a discount rate of7.22% p.a. compound, has been used in consultation with the employer.

Salary Growth Rate

The salary growth rate usually consists of at least three components, viz. seniority, regular increments and promotional increase and price inflation. The assumptions used are summarised in the following table:

30 Segment Reporting

The company has only one reportable business segment which is wholesale trading of hardware tools. The entire operations are governed by the same set of risks and return hence have been considered as representing a single segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standards Segment Reporting AS 17.

31 Impairment

The Company has not recognised any loss on impairment in respect of assets of the Company as is required in terms of Accounting Standard 28 on 'Impairment of Assets', since in the opinion of the management of the Company, the reduction in value of any asset if any, to the extent required, has already been provided for in the books.

32 Dues to MSME as defined under THE MSME ACT 2006

As per the information available and explanations provided to us and certified by the management, amount of Rs. 86,815.95 Thousand is due to any Micro, Small and Medium Enterprises out of which Rs. 45,253.58 Thousand is outstanding for more than 45 days.

33 Taxation

(i) Provision for income tax is based on tax on taxable income calculated as per provisions of the Income Tax Act, 1961.

(ii) The Company has created deferred tax of ^ 12,459.09 Thousand during the current year by charging to the Statement of Profit and Loss and resulting in a net deferred tax asset of ^ 13,996.10 Thousand as at March 31, 2024.

35 Other Notes

a) Debit and credit balances of trade payables, trade receivables, loans and advances to the extent not confirmed are subject to confirmation and reconciliation with the parties as at March 31, 2024.

b) Value of current assets, loans and advances

As per the requirement of Schedule III, the Board of Directors have considered the values of all assets of the Company other than fixed assets, and have come to a conclusion that these have a value on realisation in the ordinary course of business which is not less than the value at which they are stated in the balance sheet.

c) Past years TDS, TCS have been adjusted in the books. The same has been adjusted as per the various Assesment Orders. The amount to be recovered from the Income Tax Authority has been shown under the head 'Loans and Advances'.

d) Previous year figures have been regrouped and rearranged whenever necessary to make them comparable.

e) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

The company has not owned any immovable property as at balance sheet date.

g) The company has not revalued its Property, Plant and Equipment during the year.

h) The company has not given any Loans or Advances to its promoters, directors or related parties.

i) The company does not have any benami property, where any proceedings has been initiated or pending against the company for holding any benami property.

j) The company has availed discounting of purchase bills facility from SG Finserve Limited, a listed registered NBFC which has been shown as Unsecured Loan from other than related parties in the audited financials.

k) The financial results of the company has been reviewed and recommended by the audit committee and approved by the board of directors in their meeting held on 11th May 2024.

l) The Financial Results for the half year and year ended on 31st March 2024 have been prepared by the company in accordance with the Accounting Standards ("AS") prescribed under Section 133 of the Companies Act 2013 read with relevant Rules issued there under and in terms of the Regulation 33 of SEBI (Listing Obligations & Disclosure Requirements) Regulation 2015 (as amended) and have expressed an unmodified opinion thereon.

^m) The Company had come out with an initial public offer wherein it had issued 22,76,400 equity shares of Rs. 10/- each at a premium of Rs. 91/- each and got listed on the Emerge platform of the National Stock Exchange of India Limited on 11th May 2023. The company has fully utilized the funds for the objects for which the amount was raised and there was no deviation.

ⁿ) As per the Ministry of Corporate Affairs Notification dated February 16, 2015, Companies whose securities are listed on SME Exchange as referred to in Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 [ICDR, 2009] are exempted from the compulsory requirement of adoption of Ind AS.

o) Figures for the half-year ended March 31, 2024 and March 31, 2023 represent the difference between the audited figures in respect of full financial year and the unaudited published figures of half-year ended September 30, 2023 and September 30, 2022 respectively.

P) The above results are also available on our website http://www.deneerstools.com

d) No Investor Complaints pending at beginning of the Period and no complaint were received during the Period and pending for disposal at the end ofthe Period.

^r) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are not in agreement with the books of accounts and summary of reconciliation and reasons of material discrepancies is attached as Annexure 1.

s) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

t) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

u) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutoryperiod.

v) The Company has complied with the number of layers prescribed under clause (87) of section 2 ofthe Act read with the Companies (Restriction on number of Layers) Rules, 2017.

w) The Company does not have any such transaction 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.

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

y) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall :

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

z) 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 :

(a) 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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Signatures to Notes 1 to 35 of Financial Statements

For & on behalf of

"As per our report of even date" Gautam Sehgal & Company

Chartered Accountants

PLAC: NEW DELHI DATED: 11/05/2024

Sd/- Sd/- Sd/- Sd/-

Gautam Sehgal Bhagyashree Kanav Gupta Neeraj Kumar Aggarwal

Periwal

(Company (CFO &Whole Time

(PARTNER) Secretary) Director) (Managing Director)

M No:095938 M No: A 50954 DIN:06802701 DIN:08058134

FRN:015736N