(j) Provisions & Contingencies

A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

(k) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence 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. The company does not recognize a contingent liability but discloses its existence in the financial statements.

(l) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

(m) Current and non current classification

company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is treated as current when it is:

Ý Expected to be realised or intended to sold or consumed in normal operating cycle

Ý Held primarily for the purpose of trading

Ý Expected to be realised within twelve months after the reporting period, or

Ý Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current A liability is treated as current when it is:

Ý Expected to be settled in normal operating cycle

Ý Held primarily for the purpose of trading

Ý Due to be settled within twelve months after the reporting period, or

Ý There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non-current assets/liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation/settlement in cash and cash equivalents. The companies have identified twelve months as their operating cycle for classification of their current assets and liabilities.

Micro, Small and Medium Enterprises Development Act

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the group.

(i) The principal amount and the interest due thereon remaining unpaid to any supplier covered under MSMED Act:

- Principal amount -

- Interest thereon -

(ii) The amount of interest paid by the buyer in terms of section 16, of the MSMED Act, 2006 along with the

amounts of the payment made to the supplier beyond the appointed day during each accounting year. ^-

(iii) The amount of interest due and payable for the period of delay in making payment (which have been paid but

beyond the appointed day during the year) but without adding the interest specified under this Act. -

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year. -

(v) The amount of further interest remaining due and payable even in the succeeding years, until such date when

the interest dues above are actually paid to the small enterprise for the purpose of disallowance as a deductible -

expenditure under section 23 of the MSMED Act, 2006.

(vi) Due to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditor.

25 Segment Reporting

A. Basis for segmentation

The operations of the group are limited to one segment viz. "Sale of Bikes", which as per AS - 17 "Segment Reporting" is considered the only reportable segment.

B. Geographic Segment

The company provides all its services only from its office located in India and does not have any separate identifiable geographic segment.

C. Major Customer

There are no single customers which accounted for 10% or more of the group revenue.

26 Related Party Disclosures

In accordance with the requirements of Accounting Standard (AS) - 18 'Related Party Disclosures' the names of the related party where control exists/able to exercise significant influence along with the aggregate transactions / year end balances with them.

A. Related Parties with whom transaction have taken place during the year

Reason for change more than 25% :

1. The movement in account of increase in Current assets and Current liabilities.

2. The movement on account of increase in net profit.

3. The movement on account of increase in purchase.

4. The movement on account of increase in currents assets.

5. The movement on account of increase associate share of profit.

31 Other Information

(i) The company does not have anv charges or satisfaction which is vet to be registered with ROC bevond the statutory period.

(ii) The company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The company have 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 Ulti mate Beneficiaries

(iv) The company have 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

(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 Ulti mate Beneficiaries

(v) The company have not 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

For NYS & Company For and on behalf of the Board of Directors

Chartered Accountants Resourceful Automobiles Limited

Firm Reg. no. 017007N

Sd/-

Niitesh N Agrawal Sd/- Sd/-

Partner Bindu Sawhney Rahul Sawhney

M. No. 527125 Whole Time Director Managing Director

DIN : 08060807 DIN : 07635427