Notes to Accounts of Shigan Quantum Technologies Ltd.

Mar 31, 2024

27.8 Disclosure under AS-15

A. GRATUITY (UNFUNDED) : Provision is made for gratuity (unfunded) based upon actuarial valuation done at the end of every financial year. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Commitments are actuarially determined using the ''Projected Unit Credit'' method. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

VIII. The estimates of rate of salary increase considered in the actuarial valuation takes into account inflation, seniority, promotion and all other relevant factors including supply and demand in the employment market.

IX. The company operates an unfunded gratuity plan wherein employees are entitled to the benefit as per scheme of the company for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

B. LEAVE ENCASHMENT (UNFUNDED): Provision is made for leave encashment (unfunded) based upon actuarial valuation done at the end of every financial year. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. Commitments are actuarially determined using the ''Projected Unit Credit'' method. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of Profit and Loss.

VIII. The estimates of rate of salary increase considered in the actuarial valuation takes into account inflation, seniority, promotion and all other relevant factors including supply and demand in the employment market.

IX. The company operates an unfunded leave encashment plan wherein employees are entitled to the benefit as per scheme of the company. The same is payable on utilization of leave or termination whichever is earlier.

27.9 The Company is exclusively engaged in the business of manufacturing and providing services of Alternate Fuel System Components for CNG and LPG mainly used by the OEM suppliers to auto industries. This in the context of Accounting Standard (AS 17) "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006, constitutes one single primary segment. The Company does not have a secondary segment. Accordingly, disclosures required under AS 17 are not applicable.

Reasons for variation of more than 25%:

a. Debt Service coverage Ratio: During the year there has been a fresh increase in working capital limit

of the company as compared to the previous year which has results in increase in debt service coverage ratio.

b. Net Profit Ratio: That the Change in royalty Prices and reduction in Production cost has increased the

Net Profit of the company in comparison to the last financial year i.e F.Y .2022-23.

c. Trade Receivable Turnover Ratio:- Increase in Trade Receivable During the F.Y .2023-24 has

resulted in decrease in Trade receivable turnover ratio during the F.Y. 2023-24 as compared to the ratio in F.Y. 2022-23

27.12 Previous year''s figures have been regrouped and rearranged wherever found necessary to make them comparable with the current year figures.

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Mar 31, 2023

Contingent Liabilities

All known liabilities are provided for in the accounts except liabilities that are of a contingent nature, in
respect of which suitable disclosures are made in the accounts.

1.4. Fixed Assets:-

Fixed assets are stated as cost less depreciation cost and any attributable cost of bringing the asset to its
working condition for its intended use.

1.5. Method of Depreciation:-

Depreciation on fixed assets has been provided on written down value method at the rates and in the manner
specified in Schedule II to the Companies Act, 2013.

1.6. Valuation of Inventories:-

Raw Material and Finished stock is valued at cost or net realizable value whichever is lower.

1.7. Capitalization of Expenses:-

All the capital expenses allocated to the concerned capital assets.

1.8. Treatment of Research & Development expenditure:-

Research and Development expenditure of capital nature are capitalized and those of revenue nature are
charged to profit & Loss account in the year in which these are incurred.

1.9. Treatment of Retirement benefit:-

In respect of retirement benefits payable (i.e. Gratuity, Leave Encashment etc.) to the employees at the time
of retirement, liability is provided on the basis of actuarial valuation report.

1.10 Disclosure of events subsequent to the Balance Sheet:-

All the major events subsequent to Balance Sheet which have material effect on the working of the assessee,
has been disclosed wherever necessary

1.11 Treatment of prior period items:-

The net of items relating to prior period if debit, is debited to statement of Profit and Loss and if credit is
credited to statement of Profit & Loss and treated as Income of the year.

1.12 Treatment of preliminary expenses and deferred revenue expenditure:-

All preliminary, pre-incorporation and deferred revenue expenditure being intangible is being written off
completely in the year in which it is expended as required by AS-26 for Intangible Assets issued by the
Institute of Chartered Accountants of India

1.13 Recognition of income and expenditure:-

Items of Income and Expenditure are recognized on accrual basis.

1.14 Going concern:-

The company has been preparing the accounts on going concern basis and all accounting policies are
consistently followed.

1.15 Foreign Exchange Transaction-

Foreign Currency transactions are booked at the rate prevailing at the time of transaction and any Gain/loss
arising out of fluctuations in exchange rate is accounted for at the year end as per AS-11 issued by the Institute
of Chartered Accountants of India.

b. Rights , preferences and restrictions attaching to each
class of shares
Equity shares

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

In the event of liquidation of the Company, the holders 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.