Notes to Accounts of Purple United Sales Ltd.

Mar 31, 2025

(13) Provisions

A provision is recognized when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable than 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.

(14) 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 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.

(15) Cash & cash equivalents

Cash and cash equivalents comprise of cash-in-hand
and balance in bank in current accounts and deposit
accounts, with an original maturity of three months
or less.

v. Unsecured term loan from banks and various financial institutions were taken during the financial year 2022-23 and 2023-24
and 2024-25 & carries interest which ranges between 14% to 19% p.a. The loan is repayable in monthly instalments along
with interest, and these loans have a maturity profile between 3 to 4 years from the date of loan. The loan is secured by
personal guarantee of promoters.

vi. Inventory valuation is determined based on the lower of cost or net realisable value (NRV) this approach is followed by
Accounting Standard-2 further as per company accounting policy the method of valuation is weighted average basis.

Company did not disclosed trade payables for expenses as per bank norms and in case of trade receivable some gap exist in
statement submitted to bank periodically.

vii. There is quartely/monthly statements submitted to bank are reconciled with the book, there are some variance, as per
management clarification, that statements submitted to the bank on provisional basis but at the periodic interval some
discount and credit notes adjusted in the books. their are some quarterly variance reported below:

ii. Defined benefit plan- Gratuity

The Company should provide for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in
contionous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/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 Rs 20,00,000/-

Based on the acturarial valuation obtained from independent professional in this respect,the following table sets out the details
of the emplyoee benefit obligation as at balance sheet date, however company not taken such provision, so this year is first year
of provision created:

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)
liability and its components.

NOTE 28:

The balance appearing under the Trade Receivable, Trade Payables, Loan & Advances, Other Current Assets and Liabilities are
subject to confirmation and reconcilation and consequent adjustments, if any, will be accounted for in the year of confirmation/
reconciliation.

NOTE 29:

Claim against the company not acknowledge as debt -NIL
NOTE 30:

The Company has conducted the Impairment test as of 31st March 2025 as per AS-28 “impairment of Assets” and found that
recoverable amount of the assets is not less than the carrying amount.

NOTE 31:

Liabilities for Leave Encashment is NIL as on 31.03.2025.

NOTE 32: DISCLOSURES IN RESPECT OF OPERATING LEASES ARE GIVEN AS FOLLOWS:

The company has taken premises on Operating cancellable Lease for period being 12 month commencing from 01-04-2024 to
31-03-2025. Lease payments under an operating lease should be recognised as an expenses on a straight line basic over the lease
term.Lease payment of Rs. 96.01 Lakhs has been recognised as an expenses in the Statement of Profit and Loss.

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes in some
of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the
end of the reporting year) has been applied when calculating the provision for defined benefit plan recognised in the Balance Sheet.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous years.

Risk exposure:

The defined benefit plan is exposed to a number of risks, the most significant of which are detailed below:

Change in discount rates: A decrease is discount yield will increase plan liabilities, Mortality table: The gratuity plan obligations
are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in plan liabilities,Future
salary growth: Salary growth rate impact plan liabilities.

NOTE 33: SEGMENT REPORTING:

The Company is engaged in the business of Fashion apparels Business. Its business are located and operated within India, As the
Company''s business activity primarily falls within a single business and geographical segment, there are no additional disclosures
to be provided in terms of “Accounting Standards- 17” on “Operating Segment” issued by the “Institute of Chartered accountants
of India”.

Note: Reasons (for variance more than 25%)

1. Debt-Equity Ratio: The debt-equity ratio improved due to equity infusion from the IPO during the year.

2. Debt Service Coverage Ratio: The debt coverage ratio improved due to increased revenue and EBITDA during the year.

3. Return on equity: The return on equity declined due to an increase in shareholders'' funds, despite higher revenue and net profit.

4. Inventory Turnover Ratio: The inventory turnover ratio improved due to better sales velocity and efficient inventory management.

5. Trade payables turnover ratio: The trade payable turnover ratio improved due to faster payments to suppliers and better
working capital management.

NOTE: 36 ADDITIONAL DISCLOSURE

i. The Company does not own or has its name any benami Property ,No proceeding has been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

ii. The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.

iii. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

iv. There are no transaction which involved undisclosed income during the year in the tax assessments under the Income Tax Act,
1961.

v. There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise,

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”)
by or on behalf of the Company

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vi. There are no funds which have been received by the Company from any persons or entities, including foreign entities (“Funding
Parties”), 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 (“Ultimate Beneficiaries”)
by or on behalf of the Funding Party

b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

vii. The Company (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) has no CICs as part
of the Company.

viii. The Company''s immovable property title deeds are held only in the name of the Company, Currently no immovable property
held by company

ix. No loans or advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined
under Companies Act, 2013,) either severally or jointly with any other person, (a) that repayable on demand or (b) without
specifying any terms or period of repayment.

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

xi. The Company has complied with the number of layers prescribed under Companies Act, 2013.

xii. Corporate social Responsibility (CSR) U/s 135 of Company act is not applicable on the company.

xiii. Previous year figures have been regrouped and reclassified where necessary for the purpose of comparison.

xiv. As per Ministry of Corporate Affairs Notification date February 16, 2015. Companies whose securities are listed on SME
Platform as referred to in Chapter XB of the SEBI (Issue of Capital and Disclosure Requirements Regulations 2009 are
exempted from the compulsory requirement of adoption of Ind AS.

As per our report of even date For and on behalf of the Board of Directors

for NGMKS & Associates Purple United Sales Limited

Firm registration number: 024492N
Chartered Accountants

Nitin Goyal Bhawna Seth Jatinder Dev Seth

Partner Director Director

Membership No.: 517698 DIN: 07385656 DIN: 06944942

Place: Delhi Place: Delhi Place: Delhi

Date: May 24, 2025 Date: May 24, 2025 Date: May 24, 2025

Naresh Kumar Ayati Gupta

Chief Financial Officer Company Secretary

Place: Delhi M. No.: A63811

Date: May 24, 2025 Place: Delhi

Date: May 24, 2025