Notes to Accounts of Electronics Mart India Ltd.

Mar 31, 2025

(n) Provisions and contingencies

Provisions

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past event i.e., 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. If the effect of the time value
of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time
is recognised as a finance cost.

Contingencies

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 recognised
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 recognised because it cannot
be measured reliably. The Company does not recognise
a contingent liability but discloses its existence in the
financial statements unless the probability of outflow of
resources is remote.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date.

(o) Revenue recognition

Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when
the payment is being made. Revenue is recognised to the
extent that it is probable that the economic benefits will
flow to the Company, taking into account contractually
defined terms of payment and excluding taxes or duties
collected on behalf of the government. The Company
has concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the
revenue arrangements as it has pricing latitude and is also
exposed to inventory and credit risks.

Revenue is recognised on satisfaction of performance
obligation upon transfer of control of promised
products or services to customers in an amount that
reflects the consideration the Company expects to
receive in exchange for those products or services.

Given the nature of business, the period between
the transfer of goods and payment by the customer

is generally immediate and is less than one year for
wholesale sales, accordingly management has determined
that there is no adjustments needed to the transaction
prices for the time value of money.

The Company satisfies a performance obligation and
recognises revenue over time, if one of the following
criteria is met:

i. the customer simultaneously receives and
consumes the benefits provided by the Company’s
performance as the Company performs; or

ii. the Company’s performance creates or enhances
an asset that the customer controls as the asset is
created or enhanced; or

iii. the Company’s performance does not create an
asset with an alternative use to the Company and
an entity has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above
conditions are not met, revenue is recognised at the
point in time at which the performance obligation is
satisfied.

Further, at the time of revenue recognition, the
entity also determines whether there are any material
unsatisfied performance obligations and determines the
portion of the aggregate consideration, if any, that needs
to be allocated and deferred.

Specifically, the following basis is adopted for various
sources of income:

Sale of goods

Revenue from sale of goods comprises the sale of
consumer electronics and durables and is recognised at a
point in time, on satisfaction of performance obligation
upon transfer of control of promised products which
generally coincides with delivery. Amounts disclosed as
revenue are net of returns, trade allowances, rebates and
exclusive of goods and services tax.

Commission and incentives

Revenue in relation to commission and incentives are
recognised when the right to receive and performance
of agreed contractual task has been completed in
accordance with the terms of agreements entered and
are linked to sale of goods.

(p) Retirement and other employee benefits

Provident fund and employee state insurance fund are
defined contribution schemes and is charged to the
Statement of Profit and Loss of the period when the

contributions to the respective funds are due. There are
no other obligations other than the contribution payable
to the respective authorities.

Gratuity is a defined benefit obligation and is provided
for on the basis of an actuarial valuation as per the
projected unit credit method made at the end of period.

Remeasurements, comprising of actuarial gains and
losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit
liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit
liability), are recognised immediately in the balance
sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to statement of
profit and loss in subsequent periods.

(q) Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the
underlying assets.

i. Right-of-use assets:

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The
cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before
the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a
Straight-Line Method basis over the balance lease
term.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section (i) Impairment of non-financial assets.

ii. Lease liabilities:

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made over
the lease term. The lease payments include fixed
payments (including insubstance fixed payments)
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and
amounts expected to be paid under residual value
guarantees. The lease payments also include the
exercise price of a purchase option reasonably
certain to be exercised by the Company and
payments of penalties for terminating the lease, if
the lease term reflects the Company exercising the
option to terminate. Variable lease payments that
do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of
an option to purchase the underlying asset.

iii. Short-term leases and leases of low-value
assets:

The Company applies the short-term lease
recognition exemption to its short-term leases i.e.,
those leases that have a lease term of 12 months
or less from the commencement date and do not
contain a purchase option. It also applies the lease
of low-value assets recognition exemption to
leases that are considered to be low value. Lease
payments on short-term leases and leases of
low-value assets are recognised as expense on a
Straight-Line Method basis over the lease term.

(r) Cash flow statement

Cash flows are reported using the indirect method,

whereby profit before tax is adjusted for the effects

of transactions of a non-cash nature, any deferrals or

accruals of past or future operating cash receipts or
payment and items of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.

(s) Segment reporting

The management has assessed the identification of
reportable segments in accordance with the requirements
of Ind AS 108 ‘Operating Segment¹ and believes that
the Company has only one reportable segment namely
“retailing and wholesale of electronic household items
and accessories through its stores and online platforms”.
Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief
Executive Officer, and the Managing Director, who
together constitute as Chief Operating Decision Maker
(‘CODM’).

(t) Dividends

Annual dividend distribution to the shareholders is
recognised as a liability in the period in which the
dividend is approved by the shareholders. Any interim
dividend paid is recognised on approval by Board of
Directors.

(u) Earnings per equity share

Basic earnings per equity share are calculated by
dividing the profit for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per
equity share, the profit for the period attributable to
equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

(A) MATERIAL ACCOUNTING JUDGMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of these standalone financial statements
requires the management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainties about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods. The key
assumptions concerning the future and other key sources
of estimation uncertainties at the reporting date, that

have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within
the next financial year, are described below:

Judgements

In the process of applying the Company’s accounting
policies, management has made the following judgments,
which have the most significant effect on the amounts
recognised in the standalone financial statements.

Leases

(1) Lease term:

Ind AS 116 require lessees to determine the
lease term as the non-cancellable period of lease
adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
certain. The Company makes an assessment on
the expected lease term on lease-by-lease basis
and thereby assesses whether it is reasonably
certain that any options to extend or terminate the
contract will be exercised. In evaluating the lease
term, the Company considers factors such as any
significant leasehold improvements undertaken
over the lease term, costs relating to termination
of the underlying assets and the availability of
suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term
reflects the current economic circumstances.
After considering current and future economic
conditions, the Company has concluded that no
change are required to lease period relating to the
existing lease contracts.

(2) Discount rate:

The Company cannot readily determine the
interest rate implicit in the lease, therefore it uses
its incremental borrowing rate (IBR) to measure
lease liabilities. The IBR is the rate of interest that
the Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what
the Company ‘would have to pay¹ which requires
elimination when no observable rates are available
or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company
estimates the IBR using observable inputs such as
comparable interest rates for similar instruments
and availing a quote from lenders, if required.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and estimates
on parameters available when the standalone financial
statements were prepared. Existing circumstances and
assumptions about future developments, however, may
change due to market changes or circumstances arising
that are beyond the control of the Company. Such
changes are reflected in the assumptions when they
occur.

Current income taxes

Material judgments are involved in determining the
provision for income taxes including judgment on
whether tax positions are probable of being sustained in
tax assessments. A tax assessment can involve complex
issues, which can only be resolved over extended time
periods. The recognition of taxes that are subject to
certain legal or economic limits or uncertainties is
assessed individually by management based on the
specific facts and circumstances.

Allowance for slow moving, damaged and obsolete
inventory

An allowance for inventory to write down to the lower
of cost or net realisable value is made by management
based on the estimates of the selling price and direct cost
to sell the slow moving/damaged inventory. The write
down is included in the operating results.

Life time expected credit loss on trade and other
receivables

Trade receivables do not carry any interest and are
stated at their transaction value as reduced by life
time expected credit losses (“LTECL”). As a practical
expedient, the Company uses a provision matrix to
determine impairment loss allowance on portfolio of
its trade receivables. The provision matrix is based on
its historically observed default rates over the expected
life of the trade receivables and is adjusted for forward¬
looking estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analyzed. ECL
impairment loss allowance (or reversal) for the period
is recognised as income/expense in the statement of
profit and loss (P&L). This amount is reflected under
the head other expenses/other income in the P&L. ECL
is presented as an allowance, i.e., as an integral part of

the measurement of those assets in the balance sheet.
The allowance reduces the net carrying amount. Until
the asset meets write-off criteria, the Company does not
reduce impairment allowance from the gross carrying
amount.

Impairment of non-financial assets

The Company assesses at each reporting date whether
there is an indication that an asset may be impaired. If
any indication exists, the Company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or Cash Generating Units (CGU’s)
fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent
of those from other assets or a Company of assets.
Where the carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transaction are taken into account, if
no such transactions can be identified, an appropriate
valuation model is used.

Impairment of financial assets

The impairment provisions for financial assets are based
on assumptions about risk of default and expected cash
loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on Company’s past history, existing
market conditions as well as forward looking estimates
at the end of each reporting period.

Employee benefits plan

The cost of defined benefit gratuity plan as well as the
present value of the gratuity obligation are determined
using actuarial valuations. The actuarial valuation
involves making various assumptions. These include
the determination of the discount rates, expected rates
of return of assets, future salary increase and mortality
rates. Due to the complexity of the valuation, the
underlying assumptions, defined benefit obligations are
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

Depreciation on property, plant and equipment:

Depreciation on property, plant and equipment is
calculated on a Straight-Line Method basis based on the

useful lives estimated by the management. Management
has reviewed the useful lives and residual values and
assessed that no changes are necessary from the
previously estimated useful lives and residual values of
the property, plant and equipment.

Incentive Income

Accrual and measurement of Incentive Income involves
management judgements and significant estimates in
relation to forecast of expected volume of purchases
and sales along with evaluation of expected compliances
with various terms and conditions of eligible schemes
and assessment of reasonable certainty of the scheme
targets being met and incentives being realised from the
vendors. Accordingly, changes to these estimates would
have a considerable impact on the incentive income
accruals and realisability.

3. (B) NEW AND AMENDED STANDARDS

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. Management anticipates that
all relevant pronouncements will be adopted for the first
period beginning on or after the effective date of the
pronouncement given below:

a) Ind AS 116- Leases

The amendments require an entity to recognise
lease liability including variable lease payments
which are not linked to index or a rate in a way
it does not result into gain on Right of Use
asset it retains. The Company has evaluated the
amendment and concluded that there is no impact
on its financial statements.

Nature and purpose of reserves

(a) Retained earnings - Surplus in Statement of Profit and Loss

Surplus in Statement of Profit and Loss represents the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions to shareholders.

(b) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.

(c) Other Comprehensive Income

The reserve represents the remeasurement gains arising from the actuarial valuation of the defined benefit obligations of the Company.
The remeasurement gains are recognised in other comprehensive income and accumulated under this reserve within equity. The amounts
recognised under this reserve are not reclassified to Statement of Profit and Loss.

30 FAIR VALUE MEASUREMENTS

(i) All the financial assets and financial liabilitites of Company are carried at amortised cost, except for Investments in subsidiaries which
are carried at cost.

(ii) The management assessed that cash and bank balances, trade receivables, trade payables and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.

(iii) In respect of fixed rate financial Liabilities, the management has assessed the carrying value of these liabilities approximates to the
fair value mainly since the same are short term borrowings which are repayable on demand. Further, disclosure fair value of Lease
liabilities are not presented in line with the requirements of Para 29(d) of IND AS 107. In respect of the balance of non-current
financial assets and liabilities in the nature of loans and borrowings, the management has assessed the carrying value of these assets
and liabilities approximates to the fair value mainly due to the interest rates are at the market rate or linked to market rate, as the case
maybe.

31 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s
primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s
risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and
processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors is responsible
for overseeing the Company’s risk assessment and management policies and processes.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk for the Company comprises primarily of interest risk. Financial instruments affected by market risk include loans
and borrowings. The sensitivity analysis in the following sections relate to the position as at 31^st March 2025.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analysis:

(1) The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31^st March 2025.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company’s variable rate borrowing is subject to interest rate risk. Below is the details of exposure to variable rate

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments when a counterparty defaults on its obligations.
The Company’s exposure to credit risk arises primarily from loans extended, security deposits, balances with bankers and trade and
other receivables. The Company’s objective is to seek continual revenue growth while minimising losses incurred due to increased
credit risk exposure. The credit risk has always been managed by the Company through credit approvals, establishing credit limits, and
continuously monitoring the credit worthiness of the customers to whom the Company grants credit terms in the normal course of
business. Outstanding customer receivables are regularly monitored.

Exposure to credit risk:

At the end of the reporting year, the Company’s maximum exposure to credit risk is represented by the carrying amount of each
class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to
credit risk.

Credit risk concentration profile:

At the end of the reporting year, there were no significant concentrations of credit risk. The maximum exposures to credit risk in
relation to each class of recognised financial assets is represented by the carrying amount of each financial assets as indicated in the
balance sheet.

Financial assets that are neither past due nor impaired:

None of the Company’s cash and bank balances, loans, security deposits were past due or impaired as at 31^st March 2025. Trade and
other receivables including’s loans that are neither past due nor impaired are from various individual customers and reputed financial
institutions.

Financial assets that are either past due or impaired:

The Company doesn’t have any significant trade receivables or other financial assets which are either past due or impaired. The
Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management
also evaluates the factors that may influence the credit risk of its customer base, including the default risk. The management has
established a credit policy, procedures and controls relating to customer credit risk management under which each new customer is
analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The
Company’s receivables turnover is quick and historically, there was no significant default on account of trade and other receivables.
An impairment analysis is performed at each reporting date on an individual basis. In addition, a large number of minor receivables
are grouped into homogenous groups and assessed for impairment collectively. The Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into
account historical credit loss experience and is adjusted for forward looking information.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s finance team in accordance with the Company’s policy. Investments
of surplus funds are made only with approved and reputed banks and within credit limits assigned to each bank. The amounts
invested and details of relevant banks are reviewed by the Company’s Board of directors on annual basis.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under
both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash
and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice
and limits set by the management.

(d) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments
affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the
maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

M CAPITAL MANAGEMENT

Capital includes equity and all other reserves attributable to share holders. The primary objective of the capital management is to ensure
that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise share holders
value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business
requirements.

The Company monitors capital using a gearing ratio, which is net debt divided by equity plus net debt.

The Company includes within net debt, interest bearing loans and borrowings, less cash and bank balances.

(i) The Company has received an order from the National Anti-Profiteering Authority of the Central Goods and Services Tax Act, 2017
demanding an amount of ''3.43 alleging certain non-compliances with the anti-profiteering regulations of the Goods and Services Act,
2017 and '' 8.94 on account of disputes with customers in various forums. The management has filed necessary appeals in this regard with
the appropriate appellate authorities which is pending for adjudication as at the date of the standalone financial statements. However, on
the basis of its internal assessment of the nature of the allegations, the facts of the case and an independent advise received in this regard,
management is confident of resolving this matter in favour of the Company.

(ii) The Company has received an order from Director General of GST, Hyderabad demanding an amount of '' 110.16 alleging that the
Company has failed to levy GST on receipt of credit notes of certain types issued by its vendors. The management is in process of filing
necessary appeals in this regard with the appropriate appellate authorities. However, on the basis of its internal assessment of the nature of
the allegations, the facts of the case and an independent advise received in this regard, management is confident of resolving this matter in
favour of the Company.

40 (i) No funds 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, that the Intermediary shall lend or invest in party identified by or on behalf of the
Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

41 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting
software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each
and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made
and ensuring that the audit trail cannot be disabled.

The Company has used certain accounting software for recording of transactions and billing records.

a) The Company used an accounting software for recording transactions which has audit trail (edit log) facility at the application level
for the software and did not have a feature of recording audit trail (edit log) facility at the database level.

b) Audit trail (edit log) is enabled at the application level for the software used for maintenance of billing records by Company and at
the database level, audit trail (edit log) is enabled from 07^th August 2024 and operated throughout the year.

43 ADDITIONAL DISCLOSURES

(i) No proceeding have been initiated on or is pending against the Company for holding benami property under the Benami Transactions
Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder

(ii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(iii) No charges or satisfaction yet to be registered with ROC beyond the statutory period.

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

(v) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Act.

(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

This is the summary of material accounting policies and other explanatory information referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Directors of

Chartered Accountants Electronics Mart India Limited

Firm’s Registration No.: 001076N/N500013 CIN: L52605TG2018PLC126593

Sanjay Kumar Jain Pavan Kumar Bajaj Karan Bajaj

Partner Managing Director Wholetime Director & CEO

Membership No.: 207660 DIN: 07899635 DIN: 07899639

Premchand Devarakonda Rajiv Kumar

Chief Financial Officer Company Secretary

M.No.: A42082

Place: Hyderabad Place: Hyderabad

Date: 20^th May 2025 Date: 20^th May 2025

---

Mar 31, 2024

(b) Considering the nature of business of the entity i.e., retailing of electronics, with only a small portion being wholesale sales, majority of the amounts are collected at the time of sales or through financing model and accordingly, the Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivables is not material hence no additional disclosures are presented.

(a) (i) Equity shares issued during the year

During the financial year ended 31^st March 2023, pursuant to the initial public offering of equity shares, the Company received a sum of '' 4,646.02 (net of issue expenses) on issuance of 84,745,762 equity shares of '' 10 each at a premium of '' 49 each. The Company’s equity shares are listed and traded on both the National Stock Exchange of India Limited and BSE Limited.

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Details of shares issued without payment being received in cash:

During the year ended 31^st March 2019, the Company had issued 300,003,000 equity shares of '' 10 each fully paid up to the partners of the erstwhile partnership firm M/s. Bajaj Electronics pursuant to conversion of the said firm into the Company.

(e) Shareholding of promoters

For the purpose of reporting of the shareholding of promoters, Mr Pavan Kumar Bajaj and Mr Karan Bajaj has been considered as promoters as defined under the Provisions of the Companies Act, 2013. There was change in the promoter holding during the year ended 31^st March 2023 owing to fresh issue of equity shares via IPO as detailed in note 14(a)(i) above. Further, refer table below for details of changes in promoters share holding during the year ended 31^st March 2024.

Nature and purpose of reserves

(a) Retained earnings - Surplus in Statement of Profit and Loss

Surplus in Statement of Profit and Loss represents the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions to shareholders.

(b) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(c) Other Comprehensive Income

The reserve represents the remeasurement gains arising from the actuarial valuation of the defined benefit obligations of the Company. The remeasurement gains are recognised in other comprehensive income and accumulated under this reserve within equity. The amounts recognised under this reserve are not reclassified to Statement of Profit and Loss.

# Working capital loans from HDFC carries an interest rate of MCLR* 0.75% p.a.(31^st March 2023: MCLR* 0.75% p.a), AXIS Bank carries an interest rate of MCLR* 0.25% p.a.(31^st March 2023: Nil) and ICICI Bank carries an interest rate of MCLR* 0.60% p.a.(31^st March 2023: Nil). Unsecured Loans from IDFC carries a interest rate of 9.50% (31^st March 2023: 9.50%) and BFL carries an interest rate of 12.75% (31^st March 2023: 12.75%).

*Marginal cost of funds based lending rate.

^ Working capital loans from BFL carries an interest rate of Nil. (31^st March 2023: 9.75% p.a)

Note: The aforementioned working capital loans from ICICI Bank Limited and Axis Bank Limited are personally guaranteed by Pavan Kumar Bajaj and Karan Bajaj. Further, the working capital facility availed from HDFC bank is also secured by way of pledge of certain personal properties of Pavan Kumar Bajaj, Karan Bajaj, Renu Bajaj and Astha Bajaj.

(a) Defined contribution plan

The Company contributed '' 38.43 (31^st March 2023: '' 36.06) to provident fund and '' 7.66 (31^st March 2023: '' 7.14) towards employee state insurance fund during the year ended 31^st March 2024.

(b) Defined benefit plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The level of benefits provided depends on the member’s length of service and salary at retirement age.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set-off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

30 FAIR VALUE MEASUREMENTS

(i) All the financial assets and financial liabilitites of Company are carried at amortised cost, except for Investments in subsidiaries which are carried at cost.

(ii) The management assessed that cash and bank balances, trade receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(iii) In respect of fixed rate financial Liabilities, the management has assessed the carrying value of these liabilities approximates to the fair value mainly since the same are short term borrowings which are repayable on demand. Further, disclosure fair value of Lease liabilities are not presented in line with the requirements of Para 29(d) of IND AS 107. In respect of the balance of non-current financial assets and liabilities in the nature of loans and borrowings, the management has assessed the carrying value of these assets and liabilities approximates to the fair value mainly due to the interest rates are at the market rate or linked to market rate, as the case maybe.

31 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors is responsible for overseeing the Company’s risk assessment and management policies and processes.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises primarily of interest risk. Financial instruments affected by market risk include loans and borrowings. The sensitivity analysis in the following sections relate to the position as at 31^st March 2024.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analysis:

(1) The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31^st March 2024.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s variable rate borrowing is subject to interest rate risk. Below is the details of exposure to variable rate instruments:

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments when a counterparty defaults on its obligations. The Company’s exposure to credit risk arises primarily from loans extended, security deposits, balances with bankers and trade and other receivables. The Company’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The credit risk has always been managed by the Company through credit approvals, establishing credit limits, and continuously monitoring the credit worthiness of the customers to whom the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored.

Exposure to credit risk:

At the end of the reporting year, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.

Credit risk concentration profile:

At the end of the reporting year, there were no significant concentrations of credit risk. The maximum exposures to credit risk in relation to each class of recognised financial assets is represented by the carrying amount of each financial assets as indicated in the balance sheet.

Financial assets that are neither past due nor impaired:

None of the Company’s cash and bank balances, loans, security deposits were past due or impaired as at 31^st March 2024. Trade and other receivables including’s loans that are neither past due nor impaired are from various individual customers and reputed financial institutions.

Financial assets that are either past due or impaired:

The Company doesn’t have any significant trade receivables or other financial assets which are either past due or impaired. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also evaluates the factors that may influence the credit risk of its customer base, including the default risk. The management has established a credit policy, procedures and controls relating to customer credit risk management under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s receivables turnover is quick and historically, there was no significant default on account of trade and other receivables. An impairment analysis is performed at each reporting date on an individual basis. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s finance team in accordance with the Company’s policy. Investments of surplus funds are made only with approved and reputed banks and within credit limits assigned to each bank. The amounts invested and details of relevant banks are reviewed by the Company’s Board of directors on annual basis.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management.

(d) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

32 CAPITAL MANAGEMENT

Capital includes equity and all other reserves attributable to share holders. The primary objective of the capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise share holders value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business requirements.

The Company monitors capital using a gearing ratio, which is net debt divided by equity plus net debt.

The Company includes within net debt, interest bearing loans and borrowings, less cash and bank balances.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing for the year ended 31^st March 2024.

There have been no changes made in the objectives, policies or processes for managing capital during the year ended 31^st March 2024.

33 SEGMENT REPORTING

In accordance with Indian Accounting Standard (Ind AS) 108 on “Operating Segments”, segment information has been disclosed in the consolidated financial statements of the Company, and therefore no separate disclosure on segment information is given in these financial statements.

34 CONTINGENT LIABILITIES
	As at 31st March 2024	As at 31st March 2023
(i) Claims against the Company not acknowledged as debts	122.72	10.84

Note:

(i) The Company has received an order from the National Anti-Profiteering Authority of the Central Goods and Services Tax Act, 2017 demanding an amount of '' 3.43 alleging certain non-compliances with the anti-profiteering regulations of the Goods and Services Act, 2017. The management has filed necessary appeals in this regard with the appropriate appellate authorities which is pending for adjudication as at the date of the standalone financial statements. However, on the basis of its internal assessment of the nature of the allegations, the facts of the case and an independent advise received in this regard, management is confident of resolving this matter in favour of the Company.

(ii) The Company has received an order from Director General of GST, Hyderabad demanding an amount of '' 107.26 alleging that the Company has failed to levy GST on receipt of credit notes of certain types issued by its vendors. The management is in process of filing necessary appeals in this regard with the appropriate appellate authorities. However, on the basis of its internal assessment of the nature of the allegations, the facts of the case and an independent advise received in this regard, management is confident of resolving this matter in favour of the Company.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was '' 16.21 (31^st March 2023: '' 7.73) for the year ended 31^st March 2024.

The future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities are -

1) Leases not yet commenced to which the Company is committed amounts to 31^st March 2024: '' 459.45 (31^st March 2023: '' 71.78).

2) Variable lease payments based on sales amounts to 31^st March 2024: '' 1.90 (31^st March 2023: '' 3.62).

@ Excludes interest and depreciation on right-of-use assets and related liabilities.

*Cost of goods sold includes purchases of stock-in-trade and changes in inventories of stock-in-trade.

# capital employed = Total assets - Current liabilities.

Note: Reasons for change in % by more than 25% is as under

(i) Principal reason for change in Debt service coverage ratio is attributed to increase in the profit during the year ended 31^st March 2024.

(ii) Principal reason for change in Net profit ratio is attributed to increase in the margins during the year ended 31^st March 2024.

40 (i) No funds 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, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

41 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used certain accounting software for recording accounting transactions, billing transactions and inventory transactions. The software used for recording acounting transactions did not have a feature of recording audit trail (edit log) facility.

The Company uses another software for maintaining billing records. Audit trail (edit log) is enabled at the application level except that the audit trail (edit log) for changes made to the mode of receipt (tender changes) for the period 01^st March 2024 to 31^st March 2024 is not available. The Company’s users have access to post transactions only at the application level. The Company has not enabled the feature of recording audit trail (edit log) feature at the database level to log any direct data changes.

Further, for the software used for maintaining of inventory transactions and details of wholesale revenue, the feature of recording audit trail (edit log) at the database level was not enabled for the said software to log any direct data changes. Audit trail (edit log) is enabled at the application level, and the Company’s users have access to post transactions only at the application level.

42 ADDITIONAL DISCLOSURES

(i) No proceeding have been initiated on or is pending against the Company for holding benami property under the Benami Transactions Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder

(ii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(iii) No charges or satisfaction yet to be registered with ROC beyond the statutory period.

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

(v) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Act.

(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

This is the summary of significant accounting policies and other explanatory information referred to in our report of even date.

---

Mar 31, 2023

(a) (i) Equity shares issued during the year

The Board of Directors of the Company had raised funds via fresh issue of equity shares through Initial Public Offering (IPO) of 84,745,762 equity Shares of face value of '' 10 each at an issue price of '' 59 per equity share. The Company’s equity shares were listed on the National Stock Exchange (NSE) and on the BSE Limited (BSE) on 17th October 2022. Consequently, an amount of '' 847.46 has been accounted under equity share capital, followed by securities premium to the tune of '' 3,798.56, net of share issue expenses amounting to '' 353.98.

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Details of shares issued without payment being received in cash:

During the year ended 31st March 2019, the Company had issued 300,003,000 equity shares of '' 10 each fully paid up to the partners of the erstwhile partnership firm M/s. Bajaj Electronics pursuant to conversion of the said firm into the Company.

(e) Shareholding of promoters

For the purpose of reporting of the shareholding of promoters, Mr Pavan Kumar Bajaj and Mr Karan Bajaj has been considered as promoters as defined under the Provisions of the Companies Act, 2013. There was no change in the promoter holding during the year ended 31st March 2022. Further, refer table below for details of changes in promoters share holding during the year ended 31st March 2023 owing to fresh issue of equity shares via IPO as detailed in note 14(a)(i) above.

(f) In terms of the requirements of Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), the listed entities (except entities listed on Innovators Growth Platform without making a public issue) are required to comply with the minimum public shareholding (MPS) of 25% as specified in Rule 19(2) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957 (SCRR) in the manner as specified by the Securities and Exchange Board of India (SEBI) from time to time and within a period of 3 years from being listed. In accordance with the said requirements, management is evaluating the options available as per the SEBI guidelines and will ensure compliance of the same within the prescribed timelines.

Nature and purpose of reserves

(a) Surplus in Statement of Profit and Loss

Surplus in Statement of Profit and Loss represents the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions to shareholders.

(b) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(c) Actuarial gain on employment benefits

The reserve represents the remeasurement gains arising from the actuarial valuation of the defined benefit obligations of the Company. The remeasurement gains are recognised in other comprehensive income and accumulated under this reserve within equity. The amounts recognised under this reserve are not reclassified to Statement of Profit and Loss.

Note: The aforementioned working capital loans from banks and financial institution are personally guaranteed by Pavan Kumar Bajaj, Karan Bajaj and Renu Bajaj. Further, the working capital facility availed from HDFC bank is also secured by way of pledge of certain personal properties of Pavan Kumar Bajaj, Karan Bajaj and Renu Bajaj.

(iv) Terms and conditions of unsecured loans

(a) The Company has availed unsecured loans amounting to '' 520.06 (31st March 2022: '' 270.87) from IDFC First Bank Limited for meeting the working capital requirements carrying an interest rate of 9.50% p.a.(31st March 2022: 9.50% p.a). These amounts are repayable on demand.

(b) The Company has availed unsecured loans amounting to '' 607.92 (31st March 2022: '' 1,366.09) from Bajaj Finance Limited for meeting the working capital requirements carrying an interest rate of 12.75% p.a. (31st March 2022: 12.75% p.a.) These amounts are repayable on demand.

(a) Defined contribution plan

The Company contributed '' 36.06 (31st March 2022: '' 30.83) to provident fund and '' 7.14 (31st March 2022: '' 6.60) towards employee state insurance fund during the year ended 31st March 2023.

(b) Defined benefit plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The level of benefits provided depends on the member⁵ s length of service and salary at retirement age.

(ii) The management assessed that cash and bank balances, trade receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(iii) In respect of fixed rate financial Liabilities, the management has assessed the carrying value of these liabilities approximates to the fair value mainly since the same are short term borrowings which are repayable on demand. Further, disclosure fair value of Lease liabilities are not presented in line with the requirements of Para 29(d) of IND AS 107. In respect of the balance of non-current financial assets and liabilities in the nature of loans and borrowings, the management has assessed the carrying value of these assets and liabilities approximates to the fair value mainly due to the interest rates are at the market rate or linked to market rate, as the case maybe.

31 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors is responsible for overseeing the Company’s risk assessment and management policies and processes.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises primarily of interest risk. Financial instruments affected by market risk include loans and borrowings. The sensitivity analysis in the following sections relate to the position as at 31 March 2023.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analysis:

(1) The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2023.

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments when a counterparty defaults on its obligations. The Company’s exposure to credit risk arises primarily from loans extended, security deposits, balances with bankers and trade and other receivables. The Company’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The credit risk has always been managed by the Company through credit approvals, establishing credit limits, and continuously monitoring the credit worthiness of the customers to whom the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored.

Exposure to credit risk:

At the end of the reporting year, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.

Credit risk concentration profile:

At the end of the reporting year, there were no significant concentrations of credit risk. The maximum exposures to credit risk in relation to each class of recognised financial assets is represented by the carrying amount of each financial assets as indicated in the balance sheet. Financial assets that are neither past due nor impaired:

None of the Company’s cash and bank balances, loans, security deposits were past due or impaired as at 31st March 2023. Trade and other receivables including’s loans that are neither past due nor impaired are from various individual customers and reputed financial institutions. Financial assets that are either past due or impaired:

The Company doesn’t have any significant trade receivables or other financial assets which are either past due or impaired. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also evaluates the factors that may influence the credit risk of its customer base, including the default risk. The management has established a credit policy, procedures and controls relating to customer credit risk management under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s receivables turnover is quick and historically, there was no significant default on account of trade and other receivables. An impairment analysis is performed at each reporting date on an individual basis. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s finance team in accordance with the Company’s policy. Investments of surplus funds are made only with approved and reputed banks and within credit limits assigned to each bank. The amounts invested and details of relevant banks are reviewed by the Company’s Board of directors on annual basis.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management.

(d) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry. In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

32 CAPITAL MANAGEMENT

Capital includes equity and all other reserves attributable to share holders. The primary objective of the capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise share holders value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business requirements. The Company monitors capital using a gearing ratio, which is net debt divided by equity plus net debt.

The Company includes within net debt, interest bearing loans and borrowings, less cash and bank balances.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing for the year ended 31st March 2023.

There have been no changes made in the objectives, policies or processes for managing capital during the year ended 31st March 2023.

33 SEGMENT REPORTING

In accordance with Indian Accounting Standard (Ind AS) 108 on “Operating Segments”, segment information has been disclosed in the consolidated financial statements of the Company, and therefore no separate disclosure on segment information is given in these financial statements..

Note: The Company has received an order from the National Anti-Profiteering Authority of the Central Goods and Services Tax Act, 2017 demanding an amount of '' 3.43 alleging certain non-compliances with the anti-profiteering regulations of the Goods and Services Act, 2017. The management has filed necessary appeals in this regard with the appropriate appellate authorities which is pending for adjudication as at the date of the standalone financial statements. However, on the basis of its internal assessment of the nature of the allegations, the facts of the case and an independent advise received in this regard, management is confident of resolving this matter in favour of the Company.

(d) (i) All the secured non-current borrowings amounting to '' Nil (31st March 2022: '' 618.82) and current borrowings from HDFC Bank

Limited amounting to '' 3,889.84 (31st March 2022: '' 2,684.83), have been personally guaranteed by Pavan Kumar Bajaj, Karan Bajaj and Renu Bajaj.

(ii) The working capital facility from HDFC bank is also secured by way of pledge of certain personal properties of Pavan Kumar Bajaj, Karan Bajaj and Renu Bajaj.

(iii) All secured current borrowings from Bajaj Finance Limited amounting to '' 995.70 (31st March 2022: '' 995.80), have been personally guaranteed by Pavan Kumar Bajaj and Karan Bajaj.

(iv) All the secured non-current borrowings from ICICI bank, Axis bank and Bajaj finance Limited amounting to '' 1,257.40 (31st March 2022: '' Nil ), have been personally guaranteed by Pavan Kumar Bajaj and Karan Bajaj

(e) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. There have been no guarantees provided or received for any related party receivables or payables. The assessment of Impairment of receivables relating to amount owed by related parties is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

40 DISCLOSURES PURSUANT TO THE REQUIREMENT AS SPECIFIED UNDER PARAGRAPH 6(L)(IX)(A) AND (B) OF THE GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET OF SCHEDULE III TO THE ACT:

For the purpose of reporting under this clause, management has provided disclosures only with respect to information on trade receivables, inventories and net advances [advances to vendors less trade payable] furnished to the lenders. The details of disagreement between current assets as furnished to the lenders and as per books as disclosed below, mainly attributed to the use of estimated information prior to completion of all the book closure activities such as accrual of incentives, valuation of inventories, recording cut-off related adjustments etc. In order to avoid such differences, management has sought and obtained extention of due date by 7 days to provide relevant and accurate current assets details to the bankers with effect from the quarter ended 31 December 2021. Further, No differences were noted in the quarterly returns or statements of current assets filed by the Company with banks or financial institutions upon comparision with the books of accounts during the year ended 31 March 2023.

Note: The above details were also furnished to HDFC Bank Limited and Bajaj Finance Limited, for the quarters ended 30 June 2021 and

30 September 2021.

41 (i) No funds 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, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries..