Notes to Accounts of Kapston Services Ltd.

Mar 31, 2025

1.17 Provisions, contingent liabilities and contingent assets

a. Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

b. Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where there is a possible obligation ora present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is
made.

c. Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related
income are recognised in the period in which the change occurs.

1.18 Revenue Recognition

Revenue is measured at the fair value of consideration received or receivable. Amounts recognised as revenue are
net of returns, trade allowances, discounts, rebates, deductions by customers, service tax, value added tax, goods
and services tax and amounts collected on behalf of third parties.

At the inception of the new contractual arrangement with the customer, the Company identifies the performance
obligations inherent in the agreement. The terms of the contracts are such that the services to be rendered
represent a series of services that are substantially the same with the same pattern of the transfer to the customer.

Revenue is recognized when the control is transferred to the customer and when the Company has completed its
performance obligations under the contracts. Revenue is recognized in a manner that depicts the transfer of
goods and services to customers at an amount that reflects the consideration the Company expects to be
entitled to in exchange for those goods or services.

Revenue is recognized as follows:

(i) Revenue from services represents the amounts receivable for services rendered.

(ii) For non-contract-based business, revenue represents the value of goods delivered or services performed.

(iii) For contract-based business, revenue represents the sales value ot work carried out tor customers during
the period. Such revenues are recognized in the period in which the service is rendered.

(iv) Unbilled revenue (contract assets) net of expected deductions is recognised at the end of each period. Such
unbilled revenue is reversed in the subsequent period when actual invoice is raised.

(v) Unearned revenue (contract liabilities) represents revenue billed but for which services have not yet been
performed and is included under Advances from customers. The same is released to the statement of profit
and loss as and when the services are rendered.

a. Rendering of Services

In contracts involving the rendering of services, revenue is measured using the proportionate completion
method when no significant uncertainty exists regarding the amount of the consideration that will be derived
from rendering the service. When the contract outcome cannot be measured reliably, revenue is recognised only
to the extent that the expenses incurred are eligible to be recovered.

Estimates of revenue, costs or extent of progress towards completion are revised if circumstances change. Any
resulting increases or decreases in estimated revenue or costs are reflected in profit or loss in the period in which
the circumstances that give rise to the revision become known to the management.

Multiple-element arrangements

When a sales arrangement contains multiple elements, such as services, material and maintenance, revenue for
each element is determined based on each element''s fair value.

Revenue recognition for delivered elements is limited to the amount that is not contingent on the future delivery
of products or services, future performance obligations or subject to customer-specified return or refund
privileges.

The undiscounted cash flows from the arrangement are periodically estimated and compared with the
unamortized costs. If the unamortized costs exceed the undiscounted cash flow, a loss is recognized.

Interest income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income,
interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the
estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial
liability. When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and
similar options) but does not consider the expected credit losses. Interest income is included in other income in
the statement of profit and loss.

b. Other Income

(i) Miscellaneous Income

Miscellaneous Income includes Rounding off and other non operating income these are recognized as and
when accrued.

1.19 Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get
ready fortheir intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

1.20 Leases
Company as a lessee

The Company''s lease asset classes primarily consist of leases for buildings. For any new contracts entered into or
changed on or after April 1, 2019, the Company assesses whether a contract is, or contains a lease. A lease is
defined as ''a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a
period in exchange for consideration''. To apply this definition the Company assesses whether the contract meets
three key evaluations which are whether:

(i) the contract contains an identified asset, which is either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is made available to the Company

(ii) the Company has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract

(iii) The Company has the right to direct the use of the identified asset throughout the period of use. the
Company assesses whether it has the right to direct ''how and for what purpose'' the asset is used throughout
the period of use.

Measurement and recognition of leases as a lessee

At lease commencement date, the Company recognises a right-of-use asset (''ROU'') and a corresponding lease
liability on the balance sheet. The right-of-use asset is measured at cost, which comprises of the initial
measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to
dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease
commencement date (net of any incentives received).

The Company depreciates the right-of-use assets using the written down value method from the lease
commencement date to the earlier of the end of theuseful life of the right-of-use asset or the end of the lease
term. The Company also assesses the right-of-use asset for impairment when such indicators exist

Ind AS116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with an
option to extend or terminate the lease, if the use of such option is reasonably certain. The lease term in future
periods is reassessed to ensure that the lease term reflects the current economic circumstances

Extension and termination options are included in a number of leases of the Company. These are used to
maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority
of extension and termination options held are exercisable only by the Company and not by the respective lessor.

At the commencement date, the Company measures the lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the
Company''s incremental borrowing rate. Lease payments included in the measurement of the lease liability are
comprises of fixed payments (including in substance fixed), variable payments based on an index or rate,
amounts expected to be payable under a residual value guarantee and payments arising from options
reasonably certain to be exercised.

Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It
is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the rightof-use asset, or
profit and loss if the right-of-use asset is already reduced to zero.

The Company has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straightline basis over the lease term.

1.21 Tax Expenses

Tax expense consists of current and deferred tax.

a. Income Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting
date.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretations and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment.

b. Deferred Tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is not recognised for:

Temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss at the time of the transaction; and

Deferred tax assets are recognised for deductible temporary differences, the carry forwards of unused tax credits
and unused tax losses. Deferred tax assets are recognised to the extent that it is probable that future taxable
profits will be available against which they can be used. The existence of unused tax losses is strong evidence that
future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises
a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing
other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised.
Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/
reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be
realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

1.22 Earnings Per Share

The Company presents basic and diluted earnings per share ("EPS") data for its ordinary shares. Basic earnings
per share is computed by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and also the
weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares.

1.23 Provisions, contingent liabilities and contingent assets
Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows (representing the best
estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised under finance costs. Expected future operating losses are not provided
for. Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are
recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

Contingent liabilities

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows (representing the best
estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised under finance costs. Expected future operating losses are not provided
for. Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are
recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

Contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of
outflow of resources is remote.

Contingent assets has to be recognised in the financial statements in the period in which if it is virtually certain
that an inflow of economic benefits will arise. Contingent assets are assessed continually and no such benefits
were found for the current financial year.

1.24 Cash flow Statements

Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted forthe effects
of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from regular
revenue generating (operating activities), investing and financing activities of the Company are segregated.

1.25 Trade receivables

Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain
significant financing components, in which case they are recognised at fair value. The Company''s trade
receivables do not contain any significant financing component and hence are measured at the transaction price
measured under Ind AS 115 "Revenue from Contracts with Customers".

1.26 Determination of fair values

The Company''s accounting policies and disclosures require the determination of fair value, for certain financial
and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure
purposes based on the following methods. When applicable, further information about the assumptions made in
determining fair values is disclosed in the notes specific to that asset or liability. A fair value measurement of a
non-financial asset takes into account a market participant''s ability to generate economic benefits by using the
asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.

a. Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of non¬
monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based on
appraised market values and replacement cost.

b. Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired in a business
combination is based on the discounted estimated royalty payments that have been avoided as a result of
these brands, technology related intangibles, patents or trademarks being owned (the "relief of royalty
method"). The fair value of customer related, product related and other intangibles acquired in a business
combination has been determined using the multi-period excess earnings method after deduction of a fair
return on other assets that are part of creating the related cash flows.

c. Inventories

The fair value of inventories acquired in a business combination is determined based on its estimated selling
price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable
profit margin based on the effort required to complete and sell the inventories.

d. Derivatives

The fair value of foreign exchange forward contracts is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a risk¬
free interest rate (based on government bonds). The fair value of foreign currency option and swap
contracts and interest rate swap contracts is determined based on the appropriate valuation techniques,
considering the terms of the contract.

e. Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance
leases the market rate of interest is determined by reference to similar lease agreements. In respect of the
Company''s borrowings that have floating rates of interest, their fair value approximates carrying value.

Ind AS 1 - Presentation of Restated financial information

The amendments require companies to disclose their material accounting policies rather than their significant
accounting policies. Accounting policy information, together with other information, is material when it can
reasonably be expected to influence decisions of primary users of general purpose financial statements. The
Company does not expect this amendment to have any significant impact in its financial statement.

Ind AS 12-lncomeTaxes

The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on
initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not
expect this amendment to have any significant impact in its financial statements.

Ind AS8-Accounting Policies, Changes in Accounting Estimatesand Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The
definition of a change in accounting estimates has been replaced with a definition of accounting estimates.
Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject
to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in
Restated financial information to be measured in a way that involves measurement uncertainty. The company
does not expect this amendment to have any significant impact in its financial statements.

Recent pronouncements:

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. For the year ended March 31,2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

A) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to
the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to
concentrations of credit risk, principally consist of trade receivables, loans and advances and financial
instruments. The group strives to promptly identify and reduce concerns about collection due to a
deterioration in the financial conditions and others of its main counterparties by regularly monitoring their
situation based on their financial condition. None of the financial instruments of the Group result in material
concentrations of credit risks.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk was Rs 19,122.27 Lakhs and Rs. 15,333.16 Lakhs as at 31 March 2025 and 31 March 2024 respectively,
being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables,
margin money and other financial assets.

a. Trade Receivables

The Group''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the
customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to
which the group grants credit terms in the normal course of business.

The total Trade Receivable as on 31 March 2025 is Rs. 16,383.42 Lakhs and Rs.12,677.35 lakhs as on 31 March
2024.

None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31
March 2025.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the
impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default
occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity
as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective
interest rate.

Credit quality of financial assets and impairment loss

The ageing of trade receivables as of balance sheet date is given in Note No 10. The age analysis has been
considered from the due date.

B) Liquidity Risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with
financial liabilities. The Company consistently generates sufficient cash flows from operations and has access to
multiple sources of funding to meet its financial obligations and maintain adequate liquidity for use. The
Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of
bank overdrafts, bank loans, debentures, shareholder equity, and finance leases.

The below table summarises company''s long-term debt that will mature in less than one year based on the
carrying value of borrowings reflected in the financial statements.

The maturity analysis of lease liabilities is disclosed in Note 42. The following are the amounts recognized in the
statement of profit or loss:

The Company had total cash outflows for leases of Rs 211.16 Lakhs.

The Company has several lease contracts that include extension and termination options. These options are
negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the
Company''s business needs. Management exercises significant judgement in determining whether these
extension and termination options are reasonably certain to be exercised. The effective interest rate for lease
liabilities is 9.75%, with maturity between 2029-30.

47. Other statutory information:

a. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

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

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

i. 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

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

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Mar 31, 2024

Out of the above secured borrowings (a) Rs 2508.17 Lakhs (Previous year Rs 2407.14 Lakhs) were obtained from Axis Bank Limited (b) Rs 375.42 Lakhs ( Previous year Rs 921.37 Lakhs) were obtained from Bandhan Bank (c) Rs 2932.24 Lakhs (Previous year Rs 2352.57 Lakhs) obtained from HDFC bank Limited (d) Rs 1766.42 Lakhs (Previous year Rs 1997.03 lakhs) obtained from ICICI Bank Limited (e)Rs 1632.44 Lakhs obtained from Induslnd Bank Limited.

a) Primary security

i.The loan from all the lenders are ranked with pari passu, by primarily secured by hypothecation of all the current assets of the company including inventory and book debts less than 90 days.

b) Colletral security

For Axis Bank, Indus Ind and HDFC Bank Limited:

i.Existing fixed deposits with pari passu charge ii. Residential Plot Survey No 51 (Area 174241.6 sq ft) at Maheswaram Mandal , Nacharam Village , Near Bus stop , Telangana Pin -501218 owned by Kapston services Limited to Axis

For Bandhan Bank

i.Existing fixed deposits with pari passu charge For ICICI Bank Limited

i. Exclusive Collateral charge for ICICI Bank on Plot No 16 sy No 319,320,321 ,322 Gandipet, Puppalaguda, Myscape courtyard, Hyderabad, Telangana , India -500032 owned by Mr.Srikanth Kodali ( Managing director of Kapston services Limited).

c) Personal Guarantee''s

i. Mr Srikanth Kodali

ii. Mrs Kanti Kiran Doddapaneni

3 2. Earnings per Share

Basic EPS amounts are computed by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) attributable to equity holders by the weighted average number of equityshares outstanding during the period/year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

34. Related Party Transaction

In accordance with the provisions of Ind AS 24 “Related Party Disclosures” and the Companies Act, 2013, Company’s Directors, Key Managerial Personnel defined as per Sec 2(51) of the Companies Act 2013 are considered as related parties of the company.

35. Segment Reporting

The Company concluded that there is only one operating segment i.e., Facility Management & staffing services. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable.

Notes:

(i) The Code on Social Security, 2020 (''Code'') relating to employee benefits received Presidential assent in September 2020. However, effective date and the final rules/interpretation have not yet been notified/issued. The Company is in the process of assessing the impact of the Code and will recognize the impact, if any, based on its effective date.

(ii) The Company operates defined benefit plan ie., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

Gratuity and other Post employment benefits

In accordance with applicable laws, the Company has benefit plan which provides for gratuity payments (the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation.

38. Contingent Liabilities
	Particulars	For the Period Ended 31 March 2024		For the Period Ended 31 March 2023
	Claims against the Company/Disputed Liabilities not acknowledged as debts Bank Guarantee	532.89		117.56
	Total	532.89		117.56

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs For the assets or liabilities that are not based on observable market data (unobservable inputs).

The Company’s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. 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, risk management committee and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

A) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, loans and advances and financial instruments. The Company strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the financial instruments of the Company result in material concentrations of credit risks.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was 15,333.16 Lakhs and 12,505.02 Lakhs as at 31 March 2024 and 31 March 2023 respectively, being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, finance receivables, margin money and other financial assets.

a. Trade Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

None of the Company’s cash equivalents, including deposits with banks, were past due or impaired as at 31March 2024.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

Credit quality of financial assets and impairment loss

The ageing of trade receivables as of balance sheet date is given in Note No 8. The age analysis has been considered from the due date.

B)Liquidity Risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities. The Company consistently generates sufficient cash flows from operations and has access to multiple sources of funding to meet its financial obligations and maintain adequate liquidity for use. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, shareholder equity, and finance leases.

The below table summarises company’s long-term debt that will mature in less than one year based on the carrying value of borrowings reflected in the financial statements.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

The Company has assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and significant portion of short-term debt maturing within 12 months can be rolled over with existing lenders. The Company believes that it has sufficient working capital and cash accruals to meet its business requirements and other obligations.

C) Market Risks

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company’s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

D) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

The Company’s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.

42.Corporate Social responsibility expenses

The CSR expenditure comprise of the following

a. Gross Expenditure required to be spent during the financial year 2023-24 is Rs.7.65 lakhs and Rs 13.11 lakhs of Previous Financial Year 2022-23.

44. Leases

The Company take lease contracts for buildings. The leases generally have lease terms between 3-5 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets. There lease contracts that include extension and termination options, which are further discussed below.

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

Refer Note 3 for details of carrying amounts of right-of-use assets recognised and the movements during the year. Set out below are the carrying amounts of lease liabilities (included under interest-bearing borrowings) and the movements during the year.

The maturity analysis of lease liabilities is disclosed in Note 40. The following are the amounts recognized in the statement of profit or loss:

The Company had total cash outflows for leases of Rs 176.05Lakhs.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company’s business needs. Management exercises significant judgement in

(determining whether these extension and termination options are reasonably certain to be exercised. The effective interest rate for lease liabilities is 11%, with maturity between 2024-25.

45. Other statutory information:

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

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

I. 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

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

f. The Company has not received any fund from any person(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has not entered into any 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).

h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

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

j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.

l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

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Mar 31, 2023

Earnings per Share

Basic EPS amounts are computed by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) attributable to equity holders by the weighted average number of equity shares outstanding during the period/year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Related Party Transaction

In accordance with the provisions of Ind AS 24 "Related Party Disclosures" and the Companies Act, 2013, Company''s Directors, key managerial personnel defined as per section 2(51) of the Companies Act, 2013 are considered as related parties of the Company.

Segment Reporting

The Company concluded that there is only one operating segment i.e., Facility Management & staffing services. Hence, the same becomes the reportable segment for the Company. Accordingly, the Company has only one operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are not applicable.

(i) The Code on Social Security, 2020 (''Code'') relating to employee benefits received Presidential assent in September 2020. However, effective date and the final rules/interpretation have not yet been notified/ issued. The Company is in the process of assessing the impact of the Code and will recognize the impact, if any, based on its effective date.

(ii) The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

Gratuity and other Post employment benefits

In accordance with applicable laws, the Company has a defined benefit plan which provides for gratuity payments (the "Gratuity Plan") and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation.

Fair value hierarchy

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

41 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. 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, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

A) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, loans and advances and financial instruments. The Company strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the financial instruments of the Company result in material concentrations of credit risks.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was 12,505.02 Lakhs and 11,172.62 Lakhs as at 31 March 2023 and 31 March 2022 respectively, being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, finance receivables, margin money and other financial assets.

a. Trade Receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed

None of the Company''s cash equivalents, including deposits with banks, were past due or impaired as at 31 March 2023.

On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. For this purpose, it is weighted average of credit losses with the respective risks of default occurring as weights. The credit loss is the difference between all contractual cash flows that are due to an entity as per the contract and all the contractual cash flows that the entity expects to receive, discounted to the effective interest rate.

through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The total Trade Receivable as on 31 March 2023 is Rs 10451.02 Lakhs and Rs.9240.72 lakhs as on 31 March 2022.

The Company has assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and significant portion of shortterm debt maturing within 12 months can be rolled over with existing lenders. The Company believes that it has sufficient working capital and cash accruals to meet its business requirements and other obligations.

C) Market Risks

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company''s financial position. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables.

D) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries.

Credit quality of financial assets and impairment loss

The ageing of trade receivables as of balance sheet date is given in Note No 30. The age analysis has been considered from the due date.

B) Liquidity Risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities. The Company consistently generates sufficient cash flows from operations and has access to multiple sources of funding to meet its financial obligations and maintain adequate liquidity for use. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, shareholder equity, and finance leases.

The below table summarises company''s long-term debt that will mature in less than one year based on the carrying value of borrowings reflected in the financial statements.

42. Capital Management

The Company''s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The funding requirements are met through equity, borrowings and operating cash flows required.

45. Leases

The Company take lease contracts for buildings. The leases generally have lease terms between 3-5 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets. There lease contracts that include extension and termination options, which are further discussed below.

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for these leases.

Refer Note 3 for details of carrying amounts of right-of-use assets recognised and the movements during the year. Set out below are the carrying amounts of lease liabilities (included under interest-bearing borrowings) and the movements during the year.

The maturity analysis of lease liabilities is disclosed in Note 32. The following are the amounts recognized in the statement of profit or loss:

The Company had total cash outflows for leases of Rs 294.49 Lakhs.

The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. The effective interest rate for lease liabilities is 11%, with maturity between 2024-25.

46. Other statutory information

a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b. The Company does not have any transactions with struck off companies.

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond

the statutory period.

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

e. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i. 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

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

f The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g. The Company has not entered into any 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).

h. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

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

j. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

k. The Company has borrowings from banks against security of its current assets. The reports or statements of Current assets filed by the company with banks are in agreement with the books of accounts.

l. The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

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Mar 31, 2018

Note: Obligations towards operating leases

The company has entered into operating lease arrangements for its premises at various locations.

Future minimum lease payments

not later than one year 20,33,100 later than one year and not later than five years 3,24,000

later than five years -

The future minimum lease rental obligation under non-cancellable operating leases in respect of these assets is on account of lock-in period and notice period in some of the lease agreements entered by the company for operating of offices:

On account of Lock-in Period -On account of Notice Period -

1 Note: Working Capital Loan / Term Loan/ Vehicle Loans:

Working Capital Loan from HDFC Bank:

Rate ol Interest:

Over Draft from HDFC Bank: Interest at the rate of 10.00% Margin:

25% receivables not older than 90 days Primary Security:

Hypothecation of stock of Raw Material, Consumables, Work in Progress, Finished Goods & Assignment of receivables.

Collateral Security:

a) Hypothication of Villa No.102, House 15-31-IFF/120, In S.y No 1009 situated at Indu Fortune fields, Phase-XIII, KPHB Colony, Kukatpally , Hyderabad-500075, having Market value of Rs. 3.51 Crores , Standing in the name of M/s. Kodali Srikanth.

b) Hypothication of Land in S.Y51, situated at Nacharam Village , Maheswaram Mandal , Rangareddy Dist.-500083, having Market value of Rs. 6.62 Crores , Standing in the name of M/s . Kodali Srikanth.

Terms of Repayment:

Working Capital Loans repayable on demand.

Term Loan from HDFC Bank:

Rate of Interest:

Term Loan from HDFC Bank: Interest at the rate of 10.00%

Primary Security:

Hypothication of all the equipment procured and fixed assets acquired from the term loan.

Terms of Repayment:

This Term Loan repayable in 36 Quarterly installments of Rs. 4,84,008/- each, Commencing from December, 2017

Status as on 31.03.2018: Balance No. of Installments - 32 Term Loan NSDC:

Moratorium & Repayment Schedule: Principal Moratorium Period : 3 years from the date of first reimbursement, no Interest Moratorium Repayment Period: 10Years (Including Moratorium Period) from date of first disbursement Repayment: In 28 Quarterly Instalments Starting from Q1 of 4th Year

Rate of Interest: 6% Per Annum Security:

1. First charge on assets on the project

2. First charge on Cash flow of the Project

3. Charge on IP of the project till the loan is repaid

4. Pledge of 51% of equity shares of the Project implementing company by Mr. Kodali Srikanth

Additional Collateral: Personal Guarantee provided by both the promoters Mr.Srikanth Kodali and Mr. Radha Krishna Pinnamaneni

Vehicle Loans from Banks:

Rate of Interest:

1 BMW Audi Vehicle Loan1: @10.38% per annum

2 Kotak Mahindra Skoda Vehicle Loan: @ 10.53% per annum

3 BMW Innova Vehicle Loan2: @ 10.50% per annum

4 BMW Tavera Vehicle Loan: @ 10.75% per annum

5 HDFC Jaguer Vehicle Loan:@ 9.86% Per Annum

6 HDFC Porche vehicle Loan:@ 9.36% Per Annum

7 Canara bank Tavera Vehicle Loan: @ 10.20% per annum

8 Canara bank audi Car Loan: @ 8.90 % per annum

Security:

Vehicles loans are secured by hypothecation of vehicles financed by respective banks.

Terms of Repayment: 1 BMW Audi Vehicle Loan1: @10.38% per annum

This Loan is repayable in 60 monthly installments of Rs.1,06,100/- each commencing from March, 2014 Status as on 31.03.2018 : Balance No. of Installments -11

2 Kotak Mahindra Skoda Vehicle Loan: @ 10.53% per annum

This Loan is repayable in 60 monthly installments of Rs.18,120/-

each commencing from September , 2014

Status as on 31.03.2018 : Balance No. of Installments -17

3 BMW Innova Vehicle Loan2: @ 10.50% per annum

This Loan is repayable in 60 monthly installments of Rs.23,713/- each commencing from September , 2014

Status as on 31.03.2018 : Balance No. of Installments -17

4 BMW Tavera Vehicle Loan: @ 10.75% per annum

This Loan is repayable in 60 monthly installments of Rs.19,456/- each commencing from october, 2014

Status as on 31.03.2018 : Balance No. of Installments -18

5 HDFC Jaguer Vehicle Loan:@ 9.86% Per Annum

This Loan is repayable in 60 monthly installments of Rs.2,20,550/- each commencing from July, 2015 Status as on 31.03.2018 : Balance No. of Installments -27

6 HDFC Porche vehicle Loan:@ 9.36% Per Annum

This Loan is repayable in 60 monthly installments of Rs.280,910/- each commencing from July, 2016 Status as on 31.03.2018 : Balance No. of Installments -39

7 Canara bank Tavera Vehicle Loan: @ 10.20% per annum

This Loan is repayable in 84 monthly installments of Rs.15,034/- each commencing from Jan, 2016

Status as on 31.03.2018 : Balance No. of Installments - 56

8 Canara bank audi Car Loan: @ 8.90 % per annum

This Loan is repayable in 60 monthly installments of Rs.1,63,608/- each commencing from September, 2017 Status as on 31.03.2018 : Balance No. of Installments -53

Unsecured Business Loans from Banks & Financial Institutions:

From Banks:

1 HDFC Bank Limited

Rate of Interest: @ 18.5% per annum Security : Unsecured Loan Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,41,840/- each commencing from June , 2017 Status as on 31.03.2018 : Balance No. of Installments -14

2 Standard Chartered Bank Limited

Rate of Interest: @16.50% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 36 monthly installments of Rs. 88,511/- each commencing from August, 2017 Status as on 31.03.2018 : Balance No. of Installments -28

3 Indusind Bank Limited

Rate of Interest: @18.750% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,51,436/- each commencing from August, 2017 Status as on 31.03.2018 : Balance No. of Installments -16

4 Kotak Mahindra bank Limited

Rate of Interest: @18.35% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,50,830/- each commencing from August, 2017

Status as on 31.03.2018 : Balance No. of Installments -16

5 Kotak Mahindra bank Limited

Rate of Interest: @18.36% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 36 monthly installments of Rs. 1,63,817/- each commencing from November, 2015 Status as on 31.03.2018 : Balance No. of Installments -7

From Financial Institutions:

1 Bajaj Finserv Limited

Rate of Interest: @ 19.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 12 monthly installments of Rs.2,57,117/- each commencing from August, 2017 Status as on 31.03.2018 : Balance No. of Installments -4

2 Bajaj Finserv Limited

Rate of Interest: @ 9.9% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs.1,21,778/- each commencing from June, 2016 Status as on 31.03.2018 : Balance No. of Installments -2

3 Capital First Limited

Rate of Interest: @ 9.9% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,78,577/- each commencing from june, 2017

Status as on 31.03.2018 : Balance No. of Installments -14

4 Capital Float Zen

Rate of Interest: @ 19.50% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,53,259/each commencing from August, 2017 Status as on 31.03.2018 : Balance No. of Installments -16

5 Edelweiss Retail Finance Limited

Rate of Interest: @ 18.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 1,99,697/- each commencing from June, 2017

Status as on 31.03.2018 : Balance No. of Installments -14

6 Eqitas Small Finance Bank Limited

Rate of Interest: @ 18.50% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2.00.670/- each commencing fromjune , 2017

Status as on 31.03.2018 : Balance No. of Installments -14

7 Fulletron India

Rate of Interest: @ 18.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,49,621/- each commencing from August, 2017

Status as on 31.03.2018 : Balance No. of Installments -16

8 Sri Ram city Union Finance Limited

Rate of Interest: @ 20.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 1,52,668/- each commencing from August, 2017

Status as on 31.03.2018 : Balance No. of Installments -16

9 Tata Capital Financial Services Limited

Rate of Interest: @ 18.30% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2.00.664/- each commencing from June, 2016

Status as on 31.03.2018 : Balance No. of Installments -2

10 Tata Capital Financial Services Limited

Rate of Interest: @ 17.71% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 1,79727/- each commencing from June, 2017

Status as on 31.03.2018 : Balance No. of Installments -14

11 Aditya Birla Finance Limited

Rate of Interest: @ 18% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,50,831/- each commencing from June , 2017

Status as on 31.03.2018 : Balance No. of Installments -14

12 India Infoline Finance Limited

Rate of Interest: @ 18.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 2,49,621/- each commencing from June, 2017

Status as on 31.03.2018 : Balance No. of Installments -14

13 Magma Finance Limited

Rate of Interest: @ 18.00% per annum

Security : Unsecured Loan

Terms of Repayment :

This Loan is repayable in 24 monthly installments of Rs. 1,99,696/- each commencing from June, 2017

Status as on 31.03.2018 : Balance No. of Installments -14

1 General Information:

M/s. Kapston Facilities Management Limited ("the Company") (CIN: L15400TG2009PLC062658) is engaged in the business engaged in the business of rendering security and related services, training and facility management, Housekeeping and cleaning services. The company has registered office at Hyderabad and provides services major cities all over India. The Equity Shares of the company are listed on SME Platform on NSE Emerge.

I- EXPLANATORY NOTES

2. Managerial Remuneration

The Company carries out periodic reviews of comparable Companies and through commissioned survey ascertains the remuneration levels prevailing in these Companies. The Company''s Remuneration Policy is designed to ensure that the remuneration applicable to Managers in the Company is comparable with companies operating in similar industries in India.

3. Share Issue Expenses:

The company has incurred share issue expenses of Rs.90,90,698 towards underwriting commission, professional fee etc these above share expenses have been written off against securities premium account in accordance with section 52 of the Companies Act 2013.

*Shares offered in IPO were allotted on 28^th March 2018 and listed on 4^th April 2018 hence, the amount was lying in the Escrow Account as on 31^st March 2018.

4. Disclosures under the Micro, Small and Medium Enterprises Act, 2006

The management has initiated the process of identifying enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2018 has been made in the financial statements based on information received and available with the Company. The Company has not received any claim for interest from any supplier under the said Act. In view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the aforesaid Act is not expected to be material.