Notes to Accounts of Magellanic Cloud Ltd.

Mar 31, 2025

2. 14 Provision and Contingent Liabilites

A provision is recognized 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 resources embodying 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.

The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are disclosed
when there is possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements.

2.15 Employee benefit
Providend Fund

Employees of the Company receive benefits under the provident fund, a defined benefit plan. The employee
and employer each make monthly contributions to the plan. A portion of the contribution is made to the
provident fund trust managed by the Company or Government administered provident fund; while the
balance contribution is made to the Government administered pension fund, a defined contribution plan.

For the contribution made by the Company to the provident fund trust managed by the Company, the
Company has an obligation to fund any shortfall on the yield of the Trust''s investments over the administered
interest rates. The liability is actuarially determined (using the projected unit credit method) at the end of the
year.

Gratuity Fund

The Company provide for gratuity, a defined benefit plan (the "Gratuity Plan”) covering eligible employees.

The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or
termination of employment, of an amount based on the respective employee''s base salary and the tenure of
employment (subject to a maximum of 20 lacs per employee). The liability is actuarially determined (using the
projected unit credit method) at the end of each year. Actuarial gains losses are recognized immediately in
the balance sheet with a corresponding debit or credit to other comprehensive income in the year in which
they occur.

2. 16 Financial Intruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments Financial assets and liabilities are initially measured at fair value except for trade
receivables which are initially measured at transaction price. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised in Standalone statement
of profit and loss.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at
:- Amortised cost

:- Fair value through other comprehensive income (FVOCI)- equity investment; or
:- Fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL

The asset is held within a business model whose objective is to hold assets to collect contractual cash
flows;

:- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely for
payments of principal and interest on the principal amount outstanding.

Financial Liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using
the effective interest method. Interest expense and foreign exchange gains and losses are recognised in
profit or loss.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect
to present subsequent changes in the investment''s fair value in OCI (designated as FVOCI equity investment).
This election is made on an investment-by-investment basis. All financial assets not classified as measured at
amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivatives financial
assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets
the requirement to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

Derecognition

Financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all
of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset. If the Group enters into transactions whereby it transfers assets recognised on its balance
sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred
assets are not derecognized.

Financial Liabilities

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or
expire. The Group also derecognises a financial liability when its terms are modified and the cash flows under
the modified terms are substantially different. In this case, a new financial liability based on the modified terms
is recognised at fair value. The difference between the carrying amount of the financial liability extinguished
and the new financial liability with modified terms is recognised in profit or loss.

Impairment Testing of financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets
which are not fair valued through profit and loss. Lifetime ECL allowance is recognized for trade receivables
with no significant financing component. For all other financial assets, expected credit losses are measured
at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial
recognition in which case they are measured at lifetime ECL. The amount of expected credit losses
(or reversal) that is required to adjust the loss allowance at the reporting date is recognized in statement of
profit and loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when,
and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either
to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Derivative financial instruments and hedge accounting

The Company enters into derivative financial instruments, primarily foreign exchange forward contracts and
interest rate swaps, to manage its exposure to foreign exchange and interest rate risks. Derivatives
embedded in non-derivative host contracts that are not financial assets within the scope of Ind AS 109 are
treated as separate derivatives when their risks and characteristics are not closely related to those of the
host contracts and the host contracts are not measured at FVTPL. Derivatives are initially recognised at fair
value at the date the contracts are entered into and are subsequently remea- sured to their fair value at the
end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately unless the
derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in
profit or loss depends on the nature of the hedging relationship and the nature of the hedged item.

2.17 Dividend

Final dividend proposed by the Board of Directors is recognized upon approval by the shareholders who
have the right to decrease but not increase the amount of dividend recommended by the Board of Directors.
Interim dividends are recognized on declaration by the Board of Directors. Final and interim
dividend excludes dividend on treasury shares.

2.18 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit / (loss) attributable to the equity shareholders for
the year by the weighted average number of equity shares outstanding during the reporting period. Diluted
EPS is computed by dividing the net profit / (loss) as adjusted for dividend, interest and other charges to
expense or income (net off any attributable taxes) relating to the dilutive potential equity shares by the
weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

2.19 Recently Issued accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Compa nies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2024, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.

Nature and purpose of other reserves

(i) Securities premium

The amount received in excess of face value of the equity shares in recognized in Securities Premium. The account in utilized in accordance with the provisions of the Companie''s Act, 2013.

(ii) Retained earnings

Retained earnings are the profits that the Company has earned till date including gain/(loss) on remeasurement of defined benefits plans as adjusted for distributions to owners, transfer to
other reserves etc.

(iii) General Reserve

Under the erstwhile Companies Act, 1956, general reserves was created through an annual transfer of net income at a specified percentange in accordance with applicable regulations,
however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of the Companies Act, 2013.

(vi) Statutory Reserves

Under the erstwhile Companies Act, 1956, general reserves was created through an annual transfer of net income at a specified percentange in accordance with applicable regulations,
however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of the Companies Act, 2013.

Notes:

(i) Working Capital Term loan of Rs of Rs 3,4000 Lakhs was sanctioned (CY Rs 575.29 Lakhs and PY Rs 546.09 Lakhs) from HDFC Bank Ltd towards Business use which is secured against
Personal gurantee of Directors, Commercial property and vacant land which are owned by the Directors. The loan are repayable in 84 equal monthly installment starting from 07th November
2022 and carrying interest rate 7.50 % p.a.

(ii) Capital Expenditure Letter of Credit of Rs 1,000 Lakhs was sanctioned (CY Rs 905.98 and PY Nil) from HDF Bank Ltd for the purpose of capital expenditure which is secured against
Personal gurantee of Directors, commercial property and vacant land which are owned by the Directors. The loan are repayable in 48 equal monthly installment starting from 07th
October 2024 and carrying interest rate 9.50 % p.a.

(iii) Term Loan of Rs 646.12 was sanctioned (CY Rs 575.29 and PY Rs 546.09) from Yes Bank Ltd towards Business use which is secured against Royale Villa Property. The loan are
repayable in 240 equal monthly installment (PY 156 equal monthly installment) starting from 02nd October 2020 and carrying interest rate 13.86% p.a. (PY 9.80% p.a.)

Notes:

(a) 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. The settlement for these balances occurs through payment.

There have been no guarantees provided or received for any related party receivables or payables. For the year
ended March 31, 2025, the Company has not recorded any impairment of receivables relating to amounts owed by
related parties. This assessment is undertaken each financial year through examining the financial position of the
related party and the market in which the related party operates.

(b) As at March 31, 2025, the Company has granted loans KMPs (as defined under Companies Act, 2013), either severally or
jointly with any other person.

(c) All the liabilities for post retirement benefits being ‘Gratuity, compensated absence and pension benefit'' are provided
on actuarial basis for the Group as a whole, accordingly the amount pertaining to Key management personnel are not
included above

(i) Trade Receivables

The customers are subjected to credit assessments as a precautionary measure, and the adherence of all
customers to payment due dates is monitored on an on-going basis, thereby practically eliminating the risk
of default. Customer credit risk is managed by respective department head subject to the Company''s
established policy, procedures and control relating to customer credit risk management. An impairment
analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method
based on provision matrix. The Company does not hold collateral as security. There is one single customer
from whom the Company earns revenue of more than 10%, however, there is no credit default risk from this
customer since the amount are generally received in advance. Refer note 5(B) for movement in credit loss
allowance during the year.

(ii) Financial instruments and deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury
department in accordance with the Company''s policy. Investments of surplus funds are made in bank
deposits and other risk free securities. The limits are set to minimize the concentration of risks and therefore
mitigate financial loss through counterparty''s potential failure to make payments. The Company''s maximum
exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31, 2024 is the
carrying amounts. The Company''s maximum exposure relating to financial instrument is noted in liquidity
table below.

32. Capital management

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of
the parent company and all other equity reserves. The primary objective of the Company''s capital management is
to safeguard its ability to continue as going concern and to ensure that it maintains an efficient capital structure
and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of
changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital
structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is
not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or
processes for managing capital during the year ended March 31, 2025 and March 31, 2024. The Company monitors
capital using gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as loans
and borrowings less cash and cash equivalent.

33. Additional Regulatory Information

(i) Details of Benami property: No proceedings have been initiated on or are pending against any of the
group companies for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and Rules made thereunder.

(ii) Wilful defaulter: Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.

(iii) Compliance with approved scheme of arrangements: The Company has not entered into any scheme
of arrangement which has an accounting impact on current.

(iv) Utilisation of borrowed funds : No funds (which are material either individually or in the aggregate)
have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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 provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;

(iv) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto
currency or virtual currency during the current or previous year.

(vi) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its
property, plant and equipment (including right-of-use assets) or intangible assets or both during the current
or previous year.

(vii) Utilisation of borrowings availed from banks and financial institutions: The borrowings obtained by
the Company from banks and financial institutions have been applied for the purposes for which such loans
were taken including funding to one if its subsidiary.

Notes:

(a) Reasons for movement in ratios

(i) Current Ratio : Increase is due to cash & cash equivalent

(ii) Debt Equity Ratio : Increase in current year is primarily due to additional borrowings during the year.

(iii) Trade Receivables Turnover (times): Increase is due to higher collection at the year end

(iv) Net Capital Turnover Ratio: Decrease is due to Current Assets

34. The comparative previous year figures are reclassified or regrouped, wherever required.

The accompanying notes form an integral part of the standalone financial statements.
As per our report of even date attached

For SGCO & CO. LLP For and on behalf of the Board of Directors of

Chartered Accountants Magellanic Cloud Limited

Firm Registration No. 112081W/W100184 CIN : L72100TG1981PLCI69991

Sd/- ^Sd/- Sd/-

Suresh Murarka ^Josep^{h Sudheer Redd}y ^Thumma Nikitha Tiparnapally

Partner Managing Director Director

Membership No. : 044739 DIN No. 07033919 DIN No. 07399613

Sd/- Sd/-

Sanjay Chauhan Sameer Lalwani

Chief Financial Officer ^Co^{mpany Sec}ret^ar^y

_{PAN: AFLPC7749G} ^{PAN: AIDPL4094N}

Place : Mumbai Place : Hyderabad

Date : 05th May, 2025 Date : 05th May, 2025

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Mar 31, 2023

Nature and purpose of other reserves

(i) Securities premium

The amount received in excess of face value of the equity shares in recognized in Securities Premium.The account in utilized in accordance with the provisions of the Companie''s Act, 2013

(ii) Retained earnings

Retained earnings are the profits that the Company has earned till date including gain/(loss) on remeasurement of defined benefits plans as adjusted for distributions to owners, transfer to other reserves etc.

(iii) General Reserve

Under the erstwhile Companies Act, 1956, general reserves was created through an annual transfer of net income at a specified percentange in accordance with applicable regulations, however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of the Companies Act, 2013.

(iii) Statutory Reserves

Under the erstwhile Companies Act, 1956, general reserves was created through an annual transfer of net income at a specified percentange in accordance with applicable regulations, however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of the Companies Act, 2013.

(i) The Company has obtained terms loans for the purpose of Vehicle purchase, Property purchase and WC Term loan from various banks.

Vehicle loan is repayable in 37 to 60 equal monthly installments and carries interest rate ranging from 7.99% p.a. to 13% p.a. and maturity between December 2023 till October 2027. The loan is secured against vehicles purchased.

Property loan is repayable in 156 equal monthly installment carrying interest rate 9.8% p.a. and will be maturing in September 2033.The Property is mortaged to the banks tilll the time loan is repaid.

Working Capital loan is repayable in equal monthly installment between August 20234 to June 2029 and carries interest rate 7.50 % p.a. to 16.25% p.a. The loan is secured against Personal gurantee of Directors, commercial property and vacant land which are owned by the Directors.

(a) Trade Receivable represents the amount of consideration in exchange for goods or services transferred to the customers that is unconditional.

(b) The Company has entered into the agreements with customers for sales of goods and services. The company has identified these performance obligations and recognised the same as contract liabilities in respect of contracts, where the company has obligation to deliver the goods and perform specified services to a customer for which the company has received consideration. Contract liabilities have increased in the current year on account of increase in advance from customer pursuant to increase in business.

(iii) Unsatisfied performance obligations:

Information about the Company''s performance obligations are summarised below:

Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to the customer, generally on delivery of the goods and payment is generally due as per the terms of contract with customers.

Sales of services: The performance obligation in respect of ITeS services is satisfied over a period of time and acceptance ofthe customer. In respect of these services, payment is generally due upon completion of service based on time elapsed and acceptance of the customer. Advances received for unsatisfied performance obligation is recognised as contract liability and disclosed as Advances from customers as at the year end.

4 Right of use assets

(i) Right of use assets: The Company’s lease asset primarily consist of following:

(a) Lease contracts entered by the company pertain for building taken on lease to conduct its business in the ordinary course having lease terms between 36 to 60 months.The Company’s obligations under its leases are secured by the lessor’s title to the leased assets.

There are certain premises taken on lease by the Company wherein the lease duration is less than 12 months. These are short term leases and the Company has elected not to recognise right-of-use assets and lease liabilities for these leases.

(v) The Company does not face significant liquidity risk with regard to its lease liabilities as the current cash flow are sufficient to meet the obligation related to lease liabilities as and when they fall due.

22 Disclosure of Defined benefit plans and defined contribution plan (A) Defined benefit plan

The Company operates following defined benefit obligations:

(a) Gratuity (defined benefit plan)

In accordance with the applicable laws, the company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement, death, incapacitation or termination of employment of amounts that are based on salary and tenure of employment. Liabilities with regard to the gratuity plan are determined by actuarial valuation.

The following tables summaries the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plan:-

(xi) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

(xii) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period while holding all other assumptions constraint. In practice it is unlikely to occur and change in some of the assumption may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(xiii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

(xiv) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Notes:

(a) 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. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties . This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(b) As at March 31, 2023 , the Company has not granted any loans to the promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

(c) All the liabilities for post retirement benefits being ‘Gratuity, compensated absence and pension benefit’ are provided on actuarial basis for the Group as a whole, accordingly the amount pertaining to Key management personnel are not included above.

Management of the Company has assessed that trade receivables, cash and cash equivalents, other bank balances, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(i) Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period for identical assets or liabilities.These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers among levels 1, 2 and 3 during the year

This section explains the judgement and estimates made in determining the fair value of financial assets that are:

a) Recognized and measured at Fair value

b) Measured at amortized cost and for which fair value is disclosed in financial statements

27 Financial risk management objectives and policies

In the course of its business, the Company is exposed to certain financial risks namely credit risk, interest risk, currency risk & liquidity risk. The Company’s primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The financial risks are managed in accordance with the Company’s risk management policy which has been approved by its Board of Directors.

(a) Market Risk Management

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 comprises three types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans deposits, and investments, and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at reporting date. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity obligations and the non-financial assets and liabilities. The sensitivity of the relevant profit and loss item and equity is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2023 and March 31, 2022.

(i) 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''s major customers are located in international market due to which the Company is also exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to the movement in foreign currency exchange rates. The Company’s 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 foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies approved by its Board of Directors.

(b) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing through the use of short term bank deposits, short term loans, and cash credit facility etc. Processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.

(c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations towards the Company and arises principally from the Company’s receivables from customers and deposits with banking institutions. The maximum amount of the credit exposure is equal to the carrying amounts of these receivables. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

(i) Trade Receivables

The customers are subjected to credit assessments as a precautionary measure, and the adherence of all customers to payment due dates is monitored on an on-going basis, thereby practically eliminating the risk of default.

Customer credit risk is managed by respective department head subject to the Company’s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The Company does not hold collateral as security. There is one single customer from whom the Company earns revenue of more than 10%, however, there is no credit default risk from this customer since the amount are generally received in advance. Refer note 5(B) for movement in credit loss allowance during the year.

(ii) Financial instruments and deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made in bank deposits and other risk free securities. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments. The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 is the carrying amounts . The Company’s maximum exposure relating to financial instrument is noted in liquidity table below.

28 Capital management

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of the parent company and all other equity reserves. The primary objective of the Company''s capital management is to safeguard its ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022. The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as loans and borrowings less cash and cash equivalent.

29 Additional Regulatory Information

(i) Details of Benami property: No proceedings have been initiated on or are pending against any of the group companies for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful defaulter: Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Compliance with approved scheme of arrangements: The Company has entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(iv) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(v) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(a) Reasons for movement in ratios greater than 25%

(i) Current Ratio : Decrease is due to increase in current liability as short term borrowings are increased during the year.

(ii) Debt Equity Ratio : Increase in current year is primarily due to additional borrowings during the year.

(iii) Return of Equity (%) : Return on Equity in the current year has improved from 7 % in previous year to 10% in current year on the base of higher profit for the year.

(iv) Trade Receivables Turnover (times): Decrease is due to higher receivables at the year end on account of unbilled and pending realisation of the Q4 debtors.

(v) Net Capital Turnover Ratio : Decrease is due to increase in current liability during the year on account of current maturity of long term borrowings.

(vi) Operating Profit Margin (%) : Increase is due to higher operation performance during the year.

(vii) Interest Coverage Ratio : Interest Coverage Ratio is 3.31 in the current year as against 5.19 in the previous year primarily due to excessive use of debt compared to last year.

(viii) Debt Service Coverage Ratio : The debt service coverage ratio is lower due to increased borrowings during the year and scheduled repayment of the borrowed funds.

30 The comparative previous year figures are reclassified or regrouped, wherever required.

The accompanying notes form an integral part of the standalone financial statements.

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Mar 31, 2022

In the opinion of the Board, the value of realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet.

On the basis of the information available with the company, there are no micro and small scale business enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2022.

The Company has made an assessment of the impact of the continuing COVID-19 pandemic on its current and future operations, liquidity position and cash flow giving due consideration to the internal and external factors. The Company is continuously monitoring the situation and does not foresee any significant impact on its operations and the financials position as at March 31, 2022.

Other Statutory Information

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

ii) The Company do not have any transactions with companies struck off.

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

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

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

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

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

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

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

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

vii) The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or

disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii) 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.

ix) The Company has not been declared as a Wilful Defaulter by any bank or financial institution or government or any government authority.

37 Previous Year figures

Figures of previous year are regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

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Mar 31, 2018

1. Company overview

South India Projects Limited {"the company") has its place of business is in Hyderabad and registered office is in Kokatta.

2. Basis of preparation of financial statements

a) Accounting convention

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards} Rules, 2015 as amended by the companies (Indian Accounting Standards) Amendment Rules, 2016.

For all periods upto and including the year ended March 31, 21X17, the Company had prepared its financial statements in accordance with Generally Accepted Accounting Principles {GAAP) in India and complied with the accounting standards (Previous GAAP as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent applicable, and the presentation requirements of the Companies Act, 2013.

Pursuant to the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards notified under Section 133 read with Rule 4A of the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) (Amendment) Rules, 2016 as amended and the relevant provisions of the Companies Act, 2013 (collectively, "Ind AS") with effect front April L 2018 and the Company is required to prepare its financial statements in accordance with Ind AS for the year ended March 31,2018. These financial statements for the year ended March 31,201 Rare the first financial statements the company has prepared in accordance with Ind AS.

The transition to Ind AS was carried out in accordance with Ind AS 101 First- Time Adoption o/ Indian Accounting Standards with the date of transition as April 01, 201 &. There is no transition effects during the transition period.

b) Basis of measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2D 13 (the Act) |Companies (Indian Accounting Standards) Rules, 2015 J and other relevant provisions of the Act, All assets and liabilities are classified into current and non-current based on the operating cycle of less than twelve months or based on the criteria of realisation/settlement within twelve months period from the balance sheet date.

c) Key accounting judgement, estimates and assumptions

The preparation of the financial statements required the management to exercise judgment and to make estimates and assumptions. These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period.

d) Functional and presentation currency

The functional and presentation currency of the Company is the Indian Rupee.

e) Foreign currency transaction

Foreign currency (transaction are translated at the exchange rate that approximates the prevalent exchange rate on the transaction date. Monetary assets and liabilities in foreign currencies are translated at the year*end rate. Non monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

3. In the opinion of the Board, the value of realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet.

4. On the basis of the information available with the company, there are no micro and small scale business enterprises, to whom the company ones dues, which are outstanding for more than 45 days as at March 31, 2018.

5. Previous Year figures

Figures of previous year are regrouped, rearranged and reclassified wherever to correspond to figures of the current year.

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Mar 31, 2017

1. Corporate information

SOUTH INDIA PROJECTS LIMITED (“the company*) has its place of business is in Hyderabad end registered office is in Kolkatta.

Note:

2. The company has only one class of equity with a per value of Rs.10/- per share. Each holder of equity shares is entitle to one vote per share.

3. In the opinion of the Board, the valuer of realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet.

4. On the basis of the information available with the company, there are no micro and small scale business enterprises, to whom the company ones dues, which are outstanding for more than 45 days as at March 31, 2017.

5. Previous Year figures

Figures of previous year are regrouped, rearranged and reclassified wherever to correspond to figures of the current year.

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Mar 31, 2015

1. CORPORATE INFORMATION

South India projects Limited (the 'Company' or 'SIPL') is a public Company domiciled in India and incorporated on December 4, 1981 under the provisions of the Companies Act, 1956. The Company has received a Certificate of Registration from the Reserve Bank of India ('RBI') on December 5, 2001 to commence/carry on the business of Non- Banking Financial Institution ('NBFC') without accepting public deposits.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 ('the 2013 Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the 2013 Act / Companies Act, 1956 ('the 1956 Act') as applicable. The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless stated otherwise.

a)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 dividend, if any is proposed by the Board of Directors and is subject to the approval of The shareholders in the ensuing Annual General Meeting. In the event of liquidation of Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Related Party Disclosures (Where transactions exist)

As per Accounting Standard 18 on 'Related Party Disclosures' as notified under the Accounting Standards specified under Section 133 of the 2013 Act read with Rule 7 of the Companies (Accounts) Rules, 2014, the related parties of the Company are as follows:

Associates -

AKI Investment Pvt. Ltd.

Century Business Ltd.

4. No amount is payable to 'Suppliers' registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid / payable by the Company during the year to the 'Suppliers' covered under the Micro, Small and Medium Enterprises Development Act, 2006.

5. Segment Reporting

Since the Company has only one reportable business segment "Financing / Investment in Shares and Securities" as primary segment and it operates in a single geographical segment within India, no disclosure is required to be given as per Accounting Standard - 17 'Segmental Reporting' as notified under Section 133 of the Companies Act, 2013 ('the Act') read together with paragraph 7 of the Companies (Accounts) Rules, 2014.

6. Contingent Liabilities

There is no contingent Liabilities as on 31.03.2015

7. Figures for previous year have been regrouped and/or reclassified wherever considered necessary, to conform to current year's classification.

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Mar 31, 2014

1. Other Notes :

i) Sundry Creditors, Debtors and Advances are subject to confirmation.

ii) Segment Reporting :

The Company is engaged primarily in the business of Financing/Investment in Shares and Securities accordingly there are no separate reportable segments as per A.S. 17.

iii) "Related Party Discloser" under A.S.-18 : (To the extent of transaction)

iv) There is no amount due to Micro, Small and Medium Enterprise as on 31-03-2014.

v) Previous year figures have been regrouped/reclassified to conform to this year''s classification.

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Mar 31, 2013

I) Sundry Creditors, Debtors and Advances are subject to confirmation.

ii) Segment Reporting :

The Company is engaged primarily in the business of Flnancing/lnvestment in Shares and trading of Shares and accordingly there are no separate reportable segments as per A.S. 17.

iii) "Related Party Discloser" under A.S.-18 :

a) Particulars of Related Parties -

i) Key Management Personnel - Sri J. P. Tantia - Director

ii) Relative of KMP - Sri Akash Tantia - Son of a Director,

- Smt. Kaiiash Devi Tantia (wife of a Director) J. P. Tantia (HUF)

iii) Associate Companies - Swastik Township Pvt. Ltd.

iv) There is no amount due to Micro, Small and Medium Enterprise as on 31-03-2013.

v) Previous year figures have been regrouped/reclassified to conform to this year''s classification.

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Mar 31, 2012

I) Sundry Creditors, Debtors and Advances are subject to confirmation.

ii) Segment Reporting :

The Company is engaged primarily in the business of Financing/lnvestment in Shares and trading of Shares and accordingly there are no separate reportable segments as per A.S. 17.

iii) "Related Party Discloser" under A.S.-18 ;

a) Particulars of Related Parties -

i) Key Management Personnel - Sri J. P. Tantia - Director

ii) Relative of KMP - Sri Akash Tantia - Son of a Director, - Smt. Kailash Devi Tantia (wife of a Director) J. P. Tantia (HUF)

iii) Associate Companies - Swastik Township Pvt. Ltd.

iv) There is no amount due to Micro, Small and Medium Enterprise as on 31-03-2012.

V) Expenditure in Foreign Currency

Travelling - Rs. Nil (Previous year Rs. 69,175/-)

vi) Previous year figures have been regrouped/reclassified to conform to this year''s classification.

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Mar 31, 2011

1. Sundry Creditors, Debtors and Advances are subject to confirmation.

2. Directors Remuneration - Rs: 6,00,000/- (Previous Year Rs. 1,20,000/-).

3. Segment Reporting :

The Company is engaged primarily in the business of Financing/lnvestment in Shares and trading of Shares and accordingly there are no separate reportable segments as per A.S. 17

4. There is no amount due to Micro, Small and Medium Enterprise as on 31-03-2011.

5. Expenditure in Foreign Currency

Travelling - Rs.. 69,175/- (Previous year Rs, - 1,11,053/-)

6. Previous year figures have been regrouped / re-arranged wherever deemed necessary.