1.3.20. Provisions, Contingent Liabilities

Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past
event, it is probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. If the effect of the
time value of money is material, provisions
are discounted using a current pre-tax rate
that reflects, when appropriate, the risks
specific to the liability.

Disclosure of contingent liability is made
when there is a 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
embodying economic benefits will be

required to settle or a reliable estimate of
amount cannot be made.

1.3.21. Events after Reporting Date

Where events occurring after the Balance
Sheet date provide evidence of condition
that existed at the end of reporting period,
the impact of such events is adjusted
within the financial statements. Otherwise,
events after the Balance Sheet date of
material size or nature are only disclosed.

1.3.22. Non - Current Assets Held For Sales

Non-current assets are classified as
held for sale if their carrying amount will
be recovered principally through a sale
transaction rather than through continuing
use and sale is considered highly probable.

A sale is considered as highly probable
when decision has been made to sell, assets
are available for immediate sale in its
present condition, assets are being actively
marketed and sale has been agreed or is
expected to be concluded within 12 months
of the date of classification.

Non-current assets held for sale are neither
depreciated nor amortised.

Assets and liabilities classified as held for
sale are measured at the lower of their
carrying amount and fair value less cost
of sale and are presented separately in the
Balance Sheet.

1.3.23. Cash Flows Statement

Cash Flows Statements are reported using
the method set out in the Ind AS - 7, "Cash
Flow Statements”, whereby the Net Profit/
(Loss) before tax is adjusted for the effects
of the transactions of a Non-Cash nature,
any deferrals or accrual of past or future
operating cash receipts or payments and
item of income or expenses associated
with investing or financing cash flows.
The cash flows from operating, investing
and financing activities of the Company
are segregated.

1.3.24. Cash and Cash Equivalents

Cash and cash equivalents comprise of
cash on hand, cash at banks, short-term
deposits and short-term, highly liquid
investments that are readily convertible

to known amounts of cash and which are
subject to an insignificant risk of changes
in value.

1.3.25. Recent Pronouncements

The Ministry of Corporate Affairs (“MCA”)
has notified the Companies (Indian
Accounting Standards) Amendment
Rules, 2025, amending certain Indian
Accounting Standards (Ind AS), which are
effective from 1 April 2025. The Company
has evaluated these amendments and
concluded that they do not have a material
impact on its financial statements or
material accounting policy information.

The amendments to Ind AS 12 - Income
Taxes relate to the OECD Pillar Two
global minimum tax rules. The Company
has assessed these amendments and
concluded that they do not have any impact
on its financial statements.

The amendments to Ind AS 21 - The
Effects of Changes in Foreign Exchange
Rates introduce a framework for situations
involving non-exchangeable currencies,
requiring entities to assess exchangeability
and estimate spot exchange rates when
exchangeability is lacking. Additional
disclosures are also required for currencies
subject to exchange restrictions. The
Company has assessed these amendments
and noted that they do not have any impact
on its financial statements.

The amendments to Ind AS 1 - Presentation
of Financial Statements clarify the
principles for classifying liabilities as current
or non-current, including the treatment of
covenant breaches and related disclosure
requirements. The Company has evaluated
these amendments and determined that
they do not have a significant impact on its
financial statements.

The amendments to Ind AS 7 - Statement
of Cash Flows and Ind AS 107 - Financial
Instruments: Disclosures require enhanced
disclosures relating to supplier finance
arrangements, including their terms and
conditions, outstanding balances, and
associated liquidity risk considerations. As
the Company does not have any material
supplier finance arrangements, these
amendments do not have any impact on its
financial statements.

The amendments to Ind AS 101 - First¬
time Adoption of Indian Accounting
Standards require additional disclosures
for entities operating in hyperinflationary
environments and provide transitional relief
relating to lease classification under Ind AS
116. Since the Company is not a first-time
adopter of Ind AS, these amendments are
not applicable.

The amendments to Ind AS 115 - Revenue
from Contracts with Customers involve
technical updates to replace outdated
references to superseded standards. These
amendments do not have any impact on
the Company’s financial statements.

The amendments to Ind AS 116 - Leases
provide transitional relief for lease
arrangements involving land and building
components, permitting classification
based on facts and circumstances existing
at the date of transition. These amendments
are not applicable to the Company.

1.4 Critical Accounting Judgments and Key
Sources of Estimation Uncertainty:

The preparation of the Company’s Financial
Statements requires management to make judgment,
estimates and assumptions that affect the reported
amount of revenue, expenses, assets and liabilities
and the accompanying disclosures. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected
in next financial years.

1.4.1. Income Tax

The Company’s tax jurisdiction is in India.
Significant judgments are involved in
estimating budgeted profits for the purpose
of paying advance tax, determining the
income tax provisions, including the
amount expected to be paid/recovered
for uncertain.

1.4.2. Property Plant and Equipment/
Intangible Assets

Estimates are involved in determining the
cost attributable to bringing the assets
to the location and condition necessary
for it to be capable of operating in the
manner intended by the management.
Property, Plant and Equipment/Intangible
Assets are depreciated/amortised over

their estimated useful life, after taking
into account estimated residual value.
Management reviews the estimated
useful life and residual values of the
assets annually in order to determine the
amount of depreciation/ amortisation to be
recorded during any reporting period. The
useful life and residual values are based
on the Company’s historical experience
with similar assets and take into account
anticipated technological changes. The
depreciation/amortisation for future
periods is revised if there are significant
changes from previous estimates.

1.4.3. Defined Benefits Obligations

The costs of providing Gratuity and other
post-employment benefits are charged
to the Statement of Profit and Loss in
accordance with Ind AS - 19, “Employee
Benefits” over the period during which
benefit is derived from the employees’
services. It is determined by using the
Actuarial Valuation and assessed on the
basis of assumptions selected by the
management. An actuarial valuation
involves making various assumptions that
may differ from actual developments in the
future. These assumptions include salary
escalation rate, discount rates, expected
rate of return on assets and mortality
rates. Due to complexities involved in
the valuation and its long term in nature,
a defined benefit obligation is highly
sensitive to change in these assumptions.
All assumptions are reviewed at each
balance sheet date.

1.4.4. Fair value measurements of Financial
Instruments

When the fair values of financial assets
and financial liabilities recorded in the
balance sheet cannot be measured based
on quoted prices in active markets, their
fair value is measured using valuation
techniques, including the discounted
cash flow model, which involve various
judgments and assumptions.

1.4.5. Recoverability of Trade Receivables

Judgments are required in assessing the
recoverability of overdue trade receivables
and determining whether a provision
against those receivables is required.
Factors considered include the credit

rating of the counterparty, the amount and
timing of anticipated future payments and
any possible actions that can be taken to
mitigate the risk of non-payment.

1.4.6. Provisions

The timing of recognition and quantification
of the liability (including litigations) requires
the application of judgment to existing
facts and circumstances, which can be
subject to change. The carrying amounts
of provisions and liabilities are reviewed
regularly and revised to take account of
changing facts and circumstances.

1.4.7. Impairment of Financial and Non -
Financial Assets

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

In case of non-financial assets company
estimates asset’s recoverable amount,
which is higher of an asset’s or Cash
Generating Units (CGU’s) fair value less
costs of disposal and its value in use.

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

1.4.8. Recognition of Deferred Tax Assets
and Liabilities

Deferred tax assets and liabilities are
recognised for deductible temporary
differences and unused tax losses for which
there is probability of utilisation against
the future taxable profit. The Company
uses judgment to determine the amount of
deferred tax that can be recognised, based
upon the likely timing and the level of future
taxable profits and business developments.

Notes:

a) (i) The Company has only one class of equity shares having a par value of I 10 per share. Each holder of equity
shares is entitled to one vote per share. The dividend, if any proposed by the Board of Directors is subject to
the approval of shareholders in Annual General meeting.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

(iii) During the year ended March 31, 2026, the Company has issued equity shares pursuant to the exercise of
Employee Stock Options under the ESOP Scheme as follows:

5,350 equity shares of face value ^10 each were allotted on May 27, 2025. 8,900 equity shares of face value
^10 each were allotted on November 12, 2025

(iv) During the year ended March 31, 2026, the Company has allotted 14,46,500 fully paid-up equity shares of
face value ^10 each on a preferential basis, in accordance with the provisions of the Companies Act, 2013
and the SEBI (Issue of Capital and Disclosure Requirements) Regulations.

The said shares were issued at a price of ^2,074 per share, including a premium of ^2,064 per share.

Approval for listing of the aforesaid shares has been received from BSE Limited vide its letter dated November
27, 2025.

The said equity shares rank pari passu in all respects with the existing equity shares of the Company,
including entitlement to dividend.

Note: Micro and Small Enterprises

1) The Company is in the process of obtaining necessary confirmations from suppliers regarding their status under
the Micro, Small and Medium Enterprises (MSME) Development Act, 2006 (the ‘Act’ ) and hence disclosures
regarding the following have been made:

i. Amount due and outstanding to MSME suppliers as at the end of the accounting year.

ii. There Is No Interest paid during the year to MSME.

iii. There Is No Interest payable at the end of the accounting year to MSME.

iv. There Is No Interest accrued and unpaid at the end of the accounting year to MSME.

Management believes that the figures for disclosures, if any, will not be significant.

Note: 37 - Details of Employee Benefits:

The Company has the following post-employment benefit plans:

A. Defined Contribution Plan

Contribution to defined contribution plan recognised as expense for the year is as under:

The Company offers its employees benefits under defined contribution plans in the form of provident fund.
Provident fund cover substantially all regular employees which are on payroll of the company. Both the employees
and the Company pay predetermined contributions into the provident fund and approved superannuation fund.
The contributions are normally based on a certain proportion of the employee’s salary and are recognised in the
Statement of Profit and Loss as incurred.

B Defined Benefit Plan - Gratuity:

(i) The Company administers its employees’ gratuity scheme funded liability. The present value of the liability for
the defined benefit plan of gratuity obligation is determined based on actuarial valuation by an independent
actuary at the period end, which is calculated using the projected unit credit method, which recognises each year
of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to
build up the final obligation.

Note:

The Government of India had announced the implementation of four Labour Codes effective November 21,
2025, consolidating 29 existing labour laws. However, there is no incremental impact of this on company’s
financial statements.

Note: 38 - Segment Reporting

Based on the nature of its business and the manner in which the Chief Operating Decision Maker (CODM) reviews the
Company’s operations and allocates resources, the Company operates in a single operating segment. Accordingly, the
disclosure requirements of Ind AS 108 - Operating Segments are not applicable to the Company.

Note: 39 - Leases (Right to Use of Assets)

The Company’s significant leasing arrangements are in respect of Land and buildings and office premises taken on
lease and license basis.

The Company has recorded the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate and the ROU asset at its carrying amount.

Note: 41 - Financial Instruments

Financial Risk Management - Objectives and Policies

The Company’s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related
to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the
Company’s operations. The Company’s financial assets comprise mainly of investments, security deposits, cash and cash
equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board
of Directors of the Company. The general conditions for compliance with the requirements for proper and future-
oriented risk management within the Company are set out in the risk management principles. These principles aim at
encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve
risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and
the application of financial instruments. The risk management system aims to identify, assess, mitigate the risks in
order to minimize the potential adverse effect on the Company’s financial performance.

The following disclosures summarize the Company’s exposure to the financial risks and the information regarding use
of derivatives employed to manage the exposures to such risks. Quantitative Sensitivity Analysis has been provided
to reflect the impact of reasonably possible changes in market rate on financial statements, cash flows and financial
positions of the Company.

Fair Value Hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable
inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1
inputs; and

B. Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market Risk comprises three types of Risk: "Interest Rate Risk, Currency Risk and Other
Price Risk”. Financial instrument affected by the Market Risk includes loans and borrowings in foreign as well as
domestic currency, retention money related to capital expenditures, trade and other payables.

(a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate
because of changes in market interest rates. An upward movement in the interest rate would adversely affect
the borrowing cost of the Company. The Company is exposed to long term and short - term borrowings.
The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and
taking actions as necessary to maintain an appropriate balance. The Company has not used any interest
rate derivatives.

(c) Other Price Risk

Other Price Risk is the Risk that the fair value of a financial instrument will fluctuate due to changes in market
traded price. The Company is exposed to price risk arising mainly from investments in equity/equity-oriented
instruments recognized at FVTPL/FVTOCI.

C. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure
to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other Financial assets
measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties
and incorporates this information into its credit risk controls.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating
is performed for each class of financial instruments with different characteristics. The Company assigns the
following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to
the class of financial assets. (i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting
defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities, Loans to
staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the same time internal control system in place ensure
the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which
the Company operates, a default on a financial asset is considered when the counter party fails to make
payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual
credit loss experience and considering differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or a litigation decided against the Company. The Company continues to engage with parties
whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in
statement of profit and loss.

(a) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets
using a simplified approach, wherein Company has defined percentage of provision by analysing
historical trend of default based on the criteria defined below and such provision percentage determined
have been considered to recognize life time expected credit losses on trade receivables (other than those
where default criteria are met in which case the full expected loss against the amount recoverable is
provided for). Further, the Company has evaluated recovery of receivables on a case to case basis. No
provision on account of expected credit loss model has been considered for related party balances. The
Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on
historically observed default rate over the expected life of trade receivable and is adjusted for forward -
looking estimate. The provision matrix at the end of reporting period is as follows:

D. Liquidity Risk

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity
risk may result from an inability to sell a financial asset quickly at close to its fair value. Management monitors
rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected
cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Maturities of Financial Liabilities:

The tables below analyse the Company’s financial liabilities into relevant maturity based on their contractual
maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of
discounting is not significant.

E. Capital Management

The Company’s capital management objectives are to ensure the company’s ability to continue as a going
concern, to provide an adequate return to share holders.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents
as presented on the face of balance sheet. Management assesses the Company’s capital requirements in
order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into
account the subordination levels of the Company’s various classes of debt. The Company manages the
capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares,
or sell assets to reduce debt.

J) 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 directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on
behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions have been surrendered or disclosed as income during the year in the tax assessment under the
Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

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

M) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are
applicable to the Company during the period and hence reporting under this clause is applicable.

Note: 42 - Events Occurring after the Balance Sheet Date

The company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for recognition and/or reporting of any of these events and
transactions in the financial statements. There are no subsequent events to be recognized or reported that are not
already disclosed.

Note: 43 - Additional Regulatory Information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and
Intangible assets.

D) The Company has granted loans and advances in the nature of loans to Promoters, Directors, Key Managerial
Personnel (KMPs), and/or their related parties (as defined under the Companies Act, 2013), either severally or
jointly with any other person, which were outstanding as at 31 March 2026.

(ii) Without specifying any terms or period of repayment - NIL

E) No proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

F) The company is not declared wilful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

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

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of
the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 1: The Company undertakes the following activities in the nature of Corporate social responsibility (CSR):

a. Promoting education, including special education and employment enhancing vocational skills, especially
among children, women, and elderly, contribution to COVID relief program, PM cares fund.

b. Promotion of health care, including preventive health care and sanitation.

c. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare,
agroforestry, conservation of natural resources.

Note: 44 -

Previous year’s figures have been regrouped, reclassified wherever necessary to correspond with the current year
classification/disclosure.

A Current Ratio (In Times)

During the year, there was a significant increase in current assets, while current liabilities increased at a
comparatively lower rate. The sharp rise in assets, mainly driven by higher receivables and cash balances, resulted
in a substantial improvement in liquidity, leading to an increase in the current ratio from 3.49 to 7.28 times.

B Debt-Equity Ratio (In Times)

During the year, shareholders’ equity increased significantly, while total debt increased marginally. As equity
grew at a much higher rate than debt, the debt-equity ratio declined from 0.03 to 0.01 times.

C Debt Service Coverage Ratio (In Times)

The increase in debt servicing obligations, including interest and principal repayments, resulted in a decline in the
debt service coverage ratio from 930.47 to 411.44 times.

E Trade Receivables Turnover Ratio (In Times)

During the year, net credit sales increased moderately; however, receivables increased significantly. As receivables
grew disproportionately higher than sales, the trade receivables turnover ratio declined from 10.56 to 2.87 times,
indicating relatively slower collection efficiency.

G Net Capital Turnover Ratio (In Times)

During the year, revenue from operations increased marginally; however, working capital increased substantially,
primarily due to higher receivables and other current assets. As working capital grew faster than revenue, the net
capital turnover ratio declined from 1.95 to 0.52 times.

I Return on Capital Employed (In %)

During the year, capital employed increased significantly, primarily due to growth in shareholders’ funds, while
EBIT declined marginally. As the increase in capital employed was substantially higher than the change in
earnings, the Return on Capital Employed decreased from 56.82% to 12.62%.

J Interest Coverage Ratio (In Times)

During the year, operating earnings remained relatively stable; however, finance costs increased significantly.
The sharp increase in finance cost led to a substantial decline in the interest coverage ratio from 7,983.09 to
353.86 times.

K Return on Net Worth (In %)

During the year, net profit decreased marginally, while net worth increased significantly. The substantial increase
in the equity base resulted in dilution of returns, leading to a decline in return on net worth from 43.61% to 9.32%.

M Return on Investment (In %)

During the year, invested funds increased significantly, while income generated from investments increased at a
lower rate. As the investment base expanded faster than the returns generated, the return on investment declined
from 7.96% to 3.85%.

1.3.21. Provisions, Contingent Liabilities

Provisions are recognized when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits
will be required to settle the obligation and a
reliable estimate can be made of the amount of
the obligation. If the effect of the time value of
money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
Disclosure of contingent liability is made when
there is a 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 embodying
economic benefits will be required to settle or a
reliable estimate of amount cannot be made.

1.3.22. Events after Reporting Date

Where events occurring after the Balance Sheet
date provide evidence of condition that existed
at the end of reporting period, the impact of such
events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.

1.3.23. Non - Current Assets Held For Sales
Non-current assets are classified as held for
sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use and sale is considered
highly probable.

A sale is considered as highly probable when
decision has been made to sell, assets are available
for immediate sale in its present condition, assets
are being actively marketed and sale has been
agreed or is expected to be concluded within 12
months of the date of classification.

Non-current assets held for sale are neither
depreciated nor amortized.

Assets and liabilities classified as held for sale are
measured at the lower of their carrying amount
and fair value less cost of sale and are presented
separately in the Balance Sheet.

1.3.24. Cash Flows Statement

Cash Flows Statements are reported using the

method set out in the Ind AS - 7, "Cash Flow
Statements", whereby the Net Profit/(Loss) before
tax is adjusted for the effects of the transactions
of a Non-Cash nature, any deferrals or accrual of
past or future operating cash receipts or payments
and item of income or expenses associated with
investing or financing cash flows. The cash flows
from operating, investing and financing activities
of the Company are segregated.

1.3.25. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on
hand, cash at banks, short-term deposits and
short-term, highly liquid investments that are
readily convertible to known amounts of cash
and which are subject to an insignificant risk of
changes in value.

1.3.26. 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. MCA
has notified Ind AS-117 - Insurance Contracts and
amendments to Ind AS-116 - Leases, relating to
sale and leaseback transactions, applicable to the
Company w.e.f. 01 April, 2024. The Company has
reviewed the new pronouncements and based on
its evaluation has determined that it does not have
any significant impact in its financial statements.

1.4 Critical Accounting Judgments and Key Sources of
Estimation Uncertainty:

The preparation of the Company’s Financial Statements
requires management to make judgment, estimates
and assumptions that affect the reported amount
of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in next financial
years.

1.4.1. Income Tax

The Company’s tax jurisdiction is in India.
Significant judgments are involved in estimating
budgeted profits for the purpose of paying
advance tax, determining the income tax
provisions, including the amount expected to be
paid/recovered for uncertain.

1.4.2. Property Plant and Equipment/Intangible Assets
Estimates are involved in determining the cost

attributable to bringing the assets to the location
and condition necessary for it to be capable
of operating in the manner intended by the
management. Property, Plant and Equipment/
Intangible Assets are depreciated/amortized over
their estimated useful life, after taking into account
estimated residual value. Management reviews
the estimated useful life and residual values of the
assets annually in order to determine the amount
of depreciation/amortization to be recorded
during any reporting period. The useful life and
residual values are based on the Company’s
historical experience with similar assets and take
into account anticipated technological changes.
The depreciation/amortization for future periods
is revised if there are significant changes from
previous estimates.

1.4.3. Defined Benefits Obligations

The costs of providing Gratuity and other post¬
employment benefits are charged to the Statement
of Profit and Loss in accordance with Ind AS - 19,
"Employee Benefits" over the period during which
benefit is derived from the employees’ services. It
is determined by using the Actuarial Valuation and
assessed on the basis of assumptions selected
by the management. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These assumptions include salary escalation rate,
discount rates, expected rate of return on assets
and mortality rates. Due to complexities involved
in the valuation and its long term in nature, a
defined benefit obligation is highly sensitive to
change in these assumptions. All assumptions
are reviewed at each balance sheet date.

1.4.4. Fair value measurements of Financial
Instruments

When the fair values of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in
active markets, their fair value is measured using
valuation techniques, including the discounted
cash flow model, which involve various judgments
and assumptions.

1.4.5. Recoverability of Trade Receivables

Judgments are required in assessing the
recoverability of overdue trade receivables and
determining whether a provision against those
receivables is required. Factors considered include
the credit rating of the counterparty, the amount
and timing of anticipated future payments and

any possible actions that can be taken to mitigate
the risk of non-payment.

1.4.6. Provisions

The timing of recognition and quantification of
the liability (including litigations) requires the
application of judgment to existing facts and
circumstances, which can be subject to change.
The carrying amounts of provisions and liabilities
are reviewed regularly and revised to take account
of changing facts and circumstances.

1.4.7. Impairment of Financial and Non - Financial
Assets

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

In case of non-financial assets company
estimates asset’s recoverable amount, which

is higher of an asset’s or Cash Generating Units
(CGU’s) fair value less costs of disposal and its
value in use

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

1.4.8. Recognition of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are recognized
for deductible temporary differences and
unused tax losses for which there is probability
of utilization against the future taxable profit.
The Company uses judgment to determine the
amount of deferred tax that can be recognized,
based upon the likely timing and the level of future
taxable profits and business developments.

(iii) Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other
regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the
above benefit plans which are as follows:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a
rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of
the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is
independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded
status if there are significant changes in the discount rate during the inter- valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign/retire from the Company there can be strain on the cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects
the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the
plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and
hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies
to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognized immediately in the year when any such amendment is
effective.

QOOSQQ Financial Instruments

Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital
expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations.
The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents, other balances
with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors
of the Company. The general conditions for compliance with the requirements for proper and future-oriented risk management
within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff
to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk
management specify risk management processes, compulsory limitations, and the application of financial instruments. The
risk management system aims to identify, assess, mitigate the risks in order to minimize the potential adverse effect on the
Company''s financial performance.

The following disclosures summarize the Company''s exposure to the financial risks and the information regarding use of
derivatives employed to manage the exposures to such risks. Quantitative Sensitivity Analysis has been provided to reflect
the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of the
Company.

(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying
values as the management has assessed that there is no significant movement in factor such as discount rates, interest
rates, credit risk from the date of the transition. The fair values are assessed by the management using Level 3 inputs.

(***) The financial instruments measured at FVTPL represents current investments and derivative assets having been
valued using level 2 valuation hierarchy.

Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on
the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for
identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market.

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;
and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in
whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data.

B. Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market Risk comprises three types of Risk: "Interest Rate Risk, Currency Risk and Other Price Risk".
Financial instrument affected by the Market Risk includes loans and borrowings in foreign as well as domestic currency,
retention money related to capital expenditures, trade and other payables.

(a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because
of changes in market interest rates. An upward movement in the interest rate would adversely affect the borrowing
cost of the Company. The Company is exposed to long term and short - term borrowings. The Company manages
interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to
maintain an appropriate balance. The Company has not used any interest rate derivatives.

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to
credit risk is influenced mainly by cash and cash equivalents, trade receivables and other Financial assets measured at
amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates
this information into its credit risk controls.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed
for each class of financial instruments with different characteristics. The Company assigns the following credit ratings
to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the
counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are
based on actual credit loss experience and considering differences between current and historical economic conditions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks
and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities , Loans to staff
and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability
of such amounts continuously, while at the same time internal control system in place ensure the amounts are
within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the
Company operates, a default on a financial asset is considered when the counter party fails to make payments within
the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience
and considering differences between current and historical economic conditions. Assets are written off when there
is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the
Company. The Company continues to engage with parties whose balances are written off and attempts to enforce
repayment. Recoveries made are recognized in statement of profit and loss.

(a) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a
simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments
associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may
result from an inability to sell a financial asset quickly at close to its fair value. Management monitors rolling forecasts
of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company
takes into account the liquidity of the market in which the entity operates.

E Capital Management

The Company''s capital management objectives are to ensure the Company''s ability to continue as a going concern, to
provide an adequate return to share holders.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as
presented on the face of balance sheet. Management assesses the Company''s capital requirements in order to maintain
an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination
levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to
it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain
or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, or sell assets to reduce debt.

QOtSOS Balance confirmation of Receivables

Confirmation letters have not been obtained from all the parties in respect of Trade Receivable, Other Non- Current Assets and
Other Current Assets. Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent
adjustments, if any.

000903 Balance Confirmation of Payables

Confirmation letters have not been obtained from all the parties in respect of Trade Payable and other current liabilities.
Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

000903 Events occurring after the Balance sheet Date

The Group evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the
financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the
financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.

OoCS^5 Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease reements
are duly executed in favor of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on
31 March, 2025:

(ii) without specifying any terms or period of repayment - NIL

E) No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

F) The Company is not declared willful defaulter by any bank or financial institution or other lender.

G) The Company has not undertaken any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

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

I) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Company or
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

J) 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 directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding
Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income
Tax Act, 1961. There are no such previously unrecorded income or related assets.

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

M) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are applicable to
the Company during the period and hence reporting under this clause is applicable.

Note 46 Previous year’s figures have been regrouped, reclassified wherever necessary to correspond with the current year
classification/disclosure.

EEluEH First Time Adoption of Indian Accounting Standards (‘Ind AS'')

These are the Company’s first financial statements prepared in accordance with Ind AS.

For all period up to and including the year 31 March, 2024, the Company had prepared its financial statements in accordance with
the Accounting Standards notified under Section 133 of The Companies Act, 2013, read together with Rule 7 of the Companies
(Accounts) Rules, 2014 ("Previous GAAP"). For the year ended on 31 March, 2025 prepared and presented in accordance with
the Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015 in accordance with
the accounting policies as set out by the Company in Note No. 1.

The Accounting Policies as set out in Note No. 1 have been applied in preparing its financial statements for the year ended
31 March, 2025 including the Comparative information for the year ended on 31 March, 2024 and the Opening Ind AS Balance
Sheet on the date of transition i.e., 01 April, 2023.

In preparing its Ind AS Balance Sheet as at 01 April, 2023 and in preparing the Comparative information for the period ended
31 March, 2024, the Company has adjusted amounts reported previously in financial statements prepared in accordance
with Previous GAAP This note explains the principal adjustments made by the Company in restating its financial statements
prepared under Previous GAAP for the followings:

a) Balance Sheet as at 01 April, 2023 (Transition Date);

b) Balance Sheet as at 31 March, 2024;

c) Statement of Profit and Loss for the year ended on 31 March, 2024; and

d) Statement of Cash Flows for the year ended 31 March, 2024.

Ind AS 101 - First Time Adoption of Indian Accounting Standard, allow the first-time adopters, exemptions from the retrospective
application and exemption of certain requirements of the Other Ind AS. The Company has availed the following exemptions as
per Ind AS 101.

A. Ind AS Optional Exemptions:

1) Deemed cost of property, Plant and equipment and intangible Assets

The Company has elected to consider the Carrying Value of all its Property, Plants and Equipment’s (PPE) and Intangible
Assets recognized in the financial statements prepared under Previous GAAP and use the same as Deemed Cost in the
Opening Ind AS Financial Statements.

2) Leases:

The Company has elected to measure the right of use assets at the date of transition as if Ind AS 116 had been applied
since the commencement date of the lease, but discounted using the lessee’s incremental borrowing rate at the date of
transition to Ind AS. Further the following expedients were used on transition to Ind AS.:

- the use of single discount rate to portfolio of leases with reasonably similar Characteristics.

- the accounting for operating leases with a remaining lease of less than 12 months as on transition date as short
term leases.

A. Ind AS Mandatory Exceptions
1) Estimates:

An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimate made for
the same date in accordance with Previous GAAP (after adjustment to affect any difference in accounting policies) unless
there is objective evidence that those estimates were in error. Ind AS estimates as at 01 April, 2023 are consistent with the
estimates as at the same date made in conformity with Previous GAAP. The Company made estimates for following items
in accordance with Ind AS at the date of transition as there were not required under previous GAAP.

• The Company has applied modified retrospective approach to all leases contract existing as at 01 April, 2023 under
Ind As 116

2) Classification and measurement of financial assets and liabilities:

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS
109 are met based on facts and circumstances existing as on date of transition. Financial Assets can be measured
using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and
circumstance existing at the date of transition and if it is impracticable to assess elements of modified time value of
money i.e., use of effective interest method, fair value of financial assets at the date of transition shall be the new carrying
amount of that asset. The measurement exemption applies for financial liabilities as well.

Footnotes:

1 Provision of Expected Credit Loss and impairment loss on trade receivable

Under previous GAAP, provisions were made for specific receivables if collection was doubtful. Under Ind AS 109, the
Company has applied expected credit loss model for recognizing impairment of financial assets. Under expected
credit loss model, the Company has adopted simplified approach (provision is made on the basis of provision matrix).
The Company has recognized the amount of expected credit losses (or reversal) in statement of profit or loss,
which is required to adjust the closing balances of loss allowance at the reporting date.

2 Deferred Tax Adjustments:

Tax adjustments include deferrred tax impact on account of differences between previous GAAP
and Ind AS which mainly includes expected credit loss allowance, change in fair value of non¬
current investments classified through OCI, provision for employee benefits and written off expenses.
Further under Ind AS, the Company has also recognized deferred tax asset on previously carried forward business
losses and unabsorbed depreciation.

3 Remeasurement of post employment benefit obligations

As per Ind AS, remeasurement of defined benefit plans have been disclosed under ''Other Comprehensive Income"
(OCI), which was being debited to statement of profit and loss under previous GAAP. The impact of tax on the same
is also adjusted to "Other Comprehensive Income" only.

4 Adjustments on account of leasehold assets:

Under Ind-AS, the Company is required to recognize ROU assets and lease obligations for the assets taken under
finance lease by measuring present value of the lease payments to be made over the period of lease.

The ROU assets are amortized over the period of lease as per Ind AS 16 ""Property, Plant & Equipment"". Amortization
costs are charged to Statement of Profit & loss. At every year-end, the amount of lease liabilities is increased to
reflect the accretion of interest and reduced for the lease payments made. These interest costs are charged to
Statement of Profit & Loss. Related rental expenses recognized under previous GAAP need to be reversed to match
the lease liabilities.

5 Adjustment in respect of Prior Period Errors

Certain restated adjustments were related to errors made under previous GAAP and not related to transition to Ind-
AS which includes provisioning of unrecognized expenses, reversal of prepayment charges, written off expenses etc.
The same along with tax impact thereon have been rectified at the time of preparing restated financial information
and disclosed separately.

A Debt-Equity Ratio (in times)

During the financial year, Other equity increased and also Short term borrowings. Because short-term debt is due within
one year, it increases total liabilities sharply relative to the equity base, due to which there is a higher growth in debt
Equity ratio from 0 times to 0.03 times.

B Debt Service Coverage Ratio(in times)

Debt Service Coverage Ratio increase due to increase in earning available for debt service in FY 2024-25 as compare to
previous year.

C Inventory Turnover Ratio ( In times)

During the year, there is modest decrease in Cost of goods sold relative to a more significant reduction in average
inventory , improving working capital efficiency . Thus, inventory turnover ratio eased from 2.76 to 2.00 times.

D Trade Receivables turnover ratio (In times)

During the year , Net credit sales increased and average receivables balance increased by a larger poportion, which
resulted in the trade receivables turnover ratio easing from 144.58 to 10.56 times.

E Net capital turnover ratio (In times)

During the year, Revenue from operations increased and Higher trade receivables and cash balances boosted net working
capital . But, trade receivables and cash grew faster than sales, So net capital turnover eased from 3.02 to 1.95 times.

F Interest Coverage Ratio (In Times)

During the year , Long term borrowings reduced leading to lower interest expense, while operating earnings (EBIT)
increased due to which Interest coverage ratio improved.

G Return on investment (in %)

During the year, invested funds grew and investment income increased, Hence, Return on investment increased from
5.08% to 7.96% due to the Company utilizing additional capital into higher-yielding investments, resulting in both a larger
investment base and a better rate of return.

As per report of even date For and on the Behalf of the Board

Network People Services Technologies Ltd.

For, Keyur Shah & Co. Deepak Chand Thakur Ashish Aggarwal

F.R. No.: 141173W Managing Director Managing Director

Chartered Accountant DIN: 06713945 DIN: 06986812

Keyur Shah Inder Kumar Naugai Chetna Chawla

Proprietor Chief Financial Officer Company Secretary

M. No. 153774 M.No.: A64291

Place:- Ahmedabad Place:- Mumbai

Date :- 27 May, 2025 Date :- 27 May, 2025

1.14) Provisions and Contingencies

A provision is recognized when the Company has present obligations as a result of past event, it is probable that an outflow of resources will be required to settle the obligations, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimates required to settle the obligations at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect a current best estimate.

All known liabilities wherever material are provided for. Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.

1.15) Investment

Investments are classified into current investments and non-current investments. Current investments, i.e. investments that are readily realizable and intended to be held for not more than a year are valued at lower of cost and net realizable value. Any reduction in the carrying amount or any reversal of such provision towards reductions are charged or credited to the Statement of Profit and Loss.

Non-current investments are stated at cost. Provision for diminution in the value of these investments is made only if such decline is other than temporary, in the opinion of the management.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of Profit and Loss

1.16) Cash and Cash Equivalent

Cash and Cash equivalents includes cash & cheque in hand, bank balance, demand deposits with bank and other short term highly liquid investment where original maturity is less than Six months.

1.17) Cash Flow Statement

Cash Flow are reported using the indirect method where by the profit before tax is adjusted for the effect of the transaction of the non cash nature, any deferrals or

Note: 34 Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease Agreements are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31 March ''24:

(i) repayable on demand; or

(ii) without specifying any terms or period of repayment"

E) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

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

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

J) 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax

Act, 1961. There are no such previously unrecorded income or related assets.

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

M) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are applicable to the

Company during the period and hence reporting under this clause is applicable.

A Current Ratio (In times)

As compared to Previous Financial Year 2022-23, in current Financial Year 2023-24, Company had Higher Investments in Fixed Deposits. Due to This, Current Ratio decreased from 3.69 times to 2.74 times.

B Debt-Equity Ratio (in times)

In Current Year, Company has issued Equity Share alongwith decrease in Long Term Borrowings, resulting into decrease of Debt - Equity Ratio.

C Debt Service Coverage Ratio(in times)

The Earnings of the Company has been increased in Current Year as compared to Previous Year. On account of this, Debts Service Coverage ratio increased from 122.82 times to 461.82 times.

D Return on Equity Ratio (in %)

Return on Equity Ratio has increased from 25.76 % to 62.04 %, as the Net Profit of the Company has significantly Increased in Current Year.

E Inventory Turnover Ratio ( In times)

In the FY 2023-24, Cost of Goods sold has been increased as compared to Last Year, due to variance in Change in WIP. However Average Inventory has been decreased in current year resulting into increase in Inventory Turnover from 0.90 times to 2.80 times.

F Trade Receivables Turnover Ratio (In times)

Due to substantial rise in Sales Revenue as compared to previous year, Trade Recievable Turnover increased by 883.08%.

I Net Profit Ratio (in %)

Sales Revenue has increased in Current Year. However, Net Profit has been increased with greater proportion. Hence, Net Profit Ratio increased by 31%.

J Return on Capital Employed (in %)

Due to major increase in EBIT in Current Year as compared to Previous Year, Return on Capital Employed Increased.

As per our attached report of even date For and on the Behalf of the Board

For, Keyur Shah & Co. Sd/- Sd/-

Chartered Accountants Deepak Chand Thakur Ashish Aggarwal

FRN No.: 141173W Director Director

DIN: 06713945 DIN: 06986812

Sd/- Sd/-

Keyur B. Shah Inder Kumar Naugai

Proprietor Chief Financial Officer

M.No.: 153774 PAN:- ADXPN1812F

Place: Ahmedabad Place: Mumbai

Date: 24^th April, ''24 Date: 24^th April, ''24

PROVISIONS AND CONTINGENCIES

A provision is recognized when the Company has present obligations as a result of past
event, it is probable that an outflow of resources will be required to settle the obligations, in
respect of which reliable estimate can be made. Provisions are not discounted to its present value
and are determined based on the best estimates required to settle the obligations at the balance
sheet date. These are reviewed at each balance sheet date and adjusted to reflect a current best
estimate.

All known liabilities wherever material are provided for. Liabilities which are material and whose
future outcome cannot be ascertained with reasonable certainty are treated as contingent and
disclosed by way of notes to the accounts.

1.15) INVESTMENT

Investments are classified into current investments and non-current investments. Current
investments, i.e. investments that are readily realizable and intended to be held for not more than a
year are valued at lower of cost and net realizable value. Any reduction in the carrying amount or any
reversal of such provision towards reductions are charged or credited to the Statement of
Profit and Loss.

Non-current investments are stated at cost. Provision for diminution in the value of these
investments is made only if such decline is other than temporary, in the opinion of the management.

On disposal of investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of Profit and Loss.

1.16) CASH AND CASH EQUIVALENT

Cash and Cash equivalents includes cash & cheque in hand, bank balance, demand deposits with
bank and other short term highly liquid investment where original maturity is less than Six months.

1.17) CASH FLOW STATEMENT

Cash Flow are reported using the indirect method where by the profit before tax is adjusted for the
effect of the transaction of the non-cash nature, any deferrals or accruals of past and future operating
cash receipts or payments and items of income or expenses associated with investing or financing
cash flow. The cash flows from operating, investing and financing activities of the company
are segregated.