Notes to Accounts of Prabhat Technologies (India) Ltd.

Mar 31, 2024

The Company is exposed to market risk, credit risk and liquidity risk.

Credit risk

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed and arises principally from the
Company''s receivables from customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.
Trade receivables

For trade receivables "Ind AS 109 Financial Instruments" permits the simplified approach, which requires expected lifetime losses to be
recognized from initial recognition of the receivables. In order to determine the expected credit losses for the portfolio, company have to
arrive at a provision matrix. This provision matrix is based on its historical observed default rates, adjusted for forward looking estimates. At
every reporting date, the historical observed default rates are updated.

However, The company has not observed any such default rates in the past and as a result it could not arrive at the provision matrix for the
portfolio.

Market risk

Market risk is the risk that the fair value of the future cash flows of the financials instruments will fluctuate because of changes in market prices. Market risk comprises
three type of risk: Currency risk, interest risk, other price risk, such as equity price and commodity risk. The value of financial instrument may change as a result of
changes in the interest rate, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Financial instrument affected by market risk
include loans and borrowing, deposits and investments.

Interest rate risk

Company''s interest rate risk arises from borrowings. The Company adopts a policy of ensuring that maximum of its interest rate risk exposure is at a fixed rate. The
interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

The Company''s interest-bearing financial instruments is reported as below:

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the value of
shareholder.

Ind AS 109-Financial Instruments (Classification and measurement of financial assets)

Classification and measurement shall be made on the basis of facts and circumstances that exist at the date of transition to Ind AS. The
Company has evaluated the facts and circumstances existing on the date of transition to Ind AS for the purpose of classification and
measurement of financial assets and accordingly has classified and measured the financial assets on the date of transition.

Ind AS 16 Property, Plant and Equipment and Ind AS 38 Intangible Assets

If there is no change in the functional currency an entity may elect to measure an item of property, plant and equipment and intangible assets
at the date of transition to Ind AS at its fair value and use that fair value as deemed cost at that date or may measure the items of property,
plant and equipment and intangible assets by applying Ind AS retrospectively or use the carrying amount under previous GAAP on the date
of transition as deemed cost.

The Company has elected to continue with the carrying amount for all of its property, plant and equipment and intangible assets, measured
as per previous GAAP and use that as its deemed cost as at the date of transition to Ind AS .

Segmental information

As the Company''s business activities fall within a single primary business segment, the disclosure requirements of Ind AS 108 in this regard
are not applicable.

Classification and presentation of assets and liabilities

Under IGAAP, the Company was not required to present its assets and liabilities bifurcated between financial assets/financial liabilities and
non-financial assets/ non-financial liabilities. Under Ind AS, the Company is required to present its assets and liabilities bifurcated between
financial assets/ financial liabilities and non-financial assets/ non-financial liabilities. Accordingly, the Company has classified and presented
the assets and liabilities.

In the opinion of the management, the current assets, loans & advances have been stated at realizable value. Provision for all the known
liabilities is adequate and not in excess of the amount reasonably necessary.

Additional Information as required by para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already
disclosed above) are either nil or not applicable to the company.

These financial statements have been prepared in the format prescribed by the revised schedule III to the Companies Act, 2013. Previous
period figures are regrouped or rearranged wherever considered necessary.

Subsequent events

The Company evaluated all events and transactions that occurred after March 31, 2024, the date on which the financial statements are issued.
Based on the evaluation, the Company has identified events or transactions that would require recognition or disclosure in the financial
statements. The same has been disclosed in Note No. 31 & 32.3

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Mar 31, 2018

1. Corporate information

Prabhat Telecom (India) Limited ("the Company") {CIN: L72100MH2007PlC169551} was incorporated on 02^nd April 2007 at Mumbai, India. The company is engaged in EMS, designing, development and distribution of mobile phones & accessories.

2. Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies have been consistently applied by the Company.

b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

3 Details Of Dues To Micro And Small Enterprises As Defined Under The MSMED Act, 2006

The identification of Micro, Small and Medium enterprises is based on the management''s knowledge of their status. The Company has not received any intimation from suppliers regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006".