Notes to Accounts of Sylph Industries Ltd.

Mar 31, 2025

3.5 PROVISIONS

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the liability.

Contingent liabilities are not recognised but are disclosed by way of notes to the financial statements, after
careful evaluation by the management of the facts and legal aspects of each matter involved. Contingent
assets are neither recognised nor disclosed in the financial statements.

Contingent liabilities are assessed continually to determine whether an outflow of resources embodying the
economic benefit has become probable. If it becomes probable that an outflow of future economic benefits
will be required for an item previously dealt with as contingent liability, a provision is recognised in the
financial statements of the period in which the change in probability occurs.

3.6 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized
as part of the cost of such assets to the extent they relate to the period till such assets are ready to be
put to use, while other borrowing costs are recognized as expenses in the year in which they are incurred. A
qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

3.7 INVENTORIES

Inventories other than scrap and goods in transit have been valued at lower of cost and net realisable
value. The cost is ascertained as below:-

i) Finished goods are valued at lower of cost or net realizable value on first in first out (FIFO) basis.

ii) Scrap is valued at the net realisable value.

Where, net realisable value represents the estimated selling price for inventories less all estimated costs of
completion and costs necessary to make the sale.

3.8 EMPLOYEE BENEFITS

(i). Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange of services
rendered by employees is recognised during the period when the employee renders the services. These
benefits include salaries, bonus and performance incentives.

3.9 FOREIGN CURRENCY TRANSACTIONS

In preparing the financial statements of the Company, transactions in currencies other than the
company’s functional currency i.e. foreign currencies are recognised at the rates of exchange prevailing at
the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in
terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the statement of profit or loss in the period in
which they arise.

Foreign currency derivatives are initially recognised at fair value at the date the derivative contracts are
entered into and are subsequently re-measured 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.

3.10 TAXATION

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before
tax as reported in the statement of profit and loss because of items of income or expense that are taxable or
deductible in other years and items that are never taxable or deductible. The Company’s current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be
utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.

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

Current and deferred tax for the year

Current and deferred tax are recognised in the Statement of Profit and Loss, except when they relate to
items that are recognised in other comprehensive income or directly in equity, in which case, the current
and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

3.11 REVENUE RECOGNITION

a) Sales are recognised on dispatch of goods.

b) Interest income is recognized using effective interest method.

c) Commision are Recognised on dispatch of goods.

3.12 OPERATING SEGMENT

Operating segments are reported in the manner consistent with the internal reporting provided to the chief
operating decision maker (CODM). The Managing Director of Sylph Technologies Limited has been identified
as CODM and he is responsible for allocating the resources, assess the financial performance and position of
the Company and makes strategic decisions.

The Company has identified one reportable segment "Trading of stainless steels" based on the information
reviewed by the CODM. Refer note 38 for the Segment information presented.

3.13 CASH FLOW STATEMENT

The Cash Flow Statement is prepared by the indirect method set out in Indian Accounting Standard-7 on Cash
Flow Statements and presents cash flows by operating, investing and financing activities of the Company.
The Company considers all highly liquid financial instruments,which are readily convertible into cash, to be
cash equivalents.

3.14 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.The weighted
average number of equity shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares that have changed the
number of equity shares outstanding without a corresponding change in resources. For the purpose of
calculating diluted earnings per share, the net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.

3.15 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially measuredat fair value. Transaction costs that are directly
attributableto 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 of
the financial assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss.

3.16 FINANCIAL ASSETS

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair
value, depending on the classification of the financial assets.

For F H M S V & Co. By the Order of The Board

Chartered Accountants Sylph Technologies Limited

Sd/- Sd/-

Sd/- Vishal Mehra Nilesh jain

Partner Director Director

Membership No.169020 DIN: 09717741 DIN: 07785023

F.R.N. No. 0128276W
UDIN: 25169020BMHWVP2656
Place:- Rajkot
Date:- 30th May 2025

---

Mar 31, 2024

1. Terms/Rights attached to equity Shares

Equity Shares: The company has one class of equity shares having par value of Rs. 10 per share. Each share holder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of other reserves Securities Premium

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

Retained earnings are the profits/(loss) that a Company has earned to date, less any dividends or other distributions paid to investors.

Note 21 Other Statutory information

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

b There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.

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

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

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

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

ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

f The Company has notreceived 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 Group shall:

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

ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

The Company does not any transactions which are not recorded in the books of accounts that have 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)

^g

The company does not have any investments through more than two layers of investment companies as per section 2(87) (cd) h and section 186 of Companies Act, 2013.

---

Mar 31, 2014

1. General Information

The Registered Office of the company is situated at ST-4, Press House, 22 Press Complex, A.B Road, Indore.

Sylph is a leading software technology company in India, providing software development services & solutions with services such as outsourcing software development, web development, product development, strategy consulting, offshore software development, e-commerce for web and mobile enablement. We have a deep domain expertise, which we leverage to provide high quality solutions and services.

The Company has acquired rights for the Publication of a 25 year old Newspaper. Test run has been done and commercial operations started during the year.

2. (i) Terms/Rights attached to equity Shares

Equity Shares: The company has one class of equity shares having par value of Rs.10 per share. Each share holder is eligible for one vote per share held. In the event liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(ii) Preferential Allotment of convertible warrants : During the year company has issued Equity Warrants on Preferential basis to Non Promoters of Rs. 162.50 Lacs and to Promoter of Rs. 13.85 lacs.

3. Related Party Disclosures

In accordance with accounting standard 18 " Related Party Disclosure" issued by the Institute of Chartered Accountant of India, and notified under the Company''s Accounting Standard Rules, 2006 the names of the Related Parties and the relevant disclosure is as under: a) Name of the related party and description if relationship :

1 Key Managerial Persons

1. Rajesh Jain

2. Shantilal Jain

2 Relative of Key Managerial Persons

1. Jayshri Jain

4. Pursuant to accounting standard 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India, the company has reviewed its carrying cost of assets with value in use (determined based on future earnings ) and Net realizable value on an approximate basis. Based on such review, the management is of the view that in the current financial year, Provision for impairment of assets is not considered necessary.

5. Various items included under the head Current Assets, Loan & Advances, as well as Current Liabilities are subject to confirmation / reconciliation.

6. In the opinion of the Management, the value on realization of loans and advances, and other current assets will be at least equal to the amounts stated in the books of accounts, if realized in the ordinary course of the business.

7. Segment Reporting a) Business Segment :

(i) The segment reporting policies complies with the accounting policies adopted for preparation and presentation of financial statements of the company and in conformity with accounting standard-17 on segment reporting issued by ICAI.

(ii) The company operates in segments namely software development and share trading, News Paper Printing & Publishing During the period the company has operated only in segments i.e. software development News Paper Printing & Publishing. Hence the entire revenue and expenses pertains to this segment.

8. Contingent Liabilities & Commitments

Corporate guarantee given on behalf of Company Nil Nil

Any other contingent liability Nil Nil

9. These financial statements have been prepared in the format prescribed by the revised Schedule VI to the companies Act 1956. Previous period figures have been recasted/ restated to confirm to the current year. Figures have been rounded off to the nearest Rupee.

---

Mar 31, 2013

General Information

Sylph is a leading software technology company in India, providing software development services & solutions with services such as outsourcing software development, web development, product development, strategy consulting, o fshore software development, e-commerce fo r web and mobile enablement. We have a deep domain expertise, which we leverage to provide high quality solutions and services.

The Company has acquired rights fo r the Publication of a 25 year old Newspaper. Test run has been done and commercial operations will start during the coming year.

1(i) Terms/Rights attached to equity Shares

Equity Shares: The company has one class of equity shares having par value of Rs.10 per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. 3(iii) Convertible warrants : The amount of Rs.3489500 was outstanding on account of application money of Rs.2.50 per warrants out of which Company had a lloted 395800 warrants to Mr.Ghayansham Soni & 1000000 warrants to Mr.D.K.Agrawal. Against these outstanding convertible warrants of Mr.Ghanshyam Soni (395800) and Mr. D.K.Agarwal (1000000) the allotment money have been received before 30th June, 2012 and Shares have been a lloted on 2nd July, 2012.

2 Related Party Disclosures

In accordance with accounting standard 18 “ Related Party Disclosure” issued by the Institute of Chartered Accountant of India, and notified under the Company''s Accounting Standard Rules, 2006 the names of the Related Parties and the relevant disclosure is as under: a) Name of the related party and description if relationship :

1 Key Managerial Persons

1. Rajesh Jain

2. Shantilal Jain

2 Relative of Ke y Managerial Persons 1. Jayshree Jain

3 tandard 28 “ Impairment of Assets” issued by the Institute of Chartered he company has reviewed its carrying cost of assets with value in use ure earnings ) and Net realizable value on an approximate basis. Based on ment is of the view that in the current financial year, Provision fo r impairment ed necessary.

4 er the head Current Assets, Loan & Advances, as well as Current Liabilities on / reconciliation.

5 agement, the value on realization of loans and advances, and other current al to the amounts stated in the books of accounts, if realized in the ordinary

6 a) olicies complies with the accounting policies adopted fo r preparation and tatements of the company and in conformity with accounting standard-17 ed by ICAI.

b) Geographical Segment:

Since all the operations of the Company are conducted within India as such there is no separate reportable geographical segment.

7 These financial statements have been prepared in the format prescribed by the revised Schedule VI to the companies Act 1956. Previous period figures have been recasted/ restated to confirm to the current year. Figures have been rounded of to the nearest Rupee.

---

Mar 31, 2012

Note - 1

General Information

The Registered Office of the company is situated at ST-4, Press House, 22 Press Complex, A.B Road, Indore.

Sylph is a leading software technology company in India, providing software development services & solutions with services such as outsourcing software development, web development, product development, strategy consulting, offshore software development, e-commerce for web and mobile enablement. We have a deep domain expertise, which we leverage to provide high quality solutions and services.

2(ii) Terms/Rights attached to equity Shares

Equity Shares: The company has one class of equity shares having par value of Rs.10 per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3(iii) Convertible warrants : The amount of Rs.3489500 is outstanding on account of application money of Rs.2.50 per warrants out of warrants 395800 warrants to Mr.Ghayansham Soni & 1000000 warrants allotted to Mr.D.K.Agrawal.The company has issued and allotted 3000000 (thirty lakhs) convertible warrants on 04TH January,2011.at a price of Rs.10.each/-to Non-promoters individuals on preferential basis. The holders are entitled to exercise their option to convert the same into fully paid equity shares of 10 Rs.each/- per share at any time within the period of 18th months from the date of allotement.Out of which outstanding convertible warrants of Mr.Ghanshyam Soni is 395800 and 1000000 outstanding convertible warrants of Mr. D.K Agrarwal allotment money have been received before 30th june,2012.The company has converted 235000 convertible warrants at premium Rs. 2.60/- to promoters and 1604200 convertible warrants at par Rs 10/- at par to non promoters on 30th July, 2011 and 22nd March, 2012 respectively.

4 Related Party Disclosures

In accordance with accounting standard 18 " Related Party Disclosure" issued by the Institute of Chartered Accountant of India, and notified under the Company's Accounting Standard Rules, 2006 the names of the Related Parties and the relevant disclosure is as under:

a) Name of the related party and description if relationship :

1 Key Managerial Persons

1. Rajesh Jain

2. Jayshri Jain

2 Relative of Key Managerial Persons

1. Jayshri Jain

5 Pursuant to accounting standard 28 " Impairment of Assets" issued by the Institute of Chartered Accountants of India, the company has reviewed its carrying cost of assets with value in use (determined based on future earnings ) and Net realizable value on an approximate basis. Based on such review, the management is of the view that in the current financial year, Provision for impairment of assets is not considered necessary.

6 Various items included under the head Current Assets, Loan & Advances, as well as Current Liabilities are subject to confirmation / reconciliation.

7 In the opinion of the Management, the value on realization of loans and advances, and other current assets will be at least equal to the amounts stated in the books of accounts, if realized in the ordinary course of the business.

8 Segment Reporting a) Business Segment :

The segment reporting policies complies with the accounting policies adopted for preparation and presentation of financial statements of the company and in conformity with accounting standard-17 on segment reporting issued by ICAI.

b) The company operates in two segments namely software development and share trading. During the period the company has operated only in one segment i.e. software development. Hence the entire revenue and expenses pertains to this segment.

c) The assets and liabilities are also represent one segment i.e. software development only.

9 These financial statements have been prepared in the format prescribed by the revised Schedule VI to the companies Act 1956. Previous period figures have been recasted/ restated to confirm to the current period. Figures have been rounded off to the nearest Rupee.

---

Jun 30, 2010

1. Segment Reporting

a) Segment accounting policies

The segment reporting policies complies with the accounting policies adopted for preparation and presentation of financial statements of the company and in conformity with accounting standard-17 on segment reporting issued by ICAI.

b) The company operates in two segments namely software development and share trading. During the period the company has operated only in one segment i.e. software development. Hence the entire revenue and expenses pertains to this segment.

c) The assets and liabilities are also represent one segment i.e. software development only.

2. Related party disclosures:

The company has not transacted with any related party during the year except interest free loan taken from Mr. Rajesh Jain Director, balance as at 30.06.2010 is Rs. 43,21,000, (previous year Rs. 15,16,000).

3. CIF value of imports

The company has not made any imports during the period. (Previous year NIL)

4. Expenditure in foreign currency:

The company has not made any expenditure in foreign currency during the period. (Previous year NIL)

5. Earnings in foreign currency:

The company has made earnings in foreign currency of US $21607 during the year. (Previous year $39,153.71)

6. Dividend remittance in foreign currency

The company has not made any payment of dividend in foreign currency during the year (Previous year NIL)

7. Capital commitments and contingents liabilities:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided in the books of accounts is NIL. (Previous year NIL)

(b) The company does not have any contingent liabilities at the end of the period. (Previous year NIL)

8. Previous year figure have been regrouped / reclassified wherever necessary to make them comparable with the current period.