Notes to Accounts of Vijaya Diagnostic Centre Ltd.

Mar 31, 2025

K. Provision, contingent liabilities and
contingent assets

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. Expected future
operating losses are not provided for.

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. The unwinding of the
discount is recognised as finance costs.

The Company records a provision for decommissioning
costs. Decommissioning costs are provided at the
present value of expected costs to settle the obligation
using estimated cash flows and are recognized as part
of the cost of the particular asset. The cash flows are
discounted at a current pre-tax rate that reflects the
risks specific to the decommissioning liability. The
unwinding of the discount is expensed as incurred
and recognized in the statement of profit and loss
as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted
as appropriate.

Contingencies:

Provision in respect of loss/contingencies relating to
claims, litigations, assessments, fines and penalties are
recognised when it is probable that a liability has been
incurred and the amount can be estimated reliably.

Contingent liabilities and contingent assets:

Contingent liability is a possible obligation arising from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the entity or a present obligation that arises from past
events but is not recognized because it is not probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation or the
amount of the obligation cannot be measured with
sufficient reliability. The Company does not recognize
a contingent liability but discloses its existence in the
standalone financial statements.

Contingent asset is not recognised in standalone
financial statements since this may result in the
recognition of income that may never be realised.
However, when the realisation of income is virtually
certain, then the related asset is not a contingent asset
and is recognized.

Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.

L. Earnings per share

Basic Earnings per share

Basic Earnings Per Share (‘EPS’) is calculated by dividing
the profit attributable to the equity shareholders of the
Company by the weighted average number of equity
shares outstanding during the year.

Diluted Earnings per share

Diluted earnings per share is computed by dividing the
profit (considered in determination of basic earnings
per share) after considering the effect associated with
dilutive potential equity shares by the weighted average
number of equity shares considered for deriving basic
earnings per share adjusted for the weighted average
number of equity shares that would have been issued
upon conversion of all dilutive potential equity shares.

M. Exceptional items

The Company discloses certiain financial information
both including and excluding exceptional items. The
presentation of information excluding exceptional
items allows a better understanding of the underlying
operating performance of the Company and provides
consistency with the Company internal management
reporting. Exceptional items are identified by virtue of
either their size or nature so as to facilitate comparision
with prior periods and to assess underlying trends in
the financial performance of the Company.

N. Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows are segregated
into operating, investing and financing activites. The
Company considers all highly liquid investments that
are readily convertible to known amounts of cash to be
cash equivalents.

O. Cash and cash equivalents

Cash and cash equivalents in the balance sheet and
cash flow statement consists of cash on hand, deposits
held at call with financial institutions, other short¬
term, highly liquid investments with original maturities
less than three months which are readily convertible
to known amounts of cash and which are subject to
insignificant risk of changes in value.

P. Investments in subsidiaries

Investments in subsidiaries carried at cost less any
provision for impairment. Investments are reviewed
for impairment if events or changes in circumstances
indicate that the carrying amount may not be
recoverable.

Q. Dividend

The Company recognises a liability for any dividend
declared but not distributed at the end of the reporting
period, when the distribution is authorised and the
distribution is no longer at the discretion of the
Company on or before the end of the reporting period.

R. Events after reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end
of the 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.

S. Material accounting policy information

The Company adopted Disclosure of Accounting
Policies (Amendments to Ind AS 1) from April 01,
2023. Although the amendments did not result in any
changes in the accounting policies themselves, they
impacted the accounting policy information disclosed
in the financial statements.

The amendments require the disclosure of ''material''
rather than ''significant'' accounting policies. The
amendments also provide guidance on the application
of materiality to disclosure of accounting policies,
assisting entities to provide useful, entity-specific
accounting policy information that users need
to understand other information in the financial
statements.

T. Recent pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has 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. April 1, 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.

(iii) The Company does not have any capital work-in-progress which is overdue or has exceeded its cost compared
to its original plan and hence capital work-in-progress completion schedule is not applicable.

(iv) There are no CWIP which is temporarily suspended as at March 31, 2025 and March 31, 2024.

4(C) RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Company has elected not to apply the requirements of Ind AS 116 "Leases" to short-term leases of all assets
that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease
payments associated with these leases are recognized as an expense on a straight-line basis over the lease term
except inflation adjustment.

The Company uses the incremental borrowing rate to discount its lease payments. The rate applied is 8.50% p.a.

II. Other information

(i) The fair value of the investment property is ''1,920.00 (March 31, 2024 ''1,736.00), based on market
observable data. The Comapany has not engaged any registered valuer for determaining the above fair
value for the current year.

(ii) The Company has given the Investment property on operating lease. The Company has no restrictions on the
realisability of its investment property.

(iii) The Company''s investment property consist of land and building in Kolakta, West Bengal.

Provision for impairment

Investments are tested for impairment annually and when circumstances indicate that the carrying value may
be impaired. Impairment is determined by assessing the recoverable amount of each investment. When the
recoverable amount of the investment is less than its carrying amount, an impairment loss is recognised.

The recoverable amounts of the above investments have been assessed using a value-in-use model. Value in use
is generally calculated as the net present value of the projected post-tax cash flows plus a terminal value of the
business. Initially, a post-tax discount rate is applied to calculate the net present value of the post-tax cash flows.
Key assumptions upon which the Company has based its determinations of value-in-use include:

a) Estimated cash flows based on internal budgets and industry outlook for a period of five years and a terminal
growth rate thereafter.

b) The terminal value is arrived at by extrapolating the last forecasted year cash flows to perpetuity, using a
constant long-term growth rate. This long term growth rate takes into consideration external macroeconomic
sources of data.

c) The after tax discount rates used reflect the current market assessment of the risks specific to a CGU, the
discount rate is estimated based on the weighted average cost of capital (''WACC'') for respective CGU.

The Company believes that any reasonably possible change in the key assumptions on which a recoverable
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount
of the investment.

24. DISCLOSURE REQUIRED UNDER CLAUSE 22 OF MICRO, SMALL AND MEDIUM
ENTERPRISE DEVELOPMENT (''MSMED'') ACT, 2006

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008
which recommends that the Micro and Small Enterprises should mention in their correspondence with its
customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly,
the disclosure in respect of the amounts payable to such enterprises as at 31 March 2025 has been made in
the financial statements based on information received and available with the Company. Further in view of the
management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not
expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

25. DISCLOSURE AS PER SECTION 186 OF
THE COMPANIES ACT, 2013

The details of loans, guarantees and investments under
Section 186 of the Companies Act, 2013 read with the
Companies (Meetings of Board and its Powers) Rules,
2014 are as follows:

(i) Details of investments made are given in Note 6(a)

(ii) Details of the loans given by the Company is given
in Note 6(c)

26. OPERATING SEGMENTS

A. Basis for segmentation

An operating segment is a component of the Company
that engages in business activities from which it
may earn revenues and incur expenses, including

revenues and expenses that relate to transactions
with any of the Company’s other components, and
for which discrete financial information is available. All
operating segment''s results are reviewed regularly by
the Company’s Chairman and Managing Director to
make decisions about resources to be allocated to the
segments and assess their performance.

The Chief Operating Decision Maker ("CODM") who are
the Company''s Chairman and Managing Director who
evaluate the Company’s performance and allocates
resources based on an analysis of various performance
indicators at operational unit level and since there is
single operating segment, no segment disclosures of
the Company is presented. The Company’s operations
fall within a single business segment "Diagnostic
services”.

B. Geographical information

The Company operates within India and therefore there
are no assets or liabilities outside India.

C. Major customers

No single customer contributed more than 10% of the
Company''s revenues during the year ended March 31,
2025 and March 31, 2024.

27. PURCHASE COMMITMENTS TOWARDS
REAGENT KITS

The Company has entered into agreements with
certain suppliers for purchase of reagents which
include the right to use equipment during the life of
the agreement in addition to purchase of minimum
committed quantities of reagents every year. These
agreements are in substance, cost of reagents and
services arrangements provided by the supplier on an
annual basis andthe minimum purchase commitments
therein do not result in more than insignificant penalty
on termination of the agreement. The cost of reagents
which includes the cost of rental of the equipment is
recorded as cost of material consumed.

28. EMPLOYEE BENEFIT PLANS

The Company has following post employment benefit
plans:

(a) Defined contribution plans

Contributions were made to provident fund
and Employees'' State Insurance in India for the

employees of the Company as per the regulations.
These contributions are made to registered funds
administered by the Government of India. The
obligation of the Company is limited to the respective
amount contributed and it has no further contractual
nor any other constructive obligation. The expense
recognised during the period in the standalone
statement of profit and loss towards defined
contribution plans is ''472.36 (March 31, 2024:
''421.24).

(b) Defined benefit plan

The Company provides for Gratuity for employees
in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of
5 years are eligible for Gratuity. The amount of Gratuity
payable on retirement/termination is the employee''s
last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the
number of years of service or part thereof in excess of
six months, restricted to a sum of ''20.

The Gratuity plan is administered through a Gratuity
Scheme with Life Insurance Corporation of India (''LIC'').
The Company does not fully fund the liability and
maintains a target level of funding to be maintained
over a period of time based on estimations of expected
gratuity payments.

This defined benefit plans expose the Company to
actuarial risks, such as longevity risk, interest rate risk
and market (investment) risk.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at the
balance sheet date for the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority,
promotion and other relevant factors.

Attrition rate: Represents the Company''s best estimate of employee turnover in future (other than on account of
retirement, death or disablement) determined considering various factors such as nature of business, retention
policy, industry factors, past experience, etc.

29. SHARE BASED PAYMENTS

VDCL Employee Stock Option Plan 2018
“The Plan" or "ESOP 2018”

The shareholders of the Company approved "VDCPL
Employee Stock Option Plan 2018 (ESOP 2018)" at the
Extraordinary General Meeting held on May 03, 2018
and subsecquently it was amended at the extraordinary
genaral meeting held on March 25, 2021 and August
26, 2021 to grant a maximum of 1,625,000 options
to specified categories of employees of the Company.
Each option granted and vested under ESOP 2018
shall entitle the holder to acquire one equity share of
face value of ''1 each of the Company.

The Plan consists of six schemes with various
vesting periods from the grant date subject to
satisfaction of vesting conditions. The method of
settlement under the Plan is by issue of equity
shares of the Company and there are no cash
settlement alternatives for the employees.

Vested options can be exercised over a period of ten
years from the grant date. The Exercise Price is the fair
value of the equity share as on the date of the grant
or as decided by the Nomination and remuneration
committee. The time and performance based
options under Scheme 1, 2, 3, 4, 5 and 6 become
vested as below:

The time and performance based options under
Scheme 1 become eligible on an annual basis at
30%, 30%, 20% and 20% over a period of four years
and vesting starts from second year. The time and
performance based options under Scheme 2 become
eligible on an annual bais at 25%, 25%, 25% and 25%
over a period of four years and vesting starts from third
year. The time based options under Scheme 3 become
eligible on an annual basis at 25%, 25%, 25% and 25%
over a period of four years and vesting starts from third
year. The time based options under Scheme 4 become
eligible on annual basis at 100% and vest on second
year from the grant date. The time based options under
Scheme 5 become eligible and vest on an annual basis
at 25%, 25%, and 50% over a period of three years. The
time based options under Scheme 6 become eligible
on an annual basis at 0%, 25%, 50% and 25% over a
period of four years and the performace based options
under Scheme 6 become eligible on an annual basis
at 25%, 25%, 25% and 25% over a period of four years.

The fair value of equity share options is estimated at
the date of grant using Black- Scholes model, taking
into account the terms and conditions upon which the
share options were granted. Based on the historical
trends, 50% of stock options are expected to be vested
and exercised, accordingly the total compensation
cost recognised in the statement of profit and loss is
''159.20 (March 31, 2024: 93.17).

Note:

(i) All transactions with these related parties are at arm''s length basis and resulting outstanding receivables and
payables including financial assets and financial liabilities balances are settled in cash. None of the balances
are secured. (All the amounts of transactions and balances disclosed in this note are gross and undiscounted).

(ii) # Amounts paid as dividends to promoters and their relatives in the capacity of shareholders are not considered
as related party transactions.

(iii) ^{1 2}The remuneration to key Managerial personnel does not include provision for gratuity and leave encashment,
as they are determined for the Company as a whole.

Reasons for variance of more than 25%

(i) There is a decrease in the current ratio primarily due to increase in capital creditors.

Definitions:

(a) Earnings available for debt service = Profit for the year Non-cash operating expenses such as depreciation
and amortisation Interest other adjustments like loss on sale of fixed assets etc.

(b) Debt service = Interest Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance)/2

(d) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance)/2

(e) Average trade payables = (Opening trade payables balance Closing trade payables balance)/2

(f) Working Capital = Current assets - Current liabilities

(g) Earnings before interest and taxes = Profit before tax Finance costs - Other income

(h) Capital Employed = Total assets- Total liabilities - Intangible assets Deferred tax liabilities

32. CAPITAL MANAGEMENT

The Company’s policy is to maintain a stable and strong capital structure with a focus on equity so as to provide
returns to shareholders, benefits to other stakeholders, creditors and to sustain future development and growth
of the business. In order to maintain the capital structure, the Company monitors the return on capital as well
as debt to total equity ratio. The Company aims to manage its capital efficiently so as to safeguard its ability to
continue as a going concern and to optimise returns to all its shareholders. For the purpose of debt to total equity,
debt includes its long-term and short-term borrowings. Total equity comprises of issued share capital and all other
equity reserves.

The Company''s risk management is carried out by the Senior Management under policies approved by the Board
of Directors. The Board of Directors provides guiding principles for overall risk management, as well as policies
covering specific areas such as credit risk and liquidity risk.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans.

The Company has no significant concentration of credit risk with any counterparty.

Trade receivables and loans:

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures
and control relating to customer credit risk management. Credit quality of a customer is assessed based on
individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored. All
the trade receivables are non interest bearing.

The Company has an exposure of ''2,126.00 as at March 31, 2025 (March 31, 2024: ''1,286.00) for loans given to
subsidiaries. Such loans are classified as financial asset measured at amortised cost. The Company did not have
any amounts that were past due but not impaired at March 31, 2025 or March 31, 2024. The Company has no
collateral in respect of these loans.

Credit risk on cash and cash equivalents, deposits with banks is generally low as the said deposits have been made
with the banks who have been assigned high credit rating by credit rating agencies. Investments of surplus funds
are made only with approved financial institutions. Investments primarily include investments in subsidiaries and
mutual funds.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Company’s reputation.

The finance team monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on
the basis of expected cash outflows on trade payables and other financial liabilities and any excess/short liquidity is
managed in the form of bank deposits and investment in mutual funds as per the approved frame work.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are
gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur
significantly.

iii. Market risk

Market risk is the risk that results from changes in market prices - such as foreign exchange rates, interest rates
and others - will affect the Company''s income. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimizing the return.

34. ADDITIONAL REGULATORY
INFORMATION PURSUANT TO THE
REQUIREMENT IN DIVISION II OF
SCHEDULE III TO THE COMPANIES ACT
2013

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

ii. The Company does not have any transactions
with companies struck off under Section 248
of the Companies Act, 2013 or Section 560 of
Companies Act, 1956 during the financial year.

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

iv. The Company does not have any charges or
satisfaction which is yet to be registered with
Registrar of Companies (ROC) beyond the
statutory period.

v. 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:

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

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

vi. The Company 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:

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

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

vii. The Company has not entered into any
transaction which is not recorded in the books of
accounts that has been surrendered or disclosed
as income during the year in the tax assessments
under the Income Tax Act, 1961 (such as, search
or survey or any other relevant provisions of the

Inon rvo m "T~ \/ A 1 G C 1 \

viii. The Company has not been declared as wilful
defaulter by any bank or financial institution or
government or any government authority.

ix. The Company has not revalued its property, plant
and equipment (including right-of-use assets) or
intangible assets or both during the current or
previous year.

35. The Company received a letter dated July 5, 2021,
March 14, 2022 and September 16, 2022 under
Section 37 of the Foreign Exchange Management
Act, 1999 read with Section 133(6) of the Income
Tax Act, 1961 from the Directorate of Enforcement,
Government of India ("ED”) requesting certain
information for the purpose of their investigation. The
Company responded to the ED letter by letter dated
August 5, 2021, March 31, 2022 and September 29,
2022 by providing the information requested for. The
letter only sought certain information, which has been
complied with, and it is not a show cause notice or
demand letter at this stage, and there is no impact to
the financial statements.

36. SOCIAL SECURITY CODE

The Indian Parliament has approved the Code on Social
Security, 2020 which would impact the contributions
by the company towards Provident Fund and Gratuity.
The Ministry of Labour and Employment had released
draft rules for the Code on Social Security, 2020 on
November 13, 2020. The Company will assess the
impact and its evaluation once the subject rules are
notified. The Company will give appropriate impact in
its financial statements in the period in which, the Code
becomes effective and the related rules to determine
the financial impact are published.

37. SCHEME OF AMALGAMATION

The Board of Directors of the Company at their
meeting held on 26 June 2024, have considered and
approved the proposed Scheme of Amalgamation
(''Scheme") wherein Medinova Diagnostic Services
Limited (Subsidiary Company) would merge into
the Company with effect from 01 April 2024 (‘the
Appointed Date”) under Sections 230 to 232 and
other applicable provisions of the Companies Act,
2013, and other rules and regulations framed
thereunder ("Scheme"). The Company has received
letter with "no adverse observations” from the BSE
Limited, National Stock Exchange of India Limited
and SEBI on December 05, 2024, and further vide
National Company Law Tribunal (“NCLT’j, Hyderabad,
order dated March 5, 2025 (“Order”), the company
has obtained the approval of the shareholders and the
Unsecured Creditors vide resolutions passed at the
their meetings held on April 25, 2025, respectively.

The scheme is subject to the approval of the NCLT, and such other approvals, permissions, and sanctions of
regulatory and other authorities as may be necessary.

38. SUBSEQUENT EVENTS

Subsequent to March 31, 2025, the Board of Directors of the Company at its meeting held on May 12, 2025 has
recommended a final dividend of ''2/- per equity share (amounting to ''2,052.74) which is subject to approval at
the ensuing Annual General Meeting of the Company and hence was not recognised as a liability.

For B S R and Co For and on behalf of the Board of Directors of

Chartered Accountants Vijaya Diagnostic Centre Limited

ICAI Firm registration number: 128510W CIN: L85195TG2002PLC039075

Balkishan Kabra Dr. S. Surendranath Reddy S. Suprita Reddy

Partner Executive Chairman Managing Director

Membership Number: 221202 DIN: 00108599 DIN: 00263618

Hansraj Singh Rajput K. Sunil Chandra Ramachandra Reddy S

Company Secretary Executive Director Chief Financial Officer

Membership No: F11438 DIN: 01409332

Place: Hyderabad Place: Hyderabad

Date: May 12, 2025 Date: May 12, 2025

1

In addition to the remuneration, certain employee stock options were exercised, whose perquisite value is ''346.46

2

(previous year: ''114.05).

---

Mar 31, 2024

K. Provision, contingent liabilities and contingent assets

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. Expected future operating losses are not provided for.

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. The unwinding of the discount is recognised as finance cost.

The Company records a provision for decommissioning costs. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized in the statement of profit and loss as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate.

Contingencies

Provision in respect of loss/contingencies relating to claims, litigations, assessments, fines and penalties are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

Contingent liabilities and contingent assets

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.

Contingent asset is not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

L. Earnings per share Basic Earnings per share

Basic Earnings Per Share (''EPS'') is calculated by dividing the profit attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted Earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.

M. Exceptional items

The Company discloses certiain financial information both including and excluding exceptional items. The presentation of information excluding exceptional items allows a better understanding of the underlying operating performance of the Company and provides consistency with the Company internal management reporting. Exceptional items are identified by virtue of either their size or nature so as to facilitate comparision with prior periods and to assess underlying trends in the financial performance of the Company.

N. Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activites. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

O. Cash and cash equivalents

Cash and cash equivalents in the balance sheet and cash flow statement consists of cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities less than three months which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

P. Investments in subsidiaries

Investments in subsidiaries carried at cost less any provision for impairment. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

Q. Dividend

The Company recognises a liability for any dividend declared but not distributed at the end of the reporting period, when the distribution is authorised and the distribution is no longer at the discretion of the Company on or before the end of the reporting period.

R. Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the 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.

S. Material accounting policy information

The Company adopted "Disclosure of Accounting Policies (Amendments to Ind AS 1) from April 01, 2023. Although the amendments did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements.

The amendments require the disclosure of ''material'' rather than ''significant'' accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.

T. Recent pronouncements

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

24. DISCLOSURE REQUIRED UNDER CLAUSE 22 OF MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (''MSMED'') ACT, 2006

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

25. DISCLOSURE AS PER SECTION 186 OF THE COMPANIES ACT, 2013

The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014 are as follows:

(i) Details of investments made are given in Note 6(a);

(ii) Details of the loans given by the Company is given in Note 6(c).

26.OPERATING SEGMENTS

A. Basis for segmentation

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. All operating segment''s results are reviewed regularly by the Company''s Chairman and Managing Director to make decisions about resources to be allocated to the segments and assess their performance.

The Chief Operating Decision Maker ("CODM”) who are the Company''s Chairman and Managing Director evaluate the Company''s performance and allocates resources based on

an analysis of various performance indicators at operational unit level and since there is single operating segment, no segment disclosures of the Company is presented. The Company''s operations fall within a single business segment "Diagnostic services”.

B. Geographical information

The Company operates within India and therefore there are no assets or liabilities outside India.

C. Major customers

No single customer contributed more than 10% of the Company''s revenues during the year ended March 31,2024 and March 31, 2023.

27. PURCHASE COMMITMENTS TOWARDS REAGENT KITS

The Company has entered into agreements with certain suppliers for purchase of reagents which include the right to use equipment during the life of the agreement in addition to purchase of minimum committed quantities of reagents every year. These agreements are in substance, cost of reagents and services arrangements provided by the supplier on an annual basis and the minimum purchase commitments therein do not result in more than insignificant penalty on termination of the agreement. The cost of reagents which includes the cost of rental of the equipment is recorded as cost of material consumed.

28. EMPLOYEE BENEFIT PLANS

The Company has following post employment benefit plans:

(a) Defined contribution plans

Contributions were made to provident fund and Employees'' State Insurance in India for the employees of the Company as per the regulations. These contributions are made to registered funds administered by the Government of India. The obligation of the Company is limited to the respective amount contributed and it has no further contractual nor any other constructive obligation. The expense recognised during the period in the standalone statement of profit and loss towards defined contribution plans is Rs. 421.24 (March 31, 2023: Rs. 382.76).

(b) Defined benefit plan

The Company provides for Gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in

continuous service for a period of 5 years are eligible for Gratuity. The amount of Gratuity payable on retirement/termination is the employee''s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service or part thereof in excess of six months, restricted to a sum of Rs. 20.

The Gratuity plan is administered through a Gratuity Scheme with Life Insurance Corporation of India (''LIC''). The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

This defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.

29. SHARE BASED PAYMENTS VDCL Employee Stock Option Plan 2018 "The Plan" or "ESOP 2018"

The shareholders of the Company approved "VDCPL Employee Stock Option Plan 2018 (ESOP 2018)” at the Extraordinary General Meeting held on May 03, 2018 and subsecquently it was amended at the extraordinary genaral meeting held on March 25, 2021 and August 26, 2021 to grant a maximum of 1,625,000 options to specified categories of employees of the Company. Each option granted and vested under ESOP 2018 shall entitle the holder to acquire one equity share of face value of Rs. 1 each of the Company.

The Plan consists of six schemes with various vesting periods from the grant date subject to satisfaction of vesting conditions. The method of settlement under the Plan is by issue of equity shares of the Company and there are no cash settlement alternatives for the employees.

Vested options can be exercised over a period of ten years from the grant date. The Exercise Price is the fair value of the equity share as on the date of the grant or as decided by the Nomination and remuneration committee. The time and performance based options under Scheme 1, 2, 3, 4, 5 and 6 become vested as below:

The time and performance based options under Scheme 1 become eligible on an annual basis at 30%, 30%, 20% and

20% over a period of four years and vesting starts from second year. The time and performance based options under Scheme 2 become eligible on an annual bais at 25%, 25%, 25% and 25% over a period of four years and vesting starts from third year. The time based options under Scheme 3 become eligible on an annual basis at 25%, 25%, 25% and 25% over a period of four years and vesting starts from third year. The time based options under Scheme 4 become eligible on annual basis at 100% and vest on second year from the grant date. The time based options under Scheme 5 become eligible and vest on an annual basis at 25%, 25%, and 50% over a period of three years. The time based options under Scheme 6 become eligible on an annual basis at 0%, 25%, 50% and 25% over a period of four years and the performace based options under Scheme 6 become eligible on an annual basis at 25%, 25%, 25% and 25% over a period of four years.

The fair value of equity share options is estimated at the date of grant using Black- Scholes model, taking into account the terms and conditions upon which the share options were granted. Based on the historical trends, 50% of stock options are expected to be vested and exercised, accordingly the total compensation cost recognised in the statement of profit and loss is Rs. 93.17 (March 31, 2023: 71.67).

Reasons for variance of more than 25%

(i) There is a decrease in the current ratio primarily due to decrease in the fixed deposits held with the bank and investments made in mutual funds.

(ii) The increase in the Net Capital Turnover ratio is primarily due to decrease in the working capital held by the Company due to decrease in fixed deposits and investments made in mutual funds.

Definitions:

(a) Earnings available for debt service = Profit for the year Non-cash operating expenses such as depreciation and amortisation Interest other adjustments like loss on sale of fixed assets etc.

(b) Debt service = Interest Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance)/2

(d) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance)/2

(e) Average trade payables = (Opening trade payables balance Closing trade payables balance)/2

(f) Working Capital = Current assets - Current liabilities

(g) Earnings before interest and taxes = Profit before tax Finance costs - Other income

(h) Capital Employed = Total assets- Total liabilities - Intangible assets Deferred tax liabilities

32. CAPITAL MANAGEMENT

The Company''s policy is to maintain a stable and strong capital structure with a focus on equity so as to provide returns to shareholders, benefits to other stakeholders, creditors and to sustain future development and growth of the business. In order to maintain the capital structure, the Company monitors the return on capital as well as debt to total equity ratio. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of debt to total equity, debt includes its long-term and short-term borrowings. Total equity comprises of issued share capital and all other equity reserves.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans.

The Company has no significant concentration of credit risk with any counterparty.

Trade receivables and loans

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored. All the trade receivables are non-interest bearing.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The finance team monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash outflows on trade payables and other financial liabilities and any excess/short liquidity is managed in the form of current borrowings, bank deposits and investment in mutual funds as per the approved frame work.

iii. Market risk

Market risk is the risk that results from changes in market prices - such as foreign exchange rates, interest rates and others -will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

34. ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE COMPANIES ACT 2013

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

ii. The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

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

iv. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

v. 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:

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

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

vi. The Company 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:

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

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

vii. The Company has not entered into any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

ix. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

35. The Company has received a letter dated July 5, 2021, March 14, 2022 and September 16, 2022 under Section 37 of the Foreign Exchange Management Act, 1999 read with Section 133(6) of the Income Tax Act, 1961 from the Directorate of Enforcement, Government of India ("ED”) requesting certain information for the purpose of their investigation. The Company has responded to the ED letter by

letter dated August 5, 2021, March 31, 2022 and September 29, 2022 by providing the information requested for. The letter has only sought certain information, which has been complied with, and it is not a show cause notice or demand letter at this stage, and there is no impact to the financial statements.

36. SUBSEQUENT EVENTS

(a) The wholly owned subsidiaries of the Group namely Doctorslab Medical Services Private Limited and Namrata Diagnostic Centre Private Limited, based on the application filed by the respective companies have been struck off by the Registrar of Companies (ROC) as on April 06, 2024, since there were no operations in these companies. There is no impact on account of this in the financial statements.

(b) Subsequent to March 31, 2024, the Board of Directors of the Company at its meeting held on 08 May 2024 has recommended a final dividend of Re. 1/- per equity share which is subject to approval at the ensuing Annual General Meeting of the Company and hence was not recognised as a liability.

As per our report of even date attached.

For B S R and Co For and on behalf of the Board of Directors of

Chartered Accountants Vijaya Diagnostic Centre Limited

ICAI Firm registration number: 128510W CIN: L85195TG2002PLC039075

Amit Kumar Bajaj Dr. S. Surendranath Reddy S. Suprita Reddy

Partner Executive Chairman Managing Director

Membership Number: 218685 DIN: 00108599 DIN: 00263618

Hansraj Singh Rajput K. Sunil Chandra Narasimha Raju K.A.

Company Secretary Executive Director Chief Financial Officer

Membership No: F11438 DIN: 01409332

Place: Hyderabad Place: Hyderabad

Date: 08 May 2024 Date: 08 May 2024

---

Mar 31, 2023

Disclosure as per Section 186 of the Companies Act, 2013

The details of Loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014 are as follows :

(i) Details of investments made are given in Note 6(a)

(ii) Details of the loans given by the Company is given in Note 6(c)

Segment reporting

A. Basis for segmentation

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. All operating segment''s results are reviewed regularly by the Company''s Chairman and CEO to make decisions about resources to be allocated to the segments and assess their performance.

The Chief Operating Decision Maker ("CODM") who are the Company''s Chairman and CEO evaluate the Company''s performance and aLLocates resources based on an anaLysis of various performance indicators at operationaL unit LeveL and since there is single operating segment, no segment disclosures of the company is presented. The Company''s operations fall within a single business segment "Diagnostic services”

B. Geographical information

The Company operates within India and therefore there are no assets or Liabilities outside India.

C. Major customers

No single customer contributed more than 10% of the Company''s revenues during the year. Hence, the Management believes that there are no major customers to be disclosed.

27. Purchase commitments towards reagent kits

The Company has entered into agreements with certain suppliers for purchase of reagents which include the right to use equipment during the life of the agreement in addition to purchase of minimum committed quantities of reagents every year. These agreements are in substance, cost of reagents and services arrangements provided by the supplier on an annual basis and the minimum purchase commitments therein do not result in more than insignificant penalty on termination of the agreement. The cost of reagents which includes the cost of rental of the equipment is recorded as cost of material consumed.

28. Employee benefit plans

The Company has following post employment benefit plans:

(a) Defined contribution plans

Contributions were made to provident fund and Employees'' State Insurance in India for the employees of the Company as per the regulations. These contributions are made to registered funds administered by the Government of India. The obligation of the Company is limited to the respective amount contributed and it has no further contractual nor any other constructive obligation. The expense recognised during the period in the standalone statement of profit and loss towards defined contribution plans is Rs. 382.76 lakhs (March 31, 2022: Rs. 330.85 lakhs).

(b) Defined benefit plan

The Company provides for Gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for Gratuity. The amount of Gratuity payable on retirement/ termination is the employee''s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service or part thereof in excess of six months, restricted to a sum of Rs. 20 lakhs.

The Gratuity plan is administered through a Gratuity Scheme with Life Insurance Corporation of India (''LIC''). The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

This defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate: Represents the Company''s best estimate of employee turnover in future (other than on account of retirement, death or disablement) determined considering various factors such as nature of business, retention policy, industry factors, past experience, etc.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting year, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

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

v. Expected contributions to the plan for the next annual reporting period

Expected contribution to post-employment benefit plans for the next year ending March 31, 2024 is Rs. 343.59 lakhs (March 31, 2023: Rs. 327.47 lakhs)

29. Share based payments

VDCL Employee Stock Option Plan 2018 "The Plan" or "ESOP 2018"

The shareholders of the Company approved ”VDCPL Employee Stock Option Plan 2018 (ESOP 2018)” at the Extraordinary General Meeting held on May 03, 2018 and subsecquently it was amended at the extraordinary genaral meeting held on March 25, 2021 and August 26, 2021 to grant a maximum of 1,625,000 options to specified categories of employees of the Company. Each option granted and vested under ESOP 2018 shall entitle the holder to acquire one equity share of face value of Rs. 1 each of the Company.

The Plan consists of six schemes with various vesting periods from the grant date subject to satisfaction of vesting conditions. The method of settlement under the Plan is by issue of equity shares of the Company and there are no cash settlement alternatives for the employees.

Vested options can be exercised over a period of ten years from the grant date. The Exercise Price is the fair value of the equity share as on the date of the grant or as decided by the Nomination and remuneration committee. The time and performance based options under Scheme 1, 2, 3, 4, 5 and 6 become vested as below:

The time and performance based options under Scheme 1 become eligible on an annual basis at 30%, 30%, 20% and 20% over a period of four years and vesting starts from second year. The time and performance based options under Scheme 2 become eligible on an annual bais at 25%, 25%, 25% and 25% over a period of four years and vesting starts from third year. The time based options under Scheme 3 become eligible on an annual basis at 25%, 25%, 25% and 25% over a period of four years and vesting starts from third year. The time based options under Scheme 4 become eligible on annual basis at 100% and vest on second year from the grant date. The time based options under Scheme 5 become eligible and vest on an annual basis at 25%, 25%, and 50% over a period of three years. The time based options under Scheme 6 become eligible on an annual basis at 0%, 25%, 50% and 25% over a period of four years and the performace based options under Scheme 6 become eligible on an annual basis at 25%, 25%, 25% and 25% over a period of four years.

The fair value of equity share options is estimated at the date of grant using Black- Scholes model, taking into account the terms and conditions upon which the share options were granted. Based on the historical trends, 50% of stock options are expected to be vested and exercised, accordingly the total compensation cost recognised in the statement of profit and loss is Rs. 71.67 lakhs (March 31, 2022: 113.56 lakhs).

(i) ALL transactions with these related parties are at arm''s Length basis and resulting outstanding receivables and payables including financial assets and financial liabilities balances are settled in cash. None of the balances are secured. (All the amounts of transactions and baLances discLosed in this note are gross and undiscounted)

(ii) *The remuneration to key Managerial personnel does not include provision for gratuity and leave encashment, as they are determined for the Company as a whole.

** In addition to the remuneration, certain employee stock options were exercised, whose perquisite value is Rs 33.76 lakhs (previous year: Rs. Nil).

(iii) #Amounts paid as dividends to promoters and their relatives in the capacity of shareholders are not considered as related party transactions.

Reasons for variance of more than 25%

(i) There is a decrease in return on equity ratio in the current year on account of decrease in profits for the year.

(ii) There is a decrease in return on capital employed ratio in the current year on account of decrease in profits for the year and increase in capital employed.

Definitions:

(a) Earnings available for debt service = Net profit after taxes Non-cash operating expenses such as depreciation and amortisation Interest other adjustments like loss on sale of fixed assets etc.

(b) Debt service = Interest Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(e) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(f) Working Capital = Current assets - Current liabilities

(g) Earnings before interest and taxes = Profit before tax Finance costs - Other income

(h) Capital Employed = Total assets- Total liabilities - Intangible assets Deferred tax liabilities

32. Capital management

The Company''s policy is to maintain a stable and strong capital structure with a focus on equity so as to provide returns to shareholders, benefits to other stakeholders, creditors and to sustain future development and growth of the business. In order to maintain the capital structure, the Company monitors the return on capital as well as debt to total equity ratio. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of debt to total equity, debt includes its long-term and short-term borrowings. Total equity comprises of issued share capital and all other equity reserves.

The fair value of trade receivables, loans, other financial assets, cash and cash equivalents, other bank balances, borrowings, trade payables and other financial liabilities approximate their carrying amount largely due to short-term nature of these instruments. Investments in mutual funds, which are classified as FVTPL are measured using net assets value at the reporting date multiplied by the quantity held.

Investment in subsidiaries have been accounted at historical cost. Since, these are scoped out of Ind AS 109 for the purpose of measurement, the same are not disclosed in the table above.

The Company''s risk management is carried out by the Senior Management under policies approved by the Board of Directors. The Board of Directors provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk and liquidity risk.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans.

The Company has no significant concentration of credit risk with any counterparty.

Trade receivables and Loans:

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customer receivables are regularly monitored. All the trade receivables are non interest bearing.

The Company has an exposure of Rs. 575.00 Lakhs as at March 31, 2023 (March 31, 2022: Rs. 679.97 Lakhs) for Loans given to subsidiaries. Such loans are classified as financial asset measured at amortised cost. The Company did not have any amounts that were past due but not impaired at March 31, 2023 or March 31, 2022. The Company has no collateral in respect of these loans.

Credit risk on cash and cash equivalents, deposits with banks is generally low as the said deposits have been made with the banks who have been assigned high credit rating by credit rating agencies. Investments of surplus funds are made only with approved financial institutions. Investments primarily include investments in subsidiaries and mutual funds.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptabLe Losses or risking damage to the Company''s reputation.

The finance team monitors rotting forecasts of the Company''s Liquidity position and cash and cash equivalents on the basis of expected cash outflows on trade payables and other financial liabilities and any excess/ short liquidity is managed in the form of current borrowings, bank deposits and investment in mutual funds as per the approved frame work.

Exposure to Liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly.

iii. Market risk

Market risk is the risk that results from changes in market prices - such as foreign exchange rates, interest rates and others - will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

34. Other statutory information

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

ii. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year.

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

iv. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

v. 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:

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

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

vi. The Company 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:

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

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

vii. The Company has not entered into any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

35. The Company has received a letter dated July 5, 2021, March 14, 2022 and September 16, 2022 under section 37 of the Foreign Exchange Management Act, 1999 read with section 133(6) of the Income Tax Act, 1961 from the Directorate of Enforcement, Government of India ("ED”) requesting certain information for the purpose of their investigation. The Company has responded to the ED letter by letter dated August 5, 2021, March 31, 2022 and September 29, 2022 by providing the information requested for. The letter has only sought certain information, which has been complied with, and it is not a show cause notice or demand letter at this stage, and there is no impact to the financial statements.

36. Comparative figures

The Comparative figures for the previous year have been re-arranged to conform with the current year presentation of the accounts.

37. Subsequent events

Subsequent to March 31, 2023, the Board of Directors of the Company at its meeting held on 29 May 2023 has recommended a final

dividend of Re. 1/- per equity share which is subject to approval at the ensuing Annual General Meeting of the Company and hence was not recognised as a liability.