Notes to Accounts of WinPro Industries Ltd.

Mar 31, 2025

I. Provisions and contingent liabilities:

Provisions are recognized when there is a present obligation 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 there
is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of
the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

J. Employee benefits:

Employee benefits include salaries, wages, and gratuity.

Short-term employee benefits:

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months
after the end of the period in which the employees render the related service are recognised in respect
of employees'' services up to the end of the reporting period and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

Post-employment benefit: Defined contribution plan:

The Company has 41 employees during the year and hence it is not covered under the provisions of
Employees Provident Fund Scheme 1952, no provision has been made in the books of accounts for the
same.

Post-employment benefits: Defined benefit plan:

Defined benefit plans comprising of gratuity, post-retirement medical benefits and other terminal
benefits, are recognized based on the present value of defined benefit obligations which is computed
using the projected unit credit method, with actuarial valuations being carried out at the end of each
annual reporting period. These are accounted either as current employee cost or included in cost of
assets as permitted.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.

Leave encashment:

The Company does not accumulate the leave of the employees.

Short term employee benefits:

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in
respect of other long-term employee benefits are measured at the present value of the estimated future
cash outflows expected to be made by the Company in respect of services provided by employees up to
the reporting date.

K. Financial instruments:

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual
provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) 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 and loss are recognised immediately in Statement of profit and loss.

Financial assets:

a) Recognition and initial measurement:

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in profit or loss.

b) Classification of financial assets and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in following categories:

i. at amortized cost; or

ii. at fair value through other comprehensive income; or

iii. at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the
contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortized cost. Interest income
from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely
payments of principal and interest, are measured at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized
in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss
previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized
in other gains/ (losses). Interest income from these financial assets is included in other income using the
effective interest rate method. Fair value through profit or loss (FVTPL): Assets that do not meet the
criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income
from these financial assets is included in other income. Equity instruments: All equity investments in
scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in a business combination to which Ind AS103
applies are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value.
The Company makes such election on an instrument- by-instrument basis. The classification is made on
initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.

c) Impairment of financial assets:

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL)
model for measurement and recognition of impairment loss on financial assets that are measured at
amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then
the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default
events that are possible within 12-months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of
the financial instrument (including prepayment, extension etc.) over the expected life of the financial
instrument. However, in rare cases when the expected life of the financial instrument cannot be
estimated reliably, then the entity is required to use the remaining contractual term of the financial
instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the
payment is more than 30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense
in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost
is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.

d) Derecognition of financial assets:

A financial asset is derecognized only when

i) the rights to receive cash flows from the financial asset is transferred or

ii) retains the contractual rights to receive the cash flows of the financial asset but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if
substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity
has not transferred substantially all risks and rewards of ownership of the financial asset, the financial
asset is not derecognized.

a) Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated
embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of
Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the
liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

b) Derecognition:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as
finance costs.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a
net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable in the normal course of business and in the
event of default, insolvency or bankruptcy of the Company or the counterparty.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through
the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying
amount on initial recognition. Income is recognised on an effective interest basis for debt instruments
other than those financial assets classified as at FVTPL and Interest income is recognised in profit or loss.

L. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term
deposits net of bank overdraft with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash
equivalents include cash on hand, cash in banks and short- term deposits net of bank overdraft.

M. Segments reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The board of directors of the Company has appointed a steering
committee consisting of Chief Executive Officer, Chief Financial Officer and Chief Operating Officer,
which assesses the financial performance and position of the Company and makes strategic decisions.
The steering committee, which has been identified as being the chief operating decision maker.

N. Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings
considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after

deducting preference dividends and any attributable tax thereto for the year. The weighted average
number of equity shares outstanding during the year and for all the years 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 or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year is adjusted for
the effects of all dilutive potential equity shares.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).

(*) The fair value of these investments in equity shares are calculated based on discounted cash flow
approach for un-quoted market instruments which are classified as level III fair value hierarchy.

(^A) The carrying value of these accounts are considered to be the same as their fair value, due to their short
term nature. Accordingly, these are classified as level 3 of fair value hierarchy.

The Company''s risk management is carried out by a central treasury department (of the Company) under policies
approved by the board of directors. The board of directors provides written principles for overall risk
management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit
risk and investment of excess liquidity.

A) Credit Risk

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

Credit risk management

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

defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a borrower declaring
bankruptcy, or litigation decided against the Company. The Company continues to engage with parties whose
balances are written off and attempts to enforce repayments. Recoveries made are recognized in statement of
profit and loss.

B) Liquidity Risk:

Liquidity Risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its
financial liabilities that are settled by delivering cash or other financial assets. 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.

Management monitors rolling forecasts of the company''s liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity
operates.

Maturities of financial liabilities

All the financial liabilities of the Company are current in nature and are maturing within 12 months period. ''The
amount disclosed in the financial statements is the contractual undiscounted cash flows.

C) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of
change in market prices. It comprises of currency risk, interest rate risk and price risk.

a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange
risk arises from recognized assets and liabilities denominated in a currency that is not the functional currency of
the Company.

The Company does not have any significant or material foreign currency transactions hence the currency risk for
all the financial assets and liabilities has been considered to be negligible by the management as at the closing
date.

b) Interest rate risk

As the company does not have any long-term borrowings outstanding or fixed rate deposits, hence it is not
exposed to interest rate risk.

c) Price risk

As the Company does not have any investments outstanding or fixed rate deposits, hence it is not exposed to
price risk.

Capital management

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

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Mar 31, 2024

I. Provisions and contingent liabilities:

Provisions are recognized when there is a present obligation 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 there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

J. Employee benefits:

Employee benefits include salaries, wages, and gratuity.

Short-term employee benefits:

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Post-employment benefit: Defined contribution plan:

The Company has 41 employees during the year and hence it is not covered under the provisions of Employees Provident Fund Scheme 1952, no provision has been made in the books of accounts for the same.

Post-employment benefits: Defined benefit plan:

Defined benefit plans comprising of gratuity, post-retirement medical benefits and other terminal benefits, are recognized based on the present value of defined benefit obligations which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Leave encashment:

The Company does not accumulate the leave of the employees.

Short term employee benefits:

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

K. Financial instruments:

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through Statement of Profit and Loss (FVTPL)) 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 and loss are recognised immediately in Statement of profit and loss.

Financial assets:

a) Recognition and initial measurement:

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

b) Classification of financial assets and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in following categories:

i. at amortized cost; or

ii. at fair value through other comprehensive income; or

iii. at fair value through profit or loss.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method. Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income. Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

c) Impairment of financial assets:

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12-months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payment is more than 30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

d) Derecognition of financial assets:

A financial asset is derecognized only when

i) the rights to receive cash flows from the financial asset is transferred or

ii) retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.

a) Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated

embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

b) Derecognition:

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as finance costs.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL and Interest income is recognised in profit or loss.

L. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short- term deposits net of bank overdraft.

M. Segments reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of directors of the Company has appointed a steering committee consisting of Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, which assesses the financial performance and position of the Company and makes strategic decisions. The steering committee, which has been identified as being the chief operating decision maker.

N. Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company’s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years 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 or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

(*) The fair value of these investment in equity shares are calculated based on discounted cash flow approach for un-quoted market instruments which are classified as level III fair value hierarchy.

(^A) The carrying value of these accounts are considered to be the same as their fair value, due to their short term nature. Accordingly, these are classified as level 3 of fair value hierarchy.

C. Financial Risk Management i) Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages risk and the related impact in the financial statements

A) Credit Risk

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

Credit risk management

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

(i) Low credit risk on financial reporting date

(ii) Moderate credit risk

(iii) High credit risk

The Company provides for expected credit loss based on the following:

*These represent gross carrying values of financial assets, without deduction for expected credit losses. The Company does not have any significant or material history of credit losses hence the credit risk for all the financial assets has been considered to be negligible by the management as at closing date.

B) Liquidity Risk:

Liquidity Risk is the risk that the Company will encounter difficulty in meeting the obligation associated with its financial liabilities that are settled by delivering cash or another financial assets. 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.

Management monitors rolling forecasts of the company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Maturities of financial liabilities

All the financial liabilities of the Company are current in nature and are maturing within 12 months period. ‘The amount disclosed in the financial statements are the contractual undiscounted cash flows.

C) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of change in market prices. It comprises of currency risk, interest rate risk and price risk.

a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company.

The Company does not have any significant or material foreign currency transactions hence the currency risk for all the financial assets and liabilities has been considered to be negligible by the management as at the closing date.

b) Interest rate risk

As the company does not have any long-term borrowings outstanding or fixed rate deposits, hence it is not exposed to interest rate risk.

c) Price risk

As the Company does not have any investments outstanding or fixed rate deposits, hence it is not exposed to price risk.

25. Capital management

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

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Mar 31, 2018

26 Related party transaction

(i) Names of related parties and description of relationship:

a) Entity where exercise control: Nil

b) Key management personnel

(1) Allan Rebello

(2) Atul Kumar

(3) Mayank Kotadia

(4) Mitesh Jani

(5) Yogendra Bagree

(6) Neha Gupta

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

(*) The fair value of these investments in equity shares are calculated based on discounted cash flow approach for un-quoted market instruments which are classified as level III fair value hierarchy.

(^A) The carrying value of these accounts is considered to be the same as their fair value, due to their short term nature. Accordingly, these are classified as level 3 of fair value hierarchy.

29. Financial risk management

The Company has exposure to following risks arising from financial instruments-

- credit risk

- market risk

- liquidity risk

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

(b) Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) from its financing activities including deposits with banks and investment in quoted and un-quoted equity instruments.

i. Trade and other receivables:

Credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored.

The impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

Expected credit loss (ECL) assessment for corporate customers as at 1 April 2016, 31 March 2017 and 31 March 2018

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (including but not limited to past payment history, security by way of deposits, external ratings, audited financial statements, management accounts and cash flow projections and available press information about customers) and applying experienced credit judgment.

ii. Other financial assets and deposits with banks:

Credit risk on cash and cash equivalent is limited as (including bank balances, fixed deposits with banks) the Company generally transacts with banks with high credit ratings assigned by international and domestic credit rating agencies.

(c) Market Risk Equity price risk

The Company is exposed to equity price risk from investments in equity securities measured at fair value through profit and loss. The Management monitors the proportion of equity securities in its investment portfolio based on market indices and based on company performance for un-equity instruments. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors. Further, major investments in un-quoted equity instruments are strategic in nature and hence invested for long-term purpose.

Liquidity Risk

Liquidity 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 the 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 Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.

31. First-time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, have been prepared in accordance with Ind AS. For the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Indian GAAP'' or '' Previous GAAP'').

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on March 31, 2018 together with the comparative period data, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

(i) Property, plant and equipment’s

As per Ind AS 101, a Company may elect to:

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for property, plant & equipment and intangible assets as deemed cost.

B. Mandatory exceptions

(i) Estimates

As per Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS)

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Fair valuation of financial instruments carried at FVTPL

- Impairment of financial assets based on the expected credit loss model

(ii) Derecognition of financial assets and liabilities

As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively for transactions occurring on or the after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

(iii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost and fair value through profit and loss have been done retrospectively except where the same is impracticable.

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Mar 31, 2015

1. SHORT TERMS PROVISION

(a) The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Current liabilities do not include any amount to be credited to investor education and protection fund.

2. RELATED PARTY TRANSACTION

a) Key Managerial Person

Rajendra Karnik Bimal Kamdar

3.The previous year figures have been regrouped, rearranged wherever necessary.

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Mar 31, 2014

1. No Bonus shares issued immediately preceding five years from the date of balance sheet

The Company has not received any memorandum (as required to be filed by the Supplier with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2014 as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year is NIL.

(a) The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Current liabilities do not include any amount to be credited to investor education and protection fund.

Note 2. The previous year figures have been regrouped, rearranged wherever necessary.

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Mar 31, 2011

1. Previous year figures of the Balance Sheet have been regrouped and reclassified wherever necessary for the purpose of comparison. The amounts have been rounded off to the nearest rupee. The financial statement for the current period are of 9 months i.e. from 1st July, 2010 to 31st March, 2011.

2. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary. However in the opinion of the auditors, the current assets in the form of sundry debtors are non-moving and should have been classified as doubtful.

3. Confirmations for balances of Sundry Creditors, Debtors, and Unsecured Loans and Advances by respective parties have not been obtained.

4. Contingent Liabilites :

For A.Y. 2002-2003 penalty proceeding u/s. 271(l)(c) of Income Tax Act, 1961 was intiated against the Company as per the assessment order passed u/s. 143(3) dated 19.02.2005. However, the same was stayed, as the company was is in appeal before the Commissioner of Income Tax (Appeals) agaisnt the said Penalty order. The CIT (Appeals) by his order dated 08.11.2005 upheld the order of assessing officer. Now, the Company is in appeal before the ITAT agaisnt the order of the CIT (Appeals) and the matter is pending till date and is yet to be heard.

No liabilities have been provided for interest and penalites that may be payable for violation of laws applicable for irregular and non-payment of VAT, Service Tax and for delays in meeting statutory provisions of other taxations laws applicable to the company.

5. The company has not received any intimation as on 31st March, 2011, from suppliers regarding their status under the Micro, Small and Medium Enterprises Development, Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6. Auditor's Remuneration is exclusive of Service Tax.

7. The Company has not paid the VAT Liability of Rs. 1,67,204/- and has also not filed the periodic VAT Returns.

8. The Company has not paid the Service Tax Liability of Rs. 8,14,212/- and has also not filed the periodic Service Tax Returns. The Management is of the opinion that the Service Tax Liability is only Rs. 1,08,594/- after claiming the Refund of Rs. 7,05,617/- for the previous year 2009-10, for which the Company has not fied the Service Tax Returns.

9. The Company is not in possession of the Certificates issued by Foreign Company for withholding Tax amounting to Rs. 15,37,305/- deducted by it from payments made to the Company. The entries pertaining to the same have been passed on the basis of the monthly payments report issued by the said foreign company.

10. During the period under audit, the Company has written off Sundry Creditors amounting to Rs. 48,62,210/- and also has written off Sundry Debtors amounting to Rs. 73,88,325/- as the management feels that it is neighter recoverable nor payable.

11. The computation of net profit for the purpose of calculation of director's remuneration u/s. 349 of the Companies Act, 1956 has not been made in view that no commission is payable or has been paid to the directors of the company of, the period.

12. During the Last year, the Company has issued 58,00,000 preferential Convertible Warrants of Rs. 5/- each issued at Premium of Rs. 5/- per share to the Promoters and the outsiders and during the year, the Company has converted and allotted 21,83,444 shares against such warrants and has raised money to the tune of Rs. 218,34 Lacs. The Company has forfeited 6,72,890 Preferential Convertible Warrants due to non payment of the balance call money within time limit and therefore the share application money received amounting to Rs. 16.82 lacs has been transferred to General Reserves. The Company has transferred excess Share application money received amounting to Rs. 46.02 Lacs to Current Liabilities Account.

During the year, the Company has issued additional 9,04,25,000 convertible warrants of Rs. 5/- each at a premium of Rs. 9/- per share Rs. 3.50 paid up and has received Rs. 777.79 Lacs as share application money.

13. As the company has no manufacturing activity, there are no information to be provided for licenced. Installed and other quantitative details.

In calculating the diluted earning per share, the company has not considered the issue of share Warrants on preferential basis which were not allotted.

14. The financial statements of the subsidiary were not consolidated with the parent company as required by AS 21 which deals with consolidated financial statement due to absence of Audited financial statement of the subsidiary.

15. The company has invested in the unquoted equity shares of the various companies. However, the company does not have physical share certificate representing the same shares.

16. The company has not prepared segment financial statement.

17. Additional Information as required under Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.