Notes to Accounts of Yudiz Solutions Ltd.

Mar 31, 2025

I) Provision

Provisions are recognised in the standalone balance sheet when the Company has a present obligation
(legal or constructive) as a result of a past event, which is expected to result in an outflow of resources
embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate
of the expenditure required to settle the present obligation at the balance sheet date. Where the time value
of money is material, provisions are measured on a discounted basis.

Constructive obligation is an obligation that derives from an entity’s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current
statement, the entity has indicated to other parties that it will accept certain responsibilities and;

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will
discharge those responsibilities.

J) Onerous contracts

A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from
a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is
measured at the present value of the lower of the expected cost of terminating the contract and the expected
net cost of continuing with the contract. Before a provision is established, the Company recognises any
impairment loss on the assets associated with that contract.

K) Income taxes

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

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised to the
extent that it is probable that future taxable profits will be available against which the temporary differences
can be utilised.

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

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted
by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Company expects, at the end of the reporting
period, to cover or settle the carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax
authority and there are legally enforceable rights to set off current tax assets and current tax liabilities within
that jurisdiction.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case the tax is also recognised in other comprehensive income or directly in equity.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which
is likely to give future economic benefits in the form of availability of set off against future income tax liability.
MAT is recognised as deferred tax assets in the Balance Sheet when the asset can be measured reliably and
it is probable that the future economic benefit associated with the asset will be realised.

L) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable net of discounts, taking into account
contractually defined terms and excluding taxes or duties collected on behalf of the government.

Interest Income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the
effective interest rate applicable.

M) Foreign Currency Transaction and Translations

Transactions in currencies other than the Group’s functional currency (foreign currencies) are recognized
at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are translated using mean exchange rate prevailing on
the last day of the reporting period. Non-monetary assets and liabilities that are measured at fair value in
a foreign currency are translated into the functional currency at the exchange rate when the fair value was
determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign
currency are translated at the exchange rate at the date of the transaction.

N) Borrowing Costs

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for the intended use
or sale.

O) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash in
hand, deposits held at call with financial institutions, other short-term highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

P) Trade Receivables and Unbilled Revenue

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment, if any.

Q) Segment Reporting
Identification of Segments

The Company has identified business of design and development of mobile and web applications using
various technologies as its sole operating segment and the same has been treated as primary segment. The
Company’s secondary geographical segments have been identified based on the location of customers and
then demarcated into Indian and overseas revenue earnings.

R) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

S) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an outflow of resources will
be required to settle the obligation. The company does not recognize a contingent liability but discloses its
existence in the financial statements.

(b) Terms/rights attached to equity shares

(i) The company has only one class of equity shares having par value of ^ 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend if any proposed
by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

(c) For the period of five years immediately preceding the date at which the Balance Sheet is prepared, the company has a)
not allotted any shares other than for cash, b) not bought back any shares.

(d) The Company have issue 2717600 share through Initial Public Offer on 17-08-2023 of face value Rs. 10 each at a
premium of Rs. Rs. 155 each.

(e) Pursuant to resolution passed by the Directors of the Company on November 24, 2022 and approved by the extraordinary
general meeting held on December 02, 2022, the Company has allotted equity shares of face value of ^ 10 each by way of
bonus issue to its shareholders bonus shares in the ratio of 1:2 to be capitalised out of the Company’s securities premium

account/ free reserves or such other accounts as are permissible to be utilized for this purpose.

* There were no dilutive instruments outstanding during the period/ year.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the
parent by the weighted average number of equity shares outstanding during the period / year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted
average number of equity shares outstanding during the period/ year.

23 Contingent Liabilities and Capital Commitments

a) The Company has given corporate guarantee to bank for loan taken by others and balance outstanding as at,

March 31, 2025 is amounting to ? 253.54 Lakhs and as at March 31,2024 is amounting to ?322.57 Lakhs.

b) The Company does not have any pending litigations which would impact its financial position as at March 31,

2025 and March 31,2024.

c) The Company does not have any commitments to be executed on capital account as at March 31, 2025 and

March 31, 2024.

b) Defined Benefit Plan - Gratuity
Exposes the entity:

Credit Risk: If the scheme is insured and fully funded on PUC basis there is a credit risk to the extent the
insurer(s) is /are unable to discharge their obligations including failure to discharge in timely manner.

Pay-as-you-go Risk: For unfunded schemes financial planning could be difficult as the benefits payable will
directly affect the revenue and this could be widely fluctuating from year to year. Moreover there may be an
opportunity cost of better investment returns affecting adversely the cost of the scheme.

Discount Rate Risk: The company is exposed to the risk of fall in discount rate. A fall in discount rate will
eventually increase in the ultimate cost of providing the above benefit thereby increasing the value of the
liability.

Liquidity Risk: This risk arises from the short term asset and liability cash flow mismatch thereby causing
the company being unable to pay the benefits as they fall due in the short term. Such a situation could be the
result of holding large illiquid assets disregarding the results of cash flow projections and cash outgo inflow
mismatch. (Or it could be due to insufficient assets/cash)

Future Salary Increase Risk: The scheme cost is very sensitive to the assumed future salary escalation
rates for all the final salary defined benefit schemes. If actual future salary escalations are higher than that
assumed in the valuation actual scheme cost and hence the value of the liability will be higher than that
estimated.

Demographic Risk: In the valuation of the liability certain demographic (mortality and attrition rates)
assumptions are made. The company is exposed to this risk to the event of actual experience eventually
being wirse compared to the assumptions thereby causing an increase in the scheme cost.

Regulatory Risk: Gratuity benefit must comply with the requirements of the Payment of Gratuity Act, 1972
(as amended upto date). There is a risk of change in the regulations requiring higher payments (e.g. raising
the present ceiling of Rs. 20,00,000, raising accrual rate from 15/26 etc).

25. Segment Information:

(i) Business Segment: The Company’s business activity primarily falls within a single business segment
and hence there are no disclosures to be made under Ind AS -108, other than those already provided
in the financial statements.

(ii) Geographical Segment: The Company operates in multiple geographical area and therefore the
analysis of geographical segment is based on the areas in which customers of the Company are
located.

28 Trade receivables and trade payables with respect to few parties are subject to confirmation and reconciliation,
if any.

29 Capital Management

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents
as presented on the face of balance sheet.

The Company’s capital includes issued share capital and all other distributable reserves. The primary
objective of the Company’s capital management is to maximize shareholder value and to maintain an optimal
capital structure to reduce the cost of capital. The Company does not have any long-term borrowings and all
its capital needs are met by capital or shareholders only.

30 Financial risk management objectives and policies

The Company’s principal financial liabilities, trade and other payables, security deposits, employee
liabilities unpaid and finance lease obligation. The main purpose of these financial liabilities is to finance the
Company’s operations and to provide guarantees to support its operations. The Company’s principal financial
assets include trade and other receivables, and cash and short-term deposits that derive directly from its
operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management
oversees the management of these risks. The Company’s senior management is supported by a Risk
Management Compliance Board that advises on financial risks and the appropriate financial risk governance
framework for the Company. The financial risk committee provides assurance to the Company’s senior
management that the Company’s financial risk activities are governed by appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Company’s policies
and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. It comprises of currency risk, interest rate risk and price risk. The Company does
not have any borrowings wich carry variable rate of interest, hence, it is not exposed to interest rate risk. The
Company does not have any financial instrument which exposes it to price risk.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each divisions subject to the Company’s established policy, procedures
and control relating to customer credit risk management. Outstanding customer receivables are regularly
monitored and any shipments to major customers are generally covered by letters of credit or other forms of
credit insurance.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The
Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of
bank overdrafts, bank loans, buyer’s credit and other means of borrowings. The company invests its surplus
funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to
be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12
months can be rolled over with existing lenders.

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with
respect to the US Dollar, Australian Dollar (AUD), Canadian Dollar (CAD) and GBP. Foreign exchange risk
arises from recognised assets and liabilities denominated in a currency that is not the functional currency of
the Company. Considering the volume of foreign currency transactions, the Company’s exposure to foreign
currency risk is limited and the Company has taken forward contracts to manage its exposure. The Company
does not hedge theses foreign currency exposures by a derivative instrument or otherwise.

31 Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the
basis on which income and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instrument are disclosed in note 2 (J) to the financial statements.

(a) Financial assets and liabilities

The carrying value of financial instruments by categories as of March 31,2025 and March 31, 2024 is as
follows:

(b) Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consists of the following three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company
can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar
assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been
valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the
fair value because there is a range of possible fair value measurements and the cost represents estimate of fair
value within that range.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and
financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

(c) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their
contractual maturities:

32. Relationship with Struck-off Companies

The Company does not have transactions with any Struck off Company’s during the year.

33. Borrowings secured against current assets.

The Company does not have any borrowing from bank or financial institution.

34. Disclosure related to undisclosed income.

The Company has not disclosed any undisclosed income to income tax authorities.

35. Wilful Defaulter.

Wilful defaulter means a person or an issuer who is categorized as a wilful defaulter by any bank or
financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance
with the guidelines on wilful defaulters issued by the Reserve Bank of India. The Company is not declared
as wilful defaulter by Reserve Bank of India.

36. Benami Property

The Company does not have any property, whether movable or immovable, tangible or intangible, which
has been the subject matter of a Benami transaction.

37. Registration of charges or satisfaction with Registrar of Companies (ROC).

The Company during the year has not entered into any such transaction in which requirement for
compliance of Registration of Charges or satisfaction is required with Registrar of Companies.

39. Compliance of approved scheme of arrangements.

The Company does not have entered into any such transaction of arrangement or approval of such
arrangement scheme mentioned under Section 230 to 237 of the Companies Act, 2013.

40. Utilised or Borrowed Funds

The Company has not invested or lend money to any intermediaries on understanding that such
intermediary will 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 provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.

41. Revaluation of Property, Plant and Equipment and Right-of-Use
Assets / Intangible Assets.

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets)/
Intangible assets (if any), based on the valuation by a registered valuer as defined under rule 2 of the
Companies (Registered Valuers and Valuation) Rules, 2017.

42. Details of Crypto Currency or Virtual Currency.

The Company has not made any transaction or made investment in any crypto currency or any virtual
currency.

43. Corporate social responsibility (CSR) expenditure.

The Company does not fall into the limits prescribed in Sec. 135 of the Companies Act, 2013 for the
applicability of Corporate social responsibility expenditure. Therefore, the company does not have any
expenditure in the nature of the corporate social responsibility.

44. Ratios as per Schedule III requirements

The following are analytical ratios for the year ended March 31,2025 and March 31,2024

46 The company has converted itself from Private Limited to Public Limited, pursuant to a special resolution
passed in the extraordinary general meeting of the shareholders of the Company held on 30th June, 2022
and consequently the name of the Company has changed to “Yudiz Solutions Limited” pursuant to a fresh
certificate of incorporation by the Registrar of Companies on 21st July, 2022.

47 The company had made an initial public offering (IPO) of 27,17,600 equity shares of face value of Rs. 10/-
each fully paid up at a price of Rs. 165/- per equity share (including share premium of Rs. 155/- per equity
share) aggregating to ?4,484.04/- Lakhs. The aforementioned equity shares were of the company got listed
on NSE Emerge Platform on 17th August, 2023.

48 The Total Proceeds from the IPO issue of related expenses is ? 4,484.04 Lakhs. The object of the same are
as follows:

49 There are no other material development subsequent to the Balance Sheet date.

50 Figures for the previous year have been regrouped, rearranged and recast wherever necessary.

The accompanying notes referred to above form an integral part of these standalone financial statements.

In terms of our report of even date For and on behalf of the Board of Directors of Yudiz Solutions Limited

For DAS & PRASAD

Ch^artere^d McoLintante Bharat Shamjibhai Patel Pratik Bhaskarbhai Patel

^{Firm Registration No 303054E} Chairman & Whole time Managing Director

Director DIN: 05262863

Partner* ^ ^ DIN: 00243783

Membership No. 056921 Bharatkumar Jashwantlal Thakkar ^{Prerana Joshi}

Chief Financial Officer Company Secretary

Place: Kolkata ^ACS-A51735

Date: May 30, 2025

---

Mar 31, 2024

3.1 The Company has not revalued its property, plant and equipment, intangible assets and right of use assets as such disclosure requirement as per amendment to Schedule - III on revaluation of property, plant and equipment is not applicable.

3.2 The Company does not have immovable property, as such disclosure requirement is not applicable.

*The transaction costs of an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transactions that otherwise would have been avoided. Since, the Company has not received proceed from issue of share capital, the Company has accounted transaction costs under the head "other current assets". The proceeds from issue of share is received, transaction costs will be adjusted with the Security Premium under Other Equity.

(b) Terms/rights attached to equity shares

(i) The company has only one class of equity shares having par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend if any proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

(C) For the period of five years immediately preceding the date at which the Balance Sheet is prepared, the company has a) not allotted any shares other than for cash, b) not bought back any shares.

(d) The Company have issue 2717600 share through Initial Public Offer on 17-08-2023 of face value Rs. 10 each at a premium of Rs. 155 each.

e) Pursuant to resolution passed by the Directors of the Company on November 24, 2022 and approved by the extraordinary general meeting held on December 02, 2022, the Company has allotted equity shares of face value of ? 10 each by way of bonus issue to its shareholders bonus shares in the ratio of 1:2 to be capitalised out of the Company''s securities premium account/ free reserves or such other accounts as are permissible to be utilized for this purpose.

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of equity shares outstanding during the period / year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the period/ year.

Note:- Pursuant to resolution passed by the Directors of the Company on November 24, 2022 and approved by the extraordinary general meeting held on December 02, 2022, the Company has allotted equity shares of face value of ? 10 each by way of bonus issue to its shareholders bonus shares in the ratio of 1:2. Accordingly, basic earning per share for the current year and for earlier year have been calculated / restated after considering the above bonus issue in terms of Ind AS-33 "Earnings Per Share” (refer note 10e)

²³ Contingent Liabilities and Capital Commitments

a) The Company has given corporate guarantee to bank for loan taken by others and balance outstanding as at, March 31, 2024 is amounting to ?322.57 Lakhs and as at March 31, 2023 is amounting to ?401.25 Lakhs.

b) The Company does not have any pending litigations which would impact its financial position as at March 31, 2024 and March 31, 2023.

c) The Company does not have any commitments to be executed on capital account as at March 31, 2024 and March 31, 2023.

b) Defined Benefit Plan - Gratuity Risks to which the plan exposes the entity:

Credit Risk: If the scheme is insured and fully funded on PUC basis there is a credit risk to the extent the insurer(s) is /are unable to discharge their obligations including failure to discharge in timely manner.

Pay-as-you-go Risk: For unfunded schemes financial planning could be difficult as the benefits payable will directly affect the revenue and this could be widely fluctuating from year to year. Moreover there may be an opportunity cost of better investment returns affecting adversely the cost of the scheme.

Discount Rate Risk: The company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase in the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Liquidity Risk: This risk arises from the short term asset and liability cash flow mismatch thereby causing the company being unable to pay the benefits as they fall due in the short term. Such a situation could be the result of holding large illiquid assets disregarding the results of cash flow projections and cash outgo inflow mismatch. (Or it could be due to insufficient assets/cash)

Future Salary Increase Risk: The scheme cost is very sensitive to the assumed future salary escalation rates for all the final salary defined benefit schemes. If actual future salary escalations are higher than that assumed in the valuation actual scheme cost and hence the value of the liability will be higher than that estimated.

Demographic Risk: In the valuation of the liability certain demographic (mortality and attrition rates) assumptions are made. The company is exposed to this risk to the event of actual experience eventually being wirse compared to the assumptions thereby causing an increase in the scheme cost.

Regulatory Risk: Gratuity benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended upto date). There is a risk of change in the regulations requiring higher payments (e.g. raising the present ceiling of Rs. 20,00,000, raising accrual rate from 15/26 etc)

25. Segment Information:

(i) Business Segment: The Company''s business activity primarily falls within a single business segment and hence there are no disclosures to be made under Ind AS -108, other than those already provided in the financial statements.

(ii) Geographical Segment: The Company operates in multiple geographical area and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.

26. Deferred Tax Assets: The company has provided deferred tax assets based on the future profitability projection. The management is of the view that future taxable income will be available to realise/ adjust such deferred tax assets.

Trade receivables and trade payables with respect to few parties are subject to confirmation and 28 reconciliation, if any.

29 Capital Management

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

The Company’s capital includes issued share capital and all other distributable reserves. The primary objective of the Company’s capital management is to maximize shareholder value and to maintain an optimal capital structure to reduce the cost of capital. The Company does not have any long-term borrowings and all its capital needs are met by capital or shareholders only.

Financial risk management objectives and

30 policies

The Company’s principal financial liabilities, trade and other payables, security deposits, employee liabilities unpaid and finance lease obligation. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises of currency risk, interest rate risk and price risk. The Company does not have any borrowings wich carry variable rate of interest, hence, it is not exposed to interest rate risk. The Company does not have any financial instrument which exposes it to price risk.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each divisions subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer’s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, Australian Dollar (AUD), Canadian Dollar (CAD) and GBP. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering the volume of foreign currency transactions, the Company''s exposure to foreign currency risk is limited and the Company has taken forward contracts to manage its exposure. The Company does not hedge theses foreign currency exposures by a derivative instrument or otherwise.

31 Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 (J) to the financial statements.

(b) Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the

asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

32. Relationship with Struck-off Companies

The Company does not have transactions with any Struck off Company''s during the year.

33. Borrowings secured against current assets.

The Company does not have any borrowing from bank or financial institution.

Disclosure related to

34. undisclosed income.

The Company has not disclosed any undisclosed income to income tax authorities.

35. Wilful Defaulter.

Wilful defaulter means a person or an issuer who is categorized as a wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. The Company is not declared as wilful defaulter by Reserve Bank of India.

36. Benami Property

The Company does not have any property, whether movable or immovable, tangible or intangible, which has been the subject matter of a Benami transaction.

Registration of charges or satisfaction with Registrar of

37. Companies (ROC).

The Company during the year has not entered into any such transaction in which requirement for compliance of Registration of Charges or satisfaction is required with Registrar of Companies.

Compliance with number of layers of

38. companies.

The Company does not have any subsidiary companies as on 31st March, 2023. Therefore, the compliance with number of layers of companies is not required.

Compliance of approved scheme of

39. arrangements.

The Company does not have entered into any such transaction of arrangement or approval of such arrangement scheme mentioned under Section 230 to 237 of the Companies Act, 2013.

40. Utilised or Borrowed Funds

The Company has not invested or lend money to any intermediaries on understanding that such intermediary will 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Revaluation of Property, Plant and Equipment and Right-of-Use

41. Assets/ Intangible Assets.

The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets)/ Intangible assets (if any), based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017.

Details of Crypto Currency or Virtual

₄₂. Currency.

The Company has not made any transaction or made investment in any crypto currency or any virtual currency.

Corporate social responsibility (CSR)

43. expenditure.

The Company does not fall into the limits prescribed in Sec. 135 of the Companies Act, 2013 for the applicability of Corporate social responsibility expenditure. Therefore, the company does not have any expenditure in the nature of the corporate social responsibility.