అకౌంట్స్ గమనికలుNandani Creation Ltd.

Mar 31, 2025

q. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating losses. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of
obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item
included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle

the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is recognised as interest expense.

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 Group or a present
obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be
recognised because it cannot be measured reliably. The Group does not recognise a contingent liability but discloses
its existence in the Standalone financial statements.

r. EMPLOYEE BENEFITS

(i) Short-Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
twelve 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.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for compensated absences are not expected to be settled wholly within twelve months after the end of the
period in which the employees render the related service. These obligations are therefore measured as the present value
of expected future payments to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method less fair value of plan assets as at balance sheet date. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating to the terms of the related
obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognised
in profit and loss.

The obligations are presented as provisions in the balance sheet as the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to
occur.

(iii) Post-Employment Obligations

The Group operates the following post-employment schemes:

(a) Defined benefit plan (Gratuity)

(b) Defined contribution plans (Provident Fund)

(iv) Defined Benefit Plan (Gratuity)

The liability recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the
defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds that have terms approximating
to the terms of the related obligation.

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.
Re-measurement 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 and loss as past service cost.

(v) Defined Contribution Plans (Provident Fund)

The Group pays provident fund contributions to publicly administered provident funds as per local regulations. The
Group has no further payment obligations once the contributions have been paid. The contributions are accounted
for as defined contribution plans and the contributions are recognised as employee benefit expense when they are
due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future
payments is available.

s. CONTRIBUTED EQUITY

Equity Shares are Classified as Equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.

t. DIVIDENDS

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting
period.

u. EARNINGS PER SHARE
Basic Earnings Per Share

Basic earnings per share is calculated by dividing the profit or loss for the year attributable to equity to the owners
of the Group by the weighted average number of equity shares outstanding during the year.

The Group does not have any dilutive potential equity shares.

v. ROUNDING OF AMOUNTS

All amounts disclosed in the Standalone financial statements and notes have been rounded off to the nearest lakhs
upto two decimal places as per the requirement of Schedule III, unless otherwise stated.

w. NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP

The Ministry of Corporate Affairs notified new standards or amendments to existing standards under the Companies
(Indian Accounting Standards) Rules, as issued from time to time.

The Group applied the following amendments for the first time during the current year, which are effective from 1
April 2024:

i) Amendments to Ind AS 116 - Lease liability in a sale and leaseback

The amendments require an entity to recognise lease liability, including variable lease payments which are not linked to
an index or a rate, in a way that does not result in a gain on the Right of Use asset it retains.

ii) Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard that prescribes recognition, measurement, and disclosure
requirements, to avoid diversities in practice for accounting insurance contracts. It applies to all companies, i.e., to all
"insurance contracts” regardless of the issuer. However, Ind AS 117 is not applicable to entities which are insurance
companies registered with IRDAI.

2.1. CRITICAL ESTIMATES AND IUDGEMENT

The preparation of Standalone financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the Group''s accounting policies.
This note provides overview of the areas that involved a higher degree of judgement or complexity, and of items which
are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally
assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with
information about the basis of calculation for each affected line item in the Standalone financial statements.

The areas involving critical estimates or judgements are:

• Estimates of defined benefit obligation

• Estimate of useful life of property, plant and equipment

• Measurement of Contingent Liabilities

Estimation and judgements are continuously evaluated. They are based on historical experience and other factors
including expectation of future events that may have a financial impact on the Group and that are believed to be
reasonable under the circumstances.

2.2. STANDARDS ISSUED RUT NOT YET EFFECTIVE

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. There are no such recently issued standards or
amendments to the existing standards for which the impact on the Standalone Financial Statements is required to be
disclosed.

(iii) Variable Lease Payments

Some property leases contain variable payment terms that are linked to sales generated from a store. Variable payment terms are used for a variety of reasons, including minimising the fixed costs
base for newly established stores. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs.

(iv) Extension and Termination Options

Extension and termination options are assessed at the inception of the lease and reviewed periodically.

(v) Residual Value Guaranteed

There are no residual value guaranteed in the lease contracts.

(vi) For maturity analysis of lease liabilities refer note 41(B).

Nature and Purpose of Reserves

(a) Securities Premium: Securities premium is used to record the premium on issue of shares and premium on conversion of
warrants. The reserve is utilised in accordance with the provisions of the Act.

(b) FVOCI Debt Instruments: The fair value changes of investment in bonds are accumulated within the FVOCI debt
instruments within equity. The Company transfers amounts from this reserve to retained earnings when the relevant
debentures are sold.

(c) General Reserve : General Reserve created in earlier years is available for use in accordance with the Act.

Note :

a) Kotak Mahindra Bank CC Account

The Bank overdraft is primarily secured by exclusive charge on all existing and future receivables / current assets/ moveable assets and
first and exclusive equitable mortgage charge on residential Property situated at B 32 to 43, Mahapura Sanganer, B Block, Garden
Estate, Jaipur, Rajasthan - 302029 in the name of Anuj Mundhra & Vandana Mundhra and Sunita Devi Mundhra. Further, it is secured
by personal guarantee''s of Anuj Mundhra, Vandana Mundhra, Sunita Devi Mundhra & Dwarka Dass Mundhra and other collateral
owners. The Applicable rate of interest on CC limit is Repo rate 3% p.a.

(A) Compensated absences

The entire amount of the provision of Rs.4.24 lakhs (31 March 2024: Nil) is presented as current, since the Group does not
have an unconditional right to defer settlement for any of these obligations.The following amounts reflect leave that is not
expected to be taken or paid within the next 12 months.

(B) Defined contribution plans

The Group has defined contribution plan for its employees'' retirement benefits comprising Provident Fund & Employees’ State
Insurance Fund. The Group and eligible employees make monthly contribution to the above-mentioned funds at a specified
percentage of the covered employees salary. The obligation of the

Group is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense
recognised during the year towards

provident fund is Rs. 5.32 lakhs (31 March 2024: Rs. 3.96 lakhs). The expense recognised during the period toward
Employees ''State Insurance is Rs.2.49 lakhs
(31 March 2024: Rs 2.64 lakhs).

(C) Post-employment obligations
Defined benefit plans- Gratuity

The Group provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity.

The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes
in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.

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

(vi) Risk exposure

Through its defined benefit plans, the Group is exposed to a number of risks, the most significant on which are detailed below:

Interest rate risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s
debt investments.

Salary escalation risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase
in the salary of the plan participants will increase the plan’s liability.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on
government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.

Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during
and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

(i) Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity instruments which are
traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2. There are no
instruments categorised in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. There are no instruments categorised in level 3. There are no transfers between levels 1 and 2 during the year. The
Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting
period.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial
assets, other financial liabilities, short term borrowings, lease liabilities are considered to be the same as their fair values,
due to their short-term nature.

Majorly the security deposits and fixed deposits are redeemable on demand. Hence the fair values of security deposits and
bank deposits are approximately equivalent to the carrying amount. The Non-current borrowings are carried at amortised
cost. There is no material difference between carrying amount and fair value of non-current borrowings as at 31 March
2024 and 31 March 2025.

Other note:

The investment in equity shares of subsidiary are measured at cost. Refer note 4 for further details.

(iii) Financial risk management

The Group''s activities expose it to market risk, liquidity risk and credit risk. The Group''s board of directors has overall re
establishment and oversight of the Group''s risk management framework.

(A) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group''s receivables from customers. The carrying amounts of
financial assets represent the maximum credit risk exposure. A default on a financial asset is when the counterparty fails to
make contractual payments as per agreed terms. This definition of default is determined by considering the business
environment in which entity operates and other macro-economic factors.

Assets are written off when there is no reasonable expectation of recovery. The Group considers the probability of default
upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting year. To assess whether there is a significant increase in credit risk the Group compares the risk
of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It
considers available reasonable and supportive forwarding-looking information.

T rade and other receivables

Credit risk refers to the risk of default on its obligation by the counter party resulting in financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivable amounting to Rs. 3552.65 lakhs and Rs.
2197.67 lakhs as at 31 March 2025 and 31 March 2024, respectively. The Group''s exposure to credit risk is influenced
mainly by the individual characteristics of each customer. The management also considers the factors that may influence
the credit risk of its customer base, including the default risk of the industry and country in which customers operate. The
Group has a credit risk management policy in place to limit credit losses due to non-performance of financial counterparties
and customers. The Group monitors its exposure to credit risk on an ongoing basis at various levels. Outstanding customer
receivables are regularly monitored. The Group closely monitors the acceptable financial counterparty credit ratings and
credit limits and revise where required in line with the market circumstances.

Due to the geographical spread and the diversity of the Group''s customers, the Group is not subject to any significant
concentration of credit risks at balance sheet date. On account of adoption of Ind AS 109, the Group uses a simplified
approach (lifetime expected credit loss model) for the purpose of computation of expected credit loss for trade receivables.
The Group calculates expected credit loss on its trade receivables using ''allowance matrix'' and also takes into account
''delay risk'' on trade receivables.

Significant estimates:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and
expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on the Group''s past history, existing market conditions as well as forward looking estimates at the end of
each reporting year. For trade receivables only, the Group applies the simplified approach permitted by Ind AS 109,

"Financial Instruments", which requires expected lifetime losses to be recognised from initial recognition of the
receivables.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and
diversifying bank deposits accounts in different banks across the country.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes security deposits, and others. Credit risk related to these other
financial assets is managed by monitoring the recoverability of such amounts continuously.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding to meet obligations when due. Management monitors rolling forecasts of the Group''s liquidity position and cash
and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

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

(ii) Price risk

The Group''s exposure to price risk arises from investments held by the Group and classified in the balance sheet as fair value through Profit
and Loss. To manage its price risk arising from investments, the Group diversifies its portfolio.

Sensitivity

The table below summarises the impact of increases/decreases of the Company''s profit for the year and other equity.

The analysis is based on the assumption that the fair value of investments had increased by 5% decreased by 5% with all other variables held
constant. The Group on a regular basis monitors the changes in interest rate in the market to manage the portfolio of variable rate borrowings.

43. Capital management

The Company''s objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt. No changes were made in the objectives, policies or processes for managing
capital during the year ended 31 March 2025 and 31 March 2024.

The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting period.

44. The Company has not entered into any transaction with the struck off Companies.

45. Note on audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for Companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring Companies, which uses accounting software
for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring
that the audit trail cannot be disabled.

The Company has maintained its books of account in accounting software having the audit trail (edit log) facility, and the same was duly
enabled. However, due to a technical issue, the edit log was not being captured for a certain period. The matter was identified during a
periodic review and was immediately rectified.

47. Additional Regulatory Information Required by Schedule III of Companies Act, 2013

(i) Details of Benami Property:

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder.

(ii) Utilization of Borrowed Funds and Share Premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies),
including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(iii) Compliance with Approved Scheme(s) of Arrangements:

No scheme of arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013, hence, this is not applicable.

(iv) Undisclosed Income:

There are no transactions not recorded in the books of account that have been surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961.

(v) Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) Valuation of Property, Plant and Equipment and Intangible Assets:

As the Company has chosen cost model for its Property, Plant and Equipment (Including Right-of-Use Assets) and Intangible Assets, the question of revaluation does not arise.

(vii) Loans or Advances to Specified Persons:

The Company has not granted loans or advances in the nature of loans to promoters, directors, KMPs or the related parties (as defined under Companies Act, 2013).

(viii) Borrowings Secured Against Current Assets:

The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the group
with banks and financial institutions are in agreement with the books of accounts.

Notes Forming part of Financial Statements

(Amount in Rs lacs, unless otherwise stated)

(ix) Willful Defaulter:

The Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority.

(x) Registration of Charges or Satisfaction with Registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

(xi) Compliance with Number of Layers of Companies:

The Company complies with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(xii) Utilization of Borrowings Availed from Banks and Financial Institutions:

The borrowings obtained by the Company have been utilized for the purpose for which the same was obtained.

48. Previous year’s figures have been reclassified to conform to current year’s classification.

For P C Modi & Co. For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number: 000239C

Sd/- Sd/- Sd/-

HEMANT KOUSHIK ANUJ MUNDHRA VANDANA MUNDHRA

Partner Chairman & Managing Director Whole -Time Director

Membership Number: 412112 DIN: 05202504 DIN: 05202403

Sd/- Sd/-

DWARKA DASS MUNDHRA GUNJAN JAIN

Chief Financial Officer Company Secretary

Place: Jaipur
Date: 24 May, 2025

---

Mar 31, 2024

7. Provisions and Contingent Liability: -

a) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of 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 to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent Liabilities

A disclosure for a contingent liability is made 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 arising because of past event that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

For detailed contingent assets and liabilities refer to note 32. (Notes to the accounts)

8. Tangible Assets & Capital Work-In-Progress: -

Tangible Assets are stated at cost less Depreciation. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.

9. Property, Plant & Equipment (PPE): -

Property, Plant & Equipment, except the land, which is carried at its fair value, are accounted for on historical cost basis (inclusive of the cost of installation and other incidental costs till commencement of commercial production) net of recoverable taxes, less accumulated depreciation, and impairment loss, if any. It also includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are added to the existing asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

Depreciation on property, plant & equipment is provided on pro-rata basis, on written down value basis in the case of Plant & Machinery, Buildings and Data Processing Equipment, over the useful life of the assets estimated by the management, in the manner

prescribed in Schedule II of the Companies Act, 2013. The asset''s residual values, useful lives and method of depreciation are reviewed at the end of each reporting period and necessary adjustments are made accordingly, wherever required. The useful lives in the following cases are different from those prescribed in Schedule II of the Companies Act, 2013. The Useful Life of Various assets are mentioned in the Chart below.

11. Financial Instruments: -

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1) Financial Assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

At initial recognition, all financial assets are recognized at its fair value, in the case of a financial asset not carried at fair value through profit or loss, transaction costs that are 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 and subsequent measurement

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

I. Financial assets measured at amortized cost.

II. Financial assets measured at fair value through other comprehensive income (FVTOCI); and III.Financial assets measured at fair value through profit and loss (FVTPL)

Where financial assets are measured at fair value, gains and losses are either recognized entirely in the Statement of Profit and Loss (i.e. fair value through profit and loss), or recognized in other comprehensive income (i.e. fair value through Other Comprehensive Income).

The classification of financial assets depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition.

I. Financial assets measured at amortized cost:

A financial asset is measured at amortized cost if both the following conditions are met:

• Business Model Test: The objective of the business model is to hold financial asset in order to collect contractual cash flows (rather than to sell the asset prior to its financial maturity to realize its fair value changes); and

• Cash Flow Characteristics Test: Contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial asset is subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in interest income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit or loss. This category generally applies to trade receivables, deposits with banks, security

deposits, investment in debt instruments, cash and cash equivalents and employee loans, etc.

II. Financial instruments measured at Fair Value Through Other Comprehensive Income fFVTOCP:

A financial instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

• Business Model Test: The objective of the business model is achieved by both collecting contractual cash flows and selling financial assets; and

• Cash Flow Characteristics Test: The Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on principal amount outstanding.

Financial instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value. Fair value movements are recognized in Other Comprehensive Income (OCI) except for the recognition of interest income, impairment gains and losses and foreign exchange gain and losses which are recognized in the Statement of Profit and Loss. This category generally applies to non-current investments in un-quoted equity instruments.

III. Financial instruments measured at Fair Value Through Profit and Loss (FVTPL)

Fair Value Through Profit and Loss is a residual category. Any financial instrument, which does not meet the criteria for categorization as at amortized cost or fair value through other comprehensive income is classified as FVTPL. Financial instruments included in FVTPL category are measured initially as well as at each reporting period at fair value. Fair value movements i.e., gain or loss and interest income are recorded in Statement of Comprehensive Income.

a. Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model to the following:

• Financial Assets measured at amortized cost.

• Financial Assets measured at FVTOCI.

Expected credit losses are measured through a loss allowance at an amount equal to:

• the 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

• Financial assets that are debt instruments, and are measured at amortized cost i.e. trade receivables, deposits with banks, security deposits and employee loans etc.

• Financial assets that are debt instruments and are measured at FVTOCI. The Company as at the Balance Sheet date is not having any such instruments.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The trade receivables are initially recognized at the sale/recoverable value and are assessed at each Balance Sheet date for collectability. Trade receivables are classified as current assets, if collection is expected within twelve months as at Balance Sheet date, if not, they are classified under non-current assets.

For recognition of impairment loss on other 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 months (Expected Credit Loss) ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12-months ECL.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on timely basis.

b. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s Balance Sheet date) when:

a) The rights to receive cash flows from the asset have been expired/transferred, or

b) The Company retains the contractual right 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 Company has transferred an asset, it evaluates whether it has substantially transferred all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. When the Company has not transferred substantially all the risks and rewards of ownership of a financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. When the entity retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

2) Financial Liabilities

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans, borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include loans, borrowings, trade payables, security deposits and other payables etc.

b) Subsequent measurement

All the financial liabilities after initial recognition at fair value, are subsequently measured at amortized cost using EIR method. Amortized cost is calculated by considering any discount or premium on acquisition and costs or fee that is an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

c) Financial Guarantee Contract

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

d) 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 de-recognition 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.

e) Offsetting of financial instruments:

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet, if there is enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

13. Investments: -

Non-Current/ Long-term Investments are stated at fair value as per IND AS 32 and 109 except investment in subsidiaries are stated at cost. Provision is made for diminution in the value of the investments, if, in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an investment, the difference between it carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Investments are either classified as current or non-current based on management''s intention. Long Term Investments includes investment made in the share capital of Subsidiary Company which are carried at cost.

14. Foreign Currency Transactions: -

a. Initial recognition

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of the transaction.

b. Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) as at Balance Sheet date are restated at the year End rates.

c. Exchange difference

Exchange differences arising on settlement of monetary items are recognized as income or expense in the period in which they arise.

Exchange difference arising on restatement of foreign currency monetary items as at the year End being difference between exchange rate prevailing on initial recognition/subsequent restatement on reporting date and as at current reporting date is adjusted in the Statement of Profit & Loss for the respective year.

Any expense incurred in respect of Forward contracts entered into for the purpose of hedging is charged to the Statement of Profit and loss.

1 5. Inve n tori es: -

The Inventories are carried in the Balance Sheet as follows:

A. Raw materials and stores & spares: At lower of cost and net realizable Value

B. Finished goods and stock-in-process: At lower of cost, and net realizable value. Cost includes cost of inputs, conversion costs and other costs incurred in bringing finished goods and stock-in-process, to their present location and condition.

The net-realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make sale.

16 Duty Drawback: -

Duty Drawback is recorded on Receipt basis. Management is not able to estimable the amount of Claim receivable, therefore the duty drawback is recorded on receipt basis rather than on Accrual basis.

17. Prior Period Expenses: -

Prior Period Expenses for previous years have been expensed out during the current year and it is disallowed as per Income Tax Act.

18. Management Remuneration: -

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of Companies Act, 2013 and Rule 5 (1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table: -

19. Cash and Cash Equivalents: -

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

20. Segment Reporting: -

The activities of the company are such that the According to IND AS-108 "Operating Segment”: is not applicable in the company.

21. Lease: -

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. The Company allocates the consideration in the contract to the lease based on their relative stand-alone prices. However, for leases of real estate for which the Company is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include net present value of the following lease payments:

• Fixed payments (including in substance fixed payments), less any lease incentives receivable,

• Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date,

• Amounts expected to be payable by the Company under residual value guarantees,

• The exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

• Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The

lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for lease in the Company, the lessee''s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in similar economic environment with similar terms, security, and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of lease liability,

• Any lease payments made at or before the commencement date less any lease incentives received,

• Any initial direct costs, and

• Restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

Payments associated with short-term leases of equipment and all leases of low value assets are recognised on a straight-line basis as an expense in profit or loss. Short term leases are leases with a lease term of twelve months or less.

22. Impairment of Non-Financial Assets: -

The Company assesses at each reporting date, using external and internal sources, whether there is an indication that a non-financial asset may be impaired and whether there is an indication of reversal of impairment loss recognised in the previous period/s. If any indication exists, or when annual impairment testing for an asset is required, the Company determines the recoverable amount and impairment loss is recognised when the carrying value of an asset exceeds its recoverable amount.

The recoverable amount is determined:

• in the case of an individual asset, at the higher of the asset''s fair value less cost of sell and value in use; and

• in the case of cash generating unit (a group of assets that generates identified, independent cash flows) at the higher of the cash generating unit''s fair value less cost to sell and value in use.

In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that effects current market assessments of the time value of money and the risks specific to that asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

An impairment loss for an asset is reversed, if and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized, the carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss being recognized for the asset in prior year/s.

23. Employee Benefits: -

a. Short Term Employee Benefits

All Employee benefits payable within twelve months of rendering the services are classified as short-term benefits. Such benefits include salaries, wages, bonus, awards, ex-gratia etc. and the same are recognized in the period in which the employee renders the related services.

b. Defined contribution plan:

The Company''s approved provident fund scheme, pension scheme, employees'' state insurance scheme, and employees'' superannuation scheme are defined contribution plans. The Company has no obligation, other than the contribution paid/payable under such schemes. The contribution paid/payable under the schemes is recognized during the period in which the employee renders the related service.

c. Defined Benefit Plan

The employees'' Gratuity fund scheme is the Company''s defined benefit plan and is partly funded / managed by a Trust. The liability with respect to gratuity is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. The difference, if any, between the actuarial valuation and the balance of the funds maintained by the

Trust, is provided for as liability / assets in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.

d. Other Long-Term Benefit

The liability towards encashment of the employees'' long term compensated absences, which are partly en-cashable during the service period and balance at the time of retirement / separation of the employees is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. Re-measurement, comprising of actuarial gains and losses, are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.

C. Others Accounting Policies

1. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements / information may not necessarily be same as those appearing in the respective audited financial statements for the previous year.

2. The Micro Small and Medium Enterprise registered under The Micro small and Medium Enterprise Development Act 2006 have been taken based on the list of MSME creditors provided by the management. However, as the Company has not received any claims in respect of such interest and as such, no provision has been made in the books of accounts.

Note 14.3 Details of securities and Terms of repayment

I. Secured (A). Term Loans

a) . From Banks

1. HDFC Bank Limited

Secured by hypothecation of Volvo car as specified in the schedule annexure to the loan agreement executed on 19.05.2022. The loan is repayable in 60 monthly installments is amount of Rs. 124,249/- and The period of maturity w.r.t balance sheet date is 40 months.

b) From other financial institutions

I. SIDBI

Company has taken loan amount of Rs. 40.00 Lakhs (Including Fixed Deposit amount of Rs. 5.00 lakhs) from SIDBI. Secured by hypothecation of all equipment, plants, machineries, and other assets of company acquired from the assistance sanctioned by SIDBI. The loan agreement executed on 29.06.2020 and repayment shall commence from 10.01.2021 with 54 monthly installments, for 53 months amount of Rs. 74,000 and for last month is Rs. 78,000. The period of maturity w.r.t balance sheet date is 17 months.

II. Unsecured

(A) From NBFC and other financial institutions

1. Aditya Birla Finance Limited

Company has taken Loan from Aditya Birla Finance Limited amounting of Rs. 75 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00% pa. The Loans is sanctioned for 36 months. The repayment shall commence from 05.09.2022 in 36 monthly insttalement of Rs. 2,65,533. The period of maturity w.r.t balance sheet date is 17 months.

2. Ambit Finvest Private Limited

Company has taken Loan from Ambit Finvest Private Limited amounting as for Rs. 2 5 Lakhs which is used to augment net working capital. The Loans carries ROI of 18.00%. The Loans is sanctioned for 12 months. The repayment shall commence from 05.03.2022 in 12 monthly insttalement of Rs. 2,29,200. The loan amount is fully paid during the previous year.

3. Axis Finance Limited

Company has taken Loan from Axis Finance Limited amounting as for Rs. 23.08 Lakhs which is used to augment net working capital. The Loans carries ROI of 15.65%. The Loans is sanctioned for 36 months. The repayment shall commence from 05.03.2022 in 36 monthly insttalement of Rs. 82,303. The period of maturity w.r.t balance sheet date is 11 months.

4. Cholamandalam Investment and finance company limited

Company has taken Loan from Clix Capital Services Private Limited amounting as for Rs. 35.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 36 months. The repayment shall commence from 05.10.2023 in 36 monthly insttalement of Rs. 123,916. The period of maturity w.r.t balance sheet date is 30 months.

5. Clix Capital Services Private Limited

Company has taken Loan from Clix Capital Services Private Limited amounting as for Rs. 50.25 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 31 months with 4 months moratorium. The repayment shall commence from 02.09.2022 in 36 monthly insttalement of Rs. 179,160.

The period of maturity w.r.t balance sheet date is 30 months.

6. Fedbank Financial Services Limited

Company has taken Loan from Fedbank Financial Services Limited amounting as for Rs. 30.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 02.03.2022 in 24 monthly insttalement of Rs. 148,327. the loan amount fully paid during the previous year.

7. Growth Source Financial Technologies Private Limited

Company has taken Loan from Growth Source Financial Technologies Private Limited amounting as for Rs. 30.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 18 months. The repayment shall commence from 05.11.2023 in 30 monthly insttalement of Rs. 189,280. The period of maturity w.r.t balance sheet date is 13 months.

8. Hero Fincorp Limited

Company has taken Loan from Hero Fincorp Limited amounting as for Rs. 25.30 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 36 months. The repayment shall commence from 03.03.2022 in 36 monthly insttalement of Rs. 90,184. The period of maturity w.r.t balance sheet date is 11 months.

9. ICICI Bank Limited

Company has taken Loan from ICICI Bank Limited amounting as for Rs. 50.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 36 months. The repayment shall commence from 05.11.2023 in 36 monthly insttalement of Rs. 1,78,543. The period of maturity w.r.t balance sheet date is 31 months.

10. IDFC First Bank Limited

Company has taken Loan from IDFC First Bank Limited amounting as for Rs. 35.91 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 40 months. The repayment shall commence from 02.01.2020 in 40 monthly insttalement of Rs. 1,2 3,916. The loan amount is fully paid during the previous year.

11. Kotak Mahindra Bank Limited

Company has taken Loan from Kotak Mahindra Bank Limited amounting as for Rs. 40.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 10.02.2022 in 24 monthly insttalement of Rs. 1,97,193. The loan amount is fully paid during the previous year.

12. Oxyzo Financial Services Private Limited

Company has taken Loan from Oxyzo Financial Services Private Limited amounting as for Rs. 75.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 05.03.2022 in 24 monthly insttalement of Rs. 3,70,817. The loan amount fully paid during the previous year.

13. Tata Capital Financial Services Limited

Company has taken Loan from Tata Capital Financial Services Limited amounting as for Rs. 30.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 24 months. The repayment shall commence from 05.11.2023 in 24 monthly insttalement of Rs. 1,47,607.The period of maturity w.r.t balance sheet date is 19 months.

14. Tata Capital Financial Services Limited

Company has taken Loan from Tata Capital Financial Services Limited amounting as for Rs. 36.99 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 43 months with 4 months moratorium (from 05.05.2020 to 05.08.2020). The repayment shall commence from 05.02.2020 in 43 monthly insttalement of Rs. 1,25,141. The loan amount fully paid during the previous year.

15. Unity Small Finance Bank Limited

Company has taken Loan from Unity Small Finance Bank Limited amounting as for Rs. 40.21 Lakhs which is used to augment net working capital. The Loans carries ROI of 18.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 04.03.2022 in 24 monthly insttalement of Rs. 2,00,722. The loan amount fully paid during the previous year.

16. Unity Small Finance Bank Limited

Company has taken Loan from Unity Small Finance Bank Limited amounting as for Rs. 40.80 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 24 months. The repayment shall commence from 04.10.2023 in 24 monthly insttalement of Rs. 2,00,746. The period of maturity w.r.t balance sheet date is 18 months.

17. KISETSU Saison Finance India Private Limited

Company has taken Loan fromKISETSU Saison Finance India Private Limited amounting as for Rs. 40.80 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 24 months. The repayment shall commence from 04.10.2023 in 24 monthly insttalement of Rs. 2,00,746. The period ofmaturity w.r.t balance sheet date is 18 months.

Note - 32 - Financial Instruments 1. Capital Management

The Company''s capital management objectives are to ensure the company''s ability to continue as a going concern, to provide an adequate return to share holders

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. Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

The Company has complied with the covenants as per the terms and conditions of the major borrowing facilities throughout the Reporting Period.

2. Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims to identify, assess, mitigate the risks in order to minimize the potential adverse effect on the Company''s financial performance.

(*) Investment in subsidiaries are measured at cost as per Ind AS 27, “Separate financial statements”, and hence not presented here.

B. Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. There are no material market risk affecting the financial position of the Company.

(a) Interest Rate Risk

Interest risk is the risk or uncertainty arising from possible interest rate movements and their impact on the future obligations or cash flows of

a business. There are no material interest risk affecting the financial position of the Company.

(b) Currency Risk

Interest risk is the risk or uncertainty arising from possible interest rate movements and their impact on the future obligations or cash flows of

a business. There are no material interest risk affecting the financial position of the Company.

(c) Other Price Risk

Other Price Risk is the Risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to price risk arising mainly from investments in equity/equity-oriented instruments recognized at FVTPL/FVTOCI.

C. 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, trade receivables and other Financial assets measured at amortized cost. The Company continuously

monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

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 following 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, (ii) Moderate credit risk, (iii) High credit risk.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities , Loans to staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting 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 debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

D. Liquidity Risk

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. 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.

Additional Regulatory Information as per Schedule II of The Companies Act,2013

1. The company does not own any immovable property.

2. The Company does not have any investment property; hence company has not required to disclose whether investment property is valued at fair value is based on the valuation by a Registered valuer as defined rule 2 of the companies (Registered Valuers and Valuation) Rules 2017.

3. The Company has not revalued its Property, Plant and Equipment (including Right of use Assets), hence the company has not required to disclose whether the valuation is based on the valuation by a registered valuer as defined under rule 2 of the company (Registered Valuers and Valuation) Rules 2017.

4. The Company has not revalued its Intangible Assets; hence the company has not required to disclose whether the valuation is based on the valuation by a registered valuer as defined under rule 2 of the company (Registered Valuers and Valuation) Rules 2017.

5. The disclosure of the Loans and Advances in the nature of the loans granted to promoters, directors, KMPs and the related parties (as defined in Companies Act, 2013) either severally or jointly with any other persons that are

6. There are no Capital Work in Progress as at Balance Sheet date.

7. There are no intangible assets under development as at Balance Sheet date.

8. Benami Property

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transections (Prohibition) Act, 1988 (45 of 1988) and the rules thereunder

9. Returns and filing to Banks and financial institutions

The company has availed borrowings from banks and financial institutions on the basis of the security of its current assets. The quarterly returns and statements filed with them are in agreements with the books of accounts

10. Wilful Defaulters

The company is not declared as wilful defaulter by any bank or financial institutions or other lender

11. Relationship with struck of companies

The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

12. Registration or satisfaction of charges with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

13. Layers of the company

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, The company have a subsidiary company i.e. Desi Fusion India Private Limited as at the balance sheet date.

14. Corporate Social Responsibility (CSR)

The Company has not been required to constitute CSR committee and to make expenses towards CSR activities as per the requirements of Section 135 of the Companies Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014.

15. Crypto Currency or Virtual Currency

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

17. Compliance with approved schemes of arrangements

There is no scheme approved by competent authority as at balance sheet date.

18. Utilisation of Borrowed Funds and Share Premium

The company has not advanced or loaned or invested funds to any other persons or entities with the understanding that, that person/entity should invest in any other person or entity identified in any manner whatsoever by or on behalf of the company or provided any guarantee, security, or like to or on behalf of the company.

The company has not received any amount from any other persons/entity with the understanding, whether written or oral, that the company shall directly or indirectly invest in any other person or entity.

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Mar 31, 2023

7. Provisions and Contingent Liability: -

a) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of 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 to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent Liabilities

A disclosure for a contingent liability is made 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 arising because of past event that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

For detailed contingent assets and liabilities refer to note 32. (Notes to the accounts)

8. Tangible Assets & Capital Work-In-Progress: -

Tangible Assets are stated at cost less Depreciation. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.

9. Property, Plant & Equipment (PPE): -

Property, Plant & Equipment, except the land, which is carried at its fair value, are accounted for on historical cost basis (inclusive of the cost of installation and other incidental costs till commencement of commercial production) net of recoverable taxes, less accumulated depreciation, and impairment loss, if any. It also includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are added to the existing asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

Depreciation on property, plant & equipment is provided on pro-rata basis, on written down value basis in the case of Plant & Machinery, Buildings and Data Processing Equipment, over the useful life of the assets estimated by the management, in the manner prescribed in Schedule II of the Companies Act, 2013. The asset''s residual values, useful lives and method of depreciation are reviewed at the end of each reporting period and necessary adjustments are made accordingly, wherever required. The useful lives in the following cases are different from those prescribed in Schedule II of the Companies Act, 2013. The Useful Life of Various assets are mentioned in the Chart below.

11. Financial Instruments: -

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

At initial recognition, all financial assets are recognized at its fair value, in the case of a financial asset not carried at fair value through profit or loss, transaction costs that are 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 and subsequent measurement

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

I. Financial assets measured at amortized cost.

II. Financial assets measured at fair value through other comprehensive income (FVTOCI); and III.Financial assets measured at fair value through profit and loss (FVTPL)

Where financial assets are measured at fair value, gains and losses are either recognized entirely in the Statement of Profit and Loss (i.e. fair value through profit and loss), or recognized in other comprehensive income (i.e. fair value through Other Comprehensive Income).

The classification of financial assets depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition.

I. Financial assets measured at amortized cost:

A financial asset is measured at amortized cost if both the following conditions are met:

• Business Model Test: The objective of the business model is to hold financial asset in order to collect contractual cash flows (rather than to sell the asset prior to its financial maturity to realize its fair value changes); and

• Cash Flow Characteristics Test: Contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial asset is subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in interest income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit or loss. This category generally applies to trade receivables, deposits with banks, security deposits, investment in debt instruments, cash and cash equivalents and employee loans, etc.

II. Financial instruments measured at Fair Value Through Other Comprehensive Income fFVTOCI):

A financial instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

• Business Model Test: The objective of the business model is achieved by both collecting contractual cash flows and selling financial assets; and

• Cash Flow Characteristics Test: The Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on principal amount outstanding.

Financial instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value. Fair value movements are recognized in Other Comprehensive Income (OCI) except for the recognition of interest income, impairment gains and losses and foreign exchange gain and losses which are recognized in the Statement of Profit and Loss. This category generally applies to non-current investments in un-quoted equity instruments.

Fair Value through Profit and Loss is a residual category. Any financial instrument, which does not meet the criteria for categorization as at amortized cost or fair value through other comprehensive income is classified as FVTPL. Financial instruments included in FVTPL category are measured initially as well as at each reporting period at fair value. Fair value movements i.e., gain or loss and interest income are recorded in Statement of Comprehensive Income.

a. Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model to the following:

• Financial Assets measured at amortized cost.

• Financial Assets measured at FVTOCI.

Expected credit losses are measured through a loss allowance at an amount equal to:

• the 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

• Financial assets that are debt instruments, and are measured at amortized cost i.e. trade receivables, deposits with banks, security deposits and employee loans etc.

• Financial assets that are debt instruments and are measured at FVTOCI. The Company as at the Balance Sheet date is not having any such instruments.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The trade receivables are initially recognized at the sale/recoverable value and are assessed at each Balance Sheet date for collectability. Trade receivables are classified as current assets, if collection is expected within twelve months as at Balance Sheet date, if not, they are classified under non-current assets.

For recognition of impairment loss on other 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 months (Expected Credit Loss) ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12-months ECL.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on timely basis.

b. DE recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s Balance Sheet date) when:

a) The rights to receive cash flows from the asset have been expired/transferred, or

b) The Company retains the contractual right 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 Company has transferred an asset, it evaluates whether it has substantially transferred all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. When the Company has not transferred substantially all the risks and rewards of ownership of a financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. When the entity retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

a) Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans, borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include loans, borrowings, trade payables, security deposits and other payables etc.

b) Subsequent measurement

All the financial liabilities after initial recognition at fair value, are subsequently measured at amortized cost using EIR method. Amortized cost is calculated by considering any discount or premium on acquisition and costs or fee that is an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

c) Financial Guarantee Contract

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

d) DE recognition

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 de-recognition 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.

e) Offsetting of financial instruments:

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet, if there is enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

12. Earnings per Share: -

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. The numbers of equity shares are adjusted retrospectively for all periods presented.

13. Investments: -

Non-Current/ Long-term Investments are stated at fair value as per IND AS 32 and 109 except investment in subsidiaries are stated at cost. Provision is made for diminution in the value of the investments, if, in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an investment, the difference between it carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

Investments are either classified as current or non-current based on management''s intention. Long Term Investments includes investment made in the share capital of Subsidiary Company which are carried at cost.

14. Foreign Currency Transactions: -

a. Initial recognition

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of the transaction.

b. Measurement of foreign currency monetary items at Balance Sheet date

Foreign currency monetary items (other than derivative contracts) as at Balance Sheet date are restated at the year End rates.

c. Exchange difference

Exchange differences arising on settlement of monetary items are recognized as income or expense in the period in which they arise.

Exchange difference arising on restatement of foreign currency monetary items as at the year End being difference between exchange rate prevailing on initial recognition/subsequent restatement on reporting date and as at current reporting date is adjusted in the Statement of Profit & Loss for the respective year.

Any expense incurred in respect of Forward contracts entered into for the purpose of hedging is charged to the Statement of Profit and loss.

15. Inve nto ri e s: -

The Inventories are carried in the Balance Sheet as follows:

A. Raw materials and stores & spares: At lower of cost and net realizable Value

B. Finished goods and stock-in-process: At lower of cost, and net realizable value. Cost includes cost of inputs, conversion costs and other costs incurred in bringing finished goods and stock-in-process, to their present location and condition.

The net-realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make sale.

16 Duty Drawback: -

Duty Drawback is recorded on Receipt basis. Management is not able to estimable the amount of Claim receivable, therefore the duty drawback is recorded on receipt basis rather than on Accrual basis.

17. Prior Period Expenses: -

Prior Period Expenses for previous years have been expensed out during the current year and it is disallowed as per Income Tax Act.

18. Management Remuneration: -

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of Companies Act, 2013 and Rule 5 (1) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table: -

19. Cash and Cash Equivalents: -

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

20. Segment Reporting: -

The activities of the company are such that the According to IND AS-108 "Operating Segment”: is not applicable in the company.

21. Lease: -

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. The Company allocates the consideration in the contract to the lease based on their relative stand-alone prices. However, for leases of real estate for which the Company is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include net present value of the following lease payments:

• Fixed payments (including in substance fixed payments), less any lease incentives receivable,

• Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date,

• Amounts expected to be payable by the Company under residual value guarantees,

• The exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

• Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for lease in the Company, the lessee''s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in similar economic environment with similar terms, security, and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of lease liability,

• Any lease payments made at or before the commencement date less any lease incentives received,

• Any initial direct costs, and

• Restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

Payments associated with short-term leases of equipment and all leases of low value assets are recognised on a straight-line basis as an expense in profit or loss. Short term leases are leases with a lease term of twelve months or less.

22. Impairment of Non-Financial Assets: -

The Company assesses at each reporting date, using external and internal sources, whether there is an indication that a non-financial asset may be impaired and whether there is an indication of reversal of impairment loss recognised in the previous period/s. If any indication exists, or when annual impairment testing for an asset is required, the Company determines the recoverable amount and impairment loss is recognised when the carrying value of an asset exceeds its recoverable amount.

The recoverable amount is determined:

• in the case of an individual asset, at the higher of the asset''s fair value less cost of sell and value in use; and

• in the case of cash generating unit (a group of assets that generates identified, independent cash flows) at the higher of the cash generating unit''s fair value less cost to sell and value in use.

In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that effects current market assessments of the time value of money and the risks specific to that asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model

is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

An impairment loss for an asset is reversed, if and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized, the carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss being recognized for the asset in prior year/s.

23. Employee Benefits: -

a. Short Term Employee Benefits

All Employee benefits payable within twelve months of rendering the services are classified as short-term benefits. Such benefits include salaries, wages, bonus, awards, ex-gratia etc. and the same are recognized in the period in which the employee renders the related services.

b. Defined contribution plan:

The Company''s approved provident fund scheme, pension scheme, employees'' state insurance scheme, and employees'' superannuation scheme are defined contribution plans. The Company has no obligation, other than the contribution paid/payable under such schemes. The contribution paid/payable under the schemes is recognized during the period in which the employee renders the related service.

c. Defined Benefit Plan

The employees'' Gratuity fund scheme is the Company''s defined benefit plan and is partly funded / managed by a Trust. The liability with respect to gratuity is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. The difference, if any, between the actuarial valuation and the balance of the funds maintained by the Trust, is provided for as liability / assets in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.

d. Other Long-Term Benefit

The liability towards encashment of the employees'' long term compensated absences, which are partly en-cashable during the service period and balance at the time of retirement / separation of the employees is determined based on the actuarial valuation on projected unit credit method as at the balance sheet date. Re-measurement, comprising of actuarial gains and losses, are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.

C. Others Accounting Policies

1. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements / information may not necessarily be same as those appearing in the respective audited financial statements for the previous year.

2. The Micro Small and Medium Enterprise registered under The Micro small and Medium Enterprise Development Act 2006 have been taken based on the list of MSME creditors provided by the management. However, as the Company has not received any claims in respect of such interest and as such, no provision has been made in the books of accounts.

b) From other financial institutions

I. SIDBI

Company has taken loan amount of Rs. 40.00 Lakhs (Including Fixed Deposit amount of Rs. 5.00 lakhs) from SIDBI. Secured by hypothecation of all equipment, plants, machineries, and other assets of company acquired from the assistance sanctioned by SIDBI. The loan agreement executed on 29.06.2020 and repayemnt shall commence from 10.01.2021 with 54 monthly installments, for 53 months amount of Rs. 74,000 and for last month is Rs. 78,000. The period of maturity w.r.t balance sheet date is 29 months.

II. Unsecured

(A) From NBFCand other financial institutions

1. Aditya Birla Finance Limited

Company has taken Loan from Aditya Birla Finance Limited amounting of Rs. 75 Lakhs which is used to augment networking capital. The Loans carries ROI of 17.00% pa. The Loans is sanctioned for 36 months. The repayment shall commence from 05.09.2021 in 36 monthly insttalement of Rs. 2,67,396. The period of maturity w.r.t balance sheet date is 17 months.

2. Ambit Finvest Private Limited

Company has taken Loan from Ambit Finvest Private Limited amounting as for Rs. 25 Lakhs which is used to augment net working capital. The Loans carries ROI of 18.00%. The Loans is sanctioned for 12 months. The repayment shall commence from 05.03.2022 in 12 monthly insttalement of Rs. 2,29,200. The loan amount is fully paid during the previous year.

3. Axis Finance Limited

Company has taken Loan from Axis Finance Limited amounting as for Rs. 23.08 Lakhs which is used to augment net working capital. The Loans carries ROI of 15.65%. The Loans is sanctioned for 36 months. The repayment shall commence from 05.03.2022 in 36 monthly insttalement of Rs. 82,303. The period of maturity w.r.t balance sheet date is 23 months.

4. Qix Capital Services Private Limited

Company has taken Loan from Clix Capital Services Private Limited amounting as for Rs. 35.26 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 31 months with 4 months moratorium. The repayment shall commence from 02.01.2020 in 31 monthly insttalement of Rs. 171,345. The loan amount is fully paid during the previous year.

5. Fedbank Financial Services Limited

Company has taken Loan from Fedbank Financial Services Limited amounting as for Rs. 30.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 02.03.2022 in 24 monthly insttalement of Rs. 148,327. The period of maturity w.r.t balance sheet date is 11 months.

6. Growth Source Financial Technologies Private Limited

Company has taken Loan from Growth Source Financial Technologies Private Limited amounting as for Rs. 38.38 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 30 months. The repayment shall commence from 05.03.2022 in 30 monthly insttalement of Rs. 137,356. the loan amount fully paid during the previous year.

7. Jiero Fincoi^p Lim ited_________________________________________

Company has taken Loan from Hero Fincorp Limited amounting as for Rs. 20.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 30 months. The repayment shall commence from 03.01.2020 in 30 monthly insttalement of Rs. 98,885. the loan amount fully paid during the previous year.

8. Hero Fincorp Limited

Company has taken Loan from Hero Fincorp Limited amounting as for Rs. 25.30 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 36 months. The repayment shall commence from 03.03.2022 in 36 monthly insttalement of Rs. 90,184. The period of maturity w.r.t balance sheet date is 23 months.

9. ICICI Bank Limited

Company has taken Loan from ICICI Bank Limited amounting as for Rs. 50.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.00%. The Loans is sanctioned for 36 months. The repayment shall commence from 05.09.2021 in 36 monthly insttalement of Rs. 1,75,940. The loan amount fully paid during the previous year.

10. IDFC First Bank Limited

Company has taken Loan from IDFC First Bank Limited amounting as for Rs. 35.91 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 40 months. The repayment shall commence from 02.01.2020 in 40 monthly insttalement of Rs. 1,23,916. The period of maturity w.r.t balance sheet date is 1 month.

11. IDFC First Bank Limited

Company has taken Loan from IDFC First Bank Limited amounting as for Rs. 59.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 16.00%. The Loans is sanctioned for 36 months. The repayment shall commence from 02.03.2022 in 36 monthly insttalement of Rs. 2,07,427. The loan amount fully paid during the previous year.

12. Kotak Mahindra Bank Limited

Company has taken Loan from Kotak Mahindra Bank Limited amounting as for Rs. 40.00 Lakhs which is used to augment networking capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 10.02.2022 in 24 monthly insttalement of Rs. 1,97,193. The period of maturity w.r.t balance sheet date is 10 months.

13. Lendingkart Finance Limited

Company has taken Loan from Lendingkart Finance Limited amounting as for Rs. 50.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 15.00%. The Loans is sanctioned for 26 months. The repayment shall commence from 30.12.2019 in 26 monthly insttalement of Rs. 2,42,433. The loan amount fully paid during the previous year.

14. Magma Fincorp Limited

Company has taken Loan from Magma Fincorp Limited amounting as for Rs. 60.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 29 months. The repayment shall commence from 03.01.2020 in 29 monthly insttalement of Rs. 3,98,609. The loan amount fully paid during the previous year.

15. MAS Financial Services Limited

Company has taken Loan from MAS Financial Services Limited amounting as for Rs. 133.00 Lakhs including security deposits of Rs. 33.25 Lakhs, which is used to augment net working capital. The Loans carries ROI of 14.00%. The Loans is sanctioned for 36 months. The repayment shall commence from 02.03.2022 in 36 monthly insttalement of Rs. 4,54,562. The loan amount fully paid during the previous year.

16. OxyzoFinanc ialervices_lViva_te_I. mrited________________________________

Company has taken Loan from Oxyzo Financial Services Private Limited amounting as for Rs. 75.00 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 05.03.2022 in 24 monthly insttalement of Rs. 3,70,817. The period of maturity w.r.t balance sheet date is 11 months.

17. Tata Capital Financial Services Limited

Company has taken Loan from Tata Capital Financial Services Limited amounting as for Rs. 25.00 Lakhs which is used to augment networking capital. The Loans carries ROI of 16.50%. The Loans is sanctioned for 24 months. The repayment shall commence from 05.03.2022 in 24 monthly insttalement of Rs. 1,23,006. The loan amount fully paid during the previous year.

18. Tata Capital Financial Services Limited

Company has taken Loan from Tata Capital Financial Services Limited amounting as for Rs. 36.99 Lakhs which is used to augment net working capital. The Loans carries ROI of 17.00%. The Loans is sanctioned for 43 months with 4 months moratorium (from 05.05.2020 to 05.08.2020). The repayment shall commence from 05.02.2020 in 43 monthly insttalement of Rs. 1,25,141. The period of maturity w.r.t balance sheet date is 5 months.

19. Unity Small Finance Bank Limited

Company has taken Loan from Unity Small Finance Bank Limited amounting as for Rs. 40.21 Lakhs which is used to augment net working capital. The Loans carries ROI of 18.00%. The Loans is sanctioned for 24 months. The repayment shall commence from 04.03.2022 in 24 monthly insttalement of Rs. 2,00,722. The period of maturity w.r.t balance sheet date is 11 months.

Note - 30 - Financial Instruments____

1. Capital Management

The Company’s capital management objectives are to ensure the company''s ability to continue as a going concern, to provide an adequate return to share holders

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. Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt

The Company manages its capital on the basis of Net Debt to Equity Ratio which is Net Debt (Total Borrowings net of Cash and Cash Equivalents) divided by total equity.

2. Financial Risk Management - Objectives and Policies___

The Company’s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments._

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims to identify, assess, mitigate the risks in order to minimi/.e the potential adverse effect on the Company’s financial performance.

(*) Investment in subsidiaries are measured at cost as per Ind AS 27, "Separate financial statements”, and hence not presented here

B. Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. There are no material market risk affecting the financial position of the Company.

(a) Interest Rate Risk

Interest risk is the risk or uncertainty arising from possible interest rate movements and their impact on the future obligations or cash flows of a business. There are no material interest risk affecting the financial position of the Company.

(b) Currency Risk

Currency risk is the risk or uncertainty arising from possible interest rate movements and their impact on the future obligations or cash flows of a business. There are no material interest risk affecting the financial position of the Company.

(c) Other Price Risk

Other Price Risk is the Risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to price risk arising mainly from investments in equity/equity-oriented instruments recognized at FVTPL/FVTOCI.

(d) 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, trade receivables and other Financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

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 following 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, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities, Loans to staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting 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 debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

1. Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default based on the criteria defined below and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Further, the Company has evaluated recovery of receivables on a case to case basis. No provision on account of expected credit loss model has been considered for related party balances. The Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward - looking estimate. The provision matrix at the end of reporting period is as follows:

2. Liquidity Risk

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. 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.

Additional Regulatory Information as per Schedule II of the Companies Act, 2013

1. The company does not own any immovable property.

2. The Company does not have any investment property; hence company has not required to disclose whether investment property is valued at fair value is based on the valuation by a Registered valuer as defined rule 2 of the companies (Registered Valuers and Valuation) Rules 2017.

3. The Company has not revalued its Property, Plant and Equipment (including Right of use Assets), hence the company has not required to disclose whether the valuation is based on the valuation by a registered valuer as defined under rule 2 of the company (Registered Valuers and Valuation) Rules 2017.

4. The Company has not revalued its Intangible Assets; hence the company has not required to disclose whether the valuation is based on the valuation by a registered valuer as defined under rule 2 of the company (Registered Valuers and Valuation) Rules 2017.

5. The disclosure of the Loans and Advances in the nature of the loans granted to promoters, directors, KMPs and the related parties (as defined in Companies Act, 2013) either severally or jointly with any other persons that are

a) Repayable on demand or

6. There are no Capital Work in Progress as at Balance Sheet date.

7. There are no intangible assets under development as at Balance Sheet date.

8. Benami Property

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transections (Prohibition) Act, 1988 (45 of 1988) and the rules thereunder

9. Returns and filing to Banks and financial institutions

The company has availed borrowings from banks and financial institutions on the basis of the security of its current assets. The quarterly returns and statements filed with them are in agreements with the books of accounts

10. Wilful Defaulters

The company is not declared as wilful defaulter by any bank or financial institutions or other lender

11. Relationship with struck of companies

The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

12. Registration or satisfaction of charges with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

13. Layers of the company

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, The company have a subsidiary company i.e. Desi Fusion India Private Limited as at the balance sheet date.

14. Corporate Social Responsibility (CSR)

The Company has not been required to constitute CSR committee and to make expenses towards CSR activities as per the requirements of Section 135 of the Companies Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014.

15. Crypto Currency or Virtual Currency

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

17. Compliance with approved schemes of arrangements

There is no scheme approved by competent authority as at balance sheet date.

18. Utilisation of Borrowed Funds and Share Premium

The company has not advanced or loaned or invested funds to any other persons or entities with the understanding that, that person/entity should invest in any other person or entity identified in any manner whatsoever by or on behalf of the company or provided any guarantee, security, or like to or on behalf of the company.

The company has not received any amount from any other persons/entity with the understanding, whether written or oral, that the company shall directly or indirectly invest in any other person or entity.