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అకౌంట్స్ గమనికలుVidya Wires Ltd.
xvi. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company 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. These are reviewed at each period/year end
and reflect the best current estimate. 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'' 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 an interest expense.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor disclosed in the Standalone Financial Statement.
xvii. Employee Benefits
a. Short Term Obligations
All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits and they are recognized in the period in which the employee
renders the related service. The Company recognizes the undiscounted amount of short-term
employee benefits expected to be paid in exchange for services rendered as a liability (accrued
expense) after deducting any amount already paid.
⢠Defined benefit plans
The Company''s net obligation in respect of an approved gratuity plan, which is a defined benefit
plan, is calculated using the projected unit credit method and the same is carried out by qualified
actuary. The current service cost and interest on the net defined benefit liability/(asset) is
recognized in the Standalone Financial Statement of Profit and Loss. Past service cost is
immediately recognized in the Standalone Financial Statement of Profit and Loss. Actuarial gains
and losses net of deferred taxes arising from experience adjustment and changes in actuarial
assumptions are recognized in other comprehensive income in the period in which they arise.
⢠Defined contribution plan
A Defined Contribution Plan is a plan under which the Company makes contribution to the
Employee''s Provident Fund and Employees State Insurance Contribution Fund administrated by
the Central Government. The Company'' contribution is charged to the Standalone Financials
Statement of Profit and Loss.
⢠Other Long-Term Employee Benefits -Compensated absence and earned leave
The liability towards leave salary which is not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related services is recognized based on
actuarial valuation carried out using the projected unit credit method.
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost.
Borrowing costs that are directly attributable to the acquisition or construction of an asset that
necessarily takes a substantial period of time to get ready for its intended use are capitalized, if any.
All other borrowing costs are expensed in the period in which they occur.
Tax expenses for the period/year comprise of current tax and deferred tax
Current tax is the amount of income tax payable in respect of taxable profit for the period/year.
Taxable profit differs from net profit as reported in the Standalone Statement of Profit and Loss
because taxable profit is adjusted for items of income or expenses which are taxable or deductible in
other years and also for items which are never taxable or deductible under the Income Tax Act,
1961(The IT Act).
The Company'' liability for current tax is calculated using tax rates and tax laws that have been
enacted by the end of the reporting period.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the Standalone Financial Statement and the corresponding tax bases used in the
computation of taxable profit under the I T Act.
Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in
case of temporary differences that arise from initial recognition of assets or liabilities in a
transaction (other than business combination) that affects neither the taxable profit nor the
accounting profit, deferred tax liabilities are not recognized.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent
it is probable that taxable profits will be available against which those deductible temporary
differences can be utilized. In case of temporary differences that arise from initial recognition of
assets or liabilities in a transaction (other than business combination) that affect neither the
taxable profit nor the accounting profit, deferred tax assets are not recognized. The carrying value
of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent it
is no longer probable that sufficient taxable profit will be available to allow all or part of the asset
to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised based on the tax rates and tax laws that have been
enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Company expects,
at the end of the reporting period, to cover or settle the carrying value of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Current and deferred tax is recognised in Standalone Financial Statement of Profit and Loss,
except to the extent that it relates to items recognised in Other Comprehensive Income or directly
in equity. In this case, the tax is also recognised in Other Comprehensive Income or directly in
equity, respectively.
xx. Standalone Financials Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit for the period/year is adjusted for
the effect of transactions of non - cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
cashflows.
The cash flows from operating, investing and financing activities of the Company are segregated.
Cash and cash equivalents for the purposes of Standalone Financial Statement of Cash Flows comprise
cash at bank and in hand and short- term deposits with an original maturity of three months or less to
be cash and cash equivalents. Cash and cash equivalents consist of balances with banks which are
unrestricted for withdrawal and usage.
For the purposes of Standalone Financial Statement of Cash Flows, cash and cash equivalents
consist of cash and short-term deposits, as defined above.
xxi. Events occurring after Balance Sheet Date
Where events occurring after the reporting date provide evidence of conditions which existed at
the end of the reporting period, the impact of such events is adjusted within the Standalone
Financial Statement. Otherwise, events after the reporting date of material size or nature are only
disclosed.
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity share outstanding during the period.
For the purpose calculating Diluted Earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares.
Interest income from a financial asset is recognized when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is
accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that asset''s net carrying amount on initial recognition.
Dividend income is recognized when the Company''s right to receive the payment is established, it is
probable that the economic benefits associated with the dividend will flow to the Company and the
amount of dividend can be measured reliably.
xxiv. Recent accounting pronouncements
Ministry of Corporate Affairs ("CA" notifies new standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time.
10.4 Disclosures required by Schedule V of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended and Section 186(4) of Companies Act, 2013, as amended.
10.5 Loans or advances to Promoters, Directors & KMPs : NIL (P.Y. NIL).
10.6 Loans granted to subsidiaries for business purposes are funded through accumulated profits, current
year profits and IPO Proceeds.
10.7 No funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),
including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly, lend or invest in other person or entities
identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security
of the like to or on behalf of the Ultimate Beneficiaries."
10.8 The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding, whether recorded in writing or otherwise, that the
Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by
or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
*As per with Ind AS 32 - Financial Instruments: Presentation, transaction costs directly attributable to
the issue of equity instruments are recognised as a deduction from equity, net of related income tax
benefit. Accordingly, expenses incurred in relation to the Initial Public Offer (IPO) have been adjusted
against securities premium account.
13.2 Description of Reserves
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to
shareholders.
Retained Earnings
Retained earnings represents surplus/accumulated earnings of the Company and are available for
distribution to shareholders.
14.2 Nature of Securities {Loans repayable on demand}
i) Working Capital Loans are availed from following Banks:
HDFC Bank- Working Capital in HDFC is secured by Hypothecation of Stocks, PG, PDC, Current Assets, FD
etc and Mortgage of three Industrial Property having address at:
(I). Plot no. 123/B GIDC, VU Nagar Unit No.1 Right to Fine Cast Chokdi. (Commercial)
(ii). Plot no. 9A/6 Opp. Shree Krishna Packaging, GIDC, Vidya Nagar Unit 2, Right to Fine Cast Chokdi.
(Commercial)
(iii.). Plot no. 8A/2 Unit 3, Water Tank Road, GIDC, Vidya Nagar Unit. (Commercial)
(iv) Guarantee- Personal Guarantee of Following Directors- Shri Shyamsundar Rathi and Mr. Shailesh Rathi.
ii) Federal Bank- Working Capital in Federal Bank is secured by First Pari Passu charge by way of
Hypothecation over the entire current assets of the company, both present and future and First Pari passu
charge on the entire fixed assets of the company- Movable and Immovable (Except Movable assets
funded by HDFC) and Mortgage of three Industrial Property having address at:
(I). Factory Land & Building at Plot No 123/B, GIDC Vitthal Udyog Nagar, Anand, Gujarat. (Unit-1)
(ii) . Factory Land & Building at Plot No 9 A/6, GIDC Vitthal Udyog Nagar, Anand, Gujarat.(Unit-2)
(iii) . Factory Land & Building at Plot No 8A/2, 8A/4, 8A/6, 8/1, 8/2, GIDC Vitthal Udyog Nagar, Anand,
Gujarat. (Unit-3)
Guarantee- Personal Guarantee of Following Directors- Shri Shyamsundar Rathi and Mr. Shailesh Rathi."
iii) HSBC Bank-
(I). Personal Guarantee from Mr. Shyamsunder Rathi & Mr. Shailesh Rathi as per senctioned limit
(ii) . First Pari-passu charge on stocks and book debts
(iii) . First Pari-passu charge on plant & machinery of the borrower (except assets financed by term loan)
(iv) . First pari-passu charge on Factory Land & Building located at Plot no. 123/B, GIDC Vitthal Udyog Nagar,
Anand, ''Gujarat (Unit -1)
(v) . First pari-passu charge on Factory Land & Building located at Plot no. 9 A/6, GIDC Vitthal Udyog Nagar,
Anand, Gujarat (Unit -2)
(vi) . First pari-passu charge on Factory Land & Building located at Plot no. 8/1-2, GIDC Vitthal Udyog Nagar,
Anand, Gujarat (Unit -3)"
iv) There was no default in repayment of loan and Interest during the period.
32. Financial instruments risk management objectives and policies
The Company''s financial liabilities comprise mainly of borrowings, trade and other payables. The
Company''s financial assets comprise mainly of investments, cash and cash equivalents, other
balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company has
constituted a Risk Management Committee to frame, implement and monitor the risk management
plan for the Company. The said committee is responsible for reviewing the risk management plan and
ensuring its effectiveness. The Audit Committee has additional oversight in the area of financial risks
and controls. It also covers policies on specific risk areas such as currency risk, interest rate risk, credit
risk and investment of surplus funds.The following disclosures summarize the Company''s exposure to
financial risks and information regarding use of derivatives employed to manage exposures to such
risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible
changes in market rates on the financial results, cash flows and financial position of the Company.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risks: interest rate risk,
currency risk and other price risk. Financial instruments affected by market risk includes borrowings,
investments, trade payables, trade receivables and loans.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on
short-term and long-term floating rate interest bearing liabilities. The Company manages its interest
rate risk by monitoring the movements in the market interest rates closely.
Exposure to interest rate risk
Company''s interest rate risk arises primarily from borrowings. The interest rate profile of the
Company''s interest-bearing financial instruments is as follows.
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in
interest rates. The following table demonstrates the sensitivity of floating rate financial instruments
to a reasonably possible change in interest rates. The risk estimates provided assume a parallel shift of
100 basis points interest rate across all yield curves. This calculation also assumes that the change
occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at
that date. The period end balances are not necessarily representative of the average debt
outstanding during the period.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company transacts business in foreign currencies
(primarily USD, EUR and GBP). Consequently, the Company has foreign currency trade payables and
receivables and is therefore exposed to foreign exchange risk. The Company manages its foreign currency
risk by following policies approved by board as per established risk management policy. The carrying
amounts of the Company''s foreign currency denominated monetary items are as follows:
Exposure to Currency Risk:-
The summary quantitative data about the company''s exposure to currency risk (based on notional
amounts) is as follows:
Foreign currency sensitivity
The following table demonstrate the sensitivity to a reasonably possible change in USD rates to the
functional currency of respective entity, with all other variables held constant. The Company''s exposure
to foreign currency changes for all other currencies is not material. The impact on the Company''s profit
before tax is due to changes in the fair value of monetary assets and liabilities.
(b) Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade
receivables and other financial assets including deposits with banks. The Company''s exposure and
credit ratings of its counter parties are continuously monitored and the aggregate value of
transactions is reasonably spread amongst the counterparties. Security deposits mainly includes
rental deposits, earnest money deposits which are given as per contractual agreement. Unbilled
revenue mainly pertains to contracts where there has been no delay or default in the past periods.
Other financial assets
This comprises mainly of deposits with banks, investments in mutual funds, market linked
debentures, other quoted instruments and other group receivables. Credit risk arising from these
financial assets is limited because the counterparties are group companies, banks and recognised
financial institutions and other corporates with high ratings, assigned by recognised credit rating
agencies. In case of mutual fund investments, since majority of the investments are in overnight or
liquid funds, having limited risk.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy
and procedures. Trade receivables are non-interest bearing and generally have a credit period not
exceeding 90 days. Credit limits are established for all customers based on internal rating criteria.
Outstanding customer receivables are regularly monitored and any shipments to major customers
are generally covered by letters of credit. The Company has no concentration of credit risk as the
customer base is widely distributed both economically and geographically.
An impairment analysis is performed at each reporting date based on the facts and circumstances
existing on that date to identify expected losses on account of time value of money and credit risk.
For the purposes of this analysis, the receivables are categorised into groups based on types of
receivables. Each group is then assessed for impairment using the Expected Credit Loss (ECL) model
as per the provisions of Ind AS 109 - Financial instruments. The calculation is based on provision matrix
which considers actual historical data adjusted appropriately for the future expectations and
probabilities. Receivables from group companies and secured receivables are excluded for the
purposes of this analysis since no credit risk is perceived on them. Proportion of expected credit loss
provided for across the ageing buckets is summarised below:
# Includes provision made for long outstanding retention money.
The loss rates are based on actual credit loss experience over past years. These loss rates are then
adjusted appropriately to reflect differences between current and historical economic conditions and
the Company''s view of economic conditions over the expected lives of the receivables.
The following significant change in the carrying amounts of trade receivables contributed to change
in the impairment loss allowance during year ended March 31, 2026:
- increase in credit impaired balances is due to additional impairment is considered for specific
customers due to lapse of time in realising the receivable due.
Movement in provision of expected credit loss has been provided in note no. 8.1.
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet
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. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its
cash and collateral requirements. The Company closely monitors its liquidity position and deploys a
robust cash management system. It maintains adequate sources of financing including bilateral loans,
debt and overdraft from both banks and financial institutions at an optimised cost.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity
groupings based on the remaining period from the reporting date to the contractual maturity date.
The amounts disclosed under the ageing buckets are the contractual undiscounted cash flows and
includes contractual interest payments.
The Company is exposed to the movement of copper and aluminium prices on the London Metal
Exchange (LME). Any increase or decline in the prices of these commodities will have an impact on the
profitability of the Company. As a general policy, the Company aims to purchase these commodities at
prevailing market prices and also sell the products at price adjusted for prevailing market prices. The
Company substantially ensures sale of products with simultaneous purchase of these commodities on
back-to back basis ensuring no or minimum price risk for the Company.
Contracts to Buy or Sell Non-Financial Items (Commodity Contracts)
The Company enters into contracts to buy or sell non-financial items, such as copper, which can
potentially be settled net in cash or by exchanging financial instruments. These contracts are entered
into and continue to be held for the purpose of the receipt or delivery of the non-financial item in
accordance with the Company''s expected purchase, sale, or usage requirements.
Accordingly, these contracts are considered ''own use'' contracts and therefore fall outside the scope of
Ind AS 109: Financial Instruments. They are not recognized as derivative financial instruments on the
balance sheet at fair value.
Upon physical delivery or receipt of the commodity, the Company accounts for the transaction under
the relevant Ind AS, such as Ind AS 2: Inventories for purchases or Ind AS 115: Revenue from Contracts
with Customers for sales.
The Company''s policy to classify these contracts as ''own use'' is based on:
Intention for Physical Settlement: The Company intends to take / make physical delivery of the
copper as required for its [e.g., manufacturing process, sales pipeline, inventory management] activities.
Past Practice: The Company has a consistently in most cases past practice of physically settling similar
contracts rather than net cash settlement.
Financial Instruments and Risk Management
(a) Commodity Price Risk The Company is exposed to commodity price risk, particularly related to
copper, which arises from its operational activities of purchasing and selling copper. To manage this
exposure, the Company enters into forward contracts for copper, primarily for physical delivery as part
of its ''own use'' strategy.
(b) Fair Value of ''Own Use'' Contracts (Optional, but good practice) While ''own use'' contracts are not
recognized at fair value on the balance sheet, for informational purposes, the fair value of open ''own
use'' copper forward contracts at the reporting date was estimated to be INR 118.65 Million (asset). This
fair value is primarily based on observable market inputs (Level 1 fair value hierarchy).
The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. Management monitors the
return on capital as well as the level of dividends to ordinary shareholders.
The Company has adequate cash and bank balances and no interest bearing liabilities. The Company
monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of
any debt requirements. In the absence of any interest bearing debt, the maintenance of debt equity
ratio etc. may not be of any relevance to the Company.
33. Fair Value Measurements
A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. It does not include fair value information for
financial assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
Fair value of financial assets and liabilities measured at amortised cost is not materially different from
the amortised cost. Further, impact of time value of money is not significant for the financial assets
and liabilities classified as current. Accordingly, the fair value has not been disclosed separately.
i) Valuation techniques and significant unobservable inputs
The carrying amounts of financial assets and liabilities other than those valued at Level 1 and Level 2
are considered to be the same as their fair values due to the current and short term nature of such
balances and no material differences in the values.
Fair value of borrowing is computed using the market comparison technique where information for
the interest rate at which a borrowing can availed by company is used to arrive at fair value of
borrowing. Further management measurement of fair value is not materially different from the
amortised cost in these case significant unobservable inputs and inter relationship between
significant unobservable inputs and fair value measurement is not applicable."
The Company''s investments on disposal will fetch only the principal amount invested and hence the
company considers cost and fair value to be the same for investments in equity shares of INR 0.005
Millions (March 31, 2025: INR 0.005 Millions).
ii) Levels 1, 2 and 3
Level 1 : It includes Investment in equity shares and mutual funds that have a quoted price and which
are actively traded on the stock exchanges. It is been valued using the closing price as at the reporting
period on the stock exchanges.
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.
Level 3 : If one or more of the significant inputs is not based on observable market data, the
instrument is included in Level 3.
(c) Effect of Plan on Entity''s Future Cash Flows
(i) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees.
Every year, the insurance company carries out a funding valuation based on the latest employee data
provided by the company. Any deficit in the assets arising as a result of such valuation is funded by the
Company.
(ii) Expected cash flows over the next years (valued on undiscounted basis):
Weighted average duration (based on discounted cash flows)
# Future cash outflows are determinable only on receipt of judgements/ decisions pending with various
forums/ authorities. It is not practical to disclose possibility of any reimbursement.
Segment Reporting is not applicable as the Chief Operating Decision Maker (CODM) views and
manages the business as a single segment.
The amount included in contract liabilities above as at 31 March 2026 and 31 March 2025 have been
recognized as revenue during the respective & subsequent periods/years respectively
Significant Payment Terms
Generally, the Company provides credit period in the range of 30 to 60 days for customers.
c. Unsatisfied performance obligations
The Company applies the practical expedient in Paragraph 121 of Ind AS 115 and does not disclose
information about remaining performance obligations where the Company has a right to
consideration from the customer in an amount that corresponds directly with the value to the
customer of the Company''s performance completed to date. Accordingly, the Company recognises
revenue by an amount to which the Company has a right to invoice.
The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the
assets that have a lease term of twelve months or less and leases for which the underlying asset is of
low value. The lease payments associated with these leases are recognized as an expense on a
straight line basis over the lease term.
There are no longterm lease entered into by the company as at March 31, 2026 & March, 31 2025.
41. Other Disclosures with respect to Schedule III
(a) The company does not have any Benami property, where any proceeding has been initiated or
pending against the company for holding any Benami property.
(b) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.
(c) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230
to 237of the Companies Act, 2013
(d) The company has no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(e) The company have not traded or invested in Crypto currency or Virtual Currency during the year.
(f) The company does not have any charges or satisfaction which is yet to be registered with Registrars
of Companies beyond the statutory period except as below:
(g) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(h) The company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the
company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(I) The Income Tax Department (''''the IT Department") had conducted a search and seizure action under
section 132 of the Income Tax Act ("the Search") on the Group and other related Indian entities and
their few employees in February 2025. The Group at the time of the Search and subsequently has co¬
operated with the IT Department and responded to the clarifications, data and details sought by the
IT Department. No assets of the Group were seized by the IT Department as part of the Search. The
Group has not received any written communication from the IT Department regarding the outcome
of the Search as of date. The Group after considering all available records, facts known to it and legal
advice as of date, has not identified any adjustments to the current or prior period financial results at
this stage. Pending outcome of the proceedings in this matter, the Group will re-evaluate the
adjustments to the financial satement if needed at a future date as appropriate.
(j) The status on utilization of IPO Proceeds as on 31st March, 2026 is as under:
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