Provision

A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates. If the effect of the time value of
money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision
due to the passage of time is recognized as a
finance cost.

Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence

of one or more uncertain future events beyond
the control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases, where there is
a liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses
its existence in the financial statements unless the
probability of outflow of resources is remote.

Provisions and contingent liabilities are reviewed
at each balance sheet date.

2.16 Retirement and other employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
nonmonetary 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 recognized in
respect of employee service up to the end of
the reporting period and are measured at the
amount 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
a) Gratuity

The Group has a defined benefit plan (the
"Gratuity Plan”). The gratuity plan provides
a lump sum payment to employees who
have completed four years and two
hundred and forty days or more of service
at retirement, disability or termination
of employment, being an amount based
on the respective employee’s last drawn
salary and the number of years of
employment with the Group.

The Gratuity Plan, which is defined
benefit plan, is managed by Cupid Limited
Employees Group Gratuity Assurance
Scheme ("the trust”) with its investments
maintained with Life insurance
Corporation of India. The liabilities with
respect to Gratuity Plan are determined by
actuarial valuation on projected unit credit
method on the balance sheet date, based
upon which the Company contributes
to the Gratuity Scheme. The difference,
if any, between the actuarial valuation

of the gratuity of employees at the year
end and the balance of funds is provided
for as assets/ (liability) in the books. Net
interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognizes
the following changes in the net defined
benefit obligation under Employee benefit
expense in statement of profit or loss:

a) service cost comprising current
service costs, past-service costs,
gains and losses on curtailments and
non routine settlements

b) Net interest expense or income
remeasurements, comprising of
actuarial gains and losses, the
effect of the asset ceiling, excluding
amounts included in net interest on
the net defined benefit liability and
the return on plan assets (excluding
amounts included in net interest
on the net defined benefit liability),
are recognized immediately in the
Balance Sheet with a corresponding
debit or credit to retained earnings
through other comprehensive
income in the period in which they
occur. Remeasurements are not
reclassified to profit or loss in
subsequent periods.

b) Provident fund

Retirement benefit in the form of
provident fund is a defined contribution
scheme. The Company has no obligation,
other than the contribution payable to the
provident fund. The Company recognizes
contribution payable through provident
fund scheme as an expense, when an
employee renders the related services.
If the contribution payable to scheme for
service received before the balance sheet
date exceeds the contribution already
paid, the deficit payable to the scheme
is recognized as liability after deducting
the contribution already paid. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excesses recognized as an asset to the
extent that the prepayment will lead to, for
example, a reduction in future payment or
a cash refund.

(c) Other employee benefits

Remeasurement gains and losses
arising from experience adjustments

and changes in actuarial assumptions
in respect of gratuity are recognised in
the period in which they occur, directly
in other comprehensive income and
are never reclassified to statement of
profit and loss. Changes in the present
value of the defined benefit obligation
resulting from plan amendments or
curtailments are recognised immediately
in the statement of profit and loss as past
service cost.

(iii) Share Based payments

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
year in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting year
has expired and the Company’s best estimate
of the number of equity instruments that will
ultimately vest. The expense or credit in the
standalone statement of profit and loss for a
year represents the movement in cumulative
expense recognised as at the beginning and
end of that year and is recognised in employee
benefits expense.

Service and non-market performance
conditions are not taken into account when
determining the grant date fair value of
awards, but the likelihood of the conditions
being met is assessed as part of the
Company’s best estimate of the number of
equity instruments that will ultimately vest.
Market performance conditions are reflected
within the grant date fair value. Any other
conditions attached to an award, but without
an associated service requirement, are
considered to be non-vesting conditions. Non¬
vesting conditions are reflected in the fair
value of an award and lead to an immediate
expensing of an award unless there are also
service and/ or performance conditions.
No expense is recognised for awards that

do not ultimately vest because non-market
performance and/or service conditions have
not been met. Where awards include a market
or non-vesting condition, the transactions are
treated as vested irrespective of whether the
market or non-vesting condition is satisfied,
provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised
is the expense had the terms had not been
modified, if the original terms of the award are
met. An additional expense is recognised for
any modification that increases the total fair
value of the share-based payment transaction
or is otherwise beneficial to the employee
as measured at the date of modification.
For cancelled options, the payment made
to the employee shall be accounted for as a
deduction from equity, except to the extent
that the payment exceeds the fair value of the
equity instruments of the Company, measured
at the cancellation date. Any such excess
from the fair value of equity instrument shall
be recognised as an expense. The dilutive
effect of outstanding options is reflected as
additional share dilution in the computation of
diluted earnings per share.

2.17 Investment in subsidiary:

A subsidiary is an entity that is controlled by
another entity. The Company’s investments in
its subsidiaries, associates and joint ventures
are accounted at cost less impairment as per
IND AS 27.

The Company regardless of the nature of
its involvement with an entity (the investee),
determines whether it is a parent by assessing
whether it controls the investee. The Company
controls an investee when it is exposed, or has
rights, to variable returns from its involvement
with the investee and has the ability to affect
those returns through its power over the
investee.

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is an indication for
impairment. If the recoverable amount is less
than its carrying amount, the impairment loss
is recorded in the statement of profit and loss.

When an impairment loss subsequently
reverses, the carrying amount of the
Investment is increased to the revised
estimate of its recoverable amount, so that the

increased carrying amount does not exceed
the cost of the Investment. A reversal of an
impairment loss is recognised immediately in
statement of profit and loss.

2.18 Financial Instruments

A financial instrument is any contract that gives

rise to a financial asset of one entity and a financial

liability or equity instrument of another entity.

(i) Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subsequently measured at
amortised cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and
the Company’s business model for managing
them. With the exception of trade receivables
that do not contain a significant financing
component or for which the Company has
applied the practical expedient, the Company
initially measures a financial asset at its fair
value plus, in the case of a financial asset not
at fair value through profit or loss, transaction
costs.

Trade receivables that do not contain a
significant financing component or for
which the Company has applied the practical
expedient and are measured at the transaction
price determined under Ind AS 115. Refer to
the accounting policies in section 'Revenue
from contracts with customers’.

In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash
flows that are 'solely payments of principal
and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are
not SPPI are classified and measured at fair
value through profit or loss, irrespective of the
business model.

The Company’s business model for managing
financial assets refers to how it manages
its financial assets in order to generate
cash flows. The business model determines
whether cash flows will result from collecting

contractual cash flows, selling the financial
assets, or both. Financial assets classified and
measured at amortised cost are held within
a business model with the objective to hold
financial assets in order to collect contractual
cash flows while financial assets classified
and measured at fair value through profit or
loss are held within a business model for near
term selling.

Subsequent measurement

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

- Financial assets at amortised cost (debt
instruments),

- Financial assets at fair value through
other comprehensive income (FVTOCI)
with recycling of cumulative gains and
losses (debt instruments)

- Financial assets designated at fair
value through OCI with no recycling
of cumulative gains and losses upon
derecognition (equity instruments)

- Financial assets at fair value through
profit or loss

Financial assets at amortised cost (debt
instruments)

A 'financial asset’ is measured at the amortised
cost if both the following conditions are met:

a) Business Model Test : The objective is
to hold the financial asset to collect the
contractual cash flows (rather than to
sell the instrument prior to its contractual
maturity to realize its fair value changes)
and;

b) Cash flow characteristics test: The

contractual terms of the financial asset
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

This category is most relevant to the Company.
After initial measurement, such financial
assets are subsequently measured at
amortized cost using the effective interest rate
(EIR) method. Amortised cost is calculated by
taking into account 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
other income in profit or loss. The losses
arising from impairment are recognized in the
profit or loss. This category generally applies
to trade and other receivables.

Financial assets at fair value through OCI
(FVTOCI) (debt instruments)

A 'financial asset’ is classified as at the FVTOCI
if both of the following criteria are met:

a) Business Model Test : The objective of
financial instrument is achieved by both
collecting contractual cash flows and
selling the financial assets; and

b) Cash flow characteristics test: The

contractual terms of the Debt instrument
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

Debt instrument included within the FVTOCI
category are measured initially as well as
at each reporting date at fair value. Fair
value movements are recognized in the other
comprehensive income (OCI), except for the
recognition of interest income, impairment
gains or losses and foreign exchange gains
or losses which are recognized in statement
of profit and loss and computed in the same
manner as for financial assets measured
at amortised cost. The remaining fair
value changes are recognised in OCI. Upon
derecognition, the cumulative fair value
changes recognised in OCI is reclassified from
the equity to profit or loss.

Financial assets at fair value through profit
or loss (FVTPL)

Financial assets at fair value through profit
or loss are carried in the balance sheet at fair
value with net changes in fair value recognised
in the statement of profit and loss.

This category includes derivative instruments
and equity oriented mutual funds investments
which the Company had not irrevocably

elected to classify at fair value through OCI.

Financial assets designated at fair value
through OCI (equity instruments)

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments
as equity instruments designated at fair value
through OCI when they meet the definition of
equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The
classification is determined on an instrument-
by-instrument basis. Equity instruments
which are held for trading and contingent
consideration recognised by an acquirer in
a business combination to which Ind AS103
applies are classified as at FVTPL.

Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognised as other income in the statement of
profit and loss when the right of payment has
been established, except when the Company
benefits from such proceeds as a recovery of
part of the cost of the financial asset, in which
case, such gains are recorded in OCI. Equity
instruments designated at fair value through
OCI are not subject to impairment assessment.

Derecognition

A financial asset (or ,where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.
removed from the Company’s statement of
financial position) when:

- The rights to receive cash flows from the
asset have expired, or

- The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received

- The Company has transferred its
rights to receive cash flows from the
asset or has assumed an obligation to
pay the received cash flows in full without
material delay to a third party under a
"pass through” arrangement and either;

(a) the Company has transferred
substantially all the risks and rewards of
the asset, or

(b) the Company has neither transferred nor

retained substantially all the risks and
rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights

to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards
of the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company’s continuing involvement. In that
case, the Company also recognises an
associated liability. The transferred asset
and the associated liability are measured on
a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the Company could be
required to repay.

Impairment of financial assets

In accordance with IND AS 109, the Company
applies expected credit losses( ECL) model for
measurement and recognition of impairment
loss on the following financial asset and credit
risk exposure

- Financial assets measured at amortized
cost;

- Financial assets measured at fair
value through other comprehensive
income(FVTOCI);

ECLs are based on the difference between the
contractual cash flows due in accordance with
the contract and all the cash flows that the
Company expects to receive, discounted at an
approximation of the original effective interest
rate. The expected cash flows will include cash
flows from the sale of collateral held or other
credit enhancements that are integral to the
contractual terms.

ECLs are recognised in two stages. For credit
exposures for which there has not been a
significant increase in credit risk since initial
recognition, ECLs are provided for credit
losses that result from default events that are
possible within the next 12-months (a 12-month
ECL). For those credit exposures for which
there has been a significant increase in credit
risk since initial recognition, a loss allowance
is required for credit losses expected over the
remaining life of the exposure, irrespective of

of profit and loss.

Financial liabilities designated upon initial
recognition at fair value through profit
or loss are designated as such at the
initial date of recognition, and only if the
criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value
gains/ losses attributable to changes
in own credit risk are recognized in OCI.
These gains/ loss are not subsequently
transferred to profit and loss. However,
the Company may transfer the cumulative
gain or loss within equity. All other
changes in fair value of such liability are
recognized in the statement of profit or
loss. the Company has not designated any
financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost
(Loans and borrowings)

After initial recognition, interest-bearing
borrowings are subsequently measured
at amortized cost using the Effective
interest rate method. Gains and losses
are recognized in profit or loss when
the liabilities are derecognised as well
as through the Effective interest rate
amortization process.

Amortized cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an
integral part of the Effective interest rate.
The Effective interest rate amortization is
included as finance costs in the statement
of profit and loss.

Trade Payables

These amounts represents liabilities
for goods and services provided to the
Company prior to the end of financial
year which are unpaid. The amounts are
unsecured and are usually paid within
30 to 120 days of recognition. Trade and
other payables are presented as current
liabilities unless payment is not due within
12 months after the reporting period.
They are recognized initially at fair value
and subsequently measured at amortized
cost using Effective interest rate method.

Financial guarantee contracts

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, when
appropriate, the cumulative amount of
income recognized in accordance with
the principles of Ind AS 115.

Derecognition

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

Offsetting of financial instruments

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

Reclassification of financial assets/
financial liabilities

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial
assets which are equity instruments
and financial liabilities. For financial
assets which are debt instruments, a
reclassification is made only if there is a

the timing of the default (a lifetime ECL).

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

- Trade receivables or contract revenue
receivables;

- All lease receivables resulting from the
transactions within the scope of Ind AS
116 -Leases

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 Company uses
a provision matrix to determine impairment
loss allowance on the portfolio of trade
receivables. The provision matrix is based on
its historically observed default rates over
the expected life of trade receivable and is
adjusted for forward looking estimates. At
every reporting date, the historical observed
default rates are updated and changes in the
forward looking estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the statement of profit and
loss. This amount is reflected under the head
'other expenses’ in the statement of profit and
loss.

The balance sheet presentation for various
financial instruments is described below:

A) Financial assets measured as at
amortised cost: ECL is presented as
an allowance, i.e., as an integral part of
the measurement of those assets in the
balance sheet. The allowance reduces
the net carrying amount. Until the asset
meets write-off criteria, the company
does not reduce impairment allowance
from the gross carrying amount.

B) Loan commitments and financial

guarantee: ECL is presented as a
provision in the balance sheet, i.e. as a
liability.

C) Debt instruments measured at FVTOCI:

For debt instruments measured at
FVTOCI, the expected credit losses do
not reduce the carrying amount in the
balance sheet, which remains at fair
value. Instead, an amount equal to the
allowance that would arise if the asset

change in the business model for managing
those assets. Changes to the business
model are expected to be infrequent.
The Company’s senior management
determines change in the business model
as a result of external or internal changes
which are significant to the Company’s
operations. Such changes are evident to
external parties. A change in the business
model occurs when the Company either
begins or ceases to perform an activity
that is significant to its operations. If the
Company reclassifies financial assets, it
applies the reclassification prospectively
from the reclassification date which is the
first day of the immediately next reporting
period following the change in business
model. The Company does not restate
any previously recognised gains, losses
(including impairment gains or losses) or
interest.

2.19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, that are readily convertible to a known
amount of cash and subject to an insignificant
risk of changes in value. For the purpose of the
standalone statement of cash flows, cash and
cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company’s cash management.

2.20 Earnings Per Share

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 shares outstanding during the
period. The weighted average number of equity
shares outstanding during the period is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effect of all
potentially dilutive equity shares.

2.21 Segment reporting - Identification of Segments:

An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
whose operating results are regularly reviewed
by the Company’s Chief Operating Decision Maker
(“CODM”) to make decisions for which discrete
financial information is available.

Based on the management approach as defined
in Ind AS 108, the CODM evaluates the Company’s
performance and allocates resources based on
an analysis of various performance indicators by
business segments and geographic segments.

2.22 Cash Flow Statement:

Cash flows are reported using the indirect method,
whereby the net profit before tax is adjusted for the
effects of transactions of a noncash 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
cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.

2.23 Significant accounting judgments, estimates and
assumptions

The preparation of the financial statements in
conformity with Ind AS requires management to
make judgments, estimates and assumptions that
affect the application of accounting policies and the
reported amounts of assets, liabilities, Revenue and
expenses. Uncertainty about these assumptions
and estimates could result in outcomes that
require a material adjustment to the carrying
amount of assets or liabilities affected in future
periods. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimates are revised and in any
future periods affected. In particular, information
about significant areas of estimation, uncertainty
and critical judgments in applying accounting
policies that have the most significant effect on the
amounts recognised in the financial statements are
included in the following notes:

i) Useful Lives of Property, Plant & Equipment:

The Company uses its technical expertise
along with historical and industrial trends
for determining the economic life of an asset.
The useful life is reviewed by the management
periodically and revised, if appropriate. In case
of a revision, the unamortised depreciable
amount is charged over the remaining useful
life of the asset.

ii) Defined Benefit Plans: The cost of the defined
benefit plans gratuity and the present value
of the gratuity obligation are based on
actuarial valuation using the projected unit
credit method. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future. These
include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved in the
valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are
reviewed at each reporting date.

iii) Fair Value Measurement of Financial
Instruments: When the fair values of financial
assets and financial liabilities recorded in
the balance sheet cannot be measured based
on quoted prices in active markets, their fair
value is measured using valuation techniques
including the Discounted Cash Flow model.
The inputs to these models are taken from
observable markets where possible, but where
this is not feasible, a degree of judgement
is required in establishing fair values.
Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.

iv) Expected Credit Losses on Financial Assets:
The impairment provisions of financial assets
are based on assumptions about risk of default
and expected timing of collection. The Company
uses judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on the Company’s past
history, customer’s creditworthiness, existing
market conditions as well as forward looking
estimates at the end of each reporting period.

v) Classification of Lease Ind AS 116: Ind AS

116 Leases requires a lessee to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes
an assessment on the expected lease term
on lease by lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In evaluating the lease
term, the Company considers factors such
as any significant leasehold improvements
undertaken over the lease term, costs relating
to the termination of lease and the importance
of the underlying lease to the Company’s
operations taking into account the location
of the underlying asset and the availability of

the suitable alternatives. The lease term in
future periods is reassessed to ensure that
the lease term reflects the current economic
circumstances. The discount rate is generally
based on the incremental borrowing rate
specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

vi) Recognition and measurement of deferred
tax assets and liabilities: Deferred tax assets
and liabilities are recognised for deductible
temporary differences and unused tax losses
for which there is probability of utilisation
against the future taxable profit. The Company
uses judgement to determine the amount
of deferred tax liability / asset that can be
recognised, based upon the likely timing and
the level of future taxable profits and business
developments.

vii) Income Taxes: The Company calculates
income tax expense based on reported income
and estimated exemptions / deduction likely
available to the Company. The Company has
applied the lower income tax rates on income
tax expenses and the deferred tax assets /
liabilities.

viii) Share Based Payments: The Company
measures the cost of equity settled
transactions with employees using
BlackScholes model to determine the fair
value of the liability incurred on the grant date.
Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which
is dependent on the terms and conditions
of the grant. This estimate also requires
determination of the most appropriate inputs
to the valuation model including the expected
life of the share option, volatility and dividend
yield and making assumptions about them.

ix) Property, Plant and Equipment: Property,
Plant and Equipment represent significant
portion of the asset base of the Company
charge in respect of periodic depreciation
is derived after determining an estimate of
assets expected useful life and expected
value at the end of its useful life. The useful
life and residual value of Company’s assets
are determined by Management at the time
asset is acquired and reviewed periodically
including at the end of each year. The useful
life is based on historical experience with
similar assets, in anticipation of future events,
which may have impact on their life such as
change in technology.

for tne period enaea Marcn 31, 2U25

- Liquidity risk ; and

- Market risk

i. ) Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the
Company’s Risk Management framework. The Board of Directors have adopted an Enterprise Risk Management
Policy framed by the Company, which identifies the risk and lays down the risk minimization procedures. The
Management reviews the Risk management policies and systems on a regular basis to reflect changes in
market conditions and the Company’s activities, and the same is reported to the Board of Directors periodically.
Further, the Company, in order to deal with the future risks, has in place various methods / processes which
have been imbibed in its organizational structure and proper internal controls are in place to keep a check on
lapses, and the same are been modified in accordance with the regular requirements.

The Audit Committee oversees how Management monitors compliance with the Company’s Risk Management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee is assisted in its oversight role by the internal auditors.

ii. ) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers
and loans and advances. The carrying amount of following financial assets represents the maximum credit
exposure:

Trade receivables and loans and advances. The Company’s exposure to credit risk is influenced mainly by
the individual characteristics of each customer in which it operates. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which
the Company grants credit terms in the normal course of business. The Risk Management Committee has
established a credit policy under which each new customer is analysed individually for creditworthiness
before the Company’s standard payment and delivery terms and conditions are offered. Further for domestic
sales, the company segments the customers into Distributors and Others for credit monitoring. The Company
maintains security deposits for sales made to its distributors. For other trade receivables, the company
individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the
Company makes specific provisions against such trade receivables wherever required and monitors the same
at periodic intervals. The Company monitors each loans and advances given and makes any specific provision
wherever required.

The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. The Company uses a provision matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account
available external and internal credit risk factors such as credit ratings from credit rating agencies, financial
condition, ageing of accounts receivable and the Company’s historical experience for customers. The Company
establishes an allowance for impairment that represents its estimate of expected losses in respect of trade
receivables and loans and advances.

Break-up of ageing schedule:-

Luans aim uiner nnanciai assets;

The Company held loans and other financial assets as on March 31, 2025 is of W 392.10 lacs (Previous year
W 214.39 lakhs). The loans and other financial assets are in nature of Loan to others, Security deposits with
maturity more than twelve months and others and are fully recoverable.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances as on 31 March 2025 is of W 6,857.36
lacs (Previous year W 3,944.90 lacs). The cash and cash equivalents are held with bank with good credit ratings
and financial institution counterparties with good market standing.

iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed
by Company through effective fund management of the Company’s short, medium and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows,
and by matching the maturity profiles of financial assets and liabilities.

Maturity profile 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.

g) The statements in respect of the working capital limits filed by the Company with such banks or financial
institutions are in agreement with the books of accounts of the Company for the respective periods.

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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

(I) 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:

(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
Note 48 : Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a 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 used accounting software for maintaining its books of account which has a feature of audit trail
(edit log) facility and the same was enabled at the application level. During the year ended March 31, 2025, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes on account of recommendation in the accounting software administration
guide which states that enabling the same all the time consume storage space on the disk and can impact database
performance significantly.

Note 49 : Others

Previous year figures have been regrouped and reclassified where necessary to conform to this year’s classification.
The management believes that the reclassification does not have any material impact on information presented in
Profit and Loss Account and information presented in the balance sheet at the beginning of the preceding period
i.e April 01, 2023. Accordingly, the Company has not presented opening balance sheet as at April 01, 2023.

For Chaturvedi Sohan & Co For and on behalf of the Board

Chartered Accountants

Firm Registration No : 118424W

Vivekanand Chaturvedi Aditya Kumar Halwasiya

Partner Chairman & Managing Director

Membership No. 106403 DIN No. : 08200117

UDIN 25106403BMIDML2980 Place : Mumbai

Place: Mumbai Narendra M. Joshi Saurabh V. Karmase

Date : 21^st May, 2025 Chief Financial Officer Company Secretary

Place : Nashik Place : Nashik