1.13 Provisions, Contingent Liabilities and Contingent Assets:
A Provisions are recognized when the Company has present obligation (legal or constructive) as a
result of past events, for which 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 for the
amount of the obligation.
Contingent Liabilities are disclosed by way of notes to Financial Statements. Contingent assets
are not recognized in the financial statements but are disclosed in the notes to the financial
statements where an inflow of economic benefits is probable. Provisions and contingent liabilities
are reviewed at each Balance Sheet date.
B 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.
1.14 Employee benefits
A Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified
as short term employee benefits. Benefits such as salaries, wages, short term compensated
absences etc., and the expected cost of bonus, ex-gratia are recognized in the period in which the
employee renders the related service.
B Post-Employment Benefits:
i) Defined Contribution Plans:
State governed Provident Fund Scheme and Employees State Insurance Scheme are defined
contribution plans.
The contribution paid / payable under the schemes is recognized during the period in which
the employees render the related services.
ii) Defined Benefit Plans:
The Employee’s Gratuity Fund Scheme and compensated absences is Company’s defined
benefit plans. The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefits
entitlement and measures each unit separately to build up the final obligation. The obligation
is measured at the present value of the estimated future cash flows. The discount rates used
for determining the present value of the obligation under defined benefit plans, is based on
the market yields on Government Securities as at the Balance Sheet date, having maturity
periods approximating to the terms of related obligations.
For defined benefit plans, the amount recognized as ‘Employee benefit expenses’ in the
Statement of Profit and Loss is the cost of accruing employee benefits promised to employees
over the year and the costs of individual events such as past/future service benefit changes
and settlements (such events are recognized immediately in rate to the net defined benefit
liability or asset is charged or credited to ‘Finance costs’ in the Statement of Profit and Loss.
Any differences between the interest income on plan assets and the return actually achieved,
and any changes in the liabilities over the year due to changes in actuarial assumptions or
experience adjustments within the plans, are recognized immediately in ‘Other comprehensive
income’ and subsequently not reclassified to the Statement of Profit and Loss.
All defined benefit plans obligations are determined based on valuations, as at the Balance
Sheet date, made by independent actuary using the projected unit credit method. The
classification of the Company’s net obligation into current and non-current is as per the
actuarial valuation report.
Gains or losses on the curtailment or settlement of any defined benefits plans are recognized
when the curtailment or settlement occurs. Past service cost is recognized as expense on a
straight-line basis over the average period until the benefits become vested.
C Long Term Employee Benefits:
The employees’ long term compensated absences are company’s defined benefit plans.
The present value of the obligation is determined based on the actuarial valuation using the
projected unit credit method as at the date of the balance sheet. In case of funded plans, the
full value of plan assets is reduced from the gross obligation to recognize the obligation on
the net basis.
1.15 Financial instruments
Initial Recognition and Measurement:
The company recognizes a financial asset in its balance sheet when it becomes party to the contractual
provisions of the instrument. All financial assets are recognized initially at fair value, plus in the case of
financial assets not recorded at fair value through profit or loss (FVTPL), transaction cost that are
attributable to the acquisition of the financial asset.
Where the fair value of a financial asset at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognized as a gain or loss in the
Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market
price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that
users data from observable markets (i.e. level 2 input).
In case the fair value in not determined using a level 1 or level 2 inputs as mentioned above, the
difference between the fair value and transaction price is deferred appropriately and recognized as a
gain in the Statement of Profit and Loss only to the extent the such gain or loss arises due to a change
in factor that market participants take into account when pricing the financial asset.
However trade receivables that do not contain a significant financing component are measured at
transaction price.
Investments and Other Financial Assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
(1) those to be measured subsequently at fair value (either through other comprehensive income,
or through the Statement of Profit and Loss), and
(2) those measured at amortised cost.
The classification depends on the Company’s business model for managing the financial
assets and the contractual terms of the cash flows.
(ii) Measurement
At initial recognition, the Company measures a financial asset at its fair value. Transaction costs
of financial assets carried at fair value through the Profit and Loss are expensed in the Statement
of Profit and Loss.
Derivative Financial InstrumentsInitial recognition and subsequent measurement The Company
uses derivative financial instruments, such as forward currency contracts its foreign currency
risks. Such derivative financial instrument recognised at fair value on the date on which a derivative
contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as Financial liabilities when the fair value is
negative. Any gain & losses arising from the change in Fair Value of Derivative are taken directly
to Profit & Loss Account
Debt instruments:
Subsequent measurement of debt instruments depends on the Company’s business model for
managing the asset and the cash flow characteristics of the asset. The Company classifies its debt
instruments into following categories:
(1) Amortised cost:
Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets is included in other income using the effective interest rate method.
(2) Fair Value through Other Comprehensive Income:
Assets that do not meet the criteria for amortised cost are measured at fair value through
Other Comprehensive Income. Interest income from these financial assets is included in
other income.
Equity instruments:
The Company measures its equity investment other than in subsidiaries, joint ventures and
associates at fair value through profit and loss. However where the Company’s management
makes an irrevocable choice on initial recognition to present fair value gains and losses on
specific equity investments in other comprehensive income (Currently no such choice made),
there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the
Statement of Profit and Loss.
Impairment of investments:
The Company reviews its carrying value of investments carried at cost annually, or more frequently
when there is 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 or
Loss.
Impairment of Financial Assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss.
For trade receivables and contract assets, the Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each reporting date. The Company has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment.
For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount that is required to be recognized is recognized
as an impairment loss in the Statement of Profit and Loss.
Derecognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is derecognized(i.e. removed from the company’s balance sheet) when any of
the following occurs:
i. The contractual rights to cash flows from the financial asset expires;
ii. The company transfers its contractual rights to received cash flows of the financial assets
and has substantially transferred all the risk and rewards of ownership of the financial assets;
iii. The company retains the contractual rights to receive cash flows but assumes a contractual
obligations to pay the cash flows without material delay to one or more recipients under a
‘pass-through’ arrangement (thereby substantially transferring all the risks and rewards of
ownership of the financial asset);
iv. The company neither transfers nor retains substantially all risk and rewards of ownership
and does not retain control over the financial asset.
In cases where company has neither transferred nor retained substantially all of the risks and
rewards of the financial asset, but retains control of the financial assets, the Company continues
to recognize such financial asset to the extent of its continuing involvement in the financial asset.
In that case, the Company also recognizes an associated liability. The financial asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company
has retained.
On De-recognition of a financial asset, (except as mentioned in ii above for financial assets
measured a FVTOCI), the difference between the carrying amount and the consideration received
is recognized in the Statement of Profit and Loss.
Financial liabilities:
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts and derivative financial instruments.
Subsequent measurement
The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts and derivative financial instruments.
For purposes of subsequent measurement, financial liabilities are classified in two categories:
• Financial liabilities at fair value through profit or loss
• Financial liabilities at amortised cost (loans and borrowings)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments entered
into by the Company that are not designated as hedging instruments in hedge relationships as
defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading
unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or 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/ losses are not subsequently transferred to
P&L. However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the statement of profit and loss. The
Company has not designated any financial liability as at fair value through profit or loss.
Financial liabilities at amortised cost (Loans and borrowings)
This is the category most relevant to the Company. After initial recognition, interest-bearing loans
and borrowings are subsequently measured at amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs
in the statement of profit and loss.
This category generally applies to borrowings. For more information refer Note 15 & 19.
1.16 Foreign Currency Translation
Initial Recognition:
On initial recognition, transactions in foreign currencies entered into by the Company are recorded in
the functional currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year are recognized
in the Statement of Profit and Loss.
Measurement of Foreign Currency Items at Reporting Date:
Foreign currency monetary items of the Company are translated at the closing exchange rates. Non¬
monetary items that are measured at historical cost in a foreign currency, are translated using the
exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a
foreign currency, are translated using the exchange rates at the date when the fair value is measured.
1.17 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 maturity of three months or less, which are subject to an insignificant risk of changes
in value. For the purpose of the 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.
1.18 Cash Flow Statement
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method adjusting the net profit
for the effects of:
i. changes during the period in inventories and operating receivables and payables, transactions of
a non-cash nature;
ii. non-cash items such as depreciation, provisions, and unrealized foreign currency gains and
losses etc.; and
iii. all other items for which the cash effects are investing or financing cash flows.
1.19 Events after Reporting Date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the
end of the reporting period, the impact of such events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
1.20 Key Accounting Estimates and Judgments
The preparation of the Company’s Financial Statements requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. 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.
Critical Accounting Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:
A. Income Taxes
The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions (Refer note 18).
B. Property, Plant and Equipment
Property, plant and equipment represent a significant proportion of the asset base of the Company.
The charge in respect of periodic depreciation is derived after determining an estimate of an
asset’s expected useful life and the expected residual value at the end of its life. The useful lives
and residual values of Company’s assets are determined by the management at the time the
asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technical or commercial obsolescence arising from
changes or improvements in production or from a change in market demand of the product or
service output of the asset.
C. Defined Benefit Obligation
The costs of providing pensions and other post-employment benefits are charged to the Statement
of Profit and Loss in accordance with IND AS 19 ‘Employee benefits’ over the period during which
benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions
selected by the management. These assumptions include salary escalation rate, discount rates,
expected rate of return on assets and mortality rates. The same is disclosed in Note 43, ‘Post
Retirement Benefit Plans’.
D. 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, which involve various judgments
and assumptions.
1.21 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, which involve various judgments and
assumptions.
Recent Accounting Pronouncements
The 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. During the year
ended on March 31,2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions, effective from April 1,2024. The Company
has assessed these amendments and determined that they do not have any significant impact on its
financial statements.
On May 07, 2025, MCA notified the amendment in Ind AS 21-The Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide guidance on assessing whether a currency is
exchangeable and on estimating the spot exchange rate when exchangeability is lacking. The
amendments are effective from annual periods beginning on or after April 1, 2025. The Company is
currently assessing the probable impact of these amendments on its financial statement.
Outflow in respect of (a) and (b) disputes /contingencies are dependent upon final outcome of the
disputes or ultimate agreement to resolve the differences.
B. Commitment
Commitments on account of estimated amount of contract remaining to be executed on capital
account and not provided for relating to Property Plant and Equipment is Rs.1169.40 Lakhs
The fair value of the financial assets and liabilities are included at the amount of which the instrument
could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair Value of Cash and short term deposits, trade and other short term receivables, trade payables,
other current liabilities, short term loans from banks and other financial institutions approximate
their carrying amount largely due to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rate are evaluated by the company based
on parameters such as interest rates and individual credit worthiness of the counter party. Based
on this evaluation, allowances are taken to account for expected losses of these
receivables.Accordingly, fair values of such instruments is not materially different from their carrying
amounts:-
For the financial assets and liabilities that are measured at fair values, the carrying amount are
equal to the fair value.
Valuation Methodology
i) Fair Value of Derivatives: The fair value of Forward Foreign Exchange contracts is determined
using observable forward exchange rates at the balance sheet date.
ii) Investments in equity shares included in Level 3 of the fair value hierarchy have been valued
using the cost approach to arrive at their fair value. Cost of unquoted equity instruments has been
considered as an appropriate estimate of fair value because of a wide range of possible fair value
measurements and cost represents the best estimate of fair value within that range.
The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
• Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
• Level 2: Other techniques for which all inputs which have a significant effect on the recoded
fair value are observable, either directly or indirectly.
• Level 3: Techniques which use inputs that have a significant effect on the recoded fair value
that are not based on observable market data.
For assets which are measured at fair value as at Balance Sheet date, the classification of fair
value calculations by category is summarized below:
35 Capital risk Management
Equity Share capital and other equity are considered for the purpose of company’s capital management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to
optimise returns to shareholders. The Capital structure of the company is based on management’s
judgment of its strategic and day-to-day needs with a focus on total equity to maintain investor,creditors
and market confidence and to sustain future development and growth of its business.
The management and the Board of Directors monitors the return on capital as well as the level of
dividends to shareholders. The company may take appropriate steps in order to maintain, or if necessary
adjust, its capital structure.
36 Financial risk management
The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk,
market risks and credit risks. The company’s senior management has the overall responsibility for
establishing and governing the company’s risk management framework. The company has constituted
a risk management committee, which is responsible for developing and monitoring the company’s risk
management policies. The company’s risk management policies are established to identify and analyse
the risks faced by the company, to set and monitor appropriate risk limits and controls, periodically
review the changes in market conditions and reflect the changes in the policy accordingly. The key
risks and mitigating actions are also placed before the Audit Committee of the company.
A. Management of Liquidity Risk
Liquidity risk is the risk that the company will face in meeting its obligation associated with its
financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this
management considers both normal and stressed conditions.
Due to dynamic nature of the underlying businesses, company treasury maintains flexibility in
funding by maintaining availability of under committed credit lines. Management monitors rolling
forecasts of the company’s liquidity position (comprising the undrawn borrowing facilities) and
cash and cash equivalents on the basis of expected cash flows.
The following table shows the maturity analysis of the company’s financial liabilities based on the
contractually agreed undiscounted cash flows along with its carrying value as at the Balance
sheet date.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments
will fluctuate because of changes in market interest rates. In order to optimize the Company’s
position with regards to interest income and interest expenses and to manage the interest
rate risk, treasury performs a comprehensive corporate interest rate risk management by
balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
According to the Company interest rate risk exposure is only for floating rate borrowings. For
floating rate liabilities, the analysis is prepared assuming that the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management’s assessment of the reasonably possible
change in interest rates.
C Management of Credit Risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations
as agreed. To manage this, the Company periodically assesses financial reliability of customers,
taking into account the financial condition, current economic trends, and analysis of historical bad
debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The company 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 through out each reporting
period. To assess whether there is a significant increase in credit risk, the company compares the
risk of default occurring on asset as at the reporting date with the risk of default as at the date of
initial recognition. It considers reasonable and supportive forwarding-looking information such
as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the
counterparty’s ability to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of
the third-party guarantees or credit enhancements.
The Company measures the expected credit loss of trade receivables and loan from individual
customers based on historical trend, industry practices and the business environment in which
the entity operates. Loss rates are based on actual credit loss experience and past trends. Based
on the historical data, loss on collection of receivable is not material hence no additional provision
considered.
Exposure to credit risk
The carrying amount of financial assets represents maximum credit exposures.The maximum
credit exposure to credit risk was Rs. 3266.46 and Rs. 2852.26 as at March 31, 2025 and March
31,2024 respectively being total of carrying amount of balance principally with banks, other bank
balances, Loans, Trade receivable-billed and other financial assets.
The company’s exposure to customers is diversified and except one customer as at March 31,
2025 comprising 10.37% of Revenue and one customer as at March 31,2024 comprising 10.68%
of Revenue, no single customer contributes to more than 10% of Revenue as at March 31,2025
and March 31, 2024.
37 Earnings per Share (EPS) as per Indian Accounting Standard 33:
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the
Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS
amounts are calculated by dividing the profit attributable to equity holders of the Company (after
adjusting for interest on the convertible preference shares) by the weighted average number of Equity
shares outstanding during the year plus the weighted average number of Equity shares that would be
issued on conversion of all the dilutive potential Equity shares into Equity shares.
Risk Exposure - Asset Volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan
assets underperform this yield, this will create a deficit. Most of the plan asset investments is in
fixed income securities with high grades and in government securities. These are subject to
interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable
level. A portion of the funds are invested in equity securities and in alternative investments %
which have low correlation with equity securities. The equity securities are expected to earn a
return in excess of the discount rate and contribute to the plan deficit.
(i) Leave obligations
The leave obligations cover the Company’s liability for sick and earned leave. The amount of the
provision of Rs. 9.80 Lakh - [31st March, 24: Rs. 9.85 Lakh] is presented as liabilities.
(ii) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident
fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions
are made to registered provident fund administered by the government. The obligation of the
Company is limited to the amount contributed and it has no further contractual nor any constructive
obligation. The expense recognized during the period towards defined contribution plan is Rs.
6.78 Lakh (PY: Rs. 6.52 Lakh).
41 The Code on Social Security, 2020 (‘Code’) has been notified in the Official Gazette of India on
September 29, 2020, which could impact the contributions of the Company towards certain employment
benefits. The effective date from which changes are applicable is yet to be notified and the rules are yet
to be framed. Impact, if any, of the change will be assessed and accounted in the period of notification
of the relevant provisions.
42 (i) The Company has not traded or invested in Crypto Currency or Virtual Currency during the
financial year.
(ii) 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 rules made
thereunder.
(iii) The Company has 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(iv) 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:
(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 on behalf of the ultimate beneficiaries.
(v) The Company does not have any 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.
(vi) The Company does not have any transactions with companies which are struck off.
(vii) The Company has not entered with any Scheme(s) of arrangement in terms of sections 230 to 237
of the Companies Act, 2013.
(viii) The Company do not have any subsidiary, so there is no requirement to comply 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.
(ix) The Company has been maintaining its books of accounts in the accounting software which has
feature of recording audit trail of each and every transaction, creating an edit log of each change
made in books of account along with the date when such changes were made and ensuring that
the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of rule
3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment
Rules, 2021. The Company has preserved Audit trail as per statutory requirements for record
retention.
As per our report of even date F°r 3"d °f the BO*?? Directors of
For KANTILAL PATEL & CO. Industries
CHARTERED ACCOUNTANTS Ashok Chh*J.er Chha)e.T
Firm reaistration nUmber- 104744W [Managmg Director] [Jt. Managmg Director]
Firm registration number. 104744W [DIN: 00280185] [DIN:05184646]
Jinal A. Patel CA Jhanvi Jansari CS Se)al Kanbi
Partner [Chief financial officer] [Company Secretary]
Membership no.. 153599 [mRN: 140266] [MRN:47980]
Place : Ahmedabad Place : Ahmedabad
Date : May 27, 2025 Date : May 27, 2025
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