2.15 Provisions, Contingent Liabilities and Contingent Assets Provisions
General
Provisions are recognised only when
(i) the Company has a present obligation (legal or constructive) because of a past event and
(ii) It is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and
(iii) a reliable estimate can be made of the amount of the obligation.
Provision is measured using the cash flows estimated to settle the present obligation and when the effect
of time value of money is material, the carrying amount of the provision is the present value of those cash
flows. When a company expects some or all of a provision to be reimbursed, the related expense is shown in
the statement of profit and loss net of any expected reimbursement. If the time value of money is significant,
provisions are discounted using a current pre-tax rate, which should reflect the specific risks related to the
liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
Warranty provisions
The Company provides warranties for general repairs of defects that existed at the time of sale, as required
by contract with customers. Provisions related to these assurance-type warranties are recognised when the
product is sold, or the service is provided to the customer. Initial recognition is based on historical experience.
The initial estimate of warranty-related costs is revised annually.
Contingent Liability
Contingent liability is disclosed in case of
(a) a possible obligation arising from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity or
(b) a present obligation that arises from past events but is not recognized because.
• it is not probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, or
• the amount of the obligation cannot be measured with sufficient reliability.
The Company does not recognize a contingent liability but discloses its existence and other required
disclosures in notes to the financial statements, unless the possibility of any outflow in settlement is remote.
Contingent Asset
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the entity. The Company does not recognize the contingent asset in its standalone financial statements
since this may result in the recognition of income that may never be realised. Where an inflow of economic
benefits is probable, the Company disclose a brief description of the nature of contingent assets at the end of
the reporting period. However, when the realisation of income is virtually certain, then the related asset is not
a contingent asset, and the Company recognize such assets.
Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.
2.16 Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and disclosed as such in
financial statements.
2.17. Revenue from contract with customer
i) Revenue from contracts with customers that meet the recognition criteria under paragraph 9 of
Ind AS 115 are recognized when (or as) a performance obligation is satisfied by transferring a
promised good or service to a customer, for the amount of the transaction price that is allocated
to that performance obligation.
The company exercises judgement for identification of performance obligations, determination
of transaction price, allocation of transaction price to each distinct performance obligation and
determining whether the performance obligation is satisfied at a point in time or over a period of
time
Satisfaction of a performance obligation and recognition of revenue over time is followed when,
transfer of control of a good or service are made over time and, if one of the following criteria is
met:
a. the customer simultaneously receives and consumes the benefits provided by the entity's
performance as the entity performs.
b. the entity's performance creates or enhances an asset (for example, work in progress) that
the customer controls as the asset is created or enhanced; or
c. the entity's performance does not create an asset with an alternative use to the entity, and
the entity has an enforceable right to payment for performance completed to date.
Performance obligations that are not satisfied over time are treated as performance
obligations satisfied at a point in time which in case of goods are upon their despatch/
delivery to domestic customers as per terms of sale and on the basis of proof of export/
delivery for export customers as per terms of sale and in case of services are upon
completion of service.
Timing of satisfaction of performance obligations
For each performance obligation satisfied over time the company recognises revenue over time by measuring
the progress towards complete satisfaction of that performance obligation. The objective when measuring
progress is to depict the company's performance in transferring control of goods or services promised to a
customer (i.e. the satisfaction of an entity's performance obligation).
The right to payment for performance completed to date does not need to be for a fixed amount. However, at all
times throughout the duration of the contract, the company is entitled to an amount that at least compensates
for performance completed to date if the contract is terminated by the customer or another party for reasons
other than the company's failure to perform as promised.
Output method is used for measurement where the units produced or units delivered faithfully depict the
company's performance in satisfying a performance obligation and, at the end of the reporting period, the
company's performance has produced work in progress or finished goods that are not controlled by the
customer.
Input method is used to recognise revenue where the company's efforts or inputs in satisfaction of a
performance obligation (for example, resources consumed, labour hours expended, costs incurred, time
elapsed or machine hours used) is relative to the total expected inputs to the satisfaction of that performance
obligation and depict the company's performance in transferring control of goods or services to the customer.
Warranty obligations
The Company provides contractual assurance-type warranties in accordance with the terms of railway
contracts. These warranties cover the rectification of defects that existed at the time of sale or installation. As
such warranties do not constitute separate performance obligations under the contract, they are accounted
for in accordance with the requirements of Ind AS 37 - Provisions, Contingent Liabilities and Contingent
Assets.
The Company does not provide any service-type or extended warranties beyond the scope of the contractual
assurance-type warranties agreed with customers under railway contracts.
Contract balances Contract assets
Contract assets represent the Company's right to consideration in exchange for goods or services that have
been transferred to the customer, when the right is conditional upon the completion of contractual
performance obligations, such as installation and commissioning activities under railway contracts.
A contract asset is recognised when revenue is earned but not yet billed, typically pending customer
acceptance or certification. Upon completion of the installation and fulfilment of contractual conditions, the
contract asset is reclassified as a trade receivable.
Contract assets are subject to impairment assessment in accordance with the expected credit loss model
prescribed under Ind AS 109
Financial Instruments. Trade receivables
A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time
is required before payment of the consideration is due). Refer to accounting policies of financial assets in
section (t) Financial instruments - initial recognition and subsequent measurement.
Contract liabilities
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a
customer before the Company transfers the related goods or services. Contract liabilities are recognised
as revenue when the Company performs under the contract (i.e., transfers control of the related goods or
services to the customer).
ii) Interest Income Interest come accrued on time proportionate basis, by reference to the principal
outstanding and effective interest rate applicable.
2.18 Employee Benefits
(i) Short term employee benefits:
Employee benefits such as salaries, wages, short term compensated absences, bonus, ex-
gratia and performance-linked rewards falling due wholly within twelve months of rendering the
service are classified as short-term employee benefits and are expensed in the period in which
the employee renders the service.
(ii) Post-employment benefits:
A. Defined contribution plans: The Company's superannuation scheme, state governed
provident fund scheme, employee state insurance scheme and employee pension scheme
are defined contribution plans. The contribution paid/payable under the schemes is
recognised during the period in which the employee renders the service.
B. Defined benefit plans: The liability in respect of gratuity benefit is the present value of the
obligation under defined benefit plans is determined based on actuarial valuation using the
Projected Unit Credit Method.
The obligation towards defined benefit plans is measured at the present value of the
estimated future cash flows using a discount rate based on the market yield on government
securities of a maturity period equivalent to the weighted average maturity profile of the
defined benefit obligations at the Balance Sheet date
Re-measurement, comprising actuarial gains and losses, the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability or asset) and
any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive
income and is reflected in retained earnings and the same is not eligible to be reclassified
to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or
losses on settlements are recognised in the Statement of Profit and Loss as employee
benefits expense. Interest cost implicit in defined benefit employee cost is recognised in
the Statement of Profit and Loss under finance costs. Gains or losses on settlement of
any defined benefit plan are recognised when the settlement occurs. Past service cost is
recognised as expense at the earlier of the plan amendment or curtailment and when the
Company recognises related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation
under the defined benefit plans to recognise the obligation on a net basis.
(iii) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised
as expense when the Company's offer of the termination benefit can no longer be withdrawn or
when the Company recognises the related restructuring costs whichever is earlier
2.19 Finance Cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale (qualifying asset) are capitalised
as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.
2.20. Taxes Current income tax
Tax expense comprises current tax expense and deferred tax.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the countries where the Company operates and generates
taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and considers
whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company reflects
the effect of uncertainty for each uncertain tax treatment by using either most likely method or expected value
method, depending on which method predicts better resolution of the treatment.
Deferred Tax
Deferred tax is recognised using the balance sheet approach, on all temporary differences arising between
the tax base of assets and liabilities and their carrying amounts in the financial statements as at the
reporting date.
Deferred Tax Liabilities
Deferred tax liabilities are recognised for all taxable temporary differences, except in the following cases:
When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor
the taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences.
In respect of taxable temporary differences associated with investments in subsidiaries, associates and
joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.
Deferred Tax Assets
Deferred tax assets are recognised for all deductible temporary differences, unused tax credits, and
carry forward of unused tax losses, to the extent that it is probable that taxable profit will be available
against which these can be utilised, except:
When the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not
a business combination, and at the time of the transaction affects neither the accounting profit nor the
taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.
In respect of deductible temporary differences associated with investments in subsidiaries, associates
and joint ventures, deferred tax assets are recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to utilise the deferred tax asset, fully
or partially. Unrecognised deferred tax assets are re-assessed at each reporting date and recognised to the
extent that it becomes probable that future taxable profits will allow recovery.
In assessing recoverability, the Company considers the same forecast assumptions used elsewhere in the
financial statements and management reports, including potential impacts from external developments (e.g.,
increased costs due to regulatory or environmental factors such as carbon emission reductions).
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted
or substantively enacted at the reporting date and are expected to apply when the related asset is realised
or the liability is settled.
Deferred tax related to items recognised outside profit or loss is also recognised outside profit or loss,
in either other comprehensive income (OCI) or equity, depending on the nature of the related item. The
recognition of deferred tax follows the underlying transaction.
The Company offsets deferred tax assets and liabilities only when there is a legally enforceable right to set
off current tax assets against current tax liabilities, and when the deferred taxes relate to income taxes
levied by the same taxation authority on the same taxable entity, intending to either settle current tax
balances on a net basis or realise and settle simultaneously.
Goods and Services Tax (GST) / value added taxes paid on acquisition of assets or on incurring
expenses
Expenses and assets are recognised net of the amount of GST/ value added taxes paid, except:
^ When the tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset
or as part of the expense item, as applicable.
^ When receivables and payables are stated with the amount of tax included
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of other
current/non-current assets/ liabilities in the balance sheet.
2.21 Earnings per share
Basic earnings per share is computed using the net profit or loss after tax and weighted average number of
shares outstanding during the year. Diluted earnings per share is computed using the net profit or loss after
tax and weighted averagenumber of equity and potential equity shares outstanding during the year, except
where the result would be anti-dilutive.
2.22 Statement of Cash Flows
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 profit before tax
excluding exceptional items for the effects of:
(i) changes during the period in inventories and operating receivables and payables.
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and
losses; and
(iii) all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items
which are not available for general use as at the date of Balance Sheet.
2.23 Share-based payment arrangements
The stock options granted to employees in terms of the Company's Stock Options Schemes, are measured
at the fair value of the options at the grant date. The fair value of the options is treated as discount and
accounted as employee compensation cost over the vesting period on a straight-line basis. The amount
recognised as expense in each year is arrived at based on the number of grants expected to vest. If a grant
lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is
transferred to the general reserve within equity.
2.24 Securities premium
(i) Securities premium includes:
A. The difference between the face value of the equity shares and the consideration received
in respect of shares issued.
B. The fair value of the stock options which are treated as expense, if any, in respect of shares
allotted pursuant to Stock Options Scheme.
(ii) The issue expenses of securities which qualify as equity instruments are written off against
securities premium.
21.1 Working capital loans
i. Working Capital facilities from State bank of India are secured by paripassu first charge of
hypothecation on all current assets of the company present and future and collaterally secured by
extension of paripassu first charge on the fixed assets (movable and immovable) of the company
both present and future and extension of equitable mortgage of land and buildings situated at TSIIC
Hardware park. The applicable rate of interest to State bank of India is 17.25 % (spread is 8.10 %
and EBLR (External Bench Marking rate) is 9.15%) The Working Capital facilities are guaranteed
by promoter directors namely Dr Anji Raju Manthena, Sree Lakshmi Manthena and Sita Rama Raju
Manthena.
ii. Working Capital facilities from HDFC Bank are having primary security of raw material, railway anti¬
collision device manufacturing including electronic controllers, PLCS and receivables from Indian
Railways. Collateral security is land, Plant and machinery located at TSIIC hardware Park. The
Applicable rate of interest to HDFC bank is 12.50%. (RBI Repo rate is 6% Spread is 6.50%). The
Working Capital facilities are guaranteed by promoter directors namely Dr Anji Raju Manthena, Sree
Lakshmi Manthena and Sita Rama Raju Manthena.
iii. Working Capital facilities from ICICI bank are secured by first paripassu charge on entire current
assets of the company and first paripassu charge on the immovable property located at, Raviryal
Village, Maheshwaram, K.V.Rangareddy,Rangareddy,Telangana, India, 501510. Applicable rate of
interest to ICICI bank is 10% (As on date the Repo Rate is 6.50% and Spread is 3.50%). Further
(Working Capital) facilities are secured by personal guarantee of Promoter Director Sita Rama Raju
Manthena.
21.2 Unsecured Loans from Directors are repayable on demand and carrying Interest at 18%.
21.3 Inter corporate deposit is repayable on demand and carrying interest rate of 15% to 18%.
21.4 Other Loans are Interest free and repayable on demand.
21.5 Inter corporate deposits carrying personal guarantee of Promoter Director Sitarama Raju, M Executive
Director and Badari Narayan Raju M.
There are no significant items of revenue to be recognised against performance obligation satisfied in previous
year due to change in transaction price.
Timing of satisfaction of performance obligations
For each performance obligation satisfied over time the company recognises revenue over time by measuring
the progress towards complete satisfaction of that performance obligation. The objective when measuring
progress is to depict the company's performance in transferring control of goods or services promised to a
customer (ie the satisfaction of an entity's performance obligation).
The right to payment for performance completed to date does not need to be for a fixed amount. However, at all
times throughout the duration of the contract, the company is entitled to an amount that at least compensates
for performance completed to date if the contract is terminated by the customer or another party for reasons
other than the company's failure to perform as promised.
Output method is used for measurement where the units produced or units delivered faithfully depict the
company's performance in satisfying a performance obligation and, at the end of the reporting period, the
company's performance has produced work in progress or finished goods that are not controlled by the
customer.
Input method is used to recognise revenue where the company's efforts or inputs in satisfaction of a
performance obligation (for example, resources consumed, labour hours expended, costs incurred, time
elapsed or machine hours used) is relative to the total expected inputs to the satisfaction of that performance
obligation and depict the company's performance in transferring control of goods or services to the customer.
a. Defined contribution plan
Eligible employees of the company receive benefits from a provident fund, which is a defined contribution
plan, both the employee and company make monthly contributions to the provident fund plan equal to a
specified percentage of the eligible employee's qualifying salary. The company has no further obligations
under the plan beyond its monthly contributions. The company contributed INR 48.03 Lakhs (Previous year
INR 34.48 Lakhs) towards provident fund plan during the years ended 31-Mar-25.
b. Defined benefit Plan
The company provides for gratuity, a defined benefit plan (“Gratuity Plan”) covering eligible employees,the
gratuity plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their
employment. The amount of the payment is based on the respective employee's last drawn salary and the
years of employment with the company. The company does not provide the facility of leave encashment to its
employees. Hence there is no plan for the latter benefits.
Note 39
Capital Management
The company manages its capital to ensure that it will be able to continue as going concern while creating value
for share holders by facilitating the meeting of long term and short term goals of the Company. The company
determines the amount of capital required on the basis of annual business plan and five year's corporate plan
coupled with long term and short term strategic investment and expansion plans. The Company monitors the
capital structure on the basis of net debt to equity ratio on a periodical basis.
Note : 40
Financial Risk Management
In course of its business, the company is exposed to certain financial risk such as market risk , credit risk
and liquidity risk that could have significant influence on the company's business and operational/financial
performance. The board of directors and the audit committee reviews and approves risk management
framework and policies for managing these risks and monitor suitable mitigating actions taken by the
management to minimize potential adverse effects and achieve greater predictability to earnings.
a. Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the company. The company has a prudent and conservative process for managing its credit risk
raising in the course of its business activities. Credit risk is managed through continuously monitoring the
creditworthiness of customers and obtaining sufficient collateral, where appropriate, a means of mitigating
the risk of financial loss from defaults.
The company makes an allowance for doubtful debts/ advances using Expected credit loss model.
i. Trade Receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. 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 company allocates each exposure to a credit risk grade based on a variety of data that is determined to
be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying
experienced credit judgment. Exposures to customers outstanding at the end of each reporting period are
reviewed by the company to determine incurred and expected credit losses. Historical trends of impairment
of trade receivables do not reflect any significant credit losses, given that the macro economic indicators
affecting customers of the company have not undergone any substantial change. The company expects the
historical trend of minimal credit losses to continue. The company however made provision for expected credit
loss based on the age of the outstanding's.
ii. Cash and Cash Equivalents
The Company held cash and cash equivalents of INR 1469.93 Lakhs at March 31, 2025 (Previous year INR
384.80 Lakhs). This includes the cash and cash equivalents held with the bank and the cash on hand with the
company.
b. Liquidity risk
Liquidity risk refers to the risk that the company will not be able to meet its financial obligations as they
become due. The company manages its liquidity risk by ensuring, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risk to the Company's reputation.
The company has obtained fund and non-fund based working capital loans from banks. The borrowed funds
are generally applied for company's own operational activities
Exposure to liquidity risk:
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts
are gross and undiscounted :
c. Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in
the interest rates. The company's exposure to the risk of changes in the market interest rate relates primarily
to the company's long term debt obligations with floating interest rates. The company's interest rate exposure
is mainly related to variable interest rates debt obligations. The Company manages the liquidity and fund
requirements for its day to day operations like working capital, suppliers/buyers credit.
Exposure to interest rate risk:
Company's interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value
interest rate risk. The interest rate profile of the company's interest-bearing financial instruments as reported
to the management of the Company is as follows.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through
profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable-rate instruments
The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark
as applicable to the borrowings summarised above. This calculation assumes that the change occurs at the
balance sheet date and has been calculated based on risk exposures outstanding as at that date assuming
that all other variables, in particular foreign currency exchange rates, remain constant. The period end
balances are not necessarily representative of the average debt outstanding during the period.
Sensitivity analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars and Egyptian Pounds
at March 31 would have affected the measurement of financial instruments denominated in US dollars and
Egyptian Pounds and affected equity and profit or loss by the amounts shown below. This analysis assumes
that all other variables, in particular, interest rates, remain constant and ignores any impact of forecast sales
and purchases.
* excludes Financials assets measured at cost namely investments Rs.1283.97/- (PY 1283.97/-)
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value
measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable Inputs for the asset or liability.
Note : 42
CAPITAL RISK MANAGEMENT
For the purpose of the Company's capital management, capital includes issued capital and other equity
reserves. The primary objective of the Company's Capital Management is to maximize shareholders value.
The Company manages its capital structure and makes adjustments in the light of changes in economic
environment and the requirements of the financial covenants.
The Company monitors capital using adjusted net debt to equity ratio. For this purpose, adjusted net debt is
defined as total debt less cash and bank balances.
Note : 44
Other Statutory Information
i) The Company has not incurred any expenditure towards corporate social responsibility (CSR) during
the year as it does not meet the criteria laid down under section 135 of the companies Act, 2013 for the
applicability of CSR obligation
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
(iii) The Company does not have any transactions with struck off companies
(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.
(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
(vi) 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 Benefit carries.
vii) 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 Benefit carries.
(viii) The Company has not entered in to any 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).
(ix) The Company has not been declared as wilful defaulter by any bank or financial institution or other
lender
(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017
(xi) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230
to 237 of the Companies Act, 2013, during the year.
45. Previous year figures have been regrouped/reclassified wherever necessary to conform to the current
year's classification.
As per our report of even date attached
H H FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
FOR NSVR & ASSOCIATES LLP
Chartered Accountants
Firm Regn No. 008801S/S200060 Sd/- Sd/-
BADARI NARAYANA RAJU MANTHENA SITARAMA RAJU MANTHENA
Sd/- Whole Time Director Whole Time Director
V GANGADHARA RAO N DIN 07993925 DIN 08576273
Partner
Membership No: 219486 Sd/ Sd/
UDIN: 25219486BMIRXU8330 PAMIDI SRIKANTH PRASADA RAO KALLURI
Hyderabad Chief Financial Officer Company Secretary
23-05-2025
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